Document:

Securities Purchase Agreement

 

Exhibit 10.1

SERIES F PREFERRED STOCK PURCHASE AGREEMENT

     This Series F Preferred Stock Purchase Agreement (this “Agreement”) dated as of
February 1, 2005, is made and entered into by and among Triad Pharmaceuticals, Inc., a Delaware
corporation (the “Corporation”), Kos Pharmaceuticals, Inc., a Florida corporation
(“Kos”), and 2004 Oikos Investment Partners, LP, a limited partnership (“Oikos” and
together with Kos, the “Purchasers”).

     WHEREAS, each of the Purchasers desires to purchase from the Corporation, and the Corporation
desires to issue and sell to each of the Purchasers, a number of shares of the Corporation’s Series
F Convertible Preferred Stock, $.10 par value per share (“Series F Preferred Stock”), at
the First Closing (as defined herein), on the terms and subject to the conditions set forth herein;
and

     WHEREAS, each of the Purchasers and the Corporation have agreed that, subject to the
achievement by the Corporation of the milestones described on Exhibit A attached hereto
(the “Milestones”) on or prior to August 1, 2006 (the “Milestone Date”), the
Corporation will issue and sell to the Purchasers, and the Purchasers will purchase from the
Corporation at the Second Closing (as defined herein), additional shares of Series F Preferred
Stock, on the terms and subject to the conditions set forth herein;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements
herein contained, the parties hereby agree as follows:

     1. Authorization; Sale of Shares

          1.1 Authorization; Amendment to Certificate of Incorporation. Before the First
Closing (as defined in Section 2.1), the Corporation will have duly authorized the sale and
issuance, pursuant to the terms of this Agreement, of 2,526,408 shares of Series F Preferred Stock,
having the rights, privileges, preferences and restrictions set forth in the Amended and Restated
Certificate of Incorporation attached hereto as Exhibit B (the “Certificate of
Incorporation”). Before the First Closing, the Corporation will have adopted and filed with
the Secretary of State of the State of Delaware the Certificate of Incorporation.

          1.2 Purchase and Sale of Shares.

               (a) The Corporation shall sell and issue to each Purchaser, and each Purchaser, severally and
not jointly, shall purchase from the Corporation, at the First Closing (as defined in Section 2.1)
and upon the terms and conditions hereinafter set forth, 631,602 shares of Series F Preferred
Stock.

               (b) Subject to the achievement by the Corporation of the Milestones on or prior to the
Milestone Date, the Corporation shall sell and issue to each Purchaser, and each Purchaser,
severally and not jointly, shall purchase from the Corporation, at the Second Closing (as defined
in Section 2.2) and upon the terms and conditions hereinafter set forth,

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631,602 shares of Series F Preferred Stock, (the shares of Series F Preferred Stock so
purchased at the First Closing and at the Second Closing collectively being referred to hereinafter
as the “Shares”).

               (c) The purchase price for the shares of Series F Preferred Stock to be sold pursuant to this
Agreement shall be $6.3331 per share.

          1.3 Use of Proceeds. The Corporation will use the net proceeds received from the sale
of the Shares for research and development, product development and other general corporate
purposes, including, without limitation, the payment of accounts payable and the compensation of
employees and consultants.

     2. Closings.

          2.1 First Closing. The first closing of the sale and purchase of the shares of Series
F Preferred Stock under this Agreement (the “First Closing”) shall take place at the
offices of Foley Hoag llp, Seaport World Trade Center West, 155 Seaport Boulevard, Boston,
Massachusetts 02210, simultaneously with the execution and delivery of this Agreement. At the
First Closing:

               (a) the Corporation shall execute and deliver to the Purchasers, and the Purchasers shall
execute and deliver to the Corporation (by means of the financing signature page in the form
attached hereto as Exhibit C (the “Purchaser Signature Page”), the Amended and
Restated Registration Rights Agreement in the form attached hereto as Exhibit D (the
“Registration Rights Agreement”);

               (b) the Corporation shall execute and deliver to the Purchasers, and the Purchasers shall
execute and deliver to the Corporation (by means of the Purchaser Signature Page), the Stockholders
Agreement in the form attached hereto as Exhibit E (the “Stockholders Agreement”
and, together with the Registration Rights Agreement, the “Related Agreements”);

               (c) each of the Trustees of Tufts University (“Tufts”), William W. Bachovchin
(“Bachovchin”) and Stone Life Sciences Holdings, Ltd. (“Stone Life”) shall have
executed and delivered the Related Agreements and such other documents consistent with the terms
hereof as they shall reasonably request;

               (d) the Corporation shall deliver to the Purchasers (i) a long form certificate of good
standing of the Corporation certified by the Secretary of State of the State of Delaware and (ii) a
certificate as to the due qualification of the Corporation as a foreign corporation in The
Commonwealth of Massachusetts certified by the Secretary of State of The Commonwealth of
Massachusetts, each dated not more than forty-five (45) days prior to the First Closing;

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               (e) the Corporation shall deliver to the Purchasers the Certificate of Incorporation as in
effect on the date hereof, certified by the Secretary of State of the State of Delaware as of the
most recent practicable date;

               (f) the Corporation shall deliver to the Purchasers a Certificate of the Secretary of the
Corporation attesting as to (i) the Bylaws of the Corporation as in effect on the date hereof, (ii)
the signatures and titles of the officers of the Corporation executing this Agreement, the Related
Agreements or any certificate to be executed and delivered by the Corporation at the First Closing
pursuant to this Section 2.1, and (iii) the resolutions of the Board of Directors and stockholders
of the Corporation authorizing and approving the adoption of the Certificate of Incorporation, and
all matters in connection with this Agreement and the Related Agreements, and the transactions
contemplated hereby and thereby;

               (g) Foley Hoag llp, counsel for the Corporation, shall deliver to the Purchasers an
opinion, dated as of the date hereof, in substantially the form attached hereto as Exhibit
F;

               (h) the Corporation shall deliver to each Purchaser a certificate for the shares of Series F
Preferred Stock purchased by such Purchaser at the First Closing, registered in the name of such
Purchaser; and

               (i) each Purchaser shall pay to the Corporation, by wire transfer of immediately available
funds, by check, or by conversion of the outstanding principal amount and any accrued interest of
any promissory note of the Corporation held by such Purchaser, as indicated on the Schedule of
Purchasers, the aggregate purchase price for the shares of Series F Preferred Stock being
purchased by such Purchaser at the First Closing. In the event that payment by a Purchaser is
made, in whole or in part, by conversion of the outstanding principal amount and any accrued
interest of any promissory note of the Corporation held by such Purchaser, then such Purchaser
shall surrender to the Corporation for conversion at the First Closing any such promissory note.
The First Closing shall not be deemed to occur, and all such payments by any Purchaser shall be
deemed to be held in escrow, until each Purchaser listed on the Schedule of Purchasers has
tendered to the Corporation the payment indicated thereon.

          2.2 Second Closing. The second closing of the sale and purchase of the shares of
Series F Preferred Stock under this Agreement (the “Second Closing”) shall take place at
the offices of Foley Hoag llp, Seaport World Trade Center West, 155 Seaport Boulevard,
Boston, Massachusetts 02210, on a date specified in a written notice of the Corporation (the
“Milestone Notice”) delivered to each of the Purchasers at least five (5) business days prior to
the proposed date of the Second Closing, which Milestone Notice shall certify that the Board of
Directors of the Corporation has made the reasonable determination in good faith that the
Milestones have been achieved by the Corporation. The Milestone Notice shall be accompanied by
reasonable evidence of the achievement of the Milestones, and the Corporation shall deliver to each
Purchaser such additional documentation as such Purchaser may reasonably request in order to
confirm the accuracy of the statements made in the Milestone Notice. Within five (5) business

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days following receipt of the Milestone Notice, each Purchaser shall make a reasonable, good
faith determination as to whether or not the Milestones have been achieved. Notwithstanding the
foregoing, (a) the obligation to consummate the Second Closing may be terminated by the Purchasers
at any time after the Milestone Date if the Corporation has not achieved the Milestones on or prior
to such date, and (b) only one (1) Second Closing may occur under this Agreement. Upon any such
termination or upon the occurrence of any Second Closing hereunder, no party to this Agreement
shall have any further liability under Section 1.2(b) and this Agreement shall otherwise remain in
full force and effect. The respective obligations of the Purchasers to purchase the shares of
Series F Preferred Stock at the Second Closing are subject to the following conditions: (i) such
Purchaser shall have made a reasonable, good faith determination that the Milestones have been
achieved as set forth above; (ii) the representations and warranties of the Corporation set forth
in Exhibit G shall be true and correct in all material respects as of the date of the
Second Closing; (iii) the Corporation shall have performed and complied in all material respects
with all covenants and agreements contained in this Agreement, the Related Agreements and the
Certificate of Incorporation to be performed or complied with at or prior to the date of the Second
Closing; and (iv) the Corporation shall not have violated or breached, or be in default under, any
provision of any material note, bond, debenture, evidence of indebtedness, indenture, mortgage,
lease, contract, purchase order or other instrument, document or agreement to which the Corporation
is a party (except for any violation, breach or default relating to the Sponsored Research
Agreement or the related License Agreement, each dated November 8, 2004, between the Corporation
and Kos), the violation or breach of which, or default under which, could reasonably be expected to
have a material and adverse effect on the business, assets, operations, results of operations or
financial condition of the Corporation.

     If the Corporation has not sent the Milestone Notice on or prior to the Milestone Date, then
the Corporation shall deliver on the Milestone Date a written notice to each Purchaser, which
notice shall identify which of the Milestones, if any, the Corporation has achieved as of the
Milestone Date, as reasonably determined in good faith by the Board of Directors of the
Corporation. Each Purchaser shall have the option to purchase, without the consent of the other
Purchasers, all or a portion of such Purchaser’s respective shares of Series F Preferred Stock at
the Second Closing in accordance with the terms hereof by delivering to the Corporation and the
other Purchasers a written notice on or before the date which is five (5) business days following
the Milestone Date indicating that such Purchaser nonetheless wishes to purchase such shares of
Series F Preferred Stock. Each Purchaser who delivers such notice within such period and exercises
such option in full (a “Participating Purchaser”) shall have the right of over-allotment
such that if any other Purchaser fails to exercise its option in full pursuant to this paragraph (a
“Nonparticipating Purchaser”), then each other Participating Purchaser may, at its option
and without the consent of such Nonparticipating Purchaser, purchase all or a portion of the shares
that such Nonparticipating Purchaser failed to purchase on a pro rata basis, within five (5) days
from the date such Nonparticipating Purchaser fails to exercise its option hereunder in whole or in
part. Any purchase and sale of shares of Series F Preferred Stock pursuant to this paragraph shall
take place at the Second Closing, and only Participating Purchasers shall be deemed to be
Purchaser(s) at such Second Closing for all purposes hereof.

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     At the Second Closing:

               (a) this Agreement and each of the Related Agreements shall remain in full force and effect,
without any change or modification therein having been made thereto (unless such change or
modification shall have been approved in accordance with the terms hereof and thereof);

               (b) the Corporation shall deliver to the Purchasers (i) a long form certificate of good
standing of the Corporation certified by the Secretary of State of the State of Delaware and (ii) a
certificate as to the due qualification of the Corporation as a foreign corporation in The
Commonwealth of Massachusetts certified by the Secretary of State of The Commonwealth of
Massachusetts, each dated not more than fourteen (14) days prior to the Second Closing;

               (c) the Corporation shall deliver to the Purchasers a Certificate of the Secretary of the
Corporation attesting as to (i) the attached Certificate of Incorporation and Bylaws of the
Corporation as in effect on the date of the Second Closing, (ii) the signatures and titles of the
officers of the Corporation executing this Agreement, the Related Agreements or any certificate to
be executed and delivered by the Corporation at the Second Closing pursuant to this Section 2.2,
and (iii) the resolutions of the Board of Directors and stockholders of the Corporation,
authorizing and approving the adoption of the Certificate of Incorporation, and all matters in
connection with this Agreement and the Related Agreements and the transactions contemplated hereby
and thereby;

               (d) the Corporation shall deliver to the Purchasers a Certificate signed by the Chief
Executive Officer, certifying that (i) the representations and warranties of the Corporation set
forth in Exhibit G shall be true and correct in all material respects as of the date of the
Second Closing and (ii) the Corporation shall have performed and complied in all material respects
with all covenants and agreements contained in this Agreement, the Related Agreements and the
Certificate of Incorporation to be performed or complied with at or prior to the date of the Second
Closing;

               (e) the Corporation shall issue and deliver to each Purchaser a certificate for the number of
shares of Series F Preferred Stock being purchased at the Second Closing by such Purchaser,
registered in the name of such Purchaser, against payment to the Corporation of the aggregate
Purchase Price for such number of Shares;

               (f) each Purchaser shall pay to the Corporation, by wire transfer of immediately available
funds, check or, with the consent of the Corporation, cancellation of any outstanding indebtedness
or any other method, the aggregate purchase price for the shares of Series F Preferred Stock being
purchased by such Purchaser at the Second Closing. In the event that payment by a Purchaser is
made, in whole or in part, by cancellation of indebtedness, then such Purchaser shall surrender to
the Corporation for cancellation at such Second Closing any evidence of such indebtedness or shall
execute an instrument of cancellation in form and substance acceptable to the Corporation.

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     3. Representations and Warranties of the Corporation. Except as disclosed by the
Corporation in Exhibit H attached hereto, the Corporation hereby represents and warrants to
each Purchaser that the statements contained in this Section 3 are true, complete and accurate as
of the date of the First Closing. Exhibit H shall be arranged in sections corresponding to
the numbered and lettered sections and subsections of this Section 3.

          3.1 Organization. The Corporation is a corporation duly organized, validly existing
and in good standing under the laws of the State of Delaware and has all requisite corporate power
and authority to own and lease its properties, to carry on its business as presently conducted and
presently proposed to be conducted and to carry out the transactions contemplated hereby. The
Corporation is duly qualified as a foreign corporation and is in good standing in all such other
jurisdictions in which the conduct of its business or its ownership or leasing of property requires
such qualification, except where the failure so to qualify or to be in good standing would not have
a materially adverse effect on the Corporation’s business, assets, operations, results of
operations or financial condition. Exhibit B contains a true, complete and accurate copy
of the Certificate of Incorporation, and Exhibit I contains a true, complete and accurate
copy of the bylaws, as amended, of the Corporation (the “Bylaws”).

          3.2 Capitalization.

               (a) The authorized capital stock of the Corporation (immediately prior to the First Closing)
will consist of:

                    (i) 6,000,000 shares of Common Stock, $.001 par value per share (“Common Stock”), of
which (w) 733,333 shares are outstanding, (x) no shares are held as treasury shares, (y) 377,100
shares have been reserved for issuance to, or upon the exercise of options granted and/or to be
granted to, key employees and consultants of the Corporation, and (z) 3,626,566 shares have been
reserved for issuance upon conversion of Preferred Stock, $.10 par value per share.

                    (ii) 3,553,074 shares of Preferred Stock, $.10 par value per share, of which (u) 300,000
shares have been designated as Series A Convertible Preferred Stock, $.10 par value per share
(“Series A Preferred Stock”), all of which are issued and outstanding, (v) 300,000 shares
have been designated as Series B Convertible Preferred Stock $.10 par value per share (“Series
B Preferred Stock”), all of which are issued and outstanding, (w) 133,333 shares have been
designated as Series C Convertible Preferred Stock $.10 par value per share (“Series C
Preferred Stock”), all of which are issued and outstanding, (x) 133,333 shares have been
designated as Series D Convertible Preferred Stock $.10 par value per share (“Series D
Preferred Stock”), all of which are issued and outstanding, (y) 160,000 shares have been
designated as Series E Convertible Preferred Stock, $.10 par value per share (“Series E
Preferred Stock”), all of which are issued and outstanding, and (z) 2,526,408 shares have been
designated as Series F Convertible Preferred Stock (all such shares of Series A Preferred Stock,
Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, Series E Preferred
Stock and Series F Preferred Stock collectively being referred to herein as the “Preferred 

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Stock”). Immediately prior to the First Closing, no shares of Series F Preferred
Stock were issued and outstanding. 1,263,204 shares of Series F Preferred Stock will be held by
the Purchasers after the First Closing and will, upon issuance in accordance with this Agreement,
have been validly issued and be outstanding, fully paid and nonassessable. In the event that a
Second Closing occurs under this Agreement, up to an additional 1,263,204 shares of Series F
Preferred Stock will be held by the Purchasers after the Second Closing and will, upon issuance in
accordance with this Agreement, have been validly issued and be outstanding, fully paid and
nonassessable.

               (b) All of the outstanding shares of Common Stock, Series A Preferred Stock, Series B
Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock
have been duly authorized, validly issued and are fully paid and nonassessable and are not subject
to any preemptive or other similar rights of the stockholders of the Corporation or others. The
shares of Common Stock issuable upon conversion of the Series A Preferred Stock, Series B Preferred
Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock have been
duly authorized and reserved for issuance upon such conversion and, when issued and delivered upon
conversion of the applicable series of such Preferred Stock in accordance with the Certificate of
Incorporation, such shares of Common Stock will have been validly issued and will be fully paid and
nonassessable and not subject to any preemptive or other similar rights of the stockholders of the
Corporation or others.

               (c) Exhibit H sets forth a true and complete list of the type and number of shares of
capital stock of the Corporation held by each stockholder of the Corporation and, where applicable,
the number of shares of Common Stock into which such shares are convertible immediately following
the First Closing. Exhibit H also contains a list of all options, warrants or other rights
to purchase any capital stock of the Corporation and the name of each holder thereof. Except as
set forth in Exhibit H, and except with respect to the shares of Common Stock reserved for
issuance as specified in clauses (y) and (z) of Section 3.2(a)(i) above, there are no outstanding
shares of capital stock of the Corporation or warrants, options, agreements, convertible securities
or other commitments pursuant to which the Corporation is or may become obligated to issue any
shares of its capital stock or other securities of the Corporation. Except as set forth in
Exhibit H, the number of shares of capital stock, if any, reserved for issuance in
connection with the immediately preceding sentence is not subject to adjustment by reason of the
issuance of the Shares or any shares of Common Stock issuable upon conversion of the Shares (the
“Reserved Shares”). Except as set forth in Exhibit H, there are no preemptive or
similar rights to purchase or otherwise acquire shares of capital stock of the Corporation pursuant
to any provision of law, the Certificate of Incorporation, the Bylaws or any agreement to which the
Corporation is a party, or otherwise. Except as set forth in Exhibit H, there is no
agreement, restriction or encumbrance with respect to the voting of any shares of the Corporation’s
capital stock (whether outstanding or issuable upon conversion or exercise of outstanding
securities). The Corporation has not violated the Securities Act of 1933, as amended (the
“Securities Act”), or any state blue sky or securities law in connection with the issuance
of any shares of Common Stock or other securities of the Corporation prior to the date hereof.

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          3.3 Equity Investments. The Corporation has never had, nor does it currently have,
any subsidiaries, nor has it owned, nor does it currently own, any capital stock or other
proprietary interest, directly or indirectly, in any corporation, association, trust, partnership,
joint venture or other entity.

          3.4 Financial Statements; 2004 Budget. Attached to Exhibit H are (i) the
Corporation’s unaudited financial statements (balance sheet, statement of operations, statement of
stockholders’ equity and statement of cash flows) at December 31, 2003 and for the fiscal year then
ended (the “Annual Financial Statements”), (ii) the Corporation’s unaudited financial
statements (balance sheet, statement of operations and statement of cash flows) as at and for the
nine month period ended September 30, 2004 (together with the Annual Financial Statements, the
“Financial Statements”). Each of the foregoing Financial Statements has been prepared in
accordance with United States generally accepted accounting principles (“GAAP”), except
that they do not contain the footnotes required by GAAP, and is based on the books and records of
the Corporation (which books and records are accurate and complete in all material respects). The
Financial Statements fairly present in all material respects in accordance with GAAP the financial
condition, operating results and cash flows of the Corporation as of the dates, and for the
periods, indicated therein, subject to normal year-end audit adjustments and except that each does
not contain the footnotes required by GAAP.

          3.5 Absence of Undisclosed Liabilities. Except as reflected in the unaudited balance
sheet (the “September Balance Sheet”) of the Corporation as of September 30, 2004 (the “Balance
Sheet Date”) (a) the Corporation had no material liabilities of any nature (matured or unmatured,
fixed or contingent), (b) all reserves established by the Corporation and set forth in the
September Balance Sheet were adequate, and (c) there were no loss contingencies (as such term is
used in Statement of Financial Accounting Standards No. 5 issued by the Financial Accounting
Standards Board in March 1975) which were not adequately disclosed in the September Balance Sheet
as required by such Statement No. 5. Except as set forth in Exhibit H, since the Balance
Sheet Date, the Corporation has not incurred, assumed, guaranteed or otherwise become directly or
contingently liable on any material indebtedness (including, without limitation, liability by way
of agreement, contingent or otherwise, to purchase, to provide funds for payment, to supply funds
to or otherwise invest in the debtor, or otherwise to assure the creditor against loss).

          3.6 Absence of Changes. Except as set forth in Exhibit H, and except that the
Corporation has continued to incur and pay expenses, since the Balance Sheet Date there has not
been (a) any material adverse change in the financial condition, results of operations, assets,
liabilities or business of the Corporation, (b) any material asset or property of the Corporation
made subject to a lien of any kind, except liens for taxes not yet due and payable, (c) any waiver
of any valuable right of the Corporation, or the cancellation of any debt or claim held by the
Corporation, (d) any declaration or payment of dividends on, or other distribution with respect to,
or any direct or indirect redemption or acquisition of, any shares of the capital stock of the
Corporation, (e) any mortgage, pledge, sale, assignment or transfer of any tangible or intangible
assets of the Corporation, except in the ordinary course of business, (f) any loan by the

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Corporation to, or any guarantee by the Corporation for the benefit of, or any investments by
the Corporation in, or any loan to the Corporation from, any person including but not limited to
any officer, director, employee or stockholder of the Corporation or any members of their immediate
family, or any agreement or commitment therefor, other than travel allowances and other advances
made in the ordinary course of its business and endorsements in the ordinary course of business,
(g) any damage, destruction or loss (whether or not covered by insurance) materially and adversely
affecting the assets, property or business of the Corporation, (h) any sale, assignment or transfer
of any patents or patent applications, trademarks or trademark applications, service marks, trade
names, corporate names, copyrights or copyright registrations, trade secrets or other intangible
assets, (i) any receipt of notice that there has been a loss of, or order cancellation by, any
major customer of the Corporation, (j) any capital expenditures or commitments therefor made or
effected by the Corporation that aggregate in excess of $10,000, (k) any change in the accounting
methods or practices followed by the Corporation, or (l) any agreement or commitment by the
Corporation to do any of the things described in this Section 3.6.

          3.7 Encumbrances. The Corporation has good title to all of its property and assets,
real, personal or mixed, tangible or intangible, free and clear of all liens, security interests,
charges and other encumbrances of any kind, except liens for taxes not yet due and payable.

          3.8 Burdensome Restrictions. The Corporation is not obligated under any contract or
agreement not a part of or described in a Schedule to this Agreement, or subject to any charter or
other corporate restriction, which materially and adversely affects its financial condition,
results of operations, assets, liabilities or business.

          3.9 Intellectual Property Rights. To the knowledge of the Corporation:

               (a) the Corporation owns or has the right to use all Intellectual Property Rights (as defined
below) necessary or required for the conduct of its business as presently conducted and presently
proposed to be conducted, which Intellectual Property Rights are identified in Exhibit H;

               (b) other than royalties or other amounts payable under the several agreements set forth in
Exhibit H, no royalties or other amounts are payable by the Corporation to other persons by
reason of the ownership or use of the Intellectual Property Rights identified in Exhibit
H; and

               (c) no product marketed or sold or presently proposed to be marketed or sold by the
Corporation violates or will violate any license or infringes any Intellectual Property Rights of
another, nor has the Corporation received any notice that (i) the present operation or proposed
operation of the Corporation’s business or (iii) any of the Intellectual Property Rights identified
in Exhibit H conflicts or will conflict with the rights of others.

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               (d) As used herein, the term “Intellectual Property Rights” means all patents,
trademarks, service marks, trade names, copyrights, inventions, trade secrets, know-how,
proprietary processes and formulae, applications for patents, trademarks, service marks and
copyrights, and other industrial and intellectual property rights.

          3.10 Litigation. There is no action, suit, claim, proceeding or investigation, at
law, in equity or otherwise, by or before any court, arbitrator, governmental instrumentality or
other agency, now pending, or, to the Corporation’s knowledge, threatened against the Corporation
(or, to the Corporation’s knowledge, threatened against or affecting any of the officers, directors
or employees of the Corporation with respect to their businesses or proposed business activities).

          3.11 No Defaults. The Corporation is not in violation or breach of, or in default
under, any provision of (a) its Certificate of Incorporation or Bylaws, (b) any note, bond,
debenture, evidence of indebtedness, indenture, mortgage, lease, contract, purchase order or other
instrument, document or agreement to which the Corporation is a party or by which it or any of its
property is bound or affected, or (c) any ruling, writ, injunction, order, judgment or decree of
any court, administrative agency or other governmental body applicable to the Corporation or any of
its properties, which violation, breach or default in the case of the foregoing clauses (a), (b) or
(c) would have or could reasonably be expected to have, individually or in the aggregate, a
material adverse effect on the Corporation. To the knowledge of the Corporation, there exists no
condition, event or act which after notice, lapse of time, or both, could constitute such a
violation or breach of, or such a default under, any of the foregoing. The execution, delivery and
performance of this Agreement and the Related Agreements, and all other agreements contemplated
hereby to which the Corporation is a party and the consummation of the transactions contemplated
hereby, will not result in any such violation, or be in conflict with or constitute, with or
without the passage of time and giving of notice, either a material default under any such
provision, instrument, judgment, order, writ, decree or contract or an event that results in the
creation of any material lien, charge or encumbrance upon any assets of the Corporation or the
suspension, revocation, impairment, forfeiture or nonrenewal of any material permit, license,
authorization or approval applicable to the Corporation, its business or operations or any of its
assets or properties.

          3.12 Employment of Officers, Employees and Consultants; Labor Agreements. No third
party may assert any valid claim against the Corporation, any Purchaser, or any Designated Person
(as defined below) with respect to (a) the continued employment by or association with the
Corporation of any of the present officers or employees of, or consultants to, the Corporation
(collectively, the “Designated Persons”) or (b) the use by the Corporation or any
Designated Person of any information which the Corporation or any Designated Person would be
prohibited from using under any prior agreements or arrangements or under any laws, including,
without limitation, laws applicable to unfair competition, trade secrets or proprietary
information, which, if decided adversely to the Corporation, would have or could reasonably be
expected to have, individually or in the aggregate, a material adverse effect on the Corporation.
The Corporation presently does not maintain or contribute to, and has never maintained or

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contributed to, any “employee benefit plan,” as such term is defined in the Employee
Retirement Income Security Act of 1974, as amended. Except as set forth in Exhibit H, the
Corporation is not a party to or bound by any currently effective employment contract, deferred
compensation agreement, bonus plan, incentive plan, profit sharing plan, retirement agreement or
other employee compensation agreement. The Corporation is not involved in any labor disputes
(including without limitation, any union organization activities, threatened or actual strikes or
work stoppages or material grievances). The Corporation is not bound by or subject to (and none of
its assets or properties is bound by or subject to) any written or oral, express or implied,
contract, commitment or arrangement with any labor union.

          3.13 Taxes. Except as set forth in Exhibit H, (a) the Corporation has filed
all tax returns (federal, state and local) required to be filed by it and all Taxes (as defined
below), assessments and other government charges imposed upon the Corporation, or upon any of the
assets, income or franchises of the Corporation, have been paid or, if not yet payable, are
adequately accrued on the Corporation’s books and records; (b) there are no actual or proposed Tax
deficiencies, assessments or adjustments with respect to the Corporation or any assets or
operations of the Corporation; (c) no consent has been given with respect to the Corporation to
extend the time in which any Tax may be assessed or collected by any taxing authority; (d) there
are no ongoing or, the Corporation’s knowledge, pending Tax audits by any taxing authority against
the Corporation; (e) the Corporation has never filed a consent relating to any assets or property
pursuant to Section 341(f) of the Internal Revenue Code of 1986, as amended (the “Code”),
relating to collapsible corporations; and (f) none of the assets or income items of the
Corporation has been or potentially is subject to Tax under Code Section 1374 (or any corresponding
provision of state, local or foreign law). “Tax” or “Taxes” means any federal,
state, local or foreign income, gross receipts, license, payroll, employment, excise, severance,
stamp, occupation, premium, property, windfall, profits, environmental, customs, capital stock,
franchise, employees’ income withholding, foreign or domestic withholding, social security,
unemployment, disability, real property, personal property, sales, use, transfer, value added,
alternative or add on minimum or other similar tax, governmental fee, governmental assessment or
governmental charge of any kind whatsoever, including any interest, penalties or additions to Tax
or additional amounts with respect to the foregoing. The Corporation is not currently, and has not
been during the five years prior hereto, a real property holding company within the meaning of
Section 897 of the Code.

          3.14 Agreements. Except as set forth in Exhibit H, the Corporation is not a
party to any written or oral contract or agreement not made in the ordinary course of business and,
whether or not made in the ordinary course of business, the Corporation is not a party to any
written or oral (a) contract or agreement with any labor union, (b) contract or agreement for the
future purchase of fixed assets or for the future purchase of materials, supplies or equipment in
excess of normal operating requirements, (c) contract or agreement for the employment of any
officer, individual employee or other person or any contract or agreement with any person on a
consulting basis, (d) bonus, pension, profit-sharing, retirement, stock purchase, stock option,
hospitalization, medical insurance or similar plan, contract or understanding in effect with
respect to employees or any of them or the employees of others, (e) agreement or indenture

11

 

relating to the borrowing of money or to the mortgaging, pledging or otherwise placing a lien
on any assets of the Corporation, (f) guaranty of any obligation for borrowed money or otherwise,
(g) lease or agreement under which the Corporation is lessee of or holds or operates any property,
real or personal, owned by any other party, (h) lease or agreement under which the Corporation is
lessor of or permits any third party to hold or operate any property, real or personal, owned or
controlled by the Corporation, (i) license or lease agreement with respect to any Intellectual
Property Rights, (j) agreement or other commitment for capital expenditures in excess of $10,000,
or (k) any other contract, agreement, arrangement or understanding which is material to the
business of the Corporation or could reasonably be expected to be material to a prudent investor’s
understanding of the business of the Corporation. The Corporation has furnished to the Purchasers
true and correct copies of all agreements set forth in Exhibit H and all such other
agreements and documents requested by the Purchasers or its authorized representatives.

          3.15 Compliance. The Corporation has (a) complied with all Federal, state, local or
foreign laws, statutes, ordinances, rules, regulations and orders applicable to its business,
including, without limitation, and to the Corporation’s knowledge, all Environmental Laws (as
defined below) and (b) all Federal, state, local and foreign governmental licenses, registrations
and permits material to or necessary for the conduct of its business, such licenses, registrations
and permits are in full force and effect and there have been no violations in respect thereof, and,
to the knowledge of the Corporation, no proceeding is pending or threatened, to revoke or limit any
thereof. “Environmental Laws” shall mean any past or present federal, state, or local laws,
statues, regulations, ordinances, rules, or common law and standards, or any judgment, order, writ,
notice, decree, permit, license, approval or injunction relating to pollution or protection of
human health or the environment and including, without limitation, to the release of hazardous
substances into the environment, as well as the manufacture, processing, distribution, use,
treatment, storage, disposal, transport or handling of hazardous substances, releases, or
threatened releases of pollutants, contaminants, or chemical, industrial, hazardous, or toxic
materials or hazardous wastes into the environment as well as, without limitation, the Clean Air
Act, the Toxic Substance Control Act, the Clean Water Act, the Oil Pollution Act of 1990, the
Comprehensive Environmental Response, Compensation and Liability Act, the Resource Conservation and
Recovery Act, and the Occupational Safety and Health Act of 1970, and their applicable state law
counterparts, each as they have been amended from time to time.

          3.16 Insurance. Exhibit H sets forth each insurance policy (specifying the
insurer, the amount of coverage, the type of insurance, the policy number, the expiration date, the
annual premium and any pending claims thereunder) maintained by the Corporation on its properties,
assets, business or personnel. No notice from any insurance carrier insuring the Corporation has
been received by the Corporation claiming that the Corporation is in default with respect to any
provision contained in any insurance policy. The insurance maintained by the Corporation on its
properties, assets, business and personnel (a) is in amounts deemed adequate by the Corporation and
(b) is under policies currently in effect and issued by insurers of recognized responsibility.
With respect to such policies: (i) the transactions contemplated by this Agreement will not cause a
default under any policy; (ii) neither the Corporation nor, to the

12

 

knowledge of the Corporation, any other party to any policy is in breach or default (including
with respect to the payment of premiums or the giving of notices), and, to the knowledge of the
Corporation, no event has occurred which, with notice or the lapse of time, would constitute such a
breach or default, or permit termination, modification, or acceleration, under any policy; and
(iii) to the knowledge of the Corporation, no party to any policy has repudiated any provision
thereof.

          3.17 Authorization of this Agreement. The execution, delivery and performance by the
Corporation of this Agreement and the Related Agreements (sometimes collectively referred to herein
as the “Transaction Agreements”) have been duly authorized by all requisite corporate
action. The Corporation has duly executed and delivered the Transaction Agreements, which
(assuming due execution and delivery thereof by the Purchasers and, in the case of the Related
Agreements, Tufts, Bachovchin and Stone Life) will constitute valid and binding obligations of the
Corporation, enforceable against the Corporation in accordance with their respective terms. The
execution, delivery and performance of the Transaction Agreements, the issuance, sale and delivery
of the Shares and the Reserved Shares, and compliance with the provisions hereof and thereof by the
Corporation, do not and will not, with or without the passage of time or the giving of notice or
both, (a) violate any provision of law, statute, ordinance, rule or regulation or any ruling, writ,
injunction, order, judgment or decree of any court, administrative agency or other governmental
body or (b) conflict with or result in any breach of any of the terms, conditions or provisions of,
or constitute a default (or give rise to any right of termination, cancellation or acceleration)
under, or result in the creation of any lien, security interest, charge or encumbrance upon any of
the properties or assets of the Corporation under, the Certificate of Incorporation or Bylaws or
any note, bond, debenture, evidence of indebtedness, indenture, mortgage, lease, contract, purchase
order or other instrument, document or agreement to which the Corporation is a party or by which
the Corporation or any of its property is bound or affected.

          3.18 Authorization of Certificate of Incorporation and Shares. All corporate action
on the part of the Corporation, its directors and stockholders necessary for the authorization of
the Certificate of Incorporation and the filing thereof with the Secretary of State of the State of
Delaware have been taken. The issuance, sale and delivery hereunder by the Corporation of the
Shares have been duly authorized by all requisite corporate action, and when so issued, sold and
delivered, the Shares will be validly issued and outstanding, fully paid and nonassessable and not
subject to preemptive or any other similar rights of the stockholders of the Corporation or others.

          3.19 Authorization of Reserved Shares. The issuance, sale and delivery by the
Corporation of the Reserved Shares have been duly authorized by all requisite corporate action of
the Corporation, and the Reserved Shares have been duly reserved for issuance upon conversion of
all or any of the Shares, and when so issued and delivered upon conversion of any of the Shares,
the Reserved Shares will be validly issued and outstanding, fully paid and nonassessable and not
subject to preemptive or any other similar rights of the stockholders of the Corporation or others.

13

 

          3.20 Offerees. The Corporation has not, either directly or through any agent, offered
any Shares or securities convertible into Common or Series F Preferred Stock or any security or
securities similar to any thereof, for sale to, or solicited any offers to buy any Shares, or
securities convertible into Common or Series F Preferred Stock, or any such similar security or
securities from, or otherwise approached or negotiated in respect thereof with, any person or
entity other than the Purchasers and a limited number of institutional or sophisticated investors,
but in any event not more than 25 persons or entities, including the Purchasers.

          3.21 Brokers. Neither the Corporation nor any of its officers, directors, employees
or stockholders has employed any broker or finder in connection with the transactions contemplated
by this Agreement. No person or entity will have, as a result of the transactions contemplated by
this Agreement, any right, interest or valid claim against or upon the Corporation of any
commission, fee or other compensation as a finder or broker because of any act or omission by the
Corporation or any agent of the Corporation.

          3.22 No Governmental Consent or Approval Required. No authorization, consent,
approval or other order of, declaration to, or filing with, any governmental agency or body is
required before the First Closing or any Second Closing for or in connection with the valid and
lawful authorization, execution and delivery by the Corporation of the Transaction Agreements, for
or in connection with the valid and lawful authorization, issuance, sale and delivery of the Shares
or for or in connection with the valid and lawful authorization, reservation, issuance, sale and
delivery of the Reserved Shares except such exemptive filings, if any, as are required to be made
under the Securities Act and applicable state securities laws and have been made on a timely basis.

          3.23 Registration Rights. Except as contemplated by the Registration Rights
Agreement, no person has any right to cause the Corporation to effect the registration under the
Securities Act of any shares of Common Stock or any other securities of the Corporation.

          3.24 Noncompetition, Nondisclosure, and Assignment of Developments Agreements. Each
current employee of the Corporation who has or is proposed to have access to confidential and
proprietary information of the Corporation is a signatory to, and is bound by, an agreement with
the Corporation relating to non-disclosure, proprietary information and assignment of inventions, a
copy of the form of such agreements is attached to Exhibit H.

          3.25 Exemptions from Securities Laws. Subject to the accuracy of the representations
and warranties of the Purchasers set forth in Section 4, the provisions of Section 5 of the
Securities Act are inapplicable to the offering, issuance, sale and delivery of the Shares and the
Reserved Shares by virtue of the exemption afforded by Section 4(2) of the Securities Act, and no
consent, approval, qualification or registration or filing under any state securities or blue sky
laws is required in connection therewith. Neither the Corporation nor any authorized agent acting
on its behalf will take any action hereafter that would cause the loss of such exemptions.

14

 

          3.26 Disclosure. To the knowledge of the Corporation, this Agreement and the other
documents, certificates or statements furnished to the Purchasers in writing (excluding any
projections of future performance), taken as a whole, by or on behalf of the Corporation contain no
untrue statements of a material fact or omit to state a material fact necessary in order to make
the statements contained herein or therein not misleading.

          3.27 Related Party Transactions. Except as set forth on Exhibit H, (i) no
employee, stockholder, officer or director of the Corporation or member of his or her immediate
family is indebted to the Corporation, nor is the Corporation indebted (or committed to make loans
or extend or guarantee credit) to any of them, and none of such persons has any direct or indirect
ownership interest in any firm or corporation with which the Corporation is affiliated or with
which the Corporation has a business relationship, or any firm or corporation that competes with
the Corporation, except that employees, stockholders, officers or directors of the Corporation and
members of their immediate families may own stock in publicly traded companies that may compete
with the Corporation, and (ii) no member of the immediate family of any officer or director of the
Corporation is directly or indirectly interested in any material contract with the Corporation.

          3.28 Prohibited Payments. Neither the Corporation nor any of its officers, directors,
employees or agents has made any payment of funds of the Corporation prohibited by law and no funds
of the Corporation have been set aside to be used for any payment prohibited by law.

     4. Representations and Warranties of the Purchasers. Each Purchaser, severally and
not jointly, represents and warrants to the Corporation as follows:

          4.1 Organization. Such Purchaser (a) is duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization, with all requisite corporate or
limited partnership power and authority to own and lease its properties, to carry on its business,
and to carry out the transactions contemplated hereby, (b) is duly qualified and in good standing
in each other jurisdiction in which its failure to be so qualified would have a material adverse
effect on the business or financial condition of such Purchaser, and (c) has not been organized,
reorganized or recapitalized specifically for the purpose of acquiring the Shares or Reserved
Shares pursuant to this Agreement (it being understood and agreed that Oikos does not make the
representation set forth in this subsection 4.1(c)).

          4.2 Purchase for Investment. Such Purchaser is acquiring the Shares, and, in the
event such Purchaser should acquire Reserved Shares upon conversion of the Shares, such Purchaser
will be acquiring the Reserved Shares, for its own account, for investment and not with a view to,
or for sale in connection with, any distribution or public offering thereof within the meaning of
the Securities Act, and, except as contemplated by this Agreement and the Exhibits hereto and
except for transfers to other members of such Purchaser’s Group (as defined in the Stockholders
Agreement), such Purchaser has no present or contemplated agreement,

15

 

undertaking, arrangement, obligation, indebtedness or commitment providing for the disposition
thereof.

          4.3 Unregistered Securities; Legend. Such Purchaser understands that the Shares have
not been, and the Reserved Shares will not be, registered under the Securities Act or any state
securities law, by reason of their issuance in a transaction exempt from the registration
requirements of the Securities Act and such laws, and that they must be held indefinitely unless
they are subsequently registered under the Securities Act and such laws or a subsequent disposition
thereof is exempt from registration. Such Purchaser further understands that such exemption
depends upon, among other things, the bona fide nature of such Purchaser’s
investment intent expressed herein. Such Purchaser acknowledges that the certificates for the
Shares and the Reserved Shares shall bear a legend to such effect, and appropriate stock transfer
instructions shall be issued.

          4.4 Status of the Purchasers. Such Purchaser understands the term “accredited
investor” as used in Regulation D promulgated under the Securities Act and represents and warrants
to the Corporation that such Purchaser is an “accredited investor” for purposes of acquiring Shares
and Reserved Shares. Following the acquisition of the Shares to be purchased hereunder, no
Purchaser which is a resident outside of the United States or subject to the jurisdiction of a
country other than the United States, either alone or together with its “foreign parent” or
“affiliated foreign group” (as such terms are defined in 15 C.F.R. §§806.7 and 806.15), will own or
control, directly or indirectly, ten percent (10%) or more of the issued and outstanding voting
securities of the Corporation.

          4.5 Knowledge and Experience; Economic Risk. Such Purchaser has sufficient knowledge
and experience in business and financial matters and with respect to investment in securities of
privately held companies so as to enable it to analyze and evaluate the merits and risks of the
investment contemplated hereby and is capable of protecting its interest in connection with this
transaction. Such Purchaser is able to bear the economic risk of such investment, including a
complete loss of the investment.

          4.6 Access to Information. Such Purchaser acknowledges that such Purchaser and its
representatives have had the opportunity to ask questions and receive answers from officers and
representatives of the Corporation concerning the transactions contemplated by this Agreement and
to obtain any additional information which the Corporation possesses or can acquire that is
necessary to verify the accuracy of the information regarding the Corporation herein set forth or
otherwise desired in connection with such Purchaser’s purchase of the Shares and the Reserved
Shares.

          4.7 Authorization. The execution, delivery and performance by such Purchaser of this
Agreement have been duly authorized by all requisite action of such Purchaser. This Agreement has
been duly executed and delivered on behalf of such Purchaser and constitutes the valid and binding
obligation of such Purchaser, enforceable in accordance with its terms. The execution, delivery
and performance of this Agreement, the purchase of the Shares

16

 

and the Reserved Shares, and compliance with the provisions hereof by such Purchaser, do not
and will not, with or without the passage of time or the giving of notice or both, (a) violate any
provision of law, statute, rule or regulation or any ruling, writ, injunction, order, judgment or
decree of any court, administrative agency or other governmental body, which violation would have
or could reasonably be expected to have, individually or in the aggregate, a material adverse
effect on such Purchaser, or (b) conflict with or result in any material breach of any of the
terms, conditions or provisions of, or constitute a material default (or give rise to any right of
termination, cancellation or acceleration) under, such Purchaser’s charter or bylaws (or other
organizational documents), or any note, indenture, mortgage, lease, agreement, contract, purchase
order or other instrument, document or agreement to which such Purchaser is a party or by which it
or any of its property is bound or affected.

          4.8 No Governmental Consent or Approval Required. No authorization, consent, approval
or other order of, or declaration to, or filing with, any governmental agency or body is required
before the First Closing for or in connection with the valid authorization, execution and delivery
by such Purchaser of this Agreement or for the valid purchase by such Purchaser of the Shares to be
sold to it hereunder or for or in connection with the valid issuance to such Purchaser of any
Reserved Shares except such exemptive filings, if any, as are required to be made under the
Securities Act and applicable state securities laws and have been made on a timely basis.

          4.9 Rule 144. Such Purchaser acknowledges that the Shares to be sold to such
Purchaser hereunder and the Reserve Shares issuable on conversion of the Shares are “restricted
securities” as defined in Rule 144 (the provisions of which are known to such Purchaser)
promulgated by the Securities and Exchange Commission (the “Commission”) under the
Securities Act and understands that the exemption from registration afforded by Rule 144 depends
upon the satisfaction of various conditions, that such exemption is not currently available and
that, if applicable, Rule 144 affords the basis for sales only in limited amounts.

          4.10 Brokers/Finders. Such Purchaser has not employed any broker or finder in
connection with the transactions contemplated by this Agreement. No person or entity will have, as
a result of the transactions contemplated by this Agreement, any right, interest or valid claim
against or upon the Corporation of any commission, fee or other compensation as a finder or broker
because of any act or omission by the Corporation or any agent of the Corporation.

     5. Exchanges; Lost, Stolen or Mutilated Certificates. Upon surrender by any Purchaser
to the Corporation of a certificate or certificates representing Shares purchased or acquired by
such Purchaser hereunder or Reserved Shares received upon conversion of any such Shares, the
Corporation at its expense shall issue in exchange therefor, and deliver to such Purchaser, a new
certificate or certificates representing such shares, in such denomination or denominations as may
be requested by such Purchaser. Upon receipt of evidence satisfactory to the Corporation of the
loss, theft, destruction or mutilation of any certificate representing any Shares purchased or
acquired by the Purchaser hereunder or Reserved Shares received upon conversion of any such Shares
and in case of any such loss, theft or destruction, upon delivery of

17

 

any indemnity agreement satisfactory to the Corporation, or in case of any such mutilation,
upon surrender and cancellation of such certificate, the Corporation at its expense shall issue and
deliver to such Purchaser a new certificate for such Shares or Reserved Shares, of like tenor, in
lieu of such lost, stolen or mutilated certificate.

     6. Survival of Representations, Warranties and Agreements. The covenants,
representations and warranties of the Corporation and the Purchasers contained herein shall survive
the First Closing and, if any, the Second Closing. Each of the Purchasers and the Corporation may
rely on such covenants, representations and warranties irrespective of any investigation made, or
notice or knowledge held by, it or any other person. All statements contained in any certificate
or other instrument delivered by the Corporation pursuant to this Agreement or in connection with
the transactions contemplated by this Agreement shall constitute representations and warranties by
the Corporation under this Agreement.

     7. Notices. All notices, requests, consents and other communications hereunder to a
party shall be deemed to be sufficiently given if contained in a written instrument delivered in
person, sent via a reputable nationwide overnight courier services guaranteeing next business day
delivery, or duly sent by first class registered or certified mail, postage prepaid, addressed in
each case to such party at the address set forth below or such other address as may hereafter be
designated in writing by such party to all other parties:

          (a) if to the Corporation, to:

               Triad Pharmaceuticals, Inc

               71 Warwick Road

               Melrose, MA 02176

               Attention: President
 

               with a copy to:
 

               Peter M. Rosenblum, Esq.

               Foley Hoag llp

               Seaport World Trade Center West

               155 Seaport Blvd.

               Boston, MA 02210

          (b) if to Kos, to:

               Kos Pharmaceuticals, Inc

               Cedar Brook Corporate Center

               No. 1 Cedar Brook Drive

               Cranbury, NJ 08512

               Attention: President and Chief Executive Officer

18

 

               with a copy to:
 

               Kos Pharmaceuticals, Inc

               Cedar Brook Corporate Center

               No. 1 Cedar Brook Drive

               Cranbury, NJ 08512

               Attention: Andrew I. Koven,

               Executive Vice President, General Counsel

               and Corporate Secretary
 

               and
 

               James Lurie, Esq.

               Holland & Knight, LLP

               195 Broadway, 24th Floor

               New York, NY 10007

          (c) if to Oikos, to:

               2004 Oikos Investment Partners, LP

               c/o Oikos Ventures, LLC

               Attn: Steven Aronoff

               499 Park Avenue

               New York, NY 10022
 

               with a copy to:
 

               Steven K. Aronoff, Esq.

               c/o Steven K. Aronoff PC

               499 Park Avenue

               New York, NY 10022

     8. Expenses; Negative Covenants.

          8.1 Expenses. Each of the parties shall pay its own expenses in connection with the
negotiation, preparation and performance of the Transaction Agreements and the transactions
contemplated thereby, including any legal and accounting fees, whether or not such transactions are
consummated.

          8.2 Negative Covenants.

               (a) Kos Negative Covenants. The Corporation agrees with Kos that without the prior
written consent of Kos, which consent may be given or withheld in its sole and absolute discretion,
the Corporation will not, prior to December 31, 2006, (i) increase the number of shares reserved
for option grants beyond the 377,100 referred to in Section 3.2(a)(i)(y) hereof

19

 

(or become legally obligated to do so or enter into any agreement with any person committing the
Corporation to effect such an increase in the future), (ii) effect or propose any amendment to, or
take any Board of Directors or other action permitted by, Section B.3(c)(i)(4)(A) of Article Fourth
of the Certificate of Incorporation, or (iii) take or commit to take any action in furtherance of
any of the foregoing, in the case of clauses (i), (ii) or (iii) for the purpose of providing option
grants to Christopher Kiritsy in connection with any employment arrangement between the Corporation
and such individual.

               (b) Oikos Negative Covenants. In addition to any other vote that may be required
under the Certificate of Incorporation or applicable law, prior to the earlier of (x) December 31,
2005 or (y) the date as of which the Board of Directors includes seven members designated by Oikos
or its designee pursuant to the Stockholders Agreement, the Corporation shall not take, and shall
not permit any wholly-owned subsidiary of the Corporation (a “Subsidiary”) to take, any of the
following actions without the prior approval of Oikos or its designee, unless such action has been
approved unanimously by the entire Board of Directors:

                    (i) issue or authorize any shares of capital stock of the Corporation other than the shares of
Common Stock and Preferred Stock authorized under the Certificate of Incorporation as of the date
hereof and other than shares of Common Stock issued upon conversion of shares of Preferred Stock
(such other shares of capital stock to be referred to herein as “Equity Securities”); redeem,
repurchase or acquire any Equity Securities (other than as may be required under the Certificate of
Incorporation); or increase the number of shares of Common Stock reserved for issuance under the
Corporation’s 1999 Incentive and Non-Qualified Stock Option Plan to a number greater than 377,100;

                    (ii) issue or incur any Debt (as defined below) that is, individually or in the aggregate, in
excess of $50,000, other than any trade credit in the ordinary course of business; or issue any
guaranty of the Debt of any other individual or legal entity (a “Person”);

                    (iii) take any action that could reasonably be expected to result in a liquidation of the
Corporation, or sell, convey, mortgage, encumber, pledge or otherwise dispose of all or
substantially all of its assets, property or business, or merge or consolidate with or into any
other Person (other than a Subsidiary of the Corporation), or effect any transaction involving a
change of control of the Corporation, or reclassify any Equity Securities of the Corporation or any
shares of capital stock of any Subsidiary of the Corporation;

                    (iv) effect any acquisition of any business or entity (whether by purchase of stock or
assets);

                    (v) effect any changes in the Certificate of Incorporation or Bylaws of the Corporation;

                    (vi) make any investment or capital expenditure in excess of $50,000 per year, other than in
the ordinary course of business;

20

 

                    (vii) hire or terminate the employment of any officer of the Corporation, or enter into, amend
or revise the terms of any employment or consulting agreement with any officer of the Corporation;

                    (viii) alter the authorized number of directors of the Corporation;

                    (ix) declare or pay any dividends or make any distribution with respect to its capital stock
(except dividends payable on Common Stock solely in shares of Common Stock);

                    (x) grant any exclusive rights to any intellectual property of the Corporation, other than in
the ordinary course of business and other than licenses that are exclusive only within a specific
field of use;

                    (xi) create any subsidiary of the Corporation other than a wholly-owned subsidiary;

                    (xii) consummate an initial public offering of the capital stock of the Corporation;

                    (xiii) effect any amendment or modification to any contract between the Corporation and Kos or
settle, compromise or otherwise resolve any dispute with Kos with respect to any such contract;

                    (xiv) take any action for which, in the opinion of counsel to the Corporation, the
authorization of the Board of Directors of the Corporation would be required by law; or

                    (xv) agree to take any of the foregoing actions.

               (b) For purposes of this Agreement, the term “Debt” shall mean, with respect to any Person,
without duplication (i) all indebtedness of such Person for borrowed money or for the deferred
purchase price of property payment for which is deferred 6 months or more, but excluding
obligations to trade creditors incurred in the ordinary course of business that are unsecured and
not overdue by more than six (6) months unless being contested in good faith, (ii) all
reimbursement and other obligations with respect to letters of credit, bankers’ acceptances and
surety bonds, whether or not matured, (iii) all obligations evidenced by notes, bonds, debentures
or similar instruments, (iv) all indebtedness created or arising under any conditional sale or
other title retention agreement with respect to property acquired by such Person (even though the
rights and remedies of the seller or lender under such agreement in the event of default are
limited to repossession or sale of such property), (v) all capital lease obligations and the
present value of future rental payments under all synthetic leases, (vi) all obligations of such
Person under commodity purchase or option agreements or other commodity price hedging arrangements,
in each case whether contingent or matured, (vii) all obligations of such Person under any foreign
exchange contract, currency swap agreement, interest rate swap, cap or collar

21

 

agreement or other similar agreement or arrangement designed to alter the risks of that person
arising fluctuations in currency values or interest rates, in each case whether contingent or
matured, (viii) all indebtedness referred to above secured by (or for which the holder of such
indebtedness has an existing right, contingent or otherwise, to be secured by) any mortgage, lien,
pledge, security agreement, charge or other encumbrance upon or in property or other assets
(including accounts and contract rights) owned by such Person, even though such Person has not
assumed or become liable for the payment of such indebtedness and (ix) all indebtedness or other
obligations of others guaranteed, directly or indirectly, by the Company or any of its
Subsidiaries, including, without limitation, any obligation of the Company or any of its
Subsidiaries, direct or indirect, contingent or otherwise, (A) to purchase or pay (or advance or
supply funds for the purchase or payment of) such indebtedness or other obligation of such other
person or entity (whether arising by virtue of partnership arrangements, by agreement to keepwell,
to purchase assets, goods, securities or services, to take-or-pay, or to maintain financial
statement conditions or otherwise) or (B) entered into for the purpose of assuring in any other
manner the obligee of such indebtedness or other obligation of the payment thereof or to protect
such obligee against loss in respect thereof (provided that a guarantee shall not include
endorsements for collection or deposit in the ordinary course of business).

     9. Miscellaneous.

          9.1 Entire Agreement; Effect on Prior Documents. This Agreement and the other
documents referred to herein or delivered pursuant hereto contain the entire agreement among the
parties with respect to the financing transactions contemplated hereby and supersede all prior
negotiations, commitments, agreements and understandings, written or oral, between or among them
with respect to the subject matter hereof.

          9.2 Amendments; Waivers. This Agreement may be amended, and compliance with any
provision of this Agreement may be omitted or waived, only by the written agreement of each of (i)
the Corporation and (ii) each of the Purchasers, or in the case of any transferee of the rights of
a Purchaser hereunder, by the written agreement of a transferee holding a majority in voting power
of the outstanding shares of Series F Preferred Stock purchased by a Purchaser hereunder.

          9.3 Governing Law; Jurisdiction and Venue. This Agreement shall be governed by, and
construed and enforced in accordance with, the substantive laws of The Commonwealth of
Massachusetts without regard to its principles of conflicts of laws. Any litigation arising from
or relating to this Agreement shall be filed and prosecuted in any court of competent subject
matter jurisdiction located in the state of New York. The parties stipulate to the jurisdiction,
convenience and efficiency of proceeding in such courts and hereby waive and covenant not to assert
any objections to proceeding in such courts based on any grounds other than a lack of subject
matter jurisdiction.

          9.4 Severability. Any provision of this Agreement that is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such

22

 

prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

          9.5 Successors and Assigns. This Agreement shall be binding upon, and inure to the
benefit of, each of the parties hereto and, except as otherwise expressly provided herein, each
other person who shall become a registered holder named in any certificate evidencing shares of
Common Stock or Preferred Stock transferred to such holder by any of the Purchasers or their
permitted transferees, and (except as aforesaid) their respective legal representatives, successors
and assigns. Each Purchaser may transfer such Purchaser’s rights and obligations under Section 2.2
of this Agreement to any member of such Purchaser’s Group, as such term is defined in the
Stockholders Agreement, in which case such transferee shall be considered a Purchaser for purposes
of Section 2.2 hereof, by giving written notice of such transfer to the Corporation and the other
Purchaser; provided, however, that for purposes of determining whether the Milestones have been
achieved, only Kos and Oikos (or any then-current designee of Oikos named pursuant to Section 12.3
of the Stockholders Agreement), as the original Purchasers hereunder, shall have the right to make
such determination, which determination shall be final and binding upon any transferee of either of
the foregoing.

          9.6 Certain Matters of Construction. A reference to a Section, Exhibit or Schedule
shall mean a Section in, or Exhibit or Schedule to, this Agreement unless otherwise expressly
stated. The titles and headings herein are for reference purposes only and shall not in any manner
limit the construction of this Agreement which shall be considered as a whole. The words
“include,” “includes” and “including” when used herein shall be deemed in each case to be followed
by the words “without limitation.” Whenever the context may require, any pronouns used herein
shall include the corresponding masculine, feminine or neuter forms, and the singular form of names
and pronouns shall include the plural and vice-versa.

          9.7 Counterparts. This Agreement may be executed in any number of counterparts, each
such counterpart shall be deemed to be an original instrument, and all such counterparts together
shall constitute but one agreement. Signature pages hereto may be delivered by facsimile and shall
have the same force and effect as an original.

[Remainder of page intentionally left blank.]

23

 

     IN WITNESS WHEREOF, the undersigned has executed this Series F Stock Purchase Agreement as a
contract under seal as of the date first above written.

	 	 	 	 	 
	 	TRIAD PHARMACEUTICALS, INC.

 	 
	 	By:  	/s/William Bachovchin
 	 
	 	 	William Bachovchin 	 
	 	 	President 	 
	 

24

 

SCHEDULE OF PURCHASERS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Shares of Series F	 	 	Promissory Notes	 	 	 	 	 	 	Shares of Series F	 	 	 	 
	 	 	Preferred Stock	 	 	Plus Accrued	 	 	Aggregate Purchase	 	 	Preferred Stock	 	 	Aggregate Purchase	 
	 	 	Purchased at	 	 	Interest as of	 	 	Price at	 	 	Purchased at	 	 	Price at	 
	Purchaser	 	First Closing	 	 	First Closing	 	 	First Closing	 	 	Second Closing	 	 	Second Closing	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2004 Oikos
Investment
Partners, LP
	 	 	631,602	 	 	$	1,321,173.60	 	 	$	4,000,000	 	 	 	631,602	 	 	$	4,000,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Kos
Pharmaceuticals,
Inc.
	 	 	631,602	 	 	$	0.00	 	 	$	4,000,000	 	 	 	631,602	 	 	$	4,000,000	 

25

 

Purchaser Signature Page

     By execution and delivery of this signature page, the undersigned hereby agrees to become a
Purchaser, as defined in that certain Series F Preferred Stock Purchase Agreement (the
“Purchase Agreement”) by and among Triad Pharmaceuticals, Inc., a Delaware corporation (the
“Corporation”), and the Purchasers (as defined in the Purchase Agreement), dated as of the
First Closing (as defined in the Purchase Agreement), acknowledges having read the representations
in the Purchase Agreement section entitled “Representations of the Purchasers,” and represents that
the statements contained therein are complete and accurate with respect to the undersigned as a
Purchaser thereunder. The undersigned further hereby agrees that, as of the First Closing, the
undersigned shall be a party to and bound by all the terms and conditions of (i) the Purchase
Agreement as a “Purchaser” thereunder, (ii) the Registration Rights Agreement (as defined in the
Purchase Agreement) as an “Purchaser” thereunder, and (iii) the Stockholders Agreement (as defined
in the Purchase Agreement) as an “Investor” thereunder, and authorizes this signature page to be
attached to the Purchase Agreement, the Registration Rights Agreement and the Stockholders
Agreement, or counterparts thereof.

     EXECUTED, in counterpart, this 1st day of February, 2005.

	 	 	 	 	 	 	 
	 	 	PURCHASER:
	 
	 	 	 	 	 	 
	 	 	2004 Oikos Investment Partners, LP
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/Steven K. Aronoff
	 	 	 	 	 
	 	 	Name:	 	Steven K. Aronoff
	 	 	 	 	 
	 	 	Title:	 	Manager of 500 East General Partners LLC, General Partner
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Contact Person:	 	Steven K. Aronoff/Larry Copperman
	

	 	 	 	 	 	 
	 	 	Telephone No.:	 	(212) 889-9250
	

	 	 	 	 	 	 
	 	 	Facsimile No.:	 	(212) 7605
	

	 	 	 	 	 	 
	 	 	Email Address:	 	ska@skapc.com
	

	 	 	 	 	 	larryc@skapc.com
	

	 	 	 	 	 	 

26

 

Purchaser Signature Page

     By execution and delivery of this signature page, the undersigned hereby agrees to become a
Purchaser, as defined in that certain Series F Preferred Stock Purchase Agreement (the
“Purchase Agreement”) by and among Triad Pharmaceuticals, Inc., a Delaware corporation (the
“Corporation”), and the Purchasers (as defined in the Purchase Agreement), dated as of the
First Closing (as defined in the Purchase Agreement), acknowledges having read the representations
in the Purchase Agreement section entitled “Representations of the Purchasers,” and represents that
the statements contained therein are complete and accurate with respect to the undersigned as a
Purchaser thereunder. The undersigned further hereby agrees that, as of the First Closing, the
undersigned shall be a party to and bound by all the terms and conditions of (i) the Purchase
Agreement as a “Purchaser” thereunder, (ii) the Registration Rights Agreement (as defined in the
Purchase Agreement) as an “Purchaser” thereunder, and (iii) the Stockholders Agreement (as defined
in the Purchase Agreement) as an “Investor” thereunder, and authorizes this signature page to be
attached to the Purchase Agreement, the Registration Rights Agreement and the Stockholders
Agreement, or counterparts thereof.

     EXECUTED, in counterpart, this 1st day of February, 2005.

	 	 	 	 	 
	 	 	PURCHASER:
	 
	 	 	 	 
	 	 	Kos Pharmaceuticals, Inc.
	 
	 	 	 	 
	

	 	By:
	 	/s/Adrian Adams
	

	 	 	 	 
	

	 	Name:
	 	Adrian Adams
	

	 	 	 	 
	

	 	Title:
	 	President and CEO
	

	 	 	 	 

27Stockholders Agreement

 

Exhibit 10.2

STOCKHOLDERS AGREEMENT

     This Stockholders Agreement (this “Agreement”) dated as of February 1, 2005, is made
and entered into by and among (i) Triad Pharmaceuticals, Inc., a Delaware corporation (the
“Corporation”), (ii) 2004 Oikos Investment Partners, LP, a limited partnership
(“Oikos”), (iii) Kos Pharmaceuticals, Inc., a Florida corporation (“Kos,” and
together with Oikos, the “Purchasers”), (iv) Stone Life Sciences Holdings, Ltd., a Florida
limited partnership (“Stone Life”), (v) William W. Bachovchin (“Bachovchin”), (vi)
Tufts University, a Massachusetts not-for-profit corporation (“Tufts”), (vii) Future
Stockholders, (viii) Christopher Kiritsy (“Kiritsy”) and (ix) each other Person acquiring
Equity Securities of the Corporation in a Permitted Transfer hereunder.

     WHEREAS, the Corporation, Michael Jaharis (“Michael Jaharis”), Stone Life and
Bachovchin entered into a Stock Purchase Agreement dated as of September 8, 1999, as amended (the
“Series A Stock Purchase Agreement”), pursuant to which the Corporation issued and sold to
Michael Jaharis and Stone Life, and Michael Jaharis and Stone Life purchased from the Corporation,
shares of Series A Convertible Preferred Stock, $.10 par value per share (“Series A Preferred
Stock”), and, in the case of Michael Jaharis, Series B Convertible Preferred Stock, $.10 par
value per share (“Series B Preferred Stock”), of the Corporation;

     WHEREAS, the Corporation, Michael Jaharis, Stone Life and Bachovchin entered into a Stock
Purchase Agreement dated as of July 17, 2002, as amended (the “Series C Stock Purchase
Agreement”), pursuant to which the Corporation issued and sold to Michael Jaharis, and Michael
Jaharis purchased from the Corporation, shares of Series C Convertible Preferred Stock, $.10 par
value per share (“Series C Preferred Stock”), and Series D Convertible Preferred Stock,
$.10 par value per share (“Series D Preferred Stock”), of the Corporation;

     WHEREAS, the Corporation, Michael Jaharis, Stone Life and Bachovchin entered into a Stock
Purchase Agreement dated as of October 31, 2003, as amended (the “Series E Stock Purchase
Agreement”), pursuant to which the Corporation issued and sold to Michael Jaharis, and Michael
Jaharis purchased from the Corporation, shares of Series E Convertible Preferred Stock, $.10 par
value per share (“Series E Preferred Stock”), of the Corporation;

     WHEREAS, on November 8, 2004 Michael Jaharis transferred and assigned all of his right, title
and interest to the shares of Series A Preferred Stock, Series B Preferred Stock, Series C
Preferred Stock, Series D Preferred Stock and Series E Preferred Stock owned by him to his wife
Mary Jaharis (“Mary Jaharis”), including, without limitation, all rights and obligations of
Michael Jaharis under the Series A Stock Purchase Agreement, the Series C Stock Purchase Agreement,
the Series E Stock Purchase Agreement, the Stock Restriction Agreement (as defined below) and the
Voting Agreement (as defined below) attendant to such shares;

     WHEREAS, on December 30, 2004 Mary Jaharis transferred and assigned all of her right, title
and interest to (i) 190,000 shares of Series A Preferred Stock, (ii) 285,000 shares of Series B
Preferred Stock, (iii) 126,666 shares of Series C Preferred Stock, (iv) 126,667 shares of Series
D Preferred Stock, and (v) 152,000 shares of Series E Preferred Stock owned by her to Oikos,
including, without limitation, all rights and obligations of Mary Jaharis under the Series A

 

 

Stock Purchase Agreement, the Series C Stock Purchase Agreement, the Series E Stock Purchase
Agreement, the Stock Restriction Agreement and the Voting Agreement attendant to such shares;

     WHEREAS, on January 31, 2005 Mary Jaharis transferred and assigned (the “Mary Jaharis
Transfer” ) all of her right, title and interest to (i) 10,000 shares of Series A Preferred
Stock, (ii) 15,000 shares of Series B Preferred Stock, (iii) 6,667 shares of Series C Preferred
Stock, (iv) 6,666 shares of Series D Preferred Stock and (v) 8,000 shares of Series E Preferred
Stock owned by her to Kiritsy;

     WHEREAS, concurrently herewith, the Corporation and the Purchasers are entering into a Series
F Preferred Stock Purchase Agreement of even date herewith (the “Series F Stock Purchase
Agreement”), pursuant to which the Corporation has agreed to issue and sell to the Purchasers,
and the Purchasers have agreed to purchase from the Corporation, certain shares of Series F
Convertible Preferred Stock, $.10 par value per share (“Series F Preferred Stock” and,
together with the Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock,
Series D Preferred Stock and Series E Preferred Stock, the “Preferred Stock”), of the
Corporation (such sale and purchase of shares, the “Series F Financing”);

     WHEREAS, after giving effect to the Series F Financing, each signatory hereto owns, as of the
date hereof, that number of Equity Securities of the Corporation set forth opposite such party’s
name on Annex I hereto and believes that in connection with the Series F Financing, it is
advisable and in the best interests of the Corporation and the Stockholders to enter into this
Agreement to provide for the continued stability of the business and policies of the Corporation
and its subsidiaries, as the same may exist from time to time.

     NOW, THEREFORE, in consideration of the mutual covenants herein contained and other valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby
agree as follows:

     1. Certain Definitions. In addition to the terms defined in the Whereas clauses
above, as used in this Agreement, the following terms have the meaning set forth below:

     “Acceptance Period” has the meaning set forth in Section 5.3(a).

     “Accredited Investor” has the meaning set forth in Section 12.1.

     “Affiliate” means, with respect to any Person, any (a) director, officer, limited or
general partner, member or stockholder holding 5% or more of the outstanding capital stock or other
equity interests of such Person, (b) spouse, parent, sibling or descendant of such Person (or a
spouse, parent, sibling or descendant of a Person specified in clause (a) above relating to such
Person) and (c) other Person that, directly or indirectly, through one or more intermediaries,
controls, or is controlled by, or is under common control with, such Person. The term “control”
includes, without limitation, the possession, directly or indirectly, of the power to direct the
management and policies of a Person, whether through the ownership of voting securities, by
contract or otherwise.

     “Bachovchin Permitted Transfer” has the meaning set forth in Section 5.2(c).

2

 

     “Board” means the Board of Directors of the Corporation.

     “Budget” has the meaning set forth in Section 3.3.

     “Bylaws” means the Bylaws of the Corporation in effect as of the date hereof, as the
same may be amended, modified or supplemented after the date hereof.

     “Certificate of Incorporation” means the Amended and Restated Certificate of
Incorporation of the Corporation in effect as of the date hereof, as the same may be amended,
modified or supplemented after the date hereof.

     “Common Stock” means the common stock of the Corporation, $.001 par value per share.

     “Co-Sale Notice” has the meaning set forth in Section 5.4(a).

     “Co-Sale Offeree” has the meaning set forth in Section 5.4(a).

     “Co-Sale Offeror” has the meaning set forth in Section 5.4(a).

     “Equity Securities” means all shares of capital stock of the Corporation, whether or
not currently authorized, all securities convertible into or exchangeable for shares of capital
stock of the Corporation or issuable as payment under any notes or other indebtedness of the
Corporation, and all options, warrants, and other rights to purchase or otherwise acquire from the
Corporation shares of such capital stock, including any stock appreciation or similar rights,
contractual or otherwise.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Excluded Stock” means (i) securities offered to the public pursuant to a registration
statement filed under the Securities Act; (ii) securities issued pursuant to the acquisition of
another corporation by the Corporation by merger, purchase of substantially all of the assets or
stock, or other transaction whereby the Corporation acquires not less than 51% of the voting power
of such corporation; (iii) up to 377,100 shares (appropriately adjusted to take account of any
stock split, stock dividend, combination of shares or the like) of Common Stock (or related
options) issued to employees, officers or other persons performing services for the Corporation
pursuant to any stock offering, plan or arrangement approved by the Board of Directors as such
number of shares may be increased by the Board of Directors in accordance with Article Fourth,
Section B.3(c)(i)(4)(A) of the Certificate of Incorporation; (iv) shares of the Corporation’s
Common Stock issued in connection with any stock split, stock dividend or recapitalization by the
Corporation; (v) Equity Securities issued in connection with any line of credit from a bank or any
lease financing established not less than 30 days following delivery to the Investors of a notice
of intention to establish such line of credit or lease financing setting forth the material terms
of such line of credit or lease financing (but only if one or more of the Investors do not agree
within such 30-day period to provide such line of credit or lease financing to the Corporation on
substantially the same terms, including any terms related to such Equity Securities); (vi) shares
of the Corporation’s Common Stock issued upon conversion of the Preferred Stock; and (viii) shares
of Series F Preferred Stock issued or issuable after the date of this Agreement pursuant to the
Series F Stock Purchase Agreement.

3

 

     “First Offer” has the meaning set forth in Section 5.3(a).

     “First Offeree” has the meaning set forth in Section 5.3(a).

     “First Offeror” has the meaning set forth in Section 5.3(a).

     “Full Allotment” has the meaning set forth in Section 5.3(b).

     “Future Stockholder” shall have the meaning set forth in Section 5.1.

     “GAAP” means United States generally accepted accounting principles.

     “Group” means:

     (a) in the case of any Stockholder who is an individual, (i) such Stockholder, (ii)
such Stockholder’s spouse, parents, siblings, immediate issue (whether by the whole or half
blood and whether or not adopted), nieces and nephews, grandchildren or descendents, (iii) a
trustee of an inter vivos trust for the benefit of the Stockholder’s spouse, parents,
siblings, immediate issue (whether by the whole or half blood and whether or not adopted),
nieces and nephews, grandchildren or descendents, (iv) any corporation, partnership, limited
liability company or other entity, the shareholders, partners, members or beneficial owners
holding a majority in interest of which are such Stockholder and/or such Stockholder’s
spouse, parents, siblings, immediate issue (whether by the whole or half blood and whether
or not adopted), nieces and nephews, grandchildren or descendents, (v) any trust for the
benefit of such Stockholder and (vi) all Affiliates of such Stockholder;

     (b) in the case of Oikos, (i) each Person that is included in Oikos’ Group pursuant to
clause (c) below, (ii) each Person that would be included in the Oikos Group pursuant to
clause (a) above assuming for these purposes that Michael Jaharis was a Stockholder
hereunder, (iii) any Person who, at the time of the Transfer in question, is a employee,
consultant, board member or officer of the Corporation or consultant to Michael Jaharis and
(iv) any other Person as Oikos (or a designee of Oikos pursuant to Section 12.3 herein)
might name by delivery of written notice to the Corporation and the Right Holders; provided,
however, that any Transfer of Equity Securities to any such Person by Oikos pursuant to the
foregoing clause (iv) shall be counted toward the 35% amount set forth in Section 5.2(b)(ii)
hereof;

     (c) in the case of any Stockholder that is a partnership, (i) such Stockholder, (ii)
its limited, special and general partners, (iii) any Person to which such Stockholder shall
Transfer all or substantially all of its assets, and (iv) all Affiliates of such
Stockholder;

     (d) in the case of any Stockholder that is a corporation, (i) such Stockholder, (ii)
its stockholders, (iii) any Person to which such Stockholder shall Transfer all or
substantially all of its assets, and (iv) all Affiliates of such Stockholder;

4

 

     (e) in the case of any Stockholder that is a limited liability company, (i) such
Stockholder, (ii) its members, (iii) any Person to whom such Stockholder shall Transfer all
or substantially all of its assets, and (iv) all Affiliates of such Stockholder; and

     (f) in the case of a Stockholder that is a trust, such Stockholder and the
beneficiaries of the trust.

     “Investor” means the Purchasers, Stone Life, any Future Stockholder executing a
counterpart signature page of this Agreement as an Investor pursuant to Section 5.1(i) and any
Transferee of an Investor pursuant to a Permitted Transfer to the extent that the rights of the
Transferor Investor are assigned to the Transferee pursuant to Section 12.1.

     “Kiritsy Permitted Transfer” has the meaning set forth in Section 5.2(d)

     “Joinder Agreement” has the meaning set forth in Section 5.2(d).

     “Liquidation” means (i) any voluntary or involuntary liquidation, dissolution or
winding up of the affairs of the Corporation, other than any dissolution, liquidation or winding up
in connection with any reincorporation of the Corporation in another jurisdiction, or (ii) any Sale
of the Corporation.

     “New Securities” means all Equity Securities other than Excluded Stock and shares of
Common Stock issued in a Qualified IPO.

     “Observer” has the meaning set forth in Section 2.4.

     “Offered Shares” has the meaning set forth in Section 5.3(a).

     “Oikos Permitted Transfer” has the meaning set forth in Section 5.2(b)

     “Permitted Transfer” means a Bachovchin Permitted Transfer, a Kiritsy Permitted
Transfer, an Oikos Permitted Transfer, a Stockholder Permitted Transfer, a Transfer in accordance
with Section 5.2(b)(ii) and a Transfer which is not a Bachovchin Permitted Transfer but is
otherwise effected in accordance with Section 5.2(c).

     “Person” shall be construed in the broadest sense and means and includes a natural
person, a partnership, a corporation, an association, a joint stock company, a limited liability
company, a trust, a joint venture, an unincorporated organization and any other entity and any
federal, state, municipal, foreign or other government, governmental department, commission, board,
bureau, agency or instrumentality, or any private or public court or tribunal.

     “Pro Rata Amount” means (i) with respect to each Right Holders’ preemptive right
provided by Section 4, the quotient obtained by dividing (A) the number of shares of Common Stock
held by such Right Holder by (B) the aggregate number of shares of Common Stock outstanding,
assuming in each case the conversion or exchange of all securities by their terms convertible into
or exchangeable for Common Stock and the exercise of all vested and “in the money” options to
purchase or rights to subscribe for Common Stock (including warrants) or securities convertible
into or exchangeable for Common Stock, and (ii) with respect to each

5

 

Right Holder’s right of first refusal and right of co-sale provided by Sections 5.3 and 5.4,
respectively, the quotient obtained by dividing (X) the number of shares of Common Stock held by
such Right Holder by (Y) the aggregate number of shares of Common Stock held by all Right Holders
(except for any Right Holder that is a First Offeror in the case of Section 5.3) assuming in each
case the conversion or exchange of all securities by their terms convertible into or exchangeable
for Common Stock .

     “Qualified IPO” means the closing of an underwritten public offering of Common Stock
pursuant to an effective registration statement under the Securities Act of 1933, as amended, in
which (A) the initial public offering price per share is not less than $13.00 (appropriately
adjusted to take account of any stock split, stock dividend, combination of shares,
recapitalization or similar event) and (B) the aggregate net proceeds to the Corporation from such
offering (before underwriters discounts and commissions) are not less than $5,000,000.

     “Registration Rights Agreement” means the Amended and Restated Registration Rights
Agreement dated as of even date herewith, by and among the Corporation, the Stockholders and Tufts.

     “Right Holder” means Bachovchin, Kiritsy, each Investor and any Transferee of
Bachovchin, Kiritsy or an Investor pursuant to a Permitted Transfer to the extent that the rights
of the Transferor are assigned pursuant to Section 12.1.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Securities Laws” has the meaning set forth in Section 5.2(d).

     “Shares” has the meaning set forth in Section 2.1.

     “Stockholders” means Bachovchin, Kiritsy, Tufts, the Investors, any Future
Stockholders and any other Person acquiring Equity Securities of the Corporation who become party
to this Agreement as permitted hereunder; provided that solely for purposes of Section 5.2 and
Section 5.4 hereof, the term “Stockholder” and “Stockholders” shall not include Tufts and any
Transferee of Tufts.

     “Stockholder Permitted Transfer” has the meaning set forth in Section 5.2(a).

     “Stock Restriction Agreement” means the Stock Restriction Agreement dated as September
8, 1999 among the Corporation, certain holders of the Series A Preferred Stock, Series B Preferred
Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock, Tufts and
Bachovchin, as amended.

     “Subsidiary” means, with respect to any Person, any other entity the majority of whose
Equity Securities or voting securities are directly or indirectly owned or controlled by such
Person.

     “Tag-Along Notice” has the meaning set forth in Section 5.4(d).

6

 

     “Termination Date” means the earlier to occur of: (i) the closing of a Qualified IPO
and (ii) the closing of a Liquidation.

     “Transfer” means to sell, transfer, assign, pledge, hypothecate or otherwise dispose
of, either voluntarily or involuntarily and with or without consideration.

     “Transferee” means any Person to whom a Stockholder (other than, for the avoidance of
doubt, Tufts) shall Transfer Equity Securities of the Corporation.

     “Transferor” means a Stockholder (other than, for the avoidance of doubt, Tufts) who
is Transferring Equity Securities of the Corporation to another Person.

     “Voting Agreement” means the Voting Agreement dated as of September 8, 1999 by and
among the Corporation, Bachovchin, Stone Life, Oikos, Kiritsy and Tufts, as amended.

     2. Voting Rights: Board of Directors

          2.1 The Stockholders agree to vote all shares of the Corporation’s Common Stock, $.001 par
value per share (the “Common Stock”), the Preferred Stock and any other class of voting
security of the Corporation (collectively, the “Shares”) now or hereafter owned or
controlled by them, to set the number of directors of the Corporation at thirteen (13) and to elect
as directors, on the date of this Agreement and in any subsequent election of directors of the
Corporation: (a) Bachovchin; (b) seven (7) persons designated by Oikos (or by a designee of Oikos
pursuant to Section 12.3 hereof); (c) three (3) persons designated by Kos; (d) one (1) person
designated by Stone Life; and (e) the Chief Executive Officer of the Corporation (the
“CEO”). At any time that the Corporation does not have a CEO, the associated seat on the
Board of Directors shall be filled by a person designated by Bachovchin and reasonably acceptable
to Oikos and Kos, which person shall have relevant industry experience and shall not, prior to such
appointment, be an Affiliate of the Corporation or of any Stockholder.

          2.2 Any Stockholder or Stockholders entitled to designate one or more directors pursuant to
this Agreement shall furnish written notice to the other Stockholders, at least ten (10) days prior
to any election of directors, of such designating Stockholder’s or Stockholders’ respective
director-designee(s). In the absence of such notice, the director-designee(s) of such Stockholder
or Stockholders then serving on the Board of Directors shall continue in office until their
successors are duly elected and qualified. No party hereto shall vote to remove any member of the
Board of Directors designated in accordance with the aforesaid procedure unless the Stockholder or
Stockholders who designated such member of the Board of Directors votes for their removal, and, in
such case, all Stockholders shall likewise vote to remove such member of the Board of Directors.

          2.3 Any vacancy on the Board of Directors created by the resignation, removal, incapacity or
death of any person designated under Section 2.1 and elected to the Board of Directors shall be
filled by another person designated by the Stockholder or Stockholders, as applicable, that
originally designated such member of the Board of Directors. The Stockholders shall vote their
respective Shares in accordance with such new designation, and any such vacancy shall not be filled
in the absence of such a new designation.

7

 

          2.4 In addition to the power to designate persons to serve as directors of the Corporation, if
any, (i) Oikos shall be entitled to designate one person as an observer to attend and observe all
meetings of the Board of Directors of the Corporation and any committees thereof (an
“Observer”), and (ii) Stone Life shall be entitled to designate one person as an Observer.
The Corporation shall provide each Observer with copies of all materials provided to members of the
Board of Directors or any committees thereof, including without limitation notices of all meetings
of the Board of Directors and committees thereof. Notwithstanding the foregoing, the Corporation
reserves the right to exclude any Observer from access to any material or meeting, or portion
thereof, if the Corporation believes that such exclusion is reasonably necessary to preserve the
attorney-client privilege, to protect highly confidential information or for other similar reasons.

          The Investors and their respective Observers (where applicable) shall not disclose to any
person or entity (or, in the case of Kos and Stone Life, any person or entity outside of such
Investor’s organization) any confidential information of the Corporation (including, without
limitation, any information relating to the organization, business or finances of the Corporation,
any information relating to the Corporation’s products or services or any other proprietary
information of the Corporation) learned by any of them as a result of the rights granted by this
Section 2.4 or any information concerning a third party that the Corporation is under a duty to
keep confidential (“Confidential Information”). Oikos and Stone Life agree that the
Corporation may enforce this provision directly against its Observer, as the case may be. The term
“Confidential Information” shall not include information that the Corporation has voluntarily
disclosed to the public without restriction or that has otherwise lawfully entered the public
domain without breach of the confidentiality provisions hereof by Oikos, Kos, Stone Life, Kiritsy
or their applicable Observers.

          On or prior to the date hereof, each of Oikos, Kos, Stone Life and Bachovchin shall have
furnished to the Corporation the name of some or all of his or its board designee(s) pursuant to
Section 2.1 of this Agreement. In addition, on or prior to the date hereof, each of Oikos and
Stone Life shall have furnished to the Corporation the name of its Observer who will be entitled to
attend meetings of the Board of Directors and receive materials and information pursuant to this
Section 2.4. If either Oikos or Stone Life desires to change its Observer, it shall give the
Corporation at least five (5) business days prior written notice.

          2.5 Notwithstanding anything in this Agreement to the contrary, in the event that the
aggregate number of shares of Common Stock beneficially owned by a Stockholder entitled to
designate one or more directors and/or an Observer pursuant to this Section 2 (including all shares
held by such Stockholders’ Group and determined as of any date as if all shares of Preferred Stock
or other convertible or exchangeable securities beneficially owned by such Stockholder and Group
had been converted into or exchanged for, as applicable, Common Stock) is less than 250,000 shares
of Common Stock, or in the case of the right to designate an Observer, is less than 50,000 shares
of Common Stock (in either case subject to adjustment for stock splits, stock dividends,
combinations of shares, recapitalizations and similar events), such Stockholder’s right to
designate directors and/or to designate an Observer under this Section 2, if any, shall terminate,
and the obligation of the other Stockholders under this Section 2 to vote for the director(s)
designated by such Stockholder shall terminate, but all other obligations of the Stockholders
hereunder shall continue unless otherwise terminated in accordance with the

8

 

provisions of this Agreement. In addition, in the event that Bachovchin ceases to be employed
by, or a consultant to, the Corporation for any reason, whether voluntarily or involuntarily,
Bachovchin’s right to serve as a director and to designate directors under this Section 2 shall
terminate, and the obligations of the other Stockholders under this Section 2 to vote for
Bachovchin or such director(s) designated by Bachovchin shall terminate, but all other obligations
of the Stockholders hereunder shall continue unless otherwise terminated in accordance with the
provisions of this Agreement.

          2.6 In the event that any director contemplated by this Section 2 shall be made or threatened
to be made a party to any action, suit or proceeding with respect to which he or she may be
entitled to indemnification by the Corporation pursuant to its Certificate of Incorporation or
otherwise, such director shall be entitled to be represented in such action, suit or proceeding by
counsel of his/her choice and the expenses of such representation shall be reimbursed by the
Corporation to the extent provided in or authorized by said Certificate of Incorporation or other
provision and permitted by applicable law.

          The Corporation and the Stockholders agree not to take any action to amend any provision of
the Certificate of Incorporation of the Corporation relating to indemnification of directors, as
presently in effect, without the prior written consent of the Purchasers, provided,
however, that the right of any Purchaser to require its consent as a condition to any such
action to amend shall terminate when such Purchaser’s right to designate one or more directors
under this Section 2 shall terminate.

     3. Management of the Corporation.

          3.1 Visitations Rights; Access to Records. Subject to the limitations set forth in
Section 3.4, the Corporation agrees to afford to each of the Investors and their respective counsel
and authorized representatives, the right periodically upon reasonable notice during normal
business hours without material interference with the business of the Corporation, to examine
financial records and properties of the Corporation at the Corporation’s premises and to discuss
the business affairs and financial accounts and operating results of the Corporation with any of
its officers or employees.

          3.2 Financial Reports. Subject to the limitations set forth in Section 3.4, the
Corporation agrees to furnish each of the Investors with the following:

               (a) As soon as practicable after the end of each fiscal year of the Corporation, and in any
event within one hundred twenty (120) days thereafter (or by such earlier date as may be reasonably
requested by Kos in order for Kos to comply with its reporting obligations under the Exchange Act),
commencing within one hundred twenty (120) days (or such earlier date as aforesaid) of the end of
the Corporation’s fiscal year for 2004, the audited consolidated balance sheet and audited
consolidated statements of income, cash flows and stockholders’ equity of the Corporation and its
subsidiaries, if any, for and as of the end of such fiscal year, together with comparable amounts
for the preceding fiscal year, in each case prepared in accordance with GAAP consistently applied
and all in reasonable detail and accompanied by a report thereon certified by independent public
accountants of recognized national or regional standing selected by the Corporation and reasonably
satisfactory to the

9

 

Investors. Such financial statements shall be accompanied by such accountant’s annual
management letter, if any.

               (b) As soon as practicable after the end of the first three quarters of each fiscal year of
the Corporation, and in any event within thirty (30) days thereafter (or by such earlier date as
may be reasonably requested by Kos in order for Kos to comply with its reporting obligations under
the Exchange Act), an unaudited consolidated balance sheet, statement of income and statement of
cash flows of the Corporation and its subsidiaries, if any, as of the end of each such quarterly
and year to date period, together with comparable amounts for the preceding fiscal year, in each
case prepared in accordance with GAAP consistently applied and all in reasonable detail and
certified on behalf of the Corporation by the Chief Executive Officer or Chief Financial Officer as
having been so prepared.

               (c) As soon as practicable after the end of each month, and in any event within thirty (30)
days thereafter, an unaudited consolidated balance sheet, statement of income and statement of cash
flows of the Corporation and its subsidiaries, if any, for and as of the end of such month and the
year to date period, together with comparable amounts for the preceding fiscal year, in each case
prepared in accordance with GAAP consistently applied and all in reasonable detail and certified on
behalf of the Corporation by the Chief Executive Officer or Chief Financial Officer as having been
so prepared, except such financial statements need not contain the notes required by GAAP and may
be subject to normal year-end adjustments, which adjustments will not be material either
individually or in the aggregate.

               (d) With respect to the then current fiscal year periods, the financial statements delivered
pursuant to Sections 3.2(b) and (c) above shall also include a comparison between the actual
figures for such month, quarter and year to date periods and the comparable figures included in the
Budget for such month, quarter and year to date period, with an explanation of any material
differences between them.

               (e) If for any period the Corporation shall have any subsidiary whose accounts are
consolidated with those of the Corporation, then in respect of such period the financial statements
delivered pursuant to the foregoing Sections 3.2(a), (b) and (c) shall be the consolidated and
consolidating financial statements of the Corporation and all such consolidated subsidiaries.

               (f) Promptly upon becoming available:

                    (i) copies of all financial statements, reports, notices, press releases, proxy statements and
other documents released to the public by the Corporation and copies of all regular and periodic
reports, if any, filed by the Corporation with the Commission or any securities exchange; and

                    (ii) any other financial information available to management of the Corporation as any of the
Investors shall reasonably request from time to time.

          3.3 Budget and Operating Forecast. With respect to the fiscal year of the Corporation
beginning on January 1, 2005, the Corporation will prepare and submit to the Board of Directors and
each of the Investors at least 20 days prior to the end of the first fiscal quarter of

10

 

such fiscal year a proposed operating plan of the Corporation (the “Budget”) for such
fiscal year. With respect to each fiscal year thereafter, the Corporation agrees to prepare and
submit a proposed Budget to the Board of Directors and each of the Investors at least 20 days prior
to the beginning of each such fiscal year. The Budget shall be accepted as the Budget for such
fiscal year when it has been approved by the Board of Directors. The Budget for each fiscal year
shall be reviewed by the Corporation periodically and all changes therein and all material
deviations therefrom which are proposed to be made by the Corporation shall be resubmitted to its
Board of Directors in advance and shall be accepted when approved by, and the Corporation shall not
make any such changes or material deviations to or from the Budget without such prior approval of,
its Board of Directors. The Budget shall include an income statement, balance sheet and cash flow
information. To the extent not already reflected in the most recent Budget delivered pursuant to
this Section 3.3, the Corporation shall prepare, and the Board of Directors shall approve, a
revised Budget for the applicable fiscal year to reflect the funds to be received by the
Corporation in the Second Closing (as such term is defined in the Series F Stock Purchase
Agreement), and the Corporation shall cause such revised Budget to be delivered to the Investors
prior to the date of such Second Closing.

          3.4 Limitations on Certain Rights of Investors Under Section 3.

               (a) The Corporation shall provide the quarterly and annual information required by Sections
3.2(a) and 3.2(b) to each Investor so long as such Investor shall continue to own any shares of
Preferred Stock or Common Stock issued on conversion of Preferred Stock. The Corporation shall
provide the visitation rights, access to records and the monthly financial information required by
Sections 3.1 and 3.2(c) to each Investor only so long as such Investor shall own at least 50,000
shares of Common Stock (determined in the case of a holder of Preferred Stock on an as converted
basis). The foregoing provisions of this Section 3.4 to the contrary notwithstanding, the Investors
(other than Kos) shall not have any rights and the Corporation shall not have any obligations under
the foregoing provisions of this Section 3 (except as to Kos) at such time that the Common Stock is
registered under Section 12 of the Exchange Act or has been sold to the public in an initial public
offering pursuant to a registration statement which has been declared effective by the Securities
and Exchange Commission under the Securities Act.

               (b) With respect to the rights provided by Section 3.2 and 3.3 to receive financial
information and a yearly Budget from the Corporation, such rights shall be satisfied as to Oikos
and as to any member of Oikos’ Group, by delivery of one copy of any such required document to
Oikos and delivery of two copies of each required document to the offices of Steven K. Aronoff (at
the address indicated in Section 7 of the Series F Stock Purchase Agreement), or to such other
person as Oikos may designate from time to time.

          3.5 Confidentiality. Any confidential or proprietary information of the Corporation
obtained by any Stockholder holding Preferred Stock or Common Stock shall be treated as
confidential and shall not be disclosed to a third party without the prior written consent of the
Corporation. The obligations under this Section 3.5 shall survive any termination of this
Agreement and any transfer or conversion of Preferred Stock or Common Stock.

11

 

          3.6 Insurance. The Corporation shall obtain and shall maintain, with financially
sound and responsible insurers (a) fire, casualty, products liability and other liability insurance
policies, with extended coverage in amounts customary for companies similarly situated and (b) such
other insurance, including officer and director insurance, as may be satisfactory to the Board.

     4. Preemptive Rights.

          4.1 The Corporation hereby grants to each of the Right Holders the right of first refusal to
purchase their Pro Rata Amount (or any part thereof) of any New Securities that the Corporation
may, from time to time, propose to sell or issue following the date of this Agreement.

          4.2 In the event that the Corporation proposes to undertake an issuance of New Securities, at
least 30 days before such issuance, it shall give to each Right Holder written notice of its
intention, describing in such notice the type of New Securities, the price, and the general terms
upon which the Corporation proposes to issue the same. Each Right Holder shall have 15 days from
the date of its receipt of any such notice to agree to purchase all or a part of its Pro Rata
Amount of such New Securities for the price and upon the general terms specified in the notice by
giving written notice to the Corporation and the other Right Holders and stating therein the
quantity of New Securities to be purchased. Each Right Holder shall have a right of over-allotment
such that if any Right Holder fails to exercise in whole or in part its right hereunder to purchase
its Pro Rata Amount of New Securities, each other Right Holder who or which elected to purchase in
full its Pro Rata Amount may purchase the nonpurchasing Right Holder’s portion on a pro rata basis,
by giving notice to the Corporation within 5 days from the date such nonpurchasing Right Holder
fails to exercise its right hereunder to purchase its Pro Rata Amount of New Securities.

          4.3 In the event that the Right Holders fail to exercise in full the preemptive right set
forth in this Section 4 within said 15 plus 5 day period, the Corporation shall have 90 days
thereafter to sell the New Securities respecting which such right was not exercised, at a price and
upon general terms no more favorable to the purchasers thereof than specified in the Corporation’s
notice. In the event the Corporation has not sold such New Securities within said 90 day period,
the Corporation shall not thereafter issue or sell any New Securities, without first offering such
New Securities to the Right Holders in the manner provided above.

     5. Transfers

          5.1 Future Stockholders. The Corporation shall use its best efforts to cause each
Person that is not already a Stockholder hereunder and that acquires Equity Securities directly
from the Corporation after the date hereof entitling them, either directly or indirectly, to hold
more than one percent (1%) of the Common Stock of the Corporation (calculated on a fully-diluted
basis) (a “Future Stockholder”), to execute a counterpart to this Agreement, agreeing to be
treated as (i) an Investor, if such Person acquires shares of a series of the Corporation’s
authorized but unissued Preferred Stock, or (ii) a non-Investor Stockholder, if such Person
acquires shares of the Corporation’s authorized but unissued Common Stock, whereupon such

12

 

Person shall be bound by, and entitled to the benefits of, the provisions of this Agreement
relating to Investors or non-Investor Stockholders, as the case may be.

          5.2 Limitations on Transfers.

               (a) Except as otherwise specifically provided in Sections 5.2(b), 5.2(c) and 5.2(d), each
Stockholder agrees with the other Stockholders and with the Corporation that during the term of
this Agreement such Stockholder will not Transfer any Equity Securities of the Corporation now
owned or hereafter acquired by such Stockholder to any person or entity except in a Stockholder
Permitted Transfer. For purposes of this Agreement, “Stockholder Permitted Transfer” means
(A) any Transfer by a Stockholder to any Person that is a member of the Group of such Stockholder,
(B) any Transfer made accordance with the provisions of Sections 5.3 or 5.4 below, or (C) any other
Transfer made with the prior written consent of the Right Holders holding at least 65% of the then
outstanding shares of Common Stock issued or issuable on conversion of all outstanding shares of
Preferred Stock.

               (b) Oikos agrees with the other Stockholders and with the Corporation that, during the term of
this Agreement:

                    (i) except as provided to the contrary in Section 5.2(b)(ii), neither Oikos nor any member of
Oikos’ Group will Transfer any Equity Securities of the Corporation now owned or hereafter acquired
by Oikos to any person or entity except in an Oikos Permitted Transfer. For purposes of this
Agreement, “Oikos Permitted Transfer” means (A) any Transfer to a member of Oikos’ Group,
provided, however, that the cumulative number of Transferees within Oikos’ Group does not exceed
the lesser of 100 persons (including Oikos) or entities, or such number as would require the
Corporation to register such Transfers or the Equity Securities transferred or any Equity
Securities under any of the Securities Laws, (B) any Transfer made accordance with the provisions
of Sections 5.3 or 5.4 below; or (C) any other Transfer made with the prior written consent of the
Right Holders holding at least 65% of the then outstanding shares of Common Stock issued or
issuable on conversion of all outstanding shares of Preferred Stock; and

                    (ii) Oikos, and Transferees of Oikos that are members of Oikos’ Group, may, collectively,
Transfer up to 35% of the Equity Securities (calculated on an as converted basis) owned by Oikos as
of the date of this Agreement other than pursuant to a Oikos Permitted Transfer.

               (c) Bachovchin agrees with the other Stockholders and with the Corporation that, during the
term of this Agreement, neither Bachovchin nor any member of Bachovchin’s Group will Transfer any
Equity Securities of the Corporation now owned or hereafter acquired by Bachovchin to any person or
entity except in a Bachovchin Permitted Transfer, provided, however, that (i) on or after the third
anniversary of the date of this Agreement, Bachovchin and Transferees from Bachovchin that are
members of Bachovchin’s Group may Transfer in the aggregate up to 10% of the Common Stock owned by
Bachovchin on the date of this Agreement (including for purposes of such calculation Common Stock
issuable to Bachovchin upon the exercise of options outstanding on the date of this Agreement
granted under the Corporation’s 1999 Stock Option Plan) other than pursuant to a Bachovchin
Permitted

13

 

Transfer (and without such Transfer being subject to Sections 5.3 or 5.4), and (ii) on or
after the seventh anniversary of this Agreement all Equity Securities now owned or hereafter
acquired by Bachovchin and any Transferee of Bachovchin that is a member of Bachovchin’s Group may
be Transferred other than pursuant to a Bachovchin Permitted Transfer but subject to the rights of
the other Stockholders pursuant to Sections 5.3 and 5.4. For purposes of this Agreement,
“Bachovchin Permitted Transfer” means (A) any Transfer to a member of his Group, (B) any
Transfer pursuant to Sections 5.4 where neither Bachovchin nor a member of Bachovchin’s Group is a
Co-Sale Offeree, or (C) any other Transfer made with the prior written consent of the Right Holders
holding at least 65% of the then outstanding shares of Common Stock issued or issuable on
conversion of all outstanding shares of Preferred Stock (in which case Bachovchin or such member of
Bachovchin’s Group shall be deemed a First Offeror or a Co-Sale Offeree under Sections 5.3 and 5.4,
which Sections shall be applicable in their entirety to such proposed Transfer by Bachovchin).

               (d) Kiritsy agrees with the other Stockholders and with the Corporation that, during the term
of this Agreement, neither Kiritsy nor any member of Kiritsy’s Group will Transfer any Equity
Securities of the Corporation now owned or hereafter acquired by Kiritsy to any person or entity
except in a Kiritsy Permitted Transfer; provided, however, that in no event shall Kiritsy or a
member of Kiritsy’s Group Transfer Equity Securities if such Transfer is prohibited under either
(i) that certain Jaharis Voting Trust Agreement, dated February 1, 2005, by and among Kiritsy, Mary
Jaharis and Oikos, as the same may be amended from time to time (the “Jaharis Voting Trust
Agreement”), or (ii) that certain Triad Voting Trust Agreement, dated February 1, 2005, by and
among Kiritsy, Kevin Ferro and the Corporation, as the same may be amended from time to time (the
“Triad Voting Trust Agreement”). For purposes of this Agreement, “Kiritsy Permitted
Transfer” means (A) any Transfer to a member of his Group, (B) any Transfer pursuant to
Sections 5.4 where neither Kiritsy nor a member of Kiritsy’s Group is a Co-Sale Offeree, (C) any
Transfer made to either of the respective Trustees pursuant to and in accordance with the Jaharis
Voting Trust Agreement or the Triad Voting Trust Agreement, (D) any pledge or hypothecation of
shares of Preferred Stock held by Kiritsy as collateral security for a loan or loans extended by
Mary Jaharis to Kiritsy in connection with the Mary Jaharis Transfer, or (E) any other Transfer
made with the prior written consent of the Right Holders holding at least 65% of the then
outstanding shares of Common Stock issued or issuable on conversion of all outstanding shares of
Preferred Stock (in which case Kiritsy or such member of Kiritsy’s Group shall be deemed a First
Offeror or a Co-Sale Offeree under Sections 5.3 and 5.4, which Sections shall be applicable in
their entirety to such proposed Transfer by Kiritsy).

               (e) In addition to the requirements of Sections 5.2(a) through 5.2(d), no Transfer shall be
made by any Stockholder, and no Transfer shall be deemed a Permitted Transfer hereunder unless, in
each case (i) the Transferee, unless already a party to this Agreement, shall have furnished to the
Corporation a written joinder agreement (a “Joinder Agreement”) executed by such Transferee
pursuant to which such Transferee shall have agreed to hold the Equity Securities that are the
subject of such Transfer subject to and be bound by all the restrictions and covenants set forth in
this Agreement that are applicable to the Transferor, and (ii) either (A) the Transfer is
pursuant to an effective registration statement under the Securities Act and in compliance with any
other applicable federal securities laws and state securities or “blue sky” laws (collectively,
“Securities Laws”), or (B) the Joinder Agreement furnished by the Transferee, if any, shall
contain appropriate representations, reasonably

14

 

acceptable to the Corporation, to evidence that an exemption from such registration is
available with respect to such Transfer and, if reasonably requested by the Corporation, the
Transferor shall have furnished the Corporation with an opinion of counsel, which opinion and
counsel must be reasonably satisfactory to the Corporation, to the effect that no such registration
is required because of the availability of an exemption from registration under the Securities Laws
and that the Transfer otherwise complies with this Agreement and the Securities Laws, provided that
no such opinion of counsel will be required if the Transferee is a member of the Group of the
Transferor. Any Transfer of Equity Securities by any Stockholder not in accordance with this
paragraph shall be void. Notwithstanding anything in this Agreement to the contrary, in no event
shall a Stockholder Transfer Equity Securities to any Person whom the Board of Directors of the
Corporation reasonably determines in good faith to be a direct or indirect competitor of either Kos
or the Corporation.

               (f) The Corporation shall not record upon its books any Transfer of Equity Securities held or
owned by any of the Stockholders to any other Person except Transfers made in accordance with this
Section 5.2.

          5.3 Right of First Refusal.

               (a) If any Stockholder (the “First Offeror”) proposes to Transfer any Equity
Securities that are subject to the restrictions of Sections 5.2(a) through 5.2(d) to any Person
other than to a member of the Group of such Stockholder, the First Offeror shall, before such
Transfer, deliver to the Right Holders an offer (the “First Offer”) to Transfer such Equity
Securities upon the terms set forth in this Section 5.3(a), including (A) the number or amount of
Equity Securities to which the First Offer relates (the “Offered Shares”) and the name of
the First Offeror, (B) the name and address of the proposed offeree (the “First Offeree”),
(C) the proposed amount and type of consideration (including, if the consideration consists in
whole or in part of non-cash consideration, such information available to the First Offeror as may
be reasonably necessary for the Right Holders to properly analyze the economic value and investment
risk of such non-cash consideration) and the terms and conditions of payment offered by the First
Offeror. The First Offer shall remain open and irrevocable for a period of 30 days (the
“Acceptance Period”) from the date of its receipt by the Right Holders.

               (b) Any Right Holder may accept the First Offer and purchase his, her or its Pro Rata Amount
of the Offered Shares (with respect to each Right Holder, its “Full Allotment”) by
delivering to the First Offeror a notice (the “Acceptance Notice”) in writing within the
Acceptance Period. Each Right Holder purchasing its Full Allotment may also accept the First Offer
and purchase his, her or its Pro Rata Amount of any remaining shares not so purchased by the other
Right Holders.

               (c) The First Offeror may Transfer any or all of the Offered Shares not purchased by the Right
Holders, on terms and conditions no more favorable to the First Offeree than are described in the
First Offer, within 60 days after expiration of the Acceptance Period. If such Transfer is not
made within such 60-day period, the restrictions provided for in this Section 5.3 shall again
become effective.

15

 

               (d) For purposes of this Section 5.3, each Right Holder may aggregate his, her or its Pro Rata
Amount among other Right Holders in his, her or its Group to the extent that such other Right
Holders in his, her or its Group do not elect to purchase their respective Full Allotments.

               (e) The provisions of this Section 5.3 shall not apply to a Transfer pursuant to Section
5.2(b)(ii).

          5.4 Co-Sale/Tag-Along Rights.

               (a) If a Stockholder (the “Co-Sale Offeree”) receives an offer to Transfer any Equity
Securities to any Third Party (the “Co-Sale Offeror”), the Co-Sale Offeree shall, at least
30 days before such Transfer, deliver a notice (the “Co-Sale Notice”) to the Right Holders
that sets forth substantially the same information as the First Offer in Section 5.3(a) hereof;
provided, however, that such Co-Sale Notice shall indicate that the Co-Sale Offeror has been
informed of the co-sale rights provided for in this Section 5.4 and has agreed to purchase Equity
Securities in accordance with the terms hereof.

               (b) The Co-Sale Offeree shall not Transfer any Equity Securities to the Co-Sale Offeror unless
the Right Holders are permitted to Transfer their respective Pro Rata Amounts of the aggregate
number of Equity Securities to which the Co-Sale Offer relates.

               (c) The Co-Sale Offeree shall, in addition to complying with the provisions of this Section
5.4, comply with the other provisions of this Section 5 (it being understood that the notice
contemplated by Section 5.3 and the Co-Sale Notice contemplated by this Section 5.4 may be included
in a single notice).

               (d) Within 30 days after delivery of the Co-Sale Notice, each Right Holder may elect to
participate in the proposed Transfer by delivering to such Co-Sale Offeree a notice (the
“Tag-Along Notice”) specifying the number of Equity Securities, up to his, her or its Pro
Rata Amount (based upon the aggregate number of Equity Securities of the Corporation outstanding at
such time), with respect to which the Right Holder shall exercise his, her or its rights under this
Section 5.4. For purposes of this Section 5.4, each Right Holder may aggregate his, her or its Pro
Rata Amount among other Stockholders in his, her or its Group to the extent that such other
Stockholders in its Group do not elect to sell their respective Pro Rata Amounts.

               (e) Any Equity Securities requested to be included in any Co-Sale Notice shall be Transferred
on terms no less favorable to the Transferor than those set forth in the Co-Sale Notice.

               (f) The provisions of this Section 5.4 shall not apply to a Transfer pursuant to Section
5.2(b)(ii).

     6. Termination. Except as otherwise provided herein, this Agreement, and the
respective rights and obligations of the parties hereunder, shall terminate upon the Termination
Date. Notwithstanding the foregoing, Kos’ rights under Sections 3.2 and 3.3 shall survive the
consummation of a Qualified IPO in order to permit Kos to comply with its reporting obligations
under the Exchange Act.

16

 

     7. Legend. In addition to any other legends that may be required by law, there shall
be endorsed on each certificate for Equity Securities issued by the Corporation to the Stockholders
a legend substantially to the following effect:

“The securities represented by this certificate are subject to
restrictions on transfer and to other limitations set forth in a
Stockholders’ Agreement dated February 1, 2005 among the Corporation
and its stockholders, a copy of which is available at the office of
the Corporation. No transfer of any interest in such securities is
effective unless made in compliance with the terms of such
Agreement.”

“The securities represented by this certificate have been acquired
for investment and have not been registered under the Securities Act
of 1933, as amended, or any state securities or blue sky laws.
These securities may not be sold or transferred in the absence of
such registration or an exemption therefrom under said Act or laws.”

     8. Notices. All notices, requests, consents and other communications hereunder to a
party shall be deemed to be sufficiently given if contained in a written instrument delivered in
person, sent via a reputable nationwide overnight courier services guaranteeing next business day
delivery, or duly sent by first class registered or certified mail, postage prepaid, addressed in
each case to such party at the address set forth below or such other address as may hereafter be
designated in writing by such party to all other parties:

          8.1 if to the Corporation, to the address set forth in Section 7 of the Series F Stock
Purchase Agreement (with a copy to be sent as indicated therein);

          8.2 if to a Purchaser, to the address set forth in Section 7 of the Series F Stock Purchase
Agreement (with a copy to be sent as indicated therein); and

          8.3 if to any other Stockholder, to the address of Stockholder as reflected in the books and
records of the Corporation.

     9. Entire Agreement. This Agreement constitutes the entire agreement among the
parties concerning the subject matter hereof, and supersedes all prior agreements, written or oral,
between or among them concerning such subject matter in their entirety, including, without
limitation, the Voting Agreement, the Stock Restriction Agreement and the provisions of Sections 8
and 9 of the Series A Stock Purchase Agreement, as amended (such Voting Agreement, Stock
Restriction Agreement and the provisions of Sections 8 and 9 of the Series A Stock Purchase
Agreement being hereby terminated and of no further force or effect); provided, however, that the
Stock Issuance Agreement, dated September 8, 1999, between the Corporation and Tufts shall not be
superseded hereby and shall remain in full force and effect.

     10. Remedies; Further Agreements.

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          10.1 In addition to any other remedies provided by law, it is acknowledged that it will be
impossible to measure in money the damages that would be suffered if the parties hereto fail to
comply with any of the obligations herein imposed on them and that in the event of any such
failure, an aggrieved person will be irreparably damaged and will not have an adequate remedy at
law. Any such aggrieved person shall, therefore, be entitled to injunctive relief, including
specific performance, to enforce such obligations, and if any action should be brought in equity to
enforce any of the provisions of this Agreement, none of the parties hereto shall, to the fullest
extent permitted by applicable law, raise the defense that there is an adequate remedy at law.

          10.2 Each of the parties hereto agrees to execute all such further instruments and documents,
and to take all such further actions, as any other party may reasonably require in order to
effectuate the terms and purposes of this Agreement.

     11. Amendments, Waivers. Except as otherwise provided herein, this Agreement may be
amended, and compliance with any provision of this Agreement may be omitted or waived, only by the
written agreement of the Corporation, and the holders of a majority of the then outstanding shares
of Common Stock issued or issuable on conversion of all outstanding shares of Preferred Stock. In
addition, (i) any amendment to Section 2 of this Agreement shall also require the prior written
consent of Bachovchin, Kos and Oikos but in each case only to the extent that such amendment is
materially adverse to Bachovchin, Kos or Oikos, as the case may be (it being understood that an
increase in the size of the Board or the addition of a Board designation right(s) to a Future
Stockholder shall not be deemed adverse to Bachovchin, Kos and Oikos), provided that an amendment
to Section 2 relating solely to the right to designate an Observer shall only require the
additional consent of Oikos and Stone Life but in each case only to the extent that such amendment
is materially adverse to Stone Life or Oikos, as the case may be, (ii) any amendment to Sections
3.2(a), 3.2(b) and Section 3.3 shall also require the prior written consent of each of Bachovchin,
Kos and Oikos, (iii) any amendment to Section 4 shall also require the written consent of Kos
unless such amendment applies in the same fashion to Oikos and the members of Oikos’ Group as it
does to Kos, (iv) any amendment to Section 5.2(c) or the related definition of Group as it relates
to Bachovchin shall also require the prior written consent of Bachovchin, (v) any amendment to
Section 5.2(b) or the related definition of Group as it relates to Oikos shall also require the
prior written consent of each of Bachovchin and Kos, (vi) any amendment to Section 5.2(d) or the
related definition of Group as it relates to Kiritsy shall also require the prior written consent
of Kiritsy, and (vii) any amendment to the definition of Group insofar as such amendment relates to
Kos shall also require the prior written consent of Kos. Notwithstanding the foregoing, no
provision of this Agreement may be amended or terminated, and the observance of any term hereunder
may not be waived, with respect to any Stockholder without the written consent of such Stockholder
unless such amendment, termination or waiver applies in the same fashion to all Stockholders with
like rights and obligations pursuant to such provision or term. A waiver or omission on one
occasion shall not constitute a waiver or omission on any further occasion.

     12. Assignment; Successors and Assigns; Designees.

          12.1 The rights and obligations of any Stockholder under this Agreement (with the exception of
the right to designate one or more directors or an Observer pursuant to Section

18

 

2, provided that the foregoing shall not apply to Oikos) may and, unless the terms of such
Transfer or this Agreement provide to the contrary, will be transferred to any Transferee acquiring
not less than 25,000 shares of Common Stock (including for such purpose shares of Common Stock
issuable upon conversion of Preferred Stock acquired by such assignee) appropriately adjusted to
take account of any stock split, stock dividend, combination of shares, or the like, who acquired
such shares in a transaction otherwise in accordance with Section 5.2 hereof and, with respect to
the rights provided by Sections 4 and 5, who is an “accredited investor,” as that term is used in
Regulation D promulgated under the Securities Act (an “Accredited Investor”). In the event
that any Transferee will, pursuant to the terms of the Transfer, receive less than all the rights
of the Transferor that are transferable hereunder, the Transferor shall deliver to the Corporation
and to the Right Holders notice of the rights that will be bestowed on the Transferee prior to the
consummation of such Transfer.

     Except as may be expressly provided otherwise herein, this Agreement shall be binding on, and
shall inure to the benefit of, the parties hereto and their respective heirs, legal
representatives, successors and permitted assigns and transferees. In addition, for the avoidance
of doubt, in connection with a Transfer(s) permitted by Section 5.2(b), Oikos (or Oikos’ designee
pursuant to Section 12.3) may, by giving written notice to the Corporation setting forth the rights
bestowed, assign (i) one or more of Oikos’ director designation rights pursuant to Section 2, (ii)
Oikos’ right to an Observer pursuant to Section 2, or (iii) all or a portion of Oikos’ rights
pursuant to Section 4, 5.3 or 5.4, to the Transferee(s) in such Transfer(s), it being understood
that such rights may not be further assigned by the Transferee unless reassigned to a member of
Oikos’ Group.

          12.2 Notwithstanding anything in this Agreement to the contrary, with respect to any Transfer
by Oikos to a member of Oikos’ Group, unless the terms of such Transfer provide to the contrary,
Oikos (or Oikos’ designee who shall initially be Steven K. Aronoff) (i) shall retain all rights
under this Agreement to vote the shares of Common Stock or Preferred Stock so Transferred
(including, without limitation, to consent to the amendment to or waiver of any provision of this
Agreement and to designate directors and an Observer pursuant to Section 2, and (ii) may amend or
revoke the rights granted to such member of its Group pursuant to such Transfer at any time by
prior written notice to the affected member of the Group, to the Corporation and to the other Right
Holders. In the event of the dissolution of Oikos prior to any designation pursuant to Section
12.3, the rights detailed in clause (i) above shall be automatically transferred to the members of
Oikos’ Group, to be exercised as specified in Section 12.3. In connection with Transfers by Oikos
to members of Oikos’ Group pursuant to Section 5.2(b), only those Transferees designated by Oikos
(or Oikos’ designee pursuant to Section 12.3) in writing to the Corporation shall obtain the rights
set forth in Section 3.1 and such rights may be amended or revoked at any time by Oikos or such
designee by written notice to the affected Transferee and the Corporation.

          12.3 Oikos shall have the right to appoint a designee to exercise the Oikos rights hereunder
to vote any shares of Common Stock or Preferred Stock held by it or any member of its Group, to
designate directors of the Corporation and an Observer pursuant to Section 2 and to appoint future
designees pursuant to this Section 12.3. Oikos shall have the power to revoke any such designation
and to appoint a substitute designee pursuant to this Section 12.3 by delivery of written notice to
the then-current designee, the Corporation and each

19

 

other Right Holder. The rights of a designee hereunder shall survive the dissolution of
Oikos. In the event of the dissolution of Oikos prior to making any such designation, the rights
of Oikos to vote any Equity Securities pursuant to this Agreement and to appoint directors and an
Observer pursuant to Section 2 shall be exercised by the holders of a majority of Equity Securities
then held by members of Oikos’ Group. In the event of the dissolution of Oikos, the then designee
of Oikos, if any, shall have full power of substitution and resubstitution.

     13. Severability. Any provision of this Agreement that is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions hereof, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.

     14. Counterparts, Facsimiles. This Agreement may be executed in any number of
counterparts (including, in the case of the Purchasers, Purchaser Signature Pages (as defined in
the Series F Purchase Agreement)), each such counterpart shall be deemed to be an original
instrument, and all such counterparts shall together constitute but one agreement. Signature pages
to this Agreement may be delivered by facsimile and shall have the same force and effect as an
original.

     15. Certain Matters of Construction. A reference to a Section shall mean a Section in
this Agreement unless otherwise expressly stated. The titles and headings herein are for reference
purposes only and shall not in any manner limit the construction of this Agreement which shall be
considered as a whole. The words “include,” “includes” and “including” when used herein shall be
deemed in each case to be followed by the words “without limitation.” Whenever the context may
require, any pronouns used herein shall include the corresponding masculine, feminine or neuter
forms, and the singular form of names and pronouns shall include the plural and vice-versa. The
headings contained in this Agreement are for reference purposes only and shall not in any way
affect the meaning or interpretation of this Agreement.

     16. Governing Law; Consent to Jurisdiction and Venue; Waiver of Jury Trial. This
Agreement shall be governed by, and construed and enforced in accordance with, the substantive laws
of The Commonwealth of Massachusetts without regard to its principles of conflicts of laws. Any
litigation arising from or relating to this Agreement shall be filed and prosecuted in any court of
competent subject matter jurisdiction located in the state of New York. The parties stipulate to
the jurisdiction, convenience and efficiency of proceeding in such courts and hereby waive and
covenant not to assert any objections to proceeding in such courts based on any grounds other than
a lack of subject matter jurisdiction.

[Remainder of this page intentionally left blank.]

20

 

Stockholders Agreement

     IN WITNESS WHEREOF, the parties have executed this Agreement under seal as of the day and year
first above written.

	 	 	 	 	 
	 	

Triad Pharmaceuticals, Inc.

 	 
	 	By:  	/s/William W. Bachovchin
 	 
	 	 	Name:  	William W. Bachovchin 	 
	 	 	Title:  	President 	 
	 

 

 

Stockholders Agreement

     IN WITNESS WHEREOF, the parties have executed this Agreement under seal as of the day and year
first above written.

	 	 	 	 	 
	 	 	 
	 	                                                     /s/William W. Bachovchin
 	 
	 	William W. Bachovchin, in his personal 	 
	 	capacity 	 
	 

 

 

Stockholders Agreement

     IN WITNESS WHEREOF, the parties have executed this Agreement under seal as of the day and year
first above written.

	 	 	 	 	 
	 	Stone Life Sciences Holdings, Ltd.

 	 
	 	By:  	/s/Gerd Petrik
 	 
	 	 	Name:  	Gerd Petrik                           	 
	 	 	Title:  	President of Stone Management, Inc.	 
	 	 	 	General Partner 	 
	 

 

 

Stockholders Agreement

     IN WITNESS WHEREOF, the parties have executed this Agreement under seal as of the day and year
first above written.

	 	 	 	 	 
	 	Tufts University

 	 
	 	By:  	/s/Steven S. Manos
 	 
	 	 	Name:  	Steven S. Manos       	 
	 	 	Title:  	Executive Vice President 	 
	 

 

 

Stockholders Agreement

     IN WITNESS WHEREOF, the parties have executed this Agreement under seal as of the day and year
first above written.

	 	 	 	 	 
	 	 	 
	 	     /s/Christopher Kiritsy
 	 
	 	Christopher Kiritsy 	 
	 	 	 
	 

 

 

Stockholders Agreement

     IN WITNESS WHEREOF, the parties have executed this Agreement under seal as of the day and year
first above written.

	 	 	 	 	 
	 	2004 Oikos Investment Partners, LP

 	 
	 	By:  	/s/Steven K. Aronoff
 	 
	 	 	Name:  	Steven K. Aronoff 	 
	 	 	 	Manager of 500 East General	 
	 	 	 	Partners LLC, General Partner 	 
	 

 

 

     IN WITNESS WHEREOF, the parties have executed this Agreement under seal as of the day and year
first above written.

	 	 	 	 	 
	 	Kos Pharmaceuticals, Inc.

 	 
	 	By:  	/s/Adrian Adams
 	 
	 	 	Name:  	Adrian Adams 	 
	 	 	Title:  	President and CEO

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