Document:

FORM OF SECURITIES PURCHASE AGREEMENT, DATED FEBRUARY 26, 2004

 Exhibit 10.1 
  
 EXECUTION VERSION 
  
 SECURITIES PURCHASE AGREEMENT 
  
 This Securities Purchase Agreement (this “Agreement”) is dated as of February 26, 2004 by and between Orchid BioSciences, Inc., a
Delaware corporation (the “Company”), and each purchaser identified on the signature pages hereto (each, a “Purchaser” and collectively, the “Purchasers”). 
  
 WHEREAS, subject to the terms and conditions set forth in this Agreement and
pursuant to Section 4(2) of the Securities Act of 1933, as amended, the Company desires to issue and sell to each Purchaser, and each Purchaser, severally and not jointly, desires to purchase from the Company, certain securities of the Company as
more fully described in this Agreement. 
  
 NOW, THEREFORE, IN
CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and each of the Purchasers agree as follows: 
  
 ARTICLE I 
 DEFINITIONS 
  
 1.1 Definitions. In addition to the terms defined elsewhere in this Agreement, the following terms have the meanings indicated: 
  
 “Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled
by or is under common control with a Person, as such terms are used in and construed under Rule 144 under the Securities Act. 
  
 “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York
are authorized or required by law to remain closed. 
  
 “Closing” means the closing of the purchase and sale of the Shares and the Warrants pursuant to Section 2.1. 
  
 “Closing Date” means the date of the Closing. 
  
 “Closing Price” means, for any date, the price determined by the first of the following
clauses that applies: (a) if the Common Stock is then listed or quoted on an Eligible Market or any other national securities exchange, the closing price per share of the Common Stock for such date (or the nearest preceding date) on the primary
Eligible Market or exchange on which the Common Stock is then listed or quoted; (b) if prices for the Common Stock are then quoted on the OTC Bulletin Board, the closing bid price per share of the Common Stock for such date (or the nearest preceding
date) so quoted; (c) if prices for the Common Stock are then reported in the “Pink Sheets” published by the National Quotation Bureau Incorporated (or a similar organization or agency succeeding to its functions of reporting prices), the
most recent closing bid price per share of the Common Stock so reported; or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by a majority-in-interest of the
Purchasers. 

 “Commission” means the Securities and Exchange Commission. 

 
 “Common Stock” means the common stock of
the Company, par value $0.001 per share. 
  
 “Common Stock Equivalents” means, collectively, Options and Convertible Securities. 
  
 “Company Counsel” means Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., counsel to the Company. 
  
 “Convertible Securities” means any stock or
securities (other than Options) convertible into or exercisable or exchangeable for Common Stock. 
  
 “Effective Date” means the date that the Registration Statement is first declared effective by the Commission.

  
 “Eligible Market” means any
of the New York Stock Exchange, the American Stock Exchange, the NASDAQ National Market or the NASDAQ Small Cap Market. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Excluded Stock” means the issuance of
Common Stock (A) upon exercise or conversion of any options or other securities described in Schedule 3.1(f) (provided that such exercise or conversion occurs in accordance with the terms thereof, without amendment or modification, and that
the applicable exercise or conversion price or ratio is described in such schedule), (B) in connection with any grant of options to employees, officers, directors or consultants of the Company pursuant to a stock option plan duly adopted by the
Company’s board of directors or in respect of the issuance of Common Stock upon exercise of any such options, (C) pursuant to a bona fide firm commitment underwritten public offering with a nationally recognized underwriter (excluding any
equity line) in an aggregate offering amount greater than $40,000,000, (D) in connection with any collaboration or joint venture approved by the Company’s board of directors and not for the principal purpose of raising cash or (E) pursuant to
the Company’s bona fide acquisition of another corporation, or all or a portion of its assets, by merger, purchase of assets or stock or other corporate reorganization in each case, as approved by the Company’s board of directors and not
for the principal purpose of raising capital. 
  
 “Filing Date” means March 28, 2004, with respect to the initial Registration Statement required to be filed hereunder, and, with respect to any additional Registration Statements that may be required pursuant to Section
6.1(g), the 30th day following the date of delivery of the Call Notice (as defined in the Warrant). 
  
 “Lien” means any lien, charge, claim, security interest, encumbrance, right of first refusal or other restriction.

  

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 “Losses” means any and all losses, claims, damages, liabilities,
settlement costs and expenses, including, without limitation, costs of preparation and reasonable attorneys’ fees. 
  
 “Options” means any rights, warrants or options to subscribe for or purchase Common Stock or Convertible Securities.

  
 “Per Share Purchase Price”
means $1.92. 
  
 “Person” means
any individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or any court or other federal, state,
local or other governmental authority or other entity of any kind. 
  
 “Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened.

  
 “Prospectus” means the
prospectus included in the Registration Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A
promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by the Registration Statement, and all other amendments
and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus. 
  
 “Purchaser Counsels” has the meaning set forth in Section 6.2(a). 
  
 “Registrable Securities” means any Common
Stock (including Underlying Shares) issued or issuable pursuant to the Transaction Documents, together with any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the
foregoing. 
  
 “Registration
Statement” means the initial registration statement required to be filed under Article VI and any additional registration statements contemplated by Section 6.1(g), including (in each case) the Prospectus, amendments and supplements to such
registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in such registration statement. 
  
 “Required Effectiveness Date” means May 27,
2004, with respect to the initial Registration Statement required to be filed hereunder, and, with respect to any additional Registration Statements that may be required pursuant to Section 6.1(g), the 75th day following the date of delivery
of the Call Notice. 
  
 “Rule
144,” “Rule 415,” and “Rule 424” means Rule 144, Rule 415 and Rule 424, respectively, promulgated by the Commission pursuant to the Securities Act, as such Rules may be amended from time to time, or any
similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 
  

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 “Securities” means the Shares, the Warrants and the Underlying Shares.

  
 “Securities Act” means the
Securities Act of 1933, as amended. 
  
 “Shares” means an aggregate of 15,789,000 shares of Common Stock, which are being issued and sold to the Purchasers at the Closing. 
  

“Subsidiary” means any Person in which the Company, directly or indirectly, owns capital stock or holds an equity or
similar interest that are required to be listed in Schedule 3.1(a). 
  
 “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 and traded on any Eligible
Market, then a day on which trading occurs on the NASDAQ National Market (or any successor thereto), or (c) if trading does not occur on the NASDAQ National Market (or any successor thereto), any Business Day. 
  
 “Trading Market” means the NASDAQ National
Market or any other Eligible Market on which the Common Stock is then listed or quoted. 
  
 “Transaction Documents” means this Agreement, the Warrants, the Transfer Agent Instructions and any other documents or
agreements executed in connection with the transactions contemplated hereunder. 
  
 “Transfer Agent” means American Stock Transfer & trust Company, or any other transfer agent selected by the Company.

  
 “Transfer Agent
Instructions” means the Irrevocable Transfer Agent Instructions, in the form of Exhibit D, executed by the Company and delivered to and acknowledged in writing by the Transfer Agent. 
  
 “Underlying Shares” means the shares of
Common Stock issuable upon exercise of the Warrants and Exchange Warrants (as defined in the Warrant) and any securities issued in exchange for or in respect of such shares. 
  
 “VWAP” means the average of the daily volume weighted average trading price (the total
dollar amount traded on each day divided by trading volume for such day) of the Common Stock for the regular Trading Day as reported by Bloomberg, LP at close of such Trading Day. 
  
 “Warrants” means, collectively, the Common Stock purchase warrants issued and sold under
this Agreement, in the form of Exhibit A, and any warrants issued upon exercise of such warrants. 
  

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 ARTICLE II 
 PURCHASE AND SALE 
  
 2.1
Closing. Subject to the terms and conditions set forth in this Agreement, at the Closing the Company shall issue and sell to each Purchaser, and each Purchaser shall, severally and not jointly, purchase from the Company, such number of Shares
and a Warrant to purchase such number of Underlying Shares, each as indicated below such Purchaser’s name on the signature page of this Agreement, for an aggregate purchase price for such Purchaser as indicated below such Purchaser’s name
on the signature page of this Agreement. The Closing shall take place at the offices of Company Counsel on February 27, 2004, or at such other location or time as the parties may agree. 
  
 2.2 Closing Deliveries. 
  
 (a) At the Closing, the Company shall deliver or cause to be delivered to each Purchaser the following: 
  
 (i) one or more stock certificates, free and clear of all
restrictive and other legends (except as expressly provided in Section 4.1(b) hereof), evidencing the number of Shares indicated below such Purchaser’s name on the signature page of this Agreement, registered in the name of such Purchaser;

  
 (ii) a Warrant, registered in the name of
such Purchaser, pursuant to which such Purchaser shall have the right to acquire the number of Underlying Shares indicated below such Purchaser’s name on the signature page of this Agreement, on the terms set forth therein; 
  
 (iii) a legal opinion of Company Counsel, in the form of
Exhibit B, executed by such counsel and delivered to the Purchasers; and 
  
 (iv) duly executed Transfer Agent Instructions acknowledged by the Transfer Agent. 
  
 (b) At the Closing, each Purchaser shall deliver or cause to
be delivered to the Company an amount equal to product of (i) the number of Shares indicated below such Purchaser’s name on the signature page of this Agreement, and (ii) the Per Share Purchase Price, in United States dollars and in immediately
available funds, by wire transfer to an account designated in writing by the Company for such purpose. 
  
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES 
  
 3.1 Representations and Warranties of the Company. The Company hereby
represents and warrants to each of the Purchasers as follows: 
  
 (a) Subsidiaries. The Company has no direct or indirect Subsidiaries other than those listed in Schedule 3.1(a). Except as disclosed in Schedule 3.1(a), the Company owns, directly or indirectly, all of the
capital stock or comparable equity interests of each 
  

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 Subsidiary free and clear of any Lien, and all the issued and outstanding shares of capital stock or
comparable equity interests of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights. 
  
 (b) Organization and Qualification. Each of the Company and the Subsidiaries is an entity duly organized, validly existing and in
good standing under the laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite corporate power and authority to own and use its properties and assets and to carry on its business as currently conducted.
Neither the Company nor any Subsidiary is in violation of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly
qualified to do business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be
so qualified or in good standing, as the case may be, could not, individually or in the aggregate, (i) materially and adversely affect the legality, validity or enforceability of any Transaction Document, (ii) have or result in a material adverse
effect on the results of operations, assets, business or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) adversely impair the Company’s ability to perform fully on a timely basis its
obligations under any of the Transaction Documents (any of (i), (ii) or (iii), a “Material Adverse Effect”). 
  
 (c) Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the
transactions contemplated by each of the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of each of the Transaction Documents by the Company and the consummation by it of the
transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further consent or action is required by the Company, its Board of Directors or its stockholders in connection
therewith. Each of the Transaction Documents has been (or upon delivery will be) duly executed by the Company and is, or when delivered in accordance with the terms hereof, will constitute, the valid and binding obligation of the Company enforceable
against the Company in accordance with its terms, except as may be limited by (i) applicable bankruptcy, insolvency, reorganization or other laws of general application relating to or affecting the enforcement of creditors rights generally, and (ii)
the effect of rules of law governing the availability of specific performance and other equitable remedies. 
  
 (d) No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the
Company of the transactions contemplated hereby and thereby do not and will not (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or
charter documents, (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation (with or
without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any
property or asset of the Company or any Subsidiary is bound or affected, except to the extent that such conflict, default, 
  

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 termination, amendment, acceleration or cancellation right could not reasonably be expected to have a
Material Adverse Effect, or (iii) result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal
and state securities laws and regulations and the rules and regulations of any self-regulatory organization to which the Company or its securities are subject), or by which any property or asset of the Company or a Subsidiary is bound or affected,
except to the extent that such violation could not reasonably be expected to have a Material Adverse Effect. 
  
 (e) Issuance of the Securities. The Securities (including the Underlying Shares) are duly authorized and, when issued and paid for
in accordance with the Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens and shall not be subject to preemptive rights or similar rights of stockholders. The Company has reserved from
its duly authorized capital stock the maximum number of shares of Common Stock issuable upon exercise of the Warrants. 
  
 (f) Capitalization. The number of shares and type of all authorized, issued and outstanding capital stock, options and other
securities of the Company (whether or not presently convertible into or exercisable or exchangeable for shares of capital stock of the Company) is set forth in Schedule 3.1(f). All such outstanding shares of capital stock are duly authorized,
validly issued, fully paid and nonassessable and have been issued in compliance with all applicable securities laws. Except as disclosed in Schedule 3.1(f), there are no outstanding options, warrants, script rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments,
understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock, or securities or rights convertible or exchangeable into shares of Common Stock. Except for customary
adjustments as a result of stock dividends, stock splits, combinations of shares, reorganizations, recapitalizations, reclassifications or other similar events, there are no anti-dilution or price adjustment provisions contained in any security
issued by the Company (or in any agreement providing rights to security holders) and the issue and sale of the Securities (including the Underlying Shares) will not obligate the Company to issue shares of Common Stock or other securities to any
Person (other than the Purchasers) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under such securities. To the knowledge of the Company, except as specifically
disclosed in Schedule 3.1(f), no Person or group of related Persons beneficially owns (as determined pursuant to Rule 13d-3 under the Exchange Act), or has the right to acquire, by agreement with or by obligation binding upon the Company, beneficial
ownership of in excess of 5% of the outstanding Common Stock, ignoring for such purposes any limitation on the number of shares of Common Stock that may be owned at any single time. 
  
 (g) SEC Reports; Financial Statements. The Company has filed all reports required to be filed by it
under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law to file such material) (the foregoing
materials being collectively referred to herein as the “SEC Reports” and, together with this Agreement 
  

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 and the Schedules to this Agreement, the “Disclosure Materials”) on a timely basis or
has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. The Company has delivered to the Purchasers true, correct and complete copies of all SEC Reports filed within the
ten (10) days preceding the date hereof. As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act and the rules and regulations of the Commission promulgated
thereunder, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, except to the extent that information contained in any SEC Report has been revised or superceded by a later filed SEC Report. The financial statements of the Company included in the SEC
Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with
United States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto, and fairly present in
all material respects the financial position of the Company and its consolidated subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to
normal, immaterial, year-end audit adjustments. All material agreements to which the Company or any Subsidiary is a party or to which the property or assets of the Company or any Subsidiary are subject are included as part of or specifically
identified in the SEC Reports. 
  
 (h)
Material Changes. Since the date of the latest audited financial statements included within the SEC Reports, except as specifically disclosed in the SEC Reports, in press releases or other “public disclosures” (as such term is
defined in Section 101(c) of Regulation FD of the Exchange Act) or in Schedule 3.1(h) (i) there has been no event, occurrence or development that, individually or in the aggregate, has had or that could result in a Material Adverse Effect, (ii) the
Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected
in the Company’s financial statements pursuant to GAAP or required to be disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting or the identity of its auditors, (iv) the Company has not
declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, and (v) the Company has not issued any equity securities
to any officer, director or Affiliate, except pursuant to existing Company stock based plans. 
  
 (i) Absence of Litigation. Except as set forth in Schedule 3.1(i), there is no action, suit, claim, proceeding, inquiry or
investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company, threatened against or affecting the Company or any of its Subsidiaries that could, individually
or in the aggregate, have a Material Adverse Effect. Schedule 3.1(i) contains a complete list and summary description of any pending or, to the knowledge of the Company, threatened proceeding against or affecting the Company or any of its
Subsidiaries that could individually or in the aggregate, have a Material Adverse Effect. 
  

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 (j) Compliance. Neither the Company nor any Subsidiary, except in each case as
could not, individually or in the aggregate, have or result in a Material Adverse Effect, (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a
default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument
to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any applicable order of any court, arbitrator or governmental body, or (iii) is in violation
of any applicable statute, rule or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and
safety and employment and labor matters. 
  
 (k)
Title to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them that is material to the business of the Company and the Subsidiaries and good and marketable title in all
personal property owned by them that is material to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for Liens as do not materially affect the value of such property and do not materially interfere
with the use made of such property by the Company and the Subsidiaries. Except as set forth in Schedule 3.1(k), any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and
enforceable leases of which the Company and the Subsidiaries are in compliance. 
  
 (l) Certain Fees. Except for the fees to Banc of America Securities LLC and Legg Mason, as co-placement agents, or described in
Schedule 3.1(l), no brokerage or finder’s fees or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the
transactions contemplated by this Agreement, and the Company has not taken any action that would cause any Purchaser to be liable for any such fees or commissions. 
  
 (m) 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 Securities 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 (i) eliminate the availability of the exemption from registration under
Regulation D under the Securities Act in connection with the offer and sale of the Securities as contemplated hereby or (ii) cause the offering of the Securities pursuant to the Transaction Documents to be integrated with prior offerings by the
Company for purposes of any applicable law, regulation or stockholder approval provisions, including, without limitation, under the rules and regulations of any Trading Market. 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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 (n) Form S-3 Eligibility. The Company is eligible to register its Common Stock for
resale by the Purchasers using Form S-3 promulgated under the Securities Act. 
  
 (o) Listing and Maintenance Requirements. Except as set forth in Schedule 3.1(o), the Company has not, in the two years preceding the date hereof, received notice (written or oral) from any Trading Market on
which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such Trading Market. The Company is in compliance with all such listing and maintenance
requirements. 
  
 (p) Registration Rights.
Except as described in Schedule 3.1(p), the Company has not granted or agreed to grant to any Person any rights (including “piggy-back” registration rights) to have any securities of the Company registered with the Commission or any other
governmental authority that have not been satisfied. 
  
 (q) Application of Takeover Protections. Except as set forth in Schedule 3.1(q), there is no control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar
anti-takeover provision under the Company’s charter documents or the laws of its state of incorporation that is or could become applicable to any of the Purchasers as a result of the Purchasers and the Company fulfilling their obligations or
exercising their rights under the Transaction Documents, including, without limitation, as a result of the Company’s issuance of the Securities and the Purchasers’ ownership of the Securities. 
  
 (r) Disclosure. 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, nonpublic information. The Company understands and confirms that each of the
Purchasers will rely on the foregoing representations in effecting transactions in securities of the Company. All disclosure provided to the Purchasers regarding the Company, its business and the transactions contemplated hereby, including the
Schedules to this Agreement, furnished by or on behalf of the Company are true and correct in all material respects and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the
statements made therein, in the light of the circumstances under which they were made, not misleading. No event or circumstance has occurred or information exists with respect to the Company or any of its Subsidiaries or its or their business,
properties, operations or financial condition, which, under applicable law, rule or regulation, requires public disclosure or announcement by the Company but which has not been so publicly announced or disclosed. The Company acknowledges and agrees
that (i) no Purchaser makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3.2 or (ii) any oral statement, commitment or promise to the
Company or, to its knowledge, any of its representatives which is or was an inducement to the Company to enter into this Agreement or otherwise. 
  

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 (s) Acknowledgment Regarding Purchasers’ Purchase of Securities. The Company
acknowledges and agrees that each of the Purchasers is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby. The Company further acknowledges
that no Purchaser is acting as a financial advisor or fiduciary of the Company or any other Purchaser (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated hereby and thereby and any advice given by
any Purchaser or any of their respective representatives or agents in connection with the Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to such Purchaser’s purchase of the Securities. The
Company further represents to each Purchaser that the Company’s decision to enter into this Agreement has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

  
 (t) Patents and Trademarks. The
Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, copyrights, licenses and other similar rights that are necessary or material for use in
connection with their respective businesses as described in the SEC Reports and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”). Except as set forth on Schedule
3.1(t), neither the Company nor any Subsidiary has received a written notice that the Intellectual Property Rights used by the Company or any Subsidiary violates or infringes upon the rights of any Person. To the knowledge of the Company, all such
Intellectual Property Rights are enforceable and, except as set forth on Schedule 3.1(t), there is no existing infringement by another Person of any of the Intellectual Property Rights. 
  
 (u) Insurance. The Company and the Subsidiaries are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged. Neither the Company nor any Subsidiary has any reason to believe that it will not
be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase in cost. 
  
 (v) Regulatory Permits. The Company and the
Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports, except where the
failure to possess such permits could not, individually or in the aggregate, have or result in a Material Adverse Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings
relating to the revocation or modification of any Material Permit. 
  
 (w) Transactions With Affiliates and Employees. Except as set forth in SEC Reports filed at least ten days prior to the date hereof, none of the officers or directors of the Company and, to the knowledge of the
Company, none of the employees of the Company is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors or the grant of stock options, restricted stock or stock pursuant
to the stock based plans described in the SEC Reports in connection with such 
  

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 service), including any contract, agreement or other arrangement providing for the furnishing of services
to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such
employee has a substantial interest or is an officer, director, trustee or partner. 
  
 (x) Internal Accounting Controls. The Company and the Subsidiaries maintain 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
GAAP 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. 
  
 (y) Solvency. After taking into account the proceeds from this transaction, based on the financial condition of the Company as of
the Closing Date, (i) the Company’s fair saleable value of its assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities (including known contingent liabilities) as
they mature; (ii) the Company’s assets do not constitute unreasonably small capital to carry on its business for the current fiscal year as now conducted and as proposed to be conducted including its capital needs taking into account the
particular capital requirements of the business conducted by the Company, and projected capital requirements and capital availability thereof; and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were
it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its debt when such amounts are required to be paid. The Company does not intend to incur debts
beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt) 
  
 (z) 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 Commission 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.

  
 3.2 Representations and Warranties of the Purchasers.
Each Purchaser hereby, as to itself only and for no other Purchaser, represents and warrants to the Company as follows: 
  
 (a) Organization; Authority. Such Purchaser is an entity duly organized, validly existing and in good standing under the laws of
the jurisdiction of its organization with the requisite corporate or partnership power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to carry out its obligations hereunder and
thereunder. The purchase by such Purchaser of the Shares and the Warrants hereunder has been duly authorized by all necessary action on the part of such Purchaser. This Agreement has been duly executed and delivered by such Purchaser and constitutes
the valid and binding obligation of such Purchaser, enforceable against it in accordance with its terms. 
  

 12 

 (b) Purchase Intent. Such Purchaser is acquiring the Securities for investment
purposes only and not with a view to or for distributing or reselling such Securities or any part thereof, without prejudice, however, to such Purchaser’s right, subject to the provisions of this Agreement, at all times to sell or otherwise
dispose of all or any part of such Securities pursuant to an effective registration statement under the Securities Act or under an exemption from such registration and in compliance with applicable federal and state securities laws. Nothing
contained herein shall be deemed a representation or warranty by such Purchaser to hold Securities for any period of time. 
  
 (c) Purchaser Status. At the time such Purchaser was offered the Shares and the Warrants, it was, and at the date hereof it is, an
“accredited investor” as defined in Rule 501(a) under the Securities Act. Such Purchaser is not a member of the National Association of Securities Dealers, Inc. 
  
 (d) Experience of such Purchaser. Such Purchaser, either alone or together with its representatives,
has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated the merits and risks of such investment.
Such Purchaser is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment. 
  
 (e) Access to Information. Such Purchaser acknowledges that it has reviewed the Disclosure Materials
and has been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Securities and the merits and risks
of investing in the Securities; (ii) access to information about the Company and the Subsidiaries and their respective financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its
investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment.
Neither such inquiries nor any other investigation conducted by or on behalf of such Purchaser or its representatives or counsel shall modify, amend or affect such Purchaser’s right to rely on the truth, accuracy and completeness of the
Disclosure Materials and the Company’s representations and warranties contained in the Transaction Documents. 
  
 (f) Illegal Transactions. Purchaser will not, prior to the Effective Date, enter into any transaction that is in violation of the
Securities Act. 
  
 (g) No Legal, Tax or
Investment Advice. Each Purchaser understands that nothing in this Agreement or any other materials presented by or on behalf of the Company to the Purchaser in connection with the purchase of the Securities constitutes legal, tax or investment
advice. Each Purchaser has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase 
  

 13 

 of the Securities. Such Purchaser understands that the Agent has acted solely as the agent of the Company
in this placement of the Securities, and that the Agent makes no representation or warranty with regard to the merits of this transaction or as to the accuracy of any information such Purchaser may have received in connection therewith. Such
Purchaser acknowledges that he has not relied on any information or advice furnished by or on behalf of the Agent. 
  
 ARTICLE IV 
 OTHER AGREEMENTS OF THE PARTIES 
  
 4.1 Transfer Restrictions. 
  
 (a) Each Purchaser covenants and agrees that Securities will
only be disposed of pursuant to an effective registration statement under the Securities Act or pursuant to an available exemption from the registration requirements of the Securities Act, and in compliance with any applicable state securities laws.
In connection with any transfer of Securities other than pursuant to an effective registration statement or to the Company or pursuant to Rule 144(k), except as otherwise set forth herein, the Company may require the transferor to provide to the
Company an opinion of counsel selected by the transferor, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration under the Securities Act.
Notwithstanding the foregoing, the Company hereby consents to and agrees to register on the books of the Company and with its Transfer Agent, without any such legal opinion, any transfer of Securities by a Purchaser to an Affiliate of such
Purchaser, provided that the transferee certifies to the Company that it is an “accredited investor” as defined in Rule 501(a) under the Securities Act. 
  
 (b) The Purchasers agree to the imprinting, so long as is required by this Section 4.1(b), of the
following legend on any certificate evidencing Securities: 
  
 [NEITHER] THESE SECURITIES [NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE] HAVE [NOT] BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. NOTWITHSTANDING THE FOREGOING, THESE SECURITIES [AND THE SECURITIES ISSUABLE UPON
EXERCISE OF THESE SECURITIES] MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY SUCH SECURITIES. 
  

 14 

 Certificates evidencing Securities shall not be required to contain such legend or any other legend (i) while a
Registration Statement covering the resale of such Securities is effective under the Securities Act, or (ii) following any sale of such Securities pursuant to Rule 144, or (iii) if such Securities are eligible for sale under Rule 144(k), or (iv) if
such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the Staff of the Commission). The Company shall cause its counsel to issue the legal opinion included in
the Transfer Agent Instructions to the Transfer Agent on the Effective Date. Following the Effective Date or at such earlier time as a legend is no longer required for certain Securities, the Company will no later than three Trading Days following
the delivery by a Purchaser to the Company or the Transfer Agent of a legended certificate representing such Securities, deliver or cause to be delivered to such Purchaser a certificate representing such Securities that is free from all restrictive
and other legends. The Company may not make any notation on its records or give instructions to any transfer agent of the Company that enlarge the restrictions on transfer set forth in this Section. For so long as any Purchaser owns Securities, the
Company will not effect or publicly announce its intention to effect any exchange, recapitalization or other transaction that effectively requires or rewards physical delivery of certificates evidencing the Common Stock. 
  
 (c) The Company acknowledges and agrees that a Purchaser may
from time to time pledge or grant a security interest in some or all of the Securities in connection with a bona fide margin agreement or other loan or financing arrangement secured by the Securities and, if required under the terms of such
agreement, loan or arrangement, such Purchaser may transfer pledged or secured Securities to the pledgees or secured parties. Such a pledge or transfer would not be subject to approval of the Company and no legal opinion of the pledgee, secured
party or pledgor shall be required in connection therewith. Further, no notice shall be required of such pledge. At the appropriate Purchaser’s expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured
party of Securities may reasonably request in connection with a pledge or transfer of the Securities, including the preparation and filing of any required prospectus supplement under Rule 424(b)(3) of the Securities Act or other applicable provision
of the Securities Act to appropriately amend the list of selling stockholders thereunder. Notwithstanding the foregoing, each Purchaser agrees that no such pledge or transfer shall be made in violation of the Securities Act. 
  
 4.2 Furnishing of Information. As long as any Purchaser owns
Securities, the Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act. Upon the
request of any Purchaser, the Company shall deliver to such Purchaser a written certification of a duly authorized officer as to whether it has complied with the preceding sentence. As long as any Purchaser owns Securities, if the Company is not
required to file reports pursuant to such laws, it will prepare and furnish to the Purchasers and make publicly available in accordance with paragraph (c) of Rule 144 such information as is required for the Purchasers to sell the Securities under
Rule 144. The Company further covenants that it will take such further action as any holder of Securities may reasonably request to satisfy the provisions of Rule 144 applicable to the issuer of securities relating to transactions for the sale of
securities pursuant to Rule 144. 
  

 15 

 4.3 Integration. The Company shall not, and shall use its best efforts to ensure that no Affiliate
of the Company shall, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that
would require the registration under the Securities Act of the sale of the Securities to the Purchasers, or that would be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any Trading Market.

  
 4.4 Reservation of Securities. The Company shall
maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant to the Transaction Documents in such amount as may be required to fulfill its obligations in full under the Transaction Documents. In the event that at any time
the then authorized shares of Common Stock are insufficient for the Company to satisfy its obligations in full under the Transaction Documents, the Company shall promptly take such actions as may be required to increase the number of authorized
shares. 
  
 4.5 Subsequent Placements. 
  
 (a) From the date hereof until 30 Trading Days following the
Effective Date (the “Blockout Period”), the Company will not, directly or indirectly, offer, sell, grant any option to purchase, or otherwise dispose of (or announce any offer, sale, grant or any option to purchase or other
disposition of) any of its or the Subsidiaries’ 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 or Common Stock Equivalents (any such offer, sale, grant, disposition or announcement being referred to as a “Subsequent Placement”). 
  
 (b) The Blockout Period set forth in the preceding paragraph
(a) shall be extended for the number of Trading Days during such period in which (i) trading in the Common Stock is suspended by any Trading Market, (ii) the Registration Statement is not effective, or (iii) the prospectus included in the
Registration Statement may not be used by the Purchasers for the resale of Registrable Securities thereunder. 
  
 (c) From the Closing Date until the one year anniversary thereof, the Company will not, directly or indirectly, effect any Subsequent
Placement (other than a registered offering of shares of Common Stock) unless the Company shall have first complied with this Section 4.5(c). 
  
 (i) The Company shall deliver to each Purchaser that has purchased at least 1,000,000 Shares hereunder (each a “Substantial
Purchaser”) a written notice (the “Offer”) of any proposed or intended issuance or sale or exchange of the securities being offered (the “Offered Securities”) in a Subsequent Placement, which Offer shall
(w) identify and describe the Offered Securities, (x) describe the price and other terms upon which they are to be issued, sold or exchanged, and the number or amount of the Offered Securities to be issued, sold or exchanged, (y) identify, to the
extent known, the Persons 
  

 16 

 or entities to which or with which the Offered Securities are to be offered, issued, sold or exchanged
and (z) offer to issue and sell to or exchange with each such Substantial Purchaser a pro-rata portion of 33% of the Offered Securities, based on such Substantial Purchaser’s pro rata portion of the aggregate purchase price paid by all
Substantial Purchasers for all of the Shares purchased hereunder by the Substantial Purchasers (the “Basic Amount”), and with respect to each Substantial Purchaser that elects to purchase its Basic Amount, any additional portion of
the Offered Securities attributable to the Basic Amounts of other Substantial Purchasers as such Substantial Purchaser shall indicate it will purchase or acquire should the other Purchasers subscribe for less than their Basic Amounts (the
“Undersubscription Amount”). 
  
 (ii) To accept an Offer, in whole or in part, a Substantial Purchaser must deliver a written notice to the Company prior to the end of the two Trading Day period of the Offer, setting forth the portion of the Purchaser’s Basic Amount
that such Substantial Purchaser elects to purchase and, if such Substantial Purchaser shall elect to purchase all of its Basic Amount, the Undersubscription Amount, if any, that such Substantial Purchaser elects to purchase (in either case, the
“Notice of Acceptance”). If the Basic Amounts subscribed for by all Substantial Purchasers are less than the total of all of the Basic Amounts, then each Substantial Purchaser who has set forth an Undersubscription Amount in its
Notice of Acceptance shall be entitled to purchase, in addition to the Basic Amounts subscribed for, the Undersubscription Amount it has subscribed for; provided, however, that if the Undersubscription Amounts subscribed for exceed the
difference between the total of all the Basic Amounts and the Basic Amounts subscribed for (the “Available Undersubscription Amount”), each Substantial Purchaser who has subscribed for any Undersubscription Amount shall be entitled
to purchase on that portion of the Available Undersubscription Amount as the Basic Amount of such Substantial Purchaser bears to the total Basic Amounts of all Substantial Purchasers that have subscribed for Undersubscription Amounts, subject to
rounding by the Board of Directors to the extent its deems reasonably necessary. 
  
 (iii) In the event the Company shall propose to sell less than all the Offered Securities (any such sale to be in the manner and on the
terms specified in Section 4.5(c)(i) above), then each Substantial Purchaser may, at its sole option and in its sole discretion, reduce the number or amount of the Offered Securities specified in its Notice of Acceptance to an amount that shall be
not less than the number or amount of the Offered Securities that the Substantial Purchaser elected to purchase pursuant to Section 4.5(c)(ii) above multiplied by a fraction, (i) the numerator of which shall be the number or amount of Offered
Securities the Company actually proposes to issue, sell or exchange (including Offered Securities to be issued or sold to Substantial Purchasers pursuant to Section 4.5(c)(ii) above prior to such reduction) and (ii) the denominator of which shall be
the original amount of the Offered Securities. In the event that any Substantial Purchaser so elects to reduce the number or amount of Offered Securities specified in its Notice of Acceptance, the Company may not issue, sell or exchange more than
the reduced number or amount of the Offered Securities unless and until such securities have again been offered to the Substantial Purchasers in accordance with Section 4.5(c)(i) above. 
  

 17 

 (iv) Upon the closing of the issuance, sale or exchange of all or less than all of the
Offered Securities, the Substantial Purchasers shall acquire from the Company, and the Company shall issue to the Substantial Purchasers, the number or amount of Offered Securities specified in the Notices of Acceptance, as reduced pursuant to
Section 4.5(c)(iv) above if the Substantial Purchasers have so elected, upon the terms and conditions specified in the Offer. The purchase by the Substantial Purchasers of any Offered Securities is subject in all cases to the preparation, execution
and delivery by the Company and the Substantial Purchasers of a purchase agreement relating to such Offered Securities reasonably satisfactory in form and substance to the Substantial Purchasers and their respective counsel. 
  
 (v) Any Offered Securities not acquired by the Substantial
Purchasers or other Persons in accordance with Section 4.5(c)(iii) above may not be issued, sold or exchanged until they are again offered to the Substantial Purchasers under the procedures specified in this Agreement. 
  
 (d) The restrictions contained in paragraphs (a) and (c) of
this Section shall not apply to Excluded Stock. 
  
 4.6
Securities Laws Disclosure; Publicity. The Company shall, on or before 9:30 a.m., Eastern Standard Time, on February 27, 2004 issue a press release (the “Press Release”) acceptable to Proskauer Rose LLP (the “Lead
Purchaser Counsel”) disclosing all material terms of the transactions contemplated hereby. On the Closing Date, the Company shall file a Current Report on Form 8-K with the Commission (the “8-K Filing”) describing the terms
of the transactions contemplated by the Transaction Documents and including as exhibits to such Current Report on Form 8-K this Agreement and the form of Warrants, in the form required by the Exchange Act. Thereafter, the Company shall timely file
any filings and notices required by the Commission or applicable law with respect to the transactions contemplated hereby. Except with respect to the Press Release (a copy of which will be provided to Lead Purchaser Counsel for its review as early
as practicable prior to its issuance) and the 8-K Filing (a copy of which will be provided to the Purchasers for their review as early as practicable prior to its filing), the Company shall, at least two Trading Days prior to the filing or
dissemination of any disclosure required by this paragraph, provide a copy thereof to the Purchasers for their review. The Company and the Purchasers shall consult with each other in issuing any press releases or otherwise making public statements
or filings and other communications with the Commission or any regulatory agency or Trading Market with respect to the transactions contemplated hereby, and neither party shall issue any such press release or otherwise make any such public
statement, filing or other communication without the prior consent of the other, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the other party with prior notice of such public statement,
filing or other communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory agency or Trading Market,
without the prior written consent of such Purchaser, except to the extent such disclosure is required by law, Trading Market regulations or in the Registration Statement, in which case the Company shall provide the Purchasers with prior notice of
such disclosure. The Company shall not, and shall cause each of its Subsidiaries and its and each of their respective officers, directors, employees and agents not to, provide any Purchaser with any material nonpublic 
  

 18 

 information regarding the Company or any of its Subsidiaries from and after the filing of the 8-K Filing without the
express written consent of such Purchaser. In the event of a breach of the foregoing covenant by the Company, any of its Subsidiaries, or any of its or their respective officers, directors, employees and agents, in addition to any other remedy
provided herein or in the Transaction Documents, a Purchaser shall have the right to make a public disclosure, in the form of a press release, public advertisement or otherwise, of such material nonpublic information without the prior approval by
the Company, its Subsidiaries, or any of its or their respective officers, directors, employees or agents. No Purchaser shall have any liability to the Company, its Subsidiaries, or any of its or their respective officers, directors, employees,
stockholders or agents for any such disclosure. Subject to the foregoing, neither the Company nor any Purchaser shall issue any press releases or any other public statements with respect to the transactions contemplated hereby; provided, however,
that the Company shall be entitled, without the prior approval of any Purchaser, to make any press release or other public disclosure with respect to such transactions (i) in substantial conformity with the Press Release and the 8-K Filing (ii) as
is required by applicable law and regulations. Each press release disseminated during the 6 months preceding the date of this Agreement did not at the time of release contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they are made, not misleading 
  
 4.7 Use of Proceeds. The Company intends to use the net proceeds from the sale of the Securities for general corporate purposes. The Company also
may use a portion of the net proceeds, currently intended for general corporate purposes, to acquire or invest in technologies, products or services that complement its business, although the Company has no present plans or commitments and is not
currently engaged in any material negotiations with respect to these types of transactions. Pending these uses, the Company intends to invest the net proceeds from this offering in short-term, interest-bearing, investment-grade securities, or as
otherwise pursuant to the Company’s customary investment policies. 
  
 4.8 Reimbursement. If any Purchaser or any of its Affiliates or any officer, director, partner, controlling Person, employee or agent of a Purchaser or any of its Affiliates (a “Related Person”) becomes involved in any
capacity in any Proceeding brought by or against any Person in connection with or as a result of the transactions contemplated by the Transaction Documents, the Company will indemnify and hold harmless such Purchaser or Related Person for its
reasonable legal and other expenses (including the costs of any investigation, preparation and travel) and for any Losses incurred in connection therewith, as such expenses or Losses are incurred, excluding only Losses that result directly from such
Purchaser’s or Related Person’s (i) gross negligence, (ii) willful misconduct, (iii) material breach of any of its representation or warranty contained in this Agreement, or (iv) failure to comply with its material covenants and agreements
contained in this agreement. In addition, the Company shall indemnify and hold harmless each Purchaser and Related Person from and against any and all Losses, as incurred, arising out of or relating to any breach by the Company of any of the
representations, warranties or covenants made by the Company in this Agreement or any other Transaction Document, or any allegation by a third party that, if true, would constitute such a breach. The conduct of any Proceedings for which
indemnification is available under this paragraph shall be governed by Section 6.4(c) below. The indemnification obligations of the Company under this paragraph shall be in addition to any liability that the Company may otherwise have and shall be
binding 
  

 19 

 upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Purchasers and any
such Related Persons. The Company also agrees that neither the Purchasers nor any Related Persons shall have any liability to the Company or any Person asserting claims on behalf of or in right of the Company in connection with or as a result of the
transactions contemplated by the Transaction Documents, except to the extent that any Losses incurred by the Company result from the gross negligence or willful misconduct of the applicable Purchaser or Related Person in connection with such
transactions. If the Company breaches its obligations under any Transaction Document, then, in addition to any other liabilities the Company may have under any Transaction Document or applicable law, the Company shall pay or reimburse the Purchasers
on demand for all costs of collection and enforcement (including reasonable attorneys fees and expenses). Without limiting the generality of the foregoing, the Company specifically agrees to reimburse the Purchasers on demand for all costs of
enforcing the indemnification obligations in this paragraph. 
  
 ARTICLE V 
 CONDITIONS 
  
 5.1 Conditions Precedent to the Obligations of the Purchasers. The obligation of each Purchaser to acquire Securities at the Closing is subject to
the satisfaction or waiver by such Purchaser, at or before the Closing, of each of the following conditions: 
  
 (a) Representations and Warranties. The representations and warranties of the Company contained herein shall be true and correct in
all material respects as of the date when made and as of the Closing as though made on and as of such date; and 
  
 (b) Performance. The Company and each other Purchaser shall have performed, satisfied and complied in all material respects with
all covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by it at or prior to the Closing. 
  
 5.2 Conditions Precedent to the Obligations of the Company. The obligation of the Company to sell Securities at the Closing is subject to the
satisfaction or waiver by the Company, at or before the Closing, of each of the following conditions: 
  
 (a) Representations and Warranties. The representations and warranties of the Purchasers contained herein shall be true and correct
in all material respects as of the date when made and as of the Closing Date as though made on and as of such date; and 
  
 (b) Performance. The Purchasers shall have performed, satisfied and complied in all material respects with all covenants,
agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by the Purchasers at or prior to the Closing. 
  

 20 

 ARTICLE VI 
 REGISTRATION RIGHTS 
  
 6.1
Shelf Registration 
  
 (a) As promptly as
possible, and in any event on or prior to each Filing Date, the Company shall prepare and file with the Commission a “Shelf” Registration Statement covering the resale of all Registrable Securities for an offering to be made on a
continuous basis pursuant to Rule 415. The Registration Statement shall be on Form S-3 (except if the Company is not then eligible to register for resale the Registrable Securities on Form S-3, in which case such registration shall be on another
appropriate form in accordance herewith as the Purchasers may consent) and shall contain (except if otherwise directed by the Purchasers) the “Plan of Distribution” attached hereto as Exhibit C. 
  
 (b) The Company shall use its commercially reasonably
efforts to cause the Registration Statement to be declared effective by the Commission as promptly as possible after the filing thereof, but in any event prior to the Required Effectiveness Date, and shall use its best efforts to keep the
Registration Statement continuously effective under the Securities Act until the fifth anniversary of the Effective Date or such earlier date when all Registrable Securities covered by such Registration Statement have been sold (the
“Effectiveness Period”). 
  
 (c)
The Company shall notify each Purchaser and Lead Purchaser Counsel in writing promptly (and in any event within one Trading Day) after receiving notification from the Commission that the Registration Statement has been declared effective.

  
 (d) Upon the occurrence of any Event (as
defined below) and on every monthly anniversary thereof until the applicable Event is cured, as partial relief for the damages suffered therefrom by the Purchasers (which remedy shall not be exclusive of any other remedies available under this
Agreement, at law or in equity), the Company shall pay to each Purchaser an amount in cash, as liquidated damages and not as a penalty, equal to 1% of the greater of (i) the Market Value of the Shares held by such Purchaser as of the date of such
Event and (ii) aggregate purchase price paid by such Purchaser hereunder for the Shares held by such Purchaser as of the date of such Event for the first month and 2% for each month thereafter. The payments to which a Purchaser shall be entitled
pursuant to this Section 6.1(d) are referred to herein as “Event Payments”. For the of this paragraph, “Market Value” means, as of any Trading Day, the product of (x) the Closing Price on such Trading Day and (y)
the number of Shares held by such Purchaser on such Trading Day. In the event the Company fails to make Event Payments in a timely manner, such Event Payments shall bear interest at the rate of 1.5% per month (prorated for partial months) until paid
in full. Notwithstanding the foregoing, in no event shall the Company be required to make more than one Event Payment for the same period, even if more than one Event shall have occurred. 
  

 21 

 For such purposes, each of the following shall constitute an “Event”: 
  
 (i) the Registration Statement is not filed on or prior to
the Filing Date or is not declared effective on or prior to the Required Effectiveness Date; 
  
 (ii) except as provided in Section 6.1(e), after the Effective Date, a Purchaser is not permitted to sell Registrable Securities under the
Registration Statement (or a subsequent Registration Statement filed in replacement thereof) for any reason for five or more Trading Days (whether or not consecutive); 
  
 (iii) after the Effective Date, any Registrable Securities covered by such Registration Statement are not
listed on an Eligible Market; 
  
 (iv) the Common
Stock is not listed or quoted, or is suspended from trading, on an Eligible Market for a period of three Trading Days (which need not be consecutive Trading Days); 
  
 (v) the Company fails for any reason to deliver a certificate evidencing any Securities to a Purchaser
within three Trading Days after delivery of such certificate is required pursuant to any Transaction Document or the exercise rights of the Purchasers pursuant to the Transaction Documents are otherwise suspended for any reason; or 
  
 (vi) the Company fails to have available a sufficient number
of authorized but unissued and otherwise unreserved shares of Common Stock available to issue Underlying Shares upon any exercise of the Warrants or, at any time following the Effective Date, any Shares or Underlying Shares are not listed on an
Eligible Market. 
  
 (e) Notwithstanding anything
in this Agreement to the contrary, the Company may, by written notice to the Purchasers following the 45th Trading
Day following the Effective Date, suspend sales under a Registration Statement and/or require that the Purchasers immediately cease the sale of shares of Common Stock pursuant thereto and/or defer the filing of any subsequent Registration Statement
if the Company is engaged in a material merger, acquisition or sale and the Board of Directors determines in good faith, by appropriate resolutions, that, as a result of such activity, (A) it would be materially detrimental to the Company (other
than as relating solely to the price of the Common Stock) to maintain a Registration Statement at such time and (B) it is in the best interests of the Company to defer proceeding with such registration at such time. Upon receipt of such notice, each
Purchaser shall immediately discontinue any sales of Registrable Securities pursuant to such registration until such Purchaser has received copies of a supplemented or amended Prospectus or until such Purchaser is advised in writing by the Company
that the then-current Prospectus may be used and has received copies of any additional or supplemental filings that are incorporated or deemed incorporated by reference in such Prospectus. In no event, however, shall this right be exercised to
suspend sales beyond the period during which (in the good faith determination of the Company’s Board of Directors) the failure to require such suspension would be materially detrimental to the Company. The Company’s rights under this
Section 6.1(e) may be exercised for a period of no more than 30 days at a time and not more than two times in any twelve-month period, without such suspension being considered as part of an Event Payment determination. Immediately after the end of
any suspension period under this Section 6.1(e), the Company shall take all actions that may be reasonably necessary (including 
  

 22 

 filing any required supplemental prospectus) to restore the effectiveness of the applicable Registration
Statement and the ability of the Purchasers to publicly resell their Registrable Securities pursuant to such effective Registration Statement. 
  
 (f) Except as set forth on Schedule 6.1(f), the Company shall not, prior to the Effective Date of the Registration Statement, prepare and
file with the Commission a registration statement relating to an offering for its own account or the account of others under the Securities Act of any of its equity securities. 
  
 (g) If the Company exercises its Call Right (as defined in the Warrant), then the Company shall file an
additional Registration Statement covering a number of shares of Common Stock issuable upon the exercise of the Exchange Warrants (as defined in the Warrant). 
  

6.2 Registration Procedures. In connection with the Company’s registration obligations hereunder, the Company shall: 
  
 (a) Not less than three Trading Days prior to the filing of
a Registration Statement or any related Prospectus or any amendment or supplement thereto (including any document that would be incorporated or deemed to be incorporated therein by reference), the Company shall (i) furnish to the Lead Purchaser
Counsel and any other counsel designated by any Purchaser (each, including Lead Purchaser Counsel, a “Purchaser Counsel”) copies of all such documents proposed to be filed in connection with the Registrable Securities, which
documents (other than those incorporated or deemed to be incorporated by reference) will be subject to the review of each such Purchaser Counsel, and (ii) cause its officers and directors, counsel and independent certified public accountants to
respond to such inquiries as shall be necessary, in the reasonable opinion of each Purchaser Counsel, to conduct a reasonable investigation within the meaning of the Securities Act. The Company shall not file a Registration Statement or any such
Prospectus or any amendments or supplements thereto to which Purchasers holding a majority of the Registrable Securities shall reasonably object. 
  
 (b) (i) Prepare and file with the Commission such amendments, including post-effective amendments, to each Registration Statement and the
Prospectus used in connection therewith as may be necessary to keep the Registration Statement continuously effective as to the applicable Registrable Securities for the Effectiveness Period and prepare and file with the Commission such additional
Registration Statements in order to register for resale under the Securities Act all of the Registrable Securities; (ii) cause the related Prospectus to be amended or supplemented by any required Prospectus supplement, and as so supplemented or
amended to be filed pursuant to Rule 424; (iii) respond as promptly as reasonably possible, and in any event within ten days, to any comments received from the Commission with respect to the Registration Statement or any amendment thereto and as
promptly as reasonably possible provide Lead Purchaser Counsel true and complete copies of all correspondence from and to the Commission relating to the Registration Statement; and (iv) comply in all material respects with the provisions of the
Securities Act and the Exchange Act with respect to the disposition of all Registrable Securities covered by the Registration Statement during the applicable period in accordance with the intended methods of disposition by the Purchasers thereof set
forth in the Registration Statement as so amended or in such Prospectus as so supplemented 
  

 23 

 (c) Notify the Lead Purchaser Counsel as promptly as reasonably possible, and (if
requested) confirm such notice in writing no later than one Trading Day thereafter, of any of the following events: (i) the Commission notifies the Company whether there will be a “review” of any Registration Statement; (ii) the Commission
comments in writing on any Registration Statement (in which case the Company shall deliver to Lead Purchaser Counsel a copy of such comments and of all written responses thereto); (iii) any Registration Statement or any post-effective amendment is
declared effective; (iv) the Commission or any other Federal or state governmental authority requests any amendment or supplement to any Registration Statement or Prospectus or requests additional information related thereto; (v) the Commission
issues any stop order suspending the effectiveness of any Registration Statement or initiates any Proceedings for that purpose; (vi) the Company receives notice of any suspension of the qualification or exemption from qualification of any
Registrable Securities for sale in any jurisdiction, or the initiation or threat of any Proceeding for such purpose; or (vii) the financial statements included in any Registration Statement become ineligible for inclusion therein or any statement
made in any Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference is untrue in any material respect or any revision to a Registration Statement, Prospectus or other document is required
so that it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not
misleading. 
  
 (d) Use its best efforts to avoid
the issuance of or, if issued, obtain the withdrawal of (i) any order suspending the effectiveness of any Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for
sale in any jurisdiction, at the earliest practicable moment. 
  
 (e) Upon request, furnish to each Purchaser and Purchaser Counsel, without charge, at least one conformed copy of each Registration Statement and each amendment thereto, including financial statements and schedules,
all documents incorporated or deemed to be incorporated therein by reference, and all exhibits to the extent requested by such Person (including those previously furnished or incorporated by reference) promptly after the filing of such documents
with the Commission. 
  
 (f) Promptly deliver to
each Purchaser and each Purchaser Counsel, without charge, as many copies of the Prospectus or Prospectuses (including each form of prospectus) and each amendment or supplement thereto as such Persons may reasonably request. The Company hereby
consents to the use of such Prospectus and each amendment or supplement thereto by each of the selling Purchasers in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement
thereto. 
  
 (g) (i) In the time and manner
required by each Trading Market, prepare and file with such Trading Market an additional shares listing application covering all of the Registrable Securities; (ii) take all steps necessary to cause such Registrable Securities to be 
  

 24 

 approved for listing on each Trading Market as soon as possible thereafter; (iii) provide to the Lead
Purchaser Counsel evidence of such listing; and (iv) maintain the listing of such Registrable Securities on each such Trading Market or another Eligible Market. 
  
 (h) Prior to any public offering of Registrable Securities, use its best efforts to register or qualify or
cooperate with the selling Purchasers and each Purchaser Counsel in connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities for offer and sale under the securities or
blue sky laws of such jurisdictions within the United States as any Purchaser requests in writing, to keep each such registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or
things necessary or advisable to enable the disposition in such jurisdictions of the Registrable Securities covered by a Registration Statement; provided, however, that the Company shall not be obligated to file any general consent to
service of process or to qualify as a foreign corporation or as a dealer in securities in any jurisdiction in which it is not so qualified or to subject itself to taxation in respect of doing business in any jurisdiction in which it is not otherwise
subject. 
  
 (i) Cooperate with the Purchasers to
facilitate the timely preparation and delivery of certificates representing Registrable Securities to be delivered to a transferee pursuant to a Registration Statement, which certificates shall be free, to the extent permitted by this Agreement, of
all restrictive legends, and to enable such Registrable Securities to be in such denominations and registered in such names as any such Purchasers may request. 
  

(j) Upon the occurrence of any event described in Section 6.2(c)(vii), as promptly as reasonably possible, prepare a supplement or
amendment, including a post-effective amendment, to the Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document so that, as
thereafter delivered, neither the Registration Statement nor such Prospectus will contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading. 
  
 (k) Cooperate with any due diligence investigation undertaken by the Purchasers in connection with the sale of Registrable Securities, including without limitation by making available any documents and information;
provided that the Company will not deliver or make available to any Purchaser material, nonpublic information unless such Purchaser specifically requests in advance to receive material, nonpublic information in writing. 
  
 (l) If Holders of a majority of the Registrable Securities
being offered pursuant to a Registration Statement select underwriters for the offering, the Company shall enter into and perform its obligations under an underwriting agreement, in usual and customary form, including, without limitation, by
providing customary legal opinions, comfort letters and indemnification and contribution obligations. 
  
 (m) Use its best efforts to comply with all applicable rules and regulations of the Commission. 
  

 25 

 6.3 Obligations of the Purchasers. In connection with the registration of the Registrable
Securities, the Purchasers shall have the following obligations: 
  
 (a) In connection with the registration of the Registrable Securities, it shall be a condition precedent to the obligations of the Company to complete the registration pursuant to this Agreement with respect to the
Registrable Securities of a particular Purchaser (or to make any payments or other damages to such Purchaser pursuant to Section 6.1) that such Purchaser shall furnish to the Company the Selling Stockholder Questionnaire set forth on Exhibit E
hereto within 5 Trading Days of the Company’s written request. 
  
 (b) Each Purchaser agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 6.1(e), such Purchaser will immediately discontinue disposition of Registrable
Securities pursuant to the Registration Statement covering such Registrable Securities until such Purchaser’s receipt of the copies of the supplemented or amended prospectus contemplated by Section 6.1(e) and, if so directed by the Company,
such Purchaser shall deliver to the Company (at the expense of the Company) or destroy (and deliver to the Company a certificate of destruction) all copies in such Purchaser’s possession, of the Prospectus covering such Registrable Securities
current at the time of receipt of such notice. 
  
 6.4
Registration Expenses. The Company shall pay (or reimburse the Purchasers for) all fees and expenses incident to the performance of or compliance with this Agreement by the Company, including without limitation (a) all registration and filing
fees and expenses, including without limitation those related to filings with the Commission, any Trading Market and in connection with applicable state securities or Blue Sky laws, (b) printing expenses (including without limitation expenses of
printing certificates for Registrable Securities and of printing prospectuses requested by the Purchasers), (c) messenger, telephone and delivery expenses, (d) fees and disbursements of counsel for the Company and up to $10,000 in the aggregate for
the Lead Purchaser Counsel, (e) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement, and (f) all listing fees to be paid by the Company to the Trading
Market. The Purchasers shall be responsible for paying the underwriters’ commission or brokerage fees and taxes of any kind (including, without limitation, transfer taxes) applicable to any disposition, sale or transfer of Registrable
Securities. 
  
 6.5 Indemnification 
  
 (a) Indemnification by the Company. The Company
shall, notwithstanding any termination of this Agreement, indemnify and hold harmless each Purchaser, the officers, directors, partners, members, agents, brokers (including brokers who offer and sell Registrable Securities as principal as a result
of a pledge or any failure to perform under a margin call of Common Stock), investment advisors and employees of each of them, each Person who controls any such Purchaser (within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act) and the officers, directors, partners, members, agents and employees of each such controlling Person, to the fullest extent permitted by applicable law, from and against any and all Losses, as incurred, arising out of or relating to
any untrue or alleged untrue statement of a material fact contained in the Registration Statement, any Prospectus or 
  

 26 

 any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or
arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in the light of
the circumstances under which they were made) not misleading, except to the extent, but only to the extent, that such Losses arise out of (i) untrue statements, alleged untrue statements, omissions or alleged omissions that are based solely upon
information regarding such Purchaser furnished in writing to the Company by such Purchaser expressly for use therein, or to the extent that such information relates to such Purchaser or such Purchaser’s proposed method of distribution of
Registrable Securities and was reviewed and expressly approved in writing by such Purchaser expressly for use in the Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto or (ii) in the case of
an occurrence of an event of the type specified in Section 6.2(c)(v) (vii), the use by such Purchaser of an outdated or defective Prospectus after the Company has notified such Purchaser in writing that the Prospectus is outdated or defective and
prior to the receipt by such Purchaser of the Advice contemplated in Section 6.6, or (iii) any material breach of any representation or warranty by such Purchaser contained in this Agreement or the failure of such Purchaser to comply with its
material covenants and agreements contained in this Agreement. The Company shall notify the Purchasers promptly of the institution, threat or assertion of any Proceeding of which the Company is aware in connection with the transactions contemplated
by this Agreement. 
  
 (b) Indemnification by
Purchasers. Each Purchaser shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and
Section 20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses (as determined by a court of competent jurisdiction in a
final judgment not subject to appeal or review) arising solely (i) out of any untrue statement of a material fact contained in the Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement thereto, or
arising solely out of any omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in the light of the circumstances under which
they were made) not misleading to the extent, but only to the extent, that such untrue statement or omission is contained in any information so furnished in writing by such Purchaser to the Company specifically for inclusion in such Registration
Statement or such Prospectus or to the extent that such untrue statements or omissions are based solely upon information regarding such Purchaser furnished in writing to the Company by such Purchaser expressly for use therein, or to the extent that
such information relates to such Purchaser or such Purchaser’s proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Purchaser expressly for use in the Registration Statement, such
Prospectus or such form of Prospectus or in any amendment or supplement thereto or (ii) in the case of an occurrence of an event of the type specified in Sections 6.2(c)(v), (vi) or (vii), the use by such Purchaser of an outdated or defective
Prospectus after the Company has notified such Purchaser in writing that the Prospectus is outdated or defective and prior to the receipt by such Purchaser of the Advice contemplated in Section 6.6. In no event shall the liability of any selling
Purchaser hereunder be greater in amount than the dollar amount of the net proceeds received by such Purchaser upon the sale of the Registrable Securities giving rise to such indemnification obligation. 
  

 27 

 (c) Conduct of Indemnification Proceedings. If any Proceeding shall be brought or
asserted against any Person entitled to indemnity hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the “Indemnifying Party”) in writing, and
the Indemnifying Party shall assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with defense thereof; provided, that the
failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by a court of competent
jurisdiction (which determination is not subject to appeal or further review) that such failure shall have proximately and materially adversely prejudiced the Indemnifying Party. 
  
 An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the
defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (i) the Indemnifying Party has agreed in writing to pay such fees and expenses; or (ii) the Indemnifying Party shall have
failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (iii) the named parties to any such Proceeding (including any impleaded parties) include both
such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party
(in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof
and such counsel shall be at the expense of the Indemnifying Party). It being understood, however, that the Indemnifying Party shall not, in connection with any one such Proceeding be liable for the fees and expenses of more than one separate firm
of attorneys at any time for all Indemnified Parties, which firm shall be appointed by a majority of the Indemnified Parties; provided, however, that in the case a single firm of attorneys would be inappropriate due to actual or potential differing
interests of conflicts between such Indemnified Parties and any other party represented by such counsel in such Proceeding or otherwise, then the Indemnifying Party shall be liable for the fees and expenses of one additional firm of attorneys with
respect to such Indemnified Parties. The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld. No Indemnifying Party shall, without
the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all
liability on claims that are the subject matter of such Proceeding. 
  
 All fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be
paid to the Indemnified Party, as incurred, within ten Trading Days of written notice thereof to the Indemnifying Party (regardless of whether it is ultimately determined that an Indemnified Party is not entitled to 
  

 28 

 indemnification hereunder; provided, that the Indemnifying Party may require such Indemnified Party to undertake to
reimburse all such fees and expenses to the extent it is finally judicially determined that such Indemnified Party is not entitled to indemnification hereunder). 
  
 (d) Contribution. If a claim for indemnification under Section 6.5(a) or (b) is
unavailable to an Indemnified Party (by reasons other than the specified exclusions to indemnification), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified
Party as a result of such Losses, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any
other relevant equitable considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of
a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in Section 6.5(c), any
reasonable attorneys’ or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this
Section was available to such party in accordance with its terms. 
  
 The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 6.5(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the
equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 6.5(d), no Purchaser shall be required to contribute, in the aggregate, any amount in excess of the amount by which the
proceeds actually received by such Purchaser from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation. 
  
 The indemnity and contribution agreements
contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties. 
  
 6.6 Dispositions. Each Purchaser agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable to it in
connection with sales of Registrable Securities pursuant to the Registration Statement. Each Purchaser further agrees that, upon receipt of a notice from the Company of the occurrence of any event of the kind described in Sections 6.2(c)(v),
(vi) or (vii), such Purchaser will discontinue disposition of such Registrable Securities under the Registration Statement until such Purchaser’s receipt of the copies of the supplemented Prospectus and/or amended Registration
Statement contemplated by Section 6.2(j), or until it is advised in writing (the “Advice”) by the Company that the use of the applicable Prospectus may be resumed, and, in either case, has received copies of any additional

  

 29 

 or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or
Registration Statement. The Company may provide appropriate stop orders to enforce the provisions of this paragraph. 
  
 6.7 No Piggyback on Registrations. Except as set forth on Schedule 6.7, neither the Company nor any of its security holders (other than the
Purchasers in such capacity pursuant hereto) may include securities of the Company in the Registration Statement other than the Registrable Securities, and the Company shall not after the date hereof enter into any agreement providing any such right
to any of its security holders. 
  
 6.8 Piggy-Back
Registrations. If at any time during the Effectiveness Period there is not an effective Registration Statement covering all of the Registrable Securities and the Company shall determine to prepare and file with the Commission a registration
statement relating to an offering for its own account or the account of others under the Securities Act of any of its equity securities, other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents
relating to equity securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection with stock option or other employee benefit plans, then the Company shall send to each
Purchaser written notice of such determination and if, within fifteen days after receipt of such notice, any such Purchaser shall so request in writing, the Company shall include in such registration statement all or any part of such Registrable
Securities such Purchaser requests to be registered. 
  
 ARTICLE
VII 
 MISCELLANEOUS 
  
 7.1 Termination. This Agreement may be terminated by the Company or any Purchaser, by written notice to the other parties, if the Closing has not
been consummated by the third Trading Day following the date of this Agreement; provided that no such termination will affect the right of any party to sue for any breach by the other party (or parties). 
  
 7.2 Fees and Expenses. At the Closing, the Company shall pay to
Mainfield Enterprises, Inc. an aggregate of $30,000 for their legal fees and expenses incurred in connection with the preparation and negotiation of the Transaction Documents, of which amount $10,000 has been previously paid by the Company to
Proskauer Rose LLP. In lieu of the foregoing payment, Mainfield Enterprises, Inc. may retain such amount at the Closing. Except as expressly set forth in the Transaction Documents 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 Securities. 
  
 7.3 Entire Agreement. The Transaction Documents, together with the Exhibits and Schedules thereto, contain the entire understanding of the parties
with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules. At or after
the Closing, and without further consideration, the Company 
  

 30 

 will execute and deliver to the Purchasers such further documents as may be reasonably requested in order to give
practical effect to the intention of the parties under the Transaction Documents. 
  
 7.4 Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date
of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in this Section prior to 6:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number specified in this Section on a day that is not a Trading Day or later than 6:30 p.m. (New York City time) on any Trading Day, (c) the Trading Day following the date of
mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The addresses and facsimile numbers for such notices and communications are those set
forth on the signature pages hereof, or such other address or facsimile number as may be designated in writing hereafter, in the same manner, by such Person. 
  
 7.5 Amendments; Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of an
amendment, by the Company and each of the Purchasers or, in the case of a waiver, by the party against whom enforcement of any such waiver is sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement
shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any
manner impair the exercise of any such right. Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of Purchasers under Article VI and that does
not directly or indirectly affect the rights of other Purchasers may be given by Purchasers holding at least a majority of the Registrable Securities to which such waiver or consent relates. 
  
 7.6 Construction. The headings herein are for convenience only, do not
constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of
strict construction will be applied against any party. 
  
 7.7
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the
prior written consent of the Purchasers. Any Purchaser may assign its rights under this Agreement to any Person to whom such Purchaser assigns or transfers any Securities, provided such transferee agrees in writing to be bound, with respect to the
transferred Securities, by the provisions hereof that apply to the “Purchasers.” Notwithstanding anything to the contrary herein, Securities may be assigned to any Person in connection with a bona fide margin account or other loan or
financing arrangement secured by such Securities. 
  
 7.8 No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, 
  

 31 

 nor may any provision hereof be enforced by, any other Person, except that each Related Person is an intended third party
beneficiary of Section 4.8 and each Indemnified Party is an intended third party beneficiary of Section 6.5 and (in each case) may enforce the provisions of such Sections directly against the parties with obligations thereunder. 
  
 7.9 Governing Law; Venue; Waiver Of Jury Trail. 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. 
  
 7.10 Survival. The representations,
warranties, agreements and covenants contained herein shall survive the Closing and the delivery and/or exercise of the Securities, as applicable. 
  
 7.11 Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by
facsimile transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature page were an original thereof.

  
 7.12 Severability. If any provision of this Agreement
is held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid
and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement. 
  

 32 

 7.13 Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained in (and
without limiting any similar provisions of) the Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction Document and the Company does not timely perform its related obligations within the
periods therein provided, then such Purchaser may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand or election in whole or in part without prejudice to its future actions
and rights. 
  
 7.14 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, 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. 
  
 7.15 Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the
Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations described in
the foregoing sentence and hereby agrees to waive in any action for specific performance of any such obligation the defense that a remedy at law would be adequate. 
  
 7.16 Payment Set Aside. To the extent that the Company makes a payment or payments to any Purchaser hereunder or
pursuant to the Warrants or any Purchaser enforces or exercises its rights hereunder or thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be
fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company by a trustee, receiver or any other Person under any law (including, without limitation, any bankruptcy
law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such enforcement or setoff had not occurred. 
  
 7.17 Adjustments in Share Numbers and Prices. In the event of any stock split, subdivision, dividend or distribution payable in shares of Common Stock (or other securities or rights convertible into, or
entitling the holder thereof to receive directly or indirectly shares of Common Stock), combination or other similar recapitalization or event occurring after the date hereof, each reference in any Transaction Document to a number of shares or a
price per share shall be amended to appropriately account for such event. 
  
 7.18 Independent Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document 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 any Transaction Document. The decision of each 
  

 33 

 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 or of
the Subsidiary 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 or in any Transaction Document, and no action taken by any Purchaser pursuant thereto, 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 the Transaction
Document. 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 or out of the other Transaction Documents, 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
and the Transaction Documents. For reasons of administrative convenience only, the Purchasers acknowledge and agree that they and their respective counsel have chosen to communicate with the Company through Proskauer Rose, but Proskauer Rose
represents only Mainfield Enterprises, Inc. 
  
 [SIGNATURE PAGES TO
FOLLOW] 
  

 34 

 IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed
by their respective authorized signatories as of the date first indicated above. 
  

					
	 	 	 ORCHID BIOSCIENCES, INC.

			
	 	 	 By:
	 	  

	 	 	 Name:
	 	 Paul Kelly

	 	 	 Title:
	 	 President, Chief Executive Officer

		
	 	 	 Address for Notice:

		
	 	 	 Orchid BioSciences, Inc.
 4390 US Route One North Princeton, NJ 08540
 Facsimile No.: (609) 750-6400
 Telephone No.: (609) 750-2200
 Attn: Chief Financial Officer

		
	 With a copy to:
	 	 Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

	 	 	 One Financial Center
 Boston, MA 02111
 Facsimile No.: (617) 542-2241
 Telephone No.: (617) 542-6000
 Attn: John J. Cheney, III, Esq.

  
 [REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK 
 SIGNATURE PAGES FOR PURCHASERS FOLLOW] 

					
	 	 	 MAINFIELD ENTERPRISES, INC.

			
	 	 	 By:
	 	  

	 	 	 Name:
	 	 
	 	 	 Title:
	 	 
		
	 	 	 Number of Shares to be acquired: 3,100,000

		
	 	 	 Underlying Shares subject to Warrant: 620,000

		
	 	 	 Address for Notice:
  
 Mainfield Enterprises, Inc.
 c/o Sage Capital Growth, Inc.
 660 Madison Avenue
 New York, New York 10022
 Facsimile No.: (212) 651-9010
 Telephone No.: (212) 651-9000
 Attn: Eldad Gal

		
	 With a copy to:
	 	 Proskauer Rose LLP

	 	 	 1585 Broadway
 New York, New York 10036-8299
 Facsimile No.: (212) 969-2900
 Telephone No.: (212) 969-3000
 Attn: Adam J. Kansler, Esq.

					
	  

			
	 By:
	 	  

	 	 
	 Name:
	 	 	 	 
	 Title:
	 	 	 	 
		
	 Number of Shares to be acquired:
	 	  

		
	 Underlying Shares subject to Warrant:
	 	  

		
	 Address for Notice:
	 	 
		
	
	 	 
		
	
	 	 
		
	
	 	 
	 Facsimile No.:
	 	 
	 Telephone No.:
	 	 
	 Attn:
	 	 

 Exhibits: 
  

	A	Form of Warrant 

	B	Opinion of Company Counsel 

	C	Plan of Distribution 

	D	Transfer Agent Instructions 

	E	Selling Stockholder Questionnaire 

 EXHIBIT E 
  
 ORCHID BIOSCIENCES, INC. 
  
 Selling Stockholder Questionnaire 
  
 The undersigned beneficial owner of Common Stock of Orchid BioSciences, Inc. (the “Company”) (the “Registrable Securities”) understands
that the Company has filed or intends to file with the Securities and Exchange Commission a registration statement (the “Registration Statement”) for the registration and resale under the Securities Act of 1933, as amended (the
“Securities Act”), of the Registrable Securities. This Questionnaire is delivered pursuant to the terms of the Securities Purchase Agreement, dated as of February 26, 2004 (the “Purchase Agreement”), among the
Company and the purchasers named therein. A copy of the Purchase Agreement is available from the Company upon request at the address set forth below. All capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the
Purchase Agreement. 
  
 Certain legal consequences arise from being named as a
selling securityholder in the Registration Statement and the related prospectus. Accordingly, holders and beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding the consequences of being named
or not being named as a selling securityholder in the Registration Statement and the related prospectus. 
  
 The undersigned beneficial owner (the “Selling Securityholder”) of Registrable Securities hereby elects to include the Registrable Securities owned by it and listed below in Item 3 (unless otherwise
specified under such Item 3) in the Registration Statement. 
  
 The undersigned
hereby provides the following information to the Company and represents and warrants that such information is accurate: 
  

	1.	Name. 

  

			
	 (a)
	  	 Full Legal Name of Selling Securityholder
  

		
	 (b)
	  	 Full Legal Name of Registered Holder (if not the same as (a) above) through which Registrable Securities Listed in Item 3 below are
held:
  

		
	 (c)
	  	 Full Legal Name of Natural Control Person (which means a natural person who directly you indirectly alone or with others has power to vote or
dispose of the securities covered by the questionnaire):
  

	2.	Address for Notices to Selling Securityholder: 

  

	
	

	 
	

	  

	 Telephone:

	 Fax:

	 Contact Person:

  

	3.	Beneficial Ownership of Registrable Securities: 

  

			
	 (a)
	  	 Type and Principal Amount of Registrable Securities beneficially owned:

		
	 	  	

	 	  	

	 	  	

  

	4.	Broker-Dealer Status: 

  

			
	 (a)
	  	 Are you a broker-dealer?

	 	  	Yes     ̈             No     ̈
		
	 Note:
	  	If yes, the Commission’s staff has indicated that you should be identified as an underwriter in the Registration Statement.
		
	 (b)
	  	 Are you an affiliate of a broker-dealer?

		
	 	  	Yes     ̈             No     ̈
		
	 (c)
	  	If you are an affiliate of a broker-dealer, do you certify that you bought the Registrable Securities in the ordinary course of business, and at the time of the purchase of the Registrable
Securities to be resold, you had no agreements or understandings, directly or indirectly, with any person to distribute the Registrable Securities?
		
	 	  	Yes     ̈             No     ̈
		
	 Note:
	  	If no, the Commission’s staff has indicated that you should be identified as an underwriter in the Registration Statement.

 5. Beneficial Ownership of Other Securities of the Company Owned by the Selling Securityholder. 
  
 Except as set forth below in this Item 5, the undersigned is not the
beneficial or registered owner of any securities of the Company other than the Registrable Securities listed above in Item 3. 
  

			
	(a)	  	Type and Amount of Other Securities beneficially owned by the Selling Securityholder:
		
	 	  	

	 	  	

  
 6. Relationships with the Company:

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

	
	State any exceptions here:
	
	

	

  
 By signing below, the undersigned
consents to the disclosure of the information contained herein in its answers to Items 1 through 6 and the inclusion of such information in the Registration Statement and the related prospectus. The undersigned understands that such information will
be relied upon by the Company in connection with the preparation or amendment of the Registration Statement and the related prospectus. 
  
 IN WITNESS WHEREOF the undersigned, by authority duly given, has caused this Questionnaire to be executed and delivered either in person or by its duly authorized agent.

  

							
	 Dated:
	 	  

	 	 Beneficial Owner:

				
	 	 	 	 	 By:
	 	  

	 	 	 	 	 Name:
	 	 
	 	 	 	 	 Title:
	 	 

  
 PLEASE FAX THE COMPLETED AND
EXECUTED QUESTIONNAIRE TO 

 Orchid BioSciences, Inc. 
 4390 US Route One North Princeton, NJ 08540 
 Attn: Chief Financial Officer 
 Facsimile No.: (609) 750-6400Exhibit 10.L

 Exhibit 10(l) 
  
 SOUTHERN NATIONAL CORPORATION 
 NON-QUALIFIED DEFINED BENEFIT PLAN 
  
  
 EFFECTIVE DATE 
 JANUARY 1, 1997

 SOUTHERN NATIONAL CORPORATION 
 NON-QUALIFIED DEFINED BENEFIT PLAN 
  
 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 Section 1.
	  	Establishment and Purpose	  	1
	 1.1
	  	Establishment of Plan	  	1
	 1.2
	  	Purpose of Plan	  	2
	 1.3
	  	Application of Plan:	  	2
			
	 Section 2.
	  	Definitions:	  	2
	 2.1
	  	Actuarial Equivalent	  	2
	 2.2
	  	Affiliate	  	3
	 2.3
	  	Beneficiary	  	3
	 2.4
	  	Board	  	3
	 2.5
	  	Code	  	3
	 2.6
	  	Committee	  	3
	 2.7
	  	Company	  	3
	 2.8
	  	Effective Date	  	3
	 2.9
	  	Eligible Employee	  	3
	 2.10
	  	Employee	  	4
	 2.11
	  	Employer	  	4
	 2.12
	  	Entry Date	  	4
	 2.13
	  	ERISA	  	4
	 2.14
	  	Limitations	  	4
	 2.15
	  	Non-Qualified Deferrals	  	4
	 2.16
	  	Normal Retirement Age	  	4
	 2.17
	  	Participant	  	5
	 2.18
	  	Plan	  	5
	 2.19
	  	Plan Year	  	6
	 2.20
	  	Prior Plan	  	6
	 2.21
	  	Qualified Pension Plan	  	6
	 2.22
	  	Qualified Death Benefit	  	6
	 2.23
	  	Qualified Pension Benefit	  	6
	 2.24
	  	Service	  	6
	 2.25
	  	Spouse or Surviving Spouse	  	6
	 2.26
	  	Supplemental Death Benefit	  	6
	 2.27
	  	Supplemental Pension Benefit	  	6
			
	 Section 3.
	  	Supplemental Pension Benefit	  	7
	 3.1
	  	Amount	  	7
	 3.2
	  	Form of Benefit	  	7
	 3.3
	  	Commencement of Benefit	  	7
	 3.4
	  	Approval of Committee	  	8
	 3.5
	  	Actuarial Equivalent	  	8

					
	 Section 4.
	  	Supplemental Death Benefit	  	8
	 4.1
	  	Death Prior to Commencement of Supplemental Pension Benefit	  	8
	 4.2
	  	Death After Commencement of Supplemental Pension Benefit	  	9
			
	 Section 5.
	  	Vesting	  	9
			
	 Section 6.
	  	Administration by Committee	  	9
	 6.1
	  	Membership of Committee	  	9
	 6.2
	  	Committee Officers; Subcommittee	  	9
	 6.3
	  	Committee Meetings	  	10
	 6.4
	  	Transaction of Business	  	10
	 6.5
	  	Committee Records	  	10
	 6.6
	  	Establishment of Rules	  	10
	 6.7
	  	Conflicts of Interest	  	11
	 6.8
	  	Correction of Errors	  	11
	 6.9
	  	Authority to Interpret Plan	  	11
	 6.10
	  	Third Party Advisors	  	11
	 6.11
	  	Compensation of Members	  	12
	 6.12
	  	Committee Expenses	  	12
	 6.13
	  	Indemnification of Committee	  	12
			
	 Section 7.
	  	Funding	  	12
			
	 Section 8.
	  	Allocation of Responsibilities	  	13
	 8.1.
	  	Board	  	13
	 8.2
	  	Committee	  	13
	 8.3
	  	Plan Administrator	  	14
			
	 Section 9.
	  	Benefits Not Assignable; Facility of Payments	  	14
	 9.1
	  	Benefits Not Assignable	  	14
	 9.2
	  	Payments to Minors and Others	  	14
			
	 Section 10.
	  	Beneficiary	  	15
			
	 Section 11.
	  	Amendment and Termination of Plan	  	15
			
	 Section 12.
	  	Communication to Participants	  	16
			
	 Section 13.
	  	Claims Procedure	  	16
	 13.1
	  	Filing of a Claim for Benefits	  	16
	 13.2
	  	Notification to Claimant of Decision	  	16
	 13.3
	  	Procedure for Review	  	17
	 13.4
	  	Decision on Review	  	17
	 13.5
	  	Action by Authorized Representative of Claimant	  	18
			
	 Section 14.
	  	Parties to the Plan	  	18

					
	 14.1
	  	Single Plan	  	18
	 14.2
	  	Service; Allocation of Costs	  	18
	 14.3
	  	Committee	  	19
	 14.4
	  	Authority to Amend and Terminate	  	19
			
	 Section 15.
	  	 Miscellaneous Provisions
	  	19
	 15.1
	  	Notices	  	19
	 15.2
	  	Lost Distributees	  	19
	 15.3
	  	Reliance on Data	  	20
	 15.4
	  	Receipt and Release for Payments	  	20
	 15.5
	  	Headings	  	20
	 15.6
	  	Continuation of Employment	  	20
	 15.7
	  	Construction	  	20
	 15.8
	  	Nonliability of Employer	  	20
	 15.9
	  	Severability	  	21
	 15.10
	  	Merger and Consolidation	  	21
	 15.11
	  	Withholding Taxes	  	21
	 15.12
	  	General Conditions	  	21

 SOUTHERN NATIONAL CORPORATION 
 NON-QUALIFIED DEFINED BENEFIT PLAN 
  
 Section 1. Establishment and Purpose: 
  
 1.1 Establishment of Plan: Effective as of January 1, 1988, Branch Banking and Trust Company (“BB&T”) established a supplemental
retirement plan (the “Prior Plan”) for the benefit of certain eligible executives of BB&T and participating Affiliates. The Prior Plan was entitled the Branch Banking and Trust Company Supplemental Executive Retirement Plan. The Prior
Plan was amended and restated effective as of February 1, 1988. On February 28, 1995, Southern National Corporation (the “Company”) and BB&T Financial Corporation, the former parent corporation of BB&T, were merged. As a result of
the merger, the Company became the parent corporation of BB&T. Effective as of January 1, 1996, the Company assumed the sponsorship of the Prior Plan, the name of the Prior Plan was changed to the Southern National Corporation Supplemental
Executive Retirement Plan, and the Prior Plan was amended in certain respects. Section 4.1 of the Prior Plan provided a special supplemental retirement benefit to supplement the benefits payable to Participants under the Qualified Pension Plan (the
“Retirement Plan Supplement”). The provisions of the Prior Plan relating to the Retirement Plan Supplement are hereby incorporated into a new non-qualified supplemental retirement plan, effective as of January 1, 1997, which plan shall be
known as the SOUTHERN NATIONAL CORPORATION NON-QUALIFIED DEFINED BENEFIT PLAN (the “Plan”). All benefits from this Plan shall be payable solely from the general assets of the Company and participating Affiliates. The Plan is comprised of
both an “excess benefit plan” within the meaning of Section 3(36) of ERISA and an unfunded plan maintained for the purposes of providing deferred 

 compensation to a “select group of management or highly compensated employees” within the meaning of Sections
201(2), 301(a)(3) and 401(a)(1) of ERISA. The Plan, therefore, is intended to be exempt from the participation, vesting, funding, and fiduciary requirements of Title I of ERISA. 
  
 1.2 Purpose of Plan.2 Purpose of Plan: The primary purpose of the Plan is to supplement the benefits payable to
Participants under the Qualified Pension Plan to the extent that such benefits are curtailed by application of the Limitations. 
  
 1.3 Application of Plan:.3 Application of Plan: The terms of this Plan are applicable only to Participants who are in the Service of the Company or
a participating Affiliate on or after January 1, 1997. The benefits with respect to the Employees who terminated, retired, or died before this date shall be determined under the Prior Plan, except as explicitly provided elsewhere in this Plan.

  
 Section 2. Definitions:Section 2.
Definitions: 
  
 Wherever appropriate, words used in the
Plan in the singular may include the plural, or the plural may be read as the singular. References to one gender shall include the other. Whenever used in this Plan, including Section 1 and this Section 2, the following capitalized terms shall have
the meaning set forth below (unless otherwise indicated by the context): 
  
 2.1 “Actuarial Equivalent”2.1 ActuarialEquivalent means benefits of equal present value. For this purpose, present value means the value of an amount or series of amounts payable at various
times, determined as of a given date by application of the Plan’s actuarial assumptions. Actuarial assumptions are assumptions as to the occurrence of future events to be used to determine Actuarially Equivalent benefits. The future events to
be taken into 
  

 2 

 account are mortality for Participants, mortality for Beneficiaries, and an interest discount for the time value of
money. Actuarial Equivalencies shall be determined by the actuaries servicing the Plan, and such determination shall be binding and conclusive upon the Employer and its successors and assigns, and all parties claiming benefits under the Plan. For
purposes of the Plan, the actuarial assumptions in effect as of any date shall be the same as in effect as of such date under the Qualified Pension Plan. 
  
 2.2 “Affiliate”2.2 Affiliate means any corporation which, with the Company, is a member of a controlled group of corporations as defined
in Section 414(b) of the Code. 
  
 2.3
“Beneficiary”2.3 Beneficiary means the person, persons or entity designated or determined pursuant to the provisions of Section 10 of the Plan to receive the Supplemental Death Benefit. 
  
 2.4 “Board”2.4 Board means the Board of Directors of the
Company. 
  
 2.5 “Code”2.5 Code means the
Internal Revenue Code of 1986, as amended, and rules and regulations issued thereunder. 
  
 2.6 “Committee”2.6 Committee means the Administrative Committee provided for in Section 6 of the Plan. 
  
 2.7 “Company”2.7 Company means Southern National Corporation, a North Carolina corporation with its principal office at Winston-Salem,
North Carolina, or any successor thereto by merger, consolidation or otherwise. 
  
 2.8 “Effective Date”2.8 EffectiveDate means January 1, 1997. 
  
 2.9 “Eligible Employee”.9 EligibleEmployee means each Employee who is determined by the Committee to be a highly compensated or
management employee and 
  

 3 

 who is selected by the Committee to participate in the Plan. In no event shall an Employee who is a participant in the
Southern National Corporation Target Pension Plan be an Eligible Employee under this Plan. An Employee shall cease to be an Eligible Employee immediately upon the first to occur of the following: (i) the Employee’s termination of service; (ii)
determination by the Committee that the Employee is no longer a highly compensated or management employee; or (iii) determination by the Committee in its sole discretion that the Employee shall no longer be eligible to participate in the Plan. See
Section 2.17 with respect to provisions governing participation in the Plan by an Eligible Employee. 
  
 2.10 “Employee”.10 Employee means an individual in the Service of the Employer if the relationship between him and the Employer is the
legal relationship of employer and employee. 
  
 2.11
“Employer”2.11 Employer means the Company and participating Affiliates. See Section 14 for special provisions concerning participating Affiliates. 
  

2.12 “Entry Date”2.12 EntryDate means the Effective Date and thereafter January 1 of each Plan Year. Under special circumstances, such
as the acquisition of an Affiliate, the Committee may designate a date other than January 1 of a Plan Year as an Entry Date. 
  
 2.13 “ERISA”2.13 ERISA means the Employee Retirement Income Security Act of 1974, as amended (including amendments of the Code affected
thereby), and rules and regulations issued thereunder. 
  

 4 

 2.14 “Limitations”2.14 Limitations means the compensation and annual benefit limitations
imposed by Sections 401(a)(17) and 415 of the Code, or any successor provisions thereto. 
  
 2.15 “Non-Qualified Deferrals”2.15 Non-QualifiedDeferrals means any elective deferrals made by a Participant under the Southern National Corporation Non-Qualified Defined Contribution Plan.

  
 2.16 “Normal Retirement Age”2.16
NormalRetirementAge of a Participant means the Participant’s normal retirement age as determined pursuant to the provisions of the Qualified Pension Plan. The “Normal Retirement Date” of a Participant means the first day of the
calendar month coincident with or next following attainment of his Normal Retirement Age. 
  
 2.17 “Participant”2.17 Participant means with respect to any Plan Year an Eligible Employee who has entered the Plan and any former Employee who has a Supplemental Pension Benefit payable under the
Plan. An Eligible Employee or former Employee on the Effective Date who was a participant in the Retirement Plan Supplement portion of the Prior Plan immediately preceding the Effective Date, or who was eligible to enter the Retirement Plan
Supplement portion of the Prior Plan as a Participant on the Effective Date, shall be a Participant in this Plan on the Effective Date. An Eligible Employee who has not otherwise entered the Plan shall enter the Plan and become a Participant as of
the Entry Date determined by the Committee; provided, that an Eligible Employee shall not become a Participant in this Plan unless his Qualified Pension Plan Benefit is less than the benefit that would otherwise be payable to him under the Qualified
Pension Plan 
  

 5 

 if the Qualified Pension Plan did not apply the Limitations, or if the Qualified Pension Plan included Non-Qualified
Deferrals in the definition of compensation for benefit accrual purposes. A Participant shall cease to be a Participant as of the date he ceases to be an Eligible Employee or ceases to be a participant in the Qualified Pension Plan. A Participant
who separates from Service with the Employer and who later returns to Service will not be eligible to reenter this Plan and become a Participant except upon satisfaction of such terms and conditions as the Committee shall establish following the
Participant’s return to Service, whether or not the Participant shall have a Supplemental Pension Benefit remaining under the Plan on the date of his return to Service. The Participants are designated on Exhibit A attached hereto, as it may be
amended from time to time by the Committee. 
  
 2.18
“Plan”2.18 Plan means the unfunded, non-qualified deferred compensation plan as herein set out or as duly amended. 
  
 2.19 “Plan Year”2.19 PlanYear means the 12-calendar-month period ending on December 31 of each year. 
  
 2.20 “Prior Plan”2.20 PriorPlan means the Southern National
Corporation Supplemental Executive Retirement Plan in effect prior to January 1, 1997. 
  
 2.21 “Qualified Pension Plan”2.21 QualifiedPensionPlan means the Southern National Corporation Pension Plan (amended and restated as of January 1, 1996), as it may be amended from time to time.

  
 2.22 “Qualified Death Benefit”2.22
QualifiedDeathBenefit means the death benefit payable with respect to the Participant pursuant to the Qualified Pension Plan. 
  
 2.23 “Qualified Pension Benefit”2.23 QualifiedPensionBenefit means the benefit payable to the Participant pursuant to the Qualified
Pension Plan by reason of the 
  

 6 

 Participant’s termination of Service with the Employer for any reason other than death. The Qualified Pension
Benefit shall be computed on the basis of a single life annuity with respect to the Participant commencing on his Normal Retirement Date. 
  
 2.24 “Service”2.24 Service means employment by the Employer as an Employee. 
  
 2.25 “Spouse” or “Surviving Spouse”2.25 Spouse or SurvivingSpouse means, except as otherwise
provided in the Plan, the legally married spouse or surviving spouse of a Participant. 
  
 2.26 “Supplemental Death Benefit”2.26 SupplementalDeathBenefit means the death benefit payable to the Participant’s Beneficiary pursuant to the Plan. 
  
 2.27 “Supplemental Pension Benefit”2.27
SupplementalPensionBenefit means the benefit payable to the Participant pursuant to the Plan by reason of his termination of Service with the Employer for any reason other than death. 
  
 Section 3. Supplemental Pension BenefitSection 3. Supplemental Pension Benefit: 
  
 3.1 Amount.1 Amount: Except as otherwise provided in Exhibit B
attached hereto, as it may be amended from time to time by the Committee, the Supplemental Pension Benefit of a Participant shall be computed on the basis of a single life annuity with respect to him commencing on his Normal Retirement Date equal to
the difference between (a) and (b) below: 
  
 (a)
The annual amount of the Qualified Pension Benefit to which the Participant would have been entitled under the Qualified Pension Plan if the Qualified Pension Plan did not apply the Limitations, and if the Qualified Pension Plan included
Non-Qualified Deferrals in the definition of compensation for benefit accrual purposes; and 
  

 7 

 (b) The annual amount of the Qualified Pension Benefit actually payable to the
Participant under the Qualified Pension Plan. 
  
 3.2 Form of
Benefit.2 Form of Benefit: The Supplemental Pension Benefit payable to a Participant shall be paid in the same form under which the Qualified Pension Benefit is payable to the Participant. The Participant’s election under the Qualified
Pension Plan of any optional form of payment of his Qualified Pension Benefit (with the valid consent of his Surviving Spouse where required under the Qualified Pension Plan) shall also be applicable to the payment of his Supplemental Pension
Benefit. 
  
 3.3 Commencement of Benefit.3 Commencement of
Benefit: Payment of the Supplemental Pension Benefit to a Participant shall commence on the same date as payment of the Qualified Pension Benefit to the Participant commences. Any election under the Qualified Pension Plan made by the Participant
with respect to the commencement of payment of his Qualified Pension Benefit shall also be applicable with respect to the commencement of payment of his Supplemental Pension Benefit. 
  
 3.4 Approval of Committee3.4 Approval of Committee: Notwithstanding the provisions of Section 3.2 and 3.3 of the
Plan, an election made by the Participant under the Qualified Pension Plan with respect to the form of payment of his Qualified Pension Benefit (with the valid consent of his Surviving Spouse where required under the Qualified Pension 
  

 8 

 Plan), or the date for commencement of payment thereof, shall not be effective with respect to the form of payment or
date for commencement of payment of his Supplemental Pension Benefit hereunder unless such election is expressly approved in writing by the Committee with respect to his Supplemental Pension Benefit. If the Committee shall not approve such election
in writing, then the form of payment or date for commencement of payment of the Participant’s Supplemental Pension Benefit shall be selected by the Committee in its sole discretion. 
  
 3.5 Actuarial Equivalent.5 Actuarial Equivalent: A Supplemental Pension Benefit which is payable in any form other
than a single life annuity over the lifetime of the Participant, or which commences at any time other than the Participant’s Normal Retirement Date, shall be the Actuarial Equivalent of the Supplemental Pension Benefit. 
  
 Section 4. Supplemental Death BenefitSection 4. Supplemental
Death Benefit: 
  
 4.1 Death Prior to
Commencement of Supplemental Pension Benefit.1 Death Prior to Commencement of Supplemental Pension Benefit: 
  
 4.1.1 If a Participant dies prior to commencement of his Supplemental Pension Benefit under circumstances in which a Qualified Death
Benefit is payable to his Beneficiary, then a Supplemental Death Benefit shall be payable to his Beneficiary. The Supplemental Death Benefit payable to the Participant’s Beneficiary shall be equal to the difference between (a) and (b) below:

  
 (a) The annual amount of the Qualified Death
Benefit to which the Participant’s Beneficiary would have been entitled under the Qualified Pension Plan if the Qualified Pension Plan did not apply the Limitations, and if the Qualified Pension Plan included Non-Qualified Deferrals in the
definition of compensation for benefit accrual purposes; and 
  
 (b) The annual amount of the Qualified Death Benefit actually payable to the Participant’s Beneficiary under the Qualified Pension Plan. 
  

 9 

 4.1.2 The Supplemental Death Benefit shall be payable to the Participant’s
Beneficiary in the same form and shall commence on the same date as the Qualified Death Benefit. 
  
 4.2 Death After Commencement of Supplemental Pension Benefit.2 Death After Commencement of Supplemental Pension Benefit: If a Participant dies
after commencement of his Supplemental Pension Benefit, payments shall continue following his death to his Beneficiary only if his Supplemental Pension Benefit was payable in a form providing for such payments, and only in accordance with such form.

  
 Section 5. VestingSection 5. Vesting: 
  
 The Supplemental Pension Benefit of each Participant under the Plan shall be
fully vested (that is, nonforfeitable) as of the date the Participant becomes fully vested in his Qualified Pension Benefit. 
  
 Section 6. Administration by CommitteeSection 6. Administration by Committee: 
  
 6.1 Membership of Committee.1 Membership of Committee: The Committee shall consist of not less than three nor more
than seven individuals who shall be appointed by the Board to serve at the pleasure of the Board. Any member of the Committee may resign, and his successor, if any, shall be appointed by the Board. The Committee shall be responsible for the general
administration and interpretation of the Plan and for carrying out its provisions, except to the extent all or any of such obligations are specifically imposed on the Board. 
  
 6.2 Committee Officers; Subcommittee.2 Committee Officers; Subcommittee: The members of the Committee shall elect a
Chairman and may elect an acting 
  

 10 

 Chairman. They shall also elect a Secretary and may elect an acting Secretary, either of whom may be but need not be a
member of the Committee. The Committee may appoint from its membership such subcommittees with such powers as the Committee shall determine, and may authorize one or more of its members or any agent to execute or deliver any instruments or to make
any payment in behalf of the Committee. The Chairman of the Committee shall constitute the Plan Administrator and shall be agent for service of legal process on the Plan. 
  
 6.3 Committee Meetings.3 Committee Meetings: The Committee shall hold such meetings upon such notice, at such places
and at such intervals as it may from time to time determine. Notice of meetings shall not be required if notice is waived in writing by all the members of the Committee at the time in office, or if all such members are present at the meeting.

  
 6.4 Transaction of Business.4 Transaction of Business:
A majority of the members of the Committee at the time in office shall constitute a quorum for the transaction of business. All resolutions or other actions taken by the Committee at any meeting shall be by vote of a majority of those present at any
such meeting and entitled to vote. Resolutions may be adopted or other action taken without a meeting upon written consent thereto signed by all of the members of the Committee. 
  
 6.5 Committee Records.5 Committee Records: The Committee shall maintain full and complete records of its
deliberations and decisions. The minutes of its proceedings shall be conclusive proof of the facts of the operation of the Plan. The records of the Committee shall contain all relevant data pertaining to individual Participants and their rights
under the Plan. 
  

 11 

 6.6 Establishment of Rules.6 Establishment of Rules: Subject to the limitations of the Plan, the
Committee may from time to time establish rules or by-laws for the administration of the Plan and the transaction of its business. 
  
 6.7 Conflicts of Interest6.7 Conflicts of Interest: No individual member of the Committee shall have any right to vote or decide upon any matter
relating solely to himself or to any of his rights or benefits under the Plan (except that such member may sign unanimous written consent to resolutions adopted or other action taken without a meeting). 
  
 6.8 Correction of Errors.8 Correction of Errors: The Committee may
correct errors and, so far as practicable, may adjust any benefit or credit or payment accordingly. The Committee may in its discretion waive any notice requirements in the Plan; provided, that a waiver of notice in one or more cases shall not be
deemed to constitute a waiver of notice in any other case. With respect to any power or authority which the Committee has discretion to exercise under the Plan, such discretion shall be exercised in a nondiscriminatory manner. 
  
 6.9 Authority to Interpret Plan.9 Authority to Interpret Plan: Subject
to the claims procedure set forth in Section 13, the Committee and the Plan Administrator shall have the duty and discretionary authority to interpret and construe the provisions of the Plan and decide any dispute which may arise regarding the
rights of Participants hereunder, including the discretionary authority to interpret the Plan and to make determinations as to eligibility for participation and benefits under the Plan. Interpretations and determinations by the Committee and the
Plan Administrator shall apply uniformly to all persons similarly situated and shall be binding and conclusive on all interested persons. Such interpretations and determinations shall only be set aside if the Committee and the Plan Administrator are
found to have acted arbitrarily and capriciously in interpreting and construing the provisions of the Plan. 
  

 12 

 6.10 Third Party Advisors6.10 Third Party Advisors: The Committee may engage an attorney,
accountant or any other technical advisor on matters regarding the operation of the Plan and to perform such other duties as shall be required in connection therewith, and may employ such clerical and related personnel as the Committee shall deem
requisite or desirable in carrying out the provisions of the Plan. 
  
 6.11 Compensation of Members.11 Compensation of Members: No fee or compensation shall be paid to any member of the Committee for his service as such. 
  
 6.12 Committee Expenses.12 Committee Expenses: The Committee shall be entitled to reimbursement by the Company for
its reasonable expenses properly and actually incurred in the performance of its duties in the administration of the Plan. 
  
 6.13 Indemnification of Committee.13 Indemnification of Committee: No member of the Committee shall be personally liable by reason of any contract
or other instrument executed by him or on his behalf as a member of the Committee nor for any mistake of judgment made in good faith, and the Company shall indemnify and hold harmless, directly from its own assets (including the proceeds of any
insurance policy the premiums for which are paid from the Company’s own assets), each member of the Committee and each other officer, employee, or director of the Company to whom any duty or power relating to the administration or
interpretation of the Plan may be delegated or allocated, against any unreimbursed or uninsured cost or expense (including any sum paid in settlement of a claim with the prior written approval of the Board) arising out of any act or omission to act
in connection with the Plan unless arising out of such person’s own fraud, bad faith, willful misconduct or gross negligence. 
  

 13 

 Section 7. FundingSection 7. Funding: 
  
 The Plan is intended to be both an excess benefit plan and an unfunded plan
of deferred compensation maintained for a select group of highly compensated or management Employees. The obligation of the Employer to make payments hereunder shall constitute a general unsecured obligation of the Employer to the Participant. No
Participant or his Beneficiary shall have any legal or equitable rights, interest or claims in any particular asset of the Employer by reason of the Employer’s obligation hereunder, and nothing contained herein shall create or be construed as
creating any other fiduciary relationship between the Employer and a Participant or any other person. To the extent that any person acquires a right to receive payments from the trust or the Employer hereunder, such right shall be no greater than
the right of an unsecured creditor of the Employer. 
  
 Section 8. Allocation of ResponsibilitiesSection 8. Allocation of Responsibilities: The persons responsible for the Plan and the duties and responsibilities allocated to each, which shall be carried out in accordance
with the other applicable terms and provisions of the Plan, shall be as follows: 
  
 8.1. Board.1. Board: 
  
 (i) To amend the Plan (other than the Exhibits); 
  
 (ii) To appoint and remove members of the Committee; and 
  
 (iii) To terminate the Plan. 
  

 14 

 8.2 Committee.2 Committee: 
  
 (i) To determine the Employees eligible to participate in the Plan; 
  
 (ii) To interpret the provisions of the Plan and to
determine the rights of the Participants under the Plan, except to the extent otherwise provided in Section 13 relating to claims procedure; 
  
 (iii) To administer the Plan in accordance with its terms, except to the extent powers to administer the Plan are specifically delegated
to another person or persons as provided in the Plan; 
  
 (iv) To account for the Supplemental Pension Benefits of Participants; 
  
 (v) To direct the Employer in the payment of benefits; and 
  
 (vi) To the extent necessary or advisable, to amend the Exhibits attached hereto. 
  
 8.3 Plan Administrator.3 Plan Administrator: 
  
 (i) To file such reports as may be required with the United
States Department of Labor, the Internal Revenue Service and any other government agencies to which reports may be required to be submitted from time to time; 
  

(ii) To provide for disclosure of Plan provisions and other information relating to the Plan to Participants and other interested
parties; and 
  
 (iii) To administer the claims
procedure to the extent provided in Section 13. 
  
 Section
9. Benefits Not Assignable; Facility of PaymentsSection 9. Benefits Not Assignable; Facility of Payments: 
  
 9.1 Benefits Not Assignable.1 Benefits Not Assignable: No portion of any benefit held or paid under the Plan with respect to any Participant shall
be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt so to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge the same 
  

 15 

 shall be void, nor shall any portion of such benefit be in any manner payable to any assignee, receiver or any one
trustee, or be liable for his debts, contracts, liabilities, engagements or torts, or be subject to any legal process to levy upon or attach. 
  
 9.2 Payments to Minors and Others.2 Payments to Minors and Others: If any individual entitled to receive a payment under the Plan shall be
physically, mentally or legally incapable of receiving or acknowledging receipt of such payment, the Committee, upon the receipt of satisfactory evidence of his incapacity and satisfactory evidence that another person or institution is maintaining
him and that no guardian or committee has been appointed for him, may cause any payment otherwise payable to him to be made to such person or institution so maintaining him. Payment to such person or institution shall be in full satisfaction of all
claims by or through the Participant to the extent of the amount thereof. 
  
 Section 10. BeneficiarySection 10. Beneficiary: 
  
 The Participant’s Beneficiary shall be the same person or persons designated or determined under the Qualified Pension Plan to receive the Qualified Death Benefit upon the death of the Participant (the
“Qualified Plan Beneficiary”); provided that any time prior to the death of the Participant, the Participant may file a written election with the Committee (which election shall be subject to change at any time upon notice in writing by
the Participant to the Committee) for the Supplemental Death Benefit to be paid to a person or persons other than the Qualified Plan Beneficiary, in which event the Supplemental Death Benefit shall be made to such other person or persons in the same
amount and over the same period as the Supplemental Death Benefit would have been paid to the Qualified Plan Beneficiary. 
  

 16 

 Section 11. Amendment and Termination of PlanSection 11. Amendment and Termination of
Plan: 
  
 The Board may amend or terminate the Plan at
any time; provided, that in no event shall such amendment or termination reduce any Participant’s Supplemental Pension Benefit as of the date of such amendment or termination, nor shall any such amendment affect the terms of the Plan relating
to the payment of such Supplemental Pension Benefit without the Participant’s prior written consent to such amendment. Any such amendment or termination shall be made pursuant to a resolution of the Board and shall be effective as of the date
specified in such resolution. Upon termination of the Plan, distribution of the benefits payable to or on behalf of the Participant shall be made in the manner and at the time described in Sections 3 and 4 of the Plan. No additional benefits shall
accrue following termination of the Plan. 
  
 Section
12. Communication to ParticipantsSection 12. Communication to Participants: 
  
 The Company shall communicate the principal terms of the Plan to the Participants. The Company shall make a copy of the Plan available for inspection by
Participants and their beneficiaries during reasonable hours, at the principal office of the Company. 
  
 Section 13. Claims ProcedureSection 13. Claims Procedure: 
  
 The following claims procedure shall apply with respect to the Plan: 
  
 13.1 Filing of a Claim for Benefits.1 Filing of a Claim for Benefits:
If a Participant or Beneficiary (the “Claimant”) believes that he is entitled to benefits under the Plan which are not being paid to him or which are not being accrued for his benefit, he shall file a written claim therefor with the Plan
Administrator. In the event the Plan Administrator shall be 
  

 17 

 the Claimant, all actions which are required to be taken by the Plan Administrator pursuant to this Section 13 shall be
taken instead by another member of the Committee designated by the Committee. 
  
 13.2 Notification to Claimant of Decision.2 Notification to Claimant of Decision: Within 90 days after receipt of a claim by the Plan Administrator (or within 180 days if special circumstances require an
extension of time) the Plan Administrator shall notify the Claimant of his decision with regard to the claim. In the event of such special circumstances requiring an extension of time, there shall be furnished to the Claimant prior to expiration of
the initial 90-day period written notice of the extension, which notice shall set forth the special circumstances and the date by which the decision shall be furnished. If such claim shall be wholly or partially denied, notice thereof shall be in
writing and worded in a manner calculated to be understood by the Claimant, and shall set forth: (i) the specific reason or reasons for the denial; (ii) specific reference to pertinent provisions of the Plan on which the denial is based; (iii) a
description of any additional material or information necessary for the Claimant to perfect the claim and an explanation of why such material or information is necessary; and (iv) an explanation of the procedure for review of the denial. If the Plan
Administrator fails to notify the Claimant of the decision in timely manner, the claim shall be deemed denied as of the close of the initial 90-day period (or the close of the extension period, if applicable). 
  
 13.3 Procedure for Review.3 Procedure for Review: Within 60 days
following receipt by the Claimant of notice denying his claim, in whole or in part, or, if such notice shall not be given, within 60 days following the latest date on which such notice could have been timely given, the Claimant shall appeal denial
of the claim by filing a written 
  

 18 

 application for review with the Committee. Following such request for review, the Committee shall fully and fairly review
the decision denying the claim. Prior to the decision of the Committee, the Claimant shall be given an opportunity to review pertinent documents and to submit issues and comments in writing. 
  
 13.4 Decision on Review.4 Decision on Review: The decision on review
of a claim denied in whole or in part by the Plan Administrator shall be made in the following manner: 
  
 13.4.1 Within 60 days following receipt by the Committee of the request for review (or within 120 days if special circumstances require an
extension of time), the Committee shall notify the Claimant in writing of its decision with regard to the claim. In the event of such special circumstances requiring an extension of time, written notice of the extension shall be furnished to the
Claimant prior to the commencement of the extension. If the decision on review is not furnished in a timely manner, the claim shall be deemed denied as of the close of the initial 60-day period (or the close of the extension period, if applicable).

  
 13.4.2 With respect to a claim that is denied
in whole or in part, the decision on review shall set forth specific reasons for the decision, shall be written in a manner calculated to be understood by the Claimant, and shall cite specific references to the pertinent Plan provisions on which the
decision is based. 
  
 13.4.3 The decision of the
Committee shall be final and conclusive. 
  
 13.5 Action by
Authorized Representative of Claimant.5 Action by Authorized Representative of Claimant: All actions set forth in this Section 13 to be taken by the Claimant may likewise be taken by a representative of the Claimant duly authorized by him to act
in his behalf on such matters. The Plan Administrator and the Committee may require such evidence as either may reasonably deem necessary or advisable of the authority to act of any such representative. 
  

 19 

 Section 14. Parties to the PlanSection 14. Parties to the Plan: 

 
 Subject to the approval of the Board, an Affiliate that has adopted the
Qualified Pension Plan may adopt this Plan and become an employer-party to this Plan by resolutions approved by its Board of Directors. The Affiliates which are employer-parties to this Plan are listed on Exhibit B attached hereto, as the same may
be amended from time to time by the Committee. The following special provisions shall apply to all employer-parties to the Plan: 
  
 14.1 Single Plan.1 Single Plan: The Plan shall apply as a single plan with respect to all parties as if there were only one employer-party.

  
 14.2 Service; Allocation of Costs.2 Service; Allocation of
Costs: Service for purposes of the Plan shall be interchangeable among employer-parties to the Plan and shall not be deemed interrupted or terminated by the transfer at any time of a Participant from the Service of one employer-party to the
Service of another employer-party. In determining the cost of providing benefits under the Plan, each employer-party shall be responsible for the cost with respect to Service and compensation paid by each such party, which cost for each such party
shall be determined by the actuaries servicing the Plan. 
  
 14.3 Committee.3 Committee: The Committee which administers the Plan as applied to the Company shall also be the Committee as applied to each other employer-party to the Plan. 
  
 14.4 Authority to Amend and Terminate.4 Authority to Amend and
Terminate: The Board of the Company shall have the power to amend or terminate the Plan as applied to each employer-party. 
  

 20 

 Section 15. Miscellaneous ProvisionsSection 15. Miscellaneous Provisions:

  
 15.1 Notices.1 Notices: Each Participant who is not in
Service and each Beneficiary shall be responsible for furnishing the Plan Administrator with his current address for the mailing of notices, reports, and benefit payments. Any notice required or permitted to be given to such Participant or
Beneficiary shall be deemed given if directed to such address and mailed by regular United States mail, first class, postage prepaid. If any check mailed to such address is returned as undeliverable to the addressee, mailing of checks will be
suspended until the Participant or Beneficiary furnishes the proper address. This provision shall not be construed as requiring the mailing of any notice or notification otherwise permitted to be given by posting or by other publication. 

 
 15.2 Lost Distributees.2 Lost Distributees: A benefit shall be
deemed forfeited if the Plan Administrator is unable after a reasonable period of time to locate the Participant or Beneficiary to whom payment is due; provided, however, that such benefit shall be reinstated if a valid claim is made by or on behalf
of the Participant or Beneficiary for the forfeited benefit. 
  
 15.3 Reliance on Data.3 Reliance on Data: The Employer, the Committee and the Plan Administrator shall have the right to rely on any data provided by the Participant or by any Beneficiary. Representations of such data shall be
binding upon any party seeking to claim a benefit through a Participant, and the Employer, the Committee and the Plan Administrator shall have no obligation to inquire into the accuracy of any representation made at any time by a Participant or
Beneficiary. 
  
 15.4 Receipt and Release for Payments.4
Receipt and Release for Payments: Any payment made from the Plan to or with respect to any Participant or 
  

 21 

 Beneficiary, or pursuant to a disclaimer by a Beneficiary, shall, to the extent thereof, be in full satisfaction of all
claims hereunder against the Plan and the Employer with respect to the Plan. The recipient of any payment from the Plan may be required by the Committee, as a condition precedent to such payment, to execute a receipt and release with respect thereto
in such form as shall be acceptable to the Committee. 
  
 15.5
Headings.5 Headings: The headings and subheadings of the Plan have been inserted for convenience of reference and are to be ignored in any construction of the provisions hereof. 
  
 15.6 Continuation of Employment.6 Continuation of Employment: The establishment of the Plan shall not be construed as
conferring any legal or other rights upon any Employee or any persons for continuation of employment, nor shall it interfere with the right of the Employer to discharge any Employee or to deal with him without regard to the effect thereof under the
Plan. 
  
 15.7 Construction.7 Construction: The provisions
of the Plan shall be construed and enforced according to the laws of the State of North Carolina. 
  
 15.8 Nonliability of Employer.8 Nonliability of Employer: The Employer does not guarantee the Participants, former Participants or Beneficiaries
against loss of or depreciation in value of any right or benefit that any of them may acquire under the terms of the Plan, nor does the Employer guarantee to any of them that the assets of the Employer will be sufficient to provide any or all
benefits payable under the Plan at any time, including any time that the Plan may be terminated or partially terminated. 
  

 22 

 15.9 Severability.9 Severability: All provisions contained in this Plan shall be severable, and in
the event that any one or more of them shall be held to be invalid by any competent court, this Plan shall be interpreted as if such invalid provisions were not contained herein. 
  
 15.10 Merger and Consolidation.10 Merger and Consolidation: The Employer shall not consolidate or merge into or with
another corporation or entity, or transfer all or substantially all of its assets to another corporation, partnership, trust or other entities (a “Successor Entity”) unless such Successor Entity shall assume the rights, obligations and
liabilities of the Employer under the Plan and upon such assumption, the Successor Entity shall become obligated to perform the terms and conditions of the Plan. 
  
 15.11 Withholding Taxes.11 Withholding Taxes: The Employer shall satisfy all federal, state and local withholding tax
requirements prior to making any benefit payments under the Plan. All benefit payments shall be net of any amounts sufficient to satisfy all federal, state and local withholding tax requirements. 
  
 15.12 General Conditions.12 General Conditions: Except as otherwise
expressly provided in the Plan, all terms and conditions of the Qualified Pension Plan applicable to a Qualified Pension Benefit or a Qualified Death Benefit shall also be applicable to a Supplemental Pension Benefit or a Supplemental Death Benefit.
Any Qualified Pension Benefit or Qualified Death Benefit, or any other benefit payable under the Qualified Pension Plan, shall be determined and paid solely in accordance with the terms and conditions of the Qualified Pension Plan and nothing in
this Plan shall operate or be construed in any way to modify, amend or affect the terms and conditions of the Qualified Pension Plan. 
  

 23 

 IN WITNESS WHEREOF, this non-qualified, deferred compensation plan is executed in behalf of the Company
on the 25th day of March, 1997, to be effective as of January 1, 1997. 
  

			
	SOUTHERN NATIONAL CORPORATION
		
	 By:
	 	 /s/ Robert E. Greene

	 	 	     President

  

	
	 Attest:

	
	 /s/ Jerone C. Herring

	Secretary
	  
 [Corporate
Seal]

  

 24 

 1997 DECLARATION OF AMENDMENT TO 
 BB&T CORPORATION 
 NON-QUALIFIED DEFINED BENEFIT PLAN 
  
 THIS DECLARATION OF AMENDMENT, made the 28th day of October, 1997, by BB&T CORPORATION (the “Company”), as sponsor of the BB&T Corporation Non-Qualified Defined Benefit Plan
(the “Plan”). 
  
 R E C I
T A L S: 
  
 It is deemed advisable
for the Company to amend the Plan to: (i) allow the Committee to select employees of affiliates of the Company that have not adopted the Company’s tax-qualified pension plan to participate in the Plan; and (ii) make such other changes as are
deemed necessary or advisable to improve the administration of the Plan. 
  
 NOW, THEREFORE, it is declared, that the Plan shall be and hereby is amended, as follows: 
  
 1. Effective as of January 1, 1997, in Section 2.9(i), the word “service” shall be capitalized. 
  
 2. Effective as of the date hereof, insert the following new Section 15
immediately after Section 14 and renumber existing Section 15 accordingly: 
  
 “Section 15. Special Provisions Concerning Employees of Non-Participating Affiliates: 
  
 Notwithstanding any other provision of the Plan to the contrary, an employee of an Affiliate or other entity related to the Company that
has not adopted the Qualified Pension Plan (a ‘Non-Participating Affiliate’) may become or continue as a Participant in this Plan, subject to the following special provisions: 
  
 15.1 Continuation of Participation Following Transfer To Non-Participating Affiliate:

  
 15.1.1 If selected by the Committee, a
Participant in Service with the Employer who is transferred to the employment of a Non-Participating 
  

 25 

 Affiliate (a ‘Transferred Participant’) shall continue as a Participant in the Plan; provided,
that the Transferred Participant continues to be a highly compensated or management employee. A Transferred Participant shall cease to be a Participant in the Plan as of the first to occur of the following: (i) determination by the Committee that
the Transferred Participant is no longer a highly compensated or management employee; or (ii) determination by the Committee in its sole discretion that the Transferred Participant shall no longer be eligible to participate in the Plan. 

 
 15.1.2 The Supplemental Pension Benefit of a Transferred
Participant who continues his participation in the Plan shall be determined and paid pursuant to the provisions of Sections 3 and 5 as if the Transferred Participant continued his participation in the Qualified Pension Plan, except that solely for
purposes of Section 3.1(a) all of his compensation and service with a Non-Participating Affiliate shall be taken into account. 
  
 15.1.3 The Supplemental Death Benefit payable to the Beneficiary of a Transferred Participant who continues his participation in the Plan
shall be determined and paid pursuant to the provisions of Sections 4 and 5 as if the Transferred Participant continued his participation in the Qualified Pension Plan, except that solely for purposes of Section 4.1(a) all of his compensation and
service with a Non-Participating Affiliate shall be taken into account. 
  
 15.1.4 In no event shall the provisions of this Section 15.1 alter, modify or otherwise affect the determination of the amounts described in Section 3.1(b) and Section 4.1(b). Such amounts shall be determined solely
in accordance with the provisions of the Qualified Pension Plan and without regard to the provisions of this Section 15.1. 
  
 15.2 Participation of Employees of Non-Participating Affiliates Who Have Not Previously Entered the Plan: 
  
 15.2.1 The Committee may select an employee of a
Non-Participating Affiliate who has not entered the Plan (a ‘Special Employee’) to become a Participant in the Plan; provided, that the Special Employee is determined by the Committee to be a highly compensated or management employee. If
selected, a Special Employee shall enter the Plan and become a Participant as of the Entry Date determined by the Committee. Such a Participant shall cease to be a Participant as of the first to occur of the following: (i) determination by the
Committee that the Special Employee is no longer a highly compensated or management employee; or (ii) determination by the Committee in its sole discretion that the Special Employee shall no longer be eligible to participate in the Plan. 

 

 26 

 15.2.2 The Supplemental Pension Benefit of a Special Employee who becomes a Participant
in the Plan shall be determined and paid pursuant to the provisions of Sections 3 and 5 as if the Special Employee had been entitled to participate in the Qualified Pension Plan, except that solely for purposes of Section 3.1(a) all of his
compensation and service with a Non-Participating Affiliate shall be taken into account. 
  

 27 

 15.2.3 The Supplemental Death Benefit payable to the Beneficiary of a Special Employee
who becomes a Participant in the Plan shall be determined and paid pursuant to the provisions of Sections 4 and 5 as if the Special Employee had been entitled to participate in the Qualified Pension Plan, except that solely for purposes of Section
4.1(a) all of his compensation and service with a Non-Participating Affiliate shall be taken into account. 
  
 15.2.4 In no event shall the provisions of this Section 15.2 alter, modify or otherwise affect the determination of the amounts described
in Section 3.1(b) and Section 4.1(b). Such amounts shall be determined solely in accordance with the provisions of the Qualified Pension Plan and without regard to the provisions of this Section 15.2. 
  
 15.3 Rules: The Committee may establish any
rules or regulations necessary to implement the provisions of this Section 15.” 
  
 IN WITNESS WHEREOF, this Amendment has been executed by the Company as of the day and year first above written. 
  

			
	BB&T CORPORATION
		
	 By:
	 	     /s/ Robert E. Greene

	 	 	         Senior Executive Vice President

  

	
	 Attest:

	
	 /s/ Jerone C. Herring

	Secretary
	
	 [Corporate Seal]

 2003 DECLARATION OF AMENDMENT 
 TO BB&T CORPORATION 
 NON-QUALIFIED DEFINED BENEFIT PLAN 
  
 THIS DECLARATION OF AMENDMENT, made the 28th day of October, 2003, by BB&T CORPORATION (the “Company”), as sponsor of the BB&T Corporation
Non-Qualified Defined Benefit Plan (the “Plan”). 
  
 R E C I T A L S : 
  
 Effective as of January 1, 1997, the Company established the Plan for the benefit of certain eligible executives of the Company and its affiliates.
Effective as of January 1, 1996, First Virginia Banks, Inc. (“First Virginia”) established the First Virginia Supplemental Pension Trust Plan (the “First Virginia Plan”) for the benefit of certain eligible executives of First
Virginia and its affiliates. On July 1, 2003, First Virginia was merged into the Company and, as a result of the corporate merger, the Company became the sponsor of the First Virginia Plan. Effective as of the close of business of the Plan on
December 31, 2003, the First Virginia Plan was merged into the Plan. It is deemed advisable to amend the Plan to reflect the merger of the First Virginia Plan into the Plan. 
  
 NOW, THEREFORE, it is declared, that effective as of the close of business of the Plan on December 31, 2003, the Plan shall
be and hereby is amended as follows: 
  
 1. Replace Exhibit A to
the Plan with Exhibit A attached hereto. 
  
 2. Insert the
following subparagraph (6) to Exhibit B to the Plan immediately after subparagraph (5): 
  
 “(6) First Virginia Banks, Inc. - On July 1, 2003, First Virginia Banks, Inc. (‘First Virginia’) was merged into the
Company and as a result of such corporate merger, the Company became the sponsor of the First Virginia Supplemental Pension Trust Plan (the ‘First Virginia Plan’). Effective as of the close of business of the Plan on December 31, 2003 (the
‘Plan Merger Date’), the First Virginia Plan was merged into this Plan. The following special provisions shall apply to employees of First Virginia who were participants in the First Virginia Plan as of the Plan Merger Date (the
‘Former First Virginia Plan Participants’): 
  
 (a) Each Former First Virginia Plan Participant shall become a Participant in this Plan on the Merger Date. 

 (b) With respect to each Former First Virginia Plan Participant, the annual amount for
purposes of Sections 3.1 and 4.1 of this Plan shall be the sum of (i) and (ii), where: 
  
 (i) is the annual amount described in either Section 3.1 or 4.1, whichever shall be applicable, taking into account only the compensation
and service of the Former First Virginia Plan Participant after the Plan Merger Date; and 
  
 (ii) is the applicable annual amount described in Section 4 of the First Virginia Plan determined as of the Plan Merger Date and
determined by taking into account the First and Second Amendments to the First Virginia Plan. 
  
 3. Replace Exhibit C to the Plan with Exhibit C attached hereto. 
  
 IN WITNESS WHEREOF, this Declaration of Amendment has been executed by the Company as of the day and year first above
written. 
  

	
	BB&T CORPORATION
	
	 By:    /s/ Robert E. Greene

	               Authorized Officer

  

	
	 Attest:

	     /s/ Barbara J. Chapman

	 Assistant Secretary

	
	 [Corporate Seal]

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