Document:

EX-4.6

 

Exhibit 4.6

WARRANT

TO PURCHASE SHARES OF SERIES B PREFERRED STOCK

AND WARRANTS TO PURCHASE SHARES OF COMMON STOCK

OF BIODEL INC.

JULY 19, 2006

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS, AND NEITHER THIS
WARRANT NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED
UNLESS (I) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND UPON
REGISTRATION AND/OR QUALIFICATION UNDER ANY APPLICABLE STATE SECURITIES LAWS, OR (II) THE COMPANY
RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF THIS WARRANT, WHICH COUNSEL AND OPINION ARE
REASONABLY SATISFACTORY TO THE COMPANY, THAT THIS WARRANT MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED
OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT
AND/OR REGISTRATION AND/OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS.

	 	 	 	 	Warrant to purchase [___]

shares of Series B Preferred

Stock and [___] shares of

Common Stock

No. BW-1

BIODEL INC.

WARRANT TO PURCHASE SHARES OF

SERIES B PREFERRED STOCK AND

WARRANTS TO PURCHASE SHARES OF COMMON STOCK

Void after July 19, 2013

     BIODEL, INC. (the “Company”), a Delaware corporation, hereby certifies that for value
received, [                    ] , or his successors or assigns (the “Holder”), is entitled to purchase, subject
to the terms and conditions hereinafter set forth at an exercise price of $3.94 per share, subject to
adjustment as provided herein (the “Purchase Price”), an aggregate of [                    ] fully paid and

 

 

nonassessable shares of Series B Preferred Stock (as hereinafter defined) of the Company and
warrants to purchase [                    ] shares of Common Stock (as hereinafter defined) of the Company at
any time or from time to time from and including the date hereof but prior to 5:00 P.M., New York
City time, on July 19, 2013 (the “Expiration Date”).

     1. Definitions. For the purposes of this Warrant, the following terms shall have the
meanings indicated:

          “Board” shall mean the Board of Directors of the Company.

          “Business Day” shall mean any day other than a Saturday, Sunday or other day on which
commercial banks in the City of New York are authorized or required by law or executive order to
close.

          “Certificate of Incorporation” means the Certificate of Incorporation of the Company
as in effect on the date of the original issue of this Warrant, and as hereafter from time to time
amended, modified, supplemented or restated in accordance with the terms hereof and thereof and
pursuant to applicable law.

          “Common Stock” means the common stock, par value $0.01 per share, of the Company, and
any class of stock resulting from successive changes or reclassification of such Common Stock.

          “Common Stock Warrant” has the meaning ascribed to such term in Subsection 2(a) of
this Warrant.

          “Company” has the meaning ascribed to such term in the first paragraph of this
Warrant.

          “Current Market Price” means the product of (1) (a) the closing bid price per share or
last sales price per share, as applicable, of the Common Stock on such date on the Nasdaq or
another registered national stock exchange on which the Common Stock is then listed, or if there is
no such price on such date, then the closing bid price on such exchange or quotation system on the
date nearest preceding such date, or (b) if the Common Stock is not listed then on the Nasdaq or
any other registered national securities exchange, the closing bid price for a share of Common
Stock in the over-the-counter market, as reported by the OTC Bulletin Board or in the National
Quotation Bureau Incorporated or similar organization or agency succeeding to its functions of
reporting prices) at the close of business on such date, or (c) if the Common Stock is not then
reported by the OTC Bulletin Board or the National Quotation Bureau Incorporated (or similar
organization or agency succeeding to its functions of reporting prices), then the average of the
“Pink Sheet” quotes for the relevant conversion period, as determined in good faith by the Board,
or (d) if the Common Stock is not then publicly traded the fair market value of a share of Common
Stock as determined by an Independent Appraiser

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selected in good faith by the Board; provided, that all
determinations of the Current Market Value shall be appropriately adjusted for any stock dividends,
stock splits or other similar transactions during such period. The determination of fair market
value by an Independent Appraiser shall be based upon the fair market value of the Company
determined on a going concern basis as between a willing buyer and a willing seller and taking into
account all relevant factors determinative of value, and shall be final and binding on all parties.
In determining the fair market value of any shares of Common Stock, no consideration shall be
given to any restrictions on transfer of the Common Stock imposed by agreement or by federal or
state securities laws, or to the existence or absence of, or any limitations on, voting rights, and
the number of shares of Common Stock then issuable upon the conversion of a share of Series B
Preferred Stock.

          “Election to Purchase Shares” shall have the meaning ascribed to such term in
Subsection 2(a).

          “Exercise Date” has the meaning ascribed to such term in Subsection 2(d).

          “Expiration Date” has the meaning ascribed to such term in the first paragraph of this
Warrant.

          “Holder” has the meaning ascribed to such term in the first paragraph and Section 9 of
this Warrant.

          “Independent Appraiser” means a nationally recognized or major regional investment
banking firm or firm of independent certified public accountants of recognized standing (which may
be the firm that regularly examines the financial statements of the Company) that is regularly
engaged in the business of appraising, the capital stock or assets of corporations or other
entities as going concerns and which is not otherwise affiliated with either the Company or the
Holder.

          “Issued Warrant Shares” means any shares of Series B Preferred Stock issued upon
exercise of the Warrant.

          “Nasdaq” means The Nasdaq National Market.

          “OTC Bulletin Board” means the over-the-counter electronic bulletin board.

          “Person” shall mean any individual, firm, corporation, limited liability company,
partnership, trust, incorporated or unincorporated association, joint venture, joint stock company,
government (or an agency or political subdivision thereof) or other entity of any kind, and shall
include any successor (by merger or otherwise) of such entity.

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          “Purchase Price” has the meaning ascribed to such term in the first paragraph of this
Warrant.

          “Registration Rights Agreement” means the Amended and Restated Registration Rights
Agreement dated as of ___, 2006 among the Company and each of the other parties thereto, as the same may be amended, modified, or supplemented in accordance with the terms
and conditions thereof.

          “Series B Warrant” means the form of warrant to purchase shares of Common Stock
attached as Exhibit A to the Securities Purchase Agreement dated as of July 19, 2006 among the
Company and the investors signatory thereto.

          “Trading Day” means (a) a day on which the Common Stock is traded on the Nasdaq, or
(b) if the Common Stock is not listed on the Nasdaq, a day on which the Common Stock is traded on
any other registered national stock exchange, or (c) if the Common Stock is not traded on any other
registered national securities exchange, a day on which the Common Stock is traded on the OTC
Bulletin Board, or (d) if the Common Stock is not traded on the OTC Bulletin Board, a day on which
the Common Stock is quoted in the over-the-counter market as reported by the National Quotation
Bureau Incorporated (or any similar organization or agency succeeding its functions of reporting
prices); provided, however, that in the event that the Common Stock is not listed
or quoted as set forth in (a), (b) and (c) hereof, then Trading Day shall mean any day except
Saturday, Sunday and any day which shall be a legal holiday or a day on which banking institutions
in the State of New York are authorized or required by law or other government action to close.

          “Warrant” shall mean this Warrant and any subsequent Warrant issued pursuant to the
terms of this Warrant.

          “Warrant Register” has the meaning ascribed to such term in Subsection 9(c).

     2. Exercise of Warrant.

          (a) Exercise. This Warrant may be exercised, in whole or in part, at any time or from
time to time during the period beginning on the date hereof and ending on the Expiration Date, by
surrendering to the Company at its principal office this Warrant, with the form of Election to
Purchase Shares (the “Election to Purchase Shares”) attached hereto as Exhibit A duly
executed by the Holder and accompanied by payment of the Purchase Price for the number of shares of
Series B Preferred Stock specified in such form. Upon each such exercise, the Holder shall
receive, for no additional consideration, a Common Stock Warrant to purchase the number of shares
of Common Stock that shall equal .759886 shares of Common Stock for each share of Series B
Preferred Stock for which this Warrant is then being exercised, rounded up to the nearest whole
share of Common Stock; provided, that the total number of shares of Common Stock for which
Common Stock Warrants shall be issued hereunder shall not exceed .

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          (b) Delivery of Shares; Payment of Purchase Price. As soon as practicable after
surrender of this Warrant and receipt of payment, the Company shall promptly issue and deliver to
the Holder a certificate or certificates for the number of shares of Series B Preferred Stock set
forth in the Election to Purchase Shares, and a Common Stock Warrant to purchase the applicable
number of shares of Common Stock, each in such name or names as may be designated by such Holder,
along with a check for the amount of cash to be paid in lieu of issuance of fractional shares, if
any. Payment of the Purchase Price may be made as follows (or by any combination of the following):
(i) in United States currency by cash, delivery of a certified check, bank draft or postal or express money
order payable to the order of the Company, or by wire transfer of immediately available funds to
the Company in accordance with wire transfer instructions furnished by the Company to the Holder,
(ii) by “cashless exercise” by surrender to the Company for cancellation of a portion of this
Warrant representing that number of unissued shares of Series B Preferred Stock which is equal to
the quotient obtained by dividing (A) the product obtained by multiplying the Purchase Price by the
number of shares of Series B Preferred Stock being purchased upon such exercise by (B) the Current
Market Price as of the date of such exercise, or (iii) by a combination of the foregoing methods of
payment selected by the Holder of this Warrant.

          (c) Partial Exercise. If this Warrant is exercised for less than all of the shares of
Series B Preferred Stock and Common Stock Warrants purchasable under this Warrant, the Company
shall cancel this Warrant upon surrender hereof and shall execute and deliver to the Holder a new
Warrant of like tenor for the balance of the shares of Series B Preferred Stock and Common Stock
Warrants purchasable hereunder.

          (d) When Exercise Effective. The exercise of this Warrant shall be deemed to have been
effective immediately prior to the close of business on the Business Day on which this Warrant is
surrendered to and the Purchase Price is received by the Company as provided in this Section 2 (the
“Exercise Date”) and the Person in whose name any certificate for shares of Series B Preferred
Stock and any Common Stock Warrant shall be issuable upon such exercise, as provided in Subsection
2(b), shall be deemed to be the record holder of such shares of Series B Preferred Stock and Common
Stock Warrant for all purposes on the Exercise Date.

          (e) Issued Warrant Shares Fully Paid, Nonassessable. The Company shall take all
actions necessary (to the extent such actions have not been taken on or prior to the date hereof)
to ensure that following exercise of this Warrant in accordance with the provisions of this Section
2, the Issued Warrant Shares shall, without further action by the Holder, be duly authorized,
validly issued, fully paid and nonassessable, and the Common Stock Warrants shall be duly
authorized and validly issued, and shall constitute the legal, valid, binding and enforceable
obligations of the Company enforceable in accordance with their respective terms.

          (f) Continued Validity. A Holder of shares of Series B Preferred Stock shall continue
to be entitled to all of the rights and subject to all of the obligations set forth in Section 9.

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     3. Adjustment of Purchase Price, Warrant Share Number and Securities Issuable.

          (a) The number of shares of Series B Preferred Stock for which this Warrant is exercisable,
and the price at which such shares may be purchased upon exercise of this Warrant, shall be subject
to adjustment from time to time as set forth in this Section 3(a). The Company shall give the
Holder notice of any event described below which requires an adjustment pursuant to this Section 3
in accordance with Section 4. 

               (i) Stock Splits and Combinations. If outstanding shares of the Series B Preferred
Stock shall be subdivided into a greater number of shares, the Purchase Price in effect immediately
prior to such subdivision or at the record date of such stock dividend shall simultaneously with
the effectiveness of such subdivision or immediately after the record date of such dividend be
proportionately reduced. If outstanding Series B Preferred Stock shall be combined into a smaller
number of shares, the Purchase Price in effect immediately prior to such combination shall,
simultaneously with the effectiveness of such combination, be proportionately increased. When any
adjustment is required to be made in the Purchase Price pursuant to this Subsection 3(a), the
number of shares of Series B Preferred Stock purchasable upon the exercise of this Warrant shall be
changed to the number determined by dividing (i) an amount equal to the number of shares issuable
upon the exercise of this Warrant immediately prior to such adjustment, multiplied by the Purchase
Price in effect immediately prior to such adjustment, by (ii) the Purchase Price in effect
immediately after such adjustment.

               (ii) Adjustment for Dividends or Distributions of Stock or Other Securities or
Property. If the Company shall make or issue, or shall fix a record date for the determination
of eligible holders entitled to receive, a dividend or other distribution with respect to the
Series B Preferred Stock payable in (a) securities of the Company or (b) assets (excluding cash
dividends paid or payable solely out of retained earnings), (the “Distribution”) then, in each such
case, the Holders of this Warrant on exercise hereof at any time after the consummation, effective
date or record date of such dividend or other distribution, shall receive, in addition to the
shares of Series B Preferred Stock (or such other stock or securities) issuable on such exercise
prior to such date, and without the payment of additional consideration therefor, the securities or
such other assets of the Company to which such Holder would have been entitled upon such date if
such Holder had exercised this Warrant on the date hereof and had thereafter, during the period
from the date hereof to and including the date of such exercise, retained such shares or all other
additional stock available by it as aforesaid during such period giving effect to all adjustments
called for by this Section 3(b).

               (iii) Reclassification, Etc. In case there occurs any reclassification or change of
the outstanding securities of the Company or of any reorganization of the Company (or any other
corporation the stock or securities of which are at the time receivable upon the exercise of this
Warrant) or any similar corporate reorganization on or after the date hereof, then and in each such
case the Holder, upon the exercise hereof at any time after the consummation of such
reclassification, change, or reorganization shall be entitled to receive, in lieu of the stock or
other securities and

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property receivable upon the exercise hereof prior to such consummation, the
stock or other securities or property to which such Holder would have been entitled upon such
consummation if such Holder had exercised this Warrant immediately prior thereto, all subject to further adjustment
pursuant to the provisions of Subsections 3(a) and (b).

               (iv) Conversion of Series B Preferred Stock. If all of the outstanding shares of
Series B Preferred Stock have been converted into shares of Common Stock, (A) then this Warrant
shall automatically become exercisable for that number of shares of Common Stock equal to the
number of shares of Common Stock that would have been received if this Warrant had been exercised
in full and the shares of Series B Preferred Stock received thereupon had been simultaneously
converted into shares of Common Stock immediately prior to such event, and the Purchase Price shall
be automatically adjusted to equal the number obtained by dividing (i) the aggregate Purchase Price
of the shares of Series B Preferred Stock for which this Warrant was exercisable immediately prior
to such redemption or conversion, by (ii) the number of shares of Common Stock for which this
Warrant is exercisable immediately after such redemption or conversion, (B) all references to
Series B Preferred Stock in this Warrant shall be considered to be references to Common Stock
unless the context otherwise requires, and (C) the provisions of Subsections 3(a), (b) and (c)
shall thereafter apply to the shares of Common Stock into which the shares of Series B Preferred
Stock shall have been converted.

               (v) Adjustments to Other Shares. In the event that at any time, as a result of an
adjustment made pursuant to Subsection 3(a), the Holder shall become entitled to receive, upon
exercise of this Warrant, any shares of capital stock or other securities of the Company other than
shares of Series B Preferred Stock or Common Stock, the number of such other shares or securities
so receivable upon exercise of this Warrant shall be subject to adjustment from time to time in a
manner and on terms as nearly equivalent as practicable to the provisions with respect to the
shares of Common Stock contained in Subsections 3(a), (b) and (c), inclusive.

     4. The number of shares of Common Stock for which the Common Stock Warrant is exercisable, and
the price at which such shares may be purchased upon exercise of the Common Stock Warrant, shall be
subject to adjustment from time to time on the terms and subject to the conditions, mutatis
mutandis, contained in the Series B Warrant.

          (a) Certificate as to Adjustments. Whenever the Purchase Price or the number of shares
of Series B Preferred Stock issuable, or the securities or other property deliverable, upon the
exercise of this Warrant and/or the Common Stock Warrant shall be adjusted pursuant to the
provisions hereof, the Company shall promptly give written notice thereof to the Holder, in
accordance with Section 15, in the form of a certificate signed by the Chairman of the Board,
President or one of the Vice Presidents of the Company, and by the Chief Financial Officer,
Treasurer or one of the Assistant Treasurers of the Company, stating the adjusted Purchase Price,
the number of shares of Series B Preferred Stock issuable, or the securities or other property
deliverable, upon exercise of the Warrant and setting forth in reasonable detail the method of
calculation and the

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facts requiring such adjustment and upon which such calculation is based. Each
adjustment shall remain in effect until a subsequent adjustment is required.

     5. Fractional Shares. The Company shall not be required to issue fractions of shares
upon exercise of this Warrant or to distribute certificates which evidence fractional shares. In
lieu of fractional shares, the Company shall make payment to the Holder, at the time of exercise of
this Warrant as herein provided, of an amount in cash equal to such fraction multiplied by the
Current Market Price of a share of Series B Preferred Stock on the Exercise Date.

     6. Notice of Proposed Actions. In case the Company shall propose at any time or from
time to time (a) to declare or pay any dividend payable in stock of any class to the holders of
Series B Preferred Stock or to make any other distribution to the holders of Series B Preferred
Stock (other than a regularly scheduled cash dividend), (b) to offer to the holders of Series B
Preferred Stock rights or warrants to subscribe for or to purchase any additional shares of Series
B Preferred Stock or shares of stock of any class or any other securities, rights, warrants or
options, (c) to effect any reclassification of its Series B Preferred Stock, (d) to effect any
consolidation, merger or sale, transfer or other disposition of all or substantially all of the
property, assets or business of the Company which would, if consummated, adjust the Purchase Price
or the securities issuable upon exercise of the Warrants, (e) to effect the liquidation,
dissolution or winding up of the Company, or (f) to take any other action that would require a vote
of the Company’s stockholders, then, in each such case, the Company shall give to the Holder, in
accordance with Section 15, a written notice of such proposed action, which shall specify (i) the
record date for the purposes of such stock dividend, distribution of rights or warrants or vote of
the stockholders of the Company, or if a record is not to be taken, the date as of which the
holders of shares of Series B Preferred Stock of record to be entitled to such dividend,
distribution of rights or warrants, or vote is to be determined, or (ii) the date on which such
reclassification, consolidation, merger, sale, transfer, disposition, liquidation, dissolution or
winding up is expected to become effective, and such notice shall be so given as promptly as
possible but in any event at least ten (10) Business Days prior to the applicable record,
determination or effective date specified in such notice.

     7. No Dilution or Impairment. The Company will not, by amendment of its Certificate of
Incorporation or through any reorganization, transfer of assets, consolidation, merger,
dissolution, issue or sale of securities or any other action, avoid or seek to avoid the observance
or performance of any of the terms of this Warrant, but will at all times in good faith assist in
the carrying out of all such terms and in the taking of all such action as may be necessary or
appropriate in order to protect the rights of the Holder of this Warrant against dilution (other
than the dilutive events covered in Section 3 herein) or other impairment. Without limiting the
generality of the foregoing, the Company (a) will not increase the par value of any shares of stock
receivable on the exercise of this Warrant above the amount payable therefor on such exercise, (b)
will at all times reserve and keep available the maximum number of its authorized shares of Series
B Preferred Stock, free from all preemptive rights therein, which will be sufficient to permit the
full exercise of this Warrant, and (c) will take all such action as may be necessary or appropriate
in order that all shares of Series B Preferred Stock as

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may be issued pursuant to the exercise of
this Warrant will, upon issuance, be duly and validly issued, fully paid and nonassessable, and
free from all taxes, liens and charges as to the holders of the Warrant exercised with respect to
the issue thereof.

     8. Replacement of Warrants. On receipt by the Company of an affidavit of an authorized
representative of the Holder stating the circumstances of the loss, theft, destruction or
mutilation of this Warrant (and in the case of any such mutilation, on surrender and cancellation
of such Warrant), the Company at its expense will promptly execute and deliver, in lieu thereof, a
new Warrant of like tenor which shall be exercisable for a like number of shares of Series B Preferred Stock. If
required by the Company, such Holder must provide an indemnity bond or other indemnity sufficient
in the judgment of the Company to protect the Company from any loss which it may suffer if a lost,
stolen or destroyed Warrant is replaced.

     9. Restrictions on Transfer.

          (a) Subject to the provisions of this Section 9, this Warrant may be transferred or assigned,
in whole or in part, by the Holder at any time, and from time to time. The term “Holder” as used
herein shall also include any transferee of this Warrant whose name has been recorded by the
Company in the Warrant Register (as hereinafter defined). Each transferee of the Warrant or the
Series B Preferred Stock and Common Stock Warrant issuable upon the exercise of the Warrant
acknowledges that the Warrant or the Series B Preferred Stock and the Common Stock Warrant issuable
upon the exercise of the Warrant have not been registered under the Securities Act and may be
transferred only pursuant to an effective registration under the Securities Act or pursuant to an
applicable exemption from the registration requirements of the Securities Act.

          (b) With respect to a transfer that should occur prior to the time that the Warrant or the
Series B Preferred Stock and Common Stock Warrant issuable upon the exercise thereof is registered
under the Securities Act, such Holder shall request an opinion of counsel (which shall be rendered
by counsel reasonably acceptable to the Company) that the proposed transfer may be effected without
registration or qualification under any Federal or state securities or blue sky law. Counsel shall,
as promptly as practicable, notify the Company and the Holder of such opinion and of the terms and
conditions, if any, to be observed in such transfer, whereupon the Holder shall be entitled to
transfer this Warrant or such shares of Series B Preferred Stock (or portion thereof) or Common
Stock Warrant, subject to any other provisions and limitations of this Warrant. In the event this
Warrant shall be exercised as an incident to such transfer, such exercise shall relate back and for
all purposes of this Warrant be deemed to have occurred as of the date of such notice regardless of
delays incurred by reason of the provisions of this Section 9 which may result in the actual
exercise on any later date.

          (c) The Company shall maintain a register (the “Warrant Register”) in its principal office for
the purpose of registering the Warrant and any transfer thereof, which register shall reflect and
identify, at all times, the ownership of any interest in the Warrant. Upon the issuance of this

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Warrant, the Company shall record the name of the initial purchaser of this Warrant in the Warrant
Register as the first Holder. Upon surrender for registration of transfer or exchange of this
Warrant together with a properly executed Form of Assignment attached hereto as Exhibit B
at the principal office of the Company, the Company shall, at its expense, execute and deliver one
or more new Warrants of like tenor which shall be exercisable for a like aggregate number of shares
of Series B Preferred Stock, registered in the name of the Holder or a transferee or transferees.

     10. Registration Rights. The Holders of the Common Stock issuable upon conversion of
Series B Preferred Stock and upon the exercise of the Common Stock Warrant shall be entitled to the
registration rights on the terms and subject to the conditions, mutatis mutandis, contained in the
Registration Rights Agreement.

     11. No Rights or Liability as a Stockholder. This Warrant does not entitle the Holder
hereof to any voting rights or other rights as a stockholder of the Company. No provisions hereof,
in the absence of affirmative action by the Holder hereof to purchase Series B Preferred Stock, and
no enumeration herein of the rights or privileges of the Holder shall give rise to any liability of
such Holder as a stockholder of the Company.

     12. Charges, Taxes and Expenses. Issuance of certificates for shares of Series B
Preferred Stock and Common Stock Warrants upon the exercise of this Warrant shall be made without
charge to the Holder hereof for any issue or transfer tax, or other incidental expense, in respect
of the issuance or delivery of such certificates or the securities represented thereby, all of
which taxes and expenses shall be paid by the Company.

     13. Amendment and Waiver. Any term, covenant, agreement or condition in this Warrant
may be amended, or compliance therewith may be waived (either generally or in a particular instance
and either retroactively or prospectively), by a written instrument or written instruments executed
by the Company and the Holder.

     14. Governing Law. THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS TO BE MADE AND PERFORMED THEREIN,
WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES OR ANY OTHER LAW THAT WOULD APPLY THE LAW OF A
JURISDICTION OTHER THAN THE LAWS OF THE STATE OF NEW YORK.

     15. Notices. Any and all notices or other communications or deliveries required or
permitted to be provided hereunder shall be in writing and shall be deemed given and effective on
the earlier of (i) the date of transmission if such notice or communication is delivered via
facsimile at the facsimile telephone number specified for notice prior to 5:00 p.m., eastern time,
on a Trading Day, (ii) the Trading Day after the date of transmission if such notice or
communication is delivered via facsimile at the facsimile telephone number specified for notice
later than 5:00 p.m., eastern time, on any date

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and earlier than 11:59 p.m., eastern time, on such
date, (iii) the Trading Day following the date of mailing, if sent by nationally recognized
overnight courier service or (iv) actual receipt by the party to whom such notice is required to be
given. The addresses for such communications shall be with respect to the Holder of this Warrant or
of Issued Warrant Shares, addressed to such Holder at his last known address or facsimile number
appearing on the books of the issuer maintained for such purposes or with respect to the Company,
addressed to:

	 	 	 	 	 
	If to the Company, to:

	 	Dr. Solomon S. Steiner, Chairman
	 	 
	 

	 	Biodel Inc.	 	 
	 

	 	6 Christopher Columbus Avenue	 	 
	 

	 	Danbury, CT 06810	 	 
	 

	 	Fax No.: (203) 798-3601	 	 
	 
	 	 	 	 
	With copies (which copies shall not constitute notice to the Company) to:	 	 
	 
	 	 	 	 
	 

	 	William D. Freedman, Esq.	 	 
	 

	 	Troutman Sanders LLP	 	 
	 

	 	405 Lexington Avenue	 	 
	 

	 	New York, New York 10174	 	 
	 

	 	Fax No.: (212) 704-6288	 	 
	 
	 	 	 	 
	If to the Holder, to:
	 	 	 	 
	 
	 	 	 	 
	With copies (which copies shall not constitute notice to the Holder) to:	 	 
	 
	 	 	 	 
	 

	 	Clifford A. Brandeis, Esq.	 	 
	 

	 	Zukerman Gore & Brandeis, LLP	 	 
	 

	 	875 Third Avenue	 	 
	 

	 	New York, NY 10022	 	 
	 

	 	Fax No.: (212) 223-6433	 	 

Any party hereto may from time to time change its or his address for notices by giving at least ten
(10) days written notice of such changed address to the other party hereto.

     16. Remedies. The Company stipulates that the remedies at law of the Holder of this
Warrant in the event of any default or threatened default by the Company in the performance of or
compliance with any of the terms of this Warrant are not and will not be adequate and that, to the
fullest extent permitted by law, such terms may be specifically enforced by a decree for the
specific performance

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of any agreement contained herein or by an injunction against a violation of
any of the terms hereof or otherwise.

     17. Successors and Assigns. This Warrant and the rights evidenced hereby shall inure
to the benefit of and be binding upon the successors and assigns of the Company, the Holder hereof
and (to the extent provided herein) the Holders of Issued Warrant Shares issued pursuant hereto,
and shall be enforceable by any such Holder or Holder of Issued Warrant Shares.

     18. Modification and Severability. If in any action before any court or agency legally
empowered to enforce any provision contained herein, any provision hereof is found to be
unenforceable, then such provision shall be deemed modified to the extent necessary to make it
enforceable by such court or agency. If any such provision is not enforceable as set forth in the
preceding sentence, the unenforceability of such provision shall not affect the other provisions of
this Warrant but this Warrant shall be construed as if such unenforceable provision had never been
contained herein.

     19. Headings. The headings of the Sections of this Warrant are for convenience of
reference only and shall not for any purpose, be deemed a part of this Warrant.

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	 	 	BIODEL INC.
	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title:

13

 

	 	 	 
	 

	 	Exhibit A to Series B Preferred
	 

	 	Stock Purchase Warrant

FORM OF

ELECTION TO PURCHASE SHARES

     The
undersigned hereby irrevocably elects to exercise the Warrant to purchase                   shares of
Series B Preferred Stock, par value $0.01per share (“Preferred Stock”), of Biodel Inc. (the
“Company”) and hereby [makes payment of $                     therefor] [or] [makes payment therefore by
surrendering pursuant to Section 2(a)(ii)
                  shares of Preferred Stock of the Company] [or]
[makes payment therefor by cancellation pursuant to Section 2(a)(iii) of a portion of the Warrant
with respect to
                     shares of Preferred Stock]. The undersigned hereby requests that
certificates for such shares be issued and delivered as follows:

	 	 	 
	ISSUE TO:
	 	 

	(NAME)

 

(ADDRESS, INCLUDING ZIP CODE)

 

(SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER)

	 	 	 
	DELIVER TO:
	 	 

(NAME)

 

(ADDRESS, INCLUDING ZIP CODE)

     If the number of shares of Preferred Stock purchased hereby is less than the number of shares
of Preferred Stock covered by the Warrant, the undersigned requests that a new Warrant representing
the number of shares of Preferred Stock not purchased be issued and delivered as follows:

	 	 	 
	ISSUE TO:
	 	 

(NAME OF HOLDER)

 

(ADDRESS, INCLUDING ZIP CODE)

	 	 	 
	DELIVER TO:
	 	 

(NAME OF HOLDER)

 

(ADDRESS, INCLUDING ZIP CODE)

	 	 	 	 	 	 	 	 	 
	Dated:	 	 	 	 	 	[NAME OF HOLDER]
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:

 

			
	1	 	Name of Holder must conform in all respects to name of Holder as specified on the face
of the Warrant.

14

 

	 	 	 
	 

	 	Exhibit B to Series B Preferred
	 

	 	Stock Purchase Warrant

FORM OF ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers unto the Assignee
named below all of the rights of the undersigned to purchase Series B Preferred Stock, par value
$0.01 per share (“Series B Preferred Stock”), of BIODEL INC. represented by the Warrant, with
respect to the number of shares of Series B Preferred Stock set forth below and Common Stock
Warrants of BIODEL INC. set forth below:

	 	 	 	 	 
	Name of Assignee

	Address
	 	No. of Shares/Common Stock Warrant
	 
	 	 	 	 

and does hereby irrevocably constitute and appoint                      Attorney to make
such transfer on the books of BIODEL, INC. maintained for that purpose, with full power of
substitution in the premises.

	 	 	 	 	 	 	 	 	 
	Dated:	 	 	 	 	 	[NAME OF HOLDER1]
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:  	 	 
	 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	Title:

 

			
	1	 	Name of Holder must conform in all respects to name of Holder as specified on the face of the
Warrant.

15EX-4.7

 

Exhibit 4.7

SUBSCRIPTION AND RIGHTS AGREEMENT

BIODEL INC.

Subscription and Rights Agreement (the “Subscription Agreement”) with respect to the purchase of
shares of Series A Convertible Preferred Stock, par value $.01 (the “Preferred Stock”) of Biodel
Inc., a Delaware corporation (the “Company”).

     A.      The undersigned hereby subscribes for and agrees to purchase the number of shares of
Preferred Stock indicated herein, each share of Preferred Stock is convertible at any time, and in
certain instances is automatically convertible, initially into five (5) shares of the Company’s
common stock, par value $.01 per share (the “Common Stock”) (the Preferred Stock and the Common
Stock are collectively referred to herein as the “Securities”). The Securities are more fully
described in the Company’s Confidential Private Placement Memorandum (the “Offering Memorandum”),
dated February 2005 relating to the Offering and Supplement No. I thereto dated February 2005 (the
“Supplement to the Offering Memorandum”). Unless expressly otherwise defined in this Subscription
Agreement, all capitalized terms set forth in this Subscription Agreement shall have the same
meaning as ascribed to them in the Offering Memorandum. The undersigned herewith tenders to the
Company the entire amount of the purchase price by wire transfer or by check made payable to the
order of “Manufacturers and Traders Trust Company f/b/o Biodel Inc.”

     B.      The undersigned acknowledges that the Securities will not be registered under the
Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the “1933
Act”), or the securities laws of any state and that, absent an exemption, any transfer of the
Securities would require registration, and are being offered for sale in reliance upon exemptions
from registration contained in the 1933 Act and applicable state laws, and the Company’s reliance
upon such exemption is based in part upon the undersigned’s representations, warranties and
agreements contained in this Subscription Agreement and in the Qualified Purchaser Questionnaire
that you are also delivering to the Company and MSI.

     C.      In order to induce the Company to accept this Subscription Agreement, the undersigned
represents and warrants to the Company and MSI as follows:

(1)      The undersigned understands that (i) this Subscription Agreement may be accepted or rejected in
whole or in part by the Company in its sole and absolute discretion, (ii) this Subscription
Agreement shall survive the undersigned’s death, disability or insolvency, except that the
undersigned shall have no obligation in the event that this Subscription Agreement is rejected by
the Company. In the event that the Company does not accept the undersigned’s subscription or if the
Offering is terminated for any reason, the undersigned’s subscription payment (or portion thereof,
as the case may be) will be returned to the undersigned without interest or deduction.

(2)      The undersigned has read carefully this Subscription Agreement, the Offering Memorandum and the
Supplement to the Offering Memorandum, to the extent necessary, has discussed the representations,
warranties and agreements which the undersigned makes by

 

 

signing it, and the applicable limitations upon the undersigned’s resale of the Securities with
his, her or its counsel.

(3)      The undersigned understands that no federal or state agency has made any finding or
determination regarding the fairness of the offering of the Securities, or any recommendation or
endorsement of the offering of the Securities. Any representation to the contrary is a criminal
offense.

(4)      The undersigned is purchasing the Securities for the undersigned’s own account, with the
intention of holding the Securities for investment purposes, with no present intention of dividing
or allowing others to participate in this investment or of reselling or otherwise participating,
directly or indirectly, in a distribution of the Securities; and shall not make any sale, transfer
or other disposition of the Securities without registration under the 1933 Act and applicable state
securities laws unless an exemption from registration is available under those laws.

(5)      The undersigned’s overall commitment to investments which are not readily marketable is not
disproportionate to the undersigned’s net worth, and the undersigned’s investment in the Securities
will not cause such overall commitment to become excessive.

(6)      The undersigned, if an individual, has adequate means of providing for his or her current needs
and personal and family contingencies and has no need for liquidity in his or her investment in the
Securities.

(7)      The undersigned is an accredited investor as that term is defined in Section 501(a) under
Regulation D promulgated by the Securities and Exchange Commission under the 1933 Act The
undersigned is financially able to bear the economic risk of this investment, including the ability
to afford holding the Securities for an indefinite period or to afford a complete loss of this
investment.

(8)      The address shown under the undersigned’s signature at the end of this Subscription Agreement
is the undersigned’s principal residence if he or she is an individual, or its principal business
address if a corporation or other entity.

(9)      The undersigned, together with any purchaser representatives of the undersigned (as identified
herein) has such knowledge and experience in financial business matters as to be capable of
evaluating the merits and risks of an investment in the Securities.

(10)      The undersigned has been given the opportunity to ask questions of and receive answers from
the Company and its executive officers concerning the business and operations of the Company and
the terms and conditions of the Offering and to obtain any such additional information that the
undersigned deems necessary or advisable to veri1v the accuracy of the contained in the Offering
Memorandum and the Supplement to the Offering Memorandum or such other information as the
undersigned desired in order to evaluate an investment in the Company; and the undersigned availed
himself, herself or itself of such opportunity to the extent considered appropriate in order to
evaluate the merits and risks of the proposed investment.

(11)      The undersigned has made an independent evaluation of the merits of the investment and
acknowledges the high risk nature of the investment.

 

 

(12)      The undersigned has accurately completed the Qualified Purchaser Questionnaire provided
herewith and has executed such Qualified Purchaser Questionnaire and any applicable exhibits
thereto.

(13)      (a)      The undersigned understands that none of the Securities have been registered under the
1933 Act or any state securities laws in reliance on exemptions for private offerings; the
Securities cannot be resold or otherwise disposed of unless they are subsequently registered under
the 1933 Act and applicable state securities laws or an exemption from registration is available.
The certificate(s) representing the Securities will bear a legend substantially similar to the
legend set forth immediately below until (1) such Securities shall have been registered under the
1933 Act and effectively disposed of in accordance with a registration statement, or (ii) in the
opinion of counsel reasonably satisfactory to the Company such securities may be sold without
registration under the 1933 Act:

	 	 	“THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933
ACT”), OR THE “BLUE SKY” OR SECURITIES LAWS OF ANY STATE AND MAY NOT BE OFFERED, SOLD, PLEDGED,
HYPOTHECATED, ASSIGNED OR TRANSFERRED EXCEPT (i) PURSUANT TO A REGISTRATION STATEMENT UNDER THE
1933 ACT WHICH HAS BECOME EFFECTIVE AND IS CURRENT WITH RESPECT TO THESE SECURITIES, OR (ii)
PURSUANT TO A SPECIFIC EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT BUT ONLY UPON A HOLDER
THEREOF FIRST HAVING OBTAINED THE WRITTEN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE
COMPANY, THAT THE PROPOSED DISPOSITION IS CONSISTENT WITH ALL APPLICABLE PROVISIONS OF THE 1933 ACT
AS WELL AS ANY APPLICABLE “BLUE SKY” OR SIMILAR SECURITIES LAWS.”

           (b)      The undersigned understands that in the absence of registration by the Company, the
Securities will not be, and, except as set forth in Section D of this Subscription Agreement, the
undersigned will have no rights to require that the Securities shall be, registered under the 1933
Act or any state securities laws; the undersigned may have to hold the Securities indefinitely and
it may not be possible for the undersigned to liquidate his, her or its investment in the Company;
and the undersigned should not purchase any Securities unless he, she or it can afford a complete
loss of his, her or its investment and bear the burden of such loss for an indefinite period of
time.

           (c)      The undersigned understands that the provisions of Rule 144 promulgated tinder the 1933
Act to permit resales of the Securities are not available for at least one (1) year after the same
class of securities is registered under the 1933 Act, and there can be no assurances that any such
class of securities will ever be registered under the 1933 Act, or even if such class of securities
is registered under the 1933 Act that the conditions necessary thereafter to permit routine sales
of the Securities under Rule 144 will ever be satisfied, and, if Rule 144 should become available,
routine sales made in reliance on its provisions could be made only in limited amounts and in
accordance with the terms and conditions of Rule 144. The undersigned further

 

 

understands that in connection with the sale of securities for which Rule 144 is not
available, compliance with some other exemption from registration will be required. The undersigned
understands, subject to the provisions of Section D of this Subscription Agreement, that the
Company is under no obligation to the undersigned to register any such class of securities or to
comply with the conditions of Rule 144 or take any other action necessary in order to make
available any exemption for the resale of the Securities without registration.

(14)      The undersigned, if an individual, is at least 21 years of age.

(15)      If at any time prior to issuance of the Securities to the undersigned, any representation or
warranty of the undersigned shall no longer be true, the undersigned promptly shall give written
notice thereof to the Company and MSI specifying which representations and warranties are not true
and the reason therefor, whereupon the undersigned’s subscription may be rejected by the Company in
whole or in part.

(16)      Notwithstanding the place where this Subscription Agreement may be executed by any of the
parties hereto, all of the terms and provisions hereof shall be construed in accordance with and
governed by the laws of the State of New York, without giving effect to its conflict of laws
principles. Any dispute that may arise out of or in connection with this Subscription Agreement
shall be adjudicated before a court located in New York City and the parties hereto submit to the
exclusive jurisdiction and venue of the state and local courts of the State of New York located in
the City of New York and of the federal courts in the Southern District of New York with respect to
any action or legal proceeding commenced by any party, and irrevocably waive any objection they now
or hereafter may have respecting the venue of any action or proceeding brought in such a court or
respecting the fact that such court is an inconvenient forum, relating to or arising out of this
Subscription Agreement or any acts or omissions relating to the sale of the Securities, and the
undersigned consents to the service of process in any such action or legal proceeding by means of
registered or certified mail, return receipt requested, in care of the address set forth below or
such other address as the undersigned hall furnish in writing to the Company and MSI.

(17)      THE UNDERSIGNED HEREBY WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING INVOLVING, DIRECTLY OR
INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT, FRAUD OR OTHERWISE) IN ANY WAY ARISING
OUT OF OR IN CONNECTION WITH THIS SUBSCRIPTION AGREEMENT OR THE UNDERSIGNED’S PURCHASE OF THE
SECURITIES.

(18)      The undersigned acknowledges that he or she understands the meaning and legal consequences of
the representations, warranties and acknowledgments contained in this Subscription Agreement and in
the Qualified Purchaser Questionnaire, and hereby agrees to indemnify and hold harmless the Company
and MSI, and each of their respective stockholders, officers, directors, affiliates, controlling
persons, agents and representatives, from and against any and all loss, damage, expense, claim,
action, suit or proceeding (including the reasonable fees and expenses of legal counsel) as
incurred arising out of or in any manner whatsoever connected with a breach of any representation
or warranty of the undersigned contained in this Subscription Agreement or in the Qualified
Purchaser Questionnaire. The undersigned acknowledges that such damage could be substantial since
(a) the Securities are being offered without registration under the 1933 Act in reliance upon the
exemption pursuant to Section 4(2)

 

 

and/or Regulation D of the 1933 Act for transactions by an issuer not involving a public offering
and, in various states, pursuant to exemptions from registration, (b) the availability of such
exemptions is, in part, dependent upon the truthfulness and accuracy of the representations made by
the undersigned herein and in its Qualified Purchaser Questionnaire, and (c) the Company will rely
on such representations in accepting the undersigned’s Subscription Agreement.

(19)      Except as expressly provided herein, this Subscription Agreement contains the entire agreement
between the parties with respect to the transactions contemplated hereunder and may be amended only
by a writing executed by all of the parties hereto. This Subscription Agreement supersedes all
prior arrangements or understandings with respect thereto, whether oral or written. The terms and
conditions of this Subscription Agreement shall inure to the benefit of and be binding upon the
parties and their respective successors, heirs and assigns.

     D.      The undersigned shall have the registration rights set forth in this Section (D).

          (1)      In the event that at any time subsequent to one hundred and eighty (180) days after the
Company shall have effected a Qualified Initial Public Offering, the Company receives a written
notice (the “Demand Notice”) signed either by (a) purchasers in the Offering who then own a
majority of the shares of Preferred Stock that were sold in the Offering, including the shares of
Preferred Stock issued or issuable pursuant to the exercise or prospective exercise (as the case
may be) of the warrants that were issued to MSI (the “MSI Warrants”) pursuant to the Offering (all
such purchasers, including but not limited to the purchasers of Preferred Stock pursuant to the
exercise of the MSI Warrants, and each of their affiliates, designees or transferees of all such
purchasers, collectively, the “Demanding Purchasers”), or (b) by MSI on behalf of the Demanding
Purchasers, requesting the registration of any shares of Common Stock owned by the Demanding
Purchasers, whether acquired or to be acquired pursuant to the conversion or prospective conversion
of the Preferred Stock acquired in the Offering, or otherwise (all such shares of Common Stock
owned by the Demanding Purchasers, however acquired, whether in the Offering or otherwise, are
hereinafter collectively referred to in this Section (D) as the “Registrable Securities”), the
Company shall prepare and file with the United States Securities and Exchange Commission (the
“SEC”) a registration statement under Section 5 of the 1933 Act covering the Registrable Securities
that are the subject of the Demand Notice and shall use its commercially reasonable efforts to
cause such registration statement to become effective as promptly as practicable after the date of
such initial filing.

          The obligation of the Company under this Section (D)(1) shall be limited to one demand
registration statement; provided however that during the twelve (12) month period immediately
subsequent to the Company’s Qualified Initial Public Offering the Company shall not be required to
effect a registration on behalf of the Demanding Purchasers under this Section (D)(1) if, and only
if, during such twelve (12) month period the Company has already effected, or is in the process of
effecting, a demand registration on behalf of MSI pursuant to Section 3(e) of warrant certificate
to be issued to MSI upon a Closing. In addition, any registration shall not count as a demand
registration under this Section (D)(1) until a registration statement including all of the
Registrable Securities requested to be included thereon has been declared effective by the Staff of
the SEC, and such registration statement has remained continuously effective for as long as
required by Section (D)(3)(i) below. In the event that the Demand Notice shall request that the
proposed offering be an underwritten public offering, the Demanding Subscribers, or

 

 

their designee (which may be MSI), shall select the investment banker(s) and manager(s) to
conduct the offering.

          Notwithstanding any set forth herein to the contrary, if the registration statement required
to be filed under this Section (D)(1) is not filed within ninety (90) days after delivery to the
Company of the Demand Notice, then the Company shall issue to the Demanding Purchasers, pro-rata,
one and three quarters (1-3/4%) percent of the aggregate number of shares of Registrable Securities
required to be included on any such registration statement pursuant to such Demand Notice for each
month, or part thereof, after such ninety (90) day period that such registration statement is not
filed with the SEC. Further, notwithstanding anything set forth herein to the contrary, in the
event that the foregoing registration statement is not declared effective by the SEC within one
hundred and twenty (120) days following the date of the filing of such registration statement, the
Company shall issue to the Demanding Purchasers, pro-rata, one (1%) percent of the aggregate number
of shares of Registrable Securities required to be included on such registration statement for each
month, or part thereof, subsequent to such one hundred and twenty (120) day period until such time
as the registration statement shall be declared effective. All such additional securities to be
issued to the Demanding Purchasers pursuant to this paragraph shall automatically be Registrable
Securities and shall be included as such upon the registration statement required to be filed
pursuant to this Section (D)(1).

                (2)      At any time after the date hereof, in the event that the Company shall determine to
proceed with the actual preparation and filing of a registration statement under the 1933 Act in
connection with the proposed offer and sale of any of its securities by it or by any of its
security holders (other than a registration statement on Form S-4, S-8 or other successor or
comparable forms), the Company will give written notice of its determination (the “Piggyback
Notice”) to all record holders of Registrable Securities at least forty-five (45) days prior to
filing such registration statement. Upon the written request from the holder of any Registrable
Securities within thirty (30) days after the giving of the Piggyback Notice, the Company will cause
such Registrable Securities to be included in such registration statement all to the extent
required to permit the sale or other disposition by the prospective seller or sellers of the
Registrable Securities to be so registered; provided, that nothing herein shall prevent the Company
from, at any time, abandoning or delaying any such Company initiated registration. If any
registration pursuant to this Section D(2) shall be underwritten in whole or in part, the Company
may require that the Registrable Securities requested for inclusion pursuant to this Section (D)(2)
be included in the underwriting on the same terms and conditions as the securities otherwise being
sold through the underwriter(s). In the event that in the good faith judgment of a managing
underwriter of such public offering the inclusion of all of the Registrable Securities originally
covered by a request for registration pursuant to this Section (D)(2) would materially adversely
affect the successful marketing of the shares of stock offered by the Company, the number of shares
of Registrable Securities otherwise to be included in the underwritten public offering may be
reduced as required by the managing underwriter, but only after all other selling security holders
of the Company included on such registration statement have had all of their shares removed from
such registration statement (including any selling security holder not subject to this Agreement.

          There shall not be any limit to the number of piggyback registrations that may be requested by
the holders of Registrable Securities.

 

 

                (3)      If and whenever the Company is required by the provisions of Section (D) hereof to effect
the registration of the Registrable Securities under the 1933 Act, the Company shall:

          (i)      prepare and file with the SEC a registration statement with respect to the Registrable
Securities, and use its commercially reasonable efforts to cause such registration statement to
become effective as promptly as practicable and shall also cause such registration statement to
remain effective for no less than two hundred and seventy (270) consecutive days, unless the
registration statement on which such Registrable Securities are included is a Form S-2 or Form S-3
registration statement (or any successor Form), in which event the Company shall cause such
registration statement to remain effective for such period as is necessary to effect the sale of
all such Registrable Securities included thereon;

          (ii)      prepare and file with the SEC such amendments to such registration statement and
supplements to the prospectus contained therein as may be necessary to keep such registration
statement effective for the applicable period in accordance with the provisions of Section
(D)(3)(i) above;

          (iii)      furnish to any holder (including but not limited to a holder of Registrable Securities
who acquired or who will acquire same upon the exercise or prospective exercise of any MSI
Warrants) participating in such registration (a “Participating Holder”) such reasonable number of
copies of the registration statement, preliminary prospectus, final prospectus and such other
documents as such holder may reasonably request in order to facilitate the public offering of the
Participating Holder’s securities;

          (iv)      use its commercially reasonable efforts to register or qualify the Registrable Securities
covered by such registration statement under such state securities or blue sky laws of such
jurisdictions as such Participating Holders may reasonably request in writing within twenty (20)
days following the original filing of such registration statement, except that the Company shall
not for any purpose be required to execute a general consent to service of process or to qualit3’
to do business as a foreign corporation in any jurisdiction wherein it is not so qualified;

          (v)      notify the Participating Holders, promptly after it shall receive notice thereof, of the
time when such registration statement or a supplement to any prospectus forming a part of such
registration statement has become effective;

          (vi)      notify the Participating Holders promptly of any request by the Staff of the SEC for the
amending or supplementing of such registration statement or prospectus or for additional
information;

          (vii)      prepare and file with the SEC any amendments or supplements to such registration
statement or prospectus which is required under the 1933 Act or the rules and regulations
thereunder in connection with the distribution of the Registrable Securities by the Participating
Holders;

          (viii)      prepare and promptly file with the SEC and promptly notify the Participating Holders of
the filing of such amendment or supplement to such registration statement or prospectus as may be
necessary to correct any statements or omissions if, at the time when a

 

 

prospectus relating to such Registrable Securities is required to be delivered under the 1933
Act, any event shall have occurred as the result of which any such prospectus or any other
prospectuses then in effect would include an untrue statement of a material fact or omit to state
any material fact necessary to make the statements therein, in the light of the circumstances in
which they were made, not misleading;

          (ix)      advise the Participating Holders promptly after it shall receive notice or obtain
knowledge thereof, of the issuance of any stop order by the Division of Enforcement of the SEC
suspending the effectiveness of such registration statement or the initiation or threatening of any
proceeding for that purpose and promptly use its commercially reasonable efforts to prevent the
issuance of any stop order or to obtain its withdrawal if such stop order should be issued;

          (x)      indemnify and hold harmless each Participating Holder against any and all losses, claims,
damages or liabilities to which such Participating Holder shall become subject, under the 1933 Act
or otherwise; that arise out of or are based upon any untrue statement or alleged untrue statement
of any material fact contained in the effective registration statement or any prospectus that forms
a part thereof or any amendment or supplement thereto, or arise out of or are based upon any
omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements there in not misleading; provided, however, that
no such indemnification shall be available to any Participating Holder (and the Participating
Holder shall indemnify and hold harmless the Company) with respect to, and to the extent there is
liability attributable to, written information provided by a Participating Holder to the Company
for use in such registration statement or prospectus thereunder or any amendment or supplement
thereto, or any related preliminary prospectus;

          (xi)      cause its executive officers to cooperate in good faith with any managing underwriter in
connection with taking all actions reasonably necessary to successfully consummate the public
offering, including but not limited to, active participation at so-called “road shows” to the
extent requested by the managing underwriter, and using commercially reasonable efforts to obtain
as high a valuation of the Company as possible; and

          (xii)      consult with the MSI, as the designees of the Participating Holders, in connection with
the selection of any managing or co-managing underwriter.

     (4)      (i)      All fees, costs and expenses of and incidental to the registration of Registrable
Securities, shall be borne by the Company; provided, however, that Participating
Holders shall bear their pro rata share of the underwriting discount if any, and commissions and
transfer taxes.

                (ii)      The fees, costs and expense of registration to be borne by the Company as provided in
Section D(4)(i) above shall include, without limitation, all registration, filing fees, exchange or
market listing fees, printing expenses, fees and disbursements of counsel and accountants for the
Company, and all legal fees and disbursements and other expenses of complying with state securities
or blue sky laws of any jurisdictions in which the securities to be offered are to be registered
and qualified and all fees and disbursements of one counsel and accountants retained by MSI and on
behalf of the Participating Holders.

 

 

     (5)      Upon the proper and lawful transfer of any of the Securities by any holder thereof prior
to such time as the Securities have been resold pursuant to a registration statement contemplated
by this Section (D), the registration rights attendant to such Securities shall also be
transferable hereunder.

     E.      Certain Sales to Third Parties 

     (1)      In the event that either or any combination of Dr. Solomon S. Steiner, Erik Steiner or
Steiner Ventures LLC (all of the foregoing, including any affiliate, family member, transferee or
designee of any of the foregoing, are hereinafter collectively called the “Selling Stockholder”)
desires to sell all or a portion of the Selling Stockholder’s Common Stock and/or Preferred Stock
(the “Offered Securities”) to a bona fide third party purchaser (a “BFP”), the Selling Stockholder
shall first be obligated to comply with the terms set forth in this Section EU). For the avoidance
of doubt, any transfer or sale solely amongst Selling Stockholders shall not be deemed to be a sale
of Offered Securities to a BFP.

          (i)      The Selling Stockholder shall give written notice (the “T-A Notice”) to all of the other
beneficial owners of Securities that were sold by the Company pursuant to the Offering, including
but not limited to the beneficial owners, or prospective beneficial owners, of Securities pursuant
to the exercise, or prospective exercise, of the MST Warrants (all such beneficial owners, the
“Other Stockholders”), which written notice shall set forth all of the material terms and
conditions pursuant to which the Selling Stockholder proposes to sell the Offered Securities to the
BFP Each Other Stockholder shall have the right, for twenty (20) days from the first date that the
T-A Notice is deemed received by all of the Other Stockholders pursuant to the provisions of
Section (F) below (the “T-A Period”), to elect to sell to the BFP his, her or its p rata portion,
or some lesser amount, of the number of Offered Securities owned by such Other Stockholder (the
“T-A Securities”). The maximum number of T-A Securities that may be sold by an Other Stockholder
pursuant to any T-A Notice shall be based upon the percentage of Securities of the type that
comprises the Offered Securities (i.e., Common Stock and/or Preferred Stock) that are beneficially
owned (including any such Securities that may be acquired upon exercise and/or conversion) by each
such Other Stockholder relative to all such Securities beneficially owned (including any such
Securities that may be acquired upon exercise and/or conversion) by all of the Other Stockholders
and the Selling Stockholder. Within five (5) days after the expiration of the T-A Period, the
Selling Stockholder shall confirm to each of those Other Stockholders who have elected to sell some
or all of their T-A Securities the amount of each such Other Stockholder’s T-A Securities that he,
she or it has requested be sold on their behalf to the BFP, and during the sixty (60) day period
subsequent to such five (5) day period (the “Selling Period”), the Selling Stockholder shall have
the right to effect the sale of the Offered Securities and the T-A Securities o the BFP.

          (ii)      In the event that all of the Offered Securities and T-A Securities are not sold to the
BFP within the Selling Period in accordance with the provision set forth in Section (E)(l)(i)
above, all of the Offered Securities and T-A Securities shall again become subject to all of the
provisions of Section E(1)(i).

     (2)      In the event that the Selling Stockholder is each of Dr. Solomon S. Steiner, Erik Steiner
and Steiner Ventures, LLC, and all transferees, affiliates, family members and designees

 

 

of any of the foregoing (collectively, the “Steiner Entities”), and the Steiner Entities’
proposed sale to a BFP represents the Steiner Entities’ entire beneficial equity ownership interest
in the Company, then the Steiner Entities’ shall have the right, in lieu of providing the T-A
Notice, to instead give the Other Stockholders written notice (the “D-A Notice”) that the Steiner
Entities propose to transfer and sell their entire beneficial equity ownership interest in the
Company (including the right to acquire any equity interest in the Company at any time upon the
exercise or conversion of any derivative securities or pursuant to any other oral or written
agreement or understanding of any nature whatsoever) to a BFP subject to the provisions of this
Section E(2) (a “Drag Along Sale”). For the avoidance of doubt, any transfer or sale solely amongst
various individuals and/or entities, all of which are Steiner Entities, shall not be deemed to be a
Drag Along Sale hereunder. Upon receipt of a D-A Notice, the Other Stockholders shall be required
to transfer all of their Securities to the BFP at such time as the Steiner Entities effect the
closing of the Drag Along Sale, provided that any such transfer by the Other Stockholders of all of
their Securities pursuant to the Drag Along Sale shall be on all of the same terms and other
conditions as the Steiner Entities’ transfer of their entire beneficial equity ownership interest
in the Company to the BFP pursuant to the Drag Along Sale, provided that the Other Stockholders,
other than with respect to good and valid title to the Securities being transferred, shall not make
any of the representations, warranties or covenants set forth in any of the agreements between the
Steiner Entities and the BFP in connection with the Drag Along Sale. In addition, in the event and
to the extent that any of the Steiner Entities enters into any consulting, non-competition,
licensing or any other economic arrangement of any nature whatsoever with any BFP either in
contemplation of, or in connection or contemporaneously or concurrently with (whether before or
after) the Drag Along Sale, and any such agreement is for consideration in excess of reasonable
consideration therefor based upon then-current industry standards, the excess amount of any such
consideration for purposes of this Section E(2), shall be deemed to be payment and consideration
for the Steiner Entities’ beneficial equity ownership in the Company, and the Other Stockholders
shall be entitled to receive their pro rata share of any such excess consideration with respect to
their Securities at the same time as such payment and consideration is received by any of the
Steiner Entities. In the event that the Drag Along Sale is not effected within sixty (60) days from
the date of the giving of the D-A Notice, all of the Securities of the Company shall again become
subject to the provisions of Section E(1).

     (3)      Upon the proper and lawful transfer of any of the Securities by any holder thereof prior
to the effective registration of any class of the Company’s equity securities under Section 5 of
the 1933 Act, the rights set forth in this Section (E) attendant to the Securities shall be
transferable. In addition, the rights set forth in this Section E shall terminate upon the
effective registration of any class of the Company’s equity securities under Section 5 of the 1933
Act.

     F.      Notice Provisions 

     Any and all notices, demands or requests required or permitted to be given under this
Subscription Agreement shall be given in writing and sent, by registered or certified U.S. mail,
return receipt requested, by hand, or by overnight courier, addressed to the parties hereto at
their addresses set forth above or such other addresses as they may from time-to-time designate by
written notice, given in accordance with the terms of this Section (F), together with copies
thereof as follows:

 

 

     In the case of the Company to:

Biodel Inc.

6 Columbus Avenue

Danbury, CTO6S1O

Attention: Chief Executive Officer

     In the case of any owner of equity securities of the Company, to:

     The address of such equity owner on the books and records of the Company.

     In the case of MSI:

45 Broadway

New York, NY 10006

Attention: Scott A. Weisman

Notice given as provided in this Section shall be deemed effective: (1) on the business day hand
delivered (or, if it is not a business day, then the next succeeding business day thereafter), (ii)
on the first business day following the sending thereof by overnight courier, and (iii) on the
seventh calendar day (or, if it is not a business day, then the next succeeding business day
thereafter) after the depositing thereof into the exclusive custody of the U.S. Postal Service. As
used herein, the term business day shall mean any day when commercial banks are open in the State
of New York to accept deposits other than a Saturday or Sunday.

     G.      Closings Below the Minimum

     The undersigned acknowledges, agrees and understands that, as disclosed in the Supplement to
the Offering Memorandum, some potential purchasers may waive the requirement that any Closing is
conditioned upon, among other things, the Company having sold at least 700,000 shares of Preferred
Stock, and such potential purchasers may instead proceed to close upon the sale of less than the
Minimum.

 

 

FOR RESIDENTS OF PENNSYLVANIA 

THE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE PENNSYLVANIA SECURITIES ACT AND MAY NOT BE SOLD,
ASSIGNED, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF WITHIN 12 MONTHS AFTER THE DATE OF
PURCHASE, UNLESS SUBSEQUENTLY REGISTERED UNDER THE PENNSYLVANIA SECURITIES ACT OR UNDER THE
SECURITIES ACT OF 1933, AS AMENDED.

EACH PERSON WHO ACCEPTS AN OFFER TO PURCHASE SECURITIES EXEMPTED FROM REGISTRATION BY SECTION
203(d), DIRECTLY FROM THE ISSUER OR AFFILIATE OF THE ISSUER, SHALL HAVE THE RIGHT TO WITHDRAW HIS
ACCEPTANCE WITHOUT INCURRING ANY LIABILITY TO THE SELLER, UNDERWRITER (IF ANY) OR ANY OTHER PERSON
WITHIN 2 BUSINESS DAYS FROM THE DATE OF RECEIPT BY THE ISSUER OF HIS WRITTEN BINDING CONTRACT OF
PURCHASE OR, IN THE CASE OF A TRANSACTION IN WHICH THERE IS NO BINDING CONTRACT OF PURCHASE, WITHIN
2 BUSINESS DAYS AFTER HE MAKES THE INITIAL PAYMENT FOR THE SECURITIES BEING OFFERED.

 

 

ALL SUBSCRIBERS MUST COMPLETE THIS PAGE

Exact Name in Which Title is to be Held

Amount Subscribed for: $

Type of Ownership (Check One):

             Individual

             Joint tenants with rights of survivorship

             Tenants in common

             Tenants by the entirety

             Corporation

             Limited Liability Company

             Partnership

             Limited Liability Partnership

             Limited Partnership

             Trust

             Other (specify)

	 	 	 
	 

	 	 
	Residence Address

	 	City, State and Zip Code
	 
	 	 
	 

	 	 
	Mailing Address (if not residence)

	 	City, State and Zip Code

Social Security or Federal Tax Identification Number of Purchaser:                                         

 

 

     IN WITNESS WHEREOF, the undersigned has executed this Subscription Agreement on this            day
of January, 2005.

PURCHASER:

	 	 	 
	 

	 	 
	(Signature of Purchaser)

	 	(Name Typed or Printed)
	 
	 	 
	 

	 	 
	Signature of Co-Purchaser)

	 	(Name Typed or Printed)

Check line if applicable:

                                         Purchaser hereby waives any minimum closing condition.

                                         Purchaser hereby agrees to convert its Bridge Loan in the principal amount of $          
in connection with the purchase of Securities hereby.

Accepted as of the            day of                                         , 2005

BIODEL INC.

	 	 	 	 	 
	 	 	 
	By:  	
 	 	 
	 	Name:  	Solomon S. Steiner 	 	 
	 	Title:  	Chief Executive Officer 	 	 
	 

	 	 	 
	REGISTERED REPRESENTATIVE:

	 	BRANCH OFFICE MANAGER:
	(Sign and Print Name)

	 	(Sign and Print Name)
	 
	 	 
	 

	 	 

 

 

EXECUTION BY SUBSCRIBER WHO IS A NATURAL PERSON 

Exact Name in Which Title is to be Held

	 	 	 
	 
	 	 
	(Signature)
	 	(Signature)

(If Joint Tenant or Tenants in Common, both persons must

sign and this page must contain all information for

both persons.)

	 	 	 
	 

	 	 
	Name (Please Print)

	 	Name (Please Print)
	 
	 	 
	 

	 	 
	Residence Address

	 	Residence Address
	 
	 	 
	 

	 	 
	Telephone Number

	 	Telephone Number
	 
	 	 
	 

	 	 
	Social Security Number

	 	Social Security Number

ACCEPTED this          day                     , 2005, on behalf of the Company.

	 	 	 	 	 
	 	BIODEL INC.

 	 
	 	By:  	
 	 
	 	 	Solomon S. Steiner, Chief Executive Officer 	 
	 	 	 	 
	 

 

 

EXECUTION BY SUBSCRIBER WHICH IS AN ENTITY 

(Corporation, Partnership, Trust, Etc.)

Name of Entity (Please Print)

Address of Principal Office of Entity

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	NAME:  	 
	 	 	TITLE:   	 
	 

(seal)

Attest:     
            
            
            
            
            
            

             
       (If Entity is a Corporation)

	 	 	 
	 

	 	 
	 

	 	Address
	 
	 	 
	 

	 	 
	 

	 	Telephone Number
	 
	 	 
	 

	 	 
	 

	 	Taxpayer Identification Number

ACCEPTED this            day of                      2005, on behalf of the Company.

	 	 	 	 	 
	 	BIODEL INC.

 	 
	 	By:  	
 	 
	 	 	Solomon S. Steiner, Chief Executive Officer

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