Document:

Exhibit 10.2

Exhibit 10.2

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT (INDICATED BY ASTERISKS) HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT.

Supplement One

This Supplement One (the “Supplement”) is entered into as of July 14, 2010 (the “Effective Date”)
by and between Somaxon Pharmaceuticals, Inc. (“Client”), a Delaware corporation with offices at
3570 Carmel Mountain Road, Suite 100, San Diego, CA 92130 and Publicis Touchpoint Solutions, Inc.,
a New Jersey corporation, with offices at 2000 Lenox Drive, Suite 100, Lawrenceville, New Jersey
08648 (“Publicis”) and is attached and made a part of that certain Professional Detailing Services
Agreement dated as of July 14, 2010 (the “Agreement”) by and between Client and Publicis. The terms
and conditions of the Agreement are incorporated herein by reference and all defined terms shall
have the same meaning as set forth in the Agreement, unless otherwise defined herein.

	I.	 	Overview of Program

	 	 	 
	Detailing Program Length:

	 	Subject to earlier termination pursuant to Section 13 of the Agreement, a two-year
period beginning August 30, 2010 and running through August 29, 2012. If Client
wishes to continue the Program beyond August 29, 2012, Client must provide Publicis
written notification no later than 90 days prior to such date. If Client elects to
continue the Program beyond the term of this Supplement, the parties will enter into
a new Supplement to this Agreement defining the terms relating to such continuation.
	 
	 	 
	Product

	 	Silenor and any other product as mutually agreed upon in writing by the parties
	 
	 	 
	Target Prescribers:

	 	Psychiatrists, Sleep Specialists, and other healthcare providers as set forth in the
Target Prescriber List to be provided to Publicis by the Client no later than August
31, 2010
	 
	 	 
	Call Goals/Frequency:

	 	Target calls and Frequency as specified by Client to Publicis prior to Program start,
provided that the parties will endeavor to have each of the Representatives provide
at least 1,540 Calls per year of the program (i.e., 220 field days of 7 Calls per
day).
	 
	 	 
	Territories:

	 	110 Territories as mutually agreed by the parties by August 30, 2010
	 
	 	 
	No. of
Representatives:

	 	110 Full-Time Representatives to be hired by August 30, 2010 and meeting all Client
specifications as set forth in the hiring profile detailed in Attachment 2
	 
	 	 
	No. of Field
Managers:

	 	1 Regional Field Coordinator
	 
	 	 
	 

	 	1 National Business Director
	 
	 	 
	Total Program Costs:

	 	Year One
	 
	 	 
	Start-up Costs:

	 	***
	 
	 	 
	Direct Rep Cost:

	 	***
	 
	 	 
	Direct Program 

Management Cost:

	 	***
	 
	 	 
	Backfill Recruiting:

	 	***
	 
	 	 
	Management Fee at
Risk:

	 	***
	 
	 	 
	Estimated Pass-Thru:

	 	***
	 
	 	 
	Total:

	 	***

 

	 	 	 
	***	 	Certain information on this page has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

 

The Program Costs for Year 2 are as estimated in Attachment 1. Year two costs assume an increase to
compensation and other expenses of *** which will be mutually agreed to ninety (90) days prior to the start of
the Program year two. Pass thru costs may be further adjusted at that time to reflect actual spending incurred
in Program year one.

	II.	 	Detailed Program Costs

	 	 	 
	Direct Rep Cost:

	 	Full-Time Representatives
	 
	 	 
	 

	 	***
	 
	 	 
	Direct Program Management Cost:

	 	***

	A.	 	Direct Rep Cost Includes

	 	•	 	Number of Representatives listed above.

	 	•	 	Representatives’ time for Territory selling activities, including Detailing,
training, convention and meeting attendance.

	B.	 	Direct Program Management Cost Includes

	 	•	 	Number of Field Managers listed above.

	 	•	 	Field Managers’ time for District management activities, including field coaching
and appropriate documentation/follow-up; recruiting, hiring, and training support;
compliance; and administration.

	 	•	 	Services of Publicis Client Services Team including a Director and Associate up to
*** of their time on an annual basis to coordinate with the following functional areas
to ensure Client contract requirements are met: Recruiting, Human Resources, Finance,
Incentive Compensation, Data, Reporting and Information Technology.

	 	•	 	Standard computer software including Microsoft Office (2007 edition) and Lotus
Notes, coordination of help desk support, asset management, and administration of Sales
Force Automation system. Further adjustment of the standard software may result in a
change to fees.

	 	•	 	Monthly reporting and data to include:

	 	 	 	***

The format of all reports will be Microsoft Excel based and shall be developed by
Publicis and reasonably acceptable to Client and shall include both summary information
as well as detailed information at the Territory and Representative level.

	 	•	 	Incentive Compensation administration including eligibility verification, and portal
reporting and payouts with timing as set forth below under “Estimated Pass-Thru Costs”.

	 	•	 	Other direct costs such as worker’s compensation insurance, expense reporting system
and payroll processing costs.

 

	 	 	 
	***	 	Certain information on this page has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions.

 

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	C.	 	Direct Program Cost Excludes

	 	•	 	Pass-Thru Costs (costs separately stated below).

	 	•	 	Program Start-Up Expenses (costs separately stated below) and Initial Product
Training.

	 	•	 	Computer hardware (costs separately stated below)

	 	•	 	Training meetings, POA meetings, conventions, and Manager meeting expenses.

	 	•	 	Training support for the Program other than for Publicis employment policies and
SFA.

	 	•	 	Target Prescriber Lists and any updating or correction of that data including
validation of state license numbers and dates.

	 	•	 	Meeting planning or coordination services.

	 	•	 	Sample distribution and fulfillment.

	D.	 	Estimated Backfill Recruiting ***

	 	•	 	Backfill recruiting of the 110 territories is estimated for *** turnover. Estimated
fees cover *** Representative turns at a fee of *** per territory. Fees do not include any
candidate or Publicis recruiter travel which will be billed separately at cost. No outside
recruiter will be used without the prior written consent of Client, Notwithstanding
anything to the contrary in this Supplement or the Agreement, Client will not be required to
pay any fees or expenses relating to recruiting or Publicis-provided training for any
Representative or Field Manager personnel to the extent that such Representative or Field
Manager resigns from the Program or is requested by Client to be removed from the Program
for performance reasons within the first 12 weeks of such Representative’s or Field
Manager’s commencement of employment on the Program.

	E.	 	Management Fee at Risk ***

	 	•	 	Performance Risk Metrics as outlined in Attachment 3.

	F.	 	Estimated Pass-Thru Costs ***

Pass-thru expenses will be charged to Client based in the amount invoiced to Publicis in
each case, with no mark-up or surcharge added by Publicis.

	 	•	 	Representative bonus and related taxes (at ***) of *** representing a per
Representative target bonus of *** to be based upon achievement of performance metrics
outlined in an incentive plan mutually agreed upon by both parties. Determination and
payment of bonuses for the 2010 calendar year will be done once, and determination and
payment of bonuses for the remainder of the term of the Program will be done based on
4-month periods (i.e., January through April, May through August and September through
December).

	 	•	 	Regional Field Coordinator bonus and related taxes (at ***) of *** and National
Business Director bonus and related taxes (at ***) of *** to be based upon achievement
of performance metrics outlined in an incentive plan mutually agreed upon by both
parties. Determination and payment of bonuses for the 2010 calendar year will be done
once, and determination and payment of bonuses for the remainder of the term of the
Program will be done based on 4-month periods (i.e., January through April, May through
August and September through December).

 

	 	 	 
	***	 	Certain information on this page has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions.

 

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	 	•	 	Representative field related expenses of *** including Fleet and gas allowance,
tolls, parking, overnight travel assuming *** per month for *** territories and ***
overnights per month for *** territories, access funds at *** per month per territory,
telephone, wireless access, storage lockers (to the extent approved by Client in
writing in advance), printers and incidental expenses. Fleet estimates are based on
Malibu model pricing and a two-year lease plan. The gas reimbursement is estimated at
$.15/mile and will be reimbursed via a fuel card. Expense reimbursement will be made
in compliance with Client’s Travel and Expense Reimbursement Policy which will be
provided to Publicis in advance of Program launch. The parties will have a good faith
discussion regarding any policies that differ from the Publicis standard. (No detail
bags or name badges are included in estimates.)

	 	•	 	Field Management field related expenses of *** Fleet and gas allowance, tolls,
parking, telephone, wireless access, and incidental expenses. Fleet estimates are
based on Ford Explorer XLT model pricing and a two-year lease plan. The gas
reimbursement is estimated at $.15/mile and will be reimbursed via a fuel card.
Telephone, wireless access, and office supplies has been budgeted at *** per Regional
Field Coordinator per month and *** per month for the National Business Director.
Air, hotel, meals and other travel incidentals have been budgeted at *** per Regional
Field Coordinator per month and *** per month for the National Business Director.
Expense reimbursement will be made in compliance with Client’s Travel and Expense
Reimbursement Policy which will be provided to Publicis in advance of Program launch.
The parties will have a good faith discussion regarding any policies that differ from
the Publicis standard.

	 	•	 	Client Management Fleet and gas allowance of *** for 10 Regional Sales Managers.
Fleet estimates are based on Ford Explorer XLT model pricing and a two-year lease plan.
The gas reimbursement is estimated at $.15/mile and will be reimbursed via a fuel
card.

	 	•	 	Client services travel at an estimated cost of ***. This is expected to be used for
general meeting travel not otherwise included in meeting budgets, as required by the
Program and approved in advance by Client. Attendance at initial training, POAs or
other formal meetings will be billed with all related other costs for those specific
meetings.

	 	•	 	Two-day District level POA meetings to be held twice during the year at an estimated
cost of ***

	 	•	 	Sales Force Automation licensing, asset management and help desk support, and sample
administration:

	 	•	 	Sales Force Automation of ***

	 	•	 	Asset management and help desk support of ***

	 	•	 	Sample Administration of *** as outlined in Attachment 4

 

	 	 	 
	***	 	Certain information on this page has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions.

 

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	F.	 	Program Start-up Expense ***

	 	 	 
	Recruiting:

	 	*** (Includes ads, sourcing, screening,
interviewing, drug and background checks.
Sourcing and screening activities will be
performed by both Publicis employees and
subcontractors. Excludes recruiter and
candidate travel which would be billed as a
pass-thru cost as outlined in the recruiting
hiring events below.)
	 
	 	 
	Recruiting Hiring Events:

	 	*** (Estimated costs of *** hiring events
including meeting costs and travel., Hiring
events will be attended by one or more of
Client’s Regional Sales Managers. All costs to
be billed on a pass-thru basis.)
	 
	 	 
	Field Management Time:

	 	*** (Field Management team start will be
consistent with Representative start date.)
	 
	 	 
	Computer Hardware

	 	*** (Tablets plus *** excess stock to serve as
a spare pool including wireless card and car
charger.) The computer hardware will be owned
by Client and will be billed as a pass-thru
cost. Equipment to be provided is the HP
EliteBook 2730p with a built in mobile
broadband module. Equipment specifications may
change depending upon hardware availability
though any such change will be approved by the
Client.
	 
	 	 
	Training

	 	*** (Estimated possible costs for online
training tools at a cost of ***. Funds to be
rebated if not utilized. Initial Training
facilitation for sales force automation systems
configured and maintained by Publicis is
included at a cost of ***. This pass-thru cost
assumes *** facilitators and *** aides for ***.
Publicis standard computer use videos will be
adjusted for Client specifications at a
pass-thru cost of no more than ***. There will
be no cost for the training on Publicis
employment policies and procedures.)
	 
	 	 
	System Configuration:

	 	*** (Setup and configuration of computer
equipment including a change to the Publicis
standard image to include Windows/Office 2007
to be consistent with Client’s standard image,
standard Sales Force Automation system,
management reporting, sample accountability,
and incentive compensation plan creation and
implementation. Also included is *** hours of
territory alignment adjustments. Costs related
to the meeting travel for the alignment process
will be billed separately as a pass-thru cost.)

 

	 	 	 
	***	 	Certain information on this page has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions.

 

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	III.	 	Payment / Reconciliation

	A.	 	Payment — The payment schedule for Program Year One
is as follows:

	 	 	 
	Start-up Costs:

	 	*** less any payments made under approved
Interim Letter Agreements due upon Signing
Supplement.

*** due upon the later of September 1,
2010 or completion of start-up phase to
Client’s reasonable satisfaction.

Client will be provided a rebate of

 ***
for any candidate hired by Publicis that
is provided by Client.
	 
	 	 
	Direct Rep and Management Costs:

	 	Client will make twelve equal monthly
payments in the amount of *** relating to
the first program year to Publicis to
cover the Program Costs, with each such
payment being equal to the total Direct
Rep Cost and the Direct Program Management
Cost for the then-current year of the
Program (e.g., Year 1 or Year 2) divided
by 12. The first monthly payment will be
due and payable on September 1, 2010.
Each additional monthly payment will be
due and payable on the 1st of each month of
the first year of the Program with the
last payment relating to the first program
year due August 1, 2011.
	 
	 	 
	Pass-Thru Costs (excluding bonus and
POA meeting costs):

	 	Client will make twelve equal monthly
payments to Publicis in the amount of ***
to cover the Pass-Thru Costs, with each
such payment being equal to the total
estimated Pass-Thru Costs for the
then-current year of the Program (e.g.,
Year 1 or Year 2) divided by 12. The
first monthly payment will be due and
payable on September 1, 2010. Each
additional monthly payment will be due and
payable on the 1st of each month of the
first year of the Program the last payment
relating to the first program year due
August 1, 2011.
	 
	 	 
	Pass-Thru Costs (bonus and POA meeting
costs only):

	 	Client will make
three equal
payments to
Publicis in the
amount of *** to
cover the Pass-Thru
Costs related to
bonus and POA
meetings, with each
such payment being
equal to the total
estimated Pass-Thru
Costs for those
expenses in the
then-current year
of the Program
(e.g., Year 1 or
Year 2) divided by
3. The first
payment will be due
and payable on
January 1, 2011.
The second payment
will be due on May
1, 2011, with the
last payment
relating to the
first program year
due September 1,
2011.
	 
	 	 
	Backfill Recruiting

	 	On a monthly basis, for each
representative that leaves during the
program year, Publicis will bill for
actual turnover that occurs during the
preceding month at a rate of *** per
replacement Representative that is hired.
Publicis will not bill for any
representative that resigns from the
program within the first twelve weeks of
the program or for any representative that
is removed from the Program for
performance reasons during such 12-week
period.
	 
	 	 
	Management Fee at Risk:

	 	Amounts will be due once it can be
demonstrated that the applicable
Performance Risk Metric has been met.

In the event Publicis provides any additional services as requested by Client which are not
included in the Direct Program Costs or Start-up Costs, including any additional
administration, software, and database services, or exceeds the Resource allocations as
outlined in the Direct Program Costs Include section above, Publicis shall be entitled to
charge Client for its reasonable time spent in the provision of such services and/or in
excess of the Resource allocation at a rate of no more than *** per hour, in each case where
approved in advance by Client in writing.

Subject to adjustments in accordance with Section III.B below and Section 3 of the
Agreement, all payments are due in full by the dates indicated above.

 

	 	 	 
	***	 	Certain information on this page has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions.

 

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	B.	 	Reconciliation

Publicis shall provide a written quarterly reconciliation of Program costs, including
Full-Time Sales Representative days, and actual Pass-Thru Costs within forty-five (45) days
of the end of each calendar quarter and sixty (60) days of the end of the Program. Any
overpayment or underpayment with respect to any quarter (or stub period relating to the end
of the program) will be applied by Publicis to the next possible monthly billing. Any
amounts that are disputed in good faith by a party shall be paid by such party promptly upon
resolution of such dispute if the adjustment cannot be applied to a subsequent monthly
invoice. At the end of the Term, any unearned monies shall be returned to Client within
fifteen (15) days of the reconciliation. Publicis’ finance team will work with Client’s
finance team to provide reasonable interim guidance requested by Client that will assist in
Client’s monthly close process.

In the event a vacancy arises in a Field Management position, Client shall be entitled to a
pro rata rebate equal to *** for the Regional Field Coordinator position and *** for the
National Business Director. Any adjustment for any such vacancy will be made to subsequent
billings within fifteen days (15) after Client’s receipt of the reconciliation referenced in
the preceding paragraph, provided, however, that any amounts that are disputed in good faith
by a party shall be paid by such party promptly upon resolution of such dispute.

	IV.	 	Training Program(s)/Other

(a) Except to the extent included in Pass-Thru Costs as set forth above, all Publicis’
reasonable out of pocket expenses for Client approved training meetings and any follow up
sales meetings including reasonable hotel, airfare, meals and miscellaneous incidental
expenses for Representatives and approved Publicis management attendees are payable by
Client and will be due within 30 days of Client’s receipt of a detailed invoice for such
expenses.

(b) All Publicis’s reasonable out-of-pocket expenses (travel, shipment of all returned
Product Samples, Product Promotional Materials and sales folders or sales bags) related to
the closeout of Publicis’s services hereunder and any Client requested Territory closeouts
prior to the termination of this Program, will be due within 30 days of Client’s receipt of
a detailed invoice for such expenses. In addition, Field Management salaries and related
costs, as agreed to by Client, will be billed to Client at cost for their time spent in
assisting with closeout activities, typically for the month following the end of the
Program.

	V.	 	Fleet

(a) The Program as outlined in this Supplement assumes fleet vehicles that will be utilized
by Client for the Program over a two year period. Client has financial responsibility for
the book value (remainder of lease) on those vehicles that are turned in before they have
been fully depreciated and any of the following costs that apply: pick-up, storage,
detailing, maintenance and repair and transportation. Should PSS be able to redeploy some
or all of the vehicles to another program, Client has financial responsibility for any
period that remains until the vehicles have been reassigned, or for any vehicles that have
not been reassigned.

Client has financial responsibility for all remarketing costs as a result of vehicle mileage
or other reasons, in each case as approved by Client in advance, including but not limited
to (as applicable) fleet provider administrative fees, difference between the proceeds of
the sale of the original vehicle and its book value, and incremental amortization due to
increased value of new vehicles. Remarketing costs will be communicated to Client as they
arise and will be outlined in a Project Estimate.

 

	 	 	 
	***	 	Certain information on this page has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions.

 

7

 

(b) At termination or upon conversion, Client assumes financial responsibility for the
remaining leased car payments (to include rental, interest, depreciation), maintenance
programs fees, motor vehicle record check fees, maintenance costs, miscellaneous costs
(title, registration, new car carry charges, registration renewals, delivery charges due to
territory realignments or changes in driver’s address.) Publicis will make reasonable
efforts to cancel any services provided by their third party fleet provider in support of
the fleet vehicles.

(c) During the term of this Supplement, Client assumes financial responsibility for all
bridge rental costs approved by Client in advance in writing.

	VI.	 	Representative Buy-Out

Client may also hire Publicis’ Representatives, after providing 30 days notice, by paying to
Publicis a fee in accordance with the following schedule:

	 	 	 
	First Day of Employment With Client	 	Fee Owed to Publicis
	Six to Twelve months from August 30, 2010

	 	*** per Representative
	Thirteen to Twenty-four Months from August 30, 2010

	 	*** per Representative
	After Twenty-four months from August 30, 2010

	 	*** per Representative

All payments under this Section are due in full thirty (30) days after the first day of
employment with Client for the Representative. If Client hires a Representative while the
Project is in effect, Publicis shall not replace such Representative up to a total of ***
Representatives, or *** of the total Representatives, unless requested to do so by Client in
writing. In the event that Client hires more than *** Representatives and does not desire
to have such Representatives replaced, the parties will discuss in good faith the Program
and related costs going forward, with adjustments to be included in an amendment to this
Supplement.

In the event that Client hires Representatives contemporaneously at any time during the
term of the Program that are not replaced, all Direct Program Rep Costs, Direct Program
Management Costs and Estimated Pass-Thru Costs will thereafter be reduced as applicable and
documented in an amendment to this Supplement.

	VII.	 	Right of Inspection of Records

Publicis shall maintain complete and accurate files and records related to Program Costs and
related to Publicis’ billings pursuant to the Agreement and this Supplement. Client shall
have the right, upon reasonable notice, to examine in such detail as Client in its sole
discretion deems desirable or appropriate all such records, including supporting
documentation, at any time or times during the term of this Supplement and during the period
ending on the later of one year after the termination of the Agreement, this Supplement or
the resolution of any disputes between Client and Publicis pursuant to Section 8E of the
Agreement. Such examinations shall take place at Publicis’ principal place of business or
another location mutually agreed upon by Client and Publicis.

 

	 	 	 
	***	 	Certain information on this page has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions.

 

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IN WITNESS WHEREOF, the parties hereto have executed this Supplement through their duly
authorized representatives effective as of the Effective Date.

Dated: July 14, 2010

PUBLICIS TOUCHPOINT SOLUTIONS, INC.

	 	 	 	 	 
	By:

	 	/s/ Karen L. Kelly
 

Name: Karen L. Kelly

Title: SVP Finance, Contracting & Pricing
	 	 
	 
	 	 	 	 
	SOMAXON PHARMACEUTICALS, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Richard W. Pascoe
 

Name: Richard W. Pascoe

Title: President & CEO
	 	 

 

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Attachment 1 — Pricing Worksheet

***

 

	 	 	 
	***	 	Certain information on this page has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions.

 

10

 

Attachment 2 — Hiring Profile

Knowledge/Skills /Experience:

	•	 	BS/BA Degree Required

	•	 	2+ years of Specialty Pharmaceutical Sales Experience or its
equivalent

	•	 	Proven track record of success, especially with launch products

	•	 	Must be self starter

	•	 	Demonstrated team work/ collaboration

	•	 	Good organizing/planning skills/disciplined

	•	 	Excellent communication skills

	•	 	Judgment/ Decision Making

	•	 	Computer Proficient

Performance Competencies:

	•	 	Demonstrated ability to work collaboratively in a start up organization

	•	 	Strong verbal/written communication skills

	•	 	Goal-oriented with a high level of integrity and an excellent work ethic

	•	 	Willing to travel as necessary to effectively cover assigned territory
and commit to hours beyond the normal 8 a.m. to 5 p.m. for special evening or
morning functions

	•	 	Proficient with Microsoft Office Suite

	•	 	Valid driver’s license in the state where you live

Principle Working Relationships/ Contacts:

	•	 	Reports directly to the Publicis National Business Director/Regional Field
Coordinator.

	•	 	Works closely with client Regional Sales Manager

	•	 	Cooperates with various headquarters departments, when necessary and appropriate on
matters of mutual concern.

	•	 	Maintains a positive working relationship with key customers and external contacts.

 

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Attachment 3 — Performance Risk Metrics

Publicis will place *** of the Management Fee at risk subject to Publicis achieving the performance
metrics as described below (“Performance Fee”) for the Program.

	 	 	 	 	 
	Performance Metric	 	Performance Fee Amount at Risk	 	Timing/Frequency
	1. Initial Recruiting

	 	***
	 	Upon Completion
	2. Initial Training

	 	***
	 	Upon Completion
	3. Vacancy Management

	 	***
	 	Ongoing Quarterly
	4. Call Attainment

	 	***
	 	Ongoing Quarterly
	5. Sales Performance

	 	***
	 	Ongoing Quarterly

***

 

	 	 	 
	***	 	Certain information on this page has been omitted and filed separately with the Securities and
Exchange Commission. Confidential treatment has been requested with respect to the omitted
portions.

 

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Attachment 4 — Sample Administration

The following more fully describes the sample accountability services to be provided and activities
to be performed by Publicis.

Sample Accountability Services Overview

Pharmagistics, a division of Publicis Touchpoint Solutions, Inc. will provide a PDMA compliant
Sample Accountability system to Client in support of the sales team to be hired by Publicis
Touchpoint Solutions. All data is either initially captured on the Veeva SFA system or a PDMA
compliant paper-based system which will also serve as a back up to the electronic data. All sample
transaction data is transmitted daily, reviewed through QA processes and imported into the Sample
Accountability system by Pharmagistics personnel. Our system is designed to minimize the
administrative impact on your Client sales representatives while maximizing the accuracy of sample
distribution tracking and reducing compliance risk.

Program Setup

SOP & Procedures Development/Implementation & System Verification

To minimize the impact to our client’s personnel, Pharmagistics has developed a standard set of
SOPs outlining processes, roles and responsibilities for the set up and implementation of sample
accountability programs. The standard SOPs will be customized to Client business requirements,
with input, approval and sign-off anticipated from Client. The SOPs will be compliant with the
more stringent of either Pharmagistics or Somaxon standard policies, where Somaxon policies are
provided to Pharmagistics in writing in advance. The SOPs simplify the start up process, provide a
clear time and event calendar and identify the key decisions required to successfully implement the
program. Pharmagistics has an implementation checklist used to ensure that the program
implementation is smooth and timely.

The expected implementation timeline is between 4 and 6 weeks. During this time all program SOPs,
web reports, system verification, call documents, training, system development and weekly review
meetings are completed. A “go live” date is established as the benchmark for completion of all
start up requirements.

Our start up program clearly defines roles, responsibilities and expectations for both Client and
Pharmagistics personnel. We have developed standardized PDMA compliant Standard Operating
Procedure (SOP) templates and we will work closely with your personnel to customize them to
specifically meet your business and marketing needs. Since Pharmagistics has already developed SOP
templates for internal use, Field Managers and Field Representatives, the process of incorporating
your business needs can be accomplished quickly and with little effort on your part. We will
identify for you the key questions that you will need to answer. The SOPs include:

Internal SOPs:***

Program Support

A core team of experts will be assigned to Client, in order to assure proper program implementation
and success. This team and their deliverables, timelines, and action items will be under the care
and management of the assigned Sample Accountability Manager, who will also serve as The Client’s
main point of contact for Sample Accountability. This one point of contact will be assigned to
Client to handle all Home Office and Sales Force inquiries, as well as be the initiation point in
the escalation process, should that be required. This team will be trained in adherence to the
Client business rules defined for the program to support all Home Office personnel, Client sales
representatives and Field Managers.

Under the direction of the Sample Accountability Manager for Client, additional team members will
be assigned to provide the delivery of services to Client. The team is comprised of the individuals
responsible for the day-to-day activities and will be selected from seasoned professionals.

Pharmagistics will also set up regular conference calls with Client personnel to review program
status, address action items and issues, and ensure future success. In addition, Pharmagistics,
with approval from Client, will conduct bi-annual joint Quality Improvement Feedback Sessions to
review customer satisfaction and discuss such subjects as continuous improvement ideas and supplier
performance.

 

	 	 	 
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Call Universe Maintenance

Pharmagistics will maintain the Client practitioner universe, Client sales representative rosters,
zip/territory files and will establish a data exchange SOP between Client and Pharmagistics.

Forms Development/Printing & Shipping

We have design templates of all forms necessary for PDMA compliance, and will work with Client to
customize them to your unique business needs. Such forms are to be used to back up the electronic
process as necessary. Procedures are in place to control any modifications to forms to ensure that
only current/approved forms are in use. We coordinate the design, approval, printing, storage and
shipment of all forms. With over 100,000 square feet of warehouse space, Pharmagistics stores and
ships all forms directly from our facility. The following forms are required:

	•	 	Sample Transaction Forms
	 
	•	 	Sample Distribution Forms
	 
	•	 	Sample Storage Location Inspection Form
	 
	•	 	Practitioner Labels
	 
	•	 	Rep Labels
	 
	•	 	Business Reply Envelopes
	 
	•	 	Compliance Policy Statements
	 
	•	 	Miscellaneous Forms

The forms are not specific to a Client sales representative or a physician, so there will be no
wasted forms. Physician and Client sales representative specific information can be captured on
the labels that are distributed to your Client sales representatives based on their call universe.
Those labels are affixed to the forms by the Client sales representative in the field. For
non-targeted practitioners, the Client sales representative uses the same forms, however, they will
hand write the practitioner information and use a rep label.

We distribute the appropriate number of forms and labels to each Client sales representatives based
on pre-determined cycles. Business Reply Envelopes (BRE’s) are distributed to each Client sales
representatives with the sample forms for the return mailing of completed forms to Pharmagistics
for processing.

Processing of Forms

All call forms received by Pharmagistics are scanned the day of receipt and are available on-line
through a secured web site for viewing by Client, within 5 business days. The original documents
are then archived and the digital image is used for all further processing. The digital image of
the form goes though a Double Data Verification process where an operator will re-key all
information field by field. If the operator keys a different value than what was read by the
computer, then the operator must re-key the individual field and will not be allowed to advance to
the next field until the application receives the same information twice consecutively. Once the
Data Verification process is complete, the form information is imported into our database and
checked for errors (no Physician Signature, Lot # missing, etc.).

Errors on call forms can be a result of missing, incomplete, or illegible information.
Pharmagistics attempts to clear as many errors as possible before creating an error report that
will be sent back to the Client sales representatives for correction. Pharmagistics’ correctable
errors are corrected with 5 business days of receipt of the original call document.

If Pharmagistics cannot correct the error, then an error report, which contains the digital image
of the call card with all errors for correction clearly identified, is sent to the Client sales
representatives. The Client sales representative corrects the errors directly on the report and
sends it back to Pharmagistics. An example would be a call card with no practitioner signature. A
scanned image of the document is sent to the Client sales representatives with instructions to have
the Practitioner sign the digital image. The Client sales representative mails the document back
to Pharmagistics. Typically, most errors are corrected and returned to Pharmagistics within two
weeks. Upon receipt it is scanned and stored with the original image. This provides an audit
trail for all call cards processed and ensures accuracy, as well as authentication for the correct
errors processed.

 

14

 

Practitioner Validation

This service is available at an additional cost. Pharmagistics uses a third party source for
validation of practitioners. We believe that this source provides the most consistent and
sustainable source of validation consistent with PDMA regulations. If Client already has an
agreement with a third party provider of physician validation information, Pharmagistics will work
directly with that provider to facilitate the validation process at no extra charge to
Client.Reporting

Pharmagistics will utilize web based reporting for Client. Using this method, real time
information is available to you at your convenience. Reports can be viewed on-line and/or
downloaded into Excel for further manipulation. Since all reports are available real time, Client
personnel can run reports from anywhere at any time. Standard reports (web-based) include:

***

It is assumed that the Client will complete all reporting to the FDA, DEA and other government or
regulatory authorities.

Audit & Security

Pharmagistics has worked with a number of independent auditors and can provide information to the
auditors necessary for completion of their audits. We also compile statistical data on the
completed, reconciled, non-completed audits and tracking of all required documents.

Pharmagistics has developed SOPs (including recommendations for frequency and depth of audits) and
systems specifically designed to identify discrepancies and inconsistencies of field force
personnel that do not comply with Client policies and procedures. The level of discrepancy
determines the escalation of the investigation and its outcome.

Random Signature Audits

On a monthly basis, Pharmagistics shall perform a random audit of call cards for eight and
one-third percent (8.3%) of the field force which equates to auditing 100% of the field force in a
twelve (12) month period. Signature verification is requested from the practitioner who signed the
call card accepting the sample.

For Cause Audits

Pharmagistics will perform additional signature verifications as requested by Client.
Pharmagistics will cooperate with Client in providing additional sample accountability documents
and trending information that may be useful to Client in performing for cause audits.

Monthly Independent Compliance Review

On a monthly basis Pharmagistics will randomly audit ten percent (10%) of the Client sales
representative files to ensure that the files are current. A report will be provided monthly
highlighting those representatives who are out of compliance.

Field Force Training

Pharmagistics has developed training program templates and will work closely with Client personnel
to customize them to specifically meet your training needs and are included as part of the start up
costs. These templates include:

	 	•	 	Power point presentations for classroom training

	 	•	 	PDMA policy and instruction manual for field use

	 	•	 	PDMA required testing & certification documentation

Pharmagistics can do the on-site training, train the trainer, or act as facilitators during the
training sessions. These services are available to meet your ongoing training needs and are
available at additional costs.

Help Desk 

Pharmagistics provides a dedicated “Help Desk” with a toll free number to all Client field
personnel. PDMA trained staff members are available to handle direct calls from the field between
8:30 AM — 5:00 PM EST. These staff members are dedicated to Client and acts as the
day-to-day primary contact with the field and Client compliance personnel to ensure timely receipt
of call cards, follow up on rejected forms and are responsible for follow up and escalation
procedures as detailed in agreed upon SOPs. In addition, help desk personnel are responsible for
reconciliation services.

 

	 	 	 
	***	 	Certain information on this page has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions.

 

15

 

Reconciliation

Pharmagistics will provide prescription drug sample variance and reconciliation services for
Client. Pharmagistics will be responsible for the calculation of drug sample inventory variances
on a quarterly basis or as otherwise reasonably required by Client SOPs.

Pharmagistics will make our best effort to reconcile inventory discrepancies by utilizing Client
sales representative drug sample inventory and sample transaction data. Priority will be given for
those discrepancies that exceed Client significant loss threshold. Pharmagistics will make its
best efforts to reconcile them below the significant loss threshold utilizing sample distribution
data and direct communications with the Client sales representatives.

Pharmagistics will provide a summary and detailed reconciliation report to each Client sales
representative who demonstrates a variance in excess of Client significant loss threshold at the
product level by mail, along with an instructional memo detailing the Client sales representative’s
responsibility to reconcile the report. Pharmagistics help desk personnel will work directly with
Client sales representatives for reconciliation support. Pharmagistics shall complete the
reconciliation process for a given reconciliation period within ninety (90) days of the end of each
reconciliation period unless an extension is provided by Client.

Document Storage and Retrieval

All sample tracking and related documents are stored on-site at Pharmagistics. Once scanned and
verified the actual call documents are batched, boxed and stored in our warehouse and are available
for recall within 48 hours (the digital image is available to Client, on demand, via Pharmagistics’
client specific web site). All other sample tracking or related documents are stored in our Sample
Accountability department for each of your field force personnel. In both cases, documents are
stored on-site for a period of 3 years from date of termination or expiration of the Agreement.

Quality Assurance Program and Process

Pharmagistics’ utilizes a three layer approach to ensuring the integrity of call card information.

	 	•	 	The first layer occurs within the Data Entry department with our propriety software. As
the forms are received they are sent thru a scan process to be automatically OCR’d and then
passed to a data verification process where a Data Entry Operator verifies the data on the
form. If what the operator keys matches what was OCR’d then the data is accepted for entry
into the SA Database. If the data does not match, then the operator must re-key the data,
the system will only accept data with a double verification. Once the scan and
verification process is completed the form is processed into the system and is available
for viewing and reporting by the customer via their exclusive and secured website. Any
information that can not be OCR’d is sent to our Data Entry Department for manual entry.
There are error checks within the system to verify all data and any errors found are
flagged for verification and correction either internally within Pharmagistics or by the
Client sales representatives.

	 	•	 	The second layer is that the Data Entry Supervisor conducts periodic audits of all call
cards processed through the OCR/Sample Accountability systems. Audits are conducted in
the following manner.

	 	•	 	Daily review of any forms that are placed in work queues to ensure that
they were not created due to data entry errors. All data entry errors are
corrected by the supervisor. A statistical log is kept of all errors and those
that constitute a pattern with either an individual or group of individuals are
addressed through training.

	 	•	 	Each week the department supervisor pulls random batches and checks
each form within the batch to ensure that the information captured is an exact
representation of the original form. Any deviations are recorded, the supervisor
corrects the file and the employee is addressed through training. If problems are
programmatic in nature, the IT group is notified and immediate action is taken.

	 	•	 	The third layer is independent audits from Pharmagistics’ Quality Assurance department.
This department reports directly to the Managing Director of Pharmagistics and conducts
internal audits of all departments to ensure adherence to SOPs (both corporate and client
specific). The QA departments when auditing Data Entry reviews the supervisor’s logs and
will randomly select card batches for review.

 

16

 

Program Cost Summary

***

 

	 	 	 
	***	 	Certain information on this page has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions.

 

17exv10w1

Exhibit 10.1

OXiGENE, Inc.

of Common Stock

(par value $0.01 per share)

At Market Issuance Sales Agreement

July 21, 2010

MCNICOLL, LEWIS & VLAK LLC

420 Lexington Ave., Suite 628

New York, NY 10170

Ladies and Gentlemen:

     OXiGENE, Inc., a Delaware corporation (the “Company”), confirms its agreement (this
“Agreement”) with McNicoll, Lewis & Vlak LLC, a Delaware limited liability company
(“MLV”), as follows:

     1. Issuance and Sale of Shares. The Company agrees that, from time to time during the
term of this Agreement, on the terms and subject to the conditions set forth herein, it may issue
and sell through MLV, acting as agent, shares (the “Shares”) of the Company’s common stock,
par value $0.01 per share (the “Common Stock”) provided however, that in no event shall the
Company issue or sell through MLV such number of Shares that (a) would cause the Company to not
satisfy the eligibility requirements for use of Form S-3 (including Instruction I.B.6. thereof),
(b) exceeds the number of shares of Common Stock registered on the effective Registration Statement
(as defined below) pursuant to which the offering is being made, or (c) exceeds the number of
authorized but unissued shares of the Company’s Common Stock (the lesser of (a), (b), and (c), the
“Maximum Amount”). Notwithstanding anything to the contrary contained herein, the parties
hereto agree that compliance with the limitations set forth in this Section 1 on the number
of Shares issued and sold under this Agreement shall be the sole responsibility of the Company and
that MLV shall have no obligation in connection with such compliance. The issuance and sale of
Shares through MLV will be effected pursuant to the Registration Statement filed by the Company and
declared effective by the Securities and Exchange Commission (the “Commission”), although
nothing in this Agreement shall be construed as requiring the Company to use the Registration
Statement to issue Common Stock or Preferred Stock.

     The Company has filed, in accordance with the provisions of the Securities Act of 1933, as
amended (the “Securities Act”) and the rules and regulations thereunder (the
“Securities Act Regulations”), with the Commission a registration statement on Form S-3
(File No. 333-155371), including a base prospectus, relating to certain securities including the
Shares, and which incorporates by reference documents that the Company has filed or will file in
accordance with the provisions of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), and the rules and regulations thereunder (the “Exchange Act
Regulations”). The Company will prepare a prospectus supplement specifically relating to the
Shares (the “Prospectus

 

 

Supplement”) to the base prospectus included as part of such registration statement.
The Company will furnish to MLV, for use by MLV, copies of the base prospectus included as part of
such registration statement, as supplemented by the Prospectus Supplement relating to the Shares.
Except where the context otherwise requires, such registration statement, as amended when it became
effective, including all documents filed as part thereof or incorporated by reference therein, and
including any information contained in a Prospectus (as defined below) subsequently filed with the
Commission pursuant to Rule 424(b) under the Securities Act Regulations or deemed to be a part of
such registration statement pursuant to Rule 430B of the Securities Act Regulations, and also
including any other registration statement related to the Shares filed pursuant to Rule 462(b), is
herein called the “Registration Statement.” The base prospectus, including all documents
incorporated therein by reference, included in the Registration Statement, as it may be
supplemented by the Prospectus Supplement, in the form in which such base prospectus and/or
Prospectus Supplement have most recently been filed by the Company with the Commission pursuant to
Rule 424(b) under the Securities Act Regulations, together with the Issuer Free Writing
Prospectus(es) listed on Schedule 4 hereto, if any, as of the date of the sale of the
applicable Shares as such schedule may be modified and supplemented from time to time by the
express written consent of the Company and MLV, is herein called the “Prospectus.”

     Any reference herein to the Registration Statement, any Prospectus Supplement, Prospectus or
any Free Writing Prospectus shall be deemed to refer to and include the documents, if any,
incorporated by reference therein (the “Incorporated Documents”), including, unless the
context otherwise requires, the documents, if any, filed as exhibits to such Incorporated
Documents. Any reference herein to the terms “amend,” “amendment” or “supplement” with respect to
the Registration Statement, any Prospectus Supplement, the Prospectus or any Free Writing
Prospectus shall be deemed to refer to and include the filing of any document under the Exchange
Act on or after the most-recent effective date of the Registration Statement, or the date of
Prospectus Supplement, Prospectus or such Free Writing Prospectus, as the case may be, deemed to be
incorporated therein by reference. For purposes of this Agreement, all references to the
Registration Statement, the Prospectus or to any amendment or supplement thereto shall be deemed to
include any copy filed with the Commission pursuant to its Electronic Data Gathering Analysis and
Retrieval System, or if applicable, the Interactive Data Electronic Application system when used by
the Commission (collectively, “EDGAR”).

     2. Placements. Each time that the Company wishes to issue and sell Shares hereunder
(each, a “Placement”), it will notify MLV by email notice (or other method mutually agreed
to in writing by the Parties) of the number of Shares (the “Placement Shares”) to be
issued, the type of Shares, the time period during which sales are requested to be made, any
limitation on the number of Shares that may be sold in any one day and any minimum price below
which sales may not be made (a “Placement Notice”), the form of which is attached hereto as
Schedule 1. The Placement Notice shall originate from any of the individuals from the Company set
forth on Schedule 3 (with a copy to each of the other individuals from the Company listed
on such schedule), and shall be addressed to each of the individuals from MLV set forth on
Schedule 3, as such Schedule 3 may be amended from time to time. The Placement
Notice shall be effective unless and until (i) MLV declines to accept the terms contained therein
as a result of (A) any suspension or limitation of trading in the Placement Shares or in securities
generally on The NASDAQ Global Market (the “Exchange”), (B) any occurrence or event that

2

 

causes a Material Adverse Effect (as defined below), or (C) MLV is then prohibited by FINRA or
the Commission from performing its obligations under this Agreement, (ii) the entire amount of the
Placement Shares have been sold, (iii) the Company suspends or terminates the Placement Notice or
(iv) the Agreement has been terminated under the provisions of Section 12. The amount of
any discount, commission or other compensation to be paid by the Company to MLV in connection with
the sale of the Placement Shares shall be calculated in accordance with the terms set forth in
Schedule 2. It is expressly acknowledged and agreed that neither the Company nor MLV will have any
obligation whatsoever with respect to a Placement or any Placement Shares unless and until the
Company delivers a Placement Notice to MLV and MLV does not decline such Placement Notice pursuant
to the terms set forth above, and then only upon the terms specified therein and herein. In the
event of a conflict between the terms of this Agreement and the terms of a Placement Notice, the
terms of the Placement Notice will control.

     3. Sale of Placement Shares by MLV. On the basis of the representations and
warranties herein contained and subject to the terms and conditions herein set forth, upon the
Company’s issuance of a Placement Notice, and unless the sale of the Placement Shares described
therein has been declined, suspended, or otherwise terminated in accordance with the terms of this
Agreement, MLV, for the period specified in the Placement Notice, will use its commercially
reasonable efforts consistent with its normal trading and sales practices and applicable state and
federal laws, rules and regulations and the rules of the Exchange, to sell the Placement Shares up
to the amount specified, and otherwise in accordance with the terms of such Placement Notice. MLV
will provide written confirmation to the Company no later than the opening of the trading day (as
defined below) immediately following the trading day on which it has made sales of Placement Shares
hereunder setting forth the number of Placement Shares sold on such day, the compensation payable
by the Company to MLV pursuant to Section 2 with respect to such sales, and the Net
Proceeds (as defined below) payable to the Company, with an itemization of the deductions made by
MLV (as set forth in Section 5(a)) from the gross proceeds that it receives from such
sales. Subject to the terms of the Placement Notice, MLV may sell Placement Shares by any method
permitted by law deemed to be an “at the market” offering as defined in Rule 415 of the Securities
Act Regulations, including without limitation sales made directly on the Exchange, on any other
existing trading market for the Common Stock or to or through a market maker. Subject to the terms
of a Placement Notice, MLV may also sell Placement Shares in privately negotiated transactions.
The Company acknowledges and agrees that (i) there can be no assurance that MLV will be successful
in selling Placement Shares, (ii) MLV will incur no liability or obligation to the Company or any
other person or entity if it does not sell Placement Shares for any reason other than a failure by
MLV to use its commercially reasonable efforts consistent with its normal trading and sales
practices and applicable law and regulations to sell such Placement Shares as required under this
Agreement and (iii) MLV shall be under no obligation to purchase Securities on a principal basis
pursuant to this Agreement, except as otherwise agreed by MLV and the Company.

     4. Suspension of Sales. The Company or MLV may, upon notice (a “Suspension
Notice”) to the other party in writing (including by email correspondence to each of the
representatives of the other party set forth on Schedule 3, if receipt of such
correspondence is actually acknowledged by any of the individuals to whom the notice is sent, other
than via auto-reply) or by telephone (confirmed immediately by verifiable facsimile transmission or
email correspondence to each of the individuals of the other party set forth on Schedule
3), suspend

3

 

any sale of Placement Shares for a period of time (a “Suspension Period”); provided,
however, that such suspension shall not affect or impair either party’s obligations with respect to
any Placement Shares sold hereunder prior to the receipt of such notice. Each of the parties
agrees that no such notice under this Section 4 shall be effective against the other party
unless it is made to one of the individuals named on Schedule 3 hereto, as such Schedule
may be amended from time to time. During a Suspension Period, the Company shall not issue any
Placement Notices and MLV shall not sell any Placement Shares hereunder. A Suspension Period shall
end five trading days after the date on which the party which issued the Suspension Notice notifies
the other party in writing that it wishes to end the Suspension Period.

     5. Settlement and Delivery.

          (a) Settlement of Placement Shares. Unless otherwise specified in the applicable Placement
Notice, settlement for sales of Placement Shares will occur on the third (3rd) trading
day (or such earlier day as is industry practice for regular-way trading) following the date on
which such sales are made (each, a “Settlement Date”). The amount of proceeds to be
delivered to the Company on a Settlement Date against receipt of the Placement Shares sold (the
“Net Proceeds”) will be equal to the aggregate sales price received by MLV at which such
Placement Shares were sold, after deduction for (i) MLV’s commission, discount or other
compensation for such sales payable by the Company pursuant to Section 2 hereof, and (ii)
any transaction fees imposed by any governmental or self-regulatory organization in respect of such
sales.

          (b) Delivery of Placement Shares. On or before each Settlement Date, the Company will, or
will cause its transfer agent to, electronically transfer the Placement Shares being sold by
crediting MLV’s or its designee’s account (provided MLV shall have given the Company written notice
of such designee prior to the Settlement Date) at The Depository Trust Company through its Deposit
and Withdrawal at Custodian System (“DWAC”) or by such other means of delivery as may be mutually
agreed upon by the parties hereto which in all cases shall be freely tradable, transferable,
registered shares in good deliverable form. On each Settlement Date, MLV will deliver the related
Net Proceeds in same day funds to an account designated by the Company on, or prior to, the
Settlement Date. The Company agrees that if the Company, or its transfer agent (if applicable),
defaults in its obligation to deliver Placement Shares on a Settlement Date, the Company agrees
that in addition to and in no way limiting the rights and obligations set forth in Section
10(a) hereto, it will (i) hold MLV harmless against any loss, claim, damage, or expense
(including reasonable legal fees and expenses), as incurred, arising out of or in connection with
such default by the Company or its transfer agent (if applicable) and (ii) pay to MLV any
commission, discount, or other compensation to which it would otherwise have been entitled absent
such default.

          (c) Denominations; Registration. Certificates for the Shares, if any, shall be in such
denominations and registered in such names as MLV may request in writing at least one full business
day before the Settlement Date. The certificates for the Shares, if any, will be made available
for examination and packaging by MLV in The City of New York not later than noon (New York time) on
the business day prior to the Settlement Date.

4

 

          (d) Limitations on Offering Size. Under no circumstances shall the Company cause or request
the offer or sale of any Shares if, after giving effect to the sale of such Shares, the aggregate
gross sales proceeds sold pursuant to this Agreement would exceed the lesser of (A) together with
all sales of Shares under this Agreement, the Maximum Amount, (B) the amount available for offer
and sale under the currently effective Registration Statement and (C) the amount authorized from
time to time to be issued and sold under this Agreement by the Company’s board of directors, a duly
authorized committee thereof or a duly authorized executive committee, and notified to MLV in
writing. Under no circumstances shall the Company cause or request the offer or sale of any Shares
pursuant to this Agreement at a price lower than the minimum price authorized from time to time by
the Company’s board of directors, duly authorized committee thereof or a duly authorized executive
committee, and notified to MLV in writing. Further, under no circumstances shall the aggregate
offering amount of Shares sold pursuant to this Agreement, including any separate underwriting or
similar agreement covering principal transactions described in Section 1 of this Agreement,
exceed the Maximum Amount.

          (e) The Company agrees that any offer to sell, any solicitation of an offer to buy, or any
sales of Shares shall only be effected by or through MLV on any single given day; provided,
however, that (1) the foregoing limitation shall not apply to (i) the exercise of any option,
warrant, right or any conversion privilege set forth in the instrument governing such security or
(ii) sales solely to employees or security holders of the Company or the Subsidiary, or to a
trustee or other person acquiring such securities for the accounts of such persons, and (2) such
limitation shall not apply on any day during which no sales are made pursuant to this Agreement.

     6. Representations and Warranties of the Company. The Company represents and warrants
to, and agrees with, MLV that as of the date of this Agreement, as of each of the Representation
Dates and as of each Applicable Time (as defined below):

          (a) Registration Statement and Prospectus. The Company and, assuming no act or omission on
the part of MLV that would make such statement untrue, the transactions contemplated by this
Agreement meet the requirements for and comply with the conditions for the use of Form S-3 under
the Securities Act. The Registration Statement has been filed with the Commission and has been
declared effective under the Securities Act. The Prospectus Supplement will name MLV as
underwriter, acting as agent, that the Company might engage in the section entitled “Plan of
Distribution.” The Company has not received, and has no notice of, any order of the Commission
preventing or suspending the use of the Registration Statement, or threatening or instituting
proceedings for that purpose. The Registration Statement and the offer and sale of Shares as
contemplated hereby meet the requirements of Rule 415 under the Act and comply in all material
respects with said Rule. Any statutes, regulations, contracts or other documents that are required
to be described in the Registration Statement or the Prospectus or to be filed as exhibits to the
Registration Statement have been so described or filed. Copies of the Registration Statement, the
Prospectus, and any such amendments or supplements and all documents incorporated by reference
therein that were filed with the Commission on or prior to the date of this Agreement have been
delivered, or are available through EDGAR, to MLV and its counsel. The Company has not distributed
and, prior to the later to occur of each Settlement Date and completion of the distribution of the
Placement Shares, will not distribute any offering

5

 

material in connection with the offering or sale of the Placement Shares other than the
Registration Statement and the Prospectus and any Issuer Free Writing Prospectus (as defined below)
to which MLV has consented. The Common Stock is currently listed on The NASDAQ Global Market under
the trading symbol “OXGN”. Except as disclosed in the Registration Statement, the Company has not,
in the 12 months preceding the date hereof, received notice from the Exchange to the effect that
the Company is not in compliance with the listing or maintenance requirements of the Exchange. The
Company has no reason to believe that it will not in the foreseeable future continue to be in
compliance with all such listing and maintenance requirements, except with regard to the continued
listing requirements of the Exchange relating to the minimum bid price of listed securities,
pursuant to NASDAQ Marketplace Rule 5450(b)(1), and the minimum market value of listed securities,
pursuant to NASDAQ Marketplace Rule 5450(b)(2)(A).

          (b) No Misstatement or Omission. The Registration Statement, when it became or becomes
effective, and the Prospectus, and any amendment or supplement thereto, on the date of such
Prospectus or amendment or supplement, conformed or will conform in all material respects with the
requirements of the Securities Act. At each Settlement Date, the Registration Statement and the
Prospectus, as of such date, will conform in all material respects with the requirements of the
Securities Act. The Registration Statement, when it became or becomes effective, did not, or will
not, contain an untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading. The Prospectus and any
amendment or supplement thereto, on the date thereof and at each Applicable Time, did not or will
not include an untrue statement of a material fact or omit to state a material fact necessary to
make the statements therein, in light of the circumstances under which they were made, not
misleading. The documents incorporated by reference in the Prospectus or any Prospectus Supplement
did not, and any further documents filed and incorporated by reference therein will not, when filed
with the Commission, contain an untrue statement of a material fact or omit to state a material
fact required to be stated in such document or necessary to make the statements in such document,
in light of the circumstances under which they were made, not misleading. The foregoing shall not
apply to statements in, or omissions from, any such document made in reliance upon, and in
conformity with, information furnished to the Company by MLV specifically for use in the
preparation thereof.

          (c) Conformity with Securities Act and Exchange Act. The documents incorporated by reference
in the Registration Statement, the Prospectus or any amendment or supplement thereto, when such
documents were or are filed with the Commission under the Securities Act or the Exchange Act or
became or become effective under the Securities Act, as the case may be, conformed or will conform
in all material respects with the requirements of the Securities Act and the Exchange Act, as
applicable.

          (d) Financial Information. As of their respective dates, the financial statements of the
Company included or incorporated by reference in the Registration Statement, the Prospectus and the
Free Writing Prospectus, if any, together with the related notes and schedules complied as to form
in all material respects with applicable accounting requirements and the published rules and
regulations of the Commission with respect thereto as in effect as of the time of filing. Such
financial statements have been prepared in accordance with generally accepted accounting
principles, consistently applied, during the periods involved (except (i) as

6

 

may be otherwise indicated in such financial statements or the notes thereto, or (ii) in the
case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed
or summary statements) and fairly present in all material respects the financial position of the
Company as of the dates thereof and the results of its operations and cash flows for the periods
then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments
which will not be material, either individually or in the aggregate); the other financial and
statistical data with respect to the Company contained or incorporated by reference in the
Registration Statement, the Prospectus and the Free Writing Prospectuses, if any, are accurately
and fairly presented and prepared on a basis consistent with the financial statements and books and
records of the Company; there are no financial statements (historical or pro forma) that are
required to be included or incorporated by reference in the Registration Statement, or the
Prospectus that are not included or incorporated by reference as required; the Company does not
have any material liabilities or obligations, direct or contingent (including any off-balance sheet
obligations), not described in the Registration Statement (excluding the exhibits thereto), and the
Prospectus; and all disclosures contained or incorporated by reference in the Registration
Statement, the Prospectus and the Free Writing Prospectuses, if any, regarding “non-GAAP financial
measures” (as such term is defined by the rules and regulations of the Commission) comply in all
material respects with Regulation G of the Exchange Act and Item 10 of Regulation S-K under the
Securities Act, to the extent applicable;

          (e) Conformity with EDGAR Filing. The Prospectus delivered to MLV for use in connection with
the sale of the Placement Shares pursuant to this Agreement will be identical to the versions of
the Prospectus created to be transmitted to the Commission for filing via EDGAR, except to the
extent permitted by Regulation S-T.

          (f) Organization. The Company is duly organized, validly existing as a corporation and in
good standing under the laws of its jurisdiction of organization. The Company is duly licensed or
qualified as a foreign corporation for transaction of business and in good standing under the laws
of each other jurisdiction in which its ownership or lease of property or the conduct of its
business requires such license or qualification, and has all corporate power and authority
necessary to own or hold its properties and to conduct its business as described in the
Registration Statement and the Prospectus, except where the failure to be so qualified or in good
standing or have such power or authority would not, individually or in the aggregate, have a
material adverse effect or would reasonably be expected to have a material adverse effect on or
affecting the assets, business, operations, earnings, properties, condition (financial or
otherwise), or prospects of the Company taken as a whole, or prevent or materially interfere with
consummation of the transactions contemplated hereby (a “Material Adverse Effect”).

          (g) Subsidiaries. The Company has no subsidiaries.

          (h) No Violation or Default. The Company is not (i) in violation of its charter or bylaws or
similar organizational documents; (ii) in default, and no event has occurred that, with notice or
lapse of time or both, would constitute such a default, in the due performance or observance of any
term, covenant or condition contained in any indenture, mortgage, deed of trust, loan agreement or
other agreement or instrument to which the Company is a party or by which the Company is bound or
to which any of the property or assets of the Company is

7

 

subject; or (iii) in violation of any law or statute or any judgment, order, rule or
regulation of any court or arbitrator or governmental or regulatory authority, except, in the case
of each of clauses (ii) and (iii) above, for any such violation or default that would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. To the
Company’s knowledge, no other party under any material contract or other agreement to which it is a
party is in default in any respect thereunder where such default would have a Material Adverse
Effect.

          (i) No Material Adverse Change. Subsequent to the respective dates as of which information is
given in the Registration Statement, the Prospectus and the Free Writing Prospectuses, if any
(including any document deemed incorporated by reference therein), there has not been (i) any
Material Adverse Effect, or any development involving a prospective Material Adverse Effect, in the
business, properties, management, financial, condition, results of operations, or prospects of the
Company and the Subsidiary taken as a whole, (ii) any transaction which is material to the Company
and the Subsidiary taken as a whole, (iii) any obligation or liability, direct or contingent
(including any off-balance sheet obligations), incurred by the Company or the Subsidiary, which is
material to the Company and the Subsidiary taken as a whole, (iv) any material change in the
capital stock or outstanding indebtedness of the Company or the Subsidiary or (v) any dividend or
distribution of any kind declared, paid or made on the capital stock of the Company or the
Subsidiary, other than in each case above in the ordinary course of business or as otherwise
disclosed in the Registration Statement or Prospectus (including any document deemed incorporated
by reference therein);

          (j) Capitalization. The issued and outstanding shares of capital stock of the Company have
been validly issued, are fully paid and nonassessable and, other than as disclosed in or
contemplated by the Registration Statement or the Prospectus, are not subject to any preemptive
rights, rights of first refusal or similar rights. The Company has an authorized, issued and
outstanding capitalization as set forth in the Registration Statement and the Prospectus as of the
dates referred to therein (other than the grant of additional options under the Company’s existing
stock option plans, or changes in the number of outstanding shares of Common Stock of the Company
due to the issuance of shares upon the exercise or conversion of securities exercisable for, or
convertible into, shares of Common Stock outstanding on the date hereof) and such authorized
capital stock conforms in all material respects to the description thereof set forth in the
Registration Statement and the Prospectus. The description of the securities of the Company in the
Registration Statement and the Prospectus is complete and accurate in all material respects.
Except as disclosed in or contemplated by the Registration Statement or the Prospectus, as of the
date referred to therein, the Company does not have outstanding any options to purchase, or any
rights or warrants to subscribe for, or any securities or obligations convertible into, or
exchangeable for, or any contracts or commitments to issue or sell, any shares of capital stock or
other securities.

          (k) Authorization; Enforceability. The Company has full legal right, power and authority to
enter into this Agreement and perform the transactions contemplated hereby. This Agreement has
been duly authorized, executed and delivered by the Company and is a valid and binding agreement of
the Company enforceable in accordance with its terms, except to the extent that (i) enforceability
may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors’ rights generally and by general equitable

8

 

principles and (ii) the indemnification and contribution provisions of Section 10
hereof may be limited by federal or state securities laws and public policy considerations in
respect thereof.

          (l) Authorization of Placement Shares. The Placement Shares, when issued and delivered
pursuant to the terms approved by the Board of Directors or a duly designated committee thereof,
against payment therefor as provided herein, will be duly and validly authorized and issued and
fully paid and nonassessable, free and clear of any pledge, lien, encumbrance, security interest or
other claim, including any statutory or contractual preemptive rights, resale rights, rights of
first refusal or other similar rights, and will be registered pursuant to Section 12 of the
Exchange Act. The Placement Shares, when issued, will conform in all material respects to the
description thereof set forth in or incorporated into the Prospectus.

          (m) No Consents Required. No consent, approval, authorization, order, registration or
qualification of or with any court or arbitrator or governmental or regulatory authority is
required for the execution, delivery and performance by the Company of this Agreement, the issuance
and sale by the Company of the Placement Shares, except for the registration of the Placement
Shares under the Act and such consents, approvals, authorizations, orders and registrations or
qualifications as may be required under applicable state securities laws or by the bylaws and rules
of the Financial Industry Regulatory Authority (“FINRA”) or the Exchange in connection with
the sale of the Placement Shares by MLV.

          (n) No Preferential Rights. Except as set forth in the Registration Statement and the
Prospectus, (i) no person, as such term is defined in Rule 1-02 of Regulation S-X promulgated under
the Securities Act (each, a “Person”), has the right, contractual or otherwise, to cause
the Company to issue or sell to such Person any shares of Common Stock or shares of any other
capital stock or other securities of the Company, (ii) no Person has any preemptive rights, resale
rights, rights of first refusal, or any other rights (whether pursuant to a “poison pill” provision
or otherwise) to purchase any shares of Common Stock or shares of any other capital stock or other
securities of the Company, (iii) no Person has the right to act as an underwriter or as a
financial advisor to the Company in connection with the offer and sale of the Shares, and (iv) no
Person has the right, contractual or otherwise, to require the Company to register under the
Securities Act any shares of Common Stock or shares of any other capital stock or other securities
of the Company, or to include any such shares or other securities in the Registration Statement or
the offering contemplated thereby, whether as a result of the filing or effectiveness of the
Registration Statement or the sale of the Placement Shares as contemplated thereby or otherwise.

          (o) Independent Public Accountant. Ernst & Young LLP (the “Accountant”), whose report
on the consolidated financial statements of the Company for the fiscal year ended December 31, 2009
is filed with the Commission as part of the Registration Statement and the Prospectus, is and,
during the periods covered by its report, was an independent registered public accounting firm
within the meaning of the Securities Act and the Public Company Accounting Oversight Board (United
States). To the Company’s knowledge, after due and careful inquiry, the Accountant is not in
violation of the auditor independence requirements of the Sarbanes-Oxley Act of 2002 (the
“Sarbanes-Oxley Act”) with respect to the Company.

9

 

          (p) Enforceability of Agreements. To the knowledge of the Company, all agreements between the
Company and third parties expressly referenced in the Prospectus are legal, valid and binding
obligations of the Company enforceable in accordance with their respective terms, except to the
extent that (i) enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium
or similar laws affecting creditors’ rights generally and by general equitable principles, (ii) the
indemnification provisions of certain agreements may be limited be federal or state securities laws
or public policy considerations in respect thereof, and (iii) the voting provisions set forth in
that certain Voting Agreement dated as of March 10, 2010 by and between the Company and Symphony
ViDA Holdings LLC may be limited by state laws or public policy considerations in respect thereof
and except for any unenforceability that, individually or in the aggregate, would not reasonably be
expected to have a Material Adverse Effect.

          (q) No Litigation. Except as set forth in the Registration Statement or the Prospectus, there
are no legal, governmental or regulatory actions, suits or proceedings pending, nor, to the
Company’s knowledge, any legal, governmental or regulatory investigations, to which the Company is
a party or to which any property of the Company is the subject that, individually or in the
aggregate, if determined adversely to the Company, would reasonably be expected to have a Material
Adverse Effect or materially and adversely affect the ability of the Company to perform its
obligations under this Agreement; to the Company’s knowledge, no such actions, suits or proceedings
are threatened or contemplated by any governmental or regulatory authority or threatened by others;
and (i) there are no current or pending legal, governmental or regulatory investigations, actions,
suits or proceedings that are required under the Act to be described in the Prospectus that are not
so described; and (ii) there are no contracts or other documents that are required under the Act to
be filed as exhibits to the Registration Statement that are not so filed.

          (r) Licenses and Permits. Except as set forth in the Registration Statement or the
Prospectus, the Company possesses or has obtained, and at each Settlement Date will possess and
will have obtained, all licenses, certificates, consents, orders, approvals, permits and other
authorizations issued by, and have made all declarations and filings with, the appropriate federal,
state, local or foreign governmental or regulatory authorities that are necessary for the ownership
or lease of its properties or the conduct of its business as described in the Registration
Statement and the Prospectus (the “Permits”), except where the failure to possess, obtain
or make the same would not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect. Except as disclosed in the Registration Statement or the Prospectus, the
Company has not received written notice of any proceeding relating to revocation or modification of
any such Permit or has any reason to believe that such Permit will not be renewed in the ordinary
course, except where the failure to obtain any such renewal would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

          (s) Not a Shell Company. The Company is not a shell company (as defined in Rule 405 under the
Securities Act) and has not been a shell company for at least 12 calendar months previously and if
it has been a shell company at any time previously, has filed current Form 10 information (as
defined in Instruction I.B.6 of Form S-3) with the Commission at least 12 calendar months
previously reflecting its status as an entity that is not a shell company.

10

 

          (t) No Material Defaults. The Company has not defaulted on any installment on indebtedness
for borrowed money or on any rental on one or more long-term leases, which defaults, individually
or in the aggregate, could reasonably be expected to have a Material Adverse Effect. The Company
has not filed a report pursuant to Section 13(a) or 15(d) of the Exchange Act since the filing of
its last Annual Report on Form 10-K, indicating that it (i) has failed to pay any dividend or
sinking fund installment on preferred stock or (ii) has defaulted on any installment on
indebtedness for borrowed money or on any rental on one or more long-term leases, which defaults,
individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

          (u) Certain Market Activities. Neither the Company, nor, to the Company’s knowledge, any of
its directors, officers or controlling persons has taken, directly or indirectly, any action
designed, or that has constituted or might reasonably be expected to cause or result in, under the
Exchange Act or otherwise, the stabilization or manipulation of the price of any security of the
Company to facilitate the sale or resale of the Placement Shares.

          (v) Broker/Dealer Relationships. Neither the Company, nor any related entities (i) is
required to register as a “broker” or “dealer” in accordance with the provisions of the Exchange
Act or (ii) directly or indirectly through one or more intermediaries, controls or is a “person
associated with a member” or “associated person of a member” (within the meaning of Article I of
the NASD Manual administered by FINRA).

          (w) No Reliance. The Company has not relied upon MLV or legal counsel for MLV for any legal,
tax or accounting advice in connection with the offering and sale of the Placement Shares.

          (x) Taxes. The Company has filed all federal, state, local and foreign tax returns which have
been required to be filed and paid all taxes shown thereon through the date hereof, to the extent
that such taxes have become due and are not being contested in good faith. Except as otherwise
disclosed in or contemplated by the Registration Statement or the Prospectus, no tax deficiency has
been determined adversely to the Company which has had, or would reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect. The Company has no knowledge of any
federal, state or other governmental tax deficiency, penalty or assessment which has been or might
be asserted or threatened against it which could have a Material Adverse Effect.

          (y) Title to Real and Personal Property. Except as set forth in the Registration Statement or
the Prospectus, the Company has good and marketable title in fee simple to all items of personal
property (exclusive of intellectual property, which is addressed below) described in the
Registration Statement or Prospectus as being owned by them that are material to the businesses of
the Company free and clear of all liens, encumbrances and claims, except those that (i) do not
materially interfere with the use made and proposed to be made of such property by the Company or
(ii) would not reasonably be expected, individually or in the aggregate, to have a Material Adverse
Effect. Any real property described in the Registration Statement or Prospectus as being leased by
the Company is held by them under valid, existing and enforceable leases, except those that (A) do
not materially interfere with the use made or

11

 

proposed to be made of such property by the Company or (B) would not be reasonably expected,
individually or in the aggregate, to have a Material Adverse Effect.

          (z) Intellectual Property. Except as set forth in the Registration Statement or the
Prospectus and to its knowledge: the Company owns or possesses adequate enforceable rights to use
all patents, patent applications, trademarks (both registered and unregistered), service marks,
trade names, trademark registrations, service mark registrations, copyrights, licenses and know-how
(including trade secrets and other unpatented and/or unpatentable proprietary or confidential
information, systems or procedures) (collectively, the “Intellectual Property”), necessary
for the conduct of its business as conducted as of the date hereof, except to the extent that the
failure to own or possess adequate rights to use such Intellectual Property would not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect; the Company has not
received any written notice of any claim of infringement or conflict which asserted Intellectual
Property rights of others, which infringement or conflict, if the subject of an unfavorable
decision, would result in a Material Adverse Effect; the Company has not received any written
notice of any opposition of pending rights with respect to its foreign counterpart patents or
applications, which opposition, if successful, would result in a Material Adverse Effect; the
Company has conducted searches of the United States patents of record issued to third parties that
may interfere with any of the Company’s United States patents or patent applications and it has
determined that none of the Company’s patents or patent applications interfere with any other
United States patents or patent applications; the Company has conducted an infringement search and
determined that no patent held by any third party is infringed by the activities of the Company;
there are no pending, or to the Company’s knowledge, threatened judicial proceedings or
interference proceedings challenging the Company’s rights in or to or the validity of the scope of
any of the Company’s patents, patent applications or proprietary information; no other entity or
individual has any right or claim in any of the Company’s patents, patent applications or any
patent to be issued therefrom by virtue of any contract, license or other agreement entered into
between such entity or individual and the Company or by any non-contractual obligation, other than
by written licenses granted by the Company; the Company has not received any written notice of any
claim challenging the rights of the Company in or to any Intellectual Property owned, licensed or
optioned by the Company which claim, if the subject of an unfavorable decision would result in a
Material Adverse Effect.

          (aa) Compliance Program. Except as disclosed in the Registration Statement and the
Prospectus, the Company has established and administers a compliance program applicable to the
Company, to assist the Company and the directors, officers and employees of the Company in
complying with applicable regulatory guidelines (including, without limitation, those administered
by the FDA and any other foreign, federal, state or local governmental or regulatory authority
performing functions similar to those performed by the FDA); except where such noncompliance would
not reasonably be expected to have a Material Adverse Effect.

          (bb) Clinical Studies. The clinical, pre-clinical and other studies and tests conducted by
or, to the knowledge of the Company, on behalf of the Company were, and, if still pending, are
being, conducted in accordance in all material respects with all statutes, laws, rules and
regulations, as applicable (including, without limitation, those administered by the FDA or by any
foreign, federal, state or local governmental or regulatory authority performing functions similar
to those performed by the FDA). Except as set forth in the Registration Statement and

12

 

Prospectus, the Company has not received any written notices or other written correspondence
from the FDA or any other foreign, federal, state or local governmental or regulatory authority
performing functions similar to those performed by the FDA requiring the Company to terminate or
suspend any ongoing clinical or pre-clinical studies or tests.

          (cc) Environmental Laws. Except as set forth in the Registration Statement or the Prospectus,
the Company (i) is in compliance in all material respects with any and all applicable federal,
state, local and foreign laws, rules, regulations, decisions and orders relating to the protection
of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants
or contaminants (collectively, “Environmental Laws”); (ii) has received and is in
compliance with all permits, licenses or other approvals required of it under applicable
Environmental Laws to conduct its business as described in the Registration Statement and the
Prospectus; and (iii) has not received notice of any actual or potential liability for the
investigation or remediation of any disposal or release of hazardous or toxic substances or wastes,
pollutants or contaminants, except, in the case of any of clauses (i), (ii) or (iii) above, for any
such failure to comply or failure to receive required permits, licenses, other approvals or
liability as would not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

          (dd) Disclosure Controls. The Company maintains a system of internal accounting controls that
is effective to provide reasonable assurance that (i) transactions are executed in accordance with
management’s general or specific authorizations; (ii) transactions are recorded as necessary to
permit preparation of financial statements in conformity with generally accepted accounting
principles and to maintain asset accountability; (iii) access to assets is permitted only in
accordance with management’s general or specific authorization; and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable intervals and
appropriate action is taken with respect to any differences. The Company maintains disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15 and 15d-15) for the Company and
designed such disclosure controls and procedures to ensure that material information relating to
the Company is made known to the certifying officers by others within those entities, particularly
during the period in which the Company’s Annual Report on Form 10-K or Quarterly Report on Form
10-Q, as the case may be, is being prepared. The Company’s certifying officers have evaluated the
effectiveness of the Company’s controls and procedures as of a date within 90 days prior to the
filing date of the Form 10-K for the fiscal year ended December 31, 2009 (such date, the
“Evaluation Date”). The Company presented in its Form 10-K for the fiscal year ended
December 31, 2009 the conclusions of the certifying officers about the effectiveness of the
disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the
Evaluation Date, except as set forth in the Registration Statement or the Prospectus, there have
been no significant changes in the Company’s internal controls (as such term is defined in Item
307(b) of Regulation S-K under the Act) or, to the Company’s knowledge, in other factors that could
significantly affect the Company’s internal controls.

          (ee) Sarbanes-Oxley. To the knowledge of the Company, there is and has been no failure on the
part of the Company and any of the Company’s directors or executive officers, in their capacities
as such, to comply with any applicable provisions of the Sarbanes-Oxley Act and the rules and
regulations promulgated thereunder. Each of the principal executive officer and the principal
financial officer of the Company (or each former principal executive officer of

13

 

the Company and each former principal financial officer of the Company as applicable) has made
all certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act with respect to all
reports, schedules, forms, statements and other documents required to be filed by the Company or
furnished by it to the Commission during the past 12 months. For purposes of the preceding
sentence, “principal executive officer” and “principal financial officer” shall have the meanings
given to such terms in the Sarbanes-Oxley Act.

          (ff) Finder’s Fees. The Company has not incurred any liability for any finder’s fees,
brokerage commissions or similar payments in connection with the transactions herein contemplated,
except as may otherwise exist with respect to MLV pursuant to this Agreement.

          (gg) Labor Disputes. No labor disturbance by or dispute with employees of the Company exists
or, to the knowledge of the Company, is threatened which would reasonably be expected to have a
Material Adverse Effect.

          (hh) Investment Company Act. The Company is not and, upon consummation of the sale of the
Placement Shares, will not be an “investment company” or an entity “controlled” by an “investment
company,” as such terms are defined in the Investment Company Act of 1940, as amended (the
“Investment Company Act”).

          (ii) Operations. The operations of the Company are and have been conducted at all times in
compliance with applicable financial record keeping and reporting requirements of the Currency and
Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all
jurisdictions to which the Company is subject, the rules and regulations thereunder and any related
or similar rules, regulations or guidelines, issued, administered or enforced by any governmental
agency having jurisdiction over the Company (collectively, the “Money Laundering Laws”),
except as would not reasonably be expected to have a Material Adverse Effect; and no action, suit
or proceeding by or before any court or governmental agency, authority or body or any arbitrator
involving the Company with respect to the Money Laundering Laws is pending or, to the knowledge of
the Company, threatened.

          (jj) Off-Balance Sheet Arrangements. There are no transactions, arrangements and other
relationships between and/or among the Company, and/or, to the knowledge of the Company, any of its
affiliates and any unconsolidated entity, including, but not limited to, any structural finance,
special purpose or limited purpose entity (each, an “Off Balance Sheet Transaction”) that
could reasonably be expected to affect materially the Company’s liquidity or the availability of or
requirements for its capital resources, including those Off Balance Sheet Transactions described in
the Commission’s Statement about Management’s Discussion and Analysis of Financial Conditions and
Results of Operations (Release Nos. 33-8056; 34-45321; FR-61), required to be described in the
Prospectus which have not been described as required.

          (kk) Underwriter Agreements. The Company is not a party to any agreement with an agent or
underwriter for any other “at-the-market” or continuous equity transaction.

          (ll) ERISA. To the knowledge of the Company, each material employee benefit plan, within the
meaning of Section 3(3) of the Employee Retirement Income Security

14

 

Act of 1974, as amended (“ERISA”), that is maintained, administered or contributed to
by the Company for employees or former employees of the Company has been maintained in material
compliance with its terms and the requirements of any applicable statutes, orders, rules and
regulations, including but not limited to ERISA and the Internal Revenue Code of 1986, as amended
(the “Code”); no prohibited transaction, within the meaning of Section 406 of ERISA or
Section 4975 of the Code, has occurred which would result in a material liability to the Company
with respect to any such plan excluding transactions effected pursuant to a statutory or
administrative exemption; and for each such plan that is subject to the funding rules of Section
412 of the Code or Section 302 of ERISA, no “accumulated funding deficiency” as defined in Section
412 of the Code has been incurred, whether or not waived, and the fair market value of the assets
of each such plan (excluding for these purposes accrued but unpaid contributions) exceeds the
present value of all benefits accrued under such plan determined using reasonable actuarial
assumptions.

          (mm) Forward Looking Statements. No forward-looking statement (within the meaning of Section
27A of the Securities Act and Section 21E of the Exchange Act) (a “Forward Looking
Statement”) contained in the Registration Statement and the Prospectus has been made or
reaffirmed without a reasonable basis or has been disclosed other than in good faith. The Forward
Looking Statements incorporated by reference in the Registration Statement and the Prospectus from
the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009 (i) are, to
the Company’s knowledge, within the coverage of the safe harbor for forward looking statements set
forth in Section 27A of the Securities Act, Rule 175(b) under the Securities Act or Rule 3b-6 under
the Exchange Act, as applicable, (ii) were made by the Company with a reasonable basis and in good
faith and reflect the Company’s good faith commercially reasonable best estimate of the matters
described therein as of the respective dates on which such statements were made, and (iii) have
been prepared in accordance with Item 10 of Regulation S-K under the Securities Act.

          (nn) Margin Rules. Neither the issuance, sale and delivery of the Shares nor the application
of the proceeds thereof by the Company as described in the Registration Statement and the
Prospectus will violate Regulation T, U or X of the Board of Governors of the Federal Reserve
System or any other applicable regulation of such Board of Governors.

          (oo) Insurance. The Company carries, or is covered by, insurance in such amounts and covering
such risks as the management of the Company reasonably believes are adequate for the conduct of its
business and as is customary for companies engaged in similar businesses in similar industries.

          (pp) No Improper Practices. (i) Neither the Company nor, to the Company’s knowledge, any of
its executive officers has, in the past five years, made any unlawful contributions to any
candidate for any political office (or failed fully to disclose any contribution in violation of
law) or made any contribution or other payment to any official of, or candidate for, any federal,
state, municipal, or foreign office or other person charged with similar public or quasi-public
duty in violation of any law or of the character required to be disclosed in the Prospectus; (ii)
no relationship, direct or indirect, exists between or among the Company or, to the Company’s
knowledge, any affiliate of the Company, on the one hand, and the directors, officers and
stockholders of the Company, on the other hand, that is required by the Securities

15

 

Act to be described in the Registration Statement and the Prospectus that is not so described;
(iii) no relationship, direct or indirect, exists between or among the Company, on the one hand,
and the directors, officers, stockholders or directors of the Company, on the other hand, that is
required by the rules of FINRA to be described in the Registration Statement and the Prospectus
that is not so described; (iv) except as described in the Prospectus, there are no material
outstanding loans or advances or material guarantees of indebtedness by the Company to or for the
benefit of any of its officers or directors or any of the members of the families of any of them;
and (v) the Company has not offered, or caused any placement agent to offer, Common Stock to any
person with the intent to influence unlawfully (A) a customer or supplier of the Company or the
Subsidiary to alter the customer’s or supplier’s level or type of business with the Company or the
Subsidiary or (B) a trade journalist or publication to write or publish favorable information about
the Company or the Subsidiary or any of their respective products or services, and, (vi) neither
the Company, nor, to the Company’s knowledge, any employee or agent of the Company has made any
payment of funds of the Company or received or retained any funds in violation of any law, rule or
regulation (including, without limitation, the Foreign Corrupt Practices Act of 1977, which
payment, receipt or retention of funds is of a character required to be disclosed in the
Registration Statement or the Prospectus.

          (qq) Status Under the Securities Act. The Company was not and is not an “ineligible issuer”
as defined in Rule 405 under the Securities Act at the times specified in Rules 164 and 433 under
the Act in connection with the offering of the Shares.

          (rr) No Misstatement or Omission in an Issuer Free Writing Prospectus. Each Issuer Free
Writing Prospectus, as of its issue date and as of each Applicable Time (as defined in Section
24 below), did not, does not and will not include any information that conflicted, conflicts or
will conflict with the information contained in the Registration Statement or the Prospectus,
including any incorporated document deemed to be a part thereof that has not been superseded or
modified. The foregoing sentence does not apply to statements in or omissions from any Issuer Free
Writing Prospectus based upon and in conformity with written information furnished to the Company
by MLV specifically for use therein.

          (ss) Disclosure Materials. Neither the Prospectus nor any amendments or supplements thereto,
at the time the Prospectus or any such amendment or supplement was issued, as of the date hereof,
and at each Representation Date, as the case may be, included or will include an untrue statement
of a material fact or omitted or will omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading.
The preceding sentence does not apply to statements in or omissions from the Prospectus, as amended
or supplemented, in reliance upon and in conformity with written information relating to MLV
furnished to the Company in writing (including, without limitation, electronic communications) by
MLV expressly for inclusion in any of the aforementioned documents.

          (tt) No Conflicts. Neither the execution of this Agreement, nor the issuance, offering or
sale of the Shares, nor the consummation of any of the transactions contemplated herein and
therein, nor the compliance by the Company with the terms and provisions hereof and thereof will
conflict with, or will result in a breach of, any of the terms and provisions of, or has
constituted or will constitute a default under, or has resulted in or will result in the creation
or

16

 

imposition of any lien, charge or encumbrance upon any property or assets of the Company
pursuant to the terms of any contract or other agreement to which the Company may be bound or to
which any of the property or assets of the Company is subject, except (i) such conflicts, breaches
or defaults as may have been waived and (ii) such conflicts, breaches and defaults that would not
have a Material Adverse Effect; nor will such action result (x) in any violation of the provisions
of the organizational or governing documents of the Company, or (y) in any material violation of
the provisions of any statute or any order, rule or regulation applicable to the Company or of any
court or of any federal, state or other regulatory authority or other government body having
jurisdiction over the Company, except such violations that would not have a Material Adverse
Effect.

          (uu) Stock Transfer Taxes. On each Settlement Date, all stock transfer or other taxes (other
than income taxes) which are required to be paid in connection with the sale and transfer of the
Shares to be sold hereunder will be, or will have been, fully paid or provided for by the Company
and all laws imposing such taxes will be or will have been complied with in all material respects.

     7. Covenants of the Company. The Company covenants and agrees with MLV that:

          (a) Registration Statement Amendments. After the date of this Agreement and during any period
in which a Prospectus relating to any Placement Shares is required to be delivered by MLV under the
Securities Act (including in circumstances where such requirement may be satisfied pursuant to Rule
172 under the Securities Act), (i) the Company will notify MLV promptly of the time when any
subsequent amendment to the Registration Statement, other than documents incorporated by reference,
has been filed with the Commission and/or has become effective or any subsequent supplement to the
Prospectus has been filed and of any request by the Commission for any amendment or supplement to
the Registration Statement or Prospectus or for additional information relating thereto, (ii) the
Company will prepare and file with the Commission, promptly upon MLV’s request, any amendments or
supplements to the Registration Statement or Prospectus that, in MLV’s reasonable opinion, may be
necessary or advisable in connection with the distribution of the Placement Shares by MLV
(provided, however, that the failure of MLV to make such request shall not relieve the Company of
any obligation or liability hereunder, or affect MLV’s right to rely on the representations and
warranties made by the Company in this Agreement and provided, further, that the only remedy MLV
shall have with respect to the failure to make such filing shall be to cease making sales under
this Agreement until such amendment or supplement is filed); (iii) the Company will not file any
amendment or supplement to the Registration Statement or Prospectus relating to the Placement
Shares or a security convertible into the Placement Shares unless a copy thereof has been submitted
to MLV within a reasonable period of time before the filing and MLV has not reasonably objected
thereto (provided, however, that the failure of MLV to make such objection shall not relieve the
Company of any obligation or liability hereunder, or affect MLV’s right to rely on the
representations and warranties made by the Company in this Agreement and provided, further, that
the only remedy MLV shall have with respect to the failure by the Company to provide MLV with such
copy shall be to cease making sales under this Agreement) and the Company will furnish to MLV at
the time of filing thereof a copy of any document that upon filing is deemed to be incorporated by
reference into the Registration Statement or Prospectus, except for those documents available via
EDGAR; and (iv) the Company will cause

17

 

each amendment or supplement to the Prospectus to be filed with the Commission as required
pursuant to the applicable paragraph of Rule 424(b) of the Securities Act or, in the case of any
document to be incorporated therein by reference, to be filed with the Commission as required
pursuant to the Exchange Act, within the time period prescribed (the determination to file or not
file any amendment or supplement with the Commission under this Section 7(a), based on the
Company’s reasonable opinion or reasonable objections, shall be made exclusively by the Company).

          (b) Notice of Commission Stop Orders. The Company will advise MLV, promptly after it receives
notice or obtains knowledge thereof, of the issuance or threatened issuance by the Commission of
any stop order suspending the effectiveness of the Registration Statement, of the suspension of the
qualification of the Placement Shares for offering or sale in any jurisdiction, or of the
initiation or threatening of any proceeding for any such purpose; and it will promptly use its
commercially reasonable efforts to prevent the issuance of any stop order or to obtain its
withdrawal if such a stop order should be issued. The Company will advise MLV promptly after it
receives any request by the Commission for any amendments to the Registration Statement or any
amendment or supplements to the Prospectus or any Issuer Free Writing Prospectus or for additional
information related to the offering of the Shares or for additional information related to the
Registration Statement, the Prospectus or any Issuer Free Writing Prospectus.

          (c) Delivery of Prospectus; Subsequent Changes. During any period in which a Prospectus
relating to the Placement Shares is required to be delivered by MLV under the Securities Act with
respect to the offer and sale of the Placement Shares, (including in circumstances where such
requirement may be satisfied pursuant to Rule 172 under the Securities Act), the Company will
comply with all requirements imposed upon it by the Securities Act, as from time to time in force,
and to file on or before their respective due dates all reports and any definitive proxy or
information statements required to be filed by the Company with the Commission pursuant to Sections
13(a), 13(c), 14, 15(d) or any other provision of or under the Exchange Act. If the Company has
omitted any information from the Registration Statement pursuant to Rule 430A under the Act, it
will use its best efforts to comply with the provisions of and make all requisite filings with the
Commission pursuant to said Rule 430A and to notify MLV promptly of all such filings. If during
such period any event occurs as a result of which the Prospectus as then amended or supplemented
would include an untrue statement of a material fact or omit to state a material fact necessary to
make the statements therein, in the light of the circumstances then existing, not misleading, or if
during such period it is necessary to amend or supplement the Registration Statement or Prospectus
to comply with the Securities Act, the Company will promptly notify MLV to suspend the offering of
Placement Shares during such period and the Company will promptly amend or supplement the
Registration Statement or Prospectus (at the expense of the Company) so as to correct such
statement or omission or effect such compliance; provided, however, that the Company may delay the
filing of any such amendment or supplement, if in the judgment of the Company, it is in the best
interests of the Company to do so.

          (d) Listing of Placement Shares. During any period in which the Prospectus relating to the
Placement Shares is required to be delivered by MLV under the Securities Act with respect to the
offer and sale of the Placement Shares, the Company will use its reasonable

18

 

best efforts to cause the Placement Shares to be listed on the Exchange and to qualify the
Placement Shares for sale under the securities laws of such jurisdictions as MLV reasonably
designates and to continue such qualifications in effect so long as required for the distribution
of the Placement Shares; provided, however, that the Company shall not be required in connection
therewith to qualify as a foreign corporation or dealer in securities or file a general consent to
service of process in any jurisdiction.

          (e) Delivery of Registration Statement and Prospectus. The Company will furnish to MLV and
its counsel (at the expense of the Company) copies of the Registration Statement, the Prospectus
(including all documents incorporated by reference therein) and all amendments and supplements to
the Registration Statement or Prospectus that are filed with the Commission during any period in
which a Prospectus relating to the Placement Shares is required to be delivered under the
Securities Act (including all documents filed with the Commission during such period that are
deemed to be incorporated by reference therein), in each case as soon as reasonably practicable and
in such quantities as MLV may from time to time reasonably request and, at MLV’s request, will also
furnish copies of the Prospectus to each exchange or market on which sales of the Placement Shares
may be made; provided, however, that the Company shall not be required to furnish any document
(other than the Prospectus) to MLV to the extent such document is available on EDGAR.

          (f) Earnings Statement. The Company will make generally available to its security holders as
soon as practicable, but in any event not later than 15 months after the end of the Company’s
current fiscal quarter, an earnings statement covering a 12-month period that satisfies the
provisions of Section 11(a) and Rule 158 of the Securities Act.

          (g) Use of Proceeds. The Company will use the Net Proceeds as described in the Prospectus in
the section entitled “Use of Proceeds.”

          (h) Notice of Other Sales. Without the prior written consent of MLV, the Company will not,
directly or indirectly, offer to sell, sell, contract to sell, grant any option to sell or
otherwise dispose of any shares of Common Stock (other than the Shares offered pursuant to the
provisions of this Agreement) or securities convertible into or exchangeable for Common Stock,
warrants or any rights to purchase or acquire, Common Stock during the period beginning on the
fifth trading day immediately prior to the date on which any Placement Notice is delivered to MLV
hereunder and ending on the fifth trading day immediately following the final Settlement Date with
respect to Placement Shares sold pursuant to such Placement Notice (or, if the Placement Notice has
been terminated or suspended prior to the sale of all Shares covered by a Placement Notice, the
date of such suspension or termination) (such time period, a “Restricted Period”); and will not
directly or indirectly in any other “at-the-market” or continuous equity transaction offer to sell,
sell, contract to sell, grant any option to sell or otherwise dispose of any shares of Common Stock
(other than the Shares offered pursuant to the provisions of this Agreement) or securities
convertible into or exchangeable for Common Stock, warrants or any rights to purchase or acquire,
Common Stock prior to the later of the termination of this Agreement and the thirtieth
(30th) day immediately following the final Settlement Date with respect to Placement
Shares sold pursuant to such Placement Notice; provided, however, that such restrictions will not
apply to the Company’s issuance or sale of (i) Common Stock, options to purchase shares of Common
Stock or Common Stock issuable upon the exercise of options,

19

 

pursuant to any employee or director stock option or benefits plan, stock ownership plan or
dividend reinvestment plan (but not shares subject to a waiver to exceed plan limits in its
dividend reinvestment plan) of the Company whether now in effect or hereafter implemented, and (ii)
Common Stock issuable upon conversion of securities or the exercise of warrants, options or other
rights in effect or outstanding, and disclosed in filings by the Company available on EDGAR or
otherwise in writing to MLV.

          (i) Change of Circumstances. The Company will, at any time during the pendency of a Placement
Notice advise MLV promptly after it shall have received notice or obtained knowledge thereof, of
any information or fact that would alter or affect in any material respect any opinion,
certificate, letter or other document required to be provided to MLV pursuant to this Agreement.

          (j) Due Diligence Cooperation. The Company will cooperate with any reasonable due diligence
review conducted by MLV or its representatives in connection with the transactions contemplated
hereby, including, without limitation, providing information and making available documents and
senior corporate officers, during regular business hours and at the Company’s principal offices, as
MLV may reasonably request.

          (k) Required Filings Relating to Placement of Placement Shares. The Company agrees that on
such dates as the Securities Act shall require, the Company will (i) file a prospectus supplement
with the Commission under the applicable paragraph of Rule 424(b) under the Securities Act (each
and every filing under Rule 424(b), a “Filing Date”), which prospectus supplement will set
forth, within the relevant period, the maximum amount of Placement Shares to be sold through MLV,
the Net Proceeds to the Company and the compensation payable by the Company to MLV with respect to
such Placement Shares, and (ii) deliver such number of copies of each such prospectus supplement to
each exchange or market on which such sales were effected as may be required by the rules or
regulations of such exchange or market.

          (l) Representation Dates; Certificate. On the date of this Agreement and each time the
Company:

               (i) files the Prospectus relating to the Placement Shares or amends or supplements (other than
a prospectus supplement relating solely to an offering of securities other than the Securities) the
Registration Statement or the Prospectus relating to the Placement Shares by means of a
post-effective amendment, sticker, or supplement but not by means of incorporation of documents by
reference into the Registration Statement or the Prospectus relating to the Placement Shares;

               (ii) files an annual report on Form 10-K under the Exchange Act or an amendment to a
previously filed annual report on Form 10-K that contains restated financial statements;

               (iii) files its quarterly reports on Form 10-Q under the Exchange Act; or

               (iv) files a current report on Form 8-K containing amended financial information (other than
information “furnished” pursuant to Items 2.02 or 7.01 of Form 8-K or to

20

 

provide disclosure pursuant to Item 8.01 of Form 8-K relating to the reclassification of certain
properties as discontinued operations in accordance with Statement of Financial Accounting
Standards No. 144) under the Exchange Act;

(each date of filing of one or more of the documents referred to in clauses (i) through (iv) shall
be a “Representation Date”); the Company shall furnish MLV (but in the case of clause (iv)
above only if MLV reasonably determines that the information contained in such Form 8-K is
material) with a certificate, in the form attached hereto as Exhibit 7(l). The requirement
to provide a certificate under this Section 7(l) shall be waived for any Representation
Date occurring during a Suspension Period or at a time at which no Placement Notice is pending,
which waiver shall continue until the earlier to occur of the date the Company next delivers a
Placement Notice hereunder (which for such calendar quarter shall be considered a Representation
Date), assuming no Suspension Period currently exists, and the next occurring Representation Date;
provided, however, that such waiver shall not apply for any Representation Date on which the
Company files its annual report on Form 10-K. Notwithstanding the foregoing, if the Company
subsequently decides to sell Placement Shares following a Representation Date when the Company
relied on such waiver and did not provide MLV with a certificate under this Section 7(l), then
before the Company delivers the Placement Notice or MLV sells any Placement Shares, the Company
shall provide MLV with a certificate, in the form attached hereto as Exhibit 7(l), dated
the date of the Placement Notice.

          (m) Legal Opinion. (i) On the date of this Agreement and (ii) within five trading days of
each Representation Date with respect to which the Company is obligated to deliver a certificate in
the form attached hereto as Exhibit 7(l) for which no waiver is applicable, the Company
shall cause to be furnished to MLV a written opinion of Mintz, Levin, Cohn, Ferris, Glovsky, and
Popeo P.C. (“Company Counsel”), or other counsel reasonably satisfactory to MLV, in form
and substance satisfactory to MLV and its counsel, substantially similar to the form attached
hereto as Exhibit 7(m), modified, as necessary, to relate to the Registration Statement and
the Prospectus as then amended or supplemented; provided, however, the Company shall be required to
furnish to MLV no more than one opinion hereunder per calendar quarter; provided, further, that in
lieu of such opinions for subsequent periodic filings under the Exchange Act, counsel may furnish
MLV with a letter (a “Reliance Letter”) to the effect that MLV may rely on a prior opinion
delivered under this Section 7(m) to the same extent as if it were dated the date of such
letter (except that statements in such prior opinion shall be deemed to relate to the Registration
Statement and the Prospectus as amended or supplemented as of the date of the Reliance Letter).

          (n) Comfort Letter. (i) On the date of this Agreement and (ii) within five trading days of
each subsequent date during the term of this Agreement that the Company files an annual report on
Form 10-K under the Exchange Act, or an amendment to a previously filed annual report on Form 10-K
that contains restated financial statements, the Company shall use commercially reasonable efforts
to cause its independent accountants to furnish MLV letters (the “Comfort Letters”), dated
the date the Comfort Letter is delivered, subject to the conditions set forth in the next sentence.
Prior to the receipt of each Comfort Letter hereunder, MLV shall provide the Company’s independent
accountants with (i) a formal written request for such Comfort Letter; (ii) either (a) a legal
opinion from its counsel stating that MLV meets the definition of an underwriter for purposes of
the Securities Act or (b) a letter asserting that MLV

21

 

has a statutory due diligence defense and is otherwise eligible to receive a comfort letter in
accordance with Statement on Auditing Standards (SAS) 72 (AU 634), Letters for Underwriters and
Certain Other Requesting Parties, as amended by SAS 76 and SAS 86 (the “SAS”); and (iii)
any other documentation reasonably requested by the Company’s independent accountants in support of
the request for the Comfort Letter. The Comfort Letter from the Company’s independent accountants
shall be in a form and substance consistent with the SAS, and shall (A) confirm that they are an
independent public accounting firm within the meaning of the Securities Act and the PCAOB, (B)
state, as of such date, the conclusions and findings of such firm with respect to the financial
information and other matters ordinarily covered by accountants’ “comfort letters” to underwriters
in connection with registered public offerings (the first such letter, the “Initial Comfort
Letter”) and (C) update the Initial Comfort Letter with any information that would have been
included in the Initial Comfort Letter had it been given on such date and modified as necessary to
relate to the Registration Statement and the Prospectus, as amended and supplemented to the date of
such letter.

          (o) Market Activities. The Company will not, directly or indirectly, (i) take any action
designed to cause or result in, or that constitutes or might reasonably be expected to constitute,
the stabilization or manipulation of the price of any security of the Company to facilitate the
sale or resale of the Shares or (ii) during a Restricted Period, sell, bid for, or purchase the
Shares, or pay anyone any compensation for soliciting purchases of the Shares other than MLV.

          (p) Investment Company Act. The Company will conduct its affairs in such a manner so as to
reasonably ensure that it will not be or become, at any time prior to the termination of this
Agreement, an “investment company,” as such term is defined in the Investment Company Act, assuming
no change in the Commission’s current interpretation as to entities that are not considered an
investment company.

          (q) No Offer to Sell. Other than an Issuer Free Writing Prospectus approved in advance by the
Company and MLV in its capacity as agent hereunder, neither MLV nor the Company (including its
agents and representatives, other than MLV in its capacity as such) will make, use, prepare,
authorize, approve or refer to any written communication (as defined in Rule 405 under the Act),
required to be filed with the Commission, that constitutes an offer to sell or solicitation of an
offer to buy Shares hereunder.

          (r) Blue Sky and Other Qualifications. The Company will use its commercially reasonable
efforts, in cooperation with MLV, to qualify the Placement Shares for offering and sale, or to
obtain an exemption for the Shares to be offered and sold, under the applicable securities laws of
such states and other jurisdictions (domestic or foreign) as MLV may designate and to maintain such
qualifications and exemptions in effect for so long as required for the distribution of the Shares
(but in no event for less than one year from the date of this Agreement); provided, however, that
the Company shall not be obligated to file any general consent to service of process or to qualify
as a foreign corporation or as a dealer in securities in any jurisdiction in which it is not so
qualified or to subject itself to taxation in respect of doing business in any jurisdiction in
which it is not otherwise so subject. In each jurisdiction in which the Placement Shares have been
so qualified or exempt, the Company will file such statements and reports as may be required by the
laws of such jurisdiction to continue such qualification or

22

 

exemption, as the case may be, in effect for so long as required for the distribution of the
Placement Shares (but in no event for less than one year from the date of this Agreement).

          (s) Sarbanes-Oxley Act. The Company will maintain and keep accurate books and records
reflecting its assets and maintain internal accounting controls in a manner designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted accounting
principles and including those policies and procedures that (i) pertain to the maintenance of
records that in reasonable detail accurately and fairly reflect the transactions and dispositions
of the assets of the Company, (ii) provide reasonable assurance that transactions are recorded as
necessary to permit the preparation of the Company’s consolidated financial statements in
accordance with generally accepted accounting principles, (iii) that receipts and expenditures of
the Company are being made only in accordance with management’s and the Company’s directors’
authorization, and (iv) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of the Company’s assets that could have a material
effect on its financial statements. The Company will maintain such controls and other procedures,
including, without limitation, those required by Sections 302 and 906 of the Sarbanes-Oxley Act,
and the applicable regulations thereunder that are designed to ensure that information required to
be disclosed by the Company in the reports that it files or submits under the Exchange Act is
recorded, processed, summarized and reported, within the time periods specified in the Commission’s
rules and forms, including, without limitation, controls and procedures designed to ensure that
information required to be disclosed by the Company in the reports that it files or submits under
the Exchange Act is accumulated and communicated to the Company’s management, including its Chief
Executive Officer and principal financial officer, or persons performing similar functions, as
appropriate to allow timely decisions regarding required disclosure and to ensure that material
information relating to the Company is made known to them, particularly during the period in which
such periodic reports are being prepared.

     8. Covenants of MLV.

          MLV covenants and agrees that it is duly registered as a broker-dealer under FINRA, the
Exchange Act and the applicable statutes and regulations of each state in which the Shares will be
offered and sold, except such states in which MLV is exempt from registration or such registration
is not otherwise required. MLV shall continue, for the term of this Agreement, to be duly
registered as a broker-dealer under FINRA, the Exchange Act and the applicable statutes and
regulations of each state in which the Shares will be offered and sold, except such states in which
MLV is exempt from registration or such registration is not otherwise required, during the term of
this Agreement.

     9. Payment of Expenses.

          (a) Expenses. The Company will pay all expenses incident to the performance of its
obligations under this Agreement, including (i) the preparation, filing, including any fees
required by the Commission, and printing of the Registration Statement (including financial
statements and exhibits) as originally filed and of each amendment and supplement thereto, in such
number as MLV shall reasonably deem necessary, (ii) the printing

23

 

and delivery to MLV of this Agreement and such other documents as may be required in
connection with the offering, purchase, sale, issuance or delivery of the Placement Shares, (iii)
the preparation, issuance and delivery of the certificates, if any, for the Placement Shares to
MLV, including any stock or other transfer taxes and any capital duties, stamp duties or other
duties or taxes payable upon the sale, issuance or delivery of the Placement Shares to MLV, (iv)
the fees and disbursements of the counsel, accountants and other advisors to the Company, (v) the
qualification or exemption of the Placement Shares under state securities laws in accordance with
the provisions of Section 7(r) hereof, including filing fees (provided, however, any fees
or disbursements of counsel for MLV in connection therewith shall be paid by MLV), (vi) the
printing and delivery to MLV of copies of any permitted Free Writing Prospectus and the Prospectus
and any amendments or supplements thereto in such number as MLV shall deem necessary, (vii) the
preparation, printing and delivery to MLV of copies of the blue sky survey and any Canadian
“wrapper” and any supplements thereto, in such number as MLV shall deem necessary, (viii) the fees
and expenses of the transfer agent and registrar for the Securities, (ix) the filing fees and
reasonable fees of the Company’s counsel incident to any review by FINRA of the terms of the sale
of the Securities, and (x) the fees and expenses incurred in connection with the listing of the
Placement Shares on the Exchange.

          (b) The Company shall reimburse MLV $20,000 for a portion of the fees paid to its counsel in
connection with this Agreement and such reimbursement is due to MLV within 2 business days after
the date of this Agreement. The Company shall not be responsible for any other fees of expenses of
MLV in connection with this Agreement, subject to its obligations in Section 9(a).

     10. Conditions to MLV’s Obligations. The obligations of MLV hereunder with respect to
a Placement will be subject to the continuing accuracy and completeness of the representations and
warranties made by the Company herein, to the due performance by the Company of its obligations
hereunder, to the completion by MLV of a due diligence review satisfactory to it in its reasonable
judgment, and to the continuing satisfaction (or waiver by MLV in its sole discretion) of the
following additional conditions:

          (a) Registration Statement Effective. The Registration Statement shall have become effective
and shall be available for the (i) sale of all Placement Shares to be issued to MLV and sold
through MLV and (ii) the sale of all Placement Shares contemplated to be issued by any Placement
Notice.

          (b) No Material Notices. None of the following events shall have occurred and be continuing:
(i) receipt by the Company of any request for additional information from the Commission or any
other federal or state governmental authority during the period of effectiveness of the
Registration Statement, the response to which would require any post-effective amendments or
supplements to the Registration Statement or the Prospectus; (ii) the issuance by the Commission or
any other federal or state governmental authority of any stop order suspending the effectiveness of
the Registration Statement or the initiation of any proceedings for that purpose; (iii) receipt by
the Company of any notification with respect to the suspension of the qualification or exemption
from qualification of any of the Placement Shares for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose; or (iv) the occurrence of any event that makes any
material statement made in the Registration

24

 

Statement or the Prospectus or any material document incorporated or deemed to be incorporated
therein by reference untrue in any material respect or that requires the making of any changes in
the Registration Statement, related Prospectus or documents so that, in the case of the
Registration Statement, it will not contain any materially untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to make the statements
therein not misleading and, that in the case of the Prospectus, it will not contain any materially
untrue statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading.

          (c) No Misstatement or Material Omission. MLV shall not have advised the Company that the
Registration Statement or Prospectus, or any amendment or supplement thereto, contains an untrue
statement of fact that in MLV’s reasonable opinion is material, or omits to state a fact that in
MLV’s opinion is material and is required to be stated therein or is necessary to make the
statements therein not misleading.

          (d) Material Changes. Except as contemplated in the Prospectus, or disclosed in the Company’s
reports filed with the Commission, there shall not have been any material adverse change, on a
consolidated basis, in the authorized capital stock of the Company or any Material Adverse Effect,
or any development that could reasonably be expected to cause a Material Adverse Effect, or a
downgrading in or withdrawal of the rating assigned to any of the Company’s securities (other than
asset backed securities) by any rating organization or a public announcement by any rating
organization that it has under surveillance or review its rating of any of the Company’s securities
(other than asset backed securities), the effect of which, in the case of any such action by a
rating organization described above, in the reasonable judgment of MLV (without relieving the
Company of any obligation or liability it may otherwise have), is so material as to make it
impracticable or inadvisable to proceed with the offering of the Placement Shares on the terms and
in the manner contemplated in the Prospectus.

          (e) Legal Opinion. MLV shall have received the opinions of Company Counsel required to be
delivered pursuant to Section 7(m) on or before the date on which such delivery of such
opinion is required pursuant to Section 7(m).

          (f) Comfort Letter. MLV shall have received the Comfort Letter required to be delivered
pursuant to Section 7(n) on or before the date on which such delivery of such opinion is
required pursuant to Section 7(n).

          (g) Representation Certificate. MLV shall have received the certificate required to be
delivered pursuant to Section 7(l) on or before the date on which delivery of such
certificate is required pursuant to Section 7(l).

          (h) No Suspension. Trading in the Shares shall not have been suspended on the Exchange.

          (i) Other Materials. On each date on which the Company is required to deliver a certificate
pursuant to Section 7(l), the Company shall have furnished to MLV such appropriate further
information, certificates and documents as MLV may reasonably request. All

25

 

such opinions, certificates, letters and other documents will be in compliance with the
provisions hereof. The Company will furnish MLV with such conformed copies of such opinions,
certificates, letters and other documents as MLV shall reasonably request.

          (j) Securities Act Filings Made. All filings with the Commission required by Rule 424 under
the Securities Act to have been filed prior to the issuance of any Placement Notice hereunder shall
have been made within the applicable time period prescribed for such filing by Rule 424.

          (k) Approval for Listing. The Placement Shares shall either have been approved for listing on
the Exchange, subject only to notice of issuance, or the Company shall have filed an application
for listing of the Placement Shares on the Exchange at, or prior to, the issuance of any Placement
Notice.

          (l) No Termination Event. There shall not have occurred any event that would permit MLV to
terminate this Agreement pursuant to Section 12(a).

     11. Indemnification and Contribution.

          (a) Company Indemnification. The Company agrees to indemnify and hold harmless MLV, its
partners, members, directors, officers, employees and agents and each person, if any, who controls
MLV within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act as
follows:

               (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred,
joint or several, arising out of or based upon any untrue statement or alleged untrue statement of
a material fact contained in the Registration Statement (or any amendment thereto), or the omission
or alleged omission therefrom of a material fact required to be stated therein or necessary to make
the statements therein not misleading, or arising out of any untrue statement or alleged untrue
statement of a material fact included in any related Issuer Free Writing Prospectus or the
Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom
of a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading;

               (ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred,
joint or several, to the extent of the aggregate amount paid in settlement of any litigation, or
any investigation or proceeding by any governmental agency or body, commenced or threatened, or of
any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue
statement or omission; provided that (subject to Section 11(c) below) any such settlement
is effected with the written consent of each indemnified party, which consent shall not
unreasonably be delayed or withheld; and

               (iii) against any and all expense whatsoever, as incurred (including the reasonable fees and
disbursements of counsel), reasonably incurred in investigating, preparing or defending against any
litigation, or any investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or
(ii) above,

26

 

provided, however, that this indemnity agreement shall not apply to any loss, liability, claim,
damage or expense to the extent arising directly or indirectly out of any untrue statement or
omission or alleged untrue statement or omission made in reliance upon and in conformity with
written information furnished to the Company by MLV expressly for use in the Registration Statement
(or any amendment thereto), or in any related Issuer Free Writing Prospectus or the Prospectus (or
any amendment or supplement thereto).

          (b) MLV Indemnification. MLV agrees to indemnify and hold harmless the Company and its
directors and each officer of the Company who signed the Registration Statement, and each person,
if any, who (i) controls the Company within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act or (ii) is controlled by or is under common control with the Company
against any and all loss, liability, claim, damage and expense described in the indemnity contained
in Section 11(c), as incurred, but only with respect to untrue statements or omissions, or
alleged untrue statements or omissions, made in the Registration Statement (or any amendments
thereto) or the Prospectus (or any amendment or supplement thereto) in reliance upon and in
conformity with information relating to MLV and furnished to the Company by MLV.

          (c) Procedure. Any party that proposes to assert the right to be indemnified under this
Section 11 will, promptly after receipt of notice of commencement of any action against
such party in respect of which a claim is to be made against an indemnifying party or parties under
this Section 11, notify each such indemnifying party of the commencement of such action,
enclosing a copy of all papers served, but the omission so to notify such indemnifying party will
not relieve the indemnifying party from (i) any liability that it might have to any indemnified
party otherwise than under this Section 11 and (ii) any liability that it may have to any
indemnified party under the foregoing provision of this Section 11 unless, and only to the
extent that, such omission results in the forfeiture or material impairment of substantive rights
or defenses by the indemnifying party. If any such action is brought against any indemnified party
and it notifies the indemnifying party of its commencement, the indemnifying party will be entitled
to participate in and, to the extent that it elects by delivering written notice to the indemnified
party promptly after receiving notice of the commencement of the action from the indemnified party,
jointly with any other indemnifying party similarly notified, to assume the defense of the action,
with counsel reasonably satisfactory to the indemnified party, and after notice from the
indemnifying party to the indemnified party of its election to assume the defense, the indemnifying
party will not be liable to the indemnified party for any legal or other expenses except as
provided below and except for the reasonable costs of investigation subsequently incurred by the
indemnified party in connection with the defense. The indemnified party will have the right to
employ its own counsel in any such action, but the fees, expenses and other charges of such counsel
will be at the expense of such indemnified party unless (A) the employment of counsel by the
indemnified party has been authorized in writing by the indemnifying party, (B) the indemnified
party has reasonably concluded (based on advice of counsel) that there may be legal defenses
available to it or other indemnified parties that are different from or in addition to those
available to the indemnifying party, (C) a conflict or potential conflict exists (based on advice
of counsel to the indemnified party) between the indemnified party and the indemnifying party (in
which case the indemnifying party will not have the right to direct the defense of such action on
behalf of the indemnified party) or (D) the indemnifying party has not in fact employed counsel to
assume the defense of such action within

27

 

a reasonable time after receiving notice of the commencement of the action, in each of which
cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the
indemnifying party or parties. It is understood that the indemnifying party or parties shall not,
in connection with any proceeding or related proceedings in the same jurisdiction, be liable for
the reasonable fees, disbursements and other charges of more than one separate firm admitted to
practice in such jurisdiction at any one time for all such indemnified party or parties. All such
fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they
are incurred. An indemnifying party will not, in any event, be liable for any settlement of any
action or claim effected without its written consent. No indemnifying party shall, without the
prior written consent of each indemnified party, settle or compromise or consent to the entry of
any judgment in any pending or threatened claim, action or proceeding relating to the matters
contemplated by this Section 11 (whether or not any indemnified party is a party thereto),
unless such settlement, compromise or consent includes an unconditional release of each indemnified
party from all liability arising or that may arise out of such claim, action or proceeding.

          (d) Contribution. In order to provide for just and equitable contribution in circumstances in
which the indemnification provided for in the foregoing paragraphs of this Section 11 is
applicable in accordance with its terms but for any reason is held to be unavailable from the
Company or MLV, the Company and MLV will contribute to the total losses, claims, liabilities,
expenses and damages (including any investigative, legal and other expenses reasonably incurred in
connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim
asserted, but after deducting any contribution (other than defense related costs and expenses)
received by the Company from persons other than MLV, such as persons who control the Company within
the meaning of the Securities Act, officers of the Company who signed the Registration Statement
and directors of the Company, who also may be liable for contribution) to which the Company and MLV
may be subject in such proportion as shall be appropriate to reflect the relative benefits received
by the Company on the one hand and MLV on the other. The relative benefits received by the Company
on the one hand and MLV on the other hand shall be deemed to be in the same proportion as the total
net proceeds from the sale of the Placement Shares (before deducting expenses) received by the
Company bear to the total compensation received by MLV (before deducting expenses) from the sale of
Placement Shares on behalf of the Company. If, but only if, the allocation provided by the
foregoing sentence is not permitted by applicable law, the allocation of contribution shall be made
in such proportion as is appropriate to reflect not only the relative benefits referred to in the
foregoing sentence but also the relative fault of the Company, on the one hand, and MLV, on the
other, with respect to the statements or omission that resulted in such loss, claim, liability,
expense or damage, or action in respect thereof, as well as any other relevant equitable
considerations with respect to such offering. Such relative fault shall be determined by reference
to, among other things, whether the untrue or alleged untrue statement of a material fact or
omission or alleged omission to state a material fact relates to information supplied by the
Company or MLV, the intent of the parties and their relative knowledge, access to information and
opportunity to correct or prevent such statement or omission. The Company and MLV agree that it
would not be just and equitable if contributions pursuant to this Section 11(d) were to be
determined by pro rata allocation or by any other method of allocation that does not take into
account the equitable considerations referred to herein. The amount paid or payable by an
indemnified party as a result of the loss, claim, liability, expense, or damage, or action in
respect thereof, referred to above in this Section 11(d) shall be deemed to include, for
the purpose of this Section 11(d), any

28

 

legal or other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim to the extent consistent with Section
11(d) hereof. Notwithstanding the foregoing provisions of this Section 11(d), and
except in the case of willful misconduct, MLV shall not be required to contribute any amount in
excess of the commissions received by it under this Agreement and no person found guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be
entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.
For purposes of this Section 11(d), any person who controls a party to this Agreement
within the meaning of the Securities Act, and any officers, directors, partners, employees or
agents of MLV, will have the same rights to contribution as that party, and each officer of the
Company who signed the Registration Statement will have the same rights to contribution as the
Company, subject in each case to the provisions hereof. Any party entitled to contribution,
promptly after receipt of notice of commencement of any action against such party in respect of
which a claim for contribution may be made under this Section 11(d), will notify any such
party or parties from whom contribution may be sought, but the omission to so notify will not
relieve that party or parties from whom contribution may be sought from any other obligation it or
they may have under this Section 11(d) except to the extent that the failure to so notify
such other party materially prejudiced the substantive rights or defenses of the party from whom
contribution is sought. Except for a settlement entered into pursuant to the last sentence of
Section 11(c) hereof, no party will be liable for contribution with respect to any action
or claim settled without its written consent if such consent is required pursuant to Section
11(c) hereof.

     12. Representations and Agreements to Survive Delivery. The indemnity and
contribution agreements contained in Section 11 of this Agreement and all representations
and warranties of the Company herein or in certificates delivered pursuant hereto shall survive, as
of their respective dates, regardless of (i) any investigation made by or on behalf of MLV, any
controlling persons, or the Company (or any of their respective officers, directors or controlling
persons), (ii) delivery and acceptance of the Placement Shares and payment therefor or (iii) any
termination of this Agreement.

     13. Termination.

          (a) MLV shall have the right by giving notice as hereinafter specified at any time to
terminate this Agreement if (i) any Material Adverse Effect, or any development that has actually
occurred and that is reasonably expected to cause a Material Adverse Effect has occurred that, in
the reasonable judgment of MLV, may materially impair the ability of MLV to sell the Placement
Shares hereunder, (ii) the Company shall have failed, refused or been unable to perform any
agreement on its part to be performed hereunder; provided, however, in the case of any failure of
the Company to deliver (or cause another person to deliver) any certification, opinion, or letter
required under Sections 7(l), 7(m), or 7(n), MLV’s right to terminate shall
not arise unless such failure to deliver (or cause to be delivered) continues for more than thirty
days from the date such delivery was required; or (iii) any other condition of MLV’s obligations
hereunder is not fulfilled, or (iv), any suspension or limitation of trading in the Placement
Shares or in securities generally on the Exchange shall have occurred. Any such termination shall
be without liability of any party to any other party except that the provisions of Section 9
(Payment of Expenses), Section 11 (Indemnification and Contribution), Section 12 (Representations
and Agreements to Survive Delivery), Section 18 (Applicable Law; Consent to Jurisdiction) and

29

 

Section 19 (Waiver of Jury Trial) hereof shall remain in full force and effect notwithstanding
such termination. If MLV elects to terminate this Agreement as provided in this Section 13(a), MLV
shall provide the required notice as specified in Section 14 (Notices).

          (b) The Company shall have the right, by giving ten days notice as hereinafter specified to
terminate this Agreement in its sole discretion at any time after the date of this Agreement. Any
such termination shall be without liability of any party to any other party except that the
provisions of Section 9, Section 11, Section 12, Section 18 and
Section 19 hereof shall remain in full force and effect notwithstanding such termination.

          (c) MLV shall have the right, by giving ten days notice as hereinafter specified to terminate
this Agreement in its sole discretion at any time after the date of this Agreement. Any such
termination shall be without liability of any party to any other party except that the provisions
of Section 9, Section 11, Section 12, Section 18 and Section
19 hereof shall remain in full force and effect notwithstanding such termination.

          (d) Unless earlier terminated pursuant to this Section 13, this Agreement shall
automatically terminate upon the issuance and sale of all of the Placement Shares through MLV on
the terms and subject to the conditions set forth herein; provided that the provisions of
Section 9, Section 11, Section 12, Section 18 and Section
19 hereof shall remain in full force and effect notwithstanding such termination.

          (e) This Agreement shall remain in full force and effect unless terminated pursuant to
Sections 13(a), 13(b), 13(c), or 13(d) above or otherwise by mutual
agreement of the parties; provided, however, that any such termination by mutual agreement shall in
all cases be deemed to provide that Section 9, Section 11, Section 12,
Section 18 and Section 19 shall remain in full force and effect.

          (f) Any termination of this Agreement shall be effective on the date specified in such notice
of termination; provided, however, that such termination shall not be effective until the close of
business on the date of receipt of such notice by MLV or the Company, as the case may be. If such
termination shall occur prior to the Settlement Date for any sale of Placement Shares, such
Placement Shares shall settle in accordance with the provisions of this Agreement.

     14. Notices. All notices or other communications required or permitted to be given by
any party to any other party pursuant to the terms of this Agreement shall be in writing, unless
otherwise specified, and if sent to MLV, shall be delivered to:

McNicoll, Lewis & Vlak LLC

420 Lexington Ave., Suite 628

New York, NY 10170

Attention: [  ]

Facsimile:  [  ]

30

 

     with a copy to:

Holme Roberts & Owen LLP

1700 Lincoln Street, Suite 4100

Denver, CO 80203

Attention: [  ]

Facsimile:  [  ]

     and if to the Company, shall be delivered to:

OXiGENE, Inc.

701 Gateway Boulevard, Suite 210

South San Francisco, CA 94080

Attention: [  ]

Facsimile:  [  ]

     with a copy to:

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

One Financial Center

Boston, MA 02111

Attention: [  ]

Facsimile:  [  ]

     Each party to this Agreement may change such address for notices by sending to the parties to
this Agreement written notice of a new address for such purpose. Each such notice or other
communication shall be deemed given (i) when delivered personally or by verifiable facsimile
transmission (with an original to follow) on or before 4:30 p.m., New York City time, on a Business
Day or, if such day is not a Business Day, on the next succeeding Business Day, (ii) on the next
Business Day after timely delivery to a nationally-recognized overnight courier and (iii) on the
Business Day actually received if deposited in the U.S. mail (certified or registered mail, return
receipt requested, postage prepaid). For purposes of this Agreement, “Business Day” shall
mean any day on which the Exchange and commercial banks in the City of New York are open for
business.

     An electronic communication (“Electronic Notice”) shall be deemed written notice for
purposes of this Section 13 if sent to the electronic mail address specified by the
receiving party under separate cover. Electronic Notice shall be deemed received at the time the
party sending Electronic Notice receives verification of receipt by the receiving party. Any party
receiving Electronic Notice may request and shall be entitled to receive the notice on paper, in a
non-electronic form (“Non-electronic Notice”) which shall be sent to the requesting party
within ten days of receipt of the written request for Non-electronic Notice.

     15. Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the Company and MLV and their respective successors and the affiliates, controlling
persons, officers and directors referred to in Section 10 hereof. References to any of the
parties contained in this Agreement shall be deemed to include the successors and permitted assigns
of such party. Nothing in this Agreement, express or implied, is intended to confer upon

31

 

any party other than the parties hereto or their respective successors and permitted assigns
any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as
expressly provided in this Agreement. Neither party may assign its rights or obligations under
this Agreement without the prior written consent of the other party; provided, however, that MLV
may assign its rights and obligations hereunder to an affiliate thereof without obtaining the
Company’s consent.

     16. Adjustments for Stock Splits. The parties acknowledge and agree that all
share-related numbers contained in this Agreement shall be adjusted to take into account any stock
split, stock dividend or similar event effected with respect to the Shares prior to the termination
of the Agreement.

     17. Entire Agreement; Amendment; Severability. This Agreement (including all
schedules and exhibits attached hereto and Placement Notices issued pursuant hereto) constitutes
the entire agreement and supersedes all other prior and contemporaneous agreements and
undertakings, both written and oral, among the parties hereto with regard to the subject matter
hereof. Neither this Agreement nor any term hereof may be amended except pursuant to a written
instrument executed by the Company and MLV. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held invalid, illegal or
unenforceable as written by a court of competent jurisdiction, then such provision shall be given
full force and effect to the fullest possible extent that it is valid, legal and enforceable, and
the remainder of the terms and provisions herein shall be construed as if such invalid, illegal or
unenforceable term or provision was not contained herein, but only to the extent that giving effect
to such provision and the remainder of the terms and provisions hereof shall be in accordance with
the intent of the parties as reflected in this Agreement.

     18. Governing Law and Time; Waiver of Jury Trial. THIS AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. SPECIFIED TIMES OF DAY REFER TO
NEW YORK CITY TIME. EACH OF MLV AND THE COMPANY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT
OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     19. Consent to Jurisdiction. 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 (certified or registered mail, return receipt requested) 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.

     20. Use of Information. MLV may not use any information gained in connection with this
Agreement and the transactions contemplated by this Agreement, including due diligence, to advise
any party with respect to transactions not expressly approved by the Company.

32

 

     21. Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument. Delivery of an executed Agreement by one party to the other may be made by facsimile
transmission.

     22. Effect of Headings. The section and Exhibit headings herein are for convenience
only and shall not affect the construction hereof.

     23. Permitted Free Writing Prospectuses. The Company represents, warrants and agrees
that, unless it obtains the prior consent of MLV, and MLV represents, warrants and agrees that,
unless it obtains the prior consent of the Company, it has not made and will not make any offer
relating to the Shares that would constitute an Issuer Free Writing Prospectus, or that would
otherwise constitute a “free writing prospectus,” as defined in Rule 405 (a “Free Writing
Prospectus”), required to be filed with the Commission. Any such Free Writing Prospectus
consented to by MLV or by the Company, as the case may be, is hereinafter referred to as a
“Permitted Free Writing Prospectus.” The Company represents and warrants that it has
treated and agrees that it will treat each Permitted Free Writing Prospectus as an “issuer free
writing prospectus,” as defined in Rule 433 (an “Issuer Free Writing Prospectus”), and has complied
and will comply with the requirements of Rule 433 applicable to any Permitted Free Writing
Prospectus, including timely filing with the Commission where required, legending and record
keeping. For the purposes of clarity, the parties hereto agree that all Free Writing Prospectuses,
if any, listed in Schedule 4 hereto are Permitted Free Writing Prospectuses.

     24. Absence of Fiduciary Relationship. The Company acknowledges and agrees that:

          (a) Unless otherwise agreed to in writing by the Company and MLV, MLV is acting solely as
agent in connection with the public offering of the Shares and in connection with each transaction
contemplated by this Agreement and the process leading to such transactions, and no fiduciary or
advisory relationship between the Company or any of its respective affiliates, stockholders (or
other equity holders), creditors or employees or any other party, on the one hand, and MLV, on the
other hand, has been or will be created in respect of any of the transactions contemplated by this
Agreement, irrespective of whether or not MLV has advised or is advising the Company on other
matters, and MLV has no obligation to the Company with respect to the transactions contemplated by
this Agreement except the obligations expressly set forth in this Agreement;

          (b) it is capable of evaluating and understanding, and understands and accepts, the terms,
risks and conditions of the transactions contemplated by this Agreement;

          (c) MLV has not provided any legal, accounting, regulatory or tax advice with respect to the
transactions contemplated by this Agreement and it has consulted its own legal, accounting,
regulatory and tax advisors to the extent it has deemed appropriate;

          (d) it is aware that MLV and its affiliates are engaged in a broad range of transactions which
may involve interests that differ from those of the Company and MLV has no obligation to disclose
such interests and transactions to the Company by virtue of any fiduciary, advisory or agency
relationship or otherwise; and

33

 

          (e) it waives, to the fullest extent permitted by law, any claims it may have against MLV for
breach of fiduciary duty or alleged breach of fiduciary duty in connection with the sale of Shares
under this Agreement and agrees that MLV shall not have any liability (whether direct or indirect,
in contract, tort or otherwise) to it in respect of such a fiduciary duty claim, other than in
respect of MLV’s obligations under this Agreement and to keep information provided to MLV or its
counsel by the Company confidential to the extent not otherwise publicly-available.

     25. Definitions. As used in this Agreement, the following terms have the respective
meanings set forth below:

     “Applicable Time” means the time of each sale of any Placement Shares pursuant to this
Agreement.

     “Rule 163,” “Rule 164,” “Rule 172,” “Rule 405,” “Rule
415,” “Rule 424,” “Rule 424(b),” “Rule 430B,” and “Rule 433”
refer to such rules under the Securities Act Regulations.

     All references in this Agreement to financial statements and schedules and other information
that is “contained,” “included” or “stated” in the Registration Statement or the Prospectus (and
all other references of like import) shall be deemed to mean and include all such financial
statements and schedules and other information that is incorporated by reference in the
Registration Statement or the Prospectus, as the case may be.

     All references in this Agreement to the Registration Statement, the Prospectus or any
amendment or supplement to any of the foregoing shall be deemed to include the copy filed with the
Commission pursuant to EDGAR; and all references in this Agreement to any Issuer Free Writing
Prospectus (other than any Issuer Free Writing Prospectuses that, pursuant to Rule 433, are not
required to be filed with the Commission) shall be deemed to include the copy thereof filed with
the Commission pursuant to EDGAR.

[remainder of page left intentionally blank]

34

 

     If the foregoing correctly sets forth the understanding between the Company and MLV,
please so indicate in the space provided below for that purpose, whereupon this letter shall
constitute a binding agreement between the Company and MLV.

	 	 	 	 	 
	 	Very truly yours,

OXiGENE, Inc.

 	 
	 	By:  	/s/ Peter Langecker
 	 
	 	 	Name:  	Peter Langecker 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

ACCEPTED as of the date first-above written:

	 	 	 	 	 
	McNICOLL, LEWIS & VLAK LLC

 	 	 
	By:  	/s/ Patrice McNicoll
 	 	 
	 	Name:  	Patrice McNicoll 	 	 
	 	Title:  	President 	 	 

35

 

	 	 	 	 	 

SCHEDULE 1

 

FORM OF PLACEMENT NOTICE

 

	 	 	 

	From:

	 	OXiGENE, Inc.
	 
	 	 
	To:

	 	McNicoll, Lewis & Vlak LLC

Attention: Patrice McNicoll
	 
	 	 
	Subject:

	 	At Market Issuance—Placement Notice
	 
	 	 
	Gentlemen:
	 	 

Pursuant to the terms and subject to the conditions contained in the At Market Issuance Sales
Agreement between OXiGENE, Inc., a Delaware corporation (the “Company”), and McNicoll,
Lewis & Vlak LLC, a Delaware limited liability company (“MLV”), dated July 21, 2010, the
Company hereby requests that MLV sell up to
                
                
         shares of the Company’s common stock, par
value $0.01 per share, at a minimum market price of
$                     per share, during the time period
beginning [month, day, time] and ending [month, day, time]. After giving effect to such sales, the
amount of Shares sold under the Agreement will not exceed the Maximum Amount.

Sched. 1-1

 

SCHEDULE 2

 

COMPENSATION

 

The Company shall pay to MLV in cash, upon each sale of Shares pursuant to this Agreement, an
amount up to 7.0% of the gross proceeds from each sale of Shares, as detailed through various side
letter agreements mutually agreed upon by the Company and MLV from time to time.

Sched. 2-1

 

SCHEDULE 3

	 	 	 

	Company
	 	 
	 
	 	 
	Peter Langecker

	 	[  ]
	 
	 	 
	James Murphy

	 	[  ]
	 
	 	 
	MLV
	 	 
	 
	 	 
	Patrice McNicoll

	 	[  ]
	 
	 	 
	Dean Colucci

	 	[  ]

Sched. 3-1

 

SCHEDULE 4

Free Writing Prospectuses

[none]

Sched. 4-1

 

EXHIBIT 7(l)

FORM OF REPRESENTATION DATE CERTIFICATE

     This Officers Certificate (this “Certificate”) is executed and delivered in connection
with Section 7(l) of the At Market Issuance Sales Agreement (the “Agreement”), dated July
21, 2010 and entered into between OXiGENE, Inc. (the “Company”) and McNicoll, Lewis & Vlak
LLC. All capitalized terms used but not defined herein shall have the meanings given to such terms
in the Agreement.

     The undersigned, a duly appointed and authorized officer of the Company, having made all
necessary inquiries to establish the accuracy of the statements below and having been authorized by
the Company to execute this certificate, hereby certifies as follows, in his capacity as an officer
of the Company:

     1. As of the date of this Certificate, (i) the Registration Statement does not contain any
untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary in order to make the statements therein not misleading and (ii) neither the
Registration Statement nor the Prospectus contain any untrue statement of a material fact or omit
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 and (iii) no
event has occurred as a result of which it is necessary to amend or supplement the Prospectus in
order to make the statements therein not untrue or misleading.

     2. Each of the representations and warranties of the Company contained in the Agreement were,
when originally made, and are, as of the date of this Certificate, true and correct in all material
respects.

     3. Each of the covenants required to be performed by the Company in the Agreement on or prior
to the date of the Agreement, this Representation Date, and each such other date as set forth in
the Agreement, has been performed in all material respects and each condition required to be
complied with by the Company on or prior to the date of the Agreement, this Representation Date,
and each such other date as set forth in the Agreement or in the Waivers has been complied with in
all material respects.

     4. Subsequent to the date of the most recent financial statements in the Prospectus, there has
been no Material Adverse Effect.

     5. No stop order suspending the effectiveness of the Registration Statement or of any part
thereof has been issued, and no proceedings for that purpose have been instituted or are pending or
threatened by any securities or other governmental authority (including, without limitation, the
Commission).

     6. No order suspending the effectiveness of the Registration Statement or the qualification or
registration of the Shares under the securities or Blue Sky laws of any jurisdiction are in effect
and no proceeding for such purpose is pending before, or threatened, to the Company’s knowledge or
in writing by, any securities or other governmental authority (including, without limitation, the
Commission).

Exh. 7(l)-1

 

     The undersigned has executed this Officer’s Certificate as of the date first written above.

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Peter Langecker
 	 
	 	 	Name:  	Peter Langecker 	 
	 	 	Title:  	Chief Executive Officer 	 

Exh. 7(l)-2

 

	 	 	 	 	 

EXHIBIT 7(m)

FORM OF LEGAL OPINION

     Capitalized terms used and not defined herein shall have the meanings ascribed to them in the
At Market Issuance Sales Agreement.

     1. The authorized capital stock of the Company conforms in all material respects as to legal
matters to the descriptions thereof set forth in the Registration Statement, Prospectus and the
Prospectus Supplement. The Shares have been duly authorized and, when issued and delivered pursuant
to the terms of the Agreement, will be validly issued, fully paid and non-assessable; and will not
have been issued in violation of any preemptive rights granted under the Company’s Certificate of
Incorporation or under the corporate laws of the State of Delaware.

     7. The Company is a validly existing corporation in good standing under the laws of the State
of Delaware, the jurisdiction of its organization. The Company has the corporate power to execute
and deliver the Agreement and to issue, sell and deliver the Shares.

     8. The execution and delivery of the Agreement by the Company and the performance by the
Company of its obligations under the Agreement have been duly authorized by all requisite corporate
action on behalf of the Company. The Agreement has been duly executed and delivered by the Company
and constitutes the legal, valid and binding obligation of the Company, enforceable against the
Company in accordance with its terms.

     9. The sale and issuance by the Company of the Shares has been duly authorized by all
requisite corporate action on behalf of the Company.

     10. The Registration Statement, Prospectus and the Prospectus Supplement (other than the
financial statements and schedules and other financial, statistical or accounting data derived from
such financial statements and included or incorporated by reference therein, as to which we express
no opinion), as of their respective effective and issue dates, complied as to form in all material
respects with the requirements of the Securities Act and the rules and regulations thereunder.

     11. The Company has the requisite corporate power to own, lease and operate its property and
assets, to conduct its business as described in the Registration Statement, except where the
failure to have such power would not have, singularly or in the aggregate, a Material Adverse
Effect.

     12. The holders of outstanding shares of capital stock of the Company are not entitled to
preemptive rights under the Company’s Certificate of Incorporation or Bylaws, or, to our knowledge,
rights of first refusal or other similar rights to subscribe for the Shares (other than rights
which have been waived in writing or otherwise satisfied).

     13. The execution and delivery of the Agreement and the issuance of the Shares pursuant
thereto do not (i) violate any provision of the Company’s Certificate of Incorporation or Bylaws;
(ii) constitute a default under or a material breach of any agreement filed as an exhibit to the
Registration Statement or incorporated by reference therein; or (iii) violate (a) any

Exh. 7(m)-1

 

governmental statute, rule or regulation that in our experience is customarily applicable to
transactions of the nature contemplated by the Agreement or (b) any order, writ, judgment,
injunction, decree, determination or award which has been entered against the Company and of which
we are aware, except in the cases of (ii) and (iii) where such default, breach or violation would
not have, singularly or in the aggregate, a Material Adverse Effect.

     14. To our knowledge, there is (i) no legal or governmental proceeding pending, or proceedings
contemplated by government authorities, to which the Company is a party or of which any property or
asset of the Company is subject of a character required by Item 103 of Regulation S-K to be
disclosed in the Registration Statement or the Prospectus Supplement that is not disclosed or
incorporated by reference therein, and (ii) no indenture, contract, lease, mortgage, deed of trust,
note agreement, loan or other agreement or instrument of a character required to be filed as an
exhibit to the Registration Statement, which is not filed as required by the Securities Act and the
rules thereunder.

     15. No consent, approval, authorization or filing with or order of any U.S. Federal or State
court or governmental agency or body having jurisdiction over the Company is required for the
consummation by the Company of the transactions contemplated by the Agreement, except such as have
been obtained under the Securities Act and except such as may be required under the securities or
blue sky laws of any jurisdiction in connection with the purchase and distribution of the Shares by
you in the manner contemplated in the Agreement or under the bylaws, rules and regulations of
FINRA.

     16. The Company is not, and, after giving effect to the offering and sale of the Shares and
the application of the proceeds thereof as described in the Prospectus, will not be, an “investment
company” as defined in the Investment Company Act of 1940, as amended.

     The Registration Statement was declared effective under the Securities Act and no stop order
suspending the effectiveness of the Registration Statement has been issued and, to our knowledge,
no proceedings for that purpose have been instituted or overtly threatened by the Commission. Any
required filing of the Prospectus pursuant to Rule 424(b) under the Securities Act has been made in
the manner and within the time period required by Rule 424(b).

     The opinion of counsel will be accompanied by a standard Rule 10b-5 negative assurance letter.

Exh. 7(m)-2

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