Document:

EX-10.1

	 	 	 	 	 

Exhibit 10.1

AGREEMENT

     This Agreement (the “Agreement”) is made as of April 2, 2009 by and among
CANARGO ENERGY CORPORATION, a Delaware Corporation (the “Issuer”), and PERSISTENCY, a
Cayman Islands limited company (the “Holder”).

     WHEREAS, the Issuer and the Holder have entered into a certain Note and Warrant
Purchase Agreement dated June 28, 2006 (the “Purchase Agreement”) relating to the 12%
Subordinated Convertible Guaranteed Notes, due June 28, 2010 (the “Subordinated Notes”) of
the Issuer;

     WHEREAS, the Holder is the holder of 100% of the issued and outstanding Subordinated
Notes;

     WHEREAS, pursuant to Section 11.7 of the Purchase Agreement, the Subordinated Notes
are convertible into common stock, par value $0.10 per share (the “Common Stock”) of the
Issuer at a price and subject to the terms and conditions of the Agreement;

     WHEREAS, the Issuer and the Holder have agreed to change certain of the terms and
conditions of the Note Purchase Agreement and the Subordinated Notes issued thereunder
applicable to the Holder’s investment in the Subordinated Notes, as set forth herein.

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

	 	1.	 	Subject to Section 2 of this Agreement and absent the prior
written consent of the Issuer, the Holder hereby agrees and covenants that
prior to July 15, 2009 it will not convert or exchange, or seek to convert or
exchange, any or all of the Subordinated Notes into shares of Common Stock of
the Issuer, or into any other security convertible
or exchangeable into shares of Common Stock of the Issuer, pursuant to Section
11.7 of the Note Agreement.
	 
	 	2.	 	Notwithstanding Section 1. of this Agreement, nothing herein
shall be deemed to prohibit the Holder from exercising its rights pursuant to
Section 11.7 of the Note Agreement in the event of:

		(a).	 	The occurrence of an Event
of Default within the meaning of Section 13 of the Purchase
Agreement occurs and all the Subordinated Notes then
outstanding become immediately due and payable as provided in
Section 14.1 of the Purchase Agreement; or
	 
	 	(b)	 	The Occurrence of a Change
of Control within the meaning of Section 10.6(g) of the
Purchase Agreement, other than a Change of Control resulting
from one or more of the transactions set forth in Section
10.6(g)(b) of the Purchase Agreement to which the Holder or
an affiliate of the Holder is a party.

 

 

	 	3.	 	Except as modified hereby, all of the terms and conditions of
the Purchase Agreement shall remain in full force and effect. Capitalized
terms not defined herein shall have the meanings given them in the Purchase
Agreement.
	 
	 	4.	 	This Agreement shall become effective immediately upon the
execution of this Agreement by each of the parties hereto and shall inure to
the benefit of and shall be binding upon the Holder and its Affiliates.

     WITNESS the due execution hereof as of the day and year first written above.

	 	 	 	 	 	 	 	 	 	 	 
	CANARGO ENERGY CORPORATION	 	 	 	PERSISTENCY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	 	 	Name:	 	 
	 

	 	Title:
	 	 	 	 	 	Title:	 	 

2EX-10.1

Exhibit 10.1

PURCHASE AGREEMENT

     This Purchase Agreement (this “Agreement”), dated as of April 3, 2009, is entered into
by and between BioMimetic Therapeutics, Inc., a Delaware corporation (the “Company”) and
InterWest Partners X, LP, a California limited partnership (the “Purchaser”).

     WHEREAS, the Company proposes to commence an offering to each of the holders of its common
stock, $0.001 par value (the “Common Stock”), of record as of the close of business on the
record date to be determined by the Company’s Board of Directors (the “Record Date”), of
non-transferable rights (the “Rights”) to subscribe for and purchase additional shares of
Common Stock (the “New Shares”) at a subscription price of $8.50, for an aggregate offering
amount of approximately $17,000,000 (the “Subscription Price” and, such offering, the
“Rights Offering”);

     WHEREAS, in lieu of participation in the Rights Offering, the Purchaser wishes to purchase,
and the Company wishes to sell, upon the terms and conditions stated in this Agreement, Shares (as
defined below) of Common Stock from the Company; and

     WHEREAS, the Company and the Purchaser are executing and delivering this Agreement in reliance
upon the exemption from securities registration afforded by Section 4(2) of the Securities Act of
1933, as amended (the “Securities Act”), and Rule 506 of Regulation D (“Regulation
D”) as promulgated by the United States Securities and Exchange Commission (the
“Commission”) under the Securities Act.

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants contained in this
Agreement, the Company and the Purchaser agree as follows:

     SECTION 1. Authorization of Sale of the Shares. Subject to the terms and conditions
of this Agreement, the Company has authorized the issuance and sale of up to 941,177 shares (the
“Shares”) of Common Stock of the Company.

     SECTION 2. Agreement to Sell and Purchase the Shares. At the Closing (as defined in
Section 3), the Company will, subject to the terms of this Agreement, issue and sell to the
Purchaser, and the Purchaser will buy from the Company, upon the terms and conditions hereinafter
set forth, 941,177 Shares of Common Stock for a purchase price per Share equal to $8.50.

     SECTION 3. Delivery of the Shares at the Closing. The completion of the purchase and
sale of the Shares (the “Closing”) shall occur at the offices of Morrison & Foerster LLP,
1290 Avenue of the Americas, New York, New York 10104, within one business day following the date
on which the last of the conditions for Closing set forth in this Section 3 shall have been
satisfied or waived in accordance with this Agreement, or on such later date or at such different
location or remotely by facsimile transmission or other electronic means as the parties shall agree
in writing (the “Closing Date”).

     At the Closing, the Purchaser shall deliver, in immediately available funds, $8,000,004.50 by
wire transfer to an account designated by the Company and the Company shall deliver to the
Purchaser one or more stock certificates registered in the name of the Purchaser, or

 

 

in such nominee name(s) as designated by the Purchaser in writing, representing, in the
aggregate, 941,177 shares of Common Stock, and bearing an appropriate legend referring to the fact
that the Shares were sold in reliance upon the exemption from registration under the Securities Act
provided by Section 4(2) thereof and Rule 506 thereunder. The name(s) in which the stock
certificates are to be registered are set forth in the Stock Certificate Questionnaire attached
hereto as part of Appendix I.

     The Company’s obligation to complete the purchase and sale of the Shares and deliver such
stock certificate(s) to the Purchaser at the Closing shall be subject to the following conditions,
any one or more of which may be waived by the Company: (a) receipt by the Company of same-day funds
in the full amount of the purchase price for the Shares being purchased hereunder; (b) the accuracy
of the representations and warranties made by the Purchaser in Section 5 hereof shall be
true and correct in all material respects as of such Closing, except that any such representations
and warranties shall be true and correct in all respects where such representation and warranty is
qualified with respect to materiality; and (c) the fulfillment of those undertakings of the
Purchaser contained in this Agreement that are required to be performed or complied with by the
Purchaser on or before such Closing.

     The Purchaser’s obligation to accept delivery of such stock certificate(s) and to pay for the
Shares evidenced thereby shall be subject to the following conditions: (a) the accuracy of the
representations and warranties made by the Company in Section 4 hereof shall be true and
correct in all material respects as of such Closing, except that any such representations and
warranties shall be true and correct in all respects where such representation and warranty is
qualified with respect to materiality; (b) delivery to the Purchaser by counsel to the Company of a
legal opinion of such counsel, dated as of the Closing Date and in the form attached hereto as
Exhibit B, executed by such counsel and addressed to the Purchaser; (c) receipt by the
Purchaser of a certificate executed by the chief executive officer
and the general counsel of the Company, dated as of the Closing Date, to the effect that the
representations and warranties of the Company set forth herein are true and correct as of the date
of this Agreement and as of such Closing Date (except for representations and warranties that speak
as of a specific date, which representations and warranties shall be true and correct as of such
date) and that the Company has complied with all the agreements and satisfied all the conditions
herein on its part to be performed or satisfied on or prior to such Closing Date; (d) the
fulfillment of those undertakings of the Company contained in this Agreement that are required to
be performed or complied with by the Company on or before such Closing; and (e) receipt by the
Purchaser of such other documents as the Purchaser shall reasonably request. The Purchaser’s
obligations hereunder are expressly not conditioned on the purchase by any other persons or
entities of any securities of the Company.

     SECTION 4. Representations, Warranties and Covenants of the Company. The Company
hereby represents and warrants to, and covenants with, the Purchaser as follows:

               4.1 Organization and Qualification. The Company is a corporation duly incorporated,
validly existing and in good standing under the laws of its jurisdiction of incorporation with
corporate power and authority to own or lease its properties and conduct its business as described
in the SEC Reports (as defined below) and the Company is qualified to do business as a foreign
corporation in each jurisdiction in which qualification is required, except

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where failure to so qualify would not have a Material Adverse Effect (as defined herein). The
Company’s subsidiaries (each a “Subsidiary” and collectively the “Subsidiaries”)
are listed on Exhibit A to this Agreement and are the only subsidiaries, direct or
indirect, of the Company. Each Subsidiary is a direct or indirect wholly owned subsidiary of the
Company. Each Subsidiary is duly organized, validly existing and in good standing under the laws
of its jurisdiction of incorporation, with corporate power and authority to own or lease its
properties and conduct its business as currently carried out, and is qualified to do business as a
foreign corporation in each jurisdiction in which qualification is required, except where failure
to so qualify would not have a Material Adverse Effect.

               4.2 Reporting Company; Form S-3. The Company is not an “ineligible issuer” (as
defined in Rule 405 promulgated under the Securities Act) and is eligible to register the Shares
for resale by the Purchaser on a registration statement on Form S-3 under the Securities Act. The
Company is subject to the reporting requirements of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), and has filed all reports required thereby. Provided the Purchaser
is not deemed to be an underwriter with respect to any shares, to the Company’s knowledge, there
exist no facts or circumstances (including without limitation any required approvals or waivers or
any circumstances that may delay or prevent the obtaining of accountant’s consents) that reasonably
could be expected to prohibit or delay the preparation and filing of a registration statement on
Form S-3 (the “Registration Statement”) that will be available for the resale of the Shares
by the Purchaser.

               4.3 Authorized Capital Stock. As of the date hereof, the authorized, issued and
outstanding share capital of the Company is as set forth on Schedule 4.3 hereto. The
issued and outstanding shares of Common Stock have been duly authorized and validly issued, are
fully paid and nonassessable, have been issued in compliance with all federal and state securities
laws, were not issued in violation of or subject to any preemptive rights or other rights to
subscribe for or purchase securities. Other than employee stock options, the Company does not have
outstanding any options to purchase, or any preemptive rights or other rights to subscribe for or
to purchase, any securities or obligations convertible into, or any contracts or commitments to
issue or sell, shares of its capital stock or any such options, rights, convertible securities or
obligations. With respect to each of the Subsidiaries (i) all the issued and outstanding shares of
such Subsidiary’s capital stock have been duly authorized and validly issued, are fully paid and
nonassessable, have been issued in compliance with all federal and state securities laws, were not
issued in violation of or subject to any preemptive rights or other rights to subscribe for or
purchase securities, and are owned by the Company free and clear of all liens, encumbrances and
equities and claims, and (ii) there are no outstanding options to purchase, or any preemptive
rights or other rights to subscribe for or to purchase, any securities or obligations convertible
into, or any contracts or commitments to issue or sell, shares of such Subsidiary’s capital stock
or any such options, rights, convertible securities or obligations.

               4.4 Issuance, Sale and Delivery of the Shares. The Shares have been duly authorized
and, when issued, delivered and paid for in the manner set forth in this Agreement, will be validly
issued, fully paid and nonassessable. No preemptive rights or other rights to subscribe for or
purchase any shares of Common Stock of the Company exist with respect to the issuance and sale of
the Shares by the Company pursuant to this Agreement.

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               4.5 Due Execution, Delivery and Performance of the Agreements. The Company has full
legal right, corporate power and authority to enter into this Agreement and perform the
transactions contemplated hereby. This Agreement has been duly authorized, executed and delivered
by the Company. This Agreement constitutes a legal, valid and binding agreement of the Company,
enforceable against the Company in accordance with its terms, except as enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general
application relating to or affecting the enforcement of creditors’ rights and the application of
equitable principles relating to the availability of remedies, and except as rights to indemnity or
contribution, including but not limited to, indemnification provisions set forth in Section 7.3 of
this Agreement may be limited by federal or state securities law or the public policy underlying
such laws. The execution and performance of this Agreement by the Company and the consummation of
the transactions herein contemplated will not violate any provision of the certificate of
incorporation or bylaws of the Company or the organizational documents of any Subsidiary and will
not result in the creation of any lien, charge, security interest or encumbrance upon any assets of
the Company or any Subsidiary pursuant to the terms or provisions of, or will not conflict with,
result in the breach or violation of, or constitute, either by itself or upon notice or the passage
of time or both, a default under any agreement, mortgage, deed of trust, lease, franchise, license,
indenture, permit or other instrument to which any of the Company or any Subsidiary is a party or
by which any of the Company or any Subsidiary or their respective properties may be bound or
affected and in each case that would have a Material Adverse Effect or, to the Company’s knowledge,
any statute or any authorization, judgment, decree, order, rule or regulation of any court or any
regulatory body, administrative agency or other governmental agency or body applicable to the
Company or any Subsidiary or any of their respective properties. No consent, approval,
authorization or other order of any court, regulatory body, administrative agency or other
governmental agency or body is required for the execution and delivery of this Agreement or the
consummation of the transactions contemplated by this Agreement, except for compliance with the
Blue Sky laws and federal securities laws applicable to the offering of the Shares. For the
purposes of this Agreement the term “Material Adverse Effect” shall mean the occurrence,
either individually or in the aggregate, of any material adverse effect on the earnings, business,
management, properties, assets, rights, operations, condition (financial or otherwise) or prospects
of the Company and of the Subsidiaries taken as a whole, except any of the following, either alone
or in combination, shall not be deemed a Material Adverse Effect: (i) effects caused by changes or
circumstances affecting general market conditions in the U.S. economy or that are generally
applicable to the industry in which the Company operates, provided that such effects do not
adversely affect the Company in a disproportionate manner, (ii) effects resulting from or relating
to the announcement or disclosure of the sale of the Shares or other transactions contemplated by
this Agreement, or (iii) effects caused by any event, occurrence or condition resulting from or
relating to the taking of any action in accordance with this Agreement.

               4.6 Accountants. Ernst & Young LLP, who has expressed its opinion with respect to the
consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the
year ended December 31, 2008, which will be incorporated by reference into the Registration
Statement and the Prospectus (as defined herein) that forms a part thereof, are registered
independent public accountants as required by the Securities Act and the rules and regulations
promulgated thereunder (the “1933 Act Rules and Regulations”) and by the rules of the
Public Company Accounting Oversight Board.

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               4.7 No Defaults or Consents. Neither the execution, delivery and performance of this
Agreement by the Company nor the consummation of any of the transactions contemplated hereby
(including, without limitation, the issuance and sale by the Company of the Shares) will give rise
to a right to terminate or accelerate the due date of any payment due under, or conflict with or
result in the breach of any term or provision of, or constitute a default (or an event which with
notice or lapse of time or both would constitute a default) under, except such defaults that
individually or in the aggregate would not cause a Material Adverse Effect, or require any consent
or waiver under, or result in the execution or imposition of any lien, charge or encumbrance upon
any properties or assets of the Company or its subsidiaries pursuant to the terms of, any
indenture, mortgage, deed of trust or other agreement or instrument to which the Company or any of
its subsidiaries is a party or by which either the Company or its subsidiaries or any of their
properties or businesses is bound, or any franchise, license, permit, judgment, decree, order,
statute, rule or regulation applicable to the Company or any of its subsidiaries or violate any
provision of the charter or by-laws of the Company or any of its subsidiaries, except for such
consents or waivers which have already been obtained and are in full force and effect.

               4.8 Contracts. The material contracts to which the Company is a party that are filed
pursuant to the Securities Act or the Exchange Act, with the Commission by the Company have been
duly and validly authorized, executed and delivered by the Company and constitute the legal, valid
and binding agreements of the Company, enforceable by and against it in accordance with their
respective terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization or other similar laws relating to enforcement of creditors’ rights
generally, and general equitable principles relating to the availability of remedies, and except as
rights to indemnity or contribution may be limited by federal or state securities laws and the
public policy underlying such laws.

               4.9 No Actions. There are no legal or governmental actions, suits or proceedings
pending or, to the Company’s knowledge, threatened against the Company or any Subsidiary before or
by any court, regulatory body or administrative agency or any other governmental agency or body,
domestic, or foreign, which actions, suits or proceedings, individually or in the aggregate, might
reasonably be expected to have a Material Adverse Effect; and no labor disturbance by the employees
of the Company exists or, to the Company’s knowledge, is imminent, that might reasonably be
expected to have a Material Adverse Effect. Neither the Company nor any Subsidiary is a party to
or subject to the provisions of any injunction, judgment, decree or order of any court, regulatory
body, administrative agency or other governmental agency or body that might have a Material Adverse
Effect.

               4.10 Properties. The Company and each Subsidiary has good and marketable title to all
the properties and assets described as owned by it in the consolidated financial statements, free
and clear of all liens, mortgages, pledges, or encumbrances of any kind except (i) those, if any,
reflected in such consolidated financial statements, or (ii) those that are not material in amount
and do not adversely affect the use made and proposed to be made of such property by the Company or
its Subsidiaries. The Company and each Subsidiary holds its leased properties under valid and
binding leases. The Company and any Subsidiary owns or leases all such properties as are necessary
to its operations as now conducted.

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               4.11 No Material Adverse Change. Except as set forth on Schedule 4.11, since December
31, 2008, (i) the Company and its Subsidiaries have not incurred any material liabilities or
obligations, indirect, or contingent, or entered into any material agreement or other transaction
that is not in the ordinary course of business or that could reasonably be expected to result in a
material reduction in the future earnings of the Company; (ii) the Company and its Subsidiaries
have not sustained any material loss or interference with their businesses or properties from fire,
flood, windstorm, accident or other calamity not covered by insurance; (iii) the Company and its
Subsidiaries have not paid or declared any dividends or other distributions with respect to their
capital stock and none of the Company or any Subsidiary is in default in the payment of principal
or interest on any outstanding debt obligations; (iv) there has not been any change in the capital
stock of the Company or its Subsidiaries other than the sale of the Shares hereunder and shares or
options issued pursuant to employee equity incentive plans or purchase plans approved by the
Company’s Board of Directors, or indebtedness material to the Company or its Subsidiaries (other
than in the ordinary course of business and any required scheduled payments); and (v) there has not
occurred any event that has caused or could reasonably be expected to cause a Material Adverse
Effect.

               4.12 Intellectual Property. To the Company’s knowledge, the Company owns, or has
obtained valid and enforceable licenses for, or other legal rights to use, the inventions, patent
applications, patents, utility models, industrial property, trademarks (both registered and
unregistered), trade names, service marks (both registered and unregistered), service names,
copyrights, trade secrets, customer lists, designs, manufacturing or other processes, computer
software, systems, data compilations, research results, know-how or other proprietary rights and
information owned or licensed by the Company, or used in the Company’s business as presently
conducted with respect to the research, development, testing and marketing of Augment Bone Graft,
Augment Injectable Bone Graft, and the other product candidates (collectively, the
“Products”), except as set forth on Schedule 4.12 or where the failure to own,
license or otherwise enjoy such rights would not, individually or in the aggregate, have a Material
Adverse Effect (collectively, “Intellectual Property”). To the Company’s knowledge, all of
such patents, registered trademarks and registered copyrights owned or licensed by the Company have
been duly registered in, filed in or issued by the United States Patent and Trademark Office (the
“USPTO”), the United States Copyright Office or the corresponding offices of other
jurisdictions and have been maintained and renewed in accordance with all applicable provisions of
law and administrative regulations in the United States and all such other jurisdictions, except
where the failure to do so, individually or in the aggregate, would not have a Material Adverse
Effect. The Company has taken all steps required in accordance with sound business practice and
business judgment to establish and preserve its ownership of or rights to all material Intellectual
Property. Except as set forth on Schedule 4.12, to the Company’s knowledge, there are no
third parties who have or will be able to establish rights to any Intellectual Property related to
the Products. To the Company’s knowledge, there is no infringement by third parties of any of the
Intellectual Property. Except as set forth on Schedule 4.12, to the Company’s knowledge,
there is no pending or threatened action, suit, proceeding or claim by others challenging the
Company’s rights in or to any Intellectual Property, and the Company is unaware of any facts that
could form a reasonable basis for any such action, suit, proceeding or claim. Except as set forth
on Schedule 4.12, there is no pending, or to the Company’s knowledge, threatened action,
suit, proceeding or claim by others challenging the validity, enforceability or scope of any
Intellectual Property, and the Company is unaware of any

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facts that could form a reasonable basis for any such action, suit, proceeding or claim. To
the Company’s knowledge, the Company has not formerly and presently is not infringing or violating
the Intellectual Property of any other person. Except as set forth on Schedule 4.12, there
is no pending, or to the Company’s knowledge, threatened action, suit, proceeding or claim by
another that the Company infringes or otherwise violates any Intellectual Property, and the Company
is unaware of any facts that could form a reasonable basis for any such action, suit, proceeding or
claim. To the Company’s knowledge, the manufacture, use, sale, offer for sale or import of any
Product by the Company would not infringe any claim of any patent of another, except that of a
licensor who has granted the Company a license under any such patent. No proceeding charging the
Company with infringement of any adversely held Intellectual Property has been filed. The Company
is in compliance with the terms of all agreements pursuant to which Intellectual Property has been
licensed to the Company. All such agreements are in full force and effect and there is no default
by the Company thereto, and to the Company’s knowledge, no notice of default thereunder has been
threatened against the Company. To the Company’s knowledge, sublicenses granted to others are now
in compliance with the terms of all agreements pursuant to which Intellectual Property has been
sublicensed by the Company. To the Company’s knowledge, all such agreements are in full force and
effect and there is no default by any sublicensee thereto. To the Company’s knowledge, there is no
patent or patent application containing claims that interfere with the issued or pending claims of
any patent owned by or licensed to the Company. The Company is not aware of any fact from which it
could reasonably be inferred that an individual associated with the filing and prosecution of any
patent owned by or licensed to the Company failed to disclose to the USPTO all information known to
that individual to be material to patentability. The Products fall within the scope of one or more
claims of one or more patents owned by or licensed to the Company. Upon the making, selling,
offering for sale or importing into the United States of any product covered by one or more claims
of a United States patent owned or licensed by the Company, the Company will comply with the
marking and notice requirements of 35 U.S.C. § 287(a).

               4.13 Compliance. The Company has all necessary licenses, authorizations, consents and
approvals and has made all necessary filings required under any federal, state, local or foreign
law, regulation or rule, and has obtained all necessary licenses, authorizations, consents and
approvals from other persons, in order to conduct its business, except where the absence of such
license, authorization, consent, approval or filing would not, individually or in the aggregate,
have a Material Adverse Effect. The Company is not in violation of, or in default under, and has
not received notice of any proceedings relating to revocation or modification of, any such license,
authorization, consent or approval or any federal, state, local or foreign law, regulation or rule
or any decree, order or judgment applicable to the Company, except where such violation, default,
revocation or modification would not, individually or in the aggregate, have a Material Adverse
Effect. None of the Company nor its Subsidiaries has been advised, nor do any of them have any
reason to believe, that it is not conducting business in compliance with all applicable laws, rules
and regulations of the jurisdictions in which it is conducting business, including, without
limitation, all applicable local, state and federal environmental laws and regulations, except
where failure to be so in compliance would not have a Material Adverse Effect.

               4.14 Taxes. The Company and each Subsidiary has filed on a timely basis (giving
effect to extensions) all required federal, state and foreign income and franchise tax

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returns and has paid or accrued all taxes shown as due thereon, and none of the Company or any
subsidiary has knowledge of a tax deficiency that has been or might be asserted or threatened
against it that could have a Material Adverse Effect. All tax liabilities accrued through the date
hereof have been adequately provided for on the books of the Company.

               4.15 Transfer Taxes. On the Closing Date, all stock transfer or other taxes (other
than income taxes) that are required to be paid in connection with the sale and transfer of the
Shares to be sold to the Purchaser hereunder will have been, fully paid or provided for by the
Company and all laws imposing such taxes will have been fully complied with.

               4.16 Investment Company. The Company is not an “investment company” or an “affiliated
person” of, or “promoter” or “principal underwriter” for an investment company, within the meaning
of the Investment Company Act of 1940, as amended, and the rules and regulations of the Commission
promulgated thereunder.

               4.17 Offering Materials. Each of the Company, its directors and officers has not
distributed and will not distribute prior to the Closing Date any offering material, including any
“free writing prospectus” (as defined in Rule 405 promulgated under the Securities Act), in
connection with the offering and sale of the Shares.

               4.18 Insurance. The Company maintains insurance underwritten by insurers of
recognized financial responsibility, of the types and in the amounts that the Company reasonably
believes is adequate for its business, including, but not limited to, insurance covering all real
and personal property owned or leased by the Company against theft, damage, destruction, acts of
vandalism and all other risks customarily insured against, with such deductibles as are customary
for companies in the same or similar business, all of which insurance is in full force and effect.

               4.19 Price of Common Stock. Neither the Company nor any Subsidiary, nor, to the
Company’s knowledge, any of their respective directors, officers, affiliates or controlling
persons, has taken, and will not take, directly or indirectly, any action designed to cause or
result in, or that has constituted or that might reasonably be expected to constitute, the
stabilization or manipulation of the price of the shares of the Common Stock to facilitate the sale
or resale of the Shares.

               4.20 Non-Public Information. The Company has not disclosed to the Purchaser
information that would constitute material non-public information as of the Closing Date other than
the existence of the transaction contemplated hereby and the Rights Offering.

               4.21 Off-Balance Sheet Arrangements. There is no transaction, arrangement or other
relationship between the Company and an unconsolidated or other off-balance sheet entity that is
required to be disclosed by the Company in its Exchange Act filings and is not so disclosed or that
otherwise would be reasonably likely to have a Material Adverse Effect. There are no such
transactions, arrangements or other relationships with the Company that may create contingencies or
liabilities that are not otherwise disclosed by the Company in its Exchange Act filings.

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               4.22 Governmental Permits, Etc. The Company and each Subsidiary has all franchises,
licenses, certificates and other authorizations from such federal, state or local government or
governmental agency, department or body that are currently necessary for the operation of the
business of the Company as currently conducted, except where the failure to possess currently such
franchises, licenses, certificates and other authorizations is not reasonably expected to have a
Material Adverse Effect. Neither the Company nor any Subsidiary has received any notice of
proceedings relating to the revocation or modification of any such permit that, if the subject of
an unfavorable decision, ruling or finding, could reasonably be expected to have a Material Adverse
Effect.

               4.23 Financial Statements. The consolidated financial statements of the Company and
the related notes and schedules thereto included in its Exchange Act filings fairly present the
financial position, results of operations, stockholders’ equity and cash flows of the Company and
its consolidated Subsidiaries at the dates and for the periods specified therein. Such financial
statements and the related notes and schedules thereto have been prepared in accordance with
generally accepted accounting principles consistently applied throughout the periods involved
(except as otherwise noted therein) and all adjustments necessary for a fair presentation of
results for such periods have been made; provided, however, that the unaudited
financial statements are subject to normal year-end audit adjustments (which are not expected to be
material) and do not contain all footnotes required under generally accepted accounting principles.

               4.24 Listing Compliance. The Company is in compliance with the requirements of the
NASDAQ Global Market for continued listing of the Common Stock thereon. The Company has taken no
action designed to, or likely to have the effect of, terminating the registration of the Common
Stock under the Exchange Act or the listing of the Common Stock on the NASDAQ Global Market, nor
has the Company received any notification that the Commission or the NASDAQ Global Market is
contemplating terminating such registration or listing. The transactions contemplated by this
Agreement will not contravene the rules and regulations of the NASDAQ Global Market. The Company
will comply with all requirements of the NASDAQ Global Market with respect to the issuance of the
Shares and shall cause the Shares to be listed on the NASDAQ Global Market and listed on any other
exchange on which the Company’s common stock is listed on or before the Closing Date.

               4.25 Internal Accounting Controls. The Company maintains a system of internal
accounting controls sufficient to provide reasonable assurances that (i) transactions are executed
in accordance with management’s general or specific authorization; (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with generally accepted
accounting principles and to maintain accountability for assets; (iii) access to assets is
permitted only in accordance with management’s general or specific authorization; and (iv) the
recorded accountability for assets is compared with existing assets at reasonable intervals and
appropriate action is taken with respect to any differences. The Company has disclosure controls
and procedures (as defined in Rules 13a-14 and 15d-14 under the Exchange Act) that are designed to
ensure that material information relating to the Company is made known to the Company’s principal
executive officer and the Company’s principal financial officer or persons performing similar
functions. The Company is otherwise in compliance in all material respects

9

 

with all applicable provisions of the Sarbanes-Oxley Act of 2002, as amended and the rules and
regulations promulgated thereunder.

               4.26 Foreign Corrupt Practices. Neither the Company, nor any Subsidiary, nor, to the
knowledge of the Company, any director, officer, agent, employee or other Person acting on behalf
of the Company or any Subsidiary has, in the course of its actions for, or on behalf of, the
Company (i) used any corporate funds for any unlawful contribution, gift, entertainment or other
unlawful expenses relating to political activity; (ii) made any direct or indirect unlawful payment
to any foreign or domestic government official or candidate for any federal, state or foreign
office in violation of any law; (iii) violated or is in violation of any provision of the U.S.
Foreign Corrupt Practices Act of 1977, as amended; or (iv) made any unlawful bribe, rebate, payoff,
influence payment, kickback or other unlawful payment to any foreign or domestic government
official or employee.

               4.27 Employee Relations. Neither the Company nor any Subsidiary is a party to any
collective bargaining agreement or employs any member of a union. The Company and each Subsidiary
believe that their relations with their employees are good. The Company is not engaged in any
unfair labor practice except for matters which would not, individually or in the aggregate, have a
Material Adverse Effect, (i) there is (A) no unfair labor practice complaint pending or, to the
Company’s knowledge, threatened against the Company before the National Labor Relations Board, and
no grievance or arbitration proceeding arising out of or under collective bargaining agreements is
pending or threatened, (B) no strike, labor dispute, slowdown or stoppage pending or, to the
Company’s knowledge, threatened against the Company and (C) no union representation dispute
currently existing concerning the employees of the Company, and (ii) to the Company’s knowledge,
(A) no union organizing activities are currently taking place concerning the employees of the
Company and (B) there has been no violation of any federal, state, local or foreign law relating to
discrimination in the hiring, promotion or pay of employees or any applicable wage or hour laws.
No executive officer of the Company (as defined in Rule 501(f) promulgated under the Securities
Act) has notified the Company that such officer intends to leave the Company or otherwise terminate
such officer’s employment with the Company. No executive officer of the Company, to the knowledge
of the Company, is, or is now expected to be, in violation of any material term of any employment
contract, confidentiality, disclosure or proprietary information agreement, non-competition
agreement, or any other agreement or any restrictive covenant, and the continued employment of each
such executive officer does not subject the Company or any Subsidiary to any liability with respect
to any of the foregoing matters.

               4.28 Environmental Matters. The Company and its properties, assets and operations is
and has been in compliance with, and holds all permits, authorizations and approvals required
under, Environmental Laws (as defined below), except to the extent that failure to so comply or to
hold such permits, authorizations or approvals would not, individually or in the aggregate, have a
Material Adverse Effect; there are no past, present or, to the Company’s knowledge, reasonably
anticipated future events, conditions, circumstances, activities, practices, actions, omissions or
plans that could reasonably be expected to, individually or in the aggregate, have a Material
Adverse Effect or to interfere with or prevent material compliance by the Company with
Environmental Laws; except as would not, individually or in the aggregate, have a Material Adverse
Effect, the Company (i) to the

10

 

Company’s knowledge is not the subject of any investigation, (ii) has not received any notice
or claim, (iii) is not a party to or affected by any pending or to the Company’s knowledge
threatened action, suit or proceeding, nor, to the best of the Company’s knowledge, is there any
basis for any such suit or proceeding, (iv) is not bound by any judgment, decree or order, (v) has
not entered into any agreement, in each case relating to any alleged violation of any Environmental
Law or any actual or alleged release or threatened release or cleanup at any location of any
Hazardous Materials (as defined below), (vi) has not arranged for the disposal of any Hazardous
Material at, or transported any Hazardous Material to, any site for which the Company is or may be
liable except by a licensed contractor in accordance with applicable laws, (vii) is not bound by
any lien, nor is any lien reasonably expected to be recorded on the property or (viii) to the
Company’s knowledge, it does not currently own or lease or has not previously owned or leased any
property that contains or contained or includes or included any asbestos, polychlorinated
biphenyls, or any underground storage tanks, piping, or sumps (or other underground structures)
which contain or contained Hazardous Materials or contains or contained any environmental
conditions (other than resulting from the fact that the property is located on a cemetery),
including, without limitation, any wetlands or endangered species, that will impede use or
redevelopment of such property (as used herein, “Environmental Law” means any federal,
state, local or foreign law, statute, ordinance, rule, regulation, order, decree, judgment,
injunction, permit, license, authorization or other binding requirement, or common law, relating to
health, safety or the protection, cleanup or restoration of the environment or natural resources,
including but not limited to those relating to the distribution, processing, generation, treatment,
storage, disposal, transportation, other handling or release or threatened release of Hazardous
Materials, and “Hazardous Materials” means any material (including, without limitation,
pollutants, contaminants, hazardous or toxic substances, wastes, asbestos, silica, mixed dust,
bacteria, mold or fungi) that is regulated by or may give rise to liability under any Environmental
Law); other than as set forth on Schedule 4.28, there have been no environmental studies,
investigations, reports or assessments concerning the Company or any currently or previously owned
or leased properties within its possession or control.

               4.29 Money Laundering Laws. The operations of the Company and the Subsidiaries are
and have been conducted at all times in compliance with applicable financial record-keeping and
reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended,
applicable money laundering statutes and applicable rules and regulations thereunder (collectively,
the “Money Laundering Laws”), and no action, suit or proceeding by or before any court or
governmental agency, authority or body or any arbitrator involving the Company or any Subsidiary
with respect to the Money Laundering Laws is pending or, to the Company’s knowledge, threatened.

               4.30 OFAC. Neither the Company nor, to the Company’s knowledge, any director,
officer, agent, employee or affiliate of the Company is currently subject to any U.S. sanctions
administered by the Office of Foreign Assets Control of the U.S. Treasury Department
(“OFAC”); and the Company will not directly or indirectly use the proceeds of the offering,
or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture
partner or other person or entity, for the purpose of financing the activities of any person
currently subject to any U.S. sanctions administered by OFAC.

11

 

               4.31 ERISA. The Company and each Subsidiary is in compliance in all material respects
with all presently applicable provisions of the Employee Retirement Income Security Act of 1974, as
amended, including the regulations and published interpretations thereunder (“ERISA”);
neither the Company nor any Subsidiary has ever maintained any “defined benefit plan” (as defined
in Section 3(35) of ERISA).

               4.32 Integration; Other Issuances of Shares. Neither the Company nor its subsidiaries
or any affiliates, nor any Person acting on its or their behalf, has issued any shares of Common
Stock or shares of any series of preferred stock or other securities or instruments convertible
into, exchangeable for or otherwise entitling the holder thereof to acquire shares of Common Stock
which would be integrated with the sale of the Shares to the Purchaser for purposes of the
Securities Act or of any applicable stockholder approval provisions, including, without limitation,
under the rules and regulations of any exchange or automated quotation system on which any of the
securities of the Company are listed or designated, nor will the Company or its subsidiaries or
affiliates take any action or steps that would require registration of any of the Shares under the
Securities Act or cause the offering of the Shares to be integrated with other offerings. Assuming
the accuracy of the representations and warranties of the Purchaser, the offer and sale of the
Shares by the Company to the Purchaser pursuant to this Agreement will be exempt from the
registration requirements of the Securities Act.

               4.33 No General Solicitation. Neither the Company nor, to the Company’s knowledge,
any person acting on behalf of the Company has offered or sold any of the Shares by any form of
general solicitation or general advertising.

               4.34 Acknowledgment Regarding Purchaser’s Purchase of Shares. The Company
acknowledges and agrees that the Purchaser is acting solely in the capacity of an arm’s length
purchaser with respect to the Transaction Documents and the transactions contemplated hereby and
thereby.  The Company further acknowledges that the Purchaser is not acting as a financial advisor
or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents
and the transactions contemplated thereby and any advice given by the Purchaser or any of its
respective representatives or agents in connection with the Transaction Documents and the
transactions contemplated thereby is merely incidental to the Purchaser’s purchase of the Shares. 
The Company further represents to the Purchaser that the Company’s decision to enter into this
Agreement and the other Transaction Documents has been based solely on the independent evaluation
of the transactions contemplated hereby by the Company and its representatives.

               4.35 No Additional Agreements. The Company does not have any agreement or
understanding with the Purchaser with respect to the transactions contemplated by the Transaction
Documents other than as specified in the Transaction Documents.

               4.36 No Brokers’ Fees. The Company has not incurred any liability for any finder’s or
broker’s fee or agent’s commission in connection with the execution and delivery of this Agreement
or the consummation of the transactions contemplated hereby.

               4.37 Clinical Trials. The preclinical tests, clinical trials and other studies, tests
and research conducted by or on behalf of or sponsored by the Company that are

12

 

described in, or the results of which are referred to in, the SEC Reports were and, if still
pending, are to the Company’s knowledge being conducted in all material respects in accordance with
protocols filed with the appropriate regulatory authorities for each such test or trial and in
accordance with all statutes, laws, rules and regulations, as the case may be, and with standard
medical and scientific research procedures except where such failure to comply would not have a
Material Adverse Effect; the Company has not received any notices or other correspondence from the
FDA or any committee thereof or from any other U.S. or foreign government or drug or medical device
regulatory agency requiring the termination or suspension of any product or clinical trials that
are described or referred to in the SEC Reports; the Company has not notified the FDA of any
“unanticipated adverse device effects” as defined in 21 CFR 812.3(s) with respect to any product,
clinical or pre-clinical studies, tests or research that are described in the SEC Reports or the
results of which are referred to in the SEC Reports, and the Company has operated and currently is
in compliance in all material respects with all applicable rules and regulations of the FDA and
comparable foreign drug or medical device regulatory agencies outside of the United States except
where such failure to comply would not have a Material Adverse Effect.

     SECTION 5. Representations, Warranties and Covenants of the Purchaser. The Purchaser
represents and warrants to, and covenants with, the Company that:

               5.1 Experience. (i) The Purchaser, either alone or with its representatives, is
knowledgeable, sophisticated and experienced in financial and business maters, in making, and is
qualified to make, decisions with respect to investments in shares representing an investment
decision like that involved in the purchase of the Shares, including investments in securities
issued by the Company and comparable entities, has the ability to bear the economic risks of an
investment in the Shares and has requested, received, reviewed and considered all information it
deems relevant in making an informed decision to purchase the Shares; (ii) the Purchaser is
acquiring the Shares in the ordinary course of its business and for its own account for investment
only and with no present intention of distributing any of such Shares or any arrangement or
understanding with any other persons regarding the distribution of such Shares (this representation
and warranty not limiting the Purchaser’s right to sell pursuant to the Registration Statement or
in compliance with the Securities Act and the Rules and Regulations, or, other than with respect to
any claims arising out of a breach of this representation and warranty, the Purchaser’s right to
indemnification under Section 7.3); (iii) the Purchaser will not, directly or indirectly, offer,
sell, pledge, transfer or otherwise dispose of (or solicit any offers to buy, purchase or otherwise
acquire or take a pledge of) any of the Shares, nor will the Purchaser engage in any short sale
that results in a disposition of any of the Shares by the Purchaser, except in compliance with the
Securities Act and the Rules and Regulations and any applicable state securities laws; (iv) the
Purchaser has completed or caused to be completed the Registration Statement Questionnaire attached
hereto as part of Appendix I, for use in preparation of the Registration Statement, and the
answers thereto are true and correct as of the date hereof and will be true and correct as of the
effective date of the Registration Statement and the Purchaser will notify the Company immediately
of any material change in any such information provided in the Registration Statement Questionnaire
until such time as the Purchaser has sold all of its Shares or until the Company is no longer
required to keep the Registration Statement effective; (v) the Purchaser has, in connection with
its decision to purchase the Shares, relied solely upon the representations and warranties of the
Company contained herein; (vi) the Purchaser has had an

13

 

opportunity to discuss this investment with representatives of the Company and ask questions
of them; and (vii) the Purchaser is an “accredited investor” within the meaning of Rule 501(a) of
Regulation D promulgated under the Securities Act.

               5.2 Reliance on Exemptions. The Purchaser understands that the Shares are being
offered and sold to it in reliance upon specific exemptions from the registration requirements of
the Securities Act, the Rules and Regulations and state securities laws and that the Company is
relying upon the truth and accuracy of, and the Purchaser’s compliance with, the representations,
warranties, agreements, acknowledgments and understandings of the Purchaser set forth herein in
order to determine the availability of such exemptions and the eligibility of the Purchaser to
acquire the Shares.

               5.3 Confidentiality. For the benefit of the Company, the Purchaser previously agreed
with the Company to keep confidential all information concerning this private placement. The
Purchaser acknowledges that it is prohibited from reproducing or distributing this Agreement or any
other offering materials or other information provided by the Company in connection with the
Purchaser’s consideration of its investment in the Company, in whole or in part, or divulging or
discussing any of their contents, except to its financial, investment or legal advisors in
connection with its proposed investment in the Shares. Further, the Purchaser understands that the
existence and nature of all conversations and presentations, if any, regarding the Company and this
offering must be kept strictly confidential. The Purchaser understands that the federal securities
laws impose restrictions on trading based on information regarding this offering. In addition, the
Purchaser hereby acknowledges that unauthorized disclosure of information regarding this offering
may result in a violation of Regulation FD. This obligation will terminate upon the filing by the
Company of a press release or press releases in accordance with Section 7.6 hereof describing this
offering. In addition to the above, the Purchaser shall maintain in confidence the receipt and
content of any notice of a Suspension (as defined in Section 5.9 below). The foregoing agreements
shall not apply to any information that is or becomes publicly available through no fault of the
Purchaser, or that the Purchaser is legally required to disclose; provided, however, that if the
Purchaser is requested or ordered to disclose any such information pursuant to any court or other
government order or any other applicable legal procedure, it shall provide the Company with prompt
notice of any such request or order in time sufficient to enable the Company to seek an appropriate
protective order.

               5.4 Investment Decision. The Purchaser understands that nothing in the Agreement or
any other materials presented to the Purchaser in connection with the purchase and sale of the
Shares constitutes legal, tax or investment advice. The Purchaser has consulted such legal, tax
and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in
connection with its purchase of the Shares.

               5.5 Risk of Loss. The Purchaser understands that its investment in the Shares
involves a significant degree of risk, including a risk of total loss of the Purchaser’s
investment, and the Purchaser has full cognizance of and understands all of the risk factors
related to the Purchaser’s purchase of the Shares. The Purchaser understands that the market price
of the Common Stock has been volatile and that no representation is being made as to the future
value of the Common Stock.

14

 

               5.6 Legend. The Purchaser understands that, subject to Section 5.7, the Shares will
bear a restrictive legend in substantially the following form:

“THE SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”) OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION.
THE SHARES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED (A) EXCEPT (1) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH
CASE IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS AND THE
SECURITIES LAWS OF OTHER JURISDICTIONS, AND IN THE CASE OF A
TRANSACTION EXEMPT FROM REGISTRATION, UNLESS THE COMPANY HAS
RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT
SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES
ACT AND SUCH OTHER APPLICABLE LAWS, OR (B) UNLESS SOLD PURSUANT TO
RULE 144 UNDER THE SECURITIES ACT. NOTWITHSTANDING THE FOREGOING,
THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE
SECURITIES.”

               5.7 Removal of Legend; Transfer Agent Instructions. The Company hereby covenants with
the Purchaser to, no later than three trading days following the delivery by the Purchaser to the
Company of a legended certificate representing Shares (endorsed or with stock powers attached,
signatures guaranteed, and otherwise in form necessary to affect the reissuance and/or transfer),
and either (i) Purchaser’s Certificate of Subsequent Sale (A) in the form of Appendix II hereto,
(B) executed by an officer of, or other authorized person designated by, the Purchaser, and (C) to
the effect that the Shares have been sold in accordance with the Registration Statement or in a
transaction exempt from the registration requirements of the Securities Act and any applicable
state securities or Blue Sky laws or (ii) an opinion of counsel reasonably satisfactory to the
Company that the Shares are freely transferable and that the legend is no longer required on such
stock certificate, deliver or cause the Company’s transfer agent to deliver to the transferee of
the Shares or to the Purchaser, as applicable, a new stock certificate representing such Shares
that is free from all restrictive and other legends. The Company acknowledges that the remedy at
law for a breach of its obligations under this Section 5.7 may be inadequate and agrees, in the
event of a breach or threatened breach by the Company of the provisions of this Section 5.7, that
the Purchaser shall be entitled, in addition to all other available remedies, to an order and/or
injunction restraining any breach and requiring immediate issuance and transfer, without the
necessity of showing economic loss and without any bond or other security being required.

15

 

               5.8 Residency. The Purchaser’s offices in which its investment decision with respect
to the Shares was made are in the jurisdiction set forth immediately below the Purchaser’s name on
the signature pages hereto.

               5.9 Public Sale or Distribution.

               (a) The Purchaser hereby covenants with the Company not to make any sale of the Shares under
the Registration Statement without complying with the provisions of this Agreement and without
effectively causing the prospectus delivery requirement under the Securities Act to be satisfied
(whether physically or through compliance with Rule 172 under the Securities Act or any similar
rule). The Purchaser acknowledges and agrees that such Shares are not transferable unless (i) the
Purchaser delivers to the Company an opinion of counsel reasonably satisfactory to the Company that
the Shares have been transferred in accordance with the Registration Statement or in a transaction
exempt from the registration requirements of the Securities Act and any applicable state securities
or Blue Sky laws or (ii) the certificate submitted to the transfer agent evidencing the Shares is
accompanied by a separate Purchaser’s Certificate of Subsequent Sale: (A) in the form of Appendix
II hereto, (B) executed by an officer of, or other authorized person designated by, the Purchaser,
and (C) to the effect that the Shares have been sold in accordance with the Registration Statement
or in a transaction exempt from the registration requirements of the Securities Act and any
applicable state securities or Blue Sky laws. The Purchaser acknowledges that there may
occasionally be times when the Company must suspend the use of the prospectus (the
“Prospectus”) forming a part of the Registration Statement (a “Suspension”) until
such time as an amendment to the Registration Statement has been filed by the Company and declared
effective by the Commission, or until such time as the Company has filed an appropriate report with
the Commission pursuant to the Exchange Act. Without the Company’s prior written consent, which
consent shall not unreasonably be withheld or delayed, the Purchaser shall not use any written
materials to offer the Shares for resale other than the Prospectus, including any “free writing
prospectus” as defined in Rule 405 under the Securities Act. The Purchaser covenants that it will
not sell any Shares pursuant to said Prospectus during the period commencing at the time when
Company gives the Purchaser written notice of the suspension of the use of said Prospectus and
ending at the time when the Company gives the Purchaser written notice that the Purchaser may
thereafter effect sales pursuant to said Prospectus.

               (b) At any time that the Purchaser is an affiliate of the Company, any resale of the Shares
that purports to be effected under Rule 144 shall comply with all of the requirements of such rule,
including the “manner of sale” requirements set forth in Rule 144(f).

               5.10 Organization; Validity; Enforcements. The Purchaser is an entity duly organized,
validly existing and in good standing under the laws of the jurisdiction of its organization with
the requisite partnership power and authority to enter into and to consummate the transactions
contemplated by the applicable Transaction Documents and otherwise to carry out its obligations
hereunder and thereunder. The execution and delivery of this Agreement by the Purchaser and
performance by the Purchaser of the transactions contemplated by this Agreement have been duly
authorized by all necessary partnership actions on the part of such Purchaser. Each Transaction
document to which it is a party has been duly executed by the Purchaser, and when delivered by such
Purchaser in accordance with the terms hereof, will

16

 

constitute the valid and legally binding obligation of the Purchaser, enforceable against it
in accordance with its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or
affecting generally the enforcement of, creditors’ rights and remedies or by other equitable
principles of general application. The execution, delivery and performance by the Purchaser of
this Agreement and the consummation by such Purchaser of the transactions contemplated hereby will
not (i) result in a violation of the organizational documents of the Purchaser, (ii) conflict with,
or constitute a default (or an event which with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, indenture or instrument to which the Purchaser is a party, or (iii)
result in a violation of any law, rule, regulation, order, judgment or decree (including federal
and state securities laws) applicable to the Purchaser, except in the case of clauses (ii) and
(iii) above, for such conflicts, defaults, rights or violations which would not, individually or in
the aggregate, reasonably be expected to have a material adverse effect on the ability of the
Purchaser to perform its obligations hereunder.

          5.11 Short Sales. Prior to the date hereof, the Purchaser has not taken, and prior to
the public announcement of the transaction after the Closing the Purchaser shall not take, any
action that has caused or will cause the Purchaser to have, directly or indirectly, sold or agreed
to sell any shares of Common Stock, effected any short sale, whether or not against the box,
established any “put equivalent position” (as defined in Rule 16a-1(h) under the Exchange 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.

     SECTION 6. Survival of Agreements; Non-Survival of Company Representations and
Warranties. Subject to applicable statutes of limitations, all covenants and agreements made
by the Company and the Purchaser shall survive the execution of this Agreement, the delivery to the
Purchaser of the Shares being purchased and the payment therefor.

     SECTION 7.  Registration of the Shares; Compliance with the Securities Act.

          7.1  Registration Procedures and Expenses. The Company shall:

               (a) as soon as practicable, but in no event later than 30 days following the closing date of
the Rights Offering, prepare and file with the Commission the Registration Statement on Form S-3
relating to the resale of, among other securities, the Shares and any other shares of Common Stock
held by the Purchaser or its affiliates as of the date hereof, including but not limited to,
InterWest Management Partners VIII, LLC, InterWest Management Partners X, LLC, InterWest Partners
VIII, LP, InterWest Investors VIII, LP, InterWest Investors Q VIII, LP, which such affiliates’
shares are subject to the Registration Rights Agreement (as defined below) (collectively, the
“Registrable Securities”), by the Purchaser from time to time on the NASDAQ Global Market,
or the facilities of any national securities exchange on which the Common Stock is then traded or
in privately-negotiated transactions, which registration statement shall contain (except if
otherwise required pursuant to written comments received from the Commission upon a review of such
Registration Statement) a plan of distribution substantially similar to the “Plan of Distribution”
section attached hereto as

17

 

Exhibit C (which may be modified to respond to comments, if any, provided by the
Commission);

               (b) use its best efforts, subject to receipt of necessary information from the Purchaser, to
cause the Commission to declare the Registration Statement effective not later than September 30,
2009;

               (c) promptly prepare and file with the Commission such amendments and supplements to the
Registration Statement and the prospectus used in connection therewith as may be necessary to keep
the Registration Statement effective until the earliest of (i) three years after the effective date
of the Registration Statement or (ii) such time as the Registrable Securities become eligible for
resale by the Purchaser without any volume limitations or other restrictions pursuant to Rule 144
under the Securities Act or any other rule of similar effect; provided, that for the
avoidance of doubt, in no event shall the Company have any obligation to keep the Registration
Statement effective after such time as all of the Registrable Securities have been sold pursuant to
the Registration Statement or Rule 144;

               (d) furnish to the Purchaser with respect to the Registrable Securities registered under the
Registration Statement (and to each underwriter, if any, of such Registrable Securities) such
number of copies of prospectuses and such other documents as the Purchaser may reasonably request,
in order to facilitate the public sale or other disposition of all or any of the Registrable
Securities by the Purchaser;

               (e) file documents required of the Company for normal Blue Sky clearance in states specified
in writing by the Purchaser; provided, however, that the Company shall not be
required to qualify to do business or consent to service of process in any jurisdiction in which it
is not now so qualified or has not so consented;

               (f) bear all expenses in connection with the procedures in paragraphs (a) through (e) of this
Section 7.1 and the registration of the Registrable Securities pursuant to the Registration
Statement, other than fees and expenses, if any, of counsel or other advisers to the Purchaser or
underwriting discounts, brokerage fees and commissions incurred by the Purchaser, if any, in
connection with the offering of the Registrable Securities pursuant to the Registration Statement;
and

               (g) in order to enable the Purchaser to sell the Registrable Securities under Rule 144 under
the Securities Act, for a period of three years from Closing, use best efforts to comply with the
requirements of Rule 144, including without limitation, its best efforts to comply with the
requirements of Rule 144(c)(1) with respect to public information about the Company and to timely
file all reports required to be filed by the Company under the Exchange Act.

     The Company understands that the Purchaser disclaims being an underwriter, but the Purchaser
being deemed an underwriter shall not relieve the Company of any obligations it has hereunder. A
draft of the proposed form of the questionnaire related to the Registration Statement to be
completed by the Purchaser is attached hereto as Appendix I.

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          7.2 Transfer of Shares After Registration; Pledges.

               (a) The Purchaser agrees that it will not effect any disposition of the Shares or its right to
purchase the Shares that would constitute a sale within the meaning of the Securities Act or
pursuant to any applicable state securities laws, except as contemplated in the Registration
Statement referred to in Section 7.1 or as otherwise permitted by law, and that it will promptly
notify the Company of any changes in the information set forth in the Registration Statement
regarding the Purchaser or its plan of distribution.

               (b) The Company acknowledges and agrees that the Purchaser may from time to time pledge,
and/or grant a security interest in, some or all of the legended Shares in connection with
applicable securities laws, pursuant to a bona fide margin agreement in compliance with a bona fide
margin loan. Such a pledge would not be subject to approval or consent of the Company and no legal
opinion of legal counsel to the pledgee, secured party or pledgor shall be required in connection
with the pledge, but such legal opinion shall be required in connection with a subsequent transfer
or foreclosure following default by the Purchaser transferee of the pledge. No notice shall be
required of such pledge, but Purchaser’s transferee shall promptly notify the Company of any such
subsequent transfer or foreclosure. The Purchaser acknowledges that the Company shall not be
responsible for any pledges relating to, or the grant of any security interest in, any of the
Shares or for any agreement, understanding or arrangement between the Purchaser and its pledgee or
secured party. At the Purchaser’s expense, the Company will execute and deliver such reasonable
documentation as a pledgee or secured party of Shares may reasonably request in connection with a
pledge or transfer of the Shares, including the preparation and filing of any required prospectus
supplement under Rule 424(b)(3) of the Securities Act or other applicable provision of the
Securities Act to appropriately amend the list of Selling Stockholders thereunder. Each Purchaser
acknowledges and agrees that, except as otherwise provided in Section 5.9 and in this Section 7.3,
any Shares subject to a pledge or security interest as contemplated by this Section 7.3(b) shall
continue to bear the legend set forth in Section 5.6 and be subject to the restrictions on
transfer set forth in Section 5.9 and in this Section 7.3.

          7.3 Indemnification. For the purpose of this Section 7.3:

(i) the term “Purchaser/Affiliate” shall mean any
affiliate of the Purchaser, including a transferee who is an
affiliate of the Purchaser, and any person who controls the
Purchaser or any affiliate of the Purchaser within the meaning
of Section 15 of the Securities Act or Section 20 of the
Exchange Act; and

(ii) the term “Registration Statement” shall include
any preliminary prospectus, final prospectus, free writing
prospectus, exhibit, supplement or amendment included in or
relating to, and any document incorporated by reference in, the
Registration Statement referred to in Section 7.1.

               (a) The Company agrees to indemnify and hold harmless the Purchaser and each
Purchaser/Affiliate, against any losses, claims, damages, liabilities or

19

 

expenses, joint or several, to which the Purchaser or Purchaser/Affiliates may become subject,
under the Securities Act, the Exchange Act, or any other federal or state statutory law or
regulation, or at common law or otherwise (including in settlement of any litigation, if such
settlement is effected with the written consent of the Company), insofar as such losses, claims,
damages, liabilities or expenses (or actions in respect thereof as contemplated below) arise out of
or are based upon any untrue statement or alleged untrue statement of any material fact contained
in the Registration Statement, including the Prospectus, financial statements and schedules, and
all other documents filed as a part thereof, as amended at the time of effectiveness of the
Registration Statement, including any information deemed to be a part thereof as of the time of
effectiveness pursuant to paragraph (b) of Rule 430A, or pursuant to Rules 430B, 430C or 434, of
the Rules and Regulations, or the Prospectus, in the form first filed with the Commission pursuant
to Rule 424(b) of the Regulations, or filed as part of the Registration Statement at the time of
effectiveness if no Rule 424(b) filing is required or any amendment or supplement thereto, or arise
out of or are based upon the omission or alleged omission to state in any of them a material fact
required to be stated therein or necessary to make the statements in the Registration Statement or
any amendment or supplement thereto not misleading or in the Prospectus or any amendment or
supplement thereto not misleading in light of the circumstances under which they were made, or
arise out of or are based in whole or in part on any inaccuracy in the representations or
warranties of the Company contained in this Agreement, or any failure of the Company to perform its
obligations hereunder or under law, and will promptly reimburse the Purchaser and the
Purchaser/Affiliate for any legal and other expenses as such expenses are reasonably incurred by
the Purchaser or such Purchaser/Affiliate in connection with investigating, defending or preparing
to defend, settling, compromising or paying any such loss, claim, damage, liability, expense or
action; provided, however, that the Company will not be liable for amounts paid in
settlement of any such loss, claim, damage, liability or action if such settlement is effected
without the consent of the Company, which consent shall not be unreasonably withheld, and the
Company will not be liable in any such case to the extent that any such loss, claim, damage,
liability or expense arises out of or is based upon (i) an untrue statement or alleged untrue
statement or omission or alleged omission made in the Registration Statement, the Prospectus or any
amendment or supplement thereto in reliance upon and in conformity with written information
furnished to the Company by or on behalf of the Purchaser expressly for use therein, or (ii) the
failure of the Purchaser to comply with the covenants and agreements contained in Sections 5.9 or
7.2 hereof respecting the sale of the Registrable Securities, or (iii) the inaccuracy of any
representation or warranty made by the Purchaser herein or (iv) any statement or omission in any
Prospectus that is corrected in any subsequent Prospectus that was delivered to the Purchaser prior
to the pertinent sale or sales by the Purchaser.

               (b) The Purchaser will indemnify and hold harmless the Company, each of its directors, each of
its officers who signed the Registration Statement and each person, if any, who controls the
Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act,
against any losses, claims, damages, liabilities or expenses to which the Company, each of its
directors, each of its officers who signed the Registration Statement or controlling person may
become subject, under the Securities Act, the Exchange Act, or any other federal or state statutory
law or regulation, or at common law or otherwise (including in settlement of any litigation, but
only if such settlement is effected with the written consent of the Purchaser) insofar as such
losses, claims, damages, liabilities or

20

 

expenses (or actions in respect thereof as contemplated below) arise out of or are based upon
(i) any failure to comply with the covenants and agreements contained in Sections 5.9 or 7.2 hereof
respecting the sale of the Registrable Securities or (ii) the inaccuracy of any representation or
warranty made by the Purchaser herein or (iii) any untrue or alleged untrue statement of any
material fact contained in the Registration Statement, the Prospectus, or any amendment or
supplement thereto, or arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements in the
Registration Statement or any amendment or supplement thereto not misleading or in the Prospectus
or any amendment or supplement thereto not misleading in the light of the circumstances under which
they were made, in each case to the extent, but only to the extent, that such untrue statement or
alleged untrue statement or omission or alleged omission was made in the Registration Statement,
the Prospectus, or any amendment or supplement thereto, in reliance upon and in conformity with
written information furnished to the Company by or on behalf of the Purchaser expressly for use
therein; and will reimburse the Company, each of its directors, each of its officers who signed the
Registration Statement or controlling person for any legal and other expense reasonably incurred by
the Company, each of its directors, each of its officers who signed the Registration Statement or
controlling person in connection with investigating, defending, settling, compromising or paying
any such loss, claim, damage, liability, expense or action; provided, however, that
the Purchaser’s aggregate liability under this Section 7 shall not exceed the amount of proceeds
received by the Purchaser on the sale of the Registrable Securities pursuant to the Registration
Statement.

               (c) Promptly after receipt by an indemnified party under this Section 7.3 of notice of the
threat or commencement of any action, such indemnified party will, if a claim in respect thereof is
to be made against an indemnifying party under this Section 7.3 promptly notify the indemnifying
party in writing thereof, but the omission to notify the indemnifying party will not relieve it
from any liability that it may have to any indemnified party for contribution or otherwise under
the indemnity agreement contained in this Section 7.3 to the extent it is not prejudiced as a
result of such failure. In case any such action is brought against any indemnified party and such
indemnified party seeks or intends to seek indemnity from an indemnifying party, the indemnifying
party will be entitled to participate in, and, to the extent that it may wish, jointly with all
other indemnifying parties similarly notified, to assume the defense thereof with counsel
reasonably satisfactory to such indemnified party; provided, however, if the
defendants in any such action include both the indemnified party, and the indemnifying party and
the indemnified party shall have reasonably concluded, based on an opinion of counsel reasonably
satisfactory to the indemnifying party, that there may be a conflict of interest between the
positions of the indemnifying party and the indemnified party in conducting the defense of any such
action or that there may be legal defenses available to it and/or other indemnified parties that
are different from or additional to those available to the indemnifying party, the indemnified
party or parties shall have the right to select separate counsel to assume such legal defenses and
to otherwise participate in the defense of such action on behalf of such indemnified party or
parties. Upon receipt of notice from the indemnifying party to such indemnified party of its
election to assume the defense of such action and approval by the indemnified party of counsel, the
indemnifying party will not be liable to such indemnified party under this Section 7.3 for any
legal or other expenses subsequently incurred by such indemnified party in connection with the
defense thereof unless (i) the indemnified party shall have employed such counsel in connection
with the assumption of legal defenses in

21

 

accordance with the proviso to the preceding sentence (it being understood, however, that the
indemnifying party shall not be liable for the expenses of more than one separate counsel,
reasonably satisfactory to such indemnifying party, representing all of the indemnified parties who
are parties to such action) or (ii) the indemnifying party shall not have employed counsel
reasonably satisfactory to the indemnified party to represent the indemnified party within a
reasonable time after notice of commencement of action, in each of which cases the reasonable fees
and expenses of counsel shall be at the expense of the indemnifying party. The indemnifying party
shall not be liable for any settlement of any action without its written consent. In no event
shall any indemnifying party be liable in respect of any amounts paid in settlement of any action
unless the indemnifying party shall have approved in writing the terms of such settlement;
provided, that such consent shall not be unreasonably withheld. No indemnifying party
shall, without the prior written consent of the indemnified party, effect any settlement of any
pending or threatened proceeding in respect of which any indemnified party is or could have been a
party and indemnification could have been sought hereunder by such indemnified party from all
liability on claims that are the subject matter of such proceeding.

               (d) If the indemnification provided for in this Section 7.3 is required by its terms but is
for any reason held to be unavailable to or otherwise insufficient to hold harmless an indemnified
party under paragraphs (a), (b) or (c) of this Section 7.3 in respect to any losses, claims,
damages, liabilities or expenses referred to herein, then each applicable indemnifying party shall
contribute to the amount paid or payable by the indemnified party as a result of any losses,
claims, damages, liabilities or expenses referred to herein (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company and the Purchaser from the
private placement of Common Stock hereunder or (ii) if the allocation provided by clause (i) above
is not permitted by applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but the relative fault of the Company and the
Purchaser in connection with the statements or omissions or inaccuracies in the representations and
warranties in this Agreement and/or the Registration Statement that resulted in such losses,
claims, damages, liabilities or expenses, as well as any other relevant equitable considerations.
The relative benefits received by the Company on the one hand and the Purchaser on the other shall
be deemed to be in the same proportion as the amount paid by the Purchaser to the Company pursuant
to this Agreement for the Registrable Securities purchased by the Purchaser that were sold pursuant
to the Registration Statement bears to the difference (the “Difference”) between the amount
the Purchaser paid for the Registrable Securities that were sold pursuant to the Registration
Statement and the amount received by the Purchaser from such sale. The relative fault of the
Company on the one hand and the Purchaser on the other shall be determined by reference to, among
other things, whether the untrue or alleged statement of a material fact or the omission or alleged
omission to state a material fact or the inaccurate or the alleged inaccurate representation and/or
warranty relates to information supplied by the Company or by the Purchaser and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission. The amount paid or payable by a party as a result of the losses, claims,
damages, liabilities and expenses referred to above shall be deemed to include, subject to the
limitations set forth in paragraph (c) of this Section 7.3, any legal or other fees or expenses
reasonably incurred by such party in connection with investigating or defending any action or
claim. The provisions set forth in paragraph (c) of this Section 7.3 with respect to the notice of
the threat or commencement of any threat or action shall apply if a claim for contribution is to be
made under this paragraph (d);

22

 

provided, however, that no additional notice shall be required with respect to
any threat or action for which notice has been given under paragraph (c) for purposes of
indemnification. The Company and the Purchaser agree that it would not be just and equitable if
contribution pursuant to this Section 7.3 were determined solely by pro rata allocation (even if
the Purchaser were treated as one entity for such purpose) or by any other method of allocation
which does not take account of the equitable considerations referred to in this paragraph.
Notwithstanding the provisions of this Section 7.3, the Purchaser shall not be required to
contribute any amount in excess of the amount by which the Difference exceeds the amount of any
damages that the Purchaser has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation.

          7.4 Termination of Conditions and Obligations. The restrictions imposed by Section
5.9 or Section 7.2 upon the transferability of the Shares shall cease and terminate as to any
particular number of the Shares upon the earlier of (i) the passage of two years from the effective
date of the Registration Statement covering such Shares and (ii) at such time as an opinion of
counsel satisfactory in form and substance to the Company shall have been rendered to the effect
that such conditions are not necessary in order to comply with the Securities Act.

          7.5 Information Available. The Company, upon the reasonable request of the Purchaser,
shall make available for inspection by the Purchaser, any underwriter participating in any
disposition pursuant to the Registration Statement and any attorney, accountant or other agent
retained by the Purchaser or any such underwriter, all financial and other records, pertinent
corporate documents and properties of the Company, and cause the Company’s officers, employees and
independent accountants to supply all information reasonably requested by the Purchaser or any such
underwriter, attorney, accountant or agent in connection with the Registration Statement.

          7.6 Securities Laws Disclosure; Publicity. After the close of trading on the NASDAQ
Global Market on the trading day immediately following the date hereof, the Company shall issue a
press release (the “Press Release”) reasonably acceptable to the Purchaser disclosing all
material terms of the transactions contemplated hereby. On or before 9:00 A.M., New York City
time, on the second trading day immediately following the execution of this Agreement, the Company
will file a Current Report on Form 8-K with the Commission describing the terms of the Transaction
Documents (and including as exhibits to such Current Report on Form 8-K the material Transaction
Documents (including, without limitation, this Agreement)).

          7.7 Form D; Blue Sky. The Company agrees to timely file a Form D with respect to the
Shares as required under Regulation D and to provide a copy thereof to the Purchaser (provided that
the posting of the Form D on the Commission’s EDGAR system shall be deemed delivery of the Form D
for purposes of this Agreement). The Company, on or before the Closing Date, shall take such
action as the Company shall reasonably determine is necessary, if any, in order to obtain an
exemption for or to qualify the Shares for sale to the Purchaser under applicable securities or
“Blue Sky” laws of the states of the United States (or to obtain an

23

 

exemption from such qualification) and shall provide evidence of such actions promptly to the
Purchaser.

          7.8 Waiver of Registration Rights. Solely with respect to any registration statement
to be filed in connection with the Rights Offering, the Purchaser hereby waives (on behalf of its
affiliates), under the Second Amended and Restated Information and Registration Rights Agreement,
dated as of October 21, 2004, as amended (the “Registration Rights Agreement”), by and
among the Company, the Purchaser and the other parties named therein, (i) any demand, piggyback or
other registration rights to which the Purchaser may be entitled and (ii) any and all notice
requirements under the Registration Rights Agreement in connection with the Rights Offering, except
as expressly set forth herein.

          SECTION 8. Notices. All notices, requests, consents and other communications
hereunder shall be in writing, shall be mailed by first-class registered or certified airmail,
e-mail, confirmed facsimile or nationally recognized overnight express courier postage prepaid, and
shall be deemed given when so mailed and shall be delivered as addressed as follows:

               (a) if to the Company, to:

BioMimetic Therapeutics, Inc.

389 Nichol Mill Lane

Franklin, Tennessee 37067

Attention: General Counsel

Facsimile: 615-844-1281

with a copy to:

Morrison & Foerster LLP

1290 Avenue of the Americas

New York, New York 10104

Attention: Anna T. Pinedo, Esq.

Facsimile: 212-469-7900

or to such other person at such other place as the Company shall designate to the Purchaser in
writing; and

               (b) if to the Purchaser, at its address as set forth at the end of this Agreement, or at such
other address or addresses as may have been furnished to the Company in writing.

     SECTION 9. Changes. This Agreement may not be modified or amended except pursuant to
an instrument in writing signed by the Company and the Purchaser. Any amendment or waiver effected
in accordance with this Section 9 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.

     SECTION 10. Headings. The headings of the various sections of this Agreement have
been inserted for convenience of reference only and shall not be deemed to be part of this
Agreement.

24

 

     SECTION 11. Severability. In case any provision contained in this Agreement should be
invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not in any way be affected or impaired thereby.

     SECTION 12. Governing Law; Venue. This Agreement is to be construed in accordance
with and governed by the federal law of the United States of America and the internal laws of the
State of New York without giving effect to any choice of law rule that would cause the application
of the laws of any jurisdiction other than the internal laws of the State of New York to the rights
and duties of the parties. Each of the Company and the Purchaser submits to the nonexclusive
jurisdiction of the United States District Court for the Southern District of New York and of any
New York State court sitting in New York City for purposes of all legal proceedings arising out of
or relating to this Agreement and the transactions contemplated hereby. Each of the Company and
the Purchaser irrevocably waives, to the fullest extent permitted by law, any objection that it may
now or hereafter have to the laying of the venue of any such proceeding brought in such a court and
any claim that any such proceeding brought in such a court has been brought in an inconvenient
forum.

     SECTION 13. Counterparts. This Agreement may be executed in counterparts, each of
which shall constitute an original, but all of which, when taken together, shall constitute but one
instrument, and shall become effective when one or more counterparts have been signed by each party
hereto and delivered to the other parties. Facsimile signatures shall be deemed original
signatures.

     SECTION 14. Entire Agreement. This Agreement and the instruments referenced herein
contain the entire understanding of the parties with respect to the matters covered herein and
therein and, except as specifically set forth herein or therein, neither the Company nor the
Purchaser makes any representation, warranty, covenant or undertaking with respect to such matters.
Each party expressly represents and warrants that it is not relying on any oral or written
representations, warranties, covenants or agreements outside of this Agreement.

     SECTION 15. Fees and Expenses. Except as set forth herein, each of the Company and
the Purchaser shall pay its respective fees and expenses related to the transactions contemplated
by this Agreement; provided, however, that, subject to the Closing, the Company
shall pay the reasonable fees and expenses of Goodwin Procter LLP, counsel for the Purchaser, in an
amount not to exceed $15,000.

     SECTION 16. Parties. This Agreement is made solely for the benefit of and is binding
upon the Purchaser and the Company and to the extent provided in Section 7.3, any person
controlling the Company or the Purchaser, the officers and directors of the Company, and their
respective executors, administrators, successors and assigns and subject to the provisions of
Section 7.3, no other person shall acquire or have any right under or by virtue of this Agreement.
The term “successor and assigns” shall not include any subsequent purchaser, as such purchaser, of
the Shares sold to the Purchaser pursuant to this Agreement.

     SECTION 17. Further Assurances. Each party agrees to cooperate fully with the other
parties and to execute such further instruments, documents and agreements and to give such further
written assurance as may be reasonably requested by any other party to evidence and

25

 

reflect the transactions described herein and contemplated hereby and to carry into effect the
intents and purposes of this Agreement.

[Remainder of Page Left Intentionally Blank]

26

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly
authorized representatives as of the day and year first above written.

	 	 	 	 	 
	 	BIOMIMETIC THERAPEUTICS, INC.

 	 
	 	By:  	/s/
Samuel E. Lynch
 	 
	 	 	Name:  	Samuel E. Lynch 	 
	 	 	Title:  	President & CEO 	 
	 

Signature Page to Purchase Agreement

 

 

Print or Type:

	 	 	 	 	 	 	 
	 	 	InterWest Partners X, LP	 	 
	 	 	 	 	 
	 	 	Name of Purchaser	 	 
	 
	 	 	 	 	 	 
	 	 	By: InterWest Management Partners X, LLC, its general partner	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Christopher Ehrlich	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Christopher B. Ehrlich	 	 
	 	 	 	 	 
	 	 	Name of Individual Representing Signatory	 	 
	 
	 	 	 	 	 	 
	 	 	Managing Director	 	 
	 	 	 	 	 
	 	 	Title of Individual Representing Signatory	 	 
	 
	 	 	 	 	 	 
	 	 	California	 	 
	 	 	 	 	 
	 	 	Jurisdiction of Purchaser’s Executive Offices	 	 
	 
	 	 	 	 	 	 
	 
	 	   Address:	 	2710 Sand Hill Road, Second Floor

Menlo Park, CA 94025	 	 
	 
	 	 	 	 	 	 
	 
	 	   Telephone:	 	650-854-8585	 	 
	 
	 	 	 	 	 	 
	 
	 	   Facsimile:
	 	650-854-4706	 	 
	 
	 	 	 	 	 	 
	 
	 	   E-mail:	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Copy to:	 	Stephen M. Davis and Jocelyn M. Arel	 	 
	 	 	Goodwin Procter LLP	 	 
	 	 	The New York Times Building	 	 
	 	 	620 Eighth Avenue	 	 
	 	 	New York, NY 10018-1405	 	 
	 	 	Attention: Stephen M. Davis	 	 
	 	 	Tel: (212) 813-7410	 	 
	 	 	Fax: (212) 355-3333	 	 
	 	 	Email: sdavis@goodwinprocter.com	 	 

Signature Page to Purchase Agreement

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