Document:

Exhibit 10.3

Exhibit 10.3

PURCHASE AGREEMENT

THIS PURCHASE AGREEMENT (this “Agreement”) is made as of June 7, 2011, between Somaxon
Pharmaceuticals, Inc., a corporation organized under the laws of the State of Delaware (the
“Company”), and Paladin Labs Inc., a corporation organized under the laws of Quebec (the
“Purchaser”).

WHEREAS, the parties desire that, upon the terms and subject to the conditions and limitations
set forth herein, the Company shall issue and sell to the Purchaser, as provided herein, and the
Purchaser shall purchase from the Company, the Shares (as defined below); and

WHEREAS, such issuances will be made in reliance upon the provisions of Section 4(2)
(“Section 4(2)”) and Regulation D (“Regulation D”) of the United States Securities
Act of 1933, as amended, and the rules and regulations promulgated thereunder (the “Securities
Act”), and/or upon such other exemption from the registration requirements of the Securities
Act as may be available with respect to any or all of the issuances of the Shares to be made
hereunder; and

WHEREAS, the parties hereto are concurrently entering into a License Agreement (the
“License Agreement”) and a Supply Agreement (the “Supply Agreement”). Defined
terms used without definition in this Agreement shall have the meaning given them in the License
Agreement or the Supply Agreement, as applicable.

NOW, THEREFORE, IN CONSIDERATION of the mutual agreements and covenants contained in this
Agreement, the Company and the Purchaser agree as follows:

SECTION 1. Authorization of Sale of the Shares. Subject to the terms and conditions
of this Agreement, the Company has authorized the issuance and sale to the Purchaser of an
aggregate number of shares of the Company’s common stock, par value $0.0001 per share (“Common
Stock”) equal to the number obtained by dividing (a) US$5,000,000.00 by (b) the Purchase Price
(as defined below) (the shares of Common Stock to be sold under this Agreement shall be referred to
herein as the “Shares”).

SECTION 2. Agreement to Sell and Purchase the Shares. At the Closing (as defined in
Section 3), the Company will sell to the Purchaser, and the Purchaser will buy from the Company,
upon the terms and conditions hereinafter set forth, (a) the Shares at a price per share (the
“Purchase Price”) equal to the arithmetic mean of the daily closing price of the Common
Stock reported by the Nasdaq Stock Market (“Nasdaq”) beginning on May 27, 2011 and
continuing through and including June 7, 2011.

 

 

 

SECTION 3. Delivery of the Shares at the Closing.

3.1 Closing. The completion of the purchase and sale of the Shares (the
“Closing”) shall occur at the offices of Latham & Watkins LLP located at 12636 High Bluff
Drive, Suite 400, San Diego, California 92130, on the third business day following the date
hereof (the “Closing Date”) at 10:00 a.m. California time or at such other time as the
Company and the Purchaser agree. At the Closing, the Company shall deliver to the Purchaser (a) a
stock certificate registered in the name of the Purchaser representing the number of Shares set
forth in Section 1 above and bearing appropriate legends referring to the fact that the Shares were
sold in reliance upon an exemption from registration under the Securities Act and (b) an opinion of
Latham & Watkins LLP, special counsel to the Company, addressed to the Purchaser with respect to
the matters set forth on Exhibit A attached hereto. The Purchaser’s obligation to complete
the purchase and sale of the Shares at the Closing shall be subject to the following conditions,
any one or more of which may be waived by the Purchaser: (A) the Purchaser’s receipt of the stock
certificate and opinion referred to above; and (B) the Company’s fulfillment in all material
respects of all other representations, warranties and covenants and agreements of the Company to be
fulfilled as of or prior to the Closing under this Agreement. The Company’s obligation to complete
the purchase and sale of the Shares and deliver such stock certificate and opinion to the Purchaser
at the Closing shall be subject to the following conditions, any one or more of which may be waived
by the Company: (A) the Company’s receipt of same-day funds in the full amount of the purchase
price for the Shares being purchased hereunder; and (B) the Purchaser’s fulfillment in all material
respects of those undertakings of the Purchaser to be fulfilled prior to the Closing under this
Agreement.

3.2 Allocation of Purchase Price. The Company and the Purchaser, as a result of arm’s
length bargaining, agree that (a) neither the Purchaser nor any of its Affiliates have rendered
services to the Company in connection with this Agreement, and (b) except as otherwise required by
a final “determination” within the meaning of Section 1313(a)(1) of the Code, all tax returns and
other information returns of each party relative to this Agreement, the Shares issued pursuant
hereto shall consistently reflect the matters agreed to in clause (a) of this Section 3.2.

SECTION 4. Representations, Warranties and Covenants of the Company. The Company
hereby represents and warrants to, and covenants with, the Purchaser, as of the date hereof and as
of the Closing Date, as follows:

4.1 Organization and Qualification. The Company is a corporation duly incorporated,
validly existing and in good standing under the laws of the State of Delaware and has all requisite
corporate power and authority to carry on its business as now conducted and as proposed to be
conducted. The Company is qualified to do business as a foreign corporation in each jurisdiction
in which qualification is required, except where failure to so qualify would not be reasonably
expected to have a material adverse effect upon the business, condition (financial or otherwise),
properties or operations of the Company, taken as a whole (a “Material Adverse Effect”).
The Company has no subsidiaries.

 

-2-

 

4.2 Due Execution, Delivery and Performance of this Agreement. The Company has
corporate power and authority (i) to enter into this Agreement and perform the transactions
contemplated hereby; (ii) to issue the Shares, in the manner and for the purpose contemplated by
this Agreement; and (iii) to execute, deliver and perform its obligations under all other
agreements and instruments executed and delivered by it pursuant to or in connection with this
Agreement. All corporate action on the part of the Company, its officers, directors and
stockholders necessary for the authorization, execution and delivery of this Agreement, the
performance of all obligations of the Company hereunder has been taken or will be taken prior to
the Closing. This Agreement have been duly authorized, executed and delivered by the Company. The
execution, delivery and performance of this Agreement by the Company and the consummation of the
transactions herein contemplated (i) will not conflict with, result in the breach or violation of,
or constitute, either by itself or upon notice or the passage of time or both, a default under, and
will not result in the creation of any lien, charge, security interest or encumbrance upon any
assets of the Company pursuant to the terms or provisions of (A) any material agreement, mortgage,
deed of trust, lease, franchise, license, indenture, permit or other instrument to which the
Company is a party or by which the Company or any of its properties may be bound or affected, or
(B) any law (including any common law), statute, ordinance, code, rule or regulation, or any
judgment, decree, order, rule or regulation of any court or any regulatory body, administrative
agency or other governmental body (including any self-regulatory organization) applicable to the
Company or any of its assets or properties (provided, however, that with respect to the sale of the
Shares hereunder being made in a transaction exempt from registration under the Securities Act, the
Company assumes the accuracy of the representations and warranties of the Purchaser in Section 5.2
of this Agreement), and (ii) will not violate any provision of the certificate of incorporation or
bylaws of the Company. No consent, approval, authorization or other order of any court, regulatory
body, administrative agency or other governmental body (including any self-regulatory organization)
is required for the execution and delivery of this Agreement or the consummation of the
transactions contemplated by this Agreement, except such as have been obtained under the federal or
state securities or Blue Sky laws or as shall be obtained following the Closing as permitted by and
pursuant to such laws. Upon the execution and delivery of this Agreement, and assuming the valid
execution of the Agreement by the Purchaser, this Agreement will constitute a valid and binding
obligation of the Company, enforceable in accordance with its terms, except as enforceability may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting enforcement of creditors’ rights generally and except as enforceability may be limited by
laws relating to the availability of specific performance, injunctive relief or other equitable
remedies.

4.3 Valid Issuance of Shares. The Shares, when issued and paid for in compliance with
the provisions of this Agreement, will be validly issued, fully paid and non-assessable. Assuming
the accuracy of the representations of Purchaser in this Agreement, the offer, issuance and sale of
the Shares pursuant to this Agreement will be in compliance with all applicable federal and state
securities laws and will be free of any liens or encumbrances; provided, however, that the
Shares may be subject to restrictions on transfer under state and/or federal securities laws as set
forth herein, and as may be required by future changes in such laws.

4.4 No Actions. Except as disclosed in the Company SEC Reports (as defined below),
there are no legal, arbitration, administrative or governmental claims, actions, suits or other
proceedings pending or, to the Company’s knowledge, threatened in writing involving the Company,
nor is there any injunction, order, judgment, ruling or decree imposed (or, to the knowledge of the
Company, threatened to be imposed) upon the Company or any of its assets by or before any
governmental body, in each case which, individually or in the aggregate, would reasonably be
expected to have a Material Adverse Effect or would reasonably be expected to
result in the issuance of an order restraining, enjoining or otherwise prohibiting or making
illegal the consummation of any of the transactions contemplated by this Agreement.

 

-3-

 

4.5 SEC Reports and Financial Statements. Each form, report, schedule, registration
statement, definitive proxy statement and other document (together with all amendments thereof and
supplements thereto) filed by the Company with the SEC since January 1, 2010 (in the case of any
registration statement, as of its effective date, and with respect to all documents filed by the
Company with the SEC, as of their respective filing dates and thereafter as of the date such
documents have since the time of their filing been amended or supplemented, the “Company SEC
Reports”), which are all the documents (other than preliminary material) that the Company was
required to file with the SEC since such date, (i) complied in all material respects with the
requirements of the Securities Act, the Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated thereunder (the “Exchange Act”), and the Sarbanes-Oxley Act, as
the case may be, (ii) did not contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary in order to make the statements therein,
in light of the circumstances under which they were made, not misleading, and (iii) were timely
filed with the SEC. The audited financial statements and unaudited interim financial statements
(including, in each case, the notes, if any, thereto) included in the Company SEC Reports (the
“Company Financial Statements”) complied as to form in all material respects with the
published rules and regulations of the SEC with respect thereto, were prepared in accordance with
GAAP applied on a consistent basis during the periods involved (except as may be indicated therein
or in the notes thereto and except with respect to unaudited statements as permitted by Form 10-Q
of the SEC) and fairly present (subject, in the case of the unaudited interim financial statements,
to normal, recurring year-end audit adjustments (which are not expected to be, individually or in
the aggregate, materially adverse to Company taken as a whole)) in all material respects the
financial position of Company as at the respective dates thereof and the results of operations and
cash flows for the respective periods then ended. As of the date of this Agreement, there are no
outstanding or unresolved comments received from the SEC staff with respect to the Company SEC
Reports. To the knowledge of the Company, none of the Company SEC Reports is the subject of any
ongoing SEC review or investigation.

4.6 Absence of Certain Changes or Events. Except as disclosed in the Company SEC
Reports, since December 31, 2010, there has not been any change, event or development that has had,
or that is likely to have, individually or in the aggregate, a Material Adverse Effect (excluding
any effect of this Agreement, the License Agreement or the Supply Agreement being entered into
concurrently with this Agreement).

4.7 Absence of Undisclosed Liabilities. Except for matters reflected or reserved
against in the balance sheet for the period ended December 31, 2010, and included in the Company
Financial Statements, the Company did not have at such date, nor has it incurred since that date,
any liabilities or obligations (whether absolute, accrued, contingent, fixed or otherwise, or
whether due or to become due) of any nature that would be required by GAAP to be reflected on a
balance sheet of the Company (including the notes thereto), except liabilities or obligations (i)
which were incurred in the ordinary course of business consistent with past practice, (ii) which
have been reported in the Company SEC Reports, or (iii) which have not had, and are not likely to
have, individually or in the aggregate, a Material Adverse Effect.

 

-4-

 

4.8 Capitalization; Options and Warrants. The authorized capital stock of the Company
consists of 100,000,000 shares of Common Stock, par value $0.0001 per share, and 10,000,000 shares
of Preferred Stock, par value $0.0001 per share. As of May 31, 2011, 45,013,324 shares of the
Common Stock and no shares of Preferred Stock were issued and outstanding. Except for the
transactions contemplated hereby and except as set forth in the Company’s SEC Reports, since
December 31, 2010, the Company has not granted any option (except for stock options granted under
the Company’s stock option plans), warrants, rights (including conversion or preemptive rights,
except for stock purchased under the Company’s employee stock purchase plan), or similar rights to
any person or entity to purchase or acquire any rights with respect to any shares of capital stock
of the Company.

4.9 Nasdaq Capital Market Designation. The Common Stock is currently listed on the
Nasdaq Capital Market and the Company knows of no reason or set of facts which is likely to result
in the termination of listing of the Common Stock on Nasdaq or the inability of such stock to
continue to be listed on Nasdaq. Nothing in this Agreement shall be interpreted to preclude the
Company from listing its Common Stock on a national securities exchange in lieu of Nasdaq.

4.10 Compliance With Laws; Permits. The Company is (and since January 1, 2010 has
been) in compliance in all material respects with all material laws, (including common law),
statutes, ordinances, codes, rules, regulations, judgments, decrees and orders of any regulatory
body, administrative agency or other governmental body (including any self-regulatory organization)
(collectively, “Laws”) applicable to the Company, any of its properties or other assets or any of
its businesses or operations. The Company holds all material licenses, franchises, permits,
certificates, approvals and authorizations from each governmental body, or required by any
governmental body to be obtained, in each case necessary for the lawful conduct of its business and
operations as currently conducted (collectively, “Permits”). The Company is (and since January 1,
2010 has been) in compliance in all material respects with the terms of all Permits. Since January
1, 2010, the Company has not received written notice to the effect that a governmental body (a)
claimed or alleged that the Company was not in compliance with all Laws applicable to the Company,
any of its properties or other assets or any of its business or operations other than as previously
disclosed to Purchaser in writing or (b) was considering the amendment, termination, revocation or
cancellation of any Permit. The consummation of the transactions contemplated hereby, in and of
itself, will not cause the revocation or cancellation of any Permit.

4.11 Material Non-Public Information. Except for this Agreement, and the transactions
contemplated hereby and pursuant to the License Agreement and the Supply Agreement, neither the
Company nor its employees have disclosed to the Purchaser any material non-public information that,
according to applicable law, rule or regulation, should have been disclosed publicly by the Company
prior to the date hereof but which has not been so disclosed.

4.12 No General Solicitation or Advertising in Regard to this Transaction. Neither
the Company nor any of its affiliates or any Person acting on its or their behalf (i) has conducted
any general solicitation (as that term is used in Rule 502(c) of Regulation D) or general
advertising with respect to any of the Shares or (ii) has made any offers or sales of any
security or solicited any offers to buy any security under any circumstances that would
require registration of the Shares under the Securities Act.

 

-5-

 

4.13 Accuracy of Representations and Warranties. No representation or warranty by the
Company contained in this Agreement, and no statement contained in any exhibit, schedule,
disclosure, certificate, list or other instrument delivered or to be delivered to the Purchaser
pursuant hereto contains any untrue statement of a material fact or omits to state any material
fact necessary to make the statements contained herein or therein not misleading.

4.14 Certificate. At the Closing, the Company will deliver to the Purchaser a
certificate executed by the President and the chief financial or accounting officer of the Company
(solely in their capacities as such), dated the Closing Date, in form and substance reasonably
satisfactory to the Purchaser, to the effect that the representations and warranties of the Company
set forth in this Section 4 are true and correct in all material respects as of the Closing Date,
and the Company has complied in all material respects with all the agreements and satisfied all the
conditions herein on its part to be performed or satisfied on or prior to the Closing Date.

SECTION 5. Representations, Warranties and Covenants of the Purchaser.

5.1 Authorization. The Purchaser represents and warrants to, and covenants with, the
Company that (i) the Purchaser has full right, power, authority and capacity to enter into this
Agreement and to consummate the transactions contemplated hereby and has taken all necessary action
to authorize the execution, delivery and performance of this Agreement, and (ii) upon the execution
and delivery of this Agreement, this Agreement shall constitute a legal, valid and binding
obligation of the Purchaser, enforceable in accordance with its terms, except as enforceability may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting enforcement of creditors’ and contracting parties’ rights generally and except as
enforceability may be limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies.

5.2 Representations Regarding Investment Background and Acknowledgments.

(a) The Purchaser represents and warrants to, and covenants with, the Company that: (i) the
Purchaser is knowledgeable, sophisticated and experienced in making, and is qualified to make,
decisions with respect to investments in shares representing an investment decision like that
involved in the purchase of the Shares; (ii) the Purchaser is acquiring the Shares for its own
account for investment only and with no present intention of distributing any of such Shares or any
arrangement or understanding with any other persons regarding the distribution of such Shares;
(iii) the Purchaser will not, directly or indirectly, offer, sell, pledge, sell short, transfer or
otherwise dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge
of) any of the Shares except in compliance with the Securities Act, the Exchange Act, and any
applicable state securities or blue sky laws; and (iv) the Purchaser is an “accredited investor”
within the meaning of Rule 501(a) of Regulation D promulgated under the Securities Act.

 

-6-

 

(b) The Purchaser understands that the Shares are being offered and sold to it in reliance
upon specific exemptions from the registration requirements of the Securities Act, and state
securities laws and that the Company is relying upon the truth and accuracy of, and the Purchaser’s
compliance with, the representations, warranties, agreements, acknowledgments and understandings of
the Purchaser set forth herein in order to determine the availability of such exemptions and the
eligibility of the Purchaser to acquire the Shares.

(c) The Purchaser understands that its investment in the Shares involves a significant degree
of risk and that the market price of the Common Stock has been and continues to be volatile and
that no representation is being made as to the future value or trading volume of the Common Stock.

(d) The 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.

(e) The Purchaser understands that, until such time as the resale of the the Shares is
registered or they 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 Shares may bear restrictive legends in substantially the following form (and a
stop-transfer order may be placed against transfer of the Shares):

“The securities represented by this certificate were issued in a transaction
that was not registered under the Securities Act of 1933, as amended (the
‘Securities Act’) or any state or other securities law. The securities may
not be sold, pledged, transferred or assigned in the absence of an effective
registration statement under the Securities Act, or an opinion of counsel,
in form, substance and scope reasonably acceptable to the Company, that
registration is not required under the Securities Act or unless sold
pursuant to Rule 144 under the Securities Act.”

5.3 Information. The Purchaser and its advisors, if any, have been furnished with all
materials relating to the business, finances and operations of the Company and materials relating
to the offer and sale of the Shares which have been requested by the Purchaser. The Purchaser has
reviewed or received copies of the Company SEC Reports. The Purchaser and its advisors, if any,
have been afforded the opportunity to ask questions of the Company. The Purchaser has sought such
accounting, legal and tax advice as it has considered necessary to make an informed investment
decision with respect to its acquisition of the Shares. The Purchaser understands that it (and not
the Company) shall be responsible for its own tax liabilities that may arise as a result of this
investment or the transactions contemplated by this Agreement.

5.4 Trading Restrictions. The Purchaser covenants that neither the Purchaser nor any
of its affiliates nor any entity managed or controlled by the Purchaser will, or cause or assist
any Person to, enter into or execute any “short sale” (as such term is defined in Rule 200
of Regulation SHO, or any successor regulation, promulgated by the Commission under the
Exchange Act) of any securities of the Company, and that the Purchaser and its affiliates
shall comply with all other applicable laws.

 

-7-

 

5.5 Not an Affiliate. The Purchaser is not an officer, director or “affiliate”
(as defined in Rule 405 of the Securities Act) of the Company.

5.6 Manner of Sale. At no time was Purchaser presented with or solicited by or through
any leaflet, public promotional meeting, television advertisement or any other form of general
solicitation or advertising, in each case, with respect to an offer or sale of the Shares.

5.7 Transfers of Shares in Compliance with Agreements and Law. The Purchaser hereby
covenants with the Company not to make any sale or other transfer of the Shares without complying
in all material respects with the provisions of this Agreement, and the Purchaser acknowledges and
agrees that such Shares are not transferable on the books of the Company unless the certificate
submitted to the transfer agent evidencing the Shares is accompanied by a separate certificate
executed by an officer of, or other authorized person expressly designated by, the Purchaser, to
the effect that the applicable Shares have been sold in accordance with this Agreement, the
Securities Act and any applicable state securities or blue sky laws.

SECTION 6. Stock Ownership Governance.

6.1 Standstill. Until 18 months after the Closing Date (the “Standstill
Term”), except (i) with the prior written consent of the Company or (ii) by way of stock
dividends or other distributions made to the Company’s stockholders generally, the Purchaser will
not, and will not encourage, direct, assist or cause any of its Affiliates, employees,
representatives or agents to, directly or indirectly, subject to Section 6.2:

(a) acquire or agree, offer, seek or propose to acquire ownership (including, but not
limited to, beneficial ownership as defined in Rule 13d-3 under the Exchange Act) of any
voting stock of the Company or securities convertible or exchangeable into or exercisable
for any voting stock of the Company if, as a result of such acquisition, the Purchaser in
the aggregate would own more than 19.9% of the issued and outstanding voting stock of the
Company at the time of such acquisition;

(b) cause to be acquired ownership (including, but not limited to, beneficial ownership
as defined in Rule 13d-3 under the Exchange Act) of any voting stock of the Company or
securities convertible or exchangeable into or exercisable for any voting stock of the
Company if, as a result of such acquisition, the Person acquiring ownership together with
the Purchaser and its Affiliates in the aggregate, would own more than 19.9% of the issued
and outstanding voting stock of the Company at the time of such acquisition;

(c) make, or in any way participate in, any “solicitation” of “proxies” (as such terms
are defined under Regulation 14A of the Exchange Act) to vote or seek to advise or influence
in any manner whatsoever any person with respect to voting stock of the Company;

 

-8-

 

(d) form, join or in any way participate in a “group” (within the meaning of Section
13(d)(3) of the Exchange Act) with respect to any voting stock of the Company (other than a
group consisting solely of Purchaser and its Affiliates with respect to not more than 19.9%
of the issued and outstanding voting stock of the Company);

(e) arrange, or in any way participate in, any financing for the purchase of any voting
stock of the Company or securities convertible or exchangeable into or exercisable for any
voting stock of the Company (other than purchases by the Purchaser and its Affiliates with
respect to not more than 19.9% of the issued and outstanding voting stock of the Company);

(f) otherwise act, whether alone or in concert with others, to seek to propose under
Rule 14a-8 of the Exchange Act to the Company or any of its stockholders any merger,
business combination, restructuring, recapitalization or similar transaction to or with the
Company or induce or attempt to induce any other person to initiate any stockholder
proposal;

(g) call or seek to have called any meeting of the stockholders of the Company or,
unless requested by the Company in writing, execute any written consent in lieu of a meeting
of holders of voting stock of the Company;

(h) seek election or seek to place a representative on the Board of Directors of the
Company (the “Board of Directors”) or seek the removal of any member of the Board of
Directors; or

(i) enter into any discussions, negotiations, arrangements or understandings with or
assist any third party with respect to any of the foregoing.

The Company and the Purchaser acknowledge and agree that the acquisition by any employee benefit
plan of the Purchaser or its Affiliates in any diversified index, mutual or pension fund managed by
an independent investment advisor, which fund in turn holds, directly or indirectly, voting stock
of the Company shall not be deemed to be a breach of this Section 6.1. For clarity, the provisions
of Section 6.1 shall not be construed or interpreted to prohibit the Purchaser or an Affiliate in
any manner from making any bid or offer to license or acquire rights to any asset(s) of the Company
(other than substantially all of the assets of the Company) as opposed to acquiring securities of
the Company if such bid or offer is solicited from the Purchaser or an Affiliate by the Company.
The obligations in Section 6.1 will not prohibit the Purchaser or an Affiliate from confidentially
communicating to the Company’s Chief Executive Officer or Chairman of the Board of Directors a
non-public indication of the Purchaser’s interest in pursuing a potential transaction involving the
Company in such a manner that would not require the Company to make a public disclosure. In
addition, if the Purchaser or an Affiliate acquires securities of, or other ownership interest in,
a third party that directly or indirectly owns any voting stock of the Company, such acquisition
shall not be deemed to be a breach by the Purchaser of the obligations under Section 6.1.

 

-9-

 

6.2 Exceptions to Section 6.1 Standstill Provisions. Notwithstanding the foregoing but
subject to the proviso set forth in clause (d) below, the obligations under Section 6.1 shall
terminate as to the Purchaser and its Affiliates in the event that:

(a) any third party commences an unsolicited tender or exchange offer which, if
successful, would result in such third party beneficially owning not less than 50% of all
outstanding voting stock (on a Common Stock equivalent basis), and such offer is not
withdrawn or terminated within 10 business days after its commencement;

(b) it is publicly disclosed that at least 50% of all outstanding voting stock (on a
Common Stock equivalent basis) has been acquired by any person or group that is unaffiliated
with the Purchaser and its Affiliates;

(c) the Company publicly announces a decision of the Board of Directors to conduct a
formal process to sell all or substantially all of the assets of the Company;
provided that the restrictions in Section 6.1 will automatically be reinstated and
be in full force and effect if and at such time as the Company publicly announces a
termination of such process;

(d) a third party commences a tender offer for more than 50% of the voting stock of the
Company, and the Company has publicly recommended acceptance of such tender offer;
provided, the obligations in Section 6.1 will automatically be reinstated in the
event such tender offer is terminated;

(e) the Company enters into any binding written agreement (i) to sell or dispose of
securities representing at least 50% of all outstanding voting stock (on a Common Stock
equivalent basis) to any person or group that is unaffiliated with the Purchaser and all of
its Affiliates or (ii) providing for a transaction that, if consummated, would result in (A)
the holders of the outstanding voting stock immediately prior to such transaction ceasing to
hold more than 50% of the combined voting power of the surviving, purchasing or continuing
entity immediately after such transaction or (B) the sale of all or substantially all of the
assets of the Company to a third party that does not control, is not controlled by and is
not under common control with the Company;

(f) upon the filing of a preliminary or final proxy statement by any third party with
respect to the commencement of a proxy or consent solicitation subject to Section 14 of the
Exchange Act to elect or remove a majority of the Board of Directors; or

(g) upon the adoption of a plan of liquidation or dissolution with respect to the
Company.

6.3 Additional Restrictions on Transfers of Shares. The Purchaser hereby covenants
with the Company that neither it nor any of its direct or indirect subsidiaries or parent entities
will offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any
option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise
transfer or dispose of, directly or indirectly, or enter into any swap or other arrangement that
transfers to another, in whole or in part, any of the economic consequences of ownership of any
of the Shares, except pursuant to sales of the Shares pursuant to Rule 144 or pursuant to a
registration statement or pursuant to any other transaction for which registration is not required
under the Securities Act.

 

-10-

 

6.4 Notice of Market Sale. With respect to any sale of Shares by the Purchaser
pursuant to Rule 144 involving more than 100,000 Shares sold in such sale transaction, the
Purchaser will notify the Company within two (2) business days after the completion of such sale
transaction.

6.5 Remedies. Without prejudice to the rights and remedies otherwise available to the
parties, the Company shall be entitled to equitable relief by way of injunction if the Purchaser or
any permitted transferee breaches or threatens to breach any of the provisions of this Section 6.

SECTION 7. Additional Covenants of the Company.

7.1 Nasdaq Notice of Issuance. If required, the Company shall give Nasdaq timely
notice of the issuance of the Shares.

7.2 Additional Information. With a view to making available to the Purchaser the
benefits of Rule 144 and any other rule or regulation of the SEC that may at any time permit the
Purchaser to sell securities of the Company to the public without registration, the Company shall:
(a) make and keep available adequate current public information, as those terms are understood and
defined in Rule 144, at all times after the date hereof; (b) use commercially reasonable efforts
to file with the SEC in a timely manner all reports and other documents required of the Company
under the Exchange Act; and (c) so long as the Purchaser owns any Shares, furnish the Purchaser
forthwith upon request (i) to the extent accurate, a written statement by the Company that it has
complied with the reporting requirements of Rule 144, the Securities Act, and the Exchange Act; and
(ii) such other information as may be reasonably requested in availing the Purchaser of any rule or
regulation of the SEC that permits the selling of any such securities without registration.

SECTION 8. Notices. All notices, requests, consents and other communications
hereunder shall be in writing, shall be sent by nationally recognized overnight express courier
postage prepaid, and shall be deemed given upon receipt and shall be delivered as addressed as
follows:

	 	(a)	 	if to the Company, to:
	 
	 	 	 	Somaxon Pharmaceuticals, Inc.

3570 Carmel Mountain Road, Suite 100

San Diego, CA 92130

Attention: General Counsel

Fax: (858) 509-1761

 

-11-

 

	 	 	 	with a copy (which shall not constitute notice) to:
	 
	 	 	 	Latham & Watkins LLP

12636 High Bluff Drive, Suite 400

San Diego, CA 92130

Attention: Faye H. Russell, Esq.

Fax: (858) 523-5450
	 
	 	 	 	or to such other person at such other place as the Company shall
designate to the Purchaser in writing; and
	 
	 	(b)	 	if to the Purchaser, to:
	 
	 	 	 	Paladin Labs Inc

6111 Royalmount Ave.

Suite 102

Montreal, Quebec H4P 2T4

Attention: Vice President, Business Development

Fax: (514) 344-4675
	 
	 	 	 	with a copy (which shall not constitute notice) to:
	 
	 	 	 	Davies Ward Phillips & Vineberg LLP

1501 McGill College Avenue

Suite 2600

Montreal, Quebec H3A 3N9

Attention: Hillel W. Rosen

Fax: (514) 841-6499
	 
	 	 	 	or to such other person at such other place as the Purchaser shall
designate to the Company in writing.

SECTION 9. Entire Agreement. This Agreement, the License Agreement (and the exhibits
thereto) and the Supply Agreement (and the exhibits thereto) contain the entire understanding of
the parties with respect to the specific matters covered herein and therein and, except as
specifically set forth herein or therein, neither the Company nor the Purchaser makes any
representation, warranty, covenant or undertaking with respect to such matters.

SECTION 10. Changes. This Agreement may not be modified or amended except pursuant to
an instrument in writing signed by the Company and the Purchaser.

SECTION 11. Waiver. Any term or condition of this Agreement may be waived at any time
by the party that is entitled to the benefit thereof, but no such waiver shall be effective unless
set forth in a written instrument duly executed by or on behalf of the party waiving such term or
condition. No waiver by any party of any term or condition of this Agreement, in any one or more
instances, shall be deemed to be or construed as a waiver of the same or any other term or
condition of this Agreement on any future occasion. All remedies,
either under this Agreement or by law or otherwise afforded, will be cumulative and not
alternative.

 

-12-

 

SECTION 12. Assignment. Except as otherwise expressly provided herein, the
respective rights and obligations of either party under this Agreement shall not be assignable in
whole or in part by a party without the prior written consent of the other party, which consent
shall not be unreasonably withheld, delayed or conditioned. Notwithstanding the preceding sentence,
in connection with the merger, acquisition, transfer of all or substantially all of a party’s
assets to which the License Agreement relates or other change in control of such party, such party
may assign its rights and obligations under this Agreement in whole (but not in part) to such
party’s transferee or successor in interest without the prior written consent of the other Party.
This Agreement shall bind and inure to the benefit of parties and their permitted successors and
assigns.

SECTION 13. Severability. In case any provision contained in this Agreement should be
invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not in any way be affected or impaired thereby.

SECTION 14. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York and the federal law of the United States of
America, without regard to principles of conflicts of law which would result in the application of
the laws of any other jurisdiction other than the laws of the State of New York and the federal law
of the United States of America.

SECTION 15. Counterparts. This Agreement may be executed in two counterparts, each of
which shall constitute an original, but all of which, when taken together, shall constitute but one
instrument, and shall become effective when one or more counterparts have been signed by each party
hereto and delivered to the other parties. Facsimile signatures shall be deemed original
signatures.

SECTION 16. Headings. The headings of the various sections of this Agreement have
been inserted for convenience of reference only and shall not be deemed to be part of this
Agreement.

SECTION 17. Survival of Warranties; Indemnification. The warranties, representations
and covenants of each party contained in or made pursuant to this Agreement shall survive the
execution and delivery of this Agreement and the Closing, and shall in no way be affected by any
investigation of the subject matter thereof made by or on behalf of the Purchaser or the Company.
Each party hereto shall indemnify and hold harmless the other party hereto for any and all losses
suffered by such other party as a result of, in connection with, or relating to, any breach by such
party of any representation, warranty and/or covenant of such party in this Agreement or in any
certificate, document or other writing delivered by such party to such other party pursuant to this
Agreement.

 

-13-

 

SECTION 18. Finder’s Fee. Each party represents that it neither is nor will be
obligated for any finders’ fee or commission in connection with this transaction. Each party
agrees to indemnify and to hold harmless the other party from any liability for any commission
or compensation in the nature of a finders’ fee (and the costs and expenses of defending against
such liability or asserted liability) for which the indemnifying party or any of its officers,
partners, employees or representatives is responsible.

SECTION 19. Expenses. Irrespective of whether the Closing is effected, each party
shall pay all costs and expenses that it incurs with respect to the negotiation, execution,
delivery and performance of this Agreement. If any action at law or in equity is necessary to
enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to
reasonable attorney’s fees, costs and necessary disbursements in addition to any other relief to
which such party may be entitled.

[Signature Page Follows]

 

-14-

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly
authorized representatives as of the day and year first above written.

	 	 	 	 	 
	 	SOMAXON PHARMACEUTICALS, INC.

 	 
	 	By:  	/s/ Richard W. Pascoe
 	 
	 	 	Name:  	Richard W. Pascoe 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	PALADIN LABS INC.

 	 
	 	By:  	/s/ Mark Nawacki
 	 
	 	 	Name:  	Mark Nawacki 	 
	 	 	Title:  	VP Business & Corporate Development 	 

[SIGNATURE PAGE TO PURCHASE AGREEMENT]

 

 

 

Exhibit A to the Purchase Agreement

Opinions of Latham & Watkins LLP

1. The Company is a corporation duly incorporated under the Delaware General Corporation Law
(“DGCL”) with corporate power and authority to own its properties and to conduct its business as
currently conducted. With your consent, based solely on certificates from public officials as of a
recent date, we confirm that the Company is validly existing and in good standing under the laws of
the State of Delaware.

2. The Shares to be issued and sold by the Company pursuant to the Purchase Agreement have
been duly authorized by all necessary corporate action of the Company and, when issued to and paid
for by you in accordance with the terms of the Purchase Agreement, will be validly issued, fully
paid and nonassessable and free of preemptive rights, rights of first refusal or other similar
rights arising from the Governing Documents or the DGCL.exv10w68

Exhibit 10.68

CYTOKINETICS, INCORPORATED

Common Stock

(par value $0.001 per share)

At the Market Issuance Sales Agreement

June 10, 2011

McNicoll, Lewis & Vlak LLC

1251 Avenue of the Americas, 41st Floor

New York, NY 10020

Ladies and Gentlemen:

     Cytokinetics, Incorporated, a Delaware corporation (the “Company”), confirms its
agreement (this “Agreement”) with McNicoll, Lewis & Vlak LLC (“MLV”), as follows:

     1. Issuance and Sale of Shares. The Company agrees that, from time to time during the
term of this Agreement and on the terms and subject to the conditions set forth herein, it may
issue and sell through MLV, the lesser of $20,000,000 of the Company’s common stock, par value
$0.001 per share (the “Common Stock”), or 19.9% of the number of shares of the Common Stock
outstanding on the date hereof (the “Placement Shares”); provided, however, that in no event shall
the Company issue or sell through MLV such number of Placement Shares that (a) would cause the
Company not to satisfy the eligibility requirements for use of Form S-3 (including instruction
I.B.6 thereof), (b) exceeds the number of shares of Common Stock registered on the effective
Registration Statement (as defined below) pursuant to which the offering is being made, or (c)
exceeds the number of authorized but unissued shares of the Company’s Common Stock (the lesser of
(a), (b) or (c), the “Maximum Amount”). Notwithstanding anything to the contrary contained
herein, the parties hereto agree that compliance with the limitations set forth in this Section
1 on the amount of Placement Shares issued and sold under this Agreement shall be the sole
responsibility of the Company and that MLV shall have no obligation in connection with such
compliance. The issuance and sale of Placement Shares through MLV will be effected pursuant to the
Registration Statement (as defined below) filed by the Company and declared effective by the
Securities and Exchange Commission (the “Commission”), although nothing in this Agreement
shall be construed as requiring the Company to use the Registration Statement to issue any
Placement Shares.

     The Company will file, in accordance with the provisions of the Securities Act of 1933, as
amended (the “Securities Act”), and the rules and regulations thereunder (the
“Securities Act Regulations”), with the Commission a registration statement on Form S-3
substantially in the Form presented to MLV, and which shall incorporate by reference the documents
set forth on Schedule 5 hereto, relating to the Placement Shares to be issued from time to time by
the Company, and which will incorporate by reference documents that the Company has filed or will
file in accordance with the provisions of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), and the rules and regulations thereunder. The Company will furnish to
MLV, for use by MLV, copies of the prospectus included as part of such registration statement
relating

 

 

to the Placement Shares. Except where the context otherwise requires, such registration
statement, including all documents filed as part thereof or incorporated by reference therein, and
including any information contained in a Prospectus (as defined below) subsequently filed with the
Commission pursuant to Rule 424(b) under the Securities Act Regulations or deemed to be a part of
such registration statement pursuant to Rule 430B of the Securities Act Regulations, is herein
called the “Registration Statement.” The base prospectus, including all documents
incorporated therein by reference, included in the Registration Statement, in the form in which
such prospectus has most recently been filed by the Company with the Commission pursuant to Rule
424(b) under the Securities Act Regulations, together with any then issued Issuer Free Writing
Prospectus(es), is herein called the “Prospectus.” Any reference herein to the
Registration Statement, the Prospectus or any amendment or supplement thereto shall be deemed to
refer to and include the documents incorporated by reference therein, and any reference herein to
the terms “amend,” “amendment” or “supplement” with respect to the Registration Statement or the
Prospectus shall be deemed to refer to and include the filing after the execution hereof of any
document with the Commission deemed to be incorporated by reference therein (the “Incorporated
Documents”).

     For purposes of this Agreement, all references to the Registration Statement, the Prospectus
or to any amendment or supplement thereto shall be deemed to include the most recent copy filed
with the Commission pursuant to its Electronic Data Gathering Analysis and Retrieval System, or if
applicable, the Interactive Data Electronic Application system when used by the Commission
(collectively, “EDGAR”).

     2. Placements. Each time that the Company wishes to issue and sell Placement Shares
hereunder (each, a “Placement”), it will notify MLV by email notice (or other method
mutually agreed to in writing by the Parties), a form of which notice is attached hereto as
Schedule 1 (a “Placement Notice”) of the proposed terms of such Placement, which
shall at a minimum include the number of Placement Shares, the time period during which sales are
requested to be made, any limitation on the number of Placement Shares that may be sold in any one
day and any minimum price below which sales may not be made. The Placement Notice shall originate
from any of the individuals from the Company set forth on Schedule 3 (with a copy to each
of the other individuals from the Company listed on such schedule), and shall be addressed to each
of the individuals from MLV set forth on Schedule 3, as such Schedule 3 may be
amended from time to time. The Placement Notice shall be effective unless and until (i) MLV
declines to accept the terms contained therein within one business day from the time the Placement
Notice is received for any reason, in its sole discretion, (ii) the entire amount of the Placement
Shares thereunder have been sold, (iii) the Company suspends or terminates the Placement Notice or
(iv) the Agreement has been terminated under the provisions of Section 13. The amount of
any discount, commission or other compensation to be paid by the Company to MLV in connection with
the sale of the Placement Shares shall be calculated in accordance with the terms set forth in
Schedule 2. It is expressly acknowledged and agreed that neither the Company nor MLV will
have any obligation whatsoever with respect to a Placement or any Placement Shares unless and until
the Company delivers a Placement Notice to MLV and MLV does not decline such Placement Notice
pursuant to the terms set forth above, and then only upon the terms specified therein and herein.
In the event of a conflict between the terms of this Agreement and the terms of a Placement Notice,
the terms of the Placement Notice will control.

2

 

     3. Sale of Placement Shares by MLV.

          (a) Subject to the terms and conditions of this Agreement, MLV, for the period specified in
the Placement Notice, will use its commercially reasonable efforts consistent with its normal
trading and sales practices and applicable state and federal laws, rules and regulations and the
rules of the NASDAQ Global Market (the “Exchange”), to sell the Placement Shares up to the
amount specified, and otherwise in accordance with the terms of such Placement Notice. MLV will
provide written confirmation to the Company no later than the opening of the Trading Day (as
defined below) immediately following the Trading Day on which it has made sales of Placement Shares
hereunder setting forth the number of Placement Shares sold on such day, the compensation payable
by the Company to MLV pursuant to Schedule 2 with respect to such sales, and the Net
Proceeds (as defined below) payable to the Company, with an itemization of the deductions made by
MLV (as set forth in Section 5(b)) from the gross proceeds that it receives from such
sales. Subject to the terms of the Placement Notice, MLV agrees that all sales of Placement Shares
by MLV will be made only by methods deemed to be an “at the market” offering as defined in Rule 415
of the Securities Act Regulations, including without limitation sales made directly on the
Exchange, on any other existing trading market for the Common Stock or to or through a market maker
(an “At The Market Offering”). Subject to the terms of a Placement Notice, MLV may also
sell Placement Shares by any other method permitted by law, including but not limited to in
privately negotiated transactions, subject to prior written approval by the Company. “Trading
Day” means any day on which Common Stock are purchased and sold on the Exchange.

          (b) During the term of this Agreement, neither MLV nor any of its affiliates or subsidiaries
shall engage in (i) any short sale of any security of the Company, (ii) any sale of any security of
the Company that MLV does not own or any sale which is consummated by the delivery of a security of
the Company borrowed by, or for the account of, MLV or (iii) any market making, bidding,
stabilization or other trading activity with regard to the Common Stock if such activity would be
prohibited under Regulation M or other anti-manipulation rules under the Securities Act. Neither
MLV nor any of its affiliates or subsidiaries, shall engage in any proprietary trading or trading
for MLV’s (or its affiliates’ or subsidiaries’) own account. The Company acknowledges and agrees
that (i) there can be no assurance that MLV will be successful in selling Placement Shares, (ii)
MLV will incur no liability or obligation to the Company or any other person or entity if it does
not sell Placement Shares for any reason other than a failure by MLV to use its commercially
reasonable efforts consistent with its normal trading and sales practices and applicable law and
regulations to sell such Placement Shares as required under this Agreement and (iii) MLV shall be
under no obligation to purchase Placement Shares on a principal basis pursuant to this Agreement,
except as otherwise agreed by MLV and the Company.

     4. Suspension of Sales. The Company or MLV may, upon notice to the other party in
writing (including by email correspondence to each of the individuals of the other Party set forth
on Schedule 3, if receipt of such correspondence is actually acknowledged by any of the
individuals to whom the notice is sent, other than via auto-reply) or by telephone (confirmed
immediately by verifiable facsimile transmission or email correspondence to each of the individuals
of the other Party set forth on Schedule 3), suspend any sale of Placement Shares;
provided, however, that such suspension shall not affect or impair any party’s obligations with

3

 

respect to any Placement Shares sold hereunder prior to the receipt of such notice. Each of
the parties agrees that no such notice under this Section 4 shall be effective against any
other party unless it is made to one of the individuals named on Schedule 3 hereto, as such
Schedule may be amended from time to time.

     5. Sale and Delivery; Settlement.

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

          (b) Delivery of Placement Shares. On or before each Settlement Date, the Company
will, or will cause its transfer agent to, electronically transfer the Placement Shares being sold
by crediting MLV’s or its designee’s account (provided MLV shall have given the Company written
notice of such designee a reasonable period of time prior to the Settlement Date) at The Depository
Trust Company through its Deposit and Withdrawal at Custodian System or by such other means of
delivery as may be mutually agreed upon by the parties hereto which in all cases shall be freely
tradable, transferable, registered shares in good deliverable form. On each Settlement Date, MLV
will deliver the related Net Proceeds in same day funds to an account designated by the Company on,
or prior to, the Settlement Date. The Company agrees that if the Company, or its transfer agent
(if applicable), defaults in its obligation to deliver Placement Shares on a Settlement Date
through no fault of MLV, the Company agrees that in addition to and in no way limiting the rights
and obligations set forth in Section 11(a) hereto, it will (i) hold MLV harmless against
any loss, claim, damage, or expense (including reasonable legal fees and expenses), as incurred,
arising out of or in connection with such default by the Company or its transfer agent (if
applicable) and (ii) pay to MLV (without duplication) any commission, discount, or other
compensation to which it would otherwise have been entitled absent such default.

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

4

 

circumstances shall the Company cause or permit the aggregate offering amount of Placement
Shares sold pursuant to this Agreement to exceed the Maximum Amount.

     6. Representations and Warranties of the Company. The Company represents and warrants
to, and agrees with MLV that as of the date of this Agreement and as of each Applicable Time (as
defined below), unless such representation, warranty or agreement specifies a different time:

          (a) Registration Statement and Prospectus. The Company and, assuming no act or
omission on the part of MLV that would make such statement untrue, the transactions contemplated by
this Agreement meet the requirements for and comply with the conditions for the use of Form S-3
under the Securities Act. The Registration Statement has been filed or will be filed with the
Commission. The Registration Statement will be declared effective by the Commission prior to the
issuance of any Placement Notices by the Company. The Prospectus will name MLV as the agent in the
section entitled “Plan of Distribution.” The Registration Statement and the offer and sale of
Placement Shares as contemplated hereby meet or will meet the requirements of Rule 415 under the
Securities Act and comply in all material respects with said Rule. Any statutes, regulations,
contracts or other documents that are required to be described in the Registration Statement or the
Prospectus or to be filed as exhibits to the Registration Statement have been or will be so
described or filed. Copies of the Registration Statement, the Prospectus, and any such amendments
or supplements and all documents incorporated by reference therein that were filed with the
Commission on or prior to the date of this Agreement have been delivered, or are available through
EDGAR, to MLV and its counsel. The Company has not distributed and, prior to the later to occur of
each Settlement Date and completion of the distribution of the Placement Shares, will not
distribute any offering material in connection with the offering or sale of the Placement Shares
other than the Registration Statement and the Prospectus and any Issuer Free Writing Prospectus (as
defined below) to which MLV has consented, any such consent not to be unreasonably withheld,
conditioned or delayed. The Common Stock is currently listed on the Exchange under the trading
symbol “CYTK”. Except as disclosed in the Registration Statement, including the Incorporated
Documents, the Company has not, in the 12 months preceding the date hereof, received notice from
the Exchange to the effect that the Company is not in compliance with the listing or maintenance
requirements. Except as disclosed in the Registration Statement, including the Incorporated
Documents, or the Prospectus, the Company has no reason to believe that it will not in the
foreseeable future continue to be in compliance with all such listing and maintenance requirements.

          (b) No Misstatement or Omission. The Registration Statement, when it became or
becomes effective, and the Prospectus, and any amendment or supplement thereto, on the date of such
Prospectus or amendment or supplement, conformed or will conform in all material respects with the
requirements of the Securities Act. At each Settlement Date, the Registration Statement and the
Prospectus, as of such date, will conform in all material respects with the requirements of the
Securities Act. The Registration Statement, when it became or becomes effective, did not, or will
not, contain an untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading. The Prospectus and any
amendment and supplement thereto, on the date thereof and at each Applicable Time (defined below),
did not or will not include an untrue statement of a

5

 

material fact or omit to state a material fact necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading. The documents incorporated
by reference in the Prospectus did not, and any further documents filed and incorporated by
reference therein will not, when filed with the Commission, contain an untrue statement of a
material fact or omit to state a material fact required to be stated in such document or necessary
to make the statements in such document, in light of the circumstances under which they were made,
not misleading. The foregoing shall not apply to statements in, or omissions from, any such
document made in reliance upon, and in conformity with, information furnished to the Company by MLV
expressly for use therein.

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

          (d) Financial Information. The consolidated financial statements of the Company
included or incorporated by reference in the Registration Statement and the Prospectus, together
with the related notes and schedules, complies as to form in all material respects with applicable
accounting requirements and the published rules and regulations of the Commission with respect
thereto as in effect as of the time of filing. Such financial statements have been prepared in
accordance with generally accepted accounting principles (“GAAP”) consistently applied,
during the periods involved (except (i) as may be otherwise indicated in such financial statements
or the notes thereto, or (ii) in the case of unaudited interim statements, to the extent they may
exclude footnotes or may be condensed or summary statements) and fairly present, in all material
respects, the consolidated financial position of the Company and the Subsidiaries as of the dates
indicated and the consolidated results of operations, cash flows and changes in stockholders’
equity of the Company for the periods specified (subject, in the case of unaudited statements, to
normal year-end audit adjustments); the other financial data with respect to the Company and the
Subsidiaries contained or incorporated by reference in the Registration Statement and the
Prospectus are accurately and fairly presented and prepared on a basis consistent with the
financial statements and books and records of the Company; there are no financial statements
(historical or pro forma) that are required to be included or incorporated by reference in the
Registration Statement, or the Prospectus that are not included or incorporated by reference as
required; the Company and the Subsidiaries (as defined below) do not have any material liabilities
or obligations, direct or contingent (including any off-balance sheet obligations), not described
in the Registration Statement (including the exhibits thereto and Incorporated Documents), and the
Prospectus which are required to be described in the Registration Statement or the Prospectus
(including Exhibits thereto and Incorporated Documents); and all disclosures contained or
incorporated by reference in the Registration Statement and the Prospectus regarding “non-GAAP
financial measures” (as such term is defined by the rules and regulations of the Commission) comply
in all material respects with Regulation G of the Exchange Act and Item 10 of Regulation S-K under
the Securities Act, to the extent applicable;

6

 

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

          (f) Organization. The Company and each of its Subsidiaries are, and will be, duly
organized, validly existing as a corporation and in good standing under the laws of their
respective jurisdictions of organization. The Company and each of its Subsidiaries are, and will
be, duly qualified as a foreign corporation for transaction of business and in good standing under
the laws of each other jurisdiction in which their respective ownership or lease of property or the
conduct of their respective businesses requires such qualification, and have all corporate power
and authority necessary to own or hold their respective properties and to conduct their respective
businesses as described in the Registration Statement and the Prospectus, except where the failure
to be so qualified or in good standing or have such power or authority would not, individually or
in the aggregate, have a material adverse effect or reasonably be expected to have a material
adverse effect on the assets, business, operations, earnings, properties, condition (financial or
otherwise), prospects, stockholders’ equity as reported on the Company’s most recent balance sheet
or results of operations of the Company and the Subsidiaries (as defined below) taken as a whole,
or prevent or materially interfere with consummation of the transactions contemplated hereby (a
“Material Adverse Effect”).

          (g) Subsidiaries. The subsidiaries set forth on Schedule 4 (collectively, the
“Subsidiaries”), are the Company’s only significant subsidiaries (as such term is defined
in Rule 1-02 of Regulation S-X promulgated by the Commission). Except as set forth in the
Registration Statement and in the Prospectus, the Company owns, directly or indirectly, all of the
equity interests of the Subsidiaries free and clear of any lien, charge, security interest,
encumbrance, right of first refusal or other restriction, and all the equity interests of the
Subsidiaries are validly issued and are fully paid, nonassessable and free of preemptive and
similar rights.

          (h) No Violation or Default. Except as set forth in the Registration Statement or the
Prospectus, neither the Company nor any of its Subsidiaries is (i) in violation of its charter or
by-laws or similar organizational documents; (ii) in default, and no event has occurred that, with
notice or lapse of time or both, would constitute such a default, in the due performance or
observance of any term, covenant or condition contained in any indenture, mortgage, deed of trust,
loan agreement or other agreement or instrument to which the Company or any of its Subsidiaries is
a party or by which the Company or any of its Subsidiaries is bound or to which any of the property
or assets of the Company or any of its Subsidiaries are subject; or (iii) in violation of any law
or statute or any judgment, order, rule or regulation of any court or arbitrator or governmental or
regulatory authority, except, in the case of each of clauses (ii) and (iii) above, for any such
violation or default that would not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect. Except as described in the Prospectus or the Incorporated
Documents, to the Company’s knowledge, no other party under any material contract or other
agreement to which it or any of its Subsidiaries is a party is in default in any respect thereunder
where such default would reasonably be expected to have a Material Adverse Effect.

7

 

          (i) No Material Adverse Change. Since March 31, 2011 there has not been (i) any
Material Adverse Effect, (ii) other than this Agreement, any transaction which is material to the
Company and the Subsidiaries taken as a whole, (iii) any obligation or liability, direct or
contingent (including any off-balance sheet obligations), incurred by the Company or any
Subsidiary, which is material to the Company and the Subsidiaries taken as a whole, (iv) any
material change in the capital stock (other than (a) as a result of the sale of Placement Shares
        ,(b) as described in a proxy statement filed on Schedule 14A or a Registration Statement on Form
S-4 and otherwise publicly announced or (c) changes in the number of outstanding shares of Common
Stock of the Company due to the issuance of shares upon the exercise or conversion of securities
exercisable for, or convertible into, shares of Common Stock outstanding on the date hereof, or the
vesting of restricted stock units outstanding on the date hereof) or outstanding long-term
indebtedness of the Company or any of its Subsidiaries or (v) any dividend or distribution of any
kind declared, paid or made on the capital stock of the Company or any Subsidiary, other than in
each case above (A) in the ordinary course of business, (B) as otherwise will be disclosed in the
Registration Statement or Prospectus (including any document deemed incorporated by reference
therein) or (C) where such matter, item, change, or development would not make the statements in
the Registration Statement or the Prospectus contain an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the statements therein
not misleading.

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

          (k) Authorization; Enforceability. The Company has full legal right, power and
authority to enter into this Agreement and perform the transactions contemplated hereby. This
Agreement has been duly authorized, executed and delivered by the Company and is a legal, valid and
binding agreement of the Company enforceable against the Company in accordance with its terms,
except to the extent that (i) enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors’ rights generally and by general
equitable principles and (ii) the indemnification and contribution provisions of Section 10
hereof may be limited by federal or state securities laws and public policy considerations in
respect thereof.

8

 

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

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

          (n) No Preferential Rights. Except as set forth in the Registration Statement and the
Prospectus, (i) no person, as such term is defined in Rule 1-02 of Regulation S-X promulgated under
the Securities Act (each, a “Person”), has the right, contractual or otherwise, to cause
the Company to issue or sell to such Person any Common Stock or shares of any other capital stock
or other securities of the Company (other than upon the exercise of options or warrants to purchase
Common Stock or upon the exercise of options or vesting of restricted stock units or stock awards
that may be granted from time to time under the Company’s stock option plans), (ii) no Person has
any preemptive rights, rights of first refusal, or any other rights (whether pursuant to a “poison
pill” provision or otherwise) to purchase any Common Stock or shares of any other capital stock or
other securities of the Company from the Company which have not been duly waived with respect to
the offering contemplated hereby, (iii) except as disclosed to MLV in writing, no Person has the
right to act as an underwriter or as a financial advisor to the Company in connection with the
offer and sale of the Common Stock, and (iv) no Person has the right, contractual or otherwise, to
require the Company to register under the Securities Act any Common Stock or shares of any other
capital stock or other securities of the Company, or to include any such shares or other securities
in the Registration Statement or the offering contemplated thereby, whether as a result of the
filing or effectiveness of the Registration Statement or the sale of the Placement Shares as
contemplated thereby or otherwise.

          (o) Independent Public Accountant. PricewaterhouseCoopers LLP (the
“Accountant”), whose report on the consolidated financial statements of the Company is
filed with the Commission as part of the Company’s most recent Annual Report on Form 10-K filed
with the Commission and incorporated into the Registration Statement, is and, during the periods
covered by their report, was an independent public accounting firm within the meaning of the
Securities Act and the Public Company Accounting Oversight Board (United States). To the Company’s
knowledge, the Accountant is not in violation of the auditor independence

9

 

requirements of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) with respect
to the Company.

          (p) Enforceability of Agreements. To the Company’s knowledge, all agreements between
the Company and third parties expressly referenced in the Prospectus, other than such agreements
that have expired by their terms or whose termination is disclosed in documents filed by the
Company on EDGAR, are legal, valid and binding obligations of the Company enforceable in accordance
with their respective terms, except to the extent that (i) enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights
generally and by general equitable principles and (ii) the indemnification provisions of certain
agreements may be limited by federal or state securities laws or public policy considerations in
respect thereof, except for any unenforceability that, individually or in the aggregate, would not
reasonably be expected to have a Material Adverse Effect.

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

          (r) Licenses and Permits. Except as set forth in the Registration Statement or the
Prospectus, the Company and each of its Subsidiaries possess or have obtained, all governmental
licenses, certificates, consents, orders, approvals, permits and other authorizations necessary for
the ownership or lease of their respective properties or the conduct of their respective businesses
as described in the Registration Statement and the Prospectus (the “Permits”), except where
the failure to possess, obtain or make the same would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. Except as disclosed in the Registration
Statement or the Prospectus, neither the Company nor any of its Subsidiaries have received written
notice of any proceeding relating to revocation or modification of any such Permit or has any
reason to believe that such Permit will not be renewed in the ordinary course, except where the
failure to obtain any such renewal would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

          (s) Market Capitalization. Based on the last sales price of the Common Stock as of
the close of trading on the Exchange on June 9, 2011, the aggregate market value of the

10

 

outstanding Common Stock held by persons other than affiliates of the Company was greater than
or equal to $75.0 million.

          (t) No Material Defaults. Neither the Company nor any of the Subsidiaries has
defaulted on any installment on indebtedness for borrowed money or on any rental on one or more
long-term leases, which defaults, individually or in the aggregate, would reasonably be expected to
have a Material Adverse Effect. The Company has not filed a report pursuant to Section
13(a) or 15(d) of the Exchange Act since the filing of its last Annual Report on Form
10-K, indicating that it (i) has failed to pay any dividend or sinking fund installment on
preferred stock or (ii) has defaulted on any installment on indebtedness for borrowed money or on
any rental on one or more long-term leases, which defaults, individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect.

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

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

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

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

          (y) Title to Real and Personal Property. Except as set forth in the Registration
Statement or the Prospectus, the Company and its Subsidiaries have good and marketable title in fee
simple to all items of real property and good and valid title to all personal property (excluding
Intellectual Property, which is discussed in Section 6(z) below) described in the
Registration Statement or Prospectus as being owned by them that are material to the businesses

11

 

of the Company or such Subsidiary, in each case free and clear of all liens, encumbrances and
claims, except for any failure to have good and marketable title for any liens, encumbrances and
claims that (i) do not materially interfere with the use made of such property by the Company and
any of its Subsidiaries or (ii) would not reasonably be expected, individually or in the aggregate,
to have a Material Adverse Effect. Any real property described in the Registration Statement or
Prospectus as being leased by the Company and any of its Subsidiaries is held by them under valid,
existing and enforceable leases, except those that (A) do not materially interfere with the use
made or proposed to be made of such property by the Company or any of its Subsidiaries or (B) would
not be reasonably expected, individually or in the aggregate, to have a Material Adverse Effect.

          (z) Intellectual Property. Except as set forth in the Registration Statement or the
Prospectus, to the Company’s knowledge, the Company and its Subsidiaries own or possess adequate
rights to use all patents, patent applications, trademarks (both registered and unregistered),
service marks, trade names, trademark registrations, service mark registrations, copyrights,
licenses and know-how (including trade secrets and other unpatented and/or unpatentable proprietary
or confidential information, systems or procedures) (collectively, the “Intellectual
Property”), necessary for the conduct of their respective businesses as conducted as of the
date hereof, except to the extent that the failure to own or possess adequate rights to use such
Intellectual Property would not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect; except as disclosed in writing to MLV, the Company and any of its
Subsidiaries have not received any written notice of any claim of infringement or conflict which
asserted Intellectual Property rights of others, which infringement or conflict would result in a
Material Adverse Effect; there are no pending, or to the Company’s knowledge, threatened judicial
proceedings or interference proceedings against the Company or its Subsidiaries challenging the
Company’s or its Subsidiaries’ rights in or to or the validity of the scope of any of the Company’s
or its Subsidiaries’ owned material patents, patent applications or proprietary information, except
such proceedings that have been disclosed in writing to MLV and would not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect. To the Company’s
knowledge, no other entity or individual has any right or claim in any of the Company’s or its
Subsidiaries’ owned material patents, patent applications or any patent to be issued therefrom by
virtue of any contract, license or other agreement entered into between such entity or individual
and the Company or a Subsidiary or by any non-contractual obligation of the Company or a
Subsidiary, other than by written licenses granted by the Company or a Subsidiary, except for such
right or claim that would not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect; the Company and its Subsidiaries have not received any written notice of
any claim challenging the rights of the Company or a Subsidiary in or to any Intellectual Property
owned, licensed or optioned by the Company or such Subsidiary which claim would result in a
Material Adverse Effect.

          (aa) Environmental Laws. Except as set forth in the Registration Statement or the
Prospectus, the Company and its Subsidiaries (i) are in compliance with any and all applicable
federal, state, local and foreign laws, rules, regulations, decisions and orders relating to the
protection of human health and safety, the environment or hazardous or toxic substances or wastes,
pollutants or contaminants (collectively, “Environmental Laws”); (ii) have received and are
in compliance with all permits, licenses or other approvals required of them under applicable
Environmental Laws to conduct their respective businesses as described in the Registration

12

 

Statement and the Prospectus; and (iii) have not received notice of any actual or potential
liability for the investigation or remediation of any disposal or release of hazardous or toxic
substances or wastes, pollutants or contaminants, except, in the case of any of clauses (i), (ii)
or (iii) above, for any such failure to comply or failure to receive required permits, licenses,
other approvals or liability as would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.

          (bb) Disclosure Controls. The Company and each of its Subsidiaries maintain systems
of internal accounting controls designed to provide reasonable assurance that (i) transactions are
executed in accordance with management’s general or specific authorizations; (ii) transactions are
recorded as necessary to permit preparation of financial statements in conformity with generally
accepted accounting principles and to maintain asset accountability; (iii) access to assets is
permitted only in accordance with management’s general or specific authorization; and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable intervals and
appropriate action is taken with respect to any differences. The Company is not aware of any
material weaknesses in its internal control over financial reporting (other than as set forth in
the Prospectus). Since the date of the latest audited financial statements of the Company included
in the Prospectus, there has been no change in the Company’s internal control over financial
reporting that has materially affected, or is reasonably likely to materially affect, the Company’s
internal control over financial reporting (other than as set forth in the Prospectus). The Company
has established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 and
15d-15) for the Company and designed such disclosure controls and procedures to ensure that
material information relating to the Company and each of its Subsidiaries is made known to the
certifying officers by others within those entities, particularly during the period in which the
Company’s Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as the case may be, is being
prepared. The Company’s certifying officers have evaluated the effectiveness of the Company’s
controls and procedures as of a date within 90 days prior to the filing date of the Form 10-K for
the fiscal year most recently ended (such date, the “Evaluation Date”). The Company
presented in its Form 10-K for the fiscal year most recently ended the conclusions of the
certifying officers about the effectiveness of the disclosure controls and procedures based on
their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no
significant changes in the Company’s internal controls (as such term is defined in Item 307(b) of
Regulation S-K under the Act) or, to the Company’s knowledge, in other factors that could
significantly affect the Company’s internal controls. To the knowledge of the Company, the
Company’s “internal controls over financial reporting” and “disclosure controls and procedures” are
effective.

          (cc) Sarbanes-Oxley. Except as disclosed in the Registration Statement or the
Prospectus, there is and has been no failure on the part of the Company or, to the knowledge of the
Company, any of the Company’s directors or officers, in their capacities as such, to comply with
any applicable provisions of the Sarbanes-Oxley Act and the rules and regulations promulgated
thereunder. Each of the principal executive officer and the principal financial officer of the
Company (or each former principal executive officer of the Company and each former principal
financial officer of the Company as applicable) has made all certifications required by Sections
302 and 906 of the Sarbanes-Oxley Act with respect to all reports, schedules, forms, statements and
other documents required to be filed by it or furnished by it to the Commission. For purposes of
the preceding sentence, “principal executive officer” and

13

 

“principal financial officer” shall have the meanings given to such terms in the
Sarbanes-Oxley Act.

          (dd) Finder’s Fees. Neither the Company nor any of the Subsidiaries has incurred any
liability for any finder’s fees, brokerage commissions or similar payments in connection with the
transactions herein contemplated, except as may otherwise exist with respect to MLV pursuant to
this Agreement.

          (ee) Labor Disputes. Except as disclosed in the Registration Statement or the
Prospectus, no labor disturbance by or dispute with employees of the Company or any of its
Subsidiaries exists or, to the knowledge of the Company, is threatened which would reasonably be
expected to result in a Material Adverse Effect.

          (ff) Investment Company Act. Neither the Company nor any of the Subsidiaries is or,
after giving effect to the offering and sale of the Placement Shares, will be an “investment
company” or an entity “controlled” by an “investment company,” as such terms are defined in the
Investment Company Act of 1940, as amended (the “Investment Company Act”).

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

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

          (ii) Underwriter Agreements. The Company is not a party to any agreement with an
agent or underwriter for any other At The Market offering transaction, provided, however, nothing
in this Agreement shall prevent or restrain the Company from entering into a committed equity
financing facility or similar transaction.

14

 

          (jj) ERISA. Except as disclosed in the Registration Statement or the Prospectus, to
the knowledge of the Company, (i) each material employee benefit plan, within the meaning of
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
that is maintained, administered or contributed to by the Company (other than a Multiemployer Plan,
within the meaning of Section 3(37) of ERISA) for employees or former employees of the Company and
any of its Subsidiaries has been maintained in material compliance with its terms and the
requirements of any applicable statutes, orders, rules and regulations, including but not limited
to ERISA and the Internal Revenue Code of 1986, as amended (the “Code”); (ii) no prohibited
transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred
with respect to any such plan excluding transactions effected pursuant to a statutory or
administrative exemption; and (iii) for each such plan that is subject to the funding rules of
Section 412 of the Code or Section 302 of ERISA, no “accumulated funding deficiency” as defined in
Section 412 of the Code has been incurred, whether or not waived, and the fair market value of the
assets of each such plan (excluding for these purposes accrued but unpaid contributions) equals or
exceeds the present value of all benefits accrued under such plan determined using reasonable
actuarial assumptions, other than, in the case of (i), (ii) and (iii) above, as would not
reasonably be expected to have a Material Adverse Effect.

          (kk) Forward Looking Statements. The forward-looking statements (within the meaning
of Section 27A of the Securities Act and Section 21E of the Exchange Act) incorporated by reference
in the Registration Statement and the Prospectus from the Company’s Annual Report on Form 10-K for
the fiscal year most recently ended (i) except for any forward looking statement included in any
financial statements and notes thereto, are within the coverage of the safe harbor for forward
looking statements set forth in Section 27A of the Securities Act, Rule 175(b) under the Securities
Act or Rule 3b-6 under the Exchange Act, as applicable, and (ii) have been prepared in accordance
with Item 10 of Regulation S-K under the Act.

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

          (mm) Insurance. Except as disclosed in the Registration Statement or the Prospectus,
the Company and each of its Subsidiaries carry, or are covered by, insurance in such amounts and
covering such risks as the Company and each of its Subsidiaries reasonably believe are adequate for
their respective businesses and customary for companies of similar size engaged in similar
businesses in similar industries.

          (nn) No Improper Practices. Except as disclosed in the Registration Statement or the
Prospectus, (i) neither the Company nor, to the Company’s knowledge, the Subsidiaries, nor to the
Company’s knowledge, any of their respective executive officers has, in the past five years, made
any unlawful contributions to any candidate for any political office (or failed fully to disclose
any contribution in violation of law) or made any contribution or other payment to any official of,
or candidate for, any federal, state, municipal, or foreign office or other person charged with
similar public or quasi-public duty in violation of any law or of the character required to be
disclosed in the Prospectus; (ii) no relationship, direct or indirect, exists between

15

 

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

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

          (pp) No Misstatement or Omission in an Issuer Free Writing Prospectus. Each Issuer
Free Writing Prospectus, as of its issue date and at each Applicable Time (as defined in
Section 25 below) through the completion of any Placement for which such Issuer Free
Writing Prospectus is used or deemed used, will not include any information that conflicted,
conflicts or will conflict with the information contained in the Registration Statement or the
Prospectus, including any incorporated document deemed to be a part thereof that has not been
superseded or modified. The foregoing sentence does not apply to statements in or omissions from
any Issuer Free Writing Prospectus based upon and in conformity with written information furnished
to the Company by MLV expressly for use therein.

          (qq) No Conflicts. Neither the execution of this Agreement by the Company, nor the
issuance, offering or sale of the Placement Shares, nor the consummation by the Company of any of
the transactions contemplated herein and therein, nor the compliance by the Company with the terms
and provisions hereof and thereof will conflict with, or will result in a breach of, any of the
terms and provisions of, or has constituted or will constitute a default under, or has resulted in
or will result in the creation or imposition of any lien, charge or encumbrance upon any property
or assets of the Company pursuant to the terms of any contract or other agreement to which the
Company is a party or to which any of the property or assets of the Company is subject, except (i)
such conflicts, breaches or defaults as may have been waived and (ii) such conflicts, breaches,
defaults and liens, charges and encumbrances that would not

16

 

reasonably be expected to have a Material Adverse Effect; nor will such action result (x) in
any violation of the provisions of the certificate of incorporation or bylaws of the Company, or
(y) in any material violation of the provisions of any statute or any order, rule or regulation
applicable to the Company or of any court or of any federal, state or other regulatory authority or
other government body having jurisdiction over the Company, except where such violation would not
reasonably be expected to have a Material Adverse Effect.

          (rr) Clinical Studies. The material clinical, pre-clinical and other studies and
tests conducted by or, to the knowledge of the Company, on behalf of the Company were, and, if
still pending, are being, conducted in accordance in all material respects with all statutes, laws,
rules and regulations, as applicable (including, without limitation, the U.S. Food and Drug
Administration’s (the “FDA”) Good Laboratory Practices and Good Clinical Practices as well as all
other applicable rules, regulations, or requirements of the FDA or any foreign, federal, state or
local governmental or regulatory authority performing functions similar to those performed by the
FDA), except where failure to do so would not have a Material Adverse Effect. Except as set forth
in or contemplated by the Registration Statement and Prospectus, the Company has not received any
written notices or other written correspondence from the FDA or any other foreign, federal, state
or local governmental or regulatory authority performing functions similar to those performed by
the FDA requiring the Company to terminate or suspend any ongoing clinical or pre-clinical studies
or tests.

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

          (tt) OFAC. (i) Neither the Company nor any of its Subsidiaries or, to the Company’s
knowledge, any director, officer, employee, agent, affiliate or representative of the Entity, is a
government, individual, or entity (in this paragraph (tt), “Person”) that is, or is owned
or controlled by a Person that is:

     (A) the subject of any sanctions administered or enforced by the U.S.
Department of Treasury’s Office of Foreign Assets Control (“OFAC”), the
United Nations Security Council (“UNSC”), the European Union (“EU”),
Her Majesty’s Treasury (“HMT”), or other relevant sanctions authority
(collectively, “Sanctions”), nor

     (B) located, organized or resident in a country or territory that is the
subject of Sanctions (including, without limitation, Burma/Myanmar, Cuba, Iran,
North Korea, Sudan and Syria).

	 	(ii)	 	The Company will not, directly or indirectly, knowingly use the proceeds of the
offering, or knowingly lend, contribute or otherwise make available such proceeds to any
subsidiary, joint venture partner or other Person:

17

 

     (A) to fund or facilitate any activities or business of or with any Person or
in any country or territory that, at the time of such funding or facilitation, is
the subject of Sanctions; or

     (B) in any other manner that will result in a violation of Sanctions by any
Person (including any Person participating in the offering, whether as underwriter,
advisor, investor or otherwise).

	 	(iii)	 	Except as disclosed in the Registration Statement or the Prospectus, for the past 5
years, the Company has not knowingly engaged in, is not now knowingly engaged in, and will not
knowingly engage in, any dealings or transactions with any Person, or in any country or
territory, that at the time of the dealing or transaction is or was the subject of Sanctions.

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

          (vv) Certificates. Any certificate signed by an officer of the Company and delivered
to MLV or to counsel for MLV pursuant to or in connection with this Agreement shall be deemed to be
a representation and warranty by the Company, as applicable, to MLV as to the matters set forth
therein.

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

          (a) Registration Statement and Amendments. The Company shall file the Registration
Statement and use commercially reasonable efforts to have the Registration Statement declared
effective by the Commission. The Registration Statement and the Prospectus or any amendment or
supplement thereto, and the documents incorporated by reference in the Registration Statement, the
Prospectus or any amendment or supplement thereto, shall conform in all material respects with the
requirements of the Securities Act and the Exchange Act, as applicable. After the date of this
Agreement and during any period in which a Prospectus relating to any Placement Shares is required
to be delivered by MLV under the Securities Act (including in circumstances where such requirement
may be satisfied pursuant to Rule 172 under the Securities Act) (the “Prospectus Delivery
Period”), (i) the Company will notify MLV promptly of the time when any subsequent amendment to
the Registration Statement, other than documents incorporated by reference, has been filed with the
Commission and/or has become effective or any subsequent supplement to the Prospectus, other than
documents incorporated by reference, has been filed and of any request by the Commission for any
amendment or supplement to the Registration Statement or Prospectus or for additional information,
(ii) the Company will not file any amendment or supplement to the Registration Statement or
Prospectus (except for documents incorporated by reference) unless a copy thereof has been
submitted to MLV within two business days before the filing and MLV has not reasonably objected
thereto within the two business day period (provided, however, that (A) the failure of MLV to make
such objection shall not relieve the Company of any obligation or liability hereunder, or affect

18

 

MLV’s right to rely on the representations and warranties made by the Company in this
Agreement and (B) the Company has no obligation to provide MLV any advance copy of such filing or
to provide MLV an opportunity to object to such filing if such filing does not name MLV or does not
relate to the transactions contemplated hereunder provided, further, that the only remedy MLV shall
have with respect to the failure by the Company to provide MLV with such copy shall be to cease
making sales under this Agreement) and the Company will furnish to MLV at the time of filing
thereof a copy of any document that upon filing is deemed to be incorporated by reference into the
Registration Statement or Prospectus, except for those documents available via EDGAR (regardless of
whether the Company has requested confidential treatment therefor); and (iii) the Company will
cause each amendment or supplement to the Prospectus to be filed with the Commission as required
pursuant to the applicable paragraph of Rule 424(b) of the Securities Act or, in the case of any
document to be incorporated therein by reference, to be filed with the Commission as required
pursuant to the Exchange Act, within the time period prescribed (the determination to file or not
file any amendment or supplement with the Commission under this Section 7(a), based on the
Company’s reasonable opinion or reasonable objections, shall be made exclusively by the Company).

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

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

19

 

omission or effect such compliance; provided, however, that the Company may delay any such
amendment or supplement if, in the judgment of the Company, it is in the best interests of the
Company to do so.

          (d) Listing of Placement Shares. During the Prospectus Delivery Period, the Company
will use commercially reasonable efforts to cause the Placement Shares to be listed on the Exchange
and to qualify the Placement Shares for sale under the securities laws of such jurisdictions as MLV
reasonably designate and to continue such qualifications in effect so long as required for the
distribution of the Placement Shares; provided, however, that the Company shall not be required in
connection therewith to qualify as a foreign corporation or dealer in securities or file a general
consent to service of process in any jurisdiction.

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

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

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

          (h) Notice of Other Sales. Without the prior written consent of MLV, the Company will
not, directly or indirectly, offer to sell, sell, contract to sell, grant any option to sell or
otherwise dispose of any Common Stock (other than the Placement Shares offered pursuant to this
Agreement) or securities convertible into or exchangeable for Common Stock, warrants or any rights
to purchase or acquire, Common Stock during the period beginning on the fifth (5th) Trading Day
immediately prior to the date on which any Placement Notice is delivered to MLV hereunder and
ending on the fifth (5th) Trading Day immediately following the final Settlement Date with respect
to Placement Shares sold pursuant to such Placement Notice (or, if the Placement Notice has been
terminated or suspended prior to the sale of all Placement Shares covered by a Placement Notice,
the date of such suspension or termination); and, at any time during which a Placement Notice is
pending, will not directly or indirectly in any other At the Market or continuous equity
transaction offer to sell, sell, contract to sell, grant any option to sell or otherwise dispose of
any Common Stock (other than the Placement Shares offered pursuant to this Agreement) or securities
convertible into or exchangeable for Common Stock, warrants or any rights to purchase or acquire,
Common Stock prior to the termination of this Agreement with

20

 

respect to Placement Shares sold pursuant to such Placement Notice; provided, however, that
such restrictions will not be required in connection with the Company’s issuance or sale of (i)
Common Stock, options to purchase Common Stock, restricted stock units or stock awards or Common
Stock issuable upon the exercise of options or vesting of restricted stock units, pursuant to any
employee or director stock option or benefits plan, stock ownership plan or dividend reinvestment
plan (but not Common Stock subject to a waiver to exceed plan limits in its dividend reinvestment
plan) of the Company whether now in effect or hereafter implemented; (ii) Common Stock issuable
upon conversion of securities or the exercise of warrants, options or other rights in effect or
outstanding, and disclosed in filings by the Company available on EDGAR or otherwise in writing to
MLV and (iii) Common Stock, or securities convertible into or exercisable for Common Stock, offered
and sold in a privately negotiated transaction to vendors, customers, investors, strategic partners
or potential strategic partners who are qualified institutional buyers and not more than three
persons that are “accredited investors” within the meaning of such term under paragraph (a)(1),
(a)(2), (a)(3), (a)(7) or (a)(8) of Rule 501 under the Securities Act and otherwise conducted in a
manner so as not to be integrated with the offering of Common Stock hereby.

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

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

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

          (l) Representation Dates; Certificate. Each time during the term of this Agreement
that the Company:

(i) post-effectively amends the Registration Statement or supplements the Prospectus, in
either case such that the audited financial information contained therein is materially
amended, but not by means of incorporation of documents by reference into the Registration
Statement or the Prospectus relating to the Placement Shares;

21

 

(ii) files an annual report on Form 10-K under the Exchange Act (including any Form 10-K/A
containing restated financial statements or a material amendment to the previously filed
Form 10-K);

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

(iv) files a current report on Form 8-K containing amended audited financial information
(other than information “furnished” pursuant to Items 2.02 or 7.01 of Form 8-K or to provide
disclosure pursuant to Item 8.01 of Form 8-K relating to the reclassification of certain
properties as discontinued operations in accordance with Statement of Financial Accounting
Standards No. 144) under the Exchange Act (each date of filing of one or more of the
documents referred to in clauses (i) through (iv) shall be a “Representation Date”);

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

          (m) Legal Opinion. On or prior to the date of the first Placement Notice given
hereunder, the Company shall cause to be furnished to MLV written opinions of Cooley LLP
(“Company Counsel”), or other counsel reasonably satisfactory to MLV, substantially similar
to the form attached hereto as Exhibit 7(m)(1). Thereafter, within five (5) Trading Days of each
Representation Date with respect to which the Company is obligated to deliver a certificate in the
form attached hereto as Exhibit 7(l) for which no waiver is applicable, and not more than once per
fiscal quarter, the Company shall cause to be furnished to MLV a written letter of Company Counsel
substantially similar to the form attached hereto as Exhibit 7(m)(2), modified, as necessary, to
relate to the Registration Statement and the Prospectus as then amended or supplemented, and with
customary assumptions and exceptions.

          (n) Comfort Letter. On or prior to the date the first Placement Notice given
hereunder and thereafter within five (5) Trading Days of Representation Dates pursuant to
Sections 7(l)(i), 7(l)(ii) and 7(l)(iv) with respect to which the Company is
obligated to deliver a certificate in the form attached hereto as Exhibit 7(l) for which no waiver
is applicable, the Company shall cause its independent accountants to furnish a MLV letter (the
“Comfort Letter”), dated the date the Comfort Letter is delivered, which shall meet the
requirements set forth in this Section 7(n). The Comfort Letter from the Company’s
independent accountants shall be in a form and substance satisfactory to MLV, (i) confirming that
they are an independent public

22

 

accounting firm within the meaning of the Securities Act and the PCAOB, (ii) stating, as of
such date, the conclusions and findings of such firm with respect to the financial information and
other matters ordinarily covered by accountants’ “comfort letters” to underwriters in connection
with registered public offerings (the first such letter, the “Initial Comfort Letter”) and
(iii) updating the Initial Comfort Letter with any information that would have been included in the
Initial Comfort Letter had it been given on such date and modified as necessary to relate to the
Registration Statement and the Prospectus, as amended and supplemented to the date of such letter.
The Company shall not be required to deliver a Comfort Letter in connection with a Representation
Date triggered by the Company’s filing of a quarterly report on Form 10-Q pursuant to Sections
7(l)(iii).

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

          (p) Investment Company Act. The Company will conduct its affairs in such a manner so
as to reasonably ensure that neither it nor any of its Subsidiaries will be or become, at any time
prior to the termination of this Agreement, an “investment company,” as such term is defined in the
Investment Company Act.

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

          (r) Sarbanes-Oxley Act. The Company and the Subsidiaries will maintain and keep
accurate books and records reflecting their assets and maintain internal accounting controls in a
manner designed to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles and including those policies and procedures that (i) pertain to the
maintenance of records that in reasonable detail accurately and fairly reflect the transactions and
dispositions of the assets of the Company, (ii) provide reasonable assurance that transactions are
recorded as necessary to permit the preparation of the Company’s consolidated financial statements
in accordance with generally accepted accounting principles, (iii) that receipts and expenditures
of the Company are being made only in accordance with management’s and the Company’s directors’
authorization, and (iv) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of the Company’s assets that could have a material
effect on its financial statements. The Company and the Subsidiaries will maintain such controls
and other procedures, including, without limitation, those required by Sections 302 and 906 of the
Sarbanes-Oxley Act, and the applicable regulations thereunder that are designed to ensure that
information required to be

23

 

disclosed by the Company in the reports that it files or submits under the Exchange Act is
recorded, processed, summarized and reported, within the time periods specified in the Commission’s
rules and forms, including, without limitation, controls and procedures designed to ensure that
information required to be disclosed by the Company in the reports that it files or submits under
the Exchange Act is accumulated and communicated to the Company’s management, including its
principal executive officer and principal financial officer, or persons performing similar
functions, as appropriate to allow timely decisions regarding required disclosure and to ensure
that material information relating to the Company or the Subsidiaries is made known to them by
others within those entities, particularly during the period in which such periodic reports are
being prepared.

     8. Representations and Covenants of MLV. MLV represents and warrants that it is duly
registered as a broker-dealer under FINRA, the Exchange Act and the applicable statutes and
regulations of each state in which the Placement Shares will be offered and sold, except such
states in which MLV is exempt from registration or such registration is not otherwise required.
MLV shall continue, for the term of this Agreement, to be duly registered as a broker-dealer under
FINRA, the Exchange Act and the applicable statutes and regulations of each state in which the
Placement Shares will be offered and sold, except such states in which MLV is exempt from
registration or such registration is not otherwise required, during the term of this Agreement.
MLV will comply with all applicable law and regulations in connection with the Placement Shares,
including but not limited to Regulation M.

     9. Payment of Expenses.

          (a) The Company will pay all expenses incident to the performance of its obligations under
this Agreement, including (i) the preparation, filing, including any fees required by the
Commission, and printing of the Registration Statement (including financial statements and
exhibits) as originally filed and of each amendment and supplement thereto and any Permitted Free
Writing Prospectus, in such number as MLV shall deem reasonably necessary, (ii) the printing and
delivery to MLV of this Agreement and such other documents as may be required in connection with
the offering, purchase, sale, issuance or delivery of the Placement Shares, (iii) the preparation,
issuance and delivery of the certificates, if any, for the Placement Shares to MLV, including any
stock or other transfer taxes and any capital duties, stamp duties or other duties or taxes payable
upon the sale, issuance or delivery of the Placement Shares to MLV, (iv) the fees and disbursements
of the counsel, accountants and other advisors to the Company, (v) the fees and expenses of the
transfer agent and registrar for the Common Stock, (vi) the filing fees incident to any review by
FINRA of the terms of the sale of the Placement Shares, and (vii) the fees and expenses incurred in
connection with the listing of the Placement Shares on the Exchange.

          (b) If this Agreement is terminated by the MLV in accordance with the provisions of Section
13(c) hereof as a result of a material breach by the Company of its obligations hereunder, the
Company shall reimburse the MLV for all of its out-of-pocket expenses, including the reasonable
fees and disbursements of counsel for the MLV not to exceed $25,000.

24

 

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

          (a) Registration Statement Effective. The Registration Statement shall have become
effective and shall be available for the sale of all Placement Shares contemplated to be issued by
any Placement Notice, and the Registration Statement and the Prospectus or any amendment or
supplement thereto, and the documents incorporated by reference in the Registration Statement, the
Prospectus or any amendment or supplement thereto, shall conform in all material respects with the
requirements of the Securities Act and the Exchange Act, as applicable.

          (b) No Material Notices. None of the following events shall have occurred and be
continuing: (i) receipt by the Company of any request for additional information from the
Commission or any other federal or state governmental authority during the period of effectiveness
of the Registration Statement, the response to which would require any post-effective amendments or
supplements to the Registration Statement or the Prospectus; (ii) the issuance by the Commission or
any other federal or state governmental authority of any stop order suspending the effectiveness of
the Registration Statement or the initiation of any proceedings for that purpose; (iii) receipt by
the Company of any notification with respect to the suspension of the qualification or exemption
from qualification of any of the Placement Shares for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose; or (iv) any event that makes any material statement
made in the Registration Statement or the Prospectus or any material document incorporated or
deemed to be incorporated therein by reference untrue in any material respect or that requires the
making of any changes in the Registration Statement, the Prospectus or documents so that, in the
case of the Registration Statement, it will not contain any materially untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary to make
the statements therein not misleading and, that in the case of the Prospectus, it will not contain
any materially untrue statement of a material fact or omit to state any material fact required to
be stated therein or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

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

          (d) Material Changes. Except as contemplated in the Prospectus, or disclosed in the
Company’s reports filed with the Commission, there shall not have been any material adverse change,
on a consolidated basis, in the authorized capital stock of the Company or any Material Adverse
Effect, or any development in the business or affairs of the Company that could reasonably be
expected to cause a Material Adverse Effect.

25

 

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

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

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

          (h) No Suspension. Trading in the Common Stock shall not have been suspended on the
Exchange and the Common Stock shall not have been delisted from the Exchange.

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

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

          (k) No Termination Event. There shall not have occurred any event that would permit
MLV to terminate this Agreement pursuant to Section 13(a).

     11. Indemnification and Contribution.

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

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

               (ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred,
joint or several, to the extent of the aggregate amount paid in settlement

26

 

of any litigation, or any investigation or proceeding by any governmental agency or body,
commenced or threatened, or of any claim whatsoever based upon any such untrue statement or
omission, or any such alleged untrue statement or omission; provided that (subject to Section
11(d) below) any such settlement is effected with the written consent of the Company, which
consent shall not unreasonably be delayed or withheld; and

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

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

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

          (c) Procedure. Any party that proposes to assert the right to be indemnified under
this Section 11 will, promptly after receipt of notice of commencement of any action
against such party in respect of which a claim is to be made against an indemnifying party or
parties under this Section 11, notify each such indemnifying party of the commencement of
such action, enclosing a copy of all papers served, but the omission so to notify such indemnifying
party will not relieve the indemnifying party from (i) any liability that it might have to any
indemnified party otherwise than under this Section 11 and (ii) any liability that it may
have to any indemnified party under the foregoing provision of this Section 11 unless, and
only to the extent that, such omission results in the forfeiture or material impairment of
substantive rights or defenses by the indemnifying party. If any such action is brought against
any indemnified party and it notifies the indemnifying party of its commencement, the indemnifying
party will be entitled to participate in and, to the extent that it elects by delivering written
notice to the indemnified party promptly after receiving notice of the commencement of the action
from the indemnified party, jointly with any other indemnifying party similarly notified, to assume
the defense of the action, with counsel reasonably satisfactory to the indemnified party, and after
notice from the indemnifying party to the indemnified party of its election to assume the defense,

27

 

the indemnifying party will not be liable to the indemnified party for any legal or other
expenses except as provided below and except for the reasonable costs of investigation subsequently
incurred by the indemnified party in connection with the defense. The indemnified party will have
the right to employ its own counsel in any such action, but the fees, expenses and other charges of
such counsel will be at the expense of such indemnified party unless (1) the employment of counsel
by the indemnified party has been authorized in writing by the indemnifying party, (2) the
indemnified party has reasonably concluded (based on written advice of counsel) that there may be
legal defenses available to it or other indemnified parties that are different from or in addition
to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on
written advice of counsel to the indemnified party) between the indemnified party and the
indemnifying party (in which case the indemnifying party will not have the right to direct the
defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in
fact employed counsel to assume the defense of such action within a reasonable time after receiving
notice of the commencement of the action, in each of which cases the reasonable fees, disbursements
and other charges of counsel will be at the expense of the indemnifying party or parties. It is
understood that the indemnifying party or parties shall not, in connection with any proceeding or
related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and
other charges of more than one separate firm admitted to practice in such jurisdiction at any one
time for all such indemnified party or parties. All such fees, disbursements and other charges
will be reimbursed by the indemnifying party promptly after the indemnifying party receives a
written invoice relating to fees, disbursements and other charges in reasonable detail. An
indemnifying party will not, in any event, be liable for any settlement of any action or claim
effected without its written consent. No indemnifying party shall, without the prior written
consent of each indemnified party, settle or compromise or consent to the entry of any judgment in
any pending or threatened claim, action or proceeding relating to the matters contemplated by this
Section 11 (whether or not any indemnified party is a party thereto), unless such
settlement, compromise or consent (1) includes an unconditional release of each indemnified party
from all liability arising out of such litigation, investigation, proceeding or claim and (2) does
not include a statement as to or an admission of fault, culpability or a failure to act by or on
behalf of any indemnified party.

          (d) Contribution. In order to provide for just and equitable contribution in
circumstances in which the indemnification provided for in the foregoing paragraphs of this
Section 11 is applicable in accordance with its terms but for any reason is held to be
unavailable from the Company or MLV, the Company and MLV will contribute to the total losses,
claims, liabilities, expenses and damages (including any investigative, legal and other expenses
reasonably incurred in connection with, and any amount paid in settlement of, any action, suit or
proceeding or any claim asserted, but after deducting any contribution received by the Company from
persons other than MLV, such as persons who control the Company within the meaning of the
Securities Act or Exchange Act, officers of the Company who signed the Registration Statement and
directors of the Company, who also may be liable for contribution) to which the Company and MLV may
be subject in such proportion as shall be appropriate to reflect the relative benefits received by
the Company on the one hand and MLV on the other hand. The relative benefits received by the
Company on the one hand and MLV on the other hand shall be deemed to be in the same proportion as
the total net proceeds from the sale of the Placement Shares (net of commissions to MLV but before
deducting expenses) received by the Company bear to the total compensation received by MLV (before
deducting expenses) from the sale of

28

 

Placement Shares on behalf of the Company. If, but only if, the allocation provided by the
foregoing sentence is not permitted by applicable law, the allocation of contribution shall be made
in such proportion as is appropriate to reflect not only the relative benefits referred to in the
foregoing sentence but also the relative fault of the Company, on the one hand, and MLV, on the
other hand, with respect to the statements or omission that resulted in such loss, claim,
liability, expense or damage, or action in respect thereof, as well as any other relevant equitable
considerations with respect to such offering. Such relative fault shall be determined by reference
to, among other things, whether the untrue or alleged untrue statement of a material fact or
omission or alleged omission to state a material fact relates to information supplied by the
Company or MLV, the intent of the parties and their relative knowledge, access to information and
opportunity to correct or prevent such statement or omission. The Company and MLV agree that it
would not be just and equitable if contributions pursuant to this Section 11(d) were to be
determined by pro rata allocation or by any other method of allocation that does not take into
account the equitable considerations referred to herein. The amount paid or payable by an
indemnified party as a result of the loss, claim, liability, expense, or damage, or action in
respect thereof, referred to above in this Section 11(d) shall be deemed to include, for
the purpose of this Section 11(d), any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such action or claim to the
extent consistent with Section 11(c) hereof. Notwithstanding the foregoing provisions of
this Section 11(d), MLV shall not be required to contribute any amount in excess of the
commissions received by it under this Agreement and no person found guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be
entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.
For purposes of this Section 11(d), any person who controls a party to this Agreement
within the meaning of the Securities Act, and any officers, directors, partners, employees or
agents of MLV, will have the same rights to contribution as that party, and each officer and
director of the Company who signed the Registration Statement will have the same rights to
contribution as the Company, subject in each case to the provisions hereof. Any party entitled to
contribution, promptly after receipt of notice of commencement of any action against such party in
respect of which a claim for contribution may be made under this Section 11(d), will notify
any such party or parties from whom contribution may be sought, but the omission to so notify will
not relieve that party or parties from whom contribution may be sought from any other obligation it
or they may have under this Section 11(d) except to the extent that the failure to so
notify such other party materially prejudiced the substantive rights or defenses of the party from
whom contribution is sought. Except for a settlement entered into pursuant to the last sentence of
Section 11(c) hereof, no party will be liable for contribution with respect to any action
or claim settled without its written consent if such consent is required pursuant to Section
11(c) hereof.

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

29

 

     13. Termination.

          (a) MLV may terminate this Agreement, by notice to the Company, as hereinafter specified at
any time (1) if there has been, since the time of execution of this Agreement or since the date as
of which information is given in the Prospectus, any Material Adverse Effect, or any development
that has occurred that is reasonably likely to have a Material Adverse Effect has occurred or in
the sole judgment of MLV makes it impractical or inadvisable to market the Placement Shares or to
enforce contracts for the sale of the Placement Shares, (2) if trading in the Common Stock has been
suspended or limited by the Commission or the Exchange, or if trading generally on the Exchange has
been suspended or limited, or minimum prices for trading have been fixed on the Exchange, (3) if
any suspension of trading of any securities of the Company on any exchange or in the
over-the-counter market shall have occurred and be continuing for at least ten (10) Trading Days,
(4) if a major disruption of securities settlements or clearance services in the United States
shall have occurred and be continuing, or (5) if a banking moratorium has been declared by either
U.S. Federal or New York authorities. Any such termination shall be without liability of any party
to any other party except that the provisions of Section 9 (Payment of Expenses),
Section 11 (Indemnification and Contribution), Section 12 (Representations and
Agreements to Survive Delivery), Section 18 (Governing Law and Time; Waiver of Jury Trial)
and Section 19 (Consent to Jurisdiction) hereof shall remain in full force and effect
notwithstanding such termination. If MLV elects to terminate this Agreement as provided in this
Section 13(a), MLV shall provide the required notice as specified in Section 14
(Notices).

          (b) The Company shall have the right, by giving ten (10) days notice as hereinafter specified
to terminate this Agreement in its sole discretion at any time after the date of this Agreement.
Such termination shall be without liability of any party to any other party except that the
provisions of Section 9, Section 11, Section 12, Section 18 and
Section 19 hereof shall remain in full force and effect notwithstanding such termination.

          (c) MLV shall have the right, by giving ten (10) days notice as hereinafter specified to
terminate this Agreement in its sole discretion at any time after the date of this Agreement. Such
termination shall be without liability of any party to any other party except that the provisions
of Section 9, Section 11, Section 12, Section 18 and Section
19 hereof shall remain in full force and effect notwithstanding such termination.

          (d) Unless earlier terminated pursuant to this Section 13, this Agreement shall
automatically terminate upon the earlier to occur of (i) the third (3rd) year anniversary of the
date hereof or (ii) issuance and sale of all of the Placement Shares through MLV on the terms and
subject to the conditions set forth herein except that, in either such case, the provisions of
Section 9, Section 11, Section 11, Section 12, Section 18
and Section 19 hereof shall remain in full force and effect notwithstanding such
termination.

          (e) This Agreement shall remain in full force and effect unless terminated pursuant to
Sections 13(a), (b), (c), or (d) above or otherwise by mutual
agreement of the parties; provided, however, that any such termination by mutual agreement shall in
all cases be deemed to provide that Section 9, Section 11, Section 12,
Section 18 and Section 19 shall remain in full force and effect. Upon termination
of this Agreement, the Company shall not have any liability

30

 

to MLV for any discount, commission or other compensation with respect to any Placement Shares
not otherwise sold by MLV under this Agreement.

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

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

McNicoll, Lewis & Vlak LLC

1251 Avenue of the Americas, 41st Floor

New York, NY 10020

Attention: General Counsel

Facsimile: (212) 217-3315

with a copy (which shall not constitute notice) to:

LeClairRyan, P.C.

830 Third Avenue

New York, New York 10022

Attention: James T. Seery

Facsimile: (973) 491-3415

Email: James.Seery@leclairryan.com

and if to the Company, shall be delivered to:

Cytokinetics, Incorporated

280 East Grand Avenue

South San Francisco, California 94080

Attention: Attention: President and Chief Executive Officer

Telephone: (650) 624-3000

Facsimile: (650) 624-3200

with a copy (which shall not constitute notice) to:

Cooley LLP

Five Palo Alto Square

3000 El Camino Real

Palo Alto, CA 94304

Attention: Michael E. Tenta

Telephone: (650) 843-5000

Facsimile: (650) 849-7400

31

 

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

     An electronic communication (“Electronic Notice”) shall be deemed written notice for
purposes of this Section 14 if sent to the electronic mail address specified by the
receiving party under separate cover. Electronic Notice shall be deemed received at the time the
party sending Electronic Notice receives confirmation of receipt by the receiving party. Any party
receiving Electronic Notice may request and shall be entitled to receive the notice on paper, in a
nonelectronic form (“Nonelectronic Notice”) which shall be sent to the requesting party
within ten (10) days of receipt of the written request for Nonelectronic Notice.

     15. Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the Company and MLV and their respective successors and the affiliates, controlling
persons, officers and directors referred to in Section 11 hereof. References to any of the
parties contained in this Agreement shall be deemed to include the successors and permitted assigns
of such party. Nothing in this Agreement, express or implied, is intended to confer upon any party
other than the parties hereto or their respective successors and permitted assigns any rights,
remedies, obligations or liabilities under or by reason of this Agreement, except as expressly
provided in this Agreement. Neither party may assign its rights or obligations under this
Agreement without the prior written consent of the other party.

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

     17. Entire Agreement; Amendment; Severability. This Agreement (including all
schedules and exhibits attached hereto and Placement Notices issued pursuant hereto) together with
that certain Non-Disclosure Agreement between the Company and MLV dated June 7, 2011 (the “NDA”),
constitute the entire agreement of the parties with respect to the subject matter hereof and
supersedes all other prior and contemporaneous agreements and undertakings, both written and oral,
among the parties hereto with regard to the subject matter hereof. Moreover, the Company and MLV
agree that all exchanges of information hereunder shall be governed by the terms of the NDA.
Neither this Agreement nor any term hereof may be amended except pursuant to a written instrument
executed by the Company and MLV. In the event that any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held

32

 

invalid, illegal or unenforceable as written by a court of competent jurisdiction, then such
provision shall be given full force and effect to the fullest possible extent that it is valid,
legal and enforceable, and the remainder of the terms and provisions herein shall be construed as
if such invalid, illegal or unenforceable term or provision was not contained herein, but only to
the extent that giving effect to such provision and the remainder of the terms and provisions
hereof shall be in accordance with the intent of the parties as reflected in this Agreement.

     18. GOVERNING LAW AND TIME; WAIVER OF JURY TRIAL. THIS AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES
OF CONFLICTS OF LAWS. SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME. THE COMPANY HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL
BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

     19. CONSENT TO JURISDICTION. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE
NON-EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH
OF MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH ANY TRANSACTION
CONTEMPLATED HEREBY, AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR
PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, THAT
SUCH SUIT, ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM OR THAT THE VENUE OF SUCH SUIT,
ACTION OR PROCEEDING IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS
AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY
THEREOF (CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED) TO SUCH PARTY AT THE ADDRESS IN
EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD
AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED TO
LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW.

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

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

33

 

     22. Effect of Headings.

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

     23. Permitted Free Writing Prospectuses.

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

     24. Absence of Fiduciary Relationship.

          The Company acknowledges and agrees that:

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

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

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

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

34

 

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

     25. Definitions.

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

     “Applicable Time” means (i) each Representation Date and (ii) the time of each sale of
any Placement Shares pursuant to this Agreement.

     “Issuer Free Writing Prospectus” means any “issuer free writing prospectus,” as
defined in Rule 433, relating to the Placement Shares that (1) is required to be filed with the
Commission by the Company, (2) is a “road show” that is a “written communication” within the
meaning of Rule 433(d)(8)(i) whether or not required to be filed with the Commission, or (3) is
exempt from filing pursuant to Rule 433(d)(5)(i) because it contains a description of the Placement
Shares or of the offering that does not reflect the final terms, in each case in the form filed or
required to be filed with the Commission or, if not required to be filed, in the form retained in
the Company’s records pursuant to Rule 433(g) under the Securities Act Regulations.

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

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

     All references in this Agreement to the Registration Statement, the Prospectus or any
amendment or supplement to any of the foregoing shall be deemed to include the copy filed with the
Commission pursuant to EDGAR; all references in this Agreement to any Issuer Free Writing
Prospectus (other than any Issuer Free Writing Prospectuses that, pursuant to Rule 433, are not
required to be filed with the Commission) shall be deemed to include the copy thereof filed with
the Commission pursuant to EDGAR; and all references in this Agreement to “supplements” to the
Prospectus shall include, without limitation, any supplements, “wrappers” or similar materials
prepared in connection with any offering, sale or private placement of any Placement Shares by MLV
outside of the United States.

35

 

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

	 	 	 	 	 
	 	Very truly yours,

CYTOKINETICS, INCORPORATED

 	 
	 	By:  	/s/ Sharon A. Barbari
 	 
	 	 	Name:  	Sharon A. Barbari 	 
	 	 	Title:  	Executive Vice President,
Finance and 

Chief Financial
Officer 	 
	 

	 	 	 	 	 
	 	ACCEPTED as of the date first-above written:

MCNICOLL, LEWIS & VLAK LLC

 	 
	 	By:  	/s/ Dean M. Colucci
 	 
	 	 	Name:  	Dean M. Colucci 	 
	 	 	Title:  	President and Chief Operating
Officer 	 
	 

36

 

SCHEDULE 1

 

FORM OF PLACEMENT NOTICE

 

	 	 	 	 	 
	 

	 	From:
	 	Cytokinetics, Incorporated
	 
	 	 	 	 
	 

	 	To:
	 	McNicoll, Lewis & Vlak LLC
	 

	 	 	 	Attention: Patrice McNicoll
	 
	 	 	 	 
	 

	 	Subject:
	 	At Market Issuance—Placement Notice
	 
	 	 	 	 
	 

	 	Gentlemen:	 	 

     Pursuant to the terms and subject to the conditions contained in the At Market Issuance Sales
Agreement between Cytokinetics, Incorporated, a Delaware corporation (the “Company”) and
McNicoll, Lewis & Vlak LLC (“MLV”), dated June 10, 2011, the Company hereby requests that
MLV sell up to ____________ of the Company’s Common Stock, par value $0.001 per share, at a minimum
market price of $_______ per share, during the time period beginning [month, day, time] and ending
[month, day, time].

[The Company may include such other sales parameters as it deems appropriate.]

 

 

SCHEDULE 2

 

Compensation

 

     The Company shall pay to MLV in cash, upon each sale of Placement Shares pursuant to this
Agreement, an amount equal to 3.0% of the gross proceeds from each sale of Placement Shares.

 

 

SCHEDULE 3

 

Notice Parties

 

The Company

     Robert Blum

     Sharon Barbari

MLV

     Randy Billhardt

     Dean Colucci

     Ryan Loforte

     Patrice McNicoll

 

 

SCHEDULE 4

 

Subsidiaries

 

None.

 

 

SCHEDULE 5

Documents to be incorporated by reference into Registration Statement:

The Company is incorporating by reference into the Registration Statement the information or
documents below, filed or to be filed with the Commission (Commission File No. 000-50633):

	 	•	 	the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010,
which was filed on March 11, 2011;
	 
	 	•	 	the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, which
was filed on May 6, 2011;
	 
	 	•	 	the Company’s Current Reports on Form 8-K filed on January 4, 2011; February 9, 2011;
February 10, 2011; February 14, 2011 (as to information therein explicitly filed with the
SEC only); March 1, 2011; March 18, 2011; April 18, 2011; April 18, 2011; April 19, 2011
(as amended on April 20, 2011); April 27, 2011; May 20, 2011; June 2, 2011; and June 10,
2011;
	 
	 	•	 	the information specifically incorporated by reference into the Company’s 2010 Annual
Report on Form 10-K referred to above from the Company’s definitive proxy statement
relating to its 2011 annual meeting of stockholders, which was filed on March 28, 2011; and
	 
	 	•	 	the description of the Company’s common stock contained in its Registration Statement on
Form 8-A, filed with the SEC on March 12, 2004, including any amendment or reports filed
for the purpose of updating such description.

All future documents that the Company files with the SEC pursuant to Section 13(a), 13(c) or
15(d) of the Exchange Act, including those made after the date of the initial filing of the
Registration Statement and prior to effectiveness of such Registration Statement shall also be
deemed to be incorporated by reference in the Registration Statement and to be a part of it from
the filing dates of such documents (except in each case the information contained in such documents
to the extent “furnished” and not “filed”). Certain statements in the Registration Statement update
and replace information in the above listed documents incorporated by reference. Likewise,
statements in or portions of a future document incorporated by reference may update and replace
statements in and portions of the Registration Statement or the above listed documents. If any
statement in one of these documents is inconsistent with a statement in another document having a
later date, the statement in the document having the later date modifies or supersedes the earlier
statement.

 

 

EXHIBIT 7(l)

Form of Representation Date Certificate

This Officers Certificate (this “Certificate”) is executed and delivered in connection with
Section 7(l) of the At Market Issuance Sales Agreement (the “Agreement”), dated
June 10, 2011, and entered into between Cytokinetics, Incorporated (the “Company”) and
McNicoll, Lewis & Vlak LLC. All capitalized terms used but not defined herein shall have the
meanings given to such terms in the Agreement.

     The undersigned, a duly appointed and authorized officer of the Company, having made
reasonable inquiries to establish the accuracy of the statements below and having been authorized
by the Company to execute this certificate on behalf of the Company, hereby certifies as follows:

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

     2. Each of the representations and warranties of the Company contained in the Agreement were
true and correct in all material respects, when originally made, and, except for those
representations and warranties that speak solely as of a specific date, are true and correct as of
the date of this Certificate.

     3. Except as waived by MLV in writing, each of the covenants required to be performed by the
Company in the Agreement on or prior to the date of the Agreement, this Representation Date, and
each such other date prior to the date hereof as set forth in the Agreement, has been duly, timely
and fully performed in all material respects and each condition required to be complied with by the
Company on or prior to the date of the Agreement, this Representation Date, and each such other
date prior to the date hereof as set forth in the Agreement has been duly, timely and fully
complied with in all material respects.

     4. Subsequent to the date of the most recent financial statements in the Prospectus, and
except as described in the Prospectus, including Incorporated Documents, there has been no event
that has resulted in a Material Adverse Effect.

     5. No stop order suspending the effectiveness of the (a) Registration Statement or of any part
thereof or (b) the qualification or registration of the Placement Shares under the securities or
Blue Sky laws of any jurisdiction has been issued, and, to the Company’s

 

 

knowledge, no proceedings for that purpose have been instituted or are pending or threatened by any
securities or other governmental authority (including, without limitation, the Commission).

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

     The undersigned has executed this Officer’s Certificate on behalf of the Company as of the
date written below.

Date: _________________________

	 	 	 	 	 
	 	CYTOKINETICS, INCORPORATED

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

EXHIBIT 7(m)(1)

	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, lease and operate its property
and assets, to conduct its business as described in the Registration Statement and to
execute and deliver the Agreement and to perform its obligations thereunder, including,
without limitation, to issue, sell and deliver the Placement Shares.
	 
	3.	 	The Company is duly qualified to do business as a foreign corporation and is in good
standing under the laws of the State of California.
	 
	4.	 	All corporate action on the part of the Company necessary for the authorization,
execution and delivery of the Agreement by the Company, the authorization, sale, issuance
and delivery of the Placement Shares and the performance by the Company of its obligations
under the Agreement has been taken.
	 
	5.	 	The Agreement has been duly and validly authorized, executed and delivered by the
Company.
	 
	6.	 	The Placement Shares have been duly authorized and, when issued and paid for pursuant
to the terms of the Agreement, will be validly issued, fully paid and nonassessable. The
holders of outstanding shares of capital stock of the Company are not entitled to
preemptive rights or, to Company Counsel’s knowledge, rights of first refusal or other
similar rights to subscribe for the Placement Shares (other than rights which have been
waived in writing or otherwise satisfied) under the Company’s Restated Certificate of
Incorporation, as amended (the “Charter”) or Amended and Restated Bylaws (the “Bylaws”),
the DGCL or any Material Contract.
	 
	7.	 	The issuance and sale of the Placement Shares pursuant to the Agreement will not result
in a breach or violation of (i) any Material Contract, (ii) the Charter or Bylaws of the
Company or (iii) to Company Counsel’s knowledge, any statute, law, rule, or regulation
which, in Company Counsel’s experience is typically applicable to transactions of the
nature contemplated by the Agreement and is applicable to the Company, or any order, writ,
judgment, injunction, decree, or award that has been entered against the Company and of
which Company Counsel is aware, in each case the breach or violation of which would
materially and adversely affect the Company.
	 
	8.	 	To Company Counsel’s knowledge, there is (a) no action, suit or proceeding by or before
any court or other governmental agency, authority or body or any arbitrator pending or
overtly threatened against the Company by a third party of a character required to be
disclosed in the Registration Statement or the Prospectus that is not disclosed therein as
required by the Securities Act and the rules thereunder and (b) no indenture, contract,
lease, mortgage, deed of trust, note agreement, loan or other agreement or instrument of a

 

 

	 	 	character required to be filed as an exhibit to the Registration Statement or the
Incorporated Documents, which is not filed as required by the Securities Act and the rules
thereunder.
	 
	9.	 	No consent, approval, authorization or filing with or order of any U.S. Federal or
California court or governmental agency or body having jurisdiction over the Company is
required for the consummation by the Company of the transactions contemplated by the
Agreement, except such as have been obtained under the Securities Act and except such as
may be required under the securities or blue sky laws of any jurisdiction in connection
with the purchase and distribution of the Placement Shares by you in the manner
contemplated in the Agreement or under the bylaws, rules and regulations of FINRA.
	 
	10.	 	The Company is not, and, after giving effect to the offering and sale of the Placement
Shares and the application of the proceeds thereof as described in the Prospectus, will not
be, an “investment company” as defined in the Investment Company Act.
	 
	11.	 	The Registration Statement has become effective under the Securities Act and no stop
order suspending the effectiveness of either the Registration Statement has been issued.
Any required filing of the Prospectus pursuant to Rule 424(b) under the Securities Act has
been made in the manner and within the time period required by Rule 424(b).
	 
	12.	 	The Registration Statement as of [ ] (other than the financial statements and notes
thereto or other financial or statistical data derived therefrom, as to which Company
Counsel expresses no opinion) appeared on its face to comply as to form in all material
respects with the applicable requirements of the Securities Act and the rules thereunder.
For purposes of this paragraph, Company Counsel has assumed that the statements made in the
Registration Statement are correct and complete.

* * * * *

     In connection with the preparation by the Company of the Registration Statement and the
Prospectus, Company Counsel participated in discussions and conferences with officers and other
representatives of the Company, with its independent registered public accounting firm, as well as
with its representatives and counsel. At such discussions and conferences, the contents of the
Registration Statement and the Prospectus and related matters were discussed. Company Counsel has
not independently verified, and accordingly is not confirming and assume no responsibility for, the
accuracy, completeness or fairness of the statements contained in the Registration Statement or the
Prospectus. On the basis of the foregoing, no facts have come to Company Counsel’s attention that
have caused it to believe that:

     (i) the Registration Statement (except as to (A) the financial statements and schedules,
related notes and other financial data and statistical data derived therefrom, (B) any intellectual
property related matters and (C) any matters related to regulatory law, as to which, in each case,
Company Counsel expresses no comment), at the date and time that the Registration

 

 

Statement became effective, contained any untrue statement of a material fact or omitted to
state a material fact required to be stated therein or necessary to make the statements therein not
misleading; or

(ii) the Prospectus (except as to (A) the financial statements and schedules, related notes and
other financial data and statistical data derived therefrom, (B) any intellectual property related
matters and (C) any matters related to regulatory law, as to which, in each case, Company Counsel
expresses no comment) as of its date or dates as amended or supplemented, as applicable, and as of
the date hereof contained or contains any untrue statement of a material fact or omitted or omits
to state a material fact necessary, in order to make the statements therein, in light of the
circumstances under which they were made, not misleading.

 

 

EXHIBIT 7(m)(2)

     In connection with the preparation by the Company of the Registration Statement and the
Prospectus, Company Counsel participated in discussions and conferences with officers and other
representatives of the Company, with its independent registered public accounting firm, as well as
with its representatives and counsel. At such discussions and conferences, the contents of the
Registration Statement and the Prospectus and related matters were discussed. Company Counsel has
not independently verified, and accordingly is not confirming and assume no responsibility for, the
accuracy, completeness or fairness of the statements contained in the Registration Statement or the
Prospectus. On the basis of the foregoing, no facts have come to Company Counsel’s attention that
have caused it to believe that:

     (i) the Registration Statement (except as to (A) the financial statements and schedules,
related notes and other financial data and statistical data derived therefrom, (B) any intellectual
property related matters and (C) any matters related to regulatory law, as to which, in each case,
Company Counsel expresses no comment), at the date and time that the Registration Statement became
effective, contained any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary to make the statements therein not misleading; or

(ii) the Prospectus (except as to (A) the financial statements and schedules, related notes and
other financial data and statistical data derived therefrom, (B) any intellectual property related
matters and (C) any matters related to regulatory law, as to which, in each case, Company Counsel
expresses no comment) as of its date or dates as amended or supplemented, as applicable, and as of
the date hereof contained or contains any untrue statement of a material fact or omitted or omits
to state a material fact necessary, in order to make the statements therein, in light of the
circumstances under which they were made, not misleading.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}]]