Document:

exv10wx58y

Exhibit # 10(58)

333 S. Wabash Ave.

Chicago, IL 60604

March 28, 2011

Rosemary Quinn

Senior Vice President, General Counsel and Secretary

Re: Change in Control Severance and Retention Agreement

Dear Rosemary:

     The Compensation Committee (the “Committee”) of our Board of Directors (the
“Board”) believes that it is in the best interests of CNA Surety Corporation
(“Surety”) and its stockholders to take appropriate steps to allay any concerns you may
have about your future employment opportunities with Surety and its “Affiliates” (as defined in
Section 2(c)). Surety and its Affiliates are collectively referred to in this Agreement as the
“Company.” As a result, the Committee has decided to offer to you the special package of
benefits described below. Please sign the extra copy of this Change in Control Severance and
Retention Agreement (this “Agreement”) which is enclosed and return it to me.

     1. TERM OF AGREEMENT.

          This Agreement is effective as of March 28, 2011 and will continue in effect in accordance
with its terms until the end of the Protection Period (as defined below), unless amended or
otherwise terminated by mutual agreement.

     2. TERMINATION BENEFITS.

          (a) Entitlement to Termination Benefits. If your employment with Surety or any
Affiliate is terminated without Cause (as defined below) or by you for Good Reason during the
Protection Period, you will receive the “Termination Benefits” described in this Section 2, subject
to the execution and non-revocation of a general release of claims in accordance with Section 7 of
this Agreement.

          The Termination Benefits will not be payable if your employment is terminated for Cause, if
you voluntarily terminate your employment without Good Reason, or if your employment is terminated
by reason of your Disability or your death. In addition, the Termination Benefits will not be
payable if your employment is terminated by you or the Company for any or no reason following the
Protection Period. For the avoidance of doubt, upon a termination of employment for any reason,
you will be entitled to any accrued but unpaid amounts, to the extent required by applicable law.

 

 

          (b) Protection Period. For purposes of this Agreement, the term “Protection Period”
shall mean the period beginning with the date of this Agreement and ending on the later of (i) 18
months after a Change in Control; provided, that such Change in Control occurs within 18 months
after the date of this Agreement or (ii) 18 months after the date of this Agreement; provided,
however, that if the occurrence of any circumstances that you, in good faith, believe constitutes
Good Reason occurs before the expiration of the period described in (i) or (ii) above and you
provide the Company with a Notice of Termination within the time frame specified in Section 5(b),
the Protection Period shall be extended until the earlier of (x) one day after the date your
employment with Surety or an Affiliate is terminated for any reason, or (y) 60 days after the later
of (I) the expiration of the 30 day cure period described in Section 5(c) or (II) the date on which
the dispute involving your Notice of Termination is finally determined, either by mutual written
agreement of the parties or pursuant to the alternative dispute resolution provisions of Section
19.

          (c) “Affiliate” Defined. For purposes of this Agreement, the term “Affiliate” shall
mean (i) any member of a “controlled group of corporations” (within the meaning of Section 414(b)
of the Internal Revenue Code of 1986 (the “Code”) as modified by Section 415(h) of the
Code) that includes Surety as a member of the group; and (ii) any member of a group of trades or
businesses under common control (within the meaning of Section 414(c) of the Code as modified by
Section 415(h) of the Code) that includes Surety as a member of the group.

          (d) Termination Severance Payment. As part of the Termination Benefits, you will
receive a “Termination Severance Payment.” The “Termination Severance Payment” is equal to the
aggregate of the following amounts: (i) the sum of (A) your Annual Base Salary (as defined below)
and (B) the target annual cash bonus set under the Company’s bonus or incentive compensation plan
for the fiscal year during which your termination of employment occurs; (ii) the product of (x) the
target annual cash bonus under the Company’s bonus or incentive compensation plan for the fiscal
year during which your termination of employment occurs and (y) a fraction, the numerator of which
is the number of days in the current fiscal year through the date of termination, and the
denominator of which is 365 and (iii) any accrued holiday or vacation pay. The Termination
Severance Payment shall be made in equal monthly installments over the course of 12 months,
commencing on the 60th day following the date of your Separation from Service (as
defined in Section 3(c) below).

          Annual Base Salary is defined as your annual base salary at the rate in effect immediately
prior to the termination of employment, or if higher, your annual base salary at the rate in effect
six months prior to the termination of employment.

          (e) Welfare Benefits. In lieu of providing continued participation in the Company’s
benefit plans, programs and policies, as part of the Termination Benefits, the Company shall pay
you an amount equal to the product of (i) the per month premium chargeable pursuant to the
Consolidated Omnibus Budget Reconciliation Act for medical and dental coverage as in effect on the
date of termination, and (ii) 12, to be paid on the 60th day following the date of your
Separation from Service.

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          (f) Outplacement Services and Legal Fees. As part of the Termination Benefits, the
Company shall pay you the sum of $40,000 on the 60th day following the date of your
Separation from Service, the intent of which is for outplacement services and legal fees you incur
due to your termination of employment.

          (g) Long-Term Cash Incentive Compensation. As part of the Termination Benefits, after
the Compensation Committee of the Company’s Board of Directors reviews actual performance results
for the entire calendar year in which your termination of employment occurs and determines your
achievement of performance target levels, the Company shall pay you within 30 days of such review
and determination (but in no event later than March 15th of the calendar year following
the year in which your termination of employment occurs), any long-term cash incentive compensation
award which otherwise would vest and become payable for the year of your termination, prorated
based on the number of days elapsed during the year through the date of termination.

          (h) Transfers to Affiliates. In order to receive Termination Benefits, you must
terminate employment with the “Company,” which, as noted above, refers collectively to Surety and
all of its Affiliates. As a result, a transfer to an Affiliate will not be treated as a
termination of employment for purposes of this Agreement. Such a transfer may, however, in certain
circumstances, provide you with Good Reason to terminate employment pursuant to Section 5. For
purposes of determining whether a transfer gives rise to Good Reason for your termination of
employment, a transfer shall be treated the same as a reassignment within Surety. In the event
that your employment is transferred to an Affiliate and you become entitled to Termination Benefits
by reason of your termination without Cause by the Affiliate, or your termination for Good Reason,
then the employing Affiliate shall be liable for the Termination Benefits.

          (i) Interaction With Other Severance or Retention Agreements or Arrangements. The
Termination Benefits provided under this Section 2 shall be reduced by any amounts you are eligible
to receive from the Company in the event of a termination of employment or separation from service
under any existing agreements, plans or arrangements. Additionally, if you are entitled to receive
from the Company any payments or benefits pursuant to the requirements of the Worker Adjustment and
Retraining Notification Act and/or any similar federal, state or local law (collectively referred
to as “WARN laws”) then the amount of Termination Benefits payable under this Agreement
shall be reduced by any and all such payments made by the Company. If you are entitled to receive
notice of termination from the Company pursuant to WARN laws, then the Termination Benefits payable
under this Agreement shall be reduced by an amount equal to the amount of salary paid during the
notice period provided by the Company. Notwithstanding anything in the foregoing to the contrary,
Section 2(e) shall supersede all previous agreements or discussions regarding continuation of
health and welfare benefits.

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     3. COMPLIANCE WITH SECTION 409A; REQUIRED DELAY IN PAYMENTS.

          (a) Delay in Payments. Prior to making any payments pursuant to this Agreement, the
Committee will determine, on the basis of any regulations, rulings or other
available guidance and the advice of counsel, whether the short-term deferral exception, the
separation pay exception or any other exception to the requirements of Section 409A of the Code
(together with Department of Treasury regulations and other official guidance issued thereunder,
“Section 409A”) is available. If the Committee concludes that no exception is available,
no payments will be made prior to your Separation from Service (as defined below). In addition, if
you are a “Specified Employee” (as defined below), and the Committee concludes that no exception to
the requirements of Section 409A is available, no payment that constitutes non-exempt “nonqualified
deferred compensation” (within the meaning of Section 409A) shall be made to you prior to the first
business day following the date which is six months after your Separation from Service. Any
amounts that would have been paid during the six months following your Separation from Service will
be paid on the first business day following the expiration of the six month period, without
interest thereon, or if earlier, the date of your death. The provisions of this paragraph apply to
all amounts due pursuant to this Agreement, other than amounts that do not constitute a deferral of
compensation within the meaning of Treas. Reg. §1.409A-1(b) or other amounts or benefits that are
not subject to the requirements of Section 409A.

          (b) 409A Compliance Strategy. All payments of “nonqualified deferred compensation”
(within the meaning of Section 409A) are intended to comply with or be exempt from the requirements
of Section 409A, and shall be interpreted in accordance therewith. No party individually, or in
combination with any other, may accelerate any deferred payment deemed non-exempt “nonqualified
deferred compensation,” except in compliance with Section 409A, and no such amount shall be paid
prior to the earliest date on which it is permitted to be paid under Section 409A. To the extent
allowed under Section 409A, the Termination Benefits provided under Section 2 of this Agreement
payable upon a termination of employment shall qualify as “involuntary severance” under Section
409A because such amount does not exceed the lesser of (i) two hundred percent (200%) of your
annualized compensation from the Company for the calendar year immediately preceding the calendar
year during which the termination of employment occurs, or (ii) two hundred percent (200%) of the
annual limitation amount under Section 401(a)(17) of the Code for the calendar year during which
the termination of employment occurs. Further, to the extent allowed under Section 409A, the
Termination Benefits provided under Section 2 of this Agreement made within two and one-half months
(2 1/2 months) following the end of the later of the calendar year or the Company’s fiscal year in
which your right to such payment vests (i.e., is not subject to a substantial risk of forfeiture
for purposes of Section 409A) shall qualify under the “short-term deferral exemption” under Section
409A.

          (c) Separation from Service Defined. For purposes of this Agreement, the term
“Separation from Service” means (1) the termination of your employment with the Company due to
death, retirement or other reasons, or (2) a permanent reduction in the level of bona fide services
you provide to the Company to an amount that is no more than 20% of the average level of bona fide
services you provided to the Company in the immediately preceding 36 months (or the entire time
period during which you provided services to the Company if you have been providing such services
for less than 36 months), with the level of bona fide service calculated in accordance with Treas.
Reg. § 1.409A-1(h)(1)(ii). Your employment relationship is treated as continuing while you are on
military leave, sick leave, or other bona fide leave of absence (if the period of such leave does
not exceed six months, or if longer, so long as your right to reemployment with the Company is
provided either by statute or contract).

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If your period of leave exceeds six months and your right to reemployment is not provided either by
statute or by contract, the employment relationship is deemed to terminate on the first day
immediately following the expiration of such six month period. Whether a termination of employment
has occurred will be determined based on all of the facts and circumstances and in accordance with
regulations issued by the United States Treasury Department pursuant to Section 409A if the Company
concludes that Section 409A is applicable.

          (d) Specified Employee Defined. For purposes of this Agreement, the term “Specified
Employee” means certain officers and highly compensated employees of the Company as defined in
Treas. Reg. § 1.409A-1(i), and as determined in accordance with such procedures as may be adopted
from time to time by the Company.

          (e) Installments. Your right to receive any payments under this Agreement shall be
treated as a right to receive a series of separate payments and, accordingly, each such payment
shall at all times be considered a separate and distinct payment as permitted under Treasury
Regulation Section 1.409A-2(b)(2)(iii).

          (f) Miscellaneous Payment Provisions. If payment is not made, in whole or in part,
due to a dispute between you and the Company, the payments shall be made in accordance with Treas.
Reg. §1.409A-3(g), as applicable.

          (g) Ban on Acceleration or Deferral. Under no circumstances may the time or schedule
of any payment made or benefit provided pursuant to this Agreement be accelerated or subject to a
further deferral except as otherwise excepted, permitted or required pursuant to regulations and
other guidance issued pursuant to Section 409A.

          (h) No Elections. You do not have any right to make any election regarding the time
or form of any payment due under this Agreement.

          (i) Compliant Operation and Interpretation. This Agreement shall be operated in
compliance with Section 409A or an exception thereto and each provision of this Agreement shall be
interpreted, to the extent possible, to comply with Section 409A or to qualify for an exception
thereto.

     4. CHANGE IN CONTROL DEFINED.

          “Change in Control” means and includes each of the following:

          (a) A transaction or series of transactions (other than an offering of stock to the general
public through a registration statement filed with the Securities and Exchange Commission) whereby
any “person” or related “group” of “persons” (as such terms are used in Sections 13(d) and 14(d)(2)
of the Exchange Act) (other than Surety, an employee benefit plan maintained by Surety or any of
its Affiliates, or a “person” that, prior to such transaction, directly or indirectly controls, is
controlled by, or is under common control with, Surety) directly or indirectly acquires beneficial
ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities of Surety
possessing more than 51% of the total combined voting power of Surety’s securities outstanding
immediately after such acquisition; or

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          (b) A transaction or series of transactions whereby any Affiliate or any “person” or related
“group” of “persons” (as such terms are used in Section 13(d) and 14(d)(2) of the Exchange Act)
directly or indirectly involving an Affiliate directly or indirectly acquires beneficial ownership
(within the meaning of Rule 13d-3 under the Exchange Act) of securities of Surety possessing 90% or
more of the total combined voting power of Surety’s securities outstanding immediately after such
acquisition; or

          (c) During any period of two consecutive years, individuals who, at the beginning of such
period, constitute the Board together with any new director(s) (other than a director designated by
a person who shall have entered into an agreement with Surety to effect a transaction described in
paragraphs (a) or (d) of this Section 4) whose election by the Board or nomination for election by
Surety’s stockholders was approved by a vote of a majority of the directors then still in office
who either were directors at the beginning of the two-year period or whose election or nomination
for election was previously so approved, cease for any reason to constitute one-third thereof; or

          (d) The consummation by Surety (whether directly involving Surety or indirectly involving
Surety through one or more intermediaries) of (x) a merger, consolidation, reorganization, or
business combination or (y) a sale or other disposition of all or substantially all of Surety’s
assets in any single transaction or series of related transactions or (z) the acquisition of assets
or stock of another entity, in each case other than a transaction:

               (i) Which results in Surety’s voting securities outstanding immediately before the transaction
continuing to represent (either by remaining outstanding or by being converted into voting
securities of Surety or the person that, as a result of the transaction, controls, directly or
indirectly, Surety or owns, directly or indirectly, all or substantially all of Surety’s assets or
otherwise succeeds to the business of Surety (Surety or such person, the “Successor
Entity”)) directly or indirectly, at least a majority of the combined voting power of the
Successor Entity’s outstanding voting securities immediately after the transaction, and

               (ii) After which no person or group beneficially owns voting securities representing 50% or
more of the combined voting power of the Successor Entity; provided, however, that no person or
group shall be treated for purposes of this Section 4(d)(ii) as beneficially owning 50% or more of
the combined voting power of the Successor Entity solely as a result of the voting power held in
Surety prior to the consummation of the transaction; or

          (e) Surety’s stockholders approve a liquidation or dissolution of Surety.

          The Committee shall (and in the event the members of the Committee as of the date of this
Agreement no longer serve on the Committee, the independent directors serving on the Committee that
were not nominated to serve on the Board by CNA Financial Corporation (“CNA Financial”)
shall) determine whether a Change in Control of Surety has occurred under the above definition, and
the date of the occurrence of such Change in Control and any incidental matters relating thereto.

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     5. GOOD REASON DEFINED.

          (a) Definition of Good Reason. For purposes of this Agreement, “Good Reason” means a
termination of your employment with the Company following the occurrence of one or more of the
following circumstances (without your prior express written consent):

               (i) a material diminution in your target total annual compensation (including base salary,
target annual cash incentive and target value of long-term cash incentive);

               (ii) a material diminution of your authority, duties or responsibilities; provided, however,
that following a Change in Control, a reduction in your duties and/or responsibilities by virtue of
the fact that the Company has become part of a larger organization shall not by itself constitute
grounds for “Good Reason” as long as you retain substantially the same duties and responsibilities
of a division, subsidiary or business unit that constitutes substantially the business of the
Company following the Change in Control;

               (iii) a material change in the geographic location of your principal office (defined as more
than 50 miles from your principal place of employment immediately preceding such changes); or

               (iv) any other action or inaction that constitutes a material breach by the Company of this
Agreement.

          (b) Notice of Termination. If you elect to terminate your employment for Good Reason,
you must provide the Company with a Notice of Termination (in compliance with Section 10) which
sets forth the existence of the Good Reason condition described in paragraphs (i) through (iv)
above within 90 days of the initial existence of the condition; further, such Notice of Termination
shall set forth the proposed date of termination of employment and, except as provided in Section
10(e), your date of termination may not be later than the earlier of (i) 24 months from the initial
existence of the condition or (ii) the expiration of the Protection Period.

          (c) Opportunity to Cure. Notwithstanding anything to the contrary, the existence of
one of the circumstances described in paragraphs (i) through (iv) above will not constitute Good
Reason if, within 30 days after you give the Company Notice of Termination which sets forth the
existence of the Good Reason condition described in paragraphs (i) through (iv), the Company has
fully corrected such condition.

     6. CAUSE DEFINED.

          For purposes of this Agreement, “Cause” shall mean engaging in or committing: (i) any act
which would constitute a felony or other act involving fraud, dishonesty, moral turpitude, unlawful
conduct or breach of fiduciary duty; (ii) a substantial breach of any material provision of this
Agreement; (iii) willful or reckless material misconduct in the performance of your duties; or (iv)
the habitual neglect of duties; provided, however, that, for purposes of clauses (iii) and (iv),
Cause shall not include any one or more of the following: bad judgment, negligence or any act or
omission believed by you in good faith to have been in or not opposed to the interest of the
Company or its stockholders other than CNA Financial (without any intent by you to gain, directly
or indirectly, a profit to which you were not legally entitled). If you agree to resign from your
employment with the Company in lieu of being terminated for Cause, you may be deemed to have been
terminated for Cause for purposes of this Agreement.

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     7. RELEASE AGREEMENT.

          In order to receive any Termination Benefits, other than accrued but unpaid amounts that you
are entitled to pursuant to applicable law, you must execute a release of any known or unknown
claims that you may have against the Company within 45 days following your termination of
employment. The release shall be in substantially the form attached hereto in Exhibit I; provided,
however, that the Company reserves the right to modify the form of such release at any time,
without your consent, to ensure that such release complies with any changes to applicable
statutory, regulatory or judicial requirements. If you are not yet 40 years old on the date on
which the Release Agreement must be signed, you will be given 21 days to consider whether to sign
the Release Agreement. If you are 40 or over, in accordance with federal law, you will be given 21
or 45 days, depending on the circumstances, to consider whether to sign the Release Agreement. In
any event, you may revoke the Release Agreement during the seven day period following your delivery
of a signed Release Agreement. These rules will be described in greater detail at the appropriate
time. If you fail to sign the Release Agreement within the prescribed time period, or if you
revoke the Release Agreement, you will not be entitled to receive any Termination Benefits. An
executable version of the Release Agreement to which this Section 7 refers will be provided to you
on your termination date and in no event later than ten days following your termination date.

     8. COVENANTS.

          (a) Confidential Information. You agree that while you are employed by Surety, and at
all times thereafter, you shall not reveal or utilize “confidential information” (as that term is
defined below) and learned during the course of or as a result of your employment which relates to:
(a) Surety and/or any other business or entity in which Surety during the course of your employment
has directly or indirectly held a greater than a 10% equity interest whether voting or non-voting;
and (b) Surety’s customers, employees, agents, brokers and vendors. You acknowledge that all such
confidential information is commercially valuable and is the property of Surety. Upon the
termination of your employment, you shall return all confidential information and any copies
thereof to Surety, whether it exists in written, electronic, computerized or other form. After
termination of your employment with Surety, you shall not, without the prior written consent of
Surety or as may otherwise be required by law or legal process, communicate or divulge any such
confidential information to anyone other than Surety and those designated by it.

          For purposes of this Agreement “confidential information” includes all information, knowledge
or data (whether or not a trade secret or protected by laws pertaining to intellectual property)
not generally known outside the Company (unless as a result of a breach of any of the obligations
imposed by this Agreement) concerning the business operations, performance and other information of
the Company. Such information may without limitation include information relating to data,
finances, marketing, pricing, profit margins, underwriting, claims, loss control, marketing and
business plans, renewals, software, processing, vendors, administrators, customers or prospective
customers, products, brokers, agents and employees.

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          (b) Non-Disparagement. While employed by Surety and after termination of your
employment with Surety, you agree to refrain from any disparagement, criticism,
defamation, slander of Surety and its employees, directors or principal stockholders or
tortious interference with the contracts and relationships of Surety. The Company agrees that it
shall not, and it shall instruct its officers and members of its Board to not, disparage,
criticize, defame or slander you, either publicly or privately. Nothing in this Section 8(b) shall
have application to any evidence or testimony required by any court, arbitrator or government
agency.

          (c) Covenant Not to Compete. If you terminate employment with Surety or if your
employment is terminated by Surety and then you compete with Surety, Surety may suffer irreparable
harm and damage. Accordingly, you hereby agree that to protect the legitimate business interests
of Surety, while you are employed by Surety, and for a period of 12 months following the date of
your termination of employment with Surety, you will not, directly or indirectly, without the prior
written approval of the Surety’s Board, be directly or indirectly employed as an owner, partner,
employee, consultant or in any other capacity by, and you will not become a stockholder in, a
surety business in the United States and Canada (a “Competitor”); provided, however, that
such prohibited activity shall not include the ownership of less than 5% of the outstanding
securities of any publicly traded corporation (determined by vote or value) regardless of the
business of such corporation; and provided further that such prohibited activity shall be expanded
to include a surety business outside the United States and Canada should, during the term of this
Agreement, Surety do “substantial” business outside the United States and Canada. Upon your written
request, the Board will determine in its sole discretion whether a business or other entity
constitutes a “Competitor” or whether Surety is doing “substantial” business outside the United
States and Canada; provided that the Board may require you to provide such information as the Board
determines to be necessary to make such determination; and further provided that the current and
continuing effectiveness of such determination may be conditioned on the accuracy of such
information, and on such other factors as the Board may determine. If any restriction set forth in
this Section 8(c) is found by any court of competent jurisdiction to be unenforceable because it
extends for too long a period of time or over too great a range of activities or over too broad a
geographic area, it shall be interpreted to extend only over the maximum period of time, range of
activities or geographic area as to which it may be enforceable. Notwithstanding anything
contained in this Agreement to the contrary, the restriction set forth in this Section 8(c) shall
terminate on the later of (i) the expiration of the Protection Period or (ii) the expiration of the
12 month period following the date of your termination of employment with Surety during the
Protection Period.

          (d) Non-Solicitation Covenants. You agree that while you are employed by Surety, and
for a period of 12 months following your termination of employment with Surety, you will not
employ, offer to employ, engage as a consultant, or form an association with any person who is
then, or who during the preceding one year was, an employee of Surety or any successor or purchaser
of any portion thereof, nor will you assist any other person or entity in soliciting for employment
or consultation any person who is then, or who during the preceding one year was, an employee
Surety or any subsidiary of Surety or any successor or purchaser of any portion thereof.

          (e) Non-Interference. You agree that while you are employed by Surety, and for a
period of 12 months following your termination of employment with Surety, you will not disturb or
attempt to disturb or cause anyone else to disturb any business relationship or
agreement between either Surety or any successor or purchaser of any portion thereof, and any
other person or entity.

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          (f) Effect of Covenants. You acknowledge that: (a) as a senior executive of Surety,
you have and will have access to confidential information concerning the entire range of businesses
in which Surety is and will be engaged; (b) that Surety’s businesses are conducted throughout the
United States and Canada; and (c) that Surety’s confidential information, if disclosed or utilized
without its authorization would irreparably harm Surety in: (i) obtaining renewals of existing
customers; (ii) selling new business; (iii) maintaining and establishing existing and new
relationships with employees, agents, brokers, vendors; and (iv) other ways arising out of the
conduct of the businesses in which Surety is engaged.

          To protect such information and such existing and prospective relationships, and for other
significant business reasons, you agree that it is reasonable and necessary that: (a) the scope of
this Agreement be United States and Canada; (b) its breadth include the entire surety industry,
except as otherwise provided in this Section 8; and (c) the duration of the restrictions upon you
be as indicated therein.

          You acknowledge that Surety’s customer, employee and business relationships are long-standing,
indeed, near permanent and therefore are of great value to Surety. You agree that neither any of
the provisions in this Agreement nor Surety’s enforcement of it alters or will alter your ability
to earn a livelihood for yourself and your family and further that both are reasonably necessary to
protect Surety’s legitimate business and property interests and relationships, especially those
which you were responsible for developing or maintaining.

          (g) Reformation of Covenants. The parties agree that the scope of any provision of
this Section may be modified by a judge in any proceeding to enforce this Agreement, so that such
provision can be enforced to the maximum extent permitted by law. If any court of competent
jurisdiction determines that any portion of this Section is invalid or unenforceable, the remainder
of this Section will not thereby be affected and will be given full effect, without regard to
invalid portions.

          (h) Breach of Covenants. If you breach the covenants contained in Section 8(a), (b)
or (d), you agree that in addition to (and without limiting) any other remedy or right Surety may
have Surety will have the right to an injunction against you issued by a court of competent
jurisdiction enjoining such breach without being required to post a bond and permanent injunctive
relief without the necessity of proving actual damage. If you breach any of the covenants
contained in this Section 8, then you will forfeit any and all rights to any the Termination
Benefits under Section 2 not yet paid or payable, to compensate Surety for injury by reason of such
breach and Surety shall be relieved of any obligation to pay any such unpaid Termination Benefits.
For avoidance of doubt, forfeiture of any Termination Benefits under Section 2, which are not yet
paid or payable, shall be the sole remedy available for breach of the covenant contained in Section
8(c). You consent to the filing of any such suit against you in the state or federal courts located
in Cook County, Illinois. You further agree that in the event of such suit or any other action
arising out of or relating to this Agreement, the parties shall be bound by and the court shall
apply the internal laws of the State of Illinois irrespective of rules regarding choice of law or
conflicts of laws. You and Surety agree that the foregoing remedies
are reasonable and necessary for the protection of Surety’s goodwill and recognize that in the
event of a breach of the foregoing restrictions, it will be impossible to ascertain or estimate the
entire or exact cost, damage or injury that Surety may sustain by reason of such breach.

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          (i) Survival of Provisions. The provisions of this Section 8 shall survive the
termination or expiration of the Protection Period or your employment with Surety and shall be
fully enforceable thereafter.

     9. PARACHUTE PAYMENTS.

          (a) Generally. Notwithstanding anything contained in this Agreement to the contrary,
in the event that the benefits provided by this Agreement, together with all other payments and the
value of any benefits received or to be received by you (the “Payments”), constitute
“parachute payments” (within the meaning of Section 280G of the Code), and, but for this Section 9,
would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”),
then the Payments shall be made to you either (i) in full or (ii) as to such lesser amount as which
would result in no portion of the Payments being subject to the Excise Tax, whichever of the
foregoing amounts, taking into account the applicable federal, state and local income taxes and the
Excise Tax, results in the receipt by you on an after-tax basis, of the greatest amount of
benefits, notwithstanding that all or some portion of the Payments may be subject to the Excise
Tax. Surety shall reduce or eliminate the Payments in a manner consistent with the requirements of
Section 409A and where two economically equivalent amounts are subject to reduction but payable at
different times, such amounts shall be reduced on a pro rata basis but not below zero. Any notice
given by you pursuant to the preceding sentence shall take precedence over the provisions of any
other plan, arrangement or agreement governing your rights and entitlements to any benefits or
compensation.

          (b) Determination. Unless Surety and you otherwise agree in writing, an initial
determination as to whether the Payments shall be reduced and the amount of such reduction shall be
made, at Surety’s expense, by an accounting firm that Surety selects (the “Accounting
Firm”). The Accounting Firm shall provide its determination (the “Determination”),
together with detailed supporting calculations and documentation, to Surety and you within 20 days
of the date of termination) if applicable, or such other time as requested by Surety or by you
(provided you reasonably believe that any of the Payments may be subject to the Excise Tax). Within
10 days of the delivery of the Determination to you, you shall have the right to dispute the
Determination (the “Dispute”). If there is no Dispute, the Determination shall be binding,
final and conclusive upon Surety and you.

          (c) Effect of Repeal or Inapplicability. In the event that the provisions of Sections
280G and 4999 of the Code are repealed without succession, this Section shall be of no further
force or effect. Moreover, if the provisions of Sections 280G and 4999 of the Code do not apply to
impose the excise tax to payments under this Agreement, then the provisions of this Section shall
not apply.

11

 

     10. TERMINATION NOTICE AND PROCEDURE.

          Any termination by the Company or you of your employment shall be communicated by written
Notice of Termination to you if such Notice of Termination is delivered by the Company and to the
Company if such Notice of Termination is delivered by you, all in accordance with the following
procedures:

          (a) The Notice of Termination shall indicate the specific termination provision in this
Agreement relied upon and shall set forth in reasonable detail the facts and circumstances alleged
to provide a basis for termination.

          (b) Any Notice of Termination by the Company shall be in writing signed by the President of
the Company or a member of the Board who is not a Company employee, specifying in detail the basis
for such termination.

          (c) If the Company shall furnish a Notice of Termination for Cause and you in good faith
notify the Company that a dispute exists concerning such termination within the 15 day period
following your receipt of such notice, you may elect to continue your employment during such
dispute. If it is thereafter determined that Cause did exist, the date of your termination shall
be the earlier of (i) the date on which the dispute is finally determined, either by mutual written
agreement of the parties or pursuant to the alternative dispute resolution provisions of Section 19
or (ii) the date of your death. If it is thereafter determined that Cause did not exist, your
employment shall continue as if the Company had not delivered its Notice of Termination and there
shall be no termination arising out of such notice.

          (d) If the Company shall furnish a Notice of Termination by reason of Disability and you
in good faith notify the Company that a dispute exists concerning such termination within the
15-day period following your receipt of such notice, you may elect to continue your employment
during such dispute. The dispute relating to the existence of a Disability shall be resolved by
the opinion of the licensed physician selected by the Company; provided, however, that if you do
not accept the opinion of the licensed physician selected by the Company, the dispute shall be
resolved by the opinion of a licensed physician who shall be selected by you; provided further,
however, that if the Company does not accept the opinion of the licensed physician selected by you,
the dispute shall be finally resolved by the opinion of a licensed physician selected by the
licensed physicians selected by the Company and you, respectively. If it is thereafter determined
that a Disability did exist, the date of your termination shall be the earlier of (i) the date on
which the dispute is resolved or (ii) the date of your death. If it is thereafter determined that
a Disability did not exist, your employment shall continue as if the Company had not delivered its
Notice of Termination and there shall be no termination date arising out of such notice. For
purposes of this Agreement, “Disability” shall mean your inability to perform your customary duties
for the Company due to a physical or mental condition that is considered to be of long-lasting or
indefinite duration.

          (e) If you in good faith furnish a Notice of Termination for Good Reason and the Company
notifies you that a dispute exists concerning the termination within the 15-day period following
the Company’s receipt of such notice, you may elect to continue your employment during such
dispute. If it is thereafter determined that Good Reason did exist, the date of your termination
shall be the earlier of (i) the date on which the dispute is finally determined, either by mutual
written agreement of the parties or pursuant to the alternative
dispute resolution provisions of Section 19, (ii) the date of your death, or (iii) the date of
your termination by reason of Disability, and your payments hereunder shall reflect events
occurring after you delivered Notice of Termination. If it is thereafter determined that Good
Reason did not exist, you may continue your employment after such determination as if you had not
delivered the Notice of Termination asserting Good Reason.

12

 

          (f) If you submit a Notice of Termination for Good Reason, the Company successfully contests
the grounds you set forth in such Notice of Termination and you voluntarily terminated your
employment prior to the resolution of the dispute for any reason other than Disability or death,
you will be deemed to have voluntarily terminated your employment other than for Good Reason. If
you elect to continue your employment pending resolution of the dispute regarding your Notice of
Termination and the Company terminates your employment for any reason other than by reason of
Disability or Cause pending resolution of such dispute, the Company will be deemed to have
terminated your employment other than by reason of Disability or Cause.

          (g) If the Company submits a Notice of Termination for Cause, and you successfully contest the
grounds set forth in such Notice of Termination, the Company will be deemed to have terminated you
other than by reason of Disability or Cause if you do not elect to continue employment pending
resolution of the dispute regarding your Notice of Termination.

     11. NO MITIGATION.

          The Termination Benefits and the other payments or benefits provided pursuant to this
Agreement will be payable without regard to whether you look for or obtain alternative employment
following your termination of employment with the Company.

     12. SUCCESSORS.

          Surety will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the Surety
to expressly assume and agree to perform this Agreement in the same manner and to the same extent
that Surety would be required to perform it if no such succession had taken place. Failure of
Surety to obtain such assumption and agreement prior to the effectiveness of any such succession
shall be a breach of this Agreement and shall entitle you to the compensation described in this
Agreement to which you would be entitled hereunder as if you terminate your employment for Good
Reason, except that for purposes of implementing the foregoing, the date on which any such
succession becomes effective shall be deemed your termination date. As used in this Agreement,
“Surety” shall have the meaning as hereinbefore defined and any successor to its business and/or
assets as aforesaid which assumes and agrees to perform this Agreement by operation of law or
otherwise.

     13. BINDING AGREEMENT; ASSIGNMENT.

          This Agreement shall inure to the benefit of and be enforceable by you and your personal or
legal representatives, executors, administrators, successors, heirs, distributees, devisees and
legatees. If you should die while any amount would still be payable to you hereunder had you
continued to live, all such amounts, unless otherwise provided herein, shall be
paid in accordance with the terms of this Agreement to your devisee, legatee or other designee
or, if there is no such designee, to your estate.

13

 

Except as provided in the preceding sentence, no
rights of any kind under this Agreement shall, without the written consent of Surety, be
transferable or assignable by you, your spouse, or any other person, or be subject to alienation,
encumbrance, garnishment, attachment, execution, or levy of any kind, voluntary or involuntary.

     14. NOTICE.

          For purposes of this Agreement, notices and all other communications provided for in this
Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed
by United States certified or registered mail, return receipt requested, postage prepaid, addressed
to the respective addresses set forth on the first page of this Agreement, provided that all
notices to Surety shall be directed to the attention of the President of Surety or a member of the
Board who is not an employee with a copy to the Secretary of Surety, or to such other address as
either party may have furnished to the other in writing in accordance herewith, except that notice
of change of address shall be effective only upon receipt.

     15. NON-EXCLUSIVITY OF RIGHTS.

          Subject to Section 2(i) of this Agreement, amounts which are vested benefits or which you are
otherwise entitled to receive under any plan, policy, practice or program of or any contract or
agreement with Surety or any of its Affiliates at or subsequent to the date of termination shall be
payable in accordance with such plan, policy, practice or program or contract or agreement except
as explicitly modified by this Agreement.

     16. MISCELLANEOUS.

          No provision of this Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing and signed by you and the President of Surety or
a member of the Board who is not an employee. No waiver by either party hereto at any time of any
breach by the other party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar
provisions or conditions at the same or at any prior or subsequent time. No agreements or
representations, oral or otherwise, express or implied, with respect to the subject matter hereof
have been made by either party which are not expressly set forth in this Agreement. Any payments
provided for hereunder shall be paid net of any applicable withholding required under federal,
state or local law. The obligations of Surety that arise prior to the expiration of this Agreement
shall survive the expiration of the term of this Agreement.

     17. VALIDITY.

          The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement, which shall remain in full
force and effect.

14

 

     18. COUNTERPARTS.

          This Agreement may be executed in several counterparts, each of which shall be deemed to be an
original but all of which together will constitute one and the same instrument.

     19. ALTERNATIVE DISPUTE RESOLUTION.

          (a) Mediation. Unless otherwise provided herein (such as in Sections 9 and 10(d)),
any and all disputes arising under or pertaining to this Agreement (“Disputes”) shall, if
not settled by negotiation, be subject to non-binding mediation before an independent mediator
mutually agreed upon by the parties. Notwithstanding the foregoing, both you and the Company may
seek preliminary judicial relief if such action is necessary to avoid irreparable damage during the
pendency of the proceedings described in this Section 19. Any demand for mediation shall be made
in writing and served upon the other party to the dispute, by certified mail, return receipt
requested, at the business address of Surety, or at your last known residence address,
respectively. The demand shall set forth with reasonable specificity the basis of the dispute and
the relief sought. The parties shall agree on a mediator within 10 days of receipt of the demand.
The mediation hearing will occur at a time and place convenient to the parties in Chicago,
Illinois, within 30 days of the date of selection or appointment of the mediator.

          (b) Arbitration. In the event the parties are unable to agree upon a mediator, or are
otherwise unable to resolve any Disputes through mediation, then the parties shall submit any
Disputes to binding arbitration before a single independent arbitrator in accordance with the
Commercial Arbitration Rules of the American Arbitration Association. The mediator shall not serve
as arbitrator. The arbitration hearing shall occur at a time and place convenient to the parties
in Chicago, Illinois, within 30 days of selection or appointment of the arbitrator. The arbitrator
shall issue written findings of fact and conclusions of law, and an award, within 15 days of the
date of the hearing unless the parties otherwise agree.

          (c) Damages. In case of breach of this Agreement, damages shall be limited to
contract damages. The arbitrator may award attorneys’ fees to the prevailing party and assess
costs against the non-prevailing party, only in accordance with Section 20 of this Agreement.
Issues of procedure, arbitrability, or confirmation of award shall be governed by the Federal
Arbitration Act, 9 U.S.C. §§ 1-16, except that court review of the arbitrator’s award shall be
that of an appellate court reviewing a decision of a trial judge sitting without a jury.

     20. EXPENSES AND INTEREST.

          If a good faith dispute shall arise with respect to the enforcement of your rights under this
Agreement or if any arbitration or legal proceeding shall be brought in good faith to enforce or
interpret any provision contained herein, or to recover damages for breach hereof, and you are the
prevailing party, you shall recover from the Company any reasonable attorneys’ fees and necessary
costs and disbursements incurred as a result of such dispute or legal proceeding, and prejudgment
interest on any money judgment obtained by you calculated at the rate of interest announced by
Citibank from time to time as its prime rate from the date that payments to you should have been
made under this Agreement. Any reimbursement of fees, costs and disbursements to which you are
entitled pursuant to this Section 20 shall be paid by the Company, if at all, on or before December
31 of the calendar year following the year in which you incurred the fees, costs and disbursements
for which you are entitled to reimbursement.

15

 

The fees, costs and disbursements reimbursed in one calendar year will not affect the fees, costs
and disbursements eligible for reimbursement by Surety in a different calendar year. The right to
reimbursement under this Section 20 is not subject to liquidation or exchange for any other
benefit. It is expressly provided that Surety shall in no event recover from you any attorneys’
fees, costs, disbursements or interest as a result of any dispute or legal proceeding involving
Surety and you.

     21. PAYMENT OBLIGATIONS ABSOLUTE.

          Surety’s obligation to pay you the compensation and to make the arrangements in accordance
with the provisions herein shall be absolute and unconditional and shall not be affected by any
circumstances; provided, however, that Surety may apply amounts payable under this Agreement to any
undisputed debts owed to Surety by you on your termination of employment. Prior to Surety applying
any amounts payable under this Agreement to any debts owed, Surety shall furnish notice to you
specifying the debts owed to Surety and you shall have 15 days following your receipt of such
notice, to notify Surety that a dispute exists concerning such debt. If Surety has paid you more
than the amount to which you are entitled under this Agreement, Surety shall have the right to
recover all or any part of such overpayment from you or from whomsoever has received such amount.

     22. ENTIRE AGREEMENT.

          This Agreement sets forth the entire agreement between you and Surety concerning the subject
matter discussed in this Agreement and supersedes all prior agreements, promises, covenants,
arrangements, communications, representations or warranties, whether written or oral, by any
officer, employee or representative of Surety concerning the subject matter of this Agreement. Any
prior agreements or understandings with respect to the subject matter set forth in the
aforementioned agreements are hereby terminated and canceled, other than as explicitly excepted
under this Section.

     23. STATUTORY REFERENCES.

          All references to sections of the Securities Exchange Act of 1934 or the Code shall be deemed
also to refer to any successor provisions to such sections. All references to sections of the
final regulations issued pursuant to Section 409A shall be deemed also to refer to any successor
provisions of such regulations or rulings or other guidance that clarify such regulations.

     24. DEFINITIONS.

          A number of terms have been defined throughout this Agreement. These defined terms are
identified by the capitalization of the first letter of each word or the first letter of each
substantive word of a phrase. Whenever these terms are capitalized they shall be given the defined
meaning.

16

 

     25. PARTIES.

          This Agreement is an agreement between you and Surety. In certain cases, though, obligations
imposed upon Surety may be satisfied by an Affiliate. Any payment made or action taken by an
Affiliate shall be considered to be a payment made or action taken by Surety for purposes of
determining whether Surety has satisfied its obligations under this Agreement.

     26. NO RIGHTS IN ANY PROPERTY OF COMPANY.

          The undertakings of Surety constitute merely the unsecured promise of Surety to make payments
as provided for herein. No property of Surety shall, by reason of this Agreement, be held in trust
for you, your spouse or any other person, and neither you nor your spouse or any other person shall
have, by reason of this Agreement, any rights, title or interest of any kind in any property of
Surety.

     27. NOT AN EMPLOYMENT AGREEMENT.

          Nothing in this Agreement shall be construed as an offer or commitment by Surety or any
Affiliate to continue your employment for any period of time.

     28. FACILITY OF PAYMENT.

          If Surety shall find that any person to whom any amount is payable hereunder is unable to care
for your affairs, any payment due (unless a prior claim therefore shall have been made by a duly
appointed guardian, committee, or other legal representative) may be paid to any person deemed by
Surety to have incurred expense for such person otherwise entitled to payment, in such manner and
proportions as Surety may determine.

     29. GOVERNING LAW.

          This Agreement shall be construed in accordance with and governed by the laws of the State of
Illinois. Venue for any cause of action arising under this Agreement shall be in Chicago,
Illinois, USA.

17

 

     30. AMENDMENTS.

          This Agreement may be amended at any time by a written agreement executed by Surety and you.
No amendment that will result in a violation of Section 409A of the Code, or any other provision of
applicable law, may be made to this Agreement and any such amendment shall be void ab initio.

          If you would like to accept the terms of this Change in Control Severance and Retention
Agreement, please sign and return the extra copy of this letter which is enclosed.

	 	 	 	 	 
	 	Sincerely,

 	 
	 	 	 	 
	 	 	Name:  	John Welch 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 
	 	 	ACCEPTANCE	 

     I hereby accept this Change in Control Severance and Retention Agreement and I agree to be
bound by all of the provisions noted above.

                                                                                

Rosemary Quinn

Date:

 

EXHIBIT I

[The language in this Release may change based on legal developments and evolving best practices;

this form is provided as an example of what will be included in the final Release document.]

RELEASE OF CLAIMS

     This Release of Claims (the “Release”) is given as required under the terms of the Change in
Control Severance and Retention Agreement between CNA Surety Corporation (the “Company”) and [NAME]
(the “Executive”) dated March __, 2011 (the “Agreement”).

          1. General Release of the Company. Executive understands that by agreeing to this
release he is agreeing not to sue, or otherwise file any claim against, the Company or any of its
members, employees or agents for any reason whatsoever based on anything that has occurred as of
the date this agreement is executed.

          a) Except as expressly provided in paragraph (b), on behalf of Executive and his heirs
and assigns, he hereby releases and forever discharges the “Releasees” hereunder, consisting
of the Company, and each of its members, employees, and agents, and all persons acting by,
through, under or in concert with them, or any of them, of and from any and all manner of
action or actions, cause or causes of action, in law or in equity, suits, debts, liens,
contracts, agreements, promises, liability, claims, demands, damages, loss, cost or expense,
of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called
“Claims”), which he may now have or may hereafter have against the Releasees, or any of
them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the
date hereof, including, without limiting the generality of the foregoing, any Claims arising
out of, based upon, or relating to Executive’s recruitment, hire, employment or remuneration
by, or his separation from employment with, the Releasees, including any Claims arising
under the Age Discrimination in Employment Act, as amended (the “ADEA”), Title VII of the
Civil Rights Act of 1964; the Civil Rights Act of 1866; the Equal Pay Act; the Americans
with Disabilities Act; the Fair Labor Standards Act; the Employee Retirement Income Security
Act; the Family Medical Leave Act; the Illinois Human Rights Act, the Illinois Wage Payment
Act, and the Chicago Human Rights Ordinance; Claims arising under any other local, state or
federal statutory or common law governing employment, contract or tort claims; Claims for
breach of contract; Claims arising in tort, including, without limitation, Claims of
wrongful dismissal or discharge, discrimination, harassment, retaliation, fraud,
misrepresentation, defamation, libel, infliction of emotional distress, violation of public
policy, and/or breach of the implied covenant of good faith and fair dealing; and Claims for
damages or other remedies of any sort, including, without limitation, compensatory damages,
punitive damages, injunctive relief and attorney’s fees.

          b) Notwithstanding the generality of the foregoing, Executive does not release the
following:

     i) His rights under the Agreement;

     ii) Claims for unemployment compensation or any state disability
insurance benefits pursuant to the terms of applicable state law;

     iii) Claims to continued participation in certain of the Company’s
group benefit plans pursuant to the terms and conditions of the federal law
known as COBRA;

 

 

     iv) Claims to any vested benefits as the date of your employment
termination pursuant to the written terms of any Company employee benefit
plan;

     v) Executive’s right to bring to the attention of the Equal Employment
Opportunity Commission or the Illinois Department of Labor claims of
discrimination; provided, however, that Executive does release his right to
secure any damages for alleged discriminatory treatment;

     vi) Any other Claims that cannot be released as a matter of law; and

     vii) Claims for indemnity as an officer of the Company under any policy
of insurance carried by the Company, the Company’s Articles of Incorporation
or By-Laws or under applicable state law.

          2. Timing and Effective Date. Executive acknowledges that he has been given at least
[twenty-one (21) or forty-five (45)]1 days to consider this Release and has been advised
to consult with an attorney. [Executive acknoweldege that he has been given a list of the ages and
job descriptions of the individuals who are eligible to receive severance payments conditioned upon
the signing of a similar release.]2 Executive may sign this Release prior to the end of
the [twenty-one (21) or forty-five (45)]3 day consideration period, however, if he does,
he acknowledges that his execution of the agreement was voluntary. Executive also acknowledges and
understands that he may revoke this Release within seven (7) days after its signing and that any
revocation must be made in writing and submitted within such seven day period to the Company. If
he revokes this agreement, he shall not receive the Severance Benefits under the terms of the
Letter Agreement. This Release will be effective on the eighth day after Executive signs it,
provided that Executive does not revoke the Release.

     WITNESS WHEREOF the undersigned has executed this Agreement on the date written below.

	 	 	 	 	 
	 	EXECUTIVE

 	 
	 	 	 
	 	NAME 	 
	 	 	 	 
	 

Date:

 

			
	1	 	45 days will apply if part of a group
termination under the ADEA
	 
	2	 	Applies only if part of a group termination
under the ADEA
	 
	3	 	45 days will apply if part of a group
termination under the ADEAexv4w12

Exhibit 4.12

SECURITIES PURCHASE AGREEMENT 

     THIS SECURITIES PURCHASE AGREEMENT (“Agreement”) is made by and between CryoPort, Inc., a
Nevada corporation (the “Company”), and the investors a signatory hereto (the “Investors”) as of
the date or dates of the Company’s execution hereof.

Recitals

     A. The Company and the Investors are executing and delivering this Agreement in reliance upon
the exemption from securities registration afforded by the provisions of Regulation D (“Regulation
D”), as promulgated by the U.S. Securities and Exchange Commission (the “SEC”) under the Securities
Act of 1933, as amended; and

     B. The Investors wish to purchase from the Company, and the Company wishes to sell and issue
to the Investors, upon the terms and conditions stated in this Agreement, the aggregate number of
units set forth opposite each Investor’s name on such Investor’s signature page hereof (the
“Units”) as such number may be reduced by the Company to reflect the reduction in Units to be
issued as a result of oversubscriptions, with each Unit consisting of (i) one share of the
Company’s common stock, par value $0.001 per share (the “Common Stock”), and (ii) a warrant to
purchase one share of Common Stock (subject to adjustment) at an exercise price of $0.77 per whole
share (subject to adjustment) in the form attached hereto as Exhibit A (the “Warrant”); and

     C. Contemporaneous with the sale of the Units, the parties hereto will become parties to a
Registration Rights Agreement, in the form attached hereto as Exhibit B (the “Registration
Rights Agreement”), pursuant to which the Company will agree to provide certain registration rights
under the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder,
and applicable state securities laws; and

     D. The Company has engaged Emergent Financial Group, Inc. as its non-exclusive placement agent
(the “Placement Agent”) for the offering of Units on a “best efforts” basis to generate gross
proceeds to the Company of approximately $7,500,000.

     In consideration of the mutual promises made herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

     1. Definitions. In addition to those terms defined above and elsewhere in this
Agreement, for the purposes of this Agreement, the following terms shall have the meanings set
forth below:

          “Affiliate” means, with respect to any Person, any other Person which directly or
indirectly through one or more intermediaries Controls, is controlled by, or is under common
control with, such Person.

 

 

          “Business Day” means a day, other than a Saturday or Sunday, on which banks in New
York City are open for the general transaction of business.

          “Closing” has the meaning set forth in Section 3.

          “Closing Date” has the meaning set forth in Section 3.

          “Company’s Knowledge” means the actual knowledge of the executive officers (as defined
in Rule 405 under the 1933 Act) of the Company, after due inquiry.

          “Confidential Information” means trade secrets, confidential information and know-how
(including but not limited to ideas, formulae, compositions, processes, procedures and techniques,
research and development information, computer program code, performance specifications, support
documentation, drawings, specifications, designs, business and marketing plans, and customer and
supplier lists and related information).

          “Control” (including the terms “controlling,” “controlled by” or “under common control
with”) means the possession, direct or indirect, of the power to direct or cause the direction of
the management and policies of a Person, whether through the ownership of voting securities, by
contract or otherwise.

          “Intellectual Property” means all of the following: (i) patents, patent applications,
patent disclosures and inventions (whether or not patentable and whether or not reduced to
practice); (ii) trademarks, service marks, trade dress, trade names, corporate names, logos,
slogans and Internet domain names, together with all goodwill associated with each of the
foregoing; (iii) copyrights and copyrightable works; (iv) registrations, applications and renewals
for any of the foregoing; and (v) proprietary computer software (including but not limited to data,
data bases and documentation).

          “Material Adverse Effect” means a material adverse effect on (i) the assets,
liabilities, results of operations, condition (financial or otherwise), business, or prospects of
the Company and its Subsidiaries taken as a whole, or (ii) the ability of the Company to perform
its obligations under the Transaction Documents.

          “Per Unit Purchase Price” means $0.70.

          “Person” means an individual, corporation, partnership, limited liability company,
trust, business trust, association, joint stock company, joint venture, sole proprietorship,
unincorporated organization, governmental authority or any other form of entity not specifically
listed herein.

          “Purchase Price” with respect to each Investor, means the aggregate amount set forth
opposite such Investor’s name on such Investor’s signature page hereto, which equals the product of
the Per Unit Purchase Price multiplied by the number of Units being acquired by such Investor
pursuant to the terms of this Agreement.

-2-

 

          “SEC Filings” has the meaning set forth in Section 4.6.

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

          “Shares” means the shares of Common Stock being purchased by the Investors hereunder.

          “Subsidiary” of any Person means another Person, an amount of the voting securities,
other voting ownership or voting partnership interests of which is sufficient to elect at least a
majority of its Board of Directors or other governing body (or, if there are no such voting
interests, 50% or more of the equity interests of which) is owned directly or indirectly by such
first Person.

          “Transaction Documents” means this Agreement, the Warrants and the Registration Rights
Agreement.

          “Warrant” means the instrument in the form attached hereto as Exhibit A with
respect to the purchase of the Warrant Shares.

          “Warrant Shares” means the shares of Common Stock issuable upon the exercise of the
Warrants.

          “1933 Act” means the Securities Act of 1933, as amended, or any successor statute, and
the rules and regulations promulgated thereunder.

          “1934 Act” means the Securities Exchange Act of 1934, as amended, or any successor
statute, and the rules and regulations promulgated thereunder.

     2. Purchase and Sale of Securities. Subject to the terms and conditions of this
Agreement, on the Closing Date, each Investor, severally and not jointly, shall purchase, and the
Company shall sell and issue to each Investor, the Shares and the Warrant, as provided herein and
set forth opposite such Investor’s name on such Investor’s signature page attached hereto in
exchange for the Purchase Price with respect to such Investor. Each Investor, prior to the Closing
Date, shall deliver to the Placement Agent a duly executed copy of the Agreement and the
Registration Rights Agreement and shall deliver to the escrow agent such Investor’s aggregate
Purchase Price (either by check or wire transfer to the address and/or account set forth on
Exhibit C).

     3. Closing. Subject to the satisfaction (or written waiver) the other conditions to
closing specified herein, the date(s) and time(s) of the issuance and sale of the Shares and the
Warrants pursuant to Section 2 of this Agreement (each, a “Closing Date”) shall be determined by
the Company and the Placement Agent. In the sole joint discretion of the Company and Placement
Agent, there may be more than one Closing. The closing of the purchase and sale of the Shares and
the Warrants (the “Closing”) shall take place at the offices of Snell & Wilmer L.L.P., 600 Anton
Boulevard, Suite 1400, Costa Mesa, California 92626, or at such other as the Company and the
Placement Agent shall mutually agree.

-3-

 

     Effective on a Closing Date, the Company and the Placement Agent shall cause the escrow agent
to deliver to the Company the Purchase Price, on behalf of each Investor with respect to the Shares
and the Warrant to be issued and sold to each Investor at the Closing. The Company shall deliver
to each Investor the certificate evidencing the Shares and the Warrant, exercisable for the Warrant
Shares, purchased by such Investor within ten (10) Business Days after a Closing Date.

     4. Representations and Warranties of the Company. The Company hereby represents and
warrants to the Investors and the Placement Agent that, except as set forth in the schedules
delivered herewith (collectively, the “Disclosure Schedules”) and except as set forth in the
Company’s Annual Report on 10-K for the year ended March 31, 2010:

          4.1 Organization, Good Standing and Qualification. Each of the Company and its
Subsidiaries is a corporation duly organized, validly existing and in good standing under the laws
of the jurisdiction of its incorporation and has all requisite corporate power and authority to
carry on its business as now conducted and to own its properties. Each of the Company and its
Subsidiaries is duly qualified to do business as a foreign corporation and is in good standing in
each jurisdiction in which the conduct of its business or its ownership or leasing of property
makes such qualification or leasing necessary unless the failure to so qualify has not had and
could not reasonably be expected to have a Material Adverse Effect.

          4.2 Authorization. The Company has full power and authority and has taken all
requisite action on the part of the Company, its officers, directors and stockholders necessary for
(i) the authorization, execution and delivery of the Transaction Documents, (ii) the authorization
of the performance of all obligations of the Company hereunder or thereunder, and (iii) the
authorization, issuance (or reservation for issuance) and delivery of the Securities. The
Transaction Documents constitute the legal, valid and binding obligations of the Company,
enforceable against the Company in accordance with their terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general applicability, relating
to or affecting creditors’ rights generally and to general equitable principles.

          4.3 Capitalization. Schedule 4.3 sets forth as of a recent date (a) the
authorized capital stock of the Company; (b) the number of shares of capital stock issued and
outstanding; (c) the number of shares of capital stock issuable pursuant to the Company’s stock
incentive plans; and (d) the number of shares of capital stock issuable and reserved for issuance
pursuant to securities (other than the Shares and the Warrants) exercisable for, or convertible
into or exchangeable for any shares of capital stock of the Company. All of the issued and
outstanding shares of the Company’s capital stock have been duly authorized and validly issued and
are fully paid, nonassessable and free of pre-emptive rights and were issued in compliance with
applicable state and federal securities law and any rights of third parties. All of the issued and
outstanding shares of capital stock of each Subsidiary have been duly authorized and validly issued
and are fully paid, nonassessable and free of pre-emptive rights, were issued in compliance with
applicable state and federal securities law and any rights of third parties and are owned by the
Company, beneficially and of record, subject to no lien, encumbrance or other

-4-

 

adverse claim. No Person is entitled to pre-emptive or similar statutory or contractual rights
with respect to any securities of the Company. Except as described on Schedule 4.3, there
are no outstanding warrants, options, convertible securities or other rights, agreements or
arrangements of any character under which the Company or any of its Subsidiaries is or may be
obligated to issue any equity securities of any kind and except as contemplated by this Agreement,
neither the Company nor any of its Subsidiaries is currently in negotiations for the issuance of
any equity securities of any kind. Except for the Registration Rights Agreement, there are no
voting agreements, buy-sell agreements, or option or right of first purchase agreements among the
Company and any of the security holders of the Company relating to the securities of the Company
held by them. Except as described on Schedule 4.3 and except as provided in the
Registration Rights Agreement, no Person has the right to require the Company to register any
securities of the Company under the 1933 Act, whether on a demand basis or in connection with the
registration of securities of the Company for its own account or for the account of any other
Person.

          The issuance and sale of the Securities hereunder will not obligate the Company to issue
shares of Common Stock or other securities to any other Person and will not result in the
adjustment of the exercise, conversion, exchange or reset price of any outstanding security.

          The Company does not have outstanding stockholder purchase rights or “poison pill” or any
similar arrangement in effect giving any Person the right to purchase any equity interest in the
Company upon the occurrence of certain events.

          4.4 Valid Issuance. The Shares have been duly and validly authorized and, when issued
and paid for pursuant to this Agreement, will be validly issued, fully paid and nonassessable, and
shall be free and clear of all encumbrances and restrictions (other than those created by the
Investors), except for restrictions on transfer set forth in the Transaction Documents or imposed
by applicable securities laws. The Warrants have been duly and validly authorized. Upon the due
exercise of the Warrants and receipt of the exercise price therefor, the Warrant Shares will be
validly issued, fully paid and non-assessable free and clear of all encumbrances and restrictions,
except for restrictions on transfer set forth in the Transaction Documents or imposed by applicable
securities laws and except for those created by the Investors. The Company has reserved a
sufficient number of shares of Common Stock for issuance upon the exercise of the Warrants, free
and clear of all encumbrances and restrictions, except for restrictions on transfer set forth in
the Transaction Documents or imposed by applicable securities laws and except for those created by
the Investors.

-5-

 

          4.5 Consents. The execution, delivery and performance by the Company of the
Transaction Documents and the offer, issuance and sale of the Securities require no consent of,
action by or in respect of, or filing with, any Person, governmental body, agency, or official
other than filings that have been made pursuant to applicable state securities laws and post-sale
filings pursuant to applicable state and federal securities laws which the Company undertakes to
file within the applicable time periods. Subject to the accuracy of the representations and
warranties of each Investor set forth in Section 5 hereof, the Company has taken all action
necessary to exempt (i) the issuance and sale of the Securities, (ii) the issuance of the Warrant
Shares upon due exercise of the Warrants, and (iii) the other transactions contemplated by the
Transaction Documents from the provisions of any stockholder rights plan or other “poison pill”
arrangement, any anti-takeover, business combination or control share law or statute binding on the
Company or to which the Company or any of its assets and properties may be subject and any
provision of the Company’s Amended and Restated Articles of Incorporation or Bylaws that is or
could reasonably be expected to become applicable to the Investors as a result of the transactions
contemplated hereby, including without limitation, the issuance of the Securities and the
ownership, disposition or voting of the Securities by the Investors or the exercise of any right
granted to the Investors pursuant to this Agreement or the other Transaction Documents.

          4.6 Delivery of SEC Filings; Business. The Company has made available to the
Investors through the EDGAR system, true and complete copies of the Company’s most recent Annual
Report on Form 10-K for the fiscal year ended March 31, 2010 (the “10-K”), and all other reports
filed by the Company pursuant to the 1934 Act since the filing of the 10-K and prior to the date
hereof (collectively, the “SEC Filings”). The SEC Filings are the only filings required of the
Company pursuant to the 1934 Act for such period. The Company and its Subsidiaries are engaged in
all material respects only in the business described in the SEC Filings and the SEC Filings contain
a complete and accurate description in all material respects of the business of the Company and its
Subsidiaries, taken as a whole.

          4.7 Use of Proceeds. The net proceeds of the sale of the Shares and the Warrants
hereunder shall be used by the Company for working capital and general corporate purposes. Except
as required by agreements existing on the date of this Agreement, the Company shall not use the net
proceeds of the sale of the Shares and the Warrants hereunder to repay obligations for borrowed
money owed by the Company on the date of this Agreement. A portion of the net proceeds of the sale
of the Shares and the Warrants may be applied to costs of engaging the services of The Intuitus
Group LLC to assist the Company in, among other matters, establishing business relationships with
research organizations, pharmaceutical and biotechnology companies and diagnostic testing
organizations.

          4.8 No Material Adverse Change. Since September 30, 2010, there has not been:

               (a) any change in the consolidated assets, liabilities, financial condition or operating
results of the Company from that reflected in the financial statements included in the Company’s
SEC Filings, except for changes in the ordinary course of business which have not had and could not
reasonably be expected to have a Material Adverse Effect, individually or in the aggregate;

-6-

 

               (b) any declaration or payment of any dividend, or any authorization or payment of any
distribution, on any of the capital stock of the Company, or any redemption or repurchase of any
securities of the Company;

               (c) any material damage, destruction or loss, whether or not covered by insurance to any
assets or properties of the Company or its Subsidiaries;

               (d) any waiver, not in the ordinary course of business, by the Company or any Subsidiary of a
material right or of a material debt owed to it;

               (e) any satisfaction or discharge of any lien, claim or encumbrance or payment of any
obligation by the Company or a Subsidiary, except in the ordinary course of business and which is
not material to the assets, properties, financial condition, operating results or business of the
Company and its Subsidiaries taken as a whole (as such business is presently conducted and as it is
proposed to be conducted);

               (f) any change or amendment to the Company’s Amended and Restated Articles of Incorporation or
Bylaws, or material change to any material contract or arrangement by which the Company or any
Subsidiary is bound or to which any of their respective assets or properties is subject;

               (g) any material labor difficulties or labor union organizing activities with respect to
employees of the Company or any Subsidiary;

               (h) any material transaction entered into by the Company or a Subsidiary other than in the
ordinary course of business;

               (i) the loss of the services of any key employee, or material change in the composition or
duties of the senior management of the Company or any Subsidiary;

               (j) the loss or threatened loss of any customer which has had or could reasonably be expected
to have a Material Adverse Effect; or

               (k) any other event or condition of any character that has had or could reasonably be expected
to have a Material Adverse Effect.

          4.9 SEC Filings.

               (a) At the time of filing thereof, the SEC Filings complied as to form in all material
respects with the requirements of the 1934 Act and did not contain any untrue statement of a
material fact or omit to state any material fact necessary in order to make the statements made
therein, in the light of the circumstances under which they were made, not misleading.

-7-

 

               (b) Each registration statement and any amendment thereto filed by the Company since September
1, 2009 pursuant to the 1933 Act and the rules and regulations thereunder, as of the date such
statement or amendment became effective, complied as to form in all material respects with the 1933
Act and did not contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary in order to make the statements made therein not
misleading; and each prospectus filed pursuant to Rule 424(b) under the 1933 Act, as of its issue
date and as of the closing of any sale of securities pursuant thereto did not contain any untrue
statement of a material fact or omit to state any material fact required to be stated therein or
necessary in order to make the statements made therein, in the light of the circumstances under
which they were made, not misleading.

               4.10 No Conflict, Breach, Violation or Default. The execution, delivery and
performance of the Transaction Documents by the Company and the issuance and sale of the Securities
will not conflict with or result in a breach or violation of any of the terms and provisions of, or
constitute a default under (i) the Company’s Amended and Restated Articles of Incorporation or the
Company’s Bylaws, both as in effect on the date hereof (true and complete copies of which have been
made available to the Investors through the EDGAR system), or (ii)(a) any statute, rule, regulation
or order of any governmental agency or body or any court, domestic or foreign, having jurisdiction
over the Company, any Subsidiary or any of their respective assets or properties, where such
conflict, breach, violation or default is reasonably expected to have a Material Adverse Effect, or
(b) any agreement or instrument to which the Company or any Subsidiary is a party or by which the
Company or a Subsidiary is bound or to which any of their respective assets or properties is
subject, where such conflict, breach, violation or default is reasonably expected to have a
Material Adverse Effect.

               4.11 Tax Matters. The Company and each Subsidiary has timely prepared and filed all
tax returns required to have been filed by the Company or such Subsidiary with all appropriate
governmental agencies and timely paid all taxes shown thereon or otherwise owed by it. The
charges, accruals and reserves on the books of the Company in respect of taxes for all fiscal
periods are adequate in all material respects, and there are no material unpaid assessments against
the Company or any Subsidiary nor, to the Company’s Knowledge, any basis for the assessment of any
additional taxes, penalties or interest for any fiscal period or audits by any federal, state or
local taxing authority except for any assessment which is not material to the Company and its
Subsidiaries, taken as a whole. All taxes and other assessments and levies that the Company or any
Subsidiary is required to withhold or to collect for payment have been duly withheld and collected
and paid to the proper governmental entity or third party when due. There are no tax liens or
claims pending or, to the Company’s Knowledge, threatened against the Company or any Subsidiary or
any of their respective assets or property. There are no outstanding tax sharing agreements or
other such arrangements between the Company and any Subsidiary or other corporation or entity.

               4.12 Title to Properties. Except as described on Schedule 4.12, the Company
and each Subsidiary has good and marketable title to all real properties and all other properties
and assets owned by it, in each case free from liens, encumbrances and defects that would
materially affect the value thereof or materially interfere with the use made or currently planned
to be made thereof by them; and the Company and each Subsidiary holds any leased real or

-8-

 

personal property under valid and enforceable leases with no exceptions that would materially
interfere with the use made or currently planned to be made thereof by them.

          4.13 Certificates, Authorities and Permits. The Company and each Subsidiary possess
adequate certificates, authorities or permits issued by appropriate governmental agencies or bodies
necessary to conduct the business now operated by it, and neither the Company nor any Subsidiary
has received any notice of proceedings relating to the revocation or modification of any such
certificate, authority or permit that, if determined adversely to the Company or such Subsidiary,
could reasonably be expected to have a Material Adverse Effect, individually or in the aggregate.

          4.14 Labor Matters.

               (a) The Company is not a party to or bound by any collective bargaining agreements or other
agreements with labor organizations. The Company has not violated in any material respect any
laws, regulations, orders or contract terms, affecting the collective bargaining rights of
employees, labor organizations or any laws, regulations or orders affecting employment
discrimination, equal opportunity employment, or employees’ health, safety, welfare, wages and
hours.

               (b) (i) There are no labor disputes existing, or to the Company’s Knowledge, threatened,
involving strikes, slow-downs, work stoppages, job actions, disputes, lockouts or any other
disruptions of or by the Company’s employees, (ii) there are no unfair labor practices or petitions
for election pending or, to the Company’s Knowledge, threatened before the National Labor Relations
Board or any other federal, state or local labor commission relating to the Company’s employees,
(iii) no demand for recognition or certification heretofore made by any labor organization or group
of employees is pending with respect to the Company and (iv) to the Company’s Knowledge, the
Company enjoys good labor and employee relations with its employees and labor organizations.

               (c) The Company is, and at all times has been, in compliance in all material respects with all
applicable laws respecting employment (including laws relating to classification of employees and
independent contractors) and employment practices, terms and conditions of employment, wages and
hours, and immigration and naturalization. There are no claims pending against the Company before
the Equal Employment Opportunity Commission or any other administrative body or in any court
asserting any violation of Title VII of the Civil Rights Act of 1964, the Age Discrimination Act of
1967, 42 U.S.C. §§ 1981 or 1983 or any other federal, state or local Law, statute or ordinance
barring discrimination in employment.

               (d) Except as described on Schedule 4.14, the Company is not a party to, or bound by,
any employment or other contract or agreement that contains any severance, termination pay or
change of control liability or obligation, including, without limitation, any “excess parachute
payment,” as defined in Section 280G(b) of the Internal Revenue Code.

-9-

 

               (e) Each of the Company’s employees is a Person who is either a United States citizen or a
permanent resident entitled to work in the United States. To the Company’s Knowledge, the Company
has no liability for the improper classification by the Company of such employees as independent
contractors or leased employees prior to the Closing.

          4.15 Intellectual Property.

               (a) All Intellectual Property of the Company and its Subsidiaries is currently in compliance
with all legal requirements (including timely filings, proofs and payments of fees) and is valid
and enforceable. No Intellectual Property of the Company or its Subsidiaries which is necessary
for the conduct of Company’s and each of its Subsidiaries’ respective businesses as currently
conducted or as currently proposed to be conducted has been or is now involved in any cancellation,
dispute or litigation, and, to the Company’s Knowledge, no such action is threatened. To the
Company’s Knowledge, no patent of the Company or its Subsidiaries has been or is now involved in
any interference, reissue, re-examination or opposition proceeding.

               (b) All of the licenses and sublicenses and consent, royalty or other agreements concerning
Intellectual Property which are necessary for the conduct of the Company’s and each of its
Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted
to which the Company or any Subsidiary is a party or by which any of their assets are bound (other
than generally commercially available, non-custom, off-the-shelf software application programs
having a retail acquisition price of less than $10,000 per license) (collectively, “License
Agreements”) are valid and binding obligations of the Company or its Subsidiaries that are parties
thereto and, to the Company’s Knowledge, the other parties thereto, enforceable in accordance with
their terms, except to the extent that enforcement thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws affecting the
enforcement of creditors’ rights generally, and to the Company’s Knowledge, there exists no event
or condition which will result in a material violation or breach of or constitute (with or without
due notice or lapse of time or both) a default by the Company or any of its Subsidiaries under any
such License Agreement.

               (c) The Company and its Subsidiaries own or have the valid right to use all of the
Intellectual Property that is necessary for the conduct of the Company’s and each of its
Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted
and for the ownership, maintenance and operation of the Company’s and its Subsidiaries’ properties
and assets, free and clear of all liens, encumbrances, adverse claims or obligations to license all
such owned Intellectual Property and Confidential Information, other than licenses entered into in
the ordinary course of the Company’s and its Subsidiaries’ businesses. To the Company’s Knowledge,
the Company and its Subsidiaries have a valid and enforceable right to use all third party
Intellectual Property and Confidential Information used or held for use in the respective
businesses of the Company and its Subsidiaries.

               (d) To the Company’s Knowledge, the conduct of the Company’s and its Subsidiaries’ businesses
as currently conducted does not infringe or otherwise impair or

-10-

 

conflict with (collectively, “Infringe”) any Intellectual Property rights of any third party or any
confidentiality obligation owed to a third party, and, to the Company’s Knowledge, the Intellectual
Property and Confidential Information of the Company and its Subsidiaries which are necessary for
the conduct of Company’s and each of its Subsidiaries’ respective businesses as currently conducted
or as currently proposed to be conducted are not being Infringed by any third party. There is no
litigation or order pending or outstanding or, to the Company’s Knowledge, threatened or imminent,
that seeks to limit or challenge or that concerns the ownership, use, validity or enforceability of
any Intellectual Property or Confidential Information of the Company and its Subsidiaries and the
Company’s and its Subsidiaries’ use of any Intellectual Property or Confidential Information owned
by a third party, and, to the Company’s Knowledge, there is no valid basis for the same.

               (e) The consummation of the transactions contemplated hereby and by the other Transaction
Documents will not result in the alteration, loss, impairment of or restriction on the Company’s or
any of its Subsidiaries’ ownership or right to use any of the Intellectual Property or Confidential
Information which is necessary for the conduct of Company’s and each of its Subsidiaries’
respective businesses as currently conducted or as currently proposed to be conducted.

               (f) The Company and its Subsidiaries have taken reasonable steps to protect the Company’s and
its Subsidiaries’ rights in their Intellectual Property and Confidential Information. Each current
employee, consultant and contractor who has had access to Confidential Information which is
necessary for the conduct of Company’s and each of its Subsidiaries’ respective businesses as
currently conducted or as currently proposed to be conducted has executed an agreement to maintain
the confidentiality of such Confidential Information and has executed appropriate agreements that
are substantially consistent with the Company’s standard forms thereof. Except under
confidentiality obligations, to the Company’s Knowledge, there has been no material disclosure of
any of the Company’s or its Subsidiaries’ Confidential Information to any third party.

          4.16 Environmental Matters. To the Company’s Knowledge, neither the Company nor any
Subsidiary is in violation of any statute, rule, regulation, decision or order of any governmental
agency or body or any court, domestic or foreign, relating to the use, disposal or release of
hazardous or toxic substances or relating to the protection or restoration of the environment or
human exposure to hazardous or toxic substances (collectively, “Environmental Laws”), owns or
operates any real property contaminated with any substance that is subject to any Environmental
Laws, is liable for any off-site disposal or contamination pursuant to any Environmental Laws, or
is subject to any claim relating to any Environmental Laws, which violation, contamination,
liability or claim has had or could reasonably be expected to have a Material Adverse Effect,
individually or in the aggregate; and there is no pending or, to the Company’s Knowledge,
threatened investigation that might lead to such a claim.

          4.17 Litigation. Except as described on Schedule 4.17, there are no pending
actions, suits or proceedings against or affecting the Company, its Subsidiaries or any of its or
their properties; and to the Company’s Knowledge, no such actions, suits or proceedings are
threatened or contemplated. Neither the Company nor any Subsidiary, nor any director or officer

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thereof, is or since September 30, 2010, has been the subject of any action involving a claim of
violation of or liability under federal or state securities laws or a claim of breach of fiduciary
duty. There has not been, and to the Company’s Knowledge, there is not pending or contemplated,
any investigation by the SEC involving the Company or any current or former director or officer of
the Company. The SEC has not issued any stop order or other order suspending the effectiveness of
any registration statement filed by the Company or any Subsidiary under the 1933 Act or the 1934
Act.

          4.18 Financial Statements. The financial statements included in each SEC Filing
present fairly, in all material respects, the consolidated financial position of the Company as of
the dates shown and its consolidated results of operations and cash flows for the periods shown,
and such financial statements have been prepared in conformity with United States generally
accepted accounting principles applied on a consistent basis (“GAAP”) (except as may be disclosed
therein or in the notes thereto, and, in the case of quarterly financial statements, as permitted
by Form 10-Q under the 1934 Act). Except as set forth in the financial statements of the Company
included in the SEC Filings filed prior to the date hereof or as described on Schedule
4.18, neither the Company nor any of its Subsidiaries has incurred any liabilities, contingent
or otherwise, except those incurred in the ordinary course of business, consistent (as to amount
and nature) with past practices since the date of such financial statements, none of which,
individually or in the aggregate, have had or could reasonably be expected to have a Material
Adverse Effect.

          4.19 Insurance Coverage. The Company and each Subsidiary maintains in full force and
effect insurance coverage that is customary for comparably situated companies for the business
being conducted and properties owned or leased by the Company and each Subsidiary, and the Company
reasonably believes such insurance coverage to be adequate against all liabilities, claims and
risks against which it is customary for comparably situated companies to insure.

          4.20 [reserved]

          4.21 Brokers and Finders. No Person will have, as a result of the transactions
contemplated by the Transaction Documents, any valid right, interest or claim against or upon the
Company, any Subsidiary or the Investors for any commission, fee or other compensation pursuant to
any agreement, arrangement or understanding entered into by or on behalf of the Company, other than
as described in Schedule 4.21.

          4.22 No Directed Selling Efforts or General Solicitation. Neither the Company nor any
Person acting on its behalf has conducted any general solicitation or general advertising (as those
terms are used in Regulation D) in connection with the offer or sale of any of the Securities.

          4.23 No Integrated Offering. Neither the Company nor any of its Affiliates, nor any
Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any
Company security or solicited any offers to buy any security, under circumstances that would
adversely affect reliance by the Company on Section 4(2) for the exemption from registration for

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the transactions contemplated hereby or would require registration of the Securities under the 1933
Act.

          4.24 Private Placement. Assuming the accuracy of the Investment Representations (as
defined in Section 6.2(a) of this Agreement), the offer and sale of the Securities to the Investors
as contemplated hereby is exempt from the registration requirements of the 1933 Act.

          4.25 Questionable Payments. Neither the Company nor any of its Subsidiaries nor, to
the Company’s Knowledge, any of their respective current or former directors, officers, employees,
agents or other Persons acting on behalf of the Company or any Subsidiary, has on behalf of the
Company or any Subsidiary or in connection with their respective businesses: (a) used any corporate
funds for unlawful contributions, gifts, entertainment or other unlawful expenses relating to
political activity; (b) made any direct or indirect unlawful payments to any governmental officials
or employees from corporate funds; (c) established or maintained any unlawful or unrecorded fund of
corporate monies or other assets; (d) made any false or fictitious entries on the books and records
of the Company or any Subsidiary; or (e) made any unlawful bribe, rebate, payoff, influence
payment, kickback or other unlawful payment of any nature.

          4.26 Transactions with Affiliates. Except as disclosed on Schedule 4.26, none
of the officers or directors of the Company and, to the Company’s Knowledge, none of the employees
of the Company is presently a party to any transaction with the Company or any Subsidiary (other
than as holders of stock options and/or warrants, and for services as employees, officers and
directors), including any contract, agreement or other arrangement providing for the furnishing of
services to or by, providing for rental of real or personal property to or from, or otherwise
requiring payments to or from any officer, director or such employee or, to the Company’s
Knowledge, any entity in which any officer, director, or any such employee has a substantial
interest or is an officer, director, trustee or partner.

          4.27 Internal Controls. The Company is in material compliance with the provisions of
the Sarbanes-Oxley Act of 2002 currently applicable to the Company. The Company and the
Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable
assurance that (i) transactions are executed in accordance with management’s general or specific
authorizations, (ii) transactions are recorded as necessary to permit preparation of financial
statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is
permitted only in accordance with management’s general or specific authorization, and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable intervals and
appropriate action is taken with respect to any differences. The Company has established
disclosure controls and procedures (as defined in 1934 Act Rules 13a-15(e) and 15d-15(e)) for the
Company and designed such disclosure controls and procedures to ensure that material information
relating to the Company, including the Subsidiaries, is made known to the certifying officers by
others within those entities, particularly during the period in which the Company’s most recently
filed periodic report under the 1934 Act, as the case may be, is being prepared. The Company’s
certifying officers have evaluated the effectiveness of the Company’s controls and procedures as of
the end of the period covered by the most recently filed periodic report under the 1934 Act (such
date, the “Evaluation Date”).

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The Company presented in its most recently filed periodic report under the 1934 Act the conclusions
of the certifying officers about the effectiveness of the disclosure controls and procedures based
on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no
significant changes in the Company’s internal controls (as such term is defined in Item 308 of
Regulation S-K), to the Company’s Knowledge, in other factors that could significantly affect the
Company’s internal controls. The Company maintains and will continue to maintain a standard system
of accounting established and administered in accordance with GAAP and the applicable requirements
of the 1934 Act.

          4.28 Disclosures. Neither the Company nor any Person acting on its behalf has
provided the Investors or their agents with any information that constitutes or might constitute
material, non-public information, other than the terms of the transactions contemplated hereby.
The written materials delivered to the Investors in connection with the transactions contemplated
by the Transaction Documents do not contain any untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements contained therein, in light of the
circumstances under which they were made, not misleading.

     5. Representations and Warranties of each Investor. Each Investor, severally and not
jointly, hereby represents and warrants to the Company that:

          5.1 Organization and Existence. To the extent such Investor is an entity, such
Investor has been duly organized and has all requisite corporate, partnership, limited liability
company or other entity power and authority to invest in the Securities pursuant to this Agreement.

          5.2 Authorization. The execution, delivery and performance by such Investor of the
Transaction Documents to which such Investor is a party have been duly authorized and each will
constitute the valid and legally binding obligation of such Investor, enforceable against such
Investor in accordance with their respective terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability, relating to or
affecting creditors’ rights generally.

          5.3 Purchase Entirely for Own Account. The Securities to be received by such Investor
hereunder will be acquired for such Investor’s own account and not for the account of others or as
nominee or agent, and not with a view to, or for, resale, distribution, syndication, or
fractionalization thereof, and such Investor has no present intention of selling, granting any
participation in, or otherwise distributing the same in violation of the 1933 Act without
prejudice, however, to such Investor’s right at all times to sell or otherwise dispose of all or
any part of the Securities in compliance with applicable federal and state securities laws.
Nothing contained herein shall be deemed a representation or warranty by such Investor to hold the
Securities for any period of time. Such Investor is not a broker-dealer registered with the SEC
under the 1934 Act or an entity engaged in a business that would require it to be so registered.

          5.4 Investment Experience. Such Investor acknowledges that it can bear the economic
risk and complete loss of its investment in the Securities and has such knowledge and

-14-

 

experience in financial or business matters that it is capable of evaluating the merits and risks
of the investment contemplated hereby.

          5.5 Disclosure of Information. Such Investor has had an opportunity to receive all
information related to the Company requested by it and to ask questions of and receive answers from
the Company regarding the Company, its business and the terms and conditions of the offering of the
Securities. Such Investor acknowledges receipt of copies of the SEC Filings. Neither such
inquiries nor any other due diligence investigation conducted by such Investor shall modify, limit
or otherwise affect such Investor’s right to rely on the Company’s representations and warranties
contained in this Agreement.

          5.6 Restricted Securities. Such Investor understands that the Securities are
characterized as “restricted securities” under the U.S. federal securities laws inasmuch as they
are being acquired from the Company in a transaction not involving a public offering and that under
such laws and applicable regulations such securities may be resold without registration under the
1933 Act only in certain limited circumstances.

          5.7 Legends. It is understood that, except as provided below, certificates evidencing
the Securities may bear the following or any similar legend:

               (a) “THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OFFERED FOR SALE IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES OR AN OPINION OF COUNSEL OR OTHER EVIDENCE
ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.”

               (b) If required by the authorities of any state in connection with the issuance of sale of the
Securities, the legend required by such state authority.

          5.8 Accredited Investor. Such Investor is an accredited investor as defined in Rule
501(a) of Regulation D, as amended, under the 1933 Act, pursuant to the basis indicated on such
Investor’s signature page.

          5.9 No General Solicitation. Such Investor did not learn of the investment in the
Securities as a result of any general solicitation or general advertising.

          5.10 Brokers and Finders. No Person will have (other than the Placement Agent), as a
result of the transactions contemplated by the Transaction Documents, any valid right, interest or
claim against or upon the Company, any Subsidiary or such Investor for any commission, fee or other
compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf
of such Investor.

          5.11 Prohibited Transactions. Since the earlier of (a) such time as such Investor was
first contacted by the Company or any other Person acting on behalf of the Company regarding the
transactions contemplated hereby or (b) thirty (30) days prior to the date

-15-

 

hereof, neither such Investor nor any Affiliate of such Investor which (x) had knowledge of the
transactions contemplated hereby, (y) has or shares discretion relating to such Investor’s
investments or trading or information concerning such Investor’s investments, including in respect
of the Securities, or (z) is subject to such Investor’s review or input concerning such Affiliate’s
investments or trading (collectively, “Trading Affiliates”) has, directly or indirectly, effected
or agreed to effect any short sale, whether or not against the box, established any “put equivalent
position” (as defined in Rule 16a-1(h) under the 1934 Act) with respect to the Common Stock,
granted any other right (including, without limitation, any put or call option) with respect to the
Common Stock or with respect to any security that includes, relates to or derived any significant
part of its value from the Common Stock or otherwise sought to hedge its position in the Securities
(each, a “Prohibited Transaction”).

     6. Conditions to Closing.

          6.1 Conditions to the Investors’ Obligations. The obligation of the Investors to
purchase the Shares and the Warrants at the Closing is subject to the fulfillment to the Investors’
satisfaction, on or prior to the Closing Date, of the following conditions, any of which may be
waived by the Investors:

               (a) The representations and warranties made by the Company in Section 4 hereof qualified as to
materiality shall be true and correct at all times prior to and on the Closing Date, except to the
extent any such representation or warranty expressly speaks as of an earlier date, in which case
such representation or warranty shall be true and correct as of such earlier date, and, the
representations and warranties made by the Company in Section 4 hereof not qualified as to
materiality shall be true and correct in all material respects at all times prior to and on the
Closing Date, except to the extent any such representation or warranty expressly speaks as of an
earlier date, in which case such representation or warranty shall be true and correct in all
material respects as of such earlier date. The Company shall have performed in all material
respects all obligations and covenants herein required to be performed by it on or prior to the
Closing Date.

               (b) The Company shall have obtained any and all consents, permits, approvals, registrations
and waivers necessary or appropriate for consummation of the purchase and sale of the Securities
and the consummation of the other transactions contemplated by the Transaction Documents, all of
which shall be in full force and effect.

               (c) The Company shall have executed and delivered the Registration Rights Agreement.

               (d) No judgment, writ, order, injunction, award or decree of or by any court, or judge,
justice or magistrate, including any bankruptcy court or judge, or any order of or by any
governmental authority, shall have been issued, and no action or proceeding shall have been
instituted by any governmental authority, enjoining or preventing the consummation of the
transactions contemplated hereby or in the other Transaction Documents.

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               (e) No stop order or suspension of trading shall have been imposed by the OTC Bulletin Board,
the SEC or any other governmental or regulatory body with respect to public trading in the Common
Stock.

          6.2 Conditions to Obligations of the Company. The Company’s obligation to sell and
issue the Shares and the Warrants at the Closing is subject to the fulfillment to the satisfaction
of the Company on or prior to the Closing Date of the following conditions, any of which may be
waived by the Company:

               (a) The representations and warranties made by each Investor in Section 5 hereof, other than
the representations and warranties contained in Sections 5.3, 5.4, 5.5, 5.6, 5.7, 5.8 and 5.9 (the
“Investment Representations”), shall be true and correct in all material respects when made, and
shall be true and correct in all material respects on the Closing Date with the same force and
effect as if they had been made on and as of said date. The Investment Representations shall be
true and correct in all respects when made, and shall be true and correct in all respects on the
Closing Date with the same force and effect as if they had been made on and as of said date. Each
Investor shall have performed in all material respects all obligations and covenants herein
required to be performed by such Investor on or prior to the Closing Date.

               (b) Each Investor shall have executed and delivered this Agreement and the Registration Rights
Agreement.

               (c) Each Investor shall have delivered the Purchase Price with respect to such Investor to the
escrow agent.

          6.3 Termination of Obligations to Effect Closing; Effects.

               (a) The obligations of the Company, on the one hand, and the Investors, on the other hand, to
affect the Closing shall terminate as follows:

                    (i) Upon the mutual written consent of the Company and the Investors;

                    (ii) By the Company if any of the conditions set forth in Section 6.2 shall have become
incapable of fulfillment, and shall not have been waived by the Company;

                    (iii) By the Investors if any of the conditions set forth in Section 6.1 shall have become
incapable of fulfillment, and shall not have been waived by the Investors; or

                    (iv) By either the Company or the Investors if the Closing has not occurred on or prior to the
date thirty days after the date hereof;

-17-

 

provided, however, that, except in the case of clause (i) above, the party seeking to terminate its
obligation to effect the Closing shall not then be in breach of any of its representations,
warranties, covenants or agreements contained in this Agreement or the other Transaction Documents
if such breach has resulted in the circumstances giving rise to such party’s seeking to terminate
its obligation to effect the Closing.

     7. Covenants and Agreements of the Company.

          7.1 Reservation of Common Stock. The Company shall at all times reserve and keep
available out of its authorized but unissued shares of Common Stock, solely for the purpose of
providing for the exercise of the Warrants, such number of shares of Common Stock as shall from
time to time equal the number of shares sufficient to permit the exercise of the Warrants issued
pursuant to this Agreement in accordance with its respective terms.

          7.2 Reports. The Company will furnish to each Investor and/or its assignee such
information relating to the Company and its Subsidiaries as from time to time may reasonably be
requested by such Investor and/or its assignees; provided, however, that the Company shall not
disclose material nonpublic information to such Investor, or to any advisor to or representative of
such Investor, unless prior to disclosure of such information the Company identifies such
information as being material nonpublic information and provides such Investor, such advisor and
representative with the opportunity to accept or refuse to accept such material nonpublic
information for review and such Investor wishing to obtain such information enters into an
appropriate confidentiality agreement with the Company with respect thereto.

          7.3 No Conflicting Agreements. The Company will not take any action, enter into any
agreement or make any commitment that would conflict or interfere in any material respect with the
Company’s obligations to the Investors under the Transaction Documents.

          7.4 Insurance. The Company shall not materially reduce the insurance coverages
described in Section 4.19.

          7.5 Compliance with Laws. The Company will comply in all material respects with all
applicable laws, rules, regulations, orders and decrees of all governmental authorities.

          7.6 [reserved]

          7.7 Termination of Covenants. The provisions of Sections 7.2 through 7.5 shall
terminate and be of no further force and effect on the date on which the Company’s obligations
under the Registration Rights Agreement to register or maintain the effectiveness of any
registration covering the Registrable Securities (as such term is defined in the Registration
Rights Agreement) shall terminate.

          7.8 Removal of Legends. In connection with any sale or disposition of the Securities
by an Investor pursuant to Rule 144 or pursuant to any other exemption under the 1933 Act such that
the purchaser acquires freely tradable shares and upon compliance by such

-18-

 

Investor with the requirements of this Agreement, the Company shall or, in the case of Common
Stock, shall cause the transfer agent for the Common Stock (the “Transfer Agent”) to issue
replacement certificates representing the Securities sold or disposed of without restrictive
legends. Upon the earlier of (i) registration for resale pursuant to the Registration Rights
Agreement or (ii) the Shares becoming freely tradable by a non-affiliate pursuant to Rule 144, the
Company shall, with respect to each Investor, (A) deliver to the Transfer Agent irrevocable
instructions that the Transfer Agent shall reissue a certificate representing shares of Common
Stock without legends upon receipt by such Transfer Agent of the legended certificates for such
shares, together with either (1) a customary representation by such Investor that Rule 144 applies
to the shares of Common Stock represented thereby or (2) a statement by such Investor that such
Investor has sold the shares of Common Stock represented thereby in accordance with the Plan of
Distribution contained in the applicable registration statement, and (B) cause its counsel to
deliver to the Transfer Agent one or more blanket opinions to the effect that the removal of such
legends in such circumstances may be effected under the 1933 Act. From and after the earlier of
such dates, upon an Investor’s written request, the Company shall promptly cause certificates
evidencing such Investor’s Securities to be replaced with certificates which do not bear such
restrictive legends, and Warrant Shares subsequently issued upon due exercise of the Warrants shall
not bear such restrictive legends provided the provisions of either clause (i) or clause (ii)
above, as applicable, are satisfied with respect to such Warrant Shares.

     8. Survival and Indemnification.

          8.1 Survival. The representations, warranties, covenants and agreements contained in
this Agreement shall survive the Closing of the transactions contemplated by this Agreement.

          8.2 Indemnification. The Company agrees to indemnify and hold harmless the Investors
and each of their Affiliates and each of their respective directors, officers, employees and agents
from and against any and all losses, claims, damages, liabilities and expenses (including without
limitation reasonable attorney fees and disbursements and other expenses incurred in connection
with investigating, preparing or defending any action, claim or proceeding, pending or threatened
and the costs of enforcement thereof) (collectively, “Losses”) to which such Person may become
subject as a result of any breach of representation, warranty, covenant or agreement made by or to
be performed on the part of the Company under the Transaction Documents, and will reimburse any
such Person for all such amounts as they are incurred by such Person; provided, however, that such
indemnifiable Losses shall not exceed the amount of the Purchase Price.

          8.3 Conduct of Indemnification Proceedings. Any person entitled to indemnification
hereunder shall (i) give prompt notice to the indemnifying party of any claim with respect to which
it seeks indemnification and (ii) permit such indemnifying party to assume the defense of such
claim with counsel reasonably satisfactory to the indemnified party; provided that any
person entitled to indemnification hereunder shall have the right to employ separate counsel and to
participate in the defense of such claim, but the fees and expenses of such counsel shall be at the
expense of such person unless (a) the indemnifying party has agreed to pay such fees or expenses,
or (b) the indemnifying party shall have failed to assume the defense of such

-19-

 

claim and employ counsel reasonably satisfactory to such person or (c) in the reasonable
judgment of any such person, based upon written advice of its counsel, a conflict of interest
exists between such person and the indemnifying party with respect to such claims (in which case,
if the person notifies the indemnifying party in writing that such person elects to employ separate
counsel at the expense of the indemnifying party, the indemnifying party shall not have the right
to assume the defense of such claim on behalf of such person); and provided,
further, that the failure of any indemnified party to give notice as provided herein shall
not relieve the indemnifying party of its obligations hereunder, except to the extent that such
failure to give notice shall materially adversely affect the indemnifying party in the defense of
any such claim or litigation. It is understood that the indemnifying party shall not, in
connection with any proceeding in the same jurisdiction, be liable for fees or expenses of more
than one separate firm of attorneys at any time for all such indemnified parties. No indemnifying
party will, except with the consent of the indemnified party, consent to entry of any judgment or
enter into any settlement that does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such indemnified party of a release from all liability in respect of such
claim or litigation.

     9. Miscellaneous.

          9.1 Successors and Assigns. This Agreement may not be assigned by a party hereto
without the prior written consent of the Company or the Investors, as applicable; provided,
however, that any Investor may assign its rights and delegate its duties hereunder in whole or in
part to its Affiliate or to a third party acquiring some or all of the Securities in a transaction
complying with applicable securities laws without the prior written consent of the Company. The
provisions of this Agreement shall inure to the benefit of and be binding upon the respective
permitted successors and assigns of the parties. Nothing in this Agreement, express or implied, is
intended to confer upon any party other than the parties hereto or their respective successors and
assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

          9.2 Counterparts; Faxes. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the
same instrument. This Agreement may also be executed via facsimile, which shall be deemed an
original.

          9.3 Titles and Subtitles. The titles and subtitles used in this Agreement are used
for convenience only and are not to be considered in construing or interpreting this Agreement.

          9.4 Notices. Unless otherwise provided, any notice required or permitted under this
Agreement shall be given in writing and shall be deemed effectively given as hereinafter described
(i) if given by personal delivery, then such notice shall be deemed given upon such delivery, (ii)
if given by telex or telecopier, then such notice shall be deemed given upon receipt of
confirmation of complete transmittal, (iii) if given by mail, then such notice shall be deemed
given upon the earlier of (A) receipt of such notice by the recipient or (B) three days after such
notice is deposited in first class mail, postage prepaid, and (iv) if given by an

-20-

 

internationally recognized overnight air courier, then such notice shall be deemed given one
Business Day after delivery to such carrier. All notices shall be addressed to the party to be
notified at the address as follows, or at such other address as such party may designate by ten
days’ advance written notice to the other party:

               If to the Company:

CryoPort, Inc.

20382 Barents Sea Circle

Lake Forest, California 92630

Attention: Larry G. Stambaugh

Telephone No.: (949) 470-2300

Telecopier No.: (949) 470-2306

with a copy to (which copy shall not be deemed notice):

Mark R. Ziebell

Snell & Wilmer L.L.P.

600 Anton Boulevard

Suite 1400

Costa Mesa, California 92626

Telephone No.: (714) 427-7000

Telecopier No.: (714) 724-7799

               If to an Investor:

to the address set forth on such Investor’s signature pages hereto.

          9.5 Expenses. The parties hereto shall pay their own costs and expenses in connection
herewith.

          9.6 Amendments and Waivers. Any term of this Agreement may be amended and the
observance of any term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively), only with the written consent of the Company
and each Investor who has purchased Securities in the offering contemplated hereby. Any amendment
or waiver effected in accordance with this paragraph shall be binding upon each holder of any
Securities purchased under this Agreement at the time outstanding, each future holder of all such
Securities, and the Company.

          9.7 Publicity. If the sales of Securities under this Agreement would require the
Company to report sales of unregistered securities under Item 3.02 of Form 8-K, then no later than
the fourth trading day following the Closing that triggers such filing requirement the Company
shall (i) issue a press release disclosing the consummation of the transactions contemplated by
this Agreement and (ii) file a Current Report on Form 8-K attaching the press release as well as
copies of the Transaction Documents. The Company will make such other filings and notices in the
manner and time required by the SEC.

-21-

 

          9.8 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 but shall be
interpreted as if it were written so as to be enforceable to the maximum extent permitted by
applicable law, and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction. To the extent
permitted by applicable law, the parties hereby waive any provision of law which renders any
provision hereof prohibited or unenforceable in any respect.

          9.9 Entire Agreement. This Agreement, including the Exhibits and the Disclosure
Schedules, and the other Transaction Documents constitute the entire agreement between the parties
hereof with respect to the subject matter hereof and thereof and supersede all prior agreements and
understandings, both oral and written, between the parties with respect to the subject matter
hereof and thereof.

          9.10 Further Assurances. The parties shall execute and deliver all such further
instruments and documents and take all such other actions as may reasonably be required to carry
out the transactions contemplated hereby and to evidence the fulfillment of the agreements herein
contained.

          9.11 Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement
shall be governed by, and construed in accordance with, the internal laws of the State of
California without regard to the choice of law principles thereof. Each of the parties hereto
irrevocably submits to the exclusive jurisdiction of the courts of the State of California located
in Orange County and the United States District Court for the Southern District of California for
the purpose of any suit, action, proceeding or judgment relating to or arising out of this
Agreement and the transactions contemplated hereby. Service of process in connection with any such
suit, action or proceeding may be served on each party hereto anywhere in the world by the same
methods as are specified for the giving of notices under this Agreement. Each of the parties
hereto irrevocably consents to the jurisdiction of any such court in any such suit, action or
proceeding and to the laying of venue in such court. Each party hereto irrevocably waives any
objection to the laying of venue of any such suit, action or proceeding brought in such courts and
irrevocably waives any claim that any such suit, action or proceeding brought in any such court has
been brought in an inconvenient forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A
TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN
CONSULTED SPECIFICALLY AS TO THIS WAIVER.

[signature pages follow]

-22-

 

     IN WITNESS WHEREOF, the parties have executed this Agreement or caused their duly authorized
officers to execute this Agreement as of the date or dates set forth below.

	 	 	 

	The Company:

	 	CryoPort, Inc.
	 
	 	 
	 

	 	By:             
                      
              
	 

	 	Name: Larry G. Stambaugh
	 

	 	Title: Chief Executive Officer
	 
	 	 
	 

	 	Effective: February __, 2011

[Company’s Signature Page to the Securities Purchase Agreement]

 

 

Investor:

	 	 	 

	If Investor is an individual:

	 	If Investor is an entity:

	 	 	 	 	 	 	 	 	 

	Signature:

	 	 
	 	 
	 	Entity Name:
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name (printed):

	 	 	 	 	 	Signature:	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name (printed):	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title of Signor:	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Tax Id Number:	 	 
	 	 	 	 	 	 	 	 	 

	 	 	 	 	 

	Number of Units:

	 	 	 	Units (whole numbers only)
	 

	 	 	 	 
	 
	 	 	 	 
	Per Unit Purchase Price:

	 	$0.70 	 	 
	 
	 	 	 	 
	Aggregate Purchase Price:

	 	$ 
	 	(Number of Units multiplied by
	 

	 	 	 	 
	 

	 	 	 	the Per Unit Purchase Price)

	 	 	 	 	 	 	 

	Address for Notice:

	 	 
	 	 
	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Telephone:
	 	 
	 	Note: By providing an email
	 

	 	 	 	 	 	 
	 

	 	Fax:
	 	 
	 	address, the undersigned
	 

	 	 	 	 	 	 
	 

	 	Contact Person:
	 	 
	 	hereby consents to receipt of
	 

	 	 	 	 	 	 
	 

	 	Email:
	 	 
	 	notices by email.
	 

	 	 	 	 	 	 

Basis of Investor’s Accredited Status:

o Investor is a natural person with individual or joint net worth with Investor’s spouse in excess
of $1,000,000 (exclusive of the equity in the primary residence of the Investor or the Investor’s
spouse).

o Investor is a natural person who has had individual income in excess of $200,000 in each of the
past two calendar years OR joint income with the Investor’s spouse in excess of $300,000 in each of
the past two calendar years and reasonably expects to reach such income level in the current
calendar year.

o Investor is a corporation, partnership or an organization described in 501(c)(3) of the Internal
Revenue Code with total assets in excess of $5,000,000 and was not formed with the specific purpose
of acquiring the Units.

o Investor is a trust with total assets in excess of $5,000,000, and was not formed for the
specific purpose of acquiring the Units.

o Investor is an entity in which all of the equity owners are accredited investors and Investor
shall, upon request, provide information with respect to each of the equity owners and the basis
for their status as accredited investors.

[Investor’s Signature Page to the Securities Purchase Agreement]

 

 

SECURITIES PURCHASE AGREEMENT

DISCLOSURE SCHEDULE OF CRYOPORT, INC.

SCHEDULE 4.3

     As of December 31, 2010:

     (a) The Company is authorized to issue 250,000,000 shares of Common Stock, $0.001 par value
per share.

     (b) There are 13,682,673 shares of Common Stock issued and outstanding. The number of shares
of Common Stock issued and outstanding includes shares issued as a result of the recently completed
private placement by the Company of its securities to various institutional and accredited
investors, which resulted in the issuance of an additional 5,532,418 shares of common stock.

     (c) There are 14,787,607 additional shares of common stock reserved for issuance as
follows:

	 	 	 	 	 
	 	 	Number of Shares of Common Stock
	 	 	Issuable or Reserved For Issuance
	Common stock issuable upon
conversion of outstanding
convertible debentures
	 	 	1,076,856	 
	Common stock issuable upon exercise
of outstanding warrants [1]
	 	 	12,335,825	 
	Common stock issuable upon exercise
of outstanding options or
reserved for future incentive awards
under stock incentive plans
	 	 	1,374,926	 
	 	 	 
	 
	 	 	 	 
	Total
	 	 	14,787,607	 
	 	 	 

[1] The number of shares of Common Stock issuable upon exercise of outstanding warrants
includes shares issuable as a result of a private placement by the Company of its securities
completed in October 2010 to various institutional and accredited investors, which resulted in an
additional 5,532,418 shares of common stock becoming issuable, including warrants issued in lieu of
cash fees to the placement agents.

In connection with the Company’s private placement financing conducted from August 2010 to October
2010, the Company has granted to the investors in such financing the right to participate in any
subsequent Company financing occurring within 24 months of the closing date of such financing.

 

 

SCHEDULE 4.8

On August 9, 2010, the Company entered into definitive agreements for a private placement of its
securities to certain institutional and accredited investors (the “Investors”) for aggregate gross
proceeds of $3,202,201 (approximately $2,945,822 after estimated cash offering expenses) pursuant
to the Securities Purchase Agreements between the Company and each Investor (the “Initial Purchase
Agreements”) and the Registration Rights Agreement among the Company, Maxim Group LLC, Emergent
Financial Group, Inc., and the Investors (the “Registration Rights Agreement”). On August 19, 2010,
the Company and Investors modified the Initial Purchase Agreements and the form of warrant to
remove the anti-dilution provisions that would have triggered a default under prior debenture
financings and to grant the Investors a right to participate in future private placements for a
period of 24 months following the closing (as revised, the “Purchase Agreements”). The Company
closed the private placement with respect to proceeds of approximately $3,000,000 on August 20,
2010. Pursuant to the Purchase Agreements, the Investors purchased an aggregate of 4,574,573 units
(the “Units”), with each Unit consisting of (i) one share of common stock of the Company (“Common
Stock”), and (ii) one warrant to purchase one share of Common Stock at an exercise price of $0.77
per share. In addition, pursuant to the Purchase Agreement, the Company also issued to certain
Investors who were also investors in connection with the Company’s underwritten public offering
registered on Form S-1 (File No. 333-162350), which was declared effective by the Securities and
Exchange Commission (“SEC”) on February 25, 2010, warrants to purchase in the aggregate 445,001
shares of Common Stock at an exercise price of $0.77 per share. The warrants are immediately
exercisable and have a term of five years. Maxim Group LLC and Emergent Financial Group, Inc.
served as the Company’s placement agents in this transaction and both received a customary fee of
7% of the aggregate gross proceeds received from the Investors, plus reimbursement of expenses, and
were issued a warrant to purchase 334,500 and 305,940 shares of Common Stock, respectively, at an
exercise price of $0.77 per share.

On September 2, 2010, the Company entered into an agreement with DHL Express (USA), Inc. (“DHL”)
pursuant to which the Company will provide to DHL’s customers direct access to the Company’s
web-based order entry and tracking portal to order the Company’s CryoPort Express Shipper. In
addition, DHL has agreed to provide preferred shipping rates to customers using the Company’s
CryoPort Express Shipper and portal shipping solution.

On September 10, 2010, the Company named Michael Bartholomew, 45, as Chief Commercialization
Officer.

On September 15, 2010, the Compensation Committee of the Board of Directors (the “Committee”) of
the Company approved the grant of two stock options to Larry G. Stambaugh, the Company’s Chief
Executive Officer and Chairman of the Board. The first stock option was a grant to purchase an
aggregate of 362,232 shares of the Company’s common stock at an exercise price of $0.66, the
closing price of the Company’s common stock on the date of grant, which Mr. Stambaugh agreed to
accept in lieu of the cash bonus he was due under his employment agreement. The second stock
option grant was made pursuant to Mr. Stambaugh’s employment
agreement and was a grant to purchase 420,000 shares of the Company’s common stock also at an
exercise price of $0.66 per share.

 

 

On October 14, 2010, the Company entered into definitive agreements in connection with the second
close of a private placement of its securities to certain Investors that commenced in August 2010.
In connection with the second closing of the private placement, the Company received aggregate
gross proceeds of $583,000 (approximately $539,690 after cash offering expenses) pursuant to
Purchase Agreements and the Registration Rights Agreement. Pursuant to the Purchase Agreements
executed in connection with the second closing, the Investors purchased an aggregate of 832,868
Units. Emergent Financial Group, Inc. served as the Company’s placement agent in connection with
the second closing of the private placement and received a customary fee of 7% of the aggregate
gross proceeds received from the Investors in the second closing, plus reimbursement of expenses in
the amount of $2,500, and was issued a warrant to purchase 116,602 shares of Common Stock, at an
exercise price of $0.77 per share.

Effective November 1, 2010, the Company entered into a Second Amendment to Master Consulting and
Engineering Services Agreement (the “Second Amendment”) with KLATU Networks, LLC (“KLATU”), which
amends that certain Master Consulting and Engineering Services Agreement between the parties dated
as of October 9, 2007 (the “Agreement”), as amended by that certain First Amendment to Master
Consulting and Engineering Services Agreement between the parties dated as of April 23, 2009 (the
“First Amendment”). The parties entered into the Second Amendment to clarify their mutual intent
and understanding that all license rights granted to the Registrant under the Agreement, as
amended, shall survive any termination or expiration of the Agreement.

SCHEDULE 4.12

In connection with the issuance of convertible debentures to certain institutional investors in
October 2007 and May 2008, the Company granted a first priority security interest in substantially
all of its assets, including intellectual property, to the purchasers to secure the Company’s
repayment obligations under the debentures.

The Company has invested cash in a one year restricted certificate of deposit, with a balance of
$90,858 as of September 30, 2010, which serves as collateral for borrowings under a line of credit
agreement.

SCHEDULE 4.14

     Pursuant to Mr. Larry Stambaugh’s employment agreement dated August 31, 2009, if the Company
terminates Mr. Stambaugh’s employment other than “for cause” (as defined in the agreement) or Mr.
Stambaugh terminates his employment due to a “constructive discharge” (as defined in the
agreement), then, subject to Mr. Stambaugh’s signing of a general release, Mr. Stambaugh will
receive a severance payment equal to (i) six months’ base salary, if such termination occurs during
the first twelve months of his employment, or (ii) twelve months’ base
salary if such termination occurs following the first twelve months of his employment, and, in
either instance, health care insurance coverage for one year.

 

 

     Pursuant to Mr. Bret Bollinger’s employment agreement dated January 1, 2011, in the event that
the Company terminates Mr. Bollinger’s employment without “cause” or in connection with a “change
in control” (each as defined in the employment agreement), then upon such termination, the Company
is obligated to pay to Mr. Bollinger as severance an amount equal to six months of his current base
salary.

SCHEDULE 4.17

None.

SCHEDULE 4.21

     The Company has engaged the Placement Agent for the offering of the Shares and the Warrant on
a “best efforts” basis. The Company will pay the Placement Agent an 8% commission, payable in
cash, of offering proceeds subscribed for through the solicitation efforts of the Placement Agent.
The Company will pay the Placement Agent a 3.0% finance fee, but not to exceed the sum of $120,000.
Additionally, the Company will issue the Placement Agent a warrant to purchase a number of shares
of Common Stock equal to 8% of the total number of shares of Common Stock underlying the Securities
issued with respect to subscriptions solicited by the Placement Agent. The Company will also
reimburse the Placement Agent up to $5,000 for expenses reasonably incurred relating to the
offering, including legal fees incurred by the Placement Agent in connection with the Offering.

SCHEDULE 4.26

None.

 

 

EXHIBIT
A — FORM OF WARRANT

 

 

EXHIBIT B — REGISTRATION RIGHTS AGREEMENT

 

 

EXHIBIT C — ESCROW AGENT ADDRESS FOR CHECKS AND WIRING INSTRUCTIONS

Address and Wiring Instructions are as follows:

	 	 	 	 	 

	Mailing Address for Check:
	 
	 	 	 	 
	 	 	Please make payment payable to:
	 
	 	 	 	 
	 	 	“CryoPort, Inc. Escrow Account — At Private Bank Minnesota”
	 
	 	 	 	 
	 	 	And Mail to:
	 
	 	 	 	 
	 	 	Private Bank Minnesota
	 	 	Attention: Thomas E. Cardle
	 	 	222 South 9th Street, Suite 3800
	 	 	Minneapolis, MN 55402
	 
	 	 	 	 
	Wire Instructions:
	 
	 	 	 	 
	 

	 	Account Name:
	 	CryoPort, Inc.
	 
	 	 	 	 
	 

	 	Account Number:
	 	 303 9047 
	 
	 	 	 	 
	 

	 	ABA Number:
	 	091 055 836 
	 
	 	 	 	 
	 

	 	Bank Info:
	 	Private Bank Minnesota
	 
	 	 	 	 
	 

	 	Memo:
	 	[Insert Name of Investor]

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