Document:

EMC Corporation Deferred Compensation Retirement Plan, as amended

 Exhibit 4.2 
 EMC CORPORATION 
 EXECUTIVE DEFERRED COMPENSATION RETIREMENT PLAN, 
 as amended December 5, 2005 
 effective for amounts earned and vested after December 31, 2004 
 Article 1. INTRODUCTION 
 1.1. Adoption of Plan. The EMC Corporation Executive Deferred Compensation Retirement Plan has been adopted effective as of January 1,
2001. The Plan has been amended as of December 5, 2005, and is effective, as so amended, for amounts that are subject to section 409A of the Internal Revenue Code (the “Code”) by reason of having been earned and vested after
December 31, 2004. 
 1.2. Purpose of Plan. The Company (as defined below) has adopted the Plan (as defined below) to
provide a competitive level of retirement benefits to certain designated employees and directors of the Company or any of its Subsidiaries by allowing them to defer receipt of designated percentages of their Compensation (as defined below) and to
provide, in the sole discretion of the Company, Company Credits (as defined below). 
 1.3. Status of Plan. The Plan is
intended to be “a plan which is unfunded and is maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees” within the meaning of Sections 201(2),
301(a)(3) and 401(a)(1) of ERISA (as defined below), and shall be interpreted and administered to the fullest extent possible in a manner consistent with that intent. 
 Article 2. DEFINITIONS 
 Wherever used herein, the following terms shall have the meanings set forth
below, unless a different meaning is clearly required by the context: 
 2.1. “Account” means, for each Participant, the
account established for his or her benefit under Section 5.1. 
 2.2. “Administrator” means the Compensation Committee
of the Board (as defined below) as it may be constituted from time to time, or otherwise means a committee comprised of such members of the Board or executive officers of the Company as may be appointed by the Board or the Company’s President
or Chief Executive Officer from time to time. 
 2.3. “Board” means the Board of Directors of the Company, as it may be
constituted from time to time. 

 2.4. “Change of Control” means the determination by the Administrator, in its sole
discretion, that any of the following shall have occurred: (a) a change in the ownership of the Company, (b) a change in the effective control of the Company, or (c) a change in the ownership of a substantial portion of the assets of
the Company, each as defined for purposes of Code section 409A(a)(2)(A)(v). 
 2.5. “Code” means the Internal Revenue Code
of 1986, as amended from time to time. Reference to any section or subsection of the Code includes reference to any comparable or succeeding provisions of any legislation which amends, supplements or replaces such section or subsection. 

2.6. “Company” means EMC Corporation, a corporation formed under the laws of The Commonwealth of Massachusetts. 
 2.7. “Company Credit” means any credit from the Company which is received by a Participant under Section 4.2. 
 2.8. “Company Credit Subaccount” means the subaccount within the Participant’s Account to which Company Credits and allocable
earnings credits, if any, are credited. 
 2.9. “Company Credit Eligible Employee” means an employee of the Company or any
of its Subsidiaries selected by the Administrator as eligible for Company Credits under Section 4.2 from among the group of highly compensated or managerial employees of the Company or any of its Subsidiaries. 
 2.10. “Company Stock” means the Company’s common stock, par value $.01 per share. 
 2.11. “Compensation” means any cash bonuses, restricted stock units (“RSUs”), and directors’ fees payable from time to
time by the Company or any of its Subsidiaries to a Participant; provided, however, that with respect to each Participant, the Administrator in its sole discretion may determine which specific types of Compensation may be deferred under the Plan by
such Participant; provided further, however, that the Administrator may, in its sole discretion, amend this Section 2.11 to cover other types of compensation payable from time to time by the Company or any of its Subsidiaries to a Participant,
including, without limitation, cash commissions and salary. 
 2.12. “Disabled” or “Disability” means any
condition or conditions that (i) meets the definition of such terms under the EMC Corporation Long-Term Disability Basic Plan, and (ii) constitutes a medically determinable physical or mental impairment that can be expected to result in
death or to last for a continuous period of not less than 12 months. 
  

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 2.13. “Elective Deferral” means the portion of Compensation which is deferred by a
Participant under Section 4.1. 
 2.14. “Elective Deferral Subaccount” means the subaccount within the
Participant’s Account to which Elective Deferrals and allocable earnings credits are credited. 
 2.15. “Elective Deferral
Eligible Employee” means an employee of the Company or any of its Subsidiaries selected by the Administrator as eligible for Elective Deferrals under Section 4.1 from among the group of highly compensated or managerial employees of the
Company or any of its Subsidiaries. 
 2.16. “Eligible Employee” means an employee of the Company or any of its Subsidiaries
who is a Company Credit Eligible Employee, an Elective Deferral Eligible Employee, or both. An employee is treated as an Eligible Employee as of the date the employee is notified of his or her eligibility. 
 2.17. “Eligible Director” means any member of the Board. 
 2.18. “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time. Reference to any section or subsection of ERISA includes reference to any comparable or
succeeding provisions of any legislation which amends, supplements or replaces such section or subsection. 
 2.19.
“Participant” means any individual who participates in the Plan in accordance with Article 3. 
 2.20. “Plan”
means the EMC Corporation Executive Deferred Compensation Retirement Plan as set forth herein and all subsequent amendments hereto. 
 2.21. “Plan Year” means in the case of the first Plan Year, the period beginning January 1, 2001 and ending on December 31, 2001, and thereafter, the 12-month period ending each December 31. 
 2.22. “Resignation of Service” means the voluntary resignation from service for the Company by an Eligible Director. 
 2.23. “Retirement” means the voluntary retirement by a Participant from service with the Company (a) after such Participant has
attained 55 years of age and five years of service with the Company or (b) after such Participant has attained twenty years of service with the Company or any of its Subsidiaries; provided, in each such case, that such Participant complies with
the terms set forth in the Company’s form of Key Employee Agreement (which agreement (i) shall be deemed to apply to such Participant whether or not such Participant is a party to a Key Employee Agreement and (ii) is expressly
incorporated by reference herein and made a part of the Plan). 
  

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 2.24. “Subsidiary” or “Subsidiaries” means a corporation or corporations in
which the Company owns, directly or indirectly, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock. 
 Article 3. PARTICIPATION 
 3.1. Commencement of Participation. Any individual who is an Eligible Employee or an
Eligible Director and who has elected to defer part of his or her Compensation for the Plan Year in accordance with Section 4.1, or who has been selected by the Company in its sole discretion to receive a Company Credit in accordance with
Section 4.2, shall become a Participant on the date such election or credit is made. 
 3.2. Continued Participation. An
individual who has become a Participant in the Plan shall continue to be a Participant so long as any amount remains credited to his or her Account. 
 Article 4. DEFERRALS AND CREDITS 
 4.1. Elective Deferrals 
 (a) Initial election to defer. An Elective Deferral Eligible Employee or Eligible Director may make an initial election to defer a
designated portion of his or her Compensation to be earned during a Plan Year, by filing an election with the Administrator prior to the first day of the Plan Year in which such Compensation is to be earned or, as determined by the Administrator, by
such other date that is permitted for an initial deferral election under Code section 409A; provided, however, that with respect to each Participant, the Administrator in its sole discretion may determine which specific types of Compensation may be
deferred under the Plan by such Participant. An individual who first becomes an Elective Deferral Eligible Employee or Eligible Director on or after the first day of any Plan Year may elect to defer a designated portion of his or her Compensation to
be earned following the election during the Plan Year by filing an election with the Administrator within 30 days of becoming an Elective Deferral Eligible Employee or Eligible Director. 
 (b) Nature of Election. Each election under this Section 4.1 for a Plan Year (or the balance of a Plan Year) shall be made on
a form (whether written, electronic, or otherwise) prescribed or approved by the Administrator, shall be irrevocable by the 

  

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Participant for the applicable Plan Year, except as provided in Section 4.1(c), and is effective only once the election form is completed and filed with
the Administrator. The election form shall specify the whole percentage or flat dollar amount of each type of Compensation that is to be deferred for the applicable Plan Year. In accordance with Article 6, each Participant shall indicate on the
election form when the amount that is to be deferred for the applicable Plan Year is to be paid (e.g., upon Retirement or Resignation of Service, upon a fixed distribution date pursuant to Section 6.2, or upon a Change of Control) and the
method of payment (e.g., in a single lump sum payment, in a number of annual installments or in any other method approved by the Administrator). The deferred amounts shall be credited to the Participant’s Elective Deferral Subaccount as of the
date such Compensation would otherwise have been paid to the Participant. 
 (c) Election to Change Time or Form of
Distribution. Any Participant who has made an initial election to defer Compensation under Section 4.1(a) may make an additional election to change the time or form of distribution. Any such election to change the time or form of
distribution shall not take effect until at least 12 months after the date of the election, must defer payment not less than 5 years from the date payment would otherwise be made or, in the case of installments, would begin to be made, and, where
the original election was to a fixed distribution date pursuant to Section 6.2, must be made no less than 12 months prior to the date of the otherwise scheduled first distribution date. 
 4.2. Company Credits. Notwithstanding any other provisions of the Plan, the Company shall not be obligated to credit a Company Credit to
the Company Credit Subaccount of a Company Credit Eligible Employee. The Company may determine from time to time, in its sole discretion, to credit a Company Credit, in an amount the Company may determine in its sole discretion, to the Company
Credit Subaccount of a Company Credit Eligible Employee. 
 Article 5. ACCOUNTS; INTEREST 
 5.1. Accounts. The Administrator shall establish an Account for each Participant consisting of an Elective Deferral Subaccount and Company
Credit Subaccount, reflecting Elective Deferrals and Company Credits, respectively, and any adjustments hereunder. As soon as reasonably practical after the end of each Plan Year, the Administrator shall provide the Participant with a statement of
his or her Account. 
 5.2. Earnings Measurement. The Administrator shall identify one or more funds (such as mutual funds or
bank collective funds) from time to time for the purpose of measuring earnings credits to Participants’ Accounts. Each Participant may specify which one or more of such funds he or she wishes to be used as a measuring vehicle for designated
percentages of his or her Account, in 

  

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such form and manner, and with such notice, as the Administrator may prescribe, provided that such directions may be given on a prospective basis only and
further provided that any deferral of RSUs shall be treated as invested in Company Stock. Changes in Participant directions hereunder may be made by a Participant no more than once every thirty (30) days or at such other times or as frequently
as the Administrator may prescribe. Each Participant’s Account shall be adjusted from time to time (at least quarterly) to reflect the fair market value that would be ascribed to the Account if the amounts credited to the Account were actually
invested in the funds as directed by the Participant. For purposes of Company Credits, earnings credits (if any) shall begin to accrue as of the actual date of contribution and investment by the Company of such funds into a grantor trust pursuant to
Section 9.1. 
 5.3. Payments. Each Participant’s Account shall be reduced by the amount of any payment made to or on
behalf of the Participant under Article 6 as of the date such payment is made. 
 5.4. Vesting. A Participant will at all times
be 100% vested in amounts credited to his or her Elective Deferral Subaccount. A Participant will earn an interest to be vested in amounts credited to his or her Company Credit Subaccount according to any vesting schedule(s) adopted by the Company
in its sole discretion; provided, however, that in the event (a) that a Participant becomes Disabled or (b) of a Change of Control a Participant will become 100% vested in his or her Company Credit Subaccount. 
 5.5 Detrimental Activity. 
 (a) Notwithstanding any other provisions of the Plan, in the event that a Participant engages in “Detrimental Activity” (as defined below) at any time, the Administrator may in its sole discretion cancel or
rescind at any time all amounts, if any, credited to such Participant’s Company Credit subaccount, whether or not fully vested. Furthermore, in the event that a Participant engages in Detrimental Activity at any time during the twelve
(12) months after the termination of his or her employment with the Company or any of its Subsidiaries for any reason or termination of service as a director of the Company for any reason, as the case may be, the Company may require such
Participant at any time until the later of (A) two years after such Participant’s termination of employment for any reason or termination of service as a director of the Company for any reason, as the case may be, or (B) two years
after such Participant engaged in Detrimental Activity to pay to the Company (1) an amount equal to any distributions previously made by the Company to such Participant from such Participant’s Company Credit Account and (2), if the Company
commences an action against such Participant (by way of a claim or counterclaim and including declaratory claims), in which it is preliminarily or finally determined that such Participant engaged in Detrimental Activity or otherwise violated this
Section 5.5, an amount equal to the Company’s costs and fees incurred in such action, including but not limited to, the Company’s reasonable attorneys’ fees. The Company shall be entitled to set off any such 

  

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amounts owed to the Company against any amounts owed to such Participant by the Company, including without limitation, any amounts to be distributed from
such Participant’s Elective Deferral Subaccount. For this purpose “Detrimental Activity” means, in the Company’s sole determination, that the Participant has, directly or indirectly, (a) become associated in any capacity
with any enterprise that is, or may be deemed to be, in competition with any business of the Company or any of its Subsidiaries, (b) solicited, induced or attempted to induce, in any enterprise that is competitive with the Company or any of its
Subsidiaries, any customers or employees of the Company to curtail or discontinue their relationship with the Company or any of its Subsidiaries, (c) disclosed, communicated or misused, to the detriment of the Company or any of its
Subsidiaries, any confidential or proprietary information relating to the Company or any of its Subsidiaries to any person or entity not associated with the Company or any of its Subsidiaries, (d) failed to comply with the terms of the Plan,
(e) failed to comply with any term set forth in the Company’s Key Employee Agreement (irrespective of whether the Participant is a party to the Key Employee Agreement), (f) engaged in any activity that results in termination of the
Participant’s employment for cause, (g) violated any rule, policy, procedure or guideline of the Company or any of its Subsidiaries, or (h) been convicted of, or has entered a guilty plea with respect to, a crime whether or not
connected with the Company or any of its Subsidiaries. 
 (b) Notwithstanding anything herein to the contrary, this
Section 5.5 shall not in any way amend, modify or affect any other plan, agreement, instrument or understanding, including without limitation, any of the Company’s stock option plans, or any of the rights of the Company or any of its
Subsidiaries thereunder with respect to any Detrimental Activity or similar activity committed by a Participant. The Company expressly reserves all of its rights under any such other plan, agreement, instrument or understanding and this
Section 5.5 shall not be construed in any way as a waiver of any such rights. 
 Article 6. - PAYMENTS 
 6.1. Payment Upon Retirement or Resignation of Service. In the event a Participant’s employment with the Company or any of its
Subsidiaries is terminated due to the Participant’s Retirement, or in the event that a Participant’s service as a director of the Company is terminated due to the Participant’s Resignation of Service, then beginning in the January
following such Retirement or Resignation of Service, payments will be made to the Participant as follows: 
 (a) With respect
to the Participant’s Elective Deferral Subaccount, unless the Participant elects an alternative form of payment as described in Section 6.1(c) either in the initial Elective Deferral election or an effective election to change the time or
form of distribution, as described in Section 4.1, payments to be made upon Retirement or Resignation of Service will be made in a single lump sum payment comprised of cash or, in the case of Compensation payable in Company Stock, Company
Stock. 
  

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 (b) With respect to the vested portion, if any, of the Participant’s Company Credit
Subaccount, unless the Participant makes an effective election to change the time or form of distribution, as described in Section 4.1, payments to be made upon Retirement will be made in a single lump sum in cash or, in the case of
Compensation payable in Company Stock, in Company Stock. The unvested portion, if any, of the Participant’s Company Credit Subaccount shall be forfeited automatically upon Retirement. 
 (c) A Participant may elect, either in the initial Elective Deferral election or by means of an effective election to change the time or
form of distribution, as described in Section 4.1, to receive the balance of the Participant’s Account in payments of five, ten or fifteen annual installments. A Participant shall elect, either in the initial Elective Deferral election or
an effective election to change the time or form of distribution, as described in Section 4.1, the year in which the first installment shall be made following Retirement or Resignation of Service. The first installment shall be made in January
of the year elected and succeeding installments shall be made in January of the four, nine, or fourteen years, as applicable, following the year elected. If a Participant shall fail to elect the date upon which the first installment shall be made
following Retirement or Resignation of Service, then the first installment shall be made the January following Retirement or Resignation of Service and succeeding installments shall be made in January of the following four, nine, or fourteen years,
as applicable. The amount of each installment shall be determined by dividing the Participant’s applicable Account balance (adjusted through the day before the installment is paid) by the number of installments remaining. Notwithstanding the
foregoing, subject to the prior approval of the Administrator in its sole discretion, a Participant may elect, either in the initial Elective Deferral election or an effective election to change the time or form of distribution, as described in
Section 4.1, to receive the balance of the Participant’s Account in such amounts and at such times as the Participant shall describe in such election. Any election made under this Section 6.1(c) shall be made on a form (whether
written, electronic, or otherwise) prescribed or approved by the Administrator. 
 6.2. In-Service Distribution. In connection
with his or her election to defer Compensation pursuant to Section 4.1, a Participant may specify a year as the fixed distribution date for the commencement of payment of his or her Elective Deferral Subaccount which may be prior to termination
of employment or termination of service as a director of the Company, which shall be payable in a single lump sum distribution in January of the year elected or in five annual installments commencing in January of the year elected; provided,
however, that such fixed distribution date shall not be earlier than the third anniversary of the last day of the Plan Year in which such Compensation was deferred. Any lump sum or installment distributions shall be paid in cash or, in the case of
Compensation payable in Company stock, in Company Stock. If such distribution is to be paid in five annual installments, then the 

  

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first installment shall be made in January of the year elected and succeeding installments shall be made in January of the four years following the year
elected (for a total of five installments). The amount of each installment shall be determined by dividing the Participant’s applicable Account balance (adjusted through the day before the installment is paid) by the number of installments
remaining. Any election made under this Section 6.2 shall be made in on a form (whether written, electronic, or otherwise) prescribed or approved by the Administrator and may be changed on a form (whether written, electronic, or otherwise)
prescribed or approved by the Administrator only as provided in Section 4.1(c). 
 In the event the Participant’s employment with
the Company or any of its Subsidiaries or service as a director of the Company is terminated prior to the fixed distribution date, then no payments shall be made pursuant to this Section 6.2 and, instead, the balance of the Participant’s
Elective Deferral Subaccount shall be paid based on the Participant’s termination of employment by reason of Retirement, Disability, death or otherwise, or termination of service as a director of the Company by reason of Resignation of Service,
Disability, death or otherwise, as the case may be. In the event the Participant’s employment with the Company or any of its Subsidiaries is terminated by reason of Retirement, Disability or death or the Participant’s service as a director
of the Company is terminated by reason of Resignation of Service, Disability or death, as the case may be, after the fixed distribution date has occurred and the Participant had elected to receive such distribution under this Section 6.2 in
five annual installments, then payments shall be made at the same time and in the same manner as elected by the Participant under this Section 6.2. In the event the Participant’s employment with the Company or any of its Subsidiaries is
terminated for any reason other than Retirement, Disability or death or the Participant’s service as a director of the Company is terminated for any reason other than Resignation of Service, Disability or death after the fixed distribution date
has occurred and the Participant had elected to receive such distribution under this Section 6.2 in five annual installments, then notwithstanding such election, the remaining portion of the distribution shall be made in a single lump sum
payment to the Participant 30 days after the Participant’s employment with the Company or any of its Subsidiaries is terminated for any reason other than Retirement, Disability or death or the Participant’s service as a director of the
Company is terminated for any reason other than Resignation of Service, Disability or death. Any lump sum or installment distributions shall be paid in cash or, in the case of Compensation payable in Company Stock, in Company Stock. 
 6.3. Payment Upon Termination of Employment or Service as a Director Other than by Retirement or Resignation of Service. In the event a
Participant’s employment with the Company or any of its Subsidiaries or service as a director of the Company is terminated other than by Retirement or Resignation of Service (including by death or Disability), then 30 days following the
termination (or, in the case of Disability, the determination of a Disability), payments of both the Elective Deferral Subaccount and the Company Credit Subaccount will be made to the Participant (or the Participant’s beneficiary or estate, in
the case of the 

  

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Participant’s death) in a lump sum. Payments shall be made in cash or, in the case of Compensation payable in Company Stock, in Company Stock. A
Participant shall designate his or her beneficiary or beneficiaries who, in the event of the Participant’s death, shall be entitled to receive the balance of the Participant’s Account. Such designation shall be made on a form (whether
written, electronic, or otherwise) prescribed or approved by the Administrator, and may be revoked on a form (whether written, electronic, or otherwise) prescribed or approved by the Administrator at any time prior to the Participant’s death.
If a Participant fails to designate a beneficiary or no designated beneficiary survives the Participant, then payments hereunder shall be made to the Participant’s estate. 
 6.4. Payment Upon a Change of Control. In connection with his or her election to defer Compensation pursuant to Section 4.1, a
Participant may elect to receive the balance of the Participant’s Account in a single lump sum distribution payable in cash or, in the case of Compensation payable in Company Stock, in Company Stock, 30 days following the Administrator’s
determination that there has been a Change of Control. Any election made under this Section 6.4 shall be made on a form (whether written, electronic, or otherwise) prescribed or approved by the Administrator and may be changed on a form
(whether written, electronic, or otherwise) prescribed or approved by the Administrator only as provided in Section 4.1(c). 
 6.5.
Severe Financial Hardship Distribution. A Participant shall not be entitled to distribution of any portion of his or her Accounts before payments are otherwise due under the normal terms of the Plan or a timely election made under the
terms of the Plan. However, in cases of extreme financial hardship, the Administrator may authorize (on a nondiscriminatory basis and taking into account other resources of the Participant) a hardship distribution to be made 7 days following
determination of the hardship, of the portion of a Participant’s deferral Account in the minimum amount that is required to meet the need created by the extreme financial hardship. 
 In order to qualify under this section, the hardship must be the result of an unforeseeable emergency. For this purpose, an “unforeseeable
emergency” is an extraordinary and unanticipated emergency that is caused by an event beyond the control of the Participant (such as an illness, accident or casualty) and that would result in severe financial hardship to the Participant if the
early distribution were not permitted. The Participant must supply written evidence of the financial hardship and must declare, under penalty of perjury, that the Participant has no other resources available to meet the emergency, including the
resources of the Participant’s spouse and minor children that are reasonably available to the Participant. The Participant must also declare that the need cannot be met by any of the following: 
  

	 	(a)	Reimbursement or compensation by insurance or otherwise; 

  

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	 	(b)	Reasonable liquidation of the Participant’s assets (or the assets of the spouse or minor children of the Participant) to the extent such liquidation will not itself cause
severe financial hardship; 

  

	 	(c)	Suspending all of the Participant’s contributions to any employee benefit plan (and the spouse’s contributions to any plan), including this Plan, to the extent such
contributions may be suspended; 

  

	 	(d)	Applying for distributions or loans from any other plans in which the Participant or the Participant’s spouse participate; or 

  

	 	(e)	Borrowing from commercial sources on reasonable commercial terms in an amount sufficient to satisfy the need. 

 6.6. Payments to a Participant Who is an Eligible Director and an Eligible Employee. Notwithstanding anything in this Article 6 to the
contrary, in the event that payments are to be made from a Participant’s Account pursuant to this Article 6 and such Participant is or was both an Eligible Director and an Eligible Employee, then, the payments shall be made such that the
portion of the balance of the Participant’s Account attributable to Compensation earned by the Participant as an employee of the Company or any of its Subsidiaries shall be paid in accordance with the applicable provisions of this Article 6
relating to the termination of such Participant’s employment by reason of Retirement, Disability, death or otherwise, as the case may be, and the portion of the balance of the Participant’s Account attributable to Compensation earned by
the Participant for his or her service as a director of the Company shall be paid in accordance with the applicable provisions of this Article 6 relating to the termination of such Participant’s service as a director by reason of Resignation of
Service, Disability, death or otherwise, as the case may be. 
 6.7. Payments to Specified Employees. Notwithstanding any other
provision of this Plan, in the case of a Participant who is determined to be a specified employee for purposes of Code section 409A(a)(2)(B), no payment required to be made under this Plan as a result of Retirement, Resignation of Service, or
termination of service other than by death or Disability, shall be made earlier than the date that is six months after termination. 
 Article 7.
ADMINISTRATOR 
 7.1. Plan Administration and Interpretation. The Administrator shall oversee the administration of
the Plan. The Administrator shall have complete discretionary control and authority to administer all aspects of the Plan and to determine the rights and benefits and all claims, demands and actions arising out of the provisions of the Plan of any
Participant, beneficiary, deceased Participant, or any other person having or claiming to have any interest under the Plan. The Administrator shall have the exclusive 

  

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discretionary power to interpret the Plan and to decide all matters under the Plan. The Administrator also shall have the exclusive discretionary power to
adopt, amend and rescind rules and guidelines for the administration of the Plan and for its own acts and proceedings. Such interpretation and decision shall be final, conclusive and binding on all Participants and any person claiming under or
through any Participant, in the absence of clear and convincing evidence that the Administrator acted arbitrarily and capriciously. Any individual serving as Administrator, or on a committee acting as Administrator, who is a Participant, shall not
vote or act on any matter relating solely to himself or herself. When making a determination or calculation, the Administrator shall be entitled to conclusively rely on information furnished by a Participant, a beneficiary, or any other person or
entity. The Administrator shall be deemed to be the Plan administrator with responsibility for complying with any reporting and disclosure requirements of ERISA. 
 The Administrator may employ such counsel, agents and advisers, and obtain such administrative, clerical and other services, as it may deem necessary or appropriate in carrying out the provisions of the Plan and its
duties hereunder. 
 7.2. Claims Procedure. 
 (a) In general. If any person believes he or she has been denied any rights or benefits under the Plan, such person may file a
claim in writing with the Administrator. If any such claim is wholly or partially denied, the Administrator will notify such person of its decision in writing. Such notification will be given within 90 days after the claim is received by the
Administrator (or within 180 days, if special circumstances require an extension of time for processing the claim, and if written notice of such extension and circumstances is given to such person within the initial 90 day period). Notwithstanding
the foregoing, if such notification is not given within such 90 or 180 day period, the claim will be considered denied as of the last day of such period and such person may request a review of his or her claim in accordance with Section 7.2(b).

 (b) Appeals. Within 60 days after the date on which a person receives a written notice of a denied claim (or, if
applicable, within 60 days after the date on which such denial is considered to have occurred) such person (or his or her duly authorized representative) may file a written request with the Administrator for a review of his or her denied claim. The
Administrator will notify such person of its decision on review in writing. The decision on review will be made within 60 days after the request for review is received by the Administrator (or within 120 days, if special circumstances require an
extension of time for processing the request, such as an election by the Administrator to hold a hearing, and if written notice of such extension and circumstances is given to such person within the initial 60 day period). Notwithstanding the
foregoing, if the decision on review is not made within such 60 or 120 day period, the claim will be considered denied. 
  

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 The Administrator may, in its sole discretion amend or revise this Section 7.2,
provided, that the claims procedure for the Plan pursuant to which persons may claim an interest in the Plan and appeal denials of such claims, as amended or changed, shall meet the minimum standards of Section 503 of ERISA. 
 7.3. Claims and Review Procedure for Disability Claims. 
 (a) In general. If any person believes he or she has been denied any rights or benefits due on Disability under the Plan, such
person may file a claim in writing with the Administrator. If any such claim is wholly or partially denied, the Administrator will notify such person of its decision in writing. Such notification will be given within 45 days after the claim is
received by the Administrator. This time period may be extended twice by 30 days if the Administrator both determines that such an extension is necessary due to matters beyond the control of the Plan and notifies such person of the circumstances
requiring the extension of time and the date by which the Administrator expects to render a decision. If such an extension is necessary due to such person’s failure to submit the information necessary to decide the claim, the notice of
extension will specifically describe the required information and such person will be afforded at least 45 days within which to provide the specified information. If such person delivers the requested information within the time specified, any 30
day extension period will begin after such person has provided that information. If such person fails to deliver the requested information within the time specified, the Administrator may decide such person’s claim without that information.
Notwithstanding the foregoing, if such notification is not given within such 45 or an extended period, the claim will be considered denied as of the last day of such period and such person may request a review of his or her claim in accordance with
Section 7.2(b). 
 (b) Appeals. Within 180 days after the date on which a person receives a written notice of a
denied claim (or, if applicable, within 180 days after the date on which such denial is considered to have occurred) such person (or his or her duly authorized representative) may file a written request with the Administrator for a review of his or
her denied claim. The Administrator will notify such person of its decision on review in writing. The decision on review will be made within 45 days after the request for review is received by the Administrator (or within 90 days, if special
circumstances require an extension of time for processing the request, such as an election by the Administrator to hold a hearing, and if written notice of such extension and circumstances is given to such person within the initial 45 day period).
If an extension is necessary due to such person’s failure to submit the information necessary to decide the appeal, the notice of extension will specifically describe the required information and such person will be afforded at least 45 days to
provide the specified information. If such person delivers the requested information 

  

 13 

 
within the time specified, the 45 day extension of the appeal period will begin after such person has provided that information. If such person fails to
deliver the requested information within the time specified, the Administrator may decide such person’s appeal without that information. Notwithstanding the foregoing, if the decision on review is not made within such 45 or 90 day period, the
claim will be considered denied. 
 The Administrator may, in its sole discretion amend or revise this Section 7.3, provided, that the
claims procedure for the Plan pursuant to which persons may claim an interest in the Plan and appeal denials of such claims, as amended or changed, shall meet the minimum standards of Section 503 of ERISA. 
 7.4. Indemnification of Administrator. The Company shall indemnify and defend to the fullest extent permitted by law any director, officer
or employee of the Company or its Subsidiaries who serves as the Administrator or as a member of a committee appointed to serve as Administrator, or who assists the Administrator in carrying out its duties (including any such individual who formerly
served in any such capacity) against any and all liabilities, damages, costs and expenses (including attorneys’ fees and amounts paid in settlement of any claims approved in writing by the Company) arising out of or relating to any act or
omission to act in connection with the Plan, if such act or omission is in good faith. Such benefit will be provided through insurance if necessary to comply with Code section 409A. 
 Article 8. AMENDMENT, TERMINATION AND ASSIGNMENT 
 8.1. Amendments. Prior to a Change of
Control, the Company shall have the right to amend the Plan from time to time, subject to Section 8.3, by an instrument in writing which has been executed on its behalf by the Administrator or by vote of the Board. No amendment to the Plan with
respect to any Participant may be made after a Change of Control without the written consent of such Participant (or beneficiary, if applicable). 
 8.2. Termination of Plan. The Company currently intends to continue the Plan indefinitely. However, the Plan is voluntary on the part of the Company and the Company expressly reserves the right to terminate the Plan at any
time, subject to Section 8.3, for any reason whatsoever. Subject to Section 8.1, the Company from time to time may, by amendment to the Plan, suspend the Plan or discontinue provisions thereof. The Company may terminate the Plan at any
time by an instrument in writing which has been executed on its behalf by the Administrator or by vote of the Board. On termination of the Plan, the Company will distribute Accounts under the Plan only to the extent such distributions can be made
without taxation under Code section 409A. 
  

 14 

 8.3. Existing Rights. No amendment or termination of the Plan shall adversely affect
the rights of any Participant with respect to amounts credited to his or her Account as of the date of such amendment or termination (subject to future adjustments as a result of investment measurements). 
 8.4. Assignment. The rights and obligations of the Company shall inure to the benefit of and shall be binding upon its successors and
assigns. 
 Article 9. - MISCELLANEOUS 
 9.1. Grantor Trust. The Company may establish a trust of which the Company is treated as the owner under Subpart E of Subchapter J, Chapter 1 of the Code (a “grantor trust”), and may deposit with the
trustee of the grantor trust an amount of cash or marketable securities sufficient to cause the fair market value of the assets held in the grantor trust to be not less than the sum of the Account balances under the Plan. Notwithstanding the
foregoing, nothing in this Plan will be construed to create a trust or to obligate the Company, any of its Subsidiaries or any other person or entity to segregate a fund, purchase an insurance contract, or in any other way currently to fund the
future payment of any distributions or payments hereunder, nor will anything herein be construed to give any employee or any other person any right to any specific assets of the Company, any of its Subsidiaries or of any other person or entity. Any
distributions or payments which become payable hereunder that are not paid out of the grantor trust shall be paid from the general assets of the Company. 
 9.2. Nature of Claim for Payment. Each Participant and beneficiary will be an unsecured general creditor of the Company with respect to any distributions or payments to be made under the Plan. Nothing in
the Plan will be construed to give any person any right to any specific assets of the Company, any of its Subsidiaries or any other person or entity. 
 9.3. Nonalienation of Benefits. No Participant, beneficiary or any other person having any interest under the Plan shall alienate, anticipate, commute, pledge, encumber, assign or otherwise transfer
(“Alienate”) any right or interest under the Plan, including, without limitation, with respect to rights to or interests in any payments, distributions, claims or other benefits which he or she may expect to receive, contingently or
otherwise, under this Plan (“Rights”). Any attempt to Alienate any Right shall be ineffective. No Right shall be subject to any claim of, subject to attachment, execution, garnishment or other legal process by, any creditor of such
Participant, beneficiary or other person. 
 9.4. No Employment or Service Continuation Rights. Neither the adoption or the
establishment and maintenance of the Plan, the participation in the Plan nor any action of the Company, any Subsidiary or the Administrator, shall be held or construed to confer upon any employee or director of the Company or any of its Subsidiaries
any right to continued employment or service with the 

  

 15 

 
Company or any of its Subsidiaries, as the case may be, nor does it interfere in any way with the right of the Company or any of its Subsidiaries to
terminate the services of any of its employees or directors at any time. Each of the Company and its Subsidiaries expressly reserves the right to terminate or discharge any of its employees or directors at any time. 
 9.5. Receipt and Release. Any payment or distribution to any Participant or beneficiary in accordance with the provisions of the Plan shall
be, to the extent thereof, in full satisfaction of all claims against the Company, its Subsidiaries and the Administrator under the Plan, and the Administrator may require such Participant or beneficiary, as a condition precedent to such payment, to
execute a receipt and release to such effect. If any Participant or beneficiary is determined by the Administrator to be incompetent by reason of physical or mental disability (including minority) to give a valid receipt and release, the
Administrator may cause the payment or payments becoming due to such person to be made to another person for his or her benefit without responsibility on the part of the Administrator or the Company to follow the application of such funds.

 9.6. Severability of Provision. If any provision of the Plan shall be held by a court of competent jurisdiction to be
invalid or unenforceable, such invalidity or unenforceability shall not affect any other provisions hereof, and the Plan shall be construed and enforced to the fullest extent possible as if such provision had not been included. 
 9.7. Government Regulations. It is intended that the Plan comply with all applicable laws and government regulations, including Code
section 409A and the Plan shall be construed, where possible, to comply with such laws and regulations. Neither the Company, any of its Subsidiaries, nor the Administrator shall not be obligated to perform any obligation hereunder in any case where,
in the opinion of the Company’s counsel, such performance would result in the violation of any law or regulation or failure to comply with Code section 409A. Should it be determined that any provision or feature of the Plan is not in compliance
with Code section 409A, that provision or feature shall be null and void to the extent required to avoid the noncompliance with section 409A. 
 9.8. Governing Law; Jurisdiction. This Plan shall be construed, administered, and governed in all respects under and by the laws of The Commonwealth of Massachusetts without regard to the conflict of law provisions thereof.
The Company, the Administrator, the Participants and their beneficiaries, and any persons having or claiming to have any interest under the Plan submit to the exclusive jurisdiction and venue of the federal or state courts of The Commonwealth of
Massachusetts to resolve any and all issues that may arise out of or relate to the Plan or the same subject matter. 
  

 16 

 9.9 Headings and Subheadings. Headings and subheadings in this Plan are inserted for
convenience only and are not to be considered in the construction of the provisions hereof. 
 9.10 Expenses and Taxes.
Expenses, including fees and expenses associated with the grantor trust, associated with the administration or operation of the Plan shall be paid by the Company from its general assets unless, in the sole discretion of the Administrator, the
Administrator elects to charge such expenses against the appropriate Participant’s Account or Participants’ Accounts. Any taxes allocable to an Account (or subaccount or portion thereof) maintained under the Plan which are payable prior to
the distribution of the Account (or subaccount or portion thereof), as determined by the Administrator in its sole discretion, shall be charged against the appropriate Participant’s Account or Participants’ Accounts. 
  

 17Voting Agreement among Indevus, Sub, and certain funds of Sanders Morris Harris

 Exhibit 10.1 
 VOTING AGREEMENT 
 VOTING AGREEMENT (this “Agreement”), dated as of
December 11, 2006, by and among Indevus Pharmaceuticals, Inc., a Delaware corporation (“Parent”), Hayden Merger Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of Parent (“Merger Sub”), and the
stockholder party hereto (the “Stockholder”). 
 WITNESSETH: 
 WHEREAS, concurrently with the execution and delivery of this Agreement, an Agreement and Plan of Merger (as such agreement may be amended from time to
time, the “Merger Agreement”) is being entered into by and among Parent, Merger Sub and Valera Pharmaceuticals, Inc., a Delaware corporation (the “Company”), pursuant to which Merger Sub has agreed to merge with and
into the Company, with the Company continuing as the surviving corporation (the “Merger”); and 
 WHEREAS, as a condition
to, and in consideration for, Parent’s and Merger Sub’s willingness to enter into the Merger Agreement and to consummate the transactions contemplated thereby, Parent and Merger Sub have required that the Stockholder enter into this
Agreement and certain other stockholders to enter into similar agreements. 
 NOW, THEREFORE, in consideration of the foregoing and the
mutual representations, warranties, covenants and agreements contained herein, the parties hereto, intending to be legally bound, hereby agree as follows: 
 1. Definitions. For purposes of this Agreement: 
 “Company Securities” shall mean
the Company’s common stock, par value $0.001 per share. 
 “Person” shall mean an individual, corporation, partnership,
limited liability company, joint venture, association, trust, unincorporated organization or other entity. 
 “Stockholder
Shares” shall mean (i) the Existing Securities (as defined in Section 5(a)(i) hereof) set forth on Schedule I hereto, (ii) any shares of Company Securities distributed prior to the termination of this Agreement in respect of
the Stockholder Shares by reason of a stock dividend, split-up, recapitalization, reclassification, combination, merger, exchange of 

  

 1 

 
shares or otherwise and (iii) any other shares of the Company Securities of which the Stockholder acquires ownership, either directly or indirectly,
after the date of this Agreement and prior to the Effective Time. 
 “Voting Agreement Stockholders” shall mean certain
affiliated funds of Sanders Morris Harris, Inc. and Psilos Group Partners II-S, L.P. 
 Capitalized terms used but not otherwise defined
herein shall have the meanings ascribed to them in the Merger Agreement. 
 2. Agreement to Vote Shares. 
 (a) The Stockholder shall, at any meeting of the holders of any class or classes of Company Securities, however such meeting is called and
regardless of whether such meeting is a special or annual meeting of the stockholders of the Company, or in connection with any written consent of the stockholders of the Company, vote (or cause to be voted) the Stockholder Shares, (i) in favor
of the Merger, the execution and delivery by the Company of the Merger Agreement and the approval of the terms thereof and each of the other actions contemplated by the Merger Agreement and this Agreement and any actions required in furtherance
thereof and hereof, (ii) against any action, proposal or transaction or agreement that would result in a breach in any respect of any covenant, representation or warranty or any other obligation or agreement of the Company contained in the
Merger Agreement or of any stockholder contained in this Agreement and (iii) against the following actions or proposals (other than the Merger and the transactions contemplated by the Merger Agreement): (A) any Takeover Proposal;
(B) any extraordinary corporate transaction, such as a merger, consolidation or other business combination involving the Company; (C) a sale, lease or transfer of a material amount of assets of the Company or a reorganization,
recapitalization, dissolution or liquidation of the Company; (D) (I) any change in the majority of the Company Board; (II) any material change in the present capitalization of the Company or any amendment of the Company Organizational
Documents or similar governing document of the Company; (III) any other material change in the corporate structure or business of the Company; or (IV) any other action or proposal, which in the case of matters referred to in clauses (I), (II) or
(III) above, is intended, or could reasonably be expected, to impede, interfere with, delay, postpone, discourage or adversely affect the contemplated economic benefits to Parent or Merger Sub of the Merger or the transactions contemplated by the
Merger Agreement or this Agreement or could reasonably be expected to result in any of the conditions to the Company’s obligations under the Merger Agreement not being fulfilled. Each Stockholder agrees not to, and shall cause its Affiliates
not to, enter into any agreement, commitment or arrangement with any Person the effect of which would be inconsistent with or violative of the provisions and agreements contained in this Section 2. 
 (b) The Stockholder agrees that the obligations of the Stockholder specified in this Section 2 shall not be affected by (i) any
Company Adverse Recommendation 

  

 2 

 
Change, or (ii) any breach by the Company of any of its representations, warranties, agreements or covenants set forth in the Merger Agreement;
provided, however, that, in the event of a Company Adverse Recommendation Change, the obligation of the Stockholder to vote the Stockholder Shares in the manner set forth in Section 2(a) shall only apply to one half of the total number of
Stockholder Shares which are entitled to vote in respect of such matter and the Stockholder shall cause the remaining Stockholder Shares to be voted in a manner that is proportionate to the manner in which all holders of Company Securities (other
than the Voting Agreement Stockholders) vote in respect of such matter. 
 3. Grant of Irrevocable Proxy; Appointment of Proxy.

 (a) The Stockholder hereby irrevocably grants to, and appoints Parent and any designee of Parent, the Stockholder’s
proxy and attorney-in-fact (with full power of substitution or resubstitution), for and in the name, place and stead of the Stockholder, to vote (or cause to be voted) or act by written consent the Stockholder Shares held at the time of the relevant
stockholder vote as set forth in Section 2 hereof. The Stockholder will cause any record holder of Stockholder Shares to grant substantially similar proxies as requested in accordance with Section 8(e) hereof. 
 (b) The Stockholder represents that any proxies heretofore given in respect of the Stockholder Shares are not irrevocable, and that any
such proxies are hereby revoked. 
 (c) The Stockholder understands and acknowledges that Parent and Merger Sub are entering
into the Merger Agreement in reliance upon the Stockholder’s execution and delivery of this Agreement. The Stockholder hereby affirms that the irrevocable proxy set forth in this Section 3 is given in connection with the execution of the
Merger Agreement, and that such irrevocable proxy is given to secure the performance of the duties of the Stockholder under this Agreement. The Stockholder hereby further affirms that the irrevocable proxy is coupled with an interest and may under
no circumstances be revoked. Such irrevocable proxy is executed and intended to be irrevocable in accordance with the provisions of Section 212(e) of the Delaware General Corporation Law (the “DGCL”). The power of attorney
granted by each Shareholder herein is a durable power of attorney and shall survive the dissolution, bankruptcy, death or incapacity of such Shareholder. The proxy and power of attorney granted hereunder shall terminate upon the termination of this
Agreement. 
 4. Covenants of the Stockholders. The Stockholder hereby agrees and covenants that: 
 (a) Restrictions. Except as may otherwise be agreed by Parent in writing and as contemplated by the terms of this Agreement, the
Stockholder shall not (i) offer for sale, sell (including short sales), transfer, tender, pledge, encumber, assign or otherwise 

  

 3 

 
dispose of (including by gift) (collectively, a “Transfer”), or enter into any contract, option, derivative, hedging or other agreement or
arrangement or understanding (including any profit-sharing arrangement) with respect to, or consent to, a Transfer of, any or all of the Stockholder Shares or (ii) permit to exist any lien of any nature whatsoever with respect to any or all of
the Subject Shares. 
 (b) Restrictions on Proxies and Voting Arrangements. Except as otherwise provided herein, the
Stockholder shall not (i) grant any proxy, power-of-attorney or other authorization in or with respect to the Stockholder Shares or (ii) deposit the Stockholder Shares into a voting trust or enter into a voting agreement or arrangement
with respect to the Stockholder Shares. 
 (c) Stop Transfer. The Stockholder shall not request that the Company
register the transfer (book-entry or otherwise) of any certificate or uncertificated interest representing any of the Stockholder’s Existing Securities (as defined in Section 6(a)(i) hereof), unless such transfer is made in compliance with
this Agreement. In the event of any dividend or distribution, or any change in the capital structure of the Company by reason of any non-cash dividend, split-up, recapitalization, combination, exchange of securities or the like, the term
“Existing Securities” shall refer to and include the Existing Securities as well as all such dividends and distributions of securities and any securities into which or for which any or all of the Existing Securities may be changed,
exchanged or converted. 
 (d) Waiver of Appraisal Rights. The Stockholder agrees not to seek appraisal or assert any
rights of dissent from the Merger that it may have under Section 262 of the DGCL and, to the extent permitted by applicable Law, the Stockholder hereby waives any rights of appraisal or rights to dissent from the Merger that it may have under
Section 262 of the DGCL. 
 (e) No Inconsistent Arrangements. The Stockholder shall not take any other action that
would in any way restrict, limit or interfere with the performance of the Stockholder’s obligations hereunder or the transactions contemplated hereby or by the Merger Agreement. 
 5. Representations and Warranties. 
 (a) The Stockholder hereby represents and warrants to Parent and Merger Sub as follows: 
 (i)
Ownership of Securities. On the date hereof, the Stockholder owns, directly or indirectly, or has the power to direct the voting of, the Company Securities set forth next to the Stockholder’s name on Schedule I hereto (the 

  

 4 

 
“Existing Securities”), and the Existing Securities are owned of record by the Stockholder or certain of the Stockholder’s subsidiaries
or nominees (together, the “Record Holders”). On the date hereof, the Existing Securities constitute all of the shares of voting capital stock of the Company owned of record or otherwise by such Stockholder or as to which such
Stockholder has the power to direct the voting of the shares. Each Record Holder has sole voting power and sole power to issue instructions with respect to the matters set forth in Section 2 hereof, sole power of disposition, sole power of
conversion, sole power (if any) to demand appraisal rights and sole power to agree to all of the matters set forth in this Agreement, in each case with respect to all of such Record Holder’s Existing Securities with no limitations,
qualifications or restrictions on such rights, subject to applicable securities laws and the terms of this Agreement. 
 (ii)
Power; Binding Agreement. The Stockholder has the power (or, if applicable, corporate power) and authority to enter into and perform all of the Stockholder’s obligations under this Agreement. The execution, delivery and performance of
this Agreement by the Stockholder will not violate any other agreement to which the Stockholder is a party including, without limitation, any voting agreement, proxy arrangement, pledge agreement, shareholders agreement, voting trust or trust
agreement. This Agreement has been duly and validly executed and delivered by the Stockholder and constitutes a valid and binding agreement of the Stockholder, enforceable against the Stockholder in accordance with its terms, except as the
enforceability thereof may be limited by (A) applicable bankruptcy, insolvency, moratorium, reorganization or similar laws in effect that affect the enforcement of creditors rights generally or (B) general principles of equity, whether
considered in a proceeding at law or in equity. There is no beneficiary or holder of a voting trust certificate or other interest of any trust of which the Stockholder is a trustee whose consent is required for the execution and delivery of this
Agreement or the compliance by the Stockholder with the terms hereof. 
 (iii) No Conflicts. No filing with, and no
permit, authorization, consent or approval of, any Governmental Entity is required for the execution of this Agreement by the Stockholder and the consummation by the Stockholder of the transactions contemplated hereby, except in connection, or in
compliance, with the provisions of (A) Section 16 and Section 13D or 13G of the Exchange Act and (B) the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), none of the execution and
delivery of this Agreement by the Stockholder, the consummation by the Stockholder of the transactions contemplated hereby or compliance by the Stockholder with any of the provisions hereof shall (x) conflict with, or result in any breach of,
any organizational documents applicable to the Stockholder, (y) result in, or give rise to, a violation or breach of, or constitute (with or without due notice or lapse of time or both) a default (or give rise to any third party right of
termination, cancellation, material modification or acceleration) under any of the terms, conditions or provisions of 

  

 5 

 
any note, loan agreement, bond, mortgage, indenture, license, contract, commitment, arrangement, understanding, agreement or other instrument or obligation
of any kind to which the Stockholder is a party or by which the Stockholder or any of the Stockholder Shares or properties or assets may be bound, or (z) violate any order, writ, injunction, decree, judgment, order, statute, arbitration award,
rule or regulation applicable to the Stockholder or any of the Stockholder’s properties or assets. 
 (iv) No
Liens. Except as established hereby, the Existing Securities are now and, at all times during the term hereof, will be held by the Stockholder, or by a nominee or custodian for the benefit of the Stockholder, free and clear of all liens, claims,
security interests, proxies, voting trusts or agreements, understandings or arrangements or any other encumbrances whatsoever. 
 (v) No Solicitation. The Stockholder hereby agrees, in the Stockholder’s capacity as stockholder of the Company, that neither the Stockholder nor any of the Stockholder’s subsidiaries, if applicable, shall (and the
Stockholder shall use best efforts to cause the Stockholder’s officers, directors, employees, investment bankers, consultants, attorneys, accountants, agents, advisors or representatives not to), directly or indirectly, take any action, nor
shall the Stockholder act in concert with or permit any Affiliate or Representative to act in concert with any Person to, directly or indirectly, solicit, initiate, encourage, facilitate, participate in or initiate discussions or negotiations with,
or provide any information to, any Person (other than Parent, Merger Sub or any of their Affiliates or representatives) concerning any Takeover Proposal, or provide any non-public information or data to, any third party that has made, or to the
Stockholder’s knowledge, is considering making a Takeover Proposal or any matter that relates to, supports or could reasonably be expected to lead to any Takeover Proposal; provided that nothing contained in this
Section 5(a)(v) shall restrict any officer, director or employee of the Stockholder or the Stockholder’s subsidiaries, if applicable, from taking any action in his or her capacity as a director, officer or employee of the Company which is
permitted to be taken pursuant to Section 5.6 of the Merger Agreement. 
 (vi) Acquisition Proposal. The
Stockholder represents that it is not, and no Affiliate or Representative of Stockholder is, engaged in any discussions or negotiations with any third party with respect to any Takeover Proposal or any matter that relates to, supports, or could
reasonably be expected to lead to any Takeover Proposal. 
 (vii) Reliance by Parent. The Stockholder understands and
acknowledges that Parent is entering into the Merger Agreement in reliance upon the execution and delivery of this Agreement by such Stockholder. 
  

 6 

 (b) Parent and Merger Sub jointly and severally hereby represent and warrant to the
Stockholder as follows: 
 (i) Power; Binding Agreement. Each of Parent and Merger Sub has the corporate power and
authority to enter into and perform all of its obligations under this Agreement. The execution, delivery and performance of this Agreement by each of Parent and Merger Sub will not violate any material agreement to which Parent or Merger Sub, as the
case may be, is a party. This Agreement has been duly and validly executed and delivered by each of Parent and Merger Sub and constitutes a valid and binding agreement of each of Parent and Merger Sub, enforceable against each of them in accordance
with its terms, except as the enforceability thereof may be limited by (A) applicable bankruptcy, insolvency, moratorium, reorganization or similar laws in effect that affect the enforcement of creditors rights generally or (B) general
principles of equity, whether considered in a proceeding at law or in equity. 
 (ii) No Conflicts. No filing with, and
no permit, authorization, consent or approval of, any Governmental Entity is required for the execution of this Agreement by each of Parent and Merger Sub and the consummation by each of them of the transactions contemplated hereby, except in
connection, or in compliance, with the provisions of (A) Section 16 and Section 13D or 13G of the Exchange Act and (B) the HSR Act, and none of the execution and delivery of this Agreement by each of Parent and Merger Sub, the
consummation by each of them of the transactions contemplated hereby or compliance by each of them with any of the provisions hereof shall (x) conflict with or result in any breach of any organizational documents applicable to Parent or Merger
Sub, respectively, (y) result in, or give rise to, a violation or breach of, or constitute (with or without due notice or lapse of time or both) a default (or give rise to any third party right of termination, cancellation, material
modification or acceleration) under any of the terms, conditions or provisions of any material note, loan agreement, bond, mortgage, indenture, license, contract, commitment, arrangement, understanding, agreement or other instrument or obligation of
any kind to which Parent or Merger Sub is a party or by which Parent or Merger Sub or any of their respective properties or assets may be bound, or (z) violate any order, writ, injunction, decree, judgment, order, statute, arbitration award,
rule or regulation applicable to Parent or Merger Sub or any of their respective properties or assets. 
 6. Reasonable Best Efforts.
Subject to the terms and conditions of this Agreement, each of the parties hereto agrees to use its reasonable best efforts to take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary, proper or advisable under
applicable laws and regulations to consummate and make effective the transactions contemplated by this Agreement and the Merger Agreement; provided that nothing contained in this Section 6 shall restrict any officer, director or employee of the
Stockholder or the Stockholder’s Subsidiaries from taking any action in his or her capacity as a director, officer or employee of the Company which is permitted to be taken pursuant to Section 5.6 of the Merger Agreement. 
  

 7 

 7. Termination. Other than Section 8 hereof (which shall survive in any event), this
Agreement and the covenants, representations and warranties, agreements and irrevocable proxy or proxies contained herein or granted pursuant hereto shall terminate upon the earliest to occur of (i) the mutual consent of Parent, Merger Sub and
the Stockholder, (ii) the termination of the Merger Agreement in accordance with its terms and (iii) the Effective Time. Upon any termination of this Agreement, this Agreement shall thereupon become void and of no further force and effect,
and there shall be no liability in respect of this Agreement or of any transactions contemplated hereby or by the Merger Agreement on the part of any party hereto or any of its directors, officers, partners, stockholders, employees, agents,
advisors, representatives or Affiliates; provided, however, that nothing herein shall relieve any party from any liability for such party’s willful breach of this Agreement; and provided, further, that nothing herein shall limit, restrict,
impair, amend or otherwise modify the rights, remedies, obligations or liabilities of any person under any other contract or agreement, including, without limitation, the Merger Agreement. 
 8. Miscellaneous. 
 (a) Disclosure. The Stockholder hereby permits the Company and Parent to publish and disclose in the Joint Proxy Statement (including all documents and schedules filed with the SEC) and in any other SEC filings made by the Company or
Parent such Stockholder’s identity and ownership of shares of Company Common Stock and the nature of its commitments, arrangements and understandings pursuant to this Agreement. 
 (b) Specific Performance. Each party hereto recognizes and agrees that if for any reason any of the provisions of this Agreement
are not performed by the other parties in accordance with their specific terms or are otherwise breached, immediate and irreparable harm or injury would be caused to the non-breaching parties for which money damages would not be an adequate remedy.
Accordingly, the parties agree that, in addition to any other available remedies, the non-breaching parties shall be entitled to an injunction restraining any violation or threatened violation of the provisions of this Agreement without the
necessity of the non-breaching parties posting a bond or other form of security. In the event that any action should be brought in equity to enforce the provisions of this Agreement, the breaching party will not allege, and the breaching party
hereby waives the defense, that there is an adequate remedy at law. 
 (c) Severability. Any term or provision of this
Agreement which is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this
Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction. Without limiting the 

  

 8 

 
foregoing, with respect to any provision of this Agreement, if it is determined by a court of competent jurisdiction to be excessive as to duration or scope,
it is the parties’ intention that such provision nevertheless be enforced to the fullest extent which it may be enforced. 
 (d) Fees and Expenses; Attorneys’ Fees. Each of the parties shall be responsible for its own fees and expenses (including, without limitation, the fees and expenses of investment bankers, accountants and counsel) in connection
with the entering into of this Agreement and the consummation of the transactions contemplated hereby and by the Merger Agreement; provided, however, if any action at law or equity, including an action for declaratory relief, is
brought by a party to this Agreement to enforce or interpret any provision of this Agreement, the prevailing party shall be entitled to recover reasonable attorneys’ fees and expenses from the other party, which fees and expenses shall be in
addition to any other relief which may be awarded. 
 (e) Governing Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of Delaware, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ITS RIGHT TO A TRIAL BY
JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE ACTIONS OF PARENT, THE COMPANY, OR MERGER SUB IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT THEREOF. 
 (f) Further Assurances. From time to time, at the request of Parent or Merger Sub, the Stockholder shall execute and deliver to
Parent and Merger Sub or cause other Record Holders to execute and deliver to Parent and Merger Sub such additional instruments containing grants of proxy with respect to the Stockholder Shares (which grants of proxy will be in substantially the
form of Section 3(a) hereof) as Parent or Merger Sub may reasonably request in connection with the Stockholder’s obligations under this Agreement. 
 (g) Parties in Interest. This Agreement shall be binding upon and inure solely to the benefit of each party hereto, and nothing in
this Agreement, express or implied, is intended to or shall confer upon any other Person any rights, benefits or remedies of any nature whatsoever under or by reason of this Agreement. 
 (h) Entire Agreement. This Agreement constitutes the entire agreement among the parties hereto with respect to the subject matter
hereof and supersedes all other prior agreements and understandings, both written and oral, among the parties or any of them with respect to the subject matter hereof. 
 (i) Consent to Jurisdiction, Etc. Each party hereto hereby irrevocably and unconditionally consents to submit to the exclusive
jurisdiction of the United States District 

  

 9 

 
Court located in the State of Delaware (unless such courts assert no jurisdiction, in which case the parties hereto consent to the exclusive jurisdiction of
the courts of the State of Delaware) for any actions, suits or proceedings arising out of or relating to this Agreement and the transactions contemplated hereby (and each party hereto agrees not to commence any action, suit or proceeding relating
thereto except in such courts), and further agrees that service of any process, summons, notice or document by U.S. registered mail to the addresses set forth herein shall be effective service of process for any such action, suit or proceeding
brought against each party in such court. Each party hereto hereby irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising out of this Agreement or the transactions contemplated hereby,
in the United States District Courts located in the State of Delaware (unless such courts assert no jurisdiction, in which case each party consents to the exclusive jurisdiction of the courts of the State of Delaware). Each party hereby further
irrevocably and unconditionally waives and agrees not to plead or to claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum. Each of the parties hereto also agrees that
any final and unappealable judgment against a party hereto in connection with any action, suit or other proceeding shall be conclusive and binding on such party and that such award or judgment may be enforced in any court of competent jurisdiction,
either within or outside of the United States. A certified or exemplified copy of such award or judgment shall be conclusive evidence of the fact and amount of such award or judgment. 
 (j) Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given (and
shall be deemed to have been duly given upon receipt) by delivery in person, by overnight courier, by facsimile (which is confirmed), or by registered or certified mail (postage prepaid, return receipt requested) to the parties at the following
addresses (or at such other address for a party as shall be specified by like notice): 
  

	 	(i)	if to the Stockholder, to: 

  

	 	 	126 E. 56th Street, 28th Floor 

	 	 	New York, New York 10022 

	 	 	Attn: James C. Gale 

	 	 	Fax No.: (212) 419-3956 

	 	

	 	 	with copies to: 

	 	

	 	 	Sanders Morris Harris Group Inc. 

	 	 	600 Travis, Suite 3100 

	 	 	Houston, Texas 77002 

	 	 	Attn: John T. Unger, Senior Vice President and General Counsel 

	 	 	Fax No.: (713) 220-5182 

  

 10 

	 	(ii)	if to Parent or Merger Sub, to: 

  

	 	 	Indevus Pharmaceuticals, Inc. 

	 	 	33 Hayden Avenue 

	 	 	Lexington, MA 02421-7971 

	 	 	Attn: Mark S. Butler, Esq. 

	 	 	Fax No.: (781) 861-3830 

  

	 	 	with copies to: 

  

	 	 	Skadden, Arps, Slate, Meagher & Flom LLP 

	 	 	Four Times Square 

	 	 	New York, NY 10036 

	 	 	Attn.:     Eileen T. Nugent, Esq. 

	 	 	             Marc S. Gerber, Esq. 

	 	 	Fax No.: (212) 735-2000 

 (k)
Descriptive Headings; Interpretation. The descriptive headings herein are inserted for convenience of reference only and are not intended to be part of or to affect the meaning or interpretation of this Agreement. 
 (l) Assignment; Binding Agreement. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be
assigned by any of the parties hereto without the prior written consent of the other party hereto; provided, however, that Parent and Merger Sub shall be permitted to assign, in whole or in part, this Agreement or any of the rights, interests or
obligations hereunder to any of their Subsidiaries or Affiliates. 
 (m) Amendment, Modification and Waiver. This
Agreement may not be amended, modified or waived except by an instrument or instruments in writing signed and delivered on behalf of the party hereto against whom such amendment, modification or waiver is sought to be entered. 
 (n) Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, but
all of which shall constitute one and the same agreement. 
  

 11 

 IN WITNESS THEREOF, Parent, Merger Sub and the Stockholders have caused this Agreement to be duly
executed as of the day and year first above written. 
  

					
	INDEVUS PHARMACEUTICALS, INC.
		
	By:	 	/s/ Glenn L. Cooper, M.D.
	Name:	 	Glenn L. Cooper, M.D.
	Title:	 	President and Chief Executive Officer
	
	HAYDEN MERGER SUB, INC.
		
	By:	 	/s/ Glenn L. Cooper, M.D.
	Name:	 	Glenn L. Cooper, M.D.
	Title:	 	President
	
	 CORPORATE OPPORTUNITIES FUND
     (INSTITUTIONAL), L.P.

		
		 	By: SMM Corporate Management, LLC, its General Partner
		
	By:	 	/s/ James C. Gale
	Name:	 	James C. Gale
	Title:	 	Manager
	
	CORPORATE OPPORTUNITIES FUND, L.P.
		
		 	By: SMM Corporate Management, LLC, its General Partner
		
	By:	 	/s/ James C. Gale
	Name:	 	James C. Gale
	Title:	 	Manager

			
	SMH HYDRO MED, LLC
		
	By:	 	/s/ James C. Gale
	Name: James C. Gale
	Title: Manager
	
	SMH HYDRO MED II, LLC
		
	By:	 	/s/ James C. Gale
	Name:	 	James C. Gale
	Title:	 	Manager
	
	SMH VALERA, LLC
		
	By:	 	/s/ James C. Gale
	Name: James C. Gale
	Title: Manager
	
	 LIFE SCIENCES OPPORTUNITY FUND
     (INSTITUTIONAL), L.P.

		
		 	By: SMH Life Sciences Management, LLC, its General Partner
		
	By:	 	/s/ James C. Gale
	Name: James C. Gale
	Title: Manager
	
	LIFE SCIENCES OPPORTUNITY FUND, L.P.
		
		 	By: SMH Life Sciences Management, LLC, its General Partner
		
	By:	 	/s/ James C. Gale
	Name: James C. Gale
	Title: Manager

 Schedule I 
 List of Existing Securities 
 Stockholder’s Holdings of Company Common Stock* 
  

			
	 Registered Holder
	  	Number of Shares Held
	 Corporate Opportunities Fund (Institutional), L.P.
	  	301,647
	 Corporate Opportunities Fund, L.P.
	  	1,625,815
	 SMH Hydro Med, LLC
	  	1,456,075
	 SMH Hydro Med II, LLC
	  	947,547
	 SMH Valera, LLC*
	  	728,037
	 Life Sciences Opportunity Fund (Institutional), L.P.
	  	71,775
	 Life Sciences Opportunity Fund, L.P.
	  	319,084
		  	 
	 Total
	  	5,449,980
		  	 

  

	*	SMH Valera, LLC is in the process of having 9,100 shares distributed to a member of SMH Valera, LLC. The remaining 718,937 will be re-issued to SMH Valera, LLC.

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