Document:

Exhibit 10.2

Exhibit 10.2

NON-SOLICITATION AND NON-COMPETITION AGREEMENT

Non-Solicitation and Non-Competition Agreement (this “Agreement”) dated as of June 30, 2009 between BERKSHIIRE
INSURANCE GROUP, INC., a Massachusetts corporation with a principal place of business located in Pittsfield,
Massachusetts and JOHN S. MILLET of Wynantskill, NY (“Millet”).

PRELIMINARY STATEMENT

The Company (defined for purposes of this Agreement to mean and include Berkshire Insurance Group, Inc., Berkshire
Bank and Berkshire Hills Bancorp, Inc.) and Millet are parties to a Letter Agreement containing a general release of
even date (the “Separation Agreement”) which is incorporated herein by reference; and

Pursuant to the terms of the Separation Agreement, the Company has agreed to pay Millet the gross amount of
$200,000, less customary payroll taxes and deductions; and

Pursuant to the terms of the Separation Agreement, Millet has agreed to enter into a Non- Solicitation and
Non-Competition Agreement in partial consideration for the Company’s agreement to pay Millet the Separation Pay; and

The duration of the Non-Solicitation and Non-Competition Agreement is six (6) months from the date of Millet’s
Separation from the Company; and

Millet agrees and acknowledges that by virtue of his position in the Company, he is familiar with and in
possession of the Company’s trade secrets, customer information, and other confidential information which are valuable
to the Company, and that their goodwill, protection, and maintenance constitute a legitimate business interest of the
Company, to be protected by the non-competition restrictions set forth herein. Millet agrees and acknowledges that the
non-competition restrictions set forth herein are reasonable and necessary and do not impose undue hardship or burdens
on him.

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

1. Non-Competition.

(a) Millet hereby agrees that, beginning on June 25, 2009 and for a period of 6 months thereafter — until December
25, 2009 – (the “Non-Competition Period”), Millet shall not, directly or indirectly own, manage, operate, join, be
employed by, perform services, consulting or other work for, or provide any assistance to (the “Prohibited
Activities”), any corporation, partnership, or other entity or person which owns, manages, operates, controls,
participates in the ownership, management, operation or control of, is employed by, performs services or other

 

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work for, provides any assistance to, is engaged with respect to any banking, insurance or financial business
including, but not limited to, banks, insurance businesses or credit unions, which engages in such banking, insurance
or financial business and has an office or offices located within (a) any of the following Massachusetts counties:
Berkshire, Hampshire, Hampden and Franklin; and/or (b) any of the following Vermont counties: Bennington, Rutland and
Windsor (a “Competitor Employer”).

(b) Millet acknowledges that he has carefully read and considered the provisions of this Agreement and, having
done so, agrees that the restrictions set forth herein and the geographic areas of restriction are fair and reasonable
and are reasonably required for the protection of the interests of the Company.

(c) In the event that the provisions of this Agreement relating to the time periods and/or geographic areas of
restriction shall be declared by a court of competent jurisdiction to exceed the maximum time period or areas that such
court deems reasonable and enforceable, the time period and/or geographic areas of restriction deemed reasonable and
enforceable by the court shall become and thereafter be the maximum time period and/or geographic areas under this
Agreement.

(d) In the event that a Competitor Employer contacts Millet for the purpose of requesting that Millet engage in
Prohibited Activities with a Competitor Employer during the Non-Competition Period, Millet may request that the Company
waive the provisions of paragraph 1(a) of this Agreement. The Company shall consider Millet’s request for a waiver,
but is under no obligation to grant the waiver. The Company shall have absolute and sole discretion to decide whether
or not to grant the waiver. If, in its absolute and sole discretion, the Company decides to grant the waiver request,
the waiver shall not become effective until Millet and the Company shall have entered into a written modification of
this Agreement, signed by both parties.

2. Non-Solicitation. Millet hereby agrees that, beginning on June 25, 2009 and for a period of 6 months
thereafter — ending on December 25, 2009 — Millet shall not directly, indirectly or through another person, recruit,
solicit, interfere with, or hire or attempt to recruit, solicit, interfere with, or hire, any employee or independent
contractor of the Company to leave the employment (or independent contractor relationship) thereof, whether or not any
such employee or independent contractor is party to an employment agreement. During the same time period, Millet
shall not solicit or accept from any current customer of the Company, business competitive with the business done by
the Company with such customer nor shall he persuade or attempt to persuade any such customer to cease to do business
or to reduce the amount of business which such customer has customarily done or is reasonably expected to do with the
Company. Millet also shall not interfere with any relationship, contractual or otherwise, between the Company and any
other party, including, without limitation, any supplier or vendor of the Company, or solicit such party to
discontinue or reduce its business with the Company.

3. Consideration. As consideration for the obligations of Millet hereunder, the Company shall satisfy its
obligations to Millet as described in the Separation Agreement.

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4. Defaults. Millet shall be deemed to be in default of his obligations under this Agreement (a
“Default”) if Millet shall have breached his obligations under Section 1 hereof and such default shall continue for 15
days after the Company shall have given Millet notice of such default.

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5. Remedies.

(a) Millet acknowledges that in the event of an actual or threatened Default, the Company’s remedies at law will
be inadequate. Accordingly, the Company shall be entitled, at its election, to enjoin any actual or threatened
Default, and/or to obtain specific performance of Millet’s obligations under Section 1 hereof without the necessity of
showing any actual damage or the inadequacy of monetary damages. Any such equitable remedy shall not constitute the
sole and exclusive remedy for any such breach, and the Company shall be entitled to pursue any other remedies at law or
in equity. In the event of a Default by Millet, the Company shall be entitled to (a) recover from Millet its costs,
including reasonable attorneys’ fees, incurred in enforcing its rights under this Agreement and (b) cease making
payments to Millet under paragraph 2 of the Separation Agreement without invalidating any portion of the Separation
Agreement.

(b) Any court proceeding to enforce this Agreement may be commenced by either party in the Berkshire Superior
Court, Pittsfield, Commonwealth of Massachusetts. The parties hereto submit to the exclusive jurisdiction of such
courts and waive any objection which they may have to the pursuit of any such proceeding in such courts.

6. Entire Agreement. This Agreement, together with the Letter Agreement, constitutes the entire agreement
between the parties relating to the subject matter hereof and supersedes any and all previous agreements, oral and
written, between the parties with respect to the subject matter hereof.

7. Non-Waiver. The failure by a party in one or more instances to insist upon performance of any of the
terms, covenants or conditions of this Agreement or to exercise any rights or privileges conferred in this Agreement,
or the waiver by said party of any breach of any of the terms, covenants, conditions, rights or privileges, but the
same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred. No waiver
shall be effective unless it is in writing and signed by an authorized representative of the waiving party.

8. Applicable Law. This Agreement shall be governed and controlled as to validity, enforcement,
interpretation, construction, effect and in all other respects by the internal laws of the Commonwealth of
Massachusetts applicable to contracts made and wholly to be performed in the Commonwealth.

9. Binding Effect; Benefit. This Agreement shall inure to the benefit of and be binding upon the parties
hereto and their respective successors, assigns, heirs and personal representatives. Nothing in this Agreement,
express or implied, is intended to confer on any person other than the parties hereto and their respective successors,
assigns, heirs and personal representatives any rights, remedies, obligations or liabilities under or by reason of this
Agreement.

10. Amendments. This Agreement shall not be modified or amended except pursuant to an instrument in
writing executed and delivered on behalf of each of the parties hereto.

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11. Severability. Any term or provision of this Agreement that is invalid or unenforceable in any
situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions
hereof or the validity or enforceability of the offending term or provision in any other situation or in any other
jurisdiction. If the final judgment of a court of competent jurisdiction declares that any term or provision hereof is
invalid or unenforceable, the parties hereto agree that the court making the determination of invalidity or
unenforceability shall have the power to reduce the scope, duration, or area of the term or provision, to delete
specific words or phrases, or to replace any invalid or unenforceable term or provision with a term or provision that
is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or
provision, and this Agreement shall be enforceable as so modified after the expiration of the time within which the
judgment may be appealed.

12. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be
deemed an original and all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as a sealed instrument on the date first above
written.

/s/ John S. Millet

JOHN S. MILLET

BERKSHIRE INSURANCE GROUP, INC.

By: /s/ David B. Farrell

      Its  Acting President

 

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5exv10w1

Exhibit 10.1

EXECUTION COPY

 

AMENDED AND RESTATED

PURCHASE OPTION AGREEMENT

by and among

OXiGENE, INC.

SYMPHONY ViDA HOLDINGS LLC

and

SYMPHONY ViDA, INC.

 

Dated as of July 2, 2009

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	Section 1. Grant of Purchase Option
	 	 	2	 
	 
	 	 	 	 
	Section 2. Exercise of Purchase Option
	 	 	3	 
	 
	 	 	 	 
	Section 3. Company Representations, Warranties and Covenants
	 	 	7	 
	 
	 	 	 	 
	Section 4. Holdings Representations, Warranties and Covenants
	 	 	11	 
	 
	 	 	 	 
	Section 5. Symphony Collaboration Representations, Warranties and Covenants
	 	 	14	 
	 
	 	 	 	 
	Section 6. Notice of Material Event
	 	 	23	 
	 
	 	 	 	 
	Section 7. Assignment; Transfers; Legend
	 	 	23	 
	 
	 	 	 	 
	Section 8. Costs and Expenses; Payments
	 	 	24	 
	 
	 	 	 	 
	Section 9. Expiration; Termination of Agreement
	 	 	24	 
	 
	 	 	 	 
	Section 10. Survival; Indemnification
	 	 	25	 
	 
	 	 	 	 
	Section 11. No Petition
	 	 	28	 
	 
	 	 	 	 
	Section 12. Third-Party Beneficiary
	 	 	28	 
	 
	 	 	 	 
	Section 13. Notices
	 	 	28	 
	 
	 	 	 	 
	Section 14. Governing Law; Consent to Jurisdiction and Service of Process
	 	 	29	 
	 
	 	 	 	 
	Section 15. Waiver of Jury Trial
	 	 	30	 
	 
	 	 	 	 
	Section 16. Entire Agreement
	 	 	30	 
	 
	 	 	 	 
	Section 17. Amendment; Successors; Counterparts
	 	 	30	 
	 
	 	 	 	 
	Section 18. Specific Performance
	 	 	31	 
	 
	 	 	 	 
	Section 19. Severability
	 	 	31	 
	 
	 	 	 	 
	Section 20. Tax Reporting
	 	 	31	 
	 
	 	 	 	 
	Section 21. Original Agreement
	 	 	32	 
	 
	 	 	 	 
	Section 22. Amendment to Annex A
	 	 	32	 

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	 	 	Page	 
	Annex A Certain Definitions
	 	 	 	 
	Exhibit 1 Purchase Exercise Notice
	 	 	 	 

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AMENDED AND RESTATED

PURCHASE OPTION AGREEMENT

     This AMENDED AND RESTATED PURCHASE OPTION AGREEMENT (this “Agreement”) is entered into
as of July 2, 2009 (the “Closing Date”), by and among OXiGENE, INC., a Delaware corporation
(the “Company”), SYMPHONY ViDA HOLDINGS LLC, a Delaware limited liability company
(“Holdings”), and SYMPHONY ViDA, INC., a Delaware corporation (the “Symphony
Collaboration”). Capitalized terms used herein and not defined herein shall have the meanings
assigned to such terms in Annex A attached hereto.

PRELIMINARY STATEMENT

     WHEREAS, the Company, Holdings and the Symphony Collaboration entered into that certain
Purchase Option Agreement dated as of October 1, 2008 (the “Original Agreement”), pursuant
to which Holdings granted the Company an option to purchase all of the Common Stock of the Symphony
Collaboration and any other Equity Securities issued by the Symphony Collaboration (together, the
“Symphony Collaboration Equity Securities”) owned, or thereafter acquired, by Holdings on
the terms described therein;

     WHEREAS, institutional investors invested $30,000,000 in Holdings (the “Financing”) in
exchange for (i) membership interests in Holdings, (ii) shares of the Company Common Stock having a
market value of up to $15,000,000 issued to Holdings (the “Direct Investment Shares”),
(iii)  a warrant to purchase Company Common Stock issued to Holdings (the “Warrant Shares”)
having a market value of up to $15,000,000 less the value of the Direct Investment Shares (the
“Direct Investment Warrant”), (iv) shares of the Company Common Stock having a market value
of $4,000,000 (the “Option Premium Shares”), and (v) other consideration as contemplated by
the terms of the Additional Funding Agreement, and Holdings contributed $15,000,000 of the proceeds
of the Financing to the Symphony Collaboration and paid $15,000,000 of the proceeds of the
Financing to the Company;

     WHEREAS, the parties to the Original Agreement desire to amend and restate the Original
Agreement and accept the rights and covenants hereof in lieu of their rights and covenants under
the Original Agreement;

     WHEREAS, contemporaneously with the execution of this Agreement, the Company has exercised the
Purchase Option (as defined below) by delivering the Purchase Option Exercise Notice (as defined
below) to Holdings and the Symphony Collaboration;

     WHEREAS, on the Purchase Option Closing Date, the Company will issue to Holdings, subject to
the satisfaction of certain conditions, the Company Closing Shares (as defined below); and

     WHEREAS, the Company, the Symphony Collaboration and Holdings have determined that it is in
each of its best interest to perform and comply with certain agreements and covenants relating to
each of its ongoing operations contained in this
 Agreement.

 

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
(the “Parties”) agree as follows:

          Section 1. Grant of Purchase Option.

                    (a) Holdings hereby grants to the Company an exclusive irrevocable option (the “Purchase
Option”) to purchase all, but not less than all, of the outstanding Symphony Collaboration
Equity Securities owned or hereafter acquired by Holdings, in accordance with the terms of this
Agreement.

                    (b) The Symphony Collaboration hereby covenants and agrees that all Symphony Collaboration
Equity Securities issued by the Symphony Collaboration at any time prior to the expiration of the
Term (including to Holdings, on, prior to, or after the date hereof or to any other Person at any
time whatsoever, in all cases prior to the expiration of the Term) shall be subject to the Purchase
Option and all of the other terms and conditions of this Agreement without any additional action on
the part of the Company or Holdings. For the avoidance of doubt, to the extent the Symphony
Collaboration shall issue any Symphony Collaboration Equity Securities (including any issuance in
respect of a transfer of Symphony Collaboration Equity Securities by any holder thereof, including
Holdings) after the date hereof to any Person (including Holdings) (any issuance of such Symphony
Collaboration Equity Securities being subject to the prior written consent of the Company as set
forth in Sections 5(c) and 7(b) hereof, as applicable), the Symphony Collaboration
hereby covenants and agrees that it shall cause such Symphony Collaboration Equity Securities to be
subject to the Purchase Option without the payment of, or any obligation to pay, any additional
consideration in respect of such Symphony Collaboration Equity Securities by the Company, the
Symphony Collaboration or any Symphony Collaboration Subsidiary to the Person(s) acquiring such
subsequently issued Symphony Collaboration Equity Securities, the Parties acknowledging and
agreeing that the sole consideration payable by the Company pursuant to this Agreement for all of
the outstanding Symphony Collaboration Equity Securities now or hereinafter owned by any Person
shall be the Purchase Price (as defined in Section 2(b) hereof).

                    (c) The Company’s right to exercise the Purchase Option granted hereby is subject to the
following conditions:

                         (i) The Purchase Option may only be exercised for the purchase of all, and not less than all,
of the Symphony Collaboration Equity Securities;

                         (ii) The Purchase Option may only be exercised a single time; and

                         (iii) The Purchase Option may be exercised only on the date hereof.

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          Section 2. Exercise of Purchase Option.

                    (a) Exercise Notice. The Company may exercise the Purchase Option only by delivery of
a notice in the form attached hereto as Exhibit 1 (the “Purchase Option Exercise
Notice”) on the date hereof. The Purchase Option Exercise Notice shall be delivered to
Holdings and the Symphony Collaboration and shall be irrevocable once delivered. The date on which
the Purchase Option Exercise Notice is first delivered to Holdings and the Symphony Collaboration
is referred to as the “Purchase Option Exercise Date.” The Purchase Option Exercise Notice
shall contain an estimated date for the settlement of the Purchase Option (the “Purchase Option
Closing”), which date shall be estimated in accordance with this Section 2(a). If,
during the period following the delivery of the Purchase Option Exercise Notice, the working
capital held by the Symphony Collaboration is less than or equal to the Balance Sheet Deficiency
Threshold, then the Symphony Collaboration shall cease payment of any amounts owed to the Company
in respect of its activities pursuant to the Amended and Restated Research and Development
Agreement, but shall continue to pay amounts owed to all other Persons. All cash and cash
equivalents on the Symphony Collaboration’s balance sheet on the date of the Purchase Option
Closing (the “Purchase Option Closing Date”) will not be transferred or distributed to
Holdings and shall be retained by the Symphony Collaboration. The Purchase Option Closing Date
shall be the date that is the latest of:

                         (i) thirty (30) days following the Purchase Option Exercise Date; and

                         (ii) five (5) Business Days following the date that the Company receives the necessary
Government Approvals related to its HSR Filings (if any) related to the exercise of the Purchase
Option; provided, however, that the Company and Holdings shall make all necessary HSR Filings
within five (5) Business Days following the Purchase Option Exercise Date and shall promptly and
diligently pursue the related regulatory process. 

                    (b) Purchase Price. Subject to the post-closing adjustment pursuant to Section
2B and the following sentence, as consideration for the sale to the Company by Holdings of its
Symphony Collaboration Equity Securities, on the Purchase Option Closing Date, the Company shall
issue to Holdings an aggregate of 6,000,000 shares of Company Common Stock (the “Company
Closing Shares”) for an equivalent value of $12,480,000 (such value, the “Purchase
Price”). If, after the date hereof and prior to the Purchase Option Closing, (A) the number of
outstanding shares of Company Common Stock has been increased, decreased, changed into or exchanged
for a different number or kind of shares or securities as a result of a reorganization,
recapitalization, stock dividend, stock split, reverse stock split or other similar change in
capitalization, an appropriate and proportionate adjustment shall be made to the number of Company
Closing Shares to be issued at the Purchase Option Closing, or (B) there has been a Specified
Company Issuance (as defined below), the consideration to be paid by the Company at the Purchase
Option Closing may be adjusted in accordance with Section 2A.

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                    (c) [Reserved.]

                    (d) Surrender of Symphony Collaboration Equity Securities; Symphony Collaboration
Board. Subject to the terms and conditions of this Agreement, on the Purchase Option Closing
Date, Holdings shall surrender to the Company its certificates representing its Symphony
Collaboration Equity Securities, and shall convey good title to such Symphony Collaboration Equity
Securities, free from any Encumbrances and from any and all restrictions that any sale, assignment
or other transfer of such Symphony Collaboration Equity Securities be consented to or approved by
any Person. On or prior to the Purchase Option Closing Date, Holdings shall remove all directors
serving on the Symphony Collaboration Board, other than the Company Director (as defined in
Section 4(b)(v) hereof), as of the Purchase Option Closing Date.

                    (e) Valuation of Company Stock. The value per share of the Company Closing Shares as
of the date hereof has been determined by the Parties to equal $2.08 (the “Company Common Stock
Valuation”).

                    (f) Share Certificates. Any stock certificate(s) issued by the Company for Company
Common Stock pursuant to this Section 2 may contain a legend (the “33 Act Legend”)
substantially as follows:

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE SECURITIES LAWS OF ANY STATE, AND
THE SAME HAVE BEEN ISSUED IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION
REQUIREMENTS OF SAID ACT AND SUCH LAWS. SUCH SHARES MAY NOT BE SOLD, TRANSFERRED,
PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT AS PERMITTED UNDER SUCH
SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.

This legend shall be removed by the Company, subject to, and in accordance with, the terms of
Section 3(b)(iii) hereof.

                    (g) Government Approvals. On or prior to the Purchase Option Closing Date, each of
the Company, the Symphony Collaboration and Holdings shall have taken all necessary action to cause
all required Governmental Approvals with respect to such Party (including, without limitation, the
preparing and filing of any pre-merger notification and report forms required under the HSR
Filings) in connection with the transactions contemplated by this Agreement to be in effect;
provided, however, that with respect to Government Approvals required by a
Governmental Authority other than the United States federal government and its various branches and
agencies, the Parties’ obligations under this Section 2(g) shall be limited to causing to
be in effect only those Government Approvals, the failure of which to be in effect would, either
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect on any
of the Parties. Each of the Symphony Collaboration and the Company shall pay its own costs

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associated with taking such action. The Symphony Collaboration shall pay any costs of
Holdings associated with obtaining Government Approvals required in connection with the exercise of
the Purchase Option. All other costs and expenses of Holdings shall be paid by Holdings pursuant
to Section 8 hereof, including any costs arising from any error in Holdings’ initial
valuation of its investment in the Symphony Collaboration.

                    (h) Transfer of Title. Transfer of title to the Company of all of the Symphony
Collaboration Equity Securities shall be deemed to occur automatically on the Purchase Option
Closing Date, subject to the issuance by the Company on such date of the Company Closing Shares or
Alternate Closing Securities, as applicable, comprising the Purchase Price and its performance of
its other obligations herein required to be performed, and under the Registration Rights Agreement,
as applicable, on or prior to the Purchase Option Closing Date to the reasonable satisfaction of
Holdings, and thereafter the Symphony Collaboration shall treat the Company as the sole holder of
all Symphony Collaboration Equity Securities, notwithstanding any failure of Holdings to tender
certificates representing such shares to the Company in accordance with Section 2(d)
hereof. After the Purchase Option Closing Date, Holdings shall have no rights in connection with
such Symphony Collaboration Equity Securities other than the right to receive the Purchase Price;
provided, however, that nothing in this Section 2(h) shall affect the
survivability of any indemnification provision in this Agreement upon termination of this
Agreement.

                    (i) Consents and Authorizations. On or prior to the Purchase Option Closing Date, the
Company shall have obtained all consents and authorizations necessary from stockholders and/or its
board of directors for the consummation of the exercise and closing of the Purchase Option, as may
be required under the organizational documents of the Company, any prior stockholders or board
resolution, any stock exchange or similar rules or any applicable law.

          Section 2A. Purchase Option Closing Date Adjustment. If at any time or from time to
time from and after the date hereof through the Purchase Option Closing Date, the Company has
issued Additional Company Securities (any such issuance of Additional Company Securities, a
“Specified Company Issuance”), Holdings may elect (in accordance with the procedures set
forth in Section 2B) to be paid the Purchase Price in the form of the Alternate Securities
specified in the Specified Issuance Notice (each as defined below) (such Alternate Securities paid
to Holdings at the Purchase Option Closing, the “Alternate Closing Securities”).

          Section 2B. Post-Closing Adjustment.

                    (a) If at any time and from time to time from and after the Purchase Option Closing Date
through the date occurring six (6) months from the Purchase Option Closing Date (or if such date is
not a Business Day, the first Business Day thereafter) (such date, the “Final Adjustment
Date”), there is a Specified Company Issuance, as soon as practicable, but in no event later
than five (5) Business Days after the delivery to the Company of a Holdings Election Notice (as
defined below) (such date, the

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“Adjusted Securities Payment Date”), (i) the Company shall issue to Holdings such
Alternate Securities in the form specified in the Specified Issuance Notice, and (ii) Holdings
shall deliver to the Company such Company Closing Shares, Alternate Closing Securities, or other
securities of the Company issued pursuant to this Agreement, or other consideration transferred to
Holdings, as applicable, such that on the Adjusted Securities Payment Date Holdings shall own
Alternate Securities, together with all other securities of the Company issued, or other
consideration transferred, to Holdings pursuant to this Agreement, to which Holdings is entitled in
consideration of the transfer to the Company of the Symphony Collaboration Equity Securities. The
foregoing described transactions between the Company and Holdings shall be settled on a net basis.
For the avoidance of doubt, the parties hereby acknowledge and agree that Holdings may exercise its
rights under this Section 2B(a) following each Specified Company Issuance that occurs after
the date of this Agreement and on or prior to the Final Adjustment Date.

                    (b) Not later than five (5) Business Days prior to the consummation of a Specified Company
Issuance, the Company shall, in accordance with Section 13, deliver to Holdings a notice (a
“Specified Issuance Notice”) setting forth in reasonable detail: (i) a description of the
form and terms of the Additional Company Securities to be issued pursuant to the Specified Company
Issuance (such Additional Company Securities, the “Alternate Securities”); (ii) the price
at which the Alternate Securities will be issued pursuant to the Specified Company Issuance; (iii)
the estimated date of issuance of such Alternate Securities; and (iv) the amount and form of
Alternate Securities that would be issued to an investor participating in the Specified Company
Issuance upon payment to the Company of an amount equal to the Purchase Price. If Holdings elects
to exercise its rights under Section 2B(a) with respect to a Specified Company Issuance,
Holdings, in accordance with Section 13, shall deliver to the Company a notice of such
election not later than one (1) Business Day prior to the consummation of such Specified Company
Issuance (the “Holdings Election Notice”). The failure of Holdings to notify the Company
pursuant to this Section 2B(b) shall be deemed to constitute the waiver by Holdings of its
rights under Section 2B(a) with respect to such Specified Company Issuance.

                    (c) “Additional Company Securities” shall mean all shares of Company Common Stock,
Options, Convertible Securities, notes, bonds, or any other securities issued by the Company, or
cash or other consideration paid or delivered by or on behalf of the Company, other than the
following (collectively, “Exempted Securities”):

                         (i) rights, options or warrants to subscribe for, purchase or otherwise acquire Company Common
Stock (“Options”), or shares of restricted stock or stock appreciation rights, issued to
employees or directors of, or consultants or advisors to, the Company or any of its subsidiaries
pursuant to a plan, agreement or arrangement approved by the board of directors of the Company;

                         (ii) (1) shares of Company Common Stock actually issued upon the exercise of Options or
(2) shares of Company Common Stock actually issued upon the conversion or exchange of any evidences
of indebtedness, shares or other

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securities directly or indirectly convertible into or exchangeable for Company Common Stock,
but excluding Options (“Convertible Securities”), in each case provided such issuance is
pursuant to the terms of such Option or Convertible Security;

                         (iii) shares of Company Common Stock, Options or Convertible Securities issued by reason of a
dividend on the outstanding Company Common Stock, stock split of the outstanding Company Common
Stock, split-up of the outstanding Company Common Stock or other distribution on shares of Company
Common Stock; or

                         (iv) shares of Company Common Stock issued pursuant to the Company’s Committed Equity
Financing Facility with Kingsbridge Capital Limited, in an amount not to exceed 5,000,000 shares.

          Section 2C. In the event that the approval of the stockholders of the Company is required
under applicable Laws or the NASDAQ Rules to issue shares of Company Common Stock to Holdings
pursuant to this Agreement (including through the exercise of warrants or other convertible
securities), the aggregate number of shares of Company Common Stock issued to Holdings pursuant to
this Agreement (including through the exercise of warrants or other convertible securities) shall
be limited to 10,000,000 (ten million) (the “Share Limitation”), unless otherwise agreed by
the Company. In the event that Holdings would be entitled (but for the Share Limitation) to a
number of shares of Company Common Stock pursuant to this Agreement in excess of the Share
Limitation, then in exercising its rights under Sections 2A and/or 2B, Holdings may
determine, in its sole discretion, such combination of shares of Company Common Stock and, if any,
Alternate Securities as would, in Holdings’ sole determination, provide value to Holdings at the
time of determination not in excess of the Purchase Price (the “Alternate Consideration”).
The Company shall then transfer the Alternate Consideration to Holdings in satisfaction of its
obligations under Sections 2A and/or 2B.

          Section 3. Company Representations, Warranties and Covenants.

                    (a) As of the date hereof, the Company hereby represents and warrants, and, except to the
extent that any of the following representations and warranties are limited to the date of this
Agreement or otherwise limited, on the Purchase Option Closing Date and each Adjusted Securities
Payment Date, shall be deemed to have represented and warranted, to Holdings and the Symphony
Collaboration that:

                         (i) Organization. The Company is a corporation, duly organized, validly existing and
in good standing under the laws of the State of Delaware.

                         (ii) Authority and Validity. The Company has all requisite corporate power and
authority to execute, deliver and perform its obligations under this Agreement and to consummate
the transactions contemplated hereby. The execution, delivery and performance by the Company of
this Agreement and the consummation of the transactions contemplated hereby have been duly and
validly authorized by all necessary action required on the part of the Company, and no other

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proceedings on the part of the Company, including Stockholder Approval, are necessary to
authorize this Agreement or for the Company to perform its obligations under this Agreement. This
Agreement constitutes the lawful, valid and legally binding obligation of the Company, enforceable
in accordance with its terms, except as the same may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’
rights generally and general equitable principles regardless of whether such enforceability is
considered in a proceeding at law or in equity.

                         (iii) No Violation or Conflict. The execution, delivery and performance of this
Agreement and the transactions contemplated hereby do not (A) violate, conflict with or result in
the breach of any provision of the Organizational Documents of the Company, (B) conflict with or
violate any law or Governmental Order applicable to the Company or any of its assets, properties or
businesses, or (C) conflict with, result in any breach of, constitute a default (or event that with
the giving of notice or lapse of time, or both, would become a default) under, require any consent
under, or give to others any rights of termination, amendment, acceleration, suspension, revocation
or cancellation of, or result in the creation of any Encumbrance on any of the assets or properties
of the Company, pursuant to, any note, bond, mortgage or indenture, contract, agreement, lease,
sublease, license, permit, franchise or other instrument or arrangement to which the Company is a
party except, in the case of clauses (B) and (C), to the extent that such
conflicts, breaches, defaults or other matters would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect on the Company.

                         (iv) Governmental Consents and Approvals. All HSR Filings which, if such HSR Filings
are required pursuant to Section 2(a) hereof, have been obtained on or prior to the
Purchase Option Closing Date, the execution, delivery and performance of this Agreement by the
Company do not, and the consummation of the transactions contemplated hereby do not and will not,
require any Governmental Approval which has not already been obtained, effected or provided, except
with respect to which the failure to so obtain, effect or provide would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect on the Company.

                         (v) Litigation. As of (A) the date of this Agreement, except as disclosed in any
Company Public Filings available as of the date hereof, and (B) the Purchase Option Closing Date,
there are no actions by or against the Company pending before any Governmental Authority or, to the
knowledge of the Company, threatened to be brought by or before any Governmental Authority, that
would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect
on the Company. There are no pending or, to the knowledge of the Company, threatened actions, to
which the Company is a party (or is threatened to be named as a party) to set aside, restrain,
enjoin or prevent the execution, delivery or performance of this Agreement or the Operative
Documents or the consummation of the transactions contemplated hereby or thereby by any party
hereto or thereto. The Company is not subject to any Governmental Order (nor, to the knowledge of
the Company, is there any such Governmental Order threatened to be imposed by any Governmental
Authority) that

8

 

would, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect on the Company.

                         (vi) Information. All information provided or otherwise made available by the Company
or its representatives in connection with the Programs and the underlying intellectual property,
this Agreement, the Operative Documents and the transactions contemplated thereby, when taken as a
whole, is complete and correct in all material respects and does not contain any untrue statement
of material fact or, to the Company’s Knowledge, omit to state a material fact necessary to make
the statements contained therein, in light of the circumstances under which such statements are
made, not misleading.

                         (vii) Option Premium Shares. The Company will treat the Option Premium Shares, with a
value of $4,000,000, and the Additional Investment Shares, with a value of up to $1,000,000, for
federal, state and local income tax purposes as an option premium paid in return for the grant of
the Purchase Option and the Additional Holdings Funding, as applicable.

                    (b) The Company hereby covenants and agrees with Holdings as follows:

                         (i) Immediately prior to the Purchase Option Closing Date, the Company shall have sufficient
authorized but unissued, freely transferable and nonassessable Company Common Stock or Alternate
Closing Securities, as applicable, available, to satisfy its obligation to deliver the Company
Closing Shares or Alternate Closing Securities, as applicable. Immediately prior to each Adjusted
Securities Payment Date, the Company shall have sufficient authorized but unissued, freely
transferable and nonassessable Alternate Securities available to satisfy its obligation to deliver
such Alternate Securities as required pursuant to Section 2B(a). The Company shall deliver
to Holdings on or before the Purchase Option Closing Date, a legal opinion from the Company’s legal
counsel, Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., or such other counsel as the Company
and Holdings shall mutually agree, which opinion shall be, in form and substance, reasonably
acceptable to Holdings and shall contain, with respect to the Company Closing Shares or Alternate
Closing Securities, as applicable, substantially the same opinions rendered by Mintz, Levin, Cohn,
Ferris, Glovsky and Popeo, P.C., in paragraphs 4, 5 and 7 of the opinion delivered to Holdings on
the Closing Date, along with customary assumptions and limitations. If Alternate Securities are to
be issued pursuant to Section 2B(a), the Company shall deliver to Holdings on or before
each Adjusted Securities Payment Date, a legal opinion from the Company’s legal counsel, Mintz,
Levin, Cohn, Ferris, Glovsky and Popeo, P.C., or such other counsel as the Company and Holdings
shall mutually agree, which opinion shall be, in form and substance, reasonably acceptable to
Holdings and shall contain, with respect to the Alternate Securities, substantially the same
opinions rendered by Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., in paragraphs 4, 5 and 7
of the opinion delivered to Holdings on the Closing Date, along with customary assumptions and
limitations.

9

 

                         (ii) The Company, on the Purchase Option Closing Date, shall convey good and marketable title
to the Company Closing Shares or Alternate Closing Securities, as applicable, free from any
Encumbrances and any and all other restrictions requiring that any issuance, sale, assignment or
other transfer of the Company Closing Shares or Alternate Closing Securities, as applicable, be
consented to or approved by any Person. The Company, on each Adjusted Securities Payment Date,
shall convey good and marketable title to the Alternate Securities issued pursuant to Section
2B(a), free from any Encumbrances and any and all other restrictions requiring that any
issuance, sale, assignment or other transfer of such Alternate Securities be consented to or
approved by any Person.

                         (iii) If the share certificates representing the Company Closing Shares or Alternate Closing
Securities, as applicable, and any Alternate Securities issued pursuant to Section 2B(a),
include the 33 Act Legend (as set forth in Section 2(f) hereof), the Company shall, within
two (2) Business Days of receiving a request from Holdings or any Investor (as defined in the
Registration Rights Agreement), remove or cause to be removed the 33 Act Legend from such share
certificates as Holdings or such Investor shall designate, so long as (x) the Company Closing
Shares or Alternate Closing Securities or such Alternate Securities, as applicable, represented by
such share certificates has been transferred to a third party in compliance with (A) the
registration requirements of the Securities Act or (B) Rule 144 under the Securities Act, and the
Company receives a certification from Holdings, such Investor or a securities broker designated by
Holdings or such Investor to the effect that the sale of such Company Closing Shares or Alternate
Closing Securities or such Alternate Securities, as applicable, was made under a Registration
Statement and accompanied by the delivery of a current prospectus or pursuant to Rule 144.

                         (iv) Upon the expiration of the Purchase Option or the termination of this Agreement pursuant
to Section 9 hereof, or as soon thereafter as is practical, the Company shall (A) in
accordance with and pursuant to Sections 2.7 and 2.8 of the Novated and Restated
Technology License Agreement, deliver to the Symphony Collaboration all Regulatory Files and
Tangible Materials, and (B) in accordance with and pursuant to Section 2.11 of the Novated
and Restated Technology License Agreement, provide and supply, or cause to be provided and
supplied, finished dosage form of Products.

                         (v) [Reserved.]

                         (vi) Prior to each Adjusted Securities Payment Date, the Company shall take all such actions
(at the Company’s sole cost and expense) as are necessary to permit the Company to issue the
Alternate Securities to Holdings in accordance with Section 2B(a).

                         (vii) The Company shall take all such actions (at the Company’s sole cost and expense) as are
necessary or advisable to cause (A) the issuance of any Alternate Securities by the Company to
Holdings or (B) the transfer of any securities of the Company by Holdings to the Company, in each
case pursuant to Section 

10

 

2B(a), to be exempted from Section 16(b) of the Exchange Act, provided that Holdings
shall notify the Company promptly of any transactions by it involving Company Common Stock that
could implicate Section 16(b) of the Exchange Act.

          Section 4. Holdings Representations, Warranties and Covenants.

                    (a) As of the date hereof, Holdings hereby represents and warrants, and, except to the extent
that any of the following representations and warranties are limited to the date of this Agreement
or otherwise limited, on the Purchase Option Closing Date and each Adjusted Securities Payment
Date, shall be deemed to have represented and warranted, to the Company and the Symphony
Collaboration that:

                         (i) Organization. Holdings is a limited liability company, duly formed, validly
existing and in good standing under the laws of the State of Delaware.

                         (ii) Authority and Validity. Holdings has all requisite limited liability company
power and authority to execute, deliver and perform its obligations under this Agreement and to
consummate the transactions contemplated hereby. The execution, delivery and performance by
Holdings of this Agreement and the consummation of the transactions contemplated hereby have been
duly and validly authorized by all necessary action required on the part of Holdings, and no other
proceedings on the part of Holdings are necessary to authorize this Agreement or for Holdings to
perform its obligations under this Agreement. This Agreement constitutes the lawful, valid and
legally binding obligation of Holdings, enforceable in accordance with its terms, except as the
same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar
laws affecting the enforcement of creditors’ rights generally and general equitable principles
regardless of whether such enforceability is considered in a proceeding at law or in equity.

                         (iii) No Violation or Conflict. The execution, delivery and performance of this
Agreement and the transactions contemplated hereby do not (A) violate, conflict with or result in
the breach of any provision of the Organizational Documents of Holdings, (B) conflict with or
violate any law or Governmental Order applicable to Holdings or any of its assets, properties or
businesses, or (C) conflict with, result in any breach of, constitute a default (or event that with
the giving of notice or lapse of time, or both, would become a default) under, require any consent
under, or give to others any rights of termination, amendment, acceleration, suspension, revocation
or cancellation of, or result in the creation of any Encumbrance on any of the assets or properties
of Holdings, pursuant to, any note, bond, mortgage or indenture, contract, agreement, lease,
sublease, license, permit, franchise or other instrument or arrangement to which Holdings is a
party except, in the case of clauses (B) and (C), to the extent that such
conflicts, breaches, defaults or other matters would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect on Holdings.

                         (iv) Governmental Consents and Approvals. The execution, delivery and performance of
this Agreement by Holdings do not, and the

11

 

consummation of the transactions contemplated hereby do not and will not, require any
Governmental Approval which has not already been obtained, effected or provided, except with
respect to which the failure to so obtain, effect or provide would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect on Holdings.

                         (v) Litigation. As of the date of this Agreement, there are no actions by or against
Holdings pending before any Governmental Authority or, to the knowledge of Holdings, threatened to
be brought by or before any Governmental Authority, that would, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect on Holdings. There are no pending or, to
the knowledge of Holdings, threatened actions to which Holdings is a party (or is threatened to be
named as a party) to set aside, restrain, enjoin or prevent the execution, delivery or performance
of this Agreement or the Operative Documents or the consummation of the transactions contemplated
hereby or thereby by any party hereto or thereto. As of the date of this Agreement, Holdings is
not subject to any Governmental Order (nor, to the knowledge of Holdings, is there any such
Governmental Order threatened to be imposed by any Governmental Authority) that would, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect on Holdings.

                         (vi) Stock Ownership. All of the Symphony Collaboration’s issued and outstanding
Symphony Collaboration Equity Securities are owned beneficially and of record by Holdings, free and
clear of any and all encumbrances.

                         (vii) Interim Operations. Holdings was formed solely for the purpose of engaging in
the transactions contemplated by the Operative Documents, has engaged in no other business
activities and has conducted its operations only as contemplated by the Operative Documents.

                         (viii) Accredited Investor.

                              (A) Holdings is and will remain at all relevant times an Accredited Investor.

                              (B) Holdings has relied completely on the advice of, or has consulted with or has had
the opportunity to consult with, its own personal tax, investment, legal or other advisors
and has not relied on the Company or any of its Affiliates, representatives or advisors for
advice. Holdings acknowledges that investing in the Company Securities and, if issued, the
Alternate Securities involves certain risks. Holdings acknowledges that it has had a
reasonable opportunity to conduct its own due diligence with respect to the Products, the
Programs, the Symphony Collaboration, the Company and the transactions contemplated by the
Operative Documents.

                              (C) Holdings has been advised and understands that the offer and sale of the Company
Securities and, if issued, the Alternate

12

 

Securities have not been registered under the Securities Act. Holdings is able to
bear the economic risk of such investment for an indefinite period and to afford a complete
loss thereof.

                    (D) Holdings is and will be, as applicable, acquiring the Company Securities and, if
issued, the Alternate Securities solely for Holdings’ own account for investment purposes
as a principal and not with a view to the resale of all or any part thereof; provided, that
Holdings may transfer the Company Securities and, if issued, the Alternate Securities as
set forth in Section 6.01 of the Stock and Warrant Purchase Agreement. Holdings
agrees that the Company Securities and, if issued, the Alternate Securities may not be
resold (1) without registration thereof under the Securities Act (unless an exemption from
such registration is available), or (2) in violation of any Law. Holdings is not and will
not be an underwriter within the meaning of Section 2(11) of the Securities Act with
respect to the Company Securities and, if issued, the Alternate Securities.

                    (E) No person or entity acting on behalf of, or under the authority of, Holdings is or
will be entitled to any broker’s, finder’s, or similar fees or commission payable by the
Company or any of its Affiliates.

                    (F) Holdings acknowledges and agrees to treat the Option Premium Shares, with a value
of $4,000,000, and the Additional Investment Shares, with a value of up to $1,000,000, for
federal, state and local income tax purposes as an option premium paid in return for the
grant and maintenance of the Purchase Option and the Additional Holdings Funding, as
applicable.

               (b) Holdings hereby covenants and agrees with the Company as follows:

                    (i) [Reserved.]

                    (ii) [Reserved.]

                    (iii) Encumbrance. Holdings will not, and will not permit any of its Subsidiaries to,
create, assume or suffer to exist any Encumbrance on any of its Symphony Collaboration Equity
Securities except with the prior written consent of the Company.

                    (iv) Transfer and Amendment. Commencing upon the date hereof and ending upon the
earlier to occur of (x) the Purchase Option Closing Date, and (y) the termination of this Agreement
pursuant to Sections 9(a)(i) or (ii) (such period, the “Term”), the manager
of Holdings shall not (A) transfer, or permit the transfer of, any Membership Interest without the
prior written consent of the Company or (B) amend, or permit the amendment of, any provisions
relating to the transfer of Membership Interests, as set forth in Section 7.02 of the
Holdings LLC Agreement, to the extent such

13

 

amendment would adversely affect the Company’s right of consent set forth in
Sections 7.02(b)(i) and 7.02(c) of the Holdings LLC Agreement.

                    (v) Symphony Collaboration Directors. During the Term, Holdings agrees to vote all of
its Symphony Collaboration Equity Securities (or to exercise its right with respect to such
Symphony Collaboration Equity Securities to consent to action in writing without a meeting) in
favor of, as applicable, the election, removal and replacement of one director of the Symphony
Collaboration Board, and any successor thereto, designated by the Company (the “Company
Director”) as directed by the Company. In furtherance and not in limitation of the foregoing,
Holdings hereby grants to the Company an irrevocable proxy, with respect to all Symphony
Collaboration Equity Securities now owned or hereafter acquired by Holdings, to vote such Symphony
Collaboration Equity Securities or to exercise the right to consent to action in writing without a
meeting with respect to such Symphony Collaboration Equity Securities, such irrevocable proxy to be
exercised solely for the limited purpose of electing, removing and replacing the Company Director
in the event of the failure or refusal of Holdings to elect, remove or replace such Company
Director, as directed by the Company. Additionally, Holdings agrees, during the Term, to elect two
(2) independent directors to the Symphony Collaboration Board, and any successors thereto, as shall
be selected by mutual agreement of the Company and Holdings.

                    (vi) Symphony Collaboration Board. During the Term, Holdings shall not vote any of
its Symphony Collaboration Equity Securities (or exercise its rights with respect to such Symphony
Collaboration Equity Securities by written consent without a meeting) to increase the size of the
Symphony Collaboration Board to more than five (5) members without the prior written consent of the
Company.

                    (vii) Symphony Collaboration Charter. During the Term, Holdings shall not approve or
permit any amendment to Article IV, Paragraphs (1) and (3); Article VI;
Article VII; Article VIII; Article X; Article XI or
Article XIII of the Symphony Collaboration Charter without the prior written consent of the
Company.

          Section 5. Symphony Collaboration Representations, Warranties and Covenants.

               (a) As of the date hereof, the Symphony Collaboration hereby represents and warrants, and,
except to the extent that any of the following representations and warranties are limited to the
date of this Agreement or otherwise limited, on the Purchase Option Closing Date, shall be deemed
to have represented and warranted, to the Company and Holdings that:

                    (i) Organization. The Symphony Collaboration is a corporation, duly organized,
validly existing and in good standing under the laws of the State of Delaware.

                    (ii) Authority and Validity. The Symphony Collaboration has all requisite corporate
power and authority to execute, deliver and

14

 

perform its obligations under this Agreement and to consummate the transactions contemplated
hereby. The execution, delivery and performance by the Symphony Collaboration of this Agreement
and the consummation of the transactions contemplated hereby have been duly and validly authorized
by all necessary action required on the part of the Symphony Collaboration, and no other
proceedings on the part of the Symphony Collaboration are necessary to authorize this Agreement or
for the Symphony Collaboration to perform its obligations under this Agreement. This Agreement
constitutes the lawful, valid and legally binding obligation of the Symphony Collaboration,
enforceable in accordance with its terms, except as the same may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and general equitable principles regardless of whether such
enforceability is considered in a proceeding at law or in equity.

                    (iii) No Violation or Conflict. The execution, delivery and performance of this
Agreement and the transactions contemplated hereby do not (A) violate, conflict with or result in
the breach of any provision of the Organizational Documents of the Symphony Collaboration,
(B) conflict with or violate any law or Governmental Order applicable to the Symphony Collaboration
or any of its assets, properties or businesses, or (C) conflict with, result in any breach of,
constitute a default (or event that with the giving of notice or lapse of time, or both, would
become a default) under, require any consent under, or give to others any rights of termination,
amendment, acceleration, suspension, revocation or cancellation of, or result in the creation of
any Encumbrance on any of the assets or properties of the Symphony Collaboration, pursuant to, any
note, bond, mortgage or indenture, contract, agreement, lease, sublease, license, permit, franchise
or other instrument or arrangement to which the Symphony Collaboration is a party except, in the
case of clauses (B) and (C), to the extent that such conflicts, breaches, defaults
or other matters would not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect on the Symphony Collaboration.

                    (iv) Governmental Consents and Approvals. The execution, delivery and performance of
this Agreement by the Symphony Collaboration do not, and the consummation of the transactions
contemplated hereby do not and will not, require any Governmental Approval which has not already
been obtained, effected or provided, except with respect to which the failure to so obtain, effect
or provide would not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect on the Symphony Collaboration.

                    (v) Litigation. There are no actions by or against the Symphony Collaboration pending
before any Governmental Authority or, to the knowledge of the Symphony Collaboration, threatened to
be brought by or before any Governmental Authority that would, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect on the Symphony Collaboration. There are
no pending or, to the knowledge of the Symphony Collaboration, threatened actions to which the
Symphony Collaboration is a party (or is threatened to be named as a party) to set aside, restrain,
enjoin or prevent the execution, delivery or performance of this

15

 

Agreement or the Operative Documents or the consummation of the transactions contemplated
hereby or thereby by any party hereto or thereto. The Symphony Collaboration is not subject to any
Governmental Order (nor, to the knowledge of the Symphony Collaboration, is there any such
Governmental Order threatened to be imposed by any Governmental Authority) that would, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect on the Symphony
Collaboration.

                    (vi) Capitalization. Holdings is the beneficial and record owner of all issued and
outstanding Symphony Collaboration Equity Securities. No shares of the Symphony Collaboration
capital stock are held in treasury by the Symphony Collaboration or any Symphony Collaboration
Subsidiary. All of the issued and outstanding Symphony Collaboration Equity Securities (A) have
been duly authorized and validly issued and are fully paid and nonassessable, (B) were issued in
compliance with all applicable state and federal securities laws, and (C) were not issued in
violation of any preemptive rights or rights of first refusal. No preemptive rights or rights of
first refusal exist with respect to any Symphony Collaboration Equity Securities and no such rights
will arise by virtue of or in connection with the transactions contemplated hereby (other than for
the Purchase Option). Other than the Purchase Option, there are no outstanding options, warrants,
call rights, commitments or agreements of any character to acquire any Symphony Collaboration
Equity Securities. There are no outstanding stock appreciation, phantom stock, profit
participation or other similar rights with respect to the Symphony Collaboration. The Symphony
Collaboration is not obligated to redeem or otherwise acquire any of its outstanding Symphony
Collaboration Equity Securities.

                    (vii) Interim Operations. The Symphony Collaboration was formed solely for the
purpose of engaging in the transactions contemplated by the Operative Documents, has engaged in no
other business activities and has conducted its operations only as contemplated by the Operative
Documents.

                    (viii) Investment Company. The Symphony Collaboration is not, and after giving effect
to the transactions contemplated by the Operative Documents will not be, required to register as an
“investment company” as such term is defined in the Investment Company Act of 1940, as
amended.

               (b) The Symphony Collaboration covenants and agrees that:

                    (i) The Symphony Collaboration will comply with all laws, ordinances or governmental rules or
regulations to which it is subject and will obtain and maintain in effect all licenses,
certificates, permits, franchises and other Governmental Approvals necessary to the ownership of
its properties or to the conduct of its business, in each case to the extent necessary to ensure
that non-compliance with such laws, ordinances or governmental rules or regulations or failures to
obtain or maintain in effect such licenses, certificates, permits, franchises and other
Governmental Approvals would not, individually or in the aggregate, reasonably be expected to have
a Material Adverse Effect on the Symphony Collaboration.

16

 

                    (ii) The Symphony Collaboration will file (or cause to be filed) all material tax returns
required to be filed by it and pay all taxes shown to be due and payable on such returns and all
other taxes imposed on it or its assets to the extent such taxes have become due and payable and
before they have become delinquent and shall pay all claims for which sums have become due and
payable that have or might become attached to the assets of the Symphony Collaboration;
provided, that the Symphony Collaboration need not file any such tax returns or pay any
such tax or claims if (A) the amount, applicability or validity thereof is contested by the
Symphony Collaboration on a timely basis in good faith and in appropriate proceedings, and the
Symphony Collaboration has established adequate reserves therefor in accordance with GAAP on the
books of the Symphony Collaboration or (B) the failure to file such tax returns or the nonpayment
of such taxes and assessments, individually or in the aggregate, could not reasonably be expected
to have a Material Adverse Effect on the Symphony Collaboration.

                    (iii) The Symphony Collaboration will at all times preserve and keep in full force and effect
its corporate existence.

                    (iv) The Symphony Collaboration will keep complete, proper and separate books of record and
account, including a record of all costs and expenses incurred, all charges made, all credits made
and received, and all income derived in connection with the operation of the business of the
Symphony Collaboration, all in accordance with GAAP (which GAAP shall be conformed to those used by
the Company to the extent practicable), in each case to the extent necessary to enable the Symphony
Collaboration to comply with the periodic reporting requirements of this Agreement, and will
promptly notify the Company if it adopts or changes any accounting principle pursuant to a change
in GAAP or applicable Law.

                    (v) The Symphony Collaboration will perform and observe in all material respects all of the
terms and provisions of each Operative Document to be performed or observed by it, maintain each
such Operative Document to which it is a party, promptly enforce in all material respects each such
Operative Document in accordance with its terms, take all such action to such end as may be from
time to time reasonably requested by Holdings or the Company and make to each other party to each
such Operative Document such demands and requests for information and reports or for action as the
Symphony Collaboration is entitled to make under such Operative Document.

                    (vi) The Symphony Collaboration shall permit the representatives of Holdings (including
Holdings’ members and their respective representatives), each Symphony Fund and the Company, at
each of their own expense and upon reasonable prior notice to the Symphony Collaboration, to visit
the principal executive office of the Symphony Collaboration, to discuss the affairs, finances and
accounts of the Symphony Collaboration with the Symphony Collaboration’s officers and (with the
consent of the Symphony Collaboration, which consent will not be unreasonably withheld) its
Auditors, all at such reasonable times and as often as may be reasonably requested in writing.

17

 

                    (vii) The Symphony Collaboration shall permit each Symphony Fund, at its own expense and upon
reasonable prior notice to the Symphony Collaboration, to inspect and copy the Symphony
Collaboration’s books and records and inspect the Symphony Collaboration’s properties at reasonable
times.

                    (viii) The Symphony Collaboration shall allow the Company or its designated representatives to
have reasonable visitation and inspection rights with regard to the Programs and materials,
documents and other information relating thereto.

                    (ix) The Symphony Collaboration shall permit each Symphony Fund to consult with and advise the
management of the Symphony Collaboration on matters relating to the research and development of the
Programs in order to develop the Product in accordance with the terms or provisions of the Amended
and Restated Research and Development Agreement.

                    (x) On the Purchase Option Closing Date, or as soon thereafter as is practical, the Symphony
Collaboration shall deliver to the Company all materials, documents, files and other information
relating to the Programs (or, where necessary, copies thereof).

                    (xi) During the Term, the Company shall have the right to consent to any increase in the size
of the Symphony Collaboration Board to more than five (5) directors.

                    (xii) During the Term, the Company shall have the right to designate, remove and replace one
(1) director of the Symphony Collaboration Board, including any successor thereto, as contemplated
by Section 4(b)(v).

                    (xiii) The Symphony Collaboration shall indemnify the directors and officers of the Symphony
Collaboration against liability incurred by reason of the fact that such Person is or was a
director or officer of the Symphony Collaboration, as permitted by Article VIII of the
Symphony Collaboration Charter and Section 9.01 of the Symphony Collaboration By-laws, as
set forth in, and on the terms of, the Indemnification Agreement and the RRD Services Agreement,
respectively.

                    (xiv) During the Term, the Symphony Collaboration shall comply with, and cause any Persons
acting for it to comply with, the terms of the Investment Policy with respect to the investment of
any funds held by it.

                    (xv) On or prior to the Purchase Option Closing Date, the Symphony Collaboration shall pay for
non-cancelable run-off insurance policies covering claims made or reported for a period of six (6)
years after the Purchase Option Closing Date to provide insurance coverage for events, acts or
omissions occurring on or prior to the Purchase Option Closing Date for all persons or business
entities who were covered as insured parties by the applicable insurance policies on or prior to
the Purchase Option Closing Date.

18

 

               (c) The Symphony Collaboration covenants and agrees that, until the expiration of the Term, it
shall not, and shall cause its Subsidiaries (if any) not to, without the Company’s prior written
consent:

                    (i) issue any Symphony Collaboration Equity Securities or any Equity Securities of any
Subsidiary thereof (other than any issuances of Equity Securities by the Symphony Collaboration
made in accordance with Section 1(b) hereof to Holdings so long as the Symphony
Collaboration is a wholly owned subsidiary of Holdings, or by a Subsidiary of the Symphony
Collaboration to the Symphony Collaboration or to another wholly owned Subsidiary of the Symphony
Collaboration); provided, however, that in any event any such Symphony
Collaboration Equity Securities shall be issued subject to the Purchase Option;

                    (ii) redeem, repurchase or otherwise acquire, directly or indirectly, any Symphony
Collaboration Equity Securities or the Equity Securities of any Subsidiary of the Symphony
Collaboration;

                    (iii) create, incur, assume or permit to exist Debt other than any Debt owing to parties not
affiliated with the Symphony Collaboration incurred pursuant to the Operative Documents and the
Development Budget (including payables incurred in the ordinary course of business) (“Excepted
Debt”); provided, however, that the aggregate outstanding principal amount of
all Excepted Debt for borrowed money shall not exceed $1,000,000 at any time;

                    (iv) declare or pay dividends or other distributions on any Symphony Collaboration Equity
Securities other than any dividend declared out of funds released by the Development Committee
pursuant to Section 8.1(b) of the Amended and Restated Research and Development Agreement
in respect of Discontinued Funds or from the proceeds of (x) the exercise of a Discontinuation
Option, or (y) a sale or license of a discontinued Program to a third party, in each case in
respect of which the Symphony Collaboration shall be entitled to pay (subject to the existence of
lawfully available funds) a dividend equal to the net amount (such net amount calculated as the
gross proceeds received less amounts required to be paid in respect of any and all corporate taxes
owed by the Symphony Collaboration as a result of the receipt of such gross amounts) of such
Discontinuation Price or the amounts received from such third party, as the case may be;

                    (v) enter into any transaction of merger or consolidation, or liquidate, wind up or dissolve
itself, or convey, transfer, license, lease or otherwise dispose of all, or a material portion of,
its properties, assets or business;

                    (vi) other than in respect of the Programs, engage in the development of products for any
other company or engage or participate in the development of products or engage in any other
material line of business;

19

 

                    (vii) other than entering into, and performing its obligations under, the Operative Documents
and participating in the Programs, engage in any action that negates or is inconsistent with any
rights of the Company set forth herein;

                    (viii) (A) other than as contemplated by the RRD Services Agreement and Section 6.2 of
the Amended and Restated Research and Development Agreement, hire, retain or contract for the
services of, any employees until the termination of such agreements, or (B) appoint, dismiss or
change any RRD Investment Personnel;

                    (ix) incur any financial commitments in respect of the development of the Programs other than
those set forth in the Development Plan and the Development Budget, or those approved by the
Development Committee and, if so required by the terms of Paragraph 11 of the Development Committee
Charter, the Symphony Collaboration Board in accordance with the Operative Documents;

                    (x) other than any transaction contemplated by the Operative Documents, enter into or engage
in any Conflict Transactions without the prior approval of a majority of the Disinterested
Directors of the Symphony Collaboration Board;

                    (xi) waive, alter, modify, amend or supplement in any manner whatsoever any material terms and
conditions of the RRD Services Agreement, the Subscription Agreement, the Additional Funding
Agreement, or Articles 4 and 6 of the Amended and Restated Research and Development
Agreement, except in compliance with the terms of the Operative Documents; or

                    (xii) enter into any alliance or partnership arrangement for the commercialization or
marketing of any Products under the Programs.

               (d) The Symphony Collaboration covenants and agrees to deliver, cause to be delivered, and
provide access thereto, to each other Party, each Symphony Fund, and such Auditors as the Company
may designate, so long as such Auditors shall (x) be subject to confidentiality requirements at
least as stringent as the Confidentiality Agreement or (y) be the Company Accounting Advisor
retained pursuant to an agreement which incorporates confidentiality provisions substantially the
same as the ones incorporated in the agreements in effect between the Company and such Company
Accounting Advisor as of the date hereof:

                    (i) upon request, copies of the then current Development Plan for each quarter, on or before
March 31, June 30, September 30, and December 31 of each year;

                    (ii) upon request, copies of the then current Development Budget for each quarter, including a
report setting forth in reasonable detail the projected expenditures by the Symphony Collaboration
pursuant to the Development Budget, on or before March 31, June 30, September 30, and December 31
of each year;

20

 

                    (iii) prior to the close of each fiscal year, the Symphony Collaboration shall cause the
Manager to seek to obtain from the Symphony Collaboration Auditors schedules of certain financial
information to be provided to the Company’s Auditors in connection with the Symphony Collaboration
Auditors’ audit of the Symphony Collaboration. Within fifteen (15) Business Days after the close
of each fiscal year, the Symphony Collaboration (or the Manager acting on its behalf) will provide
the Company’s Auditors with the Client Schedules. If the Symphony Collaboration Auditors deliver
the notice or listing of required Client Schedules after the end of the fiscal year, the Symphony
Collaboration (or the Manager acting on its behalf) will provide the completed Client Schedules to
the Company’s Auditors within fifteen (15) Business Days of such receipt. Following the Company’s
Auditors’ review of the Client Schedules, the Symphony Collaboration (or the Manager acting on its
behalf) will promptly provide the Company’s Auditors with any reasonably requested back-up
information related to the Client Schedules;

                    (iv) upon the Company’s Auditors’ request, the Company’s Chief Financial Officer, the Symphony
Collaboration Auditors, the Company’s Auditors and the Symphony Collaboration (or the Manager
acting on its behalf) shall agree to a completion schedule that will include (A) the provision by
the Symphony Collaboration to the Company of the financial information reasonably necessary for the
Company to consolidate the financial results of the Symphony Collaboration and (B) the following
financial statements, including the related notes thereto, audited and certified by the Symphony
Collaboration Auditors: (1) a balance sheet of the Symphony Collaboration as of the close of such
fiscal year, (2) a statement of operations for such fiscal year, and (3) a statement of cash flows
for such fiscal year. Such audited annual financial statements shall set forth in comparative form
the figures for the previous fiscal year, all in reasonable detail, prepared in accordance with
GAAP, and the Symphony Collaboration (or the Manager acting on its behalf) shall, to the extent
that the Symphony Collaboration (or the Manager acting on its behalf) can procure such an opinion
using commercially reasonable means, be accompanied by an opinion thereon of the Symphony
Collaboration Auditors to the effect that such financial statements present fairly, in all material
respects, the financial position of the Symphony Collaboration and its results of operations and
cash flows and have been prepared in conformity with GAAP, and that the examination of such
accountants in connection with such financial statements has been made in accordance with generally
accepted auditing standards, and that such audit provides a reasonable basis for such opinion in
the circumstances;

                    (v) within seven (7) Business Days following each calendar month and receipt from the Company
of its monthly invoice to the Symphony Collaboration, current accrued monthly vendor expenses and
prepaid expenses, the Symphony Collaboration (or the Manager acting on its behalf) will provide to
the Company: (A) the unaudited balance sheet of the Symphony Collaboration for the previous
calendar month; (B) the unaudited statement of operations for such previous calendar month; (C) 
the trial balance schedule for such previous calendar month; and (D) related account
reconciliations for such previous calendar month (collectively, “Unaudited Financial
Information”);

21

 

                    (vi) within five (5) Business Days following its filing, a copy of each income tax return so
filed by the Symphony Collaboration with any foreign, federal, state or local taxing authority
(including all supporting schedules thereto);

                    (vii) any other documents, materials or other information pertaining to the Programs or the
Symphony Collaboration as the Company may reasonably request, including preliminary financial
information and information and documentation of internal controls and reporting;

                    (viii) promptly, and in any event within five (5) Business Days of receipt thereof, copies of
any notice to the Symphony Collaboration from any federal or state Governmental Authority relating
to any order, ruling, statute or other law or regulation that would reasonably be expected to have
a Material Adverse Effect on the Symphony Collaboration;

                    (ix) promptly upon receipt thereof, notice of all actions, suits, investigations, litigation
and proceedings before any court or governmental department, commission, board, bureau, agency or
instrumentality, domestic or foreign, affecting the Symphony Collaboration;

                    (x) promptly upon receipt thereof, copies of any other notices, requests, reports, financial
statements and other information and documents received by the Symphony Collaboration under or
pursuant to any other Operative Document, including, without limitation, any notices of breach or
termination of any subcontracts or licenses entered into or permitted pursuant to the Operative
Documents; and

                    (xi) with reasonable promptness, such other data and information relating to the business,
operations, affairs, financial condition, assets or properties of the Symphony Collaboration or
relating to the ability of the Symphony Collaboration to perform its obligations hereunder and
under the Operative Documents as from time to time may be reasonably requested by the Company
and/or Holdings;

provided, that neither the Symphony Collaboration, nor the Manager acting on behalf of the
Symphony Collaboration, shall have any liability to the Company for the failure to deliver
financial documents or other materials hereunder, if such failure was caused by a failure of the
Company to provide, in a timely manner, data required to prepare such financial documents or other
materials to the Symphony Collaboration in a timely manner.

               (e) The Symphony Collaboration will use commercially reasonable efforts, at its own expense
(as set forth in the Development Budget), to cooperate with the Company in meeting the Company’s
government compliance, disclosure, and financial reporting obligations, including without
limitation under the Sarbanes-Oxley Act of 2002, as amended, and any rules and regulations
promulgated thereunder, under FASB Interpretation No. 46 (Revised) and under the Exchange Act.
Without limiting the foregoing, the Symphony Collaboration further covenants, until the

22

 

completion of all the reporting, accounting and other obligations set forth therein with
respect to the fiscal year in which this Agreement shall terminate, expire and end, that (w) if
requested by the Symphony Collaboration Auditors, the principal executive officer and the principal
financial officer of the Symphony Collaboration, or persons performing similar functions, shall
provide certifications to the Company corresponding to those required with respect to public
companies for which a class of securities is registered under the Exchange Act (“Public
Companies”) under Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, as amended; (x) the
Symphony Collaboration shall maintain a system of disclosure controls and internal controls (as
defined under the Exchange Act) as required under the Exchange Act for Public Companies, if
required by the Company’s Auditors in connection with their audit of the Company; (y) the Symphony
Collaboration shall provide to the Company an attestation report of the Symphony Collaboration
Auditors with respect to the Symphony Collaboration management’s assessment of the Symphony
Collaboration’s internal controls as required under the Exchange Act for Public Companies, if
required by the Company’s Auditors in connection with their audit of the Company; and (z) the
Symphony Collaboration will maintain, or cause to have maintained, such sufficient evidentiary
support for management’s assessment of the effectiveness of the Symphony Collaboration’s internal
controls as required under the Exchange Act for Public Companies.

          Section 6. Notice of Material Event. Each Party covenants and agrees that, upon its
acquiring Knowledge of (a) any breach by it of any representation, warranty, covenant or any other
term or condition of this Agreement or (b) any other event or development, in each case that is, or
is reasonably expected to be, materially adverse to the other Party with respect to any Program or
the transactions contemplated hereby, such Party shall promptly notify the other Party in writing
within three (3) Business Days of acquiring such Knowledge; provided, that neither the
provision of nor the failure to provide such notice shall impair or otherwise be deemed a waiver of
any rights any Party may have arising from such breach, event or development and that notice under
this Section 6 shall not be deemed an admission by the Party providing such notice of any
breach of any of the Operative Documents.

          Section 7. Assignment; Transfers; Legend.

               (a) Assignment by Company and Symphony Collaboration. Neither the Company nor the
Symphony Collaboration may assign, delegate, transfer, sell or otherwise dispose of (collectively,
“Transfer”), in whole or in part, any or all of their rights or obligations hereunder to
any Person (a “Transferee”) without the prior written approval of each of the other
Parties; provided, however, that the Company, without the prior approval of each of
the other Parties, may make such Transfer to any Person which acquires all or substantially all of
the Company’s assets or business (or assets or business related to the Programs) or which is the
surviving or resulting Person in a merger, consolidation or other reorganization with the Company.

               (b) Assignment and Transfers by Holdings. Prior to the expiration of the Term,
Holdings may not Transfer, in whole or in part, any or all of its Symphony Collaboration Equity
Securities or any or all of its rights or obligations

23

 

hereunder to any Person (other than the Company) without the prior written consent of the
Company. In addition, any Transfer of Symphony Collaboration Equity Securities by Holdings or any
other Person to any Person other than the Company shall be conditioned upon, and no effect shall be
given to any such Transfer unless such transferee shall agree in writing in form and substance
satisfactory to the Company to be bound by, all of the terms and conditions hereunder, including
the Purchase Option, as if such transferee were originally designated as “Holdings” hereunder.

               (c) Legend. Any certificates evidencing Symphony Collaboration Equity Securities
shall bear a legend in substantially the following form:

THE SECURITIES OF SYMPHONY ViDA, INC., EVIDENCED HEREBY ARE
SUBJECT TO AN OPTION, HELD BY OXiGENE, INC., AS DESCRIBED IN AN
AMENDED AND RESTATED PURCHASE OPTION AGREEMENT (THE “PURCHASE
OPTION AGREEMENT”) DATED AS OF JULY 2, 2009, BY AND AMONG
OXiGENE, INC. AND THE OTHER PARTIES THERETO, TO PURCHASE SUCH
SECURITIES AT A PURCHASE PRICE DETERMINED PURSUANT TO SECTION
2 OF THE PURCHASE OPTION AGREEMENT, EXERCISABLE BY WRITTEN
NOTICE AT ANY TIME DURING THE PERIOD SET FORTH THEREIN. COPIES OF
THE PURCHASE OPTION AGREEMENT ARE AVAILABLE AT THE PRINCIPAL PLACE
OF BUSINESS OF SYMPHONY ViDA, INC. AT 7361 CALHOUN PLACE, SUITE
325, ROCKVILLE, MARYLAND 20855, AND WILL BE FURNISHED TO THE
HOLDER HEREOF UPON WRITTEN REQUEST WITHOUT COST

          Section 8. Costs and Expenses; Payments. Except as otherwise specified in
Section 2(g) hereof, each Party shall pay its own costs and expenses incurred in connection
with the exercise of the Purchase Option; provided, however, that the Company shall pay any filing
fees incurred in connection with any HSR Filings or other Governmental Approvals made pursuant to
this Agreement.

          Section 9. Expiration; Termination of Agreement.

               (a) Termination.

                    (i) This Agreement shall terminate upon the mutual written consent of all of the Parties.

                    (ii) Each of Holdings and the Symphony Collaboration may terminate this Agreement in the event
that the Symphony Collaboration terminates

24

 

the Amended and Restated Research and Development Agreement in accordance with its terms.

                    (iii) Holdings may terminate this Agreement in the event that the Purchase Option Closing
shall not have occurred by September 1, 2009.

          Section 10. Survival; Indemnification.

               (a) Survival of Representations and Warranties; Expiration of Certain Covenants.

                    (i) The representations and warranties of the Parties contained in this Agreement shall
survive for a period of one year from the making of such representations, except for
representations and warranties contained in Sections 3(a)(i) and (ii), 4(a)(i) and (ii)
and 5(a)(i) and (ii) hereof which shall survive indefinitely. The liability of the Parties
related to their respective representations and warranties hereunder shall not be reduced by any
investigation made at any time by or on behalf of Holdings, the Symphony Collaboration or the
Company, as applicable.

                    (ii) For the avoidance of doubt, the covenants and agreements set forth in
Sections 4(b), 5(b)(i), 5(b)(v), 5(b)(vii)-(ix),
5(b)(xi)-(xiv), 5(c), 5(d)(i), 5(d)(ii) and
5(d)(viii)-(xi) shall, upon the expiration of the Term, expire and end without any further
obligation by the Symphony Collaboration or Holdings thereunder.

                    (iii) For the avoidance of doubt, the covenants and agreements set forth in
Sections 5(b)(ii)-(iv), 5(b)(vi), 5(b)(x), 5(d)(iii)-(vii) and
5(e) shall, upon the completion of all the reporting, accounting and other obligations set
forth therein with respect to the fiscal year in which this Agreement shall terminate, expire and
end without any further obligation by the Symphony Collaboration or Holdings thereunder.

               (b) Indemnification. To the greatest extent permitted by applicable law, the Company
shall indemnify and hold harmless the Symphony Collaboration and Holdings, and the Symphony
Collaboration and Holdings shall indemnify and hold harmless the Company, and each of their
respective Affiliates, officers, directors, employees, agents, partners, members, successors,
assigns, representatives of, and each Person, if any (including any officers, directors, employees,
agents, partners, members of such Person) who controls Holdings, the Symphony Collaboration and the
Company, as applicable, within the meaning of the Securities Act or the Exchange Act (each, an
“Indemnified Party”), from and against any and all actions, causes of action, suits,
claims, losses, costs, interest, fees, liabilities and damages, and expenses in connection
therewith (irrespective of whether any such Indemnified Party is a party to the action for which
indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements
(hereinafter, a “Loss”), incurred by any Indemnified Party to the extent resulting from,
arising out of, or relating to: (i) in the case of the Company being the Indemnifying Party,
(A) any breach of any representation or warranty made by the Company herein or in
Section 5.1 of the Novated and Restated

25

 

Technology License Agreement, or (B) any breach of any covenant, agreement or obligation of
the Company contained herein, and (ii) in the case of Holdings being the Indemnifying Party,
(A) any breach of any representation or warranty made by Holdings or the Symphony Collaboration
herein, or (B) any breach of any covenant, agreement or obligation of Holdings or the Symphony
Collaboration contained herein. To the extent that the foregoing undertaking by the Company or
Holdings may be unenforceable for any reason, such Party shall make the maximum contribution to the
payment and satisfaction of any Loss that is permissible under applicable law.

               (c) Notice of Claims. Any Indemnified Party that proposes to assert a right to be
indemnified under this Section 10 shall notify the Company or Holdings, as applicable (the
“Indemnifying Party”), promptly after receipt of notice of commencement of any action, suit
or proceeding against such Indemnified Party (an “Indemnified Proceeding”) in respect of
which a claim is to be made under this Section 10, or the incurrence or realization of any
Loss in respect of which a claim is to be made under this Section 10, of the commencement
of such Indemnified Proceeding or of such incurrence or realization, enclosing a copy of all
relevant documents, including all papers served and claims made, but the omission to so notify the
applicable Indemnifying Party promptly of any such Indemnified Proceeding or incurrence or
realization shall not relieve (x) such Indemnifying Party from any liability that it may have to
such Indemnified Party under this Section 10 or otherwise, except, as to such Indemnifying
Party’s liability under this Section 10, to the extent, but only to the extent, that such
Indemnifying Party shall have been prejudiced by such omission, or (y) any other indemnitor from
liability that it may have to any Indemnified Party under the Operative Documents.

               (d) Defense of Proceedings. In case any Indemnified Proceeding shall be brought
against any Indemnified Party, it shall notify the applicable Indemnifying Party of the
commencement thereof as provided in Section 10(c), and such Indemnifying Party shall be
entitled to participate in, and provided such Indemnified Proceeding involves a claim solely for
money damages and does not seek an injunction or other equitable relief against the Indemnified
Party and is not a criminal or regulatory action, to assume the defense of, such Indemnified
Proceeding with counsel reasonably satisfactory to such Indemnified Party. After notice from such
Indemnifying Party to such Indemnified Party of such Indemnifying Party’s election so to assume the
defense thereof and the failure by such Indemnified Party to object to such counsel within five (5)
Business Days following its receipt of such notice, such Indemnifying Party shall not be liable to
such Indemnified Party for legal or other expenses related to such Indemnified Proceedings incurred
after such notice of election to assume such defense except as provided below and except for the
reasonable costs of investigating, monitoring or cooperating in such defense subsequently incurred
by such Indemnified Party reasonably necessary in connection with the defense thereof. Such
Indemnified Party shall have the right to employ its own counsel in any such Indemnified
Proceeding, but the fees and expenses of such counsel shall be at the expense of such Indemnified
Party unless:

26

 

                    (i) the employment of counsel by such Indemnified Party at the expense of the applicable
Indemnifying Party has been authorized in writing by such Indemnifying Party;

                    (ii) such Indemnified Party shall have reasonably concluded in its good faith (which
conclusion shall be determinative unless a court determines that such conclusion was not reached
reasonably and in good faith) that there is or may be a conflict of interest between the applicable
Indemnifying Party and such Indemnified Party in the conduct of the defense of such Indemnified
Proceeding or that there are or may be one or more different or additional defenses, claims,
counterclaims, or causes of action available to such Indemnified Party (it being agreed that in any
case referred to in this clause (ii) such Indemnifying Party shall not have the right to
direct the defense of such Indemnified Proceeding on behalf of the Indemnified Party);

                    (iii) the applicable Indemnifying Party shall not have employed counsel reasonably acceptable
to the Indemnified Party, to assume the defense of such Indemnified Proceeding within a reasonable
time after notice of the commencement thereof; provided, however, that (A) this
clause (iii) shall not be deemed to constitute a waiver of any conflict of interest that
may arise with respect to any such counsel, and (B) an Indemnified Party may not invoke this
clause (iii) if such Indemnified Party failed to timely object to such counsel pursuant to
the first paragraph of this Section 10(d) above (it being agreed that in any case referred
to in this clause (iii) such Indemnifying Party shall not have the right to direct the
defense of such Indemnified Proceeding on behalf of the Indemnified Party); or

                    (iv) any counsel employed by the applicable Indemnifying Party shall fail to timely commence
or reasonably conduct the defense of such Indemnified Proceeding and such failure has prejudiced
(or is in immediate danger of prejudicing) the outcome of such Indemnified Proceeding (it being
agreed that in any case referred to in this clause (iv) such Indemnifying Party shall not
have the right to direct the defense of such Indemnified Proceeding on behalf of the Indemnified
Party);

in each of which cases the reasonable fees and expenses of counsel for such Indemnified Party shall
be at the expense of such Indemnifying Party. The Indemnifying Person shall be responsible for the
reasonable fees and expenses of only one counsel retained by all Indemnified Parties with respect
to any Indemnified Proceeding, and any additional counsel shall be retained at the expense of such
Indemnified Party, unless counsel for any Indemnified Party reasonably concludes in good faith
(which conclusion shall be determinative unless a court determines that such conclusion was not
reached reasonably and in good faith) that there is or may be a conflict of interest between such
Indemnified Party and one or more other Indemnified Parties in the conduct of the defense of such
Indemnified, in which case the Indemnifying Party shall be responsible for the reasonable fees and
expenses of such additional counsel.

               (e) Settlement. Without the prior written consent of such Indemnified Party, such
Indemnifying Party shall not settle or compromise, or consent to the entry of any judgment in, any
pending or threatened Indemnified Proceeding, unless

27

 

such settlement, compromise, consent or related judgment (i) includes an unconditional release
of such Indemnified Party from all liability for Losses arising out of such claim, action,
investigation, suit or other legal proceeding, (ii) provides for the payment of money damages as
the sole relief for the claimant (whether at law or in equity), (iii) involves no admission of fact
adverse to the Indemnified Party or finding or admission of any violation of law or the rights of
any Person by the Indemnified Party, and (iv) is not in the nature of a criminal or regulatory
action. No Indemnified Party shall settle or compromise, or consent to the entry of any judgment
in, any pending or threatened Indemnified Proceeding (A) in respect of which any payment would
result hereunder or under any other Operative Document, (B) which includes an injunction that will
adversely affect any Indemnifying Party, (C) which involves an admission of fact adverse to the
Indemnifying Party or a finding or admission of any violation of law or the rights of any Person by
the Indemnifying Party, or (D) which is in the nature of a criminal or regulatory action, without
the prior written consent of the Indemnifying Party, such consent not to be unreasonably
conditioned, withheld or delayed.

          Section 11. No Petition. Each of the Company and Holdings covenants and agrees that,
prior to March 31, 2011, it will not institute or join in the institution of any bankruptcy,
insolvency, reorganization or similar proceeding against the Symphony Collaboration. The
provisions of this Section 11 shall survive the termination of this Agreement.

          Section 12. Third-Party Beneficiary. Each of the Parties agrees that each Symphony
Fund shall be a third-party beneficiary of this Agreement.

          Section 13. Notices. Any notice, request, demand, waiver, consent, approval or other
communication which is required or permitted to be given to any Party shall be in writing addressed
to the Party at its address set forth below and shall be deemed given (i) when delivered to the
Party personally, (ii) if sent to the Party by facsimile transmission (promptly followed by a
hard-copy delivered in accordance with this Section 13), when the transmitting Party
obtains written proof of transmission and receipt; provided, however, that notwithstanding the
foregoing, any communication sent by facsimile transmission after 5:00 PM (receiving Party’s time)
or not on a Business Day shall not be deemed received until the next Business Day, (iii) when
delivered by next Business Day delivery by a nationally recognized courier service, or (iv) if sent
by registered or certified mail, when received, provided postage and registration or certification
fees are prepaid and delivery is confirmed by a return receipt:

          The Company:

OXiGENE, Inc.

701 Gateway Boulevard

South San Francisco, CA 94080

Attn: Chief Executive Officer

Facsimile: (650) 635-7001

28

 

          The Symphony Collaboration:

Symphony ViDA, Inc.

7361 Calhoun Place, Suite 325

Rockville, MD 20855

Attn: Charles W. Finn, Ph.D.

Facsimile: (301) 762-6154

          Holdings:

Symphony ViDA Holdings LLC

7361 Calhoun Place, Suite 325

Rockville, MD 20855

Attn: Robert L. Smith, Jr.

Facsimile: (301) 762-6154

          with copies to:

Symphony Capital Partners, L.P.

875 Third Avenue, 18th Floor

New York, NY 10022

Attn: Mark Kessel

Facsimile: (212) 632-5401

and

Symphony Strategic Partners, LLC

875 Third Avenue, 18th Floor

New York, NY 10022

Attn: Mark Kessel

Facsimile: (212) 632-5401

or to such other address as such Party may from time to time specify by notice given in the manner
provided herein to each other Party entitled to receive notice hereunder.

          Section 14. Governing Law; Consent to Jurisdiction and Service of Process.

               (a) This Agreement shall be governed by, and construed in accordance with, the laws of the
State of New York; except to the extent that this Agreement pertains to the internal governance of
the Company, the Symphony Collaboration or Holdings, and to such extent this Agreement shall be
governed and construed in accordance with the laws of the State of Delaware.

               (b) Each of the Parties hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of any New York State court and Delaware State court or
federal court of the United States of America

29

 

sitting in The City of New York, Borough of Manhattan or Wilmington, Delaware, and any
appellate court from any jurisdiction thereof, in any action or proceeding arising out of or
relating to this Agreement, or for recognition or enforcement of any judgment, and each of the
Parties hereby irrevocably and unconditionally agrees that all claims in respect of any such action
or proceeding may be heard and determined in any such New York State court, any such Delaware State
court or, to the fullest extent permitted by law, in such federal court. Each of the Parties
agrees that a final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in this Agreement shall affect any right that any Party may otherwise have to bring any
action or proceeding relating to this Agreement.

               (c) Each of the Parties irrevocably and unconditionally waives, to the fullest extent it may
legally and effectively do so, any objection that it may now or hereafter have to the laying of
venue of any suit, action or proceeding arising out of or relating to this Agreement in any
New York State or federal court, or any Delaware State or federal court. Each of the Parties
hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court. Each of the parties
hereby consents to service of process by mail.

          Section 15. Waiver of Jury Trial. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ALL
RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT
OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT.

          Section 16. Entire Agreement. This Agreement (including any Annexes, Schedules,
Exhibits or other attachments hereto) constitutes the entire agreement between the Parties with
respect to the matters covered hereby and supersedes all prior and contemporaneous agreements,
correspondence, discussion, and understanding with respect to such matters between the Parties,
excluding the Operative Documents.

          Section 17. Amendment; Successors; Counterparts.

               (a) The terms of this Agreement shall not be altered, modified, amended, waived or
supplemented in any manner whatsoever except by a written instrument signed by each of the Parties.

               (b) Except as set forth in Section 12, nothing expressed or implied herein is intended
or shall be construed to confer upon or to give to any Person, other than the Parties, any right,
remedy or claim under or by reason of this Agreement or of any term, covenant or condition hereof,
and all the terms, covenants, conditions, promises and agreements contained herein shall be for the
sole and exclusive benefit of the Parties and their successors and permitted assigns.

30

 

               (c) This Agreement may be executed in one or more counterparts, each of which, when executed,
shall be deemed an original but all of which, taken together, shall constitute one and the same
Agreement.

          Section 18. Specific Performance. The Parties acknowledge that irreparable damage
would result if this Agreement were not specifically enforced, and they therefore agree that the
rights and obligations of the Parties under this Agreement may be enforced by a decree of specific
performance issued by a court of competent jurisdiction. Such a remedy shall, however, not be
exclusive, and shall be in addition to any other remedies which any Party may have under this
Agreement or otherwise. The Parties further acknowledge and agree that a decree of specific
performance may not be an available remedy in all circumstances.

          Section 19. Severability. If any term or other provision of this Agreement is
invalid, illegal or incapable of being enforced by any rule of law or public policy, all other
conditions and provisions of this Agreement shall nevertheless remain in full force and effect so
long as the economic or legal substance of the transactions contemplated hereby is not affected in
a manner materially adverse to either party. Upon such determination that any term or other
provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in
good faith to modify this Agreement so as to effect the original intent of the parties as closely
as possible in an acceptable manner to the end that the transactions contemplated hereby are
fulfilled to the extent possible.

          Section 20. Tax Reporting. The Parties acknowledge and agree that, for all federal
and state income tax purposes:

               (a) (i) Holdings shall be treated as the owner of all the Equity Securities of the Symphony
Collaboration prior to the consummation of the Purchase Option; (ii) the Purchase Option shall be
treated as an option to acquire all the Equity Securities of the Symphony Collaboration; (iii) the
Option Premium Shares shall be treated as an option premium payable in respect of the grant and
exercise of the Purchase Option; and (iv) the Symphony Collaboration shall be treated as the owner
of all the Licensed Intellectual Property and shall be entitled to all deductions claimed under
Section 174 of the Code in respect of the Licensed Intellectual Property to the extent of the
amounts funded by the Symphony Collaboration (which, for the avoidance of doubt, shall not preclude
the Company from claiming deductions under Section 174 of the Code to which the Company is
otherwise entitled); and

               (b) No Party shall take any tax position inconsistent with any position described in
Section 20(a) above, except (i) in the event of a “determination” (as defined in
Section 1313 of the Code) to the contrary, or (ii) in the event either of the Parties receives an
opinion of counsel to the effect that there is no reasonable basis in law for such a position or
that a tax return cannot be prepared based on such a position without being subject to substantial
understatement penalties; provided, however, that in the case of the Company, such
counsel shall be reasonably satisfactory to Holdings.

31

 

          Section 21. Original Agreement.

               (a) The Original Agreement is hereby amended and superseded in its entirety and restated
herein. Such amendment and restatement is effective upon execution of this Agreement by the
Parties. Upon such execution, all provisions of, rights granted and covenants made in the Original
Agreement are hereby superseded in their entirety by the provisions hereof and shall have no
further force or effect.

               (b) Defined terms in the Operative Documents (other than this Agreement) that refer to
definitions in this Agreement shall be deemed to refer to the definitions in the Original
Agreement, except where the context requires otherwise.

          Section 22. Amendment to Annex A. The definition of “Purchase Option Agreement” in
Annex A is hereby amended to read, “means the Purchase Option Agreement dated as of the Closing
Date, among the Company, Holdings and the Symphony Collaboration, as the same may be amended,
amended and restated, supplemented or otherwise modified from time to time.”

[SIGNATURES FOLLOW ON NEXT PAGE]

32

 

     IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of the day and year first
above written.

	 	 	 	 	 	 	 
	 	 	OXiGENE, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ John A. Kollins	 	 
	 

	 	 	 	Name: John A. Kollins
	

	 	 
	 

	 	
	 	Title: Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	SYMPHONY ViDA HOLDINGS LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Symphony Capital Partners, L.P.,	 	 
	 

	 	 	 	its Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Symphony Capital GP, L.P.,	 	 
	 

	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Symphony GP, LLC,	 	 
	 

	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Mark Kessel 	 	 
	 

	 	
	 	 

Name: Mark Kessel
	 	 
	 

	 	
	 	Title: Managing Member	 	 
	 
	 	 	 	 	 	 
	 	 	SYMPHONY ViDA, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Mark Kessel 	 	 
	 

	 	
	 	 

Name: Mark Kessel
	 	 
	 

	 	
	 	Title: Chairman of the Board	 	 

[Signature Page to Amended and Restated Purchase Option Agreement]

 

 

ANNEX A

CERTAIN DEFINITIONS

See attached.

B-1

 

EXHIBIT 1

PURCHASE OPTION EXERCISE NOTICE

                                        , 20__

Attention:                                         

Ladies and Gentlemen:

     Reference is hereby made to that certain Amended and Restated Purchase Option Agreement dated
as of [                                         ___], 2009 (the “Purchase Option Agreement”), by and among OXiGENE, Inc.,
a Delaware corporation (the “Company”), Symphony ViDA Holdings LLC, a Delaware limited
liability company, and Symphony ViDA, Inc., a Delaware corporation. Capitalized terms used herein
and not otherwise defined herein shall have the meanings assigned thereto in the Purchase Option
Agreement.

     Pursuant to Section 2(a) of the Purchase Option Agreement, the Company hereby
irrevocably notifies you that it hereby exercises the Purchase Option.

     Subject to the terms set forth therein, the Company hereby affirms the representations and
warranties set forth in Section 3(a) of the Purchase Option Agreement, as of the date
hereof.

     The Company estimates that the Purchase Option Closing Date will be                                         , 20___.

	 	 	 	 	 
	 	Very truly yours,

OXiGENE, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:

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