EPIX MEDICAL INC
EX-10.2
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.2</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXECUTION COPY</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">STOCK PURCHASE AGREEMENT</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By and between</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EPIX MEDICAL, INC.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">And</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DR. MARTIN R. PRINCE</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dated as of November 17, 2003</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


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<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THIS AGREEMENT, dated as of
November 17, 2003, is by and between EPIX MEDICAL, INC. (the &#147;Company&#148;), a
Delaware corporation with its principal offices at 71 Rogers Street, Cambridge,
Massachusetts 02142, and Dr. Martin R. Prince, an individual residing at the
address set forth in the IP Agreement (as defined below) (&#147;the Purchaser&#148;).</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS the Company and the
Purchaser are entering into an Intellectual Property Agreement (the &#147;IP
Agreement&#148;) dated as of the date hereof, and the IP Agreement contemplates that
the parties hereto shall enter into this Stock Purchase Agreement;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, in
consideration of the promises and mutual covenants contained in the IP
Agreement and this Stock Purchase Agreement, the parties agree as follows:</font></p>

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<h1 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SECTION 1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Definitions</u>.&#160; Capitalized terms used herein, unless
otherwise defined herein, shall have the meanings given to them in the IP
Agreement.</h1>

<h1 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SECTION 2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Authorization
of Sale of the Shares</u>.&#160; The Board of
Directors of the Company has authorized the issuance and sale to the Purchaser
of 132,000 shares (each, a &#147;Share&#148; and, collectively, the &#147;Shares&#148;) of common
stock, $.01 par value per share (&#147;Common Stock&#148;), of the Company.</h1>

<h1 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SECTION 3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Agreement
to Sell and Purchase the Shares</u>.&#160;
The Company hereby agrees to issue and sell to the Purchaser at the
Closing (as defined in Section 4 hereof), upon the terms and conditions hereinafter
set forth, the Shares for the consideration set forth in the IP Agreement,
including the discharges, releases, promises and covenants not to sue contained
therein (the &#147;Equity Consideration&#148;). The aggregate purchase price for the
Shares shall be the Equity Consideration, and no further consideration shall be
due or payable under this Agreement.</h1>

<h1 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SECTION 4.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Delivery
of the Shares at the Closing</u>.&#160;
(a)&#160; The Company shall deliver to
Purchaser on January 2, 2004 (the &#147;Closing&#148;) the Shares (as appropriately
adjusted for any stock split, stock dividend, combination of shares,
recapitalization or other similar event that occurs after the date of this
Agreement but before the Closing) and, to the extent tax reporting is required,
shall report the delivery of the Shares to the Purchaser as taxable for the
taxable year 2004.&#160; Notwithstanding the
foregoing, if a Change of Control shall occur after the date of this Agreement
but before the Closing, the Company shall deliver the Shares to the Purchaser
at least</h1>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>


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<h1 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">two (2) business days
prior to such Change of Control, in which case such accelerated date shall be
the Closing.&#160; For the purpose of this
Agreement a Change of Control shall mean (i) the occurrence of a merger or
consolidation of the Company, other than a merger or consolidation that would
result in the voting securities of the Company outstanding immediately prior
thereto continuing to remain outstanding and to represent at least 50% of the
total voting power represented by the voting securities of the Company or such
surviving entity or parent of such surviving entity outstanding immediately
after such merger or consolidation, or (ii) the approval by the stockholders of
the Company of an agreement for the sale or disposition by the Company of all
or substantially all of the Company&#146;s assets.</font></h1>

<h1 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>At
the Closing the Company shall deliver to Purchaser one or more stock
certificates, pursuant to the Purchaser&#146;s reasonable request.&#160; Each such certificate shall be registered in
the name of the Purchaser.&#160; The
Company&#146;s obligation to issue and deliver the Shares at the Closing shall be
subject to the following conditions, which may be waived by the Company:&#160; (i) the representations and warranties made
by the Purchaser herein shall be true, correct and complete in all material
respects as of the date of this Stock Purchase Agreement and (ii) the Company
shall have received a certificate executed by the Purchaser certifying as to
the same.&#160; The Purchaser&#146;s obligation to
purchase the Shares shall be subject to the fulfillment of the following
conditions, any of which may be waived by the Purchaser: (i) the
representations and warranties made by the Company herein shall be true,
correct and complete in all material respects as of the date of this Stock
Purchase Agreement, and (ii) the Purchaser shall have received a certificate
executed by an officer of the Company certifying as to the same.</h1>

<h1 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SECTION 5.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Representations
and Warranties of the Company</u>.&#160; The
Company hereby represents and warrants to the Purchaser as follows:</h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Organization</u>.&#160; The Company is a corporation duly organized,
validly existing and in good standing under the laws of the State of
Delaware.&#160; The Company has full
corporate power and authority to own, operate and occupy its properties and to
conduct its business as presently conducted and is registered or qualified to
do business and in good standing in each jurisdiction in which it owns or
leases property or transacts business and where the failure to be so registered
or qualified would have a material adverse effect upon the results of</h2>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">operations or its business.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Due
Authorization</u>.&#160; The Company has all
requisite corporate power and authority to execute, deliver and perform its
obligations under this Stock Purchase Agreement and to consummate the
transactions contemplated hereby.&#160; This
Stock Purchase Agreement has been duly authorized, executed and delivered by,
and constitutes a valid and binding obligation of, the Company enforceable
against the Company in accordance with its terms, except as rights to indemnity
and contribution may be limited by state, federal or foreign laws or the public
policy underlying such laws, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting creditors&#146; and contracting parties&#146; rights generally, and except as
enforceability may be subject to general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law).</h2>

<h2 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>No
Material Adverse Change</u>.&#160; Subsequent
to the last day of the fiscal quarter covered by the most recent Quarterly
Report on Form 10-Q filed by the Company with the Securities and Exchange
Commission (the &#147;SEC&#148;), other than the IP Agreement, the Company has not
incurred any material liabilities or obligations, direct or contingent, other
than in the ordinary course of business, and there has not been any material
adverse change in its condition (in each case, financial or other), results of
operations or business.</h2>

<h2 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Capitalization</u>.&#160; As of October 31, 2003, the Company had a
total authorized capitalization consisting of (i) 40,000,000 shares of Common
Stock, of which 22,033,754 shares were outstanding, and (ii) 1,000,000 shares
of preferred stock, $.01 par value per share, of which no shares were
outstanding.&#160; As of October 31, 2003,
the Company has reserved 3,830,956 shares of Common Stock for issuance upon the
exercise of outstanding stock options, 919,454 shares for issuance upon the
exercise of stock options available for future grant under the Company&#146;s stock
option plans, and 59,720 shares of Common Stock for purchase under the
Company&#146;s Employee Stock Purchase Plan.&#160;
Except as set forth above, (i) no shares of capital stock or other
voting securities of the Company are issued, reserved for issuance or
outstanding, and (ii) there are no outstanding subscriptions, options,
warrants, convertible or exchangeable securities or other rights granted to or
by the Company to purchase shares of</h2>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Common Stock or other securities of the
Company and as of the date hereof, there are no commitments, plans or
arrangements to issue any shares of Common Stock or any security convertible
into or exchangeable for Common Stock.&#160;
The outstanding shares of capital stock of the Company have been duly
and validly issued and are fully paid and nonassessable.&#160; The Shares have been duly authorized and,
when issued pursuant to the terms of this Stock Purchase Agreement, will be
validly issued, fully paid and nonassessable and free and clear of all pledges,
liens and encumbrances (other than pledges, liens or encumbrances created by
Purchaser).</font></p>

<h2 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.5</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>No
Conflicts; Consents</u>.&#160; The execution,
delivery and performance of this Agreement and the consummation of the
transactions contemplated in this Agreement will not conflict with or
constitute a breach of, or default under, or result in the creation or imposition
of any lien, charge or encumbrance upon any property or assets of the Company
pursuant to, any contract, indenture, mortgage, loan agreement, deed, trust,
note, lease, sublease, voting agreement, voting trust or other instrument or
agreement to which the Company is a party or by which it may be bound, or to
which any of the property or assets of the Company is subject, and will not
trigger anti-dilution rights or other rights to acquire additional equity
securities of the Company, nor will such action result in any violation of the
provisions of the articles of incorporation or bylaws of the Company or any
applicable statute, law, rule, regulation, ordinance, decision, directive or
order.&#160; No consent, approval, authorization
or order of, or filing or registration with, any court or governmental agency
or body is required for the execution, delivery and performance of this
Agreement by the Company and the consummation of the transactions contemplated
hereby, other than such as have been made or obtained.</h2>

<h2 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.6</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>No
Actions</u>. There is no action, suit or proceeding before or by any court or
governmental agency or body, domestic or foreign, now pending, or, to the
knowledge of the Company, threatened, which seeks to prevent the transactions
contemplated by this Agreement or would otherwise reasonably be expected to
impair the ability of the Company to perform its obligations under this
Agreement.</h2>

<h2 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.7</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Securities
and Exchange Commission Filings</u>.&#160;
The Company has timely filed with the SEC all documents required to be
filed by the Company under the Securities Exchange Act of 1934, as amended (the
&#147;Exchange Act&#148;).&#160; The following
documents, as of their</h2>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>


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<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">respective filing dates, did not contain any
untrue statement of material fact or omit to state any material fact necessary
in order to make the statements therein, in light of the circumstances under
which they were made, not misleading:</font></p>

<h2 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h4 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt .95in;page-break-after:auto;text-indent:.55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
Company&#146;s Annual Report on Form 10-K for the fiscal year ended December 31,
2002;</h4>

<h4 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt .95in;page-break-after:auto;text-indent:.55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt .95in;page-break-after:auto;text-indent:.55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
Company&#146;s Quarterly Reports on Form 10-Q for the fiscal quarters ended March
31, 2003, June 30, 2003 and September 30, 2003;</h4>

<h4 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt .95in;page-break-after:auto;text-indent:.55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt .95in;page-break-after:auto;text-indent:.55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
Company&#146;s Proxy Statement for its 2003 Annual Meeting of Stockholders;</h4>

<h4 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt .95in;page-break-after:auto;text-indent:.55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt .95in;page-break-after:auto;text-indent:.55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
Company&#146;s Prospectus Supplement (To Prospectus dated January 15, 2003) dated
August 7, 2003 filed pursuant to Rule 424(b)(5) promulgated under the
Securities Act; and</h4>

<h4 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt .95in;page-break-after:auto;text-indent:.55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt .95in;page-break-after:auto;text-indent:.55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>all
other documents, if any, filed by the Company with the Commission since June
30, 2003 pursuant to the reporting requirements of the Exchange Act.</h4>

<h4 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt .95in;page-break-after:auto;text-indent:.55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h2 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.8</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Transfer
Taxes</u>.&#160; All stock transfer or other
taxes (other than income taxes) that are required to be paid in connection with
the sale and transfer of the Shares to the Purchaser under this Agreement (i)
in the Commonwealth of Massachusetts will be, or will have been, fully paid or
provided for by the Company and (ii) in the State of Michigan will be, or will
have been, fully paid or provided for by the Purchaser.</h2>

<h2 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.9</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Investment
Company</u>.&#160; The Company is not an
&#147;investment company&#148; within the meaning of the Investment Company Act of 1940,
as amended.</h2>

<h2 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h1 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SECTION 6.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Representations
and Warranties of the Purchaser</u>.</h1>

<h1 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h2 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Purchase
of Shares</u>.&#160; The Purchaser hereby
represents and warrants to the Company as follows: (i) the Purchaser has had an
opportunity to ask questions of and receive answers from the management of the
Company regarding the Company, its business and the</h2>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>


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</font></div>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">terms and conditions of the offering of the
Shares and (ii) the Purchaser acknowledges that it can bear the economic risk
of this investment and has such knowledge and experience in financial or
business matters that it is capable of evaluating the merits and risks of his
investment in the Shares.</font></p>

<h2 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Further
Representations by the Purchaser</u>.&#160;
The Purchaser further represents that he has satisfied himself as to the
observance in all material respects of the laws of the State of Michigan that
are required to be complied with by him in connection with (i) the legal
requirements of the State of Michigan for the acquisition of the Shares, (ii)
any foreign exchange restrictions imposed by the State of Michigan applicable
to such acquisition, (iii) any governmental or other consents of the State of
Michigan required to be obtained, and (iv) the income tax and other tax
consequences, if any, which may be relevant to the acquisition, holding,
redemption, sale or transfer of the Shares.&#160;
The Purchaser further represents that he (i) is not a minor, (ii) has
the legal capacity to execute this Stock Purchase Agreement and has done so
willingly and voluntarily, (iii) has sought and received the advice of counsel
in all matters pertaining to this Stock Purchase Agreement and (iv) has duly
executed and delivered this Stock Purchase Agreement, which constitutes a valid
and binding obligation of, the Purchaser enforceable in accordance with its
terms, except as rights to indemnity and contribution may be limited by state,
federal or foreign laws or the public policy underlying such laws, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors&#146; and contracting
parties&#146; rights generally, and except as enforceability may be subject to general
principles of equity (regardless of whether such enforceability is considered
in a proceeding in equity or at law).</h2>

<h2 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h1 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SECTION 7.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Additional
Agreements</u>.</h1>

<h1 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h2 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Prospectus
Supplement</u>.&#160; The Company hereby
covenants and agrees that:</h2>

<h2 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
Shares shall be issued pursuant to the Company&#146;s registration statement on Form
S-3 (File No. 333-84566) declared effective by the SEC on January 15, 2003 (the
&#147;Initial Registration Statement&#148;);</h3>

<h3 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>as
of the date hereof, no stop order suspending the effectiveness of the</h3>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>


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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Initial Registration Statement or any
post-effective amendment thereto has been issued and no proceeding for that
purpose has been initiated by the SEC;</font></p>

<h3 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>not
later than the second business day following the date hereof, the Company shall
file with the SEC, a prospectus supplement pursuant to Rule 424(b) (the
&#147;Prospectus Supplement&#148;);</h3>

<h3 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
Shares are listed on the Nasdaq National Market pursuant to a Notification Form
for the Listing of Additional Shares, which has been previously filed with
Nasdaq by the Company; and</h3>

<h3 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
Company shall bear all expenses in connection with the authorization, issuance,
sale, preparation and delivery of the Shares, including the filing of the
Prospectus Supplement.</h3>

<h3 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h1 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SECTION 8.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Survival
of Representations, Warranties and Agreements; Indemnification</u>.</h1>

<h1 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h2 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Survival
of Representations, Warranties and Agreements</u>.&#160; Notwithstanding any investigation made by any party to this Stock
Purchase Agreement, all covenants, agreements, representations and warranties
made by the Company and the Purchaser herein shall survive the execution
hereof, the delivery to the Purchaser of the Shares being purchased and the
payment therefor.</h2>

<h2 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Indemnification
by the Company</u>.&#160; (a) The Company hereby
agrees to defend, indemnify and hold the Purchaser harmless from and against
any damages, liabilities, losses and expenses (including reasonable attorneys&#146;
fees and expenses) that are actually sustained by the Purchaser as a result of
or based upon a material breach of any representation, warranty or agreement of
the Company in this Stock Purchase Agreement, or by reason of any claim, action
or proceeding asserted or arising out of a material breach of any such
representation, warranty or agreement.</h2>

<h2 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company will indemnify and hold harmless the Purchaser against all claims,
losses, expenses, damages and liabilities (or actions in respect thereof)
insofar as such claims, losses, expenses, damages and liabilities (or action in
respect thereof) arise out of or are</h3>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>


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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">based on any untrue statement or alleged
untrue statement of a material fact contained in any registration statement
that relates to the issuance of the Shares, including financial statements and
schedules and all other documents filed as a part thereof or incorporated by
reference therein (the &#147;Registration Statement&#148;) or the Prospectus Supplement,
or any amendment or supplement to the Registration Statement or Prospectus
Supplement, or arise out of or are based on any omission or alleged omission to
state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, and will reimburse the Purchaser
for any reasonable legal and any other expenses incurred in connection with
investigating, defending or settling any such claim, loss, damage, liability or
action; <u>provided</u>  <u>that</u> the Company will not be liable in any such
case to the extent that any such claim, loss, damage or liability (or actions
in respect thereof) arises out of or is based on any untrue statement or
alleged untrue statement or omission or alleged omission made therein in
reliance upon and in conformity with written information furnished to the
Company by the Purchaser specifically for use therein.&#160; For the purpose of this Section 8.2, the
term &#147;Registration Statement&#148; shall also include any preliminary or final
prospectus included in or relating to the Registration Statement or any supplement
or amendment to the Registration Statement or preliminary or final prospectus.</font></p>

<h3 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h2 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Indemnification
by the Purchaser</u>.&#160; (a) The Purchaser
hereby agrees to defend, indemnify and hold the Company and its officers,
directors, employees and agents (collectively, the &#147;Company Indemnitees&#148;) harmless
from and against any damages, liabilities, losses and expenses (including
reasonable attorneys&#146; fees and expenses) which are actually sustained by the
Company Indemnitees as a result of or based upon a material breach of any
representation, warranty or agreement of the Purchaser in this Stock Purchase
Agreement, or by reason of any claim, action or proceeding asserted or arising
out of a material breach of any such representation, warranty or agreement.</h2>

<h2 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Purchaser will indemnify the Company and each of its directors and officers and
each person who controls the Company against all claims, losses, expenses,
damages and liabilities (or actions in respect thereof) insofar as such claims,
losses, expenses, damages and liabilities (or actions in respect thereof) arise
out of or are based on any untrue statement or alleged untrue statement of a
material fact contained in the Prospectus Supplement or any amendment or
supplement thereto or based on any omission or alleged omission to state
therein a</h3>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">material fact required to be stated therein
or necessary to make the statements therein not misleading, and will reimburse
each such person for any reasonable legal and any other expenses incurred in
connection with investigating, defending or settling any such claim, loss,
damage, liability or action, in each case to the extent, but only to the
extent, that such untrue statement or omission or alleged untrue statement or
omission is made in such Prospectus Supplement or any amendment or supplement
thereto in reliance upon and in conformity with written information furnished
to the Company by the Purchaser specifically for use therein;<u> provided</u>
that in no event shall any indemnity under this Section&nbsp;8.3 exceed the net
proceeds received by the Purchaser from the sales of Shares pursuant to such
Registration Statement or Prospectus.</font></p>

<h3 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h2 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Contribution</u>.&#160; In order to provide for just and equitable
contribution in any case in which any person exercising rights under this
Section 8 makes a claim for indemnification, but it is judicially determined
(by the entry of a final judgment or decree by a court of competent
jurisdiction and the expiration of time to appeal or the denial of the last
right of appeal) that such indemnification may not be enforced in such case
notwithstanding the fact that this Section 8 provides for indemnification in
such case, then, the Company and the Purchaser will contribute to the aggregate
losses, claims, expenses, damages or liabilities to which they may be subject
(after contribution from others) in such proportion as is appropriate to
reflect the relative fault of the Company on the one hand and of the Purchaser
on the other in connection with the statements or omissions which resulted in such
losses, claims, expenses, damages or liabilities, as well as any other relevant
equitable considerations.&#160; The relative
fault of the Company on the one hand and of the Purchaser on the other shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or omission or alleged omission to state a
material fact relates to information supplied by the Company on the one hand or
by the Purchaser on the other, and each party&#146;s relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission; <u>provided</u>, <u>however</u>, <u>that</u>, in any such case, no
person or entity guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) will be entitled to contribution from any
person or entity who was not guilty of such fraudulent misrepresentation.&#160; Notwithstanding any provision of this
Section 8.4 to the contrary, in no event shall any amount required to be
contributed by the Purchaser exceed the net proceeds received by the Purchaser
from the sales of Shares pursuant to the Registration Statement or Prospectus
Supplement which</h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">contained such untrue or alleged untrue
statement of a material fact or omitted or allegedly omitted to state a
material fact.</font></p>

<h2 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.5</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Indemnification
Procedures</u>.&#160; Each party entitled to
indemnification under this Section 8 (the &#147;Indemnified Party&#148;) shall give
notice to the party required to provide indemnification (the &#147;Indemnifying
Party&#148;) promptly after such Indemnified Party has actual knowledge of any claim
as to which indemnity may be sought, and shall permit the Indemnifying Party to
assume the defense of any such claim or any litigation resulting therefrom;
provided that counsel for the Indemnifying Party who shall conduct the defense
of such claim or litigation shall be approved by the Indemnified Party (which
approval shall not be unreasonably withheld), and the Indemnified Party may
participate in such defense at such party&#146;s expense; provided, further, that
the failure of any Indemnified Party to give notice as provided herein shall
not relieve the Indemnifying Party of its obligations hereunder, except to the
extent such failure resulted in actual detriment to the Indemnifying
Party.&#160; Notwithstanding the foregoing,
if the defendants in any such claim or litigation include both the Indemnifying
Party and the Indemnified Party, and the Indemnified Party shall have reasonably
concluded that there may be a conflict between the positions of the
Indemnifying Party and the Indemnified Party in conducting the defense of any
such claim or litigation or that there may be legal defenses available to the
Indemnified Party that are different from or additional to those available to
the Indemnifying Party, the Indemnified Party shall have the right, at the
Indemnifying Party&#146;s expense, to select separate counsel to assume such legal
defenses and to otherwise participate in the defense of such action on the
Indemnified Party&#146;s behalf.&#160; No
Indemnifying Party, in the defense of any such claim or litigation, shall,
except with the consent of each Indemnified Party, consent to entry of any
judgment or enter into any settlement that does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such Indemnified Party
of a release from all liability in respect of such claim or litigation.</h2>

<h2 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h1 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SECTION 9.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>No
Fee</u>.&#160; The parties hereto hereby
represent that there are no brokers or finders entitled to compensation in
connection with the transactions contemplated hereby.</h1>

<h1 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SECTION 10.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Notices</u>.&#160; All notices, requests, consents and other
communications hereunder shall be in writing, shall be addressed to the
receiving party&#146;s address set forth below</h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">or to such other address as a party may
designate by notice hereunder, and shall be either (i) delivered by hand, (ii)
made by facsimile transmission, (iii) sent by overnight courier, or (iv) sent
by registered or certified mail, return receipt requested, postage prepaid:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">if
to the Company, to:</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EPIX
Medical, Inc.</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">71
Rogers Street</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cambridge,
Massachusetts 02142</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Tel:
(617) 250-6000</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax:
(617) 250-6031</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:&#160; Chief Executive Officer</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">with
a copy to:</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">William
T. Whelan, Esq.</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mintz,
Levin, Cohn, Ferris,</font></p>

<p style="margin:0in 0in .0001pt 2.1in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Glovsky
and Popeo, P.C.</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">One
Financial Center</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Boston,
Massachusetts 02111</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Tel:
(617) 542-6000</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax:
(617) 542-2241</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">if
to the Purchaser, to:</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dr.
Martin R. Prince</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">At
the address set forth</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">in
the IP Agreement</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">with
a copy to:</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Neil
A. Steinberg, Esq.</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Steinberg
&amp; Whitt, LLP</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2665
Marine Way, Suite 1150</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mountain
View, California</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Tel:
(650) 968-8079</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax:
(650) 968-8102</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All
notices, requests, consents and other communications hereunder shall be deemed
to have been given either (i) if by hand, at the time of the delivery thereof
to the receiving party at the address of such party set forth above, (ii) if
made by facsimile transmission, at the time that receipt thereof has been
acknowledged by electronic confirmation or otherwise, (iii) if sent by
overnight courier, on the next business day following the day such notice is
delivered to the courier service, or (iv) if sent by registered or certified
mail, on the 5th business day following the day such mailing is made.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SECTION 11.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Changes</u>.&#160; Any term of this Stock Purchase Agreement
may be amended or</h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">compliance therewith waived with the written
consent of the parties hereto.</font></p>

<h1 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SECTION 12.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Assignment</u>.&#160; The rights and obligations under this Stock
Purchase Agreement may not be assigned by any party hereto without the prior
written consent of the other party.&#160; Any
assignee of the rights and obligations under this Stock Purchase Agreement
pursuant to this Section 12 shall agree to be bound by the terms and conditions
contained in this Stock Purchase Agreement.</h1>

<h1 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SECTION 13.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Benefit</u>.&#160; All statements, representations, warranties,
covenants and agreements in this Stock Purchase Agreement shall be binding on,
and inure to the benefit of, the respective parties hereto and their respective
successors and permitted assigns.&#160; Other
than Sections 8.2 and 8.3 hereof, nothing herein shall be construed to create
any rights or obligations except among the parties hereto, and no person or
entity shall be regarded as a third-party beneficiary of this Stock Purchase
Agreement.</h1>

<h1 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SECTION 14.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Expenses</u>.&#160; Each of the parties hereto shall pay its own
fees and expenses (including the fees of any attorneys, accountants, appraisers
or others engaged by such party) in connection with this Stock Purchase
Agreement and the transactions contemplated hereby whether or not the
transactions contemplated hereby or thereby are consummated.</h1>

<h1 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SECTION 15.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Headings</u>.&#160; The headings of the various sections of this
Stock Purchase Agreement have been inserted for convenience of reference only
and shall not be deemed to be part hereof.</h1>

<h1 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SECTION 16.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Severability</u>.&#160; In case any provision contained in this
Stock Purchase Agreement should be invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions
contained herein shall not in any way be affected or impaired thereby.</h1>

<h1 style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SECTION 17.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Governing
Law</u>.&#160; This Stock Purchase Agreement
shall be governed by and construed in accordance with the internal laws of the
State of Delaware without giving effect to principles of conflicts of law.</h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h1 style="font-size:10.0pt;font-weight:normal;line-height:normal;margin:0in 0in .0001pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SECTION 18.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Counterparts</u>.&#160; This Stock Purchase Agreement may be
executed in counterparts, each of which shall constitute an original, but all
of which, when taken together, shall constitute one instrument, and shall
become effective when one or more counterparts have been signed by each party
hereto and delivered to the other parties.</h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">[Signature
page follows]</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

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</font></div>

<font size="2" face="Times New Roman"><font size="2" style="font-size:10.0pt;">
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<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the
parties hereto have duly executed this Stock Purchase Agreement as of the 17th
day of November 2003.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="54%" valign="top" style="padding:0in 0in 0in 0in;width:54.8%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="45%" colspan="6" valign="top" style="padding:0in 0in 0in 0in;width:45.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EPIX
  MEDICAL, INC.</font></p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in 0in 0in 0in;width:54.8%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="45%" colspan="6" valign="top" style="padding:0in 0in 0in 0in;width:45.2%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in 0in 0in 0in;width:54.8%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="28%" colspan="4" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:28.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/
  Peyton J. Marshall</font></p>
  </td>
  <td width="13%" valign="top" style="padding:0in 0in 0in 0in;width:13.38%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in 0in 0in 0in;width:54.8%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:5.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="25%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:25.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Peyton
  J. Marshall</font></p>
  </td>
  <td width="13%" valign="top" style="padding:0in 0in 0in 0in;width:13.38%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in 0in 0in 0in;width:54.8%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:5.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="26%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:26.8%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief
  Financial Officer</font></p>
  </td>
  <td width="13%" valign="top" style="padding:0in 0in 0in 0in;width:13.38%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in 0in 0in 0in;width:54.8%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:5.02%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="26%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:26.8%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="top" style="padding:0in 0in 0in 0in;width:13.38%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in 0in 0in 0in;width:54.8%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:5.02%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="26%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:26.8%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="top" style="padding:0in 0in 0in 0in;width:13.38%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in 0in 0in 0in;width:54.8%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:3.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="28%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:28.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/
  Martin R. Prince</font></p>
  </td>
  <td width="13%" valign="top" style="padding:0in 0in 0in 0in;width:13.38%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in 0in 0in 0in;width:54.8%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:3.68%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="28%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:28.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Martin
  R. Prince</font></p>
  </td>
  <td width="13%" valign="top" style="padding:0in 0in 0in 0in;width:13.38%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr height="0">
  <td width="395" style="border:none;"></td>
  <td width="25" style="border:none;"></td>
  <td width="1" style="border:none;"></td>
  <td width="10" style="border:none;"></td>
  <td width="6" style="border:none;"></td>
  <td width="187" style="border:none;"></td>
  <td width="96" style="border:none;"></td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

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</font></div>

</div>


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