Document:

PURCHASE AGREEMENT DATED FEBRUARY 10, 2004

 Exhibit 10.30 
  
 CuraGen Corporation 
 $100,000,000 
 4.0% Convertible Subordinated Notes due 2011 
  
 PURCHASE AGREEMENT 
  
 February 10, 2004 
  
 BEAR, STEARNS & CO. INC. 
 c/o Bear, Stearns & Co. Inc. 
 383 Madison Avenue 
 New York, New York 10179 
  
 Ladies and Gentlemen: 
  
 CuraGen Corporation, a Delaware corporation (the “Company”), hereby confirms its agreement with you (the “Initial Purchaser”), as set
forth below. 
  
 1. The Transactions. Subject to the terms
and conditions herein contained, the Company proposes to issue and sell to the Initial Purchaser $100,000,000 aggregate principal amount of its 4.0% Convertible Subordinated Notes due 2011 (the “Firm Notes”). In addition, the Company has
granted to the Initial Purchaser an option to purchase up to an additional $20,000,000 aggregate principal amount of its 4.0% Convertible Subordinated Notes due 2011 (the “Optional Notes” and, together with the Firm Notes, the
“Notes”). The Notes shall be convertible into shares of common stock, par value $0.01 per share, of the Company (the “Common Stock”) together with the rights (the “Rights”) evidenced by such Common Stock to the extent
provided in the Stockholder Rights Agreement, dated March 27, 2002, between the Company and American Stock Transfer & Trust Company (the “Stockholder Rights Agreement”), subject to and in accordance with the terms of the Notes. The
Common Stock and accompanying Rights into which the Notes may be converted are referred to herein as the “Conversion Shares.” The Notes will (i) have the terms and provisions which are described in the Offering Memorandum (as defined
below) under the heading “Description of Notes” and such other terms as are reasonable and customary and (ii) be issued pursuant to the provisions of the Indenture (the “Indenture”), to be dated February 17, 2004, between the
Company and The Bank of New York, a New York banking corporation, as trustee (the “Trustee”). The Notes and the Conversion Shares hereinafter are referred to collectively as the “Securities.” 
  
 The sale of the Notes to the Initial Purchaser (the “Offering”)
will be made without registration of the Securities under the Securities Act of 1933, as amended (together with the rules and regulations of the Securities and Exchange Commission (the “Commission”) promulgated thereunder, the
“Securities Act”), in reliance upon the exemption therefrom provided by Section 4(2) of the Securities Act. 
  

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 In connection with the sale of the Notes, the Company has prepared a preliminary offering memorandum
dated February 9, 2004 (the “Preliminary Offering Memorandum”) and will prepare promptly an offering memorandum dated the date hereof, in form and substance reasonably satisfactory to you (the “Offering Memorandum”), setting
forth information regarding the Company, the Securities and the terms of the Offering and the transactions contemplated by the Offering Documents (as defined below). The Preliminary Offering Memorandum and the Offering Memorandum will incorporate by
reference the Company’s (i) Annual Report on Form 10-K for the year ended December 31, 2002, (ii) Quarterly Reports on Form 10-Q for the quarters ended March 31, 2003, June 30, 2003 and September 30, 2003, (iii) Proxy Statement for the annual
meeting of stockholders of the Company held on May 28, 2003, (iv) Current Reports on Form 8-K filed with the Commission on January 8, 2003, January 10, 2003, January 30, 2003, March 4, 2003, June 20, 2003, August 20, 2003, August 22, 2003, September
5, 2003, September 19, 2003 and November 7, 2003, (v) the description of Common Stock contained on page 2 of the Company’s Registration Statement on Form 8-A and (vi) the description of the Preferred Stock Purchase Rights under the Stockholder
Rights Agreement contained on pages 2-4 of the Company’s Registration Statement on Form 8-A (other than information in the documents that is deemed not to be filed with the Commission) (all such documents listed in clauses (i) through (vi)
referred to herein as the “Incorporated Documents”). Any references herein to the Preliminary Offering Memorandum or the Offering Memorandum shall be deemed to include, in each case, all amendments and supplements thereto and the
Incorporated Documents and any amendments thereto made prior to the completion of the Offering. The Company hereby confirms that it has authorized the use of the Preliminary Offering Memorandum and the Offering Memorandum in connection with the
offering and resale of the Notes by the Initial Purchaser. 
  
 The
Company understands that the Initial Purchaser proposes to make an offering of the Notes only on the terms and in the manner set forth in the Offering Memorandum and Sections 3, 4 and 10 hereof as soon as the Initial Purchaser deems advisable after
this Agreement has been executed and delivered, solely to persons whom the Initial Purchaser reasonably believes to be qualified institutional buyers (“QIBs”) as defined in Rule 144A under the Securities Act, as such rule may be amended
from time to time (“Rule 144A”), in transactions under Rule 144A. 
  
 The Initial Purchaser and their direct and indirect transferees of the Notes will be entitled to the benefits of the Registration Rights Agreement to be dated as of February 17, 2004, among the parties hereto (the
“Registration Rights Agreement”) pursuant to which the Company will agree, among other things, to file (i) a registration statement (the “Registration Statement”) on the appropriate form with the Commission registering the resale
of the Securities under the Securities Act and (ii) to use its best efforts to cause any such Registration Statement to be declared effective. 
  
 This Agreement, the Securities, the Registration Rights Agreement and the Indenture are herein referred to as the “Offering Documents.”

  

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 2. Representations and Warranties of the Company. The Company represents and warrants to and
agrees with the Initial Purchaser that: 
  
 (a)
The Preliminary Offering Memorandum, as of the date set forth on the front cover thereof does not, and the Offering Memorandum, as of the date set forth on the front cover thereof, as of the Closing Date and as of the Additional Closing Date, if any
(each as defined in Section 3 hereof), does not and will not, and any supplement or amendment thereto will not, contain any untrue statement of a material fact or omit 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, provided however, that the Company makes no representation or warranty as to the information relating to the Initial Purchaser furnished to the Company in writing by the Initial
Purchaser expressly for use in the Preliminary Offering Memorandum, and actually used in, the Offering Memorandum or any amendment or supplement thereto. 
  
 (b) Subsequent to the respective dates as of which information is given in the Offering Memorandum (or, if the Offering Memorandum is not
in existence, the most recent Preliminary Offering Memorandum), except as disclosed in the Offering Memorandum (or, if the Offering Memorandum is not in existence, the most recent Preliminary Offering Memorandum), the Company has not declared, paid
or made any dividends or other distributions of any kind on or in respect of its capital stock and there has been no material adverse change or any development involving a prospective material adverse change, whether or not arising from transactions
in the ordinary course of business, in or affecting (i) the business, condition (financial or otherwise), results of operations, stockholders’ equity or properties of the Company and the subsidiary of the Company listed on Exhibit A hereto (the
“Subsidiary”), individually or taken as a whole; (ii) the long-term debt or capital stock of the Company or the Subsidiary; or (iii) the ability of the Company to consummate the Offering or any of the other transactions contemplated by the
Offering Documents (any such change or development being a “Material Adverse Effect”). Since the date of the latest balance sheet included or incorporated by reference in the Offering Memorandum (or, if the Offering Memorandum is not in
existence, the most recent Preliminary Offering Memorandum), neither the Company nor the Subsidiary has incurred or undertaken any known liabilities or obligations, whether direct or indirect, liquidated or contingent, matured or unmatured, or
entered into any transactions, including any acquisition or disposition of any business or asset, which are material to the Company and the Subsidiary, individually or taken as a whole, except for liabilities, obligations and transactions which are
disclosed in the Offering Memorandum (or, if the Offering Memorandum is not in existence, the most recent Preliminary Offering Memorandum). 
  
 (c) The authorized, issued and outstanding capital stock of the Company is as set forth in the Offering Memorandum (or, if the Offering
Memorandum is not in existence, the most recent Preliminary Offering 

  

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Memorandum) under the caption “Capitalization” and, after giving effect to the Offering, will be as set forth in the column headed “As
Adjusted” under the caption “Capitalization.” Except as disclosed in the Offering Memorandum, and except as set forth in that certain Purchase Agreement among the Subsidiary, the Company and the several purchasers named therein, dated
as of June 5, 2000, as amended and that certain Purchase Agreement among the Subsidiary, the Company and the several purchasers named therein, dated as of September 18, 2003, all of the issued and outstanding shares of capital stock of the Company
are fully paid and non-assessable and have been duly and validly authorized and issued, in compliance with all applicable state, federal and foreign securities laws and are not in violation of or subject to any preemptive or similar right that does
or will entitle any person, upon the issuance or sale of any security, to acquire from the Company or the Subsidiary any Common Stock or other security of the Company or the Subsidiary or any security convertible into, or exercisable or exchangeable
for, Common Stock or any other such security (any “Relevant Security”). 
  
 (d) The Conversion Shares have been duly authorized and reserved, and if and when issued upon conversion of the Notes in accordance with
their terms and the Indenture, will be validly issued, fully paid and non-assessable, free of any preemptive or similar rights; will have been issued in compliance with all applicable state, federal and foreign securities laws, will not have been
issued in violation of or subject to any preemptive or similar right that does or will entitle any person to acquire any Relevant Security from the Company or the Subsidiary upon issuance or sale of the Notes or the Conversion Shares, and will not
be subject to any restriction upon the voting or, except as disclosed in the Offering Memorandum (or, if the Offering Memorandum is not in existence, the most recent Preliminary Offering Memorandum), transfer thereof pursuant to applicable law or
the Company’s certificate of incorporation, bylaws or governing documents or any agreement to which the Company or the Subsidiary is a party or by which either of them may be bound. 
  
 (e) The Common Stock (including the Conversion Shares) conforms in all material respects to the descriptions
thereof contained in the Offering Memorandum (or, if the Offering Memorandum is not in existence, the most recent Preliminary Offering Memorandum). Except as disclosed in, and as of the date or dates disclosed in, the Offering Memorandum (or, if the
Offering Memorandum is not in existence, the most recent Preliminary Offering Memorandum) and except for options to purchase 3,726,334 shares of common stock of the Subsidiary, neither the Company nor the Subsidiary has outstanding warrants, options
to purchase, or any preemptive rights or other rights to subscribe for or to purchase, or any contracts or commitments to issue or sell, any Relevant Security. Except (i) for (a) 12 million shares of series A preferred stock of the Subsidiary, (b) 8
million shares of series B preferred stock of the Subsidiary, (c) 6,404,854 shares of series C preferred stock of the Subsidiary, (d) 1,595,146 shares of series D preferred stock of the Subsidiary, (e) 47,933 shares of common stock of the
Subsidiary, and (f) outstanding options to purchase 

  

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3,726,334 shares of common stock of the Subsidiary, (ii) as disclosed in, and as of the date or dates disclosed in, the Offering Memorandum (or, if the
Offering Memorandum is not in existence, the Preliminary Offering Memorandum), and (iii) as set forth in that certain Purchase Agreement among the Subsidiary, the Company and the several purchasers named therein, dated as of June 5, 2000, as amended
and that certain Purchase Agreement among the Subsidiary, the Company and the several purchasers named therein, dated as of September 18, 2003, there are no outstanding subscriptions, rights, warrants, options, calls, convertible securities,
commitments of sale or rights related to or entitling any person to purchase or otherwise to acquire any shares of, or any security convertible into or exchangeable or exercisable for, the capital stock of, or other ownership interest in, the
Company or the Subsidiary. 
  
 (f) The Subsidiary
is the only “significant subsidiary” of the Company within the meaning of Regulation S-X promulgated under the Securities Act. Except as set forth in that certain (i) Purchase Agreement among the Subsidiary, the Company and the several
purchasers named therein, dated as of June 5, 2000, as amended, (ii) Purchase Agreement among the Subsidiary, the Company and the several purchasers named therein, dated as of September 18, 2003 and (iii) Amended and Restated Registration Rights
Agreement among the Subsidiary and the investors named therein, dated as of September 18, 2003, all of the issued shares of capital stock of or other ownership interests in the Subsidiary have been duly and validly authorized and issued and are
fully paid and non-assessable and the shares of capital stock or other ownership interests in the Subsidiary held by the Company are owned directly or indirectly by the Company free and clear of any lien, charge, mortgage, pledge, security interest,
claim, equity, trust or other encumbrance, preferential arrangement, defect or restriction of any kind whatsoever (any “Lien”). 
  
 (g) Each of the Company and the Subsidiary has been duly organized and validly exists as a corporation in good standing under the laws of
its jurisdiction of incorporation. Each of the Company and the Subsidiary has all requisite corporate power and authority to carry on its business as it is currently being conducted and as described in the Offering Memorandum (or, if the Offering
Memorandum is not in existence, the most recent Preliminary Offering Memorandum), and to own, lease and operate its respective properties. Each of the Company and the Subsidiary is duly qualified to do business and is in good standing as a foreign
corporation in each jurisdiction in which the character or location of its properties (owned, leased or licensed) or the nature or conduct of its business makes such qualification necessary, except for those failures to be so qualified or in good
standing which (individually and in the aggregate) could not reasonably be expected to have a Material Adverse Effect. 
  
 (h) The Company has the requisite corporate power and authority to execute, deliver and perform its obligations under the Notes. The Notes
have been duly and validly authorized by the Company for issuance and, when executed by the Company and authenticated by the Trustee in accordance 

  

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with the provisions of the Indenture and when delivered to and paid for by the Initial Purchaser in accordance with the terms hereof, will have been duly
executed, issued and delivered and will constitute valid and legally binding obligations of the Company, entitled to the benefits of the Indenture and enforceable against the Company in accordance with their terms except that the enforcement thereof
may be limited by (i) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to or affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether such
enforcement is considered in a proceeding at law or in equity) ((i) and (ii) collectively, the “Enforceability Exceptions”) and will be convertible into the Conversion Shares in accordance with their terms. At the Closing Date, the Notes
will be in the form contemplated by the Indenture. 
  
 (i) The Company has the requisite corporate power and authority to execute, deliver and perform its obligations under the Indenture. The Indenture has been duly and validly authorized by the Company and meets the requirements for
qualification under the Trust Indenture Act of 1939, as amended (the “TIA”), and, when executed and delivered by the Company (assuming the due authorization, execution and delivery by the Trustee), will constitute a valid and legally
binding agreement of the Company, enforceable against the Company in accordance with its terms except that (i) the enforcement thereof may be limited by the Enforceability Exceptions and (ii) rights to indemnity and contribution may be limited under
applicable law by considerations of public policy. 
  
 (j) The Company has the requisite corporate power and authority to execute, deliver and perform its obligations under the Registration Rights Agreement. The Registration Rights Agreement has been duly and validly authorized by the Company
and when executed and delivered by the Company (assuming the due authorization, execution and delivery by the Initial Purchaser), will constitute a valid and legally binding agreement of the Company, enforceable against the Company in accordance
with its terms except that (i) the enforcement thereof may be limited by the Enforceability Exceptions and (ii) rights to indemnity and contribution may be limited under applicable law by considerations of public policy. 
  
 (k) The Company has the requisite corporate power and
authority to execute, deliver and perform its obligations under this Agreement. This Agreement has been duly and validly authorized by the Company and when executed and delivered by the Company (assuming the due authorization, execution and delivery
by the Initial Purchaser), will constitute a valid and legally binding agreement of the Company, enforceable against the Company in accordance with its terms except that (i) the enforcement thereof may be limited by the Enforceability Exceptions and
(ii) rights to indemnity and contribution may be limited under applicable law by considerations of public policy. The Securities, the Indenture and the Registration Rights Agreement conform in all 

  

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material respects to the descriptions thereof in the Offering Memorandum (or, if the Offering Memorandum is not in existence, the most recent Preliminary
Offering Memorandum). 
  
 (l) There exists as of
the date hereof (after giving effect to the transactions contemplated by each of the Offering Documents) no event or condition that would constitute a default or an event of default (in each case as defined in each of the Offering Documents) under
any of the Offering Documents that would result in a Material Adverse Effect. 
  
 (m) The execution, delivery, and performance of this Agreement, the Indenture or the Registration Rights Agreement and consummation of the transactions contemplated by the Offering Documents do not and will not
conflict with, require consent under or result in a breach of any of the terms and provisions of, or constitute a default (or an event which with notice or lapse of time, or both, would constitute a default) under, violate or result in the creation
or imposition of any Lien upon any property or assets of the Company or the Subsidiary pursuant to, (i) any indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or other agreement, obligation, condition, covenant,
instrument, franchise, license or permit to which the Company or the Subsidiary is a party or by which the Company or the Subsidiary or their respective properties, operations or assets may be bound; (ii) any provision of the certificate or articles
of incorporation, bylaws, or other organizational documents of the Company or the Subsidiary, or (iii) any law, rule, regulation, ordinance, directive, judgment, decree or order of any judicial, regulatory or other legal or governmental agency or
body, domestic or foreign having jurisdiction over the Company, the Subsidiary or any of its or their properties; except (in the case of clauses (i) and (iii) above) as could not reasonably be expected to have a Material Adverse Effect. 

 
 (n) Each of the Company and the Subsidiary has all
necessary consents, approvals, authorizations, orders, registrations, qualifications, licenses, filings and permits of, with and from all judicial, regulatory and other legal or governmental agencies and bodies and all third parties, foreign and
domestic (collectively, the “Consents”), to own, lease and operate its properties and conduct its business as it is now being conducted and as disclosed in the Offering Memorandum (or, if the Offering Memorandum is not in existence, the
most recent Preliminary Offering Memorandum), except for those Consents the absence of which could not reasonably be expected to result in a Material Adverse Effect, and each such Consent is valid and in full force and effect, and except as
disclosed in the Offering Memorandum (or, if the Offering Memorandum is not in existence, the most recent Preliminary Offering Memorandum) neither the Company nor the Subsidiary has received notice of any investigation or proceedings which results
in or, if decided adversely to the Company or the Subsidiary, could reasonably be expected to result in, the revocation of, or imposition of a materially burdensome restriction on, any Consent. Each of the Company and the Subsidiary is in compliance
with all 

  

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applicable laws, rules, regulations, ordinances, directives, judgments, decrees and orders, foreign and domestic, except as disclosed in the Offering
Memorandum (or, if the Offering Memorandum is not in existence, the most recent Preliminary Offering Memorandum) or where failure to be in compliance could not reasonably be expected to have a Material Adverse Effect. No Consent contains a
materially burdensome restriction not adequately disclosed in the Offering Memorandum (or, if the Offering Memorandum is not in existence, the most recent Preliminary Offering Memorandum). 
  
 (o) No Consent of, with or from any judicial, regulatory or
other legal or governmental agency or body or any third party, foreign or domestic, is required by the Company for the execution, delivery and performance of this Agreement or consummation of the Offering and the other transactions contemplated by
the Offering Documents, including the issuance, sale and delivery of the Notes (and the issuance of the Conversion Shares upon conversion of the Notes), except such Consents as may be required under state securities or blue sky laws and in the case
of the Registration Statement, such as will be obtained under the Securities Act. Neither the issuance by the Company of the Securities pursuant to the terms of this agreement nor the issuance by the Company of the Conversion Shares results or will
result in the Initial Purchaser being deemed an Acquiring Person (as defined in the Stockholder Rights Agreement). 
  
 (p) Except as disclosed in the Offering Memorandum (or, if the Offering Memorandum is not in existence, the most recent Preliminary
Offering Memorandum), there is no judicial, regulatory, arbitral or other legal or governmental proceeding or other litigation or arbitration, domestic or foreign, pending to which the Company or the Subsidiary is a party or of which any property,
operations or assets of the Company or the Subsidiary is the subject which, individually or in the aggregate, if determined adversely to the Company or the Subsidiary, could reasonably be expected to have a Material Adverse Effect and to the best of
the Company’s knowledge, no such proceeding, litigation or arbitration is threatened or contemplated, except as could not reasonably be expected to have a Material Adverse Effect. 
  
 (q) The financial statements, including the notes thereto, included in the Offering Memorandum (or, if the
Offering Memorandum is not in existence, the most recent Preliminary Offering Memorandum) present fairly in all material respects, as of the dates and for the periods specified, the financial position, cash flows and results of operations of the
Company and its consolidated subsidiary for which financial statements are included in the Offering Memorandum (or, if the Offering Memorandum is not in existence, the most recent Preliminary Offering Memorandum); except as otherwise stated in the
Offering Memorandum (or, if the Offering Memorandum is not in existence, the most recent Preliminary Offering Memorandum); such financial statements have been prepared in conformity with United States generally accepted accounting principles applied
on a consistent basis throughout the periods involved (except as 

  

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otherwise noted therein) and the selected consolidated financial data set forth under the caption “Selected Consolidated Financial Data,” in the
Offering Memorandum (or, if the Offering Memorandum is not in existence, the most recent Preliminary Offering Memorandum) present fairly in all material respects, as of the dates and for the periods specified, on the basis stated in the Offering
Memorandum (or, if the Offering Memorandum is not in existence, the most recent Preliminary Offering Memorandum), the information included therein. No other financial statements are required to be included in the Offering Memorandum (or, if the
Offering Memorandum is not in existence, the most recent Preliminary Offering Memorandum) if the Offering Memorandum were included in a registration statement filed pursuant to the Securities Act. The other financial and statistical information
included or incorporated by reference in the Offering Memorandum (or, if the Offering Memorandum is not in existence, the most recent Preliminary Offering Memorandum) presents fairly in all material respects the information included therein and, if
so required, has been prepared on a basis consistent with that of the financial statements that are included in the Offering Memorandum (or, if the Offering Memorandum is not in existence, the most recent Preliminary Offering Memorandum) and is
derived from the books and records of the respective entities presented therein and, to the extent such information is a range, projection or estimate, is based on the good faith belief and estimates of the management of the Company. The financial
information included in the Incorporated Documents, including the information under Item 1 (“Business”), Item 7 (“Management’s Discussion and Analysis of Financial Condition and Results of Operations”) and Item 7A
(“Quantitative and Qualitative Disclosures About Market Risk”) in the Form 10-K for the year ended December 31, 2002 has been derived from the Company’s consolidated financial statements included in the Incorporated Documents or from
the Company’s accounting books and records generally. 
  
 (r) Deloitte & Touche LLP, which has examined certain of such financial statements as set forth in its reports included in the Offering Memorandum (or, if the Offering Memorandum is not in existence, the most
recent Preliminary Offering Memorandum), is an independent public accounting firm as required by the Securities Act and the Securities Exchange Act of 1934, as amended (together with the rules and regulations of the Commission promulgated
thereunder, the “Exchange Act”). 
  
 (s) The Company is subject to and in full compliance with the reporting requirements of Section 13 or 15(d) of the Exchange Act and files reports with the Commission on the EDGAR System. The Common Stock is registered pursuant to Section
12(g) of the Exchange Act and the outstanding shares of Common Stock are listed for quotation on the Nasdaq National Market, and the Company has taken no action designed to, or likely to have the effect of, terminating the registration of the Common
Stock under the Exchange Act or de-listing the Common Stock from the Nasdaq National Market, nor has the Company received any notification that the Commission or the Nasdaq National Market is contemplating terminating such registration or listing.

  

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 (t) The Company has filed in a timely manner each document or report required to be filed
by it pursuant to the Exchange Act including, without limitation, the Incorporated Documents; each such document or report (including any financial statements) and any amendment thereto at the time it was filed, conformed in all material respects to
the requirements of the Exchange Act and the Securities Act; and none of such documents or reports on the date of its filing contained an untrue statement of any material fact or omitted to state any material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the circumstances under which they were made. 
  
 (u) There are no agreements, contracts, indentures, leases or other instruments (including, without limitation, any voting agreement),
which are required to be filed as exhibits to the Incorporated Documents, which are not so filed as required. 
  
 (v) The Company and the Subsidiary maintain a system of internal accounting and other controls sufficient to provide reasonable assurances
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 United States generally accepted
accounting principles and to maintain accountability for assets, (iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accounting for assets is compared with existing
assets at reasonable intervals and appropriate action is taken with respect to any differences. 
  
 (w) Neither the Company nor any of its affiliates (within the meaning of Rule 144 under the Securities Act) has taken, directly or
indirectly, any action that constitutes or is designed to cause or result in, or which could reasonably be expected to constitute, cause or result in, the stabilization or manipulation of the price of any security to facilitate the sale or resale of
the Securities. 
  
 (x) None of the Company or
the Subsidiary or any of their respective affiliates (as defined in Rule 501(b) of Regulation D under the Securities Act) directly, or through any agent, (i) sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of any
“security” (as defined in the Securities Act) which is or could be integrated with the sale of the Securities in a manner that would require the registration under the Securities Act of the Securities or (ii) engaged in any form of general
solicitation or general advertising (as those terms are used in Regulation D under the Securities Act) in connection with the offering of the Securities or in any manner involving a public offering within the meaning of Section 4(2) of the
Securities Act. Assuming the accuracy of the Initial Purchaser’s representations and warranties set forth in Section 10 hereof, the offer and sale of the Notes to the Initial Purchaser and the Initial Purchaser’s resale of the Notes in the
manner 

  

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contemplated by this Agreement and the Offering Memorandum does not require registration under the Securities Act and the Indenture does not require
qualification under the TIA. 
  
 (y) Except as
described in the Offering Memorandum (or, if the Offering Memorandum is not in existence, the most recent Preliminary Offering Memorandum), no holder of any Relevant Security has any rights to require registration of any Relevant Security as part or
on account of, or otherwise in connection with the Offering and any of the other transactions contemplated by the Offering Documents, and any such rights so disclosed have been effectively waived by the holders thereof, and any such waivers remain
in full force and effect. 
  
 (z) Neither the
Company nor the Subsidiary is now and, immediately after the sale of the Notes, as contemplated hereunder and application of the net proceeds of such sale as described in the Offering Memorandum under the caption “Use of Proceeds,” will be
an “investment company” or be controlled by an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 
  

(aa) There are no outstanding loans, advances (except normal advances for business expenses in the ordinary course of business) or
guarantees of indebtedness by the Company to or for the benefit of any of the officers or directors of the Company or any of their respective family members. 
  

(bb) Each of the Company and the Subsidiary owns or leases all such material properties as are necessary to the conduct of their
respective businesses as presently operated and as proposed to be operated as described in the Offering Memorandum (or, if the Offering Memorandum is not in existence, the most recent Preliminary Offering Memorandum). The Company and the Subsidiary
have good and marketable title in fee simple to all real property and good and marketable title to all personal property (excluding Intellectual Property, which is covered in subsection (cc) below) owned by them, in each case free and clear of all
Liens except such as are described in the Offering Memorandum (or, if the Offering Memorandum is not in existence, the Preliminary Offering Memorandum) or such as could not reasonably be expected to have a Material Adverse Effect; and any real
property and buildings held under lease or sublease by the Company and the Subsidiary are held by them under valid, subsisting and enforceable leases with such exceptions as are not material to, and do not interfere with, the use made and proposed
to be made of such property and buildings by the Company and the Subsidiary. Neither the Company nor the Subsidiary has received any notice of any claim adverse to its ownership of any real or personal property (excluding Intellectual Property,
which is covered in subsection (cc) below) or of any claim against the continued possession of any real property, whether owned or held under lease or sublease by the Company or the Subsidiary. 
  

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 (cc) The Company (i) owns or possesses adequate rights to use Company patents, patent
applications, trademarks, service marks, trade names, trademark registrations, service mark registrations, copyrights, licenses, formulae, customer lists, and know-how and other intellectual property (including trade secrets and other unpatented
and/or unpatentable proprietary or confidential information, systems or procedures, “Intellectual Property”) necessary for the conduct of its business as being conducted and as described in the Offering Memorandum (or, if the Offering
Memorandum is not in existence, the Preliminary Offering Memorandum) relating to the Company’s 53135 product, (ii) to the Company’s knowledge, owns or possesses adequate rights to use third party patents, patent applications, trademarks,
service marks, trade names, trademark registrations, service mark registrations, copyrights, licenses, formulae, customer lists, and know-how and other intellectual property (including trade secrets and other unpatented and/or unpatentable
proprietary or confidential information, systems or procedures, “Third Party Intellectual Property”) necessary for the conduct of their respective businesses as being conducted and as described in the Offering Memorandum (or, if the
Offering Memorandum is not in existence, the Preliminary Offering Memorandum) relating to the Company’s 53135 product, and (iii) to the Company’s knowledge, has no reason to believe that the conduct of its business relating to the
Company’s 53135 product conflicts with, and has not received any notice of any claim of conflict with, any such right of others. 
  
 To the Company’s knowledge, none of the patents owned or licensed by the Company or the Subsidiary are invalid or unenforceable. To the
Company’s knowledge, all technical information developed by and belonging to the Company or the Subsidiary which has not been patented has been kept confidential, except such information, the disclosure of which could not reasonably be expected
to have a Material Adverse Effect. To the Company’s knowledge, there is no infringement by third parties of any Intellectual Property of the Company or the Subsidiary, and there is no pending or, to the Company’s knowledge, threatened
action, suit, proceeding or claim by others challenging the Company’s or the Subsidiary’s rights in or to any Intellectual Property or Third Party Intellectual Property, and the Company is unaware of any facts which would form a reasonable
basis for any such claim, except for such facts which could not reasonably be expected to have a Material Adverse Effect. There is no pending or, to the Company’s knowledge, threatened action, suit, proceeding or claim by others that the
Company or the Subsidiary infringes or otherwise violates any patent, trademark, copyright, trade secret or other proprietary rights of others, and is unaware of any facts which would form a reasonable basis for any such claim, except for such facts
which could not reasonably be expected to have a Material Adverse Effect. 
  
 (dd) The Company has duly filed or caused to be filed with the U.S. Patent and Trademark Office (the “PTO”) and applicable foreign and international patent authorities certain patent applications described
in the Offering Memorandum (or, if the Offering Memorandum is not in existence, the 

  

 12 

 
Preliminary Offering Memorandum) and owned by the Company. To the Company’s knowledge, the Company has complied with the PTO’s duty of candor and
disclosure, and complied with such duty that any other applicable patent office may have, regarding prosecution of the patent applications and made no misrepresentation in the patent applications. Except as set forth in the Offering Memorandum (or,
if the Offering Memorandum is not in existence, the Preliminary Offering Memorandum) and except as could not reasonably be expected to have a Material Adverse Effect, the Company is not aware of any facts material to a determination of patentability
regarding the patent applications not called to the attention of the PTO that would preclude the grant of a patent for the patent applications; and the Company has secured with appropriate legal instruments clear title to the patent applications.

  
 (ee) The Company and the Subsidiary maintain
insurance in such amounts and covering such risks as the Company reasonably considers adequate for the conduct of its business and the value of its properties and as is customary for companies engaged in similar businesses in similar industries, all
of which insurance is in full force and effect, except where the failure to maintain such insurance could not reasonably be expected to have a Material Adverse Effect. There are no material claims by the Company or the Subsidiary under any such
policy or instrument as to which any insurance company has indicated that it intends to deny liability or defending under a reservation of rights clause. The Company reasonably believes that it will be able to renew its existing insurance as and
when such coverage expires or will be able to obtain replacement insurance adequate for the conduct of the business and the value of its properties at a cost that could not reasonably be expected to have a Material Adverse Effect. 
  
 (ff) The Company has in effect insurance, subject to
customary minimums, maximums and exclusions, covering the Company and its directors and officers for liabilities or losses arising in connection with this Offering, including, without limitation, liabilities or losses arising under the Securities
Act, the Exchange Act, and applicable foreign securities laws. 
  
 (gg) Each of the Company and the Subsidiary has prepared, in a manner it reasonably believes to be accurate, and timely filed all federal, state, foreign and other tax returns that are required to be filed by it
(except in any case in which the failure so to file would not have a Material Adverse Effect) and has paid or made provision for the payment of all taxes, assessments, governmental or other similar charges, including without limitation, all sales
and use taxes and all taxes which the Company or the Subsidiary is obligated to withhold from amounts owing to employees, creditors and third parties, with respect to the periods covered by such tax returns (whether or not such amounts are shown as
due on any tax return) except for any such taxes, assessments or charges that would not have a Material Adverse Effect. No deficiency assessment with respect to a proposed material adjustment of the Company’s or the Subsidiary’s federal,
state, local or foreign taxes is pending or, to the Company’s knowledge, 

  

 13 

 
threatened. The accruals and reserves on the books and records of the Company and the Subsidiary in respect of tax liabilities for any taxable period not
finally determined are reasonably adequate to meet any assessments and related liabilities for any such period, the Company and the Subsidiary have not incurred any liability for taxes other than in the ordinary course of its business. There is no
material tax Lien, whether imposed by any federal, state, foreign or other taxing authority, outstanding against the assets, properties or business of the Company or the Subsidiary. 
  
 (hh) No collective bargaining agreement covering any employee of the Company or the Subsidiary exists that
is binding on either the Company or the Subsidiary, and to the Company’s knowledge no petition has been filed or proceeding instituted by an employee or group of employees of either the Company or the Subsidiary with the National Labor
Relations Board seeking recognition of a bargaining representative. To the Company’s knowledge, no organizational effort currently is being made or threatened by or on behalf of any labor union to organize any employees of either the Company or
the Subsidiary, and there currently is no labor strike or organized work stoppage in effect by the employees of either the Company or the Subsidiary. 
  
 (ii) No “prohibited transaction” (as defined in either Section 406 of the Employee Retirement Income Security Act of 1974, as
amended, including the regulations and published interpretations thereunder (“ERISA”) or Section 4975 of the Internal Revenue Code of 1986, as amended from time to time (the “Code”)), “accumulated funding deficiency”
(as defined in Section 302 of ERISA) or other event of the kind described in Section 4043(b) of ERISA (other than events with respect to which the 30-day notice requirement under Section 4043 of ERISA has been waived) has occurred with respect to
any employee benefit plan (as defined in Section 3(3) of ERISA) for which the Company or the Subsidiary would have any liability; each employee benefit plan (as defined in Section 3(3) of ERISA) for which the Company or the Subsidiary would have any
liability is in compliance in all material respects with applicable law, including (without limitation) ERISA and the Code; the Company has not incurred and does not expect to incur material liability under Title IV of ERISA with respect to the
termination of, or withdrawal from any “pension plan” (as defined in Section 3(2)); and each pension plan (as defined in Section 3(2)) for which the Company would have any material liability that is intended to be qualified under Section
401(a) of the Code is so qualified and, to the Company’s knowledge, nothing has occurred, whether by action or by failure to act, which could cause the loss of such qualification. 
  
 (jj) There has been no storage, generation, transportation, handling, treatment, disposal, discharge,
emission or other release of any kind of toxic or hazardous substances or wastes regulated under Environmental Laws (“Hazardous Substances”) by the Company or the Subsidiary (or, to the Company’s knowledge, any other entity for whose
acts or omissions the Company is liable) upon any property now or previously owned or leased by the 

  

 14 

 
Company or the Subsidiary, to the Company’s or Subsidiary’s knowledge, upon any other property, in violation of any applicable law, rule,
regulation, order, judgment, decree or permit relating to pollution or protection of human health and the environment (“Environmental Law”), except for any such violations that could not reasonably be expected to have a Material Adverse
Effect. To the Company’s or Subsidiary’s knowledge, without independent investigation, there has been no disposal, discharge, emission or other release of any kind onto such property of any Hazardous Substances in violation of
Environmental Laws, except for any such violation that could not reasonably be expected to have a Material Adverse Effect. Neither the Company nor the Subsidiary has agreed to assume, undertake or provide indemnification for any liability of any
other person under any Environmental Law, including any obligation for cleanup or remedial action. There is no pending or, to the Company’s knowledge, threatened administrative, regulatory or judicial action, claim or notice of noncompliance or
violation, investigation or proceedings pursuant to any Environmental Law against the Company or any Subsidiary, which could reasonably be expected to have a Material Adverse Effect. 
  
 (kk) Neither the Company, the Subsidiary, nor to the Company’s knowledge, any of its officers,
directors, employees or agents has at any time during the last five years (i) made any unlawful contribution to any candidate for foreign office, or failed to disclose fully any contribution in violation of law, or (ii) made any payment to any
federal or state governmental officer or official, or other person charged with similar public or quasi-public duties, other than payments required or permitted by the laws of the United States of any jurisdiction thereof. 
  
 (ll) Neither the Company nor the Subsidiary (i) is in
violation of its certificate of incorporation, bylaws, or other organizational documents or (ii) is in default under, and no event has occurred which, with notice or lapse of time or both, would constitute a default under or result in the creation
or imposition of any Lien upon any of its property or assets pursuant to, any indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or other agreement, obligation, condition, covenant, instrument, franchise, license or
permit to which it is a party or by which it is bound or to which any of its property or assets is subject, except (in the case of clause (ii) above) defaults or Liens disclosed in the Offering Memorandum (or, if the Offering Memorandum is not in
existence, the most recent Preliminary Offering Memorandum) or that could not (individually or in the aggregate) reasonably be expected to have a Material Adverse Effect. 
  
 (mm) Except as described in the Offering Memorandum (or, if the Offering Memorandum is not in existence, the
most recent Preliminary Offering Memorandum), none of the Company or the Subsidiary is in default under any of the contracts described in the Offering Memorandum (or, if the Offering Memorandum is not in existence, the most recent Preliminary
Offering Memorandum), has received a notice or claim of any such default or has 

  

 15 

 
knowledge of any breach of such contracts by the other party or parties thereto, except such defaults or breaches as would not, individually or in the
aggregate, have a Material Adverse Effect. 
  
 (nn) Neither the Company nor the Subsidiary has taken or will take any action that would cause this Agreement or the issuance or sale of the Securities to violate Regulation T, U or X of the Board of Governors of the Federal Reserve System,
in each case as in effect, or as the same may hereafter be in effect, on the Closing Date (and, if any Optional Notes are purchased, as of the Additional Closing Date). 
  
 (oo) No securities of the Company or any of the Subsidiary are (i) of the same class (within the meaning of
Rule 144A under the Securities Act) as the Notes and (ii) listed on a national securities exchange registered under Section 6 of the Exchange Act or quoted in a U.S. automated interdealer quotation system. 
  
 (pp) The statistical, industry-related and market-related
data included in the Offering Memorandum (or, if the Offering Memorandum is not in existence, the most recent Preliminary Offering Memorandum) are based on or derived from sources which the Company reasonably and in good faith believes are reliable
and accurate, and such data agree with the sources from which they are derived. 
  
 (qq) The Company has not distributed and, prior to the later to occur of the (i) Closing Date (ii) if any Optional Notes are purchased,
the Additional Closing Date and (iii) completion of the distribution of the Notes, will not distribute any offering material in connection with the offer and sale of the Notes other than the Preliminary Offering Memorandum and the Offering
Memorandum. 
  
 (rr) The certificates for the
shares of Common Stock (including the Conversion Shares) conform to the requirements of the Nasdaq National Market and the Delaware General Corporation Law. 
  
 (ss) The Company is in compliance with applicable provisions of the Sarbanes-Oxley Act that are effective and is actively taking steps to
ensure that it will be in compliance with other applicable provisions of the Sarbanes-Oxley Act upon the effectiveness of such provisions. 
  
 (tt) The Company has implemented the “disclosure controls and procedures” (as defined in Rules 13a-14(c) and 15d-14(c) of the
Exchange Act) required in order for the Chief Executive Officer and Chief Financial Officer of the Company to engage in the review and evaluation process mandated by the Exchange Act. The Company’s “disclosure controls and procedures”
are reasonably designed to ensure that all information (both financial and non-financial) required to be disclosed by the Company in the 

  

 16 

 
reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the specified time periods, and that all such
information is accumulated and communicated to the Company’s management as appropriate to allow timely decisions regarding required disclosure and to make the certifications of the Chief Executive Officer and Chief Financial Officer of the
Company required under the Exchange Act with respect to such reports. 
  
 (uu) Since December 31, 2002, the Company has not informed its auditors or the audit committee of the board of directors of the Company (or persons fulfilling the equivalent function) of (i) any significant
deficiencies in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial data nor any material weaknesses in
internal controls over financial reporting; (ii) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal controls. 
  
 (vv) Except as disclosed in the Offering Memorandum (or, if
the Offering Memorandum is not in existence, the Preliminary Offering Memorandum), there are no outstanding guarantees or other known contingent obligations of the Company or the Subsidiary that could reasonably be expected to have a Material
Adverse Effect. 
  
 3. Purchase, Sale and Delivery of the
Notes. 
  
 (a) On the basis of the
representations, warranties, agreements and covenants herein contained and subject to the terms and conditions herein set forth, the Company agrees to issue and sell to the Initial Purchaser, and the Initial Purchaser agrees to purchase from the
Company, at 97.0% of their principal amount, the respective aggregate principal amount of the Firm Notes set forth on Schedule 1 hereto. 
  
 (b) In addition, on the basis of the representations, warranties, agreements and covenants herein contained and subject to the terms and
conditions herein set forth, the Company hereby grants an option to the Initial Purchaser, to purchase up to $20,000,000 in aggregate principal amount of Optional Notes from the Company at the same price as the purchase price to be paid by the
Initial Purchaser for the Firm Notes, plus accrued interest, if any, from the Closing Date (as hereinafter defined) to the Additional Closing Date (as hereinafter defined). The option granted hereunder may be exercised at any time, on or before the
thirtieth day following the date of the Offering Memorandum upon written notice by the Initial Purchaser to the Company, which notice may be given from time to time on one or more occasions. Such notice shall set forth (i) the amount (which shall be
an integral multiple of $1,000 in aggregate principal amount at issuance) of Optional Notes as to which the Initial Purchaser is exercising the option and (ii) the time, date and place at 

  

 17 

 
which such Optional Notes will be delivered (which time and date may be simultaneous with, but not earlier than, the Closing Date (as hereinafter defined)
and in such case, the term “Closing Date” shall refer to the time and date of delivery of the Firm Notes and the Optional Notes). Such time and date of delivery, if subsequent to the Closing Date, is called the “Additional Closing
Date.” The Additional Closing Date must be not later than eight full business days after the date the Initial Purchaser exercises the option, with the actual date determined by the Initial Purchaser. The Initial Purchaser may cancel the option
at any time prior to its expiration by giving written notice of such cancellation to the Company. 
  
 (c) Delivery of and payment for the Firm Notes shall be made at the offices of Morrison & Foerster LLP, 1290 Avenue of the Americas,
New York, New York, 10104, at 9:00 a.m., New York time, on February 17, 2004, or at such other date as the Initial Purchaser and the Company may agree upon, such time and date being herein referred to as the “Closing Date.” The Firm Notes
shall be delivered on the Closing Date against payment of the purchase price therefore by wire transfer of immediately available funds to an account specified in writing to the Initial Purchaser by the Company. One or more global securities
representing the Firm Notes shall be registered by the Trustee in the name of Cede & Co., the nominee of The Depository Trust Company (“DTC”), credited to the accounts of such of its participants as the Initial Purchaser shall request,
upon notice to the Company at least 48 hours prior to the Closing Date. 
  
 (d) Delivery to the Initial Purchaser of and payment for the Optional Notes shall be made on the Additional Closing Date in the same manner and in the same office and at the same time of day as payment for the Firm
Notes. 
  
 4. Offering by the Initial Purchaser. The
Initial Purchaser proposes to make an offering of the Notes at the price and upon the terms set forth in the Offering Memorandum as soon as practicable after this Agreement is entered into and as in the judgment of the Initial Purchaser is
advisable. The Initial Purchaser may from time to time thereafter change the price and other selling terms. 
  
 5. Certain Covenants. For purposes of this Section 5, “Closing Date” shall refer to the Closing Date for the Firm Notes and any
Additional Closing Date for the Optional Notes. The Company covenants and agrees with the Initial Purchaser that: 
  
 (a) The Company will not amend or supplement the Preliminary Offering Memorandum or the Offering Memorandum or any amendment or supplement
thereto of which the Initial Purchaser shall not previously have been advised and furnished a copy for a reasonable period of time prior to the proposed amendment or supplement and as to which the Initial Purchaser shall not have given its consent,
other than by filing documents under the Exchange Act that are incorporated by reference therein, without the consent 

  

 18 

 
of the Initial Purchaser (which consent shall not be unreasonably withheld). The Company will promptly, upon the reasonable request of the Initial Purchaser
or counsel to the Initial Purchaser, make any amendments or supplements to the Offering Memorandum that may be reasonably necessary or advisable in connection with the resale of the Notes by the Initial Purchaser. 
  
 (b) The Company will cooperate with the Initial Purchaser in
arranging for the qualification or exemption of the Notes for offer and sale under the securities or “Blue Sky” laws of such jurisdictions as the Initial Purchaser may designate and will continue any such qualifications or exemptions in
effect for as long as may be necessary to complete the distribution of the Notes by the Initial Purchaser; provided, however, that in connection therewith the Company shall not be required to qualify as a foreign corporation or to execute a
general consent to service of process in any jurisdiction or to take any other action that would subject it to general service of process or to taxation in respect of doing business in any jurisdiction in which it is not otherwise subject.

  
 (c) If, at any time prior to the completion
of the resale by the Initial Purchaser of the Notes, any event shall occur as a result of which it is necessary, in the opinion of counsel for the Initial Purchaser, to amend or supplement the Offering Memorandum in order to make such Offering
Memorandum not misleading in the light of the circumstances existing at the time it is delivered to a purchaser, or if for any other reason it shall be necessary to amend or supplement the Offering Memorandum in order to comply with applicable laws,
rules or regulations, the Company shall notify the Initial Purchaser of any such event and (subject to Section 5(a)) forthwith amend or supplement such Offering Memorandum at its own expense so that, as so amended or supplemented, such Offering
Memorandum will not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they are made, not misleading and will comply with
all applicable laws, rules or regulations. 
  
 (d) The Company will, without charge, provide to the Initial Purchaser and to counsel to the Initial Purchaser as many copies of each of the Preliminary Offering Memorandum, the Offering Memorandum or any amendment or supplement thereto as
the Initial Purchaser or its counsel may reasonably request. 
  
 (e) During the period of three years from the Closing Date, the Company will furnish to the Initial Purchaser (a) as soon as practicable after mailing, a copy of each report and other communication (financial or
otherwise) of the Company mailed to the Trustee or the holders of the Notes, stockholders or any national securities exchange on which any class of securities of the Company may be listed other than materials filed with the Commission via EDGAR and
(b) from time to time, subject to compliance with applicable 

  

 19 

 
securities laws, such other information concerning the Company and the Subsidiary as the Initial Purchaser may reasonably request. 
  
 (f) The Company will apply the net proceeds from the sale of
the Notes materially as set forth under “Use of Proceeds” in the Offering Memorandum. 
  
 (g) None of the Company or any of its respective affiliates (as defined in Rule 144(a) under the Security Act) will sell, offer for sale
or solicit offers to buy or otherwise negotiate in respect of any “security” (as defined in the Securities Act) which could be integrated with the sale of the Notes in a manner which would require the registration under the Securities Act
of the Notes. 
  
 (h) For so long as the Notes
constitute “restricted” securities within the meaning of Rule 144(a)(3) under the Securities Act, the Company will not, and will not permit any of the Subsidiary to, solicit any offer to buy or offer to sell the Notes by means of any form
of general solicitation or general advertising (as those terms are used in Regulation D under the Securities Act) or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act. 
  
 (i) For so long as any of the Notes remain outstanding and
are “restricted securities” within the meaning of Rule 144(a)(3) under the Securities Act and not able to be sold in their entirety by a seller under Rule 144 under the Securities Act (or any successor provision), the Company will make
available, upon request, to any such seller of such Notes the information specified in Rule 144A(d)(4) under the Securities Act, unless the Company is then subject to Section 13 or 15(d) of the Exchange Act. 
  
 (j) During the period from the Closing Date until two years
after the Closing Date, without the prior written consent of the Initial Purchaser, the Company will not, and will not permit any of its “affiliates” (as defined in Rule 144(a) under the Securities Act) to, resell any of the Securities
which constitute “restricted securities” under Rule 144 that have been reacquired by any of them. 
  
 (k) The Company will not take any action prohibited by Regulation M under the Exchange Act, in connection with the distribution of the
Securities contemplated hereby. 
  
 (l) The
Company will (i) permit the Notes to be included for quotation on the PORTAL Market and (ii) permit the Notes to be eligible for clearance and settlement through The Depository Trust Company. 
  
 (m) The Company will use its reasonable best efforts to list
the Conversion Shares for quotation on the Nasdaq National Market as promptly as 

  

 20 

 
practicable but in no event later than the time that the Registration Statement is declared effective in accordance with the Registration Rights Agreement.

  
 (n) The Company will, at all times, reserve
and keep available, free of preemptive rights, enough shares of Common Stock for the purpose of enabling the Company to satisfy its obligations to issue the Conversion Shares upon conversion of the Notes. 
  
 (o) During the period of 90 days from the date of the
Offering Memorandum, without the prior written consent of the Initial Purchaser, the Company (i) will not, directly or indirectly, issue, offer, sell, agree to issue, offer or sell, solicit offers to purchase, grant any call option, warrant or other
right to purchase, purchase any put option or other right to sell, pledge, borrow or otherwise dispose of any Relevant Security, or make any announcement of any of the foregoing, (ii) will not establish or increase any “put equivalent
position” or liquidate or decrease any “call equivalent position” (in each case within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder) with respect to any Relevant Security, and
(iii) will not otherwise enter into any swap, derivative or other transaction or arrangement that transfers to another, in whole or in part, any economic consequence of ownership of a Relevant Security, whether or not such transaction is to be
settled by delivery of Relevant Securities, other securities, cash or other consideration, other than the sale of Notes as contemplated by this Agreement, the issuance of the Conversion Shares, and the Company’s issuance of Common Stock upon
(i) the conversion or exchange of convertible or exchangeable securities outstanding on the date hereof; (ii) the exercise of currently outstanding options; (iii) the exercise of currently outstanding warrants; and (iv) the grant and exercise of
options under, or the issuance and sale of shares pursuant to, employee and director stock option plans in effect on the date hereof, each as described in the Offering Memorandum. The Company will not file a registration statement under the
Securities Act in connection with any transaction by the Company or any person that is prohibited pursuant to the foregoing, except for (i) the Company’s filing of registration statements pursuant to the Registration Rights Agreement, and (ii)
registration statements on Form S-8 relating to employee benefit plans. 
  
 (p) The Company will do and perform all things required to be done and performed by it under this Agreement and the other Offering Documents prior to or after the Closing Date and will use its reasonable best efforts
to satisfy all conditions on its part to the obligations of the Initial Purchaser to purchase and accept delivery of the Notes. 
  
 6. Expenses. Whether or not the Offering is consummated or this Agreement is terminated (pursuant to Section 12 or otherwise), the Company agrees
to pay the following costs and expenses and all other costs and expenses incident to the performance by the Company of its obligations hereunder: (i) the negotiation, preparation, printing, typing, reproduction, execution and delivery of this
Agreement and 

  

 21 

 
of the other Offering Documents, any amendment or supplement to or modification of any of the foregoing and any and all other documents furnished pursuant
hereto or thereto or in connection herewith or therewith; (ii) the preparation, printing or reproduction of each Preliminary Offering Memorandum, the Offering Memorandum and each amendment or supplement to any of them; (iii) the delivery (including
postage, air freight charges and charges for counting and packaging) of such copies of each Preliminary Offering Memorandum, the Offering Memorandum and all amendments or supplements to any of them as may be reasonably requested for use in
connection with the offer and sale of the Notes; (iv) the preparation, printing, authentication, issuance and delivery of certificates for the Notes and the Conversion Shares, including any stamp taxes in connection with the original issuance and
sale of the Securities; (v) the reproduction and delivery of this Agreement and the other Offering Documents, the preliminary and supplemental “Blue Sky” memoranda and all other agreements or documents reproduced and delivered in
connection with the offering of the Securities; (vi) the exemption from, or registration or qualification of the Securities for offer and sale under the securities or Blue Sky laws of the several states (including filing fees and the reasonable
fees, expenses and disbursements of counsel to the Initial Purchaser relating to such registration and qualification); (vii) the transportation and other expenses incurred by or on behalf of Company representatives in connection with presentations
to and related communications with prospective purchasers of the Notes; (viii) the fees and expenses of the Company’s accountants and the fees and expenses of counsel (including local and special counsel, if any) for the Company; (ix) fees and
expenses of the Trustee including fees and expenses of its counsel; (x) all expenses and listing fees incurred in connection with the application for quotation of the Notes on the PORTAL Market; (xi) all expenses and listing fees incurred in
connection with the application for listing for quotation of the Common Stock on the Nasdaq National Market; (xii) all expenses incurred in connection with the performance of the Company’s obligations under the Registration Rights Agreement;
and (xiii) any fees charged by investment rating agencies for the rating of the Notes. 
  
 7. Conditions of the Initial Purchaser’s Obligations. For purposes of this Section 7, “Closing Date” shall refer to the Closing Date for the Firm Notes and any Additional Closing Date for the
Optional Notes. The obligations of the Initial Purchaser to purchase and pay for the Notes are subject to the absence from any certificates opinions, written statements or letters furnished to the Initial Purchaser pursuant to this Section 7 of any
misstatement or omission and to the following additional conditions unless waived in writing by the Initial Purchaser: 
  
 (i) The Initial Purchaser shall have received an opinion in form and substance reasonably satisfactory to the Initial Purchaser, dated the
Closing Date, of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., counsel to the Company covering the matters set forth on Exhibit B hereto. 
  
 (ii) The Initial Purchaser shall have received an opinion in form and substance reasonably satisfactory to the Initial Purchaser, dated
the Closing Date, of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., 

  

 22 

 
intellectual property counsel to the Company, covering the matters set forth on Exhibit C hereto. 
  
 (iii) The Initial Purchaser shall have received an opinion
of Morrison & Foerster LLP, counsel to the Initial Purchaser, dated the Closing Date, with respect to the sufficiency of certain legal matters relating to this Agreement and such other related matters as the Initial Purchaser may require.

  
 (iv) The Initial Purchaser shall have
received from Deloitte & Touche LLP, independent public accountants for the Company, on each of the date hereof and the Closing Date, in form and substance reasonably satisfactory to the Initial Purchaser and Morrison & Foerster LLP, counsel
to the Initial Purchaser, letters dated the date hereof and the Closing Date confirming that is an independent public accountant within the meaning of the Exchange Act and the applicable published rules and regulations thereunder and containing such
other statements and information as is ordinarily included in accountants’ “comfort letters” to underwriters with respect to the financial statements and certain financial and statistical information contained or incorporated by
reference in the Offering Memorandum. 
  
 (v) The
Initial Purchaser shall have received from each of the officers and directors listed on Schedule 2 hereto an executed Lock-Up Agreement in substantially the form of Exhibit D hereto. 
  
 (vi) The representations and warranties of the Company contained in this Agreement shall be true and correct
on and as of the Closing Date; the Company shall have complied in all material respects with all agreements and satisfied all conditions on its part to be performed or satisfied hereunder at or prior to the Closing Date. 
  
 (vii) None of the issuance and sale of the Securities
pursuant to this Agreement or any of the transactions contemplated by any of the other Offering Documents shall be enjoined (temporarily or permanently) and no restraining order or other injunctive order shall have been issued; and there shall not
have been any legal action, statute, order, decree or other administrative proceeding enacted, instituted or overtly threatened against the Company or against the Initial Purchaser relating to the issuance of the Securities or the Initial
Purchaser’s activities in connection therewith or any other transactions contemplated by this Agreement or the Offering Memorandum, or the other Offering Documents. 
  
 (viii) Subsequent to the date of this Agreement and since the date of the most recent financial statements
in the Offering Memorandum (exclusive of any amendment or supplement thereto after the date hereof), there shall not have occurred (i) any change, or any development involving a 

  

 23 

 
prospective change, in or affecting the business, condition (financial or other), properties, or results of operations of the Company or the Subsidiary, not
disclosed in the Offering Memorandum that is, in the judgment of the Initial Purchaser, so material and adverse as to make it impracticable or inadvisable to proceed with the offering of the Securities on the terms and in the manner contemplated by
the Offering Memorandum, or (ii) any event or development relating to or involving the Company or the Subsidiary, or any of their respective officers or directors that makes any material statement made in the Offering Memorandum untrue or that, in
the opinion of the Company and its counsel or the Initial Purchaser and their counsel, requires the making of any addition to or change in the Offering Memorandum in order to state a material fact necessary in order to make the statements made
therein, in light of the circumstances under which they were made, not misleading. 
  
 (ix) The Initial Purchaser shall have received certificates, dated the Closing Date and signed by the president and chief executive
officer and the chief financial officer of the Company (in their capacities as such), to the effect that: 
  
 a. All of the representations and warranties of the Company set forth in this Agreement are true and correct as if made on and as of the
Closing Date and, as of the Closing Date all agreements, conditions and obligations of the Company to be performed, satisfied or complied with hereunder on or prior the Closing Date have been duly performed, satisfied or complied with in all
material respects. 
  
 b. The issuance and sale
of the Notes pursuant to this Agreement and the Offering Memorandum and the consummation of the transactions contemplated by the Offering Documents have not been enjoined (temporarily or permanently) and no restraining order or other injunctive
order has been issued and there has not been any legal action, order, decree or other administrative proceeding instituted or, to such officers’ knowledge, threatened against the Company relating to the issuance of the Securities or the Initial
Purchaser’ activities in connection therewith or in connection with any other transactions contemplated by this Agreement or the Offering Memorandum or the other Offering Documents. 
  
 c. Subsequent to the date of this Agreement and since the date of the most recent financial statements in
the Offering Memorandum (exclusive of any amendment or supplement thereto after the date hereof), there has not occurred (i) any material adverse change, or any development involving a prospective material adverse change, in or affecting the
business, condition (financial or other), properties, or results of operations of the Company or the Subsidiary, not contemplated by the Offering Memorandum, or (ii) any event or development relating to or involving the Company or the Subsidiary, or
any of their respective 

  

 24 

 
officers or directors that makes any material statement made in the Offering Memorandum untrue or that requires the making of any addition to or change in
the Offering Memorandum in order to state a material fact necessary in order to make the statements made therein, in light of the circumstances under which they are made, not misleading. 
  
 d. At the Closing Date and after giving effect to the consummation of the transactions contemplated by the
Offering Memorandum, there exists no Default or Event of Default (as defined in the Indenture). 
  
 (x) Each of the Offering Documents and each other agreement or instrument executed in connection with the transactions contemplated
thereby shall be reasonably satisfactory in form and substance to the Initial Purchaser and shall have been executed and delivered by all the respective parties thereto (other than the Initial Purchaser) and shall be in full force and effect, and
there shall have been no material amendments, alterations, modifications or waivers of any provision thereof since the date of this Agreement. 
  
 (xi) All proceedings taken in connection with the issuance of the Notes and the transactions contemplated by this Agreement, the other
Offering Documents and all documents and papers relating thereto shall be reasonably satisfactory to the Initial Purchaser and counsel to the Initial Purchaser. 
  
 (xii) The Notes shall have been approved for trading on PORTAL. 
  
 (xiii) Since the date of this Agreement, there shall not
have been any announcement by any “nationally recognized statistical rating organization,” as defined for purposes of Rule 436(g) under the Securities Act, that (A) it is downgrading its rating assigned to any debt securities of the
Company, or (B) it is reviewing its rating assigned to any debt securities of the Company with a view to possible downgrading, or with negative implications, or direction not determined. 
  
 (xiv) On or before the Closing Date, the Initial Purchaser shall have received the Registration Rights
Agreement executed by the Company and such agreement shall be in full force and effect. 
  
 (xv) The Company shall have furnished or caused to be furnished to the Initial Purchaser such further certificates and documents as the
Initial Purchaser shall have reasonably requested. 
  
 (xvi) At the Closing Date, the Company and the Trustee shall have entered into the Indenture and the Initial Purchaser shall have received counterparts, conformed as executed, thereof and the Notes shall 

  

 25 

 
have been duly executed and delivered by the Company and duly authenticated by the Trustee. 
  
 All such opinions, certificates, letters, schedules, documents or instruments delivered pursuant to this Agreement will
comply with the provisions hereof only if they are reasonably satisfactory in all material respects to the Initial Purchaser and counsel to the Initial Purchaser. The Company shall furnish to the Initial Purchaser such conformed copies of such
opinions, certificates, letters, schedules, documents and instruments in such quantities as the Initial Purchaser shall reasonably request. 
  
 8. Indemnification. 
  
 (a) The Company shall indemnify and hold harmless (i) the Initial Purchaser, (ii) each person, if any, who controls the Initial Purchaser
within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and (iii) the respective officers, directors, partners, employees, representatives and agents of the Initial Purchaser or any controlling person, from and
against any and all losses, liabilities, claims, damages and expenses whatsoever as incurred (including but not limited to reasonable attorneys’ fees and any and all expenses whatsoever incurred in investigating, preparing or defending against
any investigation or litigation, commenced or threatened, or any claim whatsoever, and any and all amounts paid in settlement of any claim or litigation), joint or several, to which they or any of them may become subject under the Securities Act,
the Exchange Act or otherwise, insofar as such losses, liabilities, claims, damages or expenses (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in (A)
the Preliminary Offering Memorandum or the Offering Memorandum, or (B) any materials or information provided to investors by the Company, or with the written approval of the Company, in connection with the marketing of the Securities, including any
road show or investor presentations made to investors by the Company (whether in person or electronically) (“Marketing Materials”), or (ii) the omission or alleged omission to state in the Preliminary Offering Memorandum or the Offering
Memorandum, or in any Marketing Materials, a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, however, that the Company will not be liable in
any such case to the extent, but only to the extent, that any such loss, liability, claim, damage or expense arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission made therein in
reliance upon and in conformity with written information furnished to the Company by or on behalf of the Initial Purchaser expressly for use therein; provided, further, that the foregoing indemnity agreement with respect to any
Preliminary Offering Memorandum shall not inure to the benefit of the Initial Purchaser if it failed to deliver an Offering Memorandum (as then amended or supplemented, provided by the Company to the Initial Purchaser in the requisite quantity and
on a timely basis to permit proper delivery on or prior to the Closing Date) to the person asserting any losses, liabilities, claims, damages and 

  

 26 

 
expenses caused by any untrue statement or alleged untrue statement of a material fact contained in any Preliminary Offering Memorandum, or caused by an
omission or alleged omission to state therein a material fact necessary to make the statements therein; in light of the circumstances under which they were made, not misleading, if such material misstatement or omission or alleged material
misstatement or omission was cured, as determined by a court of competent jurisdiction in a decision not subject to further appeal, in such Offering Memorandum and such Offering Memorandum was required by law to be delivered at or prior to the
written confirmation of sale to such person. The parties acknowledge and agree that such information provided by or on behalf of the Initial Purchaser consists solely of the material identified in Section 16 hereof. This indemnity agreement will be
in addition to any liability that the Company may otherwise have, including under this Agreement. 
  
 (b) The Initial Purchaser shall indemnify and hold harmless (i) the Company, (ii) each person, if any, who controls the Company within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and (iii) the officers, directors, partners, employees, representatives and agents of the Company, from and against any and all losses, liabilities, claims, damages and
expenses whatsoever as incurred (including but not limited to attorneys’ fees and any and all expenses whatsoever incurred in investigating, preparing or defending against any investigation or litigation, commenced or threatened, or any claim
whatsoever and any and all amounts paid in settlement of any claim or litigation), joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such losses, liabilities,
claims, damages or expenses (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the Preliminary Offering Memorandum or the Offering Memorandum, or arise out
of or are based upon the omission or alleged omission to state in the Preliminary Offering Memorandum or the Offering Memorandum a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not
misleading, in each case to the extent, but only to the extent, that any such loss, liability, claim, damage or expense arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission made therein in
reliance upon and in conformity with written information furnished to the Company by or on behalf of such Initial Purchaser expressly for use therein; provided, however, that in no case shall the Initial Purchaser be liable or
responsible for any amount in excess of the discounts and commissions received by such Initial Purchaser. The parties acknowledge and agree that such information provided by or on behalf of the Initial Purchaser consists solely of the material
identified in Section 16 hereof. This indemnity will be in addition to any liability that the Initial Purchaser may otherwise have, including under this Agreement. 
  
 (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the
commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the 

  

 27 

 
indemnifying party under such subsection, notify each party against whom indemnification is to be sought in writing of the commencement thereof (but the
failure so to notify an indemnifying party shall not relieve it from any liability which it may have under this Section 8 except to the extent (but only to the extent) that such action is not otherwise made known to the indemnifying party and such
indemnifying party is not aware of such action and it has been materially prejudiced (including the forfeiture of important rights and defenses)). In case any such action is brought against any indemnified party, and it notifies an indemnifying
party of the commencement thereof, the indemnifying party will be entitled to participate, at its own expense in the defense of such action, and to the extent it may elect by written notice delivered to the indemnified party promptly after receiving
the aforesaid notice from such indemnified party, to assume the defense thereof with counsel satisfactory to such indemnified party; provided, however, that counsel to the indemnifying party shall not (except with the written consent
of the indemnified party) also be counsel to the indemnified party. Notwithstanding the foregoing, the indemnified party or parties shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel
shall be at the expense of such indemnified party or parties unless (i) the employment of such counsel shall have been authorized in writing by one of the indemnifying parties in connection with the defense of such action, (ii) the indemnifying
parties shall not have employed counsel to take charge of the defense of such action within a reasonable time after notice of commencement of the action, (iii) the indemnifying party does not diligently defend the action after assumption of the
defense, or (iv) such indemnified party or parties shall have reasonably concluded that there may be defenses available to it or them which are different from or additional to those available to one or all of the indemnifying parties (in which case
the indemnifying party or parties shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses of one such counsel and any local counsel shall be borne by
the indemnifying parties. No indemnifying party shall, without the prior written consent of the indemnified parties, effect any settlement or compromise of, or consent to the entry of judgment with respect to, any pending or threatened claim,
investigation, action or proceeding in respect of which indemnity or contribution may be or could have been sought by an indemnified party under this Section 8 or Section 9 hereof (whether or not the indemnified party is an actual or potential party
thereto), unless (x) such settlement, compromise or judgment (i) includes an unconditional release of the indemnified party from all liability arising out of such claim, investigation, action or proceeding and (ii) does not include a statement as to
or an admission of fault, culpability or any failure to act, by or on behalf of the indemnified party, and (y) the indemnifying party confirms in writing its indemnification obligations hereunder with respect to such settlement, compromise or
judgment. 
  
 9. Contribution. In order to provide for
contribution in circumstances in which the indemnification provided for in Section 8 is for any reason held to be unavailable from an indemnifying party or is insufficient to hold harmless a party 

  

 28 

 
indemnified thereunder, the Company, on the one hand, and the Initial Purchaser, on the other hand, shall contribute to the aggregate losses, liabilities,
claims, damages and expenses of the nature contemplated by such indemnification provision (including any investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any
claims asserted, but after deducting in the case of losses, liabilities, claims, damages and expenses suffered by the Company, any contribution received by the Company from persons, other than the Initial Purchaser, who may also be liable for
contribution, including persons who control the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) to which the Company and the Initial Purchaser may be subject, in such proportion as is appropriate to
reflect the relative benefits received by the Company, on the one hand, and the Initial Purchaser, on the other hand, from the offering of the Notes or, if such allocation is not permitted by applicable law or indemnification is not available as a
result of the indemnifying party not having received notice as provided in Section 8, in such proportion as is appropriate to reflect not only the relative benefits referred to above but also the relative fault of the Company, on the one hand, and
the Initial Purchaser, on the other hand, in connection with the statements or omissions which resulted in such losses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations. The relative benefits received
by the Company, on the one hand, and the Initial Purchaser, on the other hand, shall be deemed to be in the same proportion as (i) the total proceeds from the offering of the Notes (net of discounts but before deducting expenses) received by the
Company bear to (ii) the discounts and commissions received by the Initial Purchaser, respectively. The relative fault of the Company, on the one hand, and of the Initial Purchaser, on the other hand, shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or the Initial Purchaser and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Initial Purchaser agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by
pro rata allocation (even if the Initial Purchaser were treated as one entity for such purpose) or by any other method of allocation which does not take into account the equitable considerations referred to above. The aggregate amount of
losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in Section 8 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or
defending against any litigation, or any investigation or proceeding by any judicial, regulatory or other legal or governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement
or omission or alleged omission. Notwithstanding the provisions of this Section 9, (i) in no case shall the Initial Purchaser be required to contribute any amount in excess of the amount by which the total price at which the Notes resold by such
Initial Purchaser in the initial placement of such Notes were offered to investors exceeds the amount of any damages which the Initial Purchaser has otherwise been required to pay by reason of any untrue or alleged untrue statement or omission or
alleged omission and (ii) no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to 

  

 29 

 
contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 9, (A) each person, if any, who controls
the Initial Purchaser within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and (B) the respective officers, directors, partners, employees, representatives and agents of the Initial Purchaser or any controlling
person shall have the same rights to contribution as such Initial Purchaser, and (1) each person, if any, who controls any Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and (2) the officers,
directors, employees, representatives and agents of the Company shall have the same rights to contribution as the Company, subject in each case to clauses (i) and (ii) of this Section 9. Any party entitled to contribution will, promptly after
receipt of notice of commencement of any action, suit or proceeding against such party in respect of which a claim for contribution may be made against another party or parties under this Section 9, notify such party or parties from whom
contribution may be sought, but the failure to so notify such party or parties shall not relieve the party or parties from whom contribution may be sought from any obligation it or they may have under this Section 9 or otherwise except to the extent
(but only to the extent) that such action is not otherwise made known to the indemnifying party and such indemnifying party is not aware of such action and it has been materially prejudiced (including the forfeiture of important rights and
defenses). No party shall be liable for contribution with respect to any action or claim settled without its prior written consent, provided that such written consent shall not be unreasonably withheld or delayed. The Initial Purchaser’s
obligations to contribute pursuant to this Section 9 are several in proportion to the respective principal amount of the Notes purchased by each of the Initial Purchaser hereunder and not joint. 
  
 10. Offering of Securities; Restrictions on Transfer. The Initial
Purchaser represents and warrants that it is a QIB. The Initial Purchaser acknowledges and agrees with the Company as to itself only that (i) the Notes and the Conversion Shares have not been and will not be registered under the Securities Act in
connection with the initial offering of the Notes; (ii) it is purchasing the Notes pursuant to a private sale exemption from registration under such Act and it is not acquiring the Notes with the intention of offering or selling the Notes in a
transaction that would violate the Securities Act or the securities laws of any state in the United States or any other applicable jurisdiction in which it offers or sells Notes or distributes the Preliminary Offering Memorandum or the Offering
Memorandum; (iii) it has not and will not solicit offers for, or offer or sell, the Securities by any form of general solicitation or general advertising (as those terms are used in Regulation D under the Securities Act) or in any manner involving a
public offering within the meaning of Section 4(2) of the Securities Act; and (iv) it has and will solicit offers for the Securities only from, and will offer the Securities only to, persons whom such Initial Purchaser reasonably believes to be QIBs
or, if any such person is buying for one or more institutional accounts for which such person is acting as fiduciary or agent, only when such person has represented to such Initial Purchaser that each such account is a QIB, to whom notice has been
given that such sale or delivery is being made in reliance on Rule 144A and, in each case, in transactions under Rule 144A. 
  

 30 

 11. Survival Clause. The respective representations, warranties, agreements, covenants, and
indemnities of the Company, and the Initial Purchaser set forth in this Agreement shall remain in full force and effect, regardless of (i) any investigation made by or on behalf of the Company, any of its officers or directors, the Initial Purchaser
or any controlling person referred to in Sections 8 and 9 hereof and (ii) delivery of and payment for the Notes, and shall, subject to Section 14 hereof, be binding upon and shall, subject to Section 14 hereof inure to the benefit of, any
successors, permitted assigns, heirs, legal representatives of the Company, the Initial Purchaser and indemnified parties referred to in Section 8 hereof. The respective agreements, covenants, and indemnities set forth in Sections 6, 8, 9, 11 and 12
hereof shall remain in full force and effect, regardless of any termination of this Agreement. 
  
 12. Termination. (a) This Agreement may be terminated in the sole discretion of the Initial Purchaser by notice to the Company given in the event that (x) the Company has failed, refused or been unable to
satisfy all conditions and obligations on its part to be performed or satisfied hereunder on or prior to the Closing Date or (y) if, at or prior to the Closing Date or at or prior to the Additional Closing Date, as the case may be: 
  
 (i) any domestic or international event or act or occurrence
has materially disrupted, or in the opinion of the Initial Purchaser will in the immediate future materially disrupt, the market for the Company’s securities or securities in general; 
  
 (ii) trading on the New York Stock Exchange, or the Nasdaq
National Market, shall have been suspended or made subject to material limitations, or minimum or maximum prices for trading shall have been fixed, or maximum ranges for prices for securities shall have been required, on the New York Stock Exchange
or the Nasdaq National Market, or by order of the Commission or other regulatory body or governmental authority having jurisdiction; 
  
 (iii) a banking moratorium has been declared by any state or federal authority or if any material disruption in commercial banking or
securities settlement or clearance services shall have occurred; 
  
 (iv) (A) there shall have occurred any outbreak or escalation of hostilities or acts of terrorism involving the United States or there is a declaration of a national emergency or war by the United States, or (B) there
shall have been any other calamity or crisis or any change in political, financial or economic conditions if the effect of any such event in (A) or (B), in the judgment of the Initial Purchaser, makes it impracticable or inadvisable to proceed with
the offering, sale and delivery of the Notes or the Optional Notes, as the case may be, on the terms and in the manner contemplated by the Offering Memorandum; or 
  

 31 

 (v) any debt securities of the Company shall have been downgraded or placed on any
“watch list” for possible downgrading by any “nationally recognized statistical rating organization” as defined for purposes of Rule 436(g) under the Securities Act. 
  
 (b) Subject to paragraph (c) below, termination of this Agreement pursuant to this Section 12 shall be
without liability of any party to any other party except as provided in Section 11 hereof. 
  
 (c) If this Agreement shall be terminated pursuant to any of the provisions hereof, or if the sale of the Notes provided for herein is not
consummated because any condition to the obligations of the Initial Purchaser set forth herein is not satisfied or because of any refusal, inability or failure on the part of the Company to perform any agreement herein or comply with any provision
hereof, the Company will, subject to demand by the Initial Purchaser, reimburse the Initial Purchaser for all out-of-pocket expenses (including the reasonable fees and the expenses of their counsel), incurred by the Initial Purchaser in connection
herewith. 
  
 13. Notices. All communications hereunder
shall be in writing and, if sent to the Initial Purchaser, shall be hand delivered, facsimiled, mailed by first-class mail, or couriered by next-day air courier and confirmed in writing to the Initial Purchaser c/o Bear Stearns & Co. Inc., 383
Madison Avenue, New York, New York 10179, Attention: Stephen Parish, Equity Capital Markets, facsimile number: (212) 272-2969 and with a copy to Morrison & Foerster LLP, 1290 Avenue of the Americas, New York, New York 10104, Attention: James R.
Tanenbaum, Esq., facsimile number: (212) 468-7900. If sent to the Company, shall be delivered, mailed, couriered or telecopied and confirmed in writing, to CuraGen Corporation, 555 Long Wharf Drive, 11th Floor, New Haven Connecticut, 06511, Attention: David M. Wurzer, facsimile number: (203) 401-3333, and with a copy to Mintz, Levin, Cohn, Ferris, Glovsky and
Popeo, P.C., One Financial Center, Boston Massachusetts 02111, Attention: Michael Fantozzi, Esq., facsimile number: (617) 542-2241. 
  
 14. Successors. This Agreement shall inure to the benefit of and be binding upon the Initial Purchaser and the Company and their respective
successors, permitted assigns and legal representatives, and nothing expressed or mentioned in this Agreement is intended or shall be construed to give any other person any legal or equitable right, remedy or claim under or in respect of this
Agreement, or any provisions herein contained; this Agreement and all conditions and provisions hereof being intended to be and being for the sole and exclusive benefit of such persons and for the benefit of no other person except that (i) the
indemnities of the Company contained in Section 8 of this Agreement shall also be for the benefit of any person or persons who control the Initial Purchaser within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and
(ii) the indemnities of the Initial Purchaser contained in Section 8 of this Agreement shall also be for the benefit of the directors of the Company, its officers, employees and agents and any person or persons who controls the Company within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange 

  

 32 

 
Act. No purchaser of Notes from the Initial Purchaser will be deemed a successor or an assign because of such purchase. Prior to the closing on the Closing
Date, no party may assign this Agreement or any of its rights hereunder without the prior written consent of the other party or parties. 
  
 15. No Waiver; Modifications in Writing. No failure or delay on the part of the Company or the Initial Purchaser in exercising any right, power or
remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy. The remedies provided
for herein are cumulative and are not exclusive of any remedies that may be available to the Company or the Initial Purchaser at law or in equity or otherwise. No waiver of or consent to any departure by the Company or the Initial Purchaser from any
provision of this Agreement shall be effective unless signed in writing by the party entitled to the benefit thereof; provided that notice of any such waiver shall be given to each party hereto as set forth below. Except as otherwise provided
herein, no amendment, modification or termination of any provision of this Agreement shall be effective unless signed in writing by or on behalf of the Company and the Initial Purchaser. Any amendment, supplement or modification of or to any
provision of this Agreement, any waiver of any provision of this Agreement, and any consent to any departure by the Company or the Initial Purchaser from the terms of any provision of this Agreement shall be effective only in the specific instance
and for the specific purpose for which made or given. Except where notice is specifically required by this Agreement, no notice to or demand on the Company in any case shall entitle the Company to any other or further notice or demand in similar or
other circumstances. 
  
 16. Information Supplied by the
Initial Purchaser. The statements set forth in the third paragraph, third sentence of the tenth paragraph and eleventh paragraph in the Offering Memorandum under the heading “Plan of Distribution” constitute the only information
furnished by the Initial Purchaser to the Company for purposes of Sections 2(a), 8(a) and 8(b) hereof. 
  
 17. Entire Agreement. This Agreement constitutes the entire agreement among the parties hereto and supersedes all prior agreements,
representations, warranties, understandings and arrangements, oral or written, among the parties hereto with respect to the subject matter hereof. 
  
 18. APPLICABLE LAW. THE VALIDITY AND INTERPRETATION OF THIS AGREEMENT, AND THE TERMS AND CONDITIONS SET FORTH HEREIN SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY PROVISIONS RELATING TO CONFLICTS OF LAW. 
  

 33 

 19. 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. 
  
 If the foregoing correctly sets forth our understanding, please indicate your acceptance thereof in the space provided below for that purpose, whereupon this letter shall constitute a binding agreement between the
Company and the Initial Purchaser. 
  

			
	Very truly yours,
	
	CURAGEN CORPORATION
	
	a Delaware corporation
		
	By:	 	 /s/ David M. Wurzer

	 	 	

	 	 	 Name: David M. Wurzer

	 	 	 Title: Executive Vice President and
     Chief financial Officer

  
 The foregoing Agreement is
hereby confirmed and accepted as of the date first above written. 
  

			
	 BEAR, STEARNS & CO. INC.

		
	 By:
	 	 /s/ Stephen Parish

	 	 	

	 	 	 Name: Stephen Parish
 Title:   Senior
Managing Director

  

 34 

 Schedule 1 
  

				
	 Initial Purchaser

	  	 Principal Amount
 of Notes

	 Bear, Stearns & Co. Inc.
	  	$	100,000,000
		
	 Total
	  	$	100,000,000
	 	  	
	

  

 35 

 Schedule 2 
  

Jonathan M. Rothberg, Chairman 
 Ronald M. Cresswell 
 David R. Ebsworth 
 Vincent T. DeVita, Jr. 
 John H. Forsgren 
 Robert E. Patricelli 
 Patrick J. Zenner 
 Jonathan M. Rothberg 
 David M. Wurzer 
 Christopher K. McLeod 
 Timothy M. Shannon 
 Elizabeth A. Whayland 
 Richard F. Begley 
  

	*	Note: List shall also include those spouses, family members, trusts, partnerships, etc. through which the above individuals hold securities. 

  

 36 

 Exhibit A 
  

			
	 Subsidiary

	  	 Jurisdiction of
 Incorporation

	454 Life Sciences Corporation	  	Delaware

  

 37 

 Exhibit B 
  

Form of Opinion of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. 
  
 1. Each of the Company and the Subsidiary has been duly incorporated in the State of Delaware, and each of the Company and the Subsidiary
validly exists as a corporation in good standing under the laws of its respective jurisdiction of incorporation, with the requisite corporate power and authority to own its properties and conduct its businesses as described in the Offering
Memorandum. Each of the Company and the Subsidiary is duly qualified and in good standing as a foreign corporation in the specified jurisdictions set forth on Schedule A annexed to this opinion letter. 
  
 2. The Company has the authorized capitalization as set forth in the Offering Memorandum, and
all of the authorized shares of capital stock of the Company conform in all material respects to the descriptions thereof contained in the Offering Memorandum in the section entitled “Description of Capital Stock”. All shares of Common
Stock outstanding on the date of the Offering Memorandum have been duly and validly authorized and issued, are fully paid and non-assessable. To such counsel’s knowledge, except as disclosed and as of the date or dates disclosed in the Offering
Memorandum, there are (i) no outstanding securities of the Company convertible into or evidencing the right to subscribe for any shares of capital stock of the Company, (ii) no outstanding or authorized options, warrants, calls, subscriptions,
rights, commitments or any other instruments or agreements of any character obligating the Company to issue any shares of its capital stock or any securities convertible into or evidencing the right to subscribe for any shares of such stock and
(iii) no agreements or arrangements with respect to the voting, sale or transfer of any shares of capital stock of the Company to which the Company is a party, and, to such counsel’s knowledge, subsequent to the date or dates disclosed in the
Offering Memorandum, no other securities described in clauses (i) and (ii) were issued or granted, other than options which were granted or exercised under, or shares of Common Stock which were issued or sold pursuant to, the Company’s employee
and director stock option plans, each plan as described in the Offering Memorandum. 
  
 3. All of the outstanding shares of capital stock or other equity securities of each Subsidiary held by the Company, to such counsel’s knowledge, are held free and clear of all Liens, other than the Liens under the Purchase Agreement
among the Subsidiary, the Company and the several purchasers named therein, dated as of June 5, 2000, as amended, that certain Purchase Agreement among the Subsidiary, the Company and the several purchasers named therein, dated as of September 18,
2003 and the Amended and Restated Registration Rights Agreement among the Subsidiary and the investors named therein, dated as of September 18, 2003, and limitations on voting rights and are duly authorized, validly issued, fully paid and
non-assessable. 
  
 4. The Company has the requisite corporate power and authority
to execute and deliver the Purchase Agreement, the Registration Rights Agreement and the Indenture, to 

  

 38 

 
perform its obligations thereunder, to issue and sell and deliver the Notes to the Initial Purchaser and to issue and deliver the Conversion Shares.

  
 5. The Registration Rights Agreement has been duly authorized, executed and
delivered by the Company and (assuming that the Registration Rights Agreement is the valid and legally binding obligation of the Initial Purchaser) constitutes a valid and legally binding obligation of the Company, enforceable against the Company in
accordance with its terms, except that the enforcement thereof may be limited by (i) bankruptcy, insolvency, reorganization, moratorium or other similar laws and court decisions now or hereafter in effect relating to or affecting creditors’
rights generally; and (ii) general principles of equity (regardless of whether such enforcement is considered in a proceeding at law or in equity) (clauses (i) and (ii) together, the “Enforceability Exceptions”); (iii) the fact that any
rights to indemnity or contribution thereunder may be limited by federal or state securities laws and public policy considerations; and (iv) [exception for liquidated damages to be added]. 
  
 6. The Purchase Agreement has been duly authorized, executed and delivered by the Company
(assuming that the Purchase Agreement is the valid and legally binding obligation of the Initial Purchase) constitutes a valid and legally binding obligation of the Company, enforceable against the Company in accordance with its terms, except that
the enforcement thereof may be limited by the Enforceability Exceptions and the fact that any rights to indemnity or contribution thereunder may be limited by federal or state securities laws and public policy considerations. 
  
 7. The Indenture has been duly authorized, executed and delivered by the Company and
(assuming that the Indenture is the valid and legally binding obligation of the Trustee) constitutes a valid and legally binding obligation of the Company, enforceable against the Company in accordance with its terms, except that the enforcement
thereof may be limited by the Enforceability Exceptions. 
  
 8. The Notes have
been duly authorized, executed and issued by the Company and, when duly authenticated by the Trustee in accordance with the terms of the Indenture and delivered to and paid for by the Initial Purchaser in accordance with the terms of the Purchase
Agreement, will constitute valid and legally binding obligations of the Company, enforceable against the Company in accordance with their terms, except that the enforcement thereof may be limited by the Enforceability Exceptions, and will be
entitled to the benefits of the Indenture and the Registration Rights Agreement. 
  
 9. The Conversion Shares have been duly authorized and reserved for issuance upon conversion of the Notes and, when issued upon conversion of the Notes in accordance with the terms of the Notes and the Indenture, will be validly issued,
fully paid and non-assessable, and such issuance of the Conversion Shares will not be subject to any preemptive rights under (i) the Company’s Certificate of Incorporation or By-laws, (ii) Delaware General Corporation Law or (iii) to such
counsel’s knowledge, under the express terms or provisions of any material agreement or other instrument to which the Company is a party. 
  

 39 

 10. The execution and delivery by the Company of the Purchase Agreement, the Registration Rights Agreement and the
Indenture, the issuance of the Notes and the performance by the Company of its obligations thereunder do not and will not (A) conflict with or result in a breach of any of the express terms and provisions of, or constitute a default (or an event
that with notice or lapse of time, or both, would constitute a default) under, or result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the Company or any of the Subsidiaries pursuant to, any
indenture, mortgage, deed of trust, loan agreement or any other agreement or instrument filed as an exhibit to the 2002 10-K or 2003 10-Qs, or any franchise, license or permit known to such counsel to which the Company or the Subsidiary is a party
or by which the Company or the Subsidiary or their respective properties or assets are otherwise bound or (B) violate or conflict with any provision of the certificate of incorporation or by-laws of the Company or the Subsidiary or, to such
counsel’s knowledge, any judgment, decree, order, statute, rule or regulation of any court or any judicial, regulatory or other legal or governmental agency or body. 
  
 11. No consent, approval, authorization or qualification of or with any federal, Connecticut, New York or Delaware State court, governmental
agency or body is required for the issue and sale of the Notes and the issuance of the Conversion Shares, the execution and delivery by the Company of the Purchase Agreement, the Registration Rights Agreement or the Indenture, the consummation by
the Company of the transactions contemplated thereby or the performance by the Company of its obligations thereunder, except such as may be required (i) in connection with the Company registering the Securities for resale pursuant to the
Registration Rights Agreement, (ii) under applicable state securities or “blue sky” laws in connection with the purchase and sale of the Securities or in connection with the resale of the Notes or the underlying Conversion Shares or (iii)
in connection with the qualification of the Indenture under the Trust Indenture Act of 1939, as amended. 
  
 12. Each of the Indenture and the Registration Rights Agreement conform in all material respects to the description thereof contained in the Offering Memorandum. 
  
 13. To such counsel’s knowledge, except as set forth in the Offering Memorandum, there
are no judicial, regulatory or other legal or governmental proceedings pending to which the Company or any of the Subsidiaries is a party or of which any property of the Company or the Subsidiaries is the subject that are required to be described in
the Offering Memorandum and are not so described and, to such counsel’s knowledge, no such proceedings are threatened by governmental authorities or others. 
  
 14. Assuming (i) all of the representations and warranties of the Initial Purchaser and the Company set forth in the Purchase Agreement are
true and correct, (ii) compliance by the Initial Purchaser and the Company with their respective covenants set forth in the Purchase Agreement and (iii) all of the representations and warranties made in accordance with the Offering Memorandum by the
purchasers to whom the Initial Purchaser initially resells the Notes are true and correct, it is not necessary in connection 

  

 40 

 
with the offer, sale and delivery of the Notes to the Initial Purchaser pursuant to the Purchase Agreement or the offer, sale and delivery of the Notes by
the Initial Purchaser to the initial purchasers therefrom, in the manner contemplated by the Purchase Agreement and as described in the Offering Memorandum, to register the Securities under the Securities Act of 1933, as amended, or to qualify the
Indenture under the Trust Indenture Act of 1939, as amended. 
  
 15. The Company
is not and, immediately after giving effect to the offering and sale of the Notes and the application of the proceeds thereof as described in the Offering Memorandum, will not be required to register as an “investment company,” as defined
in the Investment Company Act of 1940, as amended. 
  
 16. When the Notes are
issued and delivered pursuant to the Purchase Agreement, such Notes will not be of the same class (within the meaning of Rule 144A under the Securities Act) as securities of the Company that are listed on a national securities exchange registered
under Section 6 of the Exchange Act or that are quoted on a United States automated inter-dealer quotation system. 
  
 17. The statements in the Offering Memorandum under the captions “Description of the Notes”, “Description of Capital Stock,” insofar as such
statements purport to summarize the provisions of the Indenture, the Registration Rights Agreement, the Notes and the Common Stock (including the Conversion Shares), fairly summarize such provisions. 
  
 18. The statements in the Offering Memorandum under the caption “Certain U.S. Federal
Income Tax Considerations,” insofar as they purport to constitute summaries of matters of United States federal income and, in the case of non-resident aliens, estate tax law and regulations or legal conclusions with respect thereto, constitute
accurate summaries of the matters described therein in all material respects. 
  
 19. Each document incorporated by reference in the Offering Memorandum (except for the financial statements and related schedules included therein as to which such counsel need express no opinion) complied, when filed with the Commission,
as to form, in all material respects with the Exchange Act and the rules and regulations of the Commission promulgated thereunder. 
  
 In addition, such opinion shall also contain a statement that such counsel has participated in conferences with officers and representatives of the
Company, representatives of the independent auditors for the Company and the Initial Purchaser at which the contents of the Offering Memorandum (including the documents incorporated by reference therein) and related matters were discussed and, no
facts have come to the attention of such counsel that causes such counsel to believe that the Offering Memorandum (including the documents incorporated by reference therein), as of its date (or any amendment thereof or supplement thereto made prior
to the Closing Date as of the date of such amendment or supplement) and as of the Closing Date, contained or contains an untrue statement of a material fact or omitted or omits to state any material fact required to be stated therein or necessary to
make the statements therein, in light of 

  

 41 

 
the circumstances under which they were made, not misleading (it being understood that such counsel need express no belief or opinion with respect to the
financial statements, including the related notes, and schedules and all other financial data included or incorporated by reference therein). 
  

 42 

 Exhibit C 
  

Form of Opinion of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo PC 
  
 1. We have disclosed or intend to disclose to the United States Patent and Trademark Office any references known by us to be
material to the patentability of the claimed inventions of the United States patent applications of the Company being prosecuted by us listed on Schedule A in accordance with 37 C.F.R. § 1.56. 
  
 2. To our knowledge, the Company is the sole assignee of each of the United
States patent applications of the Company being prosecuted by us listed on Schedule A as pending for which a serial number has been issued; or to our knowledge all inventors on such patent applications are under an obligation to assign all of
their rights in such applications to the Company, except for the cases listed on Schedule B. 
  
 3. To our knowledge, the Company has not received any notice of infringement with respect to any patent, trademark or copyright or any notice of
misappropriation of trade secrets in relation to the Company’s currently contemplated 53135 product. 
  
 4. Based on our knowledge of the Company’s currently contemplated 53135 product as described to us by the Company, the Company is not currently
violating any patent right of a third party which we are aware of. 
  
 5. We are not aware of any pending or threatened legal or governmental proceedings relating to patent rights, copyrights trademark rights, trade secrets, or other proprietary rights of the Company (other than the patent prosecution or
trademark proceedings themselves). 
  
 6. To the best of our
knowledge, the statements under the captions in the Preliminary Offering Memorandum entitled “RISK FACTORS”, subsections on pages xx-xx, and entitled “Technology”, “Competition”, and Intellectual Property” on pages
xx-xx, insofar as such matters constitute matters of law or legal conclusions are accurate and correct in all material respects and fairly present such matters. 
  

7. With respect to United States patent, trademark, copyright and trade secret matters, nothing has come to our attention which would lead us to
believe that the statements under the captions in the Preliminary Offering Memorandum entitled “RISK FACTORS”, subsections on pages xx-xx, and entitled “Technology”, “Competition”, and Intellectual Property” on
pages xx-xx, as of the date thereof and at any Closing Date, contain any untrue statement of material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, not misleading. 
  

 43 

 Exhibit D 
  

Form of Lock-Up Agreement 
  
 February 10, 2004 
  
 Bear, Stearns & Co. Inc. 
 383 Madison Avenue 
 New York, New York 10179 
 Attention: Equity Capital Markets 
  
 CuraGen Corporation Lock-Up Agreement 
  
 Ladies and Gentlemen: 
  
 This letter agreement (this “Agreement”) relates to the proposed offering (the “Offering”) by CuraGen Corporation a Delaware
corporation (the “Company”), of its 4.0% Convertible Subordinated Notes due 2011 (the “Notes”) in an aggregate principal amount of up to $120 million (including the Initial Purchaser option to purchase additional Notes).

  
 In order to induce you (the “Initial Purchaser”) to
purchase Notes in the Offering, the undersigned hereby agrees that, without the prior written consent of Bear, Stearns & Co. Inc. (“Bear Stearns”), during the period from the date hereof until ninety (90) days from the date of the
Offering Memorandum (the “Lock-Up Period”), the undersigned (a) will not, directly or indirectly, issue, offer, sell, agree to issue, offer or sell, solicit offers to purchase, grant any call option, warrant or other right to purchase,
purchase any put option or other right to sell, pledge, borrow or otherwise dispose of any Relevant Security (as defined below), and (b) will not establish or increase any “put equivalent position” or liquidate or decrease any “call
equivalent position” with respect to any Relevant Security (in each case within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder) with respect to any Relevant
Security, or otherwise enter into any swap, derivative or other transaction or arrangement that transfers to another, in whole or in part, any economic consequence of ownership of a Relevant Security, whether or not such transaction is to be settled
by delivery of Relevant Securities, other securities, cash or other consideration. The foregoing sentence shall not apply to: (1) the transfer of shares of a Relevant Security by the undersigned as a gift or gifts; (2) the transfer of shares of a
Relevant Security by the undersigned to its affiliates, as such term is defined in Rule 405 under the Securities Act and (3) the exercise of stock options granted pursuant to the Company’s or its subsidiary’s stock option plans.
Notwithstanding the foregoing, the undersigned may transfer Relevant Securities pursuant to (1) or (2) above, provided that, each resulting transferee of Relevant Securities executes and delivers to you an agreement satisfactory to you
certifying that such transferee is bound by the terms of this Agreement and has been in compliance with the terms hereof since the date first above written as if it had been an original party hereto. As used herein “Relevant Security”
means the Stock, any other equity security of the Company or any of its subsidiaries and any security 

  

 44 

 
convertible into, or exercisable or exchangeable for, any Stock or other such equity security. 
  
 The undersigned hereby authorizes the Company during the Lock-Up Period to cause any transfer agent for the Relevant
Securities to decline to transfer, and to note stop transfer restrictions on the stock register and other records relating to, Relevant Securities for which the undersigned is the record holder and, in the case of Relevant Securities for which the
undersigned is the beneficial but not the record holder, agrees during the Lock-Up Period to cause the record holder to cause the relevant transfer agent to decline to transfer, and to note stop transfer restrictions on the stock register and other
records relating to, such Relevant Securities. The undersigned hereby further agrees that, without the prior written consent of Bear Stearns, during the Lock-up Period the undersigned (x) will not file or participate in the filing with the
Securities and Exchange Commission of any registration statement, or circulate or participate in the circulation of any preliminary or final prospectus or other disclosure document with respect to any proposed offering or sale of a Relevant Security
and (y) will not exercise any rights the undersigned may have to require registration with the Securities and Exchange Commission of any proposed offering or sale of a Relevant Security. 
  
 The undersigned hereby represents and warrants that the undersigned has full power and authority to enter into this
Agreement and that this Agreement constitutes the legal, valid and binding obligation of the undersigned, enforceable in accordance with its terms. Upon request, the undersigned will execute any additional documents necessary in connection with
enforcement hereof. Any obligations of the undersigned shall be binding upon the successors and assigns of the undersigned from the date first above written. 
  
 This Agreement shall be governed by and construed in accordance with the laws of the State of New York. Delivery of a signed copy of this letter by
facsimile transmission shall be effective as delivery of the original hereof. 
  

			
	 Very truly yours,

		
	 By:
	 	 
	 	 	

			
	 Print Name:
	 	 
	 	 	

  

 45REGISTRATION RIGHTS AGREEMENT DATED FEBRUARY 17, 2004

 Exhibit 10.31 
  
 CURAGEN CORPORATION 
  
 4.0% CONVERTIBLE SUBORDINATED NOTES DUE 2011 
  
 REGISTRATION RIGHTS AGREEMENT 
  
 February 17, 2004 
  
 BEAR, STEARNS & CO. INC. 
 383 Madison Avenue 
 New York, New York 10179 
 Ladies and Gentlemen: 
  
 CuraGen Corporation, a Delaware corporation (the “Company”), proposes to issue and sell to the initial purchaser
named in the purchase agreement (the “Initial Purchaser”), upon the terms set forth in such purchase agreement dated February 10, 2004 (the “Purchase Agreement”), its 4.0% Convertible Subordinated Notes due 2011 (the
“Securities”). As an inducement to the Initial Purchaser to enter into the Purchase Agreement and in satisfaction of a condition to the obligations of the Initial Purchaser thereunder, the Company agrees with the Initial Purchaser for the
benefit of Holders (as defined herein) from time to time of the Registrable Securities (as defined herein) as follows: 
  

	 	1.	Definitions. 

  
 Capitalized terms used herein without definition shall have the meanings ascribed to them in the Purchase Agreement. As used in this Agreement, the
following defined terms shall have the following meanings: 
  
 “Additional Interest” has the meaning assigned thereto in Section 7(a) hereof. 
  
 “Additional Shares” has the meaning assigned thereto in Section 7(a) hereof. 
  
 “Affiliate” of any specified person means any other person
which, directly or indirectly, is in control of, is controlled by, or is under common control with such specified person. For purposes of this definition, control of a person means the power, direct or indirect, to direct or cause the direction of
the management and policies of such person whether by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
  
 “Applicable Amount” means, (i) with respect to the Securities, the principal amount of the Securities and
(ii) with respect to shares of Common Stock issued upon conversion of the Securities pursuant to the Indenture, the principal amount of Securities that would then be convertible into such number of shares. 
  
 “Business Day” means each Monday, Tuesday, Wednesday,
Thursday and Friday that is not a day on which banking institutions in The City of New York are authorized or obligated by law or executive order to close. 
  

 “Commission” means the United States Securities and Exchange Commission, or any other
federal agency at the time administering the Exchange Act or the Securities Act, whichever is the relevant statute for the particular purpose. 
  
 “Common Stock” means the Company’s common stock, par value $0.01 per share. 
  
 “DTC” means The Depository Trust Company. 
  
 “Effectiveness Period” has the meaning assigned thereto in
Section 2(b)(i) hereof. 
  
 “Effective Time”
means the time at which the Commission declares any Shelf Registration Statement effective or at which any Shelf Registration Statement otherwise becomes effective. 
  
 “Exchange Act” means the United States Securities Exchange Act of 1934, as amended. 
  
 “Holder” means any person that is the record owner of
Registrable Securities (and includes any person that has a beneficial interest in any Registrable Security in book-entry form). 
  
 “Indenture” means the Indenture, dated as of February 17, 2004, between the Company and The Bank of New York, pursuant to which the
Securities are to be issued, and as amended and supplemented from time to time in accordance with its terms. 
  
 “Issue Date” means the first date of original issuance of the Securities. 
  
 “Majority of Holders” means Holders holding over 50% of the aggregate principal amount of Registrable
Securities outstanding. 
  
 “Notice and
Questionnaire” means a Notice of Registration Statement and Selling Securityholder Election and Questionnaire substantially in the form of Appendix A hereto. 
  
 “Notice Holder” has the meaning assigned thereto in Section 3(a)(i) hereof. 
  
 The term “person” means an individual, partnership, limited
liability company, corporation, trust or unincorporated organization, or a government or agency or political subdivision thereof. 
  
 “Prospectus” means the prospectus included in any Shelf Registration Statement, as amended or supplemented by any prospectus supplement
with respect to the terms of the offering of any portion of the Registrable Securities covered by any Shelf Registration Statement and by all other amendments and supplements to such prospectus, including all material incorporated by reference in
such prospectus and all documents filed after the date of such prospectus by the Company under the Exchange Act and incorporated by reference therein. 
  
 “Registrable Securities” means all or any portion of the Securities issued from time to time under the Indenture in registered form and
the shares of Common Stock issuable upon conversion of such securities until the earliest of: (x) the date on which such security has been registered under the Securities Act and disposed of pursuant to an effective registration 

  

 2 

 
statement, (y) the date that is two years after the later of (1) the last date of original issuance of the Securities and (2) the last date that the Company
or any of its Affiliates was the owner of such Securities (or any predecessor thereto), or such shorter period of time as permitted by Rule 144(k) (or any successor rule or regulation) under the Securities Act or any successor provisions thereunder
or (z) its sale to the public pursuant to Rule 144 (or any successor rule or regulation) under the Securities Act. 
  
 “Registration Default” has the meaning assigned thereto in Section 7(a) hereof. 
  
 “Securities Act” means the United States Securities Act of
1933, as amended. 
  
 “Shelf Registration” means
a registration effected pursuant to Section 2 hereof. 
  
 “Shelf Registration Statement” means a “shelf” registration statement filed under the Securities Act providing for the registration of, and the sale on a continuous or delayed basis by the Holders of, all of the
Registrable Securities pursuant to Rule 415 under the Securities Act and/or any similar rule that may be adopted by the Commission, filed by the Company pursuant to the provisions of Section 2 of this Agreement, including the Prospectus contained
therein, any amendments and supplements to such registration statement, including post-effective amendments, and all exhibits and all material incorporated by reference in such registration statement, and any additional “shelf”
registration statements filed under the Securities Act to permit the registration and sale of Registrable Securities pursuant to Section 3(a)(ii) hereof. 
  
 “Suspension Period” has the meaning assigned thereto in Section 2(c) hereof. 
  
 “Trust Indenture Act” means the Trust Indenture Act of 1939,
or any successor thereto, and the rules, regulations and forms promulgated thereunder, as the same shall be amended from time to time. 
  
 The term “underwriter” means any underwriter, or any person deemed to be an underwriter pursuant to the Securities Act and Exchange Act
and the respective rules and regulations thereunder, as in effect at any relevant time, of Registrable Securities in connection with an offering thereof under a Shelf Registration Statement. 
  
 Wherever there is a reference in this Agreement to a percentage of the
“principal amount” of Registrable Securities or to a percentage of Registrable Securities, each share of Common Stock issued upon conversion of the Securities shall represent a principal amount or percentage of Registrable Securities
determined based on a quotient, (i) the numerator of which shall be equal to the aggregate principal amount of Securities issued, less the aggregate principal amount of Securities outstanding as of the date of determination, and (ii) the denominator
of which shall be equal to the aggregate number of shares of Common Stock issued upon conversion of the Securities as of the date of determination. 
  

	 	2.	Shelf Registration. 

  
 (a) The Company shall, no later than 90 calendar days following the Issue Date, file with the Commission a Shelf Registration Statement relating to the
offer and sale of the Registrable Securities by the Holders from time to time in accordance with the methods of 

  

 3 

 
distribution elected by such Holders and, thereafter, shall use its reasonable best efforts to cause such initial Shelf Registration Statement to be declared
effective under the Securities Act no later than 210 calendar days following the Issue Date; provided, however, that only Holders who are Notice Holders shall be entitled to be named as a selling securityholder in any Shelf Registration Statement as
of the date it is declared effective or to use the Prospectus forming a part thereof for offers and resales of Registrable Securities. None of the Company’s securityholders (other than Holders of Registrable Securities) shall have the right to
include any of the Company’s securities in the Shelf Registration Statement. 
  
 (b) Subject to Section 2(c) hereof, the Company shall use its best efforts: 
  
 (i) to keep any Shelf Registration Statement continuously effective, supplemented and amended as required by the provisions of Section
3(j) hereof, in order to permit the Prospectus forming a part thereof to be usable by Holders until the earlier of: (1) two years from the last date of original issuance of any Securities or (2) such shorter period ending on the date that (x) all of
the Holders of Registrable Securities that are not Affiliates of the Company are able to sell all Registrable Securities immediately without restriction pursuant to Rule 144(k) under the Securities Act or any successor rule thereto, (y) all
Registrable Securities registered under the Shelf Registration Statements have been sold or (z) all Registrable Securities have ceased to be outstanding (such period being referred to herein as the “Effectiveness Period”); and 

 
 (ii) after the Effective Time of the initial Shelf
Registration Statement to take the actions provided for in Section 3(a)(ii) hereof after the receipt of a completed and signed Notice and Questionnaire from any Holder of Registrable Securities that is not then a Notice Holder. 
  
 The Company shall be deemed not to have used its reasonable best efforts to
keep any Shelf Registration Statement effective during the Effectiveness Period if the Company voluntarily takes any action that would result in Holders of Registrable Securities covered thereby not being able to offer and sell any of such
Registrable Securities under such Shelf Registration Statement during that period, unless such action is (A) required by applicable law and the Company thereafter promptly complies with the requirements of Section 3(j) hereof or (B) permitted
pursuant to Section 2(c) hereof. 
  
 (c) After the Effective Time
of the initial Shelf Registration Statement, the Company may suspend the use of any Prospectus by written notice to the Notice Holders for a period not to exceed an aggregate of 45 calendar days in any 90 calendar day period (each such period, a
“Suspension Period”) if: 
  
 (i) an
event has occurred and is continuing as a result of which the Shelf Registration Statement would, in the Company’s judgment, 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; and 
  
 (ii) the Company determines in good faith that the disclosure of such event at such time would have a material adverse effect on the Company and its subsidiaries taken as a whole; 
  
 provided, that in the event the disclosure relates to a previously
undisclosed proposed or pending material business transaction, the disclosure of which would impede the Company’s 

  

 4 

 
ability to consummate such transaction, the Company may extend a Suspension Period from 45 calendar days to 60 calendar days; provided, however, that
Suspension Periods (including, without limitation, any such extension of a Suspension Period) shall not exceed an aggregate of 120 calendar days in any 360 calendar day period. Each Holder shall keep confidential any communications received by it
from the Company regarding the suspension of the use of the Prospectus, except as required by applicable law. 
  

	 	3.	Registration Procedures. 

  
 In connection with the Shelf Registration Statements, the following provisions shall apply: 
  
 (a) (i) not less than 30 calendar days prior to the time the Company in good faith intends to have the
initial Shelf Registration Statement declared effective, the Company shall distribute the Notice and Questionnaire to the Holders of Registrable Securities. The Company shall take action to name as a selling securityholder in the initial Shelf
Registration Statement at the Effective Time each Holder that completes, executes and delivers a Notice and Questionnaire to the Company at the address set forth in the Notice and Questionnaire (a “Notice Holder”) prior to or on the 20th
calendar day after such Holder’s receipt thereof so that such Holder is permitted to deliver the Prospectus forming a part thereof as of such time to purchasers of such Holder’s Registrable Securities in accordance with applicable law. The
Company shall not be required to take any action to name any Holder as a selling securityholder in the initial Shelf Registration Statement at the time of its effectiveness or to enable any Holder to use the Prospectus forming a part thereof for
resales of Registrable Securities unless such Holder has returned a completed and signed Notice and Questionnaire to the Company in a timely manner. 
  
 (ii) After the Effective Time of the initial Shelf Registration Statement, the Company shall, upon the request of any Holder of
Registrable Securities that is not then a Notice Holder, promptly send a Notice and Questionnaire to such Holder. After the Effective Time of the initial Shelf Registration Statement, the Company shall (A) after the date a completed and signed
Notice and Questionnaire is delivered to the Company, prepare and file with the Commission (x) a supplement to the Prospectus as promptly as practicable or, if required by applicable law, a post-effective amendment to the Shelf Registration
Statement or an additional Shelf Registration Statement as promptly as practicable after the end of each fiscal quarter and (y) any other document required by applicable law, so that the Holder delivering such Notice and Questionnaire is named as a
selling securityholder in a Shelf Registration Statement and is permitted to deliver the Prospectus to purchasers of such Holder’s Registrable Securities in accordance with applicable law, and (B) if the Company shall file a post-effective
amendment to the Shelf Registration Statement, or an additional Shelf Registration Statement, use its reasonable best efforts to cause such post-effective amendment or such additional Shelf Registration Statement to become effective under the
Securities Act as promptly as is practicable; provided, however, that if a Notice and Questionnaire is delivered to the Company during a Suspension Period, the Company shall not be obligated to take the actions set forth in this clause (ii) until
the termination of such Suspension Period. 
  

 5 

 (b) The Company shall furnish to each Notice Holder, prior to the Effective Time, a copy of the Shelf
Registration Statement initially filed with the Commission, and shall furnish to such Notice Holders, prior to the filing with the Commission, copies of each amendment thereto and each amendment or supplement, if any, to the Prospectus included
therein (other than supplements solely for the purpose of naming one or more Notice Holders as selling securityholders), and shall use its best efforts to reflect in each such document, at the Effective Time or when so filed with the Commission, as
the case may be, such comments as such Notice Holders and their respective counsel reasonably may propose. 
  
 (c) The Company shall promptly take such action as may be necessary so that (i) each of the Shelf Registration Statements and any amendment thereto and
the Prospectus forming a part thereof and any amendment or supplement thereto (and each report or other document incorporated therein by reference in each case) complies in all material respects with the Securities Act and the Exchange Act and the
respective rules and regulations thereunder, as in effect at any relevant time, (ii) each of the Shelf Registration Statements and any amendment thereto does not, when it becomes effective, 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, and (iii) each Prospectus forming a part of any Shelf Registration Statement, and any amendment or supplement to such Prospectus, in the
form delivered to purchasers of the Registrable Securities during the Effectiveness Period, does not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading. 
  
 (d) The Company shall promptly advise each Notice Holder, and shall confirm such advice in writing if so requested by any such Notice Holder: 
  
 (i) when the initial Shelf Registration Statement has been filed with the Commission and when the initial Shelf Registration Statement has
become effective, in each case making a public announcement thereof in a newspaper of general circulation in The City of New York or by publishing the information on the Company’s website or through such other broad, public medium as the
Company may see fit; 
  
 (ii) when any supplement
to the Prospectus, Shelf Registration Statement or post-effective amendment to a Shelf Registration has been filed with the Commission and, with respect to a Shelf Registration Statement or any post-effective amendment, when the same has been
declared effective by the Commission; 
  
 (iii)
of any request by the Commission for amendments or supplements to any Shelf Registration Statement or the Prospectus included therein or for additional information; 
  
 (iv) of the issuance by the Commission of any stop order suspending the effectiveness of any Shelf
Registration Statement or the initiation of any proceedings for such purpose; 
  
 (v) of the receipt by the Company of any notification with respect to the suspension of the qualification of the securities included in any Shelf Registration Statement for sale in any jurisdiction or the initiation
of any proceeding for such purpose; and 
  

 6 

 (vi) of the happening of any event or the existence of any state of facts that requires
the making of any changes in any Shelf Registration Statement or the Prospectus included therein so that, as of such date, such Shelf Registration Statement and Prospectus do not contain an untrue statement of a material fact and do not omit to
state a material fact required to be stated therein or necessary to make the statements therein (in the case of the Prospectus, in the light of the circumstances under which they were made) not misleading (which advice shall be accompanied by an
instruction to such Holders to suspend the use of the Prospectus until the requisite changes have been made, which notice need not specify the nature of the event giving rise to such suspension). 
  
 (e) The Company shall use its best efforts to prevent the issuance, and if
issued to obtain the withdrawal at the earliest possible time, of any order suspending the effectiveness of any Shelf Registration Statement. 
  
 (f) As promptly as reasonably practicable furnish to each Notice Holder, upon their request and without charge, at least one (1) conformed copy of the
Registration Statement and any amendment thereto, including financial statements but excluding schedules, all documents incorporated or deemed to be incorporated therein by reference and all exhibits (unless requested in writing to the Company by
such Notice Holder). 
  
 (g) The Company shall, during the
Effectiveness Period, deliver to each Notice Holder, without charge, as many copies of each Prospectus in which the Notice Holder is listed as a selling securityholder included in the applicable Shelf Registration Statement and any amendment or
supplement thereto as such Notice Holder may reasonably request; and the Company consents (except during a Suspension Period or during the continuance of any event described in Section 3(d) (iii)-(vi) above) to the use of the Prospectus and any
amendment or supplement thereto by each of the Notice Holders in connection with the offering and sale of the Registrable Securities covered by the Prospectus and any amendment or supplement thereto during the Effectiveness Period. 
  
 (h) Prior to any offering of Registrable Securities pursuant to a Shelf
Registration Statement, the Company shall (i) register or qualify or cooperate with the Notice Holders and their respective counsel in connection with the registration or qualification (or exemption from such registration or qualification) of such
Registrable Securities for offer and sale under the securities or “blue sky” laws of such jurisdictions within the United States as any Notice Holder may reasonably request in writing, (ii) keep such registrations or qualifications or
exemption therefrom in effect and comply with such laws so as to permit the continuance of offers and sales in such jurisdictions for so long as may be necessary to enable any Notice Holder or underwriter, if any, to complete its distribution of
Registrable Securities pursuant to such Shelf Registration Statement, and (iii) take any and all other actions necessary or advisable to enable the disposition in such jurisdictions of such Registrable Securities; provided, however, that in
no event shall the Company be obligated to (A) qualify as a foreign corporation or as a dealer in securities in any jurisdiction where it would not otherwise be required to so qualify but for this Section 3(h) or (B) subject itself to general or
unlimited service of process or to taxation in any such jurisdiction if they are not now so subject. 
  
 (i) Unless any Registrable Securities shall be in book-entry only form, the Company shall cooperate with the Notice Holders to facilitate the timely
preparation and delivery of certificates representing Registrable Securities to be sold pursuant to any Shelf Registration 

  

 7 

 
Statement, which certificates, if so required by any securities market or exchange upon which any Registrable Securities are quoted or listed, shall be
penned, lithographed or engraved, or produced by any combination of such methods, on steel engraved borders, and which certificates shall be free of any restrictive legends and in such permitted denominations and registered in such names as Notice
Holders may request in connection with the sale of Registrable Securities pursuant to such Shelf Registration Statement. 
  
 (j) Upon the occurrence of any fact or event contemplated by paragraph 3(d)(vi) above, subject to Section 2(c) hereof, the Company shall promptly, but in
any event within 10 Business Days following such occurrence, prepare, file (and have declared effective) a post-effective amendment to any Shelf Registration Statement or an amendment or supplement to the related Prospectus included therein or file
any other document with the Commission so that, as thereafter delivered to purchasers of the Registrable Securities, the Prospectus will not include an untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading. If the Company notifies the Notice Holders of the occurrence of any fact or event contemplated by paragraph 3(d)(vi) above, the Notice Holder shall
suspend the use of the Prospectus until the requisite changes to the Prospectus have been made. 
  
 (k) Not later than the Effective Time of a Shelf Registration Statement, the Company shall provide a CUSIP number for the debt securities to be sold
pursuant to a Shelf Registration Statement. 
  
 (l) The Company
shall use its best efforts to comply with the Securities Act and the Exchange Act and the respective rules and regulations thereunder, as in effect at any relevant time, and make generally available to its securityholders earnings statements (which
need not be audited) satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder (or any similar rule promulgated under the Securities Act) no later than 45 days after the end of any 12-month period (or 90 days after the
end of any 12-month period if such period is a fiscal year), or such shorter period as required by the Securities Act and the Exchange Act and the rules and regulations thereunder, as in effect at any relevant time, commencing on the first day of
the first fiscal quarter of the Company commencing after (i) the effective date of a Shelf Registration Statement, (ii) the effective date of each post-effective amendment to such Shelf Registration Statement, or (iii) the date of each filing by the
Company with the Commission of an Annual Report on Form 10-K that is incorporated by reference in such Shelf Registration Statement, which statements shall cover said 12-month periods. 
  
 (m) Not later than the Effective Time of the initial Shelf Registration Statement, the Company shall use its best efforts to
cause the Indenture to be qualified under the Trust Indenture Act; in connection with such qualification, the Company shall cooperate with the Trustee under the Indenture and the Holders (as defined in the Indenture) to effect such changes to the
Indenture as may be required for such Indenture to be so qualified in accordance with the terms of the Trust Indenture Act; and the Company shall execute, and shall use all reasonable efforts to cause the Trustee to execute, all documents that may
be required to effect such changes and all other forms and documents required to be filed with the Commission to enable such Indenture to be so qualified in a timely manner. In the event that any such amendment or modification referred to in this
Section 3(m) involves the appointment of a new trustee under the Indenture, the Company shall appoint a new trustee thereunder pursuant to the applicable provisions of the Indenture. 
  

 8 

 (n) The Company shall enter into such customary agreements and take all such other necessary actions in
connection therewith (including those reasonably requested by the holders of a majority of the Registrable Securities being sold) in order to expedite or facilitate disposition of such Registrable Securities; provided, that the Company shall not be
required to take any action in connection with an underwritten offering without its consent. 
  
 (o) The Company shall make reasonably available for inspection by one or more representatives of the selling Holders, designated in writing by a Majority of Holders whose Registrable Securities are included in a Shelf
Registration Statement, any underwriter participating in any disposition pursuant to any Shelf Registration Statement, and any attorney, accountant or other agent retained by such Notice Holders or any such underwriter all relevant financial and
other records, pertinent corporate documents and properties of the Company and its subsidiaries, and (B) cause the Company’s officers, directors and employees to make reasonably available for inspection all information reasonably requested by
such Notice Holders or any such underwriter, attorney, accountant or agent in connection with such Shelf Registration Statement, in each case, as is customary for similar due diligence examinations; provided, however, that such persons shall, at the
Company’s request, first agree in writing with the Company that any information that is reasonably and in good faith designated by the Company in writing as confidential at the time of delivery, or inspection, as the case may be, of such
information shall be kept confidential by such persons and shall be used solely for the purposes of exercising rights under this Agreement, unless such disclosure is made in connection with a court proceeding or required by law, or such records,
information or documents become available to the public generally or through a third party without an accompanying obligation of confidentiality; and provided further that, if the foregoing inspection and information gathering would otherwise
disrupt the Company’s conduct of its business, such inspection and information gathering shall, to the greatest extent possible, be coordinated on behalf of the Notice Holders and the other parties entitled thereto by one counsel designated by
and on behalf of the Notice Holders and other parties. 
  
 (p) The
Company will use its best efforts to cause the Common Stock issuable upon conversion of the Securities to be quoted or listed on the Nasdaq National Market or other market or stock exchange on which the Common Stock primarily trades on or prior to
the Effective Time of each Shelf Registration Statement hereunder. 
  
 (q) The Company will cooperate and assist in any filings required to be made with National Association of Securities Dealers, Inc. 
  
 (r) The Company shall use its best efforts to take all other steps necessary to effect the registration, offering and sale of the Registrable Securities
covered by each Shelf Registration Statement contemplated hereby. 
  

	 	4.	Registration Expenses.  

  
 The Company shall bear all fees and expenses incurred in connection with the performance by the Company of its obligations under Sections 2 and 3 of this
Agreement whether or not any of the Shelf Registration Statements are declared effective. Such fees and expenses shall include, without limitation, (i) all registration and filing fees (including, without limitation, fees and expenses (x) with
respect to filings required to be made with the National Association of Securities Dealers, Inc. and (y) of compliance with United States federal and state 

  

 9 

 
securities or Blue Sky laws to the extent such filings or compliance are required pursuant to this Agreement (including, without limitation, reasonable fees
and disbursements of the counsel specified in the next sentence in connection with Blue Sky qualifications of the Registrable Securities under the laws of such jurisdictions as the Notice Holders of a majority of the Registrable Securities being
sold pursuant to a Shelf Registration Statement may designate)), (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities in a form eligible for deposit with The Depository Trust Company),
(iii) duplication expenses relating to copies of any Shelf Registration Statement or Prospectus delivered to any Holders hereunder, (iv) fees and disbursements of counsel for the Company in connection with the Shelf Registration Statement, and (v)
reasonable fees and disbursements of the Trustee and its counsel and of the registrar and transfer agent for the Common Stock. In addition, the Company shall bear or reimburse the Notice Holders for the reasonable fees and disbursements of one firm
of legal counsel for the Holders, which shall initially be counsel to the Initial Purchaser, but which may, upon the written consent of the Initial Purchaser (which shall not be unreasonably withheld), be another nationally recognized law firm
experienced in securities law matters designated by the Company. In addition, the Company shall pay the internal expenses of the Company (including, without limitation, all salaries and expenses of officers and employees performing legal or
accounting duties), the expense of any annual audit, the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange on which similar securities of the Company are then listed and the fees and
expenses of any person, including special experts, retained by the Company. 
  

	 	5.	Indemnification and Contribution.  

  
 (a) Indemnification by the Company. The Company shall indemnify and hold harmless each Notice Holder, the Initial Purchaser, and each person, if
any, who controls any such Notice Holder or Initial Purchaser within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any loss, claim, damage, liability or expense whatsoever as incurred (including
but not limited to reasonable attorneys’ fees and any and all expenses whatsoever incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever, and any and all amounts paid in
settlement of any claim or litigation), joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act or otherwise, insofar as any such loss, claim, damage, liability or expense (or action in respect
thereof) arises out of, or is based upon, any untrue statement or alleged untrue statement of a material fact contained in the Shelf Registration Statement or any amendment thereto or any related preliminary prospectus or the Prospectus or any
amendment thereto of supplement thereof, or arises out of, or is based upon, the omission or alleged omission to state therein any material fact required to be stated therein or necessary to make the statements therein not misleading; provided,
however, that the Company shall not be liable to any such indemnified party in any such case to the extent that any such loss, claim, damage, liability or expense arises out of, or is based upon, any such untrue statement or alleged untrue statement
or omission or alleged omission made therein in reliance upon and in conformity with written information furnished to the Company by or on behalf of such indemnified party specifically for use therein; and provided further, however, that the Company
shall not be liable to any such indemnified party in any such case to the extent that such loss, claim, damage, liability or expense arises from an offer or sale by a Notice Holder of Registrable Securities during a Suspension Period, if such
indemnified party is a Notice Holder that received 

  

 10 

 
from the Company a notice of the commencement of such Suspension Period prior to the making of such offer or sale. The foregoing indemnity agreement is in
addition to any liability that the Company may otherwise have to any indemnified party. The Company shall not be liable under this Section 5(a) for any settlement of any action effected without its written consent, which shall not be unreasonably
withheld, provided, however, that with respect to actions pursuant to clauses (1), (2) and (3) of Section 5(c), no such consent shall be required. 
  
 (b) Indemnification by the Notice Holders. Each Notice Holder, severally and not jointly, shall indemnify and hold harmless the Company, the
Initial Purchaser, and each person, if any, who controls the Company or the Initial Purchaser within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any loss, claim, damage, liability or expense
whatsoever as incurred (including but not limited to attorneys’ fees and any and all expenses whatsoever incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever, and any and all
amounts paid in settlement of any claim or litigation), joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act or otherwise, insofar as any such loss, claim, damage, liability or expense (or
action in respect thereof) arises out of, or is based upon, any untrue statement or alleged untrue statement of a material fact contained in the Shelf Registration Statement or any amendment thereto or any related preliminary prospectus or the
Prospectus or any amendment thereto or supplement thereof, or arises out of, or is based upon, the omission or alleged omission to state therein any material fact required to be stated therein or necessary to make the statements therein not
misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission made therein was made in reliance upon and in conformity with written information furnished to the
Company by or on behalf of such Notice Holder specifically for use therein. In no event shall the liability of any selling Notice Holder hereunder be greater in amount than the dollar amount of the proceeds received by such Holder upon the sale of
the Registrable Securities pursuant to the Shelf Registration Statement giving rise to such indemnification obligation. The foregoing indemnity agreement is in addition to any liability that any Notice Holder may otherwise have to the Company, the
Initial Purchaser and any such controlling person. 
  
 (c)
Notices of Claims, Etc. Promptly after receipt by an indemnified party under this Section 5 of notice of any claim or the commencement of any action, the indemnified party shall, if a claim in respect thereof is to be made against the
indemnifying party under this Section 5, notify the indemnifying party in writing of the claim or the commencement of that action; provided, however, that the failure to notify the indemnifying party shall not relieve it from any liability that it
may have under this Section 5. If any such claim or action shall be brought against an indemnified party, and it shall notify the indemnifying party thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it
wishes, jointly with any other similarly notified indemnifying party, to assume the defense thereof with counsel satisfactory to the indemnified party. After notice from the indemnifying party to the indemnified party of its election to assume the
defense of such claim or action, the indemnifying party shall not be liable to the indemnified party under this Section 5 for any legal or other expenses subsequently incurred by the indemnified party in connection with the defense thereof other
than reasonable costs of investigation; provided, however, that the indemnified party shall have the right to employ counsel to represent jointly the indemnified party and its respective directors, employees, officers and controlling persons who may
be subject to liability arising out of any claim in respect of which indemnity may be sought by the indemnified party against the indemnifying 

  

 11 

 
party under this Section 5 if (1) employment of such counsel has been authorized in writing by the indemnifying party, or (2) such indemnifying party shall
not have employed counsel to have charge of the defense of such proceeding within 30 days of the receipt of notice thereof, or (3) such indemnified party shall have reasonably concluded that the representation of such indemnified party and those
directors, employees, officers and controlling persons by the same counsel representing the indemnifying party would be inappropriate under applicable standards of professional conduct due to actual or potential differing interests between them or
where there may be one or more defenses available to them that are different from, additional to or in conflict with those available to the indemnifying party, and in any such event ((1), (2) or (3)) the fees and expenses of such separate counsel
shall be paid by the indemnifying party as incurred. It is understood that the indemnifying party shall not be liable for the fees and expenses of more than one separate firm (in addition to local counsel in each jurisdiction) for all indemnified
parties in connection with any proceeding or related proceedings. No indemnifying party shall, without the prior written consent of the indemnified parties, effect any settlement or compromise of, or consent to the entry of judgment with respect to,
any pending or threatened claim, investigation, action or proceeding in respect of which indemnity or contribution may be or could have been sought hereunder (whether or not the indemnified party or parties are actual or potential parties thereto)
unless (x) such settlement, compromise or judgment (i) includes an unconditional release of such indemnified party from all liability arising out of such claim, action, suit or proceeding and (ii) does not include a statement as to or an admission
of fault, culpability or failure to act by or on behalf of any indemnified party, and (y) the indemnifying party confirms in writing its indemnification obligations hereunder with respect to such settlement, compromise or judgment. 
  
 (d) Contribution. If the indemnification provided for in this Section
5 is unavailable or insufficient to hold harmless an indemnified party under subsections (a) or (b) above, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of the losses, claims,
damages, expenses or liabilities (or actions in respect thereof) referred to in subSection (a) or (b) above (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party or parties on the one hand and
the indemnified party on the other from the registration of the Registrable Securities pursuant to the Shelf Registration, or (ii) if the allocation provided by the foregoing clause (i) is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying party or parties on the one hand and the indemnified party on the other in connection with the statements or
omissions that resulted in such losses, claims, damages or liabilities (or actions in respect thereof) as well as any other relevant equitable considerations. The relative fault of the parties shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company on the one hand or such Holder or such other indemnified party, as the case
may be, on the other, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid by an indemnified party as a result of the losses, claims, damages or
liabilities referred to in the first sentence of this Section 5(d) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any action or claim which is the
subject of this Section 5(d). The Company and the Holders agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were 

  

 12 

 
determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to herein.
Notwithstanding any other provision of this Section 5(d), the Holders of the Registrable Securities shall not be required to contribute any amount in excess of the amount by which the gross proceeds received by such Holders from the sale of the
Registrable Securities pursuant to the Shelf Registration Statement exceeds the amount of damages which such Holders have otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this paragraph (d), each
person, if any, who controls such indemnified party within the meaning of the Securities Act or the Exchange Act shall have the same rights to contribution as such indemnified party and each person, if any, who controls the Company within the
meaning of the Securities Act or the Exchange Act shall have the same rights to contribution as the Company. The Holders’ respective obligations to contribute pursuant to this Section 5 are several in proportion to the respective amount of
Registrable Securities they have sold pursuant to a Registration Statement and not joint. The remedies provided for in this Section 5 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified
party at law or in equity. 
  
 (e) Survival. The indemnity
and contribution provisions contained in this Section 5 shall remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of the Initial Purchaser, any Holder or any
person controlling the Initial Purchaser or Holder, or by or on behalf of the Company, its officers or directors or any person controlling the Company, and (iii) any sale of Registrable Securities pursuant to the Shelf Registration Statement.

  

	 	6.	Holder’s Obligations.  

  
 Each Holder agrees, by acquisition of the Registrable Securities, that no Holder of Registrable Securities shall be entitled to sell any of such
Registrable Securities pursuant to a Shelf Registration Statement or to receive a Prospectus relating thereto, unless such Holder has furnished the Company with a Notice and Questionnaire as required pursuant to Section 3(a) hereof (including the
information required to be included in such Notice and Questionnaire) and the information set forth in the next sentence. Each Notice Holder agrees promptly to furnish to the Company all information required to be disclosed in order to make the
information previously furnished to the Company by such Notice Holder not misleading and any other information regarding such Notice Holder and the distribution of such Registrable Securities as may be required to be disclosed in the Shelf
Registration Statement under applicable law, pursuant to comments from the Commission or as the Company may from time to time reasonably request. Any sale of any Registrable Securities by any Notice Holder shall constitute a representation and
warranty by such Notice Holder that the information relating to such Notice Holder and its plan of distribution is as set forth in the Prospectus delivered by such Notice Holder in connection with such disposition, that such Prospectus does not as
of the time of such sale contain any untrue statement of a material fact relating to or provided by such Notice Holder or its plan of distribution and that such Prospectus does not as of the time of such sale omit to state any material fact relating
to or provided by such Notice Holder or its plan of distribution necessary in order to make the statements in such Prospectus, in the light of the circumstances under which they were made, not misleading. 
  

 13 

	 	7.	Additional Interest.  

  
 (a) Notwithstanding any postponement of the effectiveness pursuant to Section 2(a) hereof, if: 
  

	 	(i)	on or prior to the 90th day following the Issue Date, a Shelf Registration Statement has not been filed with the Commission, or 

  

	 	(ii)	on or prior to the 210th day following the Issue Date, such initial Shelf Registration Statement is not declared effective by the Commission, or 

  

	 	(iii)	after the effectiveness date of any Shelf Registration Statement, (x) such Shelf Registration Statement ceases to be effective or usable for the offer and sale of Registrable
Securities (other than due to a Suspension Period), and the Company fails to file (and have declared effective), within five Business Days, a post-effective amendment to such Shelf Registration Statement or amendment or supplement to the Prospectus
contained therein or such other document with the Commission to make such Shelf Registration Statement effective or such Prospectus usable, or (y) the Suspension Periods exceed 45 or 60 calendar days, as applicable, whether or not consecutive, in
any 90 calendar day period, or more than 120 calendar days, whether or not consecutive, during any 360 calendar day period during the Effectiveness Period, or 

  

	 	(iv)	the Company shall have failed to timely comply with any of its obligations set forth in Section 3(a)(ii) hereof, provided that such failure is not solely due to the failure of a
Holder of Registrable Securities to perform its obligations set forth in Section 3(a)(ii) hereof (each of (i) through (iv) a “Registration Default”), 

  
 the Company shall be required to pay additional interest (“Additional Interest”), from and including the day following such
Registration Default to but excluding the day on which such Registration Default is cured, at a rate per annum equal to an additional one-quarter of one percent (0.25%) of the Applicable Amount to and including the 90th day following such
Registration Default, and one-half of one percent (0.50%) thereof from and after the 91st day following such Registration Default. In the event any Registrable Securities that are Securities are converted into Common Stock during the continuance of
a Registration Default, the Company will deliver to each Holder converting Securities during the continuance of a Registration Default 103% of the number of shares of Common Stock the Holder would have otherwise received upon conversion
(“Additional Shares”) and no Additional Interest shall be payable on such converted Securities. 
  
 (b) In the case of a Registration Default described in Sections 7(a)(i)-(iii) above, Additional Interest, if any, shall be payable only to Notice Holders
and, in respect of a Registration Default described in Section 7(a)(iv) above, Additional Interest, if any, shall be payable only to Notice Holders to whom such Registration Default relates. 
  
 (c) Any amounts to be paid as Additional Interest pursuant to paragraph (a)
of this Section 7 shall be paid in cash semiannually in arrears, with the first semiannual payment due on the first interest payment date following the date on which such Additional Interest begins to accrue, to the Notice Holders in whose name the
Securities or Common Stock issued upon conversion of the Securities are registered at the close of business on February 15 or August 15, whether or not a Business Day, immediately preceding the relevant interest payment date. 
  

 14 

 (d) Except as provided in Section 9(a) hereof, the Additional Interest or Additional Shares as set forth
in this Section 7 shall be the exclusive cash (or asset, as the case may be) remedy available to the Holders of Registrable Securities for such Registration Default. In no event shall the Company be required to pay Additional Interest in excess of
the applicable maximum amount of one-half of one percent (0.50%) set forth above, regardless of whether one or multiple Registration Defaults exist. 
  

	 	8.	Rule 144A. 

  
 In the event the Company is not subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, the Company hereby agrees with each
Holder, for so long as any Registrable Securities remain outstanding, to make available to any Holder in connection with any sale thereof, the information required by Rule 144A(d)(4) under the Securities Act in order to permit resales of such
Registrable Securities pursuant to Rule 144A of the Securities Act, as such may be amended from time to time, or any similar or successor rule or regulation hereafter adopted by the Commission. 
  

	 	9.	Miscellaneous. 

  
 (a) Specific Performance. The parties hereto acknowledge that there would be no adequate remedy at law if the Company fails to perform any of its
obligations hereunder and that the Initial Purchaser and the Holders from time to time may be irreparably harmed by any such failure, and accordingly agree that the Initial Purchaser and such Holders, in addition to any other remedy to which they
may be entitled at law or in equity and without limiting the remedies available to the Notice Holders under Section 7 hereof, shall be entitled to compel specific performance of the obligations of the Company under this Registration Rights Agreement
in accordance with the terms and conditions of this Registration Rights Agreement, in any court of the United States or any State thereof having jurisdiction. 
  

(b) Amendments and Waivers. This Agreement, including this Section 9(b), may be amended, and waivers or consents to departures from the
provisions hereof may be given, only by a written instrument duly executed by the Company and a Majority of Holders. Each Holder of Registrable Securities outstanding at the time of any such amendment, waiver or consent or thereafter shall be bound
by any amendment, waiver or consent effected pursuant to this Section 9(b), whether or not any notice, writing or marking indicating such amendment, waiver or consent appears on the Registrable Securities or is delivered to such Holder. 

 
 (c) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, by telecopier, by courier guaranteeing overnight delivery or by first-class mail, return receipt requested, and shall be deemed given (i) when made, if made by hand delivery, (ii) upon
confirmation, if made by telecopier, (iii) one (1) Business Day after being deposited with such courier, if made by overnight courier or (iv) on the date indicated on the notice of receipt, if made by first-class mail, to the parties as follows:

  
 (w) if to a Holder of Registrable Securities, at the most
current address given by such Holder to the Company in a Notice and Questionnaire or any amendment thereto; 
  

 15 

	 	(x)	if to the Company, to: 

 CuraGen Corporation 
 555 Long Wharf Drive, 11th Floor 
  
 New Haven, Connecticut 06511

 Attention: Chief Financial Officer 
 Telephone: (203) 974-6275 
 Facsimile: (203) 401-3333 
  
 with a copy to: 
  
 Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. 
 One Financial Center 
 Boston Massachusetts 02111, 
 Attention: Michael Fantozzi, Esq. 
 Facsimile: (617) 542-2241 
  

	 	(y)	if to the Initial Purchaser, to: 

  
 Bear, Stearns & Co. Inc. 
 383 Madison
Avenue 
 New York, NY 10179 
 Attention: Stephen Parish 
 Facsimile: (212) 272-2969 
  
 or to such other address as such person may have furnished to the other persons identified in this Section 9(c) in writing in accordance
herewith. 
  
 (d) Parties in Interest. The parties to this
Agreement intend that all Holders of Registrable Securities shall be entitled to receive the benefits of this Agreement and that any Notice Holder shall be bound by the terms and provisions of this Agreement by reason of such election with respect
to the Registrable Securities which are included in a Shelf Registration Statement. All the terms and provisions of this Agreement shall be binding upon, shall inure to the benefit of and shall be enforceable by the respective successors and assigns
of the parties hereto and any Holder from time to time of the Registrable Securities to the aforesaid extent. In the event that any transferee of any Holder of Registrable Securities shall acquire Registrable Securities, in any manner, whether by
gift, bequest, purchase, operation of law or otherwise, such transferee shall, without any further writing or action of any kind, be entitled to receive the benefits of and, if a Notice Holder, be conclusively deemed to have agreed to be bound by
and to perform all of the terms and provisions of this Agreement to the aforesaid extent. 
  
 (e) Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement. 
  
 (f) Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. 
  

(g) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York. 
  
 (h) Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable in any 

  

 16 

 
respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions hereof shall
not be in any way impaired or affected thereby, it being intended that all of the rights and privileges of the parties hereto shall be enforceable to the fullest extent permitted by law. 
  
 (i) Survival. The respective indemnities, agreements, representations, warranties and other provisions set forth in
this Agreement or made pursuant hereto shall remain in full force and effect, regardless of any investigation (or any statement as to the results thereof) made by or on behalf of any Notice Holder, any director, officer or partner of such Holder,
any agent or underwriter, any director, officer or partner of such agent or underwriter, or any controlling person of any of the foregoing, and shall survive the transfer and registration of the Registrable Securities of such Holder. 
  

	 	10.	Submission to Jurisdiction; Appointment of Agent for Service. 

  
 The Company agrees that any suit, action or proceeding against the Company arising out of or based upon this Agreement or the transactions contemplated
hereby may be instituted in any state or federal court in The City of New York, New York, and waives any objection which it may now or hereafter have to the laying of venue of any such proceeding, and irrevocably submits to the non-exclusive
jurisdiction of such courts in any suit, action or proceeding. The Company expressly accepts the non-exclusive jurisdiction of any such court in respect of any such suit, action or proceeding. The Company agrees that a final judgment in any such
proceeding brought in any such court shall be conclusive and binding thereupon and may be enforced in any other court in the jurisdiction to which the Company is or may be subject by suit upon such judgment. 
  
 Please confirm that the foregoing correctly sets forth the agreement between
the Company and you. 
  

					
	Very truly yours,
	
	CuraGen Corporation
		
	By:	 	/s/ David M. Wurzer
	 	 	

	 	 	Name: David M. Wurzer
	 	 	Title:	 	 Executive Vice President and Chief
 Financial
Officer

  

					
	Accepted as of the date hereof:
	
	Bear, Stearns & Co. Inc.
		
	By:	 	 /s/ Paul S. Rosica

	 	 	

	 	 	Name: Paul S. Rosica
	 	 	Title:	 	Senior Managing Director

  

 17 

 APPENDIX A 
  
 CURAGEN CORPORATION 
  
 NOTICE OF REGISTRATION STATEMENT AND 
 SELLING SECURITYHOLDER ELECTION AND QUESTIONNAIRE 
  
 4.0% CONVERTIBLE SUBORDINATED NOTES DUE 2011 
  
 Notice

  
 CuraGen Corporation (the “Company”) has filed,
or intends shortly to file, with the Securities and Exchange Commission (the “Commission”) a registration statement on Form S-3 or such other Form as may be available (the “Shelf Registration Statement”) for the registration and
resale under Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”), of the Company’s Convertible Subordinated Notes due 2011 (CUSIP No. 23126RAD3) (the “Notes”), and common stock, par value $0.01 per
share, issuable upon conversion thereof (the “Shares” and together with the Notes, the “Transfer Restricted Securities”) in accordance with the terms of the Registration Rights Agreement, dated as of February 17, 2004 (the
“Registration Rights Agreement”) between the Company and Bear, Stearns & Co. Inc. A copy of the Registration Rights Agreement is available from the Company. All capitalized terms not otherwise defined herein have the meanings ascribed
thereto in the Registration Rights Agreement. 
  
 To sell or
otherwise dispose of any Transfer Restricted Securities pursuant to the Shelf Registration Statement, a beneficial owner of Transfer Restricted Securities generally will be required to be named as a Selling Securityholder in the related Prospectus,
deliver a Prospectus to purchasers of Transfer Restricted Securities, be subject to certain civil liability provisions of the Securities Act and be bound by those provisions of the Registration Rights Agreement applicable to such beneficial owner
(including certain indemnification rights and obligations, as described below). To be included in the Shelf Registration Statement, this Notice and Questionnaire must be completed, executed and delivered to the Company at the address set forth
herein for receipt prior to or on the 20th calendar day from the receipt hereof (the “Notice and Questionnaire Deadline”). Beneficial Owners that do not complete and return this Notice and Questionnaire prior to the Notice and
Questionnaire Deadline and deliver it to the Company as provided below will not be named as Selling Securityholders in the Shelf Registration Statement and, therefore, will not be permitted to sell any Transfer Restricted Securities pursuant to the
Shelf Registration Statement. 
  
 Certain legal consequences arise
from being named as a Selling Securityholder in the Shelf Registration Statement and the related Prospectus. Accordingly, holders and beneficial owners of Transfer Restricted Securities are advised to consult their own securities law counsel
regarding the consequences of being named or not being named as a Selling Securityholder in the Shelf Registration Statement and the related Prospectus. 
  
 ELECTION 
  
 The undersigned holder (the “Selling Securityholder”) of Transfer Restricted Securities hereby elects to include in the Shelf
Registration Statement the Transfer Restricted Securities beneficially owned by it and listed below in Item III (unless otherwise specified under Item Ill). 

  

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The undersigned, by signing and returning this Notice and Questionnaire, understands that it will be bound with respect to such Transfer Restricted
Securities by the terms and conditions of this Notice and Questionnaire and the Registration Rights Agreement. 
  
 Pursuant to the Registration Rights Agreement, the Selling Securityholder has agreed to indemnify and hold harmless the Company and each person, if any,
who controls the Company within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against certain losses arising in connection with statements concerning the Selling Securityholder made in the Shelf
Registration Statement or the related Prospectus in reliance upon the information provided in this Notice and Questionnaire. 
  

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 The Selling Securityholder hereby provides the following information to the Company and represents and
warrants that such information is accurate and complete: 
  
 QUESTIONNAIRE 

			
	
	 I.       A. Full Legal Name of Selling Securityholder:

	 	  	 
	 	 	

	
	 B. Full legal name of registered holder (if not the same as (a) above) through which Transfer Restricted Securities listed in (3) below are
held:

	 	  	 
	 	 	

	
	 C. Full legal name of DTC participant (if applicable and if not the same as (b) above) through which Transfer Restricted Securities listed in Item III
are held:

	 	  	 
	 	 	

	
	 D. Taxpayer identification or social security number of Selling Securityholder:

	 	  	 
	 	 	

	
	 II.     Address for notices to Selling Securityholders:

	 	  	 
	 	 	

	 	  	 
	 	 	

		
	 	  	 Telephone:                            
 Fax:
                                      
 E-mail:                                  
 Contact Person:                     

	
	 III.    Beneficial ownership of Transfer Restricted Securities:

	
	 A. Type of Transfer Restricted Securities beneficially owned, and principal amount of Notes or number of shares of Common Stock, as the case may be,
beneficially owned:

	
	 B. CUSIP No(s). of such Transfer Restricted Securities beneficially owned:

	
	 C. Amount of Transfer Restricted Securities that the undersigned wishes to be included in the Shelf Registration Statement:

	
	 IV.   Beneficial ownership of the Company’s securities owned by the Selling
Securityholder:

	
	EXCEPT AS SET FORTH BELOW IN THIS ITEM IV, THE UNDERSIGNED IS NOT THE BENEFICIAL OR REGISTERED OWNER OF ANY SECURITIES OF THE COMPANY OTHER THAN THE TRANSFER RESTRICTED SECURITIES
LISTED ABOVE IN ITEM III (“Other Securities”).
	
	 A. Type and amount of Other Securities beneficially owned by the Selling Securityholder:

		
	 	  	 
	 	 	

  

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	 B. CUSIP No(s). of such Other Securities beneficially owned:

	 	  	 
	 	 	

	
	V.     Relationship with the Company
	
	 Except as set forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (5% or
more) has
held any position or office or has had any other material relationship with the Company (or their predecessors or affiliates)
during the past three years.

	
	 State any exception here:

	 	  	 
	 	 	

	
	VI.   Nature of the Selling Securityholder:
		
	 	  	 (a)      Is the Selling Securityholder a reporting company under the Exchange Act, a majority owned
subsidiary of a reporting company under the Exchange Act, or a registered investment company under the Investment Company Act? If so, please state one.

	 	  	 
	

		
	 	  	 If the entity is a majority owned subsidiary or a reporting company, identify the majority stockholder that is a reporting company.

	 	  	 
	

		
	 	  	 If the entity is not any of the above, identify the natural person or persons having voting and investment control over the Company’s securities that the
entity owns.

	 	  	 
	

		
	 	  	(b)      Is the Selling Securityholder a registered broker-dealer?  
                     Yes          No

		
	 	  	 If yes, state whether the Selling Securityholder received the Transfer Restricted Securities as compensation for underwriting activities and, if so, provide a
brief description of the transaction(s) involved.

	 	  	 
	

		
	 	  	 State whether the Selling Securityholder is an affiliate of a broker-dealer and if so, list the name(s) of the broker-dealer
affiliate(s). For the purposes of this Item VI(b), an “affiliate” of a broker-dealer includes any company that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such
broker-dealer, and does not include individuals employed by any such broker-dealers or by their affiliates.
  
                     Yes
         No

  

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	 	  	 If the answer is “Yes”, you must answer the following:

		
	 	  	 If the Selling Securityholder is an affiliate of a registered broker-dealer, the Selling Securityholder purchased the Transfer
Restricted Securities (i) in the ordinary course of business and (ii) at the time of the purchase of the Transfer Restricted Securities, had no agreements or understanding, directly or indirectly, with any person to distribute the Transfer
Restricted Securities.
  
                     Yes          No
  
 If the answer is “No”, state any exceptions
here:

	 	  	 
	

		
	 	  	 If the answer is “No”, this may affect your ability to be included in the Shelf Registration Statement.

  

	VII.	Plan of Distribution: 

  
 Except as set forth below, the undersigned (including its donees, pledgees, transferees and other successors in interest) intends to distribute the
Transfer Restricted Securities listed above in Item III pursuant to the Shelf Registration Statement only as follows (if at all). Such Transfer Restricted Securities may be sold from time to time directly by the undersigned or, alternatively,
through underwriters, broker-dealers or agents. If the Transfer Restricted Securities are sold through underwriters or broker-dealers, the Selling Securityholder will be responsible for underwriting discounts or commissions or agent’s
commissions. Such Transfer Restricted Securities may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of sale, at varying prices determined at the time of sale, or at negotiated prices. Such sales may be
effected in transactions (which may involve crosses or block transactions): 
  
 1. on any national securities exchange or quotation service on which the Transfer Restricted Securities may be listed or quoted at the time of sale; 
  
 2. in the over-the-counter market; 
  

3. in transactions otherwise than on such exchanges or services or in the over-the-counter market; or 
  
 4. through the writing of options. 
  
 In connection with sales of the Transfer Restricted Securities or otherwise,
the undersigned may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the Transfer Restricted Securities and deliver Transfer Restricted Securities to close out such short positions, or loan or pledge
Transfer Restricted Securities to broker-dealers that in turn may sell such securities. State any exceptions here: 
  

			
	 	  	 
	 	 	

	 	  	 
	 	 	

  
 Note: In no event will
such method(s) of distribution take the form of an underwritten offering of the Transfer Restricted Securities without the prior agreement of the Company. 
  

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	VIII.	(Optional) Submissions after the Shelf Registration becomes effective: 

  
 If you are unable to trace your securities back to an individual or entity listed as a selling securityholder in the Shelf Registration Statement, we may
need to file a post-effective amendment to the Shelf Registration Statement. This could result in additional delay in your ability to resell your securities pursuant to the Shelf Registration Statement. In order to allow us to determine whether your
securities can be traced back to an individual or entity listed as a selling securityholder in the Shelf Registration Statement, please indicate from whom the Transfer Restricted Securities were acquired: 
  

			
	 	  	 
	 	 	

  
 By signing below, the
Selling Securityholder acknowledges that it understands its obligation to comply, and agrees it will comply, with the prospectus delivery requirements and other provisions of the Securities Act and Exchange Act and the respective rules and
regulations promulgated thereunder, particularly Regulation M thereunder (or any successor rules or regulations), in connection with any offering of Transfer Restricted Securities pursuant to the Shelf Registration Statement. The undersigned agrees
that neither it nor any person acting on its behalf will engage in any transaction in violation of such requirements and provisions. 
  
 The Selling Securityholder hereby acknowledges its obligations under the Registration Rights Agreement to indemnify and hold harmless certain persons as
set forth therein. 
  
 If the Selling Securityholder transfers all
or any portion of the Transfer Restricted Securities listed in Item III above after the date on which such information is provided to the Company, the Selling Securityholder agrees to notify the transferee(s) at the time of the transfer of its
rights and obligations under this Notice and Questionnaire and the Registration Rights Agreement and agrees to deliver a notice of such transfer, in substantially the form attached as Exhibit 1 to this Notice and Questionnaire, to the Trustee and
the Company. 
  
 By signing below, the Selling Securityholder
consents to the disclosure of the information contained herein in its answers to Items I through VI above and the inclusion of such information in the Shelf Registration Statement and the related Prospectus. The Selling Securityholder understands
that such information will be relied upon by the Company in connection with the preparation or amendment of the Shelf Registration Statement and the related Prospectus. 
  
 In accordance with the Selling Securityholder’s obligation under the Registration Rights Agreement to provide such
information as may be required by law for inclusion in the Shelf Registration Statement, the Selling Securityholder agrees to promptly notify the Company of any inaccuracies or changes in the information provided herein that may occur subsequent to
the date hereof at any time while the Shelf Registration Statement remains effective. All notices hereunder and pursuant to the Registration Rights Agreement shall be made in writing at the address set forth below. 
  
 By signing below, the undersigned consents to the disclosure of the
information contained herein it its answers to Items I through VIII above and the inclusion of such 

  

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information in the Shelf Registration Statement and the related Prospectus. The undersigned understands that such information will be relied upon by the
Company in connection with the preparation or amendment of the Shelf Registration Statement and the related Prospectus. 
  
 Once this Notice and Questionnaire is executed by the Selling Securityholders and received by the Company, the terms of this Notice and Questionnaire and
the representations and warranties contained herein shall be binding on, shall inure to the benefit of and shall be enforceable by the respective successors, heirs, personal representatives and assigns of the Company and the Selling Securityholder
with respect to the Transfer Restricted Securities beneficially owned by such Selling Securityholder and listed in Item III above. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York without
regard to the conflicts-of-laws provisions thereof. 
  

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 IN WITNESS WHEREOF, the undersigned, by authority duly given, has caused this Notice and Questionnaire to
be executed and delivered either in person or by its authorized agent. 
  
 Dated:

  

			
	BENEFICIAL OWNER
		
	By:	 	 
	 	 	

	 	 	 Name:
 Title:

  
 Please return
the completed and executed Notice and Questionnaire for receipt PRIOR TO OR ON THE 20TH CALENDAR DAY FROM RECEIPT HEREOF to: 
  
 CuraGen Corporation at: 
 555 Long Wharf
Drive, 11th Floor 
 New Haven, Connecticut 06511 
 Attention: Chief Financial Officer 
  
 with a copy to: 
  
 Mintz, Levin, Cohn, Ferris, Glovsky
and Popeo P.C. 
 One Financial Center 
 Boston, Massachusetts 02111 
 Attention: Michael L. Fantozzi, Esq. 
  

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 APPENDIX A 
  

Exhibit 1 To 
  
 Notice To Transfer Pursuant 
  
 To Registration Statement 
  
 CuraGen
Corporation 
 555 Long Wharf Drive, 11th Floor 
 New Haven,
Connecticut 06511 

	Re:	CuraGen Corporation’s 

	    	4.0% Convertible Subordinated Notes due 2011 (the “Notes”) 

  
 Ladies and Gentlemen: 
  
 Please be advised that                      has
transferred $             aggregate principal amount of the above-referenced Notes or             shares of the Company’s
common stock issued on conversion or repurchase of Notes, pursuant to the Registration Statement on Form S-3 (File No. 333-             ) filed by the Company. 
  
 We hereby certify that the prospectus delivery requirements, if any, of the
Securities Act of 1933, as amended, have been satisfied with respect to the transfer described above and that the above named beneficial owner of the Notes or common stock is named as a selling securityholder in the Prospectus dated
                            , or in amendments or supplements thereto, and that the aggregate principal
amount of the Notes or number of shares of common stock transferred are [all or a portion of] the Notes or common stock listed in such Prospectus, as amended or supplemented, opposite such owner’s name. 
  

			
	 Very truly yours,
 [name]

		
	By:	 	 
	 	 	

	 	 	(Authorized Signature)

  
 Dated: 
  

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