Document:

exv4w1

Exhibit 4.1

CERTIFICATE OF DESIGNATIONS, RIGHTS AND PREFERENCES

of

SERIES F CONVERTIBLE PREFERRED STOCK

of

ALSERES PHARMACEUTICALS, INC.

     ALSERES PHARMACEUTICALS, INC., a Delaware corporation (the “Corporation”), pursuant to Section
151 of the General Corporation Law of the State of Delaware, does hereby make this Certificate of
Designations, Rights and Preferences and does hereby state and certify that pursuant to the
authority expressly vested in the Board of Directors of the Corporation (the “Board”) by the
Certificate of Incorporation of the Corporation, as amended to date, which authorizes the issuance
of 1,000,000 shares of preferred stock, $0.01 par value per share, in one or more series, the Board
duly adopted the following resolutions, which resolutions remain in full force and effect as of the
date hereof:

     RESOLVED, that, pursuant to Article Fourth of the Amended and Restated Certificate of
Incorporation of the Corporation, as amended to date, the Board hereby authorizes the issuance of,
and fixes the designation and preferences and relative, participating, optional and other special
rights, and qualifications, limitations and restrictions, of a series of preferred stock of the
Corporation consisting of 200,000 shares, par value $0.01 per share, to be designated “Series F
Convertible Preferred Stock” (hereinafter, the “Convertible Preferred Stock” or the “Preferred
Stock”); and be it

     RESOLVED, that each share of Convertible Preferred Stock shall rank equally in all respects
and shall be subject to the following terms and provisions:

     1. Dividends.

          (a) The Corporation shall not declare, pay or set aside any dividends (other than dividends
payable in shares of common stock, par value $0.01 per share, of the Corporation (“Common Stock”))
on shares of Common Stock unless the holders of the Preferred Stock then outstanding shall first
receive, or simultaneously receive, a dividend on each outstanding share of Preferred Stock in an
amount at least equal to the product of (i) the per share dividend to be declared, paid or set
aside for the Common Stock, multiplied by (ii) the number of shares of Common Stock into which such
share of Preferred Stock is then convertible.

          (b) The Corporation shall not declare, pay or set aside any dividends on shares of any class
or series of capital stock of the Corporation other than Common Stock unless the holders of the
Preferred Stock then outstanding shall first receive, or simultaneously receive, a dividend on each
outstanding share of Preferred Stock in an amount at least equal to (i) in the case of a dividend
on any class or series that is convertible into Common Stock, that dividend per share of Preferred
Stock as would equal the dividend payable on each share of such other class or series determined as
if all such shares of such class or series had been converted into Common
Stock and all shares of Preferred Stock had been converted into Common Stock on the record

 

 

date for determination of holders entitled to receive such dividend or (ii) in the case of a
dividend on any class or series that is not convertible into Common Stock, at a rate per share of
Preferred Stock determined by dividing the amount of the dividend payable on each share of such
class or series of capital stock by the original issuance price of such class or series of capital
stock and multiplying such fraction by $25 per share (subject to appropriate adjustment in the
event of any stock dividend, stock split, combination or other similar recapitalization affecting
such shares).

     2. Liquidation, Dissolution or Winding Up; Certain Mergers, Consolidations and Asset
Sales.

          (a) Payments to Holders of Preferred Stock. In the event of any voluntary or
involuntary liquidation, dissolution or winding up of the Corporation, the holders of shares of
Preferred Stock then outstanding shall be entitled to be paid out of the assets of the Corporation
available for distribution to its stockholders, before any payment shall be made to the holders of
the Corporation’s Series E Cumulative Convertible Preferred Stock, the Common Stock or any other
class or series of stock ranking on liquidation junior to the Preferred Stock (such Series E
Cumulative Convertible Preferred Stock, Common Stock and other stock being collectively referred to
as “Junior Stock”) by reason of their ownership thereof, an amount equal to the greater of (i) $25
per share (subject to appropriate adjustment in the event of any stock dividend, stock split,
combination or other similar recapitalization affecting such shares), plus any dividends declared
but unpaid thereon, or (ii) such amount per share as would have been payable had each such share
been converted into Common Stock pursuant to Section 4 immediately prior to such liquidation,
dissolution or winding up (the amount payable pursuant to this sentence is hereinafter referred to
as the “Liquidation Amount”). If upon any such liquidation, dissolution or winding up of the
Corporation the remaining assets of the Corporation available for distribution to its stockholders
shall be insufficient to pay the holders of shares of Preferred Stock and any class or series of
stock ranking on liquidation on a parity with the Preferred Stock the full amount to which they
shall be entitled, the holders of shares of Preferred Stock and any class or series of stock
ranking on liquidation on a parity with the Preferred Stock shall share ratably in any distribution
of the remaining assets and funds of the Corporation in proportion to the respective amounts which
would otherwise be payable in respect of such shares held by them upon such distribution if all
amounts payable on or with respect to such shares were paid in full.

          (b) Payments to Holders of Junior Stock. In the event of any voluntary or involuntary
dissolution, liquidation or winding up of the Corporation, after the payment of all preferential
amounts required to be paid to the holders of Preferred Stock and any other class or series of
stock of the Corporation ranking on liquidation senior to or on a parity with the Preferred Stock,
the holders of shares of Junior Stock then outstanding shall be entitled to receive the remaining
assets and funds of the Corporation available for distribution to its stockholders.

          (c) Deemed Liquidation Events.

               (i) The following events shall be deemed to be a liquidation of the Corporation for purposes
of this Section 2 (a “Deemed Liquidation Event”):

                    (A) a merger or consolidation in which

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	 	(I)	 	the Corporation
is a constituent party or
	 
	 	(II)	 	a subsidiary of
the Corporation is a constituent party and the
Corporation issues shares of its capital stock pursuant
to such merger or consolidation,

except any such merger or consolidation involving the Corporation or a subsidiary in which the
holders of capital stock of the Corporation immediately prior to such merger or consolidation
continue to hold immediately following such merger or consolidation, in approximately the same
proportions as such shares were held immediately prior to such merger or consolidation, at least
51%, by voting power and economic interest, of the capital stock of (1) the surviving or resulting
corporation or (2) if the surviving or resulting corporation is a wholly owned subsidiary of
another corporation immediately following such merger or consolidation, the parent corporation of
such surviving or resulting corporation; or

                    (B) the sale or exclusive license, in a single transaction or series of related transactions,
by the Corporation of all or substantially all the assets or intellectual property of the
Corporation (except where such sale or license is to a wholly owned subsidiary of the Corporation).

               (ii) The Corporation shall not effect any transaction constituting a Deemed Liquidation Event
pursuant to Subsection 2(c)(i)(A) above unless (A) the agreement or plan of merger or consolidation
provides that the consideration payable to the stockholders of the Corporation shall be allocated
among the holders of capital stock of the Corporation in accordance with Subsections 2(a) and 2(b)
above or (B) the holders of at least a majority of the then outstanding shares of Preferred Stock
specifically consent in writing to the allocation of such consideration in a manner different from
that provided in Subsections 2(a) and 2(b) above.

               (iii) In the event of a Deemed Liquidation Event pursuant to Subsection 2(c)(i)(B) above, if
the Corporation does not effect a dissolution of the Corporation under the Delaware General
Corporation Law within 60 days after such Deemed Liquidation Event, then (A) the Corporation shall
deliver a written notice to each holder of Preferred Stock no later than the 60th day
after the Deemed Liquidation Event advising such holders of their right (and the requirements to be
met to secure such right) pursuant to the terms of the following clause (B) to require the
redemption of such shares of Preferred Stock, and (B) if the holders of at least a majority of the
then outstanding shares of Preferred Stock so request in a written instrument delivered to the
Corporation not later than 75 days after such Deemed Liquidation Event, the Corporation shall use
the consideration received by the Corporation for such Deemed Liquidation Event (net of any
liabilities associated with the assets sold or technology licensed, as determined in good faith by
the Board of Directors of the Corporation), to the extent legally available therefor (the “Net
Proceeds”), to redeem, on the 90th day after such Deemed Liquidation Event (the
“Liquidation Redemption Date”), all outstanding shares of Preferred Stock at a price per share
equal to the Liquidation Amount. In the event of a redemption pursuant to the preceding sentence,
if the Net Proceeds are not sufficient to redeem all outstanding shares of Preferred Stock, the
Corporation shall redeem a pro rata portion of each holder’s shares of Preferred Stock. The
provisions of Subsections 5(a) through 5(e) below shall apply, with such necessary changes in the
details thereof as are necessitated by the context, to the

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redemption of the Preferred Stock pursuant to this Subsection 2(c)(iii). Prior to the
distribution or redemption provided for in this Subsection 2(c)(iii), the Corporation shall not
expend or dissipate the consideration received for such Deemed Liquidation Event, except to
discharge expenses incurred in the ordinary course of business.

               (iv) The amount deemed paid or distributed to the holders of capital stock of the Corporation
upon any such merger, consolidation, sale, license or redemption shall be the cash or the value of
the property, rights or securities paid or distributed to such holders by the Corporation or the
acquiring person, firm or other entity. The value of such property, rights or securities shall be
determined in good faith by the Board of Directors of the Corporation.

     3. Voting.

          (a) On any matter presented to the stockholders of the Corporation for their action or
consideration at any meeting of stockholders of the Corporation (or by written action of
stockholders in lieu of meeting), each holder of outstanding shares of Preferred Stock shall be
entitled to the number of votes equal to the number of whole shares of Common Stock into which the
shares of Preferred Stock held by such holder are convertible as of the record date for determining
stockholders entitled to vote on such matter. Except as provided by law or by the provisions of
Subsection 3(b) below, holders of Preferred Stock shall vote together with the holders of Common
Stock, and with the holders of any other series of preferred stock the terms of which so provide,
as a single class.

          (b) The Corporation shall not amend this Certificate of Designations, whether by merger,
consolidation or otherwise, so as to amend, alter or repeal the powers, preferences or special
rights of the Preferred Stock in a manner that affects them adversely, without the written consent
or affirmative vote of the holders of a majority of the then outstanding shares of Preferred Stock,
given in writing or by vote at a meeting, consenting or voting (as the case may be) separately as a
class.

     4. Optional Conversion.

     The holders of Preferred Stock shall have conversion rights as follows (the “Conversion
Rights”):

          (a) Right to Convert.

               (i) Each share of Preferred Stock shall be convertible, at the option of the holder thereof,
at any time and from time to time, and without the payment of additional consideration by the
holder thereof, into such number of fully paid and nonassessable shares of Common Stock as is
determined by dividing $25 by the Conversion Price (as defined below) in effect at the time of
conversion. The “Conversion Price” shall initially be $1.00. Such initial Conversion Price, and
the rate at which shares of Preferred Stock may be converted into shares of Common Stock, shall be
subject to adjustment as provided below.

               (ii) In the event of a notice of redemption of any shares of Preferred Stock pursuant to
Section 5 hereof, the Conversion Rights of the shares designated for redemption shall terminate at
the close of business on the last full day preceding the date fixed

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for redemption, unless the redemption price is not paid on such redemption date, in which case
the Conversion Rights for such shares shall continue until such price is paid in full. In the
event of a liquidation, dissolution or winding up of the Corporation, the Conversion Rights shall
terminate at the close of business on the last full day preceding the date fixed for the payment of
any such amounts distributable on such event to the holders of Preferred Stock. In the event of
such a redemption or liquidation, dissolution or winding up, the Corporation shall provide to each
holder of shares of Preferred Stock, notice of such redemption or liquidation, dissolution or
winding up, which notice shall (i) be sent at least 15 days prior to the termination of the
Conversion Rights and (ii) state the amount per share of Preferred Stock that will be paid or
distributed on such redemption or liquidation, dissolution or winding up, as the case may be.

          (b) Fractional Shares. No fractional shares of Common Stock shall be issued upon
conversion of the Preferred Stock. In lieu of any fractional shares to which the holder would
otherwise be entitled, the Corporation shall pay cash equal to such fraction multiplied by the then
effective Conversion Price.

          (c) Mechanics of Conversion.

               (i) In order for a holder of Preferred Stock to convert shares of Preferred Stock into shares
of Common Stock, such holder shall surrender the certificate or certificates for such shares of
Preferred Stock, at the office of the transfer agent for the Preferred Stock (or at the principal
office of the Corporation if the Corporation serves as its own transfer agent), together with
written notice that such holder elects to convert all or any number of the shares of Preferred
Stock represented by such certificate or certificates. Such notice shall state such holder’s name
or the names of the nominees in which such holder wishes the certificate or certificates for shares
of Common Stock to be issued. If required by the Corporation, certificates surrendered for
conversion shall be endorsed or accompanied by a written instrument or instruments of transfer, in
form satisfactory to the Corporation, duly executed by the registered holder or his or its attorney
duly authorized in writing. The date of receipt of such certificates and notice by the transfer
agent (or by the Corporation if the Corporation serves as its own transfer agent) shall be the
conversion date (“Conversion Date”), and the shares of Common Stock issuable upon conversion of the
shares represented by such certificate shall be deemed to be outstanding of record as of such date.
The Corporation shall, as soon as practicable after the Conversion Date, issue and deliver at such
office to such holder of Preferred Stock, or to his or its nominees, a certificate or certificates
for the number of shares of Common Stock to which such holder shall be entitled, together with cash
in lieu of any fraction of a share.

               (ii) The Corporation shall at all times when any Preferred Stock shall be outstanding, reserve
and keep available out of its authorized but unissued stock, for the purpose of effecting the
conversion of the Preferred Stock, such number of its duly authorized shares of Common Stock as
shall from time to time be sufficient to effect the conversion of all outstanding Preferred Stock.
Before taking any action which would cause an adjustment reducing the Conversion Price below the
then par value of the shares of Common Stock issuable upon conversion of the Preferred Stock, the
Corporation will take any corporate action which may, in the opinion of its counsel, be necessary
in order that the Corporation may validly and legally issue fully paid and nonassessable shares of
Common Stock at such adjusted Conversion Price.

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               (iii) Upon any such conversion, no adjustment to the Conversion Price shall be made for any
declared but unpaid dividends on the Preferred Stock surrendered for conversion or on the Common
Stock delivered upon conversion.

               (iv) All shares of Preferred Stock which shall have been surrendered for conversion as herein
provided shall no longer be deemed to be outstanding and all rights with respect to such shares,
including the rights, if any, to receive notices and to vote, shall immediately cease and terminate
on the Conversion Date, except only the right of the holders thereof to receive shares of Common
Stock in exchange therefor and payment of any dividends declared but unpaid thereon. Any shares of
Preferred Stock so converted shall be retired and cancelled and shall not be reissued, and the
Corporation (without the need for stockholder action) may from time to time take such appropriate
action as may be necessary to reduce the authorized number of shares of Preferred Stock
accordingly.

               (v) The Corporation shall pay any and all issue and other similar taxes that may be payable in
respect of any issuance or delivery of shares of Common Stock upon conversion of shares of
Preferred Stock pursuant to this Section 4. The Corporation shall not, however, be required to pay
any tax which may be payable in respect of any transfer involved in the issuance and delivery of
shares of Common Stock in a name other than that in which the shares of Preferred Stock so
converted were registered, and no such issuance or delivery shall be made unless and until the
person or entity requesting such issuance has paid to the Corporation the amount of any such tax or
has established, to the satisfaction of the Corporation, that such tax has been paid.

          (d) Adjustments to Conversion Price for Diluting Issues.

               (i) Special Definitions. For purposes of this Section 4, the following definitions
shall apply:

                    (A) “Option” shall mean rights, options or warrants to subscribe for, purchase or
otherwise acquire Common Stock or Convertible Securities.

                    (B) “Original Issue Date” shall mean the date on which a share of Preferred Stock was
first issued.

                    (C) “Convertible Securities” shall mean any evidences of indebtedness, shares or other
securities directly or indirectly convertible into or exchangeable for Common Stock, but excluding
Options.

                    (D) “Additional Shares of Common Stock” shall mean all shares of Common Stock issued
(or, pursuant to Subsection 4(d)(iii) below, deemed to be issued) by the Corporation after the
Original Issue Date, other than:

	 	(I)	 	shares of Common
Stock issued or deemed issued as a dividend or
distribution on Preferred Stock;
	 
	 	(II)	 	shares of Common
Stock issued or issuable by reason of a dividend, stock
split, split-up or other

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	 	 	 	distribution on shares of Common Stock that is
covered by Subsection 4(e) or 4(f) below;
	 
	 	(III)	 	shares of Common
Stock issued or deemed issued to employees or directors
of, or consultants to, the Corporation or any of its
subsidiaries pursuant to a plan, agreement or
arrangement approved by the Board of Directors of the
Corporation;
	 
	 	(IV)	 	shares of Common
Stock, Options or Convertible Securities issued to
banks, equipment lessors or other financial
institutions, or to real property lessors, pursuant to a
debt financing, equipment leasing or real property
leasing transaction approved by the Board of Directors
of the Corporation;
	 
	 	(V)	 	shares of Common
Stock, Options or Convertible Securities issued to
suppliers or third party service providers in connection
with the provision of goods or services pursuant to
transactions approved by the Board of Directors of the
Corporation;
	 
	 	(VI)	 	shares of Common
Stock, Options or Convertible Securities issued pursuant
to the acquisition of another corporation by the
Corporation by merger, purchase of substantially all of
the assets or other reorganization or to a joint venture
agreement or similar arrangement, provided such
issuances are approved by the Board of Directors of the
Corporation; or
	 
	 	(VII)	 	shares of Common
Stock, Options or Convertible Securities issued in
connection with sponsored research, collaboration,
technology license, development, OEM, marketing or other
similar agreements or strategic partnerships approved by
the Board of Directors of the Corporation.

               (ii) No Adjustment of Conversion Price. No adjustment in the Conversion Price shall
be made as the result of the issuance of Additional Shares of Common Stock if: (a) the
consideration per share (determined pursuant to Subsection 4(d)(v)) for such Additional Share of
Common Stock issued or deemed to be issued by the Corporation is equal to or greater than the
applicable Conversion Price in effect immediately prior to the issuance or deemed issuance of such
Additional Shares of Common Stock, or (b) prior to such issuance or deemed issuance, the
Corporation receives written notice from the holders of at least a majority of the then outstanding
shares of Preferred Stock agreeing that no such adjustment shall be made as the result of the
issuance or deemed issuance of Additional Shares of Common Stock.

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               (iii) Issue of Securities Deemed Issue of Additional Shares of Common Stock.

                    (A) If the Corporation at any time or from time to time after the Original Issue Date shall
issue any Options or Convertible Securities (excluding Options or Convertible Securities which,
upon exercise, conversion or exchange thereof, would entitle the holder thereof to receive shares
of Common Stock which are specifically excepted from the definition of Additional Shares of Common
Stock by Subsection 4(d)(i)(D) above) or shall fix a record date for the determination of holders
of any class of securities entitled to receive any such Options or Convertible Securities, then the
maximum number of shares of Common Stock (as set forth in the instrument relating thereto without
regard to any provision contained therein for a subsequent adjustment of such number) issuable upon
the exercise of such Options or, in the case of Convertible Securities and Options therefor, the
conversion or exchange of such Convertible Securities, shall be deemed to be Additional Shares of
Common Stock issued as of the time of such issue or, in case such a record date shall have been
fixed, as of the close of business on such record date.

                    (B) If the terms of any Option or Convertible Security, the issuance of which resulted in an
adjustment to the Conversion Price pursuant to the terms of Subsection 4(d)(iv) below, are revised
(either automatically pursuant the provisions contained therein or as a result of an amendment to
such terms) to provide for either (1) any increase or decrease in the number of shares of Common
Stock issuable upon the exercise, conversion or exchange of any such Option or Convertible Security
or (2) any increase or decrease in the consideration payable to the Corporation upon such exercise,
conversion or exchange, then, effective upon such increase or decrease becoming effective, the
Conversion Price computed upon the original issue of such Option or Convertible Security (or upon
the occurrence of a record date with respect thereto) shall be readjusted to such Conversion Price
as would have obtained had such revised terms been in effect upon the original date of issuance of
such Option or Convertible Security. Notwithstanding the foregoing, no adjustment pursuant to this
clause (B) shall have the effect of increasing the Conversion Price to an amount which exceeds the
lower of (i) the Conversion Price on the original adjustment date, or (ii) the Conversion Price
that would have resulted from any issuances of Additional Shares of Common Stock between the
original adjustment date and such readjustment date.

                    (C) If the terms of any Option or Convertible Security (excluding Options or Convertible
Securities which, upon exercise, conversion or exchange thereof, would entitle the holder thereof
to receive shares of Common Stock which are specifically excepted from the definition of Additional
Shares of Common Stock by Subsection 4(d)(i)(D) above), the issuance of which did not result in an
adjustment to the Conversion Price pursuant to the terms of Subsection 4(d)(iv) below (either
because the consideration per share (determined pursuant to Subsection 4(d)(v) hereof) of the
Additional Shares of Common Stock subject thereto was equal to or greater than the Conversion Price
then in effect, or because such Option or Convertible Security was issued before the Original Issue
Date are revised after the Original Issue Date (either automatically pursuant the provisions
contained therein or as a result of an amendment to such terms) to provide for either (1) any
increase or decrease in the number of shares of Common Stock issuable upon the exercise, conversion
or exchange of any such Option or Convertible Security or (2) any increase or decrease in the
consideration payable to the

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Corporation upon such exercise, conversion or exchange, then such Option or Convertible
Security, as so amended, and the Additional Shares of Common Stock subject thereto (determined in
the manner provided in Subsection 4(d)(iii)(A) above) shall be deemed to have been issued effective
upon such increase or decrease becoming effective.

                    (D) Upon the expiration or termination of any unexercised Option or unconverted or unexchanged
Convertible Security which resulted (either upon its original issuance or upon a revision of its
terms) in an adjustment to the Conversion Price pursuant to the terms of Subsection 4(d)(iv) below,
the Conversion Price shall be readjusted to such Conversion Price as would have obtained had such
Option or Convertible Security never been issued.

                    (E) No adjustment in the Conversion Price shall be made upon the issue of shares of Common
Stock or Convertible Securities upon the exercise of Options or the issue of shares of Common Stock
upon the conversion or exchange of Convertible Securities.

               (iv) Adjustment of Conversion Price Upon Issuance of Additional Shares of Common
Stock. In the event the Corporation shall at any time after the Original Issue Date issue
Additional Shares of Common Stock (including Additional Shares of Common Stock deemed to be issued
pursuant to Subsection 4(d)(iii)), without consideration or for a consideration per share less than
the applicable Conversion Price in effect immediately prior to such issue, then the Conversion
Price shall be reduced, concurrently with such issue, to a price (calculated to the nearest cent)
determined by multiplying such Conversion Price by a fraction, (A) the numerator of which shall be
(1) the number of shares of Common Stock outstanding immediately prior to such issue plus (2) the
number of shares of Common Stock which the aggregate consideration received or to be received by
the Corporation for the total number of Additional Shares of Common Stock so issued would purchase
at such Conversion Price; and (B) the denominator of which shall be the number of shares of Common
Stock outstanding immediately prior to such issue plus the number of such Additional Shares of
Common Stock so issued; provided that, for the purpose of this Subsection 4(d)(iv),
all shares of Common Stock issuable upon conversion of the Preferred Stock outstanding immediately
prior to such issue shall be deemed to be outstanding.

               (v) Determination of Consideration. For purposes of this Subsection 4(d), the
consideration received by the Corporation for the issue of any Additional Shares of Common Stock
shall be computed as follows:

                    (A) Cash and Property: Such consideration shall:

	 	(I)	 	insofar as it
consists of cash, be computed at the aggregate amount of
cash received by the Corporation, excluding amounts paid
or payable for accrued interest;
	 
	 	(II)	 	insofar as it
consists of property other than cash, be computed at the
fair market value thereof at the

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	 	 	 	time of such issue, as determined in good faith by
the Board of Directors of the Corporation; and
	 
	 	(III)	 	in the event
Additional Shares of Common Stock are issued together
with other shares or securities or other assets of the
Corporation for consideration which covers both, be the
proportion of such consideration so received, computed
as provided in clauses (I) and (II) above, as determined
in good faith by the Board of Directors of the
Corporation.

                    (B) Options and Convertible Securities. The consideration per share received by the
Corporation for Additional Shares of Common Stock deemed to have been issued pursuant to Subsection
4(d)(iii), relating to Options and Convertible Securities, shall be determined by dividing

	 	(I)	 	the total amount,
if any, received or receivable by the Corporation as
consideration for the issue of such Options or
Convertible Securities, plus the minimum aggregate
amount of additional consideration (as set forth in the
instruments relating thereto, without regard to any
provision contained therein for a subsequent adjustment
of such consideration) payable to the Corporation upon
the exercise of such Options or the conversion or
exchange of such Convertible Securities, or in the case
of Options for Convertible Securities, the exercise of
such Options for Convertible Securities and the
conversion or exchange of such Convertible Securities,
by
	 
	 	(II)	 	the maximum
number of shares of Common Stock (as set forth in the
instruments relating thereto, without regard to any
provision contained therein for a subsequent adjustment
of such number) issuable upon the exercise of such
Options or the conversion or exchange of such
Convertible Securities.

               (vi) Multiple Closing Dates. In the event the Corporation shall issue on more than
one date Additional Shares of Common Stock which are comprised of shares of the same series or
class of Preferred Stock and which result in an adjustment to the Conversion Price pursuant to the
terms of Subsection 4(d)(iv) above, and such issuance dates occur within a period of no more than
120 days, then, upon the final such issuance, the Conversion Price shall be readjusted to give
effect to all such issuances as if they occurred on the date of the final such issuance (and
without giving effect to any adjustments as a result of such prior issuances within such period).

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          (e) Adjustment for Stock Splits and Combinations. If the Corporation shall at any
time or from time to time after the Original Issue Date effect a subdivision of the outstanding
Common Stock or combine the outstanding shares of Preferred Stock, the Conversion Price in effect
immediately before that subdivision or combination shall be proportionately decreased. If the
Corporation shall at any time or from time to time after the Original Issue Date combine the
outstanding shares of Common Stock or effect a subdivision of the outstanding shares of Preferred
Stock, the Conversion Price in effect immediately before the combination or subdivision shall be
proportionately increased. Any adjustment under this paragraph shall become effective at the close
of business on the date the subdivision or combination becomes effective.

          (f) Adjustment for Certain Dividends and Distributions. In the event the Corporation
at any time, or from time to time after the Original Issue Date shall make or issue, or fix a
record date for the determination of holders of Common Stock entitled to receive, a dividend or
other distribution payable in additional shares of Common Stock, then and in each such event the
Conversion Price in effect immediately before such event shall be decreased as of the time of such
issuance or, in the event such a record date shall have been fixed, as of the close of business on
such record date, by multiplying the Conversion Price then in effect by a fraction:

          (1) the numerator of which shall be the total number of shares of Common Stock issued and
outstanding immediately prior to the time of such issuance or the close of business on such record
date, and

          (2) the denominator of which shall be the total number of shares of Common Stock issued and
outstanding immediately prior to the time of such issuance or the close of business on such record
date plus the number of shares of Common Stock issuable in payment of such dividend or
distribution;

provided, however, that if such record date shall have been fixed and such dividend is not fully
paid or if such distribution is not fully made on the date fixed therefor, the Conversion Price
shall be recomputed accordingly as of the close of business on such record date and thereafter the
Conversion Price shall be adjusted pursuant to this paragraph as of the time of actual payment of
such dividends or distributions; and provided further, however, that no such adjustment shall be
made if the holders of Preferred Stock simultaneously receive (i) a dividend or other distribution
of shares of Common Stock in a number equal to the number of shares of Common Stock as they would
have received if all outstanding shares of Preferred Stock had been converted into Common Stock on
the date of such event or (ii) a dividend or other distribution of shares of Preferred Stock which
are convertible, as of the date of such event, into such number of shares of Common Stock as is
equal to the number of additional shares of Common Stock being issued with respect to each share of
Common Stock in such dividend or distribution.

          (g) Adjustments for Other Dividends and Distributions. In the event the Corporation
at any time or from time to time after the Original Issue Date shall make or issue, or fix a record
date for the determination of holders of Common Stock entitled to receive, a dividend or other
distribution payable in securities of the Corporation (other than shares of Common Stock) or in
cash or other property, then and in each such event provision shall be made so that the holders of
the Preferred Stock shall receive upon conversion thereof, in addition

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to the number of shares of Common Stock receivable thereupon, the kind and amount of
securities of the Corporation, cash or other property which they would have been entitled to
receive had the Preferred Stock been converted into Common Stock on the date of such event and had
they thereafter, during the period from the date of such event to and including the conversion
date, retained such securities receivable by them as aforesaid during such period, giving
application to all adjustments called for during such period under this paragraph with respect to
the rights of the holders of the Preferred Stock; provided, however, that no such provision shall
be made if the holders of Preferred Stock receive, simultaneously with the distribution to the
holders of Common Stock, a dividend or other distribution of such securities, cash or other
property in an amount equal to the amount of such securities, cash or other property as they would
have received if all outstanding shares of Preferred Stock had been converted into Common Stock on
the date of such event.

          (h) Adjustment for Merger or Reorganization, etc. Subject to the provisions of
Subsection 2(c), if there shall occur any reorganization, recapitalization, reclassification,
consolidation or merger involving the Corporation in which the Common Stock (but not the Preferred
Stock) is converted into or exchanged for securities, cash or other property (other than a
transaction covered by paragraphs (e), (f) or (g) of this Section 4), then, following any such
reorganization, recapitalization, reclassification, consolidation or merger, each share of
Preferred Stock shall be convertible into the kind and amount of securities, cash or other property
which a holder of the number of shares of Common Stock of the Corporation issuable upon conversion
of one share of Preferred Stock immediately prior to such reorganization, recapitalization,
reclassification, consolidation or merger would have been entitled to receive pursuant to such
transaction; and, in such case, appropriate adjustment (as determined in good faith by the Board of
Directors of the Corporation) shall be made in the application of the provisions in this Section 4
with respect to the rights and interests thereafter of the holders of the Preferred Stock to the
end that the provisions set forth in this Section 4 (including provisions with respect to changes
in and other adjustments of the Conversion Price) shall thereafter be applicable, as nearly as
reasonably may be, in relation to any securities or other property thereafter deliverable upon the
conversion of the Preferred Stock.

          (i) Certificate as to Adjustments. Upon the occurrence of each adjustment or
readjustment of the Conversion Price pursuant to this Section 4, the Corporation at its expense
shall, as promptly as reasonably practicable but in any event not later than 10 days thereafter,
compute such adjustment or readjustment in accordance with the terms hereof and furnish to each
holder of Preferred Stock a certificate setting forth such adjustment or readjustment (including
the kind and amount of securities, cash or other property into which the Preferred Stock is
convertible) and showing in detail the facts upon which such adjustment or readjustment is based.
The Corporation shall, as promptly as reasonably practicable after the written request at any time
of any holder of Preferred Stock (but in any event not later than 10 days thereafter), furnish or
cause to be furnished to such holder a certificate setting forth (i) the Conversion Price then in
effect, and (ii) the number of shares of Common Stock and the amount, if any, of other securities,
cash or property which then would be received upon the conversion of Preferred Stock.

          (j) Notice of Record Date. In the event:

12

 

               (i) the Corporation shall take a record of the holders of its Common Stock (or other stock or
securities at the time issuable upon conversion of the Preferred Stock) for the purpose of
entitling or enabling them to receive any dividend or other distribution, or to receive any right
to subscribe for or purchase any shares of stock of any class or any other securities, or to
receive any other right; or

               (ii) of any capital reorganization of the Corporation, any reclassification of the Common
Stock of the Corporation, any consolidation or merger of the Corporation with or into another
corporation (other than a consolidation or merger in which the Corporation is the surviving entity
and its Common Stock is not converted into or exchanged for any other securities or property), or
any transfer of all or substantially all of the assets of the Corporation; or

               (iii) of the voluntary or involuntary dissolution, liquidation or winding-up of the
Corporation,

then, and in each such case, the Corporation will send or cause to be sent to the holders of
Preferred Stock a notice specifying, as the case may be, (i) the record date for such dividend,
distribution or right, and the amount and character of such dividend, distribution or right, or
(ii) the effective date on which such reorganization, reclassification, consolidation, merger,
transfer, dissolution, liquidation or winding-up is to take place, and the time, if any is to be
fixed, as of which the holders of record of Common Stock (or such other stock or securities at the
time issuable upon the conversion of the Preferred Stock) shall be entitled to exchange their
shares of Common Stock (or such other stock or securities) for securities or other property
deliverable upon such reorganization, reclassification, consolidation, merger, transfer,
dissolution, liquidation or winding-up. Such notice shall be sent at least 10 days prior to the
record date or effective date for the event specified in such notice.

          (k) Overall Cap on Common Stock Issuable. Notwithstanding anything contained in this
Certificate of Designations to the contrary, the number of shares of Common Stock issuable by the
Corporation upon conversion of the Preferred Stock and acquirable by the holders of the Preferred
Stock in such capacity, shall not exceed 19.99% of the number of shares of Common Stock outstanding
on the Original Issue Date, subject to appropriate adjustment for stock splits, stock dividends, or
other similar recapitalizations affecting the Common Stock (the “Maximum Common Stock Issuance”),
unless the issuance of shares hereunder in excess of the Maximum Common Stock Issuance shall first
be approved by the Corporation’s stockholders in accordance with applicable law and the By-laws and
Certificate of Incorporation of the Corporation. If at any point in time and from time to time, the
number of shares of Common Stock previously issued upon conversion of the Preferred Stock (“Issued
Shares”) together with the number of shares of Common Stock that would then be issuable in the
event of conversion of all shares of Preferred Stock then outstanding, would exceed the Maximum
Common Stock Issuance but for this Section 4(k), then the Corporation shall promptly call a
stockholders’ meeting to request shareholder approval for the issuance of Common Stock hereunder in
excess of the Maximum Common Stock Issuance. Following any approval by the stockholders of the
Additional Issuance (as defined below), each share of Preferred Stock then outstanding shall be
convertible into the number of shares of Common Stock determined pursuant to this Certificate of
Designations without regard to the limitations provided in this Section 4(k). Prior to any

13

 

approval of such issuance in excess of the Maximum Common Stock Issuance (the “Additional
Issuance”) by the stockholders and subsequent to any refusal by the stockholders to approve such
issuance, each outstanding share of Preferred Stock shall be convertible into the number of shares
of Common Stock equal to (x)(A) the Maximum Common Stock Issuance minus (B) the Issued Shares,
divided by (y) the number of shares of Preferred Stock outstanding (the “Per Share Amount”), and
the issuance by the Corporation of the Per Share Amount of Common Stock with respect to each share
of Preferred Stock converted into Common Stock pursuant to Subsection 4(a) hereof shall be deemed
to fully satisfy the Corporation’s obligations with respect to the conversion of such Preferred
Stock and such Preferred Stock shall no longer be considered issued and outstanding for any
purpose. For avoidance of doubt, if the Corporation is required to call such a stockholders
meeting, it shall not be in breach of the terms of this Certificate of Designations if the
stockholders fail to approve such issuance.

     5. Redemption.

          (a) Optional Redemption; Redemption Request. On or after September 1, 2011, any
holder of Preferred Stock may deliver to the Corporation a written request (a “Redemption Request”)
to have the shares of Preferred Stock specified in such Redemption Request be redeemed by the
Corporation at the Redemption Price (as defined below). The “Redemption Price” for each share of
Preferred Stock shall equal the aggregate of (i) $25 per share (subject to appropriate adjustment
in the event of any stock dividend, stock split, combination or other similar recapitalization
affecting such shares)(the “Original Issue Price”), plus (ii) all declared but unpaid dividends
thereon, plus (iii) an amount computed at a rate per annum of 7% of the Original Issue Price from
the Original Issue Date until the Redemption Date, computed on the basis of a year of 365 days for
the actual number of days elapsed, and shall be payable on the Redemption Date (as defined below).
In the event that the Corporation does not have sufficient funds legally available to redeem on the
Redemption Date all shares of Preferred Stock to be redeemed on such Redemption Date, the
Corporation shall redeem a pro rata portion of each holder’s shares of such stock, based on the
respective amounts which would otherwise be payable in respect of the shares to be redeemed if the
legally available funds were sufficient to redeem all such shares, out of funds legally available
therefor and shall redeem the remaining shares to have been redeemed as soon as practicable after
the Corporation has funds legally available therefor.

          (b) Redemption Notice. Within 5 days of the receipt of a Redemption Request, the
Corporation shall deliver written notice (the “Redemption Notice”) of the Redemption Request to all
of the holders of Preferred Stock, identifying the holder that delivered the Redemption Request and
the number of shares of Preferred Stock specified therein, as well as the proposed date of the
redemption, which shall be established by the Corporation in its sole discretion and shall be no
less than 30 days or more than 60 days after the Corporation’s receipt of the Redemption Request
(the “Redemption Date”). By notification to the Corporation within 15 days after the Corporation
distributes the Redemption Notice, any holder of Preferred Stock may elect to have its shares
redeemed on the Redemption Date. The Redemption Notice shall be mailed, postage prepaid, to each
holder of record of Preferred Stock, at its post office address last shown on the records of the
Corporation, or given by electronic communication in compliance with the provisions of the Delaware
General Corporation Law, not less than 30 days prior to the Redemption Date. Each Redemption
Notice shall state:

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	 	(I)	 	the identity of
the stockholder that delivered the Redemption Request;
	 
	 	(II)	 	the number of shares of Preferred Stock specified in the Redemption
Request;
	 
	 	(III)	 	the Redemption
Date;
	 
	 	(IV)	 	the Redemption
Price;
	 
	 	(V)	 	the date upon
which the holder’s right to convert such shares
terminates (as determined in accordance with Section
4(a)); and
	 
	 	(VI)	 	that the holder
is to surrender to the Corporation, in the manner and at
the place designated, his certificate or certificates
representing the shares of Preferred Stock to be
redeemed.

          (c) Surrender of Certificates; Payment. On or before the applicable Redemption Date,
each holder of shares of Preferred Stock to be redeemed on such Redemption Date, unless such holder
has exercised his right to convert such shares as provided in Section 4 hereof, shall surrender the
certificate or certificates representing such shares to the Corporation, in the manner and at the
place designated in the Redemption Notice, and thereupon the applicable Redemption Price for such
shares shall be payable to the order of the person whose name appears on such certificate or
certificates as the owner thereof, and each surrendered certificate shall be canceled and retired.
In the event less than all of the shares of Preferred Stock represented by a certificate are
redeemed, a new certificate representing the unredeemed shares of Preferred Stock, as the case may
be, shall promptly be issued to such holder.

          (d) Rights Subsequent to Redemption. If the Redemption Request shall have been duly
given, and if on the applicable Redemption Date the Redemption Price payable upon redemption of the
shares of Preferred Stock to be redeemed on such Redemption Date is paid or tendered for payment,
then notwithstanding that the certificates evidencing any of the shares of Preferred Stock so
called for redemption shall not have been surrendered, dividends with respect to such shares of
Preferred Stock shall cease to accrue after such Redemption Date and all rights with respect to
such shares shall forthwith after the Redemption Date terminate, except only the right of the
holders to receive the Redemption Price without interest upon surrender of their certificate or
certificates therefor.

          (e) Redeemed or Otherwise Acquired Shares. Any shares of Preferred Stock which are
redeemed or otherwise acquired by the Corporation or any of its subsidiaries shall be automatically
and immediately canceled and shall not be reissued, sold or transferred as shares of Preferred
Stock. Neither the Corporation nor any of its subsidiaries may exercise any voting or other rights
granted to the holders of Preferred Stock following redemption.

          (f) Other Redemptions or Acquisitions. Neither the Corporation nor any subsidiary
shall redeem or otherwise acquire any shares of Preferred Stock, except (i) as

15

 

expressly authorized herein, (ii) with the written consent of the holders of at least a
majority of the then outstanding shares of Preferred Stock, or (iii) pursuant to a purchase offer
made pro rata to all holders of Preferred Stock on the basis of the number of shares of Preferred
Stock owned by each such holder.

     6. Waiver. Any of the rights of the holders of Preferred Stock set forth herein may
be waived by the affirmative consent or vote of the holders of shares of Preferred Stock
representing at least a majority of the votes represented by the shares of Preferred Stock then
outstanding, considered as a single class, provided such waiver by its terms is equally applicable
to the holders of Preferred Stock. Any of the rights of the holders of Preferred Stock set forth
herein may be waived (in a manner that does not apply to the holders of Preferred Stock) by the
affirmative consent or vote of the holders of at least a majority of the shares of Preferred Stock
then outstanding. Any of the rights of the holders of Preferred Stock set forth herein may be
waived (in a manner that does not apply to the holders of Preferred Stock) by the affirmative
consent or vote of the holders of at least a majority of the shares of Preferred Stock then
outstanding.

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     IN WITNESS WHEREOF, the Corporation has caused this Certificate of Designations, Rights and
Preferences to be signed by its Executive Vice President this 19th day of March, 2009.

	 	 	 	 	 
	 	Alseres Pharmaceuticals, Inc.

 	 
	 	By:  	/s/ Kenneth L. Rice
 	 
	 	 	Executive Vice President 	 
	 	 	 	 
	 

17exv10w1

Exhibit 10.1

SECURITIES PURCHASE AGREEMENT

     THIS SECURITIES PURCHASE AGREEMENT (this “Agreement”), dated as of March 19, 2009, by and
among Alseres Pharmaceuticals, Inc., a Delaware corporation with headquarters located at 239 South
Street, Hopkinton, MA 01748 (the “Company”) and each investor identified on the signature pages
hereto (individually, an “Investor” and collectively, the “Investors).

PREAMBLE

     A. The Company and each Investor is executing and delivering this Agreement in reliance upon
the exemption from registration afforded by Section 4(2) of the Securities Act of 1933, as amended
(the “Securities Act”), and Rule 506 of Regulation D as promulgated by the United States Securities
and Exchange Commission (the “SEC”) under the Securities Act.

     B. Each Investor, severally and not jointly, wishes to purchase, and the Company wishes to
sell, upon the terms and conditions stated in this Agreement and for a purchase price of $25 per
share, that aggregate number of shares of Series F Convertible Preferred Stock, par value $0.01 per
share, of the Company (the “Series F Stock”), set forth on such Investor’s signature page to this
Agreement (which aggregate amount for all Investors together shall be up to 100,000 shares of
Series F Stock and shall collectively be referred to herein as the “Shares”).

     NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for
other good and valuable consideration the receipt and adequacy of which are hereby acknowledged,
the Company and the Investors, severally and not jointly, agree as follows:

ARTICLE I

DEFINITIONS

     1.1 Definitions. In addition to the terms defined elsewhere in this Agreement, the
following terms have the meanings indicated:

     “Affiliate” means any Person that, directly or indirectly through one or more intermediaries,
controls or is controlled by or is under common control with a Person, as such terms are used in
and construed under Rule 144 under the Securities Act.

     “Agreement” has the meaning set forth in the Preamble.

     “Business Day” means any day other than Saturday, Sunday, any day which shall be a federal
legal holiday in the United States or any day on which banking institutions in The State of New
York are authorized or required by law or other governmental action to close.

     “Closing” has the meaning set forth in the in Section 2.1.

     “Closing Date” has the meaning set forth in Section 2.1.

 

 

     “Company” has the meaning set forth in the Preamble.

     “Company Counsel” means Wilmer Cutler Pickering Hale and Dorr LLP, counsel to the Company.

     “Common Stock” means shares of common stock, par value $0.01 per share, of the Company.

     “Convertible Securities” means any stock or securities (other than Options) convertible into
or exercisable or exchangeable for Common Stock.

     “Disclosure Materials” has the meaning set forth in Section 3.1(e).

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

     “FINRA” has the meaning set forth in Section 3.2(c).

     “Investor” has the meaning set forth in the Preamble.

     “Lien” means any lien, charge, claim, security interest, encumbrance, right of first refusal
or other restriction.

     “Material Adverse Effect” means (i) a material adverse effect on the results of operations,
assets, business or financial condition of the Company and its subsidiaries taken as a whole on a
consolidated basis or (ii) material and adverse impairment of the Company’s ability to perform its
obligations under this Agreement, provided, that none of the following alone shall be deemed, in
and of itself, to constitute a Material Adverse Effect: (i) a change in the market price or
trading volume of the Common Stock or (ii) changes in general economic conditions or changes
affecting the industry in which the Company operates generally (as opposed to Company-specific
changes) so long as such changes do not have a disproportionate effect on the Company and its
subsidiaries taken as a whole.

     “Options” means any outstanding rights, warrants or options to subscribe for or purchase
Common Stock or Convertible Securities.

     “Restricted Shares” has the meaning set forth in Section 4.1(a).

     “SEC” has the meaning set forth in the Preamble.

     “SEC Reports” has the meaning set forth in Section 3.1(e).

     “Series F Stock” has the meaning set forth in the Preamble.

     “Shares” has the meaning set forth in the Preamble.

     “Securities Act” has the meaning set forth in the Preamble.

     “Short Sales” has the meaning set forth in Section 3.2(i).

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     “Trading Day” means (i) a day on which the Common Stock is traded on a Trading Market (other
than the OTC Bulletin Board), or (ii) if the Common Stock is not listed or quoted on a Trading
Market (other than the OTC Bulletin Board), a day on which the Common Stock is traded in the
over-the-counter market, as reported by the OTC Bulletin Board, or (iii) if the Common Stock is not
listed or quoted on any Trading Market, a day on which the Common Stock is quoted in the
over-the-counter market as reported by the Pink Sheets LLC (or any similar organization or agency
succeeding to its functions of reporting prices); provided, that in the event that the Common Stock
is not listed or quoted as set forth in (i), (ii) and (iii) hereof, then Trading Day shall mean a
Business Day.

     “Trading Market” means whichever of the New York Stock Exchange, the American Stock Exchange,
the NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ Capital Market or the OTC
Bulletin Board on which the Common Stock is listed or quoted for trading on the date in question.

     “Transaction” has the meaning set forth in Section 3.2(i).

     “Transfer Agent” means Continental Stock Transfer & Trust Company, or any successor transfer
agent for the Company.

ARTICLE II

PURCHASE AND SALE

     2.1 Closing. The Closing (the “Closing”) of the sale and purchase of the Shares under
this Agreement shall take place on the date hereof (the “Closing Date”), at the offices of Company
Counsel or remotely via the exchange of documents and signatures.

     2.2 Closing Deliveries.

          (a) At the Closing, the Company shall deliver or cause to be delivered to each Investor
evidence of a direct registration account in such Investor’s name as set forth on such Investor’s
signature page to this Agreement, and the deposit, by direct registration, into such account of the
number of Shares purchased by such Investor.

          (b) At the Closing, each Investor shall deliver or cause to be delivered to the Company the
purchase price set forth on such Investor’s signature page to this Agreement in United States
dollars and in immediately available funds, by wire transfer to an account designated in writing to
such Investor by the Company for such purpose.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

     3.1 Representations and Warranties of the Company. The Company hereby represents and
warrants to the Investors as follows:

          (a) Organization and Qualification. The Company is an entity duly organized, validly
existing and in good standing under the laws of the State of Delaware, with the requisite power and
authority to own and occupy its properties and to carry on its business as currently

-3-

 

conducted. The Company is not in violation of any of the provisions of its certificate of
incorporation or bylaws. The Company is duly qualified to do business and is in good standing as a
foreign corporation in each jurisdiction in which the nature of the business conducted or property
owned by it makes such qualification necessary, except where the failure to be so qualified or in
good standing, as the case may be, would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

          (b) Authorization; Enforcement. The Company has the requisite corporate authority to
enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry
out its obligations hereunder. The execution and delivery of this Agreement by the Company and the
consummation by it of the transactions contemplated hereby have been duly authorized by all
necessary corporate action on the part of the Company and no further consent or action is required
by the Company, its Board of Directors or its stockholders. This Agreement has been (or upon
delivery will be) duly executed by the Company and, assuming the due authorization, execution and
delivery by the Investors, is, or when delivered in accordance with the terms hereof, will
constitute, the valid and binding obligation of the Company enforceable against the Company in
accordance with its terms, except (i) as limited by general equitable principles and applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ rights generally and (ii) as limited by laws relating to the availability
of specific performance, injunctive relief or other equitable remedies.

          (c) No Conflicts. The execution, delivery and performance of this Agreement by the
Company and the consummation by the Company of the transactions contemplated hereby do not, and
will not, (i) conflict with or violate any provision of the Company’s certificate of incorporation
or bylaws, (ii) conflict with, or constitute a default (or an event that with notice or lapse of
time or both would become a default) under, or give to others any rights of termination, amendment,
acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement,
credit facility, debt or other instrument (evidencing a Company debt or otherwise) or other
agreement to which the Company is a party or by which any property or asset of the Company is
bound, or affected, except to the extent that such conflict, default, termination, amendment,
acceleration or cancellation right would not reasonably be expected to have a Material Adverse
Effect, or (iii) result in a violation of any law, rule, regulation, order, judgment, injunction,
decree or other restriction of any court or governmental authority to which the Company is subject
(including, assuming the accuracy of the representations and warranties of the Investors set forth
in Section 3.2 hereof, federal and state securities laws and regulations and the rules and
regulations of any self-regulatory organization to which the Company or its securities are
subject), or by which any property or asset of the Company is bound or affected, except to the
extent that such violation would not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect.

          (d) Issuance of Shares and Common Stock. The issuance, sale and delivery of the
Shares in accordance with this Agreement, and the issuance and delivery of the shares of Common
Stock issuable upon conversion of the Shares, have been duly authorized. The Shares when so
issued, sold and delivered against payment therefor in accordance with the provisions of this
Agreement, and the shares of Common Stock issuable upon conversion of the Shares, when issued upon
such conversion, will be duly and validly issued, fully paid and nonassessable, free

-4-

 

and clear of all Liens and will not be subject to preemptive or similar rights of stockholders
(other than those provided for in this Agreement). The Company has reserved from its duly
authorized capital stock the number of shares of Common Stock issuable upon conversion of the
Shares.

          (e) SEC Reports. The Company has filed all documents required to be filed by it under
the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the twelve months
preceding the date hereof on a timely basis or has received a valid extension of such time of
filing and has filed any such documents prior to the expiration of any such extension and has filed
all documents required to be filed by it under the Exchange Act, including pursuant to Section
13(a) or 15(d) thereof, for the two years preceding the date hereof, such documents, together with
any materials filed or furnished by the Company under the Exchange Act, whether or not any such
reports were required being collectively referred to herein as the “SEC Reports” and, together with
this Agreement, the “Disclosure Materials”. As of their respective dates (or, if amended or
superseded by a filing prior to the Closing Date, then on the date of such filing), the SEC Reports
filed by the Company complied in all material respects with the requirements of the Securities Act
and the Exchange Act and the rules and regulations of the SEC promulgated thereunder, and none of
the SEC Reports, when filed (or, if amended or superseded by a filing prior to the Closing Date,
then on the date of such filing) by the Company, contained any untrue statement of a material fact
or omitted to state a material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made, not misleading.

          (f) Capitalization. The authorized capital stock of the Company (immediately prior to
the Closing) consists of 80,000,000 shares of Common Stock, of which 23,055,645 were issued and
outstanding as of such date and 1,000,000 shares of preferred stock, $.01 par value per share, of
which 25,000 shares are designated as Series A Convertible Preferred Stock, 500,000 shares are
designated as Series D Convertible Preferred Stock, 800 shares are designated as Series E
Convertible Preferred Stock and 200,000 shares are designated as Series F Stock, of which no shares
were issued and outstanding as of such date. All outstanding shares of capital stock are duly
authorized, validly issued, fully paid and nonassessable and have been issued in compliance in all
material respects with all applicable securities laws. Except as disclosed in or contemplated the
SEC Reports, the Company does not have outstanding any other Options, script rights to subscribe
to, calls or commitments relating to, or securities, rights or obligations convertible into or
exercisable or exchangeable for, or entered into any agreement giving any Person any right to
subscribe for or acquire, any shares of Common Stock, or securities or rights convertible or
exchangeable into shares of Common Stock. Except as set forth in the SEC Reports, and except for
customary adjustments as a result of stock dividends, stock splits, combinations of shares,
reorganizations, recapitalizations, reclassifications or other similar events, there are no
anti-dilution or price adjustment provisions contained in any security issued by the Company (or in
any agreement providing rights to security holders) and the issuance and sale of the Securities
will not obligate the Company to issue shares of Common Stock or other securities to any Person
(other than the Investors) and will not result in a right of any holder of the Company’s securities
to adjust the exercise, conversion, exchange or reset price under such securities.

-5-

 

          (g) Compliance. Except as would not, individually or in the aggregate, reasonably be
expected to have or result in a Material Adverse Effect, (i) the Company is not in default under
or in violation of (and no event has occurred that has not been waived that, with notice or lapse
of time or both, would result in a default by the Company under), nor has the Company received
written notice of a claim that it is in default under or that it is in violation of, any indenture,
loan or credit agreement or any other agreement or instrument to which it is a party or by which it
or any of its properties is bound (whether or not such default or violation has been waived), (ii)
the Company is not in violation of any order of any court, arbitrator or governmental body, and
(iii) the Company is not in violation of any statute, rule or regulation of any governmental
authority.

     3.2 Representations and Warranties of the Investors. Each Investor hereby, as to
itself only and for no other Investor, represents and warrants to the Company as follows:

          (a) Organization; Authority. If such Investor is an entity, such Investor is an
entity duly organized, validly existing and in good standing under the laws of the jurisdiction of
its organization with the requisite corporate, partnership or other power and authority to enter
into and to consummate the transactions contemplated by this Agreement and otherwise to carry out
its obligations hereunder. The purchase by such Investor of the Shares hereunder has been duly
authorized by all necessary corporate, partnership or other action on the part of such Investor.
This Agreement has been duly executed and delivered by such Investor and constitutes the valid and
binding obligation of such Investor, enforceable against it in accordance with its terms, except
(i) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of
creditors’ rights generally, (ii) as limited by laws relating to the availability of specific
performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and
contribution provisions may be limited by applicable law.

          (b) No Public Sale or Distribution. Such Investor is acquiring the Shares and upon
conversion of the Shares will acquire the Common Stock issuable upon conversion thereof, for its
own account for investment and not with a view towards, or for resale in connection with, the
public sale or distribution thereof, and such Investor does not have a present intention to effect
any distribution of the Shares or such Common Stock to or through any person or entity;
provided, however, that by making the representations herein, such Investor does
not agree to hold any of the Shares or such Common Stock for any minimum or other specific term and
reserves the right to dispose of the Shares and such Common Stock at any time in accordance with or
pursuant to a registration statement or an exemption under the Securities Act.

          (c) Investor Status. At the time such Investor was offered the Shares, it was, and on
the date hereof it is, an “accredited investor” as defined in Rule 501(a) under the Securities Act.
Such Investor is not a registered broker dealer registered under Section 15(a) of the Exchange
Act, nor required to be registered as such, or a member of The Financial Industry Regulatory
Authority (“FINRA”) or an entity engaged in the business of being a broker dealer. Such Investor
is not affiliated with any broker dealer registered under Section 15(a) of the Exchange Act, or a
member of FINRA or an entity engaged in the business of being a broker dealer.

-6-

 

          (d) General Solicitation. Such Investor is not purchasing the Shares as a result of
any advertisement, article, notice or other communication regarding the Shares published in any
newspaper, magazine or similar media, broadcast over television or radio, disseminated over the
Internet or presented at any seminar or any other general solicitation or general advertisement.

          (e) Experience of Such Investor. Such Investor, either alone or together with its
representatives has such knowledge, sophistication and experience in business and financial matters
so as to be capable of evaluating the merits and risks of the prospective investment in the Shares,
including the risk of total loss of such Investor’s investment, and has so evaluated the merits and
risks of such investment. Such Investor understands that it must bear the economic risk of this
investment in the Shares indefinitely, and is able to bear such risk and is able to afford a
complete loss of such investment. Such Investor understands that the market price of the Common
Stock can be volatile and that no representation is being made as to the future value of the Shares
or the Common Stock.

          (f) Access to Information. Such Investor acknowledges that it has reviewed the
Disclosure Materials and has been afforded: (i) the opportunity to ask such questions as it has
deemed necessary of representatives of the Company concerning the terms and conditions of the
offering of the Shares and the merits and risks of investing in the Shares; (ii) access to
information about the Company and each of its subsidiaries and their respective financial
condition, results of operations, business, properties, management and prospects sufficient to
enable it to evaluate its investment; and (iii) the opportunity to obtain such additional
information that the Company possesses or can acquire without unreasonable effort or expense that
is necessary to make an informed investment decision with respect to the investment. Neither such
inquiries nor any other investigation conducted by or on behalf of such Investor or its
representatives or counsel shall modify, amend or affect such Investor’s right to rely on the
Company’s representations and warranties contained herein. Such Investor acknowledges that no
third party has made or will make any representation or warranty to such Investor regarding the
adequacy or completeness for such Investor’s purpose of the information such Investor has
requested. Such Investor acknowledges receipt of copies of the SEC Reports filed through the date
hereof.

          (g) No Governmental Review. Such Investor understands that no United States federal
or state agency or any other government or governmental agency has passed on or made any
recommendation or endorsement of the Shares or the fairness or suitability of the investment in the
Shares nor have such authorities passed upon or endorsed the merits of the offering of the Shares.

          (h) No Conflicts. The execution, delivery and performance by such Investor of this
Agreement and the consummation by such Investor of the transactions contemplated hereby will not
(i) result in a violation of the organizational documents, if any, of such Investor or (ii)
conflict with, or constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination, amendment, acceleration
or cancellation of, any agreement, indenture or instrument to which such Investor is a party, or
(iii) result in a violation of any law, rule, regulation, order, judgment or decree (including
federal and state securities laws) applicable to such Investor, except in the case of

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clauses (ii) and (iii) above, for such that are not material and do not otherwise affect the
ability of such Investor to consummate the transactions contemplated hereby.

          (i) Prohibited Transactions; Confidentiality. Such Investor, directly or indirectly,
has not and no Person acting on behalf of or pursuant to any understanding with such Investor, has
engaged in any purchases or sales in the securities, including derivatives, of the Company
(including, without limitation, any Short Sales (a “Transaction”) involving any of the Company’s
securities) since the time that such Investor was first contacted by the Company or any other
Person regarding the investment in the Company contemplated by this Agreement. Such Investor
covenants that neither it nor any Person acting on its behalf or pursuant to any understanding with
such Investor will engage, directly or indirectly, in any Transactions in the securities of the
Company (including Short Sales) prior to the time the transactions contemplated by this Agreement
are publicly disclosed. “Short Sales” include, without limitation, all “short sales” as defined in
Rule 200 promulgated under Regulation SHO under the Exchange Act and all types of direct and
indirect stock pledges, forward sale contracts, options, puts, calls, short sales, swaps,
derivatives and similar arrangements (including on a total return basis), and sales and other
transactions through non-U.S. broker-dealers or foreign regulated brokers.

          (j) Restricted Securities. Such Investor understands that the Shares (and the shares
of Common Stock into which the Shares are convertible) are characterized as “restricted securities”
under the U.S. federal securities laws inasmuch as they are being acquired from the Company in a
transaction not involving a public offering and that under such laws and applicable regulations
such securities may be resold without registration under the Securities Act only in certain limited
circumstances and that the Company is relying upon the truth and accuracy of, and such Investor’s
compliance with, representations, warranties, agreements, acknowledgements, understandings of such
Investor set forth herein in order to determine the availability of such exemptions of such
Investor and the eligibility of such Investor to acquire the Shares.

          (k) Legends. It is understood that, except as provided in Section 4.1(b) of
this Agreement, certificates evidencing the Restricted Shares may bear the legend set forth in
Section 4.1(c).

          (l) No Legal, Tax or Investment Advice. Such Investor understands that nothing in
this Agreement or any other materials presented by or on behalf of the Company to such Investor in
connection with the purchase of the Shares constitutes legal, tax or investment advice. Such
Investor has consulted such legal, tax and investment advisors as it, in its sole discretion, has
deemed necessary or appropriate in connection with his purchase of the Shares.

          (m) Offering Documents. Such Investor understands that other than this Agreement and
the SEC Reports, no disclosure or offering document will be provided or prepared in connection with
the offer and sale of the Shares contemplated hereby.

          (n) Restrictions on Shares. Such Investor acknowledges that the Company has
represented that no action has been or will be taken in any jurisdiction outside the United States
by the Company that would permit an offering of the Shares, or possession or distribution of
offering materials in connection with the issuance of the Shares, in any jurisdiction outside the

-8-

 

United States where action for that purpose is required. If such Investor is located or
domiciled outside the United States, it agrees to comply with all applicable laws and regulations
in each foreign jurisdiction in which it purchases, offers, sells or delivers Shares or has in its
possession or distributes any offering material, in all cases at its own expense.

-9-

 

ARTICLE IV

OTHER AGREEMENTS OF THE PARTIES

     4.1 Transfer Restrictions.

     (a) Restricted Shares. “Restricted Shares” means (a) the Shares, (b) the shares of
Common Stock issued or issuable upon conversion of the Shares, and (c) any other shares of capital
stock of the Company issued in respect of such shares (as a result of stock splits, stock
dividends, reclassifications, recapitalizations or similar events); provided,
however, that shares of Common Stock which are Restricted Shares shall cease to be
Restricted Shares (x) upon any sale pursuant to a registration statement under the Securities Act,
Section 4(1) of the Securities Act or Rule 144 under the Securities Act or (y) at such time as (i)
a period of at least one year, as determined in accordance with paragraph (d) of Rule 144 under the
Securities Act, has elapsed since the later of the date the Restricted Shares were acquired from
the Company or an Affiliate of the Company and (ii) they become eligible for sale under Rule
144(b)(1)(i) under the Securities Act.

     (b) Requirements for Transfer. Restricted Shares shall not be sold or transferred
unless either (i) they first shall have been registered under the Securities Act or (ii) the
Company first shall have been furnished with an opinion of legal counsel, reasonably satisfactory
to the Company, to the effect that such sale or transfer is exempt from the registration
requirements of the Securities Act.

     (c) Legend. Each certificate representing Restricted Shares shall bear a legend
substantially in the following form:

“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL SUCH SHARES ARE REGISTERED
UNDER SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY IS OBTAINED TO
THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED.”

     The foregoing legend shall be removed from the certificates representing any Restricted
Shares, at the request of the holder thereof, at such time as (a) a period of at least one year, as
determined in accordance with paragraph (d) of Rule 144 under the Securities Act, has elapsed since
the later of the date the Restricted Shares were acquired from the Company or an affiliate of the
Company, and (b) the Restricted Shares become eligible for resale pursuant to Rule 144(b)(1)(i)
under the Securities Act.

     4.2 Furnishing of Information. Until the date that any Investor may sell all of its
Shares (or the shares of Common Stock into which the Shares have at such time converted) under Rule
144 of the Securities Act (or any successor provision), the Company covenants to use its reasonable
best efforts to timely file (or obtain extensions in respect thereof and file within the applicable
grace period) all reports required to be filed by the Company after the date hereof pursuant to the
Exchange Act. The Company further covenants that it will take such further

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action as any Investors holding shares (or the shares of Common Stock into which the Shares
have at such time converted) may reasonably request, to the extent required from time to time to
enable such Investor to sell such Shares (or the shares of Common Stock into which the Shares have
at such time converted) without registration under the Securities Act.

     4.3 Integration. The Company shall not, and shall use its reasonable best efforts to
ensure that no Affiliate thereof shall, sell, offer for sale or solicit offers to buy or otherwise
negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be
integrated with the offer or sale of the Shares in a manner that would require the registration
under the Securities Act of the sale of the Shares to the Investors.

     4.4 Reservation of Securities. At all times during which Shares remain outstanding,
the Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance
pursuant to this Agreement in such amount as may be required to fulfill its obligations to issue
the shares of Common Stock issuable upon the conversion of the Shares. In the event that at any
time the then authorized shares of Common Stock are insufficient for the Company to satisfy its
obligations to issue such shares of Common Stock, the Company shall promptly take such actions as
may be required to increase the number of authorized shares.

     4.5 Treatment of Non-Public Information. Each Investor covenants and agrees with the
Company (a) to hold the existence, terms and conditions of the transactions contemplated by this
Agreement in confidence and not to disclose the same to any other person until such time as the
Company files with the SEC a Current Report on Form 8-K disclosing the offering or publicly
announces the offering, and (b) to hold all matters disclosed to it by the Company (other than any
matters included in the SEC Reports) in confidence and not to disclose the same to any other person
until such time as the Company files with the SEC a report publicly disclosing such information.
Each Investor understands that the federal securities laws impose restrictions on trading based on
information regarding the transactions contemplated by this Agreement.

ARTICLE V

MISCELLANEOUS

     5.1 Fees and Expenses. Each party hereto shall pay the fees and expenses of its
advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such
party incident to the negotiation, preparation, execution, delivery and performance of this
Agreement. The Investors shall pay, and hold the Company harmless against, any liability, loss or
expense (including, without limitation, reasonable attorney’s fees and out-of-pocket expenses)
arising in connection with any claim for fees from persons engages by any Investor or their
investment advisors arising out of the issuance of the Shares pursuant to this Agreement. The
Company shall pay all Transfer Agent fees, stamp taxes and other taxes and duties levied in
connection with the sale and issuance of the Securities.

     5.2 Entire Agreement. This Agreement contains the entire understanding of the parties
with respect to the subject matter hereof and supersedes all prior agreements and understandings,
oral or written, with respect to such matters, which the parties acknowledge have been merged into
such document. At or after the Closing, and without further consideration, the

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Company will execute and deliver to the Investors such further documents as may be reasonably
requested in order to give practical effect to the intention of the parties under this Agreement.

     5.3 Notices. Any and all notices or other communications or deliveries required or
permitted to be provided hereunder shall be in writing and shall be deemed given and effective on
the earliest of (a) the date of transmission, if such notice or communication is delivered via
facsimile or email at the facsimile number or email address specified in this Section 5.3
prior to 6:30 p.m. (Boston time) on a Trading Day, (b) the next Trading Day after the date of
transmission, if such notice or communication is delivered via facsimile or email at the facsimile
number or email address specified in this Section 5.3 on a day that is not a Trading Day or
later than 6:30 p.m. (Boston time) on any Trading Day, (c) the Trading Day following the date of
deposit with a nationally recognized overnight courier service, or (d) upon actual receipt by the
party to whom such notice is required to be given. The addresses, facsimile numbers and email
addresses for such notices and communications are those set forth on the signature pages hereof, or
such other address or facsimile number as may be designated in writing hereafter, in the same
manner, by any such Person.

     5.4 Amendments; Waivers. No provision of this Agreement may be waived or amended
except in a written instrument signed, in the case of an amendment, by the Company and the
Investors holding a majority of the shares of Common Stock issued or issuable upon conversion of
the Shares (voting as a single class and on an as-converted basis) or, in the case of a waiver, by
the party against whom enforcement of any such waiver is sought. No waiver of any default with
respect to any provision, condition or requirement of this Agreement shall be deemed to be a
continuing waiver in the future or a waiver of any subsequent default or a waiver of any other
provision, condition or requirement hereof, nor shall any delay or omission of any party to
exercise any right hereunder in any manner impair the exercise of any such right.

     5.5 Construction. The headings herein are for convenience only, do not constitute a
part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.
The language used in this Agreement will be deemed to be the language chosen by the parties to
express their mutual intent, and no rules of strict construction will be applied against any party.

     5.6 Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties and their successors and permitted assigns. The Company may not assign this
Agreement or any rights or obligations hereunder without the prior written consent of the
Investors. Any Investor may assign its rights under this Agreement to any Person to whom such
Investor assigns or transfers any Shares (or the shares of Common Stock issued upon conversion of
the Shares), provided (a) such transferor agrees in writing with the transferee or assignee to
assign such rights, and a copy of such agreement is furnished to the Company after such assignment,
(b) the Company is furnished with written notice of (i) the name and address of such transferee or
assignee and (ii) the number of Shares (or the shares of Common Stock issued upon conversion of the
Shares) being transferred or assigned, (c) following such transfer or assignment, the further
disposition of such shares by the transferee or assignee is restricted under the Securities Act and
applicable state securities laws, (d) such transferee agrees in writing to be bound, with respect
to the transferred Shares (or the shares of Common Stock issued upon conversion of the Shares), by
the provisions hereof that apply to the “Investor” and (e) such transfer shall have been made to an
“accredited investor” as that term is defined in Rule 501(a)

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of Regulation D of the Securities Act and in accordance with the applicable requirements of
this Agreement and with all laws applicable thereto.

     5.7 No Third-Party Beneficiaries. This Agreement is intended for the benefit of the
parties hereto and their respective successors and permitted assigns and is not for the benefit of,
nor may any provision hereof be enforced by, any other Person.

     5.8 Governing Law; Venue; Waiver of Jury Trial. THE CORPORATE LAWS OF THE STATE OF
DELAWARE SHALL GOVERN ALL ISSUES CONCERNING THE RELATIVE RIGHTS OF THE COMPANY AND ITS
STOCKHOLDERS. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION
OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
DELAWARE. THE COMPANY AND THE INVESTORS HEREBY IRREVOCABLY SUBMIT TO THE NON-EXCLUSIVE
JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE STATE OF DELAWARE FOR THE ADJUDICATION
OF ANY DISPUTE BROUGHT BY THE COMPANY OR ANY INVESTOR HEREUNDER, IN CONNECTION HEREWITH OR WITH ANY
TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE ENFORCEMENT OF
ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY WAIVE, AND AGREE NOT TO ASSERT IN ANY
SUIT, ACTION OR PROCEEDING BROUGHT BY THE COMPANY OR ANY INVESTOR, ANY CLAIM THAT IT IS NOT
PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, OR THAT SUCH SUIT, ACTION OR PROCEEDING
IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO
PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF VIA
REGISTERED OR CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) TO SUCH PARTY AT THE
ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE SHALL
CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN
SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW. THE
COMPANY AND THE INVESTORS HEREBY WAIVE ALL RIGHTS TO A TRIAL BY JURY.

     5.9 Survival. The representations and warranties, agreements and covenants contained
herein shall survive the Closing until the date that is one year after the Closing Date (at which
time they shall expire and be of no further force or effect).

     5.10 Execution. This Agreement may be executed in two or more counterparts, all of
which when taken together shall be considered one and the same agreement and shall become effective
when counterparts have been signed by each party and delivered to the other party, it being
understood that both parties need not sign the same counterpart. In the event that any signature
is delivered by facsimile transmission or email attachment, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is executed) with the
same force and effect as if such facsimile or email-attached signature page were an original
thereof.

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     5.11 Severability. If any provision of this Agreement is held to be invalid or
unenforceable in any respect, the validity and enforceability of the remaining terms and provisions
of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt
to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon
so agreeing, shall incorporate such substitute provision in this Agreement.

     5.12 Replacement of Certificates. If any certificate or instrument evidencing any
Shares or the shares of Common Stock issued upon conversion of the Shares is mutilated, lost,
stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for
and upon cancellation thereof, or in lieu of and substitution therefor, a new certificate or
instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss,
theft or destruction and the execution by the holder thereof of a customary lost certificate
affidavit of that fact and an agreement to indemnify and hold harmless the Company for any losses
in connection therewith. The applicants for a new certificate or instrument under such
circumstances shall also pay any reasonable third-party costs associated with the issuance of such
replacement.

[SIGNATURE PAGES FOLLOW]

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

	 	 	 	 	 
	 	ALSERES PHARMACEUTICALS, INC.

 	 
	 	By:  	/s/ Kenneth L. Rice
 	 
	 	 	Name:  	Kenneth L. Rice 	 
	 	 	Title:  	EVP & CFO 	 
	 

	 	 	 	 	 
	 	 	Address for Notice:
	 
	 	 	 	 
	 	 	239 South Street
	 	 	Hopkinton, MA 01748
	 
	 	Tel:	 	(508) 497-2360
	 
	 	Fax:	 	(508) 497-9964
	 
	 	Attn:	 	Chief Executive Officer
	 
	 	 	 	 
	 
	 	With a copy to:
	 
	 	 	 	 
	 	 	Wilmer Cutler Pickering Hale and Dorr LLP
	 	 	60 State Street
	 	 	Boston, Massachusetts 02109
	 
	 	Tel	 	(617) 526-6439
	 
	 	Fax:	 	(617) 526-5000
	 
	 	Attn:	 	Philip Rossetti, Esq.

 

Investor Signature Page

     By its execution and delivery of this signature page, the undersigned Investor hereby joins in
and agrees to be bound by the terms and conditions of the Securities Purchase Agreement dated as of
March 19, 2009 (the “Purchase Agreement”) by and among Alseres Pharmaceuticals, Inc. and the
Investors (as defined therein), as to the number of shares of Series F Convertible Preferred Stock
(“Shares”) set forth below, and authorizes this signature page to be attached to the Purchase
Agreement or counterparts thereof.

	 	 	 	 	 
	 	Name of Investor:

Robert L. Gipson

 	 
	 	By:  	/s/ Robert L. Gipson
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 
	 

	 	Address for Notice:
 

	 

	 	 

	 

	 	 

	 

	 	Telephone No.:
 

	 

	 	Facsimile No.:
 

	 

	 	Email Address:
 

	 

	 	Number of Shares: 20,000

	 

	 	Aggregate Purchase Price: $500,000

-2-

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