Document:

Common Stock Purchase Agreement

 Exhibit 10.3 
  
 COMMON STOCK PURCHASE AGREEMENT 
  
 CORAUTUS GENETICS INC. 
  
 AND 
  
 PURCHASERS 
  
 JUNE 24, 2005 

 COMMON STOCK PURCHASE AGREEMENT 
  
 THIS COMMON STOCK PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of the 24th day of June, 2005 by and among Corautus Genetics Inc., a Delaware corporation (the “Company”), and the
persons or entities that execute a signature page hereof (each a “Purchaser” and collectively the “Purchasers”). 
  
 IN CONSIDERATION OF the premises and the mutual representations and warranties, agreements and covenants hereinafter set forth and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Purchasers agree as follows: 
  
 ARTICLE 1 
  
 Definitions 
  
 1.1 Certain Defined Terms. For purposes of this Agreement, the following capitalized terms shall have the following respective meanings: 
  
 (a) “Claims and Losses” means, with respect to any Person, any and all claims, actions, suits, judgments, settlements, liabilities,
losses, damages, awards, interest, penalties, costs and expenses (including, without limitation, reasonable attorneys’ fees) actually suffered or incurred by such Person. 
  
 (b) “Common Stock” means the common stock, par value $0.001 per share, of the Company. 
  
 (c) “Company Disclosure Schedule” means the disclosure
schedule of the Company attached hereto as Exhibit B. 
  
 (d) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 (e) “Material Adverse Effect” means, with respect to any Person, any circumstance, change or effect that: (i) is or is reasonably likely
to be materially adverse to the business, assets, operations, results of operations, prospects, liabilities (including, without limitation, contingent liabilities) or the financial condition of such Person and its Subsidiaries, taken as a whole, or
(ii) is or is reasonably likely to be materially adverse to the ability of such Person to consummate the transactions contemplated by this Agreement. 
  
 (f) “Person” means any individual, partnership, firm, corporation, limited liability company, association, trust, unincorporated
organization or other entity, as well as any syndicate or group that would be deemed a person under Section 13(d)(3) of the Exchange Act. 
  
 (g) “Preferred Stock” means the preferred stock, par value $0.001 per share, of the Company. 
  

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 (h) “Prospectus” means a prospectus, including any amendment or supplement thereto,
included in the Registration Statement at the time of its effectiveness. 
  
 (i) “Registration Statement” means a registration statement on Form S-3 or another appropriate form filed by the Company with the SEC covering the resale, from time to time, of the Shares by the
Purchasers. 
  
 (j) “SEC” means the Securities
and Exchange Commission. 
  
 (k) “SEC Reports”
means (i) the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2004, (ii) the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2005, (iii) all proxy statements relating to the
Company’s meetings of stockholders (whether annual or special) held since January 1, 2005, and (iv) all other forms, reports and other registration statements (other than the Quarterly Report on Form 10-Q not referred to in clause (ii) above)
filed by the Company with the SEC since January 1, 2005. 
  
 (l)
“Securities Act” means the Securities Act of 1933, as amended. 
  
 (m) “Shares” means shares of common stock of the Company. 
  
 (n) “Strategic Event” means any merger, consolidation or other business combination, sale of shares of capital stock, sale of assets,
tender offer, exchange offer or similar transactions or series of transactions involving the Company or material development in the Company’s product approval that has not been publicly announced. 
  
 (o) “Subsidiary” means, with respect to any Person, any
corporation, partnership, joint venture, limited liability company or other entity, whether incorporated or unincorporated, of which such Person or any other Subsidiary of such Person (i) owns, directly or indirectly, fifty percent (50%) or more of
the outstanding voting securities or equity interests, (ii) is entitled to elect at least a majority of the board of directors or similar governing body, or (iii) is a general partner, excluding such partnerships where such Person or any Subsidiary
of such Person do not have a majority of the voting interests in such partnership. 
  
 (p) “Trading Day” means (a) any day on which the Common Stock is listed or quoted and traded on its primary Trading Market, (b) if the Common Stock is not then listed or quoted on its Trading Market,
then a day on which trading occurs on the New York Stock Exchange (or any successor thereto), or (c) if trading ceases to occur on the New York Stock Exchange (or any successor thereto), any business day. 
  
 (q) “Trading Market” means the NASDAQ SmallCap Market.

  
 1.2 Additional Definitions. The following capitalized
terms have the meanings set forth in the Sections of this Agreement set forth below: 
  

			
	 Definition

	  	Location

	 “Agreement”
	  	Preamble
	 “Closing”
	  	3.1
	 “Closing Date”
	  	3.1
	 “Company”
	  	Preamble
	 “Company Indemnified Party”
	  	7.3
	 “Notice”
	  	8.1
	 “Per Share Price”
	  	2.2
	 “Purchase Price”
	  	2.3
	 “Purchaser” or “Purchasers”
	  	Preamble
	 “Purchaser Indemnified Party”
	  	7.2
	 “VGI”
	  	4.1

  

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 ARTICLE 2 
  

Purchase and Sale of Common Stock 
  
 2.1 Purchase and Sale of Shares. Subject to the terms and conditions of this Agreement, the Company will issue and sell to each Purchaser, and each
Purchaser will purchase from the Company, the number of Shares set forth opposite such Purchaser’s name on that Purchaser’s signature page hereof, as accepted by the Company. The maximum number of Shares issuable hereunder to all
Purchasers is 2,105,264. Therefore, the Company reserves the right to accept a lesser number of Shares than as set forth opposite the Purchaser’s name on that Purchaser’s signature page and the Purchaser shall purchase such lesser number
of Shares. The obligations of the Purchasers hereunder are several and not joint. 
  
 2.2 Purchase Price. The purchase price payable by each Purchaser for the Shares to be purchased hereunder (the “Purchase Price”) shall be equal to the number of Shares to be purchased by such
Purchaser multiplied by $3.80 (the “Per Share Purchase Price”), as set forth opposite such Purchaser’s Name on that Purchaser’s signature page hereof and as accepted by the Company. 
  
 ARTICLE 3 
  
 Closing and Deliverables 
  
 3.1 The Closing. Subject to the terms and conditions of this Agreement, the closing of the purchase and sale of the Shares pursuant to Section 2.1
hereof (the “Closing”) will take place at the offices of McKenna Long & Aldridge LLP, 303 Peachtree Street, Suite 5300, Atlanta, Georgia 30308, on or before the fifteenth (15th) Trading Day following the obtainment of the condition set forth in Section 3.2(a)(ii) below, with the exact date to be set by the Company and notice thereof
provided to the Purchasers; provided, however, the Company may schedule an alternative closing with respect to a particular Purchaser on such other date as the Company and such Purchaser may mutually agree but in any event not later
than July 15, 2005. The date of the Closing is referred to herein as the “Closing Date.” 
  

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 3.2 Deliverables and Conditions to Closing. 
  
 (a) Conditions to the Company’s Obligations. The Company’s
obligations to complete the purchase and sale of the Shares and to deliver the stock certificate(s) therefor to each Purchaser is subject to (i) receipt by the Company of immediately available funds in the full amount of the Purchase Price for the
Shares being purchased hereunder as set forth opposite such Purchaser’s name on that Purchaser’s signature page hereof, and (ii) approval from the Trading Market to list the Shares on the Trading Market. 
  
 (b) Conditions to the Purchaser’s Obligations. Each
Purchaser’s obligation to complete the purchase and sale of the Shares is subject to delivery by the Company to such Purchaser of (i) a certificate, dated as of the Closing Date, executed by a duly authorized officer of the Company, to the
effect that the representations and warranties of the Company set forth in Article 4 below are accurate in all material respects as of the Closing Date and to the effect that the Company has fulfilled in all material respects those undertakings of
the Company to be fulfilled on or prior to the Closing, (ii) instructions in the form of Exhibit A attached hereto to the Company’s transfer agent to deliver to such Purchaser one or more stock certificates issued in the name of such
Purchaser, or in such nominee name(s) as designated by such Purchaser in writing, representing the number of Shares set forth opposite such Purchaser’s name on that Purchaser’s signature page hereof and (iii) approval from the Trading
Market to list the Shares on the Trading Market. 
  
 ARTICLE 4

  
 Representations, Warranties and Covenants of the Company

  
 Except as set forth in the Company’s SEC Reports or
on the corresponding sections of the Company Disclosure Schedule, or as specifically contemplated by this Agreement, the Company hereby represents and warrants to, and covenants with, each Purchaser as of the Closing Date as follows: 
  
 4.1 Organization and Qualification; Subsidiaries. The Company is a
corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has all necessary corporate power and authority to own, operate or lease the properties and assets now owned, operated or leased by it and
to carry on its business as it is currently conducted. The Company is duly licensed or qualified to do business and is in good standing in each jurisdiction in which the properties owned or leased by it or the operation of its business makes such
licensing or qualification necessary, except where the failure to be so licensed or qualified would not have a Material Adverse Effect. Other than Urogen Acquisition Corporation and Vascular Genetics Inc. (“VGI”), the Company does
not own, of record or beneficially, any direct or indirect equity or other interest in any Subsidiary. 
  
 4.2 Authority, Enforcement and Validity. The Company has all necessary corporate power and authority to enter into this Agreement, to carry out its
obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery by the Company of this Agreement, the performance by the Company of its obligations hereunder and the consummation by the Company of the
transactions contemplated hereby have been duly authorized by all requisite action on the part of the Company. This Agreement has been duly executed and delivered by the Company, and (assuming due execution and delivery hereof by 
  

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 each other party hereto) this Agreement constitutes, or upon its execution shall constitute, the legal, valid and binding
obligation of the Company enforceable against the Company in accordance with its terms, subject to (i) the effect of any applicable bankruptcy, insolvency, reorganization, moratorium and other similar laws relating to or affecting creditors’
rights and remedies generally, and (ii) the effect of general equitable principles, regardless of whether asserted in a proceeding in equity or at law. 
  

4.3 Capitalization. The authorized capital stock of the Company consists of 100,000,000 shares of Common Stock and 5,000,000 shares of Preferred
Stock (of which Preferred Stock there are designated 40,000 shares of Series A Preferred Stock, 13,000 shares of Series B Preferred Stock, 17,000 shares of Series C Preferred Stock and 1,400,000 shares of Series D Preferred Stock). As of May 30,
2005, (a) 14,856,750 shares of Common Stock are issued and outstanding, (b) 3,692,415 shares of Common Stock are reserved for issuance pursuant to options granted pursuant to the Company’s 1995 Stock Plan, 1995 Directors Option Plan, 1999 Stock
Plan, and 2002 Stock Plan, (c) 1,266,910 shares of Common Stock are reserved for issuance upon the exercise of outstanding warrants, (d) 2,000 shares of Series C Preferred Stock are issued and outstanding, (e) 1,385,377 shares of Series D Preferred
Stock are issued and outstanding, (f) 1,302,039 shares of Common Stock are reserved for the Convertible Notes Payable from Boston Scientific Corporation, (h) 142,857 shares of Common Stock are reserved for issuance under the Company’s Employee
Stock Purchase Plan, and (i) 34,624 shares of Common Stock are reserved for issuance to Pacific Management Services, Inc. pursuant to a settlement agreement relating to a facility formerly leased by the Company. Except as set forth in this Section
4.3, in the Company’s SEC Reports or in the Company Disclosure Schedule, there are no outstanding options, warrants, subscriptions, calls, convertible securities or other rights, agreements, arrangements or commitments relating to the capital
stock of the Company or obligating the Company to issue or sell any shares of capital stock of, or any other equity interest in, the Company, excluding occasional grants of options to members of the Company’s Board of Directors for attendance
at meetings pursuant to established policies. 
  
 4.4 Issuance
of Shares. The Shares to be issued and sold pursuant to this Agreement have been duly and validly authorized by the Company, and, at the Closing, the Shares will have been duly and validly issued, fully paid and non-assessable, and the issuance
of the Shares shall not be subject to preemptive or other similar rights, except for such rights that have been waived. 
  
 4.5 No Conflict. The execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the transactions
contemplated hereby does not (a) violate, conflict with or result in the breach of any provision of its certificate of incorporation or by-laws, (b) conflict with or violate any law, rule, regulation, order, judgment or decree applicable to the
Company or any of its Subsidiaries, or (c) conflict with, result in any breach of, constitute a default under, require any consent under, or give to others any rights of termination, amendment, acceleration, suspension, revocation or cancellation of
any material agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party, except for any such conflicts, violations, breaches, defaults or other occurrences that have not had, and would not be reasonably expected to
have, individually or in the aggregate, a Material Adverse Effect. 
  

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 4.6 Governmental Consents and Approvals. The execution, delivery and performance of this Agreement
by the Company does not require any consent, approval, authorization or other order of, action by, filing with or notification to, any governmental authority other than (a) any approval of, filing with or notification to the Trading Market,
including the approval of the listing of the Shares on such exchange, and (b) such registrations, filings and authorizations as may be required under applicable federal and state securities laws, including, without limitation, the Registration
Statement and a declaration as to the effectiveness of such Registration Statement. 
  
 4.7 SEC Reports. The Company has filed all forms, reports and documents required to be filed by it with the SEC pursuant to the reporting requirements of the Exchange Act during the twelve (12) months preceding
the date of this Agreement. As of their respective filings dates, the Company’s SEC Reports (a) were prepared in accordance with either the requirements of the Securities Act or the Exchange Act, as the case may be, and the rules and
regulations of the SEC promulgated thereunder, and (b) did not, at the time they were filed, or, if amended, as of the date of such amendment, contain any untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. 
  
 4.8 Financial Statements. Each of the consolidated financial statements (including, in each case, any notes thereto) contained in the
Company’s SEC Reports was prepared in accordance with United States generally accepted accounting principles applied on a consistent basis throughout the periods indicated (except as may be indicated in the notes thereto or, in the case of
unaudited statements, as permitted by Form 10-Q of the SEC), and each fairly presents, in all material respects, the consolidated financial position, results of operations and cash flows of the Company and its consolidated Subsidiaries at the
respective dates thereof and for the respective periods indicated therein (subject, in the case of unaudited statements, to normal and recurring year-end adjustments which would not have had, and would not have, a Material Adverse Effect).

  
 4.9 Absence of Certain Changes. Except as set forth in
the Company’s SEC Reports or in Section 4.9 of the Company Disclosure Schedule, since the date of the balance sheet in the Company’s most recently filed SEC Report, the business of the Company has been conducted in the ordinary course, in
a manner consistent with past practices and there has been no Material Adverse Effect. 
  
 4.10 Litigation. Except as set forth in the Company’s SEC Reports or in Section 4.10 of the Company Disclosure Schedule, there is no action, suit, proceeding, inquiry or investigation before any court,
public board, government agency, self-regulatory agency or other body pending or, to the knowledge of the Company, threatened by or against the Company or either of its two Subsidiaries which has resulted or would reasonably be expected to have a
Material Adverse Effect. 
  
 4.11 Disclosure. Except as set
forth in Section 4.11 of the Company Disclosure Schedule, the Company confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel with any information that constitutes or might
constitute material, non-public information. 
  

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 4.12 Use of Proceeds. The Company intends to use the net proceeds from the sale of the Shares
hereunder for the clinical trials being conducted and to be conducted by the Company. 
  
 4.13 Internal Accounting Controls. The Company maintains a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with
management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset accountability, (iii)
access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken
with respect to any differences, except where such noncompliance could not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect. 
  
 4.14 Sarbanes-Oxley Act. The Company is in compliance with applicable requirements of the Sarbanes-Oxley Act of 2002
and applicable rules and regulations promulgated by the SEC thereunder in effect as of the date of this Agreement, except where such noncompliance could not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.

  
 4.15 Subsequent Placements. From the date hereof until
the effective date of the Registration Statement, the Company will not, directly or indirectly, offer, sell, grant any option to purchase (other than to Boston Scientific Corporation and the Company’s officers, directors, and employees), or
otherwise dispose of (or announce any offer, sale, grant or any option to purchase, or otherwise dispose of) any of its equity or equity equivalent securities, including without limitation any debt, preferred stock or other instrument or security
that is, at any time during its life and under any circumstances, convertible into or exchangeable or exercisable for Common Stock. 
  
 4.16 Private Placement. Neither the Company nor any Person acting on the Company’s behalf has sold or offered to sell or solicited any offer
to buy the Shares by means of any form of general solicitation or advertising. Neither the Company nor any of its affiliates nor any Person acting on the Company’s behalf has, directly or indirectly, at any time within the past six months, made
any offer or sale of any security or solicitation of any offer to buy any security under circumstances that would eliminate the availability of the exemption from registration under Regulation D under the Securities Act in connection with the offer
and sale of the Shares as contemplated hereby. The Company is not, and is not an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. The Company is not a United States real property
holding corporation within the meaning of the Foreign Investment in Real Property Tax Act of 1980. 
  

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 ARTICLE 5 
  

Representations, Warranties and Covenants of Each Purchaser 
  
 Except as specifically contemplated by this Agreement, each Purchaser, severally and not jointly, hereby represents and
warrants to, and covenants with, the Company as of the Closing Date as follows: 
  
 5.1 Organization. If the Purchaser is an entity, then such entity is duly organized, validly existing and in good standing under the laws of its state of organization and has all necessary power and authority
to own, operate or lease the properties and assets now owned, operated or leased by it and to carry on its business as it is currently conducted. 
  
 5.2 Authority, Enforcement and Validity. Such Purchaser has all necessary power and authority to enter into this Agreement, to carry out its
obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery by such Purchaser of this Agreement, the performance by such Purchaser of its obligations hereunder and the consummation by such Purchaser of
the transactions contemplated hereby have been duly authorized by all requisite action on the part of such Purchaser. This Agreement has been duly executed and delivered by such Purchaser, and (assuming due execution and delivery hereof by the
Company) this Agreement constitutes, or upon its execution shall constitute, the legal, valid and binding obligation of such Purchaser enforceable against such Purchaser in accordance with its terms, subject to (i) the effect of any applicable
bankruptcy, insolvency, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights and remedies generally, and (ii) the effect of general equitable principles, regardless of whether asserted in a proceeding in
equity or at law. 
  
 5.3 Accredited Investor and Investment
Experience. Such Purchaser is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the Securities Act. In addition, such Purchaser is knowledgeable, sophisticated and experienced in making, and is
qualified to make, decisions with respect to investments in securities representing an investment decision like that involved in the purchase of the Shares. 
  
 5.4 Investment Intent. Such Purchaser is acquiring the Shares for its own account solely for the purpose of investment and not as a nominee or
agent and not with a view to, or for offer or sale in connection with, any distribution thereof. Such Purchaser shall not, directly or indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers to buy, purchase or
otherwise acquire or take a pledge of) any of the Shares except in accordance with the provisions of Article 6 of this Agreement. 
  
 5.5 Information and Risk. 
  
 (a) Such Purchaser has requested, received, reviewed and considered all information such Purchaser deems relevant in making an informed decision to
purchase the Shares. Such Purchaser has had an opportunity to discuss the Company’s business, management and financial affairs with its management and also had an opportunity to ask questions of officers of the Company that were answered to
such Purchaser’s satisfaction, provided that such inquiries do not impair the rights of such Purchaser to rely on the representations and warranties of the Company as set forth in Article 4. 
  

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 (b) Such Purchaser recognizes that an investment in the Shares involves a high degree of risk, including
a risk of total loss of such Purchaser’s investment. Such Purchaser is able to bear the economic risk of holding the Shares for an indefinite period or complete loss of the investment, and has knowledge and experience in the financial and
business matters such that it is capable of evaluating the risks of the investment in the Shares. 
  
 (c) Such Purchaser has, in connection with such Purchaser’s decision to purchase the Shares, not relied upon any representations or other information
(whether oral or written) other than as set forth in the representations and warranties of the Company contained herein and the SEC Reports, and such Purchaser has, with respect to all matters relating to this Agreement and the offer and sale of the
Shares, relied solely upon the advice of such Purchaser’s own counsel and has not relied upon or consulted any counsel to the Company. 
  
 5.6 Disclosures to the Company. Such Purchaser understands that the Company is relying on the statements contained herein to establish an exemption
from registration under applicable federal and state securities laws. Such Purchaser will promptly notify the Company of any changes in the information set forth in the Registration Statement or Prospectus regarding such Purchaser. For purposes of
the requirements of state securities laws, such Purchaser represents that it is solely a resident of the state set forth opposite such Purchaser’s name on that Purchaser’s signature page hereof and that the offer and purchase of the Shares
pursuant hereto has and will occur solely in such state. 
  
 5.7
Legends. 
  
 (a) Such Purchaser understands that, until
such time as the Shares may be sold under an effective registration statement under the Securities Act, or an exemption under the Securities Act and applicable state securities laws, the Shares will bear a restrictive legend in substantially the
following form (and a stop-transfer order may be placed against transfer of the certificates for such securities): 
  
 “The securities represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Securities
Act”), or under the securities laws of any other jurisdiction. These securities have been acquired for investment and not with a view to, or in connection with, the distribution thereof. The securities may not be offered, sold, pledged,
transferred or assigned in the absence of an effective registration statement for the securities under the Securities Act and applicable state securities laws, unless sold pursuant to an exemption under the Securities Act and applicable state
securities laws.” 
  
 (b) Such certificates shall not be
required to contain such legend (i) following any sale of such Shares pursuant to Rule 144, or (ii) if such Shares are eligible for sale under Rule 144(k). 
  

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 5.8 Nature of Purchaser. Such Purchaser: (a) is not an affiliate (as such term is defined pursuant
to Rule 12b-2 promulgated under the Exchange Act) of any other Purchaser; (b) is not constituted as a partnership, association, joint venture or any other type of joint entity with any other Purchaser; and (c) is in no way acting as a group (as such
term is defined under Section 13(d) of the Exchange Act) with any other Purchaser. If at any time after the Closing Date such Purchaser becomes an affiliate (as defined herein) of any other Purchaser, such Purchaser will provide prompt written
notice to the Company. 
  
 5.9 Disclosure. Except as set
forth in Section 4.11 of the Company’s Disclosure Schedules, each Purchaser confirms that neither it nor any other Person acting on its behalf has received any information that constitutes or might constitute material, non-public information.

  
 5.10 Brokers and Finders. No broker, investment banker,
financial advisor or other Person is entitled to any broker’s, finder’s, financial advisor’s or other similar fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on
behalf of any Purchaser. 
  
 ARTICLE 6 
  
 Registration of the Shares; Compliance with the Securities Act

  
 6.1 Registration Procedures and Expenses.

  
 (a) Except for such times as the Company may be required to
suspend the use of a prospectus forming a part of the Registration Statement, the Company will: 
  
 (1) as soon as practicable, but in no event later than sixty (60) days following the Closing Date, use commercially reasonable efforts to prepare and
file with the SEC a Registration Statement; 
  
 (2) use
commercially reasonable efforts to cause the Registration Statement to become effective under the Securities Act as soon as practicable, but in no event later than one hundred twenty (120) days after the Closing Date; 
  
 (3) prepare and file with the SEC such amendments and supplements to the
Registration Statement and the prospectus used in connection therewith as may be necessary to keep the Registration Statement continuously effective until the earliest of (i) when all Shares can be sold pursuant to Rule 144(k) under the Securities
Act, or (ii) such time as all Shares purchased by the Purchasers have been sold; 
  
 (4) so long as the Registration Statement is effective covering the resale of Shares owned by the Purchasers, furnish to the Purchasers with respect to the Shares registered under the Registration Statement (and to
each underwriter, if any, of such Shares) such reasonable number of copies of prospectuses and such other documents as the Purchaser may reasonably request, in order to facilitate the public sale or other disposition of all or any of the Shares by
the Purchasers; provided, however, that the obligation of the Company to deliver copies of prospectuses to the Purchasers shall be subject to the receipt by the Company of reasonable assurances from the Purchasers that the Purchasers
will comply with the applicable provisions of the Securities Act and of such other securities laws as may be applicable in connection with any use of such prospectuses; 
  

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 (5) use commercially reasonable efforts to file documents required of the Company for normal Blue Sky
clearance in states specified in writing by the Purchasers; provided, however, that the Company shall not be required to qualify to do business or consent to service of process in any jurisdiction in which the Company is not now so
qualified or has not so consented; and 
  
 (6) bear all expenses
in connection with the procedures in paragraphs (a) through (c) of this Section 6.1 and the registration of the Shares pursuant to the Registration Statement, other than fees and expenses, if any, of counsel or other advisers to the Purchasers or
underwriting discounts, brokerage fees and commissions incurred by the Purchasers, if any. 
  
 (b) In the event the Registration Statement is not declared effective by the SEC on or before the one hundred twentieth (120th) day after the Closing Date for a Purchaser, the Company shall pay to such Purchaser liquidated damages in a cash amount equal to one thirtieth of one percent (1/30 of 1%) of the Purchase Price paid
by such Purchaser for each day after such one hundred twentieth (120th) day that the Registration Statement is not
declared effective; provided, however, that such fees in the aggregate shall in no event exceed eight percent (8%) of the Purchase Price. Further, notwithstanding the foregoing, in no event shall liquidated damages be due hereunder if the
Registration Statement is not declared effective due to a pending confidential treatment request submitted to the SEC by the Company. In such an instance, the Company shall have ten (10) Trading Days following the disposition of the confidential
treatment request to have the Registration Statement declared effective without the accrual of liquidated damages. 
  
 (c) Notwithstanding any provision in this Agreement to the contrary, following the 30th Trading Day following the effective date of the Registration
Statement, the Company’s obligations hereunder to keep a registration statement continuously in effect under the Securities Act shall be suspended (a “Suspension Period”) if, in the good faith judgment of the Company’s Board of
Directors, it is advisable to suspend the use of the Prospectus included therein for a discrete period of time due to pending material corporate developments or similar material events that have not yet been publicly disclosed and as to which the
Company believes that public disclosure would be prejudicial to the Company or its stockholders; provided, that the Registration Statement shall be suspended for a total of no more than two times or for a period of more than twenty (20) days in any
twelve (12) month period. Immediately after the end of any Suspension Period under this Section 6.1(c), the Company shall take all actions that may be reasonably necessary (including filing any required supplemental prospectus) to restore the
effectiveness of the applicable Registration Statement and the ability of the Purchasers to publicly resell their securities pursuant to such effective Registration Statement. 
  
 (d) Each Purchaser will promptly notify the Company of any changes in the information set forth in the Registration
Statement or Prospectus regarding the Purchaser or its plan of distribution, attached hereto as Exhibit C. 
  

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 6.2 Restrictions on Transferability. 
  
 (a) Each Purchaser agrees that it will not effect any disposition of the
Shares that would constitute a sale within the meaning of the Securities Act or pursuant to any applicable state securities or Blue Sky laws, except as contemplated in the Registration Statement referred to in Section 6.1, or pursuant to Rule 144 of
the Securities Act or pursuant to a written opinion of legal counsel reasonably satisfactory to the Company and addressed to the Company to the effect that registration is not required in connection with the proposed transfer; whereupon the holder
of such securities shall be entitled to transfer such securities in accordance with the terms of the notice delivered by the holder to the Company. Each certificate evidencing the securities transferred as above provided shall bear the appropriate
restrictive legends set forth in Section 5.7. 
  
 (b) Each
Purchaser hereby covenants that such Purchaser will not sell any Shares pursuant to said prospectus during the Suspension Period set forth under Section 6.1(c). 
  

(c) None of the Shares shall be transferable except upon the conditions specified in this Article 6, which are intended to ensure compliance with the
provisions of the Securities Act. Each Purchaser will cause any proposed transferee of the Shares held by such Purchaser to agree to take and hold such Shares subject to the provisions and upon the conditions specified in this Article 6 if and to
the extent that such Shares continue to be restricted securities in the hands of the transferee. 
  
 6.3 Termination of Conditions and Obligations. The conditions precedent imposed by Section 6.2 above regarding the transferability of the Shares
shall cease and terminate as to any particular number of the Shares upon the date on which the Purchaser may sell without volume limitations all such Shares then held by the Purchaser without registration by reason of Rule 144 or any other rule of
similar effect. 
  
 ARTICLE 7 
  
 Indemnification 
  
 7.1 Survival of Representations and Warranties. The representations,
warranties, covenants, agreements and indemnities of the Company and each Purchaser contained in this Agreement shall survive the Closing Date and remain in full force and effect until the first anniversary of the Closing Date. 
  
 7.2 Indemnification by the Company. The Company shall indemnify,
defend and hold harmless each Purchaser, the officers, directors, partners, members and each Person, if any, who controls any Purchaser within the meaning of Section 15 of the Securities Act (each, a “Purchaser Indemnified Party”)
from and against any and all Claims and Losses actually suffered or incurred by such Purchaser Indemnified Parties arising out of or resulting from (a) any untrue statement or alleged untrue statement of a material fact contained in the Registration
Statement or Prospectus, or in any amendments or supplements thereto, or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in
which they were made, not misleading, or (b) 
  

 12 

 the breach by the Company of any of its representations or warranties in this Agreement; provided, however,
the foregoing indemnities shall not apply to any Claims and Losses arising out of or resulting from (x) any such untrue statement or omission or alleged untrue statement or omission based upon information furnished to the Company by any Purchaser
Indemnified Party, or (y) the breach by any Purchaser of any if its representations or warranties or the failure of any Purchaser to comply with any of the covenants and agreements in this Agreement, or (z) any statement or omission in any
Prospectus that is corrected in any subsequent Prospectus that was delivered to a Purchaser prior to the pertinent sale or sales by the Purchaser. 
  
 7.3 Indemnification by each Purchaser. Each Purchaser shall severally indemnify, defend and hold harmless the Company, its directors and officers,
and each Person, if any, who controls the Company within the meaning of Section 15 of the Securities Act (each, a “Company Indemnified Party”) from and against any and all Claims and Losses actually suffered or incurred by such
Company Indemnified Parties arising out of or resulting from (a) any untrue statement of a material fact contained in the Registration Statement or Prospectus, or in any amendments or supplements thereto, or any omission to state therein a material
fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading based upon information furnished to the Company by such Purchaser, (b) the breach by such Purchaser
of any if its representations or warranties in this Agreement, or (c) the failure of such Purchaser to comply with any of the covenants and agreements in Section 6.1(d) or 6.2 of this Agreement; provided, however, the foregoing
indemnities shall not apply to any Claims and Losses arising out of or resulting from the breach by the Company of any if its representations or warranties or the failure of the Company to comply with any of the covenants and agreements in this
Agreement. 
  
 7.4 Limitations for Indemnification. In no
event shall the Company be required to indemnify any Purchaser, and its Purchaser Indemnified Parties, hereunder in excess of an amount equal to the aggregate Purchase Price paid by such Purchaser to the Company on the Closing Date. In no event
shall any Purchaser be required to indemnify the Company, and its Company Indemnified Parties, hereunder in excess of an amount equal to the aggregate Purchase Price paid by such Purchaser to the Company on the Closing Date. 
  
 7.5 Procedures for Indemnification. An indemnified party hereunder
shall notify the indemnifying party, in writing, of any claim for indemnification, specifying in reasonable detail the nature of the Claims and Losses and, if known, the amount or an estimate of the amount of the Claims and Losses. In the event of a
claim by any third party, or if there is any claim against a third party available by virtue of the circumstances of the Claims and Losses, the indemnifying party may assume the defense or the prosecution thereof by prompt written notice to
indemnified party including the employment of counsel or accountants, at its cost and expense; provided, however, if the defendants in any such action include both the indemnifying party and the indemnified party and such parties shall have
reasonable concluded that there may be a conflict between the positions of such parties in conducting the defense of any such action, the indemnified party shall have the right to select separate legal counsel to assume such defense and otherwise
participate in such action at the indemnifying party’s expense. The indemnified party shall have the right to employ counsel separate from counsel employed by the indemnifying party in any such action and to participate therein, but the fees
and expenses of such counsel employed by the indemnified party shall be at its expense. The indemnifying party shall not be 
  

 13 

 liable for any settlement of any such Claims and Losses effected without its prior written consent, which shall not be
unreasonably withheld; provided that if the indemnifying party does not assume the defense or prosecution of a third-party claim as provided above within thirty (30) days after notice thereof from the indemnified party, the indemnified party may
settle such claim without the indemnifying party’s consent. The indemnifying party shall not agree to a settlement of any Claims and Losses which provides for any relief other than the payment of monetary damages or which could have a material
precedential impact or effect on the business or financial condition of the indemnified party without the indemnified party’s prior written consent. Whether or not the indemnifying party chooses to so defend or prosecute such claim, both
parties shall cooperate in the defense or prosecution thereof and shall furnish such records, information and testimony, and attend such conferences, discovery proceedings, hearings, trials and appeals, as may be reasonably requested in connection
therewith. 
  
 ARTICLE 8 
  
 Notices 
  
 8.1 Notices Generally. Any notice, request, demand, instruction or other document to be given hereunder (a
“Notice”) by any party hereto to another party hereto shall be in writing and sent by facsimile or delivered personally or sent by registered or certified mail (including by overnight courier or express mail service), postage or
fees prepaid, and addressed as set forth in this Article 8 below. Any Notice sent by facsimile shall be deemed to have been duly given to the party to whom it is sent upon written confirmation of receipt, provided that a copy of such fax is
delivered personally or mailed to the recipient within one business day of the date of the fax, in the manner herein provided. Any Notice which is delivered personally in the manner provided herein shall be deemed to have been duly given to the
party to whom it is directed upon actual receipt by such party or the office of such party. Any Notice which is delivered by overnight courier in the manner provided herein shall be deemed to have been duly given to the party to whom it is directed
on the second business day after deposit with such overnight courier. Any Notice which is addressed and mailed in the manner herein provided shall be conclusively presumed to have been duly given to the party to which it is addressed at the close of
business, local time of the recipient, on the fourth business day after the day it is so placed in the mail or, if earlier, the time of actual receipt. 
  
 8.2 Notices to the Company. All Notices to the Company shall be addressed to the following addresses or at such other address or addresses as may
have been previously furnished to each Purchaser by Notice in accordance with this Article 8: 
  

					
	 	 	Corautus Genetics Inc.	 	 
	 	 	75 Fifth Street, NW, Suite 313	 	 
	 	 	Atlanta, GA 30308	 	 
	 	 	Attention: Chief Executive Officer	 	 

  

 14 

					
	 	 	 With a copy to:
  
	 	 
	 	 	McKenna Long & Aldridge LLP	 	 
	 	 	303 Peachtree Street, Suite 5300	 	 
	 	 	Atlanta, GA 30308	 	 
	 	 	Attention: Robert E. Tritt, Esq.	 	 

  
 8.3 Notices to each
Purchaser. All Notices to any Purchaser shall be addressed to the address for such Purchaser set forth on that Purchaser’s signature page hereof, or at such other address or addresses as may have been previously furnished to the Company by
Notice in accordance with this Article 8. 
  
 ARTICLE 9

  
 General Provisions 
  
 9.1 Governing Law and Venue. ALL QUESTIONS CONCERNING THE
CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. THE COMPANY AND PURCHASERS HEREBY IRREVOCABLY SUBMIT TO THE EXCLUSIVE
JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN FOR THE ADJUDICATION OF ANY DISPUTE BROUGHT BY THE COMPANY OR ANY PURCHASER HEREUNDER, IN CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED
HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY WAIVE, AND AGREE NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING BROUGHT BY THE COMPANY OR ANY PURCHASER, ANY CLAIM
THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, OR THAT SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT,
ACTION OR PROCEEDING BY MAILING A COPY THEREOF VIA REGISTERED OR CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE SHALL
CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW. THE COMPANY AND PURCHASERS HEREBY WAIVE ALL RIGHTS TO A
TRIAL BY JURY. 
  
 9.2 Fees and Expenses. Except as
expressly set forth in this Agreement to the contrary, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation,
preparation, execution, delivery and performance of this Agreement. The Company shall pay all transfer agent fees, stamp taxes and other taxes and duties levied in connection with the issuance of the Shares. 
  

 15 

 9.3 Entire Agreement. This Agreement (including the Exhibits, which are incorporated herein)
constitutes the entire agreement between the Company and the Purchasers and supersedes any prior understanding or agreement among them respecting the subject matter hereof. Except as specifically set forth herein, neither the Company nor the
Purchasers make any representation, warrant, covenant or undertaking with respect to such matters. 
  
 9.4 Amendment. This Agreement may not be amended or modified except by an instrument in writing signed by authorized representatives of the Company
and each Purchaser. 
  
 9.5 No Waiver. No waiver of any
provision hereof will be valid or binding on a party hereto unless such waiver is in writing and signed by or on behalf such party. The delay or failure of any party to enforce at any time for any period the provisions of or any rights deriving from
this Agreement shall not be construed to be a waiver of such provisions or rights or the right of such party thereafter to enforce such provisions. 
  
 9.6 Severability. In case any one or more of the provisions contained in this Agreement should be found by a court of competent jurisdiction to be
invalid, illegal or unenforceable in any respect against any party, such invalidity, illegality, or unenforceability shall only apply to such party in the specific jurisdiction where such judgment shall be made, and the validity, legality, and
enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby, except that this Agreement shall not be reformed in any way that will deny to any party the essential benefits of this Agreement,
unless such party waives in writing its rights to such benefits. 
  
 9.7 Successors and Assigns. The terms, conditions and obligations of this Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns. 
  
 9.8 Headings. Article, Section and other headings contained in this
Agreement are inserted for convenience only and shall not be construed to define, interpret, describe or limit the scope, extent or intent of this Agreement or any provision hereof 
  
 9.9 Counterparts and Facsimile. This Agreement may be executed and delivered (including by facsimile transmission) in
one or more counterparts, and by the different parties in separate counterparts, each of which when executed shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement. Delivery of an executed
counterpart of a signature page to this Agreement by facsimile shall be effective as delivery of a manually executed counterpart of this Agreement. 
  
 9.10 Replacement of Securities. If any certificate or instrument evidencing any securities is mutilated, lost, stolen or destroyed, the Company
shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of
such loss, theft or destruction and customary and reasonable indemnity and surety bond, if requested. The applicants for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs associated with the
issuance of such replacement securities. 
  

 16 

 9.11 Independent Nature of Purchasers’ Obligations and Rights. The obligations of each
Purchaser under this Agreement are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser under this Agreement. The decision
of each Purchaser to purchase Shares pursuant to this Agreement has been made by such Purchaser independently of any other Purchaser and independently of any information, materials, statements or opinions as to the business, affairs, operations,
assets, properties, liabilities, results of operations, condition (financial or otherwise) or prospects of the Company which may have been made or given by any other Purchaser or by any agent or employee of any other Purchaser, and no Purchaser or
any of its agents or employees shall have any liability to any other Purchaser (or any other person) relating to or arising from any such information, materials, statements or opinions. Nothing contained herein, and no action taken by any Purchaser
pursuant hereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to
such obligations or the transactions contemplated by this Agreement. Each Purchaser acknowledges that no other Purchaser has acted as agent for such Purchaser in connection with making its investment hereunder and that no other Purchaser will be
acting as agent of such Purchaser in connection with monitoring its investment hereunder. Each Purchaser shall be entitled to independently protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it
shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose. Each Purchaser represents that it has been represented by its own separate legal counsel in its review and negotiations of this
Agreement. 
  
 <Signatures on Following Pages> 
  

 17 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

			
	PURCHASER:
	
	 Print Name: Consult and Assist
  
 State of Residence:
                        
  
 Number of Shares of Common Stock Purchased
 (at $3.80 per Share):
263,158
  
 Aggregate Purchase Price: $1,000,000.00

	
	 SIGNATURE:

		
	 By:
	 	 /s/ George Lingenbrink

	 Name:
	 	George Lingenbrink
	 Title:
	 	President

  

			
	ACCEPTED AND AGREED AS TO 263,158 SHARES:
	
	 CORAUTUS GENETICS INC.

		
	 By:
	 	 /s/ Richard E. Otto

	 	 	 Richard E. Otto, Chief Executive Officer

  

 A-1 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

			
	 PURCHASER:
  
 Print Name: Richard Doan
  
 State of Residence: California
  
 Number of Shares
of Common Stock Purchased
 (at $3.80 per Share): 53,000
  
 Aggregate Purchase Price: $201,400.00

	
	SIGNATURE:
		
	By:	 	 /s/ Richard Doan

	Name:	 	Richard Doan
	Title:	 	Owner

  

			
	ACCEPTED AND AGREED AS TO 53,000 SHARES:
	
	CORAUTUS GENETICS INC.
		
	 By:
	 	 /s/ Richard E. Otto

	 	 	 Richard E. Otto, Chief Executive Officer

  

 2 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

			
	 PURCHASER:
  
 Print Name: Charles A. Dunn
  
 State of Residence: Washington
  
 Number of Shares
of Common Stock Purchased
 (at $3.80 per Share): 60,000
  
 Aggregate Purchase Price: $228,000.00

	
	SIGNATURE:
		
	By:	 	 /s/ Charles A. Dunn

	Name:	 	Charles A. Dunn
	Title:	 	 

  

			
	ACCEPTED AND AGREED AS TO 60,000 SHARES:
	
	CORAUTUS GENETICS INC.
		
	By:	 	 /s/ Richard E. Otto

	 	 	Richard E. Otto, Chief Executive Officer

  

 3 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

			
	 PURCHASER:
  
 Print Name: Dykmans Trust dtd 3/22/85
  
 State of Residence: California
  
 Number of Shares of Common Stock Purchased
 (at $3.80 per Share): 55,000
  
 Aggregate Purchase Price: $209,000.00

	
	SIGNATURE:
		
	By:	 	 /s/ Max Dykmans

	Name:	 	Max Dykmans
	Title:	 	Trustee

  

			
	ACCEPTED AND AGREED AS TO 55,000 SHARES:
	
	CORAUTUS GENETICS INC.
		
	By:	 	 /s/ Richard E. Otto

	 	 	Richard E. Otto, Chief Executive Officer

  

 4 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

			
	 PURCHASER:
  
 Print Name: Arthur E. Engel Trust of 1988
  
 State of Residence: California
  
 Number of Shares of Common Stock Purchased
 (at $3.80 per Share): 78,948
  
 Aggregate Purchase Price: $300,002.40
  

	SIGNATURE:
		
	By:	 	 /s/ Arthur E. Engel

	Name:	 	Arthur E. Engel
	Title:	 	Trustee

  
 ACCEPTED AND AGREED AS TO 78,948
SHARES: 
  
 CORAUTUS GENETICS INC. 
  

			
	By:	 	 /s/ Richard E. Otto

	 	 	Richard E. Otto, Chief Executive Officer

  
  

 5 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

			
	 PURCHASER:
  
 Print Name: Herbert Engel
  
 State of Residence: California
  
 Number of Shares
of Common Stock Purchased
 (at $3.80 per Share): 25,000
  
 Aggregate Purchase Price: $95,000.00
  

	SIGNATURE:
		
	By:	 	 /s/ Herbert Engel

	Name:	 	Herbert Engel
	Title:	 	  

  
 ACCEPTED AND AGREED AS TO 25,000
SHARES: 
  
 CORAUTUS GENETICS INC. 
  

			
	By:	 	 /s/ Richard E. Otto

	 	 	Richard E. Otto, Chief Executive Officer

  
  

 6 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

			
	PURCHASER:
	
	Print Name: Fine Particle Technology Corp.
	
	State of Residence: California
	
	 Number of Shares of Common Stock Purchased
 (at $3.80 per Share): 65,789

	
	Aggregate Purchase Price: $250,000.00
	
	SIGNATURE:
		
	By:	 	 /s/ Jose Luis Andreu

	Name:	 	Jose Luis Andreu
	Title:	 	President

  
 ACCEPTED AND AGREED AS TO 65,789
SHARES: 
  
 CORAUTUS GENETICS INC. 
  

			
	By:	 	 /s/ Richard E. Otto

	 	 	Richard E. Otto, Chief Executive Officer

  
  

 7 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

			
	PURCHASER:
	
	Print Name: John J. Gorman
	
	State of Residence: Texas
	
	 Number of Shares of Common Stock Purchased
 (at $3.80 per Share): 200,000

	
	Aggregate Purchase Price: $760,000.00
	
	SIGNATURE:
		
	By:	 	 /s/ John J. Gorman

	Name:	 	John J. Gorman
	Title:	 	  

  

			
	ACCEPTED AND AGREED AS TO 200,000 SHARES:
	
	CORAUTUS GENETICS INC.
		
	By:	 	 /s/ Richard E. Otto

	 	 	Richard E. Otto, Chief Executive Officer

  

 8 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

			
	PURCHASER:
	
	Print Name: Iroquois Master Fund Ltd.
	
	 State of Residence: New York
  

	 Number of Shares of Common Stock Purchased
 (at $3.80 per Share): 789,474

	
	Aggregate Purchase Price: $3,000,000.00
	
	SIGNATURE:
		
	By:	 	 /s/ Joshua Silverman

	Name:	 	Joshua Silverman
	Title:	 	Authorized Signatory

  

			
	ACCEPTED AND AGREED AS TO 789,474 SHARES:
	
	CORAUTUS GENETICS INC.
		
	By:	 	 /s/ Richard E. Otto

	 	 	Richard E. Otto, Chief Executive Officer

  

 9 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

			
	PURCHASER:
	
	Print Name: Lippman Living Trust
	
	State of Residence: California
	
	 Number of Shares of Common Stock Purchased
 (at $3.80 per Share): 25,000

	
	Aggregate Purchase Price: $95,000.00
	
	SIGNATURE:
		
	By:	 	 /s/ William D. Lippman

	Name:	 	William D. Lippman
	Title:	 	Trustee

  

			
	ACCEPTED AND AGREED AS TO 25,000 SHARES:
	
	CORAUTUS GENETICS INC.
		
	By:	 	 /s/ Richard E. Otto

	 	 	Richard E. Otto, Chief Executive Officer

  

 10 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

			
	PURCHASER:
	
	Print Name: Rancho Vista Del Mar
	
	State of Residence: California
	
	 Number of Shares of Common Stock Purchased
 (at $3.80 per Share): 65,790

	
	Aggregate Purchase Price: $250,002.00
	
	SIGNATURE:
		
	By:	 	 /s/ David Wick

	Name:	 	David Wick
	Title:	 	Agent

  

			
	ACCEPTED AND AGREED AS TO 65,790 SHARES:
	
	CORAUTUS GENETICS INC.
		
	By:	 	 /s/ Richard E. Otto

	 	 	Richard E. Otto, Chief Executive Officer

  

 11 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

			
	PURCHASER:
	
	Print Name: Veronica Santa Maria
	
	State of Residence: California
	
	 Number of Shares of Common Stock Purchased
 (at $3.80 per Share): 15,000

	
	Aggregate Purchase Price: $57,000.00
	
	SIGNATURE:
		
	By:	 	 /s/ Veronica Santa Maria

	Name:	 	Veronica Santa Maria
	Title:	 	  

  

			
	ACCEPTED AND AGREED AS TO 15,000 SHARES:
	
	CORAUTUS GENETICS INC.
		
	By:	 	 /s/ Richard E. Otto

	 	 	Richard E. Otto, Chief Executive Officer

  

 12 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

			
	PURCHASER:
	
	Print Name: Schottenfeld Qualified Associates, LP
	
	State of Residence: New York
	
	 Number of Shares of Common Stock Purchased
 (at $3.80 per Share): 200,000

	
	Aggregate Purchase Price: $760,000.00
	
	SIGNATURE:
		
	By:	 	 /s/ Richard Schottenfeld

	Name:	 	Richard Schottenfeld
	Title:	 	Managing Member

  

			
	ACCEPTED AND AGREED AS TO 200,000 SHARES:
	
	CORAUTUS GENETICS INC.
		
	By:	 	 /s/ Richard E. Otto

	 	 	Richard E. Otto, Chief Executive Officer

  

 13 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

			
	PURCHASER:
	
	Print Name: Jonathan D. Schwartz
	
	State of Residence: California
	
	 Number of Shares of Common Stock Purchased
 (at $3.80 per Share): 15,000

	
	Aggregate Purchase Price: $57,000.00
	
	SIGNATURE:
		
	By:	 	 /s/ Jonathan D. Schwartz

	Name:	 	Jonathan D. Schwartz
	Title:	 	  

  

			
	ACCEPTED AND AGREED AS TO 15,000 SHARES:
	
	CORAUTUS GENETICS INC.
		
	By:	 	 /s/ Richard E. Otto

	 	 	Richard E. Otto, Chief Executive Officer

  

 14 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

			
	PURCHASER:
	
	Print Name: Charles E. Seay
	
	State of Residence: Texas
	
	 Number of Shares of Common Stock Purchased
 (at $3.80 per Share): 50,000

	
	Aggregate Purchase Price: $190,000.00
	
	SIGNATURE:
		
	By:	 	 /s/ Charles E. Seay

	Name:	 	Charles E. Seay
	Title:	 	  

  

			
	ACCEPTED AND AGREED AS TO 50,000 SHARES:
	
	CORAUTUS GENETICS INC.
		
	By:	 	 /s/ Richard E. Otto

	 	 	Richard E. Otto, Chief Executive Officer

  

 15 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

			
	PURCHASER:
	
	Print Name: Robert J. Seiler
	
	State of Residence: California
	
	 Number of Shares of Common Stock Purchased
 (at $3.80 per Share): 65,000

	
	Aggregate Purchase Price: $247,000.00
	
	SIGNATURE:
		
	By:	 	 /s/ Robert J. Seiler

	Name:	 	Robert J. Seiler
	Title:	 	  

  

			
	ACCEPTED AND AGREED AS TO 65,000 SHARES:
	
	CORAUTUS GENETICS INC.
		
	By:	 	 /s/ Richard E. Otto

	 	 	Richard E. Otto, Chief Executive Officer

  

 16 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

			
	PURCHASER:
	
	Print Name: Fred L. Smith
	
	State of Residence: California
	
	 Number of Shares of Common Stock Purchased
 (at $3.80 per Share): 131,579

	
	Aggregate Purchase Price: $500,000.00
	
	SIGNATURE:
		
	By:	 	 /s/ Fred L. Smith

	Name:	 	Fred L. Smith
	Title:	 	  

  

			
	ACCEPTED AND AGREED AS TO 131,579 SHARES:
	
	CORAUTUS GENETICS INC.
		
	By:	 	 /s/ Richard E. Otto

	 	 	Richard E. Otto, Chief Executive Officer

  

 17 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

			
	PURCHASER:
	
	Print Name: The Walters Group
	
	State of Residence: Nevada
	
	 Number of Shares of Common Stock Purchased
 (at $3.80 per Share): 394,737

	
	Aggregate Purchase Price: $1,500,000.60
	
	SIGNATURE:
		
	By:	 	 /s/ William T. Walters

	Name:	 	William T. Walters
	Title:	 	General Partner

  

			
	ACCEPTED AND AGREED AS TO 394,737 SHARES:
	
	CORAUTUS GENETICS INC.
		
	By:	 	 /s/ Richard E. Otto

	 	 	Richard E. Otto, Chief Executive Officer

  

 18 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

			
	PURCHASER:
	
	Print Name: Waypoint Partners LP
	
	State of Residence: California
	
	 Number of Shares of Common Stock Purchased
 (at $3.80 per Share): 30,000

	
	Aggregate Purchase Price: $114,000.00
	
	SIGNATURE:
		
	By:	 	 /s/ David Baratta

	Name:	 	David Baratta
	Title:	 	Sole Member of General Partner

  

			
	ACCEPTED AND AGREED AS TO 30,000 SHARES:
	
	CORAUTUS GENETICS INC.
		
	By:	 	 /s/ Richard E. Otto

	 	 	Richard E. Otto, Chief Executive Officer

  

 19 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

			
	PURCHASER:
	
	Print Name: David Wick
	
	State of Residence: California
	
	 Number of Shares of Common Stock Purchased
 (at $3.80 per Share): 31,580

	
	Aggregate Purchase Price: $120,004.00
	
	SIGNATURE:
		
	By:	 	 /s/ David Wick

	Name:	 	David Wick
	Title:	 	Individual

  

			
	ACCEPTED AND AGREED AS TO 31,580 SHARES:
	
	CORAUTUS GENETICS INC.
		
	By:	 	 /s/ Richard E. Otto

	 	 	Richard E. Otto, Chief Executive Officer

  

 20 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

			
	PURCHASER:
	
	Print Name: BIB, LLC
	
	State of Residence: California
	
	 Number of Shares of Common Stock Purchased
 (at $3.80 per Share): 26,000

	
	Aggregate Purchase Price: $98,000.00
	
	SIGNATURE:
		
	By:	 	 /s/ Bo Wiley

	Name:	 	Bo Wiley
	Title:	 	Manager

  

			
	ACCEPTED AND AGREED AS TO 26,000 SHARES:
	
	CORAUTUS GENETICS INC.
		
	By:	 	 /s/ Richard E. Otto

	 	 	Richard E. Otto, Chief Executive Officer

  

 21 

 Exhibit A 
  

Form of Instruction to Transfer Agent 
  
                     ,
200     
  
 Mr. William Garza 
 US Stock Transfer Corporation 
 1745 Gardena Avenue 
 Glendale, CA 91204 
  
 Dear Mr. Garza, 
  
 Please accept
this letter as authorization to issue one certificate to                              for
                     shares of common stock, par value $0.001 per share, of Corautus Genetics Inc. (“Corautus”), and so record such
issuance on the stock register. The certificate shall be dated             , 200    . In addition, please affix the following legend on the certificate:

  
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES LAWS OF ANY OTHER JURISDICTION. THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE
DISTRIBUTION THEREOF. THE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, UNLESS SOLD
PURSUANT TO AN EXEMPTION UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. 
  
 Finally, please deliver the new certificate to the stockholder’s address of record, which is as follows: 
  

					
	 	  	___________________________	  	 
			
	 	  	___________________________	  	 
			
	 	  	___________________________	  	 

  
 Thank you for your
attention in this matter. Should you have any questions, please do not hesitate to contact me. 
  

	
	Sincerely,
	
	Jack Callicutt
	Vice President- Finance and Administration

  

	cc:	Richard E. Otto, Chief Executive Officer 

  

 22 

 EXHIBIT B 
  

COMPANY DISCLOSURE SCHEDULE 
  

	4.11	Certain material, non public information related to a potential investment by Boston Scientific Corporation in the Company and related transactions (including certain modifications
to milestones associated with funding under the Loan Agreement between the Company and Boston Scientific Corporation and reduction in the percentage of sales proceeds which Company receives from Boston Scientific Corporation pursuant to the
Company’s Distribution Agreement with Boston Scientific Corporation) has been provided to the Purchasers pursuant to non-disclosure agreements. 

  
  

 B-1 

 EXHIBIT C 
  

PLAN OF DISTRIBUTION 
  
 The selling stockholders may, from time to time, sell any or all of their shares of common stock on any stock exchange, market or trading facility on
which the shares are traded or in private transactions. These sales may be at fixed or negotiated prices. The selling stockholders may use any one or more of the following methods when selling shares: 
  

	 	•	 	ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers; 

  

	 	•	 	block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;

  

	 	•	 	purchases by a broker-dealer as principal and resale by the broker-dealer for its account; 

  

	 	•	 	an exchange distribution in accordance with the rules of the applicable exchange; 

  

	 	•	 	privately negotiated transactions; 

  

	 	•	 	short sales; 

  

	 	•	 	broker-dealers may agree with the selling stockholders to sell a specified number of such shares at a stipulated price per share; 

  

	 	•	 	a combination of any such methods of sale; and 

  

	 	•	 	any other method permitted pursuant to applicable law. 

  
 The selling stockholders may also sell shares under Rule 144 under the Securities Act, if available, rather than under this prospectus. 
  
 The selling stockholders may also engage in short sales against the box, puts
and calls and other transactions in our securities or derivatives of our securities and may sell or deliver shares in connection with these trades. 
  
 Broker-dealers engaged by the selling stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions
or discounts from the selling stockholders (or, if any broker-dealer acts as agent for the purchaser of shares, from the purchaser) in amounts to be negotiated. The selling stockholders do not expect these commissions and discounts to exceed what is
customary in the types of transactions involved. Any profits on the resale of shares of common stock by a broker-dealer acting as principal might be deemed to be underwriting discounts or commissions under the Securities Act. Discounts, concessions,
commissions and similar selling expenses, if any, attributable to the sale of shares will be borne by a selling stockholder. The selling stockholders may agree to indemnify any agent, dealer or broker-dealer that participates in transactions
involving sales of the shares if liabilities are imposed on that person under the Securities Act. 
  

 C-1 

 The selling stockholders may from time to time pledge or grant a security interest in some or all of the
shares of common stock owned by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the shares of common stock from time to time under this prospectus after we have filed an
amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act of 1933 amending the list of selling stockholders to include the pledgee, transferee or other successors in interest as selling stockholders under
this prospectus. 
  
 The selling stockholders also may transfer
the shares of common stock in other circumstances, in which case the transferees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus and may sell the shares of common stock from time to
time under this prospectus after we have filed an amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act of 1933 amending the list of selling stockholders to include the pledgee, transferee or other
successors in interest as selling stockholders under this prospectus. 
  
 The selling stockholders and any broker-dealers or agents that are involved in selling the shares of common stock may be deemed to be “underwriters” within the meaning of the Securities Act in connection with such sales. In such
event, any commissions received by such broker-dealers or agents and any profit on the resale of the shares of common stock purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. 
  
 We are required to pay all fees and expenses incident to the registration of
the shares of common stock. We have agreed to indemnify the selling stockholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act. 
  
 The selling stockholders have advised us that they have not entered into any agreements, understandings or arrangements with
any underwriters or broker-dealers regarding the sale of their shares of common stock, nor is there an underwriter or coordinating broker acting in connection with a proposed sale of shares of common stock by any selling stockholder. If we are
notified by any selling stockholder that any material arrangement has been entered into with a broker-dealer for the sale of shares of common stock, if required, we will file a supplement to this prospectus. If the selling stockholders use this
prospectus for any sale of the shares of common stock, they will be subject to the prospectus delivery requirements of the Securities Act. 
  
 The anti-manipulation rules of Regulation M under the Securities Exchange Act of 1934 may apply to sales of our common stock and activities of the selling
stockholders. 
  

 2Investment Agreement

 Exhibit 10.4 
  

  
 INVESTMENT AGREEMENT 
  

  
 Between 
  
 CORAUTUS GENETICS INC. 
  
 and 
  
 BOSTON SCIENTIFIC
CORPORATION 
  
 Dated as of June 27, 2005 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	ARTICLE 1 DEFINITIONS	  	2
	 1.1
	  	CERTAIN DEFINED TERMS	  	2
	 1.2
	  	ADDITIONAL DEFINITIONS	  	4
		
	ARTICLE 2 EQUITY INVESTMENT	  	5
			
	 2.1
	  	SUBSCRIPTION FOR COMMON STOCK	  	5
	 2.2
	  	THE CLOSING	  	6
		
	ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF THE COMPANY	  	7
			
	 3.1
	  	ORGANIZATION, AUTHORITY AND QUALIFICATION OF THE COMPANY	  	7
	 3.2
	  	SUBSIDIARIES	  	7
	 3.3
	  	CAPITAL STOCK OF THE COMPANY	  	8
	 3.4
	  	AUTHORITY AND QUALIFICATION OF THE COMPANY	  	8
	 3.5
	  	NO CONFLICT	  	9
	 3.6
	  	GOVERNMENTAL CONSENTS AND APPROVALS	  	9
	 3.7
	  	ABSENCE OF CERTAIN CHANGES OR EVENTS; CONDUCT IN
ORDINARY COURSE	  	9
	 3.8
	  	SEC FILINGS; FINANCIAL STATEMENTS	  	9
	 3.9
	  	LITIGATION	  	11
	 3.10
	  	COMPLIANCE WITH LAWS	  	11
	 3.11
	  	ASSETS	  	11
	 3.12
	  	BROKERS	  	11
	 3.13
	  	EMPLOYMENT AND BENEFITS MATTERS	  	11
	 3.14
	  	INSURANCE	  	11
	 3.15
	  	REGULATORY COMPLIANCE	  	12
	 3.16
	  	ABSENCE OF UNDISCLOSED LIABILITIES	  	12
	 3.17
	  	FULL DISCLOSURE	  	12
	 3.18
	  	CLINICAL TRIALS; PRODUCT DATA	  	12
	 3.19
	  	NASDAQ	  	13
		
	ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF THE INVESTOR	  	13
			
	 4.1
	  	ORGANIZATION AND AUTHORITY OF THE INVESTOR	  	13
	 4.2
	  	NO CONFLICT	  	13
	 4.3
	  	GOVERNMENTAL CONSENTS AND APPROVALS	  	14
	 4.4
	  	BROKERS	  	14
	 4.5
	  	ACCREDITED INVESTOR AND INVESTMENT EXPERIENCE	  	14
	 4.6
	  	INVESTMENT INTENT	  	14
	 4.7
	  	INFORMATION AND RISK.	  	14
	 4.8
	  	LEGENDS	  	15
		
	ARTICLE 5 COVENANTS AND AGREEMENTS	  	15
			
	 5.1
	  	CONDUCT OF BUSINESS	  	15
	 5.2
	  	GOVERNMENTAL PROCEEDINGS	  	15
	 5.3
	  	LISTING	  	15
	 5.4
	  	WAIVER OF ANTIDILUTION RIGHTS	  	15
		
	 ARTICLE 6 USE OF PROCEEDS
	  	16
			
	 6.1
	  	RESEARCH AND DEVELOPMENT	  	16
		
	ARTICLE 7 CONDITIONS PRECEDENT	  	16
			
	 7.1
	  	CONDITIONS TO THE INVESTOR’S OBLIGATIONS	  	16
	 7.2
	  	CONDITIONS TO THE COMPANY’S OBLIGATIONS	  	17

  

 i 

					
	ARTICLE 8 INDEMNIFICATION	  	18
			
	 8.1
	  	SURVIVAL OF REPRESENTATIONS, WARRANTIES AND INDEMNITIES	  	18
	 8.2
	  	INDEMNIFICATION BY THE COMPANY	  	18
	 8.3
	  	INDEMNIFICATION BY THE INVESTOR	  	18
	 8.4
	  	TREATMENT FOR TAX PURPOSES	  	19
	 8.5
	  	LIMITATIONS ON INDEMNIFICATION	  	19
		
	ARTICLE 9 TERMINATION	  	19
			
	 9.1
	  	TERMINATION	  	19
	 9.2
	  	EFFECT OF TERMINATION	  	20
		
	ARTICLE 10 CONFIDENTIALITY	  	20
			
	 10.1
	  	CONFIDENTIALITY	  	20
	 10.2
	  	RELEASE FROM RESTRICTIONS	  	20
	 10.3
	  	PUBLIC ANNOUNCEMENTS AND PUBLICATIONS	  	21
		
	ARTICLE 11 GENERAL PROVISIONS	  	21
			
	 11.1
	  	FURTHER ACTION	  	21
	 11.2
	  	EXPENSES	  	21
	 11.3
	  	NOTICES	  	21
	 11.4
	  	INTERPRETATION AND RULES OF CONSTRUCTION	  	22
	 11.5
	  	SEVERABILITY	  	23
	 11.6
	  	ENTIRE AGREEMENT	  	23
	 11.7
	  	ASSIGNMENT	  	23
	 11.8
	  	NO THIRD PARTY BENEFICIARIES	  	24
	 11.9
	  	AMENDMENT	  	24
	 11.10
	  	NO WAIVER	  	24
	 11.11
	  	DISPUTE RESOLUTION	  	24
	 11.12
	  	GOVERNING LAW	  	24
	 11.13
	  	COUNTERPARTS	  	25
	 11.14
	  	WAIVER OF JURY TRIAL	  	25
	 11.15
	  	CONSTRUCTION; INTERPRETATION	  	25
	 11.16
	  	SPECIFIC PERFORMANCE	  	25

  

 ii 

 EXHIBITS AND SCHEDULES 
  

			
	Exhibit A	 	Form of Registration Rights Agreement
	Exhibit B	 	Form of Amendment to Loan Agreement
	Exhibit C	 	Form of Amendment to Distribution Agreement
	Exhibit D	 	Form of Escrow Agreement
	Exhibit E	 	Form of Instructions to Transfer Agent
	Exhibit F	 	Form of Amendment to Series D Certificate of Designation
	Exhibit G	 	Form of Legal Opinion
	
	Disclosure Schedule

  

 iii 

 INVESTMENT AGREEMENT 
  
 THIS INVESTMENT AGREEMENT, dated as of June 27, 2005 (the “Signing Date”), between CORAUTUS GENETICS INC.,
a Delaware corporation (the “Company”), and BOSTON SCIENTIFIC CORPORATION, a Delaware corporation (the “Investor”, each a “Party” and together with the Company, the “Parties”).

  
 WHEREAS, the Investor is an existing shareholder of the
Company and is engaged in the business of developing, manufacturing and marketing, among other things, biomedical technology used to treat cardiac and vascular disease; 
  
 WHEREAS, the Company wishes to pursue the development and distribution of drugs or products that use VEGF-2 for the
treatment of the heart or peripheral vascular system (the “Products”); 
  
 WHEREAS, the Investor is willing to subscribe for additional capital stock of the Company to provide funding to the Company for purposes of such development and to increase its ownership interest in the Company;

  
 WHEREAS, on the Closing Date, the Parties are entering into a
Registration Rights Agreement, substantially in the form of Exhibit A, to provide, among other things, for certain registration rights of the Investor in connection with its purchase of capital stock of the Company hereunder (the
“Registration Rights Agreement”); 
  
 WHEREAS, on
the Closing Date, the Company and the Investor will also be entering into (i) an amendment to the Loan Agreement dated as of July 30, 2003, as amended, between the Parties, which amendment shall be substantially in the form of Exhibit B (the
“Loan Agreement Amendment”), (ii) an amendment to the Distribution Agreement dated as of July 30, 2003 between the Parties (the “Distribution Agreement”), which amendment shall be substantially in the form of
Exhibit C (the “Distribution Agreement Amendment”), and (iii) an Escrow Agreement, substantially in the form of Exhibit D, to provide for the escrow of the Investor’s purchase price for the shares purchased
hereunder until such time as the Company has obtained shareholder approval for the issuance of such shares (the “Escrow Agreement”) (this Agreement, the Registration Rights Agreement, the Loan Agreement Amendment, the Distribution
Agreement Amendment and the Escrow Agreement are hereinafter collectively referred to as the “Transaction Documents”), all of which are a material consideration in the willingness of the Investor to provide the funding contemplated
by this Agreement; 
  

 1 

 NOW, THEREFORE, in consideration of the premises and the mutual representations and warranties,
agreements and covenants hereinafter set forth, the Parties hereby agree as follows: 
  
 ARTICLE 1 
  
 DEFINITIONS

  
 1.1 Certain Defined Terms 
  
 For purposes of this Agreement: 
  
 “Action” means any claim, action, suit, arbitration,
inquiry, proceeding or investigation by or before any Governmental Authority. 
  
 “Affiliate” means, with respect to any specified Person, any other Person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with,
such specified Person. 
  
 “Agreement” or
“this Agreement” means this Agreement and includes the Exhibits and the Disclosure Schedule, and all amendments hereto made in accordance with the provisions of Section 11.9. 
  
 “Board of Directors” means the board of directors of the
Company. 
  
 “Business Day” means any day that is
not a Saturday, a Sunday or any other day on which banks are required or authorized by Law to be closed in The City of New York. 
  
 “Common Stock” means the common stock of the Company, par value $0.001 per share. 
  
 “Confidential Information” means all nonpublic proprietary
information and materials (whether or not patentable), disclosed by a Disclosing Party to a Receiving Party, irrespective of the manner in which the Disclosing Party disclosed such information to the Receiving Party, in furtherance of this
Agreement, including, without limitation, substances, formulations, techniques, methodologies, equipment, data, reports, correspondence, know-how, manufacturing documentation, financial information and sources of supply. 
  
 “control” (including the terms “controlled
by” and “under common control with”), with respect to the relationship between or among two or more Persons, means the possession, directly or indirectly or as trustee, personal representative or executor, of the power to
direct or cause the direction of the affairs or management of a Person, whether through the ownership of voting securities, as trustee, personal representative or executor, by contract, credit arrangement or otherwise. 
  
 “Disclosing Party” means a Party disclosing Confidential
Information. 
  
 “Disclosure Schedule” means the
Disclosure Schedule attached hereto, dated as of the date hereof and forming a part of this Agreement. 
  
 “Encumbrance” means any security interest, pledge, hypothecation, mortgage, lien (including, without limitation, environmental and Tax
liens) or other encumbrance. 
  

 2 

 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time
to time, and the regulations promulgated and rulings issued thereunder. 
  
 “FDA” means the United States Food and Drug Administration. 
  
 “Governmental Authority” means any United States or non-United States federal, national, supranational, state, provincial, local, or similar government, governmental, regulatory or administrative
authority, agency or commission or any court, tribunal, or judicial or arbitral body. 
  
 “Governmental Order” means any order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with any Governmental Authority. 
  
 “Law” means any United States or non-United States federal,
national, supranational, state, provincial, local or similar statute, law, ordinance, regulation, rule, code, order, requirement or rule of law. 
  
 “Material Adverse Effect” means any circumstance, change or effect that, individually or in the aggregate with all other circumstances,
changes or effects: (a) is or is reasonably likely to be materially adverse to the business, assets, operations, results of operations, prospects, liabilities (including, without limitation, contingent liabilities) or the financial condition of the
Company and its Subsidiaries, taken as a whole or (b) is reasonably likely to materially adversely effect the ability of the Company to consummate the transactions contemplated by this Agreement and the other Transaction Documents. 
  
 “Person” means any individual, partnership, firm,
corporation, limited liability company, association, trust, unincorporated organization or other entity, as well as any syndicate or group that would be deemed to be a person under Section 13(d)(3) of the Securities Exchange Act of 1934, as amended.

  
 “Plan” means any (a) employee benefit plans
(as defined in Section 3(3) of ERISA) and all bonus, stock option, stock purchase, restricted stock, incentive, deferred compensation, retiree medical or life insurance, supplemental retirement, severance or other benefit plans, programs or
arrangements, and all employment, termination, severance or other contracts or agreements to which the Company or any Subsidiary is a party, with respect to which the Company or any Subsidiary has any obligation, or which is maintained, contributed
to or sponsored by the Company or any Subsidiary for the benefit of any current or former employee, officer or director of the Company or any Subsidiary, (b) employee benefit plan for which the Company or any Subsidiary could incur liability under
Section 4069 of ERISA in the event such plan has been or were to be terminated, or (c) plan in respect of which the Company or any Subsidiary could incur liability under Section 4212(c) of ERISA. 
  
 “Receiving Party” means a Party receiving Confidential
Information. 
  
 “Subsidiary” of any Person means
any corporation, partnership, joint venture, limited liability company, trust or estate of which (or in which) more than 50% of (a) the issued and outstanding capital stock having ordinary voting power to elect a majority of the board of directors
of such corporation (irrespective of whether at the time capital stock of any other class 
  

 3 

 or classes of such corporation shall or might have voting power upon the occurrence of any contingency), (b) the interest
in the capital or profits of such limited liability company, partnership, or joint venture or (c) the beneficial interest in such trust or estate is at the time directly or indirectly owned or controlled by such Person, by such Person and one or
more of its other Subsidiaries or by one or more of such Person’s other Subsidiaries. 
  
 “Tax” or “Taxes” means all income, gross receipts, gains, sales, use, employment, franchise, profits, excise, property, value added and other taxes, fees, stamp taxes and duties,
assessments or charges of any kind, together with any interest and penalties, additions to tax or additional amounts imposed by any taxing authority with respect thereto. 
  
 “U.S. GAAP” means United States generally accepted accounting principles applied on a consistent basis.

  
 “VEGF-2” means the Human Genome Sciences
angiogenic agent licensed to and being further developed and modified by the Company, sometimes referred to as Vascular Endothelial Growth Factor 2 plasmid DNA, and any modifications or improvements thereto. 
  
 “VGI” means Vascular Genetics Inc., a Delaware corporation.

  
 1.2 Additional Definitions 
  
 The following terms have the meanings set forth in the Sections set forth
below: 
  

			
	 Definition

	  	Location

	 “Assets”
	  	3.11
	 “Closing”
	  	2.2(a)
	 “Closing Date”
	  	2.2(a)
	 “Company”
	  	Preamble
	 “Company Financial Statements”
	  	3.8(b)
	 “Company Indemnified Party”
	  	8.3
	 “Company SEC Reports”
	  	3.8(a)
	 “Distribution Agreement”
	  	Recitals
	 “Distribution Agreement Amendment”
	  	Recitals
	 “Escrow Agent”
	  	2.1(c)
	 “Escrow Agreement”
	  	Recitals
	 “Escrowed Funds”
	  	2.1(c)
	 “Exchange Act”
	  	3.8(a)
	 “Investor”
	  	Preamble
	 “Investor Indemnified Party”
	  	8.2
	 “Loan Agreement Amendment”
	  	Recitals
	 “Loss”
	  	8.2
	 “NASDAQ”
	  	3.19
	 “Notice of Disagreement”
	  	11.11
	 “Parties”
	  	Preamble
	 “Party”
	  	Preamble

  

 4 

			
	 Definition

	  	Location

	 “Preferred Stock”
	  	3.3
	 “Products”
	  	Recitals
	 “Reference Statement Date”
	  	3.8(c)
	 “Registration Rights Agreement”
	  	Recitals
	 “SEC”
	  	3.8(a)
	 “Securities Act”
	  	3.8(a)
	 “Signing Date”
	  	Preamble
	 “Threshold Amount”
	  	8.5
	 “Transaction Documents”
	  	Recitals

  
 ARTICLE 2

  
 EQUITY INVESTMENT 
  
 2.1 Subscription for Common Stock 
  
 (a) Subscription. Upon the basis of the representations and
warranties set forth in this Agreement and subject to the terms and conditions set forth herein and in the Escrow Agreement, the Investor agrees to subscribe for, and the Company agrees to issue and sell to the Investor, 2,105,264 shares of Common
Stock of the Company. 
  
 (b) Consideration. In
consideration for the issuance to the Investor of such shares of Common Stock, the Investor shall pay $8,000,003.20 (Eight Million Three and 20/100 Dollars) to the Company as provided in Section 2.1(c) below. 
  
 (c) Escrow. At the Closing, the Investor shall deliver the entire purchase price of $8,000,003.20 (the “Escrowed Funds”) to Wachovia Bank,
National Association (the “Escrow Agent”), to be held by the Escrow Agent in escrow. Upon the approval by the Company’s shareholders of the sale and issuance of the purchased shares to the Investor, (i) the Company shall
provide the Investor and the Escrow Agent with a certificate from a duly authorized officer certifying on behalf of the Company that such approval has been obtained, (ii) the Company shall provide the Investor with an instruction letter to the
transfer agent of the Company in substantially the form of Exhibit E attached hereto, (iii) the Company shall provide the Investor an opinion of counsel in substantially the form of Exhibit G attached hereto, and (iv) the Escrow Agent
shall release the Escrowed Funds to the Company, as provided in the Escrow Agreement, by wire transfer of immediately available funds to a bank account designated by the Company for such purpose. In the event that the Company’s shareholders do
not approve the sale and issuance of the purchased shares to the Investor on or before June 1, 2006, the Escrow Agent shall return the Escrow Funds to the Investor as provided in the Escrow Agreement, and the Parties shall have no further
obligations or liability with respect to the sale, purchase or issuance of the shares to be purchased hereunder, including all rights with respect thereto under the Registration Rights Agreement. 
  

 5 

 2.2 The Closing 
  
 (a) Subject to the terms and conditions of this Agreement, the closing of the transactions contemplated by Section 2.1 of
this Agreement shall take place at a closing (the “Closing”) to be held at the offices of McKenna Long & Aldridge LLP, 303 Peachtree Street, NE, Suite 5300, Atlanta, Georgia at 10:00 A.M. (Atlanta time) on June 27, 2005, or at
such other time and place that the Company and the Investor shall agree (the “Closing Date”). 
  
 (b) Closing Deliveries of the Company. At the Closing, the Company shall deliver or cause to be delivered to the Investor: 
  
 (1) the Transaction Documents, duly executed by the Company; 
  
 (2) a true and complete copy, certified by the Secretary of the Company, of
the resolutions duly and validly adopted by the Board of Directors evidencing its authorization of the execution and delivery of the Transaction Documents and the consummation of the transactions contemplated thereby, accompanied by the
certification of the Secretary of the Company as to the names and signatures of the officers of the Company authorized to sign the Transaction Documents and the other documents to be delivered thereunder; 
  
 (3) a copy of (A) the restated certificate of incorporation of the Company,
as amended, certified by the Secretary of State of the State of Delaware, as of a date not earlier than ten (10) Business Days prior to the Closing Date and accompanied by a certificate of the Secretary of the Company, dated as of the Closing Date,
stating that no amendments have been made to such restated certificate of incorporation since such date, and (B) the by-laws of the Company, certified by the Secretary of the Company; 
  
 (4) a good standing certificate for the Company issued by the Secretary of State of the State of Delaware, dated as of a
date not earlier than ten (10) Business Days prior to the Closing Date; and 
  
 (5) the certificate, dated as of the Closing Date, contemplated by Section 7.1(a). 
  
 (c) Closing Deliveries of the Investor. At the Closing Date, the Investor shall deliver or cause to be delivered to the Company: 
  
 (1) a receipt evidencing that the sum of $8,000,003.20 has been deposited with the Escrow Agent to be held in escrow
in accordance with the terms of the Escrow Agreement; 
  
 (2) the Transaction Documents, duly executed by the Investor; and 
  
 (3) the certificate, dated the Closing Date, contemplated by Section 7.2(a). 
  

 6 

 ARTICLE 3 
  

REPRESENTATIONS AND WARRANTIES 
 OF
THE COMPANY 
  
 As an inducement to the Investor to enter into
this Agreement and the other Transaction Documents, the Company hereby represents and warrants to the Investor as of the date hereof and as of the Closing Date (except for such representations and warranties as are expressly made as of another date)
as follows (it being understood that for purposes of the Disclosure Schedule, matters that are disclosed in one Section of the Disclosure Schedule are considered to be disclosed in another Section of the Disclosure Schedule to the extent that the
Disclosure Schedule contains cross-references that make the relevance of such information to such other Section reasonably apparent): 
  
 3.1 Organization, Authority and Qualification of the Company 
  
 The Company is a corporation duly organized, validly existing and in good standing under the Laws of the State of Delaware
and has all necessary corporate power and authority to own, operate or lease the properties and assets now owned, operated or leased by it and to carry on its business as it has been and is currently conducted. The Company is duly licensed or
qualified to do business and is in good standing in each jurisdiction in which the properties owned or leased by it or the operation of its business makes such licensing or qualification necessary, except where the failure to be so licensed or
qualified would not (a) materially adversely affect the ability of the Company to carry out its obligations under, and to consummate the transactions contemplated by this Agreement and the other Transaction Documents or (b) otherwise have a Material
Adverse Effect. 
  
 3.2 Subsidiaries 
  
 (a) Other than Urogen Acquisition Corporation and VGI, there are no other
corporations, partnerships, joint ventures, associations or other entities in which the Company or any Subsidiary thereof owns, of record or beneficially, any direct or indirect equity or other interest or any right (contingent or otherwise) to
acquire the same. Neither the Company nor either of its two Subsidiaries is a member of (nor is any part of their business conducted through) any partnership nor is the Company or either Subsidiary a participant in any joint venture or similar
arrangement. 
  
 (b) Each of the Company’s two Subsidiaries:
(i) is duly organized, validly existing and in good standing under the Laws of the State of Delaware, (ii) has all necessary power and authority to own, operate or lease the properties and assets owned, operated or leased by such Subsidiary and to
carry on its business as it has been and is currently conducted by such Subsidiary and (iii) is duly licensed or qualified to do business and is in good standing in each jurisdiction in which the properties owned or leased by it or the operation of
its business makes such licensing or qualification necessary. 
  

 7 

 3.3 Capital Stock of the Company 
  
 The authorized capital stock of the Company consists of 100,000,000 shares of Common Stock and 5,000,000 shares of preferred
stock of the Company (“Preferred Stock”) (of which Preferred Stock there are designated 40,000 shares of Series A Preferred Stock, 13,000 shares of Series B Preferred Stock, 17,000 shares of Series C Preferred Stock and 1,400,000
shares of Series D Preferred Stock). As of the Signing Date, (a) 14,864,799 shares of Common Stock are issued and outstanding, (b) 2,691,136 shares of Common Stock are reserved for issuance pursuant to outstanding options granted pursuant to the
Company’s 1995 Stock Plan, 1995 Directors Option Plan, 1999 Stock Plan, and 2002 Stock Plan, (c) 1,252,625 shares of Common Stock are reserved for issuance upon the exercise of outstanding warrants in the amounts and at the exercise prices
disclosed on Section 3.3 of the Disclosure Schedule, and (d) 2,000 shares of Series C Preferred Stock are issued and outstanding, 1,385,377 shares of Series D Preferred Stock are issued and outstanding, and no other shares of Preferred Stock are
outstanding. Except as provided in Section 3.3 of the Disclosure Schedule, no shares of capital stock of the Company are held in its treasury. All of the outstanding shares of the Company’s capital stock are duly and validly issued, fully paid
and nonassessable. None of the issued and outstanding shares of capital stock of the Company was issued in violation of any preemptive rights. Except as set forth in the first sentence of this Section or in Section 3.3 of the Disclosure Schedule,
there are no options, warrants, subscriptions, calls, convertible securities or other rights, agreements, arrangements or commitments relating to the capital stock of the Company or obligating the Company to issue or sell any shares of capital stock
of, or any other equity interest in, the Company. There are no outstanding contractual obligations of the Company to repurchase, redeem or otherwise acquire any shares of capital stock of the Company or make any investment (in the form of a loan,
capital contribution or otherwise) in, any other Person. The shares of Common Stock to be issued and sold pursuant to this Agreement have been duly and validly authorized by the Company, and, upon the issuance of such shares to the Investor under
the terms of Section 2.1(c) herein and the Escrow Agreement, such shares of Common Stock will have been duly and validly issued, fully paid and non-assessable, and the issuance of such shares shall not be subject to preemptive or other similar
rights, except such rights of the Investor, which Investor has agreed to waive herein. There are no voting trusts, stockholder agreements, proxies or other agreements or understanding in effect with respect to the voting or transfer of any of the
Company’s capital stock, except as described on Section 3.3 of the Disclosure Schedule. There are no accrued and unpaid dividends on any capital stock of the Company. 
  
 3.4 Authority and Qualification of the Company 
  
 (a) The Company has all necessary corporate power and authority to enter into the Transaction Documents, to carry out its
obligations thereunder and to consummate the transactions contemplated thereby, and the execution and delivery by the Company of the Transaction Documents, the performance by the Company of its obligations thereunder and the consummation by the
Company of the transactions contemplated thereby have been duly authorized by all requisite action on the part of the Company, except in each case for the shareholder approval contemplated by Section 2.1(c) herein for the sale and issuance of the
purchased shares to the Investor. Each Transaction Document has been, or upon its execution shall be, duly executed and delivered by the Company, and (assuming due execution and delivery thereof by each other party thereto, if applicable) each
Transaction Document 
  

 8 

 constitutes, or upon its execution shall constitute, the legal, valid and binding obligation of the Company enforceable
against the Company in accordance with its terms, subject to (i) the effect of any applicable bankruptcy, insolvency, reorganization, moratorium and other similar Laws relating to or affecting creditors’ rights and remedies generally, and (ii)
the effect of general equitable principles, regardless of whether asserted in a proceeding in equity or at law. 
  
 (b) All corporate actions taken by the Company have been duly authorized, and the Company has not taken any action that in any respect conflicts with,
constitutes a default under or results in a violation of any provision of its restated certificate of incorporation or by-laws, excluding any such action that would not have a Material Adverse Effect. 
  
 3.5 No Conflict 
  
 Except as provided in Section 3.5 of the Disclosure Schedule, the execution,
delivery and performance by the Company of the Transaction Documents does not (a) violate, conflict with or result in the breach of any provision of its restated certificate of incorporation or by-laws, (b) conflict with or violate any Law or
Governmental Order applicable to the Company, or any of its assets, properties or businesses, or (c) conflict with, result in any breach of, constitute a default (or event which with the giving of notice or lapse of time, or both, would become a
default) under, require any consent under, or give to others any rights of termination, amendment, acceleration, suspension, revocation or cancellation of, or result in the creation of any Encumbrance on any of the properties as assets of the
Company pursuant to, any note, bond, mortgage or indenture, contract, agreement, lease, sublease, license, permit, franchise or other instrument or arrangement to which the Company is a party or by which any of assets or properties is bound or
affected, except, with respect to clause (c), for any such conflicts, violations, breaches, defaults or other occurrences that have not had, and would not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.

  
 3.6 Governmental Consents and Approvals 
  
 The execution, delivery and performance of the Transaction Documents by the
Company does not require any consent, approval, authorization or other order of, action by, filing with or notification to, any Governmental Authority other than (a) any approval of, filing with or notification to NASDAQ, and (b) such registrations,
filings and authorizations as may be required under federal and state securities laws. 
  
 3.7 Absence of Certain Changes or Events; Conduct in Ordinary Course 
  
 Except as set forth in Section 3.7 of the Disclosure Schedule, since the Reference Statement Date, the business of the Company has been conducted in the
ordinary course, in a manner consistent with past practices and there has been no Material Adverse Effect. 
  
 3.8 SEC Filings; Financial Statements 
  
 (a) The Company has filed all forms, reports and documents required to be filed by it with the Securities and Exchange Commission (the
“SEC”). The Company heretofore has filed with the SEC, (i) its Annual Report on Form 10-K for the fiscal year ended December 31, 2004, (ii) its Quarterly Report on Form 10-Q for the quarterly period ended 
  

 9 

 March 31, 2005, (iii) all proxy statements relating to the Company’s meetings of stockholders (whether annual or
special) held since January 1, 2005 and (iv) all other forms, reports and other registration statements (other than Quarterly Reports on Form 10-Q not referred to in clause (ii) above) filed by the Company with the SEC since January 1, 2005 (the
forms, reports and other documents referred to in clauses (i), (ii), (iii) and (iv) above being, collectively, the “Company SEC Reports”). As of their respective filings dates, the Company SEC Reports (x) were prepared in accordance
with either the requirements of the Securities Act of 1933, as amended (the “Securities Act”), or the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as the case may be, and the rules and
regulations promulgated thereunder, and (y) did not, at the time they were filed, or, if amended, as of the date of such amendment, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or
necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. No Subsidiary of the Company is required to file any form, report or other document with the SEC. 
  
 (b) Each of the consolidated financial statements (including, in each case,
any notes thereto) contained in the Company SEC Reports (the “Company Financial Statements”) was prepared in accordance with U.S. GAAP applied on a consistent basis throughout the periods indicated (except as may be indicated in the
notes thereto or, in the case of unaudited statements, as permitted by Form 10-Q of the SEC) and each fairly presents, in all material respects, the consolidated financial position, results of operations and cash flows of the Company and its
consolidated Subsidiaries as at the respective dates thereof and for the respective periods indicated therein (subject, in the case of unaudited statements, to normal and recurring year-end adjustments which would not have had, and would not have, a
Material Adverse Effect). The Company maintains systems of internal accounting controls that are, in all material respects, typical for companies of its size and in its industry and sufficient to provide reasonable assurance that (i) transactions
are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with U.S. GAAP and to maintain asset accountability, (iii)
access to its assets is permitted only in accordance with management’s general or specific authorization and (iv) the recorded accountability for its assets is compared with its existing assets at reasonable intervals and appropriate action is
taken with respect to any differences. Except as specifically disclosed in the notes to the Company Financial Statements, there are no material special or non-recurring items of income or expense during the periods covered by the Company Financial
Statements and the balance sheets included in the Company Financial Statements do not reflect any writeup or revaluation increasing the book value of any assets. 
  
 (c) Except as and to the extent set forth on the consolidated balance sheet of the Company and the consolidated Subsidiaries
as of March 31, 2005, including the notes thereto (the “Reference Statement Date”) or in Section 3.8(c) of the Disclosure Schedule, neither the Company nor any Subsidiary has any liability or obligation of any nature (whether
accrued, absolute, contingent or otherwise), except for liabilities and obligations incurred in the ordinary course of business consistent with past practice which have not had and would not reasonably be expected to have a Material Adverse Effect.

  
 (d) As of the date of this Agreement, the Company has
heretofore furnished to the Investor complete and correct copies of (i) all agreements, documents and other instruments 
  

 10 

 not yet filed by the Company with the SEC but that are currently in effect and that the Company expects to file with the
SEC after the date of this Agreement and (ii) all amendments and modifications that have not been filed by the Company with the SEC to all agreements, documents and other instruments that previously had been filed by the Company with the SEC and are
currently in effect. 
  
 3.9 Litigation 
  
 Except as set forth on Section 3.9 of the Disclosure Schedule, there is no
Action pending (or, to the knowledge of the Company, threatened) by or against the Company or either of its two Subsidiaries. Neither the Company nor either of its two Subsidiaries is subject to any Governmental Order (nor, to the knowledge of the
Company, are there any Governmental Orders threatened to be imposed by any Governmental Authority) which has resulted or would reasonably be expected to have a Material Adverse Effect. 
  
 3.10 Compliance with Laws 
  

Except as would not reasonably be expected to have a Material Adverse Effect, (a) the Company and its Subsidiaries have conducted and continue to
conduct their business in all respects in accordance with all Laws and Governmental Orders applicable to the Company and such Subsidiaries, and (b) neither the Company nor any Subsidiary is in violation of any such Law or Governmental Order.

  
 3.11 Assets 
  
 Except as disclosed in Section 3.11 of the Disclosure Schedule, the Company
(directly or through its subsidiary VGI) owns, lease or has the legal right to use all the properties and assets used or intended to be used in the conduct of the business of the Company or otherwise owned, leased or used by the Company
(collectively, the “Assets”). 
  
 3.12 Brokers

  
 No broker, finder or investment banker is entitled to any
brokerage, finder’s or other fee or commission in connection with the transactions contemplated by the Transaction Documents based upon arrangements made by or on behalf of the Company. 
  
 3.13 Employment and Benefits Matters 
  
 None of the Plans is subject to Title IV of ERISA or Section 412 of the
Code, nor does the Company or any Subsidiary contribute to any “multiemployer plan” as defined in Section 3(37) of ERISA. The Company has performed all material obligations required to be performed by it under, is not in any material
respect in default under or in material violation of, and has no knowledge of any material default or violation by any party to, any Plan. 
  
 3.14 Insurance 
  
 All material insurable risks of the Company and its Subsidiaries in respect of the businesses of each are covered by insurance policies, and the types and
amounts of coverage 
  

 11 

 provided therein are usual and customary when compared to those of other companies of substantially similar size in the
context of the businesses and operations in which the Company and the Subsidiaries are engaged. 
  
 3.15 Regulatory Compliance 
  
 Each product or drug related to VEGF-2 that is tested or created by the Company is being tested or created in compliance with all material requirements of
applicable Law. As of the date of this Agreement, the Company is not testing anything other than VEGF-2 or products or drugs related thereto. Since July 30, 2003, the Company has not received any notice from the FDA or any other Governmental
Authority alleging any violation by the Company of any Law relating to VEGF-2. Except as disclosed in Section 3.15 of the Disclosure Schedule, the Company has not received any written notice that the FDA or any other Governmental Authority has
threatened to investigate or suspend any research activities, pre-clinical programs or clinical trials being conducted by the Company relating to VEGF-2. 
  
 3.16 Absence of Undisclosed Liabilities 
  
 There are no liabilities of the Company or either of its Subsidiaries of any nature (whether absolute, accrued, contingent or otherwise) other than (a)
those liabilities reflected or reserved against on the March 31, 2005 balance sheet that is set forth in the Company SEC Reports, including the notes thereto, (b) those liabilities set forth in Section 3.16 of the Disclosure Schedule and (c)
liabilities which would not reasonably be expected to have a Material Adverse Effect. 
  
 3.17 Full Disclosure 
  
 No representation or warranty of the Company in this Agreement, nor any statement or certificate furnished or to be furnished by the Company to the Investor pursuant to this Agreement, or in connection with the transactions contemplated
thereby, contains any untrue statement of a material fact, or omits to state a material fact necessary to make the statements contained herein or therein not misleading. The Company is not aware of any facts pertaining to the Company, its
Subsidiaries or their business which would reasonably be expected to materially affect adversely any of them and which have not been disclosed in this Agreement, the Disclosure Schedule or the Company Financial Statements or otherwise disclosed to
the Investor by the Company in writing. 
  
 3.18 Clinical
Trials; Product Data 
  
 Except as set forth in Section 3.18
of the Disclosure Schedule, the clinical, pre-clinical, safety and other studies and tests conducted by or on behalf of or sponsored by the Company or its agents or in which the Company’s product candidates under development have participated,
were and, if still pending, are, to the Company’s knowledge, being conducted in accordance with medical and scientific research procedures. The Company and, to the Company’s knowledge, its agents have operated within, and currently are in
compliance with, all applicable rules, regulations and policies of the FDA and other applicable foreign authorities. Except as set forth in Section 3.18 of the Disclosure Schedule, neither the Company nor, to the Company’s knowledge, its agents
have received any notices or other correspondence from the FDA, other foreign authority, or any other governmental entity requiring the termination, suspension, or modification of any clinical, pre-clinical, safety or other studies or tests.

  

 12 

 3.19 NASDAQ 
  
 The Company represents that it is in compliance with all the applicable requirements of the rules and regulations of the
NASDAQ Stock Market (“NASDAQ”). 
  
 ARTICLE 4

  
 REPRESENTATIONS AND WARRANTIES 
 OF THE INVESTOR 
  
 The Investor hereby represents and warrants to the Company as follows: 
  
 4.1 Organization and Authority of the Investor 
  
 The Investor is a corporation duly organized, validly existing and in good standing under the Laws of the State of Delaware
and has all necessary corporate power and authority to enter into the Transaction Documents, to carry out its obligations thereunder and to consummate the transactions contemplated thereby. The execution and delivery by the Investor of the
Transaction Documents, the performance by the Investor of its obligations thereunder and the consummation by the Investor of the transactions contemplated thereby have been duly authorized by all requisite corporate action on the part of the
Investor. Each Transaction Document has been, or upon its execution shall be, duly executed and delivered by the Investor, and (assuming due execution and delivery thereof by each other party thereto, if applicable) each Transaction Document
constitutes, or upon its execution, shall constitute, the legal, valid and binding obligations of the Investor, enforceable against the Investor in accordance with its terms, subject to (a) the effect of any applicable bankruptcy, insolvency,
reorganization, moratorium, and other similar Laws relating to or affecting creditors’ rights and remedies generally, and (b) the effect of general equitable principles, regardless of whether asserted in a proceeding in equity or at law.

  
 4.2 No Conflict 
  
 The execution, delivery and performance by the Investor of the Transaction
Documents do not (a) violate, conflict with or result in the breach of any provision of the certificate of incorporation or the by-laws of the Investor, (b) conflict with or violate any Law or Governmental Order applicable to the Investor or any of
its assets, properties or businesses or (c) conflict with, or result in any breach of, constitute a default (or event which with the giving of notice or lapse of time, or both, would become a default) under, require any consent under, or give to
others any rights of termination, amendment, acceleration, suspension, revocation or cancellation of, any note, bond, mortgage or indenture, contract, agreement, lease, sublease, license, permit, franchise or other instrument or arrangement to which
the Investor is a party, which, in the case of this clause (c), would adversely affect the ability of the Investor to carry out its obligations under, and to consummate the transactions contemplated by, the Transaction Documents. 
  

 13 

 4.3 Governmental Consents and Approvals 
  
 The execution, delivery and performance by the Investor of the Transaction
Documents does not require any consent, approval, authorization or other order of, action by, filing with, or notification to any Governmental Authority. 
  
 4.4 Brokers 
  
 No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the transactions
contemplated by the Transaction Documents based upon arrangements made by or on behalf of the Investor. 
  
 4.5 Accredited Investor and Investment Experience 
  
 The Investor is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the Securities Act. In addition, the
Investor is knowledgeable, sophisticated and experienced in making, and is qualified to make, decisions with respect to investments in securities representing an investment decision like that involved in the purchase of the shares purchased
hereunder. 
  
 4.6 Investment Intent 
  
 The Investor is acquiring the shares of Common Stock of the Company for its
own account solely for the purpose of investment and not as a nominee or agent and not with a view to, or for offer or sale in connection with, any distribution thereof. The Investor shall not, directly or indirectly, offer, sell, pledge, transfer
or otherwise dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge of) any of the shares purchased hereunder except in accordance with the Securities Act and applicable state securities laws. 
  
 4.7 Information and Risk. 
  
 (a) The Investor has requested, received, reviewed and considered all
information the Investor deems relevant in making an informed decision to purchase the shares. The Investor has had an opportunity to discuss the Company’s business, management and financial affairs with its management and also had an
opportunity to ask questions of officers of the Company that were answered to such the Investor’s satisfaction, provided that such inquiries do not impair the rights of the Investor to rely on the representations and warranties of the Company
as set forth in Article 3 herein. 
  
 (b) The Investor recognizes
that an investment in the shares involves a high degree of risk, including a risk of total loss of the Investor’s investment. The Investor is able to bear the economic risk of holding the shares for an indefinite period or complete loss of the
investment, and has knowledge and experience in the financial and business matters such that it is capable of evaluating the risks of the investment in the shares. 
  

 14 

 4.8 Legends 
  
 The Investor understands that, until such time as the shares of Common Stock issued to the Investor hereunder may be sold
under an effective registration statement under the Securities Act, or an exemption under the Securities Act and applicable state securities Laws, such shares of Common Stock will bear a restrictive legend in substantially the following form (and a
stop-transfer order may be placed against transfer of the certificates for such securities): 
  
 “The securities represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or under the securities Laws of any other
jurisdiction. These securities have been acquired for investment and not with a view to, or in connection with, the distribution thereof. The securities may not be offered, sold, pledged, transferred or assigned in the absence of an effective
registration statement for the securities under the Securities Act and applicable state securities Laws, unless sold pursuant to an exemption under the Securities Act and applicable state securities Laws.” 
  
 ARTICLE 5 
  
 COVENANTS AND AGREEMENTS 
  
 5.1 Conduct of Business 
  
 As and from the date hereof until the earlier of the Closing Date and the date that this Agreement is terminated in accordance with its terms, the Company
shall refrain from taking any action that would be inconsistent with the Registration Rights Agreement were such agreement in effect on the date hereof. 
  
 5.2 Governmental Proceedings 
  
 Each of the Parties shall promptly advise the other of the existence of the commencement of any Action or the existence of any Governmental Order, in each
case of which such Party is or becomes aware, which Action would reasonably be expected to affect the legality, validity or enforceability of this Agreement or any other Transaction Document or the consummation of any of the transactions
contemplated by this Agreement or thereby. 
  
 5.3 Listing

  
 The Company shall use its reasonable best efforts to
obtain approval for the listing on the NASDAQ (or such other national securities exchange as the Common Stock may be listed) of the shares of Common Stock purchased by the Investor, and the Company shall cooperate with the Investor with respect to
such listing. 
  
 5.4 Waiver of Antidilution Rights

  
 Investor hereby waives any anti-dilution rights Investor
may have with respect to the sale, purchase and issuance of the shares of Common Stock purchased hereunder, including any Conversion Price adjustment with respect to the sale, purchase and issuance of such shares under 
  

 15 

 Section B(5)(d) of the Company’s Certificate of Designation of Preferences and Rights of Series D Preferred Stock.
In furtherance thereof, Investor shall appear, in person or by proxy, at the Company’s Special Meeting of Stockholders for the purpose of approving the transactions contemplated by this Agreement, as will be described in a definitive proxy
statement filed by the Company with the SEC, and at every adjournment or postponement thereof, or otherwise cause its shares of the Company’s voting stock to be counted as present at such meeting for purposes of establishing a quorum and will
vote its shares in favor of both (a) the sale and issuance by the Company to Investor of the shares purchased hereunder and the other transactions contemplated hereby and (b) an amendment to the Company’s Certificate of Designation of
Preferences and Rights of Series D Preferred Stock in substantially the form of Exhibit F attached hereto. 
  
 ARTICLE 6 
  
 USE OF PROCEEDS 
  
 6.1 Research and
Development 
  
 Upon release of the Escrowed Funds to the
Company pursuant to the terms of Section 2.1(c) herein and the Escrow Agreement, the Company shall apply the $8,000,003.20 to be paid for the subscription of the shares of Common Stock toward the performance of its obligations under the Development Agreement dated as of July 30, 2003
between the Parties, as amended, and the Distribution Agreement and for general corporate purposes, including costs incurred in the manufacturing and processing of the Company’s drug products. 
  
 ARTICLE 7 
  
 CONDITIONS PRECEDENT 
  
 7.1 Conditions to the Investor’s Obligations 
  
 The obligations of the Investor to consummate the transactions contemplated by Article 2 are subject to the satisfaction, or waiver by the Investor, on
the Closing Date, of each of the following conditions: 
  
 (a)
Representations and Warranties; Covenants and Agreements. The representations and warranties of the Company contained in this Agreement shall have been true and correct in all material respects when made and shall be true and correct in all
material respects as of the Closing with the same force and effect as if made as of the Closing, other than such representations and warranties as are made as of another date, which shall be true and correct in all material respects as of such date
(provided, however, that if any portion of any representation or warranty is already qualified by materiality, for purposes of determining whether this Section 7.1(a) has been satisfied with respect to such portion of such representation or
warranty, such portion of such representation or warranty as so qualified must be true and correct in all respects), and the covenants and agreements contained in this Agreement to be complied with by the Company on or before the Closing shall have
been complied with in all material respects, and the Investor shall have received a certificate of the Company to such effect signed by a duly authorized officer thereof; 
  

 16 

 (b) No Proceedings. No Governmental Order shall be in effect, and no Action shall be pending, in
each case against the Company or the Investor, seeking to restrain the consummation of the transactions contemplated by the Transaction Documents; 
  
 (c) No Insolvency Event. Neither the Company nor either of its Subsidiaries has made a general assignment for the benefit of creditors, nor has any
proceeding been instituted by or against the Company, the Company or any Subsidiary seeking to adjudicate any of them a bankrupt or insolvent, or seeking liquidation, winding up or reorganization, arrangement, adjustment, protection, relief or
composition of its debts under any Law relating to bankruptcy, insolvency or reorganization; and 
  
 (d) Consents. The Company shall have received all consents referred to in Section 3.6; provided, however, any consents required for the
Company’s sale and issuance of the shares purchased hereunder, including NASDAQ approval, shall not be required at the Closing but shall be required prior to release of the Escrowed Funds to the Company as provided in Section 2.1(c) and the
Escrow Agreement. 
  
 7.2 Conditions to the Company’s
Obligations 
  
 The obligations of the Company to consummate
the transactions contemplated by Article 2 are subject to the satisfaction, or waiver by the Company, on the Closing Date, of each of the following conditions: 
  

(a) Representations and Warranties; Covenants and Agreements. The representations and warranties of the Investor contained in this Agreement
shall have been true and correct in all material respects when made and shall be true and correct in all material respects as of the Closing, with the same force and effect as if made as of the Closing Date, other than such representations and
warranties as are made as of another date, which shall be true and correct in all material respects as of such date (provided, however, that if any portion of any representation or warranty is already qualified by materiality, for purposes of
determining whether this Section 7.2(a) has been satisfied with respect to such portion of such representation or warranty, such portion of such representation or warranty as so qualified must be true and correct in all respects), and the covenants
and agreements contained in this Agreement to be complied with by the Investor on or before the Closing shall have been complied with in all material respects, and the Company shall have received a certificate from the Investor to such effect signed
by a duly authorized officer thereof; and 
  
 (b) No
Proceedings. No Governmental Order shall be in effect, and no Action shall be pending, in each case against the Company or the Investor, seeking to restrain the consummation of the transactions contemplated by the Transaction Documents.

  

 17 

 ARTICLE 8 
  

INDEMNIFICATION 
  
 8.1 Survival of Representations, Warranties and Indemnities 
  
 (a) Unless this Agreement is earlier terminated pursuant to Article 9, the representations, warranties and indemnities of
the Company contained in this Agreement shall survive the Closing Date and remain in full force and effect until the second anniversary of the Closing Date; provided, however, that Sections 3.3 and 3.12 shall survive indefinitely. Neither the period
of survival nor the liability of the Company with respect to its representations, warranties and indemnities shall be reduced by any investigation made at any time by or on behalf of the Investor. If written notice of a claim has been given prior to
the expiration of the applicable representations, warranties and indemnities by the Investor to the Company, then the relevant representations, warranties and indemnities shall survive as to such claim, until such claim has been finally resolved.

  
 (b) Unless this Agreement is earlier terminated pursuant to
Article 9, the representations, warranties and indemnities of the Investor contained in this Agreement shall survive the Closing Date and remain in full force and effect until the second anniversary thereof; provided, however, that Section 4.4 shall
survive indefinitely. Neither the period of survival nor the liability of the Investor with respect to the Investor’s representations, warranties and indemnities shall be reduced by any investigation made at any time by or on behalf of the
Company. 
  
 8.2 Indemnification by the Company 

 
 The Investor and its Affiliates, officers, directors, employees, agents,
successors and assigns (each, an “Investor Indemnified Party”) shall be indemnified and held harmless by the Company for and against any and all liabilities, losses, damages, claims, costs and expenses, interest, awards, judgments
and penalties (including, without limitation, reasonable attorneys’ and consultants’ fees and expenses) actually suffered or incurred by them (including, without limitation, any Action brought or otherwise initiated by any of them)
(hereinafter a “Loss”), arising out of or resulting from the breach of any representation or warranty, covenant or agreement made by the Company contained in this Agreement. To the extent that the undertakings of the Company set
forth in this Section 8.2 may be unenforceable, the Company shall contribute the maximum amount that it is permitted to contribute under applicable Law to the payment and satisfaction of all Losses incurred by the Investor Indemnified Parties.

  
 8.3 Indemnification by the Investor 
  
 The Company and its Affiliates, officers, directors, employees, agents,
successors and assigns (each a “Company Indemnified Party”) shall be indemnified and held harmless by the Investor for and against any and all Losses arising out of or resulting from the breach of any representation or warranty,
covenant or agreement made by the Investor contained in this Agreement. To the extent that the Investor’s undertakings set forth in this Section 8.3 may be unenforceable, the Investor shall contribute the maximum amount that it is permitted to
contribute under applicable Law to the payment and satisfaction of all Losses incurred by the Company Indemnified Parties. 
  

 18 

 8.4 Treatment for Tax Purposes 
  
 To the extent permitted by Law, the Parties agree, solely for Tax purposes, to treat all payments made under this Article 8,
under any other indemnity provision contained in this Agreement, and for any misrepresentations or breach of warranties or covenants, as adjustments to the consideration paid by the Investor under Article 2 for all Tax purposes, except to the extent
the Law of a particular jurisdiction provides otherwise. 
  
 8.5 Limitations on Indemnification 
  
 The
indemnification obligations of the Company and the Investor for breach of representation or warranty pursuant to Section 8.2 and Section 8.3, respectively, shall not be effective unless the aggregate dollar amount of all Losses that would otherwise
be indemnifiable pursuant thereto exceeds $1,000,000 (“Threshold Amount”), at which time the indemnification obligations shall be effective as to all Losses, including the Threshold Amount; provided, however, that the Threshold
Amount shall not apply to any Losses arising out of or relating to Section 3.3. The indemnification obligations of the Company and the Investor pursuant to Section 8.2 and 8.3, respectively, shall be effective only until the dollar amount paid in
respect of Losses under such Section aggregates to $8,000,003.20 and no indemnification pursuant to such provisions shall be payable thereafter. 
  
 ARTICLE 9 
  
 TERMINATION 
  
 9.1 Termination 

 
 This Agreement may be terminated at any time prior to the Closing:

  
 (a) by either the Company or the Investor if the Closing
(excluding the satisfaction of the conditions for the release of the Escrowed Funds by the Escrow Agent to the Company as provided in Section 2.1(c) of this Agreement) shall not have occurred by August 1, 2005; provided, however, that the right to
terminate this Agreement under this Section 9.1(a) shall not be available to any party whose failure to fulfill any obligation under this Agreement shall have been the cause of, or shall have resulted in, the failure of the Closing to occur on or
prior to such date; 
  
 (b) by either the Investor or the Company
in the event that any Governmental Authority shall have issued an order, decree or ruling or taken any other action restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement and such order, decree, ruling or
other action shall have become final and nonappealable; or 
  
 (c)
by the mutual written consent of the Company and the Investor. 
  

 19 

 9.2 Effect of Termination 
  
 In the event of termination of this Agreement as provided in Section 9.1, all further obligations of the Parties under this
Agreement shall terminate, except for those set forth in Articles 8, 9, 10 and 11 (other than Section 11.1) and that nothing herein shall relieve either party from liability for any breach of this Agreement. 
  
 ARTICLE 10 
  
 CONFIDENTIALITY 
  
 10.1 Confidentiality 
  
 The Receiving Party shall maintain Confidential Information in confidence,
and shall not disclose, divulge or otherwise communicate such Confidential Information to others, or use it for any purpose, except pursuant to, and in order to carry out, the terms and objectives of this Agreement. The Receiving Party hereby shall
exercise every reasonable precaution to prevent and restrain the unauthorized disclosure of such Confidential Information by any of its directors, officers, employees, consultants, subcontractors, or agents. Upon termination of this Agreement, or as
soon as practicable following the Closing, each Party hereby shall return to the other Party, upon demand, all Confidential Information in its possession or, upon demand, to destroy such Confidential Information and provide a certificate to the
other Party of such destruction signed by an officer of the destroying Party. 
  
 10.2 Release from Restrictions 
  
 The provisions of Section 10.1 shall not apply to any information disclosed hereunder that: 
  
 (a) is lawfully disclosed to the Receiving Party by an independent, unaffiliated third party rightfully in possession of the Confidential Information and
under no confidentiality or fiduciary obligation not to make disclosure; 
  
 (b) becomes published or generally known to the public through no fault or omission on the part of the Receiving Party; 
  
 (c) is developed independently by the Receiving Party without access to the Confidential Information of the Disclosing Party; 
  
 (d) is legally required to be disclosed to the FDA; provided, however, the
Receiving Party shall continue to treat such information as confidential pursuant to Section 10.1 unless and until such information becomes published or generally known to the public through no fault or omission on the part of the Receiving Party;
or 
  
 (e) a Party is legally compelled to disclose; provided,
however, that the Receiving Party shall provide prompt written notice of such requirement to the Disclosing Party so that the Disclosing Party may seek a protective order or other remedy or waive compliance with Section 10.1; and provided further
that if such protective order or other remedy is not 
  

 20 

 obtained or the Disclosing Party waives compliance with Section 10.1, the Receiving Party shall be permitted to furnish
only that portion of such Confidential Information that is legally required to be provided and the Receiving Party shall exercise its reasonable best efforts to obtain assurances that confidential treatment shall be accorded such information.

  
 10.3 Public Announcements and Publications 

 
 Except as required by Law or by the requirements of any securities
exchange on which the securities of a Party hereto are listed, no Party to this Agreement shall make, or cause to be made, any press release or public announcement in respect of this Agreement or the transactions contemplated hereby or otherwise
communicate with any news media in respect of this Agreement or the transactions contemplated hereby without the prior written consent of the other Party. The Parties shall cooperate as to the timing and contents of any such press release or public
announcement. 
  
 ARTICLE 11 
  
 GENERAL PROVISIONS 
  
 11.1 Further Action 
  
 Each of the Parties shall use commercially reasonable efforts to take, or
cause to be taken, all appropriate action, do or cause to be done all things necessary, proper or advisable under applicable Law, and to execute and deliver such documents and other papers, as may be required to carry out the provisions of this
Agreement and consummate and make effective the transactions contemplated hereby. 
  
 11.2 Expenses 
  
 Except
as otherwise specified in this Agreement, all costs and expenses, including, without limitation, fees and disbursements of counsel, financial advisors and accountants, incurred in connection with this Agreement and the transactions contemplated by
this Agreement shall be paid by the Party incurring such costs and expenses. 
  
 11.3 Notices 
  
 All
notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given or made by delivery in person, by an internationally recognized overnight courier service, by telecopy or registered or certified mail
(postage prepaid, return receipt requested) to the respective Parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 11.3): 
  

 21 

	 	(a)	if to the Company: 

  

	 	    	Corautus Genetics Inc. 

	 	    	75 Fifth Street, NW 

	 	    	Suite 313 

	 	    	Atlanta, GA 30318 

	 	    	Telecopy: (404) 526-6218 

	 	    	Attention: Chief Executive Officer 

  

	 	    	with a copy to: 

  

	 	    	McKenna Long & Aldridge LLP 

	 	    	303 Peachtree Street, Suite 5300 

	 	    	Atlanta, GA 30308 

	 	    	Telecopy: (404) 527-4198 

	 	    	Attention: Robert E. Tritt 

  

	 	(b)	if to the Investor: 

  

	 	    	Boston Scientific Corporation 

	 	    	One Boston Scientific Place 

	 	    	Natick, MA 01760-1537 

	 	    	Telecopy: (508) 650 8956 

	 	    	Attention: General Counsel 

  
 Any notice, if mailed and properly addressed with postage prepaid or if properly addressed and sent by pre-paid courier service, shall be deemed given
when received; any notice, if transmitted by facsimile, shall be deemed given when the confirmation of transmission thereof is received by the transmitter. 
  
 11.4 Interpretation and Rules of Construction 
  
 In this Agreement, except to the extent that the context otherwise requires: 
  
 (a) when a reference is made in this Agreement to an Article, Section, Exhibit or Schedule, such reference is to an Article
or Section of, or a Schedule to, this Agreement unless otherwise indicated; 
  
 (b) the table of contents and headings in this Agreement are for reference purposes only and do not affect in any way the meaning or interpretation of this Agreement; 
  
 (c) whenever the words “include”, “includes” or
“including” are used in this Agreement, they are deemed to be followed by the words “without limitation”; 
  
 (d) the words “hereof”, “herein” and “hereunder” and words of similar import, when used in this Agreement, refer to this
Agreement as a whole and not to any particular provision of this Agreement; 
  

 22 

 (e) all terms defined in this Agreement have such defined meanings when used in any certificate or other
document made or delivered pursuant hereto, unless otherwise defined therein; 
  
 (f) the definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms; 
  
 (g) any Law defined or referred to herein or in any agreement or instrument that is referred to herein means such Law or statute as from time to time
amended, modified or supplemented, including by succession of comparable successor Laws; 
  
 (h) references to a Person are also to its permitted successors and assigns; 
  
 (i) the use of “or” is not intended to be exclusive unless expressly indicated otherwise; and 
  
 (j) all references to currency, monetary values and dollars shall mean United
States (U.S.) dollars and all payments hereunder shall be made in United States dollars. 
  
 11.5 Severability 
  
 If
any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any Law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect for so long as the
economic or legal substance of the transactions contemplated by this Agreement is not affected in any manner materially adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being
enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner in order that the transactions contemplated by this Agreement are
consummated as originally contemplated to the greatest extent possible. 
  
 11.6 Entire Agreement 
  
 The Transaction
Documents constitute the entire agreement of the Parties with respect to the subject matter thereof and supersede all prior agreements and undertakings, both written and oral, among the Parties with respect to the subject matter hereof and thereof.

  
 11.7 Assignment 
  
 This Agreement shall be binding upon and inure to the benefit of the Parties
hereto and their respective successors and permitted assigns. Neither Party may assign this Agreement without the prior written consent of the other Party. No assignment by either Party permitted hereunder shall relieve the applicable Party of its
then-existing obligations under this Agreement. 
  

 23 

 11.8 No Third Party Beneficiaries 
  
 This Agreement shall be binding upon and inure solely to the benefit of the Parties and their permitted assigns and nothing
herein, express or implied, is intended to or shall confer upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever. 
  
 11.9 Amendment 
  
 This Agreement may not be amended or modified except by an instrument in writing signed by authorized representatives of the Company and the Investor.

  
 11.10 No Waiver 
  
 The delay or failure of either Party to enforce at any time for any period
the provisions of or any rights deriving from this Agreement shall not be construed to be a waiver of such provisions or rights or the right of such Party thereafter to enforce such provisions. 
  
 11.11 Dispute Resolution 
  
 Except to the limited extent necessary to (i) avoid expiration of a claim,
(ii) comply with deadlines under applicable Law, or (iii) obtain interim relief, including injunctive relief, to preserve the status quo or prevent irreparable harm, neither Party shall file an action or institute legal proceedings with respect to
any dispute, controversy, or claim arising out of this Agreement or the validity, interpretation, breach or termination thereof, including claims seeking redress or asserting rights under any Law, until: 
  
 (a) the aggrieved Party has given the other Party written notice
(“Notice of Disagreement”), in accordance with Section 11.3 of this Agreement, of its grievance setting forth the basis for such dispute and the remedy desired; 
  
 (b) the other Party has failed to provide a prompt and effective remedy (in the view of the aggrieved Party); 
  
 (c) the aggrieved Party has requested in writing senior executives for both
Parties to promptly meet and discuss the matter detailed in the Notice of Disagreement in order to consider informal and amicable means of resolution; and 
  
 (d) (i) the senior executives for both Parties have met at least three times and have not been able to resolve the dispute to the mutual satisfaction of
the Parties or (ii) more than sixty (60) Business Days have passed since the date of the Notice of Disagreement. 
  
 11.12 Governing Law 
  
 This Agreement shall be governed by, and construed in accordance with, the Laws of the State of New York. The Parties unconditionally and irrevocably
agree and consent to the exclusive jurisdiction of the federal and state courts located in the Borough of Manhattan, State of New York and waive any objection with respect thereto, for the purpose of any action, suit or proceeding arising out of or
relating to this Agreement or the transactions contemplated hereby, and further agree not to commence any such action, suit or proceeding except in any such court. 
  

 24 

 11.13 Counterparts 
  
 This Agreement may be executed and delivered (including by facsimile transmission) in one or more counterparts, and by the
different Parties in separate counterparts, each of which when executed shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this
Agreement by facsimile shall be effective as delivery of a manually executed counterpart of this Agreement. 
  
 11.14 Waiver of Jury Trial 
  
 Each of the Company and the Investor hereby knowingly, voluntarily and irrevocably waives all right to trial by jury in any action, proceeding or
counterclaim (whether based on contract, tort or otherwise) arising out of or relating to this Agreement or any course of conduct, course of dealing or statements (whether oral or written) or actions of the Company or the Investor in the
negotiation, administration, performance or enforcement thereof. 
  
 11.15 Construction; Interpretation 
  
 The
Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption
or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement. 
  
 11.16 Specific Performance 
  
 The Parties hereto agree that irreparable damage would occur in the event any provision of this Agreement was not performed in accordance with the terms
hereof and that the Parties shall be entitled to specific performance of the terms hereof, in addition to any other remedy at law or equity. 
  
 [Signature Page Follows] 
  

 25 

 IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed as of the date first
written above. 
  

			
	CORAUTUS GENETICS INC.
		
	By:	 	 /s/ Richard E. Otto

	Name:	 	Richard E. Otto
	Title:	 	Chief Executive Officer
	
	BOSTON SCIENTIFIC CORPORATION
		
	By:	 	 /s/ Lawrence C. Best

	Name:	 	Lawrence C. Best
	Title:	 	Executive Vice President &
	 	 	Chief Financial Officer

 Exhibit A 
  

Form of Registration Rights Agreement 
  
 Exhibit B 
  
 Form of Amendment to Loan Agreement 
  
 Exhibit C 
  
 Form of
Amendment to Distribution Agreement 
  
 Exhibit D

  
 Form of Escrow Agreement 

 Exhibit E 
  

Form of Instructions to Transfer Agent 
  
                     ,
200     
  
                                      
                                      
                                      
  
 Dear             ,

  
 Please accept this letter as authorization to issue one
certificate to Boston Scientific Corporation for              shares of common stock, par value $0.001 per share, of Corautus Genetics Inc. (“Corautus”), and so record such
issuance on the stock register. The certificate shall be dated             , 200    . In addition, please affix the following legend on the certificate:

  
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES LAWS OF ANY OTHER JURISDICTION. THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE
DISTRIBUTION THEREOF. THE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, UNLESS SOLD
PURSUANT TO AN EXEMPTION UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. 
  
 Finally, please deliver the new certificate to the stockholder’s address of record, which is as follows: 
  
 Craig Smith, Esq. 
 One Prime Park Way

 Natick, MA 01760-1537 
  
 Thank you for your attention in this matter. Should you have any questions, please do not hesitate to contact me. 
  

	
	Sincerely,
	
	Jack Callicutt
	Vice President- Finance and Administration

  

	cc:	Richard E. Otto, Chief Executive Officer 

 Exhibit F 
  

Form of Amendment to Series D Certificate of Designation 
  
 Exhibit G 
  
 Form of Legal Opinion

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