Document:

Placement Agent Agreement by and between GTC Biotherapeutics, Inc and Rodman

 Exhibit 10.1 
  
 

 
 CONFIDENTIAL 
 February 7, 2008 
 CONFIDENTIAL 
 GTC Biotherapeutics, Inc. 
 175 Crossing Boulevard 
 Framingham, MA 01702 
 Attn: Geoffrey Cox, Ph.D. 
 Chairman, Chief Executive Officer, & President 
 Dear Dr. Cox: 
 This letter (the “Agreement”) constitutes the agreement between Rodman & Renshaw, LLC (“R&R” or the
“Placement Agent”) and GTC Biotherapeutics, Inc. (the “Company”), that R&R shall serve as the exclusive placement agent for the Company, on a “best efforts” basis, in connection with the proposed
placement (the “Placement”) of registered securities (the “Securities”) of the Company, consisting of shares (the “Shares”) of the Company’s common stock, par value $0.01 per share (the
“Common Stock”) and warrants to purchase shares of Common Stock (the “Warrants”). The terms of such Placement and the Securities shall be mutually agreed upon by the Company and the purchasers (each, a
“Purchaser” and collectively, the “Purchasers”) and set forth in written purchase agreements (collectively, the “Securities Purchase Agreement”) and nothing herein constitutes that R&R would
have the power or authority to bind the Company or any Purchaser or an obligation for the Company to issue any Securities or complete the Placement. R&R may utilize sub placement agents and/or selected dealers in its discretion, provided
however, that the use of any sub placement agent and/or selected dealer by R&R shall (i) not increase any fees (including cash or warrants) or expenses payable by the Company under this Agreement or otherwise and (ii) be subject to
the prior approval of the Company, which approval shall not be unreasonably withheld, conditioned or delayed. This Agreement, the Securities Purchase Agreement and the Warrants shall be collectively referred to herein as the “Transaction
Documents.” The date of the closing of the Placement shall be referred to herein as the “Closing Date.” The Company expressly acknowledges and agrees that R&R’s obligations hereunder are on a reasonable best
efforts basis only and that the execution of this Agreement does not constitute a commitment by R&R to purchase the Securities and does not ensure the successful placement of the Securities or any portion thereof or the success of R&R with
respect to securing any other financing on behalf of the Company. 
 SECTION 1. Compensation and other Fees. 
 As compensation for the services provided by R&R hereunder, the Company agrees to pay to R&R a cash fee payable immediately upon the closing of
the Placement equal to 6.5% of the aggregate gross proceeds raised in the Placement. 
 The Company also agrees to reimburse R&R for its
actual, out-of-pocket expenses incurred (with supporting invoices/receipts) up to a maximum of $25,000. Such reimbursement shall be payable immediately upon (but only in the event of) the closing of the Placement. 
  
  
  
 1270 Avenue of the Americas, 16th Floor, New York, NY 10020 ? Tel:: 212 356 0500
Fax:: 212 581 5690 
 www.rodmanandrenshaw.com ? Member: FINRA, SIPC 
  

 GTC Biotherapeutics, Inc. 
 February 7, 2008 
 Page 2 
  
 SECTION 2. REGISTRATION STATEMENT. 
 The Company represents and
warrants to, and agrees with, the Placement Agent and each sub placement agent and/or selected dealer that as of the date hereof: 
 (A) The
Company has filed with the Securities and Exchange Commission (the “Commission”) a registration statement on Form S-3 (Registration File No. 333-142564) under the Securities Act of 1933, as amended (the “Securities
Act”), which became effective on May 18, 2007, for the registration under the Securities Act of certain securities of the Company, including the Shares and the Warrants. Such registration statement, at any given time, including the
exhibits thereto filed at such time, as amended at such time, is hereinafter called the “Registration Statement”. At the time the Registration Statement was initially filed, the Company met the requirements of Form S-3 under the
Securities Act. The Registration Statement meets the requirements set forth in Rule 415(a)(1)(x) under the Securities Act and complies with said Rule. The Company will file with the Commission pursuant to Rule 424(b) under the Securities Act, and
the rules and regulations (the “Rules and Regulations”) of the Commission promulgated thereunder, a supplement to the form of prospectus included in the Registration Statement relating to the placement of the Shares and the Warrants
and the plan of distribution thereof and has advised the Placement Agent of all further information (financial and other) with respect to the Company required to be set forth therein. The prospectus in the form in which it appears in the
Registration Statement is hereinafter called the “Base Prospectus”; and the supplemented form of prospectus, in the form in which it will be filed with the Commission pursuant to Rule 424(b) (including the Base Prospectus as so
supplemented) relating to the Placement is hereinafter called the “Prospectus Supplement.” Any reference in this Agreement to the Registration Statement or the Time of Sale Prospectus (as defined below) shall be deemed to refer to
and include the documents incorporated by reference therein (the “Incorporated Documents”) pursuant to Item 12 of Form S-3 which were filed under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), at any given time, as the case may be; and any reference in this Agreement to the terms “amend,” “amendment” or “supplement” with respect to the Registration Statement or the Time of Sale Prospectus
shall be deemed to refer to and include the filing of any document under the Exchange Act after the date of this Agreement, or the issue date of the Base Prospectus, the Prospectus Supplement or any Free Writing Prospectus, as the case may be,
deemed to be incorporated therein by reference. All references in this Agreement to financial statements and schedules and other information which is “contained,” “included,” “described,” “referenced,”
“set forth” or “stated” in the Registration Statement or the Time of Sale Prospectus (and all other references of like import) shall be deemed to mean and include all such financial statements and schedules and other information
which is or is deemed to be incorporated by reference in the Registration Statement or the Time of Sale Prospectus, as the case may be. To the Company’s knowledge (which for purposes of this Agreement shall mean the actual or constructive
knowledge of any member of the Company’s management): (i) no stop order suspending the effectiveness of the Registration Statement or the use of the Time of Sale Prospectus has been issued; and (ii) no proceeding for any such purpose
is pending, has been initiated or is threatened by the Commission. For purposes of this Agreement: (i) “Time of Sale Prospectus” means the Base Prospectus, together with the Prospectus Supplement, if any, and the free writing
prospectuses, if any, used in connection with the Placement, including any documents incorporated by reference therein; and (ii) “Free Writing Prospectus” has the meaning set forth in Rule 405 under the Securities Act.

 (B) The Registration Statement (and any further documents to be filed with the Commission) contains all exhibits and schedules as required
by the Securities Act. Each of the Registration Statement and any post-effective amendment thereto, at the time it became effective, complied in all material respects with the Securities Act and the Exchange Act (in the case of reports thereunder
incorporated by reference into the Registration Statement) and the applicable Rules and Regulations and did not and, as amended or supplemented, if applicable, will not, contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein in light of the circumstances under which they were made not misleading. Each component of the Time of Sale 

 
GTC Biotherapeutics, Inc. 
 February 7, 2008 
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 Prospectus, as of its respective date, complies in all material respects with the Securities Act and the Exchange Act (in the case of reports thereunder incorporated by reference into the Registration Statement) and the applicable Rules and
Regulations. Each component of the Time of Sale Prospectus, as amended or supplemented, did not and will not contain as of the date thereof any untrue statement of a material fact or omit to state a material fact necessary in order to make the
statements therein, in light of the circumstances under which they were made, not misleading. The Incorporated Documents, when they were filed with the Commission, conformed in all material respects to the requirements of the Exchange Act and the
applicable Rules and Regulations, and none of such documents, when they were filed with the Commission, contained any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in light of the
circumstances under which they were made not misleading, except to the extent corrected by subsequently filed documents with the Commission; and any further documents so filed and incorporated by reference in the Time of Sale Prospectus, when such
documents are filed with the Commission, will conform in all material respects to the requirements of the Exchange Act and the applicable Rules and Regulations, as applicable, and will not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. No post-effective amendment to the Registration Statement reflecting any facts or events arising after the date
thereof which represent, individually or in the aggregate, a fundamental change in the information set forth therein is required to be filed with the Commission. As of the date hereof, there are no documents required to be filed with the Commission
in connection with the transaction contemplated hereby that: (i) have not been filed as required pursuant to the Securities Act or (ii) will not be filed within the requisite time period. There are no contracts or other documents required
to be described in the Time of Sale Prospectus, or to be filed as exhibits or schedules to the Registration Statement, which have not been described or filed as required. 
 (C) The Company is not an “ineligible issuer” as defined in Rule 405 under the Securities Act. Any Free Writing Prospectus that the Company is required to file pursuant to Rule 433(d) under the Securities
Act has been, or will be, filed with the Commission in accordance with the requirements of the Securities Act and the applicable rules and regulations of the Commission thereunder. Each Free Writing Prospectus that the Company has filed, or is
required to file, pursuant to Rule 433(d) under the Securities Act or that was prepared by or behalf of or used by the Company complies or will comply in all material respects with the requirements of the Securities Act and the applicable rules and
regulations of the Commission thereunder. The Company will not, without the prior consent of the Placement Agent, prepare, use or refer to, any free writing prospectus in connection with the Placement. 
 (D) The Company has delivered, or will as promptly as practicable deliver, to the Placement Agent complete conformed copies of the Registration Statement
and of each consent and certificate of experts, as applicable, filed as a part thereof, and conformed copies of the Registration Statement (without exhibits), the Time of Sale Prospectus, as amended or supplemented, in such quantities and at such
places as the Placement Agent reasonably requests. Neither the Company nor any of its directors and officers has distributed and none of them will distribute, prior to the Closing Date, any offering material in connection with the offering and sale
of the Shares and the Warrants other than the Time of Sale Prospectus, the Registration Statement, copies of the documents incorporated by reference therein and any other materials permitted by the Securities Act. 
 (E) Without the prior written consent of the Company, the Placement Agent hereby confirms that it has not given and will not give to any prospective
purchaser of the Shares and Warrants any Free Writing Prospectuses other than as set forth on Schedule 2(E) hereto or as otherwise agreed in writing by the parties with respect to any such Free Writing Prospectus in advance of its
distribution. 
  

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 SECTION 3. REPRESENTATIONS AND WARRANTIES. Except as set forth under the corresponding section of the Disclosure Schedules which Disclosure Schedules shall be
deemed a part hereof, the Company hereby makes the representations and warranties set forth below to the Placement Agent. 
 (A)
Organization and Qualification. GTC Holdings Ltd, a Cayman Island entity (the “Subsidiary”), is the Company’s only “significant subsidiary” as determined in accordance with Regulation S-X. The Company owns,
directly or indirectly, all of the capital stock or other equity interests of the Subsidiary free and clear of any “Liens” (which for purposes of this Agreement shall mean a lien, charge, security interest, encumbrance, right of
first refusal, preemptive right or other restriction), and all the issued and outstanding shares of capital stock of the Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or
purchase securities. Each of the Company and the Subsidiary is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable), with
the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor the Subsidiary is in violation or default of any of the provisions of its respective certificate
or articles of incorporation, bylaws or other organizational or charter documents. Each of the Company and the Subsidiary is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in
which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would not reasonably be expected to result in: (i) a
material adverse effect on the legality, validity or enforceability of any Transaction Document; (ii) a material adverse effect on the results of operations, assets, business or financial condition of the Company and the Subsidiary, taken as a
whole; or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse
Effect”) and no “Proceeding” (which for purposes of this Agreement shall mean any action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a
deposition), whether commenced or threatened) has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification. 
 (B) Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions
contemplated by each of the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of each of the Transaction Documents by the Company and the consummation by it of the transactions
contemplated thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, its board of directors (the “Board of Directors”) or its stockholders in connection
therewith other than in connection with the Required Approvals (as defined in subsection 3(D) below). Each Transaction Document to which the Company is a party has been (or upon delivery will have been) duly executed by the Company and, when
delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms except: (i) as limited by general equitable principles and
applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally; (ii) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies; and (iii) insofar as the indemnification and contribution provisions thereunder may be limited by applicable law or public policy relating thereto. 
 (C) No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company, the issuance and sale of the Securities and
the consummation by the Company of the other transactions contemplated hereby and thereby do not and will not: (i) conflict with or violate any provision of the Company’s or the Subsidiary’s certificate or articles of incorporation,
bylaws or other organizational or charter documents; or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the
properties or assets of 

 
GTC Biotherapeutics, Inc. 
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 the Company or the Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a
Company or Subsidiary debt or otherwise) or other understanding to which the Company or the Subsidiary is a party or by which any property or asset of the Company or the Subsidiary is bound or affected; or (iii) subject to the Required
Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and
state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as would not reasonably be expected to result in a
Material Adverse Effect. 
 (D) Filings, Consents and Approvals. The Company is not required to obtain any consent, waiver,
authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other “Person” (defined as an individual or corporation,
partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind, including, without limitation, any Trading
Market (as defined below), in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than such filings as are required to be made under applicable Federal and state securities laws or with the
Trading Market for the listing of the Shares, including shares of Common Stock issuable upon exercise of the Warrants (the “Warrant Shares”), for trading thereon (collectively, the “Required Approvals”). 

(E) Issuance of the Securities; Registration. The Securities are duly authorized and, when issued and paid for in accordance with the
applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in the Transaction Documents. The Company has
reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant to the Transaction Documents. The issuance by the Company of the Securities has been registered under the Securities Act and all of the
Securities, following issuance pursuant to the Transaction Documents, will be freely transferable and tradable by the Purchasers without restriction (other than any restrictions arising solely from an act or omission of a Purchaser). The Securities
are being issued pursuant to the Registration Statement and the issuance of the Securities has been registered by the Company under the Securities Act. The Registration Statement is effective and available for the issuance of the Securities
thereunder and the Company has not received any notice and has no knowledge that the Commission has issued or intends to issue a stop-order with respect to the Registration Statement or that the Commission otherwise has suspended or withdrawn the
effectiveness of the Registration Statement, either temporarily or permanently, or intends or has threatened to do so. The “Plan of Distribution” section under the Registration Statement contemplates the circumstances under which the
Securities will be issued and sold hereunder. Upon receipt of the Securities, the Purchasers will have good and marketable title to such Securities and, on the Closing Date the Shares and the Warrants Shares will have been approved for listing and
the Shares will be freely tradable without restriction on the Trading Market. For purposes of this Agreement Trading Market shall mean the NASDAQ Global Market). 
 (F) Capitalization. The capitalization of the Company as of December 30, 2007 (the last day of its most recently completed fiscal year) is set forth Schedule 3(F) hereto. Except as described in Schedule
3(F) hereto, no Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the issuance and sale of the Securities pursuant to the Transaction Documents. Except: (i) as a result of
the purchase and sale of the Securities; (ii) as described in Schedule 3(F) hereto;, or (iii) pursuant to the exercise of employee stock options under the Company’s stock option plans, the issuance of shares of Common Stock to
employees pursuant to the Company’s employee stock purchase plan and pursuant to the conversion or exercise of securities exercisable, exchangeable or convertible into Common Stock under any equity incentive plan adopted by the Company
(“Common Stock Equivalents”), there are no outstanding options, warrants, script rights to subscribe to, calls or commitments of any character whatsoever relating to, or 

 
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 securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments, understandings or arrangements by
which the Company or the Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents. Except as described in Schedule 3(F) hereto, the issuance and sale of the Securities will not obligate the
Company to issue shares of Common Stock or other securities to any Person (other than the Purchasers) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such
securities. All of the outstanding shares of capital stock of the Company are validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in
violation of any preemptive rights or similar rights to subscribe for or purchase securities. No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Securities. Except
as described in, or incorporated by reference into, the Registration Statement, there are no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party or,
to the knowledge of the Company, between or among any of the Company’s stockholders. 
 (G) SEC Reports; Financial Statements.
The Company has complied in all material respects with requirements to file all reports, schedules, forms, statements and other documents required to be filed by it under the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof,
for one year preceding the date hereof (or such shorter period as the Company was required by law to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively
referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective filing
dates, the SEC Reports complied in all material respects with the requirements of the Exchange Act, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, except to the extent corrected by subsequently filed documents with the Commission. The financial statements
of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements
have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial statements or
the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated subsidiaries as of and for the
dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments. 
 (H) Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included within
the SEC Reports, except as disclosed in the SEC Reports or described in, or incorporated by reference into, the Registration Statement: (i) there has been no event, occurrence or development that has had or that would reasonably be expected to
result in a Material Adverse Effect; (ii) the Company has not incurred any liabilities (contingent or otherwise) other than: (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice;
and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or required to be disclosed in filings made with the Commission; (iii) the Company has not altered its method of accounting;
(iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock; and (v) the Company
has not issued any equity securities to any officer, director or “Affiliate” (defined as any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a
Person, as such terms are used in and construed under Rule 144 under the Securities Act), except pursuant to existing Company stock option plans. The Company does not have pending 
  

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 before the Commission any request for confidential treatment of information. Except for the issuance of the Securities contemplated by this Agreement, no event,
liability or development has occurred or exists with respect to the Company or the Subsidiary or their respective business, properties, operations or financial condition, that would be required to be disclosed by the Company under applicable
securities laws at the time this representation is made that has not been publicly disclosed prior to the date of this Agreement or in the Time of Sale Prospectus. 
 (I) Litigation. Except as described in Schedule 3(I) hereto, there is no Proceeding pending or, to the knowledge of the Company, threatened against or affecting the Company, the Subsidiary or any of their
respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”) which: (i) adversely affects or
challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities; or (ii) would, if there were an unfavorable decision, reasonably be expected to result in a Material Adverse Effect. Neither the Company
nor the Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and
to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company or any current or former director or officer of the Company. The Commission has not issued any stop order or other order
suspending the effectiveness of any registration statement filed by the Company or the Subsidiary under the Exchange Act or the Securities Act. None of the Company’s or the Subsidiary’s employees is a member of a union that relates to such
employee’s relationship with the Company, and neither the Company nor its Subsidiary is a party to a collective bargaining agreement, and the Company and its Subsidiary believe that their relationships with their employees are good. To the
Company’s knowledge: (i) no executive officer is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any
other contract or agreement or any restrictive covenant in favor of any third party as a result of such executive officer’s activities on behalf of the Company; and (ii) the continued employment of each such executive officer does not
subject the Company or the Subsidiary to any liability with respect to any of the foregoing matters. The Company and the Subsidiary are in compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment and
employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
 (J) Labor Relations. No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the
Company which would reasonably be expected to result in a Material Adverse Effect. 
 (K) Compliance. Neither the Company nor the
Subsidiary: (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or the Subsidiary under), nor has the Company or the
Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound
(whether or not such default or violation has been waived); (ii) is in violation of any order of any court, arbitrator or governmental body; or (iii) is or has been in violation of any statute, rule or regulation of any governmental
authority, including without limitation all foreign, federal, state and local laws applicable to its business and all such laws that affect the environment, except in each case as would not have a Material Adverse Effect. 
 (L) Regulatory Permits. The Company and the Subsidiary possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities required to conduct their respective businesses as described in the SEC Reports, except where the failure to possess such permits 
  

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 would not reasonably be expected to have a Material Adverse Effect (“Material Permits”), and neither the Company nor the Subsidiary has received any
notice of proceedings relating to the revocation or modification of any Material Permit. 
 (M) Title to Assets. Except as described
in, or incorporated by reference into, the Registration Statement, the Company and the Subsidiary have good and marketable title in fee simple to all real property owned by them that is material to the business of the Company and the Subsidiary and
good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiary, in each case free and clear of all Liens, except for Liens as do not materially affect the value of such property
and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiary and Liens for the payment of federal, state or other taxes, the payment of which is neither delinquent nor subject to
penalties. Any real property and facilities held under lease by the Company and the Subsidiary are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiary are in compliance. 
 (N) Patents and Trademarks. The Company and the Subsidiary have, or have rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other similar intellectual property rights necessary or material for use in connection with their respective businesses as described in the SEC Reports
except where the failure to so have would not have a Material Adverse Effect (collectively, the “Intellectual Property Rights”). Neither the Company nor the Subsidiary has received any written notice that the Intellectual Property
Rights used by the Company or the Subsidiary violates or infringes upon the rights of any Person. To the knowledge of the Company: (i) all such Intellectual Property Rights are enforceable; and (ii) there is no existing infringement by
another Person of any of the Intellectual Property Rights of others. The Company and the Subsidiary have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties, except where
failure to do so would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
 (O)
Insurance. The Company and the Subsidiary are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiary
are engaged, including, but not limited to, directors and officers insurance coverage. To the knowledge of the Company, such insurance contracts and policies are accurate and complete. Neither the Company nor the Subsidiary has any reason to believe
that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase in cost. 

(P) Transactions With Affiliates and Employees. Except as set forth in the SEC Reports, to the Company’s knowledge, none of the officers,
directors or employees of the Company is presently a party to any transaction with the Company or the Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the
furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer,
director, or any such employee has a substantial interest or is an officer, director, trustee or partner, in each case in excess of $60,000 other than for: (i) payment of salary or consulting fees for services rendered; (ii) reimbursement
for expenses incurred on behalf of the Company; and (iii) other employee benefits, including stock option agreements under any stock option plan of the Company. 
 (Q) Sarbanes-Oxley. The Company is in material compliance with all material provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it as of the date hereof and Closing Date. 
  

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 (R) Certain Fees. Except as otherwise provided in this Agreement, no brokerage or finder’s fees or commissions are or will be payable by the
Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. The Purchasers shall have no obligation under the
Securities Purchase Agreement with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with the transactions contemplated by the
Transaction Documents. 
 (S) Trading Market Rules. The issuance and sale of the Securities hereunder does not contravene the rules
and regulations of the Trading Market. 
 (T) Investment Company. The Company is not, and is not an Affiliate of, and immediately
after receipt of payment for the Securities, will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. The Company shall use all reasonable efforts to conduct its
business in a manner so that it will not become subject to the Investment Company Act. 
 (U) Registration Rights. Except as disclosed
in, or incorporated by reference into, the Registration Statement, no Person has any right to cause the Company to effect the registration under the Securities Act of any securities of the Company. 
 (V) Listing and Maintenance Requirements. The Company’s Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange
Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has the Company received any notification that the
Commission is contemplating terminating such registration. Except as disclosed in the SEC Reports with respect to the Company’s receipt of a notice that the Company is not in compliance with the minimum bid requirement for continued listing on
the Nasdaq Global Market as disclosed in the SEC Reports, the Company has not, in the 12 months preceding the date hereof, received notice from the Trading Market on which the Common Stock is or has been listed or quoted to the effect that the
Company is not in compliance with the listing or maintenance requirements of such Trading Market. Other than the minimum bid requirement for continued listing on the Trading Market, the Company is, and has no reason to believe that it will not
continue to be during the next twelve months, in compliance with all such listing and maintenance requirements. 
 (W) Application of
Takeover Protections. The Company and its Board of Directors have taken all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights
agreement) or other similar anti-takeover provision under the Company’s articles of organization (or similar charter documents) or the laws of its state of incorporation that is or could become applicable to the Purchasers as a result of the
Purchasers and the Company fulfilling their obligations or exercising their rights under the Transaction Documents, including without limitation as a result of the Company’s issuance of the Securities and the Purchasers’ ownership of the
Securities. 
 (X) Solvency. Based on the consolidated financial condition of the Company as of the Closing Date after giving effect
to the receipt by the Company of the proceeds from the sale of the Securities hereunder: (i) the Company’s fair saleable value of its assets exceeds the amount that will be required to be paid on or in respect of the Company’s
existing debts and other liabilities (including known contingent liabilities) as they mature; (ii) the Company’s assets do not constitute unreasonably small capital to carry on its business for the current fiscal year as now conducted and
as proposed to be conducted including its capital needs taking into account the particular capital requirements of the business conducted by the Company, and projected capital requirements and capital availability thereof; and (iii) the current
cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its debt
when such 
  

 GTC Biotherapeutics, Inc. 
 February 7, 2008 
 Page 10 
  
 amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and
amounts of cash to be payable on or in respect of its debt). The Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any
jurisdiction within one year from the Closing Date. The SEC Reports set forth as of the dates thereof all outstanding secured and unsecured Indebtedness of the Company or the Subsidiary, or for which the Company or the Subsidiary has commitments.
For the purposes of this Agreement, “Indebtedness” shall mean: (i) any liabilities for borrowed money or amounts owed in excess of $50,000 (other than trade accounts payable incurred in the ordinary course of business);
(ii) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others, whether or not the same are or should be reflected in the Company’s balance sheet (or the notes thereto), except guaranties by
endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (iii) the present value of any lease payments in excess of $50,000 due under leases required to be capitalized in
accordance with GAAP. Neither the Company nor the Subsidiary is in default with respect to any Indebtedness. 
 (Y) Tax Status. Except
for matters that would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, the Company and each Subsidiary has filed all necessary federal, state and foreign income and franchise tax returns and has
paid or accrued all taxes shown as due thereon, and the Company has no knowledge of a tax deficiency which has been asserted or threatened against the Company or the Subsidiary. 
 (Z) Foreign Corrupt Practices. Neither the Company, nor to the knowledge of the Company, any agent or other person acting on behalf of the
Company, has: (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity; (ii) made any unlawful payment to foreign or domestic
government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds; (iii) failed to disclose fully any contribution made by the Company (or made by any person acting on its behalf of which the
Company is aware) which is in violation of law; or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended. 
 (AA) Accountants. To the knowledge of the Company, PricewaterhouseCoopers LLP, the Company’s auditors and whom the Company expects will express their opinion with respect to the financial statements to be
included in the Company’s next Annual Report on Form 10-K, are a registered public accounting firm as required by the Securities Act. 
 (BB) Regulation M Compliance. The Company has not, and to its knowledge no one acting on its behalf has: (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the
price of any security of the Company to facilitate the sale or resale of any of the Securities; (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of, any of the Securities (other than for the placement
agent’s placement of the Securities); or (iii) paid or agreed to pay to any person any compensation for soliciting another to purchase any other securities of the Company. 
 (CC) Approvals. Other than the filing of an additional listing application, the issuance and listing on the Trading Market of the Shares requires
no further approvals, including but not limited to, the approval of shareholders. 
 (DD) FINRA Affiliations. To the Company’s
knowledge, there are no affiliations with any FINRA member firm among the Company’s officers, directors or, to the knowledge of the Company, any five percent (5%) or greater stockholder of the Company, except as set forth in the Time of
Sale Prospectus. 
  

 GTC Biotherapeutics, Inc. 
 February 7, 2008 
 Page 11 
  
 SECTION 4. INDEMNIFICATION. The Company agrees to the indemnification and other agreements set forth in the Indemnification Provisions (the
“Indemnification”) attached hereto as Addendum A, the provisions of which are incorporated herein by reference and shall survive the termination or expiration of this Agreement. R&R agrees to indemnify the Company, its
directors and officers and any controlling persons (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) against all losses, claims, damages, expenses and liabilities, as the same are incurred
(including the reasonable fees and expenses of counsel) which the Company or any such party may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, claim, damage, expense or liability arises: (i) out of or is
based upon any untrue statement or alleged untrue statement of a material fact contained in information furnished in writing by or on behalf of R&R to the Company expressly for use in the Registration Statement or the Time of Sale Prospectus or
arises out of or is based upon any omission or alleged omission to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; or (ii) from any act,
omission or otherwise by any sub placement agent and/or selected dealer utilized by R&R in connection with the Placement. 
 SECTION 5. ENGAGEMENT
TERM. R&R’s engagement hereunder will be for the period of 30 days. The engagement may be terminated by either the Company or R&R at any time upon 10 days’ written notice. Notwithstanding anything to the contrary contained
herein, the provisions concerning confidentiality, indemnification, contribution limitation of liability, limitation of engagement and the Company’s obligation to reimburse R&R for its actual out-of-pocket expenses incurred (with supporting
invoices/receipts) up to a maximum of $25,000, as set forth in Section 1 herein, and the Company’s obligations contained in the Indemnification Provisions will survive any expiration or termination of this Agreement for a period of twelve
months, other than survival of the indemnification provisions, which shall survive for a period of two years. R&R, its affiliates, advisors and representatives agree not to use any confidential information concerning the Company provided to them
by the Company for any purposes other than those contemplated under this Agreement. R&R will use all reasonable efforts to cause its affiliates, advisors and representatives to comply with the terms of this Agreement and agrees to be responsible
for any breach of this Agreement by such affiliates, advisors or representatives. 
 SECTION 6. R&R INFORMATION. The Company agrees that any
information or advice rendered by R&R in connection with this engagement is for the confidential use of the Company only in their evaluation of the Placement and, except as otherwise required by law or by rule or regulation of any
self-regulatory organizations to which it is subject, the Company will not disclose or otherwise refer to the advice or information in any manner without R&R’s prior written consent. Notwithstanding the foregoing, the Company may file this
Agreement and any other Transaction Document with the Commission in any filing made by the Company pursuant to the Securities Act, the Exchange Act or the rules and regulations thereunder, and may refer to R&R’s engagement hereunder and the
terms of this Agreement as well in any such filing. 
 SECTION 7. NO FIDUCIARY RELATIONSHIP. This Agreement does not create, and shall not be
construed as creating rights enforceable by any person or entity not a party hereto, except those entitled hereto by virtue of the Indemnification Provisions hereof. The Company acknowledges and agrees that R&R is not and shall not be construed
as a fiduciary of the Company and shall have no duties or liabilities to the equity holders or the creditors of the Company or any other person by virtue of this Agreement or the retention of R&R hereunder, all of which are hereby expressly
waived. 
  

 GTC Biotherapeutics, Inc. 
 February 7, 2008 
 Page 12 
  
 SECTION 8. CLOSING. The obligations of the Placement Agent and the closing of the sale of the Securities hereunder are subject to the accuracy, when effective as
set forth herein and on the Closing Date, of the representations and warranties on the part of the Company and the Subsidiary contained herein, to the accuracy of the statements of the Company and the Subsidiary made in any certificates pursuant to
the provisions hereof, to the performance by the Company and the Subsidiary of their obligations hereunder, and to each of the following additional terms and conditions: 
 (A) No stop order suspending the effectiveness of the Registration Statement shall have been issued and no proceedings for that purpose shall have been initiated or threatened by the Commission, and any request for
additional information on the part of the Commission (to be included in the Registration Statement, the Time of Sale Prospectus or otherwise) shall have been complied with to the reasonable satisfaction of the Placement Agent. Any filings required
to be made by the Company in connection with the offer and sale of the Securities shall have been timely filed with the Commission. 
 (B)
The Placement Agent shall not have discovered and disclosed to the Company on or prior to the Closing Date that the Registration Statement, the Time of Sale Prospectus or any amendment or supplement thereto contains an untrue statement of a fact
which, in the opinion of counsel for the Placement Agent, is material or omits to state any fact which, in the opinion of such counsel, is material and is required to be stated therein or is necessary to make the statements therein in light of the
circumstances under which they are made not misleading and the Company shall not have filed a further Prospectus Supplement or Free Writing Prospectus remedying such statement or omission. 
 (C) All corporate proceedings and other legal matters incident to the authorization, form, execution, delivery and validity of each of this Agreement,
the Securities, the Registration Statement, the Time of Sale Prospectus and all other legal matters relating to this Agreement and the transactions contemplated hereby shall be reasonably satisfactory in all material respects to counsel for the
Placement Agent, and the Company shall have furnished to such counsel all documents and information that they may reasonably request to enable them to pass upon such matters. 
 (D) The Placement Agent shall have received from outside counsel to the Company such counsel’s written opinion, addressed to the Placement Agent
dated as of the Closing Date, in form and substance reasonably satisfactory to the Placement Agent, and a negative assurance letter from such counsel for purposes of Rule 10b-5 under the Exchange Act. 
 (E) Except as described in, or incorporated by reference into, the Registration Statement: (i) neither the Company nor the Subsidiary shall have
sustained since the date of the latest audited financial statements included or incorporated by reference in the Time of Sale Prospectus, any loss or interference with its business from fire, explosion, flood, terrorist act or other calamity,
whether or not covered by insurance, or from any labor dispute or court or governmental action, order or decree, otherwise than as set forth in or contemplated by the Time of Sale Prospectus; and (ii) since such date there shall not have been
any change in the capital stock or long-term debt of the Company or any of the Subsidiary or any change, or any development involving a prospective change, in or affecting the business, financial condition, stockholders’ equity or results of
operations of the Company and the Subsidiary, otherwise than as set forth in or contemplated by the Time of Sale Prospectus, the effect of which, in any such case described in clause (i) or (ii), is, in the commercially reasonable judgment of
the Placement Agent, so material and adverse as to make it impracticable or inadvisable to proceed with the sale or delivery of the Securities on the terms and in the manner contemplated by the Base Prospectus and the Time of Sale Prospectus.

 (F) The Common Stock is registered under the Exchange Act and, as of the Closing Date, the Shares shall be authorized for trading on the
Trading Market, and satisfactory evidence of such actions shall have been provided to the Placement Agent. The Company shall have taken no action designed to, or likely 
  

 GTC Biotherapeutics, Inc. 
 February 7, 2008 
 Page 13 
  
 to have the effect of terminating the registration of the Common Stock under the Exchange Act or delisting or suspending from trading the Common Stock from the Trading
Market, nor has the Company received any information suggesting that the Commission or the Trading Market is contemplating terminating such registration or listing; provided, however, that notwithstanding anything to the contrary
herein, the receipt by the Company of a notice from the Trading Market of the Company’s failure to meet the continued listing requirement for minimum bid price on the Trading Market shall not cause or result in the terms and conditions set
forth in this paragraph not being met or satisfied for purposes of this Agreement. 
 (G) Subsequent to the execution and delivery of this
Agreement, there shall not have occurred any of the following: (i) trading in securities generally on the New York Stock Exchange, the NASDAQ Global Market or the American Stock Exchange or in the over-the-counter market, or trading in any
securities of the Company on any exchange or in the over-the-counter market, shall have been suspended or minimum or maximum prices or maximum ranges for prices shall have been established on any such exchange or such market by the Commission, by
such exchange or by any other regulatory body or governmental authority having jurisdiction; (ii) a banking moratorium shall have been declared by federal or state authorities or a material disruption has occurred in commercial banking or
securities settlement or clearance services in the United States; (iii) the United States shall have become engaged in hostilities in which it is not currently engaged, the subject of an act of terrorism, there shall have been an escalation in
hostilities involving the United States, or there shall have been a declaration of a national emergency or war by the United States; or (iv) there shall have occurred any other calamity or crisis or any change in general economic, political or
financial conditions in the United States or elsewhere, if the effect of any such event in clause (iii) or (iv) makes it, in the sole commercially reasonable judgment of the Placement Agent, impracticable or inadvisable to proceed with the
sale or delivery of the Securities on the terms and in the manner contemplated by the Base Prospectus and the Prospectus Supplement. 
 (H)
No action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by any governmental agency or body which would, as of the Closing Date, prevent the issuance or sale of the Securities or materially
and adversely affect or potentially and adversely affect the business or operations of the Company; and no injunction, restraining order or order of any other nature by any federal or state court of competent jurisdiction shall have been issued as
of the Closing Date which would prevent the issuance or sale of the Securities or materially and adversely affect or potentially and adversely affect the business or operations of the Company. 
 (I) The Company shall have prepared and filed with the Commission a Current Report on Form 8-K with respect to the Placement. 
 (J) The Company shall have entered into subscription agreements with each of the Purchasers and such agreements shall be in full force and effect and
shall contain representations and warranties of the Company as agreed between the Company and the Purchasers. 
 (K) FINRA shall have raised
no objection to the fairness and reasonableness of the terms and arrangements of this Agreement. In addition, the Company shall, if requested by the Placement Agent, make or authorize Placement Agent’s counsel to make on the Company’s
behalf, an Issuer Filing with FINRA’s Corporate Financing Department pursuant to NASD Rule 2710 with respect to the Registration Statement and pay all filing fees required in connection therewith. 
 (L) Prior to the Closing Date, the Company shall have furnished to the Placement Agent such further information, certificates and documents as the
Placement Agent may reasonably request. 
  

 GTC Biotherapeutics, Inc. 
 February 7, 2008 
 Page 14 
  
 All opinions, letters, evidence and certificates mentioned above or elsewhere in this Agreement shall be deemed to be in compliance with the provisions
hereof only if they are in form and substance reasonably satisfactory to counsel for the Placement Agent. 
 SECTION 9. Governing Law. This Agreement
will be governed by, and construed in accordance with, the laws of the State of New York applicable to agreements made and to be performed entirely in such State. This Agreement may not be assigned by either party without the prior written consent
of the other party. This Agreement shall be binding upon and inure to the benefit of the parties hereto, and their respective successors and permitted assigns. Any right to trial by jury with respect to any dispute arising under this Agreement or
any transaction or conduct in connection herewith is waived. Any dispute arising under this Agreement may be brought into the courts of the State of New York or into the Federal Court located in New York, New York and, by execution and delivery of
this Agreement, the Company hereby accepts for itself and in respect of its property, generally and unconditionally, the jurisdiction of aforesaid courts. Each party hereto hereby irrevocably waives personal service of process and consents to
process being served in any such suit, action or proceeding by delivering a copy thereof via overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. If either party shall commence an action or
proceeding to enforce any provisions of a Transaction Document, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys fees and other costs and expenses incurred with the investigation,
preparation and prosecution of such action or proceeding. 
 SECTION 10. Entire Agreement/Misc. This Agreement (including the attached Indemnification
Provisions) embodies the entire agreement and understanding between the parties hereto and supersedes all prior agreements and understandings relating to the subject matter hereof. If any provision of this Agreement is determined to be invalid or
unenforceable in any respect, such determination will not affect such provision in any other respect or any other provision of this Agreement, which will remain in full force and effect. This Agreement may not be amended or otherwise modified or
waived except by an instrument in writing signed by both R&R and the Company. The representations, warranties, agreements and covenants contained herein shall survive the closing of the Placement and delivery and/or exercise of the Securities,
as applicable as provided in Section 5 hereof. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been
signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or a .pdf format file, such signature shall
create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature page were an original thereof. 
 SECTION 11. Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be
deemed given and effective on the earliest of: (i) the date of transmission, if such notice or communication is delivered via facsimile or email at the facsimile number or email address specified on the signature pages attached hereto prior to
5:30 p.m. (New York City time) on a business day; (ii) the next business day after the date of transmission, if such notice or communication is delivered via facsimile or email at the facsimile number or email address on the signature pages
attached hereto on a day that is not a business day or later than 5:30 p.m. (New York City time) on any business day; (iii) the business day following the date of mailing, if sent by U.S. nationally recognized overnight courier service; or
(iv) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages hereto. 
  

 GTC Biotherapeutics, Inc. 
 February 7, 2008 
 Page 15 
  
 Please confirm that the foregoing correctly sets forth our agreement by signing and returning to R&R the enclosed copy of this Agreement. 

 

			
	 Very truly yours,
  
 RODMAN & RENSHAW, LLC

		
	By:	 	/s/ Edward Rubin
		 	 Edward Rubin
 Title: President

	  
 Address for notice:
  
 1270 Avenue of the Americas, 16th Floor
 New York, NY, 10020
 Fax: 212-581-5690
 Email: erubin@rodmanandrenshaw.com
 Attn: Edward Rubin
  
 With a copy to:
  
 Morse, Zelnick, Rose & Lander, LLP
 405 Park Avenue, Suite 1401
 New York, NY 10022
 Fax: 212-838-9190
 Email: krose@mzrl.com
 Attn: Kenneth S. Rose, Esq.

 Accepted and Agreed to as of 
 the date first written above: 
  

			
	GTC BIOTHERAPEUTICS, INC.
		
	By:	 	/s/ John B. Green
		 	 Name: John B. Green
 Title: Senior Vice
President

 Address for notice: 
 175 Crossing Boulevard 
 Framingham, MA 01702 
 Fax: 508-370-5491 
 Email: geoffrey.cox@gtc-bio.com 
 Attn: Geoffrey Cox, Ph.D. 
         Chairman, Chief Executive Officer, & President 
 With a copy to: 
 Edwards Angell Palmer & Dodge LLP 
 111 Huntington Avenue 
 Boston, MA 02199 
 Fax: 617-227-4420 
 Email: ngardiner@eapdlaw.com 
 Attn: Nathaniel S. Gardiner 
  

 GTC Biotherapeutics, Inc. 
 February 7, 2008 
 Page A-1 
 ADDENDUM A 
 INDEMNIFICATION PROVISIONS 
 In connection with the engagement of Rodman & Renshaw, LLC (“R&R”) by GTC Biotherapeutics, Inc. (the “Company”) pursuant to a letter agreement dated February 7,
2008, between the Company and R&R, as it may be amended from time to time in writing (the “Agreement”), the Company hereby agrees as follows: 
  

	1.	To the extent permitted by law, the Company will indemnify R&R, each sub placement agent and/or selected dealer and their respective affiliates, stockholders, directors,
officers, employees and controlling persons (within the meaning of Section 15 of the Securities Act of 1933, as amended, or Section 20 of the Securities Exchange Act of 1934) (each such person, an “Indemnified Person”)
against all losses, claims, damages, expenses and liabilities, as the same are incurred (including the reasonable fees and expenses of counsel), relating to or arising out of its activities hereunder or pursuant to the Agreement, except to the
extent that any losses, claims, damages, expenses or liabilities (or actions in respect thereof) (i) are based upon any untrue statement or omission of a material fact contained in or omitted from, as applicable, the Registration Statement,
Prospectus Supplement, free writing prospectus or Time of Sale Information as furnished in writing by or on behalf of such Indemnified Person to the Company expressly for use therein, or (ii) are found in a final judgment (not subject to
appeal) by a court of law to have resulted primarily and directly from such Indemnified Person’s bad faith, willful misconduct or gross negligence. 

  

	2.	Promptly after receipt by R&R of notice of any claim or the commencement of any action or proceeding with respect to which an Indemnified Person may be entitled to indemnity
hereunder, R&R will notify the Company in writing of such claim or of the commencement of such action or proceeding, and the Company will assume the defense of such action or proceeding and will employ counsel reasonably satisfactory to such
Indemnified Person and will pay the fees and expenses of such counsel. If R&R fails to provide prompt notice of such claim or proceeding the Company shall be relieved of its obligations set forth in paragraphs 1 and 4 solely if and to the extent
the Company is materially prejudiced by such failure to notify. Notwithstanding the preceding sentences, all Indemnified Persons will be entitled to employ counsel separate from counsel for the Company and from any other party in such action if
counsel for such Indemnified Person reasonably determines in writing that it would be inappropriate under the applicable rules of professional responsibility for the same counsel to represent both the Company and such Indemnified Person(s). In such
event, the reasonable fees and disbursements of no more than one such separate counsel will be paid by the Company. The Company will have the exclusive right to settle the claim or proceeding provided that the Company will not settle any such claim,
action or proceeding without the prior written consent of each Indemnified Person, where the rights, remedies, claims, or counter- or cross-claims of such Indemnified Person will be dismissed or precluded in connection therewith, which consent will
not be unreasonably withheld. 

  

	3.	The Company agrees to notify R&R promptly of the assertion against it or any other person of any claim or the commencement of any action or proceeding relating to the Placement
of the Securities. 

  

	4.	If for any reason the foregoing indemnity is unavailable to an Indemnified Person or insufficient to hold such Indemnified Person harmless, then the Company shall contribute to the
amount paid or payable by such Indemnified Person as a result of such losses, claims, damages or liabilities in such proportion as is appropriate to reflect not only the relative benefits received by the Company on the one hand and all Indemnified
Persons on the other, but also the relative fault of the Company on the 

 GTC Biotherapeutics, Inc. 
 February 7, 2008 
 Page A-2 
  
 one hand and all Indemnified Persons collectively on the other that resulted in such losses, claims, damages or liabilities, as well as any relevant equitable
considerations. The amounts paid or payable by a party in respect of losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees and expenses incurred in defending any litigation, proceeding or other
action or claim. 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 fraudulent misrepresentation. 
  

	5.	These Indemnification Provisions shall remain in full force and effect whether or not the transaction contemplated by the Agreement is completed and shall survive the termination of
the Agreement, and shall be in addition to any liability that the Company might otherwise have to any indemnified party under the Agreement or otherwise. 

  

			
	RODMAN & RENSHAW, LLC
		
	By:	 	/s/ Edward Rubin
		 	 Edward Rubin
 Title: President

 Accepted and Agreed to as of 
 the date first written above: 
  

			
	GTC BIOTHERAPEUTICS, INC.
		
	By:	 	/s/ John B. Green
		 	 Name: John B. Green
 Title: Senior Vice
President

  

 SCHEDULE 2(E) 
 FREE WRITING PROSPECTUSES 
  

 SCHEDULE 3(F) 
 EXERCISE PRICE ADJUSTMENTS OF CERTAIN OUTSTANDING WARRANTS 
 Anti-dilution adjustments to the
warrants issued by the Company to certain institutional investors entering into the securities purchase agreement with the Company dated August 8, 2005, pursuant to section 3(b) of those warrants, the form of which is filed as Exhibit 10.3 to
the Company’s Current report on Form 8-K filed with the Securities and Exchange Commission on August 8, 2005.Form of Securities Purchase Agreement.

 Exhibit 10.2 
 FORM OF SECURITIES PURCHASE AGREEMENT 
 This Securities Purchase Agreement (this
“Agreement”) is dated as of February 7, 2008, between GTC Biotherapeutics, Inc., a Massachusetts corporation (the “Company”), and each purchaser identified on the signature pages hereto (each, including its
successors and assigns, a “Purchaser” and collectively the “Purchasers”). 
 WHEREAS, subject to the terms
and conditions set forth in this Agreement and pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “Securities Act”), the Company desires to issue and sell to each Purchaser, and each
Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described in this Agreement. 
 NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows:

 ARTICLE I. 
 DEFINITIONS

 1.1 Definitions. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following
terms have the meanings set forth in this Section 1.1: 
 “Action” shall have the meaning ascribed to
such term in Section 3.1(j). 
 “Affiliate” means any Person that, directly or indirectly through one or
more intermediaries, controls or is controlled by or is under common control with a Person as such terms are used in and construed under Rule 405 under the Securities Act. With respect to a Purchaser, any investment fund or managed account that is
managed on a discretionary basis by the same investment manager as such Purchaser will be deemed to be an Affiliate of such Purchaser. 
 “Beneficial Owner” means with respect to any securities, any Person or any of such Person’s Affiliates, representatives or associates, directly or indirectly, who (i) “beneficially
own” such securities as determined pursuant to Rule 13d-3 under the Exchange Act, (ii) has the right to acquire, vote or dispose of such securities or (iii) has any agreement, arrangement or understanding for the purpose of acquiring,
holding, voting or disposing of such securities. 
 “Board of Directors” means the board of directors of the
Company. 
 “Business Day” means any day except any Saturday, any Sunday, any day which is a federal legal
holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close. 
  

 1 

 “Closing” means the closing of the purchase and sale of the Securities
pursuant to Section 2.1. 
 “Closing Date” has the meaning ascribed to such term in Section 2.1.

 “Closing Price” means on any particular date (a) the last reported closing bid price per share of
Common Stock during regular trading hours on such date on the Trading Market (as reported by Bloomberg L.P. at 4:15 p.m. (New York City time)), or (b) if there is no such price on such date, then the closing bid price on the Trading Market on
the date nearest preceding such date (as reported by Bloomberg L.P. at 4:15 p.m. (New York City time)) , or (c) if the Common Stock is not then listed or quoted on a Trading Market and if prices for the Common Stock are then reported in the
“pink sheets” published by Pink Sheets LLC (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) if the shares of Common
Stock are not then publicly traded the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Purchasers of a majority of the Shares and any outstanding Warrant Shares, in the aggregate,
still held by the Purchasers and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company. 
 “Commission” means the Securities and Exchange Commission. 
 “Common Stock” means
the common stock of the Company, par value $0.01 per share, and any other class of securities into which such securities may hereafter be reclassified or changed into. 
 “Common Stock Equivalents” means any securities of the Company or the Subsidiary which would entitle the holder thereof
to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder
thereof to receive, Common Stock. 
 “Company Counsel” means Edwards Angell Palmer & Dodge LLP, with
offices located at 111 Huntington Avenue, Boston, Massachusetts 02199. 
 “Disclosure Schedules” means the
Disclosure Schedules of the Company delivered concurrently herewith. 
 “Discussion Time” has the meaning
ascribed to such term in Section 3.2(g). 
 “DTC” means The Depositary Trust Company. 
 “DWAC” has the meaning ascribed to such term in Section 2.3(a). 
 “Evaluation Date” has the meaning ascribed to such term in Section 3.1(r). 
  

 2 

 “Exchange Act” means the Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder. 
 “Exempt Issuance” means the issuance of
(a) shares of Common Stock or options to employees, officers or directors of the Company pursuant to any stock or option plan duly adopted for such purpose, by a majority of the non-employee members of the Board of Directors or a majority of
the members of a committee of non-employee directors established for such purpose, (b) securities upon the exercise or exchange of or conversion of any Securities issued hereunder and/or other securities issued and outstanding on the date of
this Agreement and exercisable or exchangeable for or convertible into shares of Common Stock, provided that such securities have not been amended since the date of this Agreement to increase the number of such securities or to decrease the
exercise, exchange or conversion price of such securities and (c) securities issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors of the Company, provided that any such issuance shall
only be to a Person which is, itself or through its subsidiaries, an operating company in a business synergistic with the business of the Company and in which the Company receives benefits in addition to the investment of funds, but shall not
include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities. 
 “FDA” has the meaning ascribed to such term in Section 3.1(ff). 
 “FDCA” has the meaning ascribed to such term in Section 3.1(ff). 
 “MZRL” means Morse, Zelnick, Rose & Lander, LLP with offices located at 405 Park Avenue, Suite 1401, New York
New York 10022. 
 “GAAP” shall have the meaning ascribed to such term in Section 3.1(h). 
 “Indebtedness” shall have the meaning ascribed to such term in Section 3.1(y). 
 “Intellectual Property Rights” shall have the meaning ascribed to such term in Section 3.1(o). 
 “Liens” means a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other
restriction. 
 “Material Adverse Effect” shall mean (i) a material adverse effect on the legality,
validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business, or financial condition of the Company and the Subsidiary, taken as a whole; provided, however, that such an
effect shall not be deemed to have occurred based on low cash position, continuing losses from operations or notice from the Trading Market of non-compliance with the minimum bid price requirement for continued listing, or (iii) a material
adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document. 
  

 3 

 “Material Permits” shall have the meaning ascribed to such term in
Section 3.1(m). 
 “Per Unit Purchase Price” equals $0.87. 
 “Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint
venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind. 
 “Pharmaceutical Product” has the meaning ascribed to such term in Section 3.1(gg). 
 “Placement Agent” means Rodman & Renshaw, LLC. 
 “Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial proceeding, such as a deposition), whether commenced or threatened. 
 “Prospectus” means the prospectus dated May 2, 2007 contained in the Registration Statement. 
 “Prospectus Supplement” means the supplement (or supplements) to the Prospectus relating to the placement of the
Securities and the plan of distribution thereof complying with Rule 424(b) under the Securities Act and filed with the Commission and delivered by the Company to each Purchaser at the Closing. 
 “Purchaser Party” shall have the meaning ascribed to such term in Section 4.8. 
 “Registration Statement” means the registration statement (File No. 333-142564) filed with the Commission on
May 2, 2007 and declared effective by the Commission on May 18, 2007, registering the issuance of the Shares, the Warrants and the Warrant Shares by the Company. 
 “Required Approvals” shall have the meaning ascribed to such term in Section 3.1(e). 
 “Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 
 “SEC Reports” shall have the meaning ascribed to such term in Section 3.1(h). 
 “Securities” means the Shares, the Warrants and the Warrant Shares. 
 “Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder. 
  

 4 

 “Shares” means the shares of Common Stock issued or issuable to each
Purchaser pursuant to this Agreement and excludes the Warrant Shares. 
 “Short Sales” means all “short
sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed to include the location and/or reservation of borrowable shares of Common Stock).
 “Subscription Amount” means, as to each Purchaser, the aggregate amount to be paid for Units purchased hereunder as
specified below such Purchaser’s name on the signature page of this Agreement and next to the heading “Subscription Amount,” in United States dollars and in immediately available funds. 
 “Subsidiary” means GTC Holdings Ltd., a Cayman Island entity, and shall, where applicable, include any subsidiary of the
Company formed or acquired after the date hereof that is a “significant subsidiary” as determined in accordance with Regulation S-X. 
 “Time of Sale Information” means the Prospectus, Prospectus Supplements and any “free-writing prospectuses” (as defined by Rule 405 under the Securities Act) filed by the Company and
delivered to the Purchaser on or prior to the date of this Agreement. 
 “Trading Day” means a day on which
the New York Stock Exchange is open for trading. 
 “Trading Market” means any of the following markets or
exchanges on which the Common Stock is listed or quoted for trading: the American Stock Exchange, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange or the OTC Bulletin Board and any
successors to any of such markets or exchanges. 
 “Transaction Documents” means this Agreement and the
Warrants and any other documents or agreements to be delivered to, or entered into with, the Purchasers and executed in connection with the transactions contemplated hereunder. 
 “Transfer Agent” means American Stock Transfer & Trust
Company, the current transfer agent of the Company, with a mailing address of 6201 15th Avenue, Brooklyn, New York 11219 and a facsimile number of 718-921-8206, and any successor transfer agent of the Company. 
 “Unit” means a unit consisting of one Share of Common Stock and a common stock purchase warrant to purchase one Warrant
Share. 
 “Variable Rate Transaction” has the meaning ascribed to such term in Section 4.12(b).

 “Warrants” means, collectively, the Common Stock purchase warrants, in the form attached as Exhibit
A hereto, delivered to the Purchasers at the Closing in accordance with Section 2.3(b) hereof, which Warrants shall be exercisable at any time on or after six months after the date of the Warrants and have a term of exercise equal to seven
years. 
  

 5 

 “Warrant Shares” means the shares of Common Stock issuable upon exercise
of the Warrants. 
 ARTICLE II. 
 PURCHASE AND SALE 
 2.1 Closing. 
 Upon the terms and subject to the conditions set forth herein, the Company agrees to sell, and the Purchasers, severally and not jointly, agree to purchase, up to an aggregate of $6,000,000 worth of Units. On the
third Trading Day following the date of this Agreement or such other date as the parties shall mutually agree (the “Closing Date”), (a) the Company and each Purchaser shall deliver the items set forth in Section 2.4,
(b) each Purchaser shall deliver or caused to be delivered to the Company immediately available funds equal to each Purchaser’s Subscription Amount pursuant to Section 2.2 and (c) the Company shall deliver or cause to be
delivered to each Purchaser the Shares and a certificate evidencing the Warrants purchased by such Purchaser under the Agreement in accordance with Section 2.3 (the “Closing”). The Closing shall occur at the offices of MZRL or
such other location as the parties shall mutually agree. 
 2.2 Delivery of Funds. 
 On the Closing Date, upon the satisfaction by the Company of the conditions set forth in Section 2.4(b) hereof, each Purchaser shall deliver to the
Company by wire transfer immediately available funds equal to the Purchaser’s Subscription Amount to the following account: 
  

			
	ABA Routing No.:	  	121-140-399
	Bank:	  	Silicon Valley Bank
	Account No.:	  	3300345727
	Beneficiary Name:	  	GTC Biotherapeutics, Inc.

 2.3 Delivery of Shares and Warrants. 
 (a) Shares. On or prior to the Closing Date, the Purchaser shall direct the broker-dealer at which the account or accounts to be credited with the
Shares being purchased by such Purchaser are maintained (which broker/dealer shall be a DTC participant) to set up a Deposit/Withdrawal at Custodian (“DWAC”) instructing the Transfer Agent to credit such account or accounts by means
of an electronic book-entry delivery on the Closing Date with such number of Shares equal to the Purchaser’s Subscription Amount divided by the Per Unit Purchase Price. 
 Immediately upon receipt by the Company of immediately available funds from each Purchaser equal to such Purchaser’s Subscription Amount, the
Company shall direct the Transfer Agent to credit such Purchaser’s account or accounts with the Shares pursuant to the information contained in the DWAC. 
  

 6 

 (b) Warrants. Immediately upon receipt by the Company of immediately available funds from each
Purchaser equal to such Purchaser’s Subscription Amount, the Company shall also deliver or cause to be delivered to such Purchaser (or to MZRL on behalf of the Purchaser) an original certificate evidencing the Warrant registered in the name of
such Purchaser to purchase up to a number of shares of Common Stock equal to 100% of such Purchaser’s Subscription Amount divided by the Per Unit Purchase Price, with an exercise price equal to $0.87, subject to adjustment as set forth in the
form attached as Exhibit A hereto. 
 2.4 Closing Conditions and Deliverables. 
 (a) The obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met: 

(i) the accuracy in all material respects on the Closing Date of the representations and warranties of the Purchasers contained herein;

 (ii) all obligations, covenants and agreements of each Purchaser required to be performed at or prior to the Closing Date
shall have been performed; and 
 (iii) the delivery to the Company by or on behalf of each Purchaser, on or prior to the
Closing Date, of the following items: 
 (A) this Agreement duly executed by such Purchaser; and 
 (B) such Purchaser’s Subscription Amount by wire transfer to the account as specified in writing by the Company. 
 (b) The respective obligations of the Purchasers hereunder in connection with the Closing are subject to the following conditions being
met: 
 (i) the accuracy in all material respects on the Closing Date of the representations and warranties of the Company
contained herein; 
 (ii) all obligations, covenants and agreements of the Company required to be performed at or prior to the
Closing Date shall have been performed; 
 (iii) the delivery by the Company, on or prior to the Closing Date, of the
following items: 
 (A) this Agreement duly executed by the Company; 
 (B) a legal opinion of Company Counsel, substantially in the form of Exhibit B attached hereto; 
  

 7 

 (C) a copy of the irrevocable instructions to the Transfer Agent to deliver via DWAC
Shares equal to such Purchaser’s Subscription Amount divided by the Per Unit Purchase Price, registered in the name of such Purchaser; 
 (D) a copy of the certificate issued by the Company evidencing the Warrant registered in the Purchaser’s name; and 
 (E) the Prospectus and Prospectus Supplement (which may be delivered in accordance with Rule 172 under the Securities Act). 
 (iv) there shall have been no Material Adverse Effect with respect to the Company since the date hereof; and 
 (v) from the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission or the Company’s principal Trading Market (except for any suspension of trading of limited
duration agreed to by the Company, which suspension shall be terminated prior to the Closing), and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg L.P. shall not have been suspended or limited, or
minimum prices shall not have been established on securities whose trades are reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United States or New York State authorities nor shall
there have occurred any material outbreak or escalation of hostilities or other national or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable
judgment of each Purchaser, makes it impracticable or inadvisable to purchase the Securities at the Closing. 
 Each Purchaser’s
obligations are expressly not conditioned on the purchase of Securities by any or all of the other Purchasers. 
 ARTICLE III. 
 REPRESENTATIONS AND WARRANTIES 
 3.1
Representations and Warranties of the Company. Except as set forth in the Disclosure Schedules, which Disclosure Schedules shall be deemed a part hereof and shall qualify any representation or otherwise made herein to the extent of the
disclosure contained in the corresponding section of the Disclosure Schedule, the Company hereby makes the following representations and warranties to each Purchaser: 
 (a) Subsidiaries. The Subsidiary is the Company’s only “significant subsidiary” as determined in accordance with
Regulation S-X. Except as described in the SEC Reports, the Company owns, directly or indirectly, all of the capital stock or other equity interests of the Subsidiary free and clear of any Liens, and all of the issued and outstanding shares of
capital stock of the Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities. 
  

 8 

 (b) Organization and Qualification. The Company and the Subsidiary are each
entities duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of their incorporation or organization (as applicable), with the requisite power and authority to own and use their
properties and assets and to carry on their business as currently conducted. Neither the Company nor the Subsidiary is in violation or default of any of the provisions of their respective certificate or articles of incorporation, bylaws or other
organizational or charter documents. Each of the Company and the Subsidiary is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or
property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would not reasonably be expected to result in a Material Adverse Effect and no Proceeding has been
instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification. 
 (c) Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each of the Transaction Documents and otherwise to
carry out its obligations hereunder and thereunder. The execution and delivery of each of the Transaction Documents by the Company and the consummation by it of the transactions contemplated thereby have been duly authorized by all necessary action
on the part of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders in connection therewith other than in connection with the Required Approvals. Each Transaction Document to which
the Company is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against
the Company in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’
rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law
or public policy relating thereto. 
 (d) No Conflicts. The execution, delivery and performance of the Transaction
Documents by the Company, the issuance and sale of the Securities and the consummation by the Company of the other transactions contemplated hereby and thereby do not and will not (i) conflict with or violate any provision of the Company’s
or the Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a
default) under, result in the creation of any Lien upon any of the properties or assets of the Company or the Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or
both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or the Subsidiary is a party or by which any property or asset of the Company or
the Subsidiary is bound or affected, or (iii) subject to 

  

 9 

 
the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any
court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case
of each of clauses (ii) and (iii), such as would not reasonably be expected to result in a Material Adverse Effect. 
 (e) Filings, Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other
governmental authority or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than (i) filings required pursuant to Section 4.4 of this Agreement, (ii) the filing
with the Commission of the Prospectus Supplement, (iii) application(s) to each applicable Trading Market for the listing of the Shares and Warrant Shares for trading thereon in the time and manner required thereby and (iv) such filings as
are required to be made under applicable Federal and state securities laws (collectively, the “Required Approvals”). 
 (f) Issuance of the Securities; Registration. The Securities are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully
paid and nonassessable, free and clear of all Liens imposed by the Company, other than restrictions on transfer provided for in the Transaction Documents. The Warrant Shares, when issued in accordance with the terms of the Warrants, will be validly
issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company, other than restrictions on transfer provided for in the Transaction Documents. On the Closing Date, the Shares will be listed and freely tradable, and the
Warrants Shares will authorized for listing, on the Trading Market. The Company has reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant to this Agreement and the Warrants. The Company has
prepared and filed the Registration Statement in conformity with the requirements of the Securities Act, which became effective on May 18, 2007, including the Prospectus, and such amendments and supplements thereto as may have been required to
the date of this Agreement. The Registration Statement is effective under the Securities Act and the Company has not received any notice, or has any knowledge, of (i) the issuance of any stop order by the Commission preventing or suspending the
effectiveness of the Registration Statement or suspending or preventing the use of the Prospectus by the Commission or (ii) the institution, or threat thereof, by the Commission of any proceedings for that purpose. The Company, if required by
the rules and regulations of the Commission, proposes to file the Prospectus Supplement, with the Commission pursuant to Rule 424(b). At the time the Registration Statement and any amendments thereto became effective, at the date of this Agreement
and at the Closing Date, the Registration Statement and any amendments thereto conformed and will conform in all material respects to the requirements of the Securities Act and did not and will not contain any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; and the Prospectus, the Prospectus Supplement and the free-writing
prospectuses, if any, and any amendments or 

  

 10 

 
supplements thereto, each as of its respective date, conformed and will conform in all material respects to the requirements of the Securities Act and did
not and will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. 
 (g) Capitalization. The capitalization of the Company as of December 30, 2007 (the last day of its most recently completed
fiscal year) is set forth in Schedule 3.1(g) hereto. Except (i) as a result of the purchase and sale of the Securities, (ii) as described in Schedule 3.1(g) or (iii) pursuant to the exercise of employee stock options
under the Company’s stock option plans, the issuance of shares of Common Stock to employees pursuant to the Company’s employee stock purchase plans and pursuant to the conversion or exercise of securities exercisable, exchangeable or
convertible into Common Stock under any of the Company’s equity incentive plans (the “Common Stock Equivalents”), there are no outstanding options, warrants, script rights to subscribe to, calls or commitments of any character
whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments, understandings or
arrangements by which the Company or the Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents. Except as described in Schedule 3.1(g) hereto, no Person has any right of first refusal,
preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents, which right has not been waived with respect to the transactions contemplated by the Transaction Documents.
Except as described in Schedule 3.1(g) hereto, the issuance and sale of the Securities will not obligate the Company to issue shares of Common Stock or other securities to any Person (other than the Purchasers) and will not result in a right
of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities. All of the outstanding shares of capital stock of the Company are validly issued, fully paid and nonassessable, have been
issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No further approval or authorization of
any stockholder, the Board of Directors or others is required for the issuance and sale of the Securities. Except as described in, or incorporated into, the Registration Statement, there are no stockholders agreements, voting agreements or other
similar agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders. 
 (h) SEC Reports; Financial Statements. The Company has complied in all material respects with requirements to file all reports,
schedules, forms, statements and other documents required to be filed by the Company under the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for one year preceding the date hereof (or such shorter period as the Company was
required by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC Reports”) on a timely
basis or has received a valid extension of such time of filing and has filed any such SEC 

  

 11 

 
Reports prior to the expiration of any such extension. As of their respective filing dates, the SEC Reports complied in all material respects with the
requirements of the Exchange Act and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading, except to the extent corrected by subsequently filed documents with the Commission. The financial statements of the Company included in the SEC Reports comply in all material
respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United States generally
accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements
may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated subsidiaries as of and for the dates thereof and the results of operations and cash flows for the
periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments. 
 (i)
Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included within the SEC Reports, except as disclosed in the SEC Reports or described in, or incorporated by reference
into, the Registration Statement, (i) there has been no event, occurrence or development that has had or that would reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities
(contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial
statements pursuant to GAAP or required to be disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or
other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except
pursuant to existing Company stock option plans. The Company does not have pending before the Commission any request for confidential treatment of information. Except for the issuance of the Securities contemplated by this Agreement, no event,
liability or development has occurred or exists with respect to the Company or the Subsidiary or their respective business, properties, operations or financial condition, that would be required to be disclosed by the Company under applicable
securities laws at the time this representation is made that has not been publicly disclosed prior to the date of this Agreement or described in, or incorporated by reference into, the Prospectus Supplement. 
 (j) Litigation. Except as described in Schedule 3.1(j) hereto, there is no Proceeding against or affecting the Company, the
Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”) which
(i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities or (ii) would, if there were an unfavorable 

  

 12 

 
decision, reasonably be expected to result in a Material Adverse Effect. Neither the Company nor the Subsidiary, nor any director or officer thereof, is or
has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or
contemplated, any investigation by the Commission involving the Company or any current or former director or officer of the Company. 
 (k) Labor Relations. No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company which would reasonably be expected to result in a Material Adverse Effect.
None of the Company’s or the Subsidiary’ employees is a member of a union that relates to such employee’s relationship with the Company or the Subsidiary, and neither the Company nor the Subsidiary is a party to a collective
bargaining agreement, and the Company and the Subsidiary believe that their relationships with their employees are good. To the Company’s knowledge, (i) no executive officer, 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 or non-competition agreement, or any other contract or agreement or any restrictive covenant in favor of any third party,
and (ii) the continued employment of each such executive officer does not subject the Company or the Subsidiary to any liability with respect to any of the foregoing matters. The Company and the Subsidiary are in compliance with all U.S.
federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. 
 (l) Compliance. Neither the Company nor the Subsidiary
(i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or the Subsidiary under), nor has the Company or the Subsidiary
received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or
not such default or violation has been waived), (ii) is in violation of any order of any court, arbitrator or governmental body, or (iii) is or has been in violation of any statute, rule or regulation of any governmental authority,
including without limitation all foreign, federal, state and local laws applicable to its business and all such laws that affect the environment, except in each case as would not reasonably be expected to result in a Material Adverse Effect.

 (m) Regulatory Permits. The Company and the Subsidiary possess all certificates, authorizations and permits issued
by the appropriate federal, state, local or foreign regulatory authorities required to conduct their respective businesses as described in the SEC Reports, except where the failure to possess such permits would not reasonably be expected to result
in a Material Adverse Effect (“Material Permits”), and neither the Company nor the Subsidiary has received any notice of proceedings relating to the revocation or modification of any Material Permit. 
  

 13 

 (n) Title to Assets. Except as described in, or incorporated by reference into,
the Registration Statement, the Company and the Subsidiary have good and marketable title in fee simple to all real property owned by them that is material to the business of the Company and the Subsidiary and good and marketable title in all
personal property owned by them that is material to the business of the Company and the Subsidiary, in each case free and clear of all Liens, except for Liens as do not materially affect the value of such property and do not materially interfere
with the use made and proposed to be made of such property by the Company and the Subsidiary and Liens for the payment of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties. Any real property and
facilities held under lease by the Company and the Subsidiary are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiary are in compliance. 
 (o) Patents and Trademarks. The Company and the Subsidiary have, or have rights to use, all patents, patent applications,
trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other similar intellectual property rights necessary or material for use in connection with their respective businesses as described
in the SEC Reports except where failure to so have would not reasonably be expected to have a Material Adverse Effect (collectively, the “Intellectual Property Rights”). Neither the Company nor the Subsidiary has received any
written notice that any of the Intellectual Property Rights used by the Company or the Subsidiary violates or infringes upon the rights of any Person. To the knowledge of the Company, (i) all such Intellectual Property Rights are enforceable
and (ii) there is no existing infringement by another Person of any of the Intellectual Property Rights of others. The Company and the Subsidiary have taken reasonable security measures to protect the secrecy, confidentiality and value of all
of their intellectual properties, except where failure to do so would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
 (p) Insurance. The Company and the Subsidiary are insured by insurers of recognized financial responsibility against such losses
and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiary are engaged, including, but not limited to, directors and officers insurance coverage. Neither the Company nor the Subsidiary has
any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase
in cost. 
 (q) Transactions With Affiliates and Employees. Except as set forth in the SEC Reports, to the
Company’s knowledge, none of the officers, directors or employees of the Company is presently a party to any transaction with the Company or the Subsidiary (other than for services as employees, officers and directors), including any contract,
agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of
the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner, in each case in excess of 

  

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$60,000 other than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of the
Company and (iii) other employee benefits, including stock option agreements under any stock option plan of the Company. 
 (r) Sarbanes-Oxley; Internal Accounting Controls. The Company is in material compliance with all provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it as of the Closing Date. The Company and the Subsidiaries
maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as
necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization, and
(iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company has established disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and designed such disclosure controls and procedures to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is
recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. The Company’s certifying officers have evaluated the effectiveness of the Company’s disclosure controls and
procedures as of the end of the period covered by the Company’s most recently filed periodic report under the Exchange Act (such date, the “Evaluation Date”). The Company presented in its most recently filed periodic report
under the Exchange Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no changes in the
Company’s internal control over financial reporting (as such term is defined in the Exchange Act) that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

 (s) Certain Fees. Except as set forth in the Prospectus Supplement, no brokerage or finder’s fees or
commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. The
Purchasers shall have no obligation under this Agreement with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with the transactions
contemplated by the Transaction Documents. 
 (t) Investment Company. The Company is not, and is not an Affiliate of,
and immediately after receipt of payment for the Securities, will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. The Company shall use reasonable best efforts to
conduct its business in a manner so that it will not become subject to the Investment Company Act of 1940, as amended. 
  

 15 

 (u) Registration Rights. Except as described in Schedule 3.1(u) hereto, no
Person has any right to cause the Company to effect the registration under the Securities Act of any securities of the Company. 
 (v) Listing and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the
effect of, terminating the registration of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating such registration. Except as disclosed in the SEC Reports with respect
to the Company’s receipt of a notice that it is not in compliance with the minimum bid requirement for continued listing on the Nasdaq Global Market, the Company has not, in the 12 months preceding the date hereof, received notice from the
Trading Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such Trading Market. Other than the minimum bid requirement for continued
listing on the Trading Market, the Company is, and has no reason to believe that it will not continue to be during the next twelve months, in compliance with all such listing and maintenance requirements. 
 (w) Application of Takeover Protections. The Company and the Board of Directors have taken all necessary action, if any, in order
to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Company’s certificate of incorporation (or similar
charter documents) or the laws of its state of incorporation that is or could become applicable to the Purchasers as a result of the Purchasers and the Company fulfilling their obligations or exercising their rights under the Transaction Documents,
including without limitation as a result of the Company’s issuance of the Securities and the Purchasers’ ownership of the Securities. 
 (x) Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company confirms that neither it nor, to the Company’s knowledge,
any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel with any information that it believes constitutes or might constitute material, non-public information which is not otherwise disclosed in the
Prospectus Supplement. The Company understands and confirms that the Purchasers will rely on the foregoing representation in effecting transactions in securities of the Company. All disclosure furnished by or on behalf of the Company to the
Purchasers regarding the Company, its business and the transactions contemplated hereby with respect to the representations and warranties made herein are true and correct with respect to such representations and warranties and do not contain any
untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements made therein, in light of the circumstances under which they were made and when made, not misleading.
The Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3.2 hereof. 
  

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 (y) No Integrated Offering. Assuming the accuracy of the Purchasers’
representations and warranties set forth in Section 3.2 hereof, neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any
offers to buy any security, under circumstances that would cause this offering of the Securities to be integrated with prior offerings by the Company for purposes of any applicable shareholder approval provisions of any Trading Market on which any
of the securities of the Company are listed or designated. 
 (z) Solvency. Based on the consolidated financial
condition of the Company as of the Closing Date, after giving effect to the receipt by the Company of the proceeds from the sale of the Securities hereunder, (i) the Company’s fair saleable value of its assets exceeds the amount that will
be required to be paid on or in respect of the Company’s existing debts and other liabilities (including known contingent liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small capital to carry on
its business as now conducted and as proposed to be conducted for the current fiscal year including its capital needs taking into account the particular capital requirements of the business conducted by the Company, and projected capital
requirements and capital availability thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the
cash, would be sufficient to pay all amounts on or in respect of its debt when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and
amounts of cash to be payable on or in respect of its debt). The Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any
jurisdiction within one year from the Closing Date. Schedule 3.1(z) hereto sets forth all outstanding secured and unsecured Indebtedness of the Company or the Subsidiary, or for which the Company or the Subsidiary has commitments. For the
purposes of this Agreement, “Indebtedness” means (a) any liabilities for borrowed money or amounts owed in excess of $50,000 (other than trade accounts payable incurred in the ordinary course of business), (b) all
guaranties, endorsements and other contingent obligations in respect of Indebtedness of others, whether or not the same are or should be reflected in the Company’s balance sheet (or the notes thereto), except guaranties by endorsement of
negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (c) the present value of any lease payments in excess of $50,000 due under leases required to be capitalized in accordance with
GAAP. Neither the Company nor the Subsidiary is in default with respect to any Indebtedness. 
 (aa) Tax Status. Except
for matters that would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, the Company and each Subsidiary has filed all necessary federal, state and foreign income and franchise tax returns and has
paid or accrued all taxes shown as due thereon, and the Company has no knowledge of a tax deficiency which has been asserted or threatened against the Company or the Subsidiary. 
  

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 (bb) Foreign Corrupt Practices. Neither the Company, nor to the knowledge of the
Company, any agent or other person acting on behalf of the Company, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity,
(ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company
(or made by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended. 
 (cc) Accountants. PricewaterhouseCoopers LLP is the Company’s auditor. To the knowledge and belief of the Company,
PricewaterhouseCoopers LLP (i) is a registered public accounting firm as required by the Exchange Act and (ii) is expected to express its opinion with respect to the financial statements to be included in the Company’s Annual Report
on Form 10-K for the year ended December 30, 2007. 
 (dd) Acknowledgment Regarding Purchasers’ Purchase of
Securities. The Company acknowledges and agrees that each of the Purchasers is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated thereby. The Company
further acknowledges that no Purchaser is 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 any
Purchaser or any of their respective representatives or agents in connection with the Transaction Documents and the transactions contemplated thereby is merely incidental to the Purchasers’ purchase of the Securities. The Company further
represents to each 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. 
 (ee) Acknowledgement Regarding Purchaser’s Trading Activity. Anything in this Agreement or
elsewhere herein to the contrary notwithstanding (except for Sections 3.2(e) and 4.14 hereof), it is understood and acknowledged by the Company (i) that none of the Purchasers have been asked by the Company to agree, nor has any Purchaser
agreed with the Company, to desist from purchasing or selling, long and/or short, securities of the Company, or “derivative” securities based on securities issued by the Company or to hold the Securities for any specified term;
(ii) that past or future open market or other transactions by any Purchaser, specifically including, without limitation, Short Sales or “derivative” transactions, before or after the closing of this or future private placement
transactions, may negatively impact the market price of the Company’s publicly-traded securities; (iii) that any Purchaser, and counter-parties in “derivative” transactions to which any such Purchaser is a party, directly or
indirectly, presently may have a “short” position in the Common Stock, and (iv) that each Purchaser shall not be deemed to have any affiliation with or control over any arm’s length counter-party in any “derivative”
transaction. The Company further understands and acknowledges that (a) one or more Purchasers may engage in hedging activities at various times during the period that the Securities are outstanding, including, without limitation, during the

  

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periods that the value of the Warrant Shares deliverable with respect to Securities are being determined and (b) such hedging activities (if any) could
reduce the value of the existing stockholders’ equity interests in the Company at and after the time that the hedging activities are being conducted. The Company acknowledges that such aforementioned hedging activities do not constitute a
breach of any of the Transaction Documents. 
 (ff) Regulation M Compliance. The Company has not, and to its
knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of
the Securities, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of, any of the Securities (other than for the Placement Agent’s placement of the Securities), or (iii) paid or agreed to pay to any
Person any compensation for soliciting another to purchase any other securities of the Company. 
 (gg) FDA. As to each
product subject to the jurisdiction of the U.S. Food and Drug Administration (“FDA”) under the Federal Food, Drug and Cosmetic Act, as amended, and the regulations thereunder (“FDCA”) that is manufactured, packaged,
labeled, tested, distributed, sold, and/or marketed by the Company or any of its Subsidiaries (each such product, a “Pharmaceutical Product”), such Pharmaceutical Product is being manufactured, packaged, labeled, tested,
distributed, sold and/or marketed by the Company in compliance with all applicable requirements under FDCA and similar laws, rules and regulations relating to registration, investigational use, premarket clearance, licensure, or application
approval, good manufacturing practices, good laboratory practices, good clinical practices, product listing, quotas, labeling, advertising, record keeping and filing of reports, except where the failure to be in compliance would not have a Material
Adverse Effect. There is no pending, completed or, to the Company’s knowledge, threatened, action (including any lawsuit, arbitration, or legal or administrative or regulatory proceeding, charge, complaint, or investigation) against the Company
or any of its Subsidiaries, and none of the Company or any of its Subsidiaries has received any notice, warning letter or other communication from the FDA or any other governmental entity, which (i) contests the premarket clearance, licensure,
registration, or approval of, the uses of, the distribution of, the manufacturing or packaging of, the testing of, the sale of, or the labeling and promotion of any Pharmaceutical Product, (ii) withdraws its approval of, requests the recall,
suspension, or seizure of, or withdraws or orders the withdrawal of advertising or sales promotional materials relating to, any Pharmaceutical Product, (iii) imposes a clinical hold on any clinical investigation by the Company or any of its
Subsidiaries, (iv) enjoins production at any facility of the Company or any of its Subsidiaries, (v) enters or proposes to enter into a consent decree of permanent injunction with the Company or any of its Subsidiaries, or
(vi) otherwise alleges any violation of any laws, rules or regulations by the Company or any of its Subsidiaries, and which, either individually or in the aggregate, would have a Material Adverse Effect. The properties, business and operations
of the Company have been and are being conducted in all material respects in accordance with all applicable laws, rules and regulations of the FDA. The Company has not been informed by the FDA that the FDA will prohibit the marketing, sale,
license or use in the 

  

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United States of any product proposed to be developed, produced or marketed by the Company nor has the FDA expressed any concern as to approving or clearing
for marketing any product being developed or proposed to be developed by the Company. 
 3.2 Representations and Warranties of the
Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants as of the date hereof and as of the Closing Date to the Company as follows: 
 (a) Organization; Authority. Such Purchaser is an entity duly organized, validly existing and in good standing under the laws of
the jurisdiction of its organization with full right, corporate or partnership power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder and thereunder.
The execution, delivery and performance by such Purchaser of this Agreement and the transactions contemplated hereby have been duly authorized by all necessary corporate or similar action on the part of such Purchaser. Each Transaction Document to
which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance
with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally,
(ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law. 
 (b) Non-US Jurisdictions. The Purchaser has been informed, and acknowledges, that no action has been or will be taken in any
jurisdiction outside the United States by the Company or the Placement Agent that would permit an offering of the Securities, or possession or distribution of offering materials in connection with the issue of the Securities in any jurisdiction
outside the United States where action for that purpose is required. Each Purchaser outside the United States will comply with all applicable laws and regulations in each foreign jurisdiction in which it purchases, offers, sells or delivers
Securities or has in its possession or distributes any offering material, in all cases at its own expense. The Purchaser has been informed, and acknowledges, that the Placement Agent is not authorized to make and have not made any representation or
use of any information in connection with the issue, placement, purchase and sale of the Securities, except as set forth or incorporated by reference in the Time of Sale Information. 
 (c) Own Account. Such Purchaser is acquiring the Securities as principal for its own account and not with a view to or for
distributing or reselling such Securities or any part thereof in violation of the Securities Act or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the Securities Act or any
applicable state securities law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities (this representation and warranty not limiting such Purchaser’s
right to sell the Securities immediately pursuant to the Registration Statement 

  

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or otherwise in compliance with applicable federal and state securities laws) in violation of the Securities Act or any applicable state securities law. Such
Purchaser is acquiring the Securities hereunder in the ordinary course of its business. 
 (d) Purchaser Status. At the
time such Purchaser was offered the Securities, it was, and at the date hereof it is, and on each date on which it exercises any Warrants, it will be either: (i) an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3),
(a)(7) or (a)(8) under the Securities Act or (ii) a “qualified institutional buyer” as defined in Rule 144A(a) under the Securities Act. Such Purchaser is not required to be registered as a broker-dealer under Section 15 of the
Exchange Act. 
 (e) Experience of Such Purchaser. Such Purchaser, either alone or together with its representatives,
has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated the merits and risks of such investment.
Such Purchaser is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment. 
 (f) No Advice. The Purchaser understands that nothing in this Agreement, the Registration Statement, the Time of Sale Information
or any other materials presented to the Purchaser in connection with the purchase and sale of the Securities constitutes legal, tax or investment advice. The Purchaser has consulted such legal, tax and investment advisers as it, in its sole
discretion, has deemed necessary or appropriate in connection with its purchase of the Securities. 
 (g) Short Sales and
Confidentiality Prior To The Date Hereof. Other than consummating the transactions contemplated hereunder, such Purchaser has not, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, directly or
indirectly executed any purchases or sales, including Short Sales, of the securities of the Company during the period commencing from the time that such Purchaser was first contacted by Company, the Placement Agent or any other Person inquiring
whether the Purchaser had an interest in participating in, and/or setting forth the material terms of, the transactions contemplated hereunder (“Discussion Time”). Notwithstanding the foregoing, in the case of a Purchaser that is a
multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing
other portions of such Purchaser’s assets, and with respect to the transactions contemplated by this Agreement in fact had no such direct knowledge, the representation set forth above shall only apply with respect to the portion of assets
managed by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement. Other than to other Persons party to this Agreement, such Purchaser has maintained the confidentiality of all disclosures made
to it in connection with this transaction (including the existence and terms of this transaction). 
 (h) The Purchaser, alone
or together with its Affiliates, representatives or associates, shall not become the Beneficial Owner of fifteen (15) percent or more of the Company’s Common Stock outstanding by virtue of receiving Securities under the Transaction
Documents. 
  

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 ARTICLE IV. 
 OTHER AGREEMENTS OF THE PARTIES 
 4.1 Warrant Shares. If all or any portion of a Warrant is exercised
at a time when there is an effective registration statement to cover the issuance of the Warrant Shares or if the Warrant is exercised via cashless exercise, the Warrant Shares issued pursuant to any such exercise shall be issued free of all
legends. If at any time following the date hereof the Registration Statement (or any subsequent registration statement registering the Warrant Shares) is not effective or is not otherwise available for the sale of the Warrant Shares, the Company
shall promptly notify the holders of the Warrants in writing that such registration statement is not then effective and thereafter shall promptly notify such holders when the registration statement is effective again and available for the sale of
the Warrant Shares. The Company shall use reasonable best efforts to keep a registration statement (including the Registration Statement) registering the issuance of the Warrant Shares effective until all Warrant Shares have been issued or all
Warrants have expired, whichever occurs earlier; provided that such obligation shall expire before such date if the Company delivers to the Purchaser a written opinion of counsel to the Company that all Purchasers may resell the Warrant Shares
received other than by cashless exercise without registration under the Act and without restrictions as to the manner, timing and volume of such sale. 
 4.2 Furnishing of Information. Until the Warrants have expired, the Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to
be filed by the Company after the date hereof pursuant to the Exchange Act. As long as any Purchaser owns Securities, if the Company is not required to file reports pursuant to the Exchange Act, it will prepare and furnish to the Purchasers and make
publicly available in accordance with Rule 144(c) such information as is required for the Purchasers to sell the Securities under Rule 144. The Company further covenants that it will take such further action as any holder of Securities may
reasonably request, to the extent required from time to time to enable such Person to sell such Securities without registration under the Securities Act within the requirements of the exemption provided by Rule 144. 
 4.3 Integration. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined
in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any Trading Market such that it would require shareholder approval prior to the closing of such
other transaction unless shareholder approval is obtained before the closing of such subsequent transaction. 
 4.4 Securities Laws
Disclosure; Publicity. The Company shall, (a) by 9:00 a.m. (New York City time) on the Business Day immediately following the date of this Agreement, issue a press release describing, and announcing the completion of, the transactions
contemplated hereby, and (b) no later than the fourth Business Day following the date of this Agreement, file with the Commission a Current Report on Form 8-K, disclosing the material terms of the transactions contemplated hereby, and at the
Company’s discretion, filing the Transaction 

  

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Documents as exhibits thereto. The Company and each Purchaser shall consult with each other in issuing any other press releases with respect to the
transactions contemplated hereby, and neither the Company nor any Purchaser shall issue any such press release or otherwise make any such public statement without the prior consent of the Company, with respect to any press release of any Purchaser,
or without the prior consent of each Purchaser, with respect to any press release of the Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure is required by law or the rules of the Trading Market, in which
case the disclosing party shall promptly provide the other party with prior notice of such public statement or communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Purchaser, or include the name of
any Purchaser in any filing with the Commission or any regulatory agency or Trading Market, without the prior written consent of such Purchaser, except (i) as required by federal securities law in connection with the filing of final Transaction
Documents (including signature pages thereto) with the Commission and (ii) to the extent such disclosure is required by law or Trading Market regulations, in which case the Company shall provide the Purchasers with prior notice of such
disclosure permitted under this subclause (ii). 
 4.5 Shareholder Rights Plan. Assuming the accuracy of the Purchaser’s
representations and warranties set forth in Section 3.2, no claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that any Purchaser is an “Acquiring Person” under any control share
acquisition, business combination, poison pill (including any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter adopted by the Company, or that any Purchaser could be deemed to trigger the
provisions of any such plan or arrangement, by virtue of receiving Securities under the Transaction Documents. 
 4.6 Non-Public
Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company covenants and agrees that neither it nor any other Person acting on its behalf will provide any
Purchaser or its agents or counsel with any information that the Company believes constitutes material non-public information, unless prior thereto such Purchaser shall have executed a written agreement regarding the confidentiality and use of such
information. The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company. 
 4.7 Use of Proceeds. The Company shall use the net proceeds from the sale of the Securities hereunder for working capital purposes and shall not use such proceeds for (a) the satisfaction of any portion of
the Company’s debt (other than payment of trade payables in the ordinary course of the Company’s business and prior practices), (b) the redemption of any Common Stock or Common Stock Equivalents or (c) the settlement of any
outstanding litigation. 
 4.8 Indemnification of Purchasers. Subject to the provisions of this Section 4.8, the Company will
indemnify and hold each Purchaser and its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or
any other title), each Person who controls such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees (and
any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of such controlling 

  

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persons (each, a “Purchaser Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and
expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of
the representations, warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against a Purchaser, or any of them or their respective Affiliates, by any
stockholder of the Company who is not an Affiliate of such Purchaser, with respect to any of the transactions contemplated by the Transaction Documents (unless such action is based upon a breach of such Purchaser’s representations, warranties
or covenants under the Transaction Documents or any agreements or understandings such Purchaser may have with any such stockholder or any violations by the Purchaser of state or federal securities laws or any conduct by such Purchaser which
constitutes fraud, gross negligence, willful misconduct or malfeasance). If any action shall be brought against any Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify
the Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such
action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment thereof has been specifically authorized by the Company in
writing, (ii) the Company has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of such separate counsel, a material conflict on any material
issue between the position of the Company and the position of such Purchaser Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel. The Company will not be liable to any
Purchaser Party under this Agreement (i) for any settlement by a Purchaser Party effected without the Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (ii) to the extent, but only to the extent
that a loss, claim, damage or liability is attributable to any Purchaser Party’s breach of any of the representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction Documents.

 4.9 Reservation of Common Stock. As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep
available until the expiration of the Warrants, free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling the Company to issue the Shares pursuant to this Agreement and the Warrant Shares pursuant to any
exercise of the Warrants. 
 4.10 Listing of Common Stock. The Company hereby agrees to use reasonable best efforts to maintain the
listing of the Common Stock, including the Shares and Warrant Shares, on a Trading Market. The Company further agrees, if the Company applies to have the Common Stock traded on any other Trading Market, it will include in such application all of the
Shares and Warrant Shares, and will take such other action as is necessary to cause all of the Shares and Warrant Shares to be listed on such other Trading Market as promptly as possible. The Company will use reasonable best efforts to continue the
listing and trading of its Common Stock, including the Shares and Warrant Shares, on a Trading Market and compliance with the Company’s reporting, filing and other obligations under the bylaws or rules of the Trading Market. 
  

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 4.11 Equal Treatment of Purchasers. No consideration shall be offered or paid to any Person by the
Company to amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless the same consideration is also offered to all of the parties to the Transaction Documents. For purposes, this constitutes a separate
right granted to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the Company to treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or as a group
with respect to the purchase, disposition or voting of Securities or otherwise. 
 4.12 Subsequent Equity Sales. 
 (a) From the date hereof until 90 days after the Closing Date, neither the Company nor the Subsidiary shall issue shares of Common Stock
or Common Stock Equivalents; provided, however, that such period shall be reduced to 45 days after the Closing Date if on any Trading Day thereafter the last sale price of the Company’s Common Stock during normal trading hours, as reported, is
at least $0.90 per share. Notwithstanding anything to the contrary, the applicable restriction period set forth in this Section 4.12(a) shall be extended for the number of Trading Days during such period in which trading in the Common Stock is
suspended by any Trading Market. 
 (b) From the date hereof until the earlier of (i) such time as no Purchaser holds any
of the Securities or (ii) one (1) year from the Closing Date, the Company shall be prohibited from effecting or entering into an agreement to effect any Subsequent Financing involving a Variable Rate Transaction. “Variable Rate
Transaction” means a transaction in which the Company issues or sells (i) any debt or equity securities that are convertible into, exchangeable or exercisable for, or include the right to receive additional shares of Common Stock
either (A) at a conversion, exercise or exchange rate or other price that is based upon and/or varies with the trading prices of or quotations for the shares of Common Stock at any time after the initial issuance of such debt or equity
securities, or (B) with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance of such debt or equity security or upon the occurrence of specified or contingent events directly or
indirectly related to the business of the Company or the market for the Common Stock or (ii) enters into any agreement, including, but not limited to, an equity line of credit, whereby the Company may sell securities at a future determined
price. Any Purchaser shall be entitled to obtain injunctive relief against the Company to preclude any such issuance, which remedy shall be in addition to any right to collect damages 
 (c) Notwithstanding the foregoing, this Section 4.12 shall not apply in respect of an Exempt Issuance. 
 4.13 Short Sales and Confidentiality After The Date Hereof. Each Purchaser, severally and not jointly with the other Purchasers, covenants that
neither it nor any Affiliate acting on its behalf or pursuant to any understanding with it will engage in any transactions in the Company’s securities, including any Short Sales, during the period commencing at the Discussion Time and ending at
the time that the transactions contemplated by this Agreement are first publicly announced as described in Section 4.4. Each Purchaser covenants and agrees that it will not use 

  

 25 

 
any of the Shares acquired pursuant to this Agreement to cover any short position in the Company’s Common Stock if doing so would be in violation of
applicable securities laws. Each Purchaser, severally and not jointly with the other Purchasers, covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company as described in
Section 4.4, such Purchaser will maintain the confidentiality of the existence and terms of this transaction and the information included in the Disclosure Schedules. Notwithstanding the foregoing, no Purchaser makes any representation,
warranty or covenant hereby that it will not engage in Short Sales in the securities of the Company after the time that the transactions contemplated by this Agreement are first publicly announced as described in
Section 4.4. Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers have
no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s assets, the covenant set forth above shall only apply with respect to the portion of assets managed by the portfolio
manager that made the investment decision to purchase the Securities covered by this Agreement. 
 4.14 Delivery of Securities After
Closing. The Company shall deliver, or cause to be delivered, the respective Securities purchased by each Purchaser to such Purchaser within three (3) Trading Days of the date of this Agreement. 
 4.15 Capital Changes. Until the one year anniversary of the Closing Date, the Company shall not undertake a reverse or forward stock split or
reclassification of the Common Stock without the prior written consent of the Purchasers holding a majority of the outstanding Shares and any Warrant Shares, in the aggregate, still held by the Purchasers, except for any reverse stock split effected
in good faith by the Company in order to satisfy the minimum bid price requirement for continued listing on the Nasdaq Global Market or the Nasdaq Capital Market. 
 ARTICLE V. 
 MISCELLANEOUS 
 5.1 Termination. This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only and without any effect whatsoever on the obligations between the Company and the
other Purchasers, by written notice to the other parties, if the Closing has not been consummated on or before the fifth Business Day following the date of this Agreement; provided, however, that no such termination will affect the right of any
party to sue for any breach by the other party (or parties). 
 5.2 Fees and Expenses. Except as expressly set forth in the
Transaction Documents to the contrary, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution,
delivery and performance of this Agreement. The Company shall pay all transfer agent fees, stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the Purchasers. 
 5.3 Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, the Prospectus and the Prospectus Supplement,
contain the entire 

  

 26 

 
understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect
to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules. 
 5.4 Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the
date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after
the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any
Trading Day, (c) the 2nd Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The
address for such notices and communications shall be as set forth on the signature pages attached hereto. 
 5.5 Amendments; Waivers.
No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of an amendment, by the Company and Purchasers holding at least 75% of the Shares and any outstanding Warrant Shares, in the aggregate, still
held by the Purchasers or, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to
be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the
exercise of any such right. 
 5.6 Headings. The headings herein are for convenience only, do not constitute a part of this Agreement
and shall not be deemed to limit or affect any of the provisions hereof. 
 5.7 Successors and Assigns. This Agreement shall be
binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each Purchaser (other than by
merger). Any Purchaser may assign any or all of its rights under this Agreement to any Person to whom such Purchaser assigns or transfers any Securities, provided such transferee agrees in writing to be bound, with respect to the transferred
Securities, by the provisions of the Transaction Documents that apply to the “Purchasers.” 
 5.8 No Third-Party
Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as
otherwise set forth in Section 4.8. 
 5.9 Governing Law. All questions concerning the construction, validity, enforcement and
interpretation of the Transaction Documents shall be governed by and construed and enforced in accordance with the laws of the State of New York, without regard to the principles of conflicts of law that would require the application of the laws of
any other jurisdiction (other than the Massachusetts Business Corporation Act of the Commonwealth of Massachusetts, 

  

 27 

 
which shall apply to the issuance of the securities and the internal governance of the Company). Each party agrees that all legal proceedings concerning
the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective Affiliates, directors, officers, shareholders, employees or
agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, borough of
Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding.
Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery)
to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any
right to serve process in any other manner permitted by law. If either party shall commence an action or proceeding to enforce any provisions of the Transaction Documents, then the prevailing party in such action or proceeding shall be reimbursed by
the other party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding. 
 5.10 Survival. The representations and warranties contained herein shall survive the Closing and the delivery of the Shares and Warrant Shares
until the two (2) year anniversary of the date of this Agreement. 
 5.11 Execution. This Agreement may be executed in two or
more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties
need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof. 
 5.12 Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an
alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the
remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 
  

 28 

 5.13 Replacement of Securities. If any certificate or instrument evidencing any Securities is
mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument,
but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs (including
customary indemnity) associated with the issuance of such replacement Securities. 
 5.14 Remedies. In addition to being entitled to
exercise all rights provided herein or granted by law, including recovery of damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages may not be
adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and hereby agrees to waive and not to assert in any action for specific performance of any such obligation the defense that a
remedy at law would be adequate. 
 5.15 Independent Nature of Purchasers’ Obligations and Rights. The obligations of each
Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance or non-performance of the obligations of any other Purchaser under
any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any
other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. Each Purchaser shall be entitled to
independently protect and enforce its rights, including without limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party
in any proceeding for such purpose. Each Purchaser has been represented by its own separate legal counsel in their review and negotiation of the Transaction Documents. For reasons of administrative convenience only, Purchasers and their respective
counsel have chosen to communicate with the Company through MZRL. MZRL does not represent any of the Purchasers but only the Placement Agent. The Company has elected to provide all Purchasers with the same terms and Transaction Documents for the
convenience of the Company and not because it was required or requested to do so by the Purchasers. 
 5.16 Liquidated Damages. The
Company’s obligations to pay any partial liquidated damages or other amounts owing under the Transaction Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated damages and other amounts
have been paid notwithstanding the fact that the instrument or security pursuant to which such partial liquidated damages or other amounts are due and payable shall have been canceled. 
 5.17 Construction. The parties agree that each of them and/or their respective counsel has reviewed and had an opportunity to revise the
Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments hereto.

  

 29 

 5.18 Waiver of Jury Trial. In any action, suit or proceeding in any jurisdiction brought by any
party against any other party, the parties each knowingly and intentionally, to the greatest extent permitted by applicable law, hereby absolutely, unconditionally, irrevocably and expressly waives forever trial by jury. 
 [Remainder of page intentionally left blank; 
 signature pages to follow.] 
  

 30 

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

			
	GTC BIOTHERAPEUTICS, INC.
		
	By:	 	  

	Name:	 	Geoffrey F. Cox
	Title:	 	Chairman, Chief Executive Officer and President

 Address for Notice: 
 175 Crossing Boulevard 
 Framingham, MA 01702 
 Tel:
508-620-9700 
 Fax: 508-370-5353 
 With a copy to (which
shall not constitute notice): 
 Edwards Angell Palmer & Dodge LLP 
 111 Huntington Avenue 
 Boston, MA 02199 
 Attn: Nathaniel S. Gardiner 
 Tel: 617-239-0100 
 Fax:
617-227-4420 
 [Remainder of page intentionally left blank; 
 Purchaser signature page to follow.] 
  

 31 

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

	
	
	Name of
Purchaser:                                      
                                        
                                        
                                        
                                        
                     
	
	Signature of Authorized Signatory of
Purchaser:                                      
                                        
                                        
                                        
      
	
	Name of Authorized
Signatory:                                      
                                        
                                        
                                        
                                      
 
	
	Title of Authorized
Signatory:                                      
                                        
                                        
                                        
                                         

	
	Telephone Number of
Purchaser:                                      
                                        
                                        
                                        
                                    
	
	Email Address of
Purchaser:                                      
                                        
                                        
                                        
                                        
    
	
	Fax Number of
Purchaser:                                      
                                        
                                        
                                        
                                        
         
	
	Address for Notice to Purchaser:
	
	Exact Name that Shares are to be Registered
In:                                       
                                        
                                        
                                        
       
	
	Relationship between Purchaser and Registered
Holder:                                       
                                        
                                        
                                
	
	Social Security Number or Tax Identification Number of Registered
Holder:                                       
                                        
                                
	
	Name of DTC
Participant:                                      
                                        
                                        
                                        
                                        
         
	
	DTC Participant
Number:                                       
                                        
                                        
                                        
                                        
         
	
	Name of Account at DTC
Participant:                                      
                                        
                                        
                                        
                           
	
	Account Number at DTC
Participant:                                      
                                        
                                        
                                        
                            
	
	Exact Name that Warrants are to be Registered
In:                                       
                                        
                                        
                                        
  
	
	Address of Registered Holder for Delivery of Warrants (if not same as address for Notice to Purchaser):
	
	Subscription Amount: $                    
	
	Purchase Price Per Unit: $                    
	
	Number of Shares:
                            
	
	Number of Warrant Shares:
                            
	
	EIN Number:
                            

 [Purchaser Signature Page to GTC Biotherapeutics, Inc. Securities Purchaser Agreement]

  

 32 

 Exhibit A 
 Form of Warrant 

 Exhibit B 
 Form of Opinion

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