Document:

exv4w3

 

Exhibit 4.3

NEITHER THIS WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY OTHER APPLICABLE SECURITIES
LAWS IN RELIANCE UPON THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
PROVIDED BY REGULATION D AND SUCH OTHER SECURITIES LAWS. NEITHER THIS WARRANT NOR THE SHARES
ISSUABLE UPON EXERCISE HEREOF MAY BE SOLD, PLEDGED, TRANSFERRED, ENCUMBERED OR OTHERWISE DISPOSED
OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR IN A
TRANSACTION WHICH IS EXEMPT FROM REGISTRATION UNDER THE PROVISIONS OF THE SECURITIES ACT.

STOCK PURCHASE WARRANT

To Purchase 500,000 Shares of Common Stock of

LJ INTERNATIONAL INC.

     THIS CERTIFIES that, for value received, Hong Kong Capital Advisors Limited (the “Holder”) is
entitled, upon the terms and subject to the conditions hereinafter set forth, at any time on or
after April 5, 2005 (the “Initial Exercise Date”) and on or prior to the close of business on April
4, 2008 (the “Termination Date”) but not thereafter, to subscribe for and purchase from LJ
International Inc., a company duly incorporated and validly existing under the laws of the British
Virgin Islands (the “Company”), up to an aggregate of Five Hundred Thousand (500,000) shares (the
“Warrant Shares”) of common stock, $0.01 par value, of the Company (the “Common Stock”). The
purchase price of one share of Common Stock (the “Exercise Price”) under this Warrant shall be as
follows:

	 	 	 
	No. of Warrants	 	Exercise Price
	  50,000
	 	$2.80 per Warrant
	150,000
	 	$3.00 per Warrant
	150,000
	 	$3.50 per Warrant
	100,000
	 	$4.00 per Warrant
	  50,000
	 	$4.50 per Warrant

The Exercise Price and the number of shares for which the Warrant is exercisable shall be subject
to adjustment as provided herein.

     1. Title to Warrant. This Warrant and all rights hereunder are not transferable, in
whole or in part, by the Holder.

     2. Authorization of Shares. The Company covenants that all shares of Common
Stock which may be issued upon the exercise of rights represented by this Warrant will, upon
exercise of the rights represented by this Warrant, be duly authorized, validly issued, fully paid

 

 

and nonassessable and free from all taxes, liens and charges in respect of the issue thereof
(other than taxes in respect of any transfer occurring contemporaneously with such issue).

     3. Exercise of Warrant; Registration Rights.

        (a) Except as provided in Section 4 herein, exercise of the purchase rights represented by
this Warrant may be made at any time or times on or after the Initial Exercise Date and before the
close of business on the Termination Date by the surrender of this Warrant and the Notice of
Exercise Form annexed hereto duly executed, at the office of the Company (or such other office or
agency of the Company as it may designate by notice in writing to the Holder at the address of
Holder appearing on the books of the Company). Upon payment of the Exercise Price of the shares
thereby purchased by wire transfer or cashier’s check drawn on a United States bank, the Holder
shall be entitled to receive a certificate for the number of shares of Common Stock so purchased.
Certificates for shares purchased hereunder shall be delivered to the Holder as soon as practicable
after the date on which this Warrant shall have been exercised as aforesaid. This Warrant shall be
deemed to have been exercised and such certificate or certificates shall be deemed to have been
issued, and Holder or any other person so designated to be named therein shall be deemed to have
become a holder of record of such shares for all purposes, as of the date the Warrant has been
exercised by payment to the Company of the Exercise Price and all taxes required to be paid by
Holder, if any, pursuant to Section 5 prior to the issuance of such shares, have been paid. If
this Warrant shall have been exercised in part, the Company shall, at the time of delivery of the
certificate or certificates representing Warrant Shares, deliver to Holder a new Warrant evidencing
the rights of Holder to purchase the unpurchased shares of Common Stock called for by this Warrant,
which new Warrant shall in all other respects be identical with this Warrant.

            This Warrant may also be exercised by means of a “cashless exercise” in which the Holder shall
be entitled to receive a certificate for the number of shares equal to the quotient obtained by
dividing [(A-B) (X)] by (A), where:

(A) = the last sales price per share of Common Stock on the Trading Day preceding the date of such
election;

(B) = the Exercise Price of the Warrants; and

(X) = the number of shares issuable upon exercise of the Warrants in accordance with the terms of
this Warrant.

        (b) The Company agrees to include the shares of Common Stock issuable upon exercise of
this Warrant in any new registration statement filed by the Company after the issuance date hereof,
which registration statement is on a form which permits the registration of shares for resale by
selling stockholders, so as to permit the resale of such shares by the Holder. The Company will
notify the Holder of the effectiveness of any such registration statement
promptly after such event, and shall provide the Holder with copies of a final prospectus to
be

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used in connection with any resales of shares. In addition, the Company agrees to use its best
efforts to file a registration statement covering the sale of the shares of Common Stock issuable
upon exercise of this Warrant within six (6) months from the date hereof and to use its best
efforts to obtain the effectiveness of the registration statement and to maintain the prospectus
included in the registration statement for a period of time, not exceeding nine (9) months, as may
be necessary to effect the sale of the Common Stock. The Holder understands that the Company will
prepare, file and maintain the registration statement at the cost and expense of the Company
(except for the fees and expenses of counsel to the Holder). The Holder also confirms that there
is no assurance or guarantee that the registration statement covering the Common Stock will be
declared effective by the Securities and Exchange Commission.

     4. No Fractional Shares or Scrip. No fractional shares or scrip representing
fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of a share
which Holder would otherwise be entitled to purchase upon such exercise, the Company shall pay a
cash adjustment in respect of such final fraction in an amount equal to the Exercise Price.

     5. Charges, Taxes and Expenses. Issuance of certificates for shares of Common Stock
upon the exercise of this Warrant shall be made without charge to the Holder for any issue or
transfer tax or other incidental expense in respect of the issuance of such certificate, all of
which taxes and expenses shall be paid by the Company, and such certificates shall be issued in the
name of the Holder or in such name or names as may be directed by the Holder; provided, however,
that in the event certificates for shares of Common Stock are to be issued in a name other than the
name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the
Assignment Form attached hereto duly executed by the Holder; and the Company may require, as a
condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental
thereto.

     6. Closing of Books. The Company will not close its shareholder books or records in
any manner which prevents the timely exercise of this Warrant.

     7. Division and Combination.

        (a) This Warrant may be divided or combined with other Warrants upon presentation at the
aforesaid office of the Company, together with a written notice specifying the denominations in
which new Warrants are to be issued, signed by Holder or its agent or attorney. The Company shall
execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided
or combined in accordance with such notice.

        (b) The Company shall prepare, issue and deliver at its own expense (other than transfer
taxes) the new Warrant or Warrants under this Section 7.

        (c) The Company agrees to maintain, at its aforesaid office, books for the registration of the
Warrants.

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     8. No Rights as Shareholder until Exercise. This Warrant does not entitle the Holder
to any voting rights or other rights as a shareholder of the Company prior to the exercise hereof.
Upon the surrender of this Warrant and the payment of the aggregate Exercise Price, the Warrant
Shares so purchased shall be and be deemed to be issued to Holder as the record owner of such
shares as of the close of business on the later of the date of such surrender or payment.

     9. Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon
receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or
mutilation of this Warrant certificate or any stock certificate relating to the Warrant Shares, and
in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it and
its transfer agent, and upon surrender and cancellation of such Warrant or stock certificate, if
mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and
dated as of such cancellation, in lieu of such Warrant or stock certificate.

     10. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall be a Saturday, Sunday or
a legal holiday, then such action may be taken or such right may be exercised on the next
succeeding day not a Saturday, Sunday or legal holiday.

     11. Adjustments of Exercise Price and Number of Warrant Shares. (a) Stock
Splits, etc. The number and kind of securities purchasable upon the exercise of this Warrant
and the Exercise Price shall be subject to adjustment from time to time upon the happening of any
of the following. In case the Company shall (i) pay a dividend in shares of Common Stock or make a
distribution in shares of Common Stock to holders of its outstanding Common Stock, (ii) subdivide
its outstanding shares of Common Stock into a greater number of shares of Common Stock, (iii)
combine its outstanding shares of Common Stock into a smaller number of shares of Common Stock or
(iv) issue any shares of its capital stock in a reclassification of the Common Stock, then the
number of Warrant Shares purchasable upon exercise of this Warrant immediately prior thereto shall
be adjusted so that the Holder shall be entitled to receive the kind and number of Warrant Shares
or other securities of the Company which he would have owned or have been entitled to receive had
such Warrant been exercised in advance thereof. Upon each such adjustment of the kind and number
of Warrant Shares or other securities of the Company which are purchasable hereunder, the Holder
shall thereafter be entitled to purchase the number of Warrant Shares or other securities resulting
from such adjustment at an Exercise Price per Warrant Share or other security obtained by
multiplying the Exercise Price in effect immediately prior to such adjustment by the number of
Warrant Shares purchasable pursuant hereto immediately prior to such adjustment and dividing by the
number of Warrant Shares or other securities of the Company resulting from such adjustment. An
adjustment made pursuant to this
paragraph shall become effective immediately after the effective date of such event
retroactive to the record date, if any, for such event.

        (b) Reorganization, Reclassification, Merger, Consolidation or Disposition of Assets.
In case the Company shall reorganize its capital, reclassify its capital stock, consolidate

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or
merge with or into another corporation (where the Company is not the surviving corporation or where
there is a change in or distribution with respect to the Common Stock of the Company), or sell,
transfer or otherwise dispose of all or substantially all its property, assets or business to
another corporation and, pursuant to the terms of such reorganization, reclassification, merger,
consolidation or disposition of assets, shares of common stock of the successor or acquiring
corporation, or any cash, shares of stock or other securities or property of any nature whatsoever
(including warrants or other subscription or purchase rights) in addition to or in lieu of common
stock of the successor or acquiring corporation (“Other Property”), are to be received by or
distributed to the holders of Common Stock of the Company, then Holder shall have the right
thereafter to receive, upon exercise of this Warrant, the number of shares of common stock of the
successor or acquiring corporation or of the Company, if it is the surviving corporation, and Other
Property receivable upon or as a result of such reorganization, reclassification, merger,
consolidation or disposition of assets by a holder of the number of shares of Common Stock for
which this Warrant is exercisable immediately prior to such event. In case of any such
reorganization, reclassification, merger, consolidation or disposition of assets, the successor or
acquiring corporation (if other than the Company) shall expressly assume the due and punctual
observance and performance of each and every covenant and condition of this Warrant to be performed
and observed by the Company and all the obligations and liabilities hereunder, subject to such
modifications as may be deemed appropriate (as determined in good faith by resolution of the Board
of Directors of the Company) in order to provide for adjustments of shares of Common Stock for
which this Warrant is exercisable which shall be as nearly equivalent as practicable to the
adjustments provided for in this Section 11. For purposes of this Section 11, “common stock of the
successor or acquiring corporation” shall include stock of such corporation of any class which is
not preferred as to dividends or assets over any other class of stock of such corporation and which
is not subject to redemption and shall also include any evidences of indebtedness, shares of stock
or other securities which are convertible into or exchangeable for any such stock, either
immediately or upon the arrival of a specified date or the happening of a specified event and any
warrants or other rights to subscribe for or purchase any such stock. The foregoing provisions of
this Section 11 shall similarly apply to successive reorganizations, reclassifications, mergers,
consolidations or disposition of assets.

     12. Voluntary Adjustment by the Company. The Company may at any time during the term
of this Warrant reduce the then current Exercise Price to any amount and for any period of time
deemed appropriate by the Board of Directors of the Company.

     13. Notice of Adjustment. Whenever the number of Warrant Shares or number or
kind of securities or other property purchasable upon the exercise of this Warrant or the Exercise
Price is adjusted, as herein provided, the Company shall promptly mail by registered or certified
mail, return receipt requested, to the Holder notice of such adjustment or adjustments setting
forth the number of Warrant Shares (and other securities or property) purchasable upon the exercise
of this Warrant and the Exercise Price of such Warrant Shares (and other securities or property)
after such adjustment, setting forth a brief statement of the facts requiring such adjustment and
setting forth the computation by which such adjustment was made. Such notice,

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in the absence of
manifest error, shall be conclusive evidence of the correctness of such adjustment.

     14. Notice of Corporate Action. If at any time:

        (a) the Company shall take a record of the holders of its Common Stock for the purpose of
entitling them to receive a dividend or other distribution, or any right to subscribe for or
purchase any evidences of its indebtedness, any shares of stock of any class or any other
securities or property, or to receive any other right, or

        (b) there shall be any capital reorganization of the Company, any reclassification or
recapitalization of the capital stock of the Company or any consolidation or merger of the Company
with, or any sale, transfer or other disposition of all or substantially all the property, assets
or business of the Company to, another corporation or,

        (c) there shall be a voluntary or involuntary dissolution, liquidation or winding up of the
Company;

then, in any one or more of such cases, the Company shall give to Holder (i) at least 10 days’
prior written notice of the date on which a record date shall be selected for such dividend,
distribution or right or for determining rights to vote in respect of any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition, liquidation or winding up,
and (ii) in the case of any such reorganization, reclassification, merger, consolidation, sale,
transfer, disposition, dissolution, liquidation or winding up, at least 10 days’ prior written
notice of the date when the same shall take place. Such notice in accordance with the foregoing
clause also shall specify (i) the date on which any such record is to be taken for the purpose of
such dividend, distribution or right, the date on which the holders of Common Stock shall be
entitled to any such dividend, distribution or right, and the amount and character thereof, and
(ii) the date on which any such reorganization, reclassification, merger, consolidation, sale,
transfer, disposition, dissolution, liquidation or winding up is to take place and the time, if any
such time is to be fixed, as of which the holders of Common Stock shall be entitled to exchange
their shares of Common Stock for securities or other property deliverable upon such disposition,
dissolution, liquidation or winding up. Each such written notice shall be sufficiently given if
addressed to Holder at the last address of Holder appearing on the books of the Company and
delivered in accordance with Section 16(d).

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     15. Authorized Shares. The Company covenants that during the period the Warrant is
exercisable, it will reserve from its authorized and unissued Common Stock a sufficient number of
shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights
under this Warrant. The Company further covenants that its issuance of this Warrant shall
constitute full authority to its officers who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for the Warrant Shares upon the
exercise of the purchase rights under this Warrant. The Company will take all such reasonable
action as may be necessary to assure that such Warrant Shares may be issued as provided herein
without violation of any applicable law or regulation, or of any requirements of the Nasdaq Stock
Market.

        The Company shall not by any action, including, without limitation, amending its memorandum of
association or articles of association or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will
at all times in good faith assist in the carrying out of all such terms and in the taking of all
such actions as may be necessary or appropriate to protect the rights of Holder against impairment.
Without limiting the generality of the foregoing, the Company will (a) not increase the par value
of any shares of Common Stock receivable upon the exercise of this Warrant above the amount payable
therefor upon such exercise immediately prior to such increase in par value, (b) take all such
action as may be necessary or appropriate in order that the Company may validly and legally issue
fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant, and (c) use
its best efforts to obtain all such authorizations, exemptions or consents from any public
regulatory body having jurisdiction thereof as may be necessary to enable the Company to perform
its obligations under this Warrant.

        Upon the request of Holder, the Company will at any time during the period this Warrant is
exercisable acknowledge in writing, in form reasonably satisfactory to Holder, the continuing
validity of this Warrant and the obligations of the Company hereunder.

        Before taking any action which would cause an adjustment reducing the current Exercise Price
below the then par value, if any, of the shares of Common Stock issuable upon exercise of the
Warrants, the Company shall take any corporate action which may be necessary in order that the
Company may validly and legally issue fully paid and non-assessable shares of such Common Stock at
such adjusted Exercise Price.

        Before taking any action which would result in an adjustment in the number of shares of Common
Stock for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all
such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public
regulatory body or bodies having jurisdiction thereof.

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     16. Miscellaneous.

        (a) Jurisdiction. This Warrant shall be binding upon any successors or assigns of the
Company. This Warrant shall constitute a contract under the laws of the British Virgin Islands,
without regard to its conflict of law, principles or rules.

        (b) Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the
exercise of this Warrant, if not registered, will have restrictions upon resale by state and
federal securities laws.

        (c) Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise
any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise
prejudice Holder’s rights, powers or remedies, notwithstanding all rights hereunder terminate on
the Termination Date. If the Company fails to comply with any provision of this Warrant, the
Company shall pay to Holder such amounts as shall be sufficient to cover any costs and expenses
including, but not limited to, reasonable attorneys’ fees, including those of appellate
proceedings, incurred by Holder in collecting any amounts due pursuant hereto or in otherwise
enforcing any of its rights, powers or remedies hereunder if Holder is the prevailing party.

        (d) Notices. All notices, demands, requests, consents, approvals, and other
communications required or permitted hereunder shall be in writing and, unless otherwise specified
herein, shall be (i) hand delivered, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges
prepaid, or (iv) transmitted by facsimile, addressed as set forth below or to such other address as
such party shall have specified most recently by written notice. Any notice or other communication
required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or
delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine,
at the address or number designated below (if delivered on a business day during normal business
hours where such notice is to be received), or the first business day following such delivery (if
delivered other than on a business day during normal business hours where such notice is to be
received) or (b) on the first business day following the date of sending by reputable courier
service, fully prepaid, addressed to such address, or (c) upon actual receipt of such mailing, if
mailed. The addresses for such communications shall be:

	 	 	 
	If to the Company:

	 	LJ International Inc.
	

	 	Unit #12, 12/F, Block A
	

	 	Focal Industrial Centre
	

	 	21 Man Lok Street
	

	 	Hung Hom, Kowloon, Hong Kong
	

	 	Attention: Chairman
	

	 	Telephone: 011-852-2764-3622
	

	 	Facsimile: 011-852-2764-3783
	with a copy to (shall not

	 	Andrew N. Bernstein, P.C.

-8-

 

	 	 	 
	constitute notice):

	 	5445 DTC Parkway, Suite 520
	

	 	Greenwood Village, CO 80111
	

	 	Attention: Andrew N. Bernstein, Esq.
	

	 	Telephone: (303) 770-7131
	

	 	Facsimile: (303) 770-7332
	 
	 	 
	if to Holder:

	 	Hong Kong Capital Advisors Limited
	

	 	8/F, Henley Building, 5 Queen’s Road
	

	 	Central, Hong Kong
	

	 	Attention: Kishore Sakrani
	

	 	Telephone: 011-852-2854-4544
	

	 	Facsimile: 011-852-2543-5555

Either party hereto may from time to time change its address or facsimile number for notices under
this Section 16(d) by giving written notice of such changed address or facsimile number to the
other party hereto as provided in this Section 16(d).

        (e) Limitation of Liability. No provision hereof, in the absence of affirmative
action by Holder to purchase shares of Common Stock, and no enumeration herein of the rights or
privileges of Holder hereof, shall give rise to any liability of Holder for the purchase price of
any Common Stock or as a stockholder of the Company, whether such liability is asserted by the
Company or by creditors of the Company.

        (f) Remedies. Holder, in addition to being entitled to exercise all rights granted by
law, including recovery of damages, will be entitled to specific performance of its rights under
this Warrant. The Company agrees that monetary damages would not be adequate compensation for any
loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to
waive the defense in any action for specific performance that a remedy at law would be adequate.

        (g) Successors and Assigns. Subject to applicable securities laws, this Warrant and
the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the
successors of the Company and the successors and permitted assigns of Holder. The provisions of
this Warrant are intended to be for the benefit of the Holder from time to time of this Warrant and
shall be enforceable by the Holder.

        (h) Indemnification. The Company agrees to indemnify and hold harmless Holder
from and against any liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, claims, costs, attorneys’ fees, expenses and disbursements of any kind which may be imposed
upon, incurred by or asserted against Holder in any manner relating to or arising out of any
failure by the Company to perform or observe in any material respect any of its covenants,
agreements, undertakings or obligations set forth in this Warrant; provided,
however,
that the Company will not be liable hereunder to the extent that any liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, claims, costs, attorneys’ fees, expenses or

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disbursements are found in a final non-appealable judgment by a court to have resulted from
Holder’s negligence, bad faith or willful misconduct in its capacity as a stockholder or
warrantholder of the Company.

        (i) Amendment. This Warrant may be modified or amended or the provisions hereof
waived only with the written consent of the Company and the Holder.

        (j) Severability. Wherever possible, each provision of this Warrant shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provisions or the remaining provisions of this Warrant.

        (k) Headings. The headings used in this Warrant are for the convenience of reference
only and shall not, for any purpose, be deemed a part of this Warrant.

     IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer
thereunto duly authorized.

Dated: April 5, 2005

	 	 	 	 	 
	 	 	LJ INTERNATIONAL INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	Yu Chuan Yih,
	

	 	 	 	Chairman

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NOTICE OF EXERCISE

TO: LJ International Inc.

     (1) The
undersigned hereby elects to purchase ___ Warrant Shares of the Company pursuant
to the terms of the attached Warrant, and tenders herewith payment of the exercise price in full,
together with all applicable transfer taxes, if any.

     (2) Payment shall take the form of (check applicable box):

o in lawful money of the United States in the amount of
$______; or

o the cancellation of ______Warrant Shares, in accordance
with the formula set forth in subsection 3(a), to exercise this Warrant with
respect to the number of Warrant Shares set forth above purchasable pursuant to
the cashless exercise procedure set forth in subsection 3(a).

     (3) Please issue a certificate or certificates representing said Warrant Shares in the name of
the undersigned or in such other name as is specified below:

 

Social Security or Taxpayer Identification Number

The Warrant Shares shall be delivered to the following:

 

 

	 	 	 	 	 	 
	 	 	HONG KONG CAPITAL ADVISORS LIMITED
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Name:
	

	 	 	 	Title:
	 
	 	 	 	 
	

	 	Dated:	 	 
	

	 	 	 	 

-11-exv10w58

 

EXHIBIT 10.58

SOLEXA, INC.

SECURITIES PURCHASE AGREEMENT

APRIL 21, 2005

 

 

Table Of Contents

	 	 	 	 	 	 	 
	 
	 	 
	 	 	Page	 
	ARTICLE 1

	 	AUTHORIZATION AND SALE OF COMMON SHARES AND WARRANTS
	 	 	1	 
	1.1

	 	Authorization
	 	 	1	 
	ARTICLE 2

	 	CLOSING DATES; DELIVERY
	 	 	2	 
	2.1

	 	Closing Dates. Delivery
	 	 	2	 
	ARTICLE 3

	 	REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	 	 	3	 
	3.1

	 	Organization and Standing
	 	 	3	 
	3.2

	 	Corporate Power; Authorization
	 	 	3	 
	3.3

	 	Issuance and Delivery of the Shares
	 	 	4	 
	3.4

	 	SEC Documents; Financial Statements
	 	 	4	 
	3.5

	 	Governmental Consents
	 	 	4	 
	3.6

	 	No Material Adverse Change
	 	 	4	 
	3.7

	 	Authorized Capital Stock
	 	 	5	 
	3.8

	 	Litigation
	 	 	5	 
	3.9

	 	Eligibility to Use Form S-3
	 	 	5	 
	3.10

	 	Company not an “Investment Company.”
	 	 	5	 
	3.11

	 	NASDAQ Compliance
	 	 	5	 
	3.12

	 	Use of Proceeds
	 	 	5	 
	3.13

	 	Brokers and Finders
	 	 	5	 
	3.14

	 	No Directed Selling Efforts or General Solicitation
	 	 	6	 
	3.15

	 	No Integrated Offering
	 	 	6	 
	3.16

	 	Private Placement
	 	 	6	 
	3.17

	 	Internal Accounting Controls
	 	 	6	 
	3.18

	 	Intellectual Property
	 	 	6	 
	3.19

	 	Questionable Payments
	 	 	7	 
	3.20

	 	Transactions with Affiliates
	 	 	7	 
	3.21

	 	Disclosure
	 	 	7	 
	3.22

	 	Dilution; Sales By Purchasers
	 	 	7	 
	ARTICLE 4

	 	REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PURCHASERS
	 	 	8	 
	4.1

	 	Authorization
	 	 	8	 

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Table Of Contents

(CONTINUED)

	 	 	 	 	 	 	 
	 
	 	 
	 	 	Page	 
	4.2

	 	Investment Experience
	 	 	8	 
	4.3

	 	Investment Intent
	 	 	8	 
	4.4

	 	Registration or Exemption Requirements
	 	 	9	 
	4.5

	 	Dispositions
	 	 	9	 
	4.6

	 	No Legal, Tax or Investment Advice
	 	 	9	 
	4.7

	 	Confidentiality
	 	 	9	 
	4.8

	 	Residency
	 	 	9	 
	4.9

	 	Governmental Review
	 	 	9	 
	4.10

	 	Legend
	 	 	10	 
	4.11

	 	Foreign Investors
	 	 	11	 
	ARTICLE 5

	 	CONDITIONS TO CLOSING OBLIGATIONS OF PURCHASERS
	 	 	11	 
	5.1

	 	Representations and Warranties
	 	 	11	 
	5.2

	 	Covenants
	 	 	11	 
	5.3

	 	Certificates
	 	 	11	 
	5.4

	 	Legal Opinion
	 	 	12	 
	5.5

	 	Amended and Restated Company Support Agreement
	 	 	12	 
	5.6

	 	Listing
	 	 	12	 
	5.7

	 	Officer’s Certificate
	 	 	12	 
	5.8

	 	Judgments
	 	 	12	 
	5.9

	 	Secretary’s Certificate
	 	 	12	 
	5.10

	 	Stop Orders
	 	 	12	 
	5.11

	 	Stockholder Approval
	 	 	12	 
	5.12

	 	Minimum Investment
	 	 	12	 
	ARTICLE 6

	 	CONDITIONS TO CLOSING OBLIGATIONS OF COMPANY
	 	 	13	 
	6.1

	 	Receipt of Payment
	 	 	13	 
	6.2

	 	Representations and Warranties
	 	 	13	 
	6.3

	 	Covenants
	 	 	13	 
	6.4

	 	Delivery of Purchaser Questionnaire
	 	 	13	 
	ARTICLE 7

	 	COVENANTS
	 	 	13	 
	7.1

	 	Definitions
	 	 	13	 

-ii-

 

Table Of Contents

(CONTINUED)

	 	 	 	 	 	 	 
	 
	 	 
	 	 	Page	 
	7.2

	 	Registration Procedures and Expenses
	 	 	14	 
	7.3

	 	Indemnification
	 	 	16	 
	7.4

	 	Prospectus Delivery
	 	 	18	 
	7.5

	 	Termination of Obligations
	 	 	19	 
	7.6

	 	Reporting Requirements
	 	 	19	 
	7.7

	 	Blue Sky
	 	 	19	 
	7.8

	 	Stockholder Approval
	 	 	19	 
	7.9

	 	Publicity
	 	 	20	 
	ARTICLE 8

	 	RESTRICTIONS ON TRANSFERABILITY OF SECURITIES; COMPLIANCE WITH
SECURITIES ACT
	 	 	20	 
	8.1

	 	Restrictions on Transferability
	 	 	20	 
	8.2

	 	Instruction Sheet
	 	 	20	 
	8.3

	 	Transfer of Securities
	 	 	20	 
	8.4

	 	Purchaser Information
	 	 	21	 
	8.5

	 	Material Non-Public Information
	 	 	21	 
	ARTICLE 9

	 	MISCELLANEOUS
	 	 	21	 
	9.1

	 	Termination
	 	 	21	 
	9.2

	 	Waivers and Amendments
	 	 	21	 
	9.3

	 	Broker’s Fee
	 	 	22	 
	9.4

	 	Governing Law
	 	 	22	 
	9.5

	 	Survival
	 	 	22	 
	9.6

	 	Successors and Assigns
	 	 	22	 
	9.7

	 	Entire Agreement
	 	 	22	 
	9.8

	 	Notices, etc
	 	 	22	 
	9.9

	 	Severability of this Agreement
	 	 	22	 
	9.10

	 	Counterparts
	 	 	23	 
	9.11

	 	Further Assurances
	 	 	23	 
	9.12

	 	Currency
	 	 	23	 
	9.13

	 	Waiver of Conflicts
	 	 	23	 
	A.

	 	GENERAL INFORMATION
	 	 	1	 

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Table Of Contents

(CONTINUED)

	 	 	 	 	 	 	 
	 
	 	 
	 	 	Page	 
	B.

	 	SECURITIES HOLDINGS
	 	 	1	 
	C.

	 	NASD QUESTIONS
	 	 	5	 

Exhibit A – Form of
Warrant

Exhibit B – Form of Purchaser’s Questionnaire

Exhibit C – Form of Company Counsel Opinion

Exhibit D – Instruction Sheet

Exhibit E – Form of Purchaser’s Certificate of Subsequent Sale

Exhibit F – Form of Amended and Restated Company Support Agreement

-iv-

 

SOLEXA, INC.

SECURITIES PURCHASE AGREEMENT

     This Securities Purchase Agreement (this “Agreement”) is made as of April 21,
2005, by and among Solexa, Inc. , a Delaware corporation (the “Company”) with its
principal office at 25861 Industrial Boulevard, Hayward, California 94545, and the individuals and
entities identified on the signature pages hereto (the “Purchasers”).

RECITALS

     Whereas, the Company has authorized the sale and issuance of the Common Shares and
the Warrants (each as defined herein);

     Whereas, the Company and the Purchasers are executing and delivering this Agreement
in reliance upon the exemption from securities registration afforded by the provisions of
Regulation D, as promulgated by the SEC (as defined herein) under the Securities Act (as defined
herein);

     Whereas, at the First Closing (as defined herein), the Company desires to sell, and
each Purchaser desires severally, and not jointly, to purchase, the Shares and the Warrants, each
as indicated below such Purchaser’s name on the applicable signature page of this Agreement upon
the terms and conditions stated in this Agreement and at the Second Closing (as defined herein), if
Stockholder Approval (as defined herein) is obtained, each Purchaser hereto desires severally, and
not jointly, to purchase, the Shares and the Warrants, each as indicated below such Purchaser’s
name on the applicable signature page of this Agreement upon the terms and conditions stated in
this Agreement;

     Whereas, concurrent with the execution and delivery of this Agreement, as a material
inducement to the Purchasers to enter into this Agreement, certain principal stockholders of the
Company are entering into Amended and Restated Company Support Agreements, in the form attached
hereto as Exhibit G; and

     Now, Therefore, in consideration of the foregoing recitals and the mutual promises,
representations, warranties and covenants hereinafter set forth and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

ARTICLE 1

 Authorization and Sale of Common Shares and Warrants

     1.1 Authorization. The Company has authorized (a) the sale and issuance of up to eight
million one hundred twenty five thousand (8,125,000) shares (the “Common Shares”) of Company’s
common stock, par value $0.01 per share (the “Common Stock”) at a price per shares of four dollars
($4.00) and (b) the sale and issuance of warrants, in the form attached hereto as Exhibit A, and in
the case of SF Capital Partners Ltd., Exhibit A-1 (the “Warrants”),

1.

 

to purchase up to four million sixty two thousand five hundred two (4,062,502) shares of the
Common Stock, at a price per share of five dollars ($5.00) (the “Warrant Price”) pursuant to this
Agreement. The shares of Common Stock issuable upon exercise of or otherwise pursuant to the
Warrants are referred to herein as the “Warrant Shares.” The Common Shares and the Warrant Shares
are collectively referred to herein as the “Shares.” The Shares and the Warrants are collectively
referred to herein as the “Securities.”

               (a) First Closing. Subject to the terms and conditions of this Agreement, including without
limitation, the conditions set forth in Article 5 and Article 6 of this Agreement (excluding
Stockholder Approval in Section 7.8), there shall be a closing at which the Company shall issue and
sell, and each Purchaser, shall severally, and not jointly, purchase, the number of shares of
Common Stock and the number of Warrants, in each case, in the respective amounts indicated below
such Purchaser’s name on the applicable signature page of this Agreement, in exchange for the cash
consideration set forth as the “First Closing Purchase Price” indicated below such Purchaser’s name
on the signature page of this Agreement (the “First Closing”).

               (b) Second Closing. Subject to the terms and conditions of this Agreement, including without
limitation, the conditions set forth in Article 5 and Article 6 of this Agreement (including
Stockholder Approval in Section 7.8), at the Second Closing, there shall be a closing at which the
Company shall issue and sell, and each Purchaser, shall severally, and not jointly, purchase, the
number of shares of Common Stock and the number of Warrants, in each case, in the respective
amounts indicated below such Purchaser’s name on the signature page of this Agreement, in exchange
for the cash consideration set forth as the “Second Closing Purchase Price” indicated below such
Purchaser’s name on the applicable signature page of this Agreement (the “Second Closing”).

ARTICLE 2

 Closing Dates; Delivery

     2.1 Closing Dates. Delivery.

               (a) Location. The First Closing and Second Closing of the purchase and sale of the Common
Shares and Warrants hereunder (together, the “Closings”) shall be held at the offices of Cooley
Godward llp (“Cooley Godward”), 3175 Hanover Street, Palo Alto, California 94304, or at
such other location upon which the Company and the Purchasers purchasing a majority of the Common
Shares at the applicable Closing shall agree, on the applicable Closing Date.

               (b) First Closing. Subject to the satisfaction (or waiver) of the conditions thereto set
forth in Article 5 and Article 6 of this Agreement, on the date hereof or at such other time and
place upon which the Company and the Purchasers purchasing a majority of the Common Shares at the
First Closing shall agree, the Company will deliver or cause to be delivered to each Purchaser, a
duly executed Warrant and a certificate representing the number of Common Shares purchased by such
Purchaser, registered in the Purchaser’s name as indicated

2.

 

on the Stock Certificate Questionnaire in the form attached hereto as Exhibit B-1. Such
delivery shall be against payment of the purchase price therefor by each such Purchaser as set
forth as the “First Closing Purchase Price” below their respective names on the signature page
attached hereto by wire transfer of immediately available funds to the Company in accordance with
the Company’s written wiring instructions. The date of the First Closing is hereinafter referred to
as the “First Closing Date.”

               (b) Second Closing. Subject to the satisfaction (or waiver) of the conditions thereto set
forth in Article 5 and Article 6 of this Agreement, on the date one (1) business day following the
Company’s receipt of the Stockholder Approval (as defined herein), or at such other time and place
upon which the Company and the Purchasers purchasing a majority of the Common Shares at the Second
Closing shall agree, the Company will deliver or cause to be delivered to each Purchaser, a duly
executed Warrant and a certificate representing the number of Common Shares purchased by such
Purchaser, registered in the Purchaser’s name as indicated on the Stock Certificate Questionnaire
in the form attached hereto as Exhibit B-1. Such delivery shall be against payment of the purchase
price therefor by each such Purchaser as set forth as the “Second Closing Purchase Price” below
their names on the signature page attached hereto by wire transfer of immediately available funds
to the Company in accordance with the Company’s written wiring instructions. The date of the Second
Closing is hereinafter referred to as the “Second Closing Date.”

ARTICLE 3

Representations and Warranties of the Company

     Except as set forth on the Disclosure Schedule delivered by the Company to the Purchasers
herewith, the Company represents and warrants to the Purchasers on and as of the date hereof and on
the applicable Closing Date:

     3.1 Organization and Standing. The Company is a corporation duly organized and validly
existing under, and by virtue of, the laws of the State of Delaware and is in good standing as a
domestic corporation under the laws of said state. The Company does not own or control any equity
security or other interest of any corporation, limited partnership or other business entity.

     3.2 Corporate Power; Authorization. The Company has all requisite legal and corporate power
and has taken all requisite corporate action to execute and deliver this Agreement, to sell and
issue the Common Shares and Warrants, to issue the Warrant Shares upon exercise of the Warrants in
accordance with the terms of such Warrants, and to carry out and perform all of its obligations
under this Agreement. This Agreement constitutes, and upon execution and delivery by the Company of
the Warrants, the Warrants will constitute, legal, valid and binding obligations of the Company,
enforceable in accordance with their respective terms, except (a) as limited by applicable
bankruptcy, insolvency, reorganization or similar laws relating to or affecting the enforcement of
creditors’ rights generally and (b) as limited by equitable principles generally. The execution and
delivery of this Agreement does not, and the

3.

 

performance of this Agreement and the compliance with the provisions hereof, the issuance,
sale and delivery of the Common Shares and the Warrants by the Company will not materially conflict
with, or result in a material breach or violation of the terms, conditions or provisions of, or
constitute a material default under, or result in the creation or imposition of any material lien
pursuant to the terms of, the Amended and Restated Certificate of Incorporation, as amended (the
“Restated Certificate”) or Bylaws of the Company or any statute, law, rule or regulation or any
state or federal order, judgment or decree or any indenture, mortgage, lease or other material
agreement or instrument to which the Company or any of its properties is subject.

     3.3 Issuance and Delivery of the Shares. When issued in compliance with the provisions of
this Agreement and the Restated Certificate, the Common Shares will be validly issued, fully paid
and nonassessable. Upon exercise of the Warrants in accordance with the terms thereof, the Warrant
Shares will be validly issued, fully paid and nonassessable. The issuance and delivery of the
Common Shares and the Warrants is not subject to preemptive or any other similar rights of the
stockholders of the Company or any liens or encumbrances.

     3.4 SEC Documents; Financial Statements. The Company has filed in a timely manner all
documents that the Company was required to file with the Securities and Exchange Commission (the
“SEC”) under Sections 13, 14(a) and 15(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), during the twelve (12) months preceding the date of this Agreement. As of their
respective filing dates, all documents filed by the Company with the SEC (the “SEC Documents”)
complied in all material respects with the requirements of the Exchange Act or the Securities Act
of 1933, as amended (the “Securities Act”), as applicable. None of the SEC Documents as of their
respective dates contained any untrue statement of material fact or omitted to state a material
fact required to be stated therein or necessary to make the statements made therein, in light of
the circumstances under which they were made, not misleading. The financial statements of the
Company included in the SEC Documents (the “Financial Statements”) comply as to form in all
material respects with applicable accounting requirements and with the published rules and
regulations of the SEC with respect thereto. The Financial Statements have been prepared in
accordance with generally accepted accounting principles consistently applied and fairly present
the consolidated financial position of the Company and any subsidiaries at the dates thereof and
the consolidated results of their operations and consolidated cash flows for the periods then ended
(subject, in the case of unaudited statements, to normal, recurring adjustments or to the extent
that such unaudited statements do not include footnotes).

     3.5 Governmental Consents. No consent, approval, order or authorization of, or registration,
qualification, designation, declaration or filing with, any federal, state, or local governmental
authority on the part of the Company is required in connection with the consummation of the
transactions contemplated by this Agreement except for (a) compliance with the securities and blue
sky laws in the states in which the Common Shares and Warrants are offered and/or sold, which
compliance will be effected in accordance with such laws, (b) the filing of the Registration
Statement (as defined herein) and all amendments thereto with the SEC as contemplated by Section
7.2 of this Agreement and (c) the filing of the Nasdaq Market Notification Form with the Nasdaq
SmallCap Market.

4.

 

     3.6 No Material Adverse Change. Except as otherwise disclosed herein or in the SEC Documents,
since December 31, 2004, there have not been any changes in the assets, liabilities, financial
condition, business prospects or operations of the Company from that reflected in the Financial
Statements except changes in the ordinary course of business which have not been, either
individually or in the aggregate, materially adverse.

     3.7 Authorized Capital Stock. The authorized capital stock of the Company consists of (a)
sixty million (60,000,0000) shares of Common Stock, $0.01 par value, of which, as of April 19,
2005, seventeen million six hundred six thousand four hundred seventy one (17,606,471) shares were
outstanding, and (b) two million (2,000,000) shares of Preferred Stock, $0.01 par value, none of
which shares is currently outstanding. Except as described on Schedule 3.7 of the
Disclosure Schedule, there are no outstanding warrants, options, convertible securities or other
rights, agreements or arrangements of any character under which the Company is or may be obligated
to issue any equity securities of any kind and except as contemplated by this Agreement.

     3.8 Litigation. Except as disclosed in the SEC Documents, there are no actions, suits
proceedings or investigations pending or, to the best of the Company’s knowledge, threatened
against the Company or any of its properties before or by any court or arbitrator or any
governmental body, agency or official in which there is a reasonable likelihood (in the judgment of
the Company) of an adverse decision that as the case may be, could have or reasonably be expected
to result in (i) a material adverse effect on the legality, validity or enforceability of this
Agreement or the Warrants, (ii) a material adverse effect on the results of operations, assets,
business, prospects or financial condition of the Company and any subsidiaries, taken as a whole,
or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a
timely basis its obligations under this Agreement or the Warrants.

     3.9 Eligibility to Use Form S-3. The Company is eligible to use Form S-3 for the registration
of its securities under the Securities Act which are offered in transactions involving secondary
offerings.

     3.10 Company not an “Investment Company.” The Company has been advised of the rules and
requirements under the Investment Company Act of 1940, as amended (the “Investment Company Act”).
The Company is not, and immediately after receipt of payment for the Shares will not be, an
“investment company” or an entity “controlled” by an “investment company” within the meaning of the
Investment Company Act and shall conduct its business in a manner so that it will not become
subject to the Investment Company Act.

     3.11 NASDAQ Compliance. The Common Stock is registered pursuant to Section 12(g) of the
Exchange Act and is listed on The Nasdaq Stock Market, Inc. SmallCap Market (the “Nasdaq SmallCap
Market”), and the Company has taken no action designed to, or likely to have the effect of,
terminating the registration of the Common Stock under the Exchange Act or de-listing the Common
Stock from the Nasdaq SmallCap Market, nor has the Company received any notification that the SEC
or the National Association of Securities Dealers, Inc. (the “NASD”) is contemplating terminating
such registration or listing.

5.

 

     3.12 Use of Proceeds. The proceeds of the sale of the Common Shares and the Warrants
hereunder shall be used by the Company for the repayment of that certain promissory note in the
aggregate principal amount of three million dollars ($3,000,000) issued in favor of Silicon Valley
Bank, working capital and general corporate purposes.

     3.13 Brokers and Finders. No person or entity will have, as a result of the transactions
contemplated by this Agreement, any valid right, interest or claim against or upon the Company or a
Purchaser for any commission, fee or other compensation pursuant to any agreement, arrangement or
understanding entered into by or on behalf of the Company, other than SG Cowen & Co., LLC as lead
agent.

     3.14 No Directed Selling Efforts or General Solicitation. Neither the Company nor any person
or entity acting on its behalf has conducted any general solicitation or general advertising (as
those terms are used in Regulation D) in connection with the offer or sale of any of the
Securities.

     3.15 No Integrated Offering. Neither the Company nor any of its Affiliates, nor any person or
entity acting on its or their behalf has, directly or indirectly, made any offers or sales of any
Company security or solicited any offers to buy any security, under circumstances that would
adversely affect reliance by the Company on Section 4(2) for the exemption from registration for
the transactions contemplated hereby or would require registration of the Securities under the
Securities Act.

     3.16 Private Placement. The offer and sale of the Securities to the Purchasers as
contemplated hereby is exempt from the registration requirements of the Securities Act

     3.17 Internal Accounting Controls. Except as described in the SEC Document, the Company
maintains a system of internal accounting controls sufficient 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, (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.

     3.18 Intellectual Property.

               (a) “Intellectual Property” shall mean patents, trademarks, service marks, trade names,
copyrights, trade secrets, licenses, information and other proprietary rights and processes.

               (b) Except as disclosed in the SEC Documents and to the knowledge of the Company, the Company
owns or has the valid right to use all of the Intellectual Property that is necessary for the
conduct of the Company’s business as currently conducted or as currently

6.

 

proposed to be conducted as described in the SEC Documents, free and clear of all material
liens and encumbrances.

               (c) Except as disclosed in the SEC Documents, the conduct of the Company’s business as
currently conducted does not infringe or otherwise conflict with (collectively, “Infringe”) any
Intellectual Property rights of any third party or any confidentiality obligation owed by the
Company to a third party, and, to the knowledge of the Company, the Intellectual Property and
confidential information of the Company are not being Infringed by any third party.

               (d) Each employee, consultant and contractor of the Company who has had access to confidential
information of the Company that is necessary for the conduct of Company’s business as currently
conducted or as currently proposed to be conducted has executed an agreement to maintain the
confidentiality of such confidential information and has executed appropriate agreements that are
substantially consistent with the Company’s standard forms thereof.

     3.19 Questionable Payments. Neither the Company nor, to the knowledge of the Company, any of
its current or former stockholders, directors, officers, employees, agents or other persons acting
on behalf of the Company, has on behalf of the Company or in connection with its business: (a) used
any corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses
relating to political activity; (b) made any direct or indirect unlawful payments to any
governmental officials or employees from corporate funds; (c) established or maintained any
unlawful or unrecorded fund of corporate monies or other assets; (d) made any false or fictitious
entries on the books and records of the Company; or (e) made any unlawful bribe, rebate, payoff,
influence payment, kickback or other unlawful payment of any nature.

     3.20 Transactions with Affiliates. Except as disclosed in the SEC Documents and as
contemplated pursuant to this Agreement, none of the officers or directors of the Company and, to
the knowledge of the Company, none of the employees of the Company is presently a party to any
transaction with the Company or to a presently contemplated transaction (other than for services as
employees, officers and directors) that would be required to be disclosed pursuant to Item 404 of
Regulation S-K promulgated under the Securities Act.

     3.21 Disclosure. Except as disclosed on Schedule 3.21 of the Disclosure Schedule, the
information contained in the Exchange Act Documents as of the date hereof and as of the applicable
Closing Date, did not and shall 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, in light
of the circumstances under which they were made, not misleading. For purposes herein, “Exchange
Act Documents” are the documents filed by the Company under the Exchange Act, since the end of its
most recently completed fiscal year through the date hereof, including, without limitation, its
most recent report on Form 10-K. The Company confirms that, neither the Company nor, to the
Company’s knowledge, any other person acting on its behalf has provided any of the Purchasers or
their agents or counsel with any information that constitutes or would reasonably be expected to
constitute material, non-public information other than to those Purchasers listed on Schedule
5.5 or Purchasers who have executed a written agreement

7.

 

regarding the confidentiality and use of such information. The Company acknowledges and agrees
that no Purchaser makes or has made any representations or warranties with respect to the
transactions contemplated hereby other than those specifically set forth in Article IV hereof.

     3.22 Dilution; Sales By Purchasers. The Company acknowledges that the issuance of the
Securities may result in dilution of the outstanding shares of Common Stock, which dilution may be
substantial under certain market conditions. The Company further acknowledges that its obligations
under this Agreement and the Warrant, including without limitation its obligation to issue the
Warrant, are unconditional and absolute and not subject to any right of set off, counterclaim,
delay or reduction, regardless of the effect of any such dilution or any claim the Company may have
against any Purchaser and regardless of the dilutive effect that such issuance may have on the
ownership of the other stockholders of the Company. Anything in this Agreement or elsewhere herein
to the contrary notwithstanding (except for Section 4.5 hereof and pursuant to those certain
Amended and Restated Support Agreements, dated as of the date hereof), it is understood and agreed
by the Company (i) that none of the Purchasers have been asked by the Company to agree, nor has any
Purchaser agreed, to desist from purchasing or selling, long and/or short, securities of the
Company, or “derivative” securities based on securities issued by the Company or to hold the
Securities for any specified term; (ii) that future open market or other transactions by any
Purchaser, including short sales, and specifically including, without limitation, short sales or
“derivative” transactions, before or after the closing of this or future private placement
transactions, may negatively impact the market price of the Company’s publicly-traded securities;
(iii) that any Purchaser, and counter parties in “derivative” transactions to which any such
Investor is a party, directly or indirectly, presently may have a “short” position in the Common
Stock, and (iv) that each Purchaser shall not be deemed to have any affiliation with or control
over any arm’s length counter-party in any “derivative” transaction.

ARTICLE 4

 Representations, Warranties and Covenants of the Purchasers

     Each Purchaser hereby severally, and not jointly, represents and warrants to the Company on
and as of the date hereof and on the applicable Closing Date:

     4.1 Authorization. Purchaser represents and warrants to the Company that: (a) Purchaser has
all requisite legal and corporate or other power and capacity and has taken all requisite corporate
or other action to execute and deliver this Agreement, to purchase the Common Shares and the
Warrants to be purchased by it and to carry out and perform all of its obligations under this
Agreement; and (b) this Agreement constitutes the legal, valid and binding obligation of such
Purchaser, enforceable in accordance with its terms, except (i) as limited by applicable
bankruptcy, insolvency, reorganization or similar laws relating to or affecting the enforcement of
creditors’ rights generally and (ii) as limited by equitable principles generally.

8.

 

     4.2 Investment Experience. Purchaser is an “accredited investor” as defined in Rule 501(a)
under the Securities Act. Purchaser is aware of the Company’s business affairs and financial
condition and has had access to and has acquired sufficient information about the Company to reach
an informed and knowledgeable decision to acquire the Common Shares and the Warrants. Purchaser has
such business and financial experience as is required to give it the capacity to protect its own
interests in connection with the purchase of the Common Shares and Warrants.

     4.3 Investment Intent. Purchaser is purchasing the Common Shares and the Warrants for its own
account as principal, for investment purposes only, and not with a present view to, or for, resale,
distribution or fractionalization thereof, in whole or in part, within the meaning of the
Securities Act, other than as contemplated by Article 7. Purchaser understands that its acquisition
of the Common Shares and the Warrants has not been registered under the Securities Act or
registered or qualified under any state securities law in reliance on specific exemptions
therefrom, which exemptions may depend upon, among other things, the bona fide nature of
Purchaser’s investment intent as expressed herein. Purchaser has completed or caused to be
completed the Purchaser Questionnaire attached hereto as Exhibit C for use in preparation of the
Registration Statement, and the responses provided therein shall be true and correct as of the
applicable Closing Date and will be true and correct as of the effective date of the Registration
Statement. Purchaser, in connection with its decision to purchase the Common Shares and the
Warrants, has relied solely upon the SEC Documents and the representations and warranties of the
Company contained herein. Purchaser will not, directly or indirectly, offer, sell, pledge, transfer
or otherwise dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a
pledge of) any of the Securities except in compliance with the Securities Act, and the rules and
regulations promulgated thereunder.

     4.4 Registration or Exemption Requirements. Purchaser further acknowledges and understands
that the Securities may not be resold or otherwise transferred except in a transaction registered
under the Securities Act or unless an exemption from such registration is available.

     4.5 Dispositions. Purchaser will not, prior to the effectiveness of the Registration
Statement (as defined below), if then prohibited by law or regulation: (a) sell, offer to sell,
solicit offers to buy, dispose of, loan, pledge or grant any right with respect to (collectively, a
“Disposition”) the Securities; or (b) engage in any hedging or other transaction which is designed
or could reasonably be expected to lead to or result in a Disposition of Securities by such
Purchaser or an affiliate. In addition, Purchaser agrees that for so long as it owns any Common
Shares, it will not enter into any short sale of Shares executed at a time when the Purchaser has
no equivalent offsetting long position in the Common Shares. For purposes of determining whether
the Purchaser has an equivalent offsetting long position in the Common Shares, shares that the
Purchaser is entitled to receive within sixty (60) days (whether pursuant to contract or upon
conversion or exercise of convertible securities) will be included as if held long by the
Purchaser.

     4.6 No Legal, Tax or Investment Advice. Purchaser understands that nothing in this Agreement
or any other materials presented to Purchaser in connection with the purchase and

9.

 

sale of the Common Shares and the Warrants constitutes legal, tax or investment advice.
Purchaser has consulted such legal, tax and investment advisors as it, in its sole discretion, has
deemed necessary or appropriate in connection with its purchase of the Common Shares and the
Warrants.

     4.7 Confidentiality. Purchaser will hold in confidence all information concerning this
Agreement and the placement of the Securities hereunder until the earlier of such time as (a) the
Company has made a public announcement concerning the Agreement and the placement of the Securities
hereunder or (b) this Agreement is terminated.

     4.8 Residency. Purchaser’s principal executive offices are in the jurisdiction set forth
immediately below Purchaser’s name on the applicable signature page attached hereto.

     4.9 Governmental Review. Purchaser understands that no United States federal or state agency
or any other government or governmental agency has passed upon or made any recommendation or
endorsement of the Shares or the Warrants.

     4.10 Legend. Purchaser understands that, until such time as the Registration Statement has
been declared effective or the Securities may be sold pursuant to Rule 144 under the Securities Act
without any restriction as to the number of securities as of a particular date that can then be
immediately sold, the Securities may bear a restrictive legend in substantially the following form
(and a stop transfer order may be placed against transfer of the certificates for the Shares):

     “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES
LAWS OF ANY STATE OF THE UNITED STATES OR IN ANY OTHER JURISDICTION. THE
SECURITIES REPRESENTED HEREBY MAY NOT BE OFFERED, SOLD OR TRANSFERRED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
APPLICABLE SECURITIES LAWS UNLESS OFFERED, SOLD OR TRANSFERRED PURSUANT TO
AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THOSE LAWS.”

               (a) The Company agrees that following the effectiveness of the Registration Statement or at
such time as such legend is no longer required under this Section 4.10, it will, no later than
three business days following the delivery by an Purchaser to the Company or the Company’s transfer
agent of a certificate representing Common Shares or Warrant Shares, as applicable, issued with a
restrictive legend and a signed and completed notice of sale in substantially the form of Exhibit E
attached hereto (such third Trading Day, the “Legend Removal Date”), deliver or cause to be
delivered to such Purchaser a certificate representing such shares that is free from any legend
referring to the Securities Act. The Company may not make any notation on its records or give
instructions to any transfer agent of the Company that

10.

 

enlarge the restrictions on transfer set forth in this Section. Certificates for Securities
subject to legend removal hereunder shall be transmitted by the transfer agent of the Company to
the Purchasers by crediting the account of the Purchaser’s prime broker with the Depository Trust
Company System. All costs and expenses related to the removal of the legends and the reissuance of
any Securities shall be borne by the Company.

               (b) In addition to such Purchaser’s other available remedies, the Company shall pay to a
Purchaser, in cash, as partial liquidated damages and not as a penalty, for each $1,000 of Common
Shares (or Warrant Shares underlying a Warrant tendered for legend removal) (based on the VWAP of
the Common Stock on the date such Securities are submitted to the Company’s transfer agent)
delivered for removal of the restrictive legend together with a signed and completed notice of sale
in substantially the form of Exhibit E attached hereto and subject to Section 4.10(a), $10 per
Trading Day (increasing to $15 per Trading Day 5 Trading Days after such damages have begun to
accrue) for each Trading Day after the Legend Removal Date until such certificate is delivered
without a legend referring to the Securities Act. Nothing herein shall limit such Purchaser’s
right to pursue actual damages for the Company’s failure to deliver certificates representing any
Securities as required by the Agreement, and such Purchaser shall have the right to pursue all
remedies available to it at law or in equity including, without limitation, a decree of specific
performance and/or injunctive relief, without the necessity of showing economic loss and without
any bond or other security being required..

               (c) Each Purchaser, severally and not jointly with the other Purchasers, agrees that the
removal of the restrictive legend from certificates representing Securities as set forth in this
Section 4.10 is predicated upon the Company’s reliance that the Purchaser will sell any Securities
pursuant to either the registration requirements of the Securities Act, including any applicable
prospectus delivery requirements, or an exemption therefrom.

     4.11 Foreign Investors. If Purchaser is not a United States person (as defined by Section
7701(a)(30) of the Internal Revenue Code of 1986, as amended), Purchaser hereby represents that it
has satisfied itself as to the full observance of the laws of its jurisdiction in connection with
any invitation to subscribe for the Common Shares and the Warrants or any use of this Agreement,
including (a) the legal requirements within its jurisdiction for the purchase of the Common Shares
and the Warrants, (b) any foreign exchange restrictions applicable to such purchase or acquisition,
(c) any government or other consents that may need to be obtained, and (d) the income tax and other
tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale or
transfer of the Securities. Purchaser’s subscription and payment for and continued beneficial
ownership of the Securities will not violate any applicable securities or other laws of Purchaser’s
jurisdiction.

11.

 

ARTICLE 5

 Conditions to Closing Obligations of Purchasers

     Each Purchaser’s obligation to purchase the Common Shares and the Warrants at the relevant
Closing is, at the option of such Purchaser, subject to the fulfillment or waiver as of the
relevant Closing Date of the following conditions:

     5.1 Representations and Warranties. The representations and warranties made by the Company in
Article 3 hereof qualified as to materiality shall be true and correct at all times prior to and on
the applicable Closing Date, except to the extent any such representation or warranty expressly
speaks as of an earlier date, in which case such representation or warranty shall be true and
correct as of such earlier date, and the representations and warranties made by the Company in
Article 3 hereof not qualified as to materiality shall be true and correct in all material respects
at all times prior to and on the applicable Closing Date, except to the extent any such
representation or warranty expressly speaks as of an earlier date, in which case such
representation or warranty shall be true and correct in all material respects as of such earlier
date.

     5.2 Covenants. All covenants, agreements and conditions contained in this Agreement to be
performed by the Company on or prior to the applicable Closing Date shall have been performed or
complied with in all material respects.

     5.3 Certificates. The Company shall have delivered to the Purchasers duly executed
certificates for the Common Shares and the Warrants (in such denominations as set forth below each
Purchaser’s name on the applicable signature page attached hereto.

     5.4 Legal Opinion. The Purchasers shall have received on the applicable Closing Date an
opinion of Cooley Godward, counsel for the Company, dated the applicable Closing Date, in
substantially the form of Exhibit C.

     5.5 Amended and Restated Company Support Agreement. An Amended and Restated Company Support
Agreement, in the form of Exhibit F shall have been executed by the Company and each of the
entities set forth on Schedule 5.5.

     5.6 Listing. The Company shall have complied with all requirements with respect to the
listing of the Shares on the Nasdaq SmallCap Market, except for such requirements not required
until after the issuance of the Shares, such requirements to be complied with promptly after the
applicable Closing.

     5.7 Officer’s Certificate. The Company shall have delivered a Certificate, executed on behalf
of the Company by its Chief Executive Officer or its Chief Financial Officer, dated as of the
applicable Closing Date, certifying to the fulfillment of the conditions specified in Sections 5.1
and 5.2.

     5.8 Judgments. No judgment, writ, order, injunction, award or decree of or by any court, or
judge, justice or magistrate, including any bankruptcy court or judge, or any order of or

12.

 

by any governmental authority, shall have been issued, and no action or proceeding shall have
been instituted by any governmental authority, enjoining or preventing the consummation of the
transactions contemplated hereby.

     5.9 Secretary’s Certificate. The Company shall have delivered a Certificate, executed on
behalf of the Company by its Secretary or Chief Financial Officer, dated as of the applicable
Closing Date, certifying the resolutions adopted by the Board of Directors of the Company approving
the transactions contemplated by this Agreement and the issuance of the Securities, certifying the
current versions of the Restated Certificate and Bylaws of the Company and certifying as to the
signatures and authority of persons signing this Agreement and related documents on behalf of the
Company.

     5.10 Stop Orders. No stop order or suspension of trading shall have been imposed by the
Nasdaq SmallCap Market, the SEC or any other governmental regulatory body with respect to public
trading in the Common Stock.

     5.11 Stockholder Approval. In the case of the Second Closing, the Company shall have obtained
Stockholder Consent prior to the 120th day following the date hereof.

     5.12 Minimum Investment. In the case of the Second Closing, the Company shall have received
an aggregate gross proceeds of at least thirty million dollars ($30,000,000) from the Purchasers at
the First Closing and Second Closing.

ARTICLE 6

 Conditions to Closing Obligations of Company

     The Company’s obligation to sell and issue the Common Shares and the Warrants at the relevant
Closing is, at the option of the Company, subject to the fulfillment or waiver of the following
conditions:

     6.1 Receipt of Payment. The Purchasers shall have delivered payment of the purchase price to
the Company for the Common Shares and the Warrants being issued at the applicable Closing.

     6.2 Representations and Warranties. The representations and warranties made by the Purchasers
in Article 4 hereof qualified as to materiality shall be true and correct at all times prior to and
on the applicable Closing Date, except to the extent any such representation or warranty expressly
speaks as of an earlier date, in which case such representation or warranty shall be true and
correct as of such earlier date, and, the representations and warranties made by the Purchasers in
Article 4 hereof not qualified as to materiality shall be true and correct in all material respects
at all times prior to and on the applicable Closing Date, except to the extent any such
representation or warranty expressly speaks as of an earlier date, in which case such
representation or warranty shall be true and correct in all material respects as of such earlier
date.

13.

 

     6.3 Covenants. All covenants, agreements and conditions contained in this Agreement to be
performed by the Purchasers on or prior to the applicable Closing Date shall have been performed or
complied with in all material respects.

     6.4 Delivery of Purchaser Questionnaire. The Company shall have received from each Purchaser
a fully completed Purchaser Questionnaire in the form attached hereto as Exhibit B prior to the
Second Closing for the Company’s use in preparing the Registration Statement pursuant to Article 7
below; provided, however, in the event that the Second Closing does not take place, such Purchaser
Questionnaire shall have been received from each Purchaser within ten (10) days following
notification by the Company of the filing of such Registration Statement.

ARTICLE 7

 Covenants

     7.1 Definitions. For the purpose of this Article 7:

               (a) the term “Registration Statement” shall mean any registration statement required to be
filed by Section 7.2 below, and shall include any preliminary prospectus, final prospectus, exhibit
or amendment included in or relating to such registration statements; and

               (b) the term “Registrable Shares” shall mean all of the Common Shares issued pursuant to this
Agreement and the Warrant Shares issuable upon exercise of the Warrants issued pursuant to this
Agreement.

     7.2 Registration Procedures and Expenses. The Company shall:

               (a) use its best efforts to file a Registration Statement with the SEC within ten (10) days
following the Second Closing Date, but in no event after the date that is eighty (80) days after
the First Closing Date (the “Filing Date”), to register the Registrable Shares and shares of the
Common Stock listed on Schedule 7.2 attached hereto on Form S-3 under the Securities Act
(providing for shelf registration of such Registrable Shares and shares of the Common Stock listed
on Schedule 7.2 under SEC Rule 415) or on such other form which is appropriate to register
such Registrable Shares for resale from time to time by the Purchasers; provided, however, if a
Registration Statement covering the Registrable Shares is not filed with the SEC on or prior to the
Filing Date, the Company will make payments to each Holder, as liquidated damages and not as a
penalty, in an amount equal to one percent (1%) of the aggregate amount invested by such Holder
(the amount invested by a Holder shall include the purchase price of the Common Shares acquired by
such Holder and shall exclude any amount attributable to the Warrants acquired by such Holder
pursuant to the Agreement) for each 30 day period (or a portion thereof) following the date by
which such Registration Statement should have been filed for which no Registration Statement is
filed with respect to the Registrable Securities;

14.

 

               (b) use its best efforts, subject to receipt of necessary information from the Purchasers, to
cause any such Registration Statement filed pursuant to Section 7.2(a) above to become effective as
promptly after filing of such Registration Statement as practicable but in any event by the date
that is one hundred (100) days following the First Closing Date; provided, however, that in the
event that a Registration Statement is reviewed by the SEC, then such date shall be the date that
is one hundred fifty (150) days following the First Closing Date. If (i) the Company fails to file
with the SEC a request for acceleration in accordance with Rule 461 promulgated under the
Securities Act, within five business days of the date that the Company is notified (orally or in
writing, whichever is earlier) by the SEC that a Registration Statement will not be “reviewed,” or
is not subject to further review, or (ii) the Registration Statement has not been declared
effective by the appropriate date in the preceding sentence, then the Company will make payments to
each Holder, as liquidated damages and not as a penalty, in an amount equal to one percent (1%) of
the aggregate amount invested by such Holder (the amount invested by a Holder shall include the
purchase price of the Shares acquired by such Holder and shall exclude any amount attributable to
the Warrants acquired by such Holder pursuant to the Purchase Agreement) for each thirty (30) day
period (or a portion thereof) following the date by which such Registration Statement should have
been effective as described above had the Company used its best efforts to have the Registration
Statement declared effective;

               (c) prepare and file with the SEC such amendments and supplements to such Registration
Statement and the prospectus used in connection therewith as may be necessary to keep such
Registration Statement continuously effective until termination of such obligation as provided in
Section 7.6 below, subject to the Company’s right to suspend pursuant to Section 7.5;

               (d) furnish to each Purchaser (and to each underwriter, if any, of such Registrable Shares)
such number of copies of prospectuses in conformity with the requirements of the Securities Act and
such other documents as the Purchasers may reasonably request, in order to facilitate the public
sale or other disposition of all or any of the Registrable Shares by the Purchasers, including a
copy of the prospectus to be furnished to each Purchaser pursuant to Section 7.2(g);

               (e) file such documents as may be required of the Company for normal securities law clearance
for the resale of the Registrable Shares in such states of the United States as may be reasonably
requested by each Purchaser; provided, however, that the Company shall not be required in
connection with this paragraph (e) to qualify as a foreign corporation or execute a general consent
to service of process in any jurisdiction;

               (f) upon notification by the SEC that that the Registration Statement will not be reviewed or
is no longer subject to further review and comments by the SEC, the Company shall within five
business days request acceleration of such Registration Statement such that it becomes effective at
5:00 p.m. New York Time on the date that effectiveness is requested (the “Effective Date”);

15.

 

     (g) deliver to each Purchaser, by 9:00 a.m. New York time on the day following the Effective
Date, without charge, an electronic copy of each prospectus or prospectuses (including each form of
prospectus) and each amendment or supplement thereto. The Company hereby consents to the use of
such prospectus and each amendment or supplement thereto by each of the selling Holders in
connection with the offering and sale of the Registrable Securities covered by such prospectus and
any amendment or supplement thereto;

     (h) advise each Purchaser promptly:

                         (i) of the effectiveness of the Registration Statement or any post-effective amendments
thereto;

                         (ii) of any request by the SEC for amendments to the Registration Statement or amendments to
the prospectus or for additional information relating thereto;

                         (iii) of the issuance by the SEC of any stop order suspending the effectiveness of the
Registration Statement under the Securities Act or of the suspension by any state securities
commission of the qualification of the Registrable Shares for offering or sale in any jurisdiction,
or the initiation of any proceeding for any of the preceding purposes; and

                         (iv) of the existence of any fact and the happening of any event that makes any statement of a
material fact made in the Registration Statement, the prospectus and amendment or supplement
thereto, or any document incorporated by reference therein, untrue, or that requires the making of
any additions to or changes in the Registration Statement or the prospectus in order to make the
statements therein not misleading;

               (i) use its best efforts to cause all Registrable Shares to be listed on each securities
exchange, if any, on which equity securities by the Company are then listed;

               (j) bear all expenses in connection with the procedures in paragraphs (a) through (g) of this
Section 7.2 and the registration of the Registrable Shares on such Registration Statement and the
satisfaction of the blue sky laws of such states; and

               (k) otherwise use commercially reasonable efforts to make available to its security holders no
later than the Availability Date (as defined below), an earnings statement covering a period of at
least twelve (12) months, beginning after the effective date of each Registration Statement, which
earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act, including
Rule 158 promulgated thereunder (for the purpose of this subsection 7.2(i), “Availability Date”
means the 45th day following the end of the fourth fiscal quarter after the fiscal quarter that
includes the effective date of such Registration Statement, except that, if such fourth fiscal
quarter is the last quarter of the Company’s fiscal year, “Availability Date” means the 90th day
after the end of such fourth fiscal quarter).

16.

 

     7.3 Indemnification.

               (a) The Company agrees to indemnify and hold harmless each Purchaser, the partners, members,
officers and directors of each Purchaser and each person, if any, who controls such Purchaser
within the meaning of the Securities Act or the Exchange Act, from and against any losses, claims,
damages or liabilities to which they may become subject (under the Securities Act or otherwise)
insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect
thereof) arise out of, or are based upon, any untrue statement or alleged untrue statement of a
material fact contained in the Registration Statement or any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading or arise out of any
failure by the Company to fulfill any undertaking included in the Registration Statement and the
Company will, as incurred, reimburse such Purchaser, partner, member, officer, director or
controlling person for any legal or other expenses reasonably incurred in investigating, defending
or preparing to defend any such action, proceeding or claim; provided, however, that the Company
shall not be liable in any such case to the extent that such loss, claim, damage or liability
(collectively, “Loss”) arises out of, or is based upon, an untrue statement or omission or alleged
untrue statement or omission made in such Registration Statement in reliance upon and in conformity
with written information furnished to the Company by or on behalf of such Purchaser, partner,
member, officer, director or controlling person specifically for use in preparation of the
Registration Statement or any breach of this Agreement by such Purchaser; and provided further,
however, that the Company shall not be liable to any Purchaser of Registrable Shares (or any
partner, member, officer, director or controlling person of such Purchaser) to the extent that any
such Loss is caused by an untrue statement or omission or alleged untrue statement or omission made
in any preliminary prospectus if either (i)(A) such Purchaser failed to send or deliver a copy of
the final prospectus with or prior to the delivery of written confirmation of the sale by such
Purchaser to the person asserting the claim from which such Loss resulted and (B) the final
prospectus corrected such untrue statement or omission, (ii) (X) such untrue statement or omission
is corrected in an amendment or supplement to the prospectus and (Y) having previously been
furnished by or on behalf of the Company with copies of the prospectus as so amended or
supplemented, such Purchaser thereafter fails to deliver such prospectus as so amended or
supplemented, with or prior to the delivery of written confirmation of the sale of a Registrable
Share to the person asserting the claim from which such Loss resulted or (iii) such Purchaser sold
Registrable Shares in violation of such Purchaser’s covenant contained in Section 7.5 of this
Agreement.

     (b) Each Purchaser, severally and not jointly, agrees to indemnify and hold harmless the
Company (and each person, if any, who controls the Company within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act, each officer of the Company who signs the
Registration Statement and each director of the Company), from and against any losses, claims,
damages or liabilities to which the Company (or any such officer, director or controlling person)
may become subject (under the Securities Act or otherwise), insofar as such losses, claims, damages
or liabilities (or actions or proceedings in respect thereof) arise out of, or are based upon, any
breach of this Agreement by such Purchaser or any untrue statement or alleged untrue statement of a
material fact contained in the Registration Statement

17.

 

or any omission or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances under which they
were made, not misleading in each case, on the effective date thereof, if, and to the extent, such
untrue statement or omission or alleged untrue statement or omission was made in reliance upon and
in conformity with written information furnished by or on behalf of such Purchaser specifically for
use in preparation of the Registration Statement, and such Purchaser will reimburse the Company
(and each of its officers, directors or controlling persons) for any legal or other expenses
reasonably incurred in investigating, defending or preparing to defend any such action, proceeding
or claim; provided, however, that in no event shall any indemnity under this Section 7.4(b) be
greater in amount than the dollar amount of the proceeds (net of the amount of any damages such
Purchaser has otherwise been required to pay by reason of such untrue statement or omission or
alleged untrue statement or omission) received by such Purchaser upon the sale of the Registrable
Securities included in the Registration Statement giving rise to such indemnification obligation.

               (c) Promptly after receipt by any indemnified person of a notice of a claim or the beginning
of any action in respect of which indemnity is to be sought against an indemnifying person pursuant
to this Section 7.4, such indemnified person shall notify the indemnifying person in writing of
such claim or of the commencement of such action, and, subject to the provisions hereinafter
stated, in case any such action shall be brought against an indemnified person and such
indemnifying person shall have been notified thereof, such indemnifying person shall be entitled to
participate therein, and, to the extent that it shall wish, to assume the defense thereof, with
counsel reasonably satisfactory to such indemnified person. After notice from the indemnifying
person to such indemnified person of its election to assume the defense thereof, such indemnifying
person shall not be liable to such indemnified person for any legal expenses subsequently incurred
by such indemnified person in connection with the defense thereof; provided, however, that if there
exists or shall exist a conflict of interest that would make it inappropriate in the reasonable
judgment of the indemnified person for the same counsel to represent both the indemnified person
and such indemnifying person or any affiliate or associate thereof, the indemnified person shall be
entitled to retain its own counsel at the expense of such indemnifying person; provided, further,
that no indemnifying person shall be responsible for the fees and expense of more than one separate
counsel for all indemnified parties. The indemnifying party shall not settle an action without the
consent of the indemnified party, which consent shall not be unreasonably withheld.

               (d) If after proper notice of a claim or the commencement of any action against the
indemnified party, the indemnifying party does not choose to participate, then the indemnified
party shall assume the defense thereof and upon written notice by the indemnified party requesting
advance payment of a stated amount for its reasonable defense costs and expenses, the indemnifying
party shall advance payment for such reasonable defense costs and expenses (the “Advance
Indemnification Payment”) to the indemnified party. In the event that the indemnified party’s
actual defense costs and expenses exceed the amount of the Advance Indemnification Payment, then
upon written request by the indemnified party, the indemnifying party shall reimburse the
indemnified party for such difference; in the event that the Advance

18.

 

Indemnification Payment exceeds the indemnified party’s actual costs and expenses, the
indemnified party shall promptly remit payment of such difference to the indemnifying party.

               (e) If the indemnification provided for in this Section 7.4 is held by a court of competent
jurisdiction to be unavailable to an indemnified party with respect to any losses, claims, damages
or liabilities referred to herein, the indemnifying party, in lieu of indemnifying such indemnified
party thereunder, shall to the extent permitted by applicable law contribute to the amount paid or
payable by such indemnified party as a result of such loss, claim, damage or liability in such
proportion as is appropriate to reflect the relative fault of the indemnifying party on the one
hand and of the indemnified party on the other, as well as any other relevant equitable
considerations; provided, that in no event shall any contribution by an indemnifying party
hereunder be greater in amount than the dollar amount of the proceeds (net of the amount of any
damages such indemnifying party has otherwise been required to pay by reason of such untrue
statement or omission or alleged untrue statement or omission) received by such indemnifying party
upon the sale of the Registrable Securities included in the Registration Statement giving rise to
such indemnification obligation.

     7.4 Prospectus Delivery. Each Purchaser hereby covenants with the Company not to make any
sale of the Registrable Shares without complying with Section 8.3. The Purchaser acknowledges that
there may be times when the Company must suspend the use of the prospectus forming a part of the
Registration Statement until such time as an amendment to the Registration Statement has been filed
by the Company and declared effective by the SEC, or until such time as the Company has filed an
appropriate report with the SEC pursuant to the Exchange Act. The Purchaser hereby covenants that
it will not sell any Registrable Shares pursuant to said prospectus during the period commencing at
the time at which the Company gives the Purchaser notice of the suspension of the use of said
prospectus and ending at the time the Company gives the Purchaser notice that the Purchaser may
thereafter effect sales pursuant to said prospectus; provided that such suspension periods shall in
no event exceed thirty (30) days in any twelve (12) month period and that, in the good faith
judgment of the Company’s Board of Directors, the Company would, in the absence of such delay or
suspension hereunder, be required under state or federal securities laws to disclose any corporate
development, a potentially significant transaction or event involving the Company, or any
negotiations, discussions, or proposals directly relating thereto, in either case the disclosure of
which would reasonably be expected to have a material adverse effect upon the Company or its
stockholders; provided further, that the Company may suspend the use of the prospectus forming a
part of the Registration Statement to the extent necessary to file any post-effective amendment to
the Registration Statement in order to amend the table of selling stockholders within the
Registration Statement to reflect transfers of the Securities pursuant to Sections 8.3(a) and
8.3(b). If, after the Registration Statement has been declared effective by the SEC, sales cannot
be made pursuant to such Registration Statement, except as excused pursuant to this Section 7.4,
then the Company will make pro rata payments to each Holder, as liquidated damages and not as a
penalty, in an amount equal to one (1%) of the aggregate amount invested by such Holder (the amount
invested by a Holder shall include the purchase price of the Shares acquired by such Holder and
shall exclude any amount attributable to the Warrants acquired by such Holder pursuant to the

19.

 

Purchase Agreement) for each thirty (30) day period following the date sales cannot be made
pursuant to such Registration Statement after it has been declared effective.

     7.5 Termination of Obligations. The obligations of the Company pursuant to Section 7.2 hereof
shall cease and terminate upon the earlier to occur of (a) such time as all of the Registrable
Shares have been resold, (b) such time as all of the Registrable Shares may be resold in a
three-month period pursuant to Rule 144(k), or (c) the fifth anniversary of later of the First
Closing Date or Second Closing Date.

     7.6 Reporting Requirements.

               (a) With a view to making available the benefits of certain rules and regulations of the SEC
that may at any time permit the sale of the Securities to the public without registration or
pursuant to a registration statement on Form S-3, the Company agrees to use its best efforts to:

                         (i) make and keep public information available, as those terms are understood and defined in
Rule 144 under the Securities Act;

                         (ii) file with the SEC in a timely manner all reports and other documents required of the
Company under the Securities Act and the Exchange Act; and

                         (iii) so long as any of the Purchasers own Registrable Shares, to furnish to such Purchaser
upon request (A) a written statement by the Company as to whether it is in compliance with the
reporting requirements of Rule 144, the Securities Act and the Exchange Act, or whether it is
qualified as a registrant whose securities may be resold pursuant to SEC Form S-3, and (B) a copy
of the most recent annual or quarterly report of the Company and such other reports and documents
so filed by the Company.

     7.7 Blue Sky. The Company shall obtain and maintain all necessary blue sky law permits and
qualifications, or secured exemptions therefrom, required by any state for the offer and sale of
Securities.

     7.8 Stockholder Approval. Promptly following the First Closing Date, the Company shall take
all action necessary to call the annual meeting of its stockholders (the “Annual Stockholders
Meeting”) and seek the approval of the Company’s stockholders for, among other matters, the
authorization and issuance of the Common Shares and Warrants at the Second Closing and the issuance
of the Warrant Shares upon exercise of such Warrants in compliance with Rule 4350(i) of the
Marketplace Rules of the NASD (the “Stockholder Approval”), to the extent required by The Nasdaq
Stockmarket, Inc. In connection therewith, the Company will promptly prepare and file with the SEC
proxy materials (including a proxy statement and form of proxy) for use at the Annual Stockholders
Meeting and, promptly after receiving clearance from the SEC, shall promptly mail such proxy
materials to the stockholders of the Company.

20.

 

     7.9 Publicity. The Company shall, on or before 9:30 a.m. New York City time on the first
business day following the date hereof, issue a press release disclosing the material terms of the
transactions contemplated hereby.

ARTICLE 8

Restrictions on Transferability of Securities;
Compliance with Securities Act

     8.1 Restrictions on Transferability. The Securities shall not be transferable in the absence
of a registration under the Securities Act or an exemption therefrom. The Company shall be entitled
to give stop transfer instructions to its transfer agent with respect to the Securities in order to
enforce the foregoing restrictions.

     8.2 Instruction Sheet. Each certificate representing Registrable Shares shall bear the
Instruction Sheet attached hereto as Exhibit D (in addition to any legends required under
applicable securities laws).

8.3 Transfer of Securities.

               (a) Each Purchaser hereby covenants with the Company not to make any sale of the Securities
except:

                         (i) in accordance with the Registration Statement, in which case Purchaser covenants to comply
with the requirement of delivering a current prospectus; or

                         (ii) in accordance with Rule 144, in which case Purchaser covenants to comply with Rule 144;
or

                         (iii) (A) If the transferee has agreed in writing to be bound by the terms of this Agreement,
(B) such Purchaser shall have notified the Company of the proposed disposition and shall have
furnished the Company with a detailed statement of the circumstances surrounding the proposed
disposition and (C) if reasonably requested by the Company, such Purchaser shall have furnished the
Company with an opinion of counsel, reasonably satisfactory to the Company, that such disposition
will not require registration of such shares under the Securities Act.

               (b) Notwithstanding the provisions of subsection (a) above, no such restriction shall apply to
a transfer by a Purchaser that is (i) a partnership transferring to its partners or former partners
in accordance with partnership interests, (ii) a corporation transferring to a wholly-owned
subsidiary or a parent corporation that owns all of the capital stock of the Purchaser, (iii) a
limited liability company transferring to its members or former members in accordance with their
interest in the limited liability company or (iv) an individual transferring to the Purchaser’s
family member or trust for the benefit of an individual Purchaser; provided that in each case the
transferee will agree in writing to be subject to the terms of this Agreement to the same extent as
if he were an original Purchaser hereunder.

21.

 

               (c) Purchaser further acknowledges and agrees that, if a Purchaser is selling the Securities
using the prospectus forming a part of the Registration Statement, such Securities are not
transferable on the books of the Company unless the certificate evidencing such Securities is
submitted to the Company’s transfer agent and a separate certificate executed by an officer of, or
other person duly authorized by, the Purchaser in the form attached hereto as Exhibit E is
submitted to Cooley Godward.

     8.4 Purchaser Information. Each Purchaser covenants that it will promptly notify the Company
of any changes in the information set forth in the Registration Statement regarding such Purchaser
or such Purchaser’s “Plan of Distribution.

     8.5 Material Non-Public Information. Except with respect to those Purchasers listed on
Schedule 5.5 hereof, the Company covenants and agrees that neither it nor any other person
acting on its behalf will provide any Purchaser or its agents or counsel with any information that
the Company believes constitutes material non-public information, unless either prior thereto such
Purchaser shall have executed a written agreement regarding the confidentiality and use of such
information. The Company understands and confirms that each Purchaser shall be relying on the
foregoing representations in effecting transactions in securities of the Company.

ARTICLE 9

 Miscellaneous

     9.1 Termination.

               (a) This Agreement may be terminated and the sale and purchase of the Common Shares and the
Warrants abandoned at any time prior to the First Closing, by written notice of any individual
Purchaser if the First Closing has not occurred within five (5) business days of the date hereof
(other than as a result of the failure on the part of the party giving such notice of termination
to perform its covenants and obligations under this Agreement in all material respects); provided,
however, that the abandonment of the sale and purchase of the Common Shares and the Warrants shall
be applicable only to such Purchaser providing such written notice.

               (b) If this Agreement is terminated pursuant to this Section 9.1 all further obligations of
the parties shall terminate; provided, however, that (i) no party shall be relieved of any
liability arising from any breach by such party of any provision of this Agreement and (ii) the
parties shall, in all events, remain bound by and continue to be subject to the provisions set
forth in this Article 9.

     9.2 Waivers and Amendments. With the exception of Article 7 hereof, the terms of this
Agreement may be waived or amended with the written consent of the Company and each Purchaser. With
respect to Article 7 hereof, with the written consent of the Company and the

22.

 

record holders of a majority in interest of the Registrable Shares issued or issuable
hereunder, the terms of this Agreement may be waived or amended and any such amendment or waiver
shall be binding upon the Company and all holders of Registrable Shares.

     9.3 Broker’s Fee. Each Purchaser acknowledges that the Company intends to pay a fee in
respect of the sale of the Securities to SG Cowen & Co., LLC as sole agent. Each of the parties to
this Agreement represents that, on the basis of any actions and agreements by it, there are no
other brokers or finders entitled to compensation in connection with the sale of Securities to the
Purchasers.

     9.4 Governing Law. This Agreement shall be governed in all respects by and construed in
accordance with the laws of the State of California without any regard to conflicts of laws
principles.

     9.5 Survival. The representations, warranties, covenants and agreements made in this
Agreement shall survive any investigation made by the Company or the Purchasers and the Closing.

     9.6 Successors and Assigns. The provisions hereof shall inure to the benefit of, and be
binding upon, the successors, assigns, heirs, executors and administrators of the parties to this
Agreement. Upon a permitted transfer of a Purchaser’s Securities on the books of the Company in
accordance with the terms of Sections 8.3(a)(iii) or 8.3(b), the Purchaser may assign this
Agreement to the permitted transferee upon prior written notice to the Company. Except as set
forth in the previous sentence, no Purchaser shall assign this Agreement without the prior written
consent of the Company.

     9.7 Entire Agreement. This Agreement constitutes the full and entire understanding and
agreement between the parties with regard to the subjects thereof.

     9.8 Notices, etc. All notices and other communications required or permitted under this
Agreement shall be in writing and may be delivered in person, by telecopy, overnight delivery
service or registered or certified United States mail, addressed to the Company or the Purchasers,
as the case may be, at their respective addresses set forth on the applicable signature pages
hereto, or at such other address as the Company or the Purchasers shall have furnished to the other
party in writing. All notices and other communications shall be effective upon the earlier of
actual receipt thereof by the person to whom notice is directed or (a) in the case of notices and
communications sent by personal delivery or telecopy, one business day after such notice or
communication arrives at the applicable address or was successfully sent to the applicable telecopy
number, (b) in the case of notices and communications sent by overnight delivery service, at noon
(local time) on the second business day following the day such notice or communication was sent,
and (c) in the case of notices and communications sent by United States mail, seven days after such
notice or communication shall have been deposited in the United States mail.

23.

 

     9.9 Severability of this Agreement. If any provision of this Agreement shall be judicially
determined to be invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

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

     9.11 Further Assurances. Each party to this Agreement shall do and perform or cause to be
done and performed all such further acts and things and shall execute and deliver all such other
agreements, certificates, instruments and documents as the other party hereto may reasonably
request in order to carry out the intent and accomplish the purposes of this Agreement and the
consummation of the transactions contemplated hereby.

     9.12 Currency. All references to “dollars” or “$” in this Agreement shall be deemed to refer
to United States dollars.

     9.13 Waiver of Conflicts. Each party to this Agreement acknowledges that legal counsel for
the Company, Cooley Godward, has in the past and may continue in the future to perform legal
services for one or more of the Purchasers or their affiliates in matters unrelated to the
transactions contemplated by this Agreement, including, but not limited to, the representation of
the Purchasers in matters of a similar nature to the transactions contemplated herein. Each party
to this Agreement hereby: (a) acknowledges that they have had an opportunity to ask for and have
obtained information relevant to such representation, including disclosure of the reasonably
foreseeable adverse consequences of such representation; (b) acknowledges that with respect to the
transactions contemplated herein, Cooley Godward has represented the Company and not any individual
Purchaser or any individual stockholder, director or employee of the Company; and (c) gives its
informed consent to Cooley Godward’s representation of the Company in the transactions contemplated
by this Agreement.

24.

 

     The foregoing agreement is hereby executed as of the date first above written.

	 	 	 	 	 
	 	Solexa, Inc. , a Delaware corporation

 	 
	 	By:  	/s/ John West
 	 
	 	 	 	 
	 	Name:	 John West
	 
	 	 	 	 
	 	Title:	CEO 	 
	 

Signature
Page To Securities Purchase Agreement 

 

 

     IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its
duly authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:	 	 	 	IF A CORPORATION, PARTNERSHIP,	 	 	 	 
	 	 	 	 	    TRUST, ESTATE OR OTHER ENTITY:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	(Signature)	 	 	 	Prothro
Family Limited Partnership, Ltd.	 	 	 	 
	 	 	 	 	Print name of entity	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	(Printed Name)	 	 	 	By:	 	/s/ J.H. Cullum Clark
	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:
	 	J.H. Cullum Clark	 	 	 
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Title:
	 	Managing General Partner	 	 	 
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Texas/USA	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Print jurisdiction of organization of entity	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Address:	 	 	 	Address:	 	 	 	 
	 	 	 	 	Prothro Family Limited Partnership, Ltd.	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	2626 Cole Avenue, Suite 200	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Dallas, TX 75204	 	 	 	 
	 	 	 	 	 	 	 	 	 

Signature
Page to Securities Purchase Agreement

 

     IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:	 	 	 	IF A CORPORATION, PARTNERSHIP,	 	 	 	 
	 	 	 	 	    TRUST, ESTATE OR OTHER ENTITY:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	(Signature)	 	 	 	Cimarron Biomedical Equity Master Fund, L.P.	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Print name of entity	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	(Printed Name)	 	 	 	By:	 	/s/ J.H. Cullum Clark	 	 
	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:
	 	J.H. Cullum Clark	 	 	 
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Title:
	 	General Partner for GP, Cimarron	 	 	 
	

	 	 	 	 	 	 	 	Biomedical Equity Fund, L.P.	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Cayman Islands	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Print jurisdiction of organization of entity	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Address:	 	 	 	Address:	 	 	 	 
	 	 	 	 	c/o Cimarron Biomedical Investors, L.P.	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	2626 Cole Avenue, Suite 200	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Dallas, TX 75204	 	 	 	 
	 	 	 	 	 	 	 	 	 

Signature
Page to Securities Purchase Agreement

 

     IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:	 	 	 	IF A CORPORATION, PARTNERSHIP,	 	 	 	 
	 	 	 	 	    TRUST, ESTATE OR OTHER ENTITY:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	(Signature)	 	 	 	UBS O’Connor LLC F/B/O	 	 	 	 
	 	 	 	 	O’Connor PIPES Corporate Strategies Master	 	 	 	 
	 
	 	 	 	 	Limited	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Print name of entity	 	 	 	 
	 	 	 	 	 	 	 	 
	(Printed Name)	 	 	 	By:	 	/s/ George Locasto
	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:
	 	George Locasto	 	 	 
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Title:
	 	Managing director	 	 	 
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Cayman Islands	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Print jurisdiction of organization of entity	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Address:	 	 	 	Address:	 	 	 	 
	 	 	 	 	UBS O’Connor LLC	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	One North Wacker Drive - 32nd Floor	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Chicago, IL 60606	 	 	 	 
	 	 	 	 	 	 	 	 	 

Signature
Page to Securities Purchase Agreement

 

     IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:	 	 	 	IF A CORPORATION, PARTNERSHIP,	 	 	 	 
	 	 	 	 	    TRUST, ESTATE OR OTHER ENTITY:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	(Signature)	 	 	 	Nite Capital LP	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Print name of entity	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	(Printed Name)	 	 	 	By:	 	/s/ Keith A Goodman
	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:
	 	Keith A. Goodman	 	 	 
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Title:
	 	Manager of the General Partner	 	 	 
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Delaware	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Print jurisdiction of organization of entity	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Address:	 	 	 	Address:	 	 	 	 
	 	 	 	 	Nite Capital LP	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	100 E. Cook Avenue #201	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Libertyville, IL 60048	 	 	 	 
	 	 	 	 	 	 	 	 	 

Signature Page to Securities Purchase Agreement

 

     IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:	 	 	 	IF A CORPORATION, PARTNERSHIP,	 	 	 	 
	 	 	 	 	    TRUST, ESTATE OR OTHER ENTITY:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	(Signature)	 	 	 	SRB Greenway Capital (QP), L.P.	 	 	 	 
	 	 	 	 	By: SRB Management, L.P., General Partner	 	 	 	 
	 	 	 	 	By: BC Advisors, L.L.C., General Partner	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Print name of entity	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	(Printed Name)	 	 	 	By:	 	/s/ Steven R. Becker
	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:
	 	Steven R. Becker	 	 	 
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Title:
	 	Member	 	 	 
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Print jurisdiction of organization of entity	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Address:	 	 	 	Address:	 	 	 	 
	 	 	 	 	SRB Greenway Capital (QP), L.P.	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	3000 Crescent Court, Suite 1111	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Dallas, TX 75201	 	 	 	 
	 	 	 	 	 	 	 	 	 

Signature
Page to Securities Purchase Agreement

 

     IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:	 	 	 	IF A CORPORATION, PARTNERSHIP,	 	 	 	 
	 	 	 	 	    TRUST, ESTATE OR OTHER ENTITY:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	(Signature)	 	 	 	SRB Greenway Capital, L.P.	 	 	 	 
	 	 	 	 	By: SRB Management, L.P., General Partner	 	 	 	 
	 	 	 	 	By: BC Advisors, L.L.C., General Partner	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Print name of entity	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	(Printed Name)	 	 	 	By:	 	/s/ Steven R. Becker
	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:
	 	Steven R. Becker	 	 	 
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Title:
	 	Member	 	 	 
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Print jurisdiction of organization of entity	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Address:	 	 	 	Address:	 	 	 	 
	 	 	 	 	SRB Greenway Capital, L.P.	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	3000 Crescent Court, Suite 1111	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Dallas, TX 75201	 	 	 	 
	 	 	 	 	 	 	 	 	 

Signature
Page to Securities Purchase Agreement

 

     IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:	 	 	 	IF A CORPORATION, PARTNERSHIP,	 	 	 	 
	 	 	 	 	   TRUST, ESTATE OR OTHER ENTITY:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(Signature)	 	 	 	SRB Greenway Offshore Operating Fund, L.P.	 	 	 	 
	 	 	 	 	By: SRB Management, L.P., General Partner	 	 	 	 
	 	 	 	 	By: BC Advisors, L.L.C., General Partner	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Print name of entity	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(Printed Name)	 	 	 	By:	 	/s/ Steven R. Becker
	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:
	 	Steven R. Becker	 	 	 
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Title:
	 	Member	 	 	 
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Print jurisdiction of organization of entity	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Address:	 	 	 	Address:	 	 	 	 
	 	 	 	 	SRB Greenway Offshore Operating Fund, L.P.	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	3000 Crescent Court, Suite 1111	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Dallas, TX 75201	 	 	 	 
	 	 	 	 	 	 	 	 	 

Signature
Page to Securities Purchase Agreement

 

 

     IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:	 	 	 	IF A CORPORATION, PARTNERSHIP,	 	 	 	 
	 	 	 	 	    TRUST, ESTATE OR OTHER ENTITY:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	(Signature)	 	 	 	Omnicron Master Trust	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Print name of entity	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	(Printed Name)	 	 	 	By:	 	/s/ Bruce Bernstein
	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:
	 	Bruce Bernstein	 	 	 
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Title:
	 	Managing Partner	 	 	 
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Print jurisdiction of organization of entity	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Address:	 	 	 	Address:	 	 	 	 
	 	 	 	 	Omnicron Capital, L.P.	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	650 Fifth Avenue, 24th Floor	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	New York, NY 10019	 	 	 	 
	 	 	 	 	 	 	 	 	 

Signature
Page to Securities Purchase Agreement

 

 

     IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:	 	 	 	IF A CORPORATION, PARTNERSHIP,	 	 	 	 
	 	 	 	 	   TRUST, ESTATE OR OTHER ENTITY:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(Signature)	 	 	 	Special Situations Private Equity Fund, L.P.	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Print name of entity	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(Printed Name)	 	 	 	By:	 	/s/ Austin Mance
	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:
	 	Austin Mance	 	 	 
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Title:
	 	Managing Director	 	 	 
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Print jurisdiction of organization of entity	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Address:	 	 	 	Address:	 	 	 	 
	 	 	 	 	Special Situations Private Equity Fund, L.P.	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	153 East 53rd Street, 55th Floor	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	New York, NY 10022	 	 	 	 
	 	 	 	 	 	 	 	 	 

Signature
Page to Securities Purchase Agreement

 

 

     IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:	 	 	 	IF A CORPORATION, PARTNERSHIP,
	 	 	 	 	   TRUST, ESTATE OR OTHER ENTITY:
	/s/ Paul M. Bruckman
	 	 	 	 	 	 	 	 	 	 
	(Signature)
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	Print name of entity
	Paul M. Bruckman
	 	 	 	 	 	 	 	 	 	 
	(Printed Name)

	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Title:	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 	 	 	 	 
	Address:	 	 	 	Address:
	P.O. Box 998
	 	 	 	 
	 	 	 	 	 
	Mobile, AL 36601
	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 

Signature
Page to Securities Purchase Agreement

 

 

     IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:	 	 	 	IF A CORPORATION, PARTNERSHIP,
	 	 	 	 	   TRUST, ESTATE OR OTHER ENTITY:
	/s/ Anthony Montagu
	 	 	 	 	 	 	 	 	 	 
	(Signature)
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	Print name of entity
	Anthony Montagu
	 	 	 	 	 	 	 	 	 	 
	(Printed Name)

	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Title:	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 	 	 	 	 
	Address:	 	 	 	Address:
	c/o Indian Rock Corporation
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	P.O. box 2606
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Greenwich, CT 06836
	 	 	 	 	 	 	 	 	 	 

Signature
Page to Securities Purchase Agreement

 

 

     IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:	 	 	 	IF A CORPORATION, PARTNERSHIP,
	 	 	 	 	   TRUST, ESTATE OR OTHER ENTITY:
	/s/ Andrew Rockefeller
	 	 	 	 	 	 	 	 	 	 
	(Signature)
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	Print name of entity
	Andrew Rockefeller
	 	 	 	 	 	 	 	 	 	 
	(Printed Name)

	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Title:	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 	 	 	 	 
	Address:	 	 	 	Address:
	c/o Indian Rock Corporation
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	P.O. Box 2606
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Greenwich, CT 06836
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 

Signature
Page to Securities Purchase Agreement

 

 

     IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:	 	 	 	IF A CORPORATION, PARTNERSHIP,
	 	 	 	 	   TRUST, ESTATE OR OTHER ENTITY:
	/s/ Charles Murphy
	 	 	 	 	 	 	 	 	 	 
	(Signature)
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	Print name of entity
	Charles Murphy
	 	 	 	 	 	 	 	 	 	 
	(Printed Name)

	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Title:	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 	 	 	 	 
	Address:

	 	 	 	Address
	 	:	 	 	 	 
	27 Taylor Road
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Mount Kisco, NY 10549
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 

Signature
Page to Securities Purchase Agreement

 

     IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:	 	 	 	IF A CORPORATION, PARTNERSHIP,	 	 	 	 
	 	 	 	 	  TRUST, ESTATE OR OTHER ENTITY:	 	 	 	 
	 
	(Signature)	 	 	 	Enable Growth Partners	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Print name of entity	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(Printed Name)	 	 	 	By:	 	/s/ Mitch Levine
	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:
	 	Mitch Levine	 	 	 
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Title:
	 	Managing Partner	 	 	 
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Delaware	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Print jurisdiction of organization of entity	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Address:	 	 	 	Address:	 	 	 	 
	 	 	 	 	Enable Growth Partners	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	One Ferry Building, Suite 255	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	San Francisco, CA 94111	 	 	 	 
	 	 	 	 	 	 	 	 	 

Signature
Page to Securities Purchase Agreement

 

 

     IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:	 	 	 	IF A CORPORATION, PARTNERSHIP,	 	 	 	 
	 	 	 	 	   TRUST, ESTATE OR OTHER ENTITY:	 	 	 	 
	
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(Signature)	 	 	 	Enable Opportunity Partners	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Print name of entity	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(Printed Name)	 	 	 	By:	 	/s/ Mitch Levine	 	 	 	 
	

	 	 	 	 	 	Name:
	 	Mitch Levine	 	 	 
	

	 	 	 	 	 	Title:
	 	Managing Partner	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Delaware	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Print jurisdiction of organization of entity	 	 	 	 
	 
	Address:	 	 	 	Address:	 	 	 	 
	 	 	 	 	Enable Opportunity Partners	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	One Ferry Building, Suite 255	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	San Francisco, CA 94111	 	 	 	 
	 	 	 	 	 	 	 	 	 

Signature Page to Securities Purchase Agreement

15

 

     IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:	 	IF A CORPORATION, PARTNERSHIP,
 TRUST, ESTATE OR OTHER ENTITY:
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	(Signature)	 	ValueAct Capital Master Fund, L.P.
	 	 	Print name of entity
	 
	 
	 	 	 	 	 	 
	(Printed Name)	 	By:	 	/s/ George F. Hamel, Jr.
	 	 	 	 	 
	

	 	 	 	Name:
	 	George F. Hamel, Jr.
	

	 	 	 	Title:
	 	Managing Member of General
	

	 	 	 	 	 	Partner, VA Partners, LLC
	 
	 	 	 	 	 	 
	 	 	British Virgin Islands
	 	 	 
	 	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 
	Address:	 	Address:
	 	 	ValueAct Capital Master Fund, L.P.
	 	 	435 Pacific Avenue, 4th Floor
	 	 	San Francisco, CA 94133

Signature Page to Securities Purchase Agreement

 

 

     IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its
duly authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:	 	IF A CORPORATION, PARTNERSHIP, TRUST, ESTATE OR OTHER ENTITY:
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	(Signature)	 	Capital Ventures International
	 	 	By:	 	Heights Capital Management, Inc.
	 	 	 	 	its Authorizing Agent
	 	 	Print name of entity
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Printed Name)	 	By:	 	/s/ Martin Kobinger
	 	 	 	 	 
	

	 	 	 	Name:
	 	Martin Kobinger
	

	 	 	 	Title:
	 	Investment Manager
	 
	 	 	 	 	 	 
	 	 	 
	 	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 
	Address:

	 	Address:	 	 	 	 
	 	 	Capital Ventures International
	 	 	101 California Street, Suite 3250
	 	 	San Francisco, CA 94111

Signature Page to Securities Purchase Agreement

 

 

     IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:	 	IF A CORPORATION, PARTNERSHIP, TRUST, ESTATE OR OTHER ENTITY:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Signature)	 	SF Capital Partners LTD.
	 	 	Print name of entity
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	(Printed Name)	 	By:	 	/s/ Brian H. Davidson
	 	 	 	 	 
	

	 	 	 	Name:
	 	Brian H. Davidson
	

	 	 	 	Title:
	 	Authorized Signatory
	 
	 	 	 	 	 	 
	 	 	British Virgin Islands
	 	 	 
	 	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 
	Address:

	 	Address:	 	 	 	 
	 	 	SF Capital Partners, LTD
	 	 	c/o Stark Offshore Management, LLC
	 	 	3600 South Lake Drive
	 	 	St. Francis, Wisconsin 53235

Signature Page to Securities Purchase Agreement

 

 

      IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its
duly authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:
	 	IF A CORPORATION, PARTNERSHIP,
	 
	 	TRUST, ESTATE OR OTHER ENTITY:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Signature)
	 	Oxford Bioscience Partners IV L.P.
	 
	 	By:	 	OBP Management IV L.P.
	 
	 	 	 	its General Partner
	 
	 	 	 	 
	 
	 	Print name of entity
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Printed Name)
	 	By:	 	/s/ Jonathan J. Fleming
	 
	 	 	 	 
	

	 	 	 	Name:
	 	Jonathan J. Fleming
	

	 	 	 	 	 	 
	

	 	 	 	Title:
	 	General Partner
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Delaware
	 
	 	 
	 
	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 
	Address:

	 	Address:
	 	 	 	 
	 
	 	Oxford Biosciences Partners
	 
	 	 
	 
	 	222 Berkeley Street, Suite 1650
	 
	 	 
	 
	 	Boston, MA 02116
	 
	 	 

 

 

      IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:
	 	IF A CORPORATION, PARTNERSHIP,
	 
	 	TRUST, ESTATE OR OTHER ENTITY:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Signature)
	 	MRNA Fund II L.P.
	 
	 	By:	 	OBP Management IV L.P.
	 
	 	 	 	its General Partner
	 
	 	 	 	 
	 
	 	Print name of entity
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Printed Name)
	 	By:	 	/s/ Jonathan J. Fleming
	 
	 	 	 	 
	

	 	 	 	Name:
	 	Jonathan J. Fleming
	

	 	 	 	 	 	 
	

	 	 	 	Title:
	 	General Partner
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Delaware
	 
	 	 
	 
	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 
	Address:

	 	Address:
	 	 	 	 
	 
	 	Oxford Biosciences Partners
	 
	 	 
	 
	 	222 Berkeley Street, Suite 1650
	 
	 	 
	 
	 	Boston, MA 02116
	 
	 	 

 

 

      IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:
	 	IF A CORPORATION, PARTNERSHIP,
	 
	 	TRUST, ESTATE OR OTHER ENTITY:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Signature)
	 	Schroder Ventures International
	 
	 	Life Sciences Fund II L.P.1
	 
	 	 
	 
	 	Print name of entity
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Printed Name)
	 	By:	 	/s/ Gary Carr
	 
	 	 	 	 
	

	 	 	 	Name:
	 	Gary Carr
	

	 	 	 	 	 	 
	

	 	 	 	Title:
	 	Director and Vice President
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ Douglas Mello
	 
	 	 	 	 
	

	 	 	 	Name:
	 	Douglas Mello
	

	 	 	 	 	 	 
	

	 	 	 	Title:
	 	Secretary
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	of Schroder Venture Managers Inc. as General Partner
	 
	 	 	 	 	 	 
	 
	 	Delaware
	 
	 	 
	 
	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 
	Address:
	 	Address:
	 
	 	c/o 22 Church Street
	 
	 	 
	 
	 	Hamilton HM 11
	 
	 	 
	 
	 	Bermuda
	 
	 	 

 

 

      IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:
	 	IF A CORPORATION, PARTNERSHIP,
	 
	 	TRUST, ESTATE OR OTHER ENTITY:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Signature)
	 	Schroder Ventures International
	 
	 	Life Sciences Fund II L.P.2
	 
	 	 
	 
	 	Print name of entity
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Printed Name)
	 	By:	 	/s/ Gary Carr
	 
	 	 	 	 
	

	 	 	 	Name:
	 	Gary Carr
	

	 	 	 	 	 	 
	

	 	 	 	Title:
	 	Director and Vice President
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ Douglas Mello
	 
	 	 	 	 
	

	 	 	 	Name:
	 	Douglas Mello
	

	 	 	 	 	 	 
	

	 	 	 	Title:
	 	Secretary
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	of Schroder Venture Managers Inc. as General Partner
	 
	 	 	 	 	 	 
	 
	 	Delaware
	 
	 	 
	 
	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 
	Address:
	 	Address:
	 
	 	c/o 22 Church Street
	 
	 	 
	 
	 	Hamilton HM 11
	 
	 	 
	 
	 	Bermuda
	 
	 	 

 

 

      IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:
	 	IF A CORPORATION, PARTNERSHIP,
	 
	 	TRUST, ESTATE OR OTHER ENTITY:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Signature)
	 	Schroder Ventures International
	 
	 	Life Sciences Fund II L.P.3
	 
	 	 
	 
	 	Print name of entity
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Printed Name)
	 	By:	 	/s/ Gary Carr
	 
	 	 	 	 
	

	 	 	 	Name:
	 	Gary Carr
	

	 	 	 	 	 	 
	

	 	 	 	Title:
	 	Director and Vice President
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ Douglas Mello
	 
	 	 	 	 
	

	 	 	 	Name:
	 	Douglas Mello
	

	 	 	 	 	 	 
	

	 	 	 	Title:
	 	Secretary
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	of Schroder Venture Managers Inc. as General Partner
	 
	 	 	 	 	 	 
	 
	 	Delaware
	 
	 	 
	 
	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 
	Address:
	 	Address:
	 
	 	c/o 22 Church Street
	 
	 	 
	 
	 	Hamilton HM 11
	 
	 	 
	 
	 	Bermuda
	 
	 	 

 

 

      IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:
	 	IF A CORPORATION, PARTNERSHIP,
	 
	 	TRUST, ESTATE OR OTHER ENTITY:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Signature)
	 	Schroder Ventures International
	 
	 	Life Sciences Fund II Strategic
	 
	 	Partners L.P.
	 
	 	 
	 
	 	Print name of entity
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Printed Name)
	 	By:	 	/s/ Gary Carr
	 
	 	 	 	 
	

	 	 	 	Name:
	 	Gary Carr
	

	 	 	 	 	 	 
	

	 	 	 	Title:
	 	Director and Vice President
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ Douglas Mello
	 
	 	 	 	 
	

	 	 	 	Name:
	 	Douglas Mello
	

	 	 	 	 	 	 
	

	 	 	 	Title:
	 	Secretary
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	of Schroder Venture Managers Inc. as General Partner
	 
	 	 	 	 	 	 
	 
	 	Delaware
	 
	 	 
	 
	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 
	Address:
	 	Address:
	 
	 	c/o 22 Church Street
	 
	 	 
	 
	 	Hamilton HM 11
	 
	 	 
	 
	 	Bermuda
	 
	 	 

 

 

      IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:
	 	IF A CORPORATION, PARTNERSHIP,
	 
	 	TRUST, ESTATE OR OTHER ENTITY:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Signature)
	 	Schroder Ventures International
	 
	 	Life Sciences Fund II Group
	 
	 	Co-Investment Scheme
	 
	 	 
	 
	 	Print name of entity
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Printed Name)
	 	By:	 	/s/ Gary Carr
	 
	 	 	 	 
	

	 	 	 	Name:
	 	Gary Carr
	

	 	 	 	 	 	 
	

	 	 	 	Title:
	 	Director and Vice President
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ Douglas Mello
	 
	 	 	 	 
	

	 	 	 	Name:
	 	Douglas Mello
	

	 	 	 	 	 	 
	

	 	 	 	Title:
	 	Secretary
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	of SITCO Nominees Ltd.
— VC01903 as Nominee
	 
	 	 	 	 	 	 
	 
	 	Bermuda
	 
	 	 
	 
	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 
	Address:
	 	Address:
	 
	 	c/o 22 Church Street
	 
	 	 
	 
	 	Hamilton HM 11
	 
	 	 
	 
	 	Bermuda
	 
	 	 

 

 

      IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:
	 	IF A CORPORATION, PARTNERSHIP,
	 
	 	TRUST, ESTATE OR OTHER ENTITY:
	

	 	 	 	 	 	 
	(Signature)
	 	SV (Nominees) Limited as Nominee
	 
	 	for Schroder Ventures Investments Limited
	 
	 	 
	 
	 	Print name of entity
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Printed Name)
	 	By:	 	/s/ Lawrence S. McNairn
	 
	 	 	 	 
	

	 	 	 	Name:
	 	Lawrence S. McNairn
	

	 	 	 	 	 	 
	

	 	 	 	Title:
	 	Director
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Guernsey, Channel Islands
	 
	 	 
	 
	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 
	Address:

	 	Address:
	 	 	 	 
	 
	 	P.O. Box 255 Trafalgar Court
	 
	 	 
	 
	 	Les Banques, St. Peter Port
	 
	 	 
	 
	 	Guernsey, Channel Islands 941 3QJ
	 
	 	 

 

 

      IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:
	 	IF A CORPORATION, PARTNERSHIP,
	 
	 	TRUST, ESTATE OR OTHER ENTITY:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Signature)
	 	Abingworth Bioventures II A L.P.
	 
	 	By:	 	Abingworth Management Ltd.
	 
	 	 	 	its Manager
	 
	 	 	 	 
	 
	 	Print name of entity
	

	 	 	 	 	 	 
	(Printed Name)
	 	By:	 	/s/ James Abell
	 
	 	 	 	 
	 
	 	 	 	Name: James Abell
	 
	 	 	 	 
	 
	 	 	 	Title: Director
	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	England
	 
	 	 
	 
	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 
	Address:
	 	Address:
	 
	 	38 Jermyn Street
	 
	 	 
	 
	 	London
	 
	 	 
	 
	 	SW1Y 6DN
	 
	 	 

 

 

      IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:
	 	IF A CORPORATION, PARTNERSHIP,
	 
	 	TRUST, ESTATE OR OTHER ENTITY:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Signature)
	 	Abingworth Bioventures III A L.P.
	 
	 	By:	 	Abingworth Management Ltd.
	 
	 	 	 	its Manager
	 
	 	 	 	 
	 
	 	Print name of entity
	

	 	 	 	 	 	 
	(Printed Name)
	 	By:	 	/s/ James Abell
	 
	 	 	 	 
	 
	 	 	 	Name: James Abell
	 
	 	 	 	 
	 
	 	 	 	Title: Director
	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	England
	 
	 	 
	 
	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 
	Address:
	 	Address:
	 
	 	38 Jermyn Street
	 
	 	 
	 
	 	London
	 
	 	 
	 
	 	SW1Y 6DN
	 
	 	 

 

 

      IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:
	 	IF A CORPORATION, PARTNERSHIP,
	 
	 	TRUST, ESTATE OR OTHER ENTITY:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Signature)
	 	Abingworth Bioventures III B L.P.
	 
	 	By:	 	Abingworth Management Ltd.
	 
	 	 	 	its Manager
	 
	 	 	 	 
	 
	 	Print name of entity
	

	 	 	 	 	 	 
	(Printed Name)
	 	By:	 	/s/ James Abell
	 
	 	 	 	 
	 
	 	 	 	Name: James Abell
	 
	 	 	 	 
	 
	 	 	 	Title: Director
	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	England
	 
	 	 
	 
	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 
	Address:
	 	Address:
	 
	 	38 Jermyn Street
	 
	 	 
	 
	 	London
	 
	 	 
	 
	 	SW1Y 6DN
	 
	 	 

 

 

      IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:
	 	IF A CORPORATION, PARTNERSHIP,
	 
	 	TRUST, ESTATE OR OTHER ENTITY:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Signature)
	 	Abingworth Bioventures III C L.P.
	 
	 	By:	 	Abingworth Management Ltd.
	 
	 	 	 	its Manager
	 
	 	 	 	 
	 
	 	Print name of entity
	

	 	 	 	 	 	 
	(Printed Name)
	 	By:	 	/s/ James Abell
	 
	 	 	 	 
	 
	 	 	 	Name: James Abell
	 
	 	 	 	 
	 
	 	 	 	Title: Director
	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	England
	 
	 	 
	 
	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 
	Address:
	 	Address:
	 
	 	38 Jermyn Street
	 
	 	 
	 
	 	London
	 
	 	 
	 
	 	SW1Y 6DN
	 
	 	 

 

 

      IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:
	 	IF A CORPORATION, PARTNERSHIP,
	 
	 	TRUST, ESTATE OR OTHER ENTITY:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Signature)
	 	Abingworth Bioventures III Executives L.P.
	 
	 	By:	 	Abingworth Management Ltd.
	 
	 	 	 	its Manager
	 
	 	 	 	 
	 
	 	Print name of entity
	

	 	 	 	 	 	 
	(Printed Name)
	 	By:	 	/s/ James Abell
	 
	 	 	 	 
	 
	 	 	 	Name: James Abell
	 
	 	 	 	 
	 
	 	 	 	Title: Director
	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	England
	 
	 	 
	 
	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 
	Address:
	 	Address:
	 
	 	38 Jermyn Street
	 
	 	 
	 
	 	London
	 
	 	 
	 
	 	SW1Y 6DN
	 
	 	 

 

 

      IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:
	 	IF A CORPORATION, PARTNERSHIP,
	 
	 	TRUST, ESTATE OR OTHER ENTITY:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Signature)
	 	Amadeus II “A”
	 
	 	By:	 	Amadeus Capital Partners Limited
	 
	 	 	 	its Manager
	 
	 	 	 	 
	 
	 	Print name of entity
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Printed Name)
	 	By:	 	/s/ H. Hauser
	 
	 	 	 	 
	

	 	 	 	Name:
	 	Hermann Hauser
	

	 	 	 	 	 	 
	

	 	 	 	Title:	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 
	 
	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 
	Address:

	 	Address:
	 	 	 	 
	 
	 	Mt. Pleasant House, 2 Mount Pleasant
	 
	 	 
	 
	 	Huntingdon Road
	 
	 	 
	 
	 	Cambridge CB3 0RN
	 
	 	 
	 
	 	United Kingdom
	 
	 	 

 

 

      IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:
	 	IF A CORPORATION, PARTNERSHIP,
	 
	 	TRUST, ESTATE OR OTHER ENTITY:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Signature)
	 	Amadeus II “B”
	 
	 	By:	 	Amadeus Capital Partners Limited
	 
	 	 	 	its Manager
	 
	 	 	 	 
	 
	 	Print name of entity
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Printed Name)
	 	By:	 	/s/ H. Hauser
	 
	 	 	 	 
	

	 	 	 	Name:
	 	Hermann Hauser
	

	 	 	 	 	 	 
	

	 	 	 	Title:	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 
	 
	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 
	Address:

	 	Address:	 	 	 	 
	 
	 	Mt. Pleasant House, 2 Mount Pleasant
	 
	 	 
	 
	 	Huntingdon Road
	 
	 	 
	 
	 	Cambridge CB3 0RN
	 
	 	 
	 
	 	United Kingdom
	 
	 	 

 

 

      IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:
	 	IF A CORPORATION, PARTNERSHIP,
	 
	 	TRUST, ESTATE OR OTHER ENTITY:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Signature)
	 	Amadeus II “C”
	 
	 	By:	 	Amadeus Capital Partners Limited
	 
	 	 	 	its Manager
	 
	 	 	 	 
	 
	 	Print name of entity
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Printed Name)
	 	By:	 	/s/ H. Hauser
	 
	 	 	 	 
	

	 	 	 	Name:
	 	Hermann Hauser
	

	 	 	 	 	 	 
	

	 	 	 	Title:	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 
	 
	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 
	Address:

	 	Address:	 	 	 	 
	 
	 	Mt. Pleasant House, 2 Mount Pleasant
	 
	 	 
	 
	 	Huntingdon Road
	 
	 	 
	 
	 	Cambridge CB3 0RN
	 
	 	 
	 
	 	United Kingdom
	 
	 	 

 

 

      IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:
	 	IF A CORPORATION, PARTNERSHIP,
	 
	 	TRUST, ESTATE OR OTHER ENTITY:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Signature)
	 	Amadeus II “D” GMBH & CO KG
	 
	 	By:	 	Amadeus Capital Partners Limited
	 
	 	 	 	its Manager
	 
	 	 	 	 
	 
	 	Print name of entity
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Printed Name)
	 	By:	 	/s/ H. Hauser
	 
	 	 	 	 
	

	 	 	 	Name:
	 	Hermann Hauser
	

	 	 	 	 	 	 
	

	 	 	 	Title:	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 
	 
	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 
	Address:

	 	Address:	 	 	 	 
	 
	 	VCM Venture Capital Management and
	 
	 	 
	 
	 	Beteiligungsgesellschaft mbH
	 
	 	 
	 
	 	Max-Joseph Strasse 7, Munich, Germany
	 
	 	 

 

 

      IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:
	 	IF A CORPORATION, PARTNERSHIP,
	 
	 	TRUST, ESTATE OR OTHER ENTITY:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Signature)
	 	Amadeus II Affiliates Fund L.P.
	 
	 	By:	 	Amadeus Capital Partners Limited
	 
	 	 	 	its Manager
	 
	 	 	 	 
	 
	 	Print name of entity
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Printed Name)
	 	By:	 	/s/ H. Hauser
	 
	 	 	 	 
	

	 	 	 	Name:
	 	Hermann Hauser
	

	 	 	 	 	 	 
	

	 	 	 	Title:	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Delaware
	 
	 	 
	 
	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 
	Address:

	 	Address:	 	 	 	 
	 
	 	The Corporation Trust Company
	 
	 	 
	 
	 	1209 Orange Street, Wilmington,
	 
	 	 
	 
	 	New Castle County, Delaware, USA 19801
	 
	 	 

 

 

      IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly
authorized officers to execute this Purchase Agreement as of the date first above written.

	 	 	 	 	 	 	 
	IF AN INDIVIDUAL:
	 	IF A CORPORATION, PARTNERSHIP,
	 
	 	TRUST, ESTATE OR OTHER ENTITY:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	(Signature)
	 	International Biotechnology Trust plc
	 
	 	 
	 
	 	Print name of entity
	 
	 	 	 	 	 	 
	(Printed Name)
	 	By:	 	/s/ Nick Coleman
	 
	 	 	 	 
	

	 	 	 	Name:
	 	Nick Coleman
	

	 	 	 	 	 	 
	

	 	 	 	Title:
	 	 Signatory
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	United Kingdom
	 
	 	 
	 
	 	Print jurisdiction of organization of entity
	 
	 	 	 	 	 	 
	Address:
	 	Address:
	 
	 	c/o Charmaine Obeyschera
	 
	 	 
	 
	 	31 Gresham Street
	 
	 	 
	 
	 	London EC2V 7QA
	 
	 	 
	 
	 	United Kingdom
	 
	 	 

 

 

Exhibit A

FORM OF WARRANT

[The Form of Warrant is filed separately as Exhibit 10.59 of the Company’s Current Report
on Form 8-K, filed on April 22, 2005.]

 

 

Exhibit A-1

Form of SF Capital Warrant 

[The Form of SF Capital Warrant is filed separately as Exhibit 10.60 of the Company’s
Current Report on Form 8-K, filed on April 22, 2005.]

 

 

Exhibit B

INSTRUCTION SHEET FOR PURCHASER

(to be read in conjunction with the entire

Securities Purchase Agreement)

	A.  	Complete the following items in the Securities Purchase Agreement:

	 	1.  	Provide the information regarding the Purchaser requested on the signature
page. The Agreement must be executed by an individual authorized to bind the Purchaser.
	 
	 	2.  	Exhibit B-1 – Stock Certificate Questionnaire:
	 
	 	   	Provide the information requested by the Stock Certificate Questionnaire.
	 
	 	3.  	Exhibit B-2 – Registration Statement Questionnaire:
	 
	 	   	Provide the information requested by the Registration Statement Questionnaire.
	 
	 	4.  	Exhibit B-3 – Purchaser Certificate:
	 
	 	   	Provide the information requested by the Certificate for Individual Purchasers or
the Certificate for Corporate, Partnership, Trust, Foundation and Joint Purchasers,
as applicable.
	 
	 	5.  	Return the signed Securities Purchase Agreement to:

John L. Brottem, Esq.

Cooley Godward llp

Five Palo Alto Square

3000 El Camino Real

Palo Alto, California 94306-2155

Fax: 650-745-3924

	B.  	Instructions regarding the transfer of funds for the purchase of Securities will be
telecopied to the Purchaser at a later date.

	C.  	Upon the resale of the Registrable Shares by the Purchaser after the Registration Statement
covering the Registrable Shares is effective, as described in the Securities Purchase
Agreement, the Purchaser:

	 	(i)  	must deliver a current prospectus to the buyer (prospectuses may be obtained
from the Company at the Purchaser’s request); and

	 	(ii)  	must send a letter in the form of Exhibit E to the Securities Purchase
Agreement to the Company so that the Registrable Shares may be properly transferred.

 

 

Exhibit B-1

SOLEXA, INC.

STOCK CERTIFICATE QUESTIONNAIRE

Pursuant to Section 4.3 of the Agreement, please provide us with the following information:

	 	 	 	 	 
	1.

	 	The exact name that the Securities are to be registered in (this is
the name that will appear on the stock certificate(s)). You may use a
nominee name if appropriate:	 	 
	

	 	 	 	 
	 
	 	 	 	 
	2.

	 	The relationship between the Purchaser of the Securities and the
Registered Holder listed in response to item 1 above:
	 	 
	 
	3.

	 	The mailing address of the Registered Holder listed in response to
item 1 above:	 	 
	

	 	 	 	 
	

	 	 	 	 
	

	 	 	 	 
	

	 	 	 	 
	

	 	 	 	 
	

	 	 	 	 
	

	 	 	 	 
	

	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	4.

	 	The Tax Identification Number of the Registered Holder listed in
response to item 1 above:	 	 
	

	 	 	 	 

B-1

 

Exhibit B-2

SOLEXA, INC.

REGISTRATION STATEMENT QUESTIONNAIRE

     In connection with the preparation of the Registration Statement, please provide us with
the following information regarding the Purchaser.

	A.  	General Information

     1. Please state your organization’s name exactly as it should appear in the Registration
Statement:                                   
                                   

     2. Have you or your organization had any position, office or other material relationship
within the past three years with the Company or its affiliates other than as disclosed in the
Prospectus included in the Registration Statement?

 ̈ Yes        ̈ No

     If yes, please indicate the nature of any such relationships below:

	B.  	Securities Holdings

     Please fill in all blanks in the following questions related to your beneficial ownership
of the Company’s capital stock. Generally, the term “beneficial ownership” refers to any
direct or indirect interest in the securities which entitles you to any of the rights or benefits
of ownership, even though you may not be the holder of record of the securities. For example,
securities held in “street name” over which you exercise voting or investment power would be
considered beneficially owned by you. Other examples of indirect ownership include ownership by a
partnership in which you are a partner or by an estate or trust of which you or any member of your
immediate family is a beneficiary. Ownership of securities held in the names of your spouse, minor
children or other relatives who live in the same household may be attributed to you.

     Please note: If you have any reason to believe that any interest in securities of the
Company which you may have, however remote, is a beneficial interest, please describe such
interest. For purposes of responding to this questionnaire, it is preferable to err on the side of
inclusion rather than exclusion. Where the SEC’s interpretation of beneficial ownership would
require disclosure of your interest or possible interest in certain securities of the Company, and
you believe that you do not actually possess the attributes of beneficial ownership, an appropriate
response is to disclose the interest and at the same time disclaim beneficial ownership of the
securities.

B-2.1

 

     1. As of [___], 2005, I owned outright (including shares registered in my name
individually or jointly with others, shares held in the name of a bank, broker, nominee, depository
or in “street name” for my account), the following number of shares of the Company’s capital stock:
___.

     2. In addition to the number of shares I own outright as indicated by my answer to question
B(1), as of [___], 2005, I had or shared voting power or investment power, directly or
indirectly, through a contract, arrangement, understanding, relationship or otherwise, over the
following number of shares of the Company’s capital stock: ____________.

     If the answer to this question B(2) was not “zero,” please complete the following: with whom
shared; and the nature of the relationship and any underlying voting trust agreement, investment
arrangement or the like:

Shared Voting Power:

	 	 	 	 	 	 	 	 	 	 	 
	Number of Shares	 	 	With Whom Shared	 	 	 	Nature of Relationship	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 

Shared Investment Power:

	 	 	 	 	 	 	 	 	 	 	 
	Number of Shares	 	 	With Whom Shared	 	 	 	Nature of Relationship	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 

     3. As of [___], 2005, I will have the right to acquire ___shares of the
Company’s capital stock pursuant to outstanding stock options issued under the Company’s stock
option plans and ___shares pursuant to the exercise of outstanding warrants (none, indicated by
“0” above).

	 	 	 	 
	Options and Warrants
	Class	 	 	Number of Shares
	 

	 	 	 
	 
	 	 	 
	 
	 	 	 
	 
	 	 	 

B-2.2

 

     (4) Please identify the natural person or persons who have voting and/or investment control
over the Company’s securities that you own, and state whether such person(s) disclaims beneficial
ownership of the securities. For example, if you are a general partnership, please identify the
general partners in the partnership.

	 	 	 
	 
	 	 
	 
	 
	 	 
	 
	 
	 	 
	 
	 
	 	 
	 
	 
	 	 
	 
	 
	 	 
	 

B-2.3

 

C. NASD Questions

     1. Are you (i) a “member”1 of the National Association of Securities
Dealers, Inc. (the “NASD”), (ii) an “affiliate”2 of a member of the NASD, (iii) a
“person associated with a member” or an “associated person of a member”3 of the NASD or
(iv) an immediate family member4 of any of the foregoing persons? If yes, please
identify the member and describe such relationship (whether direct or indirect), and please respond
to Question Number 2 below; if no, please proceed directly to Question Number 3.

Yes _____                     No _____

Description:

1
NASD defines a
“member” as
any broker or dealer admitted to membership in the NASD, or any officer or
partner or branch manager of such a member, or any person occupying a similar
status or performing a similar function for such a member.

2The
term
“affiliate” means a
person that directly, or indirectly through one or more intermediaries,
controls, or is controlled by, or is in common control with, the person
specified. Persons who have acted or are acting on behalf of or for the
benefit of a person include, but are not necessarily limited to, directors,
officers, employees, agents, consultants and sales representatives. The
following should apply for purposes of the foregoing:

     (i)
a person should be presumed to control a Member if the person
beneficially owns 10 percent or more the outstanding voting securities of a
Member which is a corporation, or beneficially owns a partnership interest in
10 percent or more of the distributable profits or losses of a Member which is
a partnership;

     (ii)
a Member should be presumed to control a person if the Member and
Persons Associated With a Member beneficially own 10 percent or more of the
outstanding voting securities of a person which is a corporation, or
beneficially own a partnership interest in 10 percent or more of the
distributable profits or losses of a person which is a partnership;

     (iii)
a person should be presumed to be under common control with a Member
if:

     (1)
the same person controls both the Member and another person by
beneficially owning 10 percent or more of the outstanding voting
securities of a Member or person which is a corporation, or by
beneficially owning a partnership interest in 10 percent or more of the
distributable profits or losses of a Member or person which is a
partnership; or

     (2)
a person having the power to direct or cause the direction of the
management or policies of the Member or such person also has the power to
direct or cause the direction of the management or policies of the other entity
in question.

3
The NASD defines a
“person
associated with a member” or an “associated person of a
member” as being every sole proprietor, partner, equity owner, officer,
director or branch manager of any member, or any natural person occupying a
similar status or performing similar functions, or any natural person engaged
in the investment banking or securities business who directly or indirectly
controls or is controlled by such member (for example, any employee), whether
or not any such person is registered or exempt from registration with the NASD.

4
Immediate family includes parents,
mother-in-law, father-in-law, husband or wife, brother or sister,
brother-in-law or sister-in-law, son-in-law or daughter-in-law, and children,
or any other person who is supported, directly or indirectly, to a material
extent, by a person associated with a member of the NASD or any other
broker/dealer.

B-2.4

 

     2. If you answered “yes” to Question Number 1, please furnish any information as to whether
any such member intends to participate in any capacity in the private placement, including the
details of such participation:

Description:

     3. Are you or have you been an “underwriter or related person”5 or a person
associated with an underwriter or related person, including, without limitation, with respect to
the proposed public offering? If yes, please identify the underwriter or related person and
describe such relationship (whether direct or indirect).

Yes _____                     No _____

Description:

     4. If known, please describe in detail any underwriting compensations, arrangements or
dealings entered into during the previous twelve months, or proposed to be consummated in the next
twelve months, between (i) any underwriter or related person, member of the NASD, affiliate of a
member of the NASD, person associated with a member or associated person of a member of the NASD or
any immediate family member thereof, on the one hand, and (ii) the Company, or any director,
officer or stockholder thereof, on the other hand, which provides for the receipt of any item of
value and/or the transfer of any warrants, options or other securities from the Company to any such
person (other than the information relating to the arrangements with any investment firm or
underwriting organization which may participate in the proposed public offering).

Description:

     5. Have you purchased the securities in the ordinary course of business ?

Yes _____                     No _____

5 The term “underwriter or related
person” includes underwriters, underwriters’ counsel, financial
consultants and advisors, finders, members of the selling or distribution
group, and any and all other persons associated with or related to any of such
persons, including members of the immediate family of such persons.

B-2.5

 

     The answers to the foregoing questions are correctly stated to the best of my information and
belief. I shall advise John L. Brottem at (650) 843-5358, the Company’s outside counsel, promptly
of any changes in the foregoing information prior to the effectiveness of the registration
statement.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(Print name of Selling Security Holder)	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(Signature)	 	 
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 	 	 	 	 
	 	 	(Name and title of signatory, if stockholder is an entity)	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(Date)	 	 

B-2.6

 

Exhibit B-3

SOLEXA, INC.

CERTIFICATE FOR INDIVIDUAL PURCHASERS

     If the investor is an individual Purchaser (or married couple) the Purchaser must
complete, date and sign this Certificate.

Certificate

     I certify that the representations and responses below are true and accurate:

     In order for the Company to offer and sell the Securities in conformance with state and
federal securities laws, the following information must be obtained regarding your investor status.
Please initial each category applicable to you as an investor in the Company.

     ___(1) A natural person whose net worth1, either individually or jointly with
such person’s spouse exceeds $1,000,000;

     ___(2) A natural person who had an income2 in excess of $200,000, or joint
income with the person’s spouse in excess of $300,000, in 2003 and 2004, and reasonably expects to
have individual income reaching the same level in 2005;

     ___(3) An executive officer or director of the Company.

	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	

	 	 
	 	 	 	 
	

	 	 	 	 	 	Name(s) of Purchaser
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	 	 	 	 	Signature
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	 	 	 	 	Signature

1 For purposes of this Certificate,
“net worth” means the excess of total assets at fair market value
over total liabilities, except that the principal residence owned by a natural
person shall be valued either (a) at cost, including the cost of improvements,
net of current encumbrances upon the property, or (b) at the appraised value of
the residence as determined upon a written appraisal used by an institutional
lender making a loan to the individual secured by the property, including the
cost of subsequent improvements, net of current encumbrances upon the property.
As used in the preceding sentence, “institutional lender” means a
bank, savings and loan company, industrial loan company, credit union or
personal property broker or a company whose principal business is as a lender
of loans secured by real property and which has such loans receivable in the
amount of $2,000,000 or more.

2 For purposes of this Certificate,
“income” means adjusted gross income, as reported for federal
income tax purposes, increased by the following amounts: (a) the amount of any
tax exempt interest income received, (b) the amount of losses claimed as a
limited partner in a limited partnership, (c) any deduction claimed for
depletion, (d) amounts contributed to an IRA or Keogh retirement plan, (e)
alimony paid, and (f) any amounts by which income from long-term capital gains
has been reduced in arriving at adjusted gross income pursuant to the
provisions of Section 1202 of the Internal Revenue Code.

B-3

 

Exhibit B-4

SOLEXA, INC.

CERTIFICATE FOR CORPORATE, PARTNERSHIP,

TRUST, FOUNDATION, AND JOINT PURCHASERS

     If the investor is a corporation, partnership, trust, pension plan, foundation, joint
purchaser (other than a married couple) or other entity, an authorized officer, partner, or trustee
must complete, date and sign this Certificate.

Certificate

     The undersigned certifies that the representations and responses below are true and accurate:

     (a) The investor has been duly formed and is validly existing and has full power and authority
to invest in the Company. The person signing on behalf of the undersigned has the authority to
execute and deliver the Securities Purchase Agreement on behalf of the Purchaser and to take other
actions with respect thereto.

     (b) Indicate the form of entity of the undersigned:

	 	 	 	 	 
	

	 	 ̈
	 	Limited Partnership
	 
	 	 	 	 
	

	 	 ̈
	 	General Partnership
	 
	 	 	 	 
	

	 	 ̈
	 	Corporation
	 
	 	 	 	 
	

	 	 ̈
	 	Revocable Trust (identify each grantor and indicate under what circumstances
the trust is revocable by the
grantor: 
	 
	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 
	

	 	 	 	(Continue on a separate piece of paper, if necessary.)
	 
	 	 	 	 
	

	 	 ̈
	 	Other Type of Trust (indicate type of trust and, for trusts other than
pension trusts, name the grantors and beneficiaries:
	 
	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 
	

	 	 	 	(Continue on a separate piece of paper, if necessary.)
	 
	 	 	 	 
	

	 	 ̈
	 	Other form of organization (indicate form of organization (                                        ).

B-4.2

 

     (c) Indicate the approximate date the undersigned entity was formed:                                         .

     (d) In order for the Company to offer and sell the Securities in conformance with state and
federal securities laws, the following information must be obtained regarding your investor status.
Please initial each category applicable to you as an investor in the Company.

     ___ (1) A bank as defined in Section 3(a)(2) of the Securities Act, or any savings
and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities
Act whether acting in its individual or fiduciary capacity;

     ___ (2) A broker or dealer registered pursuant to Section 15 of the Securities
Exchange Act of 1934;

     ___ (3) An insurance company as defined in Section 2(13) of the Securities Act;

     ___ (4) An investment company registered under the Investment Company Act of 1940
or a business development company as defined in Section 2(a)(48) of that Act;

     ___ (5) A Small Business Investment Company licensed by the U.S. Small Business
Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958;

     ___ (6) A plan established and maintained by a state, its political subdivisions,
or any agency or instrumentality of a state or its political subdivisions, for the benefit
of its employees, if such plan has total assets in excess of $5,000,000;

     ___ (7) An employee benefit plan within the meaning of the Employee Retirement
Income Security Act of 1974, if the investment decision is made by a plan fiduciary, as
defined in Section 3(21) of such act, which is either a bank, savings and loan association,
insurance company, or registered investment adviser, or if the employee benefit plan has
total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions
made solely by persons that are accredited investors;

     ___ (8) A private business development company as defined in Section 202(a)(22) of
the Investment Advisers Act of 1940;

     ___ (9) An organization described in Section 501(c)(3) of the Internal Revenue
Code, a corporation, Massachusetts or similar business trust, or partnership, not formed for
the specific purpose of acquiring the Securities, with total assets in excess of $5,000,000;

     ___ (10) A trust, with total assets in excess of $5,000,000, not formed for the
specific purpose of acquiring the Securities, whose purchase is directed by a sophisticated
person who has such knowledge and experience in financial and business matters that such
person is capable of evaluating the merits and risks of investing in the Company;

B-4.2

 

     ___  
(11) An entity in which all of the equity owners qualify under any of the above
subparagraphs. If the undersigned belongs to this investor category only, list the equity
owners of the undersigned, and the investor category which each such equity owner satisfies:

	 	 	 
	

	 	 
	 
	 	 
	

	 	 
	 
	 	 
	

	 	 
	 
	 	 
	

	 	 
	

	 	(Continue on a separate piece of paper, if necessary.)

	 	 	 	 	 
	Dated:

	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	Name of investor	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	Signature and title of authorized

officer, partner or trustee	 	 

B-4.2

 

Exhibit C

OPINION OF COMPANY COUNSEL

April [__], 2005

To the Purchasers listed on Exhibit A hereto

Re: Solexa, Inc. Private Placement

Dear Ladies and Gentlemen:

     We have acted as counsel for Solexa, Inc., a Delaware corporation (the “Company”), in
connection with the issuance and sale of [                    ] shares of the Company’s common stock, par
value $0.01 per share (“Common Stock”) (the “Shares”) and warrants (the “Warrants”) to purchase an
aggregate of up to [___] shares of Common Stock (the “Warrant Shares” and collectively with the
Shares and Warrants, the “Securities”), to the Purchasers at the First Closing under that certain
Securities Purchase Agreement dated as of April [___], 2005 (the “Purchase Agreement”). We are
rendering this opinion pursuant to Section [5.4] of the Purchase Agreement. Except as otherwise
defined herein, capitalized terms used but not defined herein have the respective meanings given to
them in the Purchase Agreement.

     In connection with this opinion, we have examined and relied upon the representations and
warranties as to factual matters contained in and made pursuant to the Purchase Agreement by the
various parties and originals or copies certified to our satisfaction, of such records, documents,
certificates, opinions, memoranda and other instruments as in our judgment are necessary or
appropriate to enable us to render the opinion expressed below.

     As to certain factual matters, we have relied upon certificates of officers of the Company and
have not sought to independently verify such matters. Where we render an opinion “to our
knowledge” or concerning an item “known to us” or our opinion otherwise refers to our knowledge, it
is based solely upon (i) an inquiry of attorneys within this firm who have represented the Company
in this transaction, (ii) receipt of a certificate executed by an officer of the Company covering
such matters, and (iii) such other investigation, if any, that we specifically set forth herein.

     In rendering this opinion, we have assumed: the authenticity of all documents submitted to us
as originals; the conformity to originals of all documents submitted to us as copies; the accuracy,
completeness and authenticity of certificates of public officials; the due authorization, execution
and delivery of all documents (except the due authorization, execution and delivery by the Company
of the Purchase Agreement and the Warrants (together, the “Financing Agreements”)), where
authorization, execution and delivery are prerequisites to the effectiveness of such documents; and
the genuineness and authenticity of all signatures on original documents (except the signatures on
behalf of the Company on the Financing Agreements). We have also assumed: that all individuals
executing and delivering documents had the legal capacity to so execute and deliver; that the
Financing Agreements are obligations binding upon the parties thereto other than the Company; that
the parties to the Financing Agreements other than the Company have filed any required California
franchise or income tax returns and have paid any required California franchise or income taxes;
and that there are no extrinsic agreements or

C-1

 

understandings among the parties to the Financing Agreements that would modify or interpret
the terms of the Financing Agreements or the respective rights or obligations of the parties
thereunder.

     Our opinion is expressed only with respect to the federal laws of the United States of America
and the laws of the State of California and the General Corporation Law of the State of Delaware.
We express no opinion as to whether the laws of any particular jurisdiction apply, and no opinion
to the extent that the laws of any jurisdiction other than those identified above are applicable to
the subject matter hereof.

     We are not rendering any opinion as to any statute, rule, regulation, ordinance, decree or
decisional law relating to antitrust, banking, land use, environmental, pension, employee benefit,
tax, fraudulent conveyance, usury, laws governing the legality of investments for regulated
entities, regulations T, U or X of the Board of Governors of the Federal Reserve System or local
law. Furthermore, we express no opinion with respect to compliance with antifraud laws, rules or
regulations relating to securities or the offer and sale thereof; compliance with fiduciary duties
by the Company’s Board of Directors or stockholders; compliance with safe harbors for disinterested
Board of Director or stockholder approvals; compliance with state securities or blue sky laws
except as specifically set forth below; compliance with the Investment Company Act of 1940;
compliance with laws that place limitations on corporate distributions; the enforceability of
provisions in the Financing Agreements concerning the voting of the Company’s capital stock (other
than solely administrative obligations of the Company).

     With regard to our opinion in paragraphs 1 and 3 below with respect to the good standing of the
Company, we have relied solely upon certificates of the Secretaries of State of the indicated
jurisdictions as of a recent date.

     With regard to our opinion in paragraph 3 below with respect to the Company’s qualifications to do
business as a foreign corporation, we have based our opinion solely upon a certificate of an
officer of the Company as to the states in which the Company maintains an office, has employees or
owns or leases property, and an examination of the status of the Company in such states.

     With regard to our opinion in paragraph 6 below, we have examined and relied upon a certificate
executed by an officer of the Company, to the effect that the consideration for all outstanding
shares of capital stock of the Company was received by the Company in accordance with the
provisions of the applicable Board of Directors resolutions and any plan or agreement relating to
the issuance of such shares, and we have undertaken no independent verification with respect
thereto.

     With regard to our opinion in paragraph 6 below with respect to securities of the Company to
be issued after the date hereof, we express no opinion to the extent that, notwithstanding its
current reservation of shares of Common Stock, future issuance of securities of the Company or
anti-dilution adjustments to outstanding securities of the Company cause the Warrants to be
convertible for more shares of Common Stock than the number that then remain authorized but
unissued.

C-1.4

 

     With regard to our opinion in paragraph 8 below with respect to pending or overtly threatened
litigation, we have made an inquiry of the attorneys within this firm who have represented the
Company in this transaction, examined and relied upon a certificate executed by an officer of the
Company covering such matters, and checked the records of this firm to ascertain that we are not
acting as counsel of record for the Company in any such matter. We have made no further
investigation.

     With regard to our opinion in paragraph 10 with respect to exemption from registration, no
opinion is expressed with respect to the integration of the offer and sale of the Shares with any
offers or sales of securities occurring prior to or subsequent to the date hereof.

     On the basis of the foregoing, in reliance thereon and with the foregoing qualifications, we
are of the opinion that:

	1.  	The Company has been duly incorporated and is a validly existing corporation in good standing
under the laws of the State of Delaware.
	 
	2.  	The Company has the requisite corporate power to own its property and assets and to conduct
its business as it is currently being conducted.
	 
	3.  	The Company is duly qualified to do business as a foreign corporation and is in good standing
under the laws of California.
	 
	4.  	The Company has the corporate power to execute, deliver and perform its obligations under the
Financing Agreements.
	 
	5.  	Each of the Financing Agreements has been duly and validly authorized, executed and delivered
by the Company and each such agreement constitutes a valid and binding agreement of the
Company enforceable against the Company in accordance with its respective terms, except as
rights to indemnity and contribution under section [7.3] of the Purchase Agreement may be
limited by applicable laws and except as enforcement may be limited by applicable bankruptcy,
insolvency, reorganization, arrangement, moratorium or other similar laws affecting creditors’
rights, and subject to general equity principles and to limitations on availability of
equitable relief, including specific performance.
	 
	6.  	The Company’s authorized capital stock consists of sixty million (60,000,000) shares of
Common Stock, of which (excluding the Shares to be issued at First Closing) seventeen million
six hundred six thousand four hundred seventy-one (17,606,471) shares are issued and
outstanding, and (b) two million (2,000,000) shares of Preferred Stock, par value $0.01 per
share, of which none are issued and outstanding. The outstanding shares of Common Stock have
been duly authorized and validly issued and are fully paid and nonassessable. The Shares and
Warrant Shares have been duly authorized and the Warrant Shares have been reserved for
issuance upon exercise of the Warrants. The Shares and Warrants, when issued, sold and
delivered against payment therefor in accordance with the terms of the Purchase Agreement and
the Warrant Shares, if issued on the date hereof upon exercise of the Warrants and payment
therefor in accordance with the terms of the Warrants, will be validly issued, outstanding,
fully paid and

C-1.4

 

nonassessable. To our knowledge, except as provided in the SEC Documents, the Financing
Agreements or the Disclosure Schedule, there are no options, warrants, conversion
privileges, preemptive rights or other rights presently outstanding to purchase any of the
authorized but unissued capital stock of the Company.

	7.  	The execution and delivery of the Financing Agreements by the Company and the issuance of the
Shares and Warrants pursuant thereto do not violate any provision of the Company’s Amended and
Restated Certificate of Incorporation, as amended, or Bylaws, as amended, and do not violate
(a) any governmental statute, rule or regulation which in our experience is typically
applicable to transactions of the nature contemplated by the Financing Agreements or (b) any
order, writ, judgment, injunction, decree, determination or award which has been entered
against the Company and of which we are aware, in each case to the extent the violation of
which would materially and adversely affect the Company and its subsidiaries, taken as a
whole.
	 
	8.  	To our knowledge, there is no action, proceeding or investigation pending or overtly
threatened against the Company before any court or administrative agency that questions the
validity of the Purchase Agreement or that could reasonably be expected to result, either
individually or in the aggregate, in a material adverse effect on the Company and its
subsidiaries, taken as a whole that has not been disclosed in writing to the Investors.
	 
	9.  	All consents, approvals, authorizations, or orders of, and filings, registrations, and
qualifications with any U.S. Federal or California regulatory authority or governmental body
required for the issuance of the Shares and Warrants, have been made or obtained, except (a)
for the filing of a Form D pursuant to Securities and Exchange Commission Regulation D and (b)
for the filing of the notice to be filed under California Corporations Code Section
25102.1(d).
	 
	10.  	The offer and sale of the Shares and Warrants are exempt from the registration requirements
of the Securities Act of 1933, as amended, subject to the timely filing of a Form D pursuant
to Securities and Exchange Commission Regulation D.

     This opinion is intended solely for your benefit and is not to be made available to or be
relied upon by any other person, firm, or entity without our prior written consent.

Very truly yours,

Cooley Godward llp

	 	 	 	 	 
	By:

	 	 	 	 
	

	 	 	 	 
	

	 	          James C. Kitch	 	 

C-1.4

 

Exhibit D

SOLEXA, INC.

IMPORTANT — DO NOT REMOVE THIS INSTRUCTION SHEET FROM THE ATTACHED SHARE CERTIFICATE UNLESS
AND UNTIL THE SHARES ARE SOLD AS FOLLOWS:

(1) THE SHARES ARE RESOLD PURSUANT TO THE REGISTRATION STATEMENT ON FORM S-3 (NO.
[                                        ]), AND, IN CONNECTION WITH SUCH RESALE, THE HOLDER HAS DELIVERED TO THE PURCHASER
OF THE SHARES A CURRENT PROSPECTUS AND HAS PROVIDED TO THE COMPANY OR TO THE TRANSFER AGENT FOR THE
COMPANY’S STOCK A PURCHASER’S CERTIFICATE OF SUBSEQUENT SALE; OR

(2) THE SHARES ARE RESOLD IN A TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT OF 1933, AS AMENDED, PROVIDED THAT, PRIOR TO SUCH RESALE, THE HOLDER HAS NOTIFIED
THE COMPANY OF SUCH DISPOSITION AND PROVIDED THE COMPANY WITH WRITTEN ASSURANCES, IN FORM AND
SUBSTANCE SATISFACTORY TO THE COMPANY OF COMPLIANCE WITH THE REQUIREMENTS OF SUCH EXEMPTION.

DO NOT REMOVE THIS INSTRUCTION SHEET FROM

THE ATTACHED SHARE CERTIFICATE

EXCEPT IN ACCORDANCE WITH

THE INSTRUCTIONS SET FORTH ABOVE.

D-1

 

Exhibit E

PURCHASER’S CERTIFICATE OF SUBSEQUENT SALE

To: Cooley Godward llp

Attention: John Ketchum, Esq.

The undersigned, the selling securityholder or an officer of, or other duly authorized person,hereby certifies that

                                                                                                     represents that it has sold

            [fill in name of selling securityholder]

shares of the Common Stock of Solexa, Inc. and that such shares were sold on

                                         either (i) in accordance with the registration statement on Form S-3 with

            [date]

file number [                                        ], in which case the selling securityholder certifies that the
requirement of delivering a current prospectus has been complied with or will be complied with in
connection with such sale, or (ii) in accordance with Rule 144 under the Securities Act of 1933
(“Rule 144”), in which case the selling securityholder certifies that it has complied with the
requirements of Rule 144.

Print or type:

	 	 	 
	Number of shares sold (if sold on multiple dates, please provide a
breakdown by date):
	 	 
	

	 	 
	 
	 	 
	Name of selling securityholder:
	 	 
	

	 	 
	 
	 	 
	Name of individual representing selling securityholder (if an
institution):
	 	 
	

	 	 
	 
	 	 
	Title of individual representing selling securityholder (if an
institution):
	 	 
	

	 	 

Signature by:

	 	 	 
	Selling securityholder or individual representative:
	 	 
	

	 	 

E-1

 

Exhibit F

Form of Amended and Restated Company Support Agreement

[The Form of Amended and Restated Company Support Agreement is filed separately as Exhibit
99.1 of the Company’s Current Report on Form 8-K, filed on April 22, 2005.]

E-2

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