Document:

EX-10.3

 Exhibit 10.3 

EXECUTION VERSION 
  

 
 AGREEMENT
AND PLAN OF MERGER 
 BY AND AMONG

 NANTCELL, INC., 

BIO MERGER SUB, INC., 

LIQUID GENOMICS, INC. 

AND 

THE STOCKHOLDER REPRESENTATIVE 

DATED AS OF MARCH 31, 2017 

 
  

 

							
	 	 	TABLE OF CONTENTS	  	 	 
			
	 	 	 	  	Page	 
			
	 ARTICLE I
	 	 DEFINITIONS
	  	 	1	 
	 1.1.
	 	 Definitions
	  	 	1	 
			
	 ARTICLE II
	 	 MERGER
	  	 	7	 
	 2.1.
	 	 The Merger
	  	 	7	 
	 2.2.
	 	 Effective Time
	  	 	7	 
	 2.3.
	 	 Effect of the Merger
	  	 	7	 
	 2.4.
	 	 Certificate of Incorporation of Surviving Corporation
	  	 	7	 
	 2.5.
	 	 Bylaws of the Surviving Corporation
	  	 	8	 
	 2.6.
	 	 Board; Officers
	  	 	8	 
	 2.7.
	 	 Merger Consideration
	  	 	8	 
	 2.8.
	 	 Effect on Shares
	  	 	8	 
	 2.9.
	 	 Company Stock Rights and Company Restricted Stock
	  	 	9	 
	 2.10.
	 	 Withholding Rights; Deductions from Merger Consideration
	  	 	9	 
	 2.11.
	 	 Dissenting Shares
	  	 	10	 
	 2.12.
	 	 Holdback Shares; Payment of Merger Consideration
	  	 	10	 
	 2.13.
	 	 Taking of Necessary Action; Further Action
	  	 	11	 
	 2.14.
	 	 Adjustments for Stock Splits, Etc
	  	 	11	 
	 2.15.
	 	 No Liability
	  	 	12	 
	 2.16.
	 	 Tax Consequences
	  	 	12	 
			
	 ARTICLE III
	 	 REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	  	 	12	 
	 3.1.
	 	 Organization
	  	 	12	 
	 3.2.
	 	 Authority
	  	 	12	 
	 3.3.
	 	 No Conflict
	  	 	13	 
	 3.4.
	 	 Consents
	  	 	13	 
	 3.5.
	 	 Subsidiaries
	  	 	14	 
	 3.6.
	 	 Company Capital Structure
	  	 	14	 
	 3.7.
	 	 Financial Statements
	  	 	16	 
	 3.8.
	 	 Absence of Certain Changes
	  	 	16	 
	 3.9.
	 	 Property
	  	 	17	 
	 3.10.
	 	 Intellectual Property
	  	 	18	 
	 3.11.
	 	 Agreements; Actions
	  	 	20	 
	 3.12.
	 	 Interested Party Transactions
	  	 	21	 
	 3.13.
	 	 Compliance with Other Instruments
	  	 	21	 
	 3.14.
	 	 Litigation
	  	 	21	 
	 3.15.
	 	 Employment Matters
	  	 	21	 
	 3.16.
	 	 Employee Benefit Plans
	  	 	22	 
	 3.17.
	 	 Tax Matters
	  	 	22	 
	 3.18.
	 	 Books and Records
	  	 	22	 
	 3.19.
	 	 Brokers’ and Finders’ Fees
	  	 	23	 
	 3.20.
	 	 Representations Complete
	  	 	23	 
			
	 ARTICLE IV
	 	 REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB
	  	 	23	 
	 4.1.
	 	 Organization
	  	 	23	 
	 4.2.
	 	 Authority
	  	 	23	 
	 4.3.
	 	 No Conflict
	  	 	24	 

  
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	 	 	 TABLE OF CONTENTS

(Cont’d)
	  	 	 
			
	 	 	 	  	Page	 
			
	 4.4.
	 	 Consents
	  	 	24	 
	 4.5.
	 	 Capitalization Matters
	  	 	24	 
	 4.6.
	 	 Litigation
	  	 	25	 
	 4.7.
	 	 Financial Statements
	  	 	25	 
			
	 ARTICLE V
	 	 CERTAIN COVENANTS
	  	 	25	 
	 5.1.
	 	 Company Stockholder Approval
	  	 	25	 
	 5.2.
	 	 Conduct of Business of the Company
	  	 	26	 
	 5.3.
	 	 Access to Information
	  	 	27	 
	 5.4.
	 	 Public Disclosure
	  	 	28	 
	 5.5.
	 	 Consents
	  	 	28	 
	 5.6.
	 	 Conditions to the Merger; Further Assurances
	  	 	28	 
	 5.7.
	 	 Notification of Certain Matters
	  	 	28	 
	 5.8.
	 	 No Solicitation
	  	 	29	 
	 5.9.
	 	 Confidentiality
	  	 	29	 
	 5.10.
	 	 Resignation of Officers and Directors
	  	 	30	 
	 5.11.
	 	 Payment of Company Obligations
	  	 	30	 
			
	 ARTICLE VI
	 	 CONDITIONS TO THE MERGER
	  	 	30	 
	 6.1.
	 	 Conditions to the Obligations of the Company
	  	 	30	 
	 6.2.
	 	 Conditions to the Obligations of Parent and Merger Sub
	  	 	31	 
			
	 Article VII
	 	 INDEMNIFICATION
	  	 	33	 
	 7.1.
	 	 Survival of Representations and Warranties
	  	 	33	 
	 7.2.
	 	 Indemnification
	  	 	33	 
	 7.3.
	 	 Indemnification by Parent
	  	 	34	 
	 7.4.
	 	 Limitations; etc
	  	 	35	 
	 7.5.
	 	 Recovery of Losses; Holdback Shares
	  	 	35	 
	 7.6.
	 	 Procedures
	  	 	36	 
	 7.7.
	 	 Merger Consideration Adjustment
	  	 	38	 
	 7.8.
	 	 Remedies Exclusive
	  	 	38	 
	 7.9.
	 	 Stockholder Representative; Power of Attorney
	  	 	38	 
	 7.10.
	 	 No Subrogation
	  	 	40	 
			
	 Article VIII
	 	 TERMINATION, AMENDMENT AND WAIVER
	  	 	40	 
	 8.1.
	 	 Termination
	  	 	40	 
	 8.2.
	 	 Effect of Termination
	  	 	41	 
	 8.3.
	 	 Amendment
	  	 	41	 
	 8.4.
	 	 Extension; Waiver
	  	 	41	 
			
	 ARTICLE IX
	 	 GENERAL PROVISIONS
	  	 	41	 
	 9.1.
	 	 Notices
	  	 	41	 
	 9.2.
	 	 Entire Agreement
	  	 	42	 
	 9.3.
	 	 Severability
	  	 	42	 
	 9.4.
	 	 Expenses
	  	 	43	 
	 9.5.
	 	 Successors and Assigns; Parties in Interest
	  	 	43	 
	 9.6.
	 	 Waiver
	  	 	43	 
	 9.7.
	 	 Construction
	  	 	43	 

  
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	 	 	 TABLE OF CONTENTS

(Cont’d)
	  	 	 
			
	 	 	 	  	Page	 
			
	 9.8.
	 	 Governing Law; Venue
	  	 	44	 
	 9.9.
	 	 Waiver of Jury Trial
	  	 	44	 
	 9.10.
	 	 Counterparts
	  	 	45	 
	 9.11.
	 	 Time of the Essence
	  	 	45	 

							
			
		 	Table of Exhibits	  			
	 Exhibit A
	 	 Information Statement
	  

  
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 AGREEMENT AND PLAN OF
MERGER 
 This AGREEMENT AND PLAN OF MERGER
(as amended, restated or supplemented from time to time, this “Agreement”) is made and entered into as of March 31, 2017, by and among NANTCELL, INC., a Delaware corporation (“Parent”), BIO MERGER
SUB, INC., a Delaware corporation and a wholly-owned subsidiary of Parent (“Merger Sub”), LIQUID GENOMICS, INC., a Delaware corporation (the “Company”), and Amy Wang, solely in her capacity as Stockholder
Representative. 
 RECITALS 

A. Parent, Merger Sub and the Company intend to effect a merger (the “Merger”) of Merger Sub with and into the Company in
accordance with this Agreement and the General Corporation Law of the State of Delaware (the “DGCL”), with the Company to be the surviving corporation of the Merger. 

B. The Company Board has (i) determined that the Merger is fair to, and in the best interests of, the Company and the Stockholders,
(ii) approved this Agreement, the Merger and the other transactions contemplated by this Agreement and (iii) recommended that the Stockholders adopt and approve this Agreement and the other transactions contemplated by this Agreement, and
approve the Merger. 
 C. The Stockholders holding (i) 82.64% of the issued and outstanding shares of Company Capital Stock, voting together
as a single class on an as-converted basis, and, (ii) 81.03% of the issued and outstanding shares of Series A Preferred Stock have approved this Agreement, the Merger and the other transactions contemplated by
this Agreement. 
 D. Parent, Merger Sub and the Company desire to make certain representations, warranties, covenants and agreements in
connection with the Merger and the transactions contemplated hereby and also to prescribe certain conditions to the Merger as specified herein. 

E. The Parties intend that the Merger be treated as a “reorganization” within the meaning of Section 368(a) of the Code. 

AGREEMENT 

NOW, THEREFORE, in consideration of the covenants, promises and representations set forth herein, and for other
good and valuable consideration, and intending to be legally bound hereby, the parties agree as follows: 
 ARTICLE I 

DEFINITIONS 
 1.1.
Definitions. For purposes of this Agreement, in addition to words defined elsewhere, the following words and phrases shall have the following meanings: 

“Affiliate” means, with respect to the Person to which it refers, a Person that directly or indirectly, through one or more
intermediaries, controls, is controlled by or is under common control with, such Person. 

 “Aggregate Series A Liquidation Value” means the maximum aggregate amount
that would be payable to the holders of the Series A Preferred Stock upon the Closing of the Merger pursuant to Section 3(a) of the Company Charter, assuming that the Merger constitutes a “Deemed Liquidation Event” (as defined in the
Company Charter). 
 “Business Day” means any day of the year on which national banking institutions in the State of
California are open to the public for conducting business and are not required to close. 
 “Confidential Information” of
any Person means any and all trade secrets and other confidential information of such Person under applicable law and other information concerning the business and affairs of such Person, including without limiting the generality of the foregoing,
all of the following: (A) information which constitutes proprietary information or trade secrets of such Person under applicable law; (B) information as to such Person which contains financial statements, financial projections and budgets,
historical and projected sales, capital spending budgets and plans, business plans, the names and backgrounds of key personnel, client lists and client information, personnel training and techniques and materials, marketing plans or market expansion
proposals and sales techniques and materials of such Person, however documented; (C) information which confers a competitive advantage on such Person; (D) information which would be detrimental to such Person if disclosed; (E) product
specifications, discoveries, improvements, processes, marketing and service methods or techniques, formulae, designs, styles, specifications, databases, computer programs (whether in source code or object code),
know-how, strategies, data, current and anticipated client requirements, price lists, market studies, business plans, and any other information, however documented, that is a trade secret of the Business under
applicable law; and (F) notes, analyses, compilations, studies, summaries, and other material prepared by or for such Person containing or based, in whole or in part, on any information included in the foregoing. 

“Code” means the United States Internal Revenue Code of 1986, as amended. 

“Common Merger Consideration” means the amount equal to (i) the Merger Consideration, less (ii) the Series A
Merger Consideration. 
 “Common Stock Base Number” means the aggregate number of shares of Company Common Stock issued and
outstanding immediately prior to the Effective Time, including all shares of Company Common Stock issued after the date hereof but prior to the Effective Time (i) upon conversion of any Series A Preferred Stock or (ii) upon the exercise of
any Company Stock Rights or other vested rights to acquire Company Common Stock. 
 “Company Board” means the board of
directors of the Company. 
 “Company Capital Stock” means the Company Common Stock and the Series A Preferred Stock,
collectively. 
 “Company Charter” means the Amended and Restated Certificate of Incorporation of the Company, as amended
through the date hereof. 

  
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 “Company Common Stock” means the common stock of the Company, $0.0001 par
value per share. 
 “Company Employee Plan” means any plan, program, policy, practice, contract, agreement or other
arrangement (written or oral) providing for deferred compensation, profit sharing, bonus, severance, termination pay, performance awards, stock or stock-related awards, fringe benefits, welfare, pension or other employee benefits or remuneration of
any kind, whether formal or informal, funded or unfunded, including each “employee benefit plan” within the meaning of Section 3(3) of ERISA, which is or has been maintained, contributed to, or required to be contributed to, by the
Company or ERISA Affiliates for the benefit of any Employee, or pursuant to which the Company has or may have any material liability, contingent or otherwise. 

“Company Incentive Plan” means the Company’s 2015 Employee, Director and Consultant Equity Incentive Plan. 

“Company Licensed Intellectual Property” means all Intellectual Property exclusively or
non-exclusively licensed to the Company by any third party at the Effective Time, as set forth in Section 3.10(a) of the Company Disclosure Schedule. 

“Company Owned Intellectual Property” means all Intellectual Property owned by the Company at the Effective Time, as set
forth in Section 3.10(a) of the Company Disclosure Schedule. 
 “Company Intellectual Property”
means all Company Licensed Intellectual Property and all Company Owned Intellectual Property. 
 “Company Material Adverse
Effect” means a material adverse effect on the business, assets, liabilities, financial condition, or results of operations of the Company taken as a whole, using the business, assets, liabilities, financial condition and results of
operations of the Company taken as a whole as of the date of this Agreement as a baseline; provided that such term shall not include any changes in any of the following to the extent that they do not have a disproportionate adverse effect on
the Company: (a) events, circumstances, changes or effects that generally affect the industry in which the Company operates, other than as may materially disproportionately impact the business of the Company (but then only to the extent of such
materially disproportionate impact); (b) general economic conditions or events, circumstances, changes or effects affecting the economy generally, other than as may materially disproportionately impact the business of the Company (but then only
to the extent of such materially disproportionate impact); (c) changes arising from the consummation of the transactions contemplated by, or the announcement of the execution of, this Agreement, (d) any circumstance, change or effect that
results from any action taken at the request of Parent in a separate writing to the Company; or (e) conditions caused by acts of terrorism or war (whether or not declared) or any natural or man-made
disaster, weather phenomenon or acts of God. 
 “Company Option” means an option to purchase shares of Company Capital
Stock other than a Company Warrant. 

  
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 “Company Restricted Stock” means any share of Company Common Stock that is
subject to vesting or other lapsing restrictions pursuant to the Company Incentive Plan or any applicable restricted stock award agreement. 

“Company Stock Rights” means: (i) all outstanding Company Options, (ii) all outstanding Company Warrants and
(iii) all other outstanding subscriptions, options, calls, warrants or any other rights, whether or not currently exercisable, to acquire any shares of Company Capital Stock or that are or may become convertible into or exchangeable for any
shares of Company Capital Stock or another Company Stock Right. 
 “Company Warrants” means warrants to purchase shares of
Company Capital Stock. 
 “Dissenting Share Payments” means (x) any payment in respect of Dissenting Shares in excess
of the consideration that otherwise would have been payable in respect of such shares in accordance with this Agreement and (y) any costs or expenses (including attorneys’ fees, costs and expenses in connection with any action or
proceeding or in connection with any investigation) in respect of any Dissenting Shares. 
 “Employee” means any current
employee, officer, or director of the Company. 
 “Employment Agreement” means each management, employment, severance,
consulting, relocation, repatriation, expatriation, visa, work permit or similar agreement between the Company or any Affiliate and any Employee, consultant or advisor. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 

“GAAP” means U.S. generally accepted accounting principles in effect on the date on which they are to be applied pursuant to
this Agreement, applied consistently throughout the relevant periods. 
 “Holdback Shares” means shares of Parent Common
Stock representing ten percent (10%) of the Merger Shares (or 50,000 shares of Parent Common Stock). 
 “Intellectual
Property” means intellectual property or proprietary rights of any description including (a) rights in any patent, patent application (including any provisionals, continuations, divisionals, continuations-in-part, extensions, renewals, reissues, revivals and reexaminations, any national phase PCT applications, any PCT international applications, and all foreign counterparts), copyright,
industrial design, URL, domain name, trademark, service mark, logo, trade dress or trade name, (b) related registrations and applications for registration, (c) trade secrets, moral rights or publicity rights, (d) inventions,
discoveries, or improvements, modification, know-how, technique, methodology, writing, work of authorship, design or data, whether or not patented, patentable, copyrightable or reduced to practice, including
any inventions, discoveries, improvements, modification, know-how, technique, methodology, writing, work of authorship, design or data embodied or disclosed in any: (i) computer source codes (human
readable format) and object codes (machine readable format); (ii) specifications; (iii) manufacturing, assembly, test, installation, service and inspection instructions and procedures; (iv) engineering, programming, service and
maintenance notes and logs; (v) technical, operating and service and maintenance manuals and data; (vi) hardware 

  
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reference manuals; and (vii) user documentation, help files or training materials, and (e) good will related to any of the foregoing. 

“Key Employee” means Kathleen Danenberg. 

“Knowledge” (including any derivation thereof such as “known” or “knowing”) means with respect to the
Company, the actual knowledge of the Key Employee after due inquiry. 
 “Law” mean any federal, state, local, municipal,
foreign or other law, statute, legislation, constitution, principle of common law, resolution, ordinance, code, order, edict, decree, proclamation, treaty, convention, rule, regulation, permit, ruling, directive, pronouncement, requirement
(licensing or otherwise), specification, determination, decision, opinion or interpretation that is or has been issued, enacted, adopted, passed, approved, promulgated, made, implemented or otherwise put into effect by or under the authority of any
Governmental Authority. 
 “Liabilities” means any debt, obligation, duty, liability or Tax of any nature (including any
unknown, undisclosed, unmatured, unaccrued, unasserted, contingent, indirect, conditional, implied, vicarious, derivative, joint, several or secondary liability), including any change of control severance or similar payment, regardless of whether
such debt, obligation, duty, liability or Tax would be required to be disclosed on a balance sheet prepared in accordance with GAAP and regardless of whether such debt, obligation, duty or liability is immediately due and payable. 

“Lien” means any lien, pledge, mortgage, deed of trust, security interest, claim, lease, license, charge, option, right of
first refusal, easement, restriction, reservation, servitude, proxy, voting trust or agreement, transfer restriction under any shareholder or similar agreement, or encumbrance of any nature whatsoever. 

“Loss” or “Losses” means any and all claims, losses, royalties, liabilities, damages, deficiencies,
reduction in net operating losses, interest and penalties, costs and expenses, including reasonable attorneys’ fees and expenses, and expenses of investigation and defense incurred or suffered by any Indemnified Parties directly or indirectly
as a result of, with respect to, relating to or in connection with an event, circumstance or state of facts. Losses shall specifically include court costs and the reasonable fees and expenses of legal counsel arising out of or relating to any direct
or third-party claims, demands, actions, causes of action, suits, litigations, arbitrations or Liabilities. Losses shall not include any exemplary or punitive damages except to the extent of any Losses payable to a third party as a result of a
Third-Party Claim that includes exemplary or punitive damages. 
 “Parent Common Stock” means the common stock of Parent,
$0.001 par value per share. 
 “Parent Stock Value” means ten dollars ($10.00), subject to adjustment in the event of a
stock split, reverse stock split, stock dividend (including any dividend or distribution of securities convertible into capital stock), reorganization, reclassification, combination, recapitalization or other like change with respect to shares of
Parent Common Stock occurring after the date of this Agreement and before the Effective Time. 

  
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 “Per Share Common Merger Consideration” means the amount equal to the
(i) the Common Merger Consideration, divided by (ii) the Common Stock Base Number. 
 “Per Share Series A Merger
Consideration” means the amount equal to the (i) the Series A Merger Consideration, divided by (ii) the number of shares of Series A Preferred Stock outstanding immediately prior to the Effective Time, and specifically
excluding any shares of Series A Preferred Stock that is converted to Company Common Stock in connection with the Merger. 

“Person” means any individual, corporation, partnership, limited liability company, firm, joint venture, association,
joint-stock company, trust, unincorporated organization, Governmental Entity or other entity. 
 “Participating
Stockholder” means a Stockholder who is entitled to receive Merger Shares pursuant to Section 2.8(a). 

“Proceeding” means any action, suit, litigation, arbitration, proceeding (including any civil, criminal, administrative,
investigative or appellate proceeding), prosecution, contest, hearing, inquiry, inquest, audit, examination or investigation that is, has been or may in the future be commenced, brought, conducted or heard at law or in equity or before any
Governmental Entity or any arbitrator or arbitration panel. 
 “Pro Rata Share” means, with respect to each Participating
Stockholder, the quotient obtained by dividing (x) the number of Merger Shares to which such Participating Stockholder is entitled to receive pursuant to Section 2.8(a) as of the Effective Time by (y) the
aggregate number of Merger Shares payable to all Participating Stockholders at the Effective Time. 
 “Required
Stockholders” means Stockholders holding (i) a majority of the issued and outstanding shares of Company Capital Stock, voting together as a single class on an as-converted basis, and, (ii) a
majority of the issued and outstanding shares of Series A Preferred Stock. 
 “Series A Merger Consideration” means the
amount equal to the lesser of (i) the Aggregate Series A Liquidation Value and (ii) the Merger Consideration. 
 “Series A
Preferred Stock” means the Company’s Series A Preferred Stock, par value $0.0001 per share. 
 “Stockholders”
means the holders of shares of Company Capital Stock as of the date hereof, or, as the context requires, immediately prior to the Effective Time. 

“Tax” means any federal, state, local and foreign net income, alternative or add-on
minimum, estimated, gross income, gross receipts, sales, use, ad valorem, value added, transfer, franchise, capital profits, lease, service, license, withholding, payroll, employment, excise, severance, stamp, occupation, premium, property,
environmental or windfall profit tax, customs duty or other tax, governmental fee or other like assessment or charge of any kind whatsoever (including any Tax liability incurred or borne as a transferee or successor, or by contract or otherwise),
together with all interest, penalties, additions to tax and additional amounts with respect thereto. 

  
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 “Tax Returns” means all returns, declarations, reports, claims for refund,
information statements and other documents relating to Taxes, including all schedules and attachments thereto, and including all amendments thereof. 

“Transaction Expenses” means all costs, fees and expenses incurred (whether or not invoiced) by the Company in connection
with this Agreement and the transactions contemplated hereby, including (A) fees and expenses of advisors, investment bankers, lawyers and accountants arising of, relating to or incidental to the discussion, evaluation, financing, negotiation
and documentation of the transactions contemplated hereby, (B) fees and expenses associated with obtaining necessary or appropriate waivers, consents or approvals of any governmental entity or third parties on behalf of the Company, and
(C) all brokers’ or finders’ fees. 
 ARTICLE II 

MERGER 
 2.1. The Merger.
At the Effective Time, and subject to and upon the terms and conditions of this Agreement and the provisions of the DGCL, Merger Sub shall be merged with and into the Company pursuant to which (a) the separate corporate existence of Merger Sub
shall cease and (b) the Company shall be the Surviving Corporation in the Merger (the “Surviving Corporation”). 

2.2. Effective Time. The closing of the transactions contemplated by this Agreement (the “Closing”) will take place at
the offices of Parent, 9920 Jefferson Boulevard, Culver City, California 90232, on the day which is no later than two Business Days after the day on which the last of the conditions set forth in Article VI (other than those
that can only be fulfilled at the Closing, but subject to the fulfillment or waiver of such conditions) is fulfilled or waived, or at such other time and place as Parent and the Company shall agree in writing. The date upon which the Closing occurs
is herein referred to as the “Closing Date.” On the Closing Date, the parties hereto shall cause the Merger to be consummated by filing a properly completed and executed Certificate of Merger satisfying the requirements of the DGCL
(the “Certificate of Merger”) with the Secretary of State of the State of Delaware in accordance with the relevant provisions of the DGCL (the date and time of the filing of the Certificate of Merger with the Secretary of State of
the State of Delaware (or such later time as may be agreed by each of the parties hereto and specified in the Certificate of Merger) being referred to herein as the “Effective Time”). 

2.3. Effect of the Merger. At the Effective Time, the effect of the Merger shall be as provided in this Agreement and the applicable
provisions of the DGCL. Without limiting the generality of the foregoing, and subject thereto, at the Effective Time, all rights and property of the Company and Merger Sub shall vest in the Surviving Corporation, and all debts and liabilities of the
Company and Merger Sub, including, without limitation, all amounts outstanding under that certain Promissory Note, dated as of March 2, 2017, by and between the Company and NantWorks, LLC, shall become debts and liabilities of the Surviving
Corporation. 
 2.4. Certificate of Incorporation of Surviving Corporation. From and after the Effective Time, the certificate of
incorporation of Merger Sub shall be the certificate of incorporation of the Surviving Corporation until amended in accordance with the provisions thereof and applicable Law, except that Section 1 of the certificate of incorporation of the
Surviving Corporation, instead of reading the same as Section 1 of the certificate of 

  
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incorporation of Merger Sub, shall read as follows: “The name of this corporation is “Liquid Genomics, Inc.” 

2.5. Bylaws of the Surviving Corporation. At the Effective Time, the bylaws of Merger Sub, as in effect immediately prior to the
Effective Time, shall be the bylaws of the Surviving Corporation until amended in accordance with the provisions thereof and applicable Law. 

2.6. Board; Officers. The directors of Merger Sub immediately prior to the Effective Time shall be the initial directors of the
Surviving Corporation, each to hold office in accordance with the certificate of incorporation and bylaws of the Surviving Corporation, and the officers of Merger Sub immediately prior to the Effective Time shall be the initial officers of the
Surviving Corporation, in each case until their respective successors are duly elected or appointed and qualified. 
 2.7. Merger
Consideration. The aggregate consideration to be paid by Parent and Merger Sub in the Merger (the “Merger Consideration”) to the Stockholders shall be Five Million Dollars ($5,000,000.00), payable by delivery of shares of Parent
Common Stock as provided in Section 2.8. 
 2.8. Effect on Shares. 

(a) At the Effective Time, by virtue of the Merger and without any action on the part of Parent, Merger Sub, the Company or the holders of any
Company Capital Stock: 
 (i) Unless converted to Company Common Stock in accordance with the Company Charter, each share of the Series A
Preferred Stock issued and outstanding immediately prior to the Effective Time (other than Dissenting Shares) shall, by virtue of the Merger and without any action on the part of Parent, the Company or the holder thereof, be converted into the right
to receive that number of shares of Parent Common Stock equal to (A) the Per Share Series A Merger Consideration, divided by (B) the Parent Stock Value (such number of shares of Parent Common Stock, the “Preferred Per Share
Merger Shares”). Any shares of Series A Preferred Stock held in the treasury of the Company shall be canceled and extinguished without any conversion thereof. 

(ii) Each share of the Company Common Stock issued and outstanding immediately prior to the Effective Time (other than Dissenting Shares),
including shares of Company Common Stock issued upon conversion of any shares of Series A Preferred Stock or upon exercise of any Company Stock Rights prior to the Effective Time, shall, by virtue of the Merger and without any action on the part of
Parent, the Company or the holder thereof, be converted into the right to receive that number of shares of Parent Common Stock equal to (A) the Per Share Common Merger Consideration, divided by (B) the Parent Stock Value (such
number of shares of Parent Common Stock, the “Common Per Share Merger Shares,” and collectively with the Preferred Per Share Merger Shares, the “Merger Shares”). Any shares of Company Common Stock held in the
treasury of the Company shall be canceled and extinguished without any conversion thereof. 
 (iii) Each share of Common Stock of Merger
Sub issued and outstanding immediately prior to the Effective Time shall be converted into and exchanged 

  
 -8- 

 
for one validly issued, fully paid and nonassessable share of Common Stock of the Surviving Corporation. Each stock certificate of Merger Sub evidencing ownership of any such shares of Common
Stock of Merger Sub shall, as of the Effective Time, evidence ownership of such shares of Common Stock of the Surviving Corporation; and 

(iv) Each share of Company Capital Stock held by Parent immediately prior to the Effective Time shall be cancelled, and no payment shall be
made with respect thereto. 
 (b) Immediately following the Effective Time, except as provided in
Section 2.8(a)(iii), all shares of Company Capital Stock shall cease to be outstanding and shall be cancelled and retired and shall cease to exist, and each holder of shares of Company Capital Stock shall thereafter cease
to have any rights with respect to such shares of Company Capital Stock, except for the right to receive the Merger Consideration as provided herein. 

(c) No fractional shares of Parent Common Stock shall be issued as part of the Merger Consideration. In lieu of any such fractional share of
Parent Common Stock, each holder of Company Capital Stock otherwise entitled to a fraction of a share of Parent Common Stock will be entitled to receive a cash payment in an amount, rounded down to the nearest cent, equal to the product of
(i) such fractional part of a share of Parent Common Stock multiplied by (ii) the Parent Stock Value. 
 (d) At the
Effective Time, the stock transfer books of the Company shall be closed and there shall be no further registration of transfers of shares of Company Capital Stock thereafter on the records of the Company. From and after the Effective Time, the
holders of certificates representing shares of Company Capital Stock outstanding immediately prior to the Effective Time shall cease to have any rights with respect to such shares of Company Capital Stock, except as otherwise provided in this
Agreement or by applicable Law. 
 (e) Any shares of Parent Common Stock issued as part of the Merger Consideration have not been and will
not be registered under any federal or state securities or “blue-sky” laws and regulations, or the securities laws and regulations of any other jurisdiction, and will be subject to restrictions on
transfer imposed by such laws and regulations. Parent may include on any certificates issued which represent such shares of Parent Common Stock such legends as Parent shall deem appropriate referencing such transfer restrictions, and shall inform
its transfer agent of same. 
 2.9. Company Stock Rights and Company Restricted Stock. 

(a) Company Options. Each Company Option not exercised prior to the Effective Time shall be cancelled and extinguished as of the
Effective Time. 
 (b) Company Warrants. At the Effective Time, and contingent upon the effectiveness of the Merger, each outstanding
Company Warrant not exercised prior to the Effective Time shall be canceled and extinguished. 
 2.10. Withholding Rights; Deductions
from Merger Consideration. Each of the Surviving Corporation and Parent shall be entitled to deduct and withhold from any payment to any Person under this Agreement or any Related Agreements such amounts

  
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as it is required by Law to deduct and withhold with respect to the making of such payment or any other Tax withholding obligation with respect to the Merger Consideration. To the extent that
amounts are so withheld or deducted by the Surviving Corporation or by Parent, as the case may be, such withheld amounts shall be treated for all purposes of this Agreement as having been paid to such Person in respect of which such deduction and
withholding was made by the Surviving Corporation or by Parent, as the case may be. Parent or the Surviving Corporation, as the case may be, shall pay over to the appropriate Governmental Entity all amounts withheld under this
Section 2.10. 
 2.11. Dissenting Shares. 

(a) Notwithstanding any provision of this Agreement to the contrary, any shares of Company Capital Stock held by a Stockholder who demands and
perfects appraisal rights for such shares in accordance with the DGCL and who, as of the Effective Time, has not effectively withdrawn or lost such appraisal rights (collectively, “Dissenting Shares”), shall not be converted into or
represent the right to receive any portion of the Merger Consideration pursuant to Section 2.8, but the holder thereof shall only be entitled to such rights as are granted by the DGCL. 

(b) If any Stockholder who holds Dissenting Shares as of the Effective Time effectively withdraws or loses (through passage of time, failure
to demand or perfect, or otherwise) the right to demand and perfect appraisal rights under the DGCL, then, as of the later of the Effective Time and the occurrence of such event, such holder’s shares that were Dissenting Shares shall
automatically be converted into and represent only the right to receive a portion of the Merger Consideration pursuant to and subject to Section 2.8 without interest thereon upon surrender of the certificate representing
such shares. 
 (c) The Company shall give Parent (i) prompt written notice of any demands for appraisal of any shares of Company
Capital Stock, withdrawals of such demands, and any other instruments or notices served pursuant to the DGCL on the Company and (ii) the opportunity to participate in all negotiations and proceedings with respect to demands for appraisal under
the DGCL. The Company shall not, except with the prior written consent of Parent, voluntarily make or agree to make any payment with respect to any demands for appraisal of Company Capital Stock, or settle or offer to settle any such demands. 

2.12. Holdback Shares; Payment of Merger Consideration. 

(a) Holdback Shares. At the Effective Time, as security for the Stockholders’ indemnification obligations set forth in Article
VII, Parent shall hold back in escrow and set aside each Participating Stockholder’s Pro Rata Share of the Holdback Shares. Participating Stockholders may not sell, exchange, transfer or otherwise dispose of their right to receive any
portion of the Holdback Shares without the written consent of Parent (which may be granted or withheld in Parent’s sole discretion). Any transfer or attempted transfer in violation of this Section 2.12(a) shall be null
and void and need not be recognized by Parent or the Surviving Corporation. Except in the case of any Holdback Shares forfeited and cancelled as provided in Section 7.5(b), (i) the Holdback Shares shall be treated by Parent
as issued and outstanding, (ii) the Participating Stockholders shall be treated as the beneficial owners of the Holdback Shares held in escrow, and (iii) the Participating Stockholders shall have the right to receive any dividends declared
and paid and the right to exercise voting privileges with respect to the Holdback Shares. 

  
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 (b) Exchange Procedures. Promptly following the Closing, Parent will cause the
Surviving Corporation to send to each holder of record of a certificate or certificates (the “Certificates”) that immediately prior to the Effective Time represented outstanding shares of Company Capital Stock forms of (i) a
letter of transmittal (the “Letter of Transmittal”) which shall specify that delivery of Certificates shall be effected, and risk of loss and title to the Certificates shall pass, only upon delivery of the Certificates to Parent and
shall be in such form and have such other provisions as Parent may specify and (ii) instructions for use in effecting the surrender of the Certificates in exchange for the amount of the Merger Consideration payable in exchange therefore. The
Letter of Transmittal shall indicate that applicable withholding Taxes with respect to payments on account of shares of Company Capital Stock that were obtained upon the exercise of Company Stock Rights will be withheld, if required, from the Merger
Consideration otherwise payable to each holder thereof in connection with the Merger and that other amounts may be withheld from any Stockholder in accordance with the terms of this Agreement. Following the Effective Time and upon delivery to Parent
of a duly completed and executed Letter of Transmittal, together with surrender of a Certificate (or Certificates) for cancellation, the Stockholder shall be entitled to receive in exchange therefor the portion of the Merger Consideration to which
such Stockholder is entitled pursuant to Section 2.8, less each Participating Stockholder’s Pro Rata Share of the Holdback Shares, and Parent shall promptly issue the shares of Parent Common Stock issuable to such
Stockholder. The Certificate(s) so surrendered shall be canceled. Following the Effective Time, until so surrendered, each outstanding Certificate that, prior to the Effective Time, represented shares of Company Capital Stock will be deemed from and
after the Effective Time, for all corporate purposes, to evidence only the right to receive the portion of Merger Consideration as provided in Section 2.8. 

(c) Lost, Stolen or Destroyed Certificates. In the event any Certificates shall have been lost, stolen or destroyed, Parent shall issue
in exchange for such lost, stolen or destroyed Certificates, upon the making of an affidavit of that fact by the holder thereof, the Merger Consideration required pursuant to Section 2.8, less any Holdback Shares withheld
pursuant to this Section. 
 2.13. Taking of Necessary Action; Further Action. If, at any time after the Effective Time, any further
action is necessary or desirable to carry out the purposes of this Agreement and to vest the Surviving Corporation with full right, title and possession to all assets, property, rights, privileges, powers and franchises of the Company and Merger
Sub, the officers and directors of Parent, the Company and Merger Sub are fully authorized in the name of their respective corporations or otherwise to take, and will take, all such lawful and necessary action. 

2.14. Adjustments for Stock Splits, Etc. If there is a stock split, reverse stock split, stock dividend (including any dividend or
distribution of securities convertible into capital stock), reorganization, reclassification, combination, recapitalization or other like change with respect to shares of Company Capital Stock or Parent Common Stock occurring after the date of this
Agreement and before the Effective Time, all references in this Agreement to specified numbers of shares of any class or series affected thereby, and all calculations that are based upon numbers of shares of any class or series (or trading prices
therefor) affected thereby, shall be equitably adjusted to the extent necessary to provide the parties the same economic effect as contemplated by this Agreement prior to such stock split, reverse stock split, stock dividend, reorganization,
reclassification, combination, recapitalization or other like change. 

  
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 2.15. No Liability. Notwithstanding anything to the contrary in this Agreement,
neither Parent nor the Surviving Corporation nor any party hereto shall be liable for any amount properly paid to a public official in compliance with any applicable abandoned property, escheat or similar Law. 

2.16. Tax Consequences. For federal income tax purposes, the Merger is intended to qualify as a “reorganization” within the
meaning of Section 368(a) of the Code. The parties to this Agreement, and their respective Affiliates (i) adopt this Agreement as a “plan of reorganization” within the meaning of Treasury Regulation Sections 1.368-2(g) and 1.368-3(a), (ii) are not aware of any agreement, plan or other circumstance that would prevent the Merger from qualifying as a “reorganization” within
the meaning of Section 368(a) of the Code, (iii) shall use commercially reasonable efforts to cause the Merger to qualify as a “reorganization” within the meaning of Section 368(a) of the Code, and (iv) shall treat and
report the Merger as a “reorganization” within the meaning of Section 368(a) of the Code (and any comparable state or local tax statute) for all Tax purposes, unless otherwise required pursuant to a “determination” within
the meaning of Section 1313(a) of the Code. The provisions of this Section 2.16 shall survive the Closing and are intended to be for the benefit of and shall be enforceable by the Parties and their respective
stockholders. 
 ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY 

Subject to such exceptions as are disclosed in a Schedule of the disclosure letter dated as of the date hereof and delivered herewith to
Parent (the “Company Disclosure Schedule”) corresponding to the applicable Section of this Article III and which is incorporated by reference, the Company hereby represents and warrants to each of Parent and Merger Sub as
follows: 
 3.1. Organization. The Company is a corporation duly organized, validly existing and in good standing under the laws of
the State of Delaware. The Company has all requisite corporate power and authority to own, lease and operate its properties and to carry on its business as currently conducted. The Company is duly qualified or licensed to do business and is in good
standing as a foreign corporation in all of the jurisdictions in which the conduct of its business or the ownership, leasing, holding or use of its properties makes such qualification necessary, except such other jurisdictions where the failure to
be so qualified or licensed or in good standing would not reasonably be expected to have a Company Material Adverse Effect. 
 3.2.
Authority. 
 (a) The Company has all requisite corporate power and authority to enter into this Agreement, the Certificate of
Merger, and any other agreements, certificates or documents contemplated hereby (collectively, the “Related Agreements”) to which it is or will be a party and to consummate the transactions contemplated hereby and thereby. The
Company Board has (i) determined that the Merger is fair to, and in the best interests of, the Company and its stockholders, (ii) approved this Agreement, the Related Agreements and the transactions contemplated hereby and thereby,
including the Merger and (iii) recommended that the Stockholders adopt and approve this Agreement, the Related Agreements and the transactions contemplated hereby and thereby, and approve the Merger. All action has been taken, or will be taken
prior to the Closing, that is 

  
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necessary to authorize this Agreement or to consummate the Merger and the other transactions contemplated by this Agreement and no other proceedings on the part of the Company are necessary to
authorize this Agreement or to consummate the Merger and the other transactions contemplated by this Agreement. The Company has delivered to Parent copies of the resolutions adopted by the Company Board certified by the Secretary of the Company. The
adoption of such resolutions by the Company Board and the written consent of the Required Stockholders approving this Agreement and the Merger are collectively referred to as the “Transaction Approvals.” The Transaction Approvals
constitute or will constitute as of Closing all necessary corporate and stockholder action on the part of the Company Board and the Stockholders for the authorization, execution and delivery of this Agreement and the Related Agreements by the
Company and the performance by the Company of the Merger and the other transactions contemplated hereby and thereby, and such Transaction Approvals have not been revoked, rescinded or amended. 

(b) This Agreement has been, and each of the Related Agreements to which the Company is a party will be at the Closing, duly executed and
delivered by the Company and, assuming the due authorization, execution and delivery by the other parties hereto and thereto (other than the Company), this Agreement constitutes, and in the case of the Related Agreements they will at Closing
constitute, valid and binding obligations of the Company, enforceable against the Company in accordance with their respective terms, except as such enforceability may be subject to applicable bankruptcy, reorganization, insolvency, moratorium and
similar Laws affecting the enforcement of creditors’ rights generally and by general principles of equity; provided, that the Certificate of Merger will not be effective until filed with the Secretary of State of the State of Delaware.

 (c) To the Company’s Knowledge, each Stockholder as of the Closing Date qualifies as an “accredited investor” as that term
is defined in Rule 501(a) of Regulation D under the Securities Act of 1933, as amended. 
 3.3. No Conflict. The execution and
delivery by the Company of this Agreement and the Related Agreements to which the Company is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not conflict with or result in any violation of or
default under (with or without notice or lapse of time, or both) or give rise to a right of termination, cancellation, modification or acceleration of any material obligation or loss of any material benefit under, or result in the imposition or
creation of any material Lien upon any of the Company’s properties or assets (tangible or intangible) under (i) any provision of the Company Charter or bylaws or (ii) any material agreement to which the Company is a party or by which
its properties or assets is bound or (iii) any material Law applicable to Company or any of its properties (whether tangible or intangible) or assets. 

3.4. Consents. 
 (a) No
consent, waiver, approval, order or authorization of, or registration, declaration or filing with, or notice to any court, administrative agency or commission or other federal, state, county, local or foreign governmental authority, instrumentality,
agency or commission (each, a “Governmental Entity”) is required by, or with respect to, the Company in connection with the execution and delivery of this Agreement and the Related Agreements to which the Company is a party or the

  
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consummation of the transactions contemplated hereby and thereby, except for the filing of the Certificate of Merger with the Secretary of State of the State of Delaware and notices required by
the DGCL. 
 (b) Section 3.4 of the Company Disclosure Schedule sets forth all notices to, and all necessary consents, waivers and
approvals of, parties to any material Company Contract to which the Company is a party or by which it or its properties are bound that are required thereunder in connection with the Merger, or for any such material Company Contract to remain in full
force and effect without limitation, modification or alteration (including payment of any additional amounts or consideration other than ongoing fees, royalties or payments which the Company would otherwise be required to pay pursuant to the terms
of such material agreement had the transactions contemplated by this Agreement not occurred) after the Effective Time so as to preserve all rights of, and benefits to, the Company under such material Company Contract from and after the Effective
Time. 
 3.5. Subsidiaries. Except for Liquid Genomics GmbH (the “German Subsidiary”), the Company does not have and
has never had any subsidiaries or affiliated companies, and does not otherwise own and has never otherwise owned any shares of capital stock or any interest in, or control, directly or indirectly, any other corporation, partnership, association,
joint venture or other business entity or have any ongoing obligation to purchase any shares of capital stock or make any investment or capital contribution with respect thereto; nor is the Company responsible in any way for any similar obligation
with respect to any other entity. The German Subsidiary has been duly incorporated as a German limited liability company (GmbH) and is validly registered as a GmbH in the trade register of the trade register court in Charlottenburg (Berlin) under
number HRB 168031B under the laws of the jurisdiction of its incorporation, has corporate power and authority to own, lease and operate its properties and to conduct its business as described in its Articles of Association (Gesellschaftsvertrag)
within the limits of the laws of the jurisdiction of its incorporation. The Company owns all of the outstanding shares of the capital stock of the German Subsidiary. 

3.6. Company Capital Structure. 

(a) The authorized capital stock of the Company consists of (i) 19,000,000 shares of Company Common Stock, of which 2,660,000 are issued and
outstanding and (ii) 16,000,000 shares of preferred stock, par value $0.0001 per share, all of which have been designated as Series A Preferred Stock and 10,002,091 of which are issued and outstanding immediately prior to giving effect to the
exercise of the Company Warrants on a net basis immediately prior to the Closing (the “Net Exercise”) and 12,932,631 of which are issued and outstanding after giving effect to the Net Exercise. The Company does not have any other
shares of capital stock authorized, issued or outstanding. The Company Capital Stock is held of record and beneficially by the Persons with the addresses and in the amounts and represented by the certificates set forth on Schedule 3.6(a). All
outstanding shares of Company Capital Stock (i) have been duly authorized and validly issued and are fully paid, non-assessable and not subject to preemptive rights or similar rights created by statute,
the Company Charter, the bylaws of the Company or any agreement to which the Company is a party, and (ii) have been offered, sold, issued and delivered by the Company in all material respects in compliance with all applicable Laws, including
federal and state securities laws. There are no declared or accrued but unpaid dividends with respect to any shares of Company Capital Stock. 

  
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 (b) (i) Options to purchase 470,000 shares of Company Common Stock have been granted and are
outstanding (each, a “Company Option”). An aggregate of 310,000 shares of Company Restricted Stock have been granted and are outstanding. All outstanding Company Options and Company Restricted Stock were issued pursuant to the
Company Incentive Plan and have been offered, issued and delivered by the Company in all material respects in compliance with all applicable Laws, including federal and state securities Laws. Schedule 3.6(b) sets forth for each outstanding
Company Option and grant of Company Restricted Stock, as applicable, the name of the holder thereof, the domicile address of such holder, an indication of whether such holder is an Employee of the Company, the date of grant or issuance, the number
of shares of Company Common Stock subject thereto, the exercise price of any such Company Option, the vesting schedule, including the extent vested to the date of this Agreement and whether and to what extent the exercisability will be accelerated
and become exercisable as a result of the transactions contemplated by this Agreement. None of the Company Options provide for acceleration of vesting (or lapse of a repurchase right) or other changes in the vesting provisions or other terms of such
agreement or understanding upon the occurrence of any event or combination of events. The Company has never adjusted or amended the exercise price of any Company Options previously awarded, whether through amendment, cancellation, replacement grant,
repricing, or any other means. 
 (ii) The Company has outstanding Company Warrants for the purchase of an aggregate of 2,930,540 shares of
Series A Preferred Stock immediately prior to giving effect to the Net Exercise and no outstanding Company Warrants immediately after giving effect to the Net Exercise. All Company Warrants have been offered, issued and delivered by the Company in
all material respects in compliance with all applicable Laws, including federal and state securities Laws. Schedule 3.6(b) sets forth for each outstanding Company Warrant, the name of the holder of such Company Warrant, the domicile address
of such holder, the number of shares of Series A Preferred Stock subject to such Company Warrant and the exercise price of such Company Warrant. No Company Warrant is subject to vesting as of the date of this Agreement. 

(iii) Except for the Company Options, Company Warrants and as set forth in Section 3.6(b) of the Company Disclosure
Schedule, there are no Company Stock Rights or agreements of any character, written or oral, obligating the Company to issue, deliver, sell, repurchase or redeem, or cause to be issued, delivered, sold, repurchased or redeemed, any Company Capital
Stock or other equity or ownership interest of the Company or obligating the Company to grant, extend, accelerate the vesting of, change the price of, otherwise amend or enter into any such Company Stock Right. 

(c) Section 3.6(c) of the Company Disclosure Schedule sets forth all (i) voting trusts, proxies, or other agreements or
understandings with respect to the voting stock of the Company to which the Company is a party, by which the Company is bound, or of which the Company has Knowledge, and (ii) agreements or understandings to which the Company is a party, by
which the Company is bound, or of which the Company has Knowledge relating to the registration, sale or transfer (including agreements relating to rights of first refusal, “co-sale” rights or
“drag-along” rights) of any Company Capital Stock. The holders of Company Capital Stock and Company Stock Rights have been or will be properly given, or shall have properly waived, any required notice prior to the Merger. 

  
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 3.7. Financial Statements. 

(a) The Company has previously delivered to Parent the following financial statements (collectively, the “Financial
Statements”): (i) the unaudited cash basis profit and loss statement as of and for the fiscal year ended December 31, 2016 (the “Last Balance Sheet Date”) and for each of the calendar quarters of 2015; and
(ii) the unaudited cash basis balance sheets as of the Last Balance Sheet Date and as of the last day of each of the calendar quarters of 2015. The copies of the Financial Statements that have been previously delivered to Parent are true,
accurate and complete copies thereof. 
 (b) The Financial Statements have been prepared in accordance with GAAP applied on a consistent
basis throughout the periods indicated, except that the unaudited Financial Statements may not contain all footnotes required by GAAP. The Financial Statements fairly present in all material respects the financial condition and operating results of
the Company as of the dates, and for the periods, indicated therein. The Company maintains and will continue to maintain a standard system of accounting established and administered in accordance with GAAP. 

(c) Except as set forth in the Financial Statements or in Section 3.7(c) of the Company Disclosure Schedule, the
Company has no Liabilities or obligations, contingent or otherwise, other than (i) Liabilities incurred in the ordinary course of business subsequent to the Last Balance Sheet Date; (ii) obligations under contracts and commitments incurred
in the ordinary course of business; and (iii) liabilities and obligations of a type or nature not required under GAAP to be reflected in the Financial Statements, which, in all such cases, individually and in the aggregate are not material.

 3.8. Absence of Certain Changes. Except as set forth in Section 3.8 of the Company Disclosure Schedule
or as specifically contemplated by this Agreement, since the Last Balance Sheet Date there has not been, occurred or arisen: 
 (a) any
change in the assets, liabilities, financial condition or operating results of the Company from that reflected in the Financial Statements, except changes in the ordinary course of business that have not caused, in the aggregate, a Company Material
Adverse Effect; 
 (b) any satisfaction or discharge of any Lien, claim, or encumbrance or payment of any obligation by the Company, except
in the ordinary course of business and the satisfaction or discharge of which would not have a Company Material Adverse Effect; 
 (c) any
material change to a material contract or agreement by which the Company or any of its assets is bound or subject; 
 (d) any mortgage,
pledge, transfer of a security interest in, or Lien, created by the Company, with respect to any of its material properties or assets, except Liens for Taxes not yet due or payable and liens that arise in the ordinary course of business and do not
materially impair the Company’s ownership or use of such property or assets; 
 (e) any loans or guarantees made by the Company to or
for the benefit of its Employees, officers or directors, or any members of their immediate families, other than travel advances and other advances made in the ordinary course of its business; 

  
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 (f) any declaration, setting aside or payment or other distribution in respect of any of the
Company Capital Stock, or any direct or indirect redemption, purchase, or other acquisition of any of such stock by the Company; 
 (g) any
sale, assignment or transfer of any Company Intellectual Property that could reasonably be expected to result in a Company Material Adverse Effect; or 

(h) to the Company’s Knowledge, any other event or condition of any character, other than events affecting the economy or the
Company’s industry generally, that could reasonably be expected to result in a Company Material Adverse Effect. 
 3.9.
Property. 
 (a) Neither the Company nor any of its subsidiaries owns any real property, nor has the Company or any of its
subsidiaries ever owned any real property. Section 3.9 of the Company Disclosure Schedule sets forth a list of all real property currently leased by the Company or any of its subsidiaries or otherwise used or occupied by
the Company or any of its subsidiaries for the operation of the Company’s or its subsidiaries’ businesses (the “Leased Real Property”), the name of the lessor, the date of the lease and each amendment thereto and, with
respect to any current lease, the aggregate annual rental payable under any such lease. All such current leases are in full force and effect, are valid and effective in accordance with their respective terms, and there is not, under any of such
leases, any existing default or event of default (or event which with notice or lapse of time, or both, would constitute a default). 
 (b)
The Company has provided Parent true, correct and complete copies of all leases, lease guaranties, subleases, agreements for the leasing, use or occupancy of, or otherwise granting a right in or relating to the Leased Real Property, including all
amendments, terminations and modifications thereof (the “Lease Agreements”); and there are no other Lease Agreements for real property affecting the real property or to which Company or any of its subsidiaries is bound, other than
those identified in Section 3.9 of the Company Disclosure Schedule. All such Lease Agreements are valid and enforceable and not in default, no rentals are past due, and no circumstance exists, which, with notice, the
passage of time or both, could constitute a default under any such Lease Agreement. Neither the Company nor any of its subsidiaries has received any notice of a default, alleged failure to perform, or any offset or counterclaim with respect to any
such Lease Agreement, which has not been fully remedied and withdrawn. The Closing will not affect the enforceability against any person of any such Lease Agreement or the rights of the Company or any of its subsidiaries or the Surviving Corporation
to the continued use and possession of the real property for the conduct of business as presently conducted. 
 (c) The Company and each of
its subsidiaries has good and valid title to, or, in the case of leased properties and assets, valid leasehold interests in, all of its tangible properties and assets, real, personal and mixed, used or held for use in its business, free and clear of
any Liens, except (i) as reflected in the Last Balance Sheet, (ii) Liens for Taxes not yet due and payable, and (iii) such imperfections of title and encumbrances, if any, which do not detract from the value or interfere with the
present use of the property subject thereto or affected thereby. 

  
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 3.10. Intellectual Property. 

(a) Except for Intellectual Property relating to commercial
off-the-shelf computer software, and agreements relating to proprietary information and inventions executed by employees and consultants of the Company that contain
obligations running in favor of the Company only, Section 3.10(a) of the Company Disclosure Schedule sets forth a complete and accurate list of (i) all Company Intellectual Property, all applications therefor, and all
written licenses assignments (excluding assignment of patent applications by inventors to the Company) and other agreements relating thereto to which the Company is a party, and (ii) all written agreements relating to technology, know-how and processes which the Company has licensed or authorized for use by others. 
 (b) To its
Knowledge, the Company possesses all material Intellectual Property required for the conduct of its business as currently conducted. To its Knowledge, the operation of the business of the Company as currently conducted does not interfere with,
conflict with, infringe upon, misappropriate or otherwise violate the patent rights of any third party, and no action or claim is pending or threatened alleging that the operation of such business interferes with, conflicts with, infringes upon,
misappropriates or otherwise violates the patent rights of any third party and, to the Knowledge of the Company, there is no basis therefor. 

(c) The Company is the sole owner of the entire right, title and interest in and to, or has a valid license or other legal right under,
Company Intellectual Property used in or necessary to the operation of its business as presently conducted, subject to the terms of the license agreements governing the Company Licensed Intellectual Property. No Stockholder or any other Person has
any rights to the Company Intellectual Property. 
 (d) Except for Intellectual Property relating to commercial off-the-shelf computer software and other standard products or equipment, and agreements relating to proprietary information and inventions executed by employees and
consultants of the Company that contain obligations running in favor of the Company only or otherwise as set forth in Section 3.10(d) of the Company Disclosure Schedule, the Company is not a party to any outstanding
options, licenses, or agreements of any kind relating to the Company Intellectual Property, nor is the Company bound by or a party to any options, licenses or agreements of any kind with respect to the patents, trademarks, service marks, trade
names, copyrights, trade secrets, licenses, information, proprietary rights and processes of any other person. 
 (e) The Company has no
present knowledge from which it could reasonably conclude that any Company Intellectual Property is invalid or unenforceable, the same has not been adjudged invalid or unenforceable in whole or in part. To the Company’s Knowledge, no action or
claim is pending or threatened alleging that any Company Intellectual Property is invalid or unenforceable in whole or in part. The Company Intellectual Property constitutes all of the Intellectual Property necessary for the operation of the
business of the Company as currently conducted. The Company has complied with all of its obligations of confidentiality in respect of the claimed trade secrets or proprietary information of others and knows of no violation of such obligations of
confidentiality as are owed to it. 

  
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 (f) No claims or actions have been asserted, are pending or threatened against the Company
(i) based upon or challenging or seeking to deny or restrict the ownership by or license rights of the Company of any of the Company Intellectual Property, (ii) alleging that any services provided by, processes used by, or products
manufactured or sold by the Company infringe or misappropriate any Intellectual Property right of any third party, or (iii) alleging that the Company Licensed Intellectual Property is being licensed or sublicensed in conflict with the terms of
any license or other agreement, and, to the Knowledge of the Company, there is no basis for such a claim. 
 (g) As of the date hereof, to
the Knowledge of the Company, no person is engaging in any activity that infringes or misappropriates the Company Intellectual Property. Except as set forth in Section 3.10(g) of the Company Disclosure Schedule, the Company
has not granted any license or other right to any third party with respect to the Company Intellectual Property. The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated by this Agreement by the
Company will not breach, violate or conflict with any instrument or agreement concerning the Company Intellectual Property, will not cause the forfeiture or termination or give rise to a right of forfeiture or termination of any of the Company Owned
Intellectual Property or materially impair the right of the Parent to license or dispose of, or to bring any action for the infringement of, any Company Intellectual Property. 

(h) The Company has delivered or made available to the Parent or its counsel correct and complete copies of all the licenses of the Company
Licensed Intellectual Property, other than licenses of commercial off-the-shelf computer software. With respect to each such license, except as set forth in
Section 3.10(h) of the Company Disclosure Schedule: (i) such license is valid and binding and in full force and effect and represents the entire agreement between the respective licensor and licensee with respect to
the subject matter of such license; (ii) such license will not cease to be valid and binding and in full force and effect on terms identical in all material respects to those currently in effect as a result of the consummation of the
transactions contemplated by this Agreement, nor will the consummation of the transactions contemplated by this Agreement constitute a material breach or default under such license or otherwise so as to give the licensor or any other person a right
to terminate such license; (iii) the Company has not (A) received any notice of termination or cancellation under such license, (B) received any notice of breach or default under such license, which breach has not been cured, or
(C) granted to any other third party any rights, adverse or otherwise, under such license that would constitute a material breach of such license; and (iv) neither the Company nor, to the Knowledge of the Company, any other party to such
license is in material breach or default thereof, and, to the Knowledge of the Company, no event has occurred that, with notice or lapse of time, would constitute such a material breach or default or permit termination, modification or acceleration
under such license. 
 (i) Except as set forth in Section 3.10(i) of the Company Disclosure Schedule, to the
Knowledge of the Company, none of its employees, officers, directors, agents or consultants is (i) subject to confidentiality restrictions in favor of any third person the breach of which could subject the Company to any material liability, or
(ii) obligated under any contract (including licenses, covenants or commitments of any nature) or other agreement, or subject to any judgment, decree or order of any court or administrative agency, that would interfere with their duties to the
Company, as applicable, or that would conflict with the Company’s business as presently conducted. 

  
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 (j) The Company has taken reasonable steps in accordance with normal industry practice to
maintain the confidentiality of its trade secrets and other Company Intellectual Property. To the Knowledge of the Company, (i) there has been no misappropriation of any material trade secrets or other material confidential Company Owned
Intellectual Property by any person; (ii) no employee, independent contractor or agent of the Company has misappropriated any trade secrets of any other person in the course of such performance as an employee, independent contractor or agent;
and (iii) no employee, independent contractor or agent of the Company is in material default or breach of any term of any employment agreement, non-disclosure agreement, assignment of invention agreement
or similar agreement or contract relating to the protection, ownership, development, use or transfer of Company Intellectual Property. 

(k) Neither the execution nor delivery of this Agreement, nor the carrying on of the Company’s business by the employees of and
consultants to the Company, nor the conduct of the Company’s business as presently conducted or as proposed to be conducted, will, to the Knowledge of the Company, conflict with or result in a breach of the terms, conditions or provisions of,
or constitute a default under, any contract, covenant or instrument under which any of such employees is now obligated. Except to the extent already assigned to the Company, the Company does not believe that it is or will be necessary to utilize any
inventions or proprietary information of any of its employees (or people it currently intends to hire) made prior to their employment by the Company. 

3.11. Agreements; Actions. 

(a) There are no agreements, understandings, instruments, contracts or proposed transactions to which the Company is a party or by which it is
bound (each a “Company Contract”) that involve (i) obligations (contingent or otherwise) of, or payments to, the Company in excess of $5,000, (ii) the license of any patent, copyright, trademark, trade secret or other
proprietary right to or from the Company, (iii) the grant of rights to manufacture, produce, assemble, license, market, or sell its products to any other Person that limit the Company’s exclusive right to develop, manufacture, assemble,
distribute, market or sell its products, or (iv) indemnification by the Company with respect to infringements of proprietary rights. 

(b) Since the Last Balance Sheet Date, the Company has not (i) declared or paid any dividends, or authorized or made any distribution
upon or with respect to any class or series of its capital stock, (ii) incurred any indebtedness for money borrowed individually in excess of $10,000 or in excess of $20,000 in the aggregate, in each case which are outstanding as of the date
hereof or will be outstanding as of the Closing (other than indebtedness to Parent or an Affiliate of Parent), (iii) made any loans or advances to any Person, other than ordinary advances for travel expenses, or (iv) sold, exchanged or
otherwise disposed of any of its assets or rights, other than the sale of its inventory in the ordinary course of business. For the purposes of Section 3.11(a) and this Section 3.11(b), all
indebtedness, Liabilities, agreements, understandings, instruments, contracts and proposed transactions involving the same Person (including Persons the Company has reason to believe are affiliated with each other) shall be aggregated for the
purpose of meeting the individual minimum dollar amounts of such Sections. 
 (c) The Company is not a guarantor or indemnitor of any
indebtedness of any other Person. 

  
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 3.12. Interested Party Transactions. There are no agreements, understandings or
proposed transactions between the Company and any of its officers, directors, consultants or Key Employee, or any Affiliate thereof. 

3.13. Compliance with Other Instruments. The Company is not in violation or default (i) of any provisions of the Company Charter
or bylaws, (ii) of any instrument, judgment, decree or order, (iii) under any note, indenture or mortgage, (iv) under any lease, agreement, Company Contract or purchase order to which it is a party or by which it is bound that is
required to be listed on the Company Disclosure Schedule, or (v) of any provision of federal or state statute, rule or regulation applicable to the Company, the violation of which would have a Company Material Adverse Effect. 

3.14. Litigation. There is no Proceeding pending or, to the Company’s Knowledge, currently threatened in writing (i) against
the Company or any officer, director or Key Employee of the Company arising out of their employment or board relationship with the Company; (ii) to the Company’s Knowledge, that questions the validity of this Agreement and the Related
Agreements or the right of the Company to enter into them, or to consummate the transactions contemplated by this Agreement and the Related Agreements; or (iii) to the Company’s Knowledge, that would reasonably be expected to have, either
individually or in the aggregate, a Company Material Adverse Effect. Neither the Company nor, to the Company’s Knowledge, any of its officers, directors or Key Employee is a party or is named as subject to the provisions of any order, writ,
injunction, judgment or decree of any court or government agency or instrumentality (in the case of officers, directors or Key Employee, such as would affect the Company). There is no action, suit, proceeding or investigation by the Company pending
or which the Company intends to initiate. The foregoing includes, without limitation, actions, suits, proceedings or investigations pending or threatened in writing (or any basis therefor to Knowledge of the Company) involving the prior employment
of any of the Company’s Employees, their services provided in connection with the Company’s business, any information or techniques allegedly proprietary to any of their former employers or their obligations under any agreements with prior
employers. 
 3.15. Employment Matters. 

(a) To the Knowledge of the Company, none of its Employees is obligated under any contract (including licenses, covenants or commitments of
any nature) or other agreement, or subject to any judgment, decree or order of any court or administrative agency, that would materially interfere with such Employee’s ability to promote the interest of the Company or that would conflict with
the Company’s business. 
 (b) Each Employment Agreement is set forth on Section 3.15(b) of the Company
Disclosure Schedule and a copy of each Employment Agreement and any amendment thereto has been provided to Parent. 
 (c) The Company has
complied in all material respects with all applicable state and federal equal employment opportunity laws and with other laws related to employment, including those related to wages, hours, worker classification and collective bargaining. The
Company has withheld and paid to the appropriate Governmental Entity or is holding for payment not yet due to such Governmental Entity all amounts required to be withheld from Employees and is not liable for any arrears of wages, Taxes, penalties or
other sums for failure to comply with any of the foregoing. 

  
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 (d) Each current and former employee, consultant and officer of the Company has executed an
agreement with the Company regarding confidentiality and proprietary information substantially in the form or forms delivered to the Purchasers (the “Confidential Information Agreements”). No current or former employee, consultant
or officer of the Company has excluded works or inventions from his or her assignment of inventions pursuant to such person’s Confidential Information Agreement. To the Knowledge of the Company, none of its current or former employees,
consultants or officers is in violation of any Confidential Information Agreement. 
 (e) To the Knowledge of the Company, the Key Employee
does not intend to terminate her employment with the Company or is otherwise likely to become unavailable to continue as the Key Employee, nor does the Company have a present intention to terminate the employment of the Key Employee. Except as
required by law, upon termination of the employment of the Key Employee, no severance or other payments will become due. The Company has no policy, practice, plan or program of paying severance pay or any form of severance compensation in connection
with the termination of employment services. 
 (f) The Company has not made any representations regarding equity incentives to any officer,
employee, director or consultant that are inconsistent with the share amounts and terms set forth in the minutes of meetings of the Company Board. 

(g) Each former key employee whose employment was terminated by the Company has entered into an agreement with the Company providing for the
full release of any claims against the Company or any related party arising out of such employment. 
 3.16. Employee Benefit Plans.
Section 3.16 of the Company Disclosure Schedule sets forth each Company Employee Plan maintained, established or sponsored by the Company, or which the Company participates in or contributes to, which is subject to ERISA.
The Company has made all required contributions and has no liability to any such employee benefit plan, other than liability for health plan continuation coverage described in Part 6 of Title I(B) of ERISA, and has complied in all material respects
with all applicable laws for any such employee benefit plan 
 3.17. Tax Matters. There are no federal, state, county, local or
foreign Taxes due and payable by the Company that have not been timely paid. There are no accrued and unpaid federal, state, country, local or foreign Taxes of the Company that are due, whether or not assessed or disputed. There have been no
examinations or audits of any Tax Returns or reports by any applicable federal, state, local or foreign Governmental Entity. The Company has duly and timely filed all federal, state, county, local and foreign Tax Returns required to have been filed
by it and there are in effect no waivers of applicable statutes of limitations with respect to taxes for any year. 
 3.18. Books and
Records. The minute books and other similar records of the Company contain complete and accurate records of all actions taken at any meetings of the Company’s stockholders, board of directors or any committee thereof and of all written
consents executed in lieu of the holding of any such meeting. The books and records of the Company accurately reflect in all material respects the assets, liabilities, business, financial condition and results of operations of the Company and have
been maintained in accordance with good business and bookkeeping practices. 

  
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 3.19. Brokers’ and Finders’ Fees. The Company
has not incurred, or will incur, directly or indirectly, any liability for brokerage or finders’ fees or agents’ commissions or any similar charges in connection with this Agreement, the Merger or any other transaction contemplated hereby
or by the Related Agreements. 
 3.20. Representations Complete. The Company has made available to Parent all the information
reasonably available to the Company that Parent has requested in deciding whether to enter into this Agreement and the Related Agreements and to consummate the transactions contemplated hereby and thereby. None of the representations or warranties
made by the Company in this Agreement or any Related Agreement, nor any statement made in the Company Disclosure Schedule or any certificate furnished by the Company pursuant to this Agreement, when taken together, contains any untrue statement of a
material fact, or omits to state any material fact necessary in order to make the statements contained herein or therein, in the light of the circumstances under which they were made, not misleading. 

ARTICLE IV 
 REPRESENTATIONS AND
WARRANTIES OF PARENT AND MERGER SUB 
 Parent and Merger Sub jointly and severally represent and warrant to the Company and the Stockholder
Representative, in her capacity as representative of the Stockholders, as follows: 
 4.1. Organization. Each of Parent and Merger
Sub is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. Each of Parent and Merger Sub has all requisite corporate power and authority to own, lease and operate its properties and to carry
on its business as currently conducted. Each of Parent and Merger Sub is duly qualified or licensed to do business and is in good standing as a foreign corporation in all of the jurisdictions in which the conduct of its business or the ownership,
leasing, holding or use of its properties makes such qualification necessary, except such other jurisdictions where the failure to be so qualified or licensed or in good standing would not reasonably be expected to have a material adverse effect on
the business, assets (including intangible assets), liabilities, financial condition, property or results of operations of Parent. 
 4.2.
Authority. 
 (a) Each of Parent and Merger Sub has all requisite corporate power and authority to enter into this Agreement, the
Certificate of Merger, and any Related Agreements to which it is or will be a party and to consummate the transactions contemplated hereby and thereby. All action has been taken, or will be taken prior to the Closing, that is necessary to authorize
this Agreement or to consummate the Merger and the other transactions contemplated by this Agreement and no other proceedings on the part of Parent or Merger Sub are necessary to authorize this Agreement or to consummate the Merger and the other
transactions contemplated by this Agreement. 
 (b) This Agreement has been, and each of the Related Agreements to which Parent or Merger
Sub is a party will be at the Closing, duly executed and delivered by Parent and Merger Sub and, assuming the due authorization, execution and delivery by the other parties hereto and thereto (other than Parent and Merger Sub), this Agreement
constitutes, and in the case of the Related Agreements they will at Closing 

  
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constitute, valid and binding obligations of Parent and Merger Sub, enforceable against Parent and Merger Sub in accordance with their respective terms, except as such enforceability may be
subject to applicable bankruptcy, reorganization, insolvency, moratorium and similar Laws affecting the enforcement of creditors’ rights generally and by general principles of equity; provided, that the Certificate of Merger will not be
effective until filed with the Secretary of State of the State of Delaware. 
 4.3. No Conflict. The execution and delivery by Parent
and Merger Sub of this Agreement and the Related Agreements to which Parent or Merger Sub is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not conflict with or result in any violation of or
default under (with or without notice or lapse of time, or both) or give rise to a right of termination, cancellation, modification or acceleration of any material obligation or loss of any material benefit under, or result in the imposition or
creation of any material Lien upon any of Parent’s or Merger Sub’s properties or assets (tangible or intangible) under (i) any provision of the certificate of incorporation or bylaws of Parent or Merger Sub or (ii) any material
agreement to which Parent or Merger Sub is a party or by which its properties or assets is bound or (iii) any material Law applicable to Parent or Merger Sub or any of its properties (whether tangible or intangible) or assets. 

4.4. Consents. No consent, waiver, approval, order or authorization of, or registration, declaration or filing with, or notice to any
Governmental Entity is required by, or with respect to, Parent or Merger Sub in connection with the execution and delivery of this Agreement and the Related Agreements to which Parent or Merger Sub is a party or the consummation of the transactions
contemplated hereby and thereby, except for the filing of the Certificate of Merger with the Secretary of State of the State of Delaware, notices required by the DGCL and filings required under applicable securities Laws. 

4.5. Capitalization Matters. 

(a) Immediately prior to the Closing, (i) the authorized capitalization of Parent consists solely of 1,000,000,000 shares of Parent
Common Stock, 293,659,022 of which were issued and outstanding as of the date hereof; and (ii) Parent has reserved 24,000,000 shares of Parent Common Stock for purchase upon exercise of options to be granted under the Parent’s 2015 Stock
Incentive Plan and 2,587,095 shares of which are subject to outstanding option grants. The Parent Common Stock to be issued to the Stockholders hereunder as part of the Merger Consideration will be validly issued, fully paid and nonassessable and
free of restrictions on transfer other than restrictions on transfer under applicable state and federal securities laws and Liens created by or imposed by the Stockholders. 

(b) In Parent’s most recently completed equity financing to investors who were not Affiliates of Parent, the price paid per share of
Parent Common Stock by such investors in such financing was $10.00 per share. 
 (c) As of the date hereof, except as set forth in
Schedule 4.5(c), there are no (i) voting trusts, proxies, or other agreements or understandings with respect to the voting stock of Parent to which Parent is a party, by which Parent is bound, or of which Parent has knowledge, or
(ii) agreements or understandings to which Parent is a party, by which Parent is bound, or of which Parent has knowledge relating to the registration, sale 

  
 -24- 

 
or transfer (including agreements relating to rights of first refusal, “co-sale” rights or “drag-along” rights) of any Parent Common
Stock. 
 4.6. Litigation. There is no Proceeding pending or to Parent’s knowledge, currently threatened in writing (i) to
Parent’s knowledge, that questions the validity of this Agreement and the Related Agreements or the right of Parent or Merger Sub to enter into them, or to consummate the transactions contemplated by this Agreement and the Related Agreements;
or (ii) to Parent’s knowledge, that would reasonably be expected to have, either individually or in the aggregate, a material adverse effect on the business, assets (including intangible assets), liabilities, financial condition, property
or results of operations of Parent. 
 4.7. Financial Statements. Parent has previously delivered to the Company its preliminary
unaudited pre-tax consolidated balance sheet as of December 31, 2016 and its preliminary unaudited pre-tax consolidated income statement for the twelve months ended
December 31, 2016 (the “Parent Financial Statements”). The Parent Financial Statements have been prepared in accordance with GAAP in all material respects subject to the exceptions set forth on Schedule 4.7.

ARTICLE V 
 CERTAIN COVENANTS 

5.1. Company Stockholder Approval. 

(a) Promptly following the execution of this Agreement, the Company shall submit this Agreement, and the transactions contemplated hereby to
its Stockholders who have not provided their approval as of the date hereof for approval and adoption as provided by the DGCL and the Company Charter and bylaws. The Company Board has approved this Agreement and declared its advisability, and
unanimously recommended that the Stockholders vote in favor of and adopt and approve this Agreement. The Company shall use its commercial best efforts to solicit and obtain the written consent of such stockholders to approve and adopt the Agreement
and approve the Merger and to enable the Closing to occur as promptly as practicable. 
 (b) In connection with such Stockholder approval,
the Company shall circulate the information statement in substantially the form attached hereto as Exhibit A (the “Information Statement”) for purposes of soliciting such written consent of the Stockholders, which shall include a
statement to the effect that the Company Board has unanimously recommended that the Stockholders vote in favor of and adopt and approve this Agreement. Anything to the contrary contained herein notwithstanding, the Company shall not include in the
Information Statement any information with respect to Parent or its Affiliates or associates, the form and content of which information shall not have been approved by Parent prior to such inclusion. The Information Statement and the Stockholder
Resolutions approving this Agreement and the Merger shall specify that adoption of this Agreement shall constitute approval by the Stockholders of the Company of: (i) the provisions of Article VII hereof and (ii) in favor of the
appointment of the Stockholder Representative under this Agreement. 
 (c) If the Company is obligated to make any payments, or is a party
to any agreement that under certain circumstances could obligate it to make any payments, that will not be deductible under Section 280G of the Code if the stockholder approval 

  
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requirements of Section 280G(b)(5)(B) of the Code are not satisfied, then the Company shall use its commercially reasonable efforts to obtain such stockholder approval as promptly as is
practicable after the date hereof and in any event prior to the Closing Date. 
 5.2. Conduct of Business of the Company. During the
period from the date of this Agreement and continuing until the earlier of the termination of this Agreement and the Effective Time, the Company will (except to the extent that Parent shall otherwise consent in writing) carry on its business in the
usual and ordinary course in substantially the same manner as heretofore conducted or as directed Parent, pay its debts and Taxes in accordance with past practice, pay or perform other obligations in accordance with past practice and use its
commercially reasonable efforts consistent with past practice and policies to preserve intact its present business organization, keep available the services of its present officers and key employees and preserve its relationships with customers,
suppliers, distributors, licensors, licensees, and others having business dealings with it. The Company shall promptly notify Parent of any materially negative event involving or adversely affecting the Company or its business; provided that
this sentence shall not impose any obligation of the Company to notify Parent of general economic conditions or changes in Law to the extent that they do not have a disproportionate adverse effect on the Company. Without limiting the foregoing and
except as expressly contemplated by this Agreement, the Company shall not, without the prior written consent of Parent, do any of the following: 

(a) make any payments or enter into any commitment or transaction outside of the ordinary course of business consistent with past practices or
waive or release any right or claim in excess of $10,000 in any individual case; 
 (b) amend or otherwise change the Company Charter or its
bylaws; 
 (c) declare, set aside, make or pay any dividend or other distribution, payable in cash, stock, property or otherwise, with
respect to any Company Capital Stock; 
 (d) issue, grant, deliver or sell, or authorize or propose the issuance, grant, delivery or sale
of, or purchase or propose the purchase of, any Company Capital Stock or Company Stock Rights except for the issuance of Company Capital Stock upon exercise or conversion of presently outstanding Company Stock Rights; provided, that
(i) the Company timely pays in cash all Taxes required to be withheld and paid in connection with such exercise or conversion, and (ii) the amount of such Taxes is contributed to the Company in cash by the Person exercising or converting
such Company Stock Right; 
 (e) acquire or agree to acquire by merging or consolidating with, or by purchasing any assets or equity
securities of, or by any other manner, any business or any Person or division thereof, or otherwise acquire or agree to acquire outside of the ordinary course of business any assets in any amount, or in the ordinary course of business in an amount
in excess of $10,000 in the case of a single transaction or in excess of $20,000 in the aggregate; 
 (f) Sell, transfer, lease, license,
loan, mortgage, encumber or otherwise dispose of any of its properties or assets except in the ordinary course of business consistent with past practice; 

  
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 (g) hire or engage any employees or consultants, or encourage any Employees or consultants
to resign from the Company, or promote any Employees or change the employment status or titles of any of the Employees, except for the hiring or promotion of employees or engagements of consultants in the ordinary course of business at compensation
rates comparable to other Employees at similar levels; 
 (h) increase, or agree to increase, the compensation payable, or to become
payable, to its officers or Employees, or grant any severance or termination pay to, or enter into any employment or severance agreement with, any of its directors, officers or other Employees, or establish, adopt, enter into or amend any collective
bargaining, bonus, profit sharing, thrift, compensation, stock option, restricted stock, pension, retirement, deferred compensation, employment, termination, severance or other plan, agreement, trust, fund, policy or arrangement for the benefit of
any director, officer or employee; 
 (i) incur any indebtedness for borrowed money or issue any debt securities or assume, guarantee or
endorse, or otherwise as an accommodation become responsible for, the obligations of any Person, or make any loans or advances; 
 (j) waive
or release any material right or claim; 
 (k) amend or terminate any Company Contract; 

(l) enter into any contract or agreement material to the business, results of operations or financial condition of the Company; 

(m) fail to maintain its equipment and other assets in good working condition and repair according to the standards it has maintained up to
the date of this Agreement, subject only to ordinary wear and tear; 
 (n) take any action that would reasonably be expected to cause a
breach of or to have been a breach of any of the provisions of Section 3.8 had such action occurred after the Last Balance Sheet Date and prior to the date of this Agreement (without regard for disclosures on the Company
Disclosure Schedule); or 
 (o) take, or agree in writing or otherwise to take, any of the actions described in
Sections 5.2(a) through (n) above, or any other action that would prevent the Company from performing or cause the Company not to perform its obligations hereunder. 

5.3. Access to Information. Subject to applicable Law, the Company shall provide Parent and its accountants, legal counsel, and other
representatives complete and prompt access during normal business hours during the period prior to the Effective Time upon advanced written notice to (a) all of the properties, facilities, books, agreements, records, customers and Employees of
the Company and (b) all other information concerning the business, finances, properties, products, services, technology and personnel of the Company as Parent may reasonably request. The Company agrees to provide Parent and its accountants,
legal counsel, and other representatives copies of internal financial statements promptly upon request. No information or knowledge obtained in any investigation pursuant to this Section 5.3 or otherwise shall affect or be
deemed to modify or qualify any representation or warranty of the Company or the conditions to the obligations of the parties to consummate the Merger. 

  
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 5.4. Public Disclosure. Except as contemplated by this Agreement or as otherwise
required by Law (including applicable securities Laws) or by regulatory authority, no disclosure (whether or not in response to an inquiry) of the subject matter of this Agreement shall be made prior to the Effective Time by any party hereto
(including any third party representatives of Parent or Company) (other than disclosures to Stockholders in connection with the approval of this Agreement) unless approved by Parent and the Company prior to release; provided that such
approval shall not be unreasonably withheld, conditioned or delayed. 
 5.5. Consents. 

(a) The Company shall promptly apply for or otherwise seek and use its commercially reasonable efforts to promptly obtain all consents and
approvals required to be obtained by it in connection with the Merger, including all consents, waivers, or approvals under any of the agreements to which the Company is a party or by which they or their properties or assets are bound in order to
preserve the benefits thereunder for the Surviving Corporation and otherwise in connection with the Merger. 
 (b) The Company will use its
reasonable best efforts to (i) ensure that this Agreement, the Merger and the other transactions contemplated hereby and thereby are approved by the Closing Stockholder Consent and (ii) deliver to Parent evidence thereof reasonably
satisfactory to Parent. 
 5.6. Conditions to the Merger; Further Assurances. Each of the parties to this Agreement shall use its
commercially reasonable efforts to: (a) effectuate the transactions contemplated hereby and to fulfill and cause to be fulfilled the conditions to closing under this Agreement; (b) comply promptly with all legal requirements which may be
imposed on such party with respect to the Merger and will promptly cooperate with and furnish information to any other party hereto in connection with any such requirements imposed upon such other party in connection with the Merger; (c) obtain
and make (and will cooperate with the other parties in obtaining or making) any consent, authorization, order or approval of, or any registration, declaration, or filing with, or an exemption by, any Governmental Entity, or other third party,
required to be obtained or made by such party or its subsidiaries in connection with the Merger or the taking of any action contemplated thereby or by this Agreement; and (d) at the request of another party hereto, execute and deliver such
other instruments and do and perform such other acts and things as may be reasonably necessary or desirable for effecting completely the consummation of the Merger and the other transactions contemplated by this Agreement and the Related Agreements.

 5.7. Notification of Certain Matters. The Company shall give prompt written notice to Parent, and Parent shall give prompt written
notice to the Company, of: (i) the occurrence or non-occurrence of any event which is likely to cause any representation or warranty of the Company, on the one hand, or Parent or Merger Sub, on the other
hand, contained in this Agreement to be untrue or inaccurate in any material respect at or prior to the Effective Time; (ii) any failure of the Company or Parent, as applicable, to comply with or satisfy in any material respect any covenant,
condition or agreement to be complied with or satisfied by it hereunder; and (iii) any event, condition, fact or circumstance that would reasonably be expected to make the timely satisfaction of any of the conditions set forth in Article
VI incapable of satisfaction; provided, that the delivery of any notice 

  
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pursuant to this Section 5.7 shall not limit or otherwise affect any remedies available to the party receiving such notice. 

5.8. No Solicitation. 

(a) Until the earlier of the Effective Time and the date of termination of this Agreement pursuant to Section 8.1,
neither the Company nor any of its officers, directors, Employees, stockholders, Affiliates, financial advisors or representatives (collectively, the “Representatives”) shall, directly or indirectly, take any of the following
actions with any Person other than Parent and its designees: (i) solicit, initiate, entertain or agree to any proposals or offers from any Person relating to (A) any merger, share exchange, business combination, reorganization,
consolidation or similar transaction involving the Company, (B) the acquisition of beneficial ownership of any equity interest in the Company, whether by issuance by the Company or by purchase (through a tender offer, exchange offer, negotiated
purchase or otherwise) from the stockholders of the Company or otherwise other than upon the exercise of Company Stock Rights outstanding as of the date of this Agreement, (C) the license or transfer of all or a material portion of the assets
of the Company or (D) any transaction that may be inconsistent with or that may have an adverse effect upon the Merger (any of the transactions described in clauses (A) through (D), a “Third-Party Acquisition”); or
(ii) participate in any discussions or negotiations regarding, or furnish to any Person any information with respect to, or otherwise cooperate with, facilitate or encourage any effort or attempt by any Person to do or seek, a Third-Party
Acquisition. 
 (b) If the Company or any Representative receives an unsolicited inquiry, proposal or offer relating to a Third-Party
Acquisition from any Person, the Company will (i) promptly notify Parent of the same and the details thereof (including the identity of the Person making same) and the Company shall be permitted to provide a response without breaching this
Section 5.8; provided that the response is limited to informing the initiator of such inquiry, proposal or offer that the Company is unable to respond further at this time, (ii) provide to Parent a copy of any
written inquiry, proposal or offer and all correspondence related thereto, and (iii) keep Parent informed of the status thereof. 
 (c)
The parties hereto agree that irreparable damage would occur in the event that the provisions of this Section 5.8 were not performed in accordance with their specific terms or were otherwise breached. It is accordingly
agreed by the parties that Parent shall be entitled to an immediate injunction or injunctions, without the necessity of proving the inadequacy of money damages as a remedy and without the necessity of posting any bond or other security, to prevent
breaches of the provisions of this Section 5.8 and to enforce specifically the terms and provisions hereof in any court of the United States or any state having jurisdiction, this being in addition to any other remedy to
which Parent may be entitled at law or in equity. Without limiting the foregoing, it is understood that any violation of the restrictions set forth above by any officer, director, Employee, agent, advisor, representative or Affiliate of the Company
shall be deemed to be a breach of this Agreement by the Company. 
 5.9. Confidentiality. (a) Each party hereto agrees that, for
a period of five years from and after Closing, it will not, and will use reasonable efforts to ensure that its Affiliates will not, through any action or inaction, use (except as contemplated by this Agreement), or disclose to any other Person, any
Confidential Information relating to the 

  
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other party (it being understood that following Closing this Section 5.9 shall apply to the use or disclosure of the Company’s Confidential Information by the
Stockholders and shall not apply with respect to the use or disclosure of the Confidential Information of the Company by Parent or the Surviving Corporation); provided, however, that the foregoing prohibitions shall not apply to (i) disclosures
that are required by any Law or by a Governmental Entity; (ii) information that is ascertainable or obtained from public or published information or is otherwise publicly known through no wrongful act of the using or disclosing party;
(iii) information received from a Person not known after reasonably inquiry to the using or disclosing party to be under an obligation to keep such information confidential; (iv) information independently developed by the using or
disclosing party without use of the other party’s information; or (v) information that was rightfully known by the disclosing party before receipt from the other party. Notwithstanding anything herein to the contrary, each party to this
Agreement may (without prior notification to, or approval or consent by, any other party) use and disclose to taxing authorities and/or to such party’s representatives (including outside counsel, auditors and advisors) any confidential or non-public information that is required to be used or disclosed in connection with such party’s financial statements, tax filings, reports, claims, audits, or litigation. 

(b) In the event a party is required to disclose Confidential Information of another party (in such event, such party is a
“Nondisclosing Party,” and the party required to disclose is the “Disclosing Party”) pursuant to any legal requirement, and would otherwise be prohibited from doing so under this
Section 5.9, the Disclosing Party shall: (i) promptly notify the Nondisclosing Party of the existence, terms and circumstances surrounding such requirement; (ii) consult with the Nondisclosing Party on the
advisability of taking legally available steps to resist or narrow such request; and (iii) if disclosure of such Confidential Information is required, furnish only that portion of the Confidential Information which the Disclosing Party is
legally compelled to disclose and advise the Nondisclosing Party reasonably in advance of such disclosure so that the Nondisclosing Party may seek an appropriate protective order or other reliable assurance that confidential treatment will be
accorded such Confidential Information. The Disclosing Party shall not oppose actions by the Nondisclosing Party to obtain an appropriate protective order or other reliable assurance that confidential treatment will be accorded such Confidential
Information. 
 5.10. Resignation of Officers and Directors. The Company shall obtain the resignations of all officers and directors
of the Company as Parent designates in writing, effective as of the Effective Time. 
 5.11. Payment of Company Obligations. As of
the Closing or as promptly as practicable thereafter (and, in any event, no later than five (5) Business Days after the Effective Time or as of the date otherwise set forth in Schedule 5.11), Parent or the Surviving Corporation shall
make payment of the Transaction Expenses of the Company and all outstanding liabilities of the Company set forth on Schedule 5.11. 

ARTICLE VI 
 CONDITIONS TO THE
MERGER 
 6.1. Conditions to the Obligations of the Company. The obligations of the Company to consummate the Merger and the
transactions contemplated by this Agreement shall be subject to the satisfaction at or prior to the Closing of each of the following conditions, any of which may be waived, in writing, exclusively by the Company: 

  
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 (a) Representations and Warranties. The representations and warranties of Parent and
Merger Sub contained in this Agreement shall have been true and correct (in the case of representations and warranties qualified as to materiality) or true and correct in all material respects (in the case of other representations and warranties) on
and as of the date of this Agreement and shall be so true and correct on and as of the Closing Date with the same force and effect as if made on and as of the Closing Date, except for (i) those representations and warranties that address
matters only as of a particular date (which shall remain so true and correct as of such date), and (ii) those failures to be so true and correct as would not reasonably be expected to have, individually or in the aggregate, a material adverse
effect on the ability of Parent and Merger Sub to consummate the Merger. 
 (b) Agreements and Covenants. Parent and Merger Sub shall
have performed or complied in all material respects with its covenants and obligations of this Agreement required to be performed or complied with by them on or prior to the Closing Date. 

(c) No Injunctions or Restraints; Illegality. No temporary restraining order, preliminary or permanent injunction or other order issued
by any court of competent jurisdiction or other legal or regulatory restraint or prohibition preventing the consummation of the Merger shall be in effect, and there shall be no pending action, proceeding or other application before any Governmental
Entity seeking any such order, restraint or prohibition. 
 (d) Other Documents. The Company shall have received such customary
documents from Parent and Merger Sub as the Company may reasonably request in good faith for the purpose of facilitating the consummation of the Merger and the other transactions contemplated by this Agreement and the Related Agreements. 

6.2. Conditions to the Obligations of Parent and Merger Sub. The obligations of Parent and Merger Sub to consummate the Merger and the
transactions contemplated by this Agreement shall be subject to the satisfaction at or prior to the Closing of each of the following conditions, any of which may be waived, in writing, exclusively by Parent: 

(a) Representations and Warranties. The representations and warranties of the Company contained in this Agreement shall have been true
and correct (in the case of representations and warranties qualified as to materiality) or true and correct in all material respects (in the case of other representations and warranties) on and as of the date of this Agreement and shall be so true
and correct on and as of the Closing Date with the same force and effect as if made on and as of the Closing Date, except for those representations and warranties that address matters only as of a particular date (which shall remain so true and
correct as of such date). 
 (b) Agreements and Covenants. The Company shall have performed or complied in all material respects with
its covenants and obligations of this Agreement required to be performed or complied with by it on or prior to the Closing Date. 
 (c)
No Material Adverse Effect. There shall not have occurred any events, occurrences, changes, effects or conditions of any character that, individually or in the aggregate, have had or would reasonably be expected to have a Company Material
Adverse Effect. 

  
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 (d) Stockholder Approval. The Transaction Approvals shall have been obtained and
shall be in full force and effect. Approval of this Agreement, the Merger and the transactions contemplated hereby and thereby shall have been obtained by (i) at least 99.48% of the issued and outstanding shares of Company Capital Stock, voting
together as a single class on an as-converted basis, and (ii) at least 99.35% of the issued and outstanding shares of Series A Preferred Stock (collectively, items (i) and (ii), the “Closing
Stockholder Consent”). 
 (e) Closing Certificate. The Company shall have executed and delivered to Parent a certificate of
the Company, executed by the Chief Executive Officer of the Company, that each of the conditions set forth in Sections 6.2(a)-(d) has been satisfied in all respects. 

(f) Secretary’s Certificate. The Company shall have delivered to Parent a certificate of the Company executed by the Secretary of
the Company, dated as of the Closing Date, certifying: (i) the Transaction Approvals, (ii) the Company Charter and bylaws, and (iii) the name, title, incumbency and signatures of the officers authorized to execute this Agreement and
the Related Agreements to which the Company is a party. 
 (g) Third-Party Consents. Parent shall have been furnished with evidence
reasonably satisfactory to it that the Company has obtained the consents, approvals and waivers set forth on Section 3.4 of the Company Disclosure Schedule. 

(h) Terminations; Notices. Parent shall have been furnished evidence reasonably satisfactory to it that (x) all Company Stock
Rights have been exercised or terminated at or prior to the Effective Time, and that there are no Company Stock Rights outstanding as of the Effective Time, and (y) all required notifications of the Merger and the other transactions
contemplated hereby to the holders of Company Common Stock and Company Stock Rights have been properly delivered. 
 (i)
Resignations. Parent shall have received resignation letters executed and delivered by the directors and officers of the Company as have been identified by Parent prior to the Closing Date. 

(j) Legal Action. There shall not be any threatened or pending action, proceeding or other application before any court or Governmental
Entity brought by any Person or Governmental Entity: (i) against the Company seeking material damages or other material relief, (ii) challenging or seeking to restrain or prohibit the consummation of the Merger or the other transactions
contemplated by this Agreement, or seeking to obtain any material damages from Parent, Merger Sub or the Company as a result of the Merger or such other transactions or (iii) seeking to prohibit or impose any limitations on Parent’s
ownership or operation of all or any portion of the Company’s business or assets, or to compel Parent to dispose of or hold separate all or any portion of its or the Company’s business or assets as a result of the transactions contemplated
by the Agreement which if successful would have an adverse effect on Parent’s ability to receive the anticipated benefits of the Merger. 

(k) No Injunctions or Restraints; Illegality. No temporary restraining order, preliminary or permanent injunction or other order issued
by any court of competent jurisdiction or other legal or regulatory restraint or prohibition preventing the consummation of the Merger shall be in effect, and there shall be no pending action, 

  
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proceeding or other application before any Governmental Entity seeking any such order, restraint or prohibition. 

(l) Amendment to Employment Agreement. Parent shall have received fully executed copies of amendments to employment agreements by and
between the Company and certain employees of the Company. 
 (m) Other Documents. Parent shall have received such customary documents
from the Company as Parent may reasonably request in good faith for the purpose of facilitating the consummation of the Merger and the other transactions contemplated by this Agreement and the Related Agreements. 

ARTICLE VII 
 INDEMNIFICATION 

7.1. Survival of Representations and Warranties. The representations and warranties of the Company set forth in this Agreement or in
any certificate, document or other instrument delivered by or on behalf of the Company pursuant to or in connection with this Agreement shall survive the execution and delivery of this Agreement, any investigation by or on behalf of Parent or Merger
Sub, and the Effective Time and shall terminate at 11:59 P.M. Pacific time on the date that is twelve (12) months following the Closing Date (such date, the “Expiration Date”), except that the representations and warranties of
the Company set forth in Sections 3.1 (Organization), 3.2 (Authority) and 3.17 (Tax Matters) (the “Company Fundamental Representations”) shall so survive but shall terminate on the expiration of all applicable statutes of limitation
(as the same may be extended or waived), and except, in all cases, with respect to any Loss, claim or breach of which any Indemnified Party shall have provided written notice to the Stockholder Representative prior to such termination. The
representations and warranties of Parent and Merger Sub set forth in this Agreement or in any certificate, document or other instrument delivered by or on behalf of Parent or Merger Sub pursuant to or in connection with this Agreement shall survive
the execution and delivery of this Agreement, any investigation by or on behalf of the Stockholders, and the Effective Time and shall terminate on the Expiration Date, except that the representations and warranties of Parent and Merger Sub set forth
in Sections 3.1 (Organization) and 3.2 (Authority) shall so survive but shall terminate on the expiration of all applicable statutes of limitation (as the same may be extended or waived). 

7.2. Indemnification. As an integral term of the Merger, each Stockholder, severally and not jointly in accordance with his, her or its
Pro Rata Share (the “Company Indemnifying Parties”), shall indemnify, defend and hold harmless Parent, Merger Sub, the Surviving Corporation and each of their officers, directors, employees, partners, members, agents and Affiliates
(the “NantCell Indemnified Parties”) against any and all Losses incurred or suffered by any such NantCell Indemnified Parties directly or indirectly as a result of, with respect to or in connection with: 

(a) the failure of any representation or warranty of the Company set forth herein or in any certificate, document or other instrument
delivered pursuant to or in connection with this Agreement to be true and correct in all respects as of the date of this Agreement and as of the Closing (disregarding for purposes of this Section 7.2(a) any
“materiality”, “in all material respects”, or “Company Material Adverse Effect” qualification for purposes of calculating Losses); 

  
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 (b) any failure by the Company to fully perform, fulfill or comply with any covenant set
forth herein or in any certificate, document or other instrument delivered pursuant to or in connection with this Agreement; 
 (c) any
Dissenting Share Payments; 
 (d) any claims by any current or former holder of Company Capital Stock, Company Options, Company Warrants or
other Company Stock Rights relating to or arising out of the Merger, this Agreement, the transactions contemplated hereby, including the allocation of the Merger Consideration, or any Person’s status as an equity holder or ownership of equity
interests in the Company at any time at or prior to the Closing, whether for breach of fiduciary duty or otherwise; 
 (e) regardless of any
disclosure on the Company Disclosure Schedule, any claims made by any Stockholder based upon any alleged breach of fiduciary or other duty by any officer, director or stockholder of the Company in connection with this Agreement or the transactions
contemplated hereby, or any claims by any officer, director or Stockholder to indemnification by the Company or the Surviving Corporation with respect to any such claims; 

(f) any actual or asserted Liability for Taxes of or owed by the Company in respect of any full or partial Tax period ending on or prior to
the Closing Date; and 
 (g) defending any Third-Party Claim alleging the occurrence of facts or circumstances that, if true, would entitle
an Indemnified Party to indemnification hereunder. 
 7.3. Indemnification by Parent. As an integral term of the Merger, Parent and
Merger Sub, jointly and severally (the “NantCell Indemnifying Parties,” and together with the Company Indemnifying Parties, the “Indemnifying Parties”), shall indemnify, defend and hold harmless the Company,
the Stockholder Representative and each Stockholder, and each of their officers, directors, employees, partners, members, agents and Affiliates (the “Company Indemnified Parties,” and together with the NantCell Indemnified Parties,
the “Indemnified Parties”) against any and all Losses incurred or suffered by any such Company Indemnified Parties directly or indirectly as a result of, with respect to or in connection with: 

(a) the failure of any representation or warranty of Parent or Merger Sub set forth in Article IV of this Agreement to be true and
correct in all respects as of the date of this Agreement and as of the Closing (disregarding for purposes of this Section 7.3(a) any “materiality”, “in all material respects”, or “material adverse
effect” qualification for purposes of calculating Losses); or 
 (b) any failure by Parent or Merger Sub to fully perform, fulfill or
comply with any covenant set forth herein or in any certificate, document or other instrument delivered pursuant to or in connection with this Agreement. 

  
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 7.4. Limitations; etc. 

(a) Deductible. No claim may be made by any Indemnified Party for indemnification pursuant to Section 7.2 or
Section 7.3, other than a claim arising from any failure of any of the Company Fundamental Representations or Parent Fundamental Representations to be true and correct (for which a claim may be made without regard to the
threshold set forth in this Section 7.4(a)), unless and until the aggregate amount of Losses indemnifiable by such Indemnifying Party for which the Indemnified Parties seek to be indemnified pursuant to
Section 7.2 or Section 7.3 exceeds an amount equal to $35,000 (the “Deductible”), at which point the Indemnifying Party shall become liable for only those Losses in excess of such
Deductible. 
 (b) Cap. The Indemnifying Parties’ indemnification obligations under Section 7.2 or
Section 7.3 are subject to the following additional limitations: 
 (i) Subject to clauses (b)(ii) and
(d) below, the Holdback Shares shall serve as the sole and exclusive source of funding for any Losses indemnifiable by the Company or any Stockholder under Section 7.2 as provided in
Section 7.5; and 
 (ii) The Indemnifying Parties shall not be required to indemnify any Indemnified Party under
Section 7.2 or Section 7.3 for Losses with respect to any Company Fundamental Representation or Parent Fundamental Representation in the aggregate in excess of $5,000,000, provided that in no event
shall an individual Stockholder’s aggregate liability to a NantCell Indemnified Party exceed the amount of Merger Consideration actually received by such Stockholder in connection with the Merger. 

(c) No Prejudice. The representations, warranties, covenants and obligations of the Company, and the rights and remedies that may be
exercised by the Indemnified Parties based on such representations, warranties, covenants and obligations, will not be limited or affected by any investigation conducted by Parent or Merger Sub or any agent of Parent or Merger Sub with respect to,
or any knowledge acquired (or capable of being acquired) by Parent or Merger Sub or any agent of Parent or Merger Sub at any time, whether before or after the execution and delivery of this Agreement or the Closing, with respect to the accuracy or
inaccuracy of or compliance with or performance of any such representation, warranty, covenant or obligation. The waiver by Parent or Merger Sub of any of the conditions set forth in Article VI will not affect or limit the provisions of this
Article VII. 
 (d) Fraud. Notwithstanding anything to the contrary in this Agreement, the limitations set forth in this
Article VII shall not apply with respect to (i) actual fraud, or (ii) any equitable remedy, including a preliminary or permanent injunction or specific performance. 

7.5. Recovery of Losses; Holdback Shares. 

(a) Subject to the limitations set forth in Section 7.4, each Stockholder shall be liable up to such
Stockholder’s Pro Rata Share of the Merger Consideration for Losses indemnifiable under Section 7.2. 

  
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 (b) Any Losses payable from the Holdback Shares shall reduce the number of Holdback Shares
issuable to the Stockholders hereunder determined by dividing the amount of such Losses by $10.00. In the event any of the NantCell Indemnified Parties has provided a claim for indemnification for Losses under Section 7.2
prior to the Expiration Date but the amount of such alleged Losses is being disputed by the Stockholder Representative, Parent may continue to hold the number of Holdback Shares to cover the Losses set forth in such claim, which amount shall be
estimated reasonably and in good faith, pending resolution of such claims. Any Holdback Shares in excess of this amount shall be delivered to the Participating Stockholders within twenty (20) Business Days following the Expiration Date. Upon
the final resolution of such claims, any remaining Holdback Shares not required to satisfy any such unresolved Damages or claims shall be delivered to the Participating Stockholders pro rata in accordance with their Pro Rata Shares. 

(c) In the event of any Losses with respect to any Company Fundamental Representation in excess of the Holdback Shares, such Losses may, at
the discretion of the Participating Stockholder, be satisfied through either a payment of cash or the return to Parent for cancellation and termination of a number of shares of Parent Common Stock with a value equal to such Participating
Stockholder’s Pro Rata Share of such Losses (with such shares of Parent Common Stock valued at $10.00 per share). 
 7.6.
Procedures. 
 (a) Third-Party Claims. Promptly after the assertion by any third party of any claim against any Indemnified
Party (a “Third-Party Claim”) that, in the judgment of such Indemnified Party, may result in the incurrence of Losses for which such Indemnified Party would be entitled to indemnification pursuant to this Agreement, such Indemnified
Party shall deliver to the Indemnifying Party (or in the case of the Stockholders Indemnifying Party, the Stockholder Representative) a written notice describing in reasonable detail such Third-Party Claim (“Claim Notice”);
provided, that no delay on the part of the Indemnified Party in notifying the Indemnifying Party will relieve the Indemnifying Party of any liability or obligations hereunder, except to the extent that the Indemnifying Party has been
materially prejudiced thereby, and then only to such extent. Notwithstanding the foregoing sentence, in the case of any claim made by any Indemnified Party for indemnification pursuant to Section 7.2 or 7.3, other
than a claim arising from any breach or inaccuracy of any of the Company Fundamental Representations or the Parent Fundamental Representations, indemnification shall not be available if the Claim Notice has not been delivered prior to the Expiration
Date or, with respect to the Company Fundamental Representations or the Parent Fundamental Representations, the applicable statute of limitations. 

(b) Opportunity to Contest. If the Indemnifying Party acknowledges in writing its obligation to indemnify the Indemnified Party
hereunder against any Losses that may result from such Third-Party Claim, then the Indemnifying Party shall be entitled to assume and control the defense of such Third-Party Claim through counsel of its choice (such counsel to be reasonably
acceptable to the Indemnified Party) if it gives notice of its intention to do so to the Indemnified Party within 10 days of the receipt of Claims Notice; provided, that the Indemnifying Party shall not have the right to assume the defense of
the Third-Party Claim if (i) any such claim seeks, in addition to or in lieu of monetary losses, any injunctive or other equitable relief, (ii) there is reasonably likely to exist a conflict of interest that would make it inappropriate (in
the judgment of the Indemnified Party in its 

  
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reasonable discretion) for the same counsel to represent both the Indemnified Party and the Indemnifying Party, or (iii) settlement of, or an adverse judgment with respect to, the
Third-Party Claim may establish (in the good faith judgment of the Indemnified Party) a precedential custom or practice adverse to the business interests of the Indemnified Party; provided, further, that if by reason of the Third-Party
Claim a Lien, attachment, garnishment, execution or other encumbrance is placed upon any of the property or assets of such Indemnified Party, the Indemnifying Party, if it desires to exercise its right to assume such defense of the Third-Party
Claim, must agree to furnish a satisfactory indemnity bond to obtain the prompt release of such Lien, attachment, garnishment, execution or other encumbrance. If the Indemnifying Party assumes the defense of a Third-Party Claim pursuant to the first
sentence of this Section 7.5(b), it will conduct the defense actively, diligently and at its own expense, and it will hold all Indemnified Parties harmless from and against all Losses caused by or arising out of any
settlement thereof. The Indemnified Party shall cooperate with the Indemnifying Party in such defense and make available to the Indemnifying Party, at the Indemnifying Party’s expense, all witnesses, pertinent records, materials and information
in the Indemnified Party’s possession or under the Indemnified Party’s control relating thereto as is reasonably requested by the Indemnifying Party. Except with the written consent of the Indemnified Party (not to be unreasonably
withheld), the Indemnifying Party will not, in the defense of a Third-Party Claim, consent to the entry of any judgment or enter into any settlement (x) which does not include as an unconditional term thereof the giving to the Indemnified Party
by the third party of a release from all liability with respect to such suit, claim, action, or proceeding; and (y) unless there is no finding or admission of (A) any violation of Law by the Indemnified Party (or any Affiliate thereof),
(B) any liability on the part of the Indemnified Party (or any Affiliate thereof) or (C) any violation of the rights of any person and no effect on any other claims of a similar nature that may be made by the same third party against the
Indemnified Party (or any Affiliate thereof). 
 (c) In the event that the Indemnifying Party fails or elects not to assume the defense of
an Indemnified Party against such Third-Party Claim which the Indemnifying Party had the right to assume pursuant to Section 7.5(b), the Indemnified Party shall have the right, at the expense of the Indemnifying Party
(provided the Indemnified Party is determined to be entitled to indemnification), to defend or prosecute such claim in any manner as it may reasonably deem appropriate and may settle such claim after giving written notice thereof to the Indemnifying
Party and obtaining the Indemnifying Party’s approval to the terms of the settlement, on such terms as such Indemnified Party may deem appropriate, and the Indemnified Party may, to the extent permitted under
Section 7.2, adjust the number of Holdback Shares issuable hereunder by the amount of any Losses incurred in connection with such settlement divided by $10.00. If no settlement of such Third-Party Claim is made, the
Indemnified Party may, if applicable, adjust the number of Holdback Shares issuable hereunder by the amount of any Losses arising out of any judgment rendered with respect to such indemnifiable claim divided by $10.00. Any Losses for which an
Indemnified Party is entitled to indemnification hereunder shall, to the extent required under Section 7.2, be promptly paid as suffered, incurred or accrued. If the Indemnifying Party does not elect to assume the defense
of a Third-Party Claim which it has the right to assume hereunder, the Indemnified Party shall have no obligation to do so. 
 (d) In the
event that the Indemnifying Party is not entitled to assume the defense of the Indemnified Party against such Third-Party Claim pursuant to Section 7.5(b), the Indemnified Party shall have the right, at the expense of the

  
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Indemnifying Party, to defend or prosecute such claim and consent to the entry of any judgment or enter into any settlement with respect to the Third-Party Claim in any manner it may reasonably
deem appropriate after giving written notice thereof to the Indemnifying Party, and the Indemnified Party may, to the extent permitted under Section 7.2, adjust the number of Holdback Shares issuable hereunder by the amount
of any Losses incurred in connection with such judgment or settlement to which the Indemnified Party is entitled to indemnification divided by $10.00. In such case, the Indemnified Party shall conduct the defense of the Third-Party Claim actively
and diligently, and the Indemnifying Party shall cooperate with the Indemnified Party in such defense and make available to the Indemnified Party, at the Indemnifying Party’s expense, all such witnesses, records, materials and information in
the Indemnifying Party’s possession or under the Indemnifying Party’s control relating thereto as is reasonably requested by the Indemnified Party. If no settlement of such Third-Party Claim is made, the Indemnified Party may, to the
extent permitted under Section 7.2, adjust the number of Holdback Shares issuable hereunder by the amount of any Losses arising out of any judgment rendered with respect to such claim divided by $10.00. Any Losses for which
an Indemnified Party is entitled to indemnification hereunder shall, to the extent required under Section 7.2, be promptly paid as suffered, incurred or accrued. 

(e) In the event the Indemnifying Party is the Company or the Stockholders, the adjustment to the Holdback Shares shall be a reduction. In the
event the Indemnifying Party is Parent or the Surviving Corporation, the adjustment to the Holdback Shares shall be an increase. 
 7.7.
Merger Consideration Adjustment. The Company, Parent and the Stockholders agree to treat each indemnification payment pursuant to this Article VII as an adjustment to the Merger Consideration for all Tax purposes and shall take no
position contrary thereto unless required to do so by applicable Tax Law pursuant to a determination as defined in Section 1313(a) of the Code. 

7.8. Remedies Exclusive. All representations and warranties set forth in this Agreement are contractual in nature only and subject to
the sole and exclusive remedies set forth herein. The remedies provided in this Article VII shall be the sole and exclusive remedies of Parent, the Company, the Stockholders Representative, the Stockholders and their respective successors and
permitted assigns after the Closing with respect to this Agreement; provided, that any party may seek equitable relief, including the remedies of specific performance and injunction, with respect to the breach of any covenant or agreement to
be performed after the Closing. 
 7.9. Stockholder Representative; Power of Attorney. 

(a) Appointment. By virtue of the adoption of this Agreement and the approval of the Merger by the Stockholders, each Stockholder
(regardless of whether or not such Stockholder votes in favor of the adoption of this Agreement and the approval of the Merger, whether at a meeting or by written consent in lieu thereof) hereby initially appoints, as of the date of this Agreement,
Amy Wang (together with his or her permitted successors, the “Stockholder Representative”), as his, her or its true and lawful agent and
attorney-in-fact to enter into any Related Agreement and any transactions contemplated by this Agreement, and to: (i) give and receive notices and communications to
or from Parent (on behalf of itself or any other Indemnified Party) relating to this Agreement or any of the transactions and other matters contemplated hereby (except to the extent that this 

  
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Agreement expressly contemplates that any such notice or communication shall be given or received by such Stockholders individually); (ii) authorize Parent to reduce the number of Holdback
Shares in satisfaction of claims asserted by Parent (on behalf of itself or any other Indemnified Party, including by not objecting to claims thereto); (iii) object to any claims by Parent to reduce the number of Holdback Shares; (iv) consent
or agree to, negotiate, enter into settlements and compromises of, and agree to arbitration and comply with orders of courts and awards of arbitrators with respect to such claims; (v) assert, negotiate, enter into settlements and compromises
of, and agree to arbitration and comply with orders of courts and awards of arbitrators with respect to, any other claim by any Indemnified Party against any such Stockholder or by any such Stockholder against any Indemnified Party or any dispute
between any Indemnified Party and any such Stockholder, in each case relating to this Agreement or the transactions contemplated hereby; (vi) amend this Agreement or any other Related Agreement or other agreement referred to herein or
contemplated hereby; and (vii) take all actions necessary or appropriate in the judgment of the Stockholder Representative for the accomplishment of the foregoing, in each case without having to seek or obtain the consent of any Person under
any circumstance. 
 (b) Acceptance. Amy Wang hereby accepts his or her appointment as Stockholder Representative. 

(c) Replacement. The person serving as the Stockholder Representative may be replaced from time to time by the Stockholders holding a
majority of the Company Preferred Stock immediately prior to the Effective Time upon not less than 10 days’ prior written notice to Parent. No bond shall be required of the Stockholder Representative, and the Stockholder Representative shall
receive no compensation for his services. Notices or communications to or from the Stockholder Representative shall constitute notice to or from each of the Stockholders. 

(d) No Liability. The Stockholder Representative shall not be liable to any Stockholder for any act done or omitted hereunder as the
Stockholder Representative while acting in good faith and any act done or omitted pursuant to the advice of counsel shall be conclusive evidence of such good faith. The Stockholders shall jointly and severally indemnify the Stockholder
Representative and hold him harmless against any loss, liability or expense incurred without gross negligence or bad faith on the part of the Stockholder Representative and arising out of or in connection with the acceptance or administration of his
duties hereunder. 
 (e) Access to Information. The Stockholder Representative shall have reasonable access to relevant information
about the Company and the reasonable assistance of the Company’s employees for purposes of performing his duties and exercising his rights hereunder; provided that the Stockholder Representative shall treat confidentially and not
disclose any nonpublic information from or about the Company to anyone (except on a need to know basis to individuals who agree to treat such information confidentially). 

(f) Notice. Any notice or communication given or received by, and any decision, action, failure to act within a designated period of
time, agreement, consent, settlement, resolution or instruction of, the Stockholder Representative shall constitute a notice or communication to or by, or a decision, action, failure to act within a designated period of time, agreement, consent,
settlement, resolution or instruction of all the 

  
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Stockholders and shall be final, binding and conclusive upon each such Stockholder; and each Indemnified Party shall be entitled to rely upon any such notice, communication, decision, action,
failure to act within a designated period of time, agreement, consent, settlement, resolution or instruction as being a notice or communication to or by, or a decision, action, failure to act within a designated period of time, agreement, consent,
settlement, resolution or instruction of, each and every such Stockholder. Each Indemnified Party is hereby relieved from any liability to any Person for any acts done by them in accordance with any such notice, communication, decision, action,
failure to act within a designated period of time, agreement, consent or instruction of the Stockholder Representative. 
 (g) Role of
Stockholder Representative; No Contribution. Without limiting the generality or effect of Section 7.9(a), any claims or disputes between or among any Indemnified Party, the Stockholder Representative and/or any one or more Stockholders relating
to this Agreement or the transactions contemplated hereby or thereby shall in the case of any claim or dispute asserted by or against or involving any such Stockholder (other than any claim against or dispute with the Stockholder Representative), be
asserted or otherwise addressed solely by the Stockholder Representative on behalf of such Stockholder (and not by such Stockholder acting on its own behalf). Each Stockholder waives, and acknowledges and agrees that he shall not have and shall not
exercise or assert (or attempt to exercise or assert), any right of contribution, right of indemnity or other right or remedy against Parent or the Surviving Corporation in connection with any indemnification obligation or any other liability to
which he may become subject under or in connection with this Agreement. 
 7.10. No Subrogation. Following the Closing, no
Stockholder shall have any right of indemnification, contribution or subrogation against the Company with respect to any indemnification made by or on behalf of any Stockholder under Section 7.2. 

ARTICLE VIII 
 TERMINATION,
AMENDMENT AND WAIVER 
 8.1. Termination. This Agreement may be terminated and the Merger abandoned at any time prior to the Closing
Date regardless of whether this Agreement and/or the Merger have been approved by the Stockholders: 
 (a) by written agreement of the
Company, Parent and Merger Sub; 
 (b) by either Parent or the Company if the Closing Date has not occurred by April 15, 2017 (the
“Termination Date”); provided, that the right to terminate this Agreement under this Section 8.1(b) shall not be available to any party whose failure to fulfill any obligation hereunder has been the
cause of, or resulted in, the failure of the Closing Date to occur on or before the Termination Date and such action or failure constitutes a breach of this Agreement; 

(c) by Parent if it is not in material breach of its obligations under this Agreement and there has been a breach of any representation,
warranty, covenant or agreement contained in this Agreement on the part of the Company and as a result of such breach the conditions set forth in Section 6.2(a) or 6.2(b), as the case may be, would not then be
satisfied; provided, that if such breach is curable by the Company prior to the Termination Date through the exercise of its commercially reasonable efforts, then Parent 

  
 -40- 

 
may not terminate this Agreement under this Section 8.1(c) prior to the earlier of the Termination Date or the date that is 15 days following the Company’s receipt
of written notice from Parent of such breach, it being understood that Parent may not terminate this Agreement pursuant to this Section 8.1(c) if such breach by the Company is cured within such 15 day period so that the
conditions would then be satisfied; or 
 (d) by the Company if it is not in material breach of its obligations under this Agreement and
there has been a breach of any representation, warranty, covenant or agreement contained in this Agreement on the part of Parent or Merger Sub and as a result of such breach the conditions set forth in Section 6.1(a) or
6.1(b), as the case may be, would not then be satisfied; provided, that if such breach is curable by Parent prior to the Termination Date through the exercise of its commercially reasonable efforts, then the Company may not terminate
this Agreement under this Section 8.1(d) prior to the earlier of the Termination Date or the date that is 15 days following Parent’s receipt of written notice from the Company of such breach, it being understood that the Company may
not terminate this Agreement pursuant to this Section 8.1(d) if such breach by Parent is cured within such 15-day period so that the conditions would then be satisfied. 

8.2. Effect of Termination. Any termination of this Agreement under Section 8.1 will be effective immediately
upon the delivery of written notice by the terminating party to the other parties hereto. In the event of the termination of this Agreement as provided in Section 8.1, this Agreement shall be of no further force or effect,
except (i) as set forth in Section 5.4, this Section 8.2, Section 8.3 and Article VII, each of which shall survive the termination of this
Agreement, and (ii) nothing herein shall relieve any party from liability for any willful breach of this Agreement. No termination of this Agreement shall affect the obligations of the parties contained in the Mutual Non-Disclosure Agreement dated February 28, 2017, by and between Parent and the Company, all of which obligations shall survive termination of this Agreement. 

8.3. Amendment. Except as is otherwise required by applicable Law, prior to the Closing this Agreement may be amended by the parties
hereto at any time by execution of an instrument in writing signed by Parent, Merger Sub and the Company. Except as is otherwise required by applicable Law, after the Closing this Agreement may be amended by the parties hereto at any time by
execution of an instrument in writing signed by Parent, Merger Sub and the Stockholder Representative. 
 8.4. Extension; Waiver. At
any time prior to the Effective Time, Parent and Merger Sub, on the one hand, and the Company, on the other, may, to the extent legally allowed, (i) extend the time for the performance of any of the obligations of the other party hereto,
(ii) waive any inaccuracies in the representations and warranties made to such party contained herein or in any document delivered pursuant hereto or (iii) waive compliance with any of the agreements or conditions for the benefit of such
party contained herein. Any agreement on the part of a party hereto to any such extension or waiver shall be valid only if, and to the extent, set forth, in an instrument in writing signed on behalf of such party. 

ARTICLE IX 
 GENERAL PROVISIONS

 9.1. Notices. All notices and other communications hereunder shall be in writing and shall be deemed given if properly addressed:
(i) if delivered personally, by 

  
 -41- 

 
commercial delivery service or by facsimile (with acknowledgment of a complete transmission) or by .pdf attachment to email (with a copy to follow either personally, by commercial delivery
service or by first class, registered or certified mail (return receipt requested), on the day of delivery; or (ii) if delivered by internationally recognized courier (appropriately marked for next day delivery), one Business Day after sending;
or (iii) if delivered by first class, registered or certified mail (return receipt requested), three Business Days after mailing. Notices shall be deemed to be properly addressed to any party hereto if addressed to the following addresses (or
at such other address for a party as shall be specified by like notice): 
 (a) If to Parent or Merger Sub: 

NantCell, Inc. 
 9920 Jefferson
Blvd. 
 Culver City, CA 90232 

Attention: Charles Kim 
 Email:
ckim@nantworks.com 
 (b) if to the Company, to: 

Liquid Genomics 
 1725 Del Amo
Blvd. 
 Torrance, CA 90501 

Attn: Ms. Kathleen D. Danenberg, CEO 

Fax: 844-848-5923 

(c) if to the Stockholder Representative to: 

Amy Wang 
 2623 5th Street 

Santa Monica, CA 90405 
 Email:
amywang33@gmail.com 
 9.2. Entire Agreement. This Agreement, together with the Related Agreements and the Confidentiality Agreement,
the schedules and Exhibits hereto and thereto, and the documents and instruments and other agreements among the parties hereto referenced herein constitute the entire agreement among the parties with respect to the subject matter hereof and
supersede all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof, including but not limited to that certain Binding Term Sheet dated as of February 27, 2017, by and between
Parent and the Company. 
 9.3. Severability. In the event that any provision of this Agreement or the application thereof becomes or
is declared by a court of competent jurisdiction to be illegal, void or unenforceable, the remainder of this Agreement will continue in full force and effect and the application of such provision to other Persons or circumstances will be interpreted
so as reasonably to effect the intent of the parties hereto. The parties further agree to replace such void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the greatest extent possible, the
economic, business and other purposes of such void or unenforceable provision. 

  
 -42- 

 9.4. Expenses. Subject to Section 5.11, all Transaction Expenses and all costs
and expenses incurred in connection with this Agreement and in closing and carrying out the transactions contemplated hereby shall be paid by the party incurring such cost or expense. This Section shall survive the termination of this Agreement.

 9.5. Successors and Assigns; Parties in Interest. 

(a) This Agreement shall be binding upon each Stockholder and each of the Stockholders’ personal representatives, executors,
administrators, estates, heirs, successors and assigns (if any) and Parent and Merger Sub and their respect successors and assigns, if any. This Agreement shall inure to the benefit of the parties hereto and the Indemnified Parties and the
respective successors and assigns (if any) of the foregoing. No obligation of the Company in this Agreement shall become an obligation of the Surviving Corporation after the Effective Time. 

(b) No Party may assign any of its rights or delegate any of its obligations under this Agreement without the prior written consent of Parent
and the Company, except that Parent may assign its rights and delegate its obligations hereunder to any Affiliate without the Company’s consent. 

(c) Except as provided in the following sentence, nothing in this Agreement, express or implied, is intended to or shall confer upon any other
Person any rights, interests, benefits or other remedies of any nature under or by reason of this Agreement. This Agreement is intended to benefit the Indemnified Parties, each Indemnified Party shall be deemed a third-party beneficiary of this
Agreement and this Agreement shall be enforceable by the Indemnified Parties. Except as set forth in this Section 9.5(c), none of the provisions of this Agreement is intended to provide any rights or remedies to any Person
other than the parties and their respective successors and assigns, if any. 
 9.6. Waiver. No failure on the part of any Person to
exercise any power, right, privilege or remedy under this Agreement, and no delay on the part of any Person in exercising any power, right, privilege or remedy under this Agreement, shall operate as a waiver of such power, right, privilege or
remedy; and no single or partial exercise of any such power, right privilege or remedy shall preclude any other or further exercise thereof or of any other power, right, privilege or remedy. 

9.7. Construction. 
 (a)
For purposes of this Agreement, whenever the context requires: the singular number shall include the plural, and vice versa; the masculine gender shall include the feminine and neuter genders; the feminine gender shall include the masculine and
neuter genders; and the neuter gender shall include the masculine and feminine genders. 
 (b) Any rule of construction to the effect that
ambiguities are to be resolved against the drafting party shall not be applied in the construction or interpretation of this Agreement. 

  
 -43- 

 (c) The words “include” and “including,” and variations thereof, shall
not be deemed to be terms of limitation, but rather shall be deemed to be followed by the words “without limitation.” 
 (d)
Except as otherwise indicated, all references in this Agreement to “Sections,” “Exhibits” and “Schedules” are intended to refer to Sections of this Agreement, and Exhibits and Schedules to this Agreement or to the
Company Disclosure Schedule, as the context may require. 
 (e) The table of contents and headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 
 9.8. Governing Law;
Venue. 
 (a) This Agreement shall be construed in accordance with, and governed in all respects by, the laws of the State of Delaware
without regard to the laws of such jurisdiction that would require the substantive laws of another jurisdiction to apply. 
 (b) Unless
otherwise explicitly provided in this Agreement, any action, claim, suit or proceeding relating to this Agreement or the enforcement of any provision of this Agreement shall be brought or otherwise commenced in any state or federal court located in
Los Angeles, California. Each party hereto (i) expressly and irrevocably consents and submits to the jurisdiction of each such court, and each appellate court located in the State of California, in connection with any such proceeding;
(ii) agrees that each such court shall be deemed to be a convenient forum; (iii) agrees that service of process in any such proceeding may be made by giving notice pursuant to Section 9.1; and (iv) agrees not
to assert, by way of motion, as a defense or otherwise, in any such proceeding commenced in any such court, any claim that such party is not subject personally to the jurisdiction of such court, that such proceeding has been brought in an
inconvenient forum, that the venue of such proceeding is improper or that this Agreement or the subject matter of this Agreement may not be enforced in or by such court. 

(c) The Stockholders and Stockholder Representative agree that, if any claim, action suit or proceeding is commenced against any Indemnified
Party by any Person in or before any court or other tribunal anywhere in the world, then such Indemnified Party may proceed against the Stockholders and Stockholder Representative in or before such court or other tribunal with respect to any
indemnification claim or other claim arising directly or indirectly from or relating directly or indirectly to such claim, action, suit or proceeding or any of the matters alleged therein or any of the circumstances giving rise thereto. 

9.9. Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS AGREEMENT OR ANY RELATED
AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE IT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING
TO THIS AGREEMENT, ANY RELATED AGREEMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY. EACH OF THE COMPANY, PARENT AND MERGER SUB (a) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE 

  
 -44- 

 
OTHER PARTIES HAS REPRESENTED, EXPRESSLY OR OTHERWISE THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (b) ACKNOWLEDGES THAT IT AND THE
OTHER PARTIES HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.9. 

9.10. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument. Any signature page delivered by facsimile or electronic image transmission shall be binding to the same extent as an original signature page. Any party that delivers a signature
page by facsimile or electronic image transmission shall deliver an original counterpart to any other party that requests such original counterpart. 

9.11. Time of the Essence. Time is of the essence of this Agreement. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 -45- 

 IN WITNESS WHEREOF, THE
UNDERSIGNED HAS EXECUTED AND DELIVERED THIS AGREEMENT, OR CAUSED THIS AGREEMENT
TO BE EXECUTED AND DELIVERED BY ITS DULY AUTHORIZED REPRESENTATIVE, AS
OF THE DATE FIRST WRITTEN ABOVE. 
  

			
	NANTCELL, INC.
		
	By:	 	/s/ Patrick Soon-Shiong
		 	Name: Patrick Soon-Shiong
		 	Title: CEO

  
 [Parent
Signature Page to Agreement and Plan of Merger] 

 IN WITNESS WHEREOF, the undersigned has
executed and delivered this Agreement, or caused this Agreement to be executed and delivered by its duly authorized representative, as of the date first written above. 

 

			
	 BIO MERGER SUB, INC.

		
	By:	 	/s/ Charles Kim
		 	Name: Charles Kim
		 	Title: Secretary

  
 [Merger
Sub Signature Page to Agreement and Plan of Merger] 

 IN WITNESS WHEREOF, the undersigned has
executed and delivered this Agreement, or caused this Agreement to be executed and delivered by its duly authorized representative, as of the date first written above. 

 

			
	 LIQUID GENOMICS, INC. 

		
	By:	 	/s/ Kathleen Danenberg
		 	Name: Kathleen Danenberg
		 	Title: CEO

  
 [Company
Signature Page to Agreement and Plan of Merger] 

 IN WITNESS WHEREOF, the undersigned has
executed and delivered this Agreement, or caused this Agreement to be executed and delivered by its duly authorized representative, as of the date first written above. 

 

	
	 STOCKHOLDER REPRESENTATIVE:

	
	/s/ Amy Wang
	      Amy Wang, solely in her capacity as
     Stockholder
Representative

  

[Stockholder Representative Signature Page to Agreement and Plan of Merger]EX-10.4

 Exhibit 10.4 

EXECUTION COPY 
  

 
  

AGREEMENT AND PLAN OF MERGER 

BY AND AMONG 

NANTCELL, INC., 

ALTOR ACQUISITION LLC, 

ALTOR BIOSCIENCE CORPORATION 

AND 

SHAREHOLDER REPRESENTATIVE SERVICES LLC 

DATED AS OF MAY 19, 2017 

 
  

 

 AGREEMENT AND PLAN OF
MERGER 
 This AGREEMENT AND PLAN OF MERGER
(as amended, restated or supplemented from time to time, this “Agreement”) is made and entered into as of May 19, 2017, by and among NANTCELL, INC., a Delaware corporation (“Parent”), ALTOR ACQUISITION
LLC, a Delaware limited liability company and a wholly-owned subsidiary of Parent (“Merger Sub”), ALTOR BIOSCIENCE CORPORATION, a Delaware corporation (the “Company”), and SHAREHOLDER REPRESENTATIVE
SERVICES LLC, a Colorado limited liability company, solely in its capacity as Stockholder Representative. 
 RECITALS

 A.    Parent, Merger Sub and the Company intend to effect a merger (the “Merger”) of the Company
with and into Merger Sub in accordance with this Agreement and the General Corporation Law of the State of Delaware (the “DGCL”), with Merger Sub to be the surviving entity of the Merger. 

B.    The Company Board has (i) determined that the Merger is fair to, and in the best interests of, the Company and
the Stockholders, (ii) approved this Agreement, the Merger and the other transactions contemplated by this Agreement and (iii) recommended that the Stockholders adopt and approve this Agreement and the other transactions contemplated by
this Agreement, and approve the Merger. 
 C.    Parent, Merger Sub and the Company desire to make certain
representations, warranties, covenants and agreements in connection with the Merger and the transactions contemplated hereby and also to prescribe certain conditions to the Merger as specified herein. 

AGREEMENT 

NOW, THEREFORE, in consideration of the covenants, promises and representations set forth herein, and for other
good and valuable consideration, and intending to be legally bound hereby, the parties agree as follows:  
 ARTICLE I 

DEFINITIONS 

1.1.    Definitions. For purposes of this Agreement, in addition to words defined elsewhere, the following words
and phrases shall have the following meanings: 
 “Accredited Unaffiliated Stockholder” means an Unaffiliated Stockholder
who or which is an “accredited investor,” as such term is defined in Rule 501(a) of Regulation D under the Securities Act of 1933, as amended (the “1933 Act”). 

“Advisory Committee” means, initially, the following Stockholders: Hing Wong, Fred Middleton and a third member to be
mutually appointed by them. 
 “Advisory Committee Member” means any Stockholder who is or was at any time a member of the
Advisory Committee. 

 “Affiliate” means, with respect to the Person to which it refers, a Person
that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with, such Person. 

“Cash Election Shares” means all shares of Company Capital Stock in respect of which Cash Elections have been validly and
timely delivered and not subsequently revoked or changed. 
 “Closing Shares” means the shares of Parent Common Stock to be
delivered to the Stockholders in connection with the Closing pursuant to the Stock Elections and Mixed Elections. 
 “Code”
means the United States Internal Revenue Code of 1986, as amended. 
 “Company Board” means the board of directors of the
Company. 
 “Company Capital Stock” means the Company Common Stock and the Company Preferred Stock, collectively. 

“Company Common Stock” means the common stock of the Company, $0.001 par value per share. 

“Company Material Adverse Effect” means a material adverse effect on the business, assets, liabilities, financial condition,
or results of operations of the Company taken as a whole, using the business, assets, liabilities, financial condition and results of operations of the Company taken as a whole as of the date of this Agreement as a baseline; provided that
such term shall not include any changes in any of the following to the extent that they do not have a disproportionate adverse effect on the Company: (a) events, circumstances, changes or effects that generally affect the industry in which the
Company operates, other than as may materially disproportionately impact the business of the Company (but then only to the extent of such materially disproportionate impact); (b) general economic conditions or events, circumstances, changes or
effects affecting the economy generally, other than as may materially disproportionately impact the business of the Company (but then only to the extent of such materially disproportionate impact); (c) changes arising from the consummation of
the transactions contemplated by, or the announcement of the execution of, this Agreement, (d) any circumstance, change or effect that results from any action taken at the request of Parent in a separate writing to the Company;
(e) conditions caused by acts of terrorism or war (whether or not declared) or any natural or man-made disaster, weather phenomenon or acts of God; or (f) the effect of any changes in applicable
Laws, regulations or accounting rules, including GAAP, or the interpretation or enforcement thereof, other than as may materially disproportionately impact the business, assets, liabilities, financial condition and results of operations of the
Company (but then only to the extent of such materially disproportionate impact). 
 “Company Preferred Stock” means the
Company’s Preferred Stock, par value $0.001 per share, including each series of Company Preferred Stock described in Section 3(a)(i). 

“Company Option” shall mean an option to purchase shares of the Company Capital Stock. 

  
 -2- 

 “Company Stock Rights” means: (i) all outstanding Company Options,
(ii) all outstanding Company Warrants and (iii) all other outstanding subscriptions, options, calls, warrants or any other rights, whether or not currently exercisable, to acquire any shares of Company Capital Stock or that are or may
become convertible into or exchangeable for any shares of Company Capital Stock or another Company Stock Right. 
 “Company
Warrants” means warrants to purchase shares of Company Capital Stock. 
 “Cut Back Percentage” means for each
Accredited Unaffiliated Stockholder the amount, expressed as a percentage, obtained by dividing the amount of cash elected to be received by such Accredited Unaffiliated Stockholder for its Per Share Closing Consideration by the Aggregate Elected
Cash Closing Merger Consideration elected by all Accredited Unaffiliated Stockholders. 
 “CVR Agreements” means,
collectively, the Unaccredited CVR Agreement, the FDA Milestone CVR Agreement, and the Sales Milestone CVR Agreement. 

“CVR” means one contingent value right per share, which shall represent the right to receive the Milestone Payments in the
amounts and at the times provided for, and subject to the terms and conditions of, the CVR Agreements. 
 “Dissenting Share
Payments” means any payment or payments in respect of any Dissenting Shares in excess of the consideration that otherwise would have been payable in respect of such shares in accordance with the Merger Agreement, or any other costs or
expenses incurred by Parent in connection with any legal proceeding or settlement in respect of any Dissenting Shares. 

“Employee” means any current employee, officer, or director of the Company. 

“Exchange Ratio” means five shares of the Company Common Stock to one share of the Parent Common Stock. 

“FDA Milestone CVR Agreement” means the separate Contingent Value Rights Agreement, in the form attached as Annex I
hereto, between Parent and the Stockholder Representative. 
 “Governmental Entity” means any court, administrative agency
or commission or other federal, state, county, local or foreign governmental authority, instrumentality, agency or commission. 

“Indemnification Percentage” means (a) the number of shares of Company Capital Stock and the number of shares underlying
Company Options, Company Stock Rights and Company Warrants held by the Unaffiliated Stockholders divided by (b) the number of shares of Company Capital Stock and the number of shares underlying Company Options, Company Stock Rights and Company
Warrants outstanding as of immediately prior to the Effective Time. 
 “Intellectual Property” means intellectual property
or proprietary rights of any description including (a) rights in any patent, patent application (including any 

  
 -3- 

 
provisionals, continuations, divisionals, continuations-in-part, extensions, renewals, reissues, revivals and
reexaminations, any national phase PCT applications, any PCT international applications, and all foreign counterparts), copyright, industrial design, URL, domain name, trademark, service mark, logo, trade dress or trade name, (b) related
registrations and applications for registration, (c) trade secrets, moral rights or publicity rights, (d) inventions, discoveries, improvements, modification, know-how, technique, methodology,
writing, work of authorship, design or data, whether or not patented, patentable, copyrightable or reduced to practice, including any inventions, discoveries, improvements, modification, know-how, technique,
methodology, writing, work of authorship, design or data embodied or disclosed in any: (i) computer source codes (human readable format) and object codes (machine readable format); (ii) specifications; (iii) manufacturing, assembly,
test, installation, service and inspection instructions and procedures; (iv) engineering, programming, service and maintenance notes and logs; (v) technical, operating and service and maintenance manuals and data; (vi) hardware
reference manuals; and (vii) user documentation, help files or training materials, (e) Know-How, and (f) good will related to any of the foregoing. 

“Key Employee” means each of the Persons listed on Section 1.1 of the Company Disclosure Schedule.

 “Knowledge” (including any derivation thereof such as “known” or “knowing”) means (i) with
respect to the Company, the actual knowledge of any of the Key Employees, and (ii) with respect to Parent, the actual knowledge of the Parent Key Employees. 

“Know-How” means all techniques, technology, trade secrets, inventions (whether
patentable or not), methods, know-how, sequences, data and results (including pharmacological, toxicological and preclinical and clinical data and results), analytical and quality control data and results,
regulatory documents and other information. 
 “Law” mean any federal, state, local, municipal, foreign or other law,
statute, legislation, constitution, principle of common law, resolution, ordinance, code, order, edict, decree, proclamation, treaty, convention, rule, regulation, permit, ruling, directive, pronouncement, requirement (licensing or otherwise),
specification, determination, decision, opinion or interpretation that is or has been issued, enacted, adopted, passed, approved, promulgated, made, implemented or otherwise put into effect by or under the authority of any Governmental Entity. 

“Liabilities” means any debt, obligation, duty, liability or Tax of any nature (including any unknown, undisclosed,
unmatured, unaccrued, unasserted, or contingent, liability), including any change of control, severance or similar payment, regardless of whether such debt, obligation, duty, liability or Tax would be required to be disclosed on a balance sheet
prepared in accordance with generally accepted accounting principles and regardless of whether such debt, obligation, duty, liability or Tax is immediately due and payable. 

“Lien” means any lien, pledge, mortgage, deed of trust, security interest, claim, lease, license, charge, option, right of
first refusal, easement, proxy, voting trust or agreement, transfer restriction under any shareholder or similar agreement, or encumbrance of any nature whatsoever. 

  
 -4- 

 “Loss” or “Losses” means any and all losses, royalties,
liabilities, damages, deficiencies, interest and penalties, costs and expenses, including reasonable attorneys’ fees and expenses, and expenses of investigation and defense incurred or suffered by any Indemnified Parties directly or indirectly
as a result of, with respect to, relating to or in connection with an event, circumstance or state of facts. Losses shall specifically include court costs and the reasonable fees and expenses of legal counsel arising out of or relating to any direct
or third-party claims, demands, actions, causes of action, suits, litigations, arbitrations or Liabilities. Losses shall not include (a) mental or emotional distress, (b) exemplary, incidental, speculative or special damages and
(c) punitive damages, diminution in value or damages based on a multiple of earnings or another financial metric, unless, in the case of clause (a), (b) or (c), such damages are actually awarded to a third party. 

“Milestone Payments” means the FDA Milestone Payment as defined in the FDA CVR Agreement and the Sales Milestone Payment as
defined in the Sales CVR Agreement. 
 “Parent Common Stock” means the common stock of Parent, $0.001 par value per share.

 “Parent Key Employee” means each of the Persons listed on Section 1.1 of the Parent Disclosure
Schedule. 
 “Parent Material Adverse Effect” means a material adverse effect on the business, assets, liabilities,
financial condition, or results of operations of Parent taken as a whole, using the business, assets, liabilities, financial condition and results of operations of Parent taken as a whole as of the date of this Agreement as a baseline;
provided that such term shall not include any changes in any of the following to the extent that they do not have a disproportionate adverse effect on Parent: (a) events, circumstances, changes or effects that generally affect the
industry in which Parent operates, other than as may materially disproportionately impact the business of Parent (but then only to the extent of such materially disproportionate impact); (b) general economic conditions or events, circumstances,
changes or effects affecting the economy generally, other than as may materially disproportionately impact the business of Parent (but then only to the extent of such materially disproportionate impact); (c) changes arising from the
consummation of the transactions contemplated by, or the announcement of the execution of, this Agreement, (d) conditions caused by acts of terrorism or war (whether or not declared) or any natural or
man-made disaster, weather phenomenon or acts of God; or (e) the effect of any changes in applicable Laws, regulations or accounting rules, including GAAP, or the interpretation or enforcement thereof,
other than as may materially disproportionately impact the business, assets, liabilities, financial condition and results of operations of Parent (but then only to the extent of such materially disproportionate impact). 

“Parent Stock Rights” means: (i) all outstanding options to purchase Parent Common Stock, (ii) all outstanding
warrants to Purchase Parent Common Stock and (iii) all other outstanding subscriptions, options, calls, warrants or any other rights, whether or not currently exercisable, to acquire any shares of Parent Common Stock or that are or may become
convertible into or exchangeable for any shares of Parent Common Stock or another Parent Stock Right. 

  
 -5- 

 “Parent Stock Value” means ten dollars ($10.00), subject to adjustment in
the event of a stock split, reverse stock split, stock dividend (including any dividend or distribution of securities convertible into capital stock), reorganization, reclassification, combination, recapitalization or other like change with respect
to shares of Parent Common Stock occurring after the date of this Agreement and before the Effective Time. 
 “Payments
Agreement” means that certain Acquiom Payments Administration Agreement to be entered into at or prior to Closing by and among the Payments Administrator, Parent and the Stockholder Representative. 

“Per Share Closing Consideration” means an amount equal to Two Dollars ($2.00); provided, however, if the Company has
not delivered to Parent prior to the Closing the waiver and release described on Section 1.1(b) of the Company Disclosure Schedule, then the Per Share Closing Consideration payable to Unaffiliated Stockholders shall be
reduced by an amount equal to (i) $585,000 divided by (ii) the aggregate number of shares of Company Capital Stock held by Unaffiliated Stockholders as of the Effective Time. 

“Per Share Contingent Consideration” has the meaning given in Section 2.7. 

“Person” means any individual, corporation, partnership, limited liability company, firm, joint venture, association,
joint-stock company, trust, unincorporated organization, Governmental Entity or other entity. 
 “Proceeding” shall mean
any action, suit, litigation, arbitration, proceeding (including any civil, criminal, administrative, investigative or appellate proceeding), prosecution, contest, hearing, inquiry, inquest, audit, examination or investigation that is, has been or
may in the future be commenced, brought, conducted or heard at law or in equity or before any Governmental Entity or any arbitrator or arbitration panel. 

“Pro Rata Share” means, with respect to each Stockholder, the quotient obtained by dividing (x) the number of shares of
Company Capital Stock held by such Stockholder as of the Effective Time and (y) the aggregate number of issued and outstanding shares of Company Capital Stock (on a fully diluted as converted to Company Common Stock basis) as of the Effective
Time. 
 “PSS Parties” means Dr. Patrick Soon-Shiong, California Capital Equity, LLC, a Delaware limited liability
company, NantWorks, LLC, a Delaware limited liability company, and their respective successors and assignees. 
 “Related
Agreements” means this Agreement, the Certificate of Merger, the CVR Agreements and any other agreements, certificates or documents contemplated hereby. 

“Sales Milestone CVR Agreement” means the separate Contingent Value Rights Agreement, in the form attached as Annex II
hereto, between Parent and the Stockholder Representative. 
 “Stockholder Agreement” means the Consent, Release and
Stockholder Representative Agreement in substantially the form attached as Annex III hereto. 

  
 -6- 

 “Stockholders” mean the holders of shares of Company Capital Stock as of
the date hereof, or, as the context requires, immediately prior to the Effective Time. 
 “Tax” means any federal, state,
local and foreign net income, alternative or add-on minimum, estimated, gross income, gross receipts, sales, use, ad valorem, value added, transfer, franchise, capital profits, lease, service, license,
withholding, payroll, employment, excise, severance, stamp, occupation, premium, property, environmental or windfall profit tax, customs duty or other tax, governmental fee or other like assessment or charge of any kind whatsoever (including any Tax
liability incurred or borne as a transferee or successor, or by contract or otherwise), together with all interest, penalties, additions to tax and additional amounts with respect thereto. 

“Tax Returns” means all returns, declarations, reports, claims for refund, information statements and other documents
relating to Taxes, including all schedules and attachments thereto, and including all amendments thereof. 
 “Threshold Accredited
Unaffiliated Stockholder” means as of any time after Closing an Accredited Unaffiliated Stockholder that owns as of such time no fewer than 100,000 shares of Parent Common Stock. 

“Transaction Expenses” means all costs, fees and expenses incurred (whether or not invoiced) by the Company at or prior to
the Closing in connection with this Agreement and the transactions contemplated hereby, including (A) fees and expenses of advisors, investment bankers, lawyers and accountants arising out of, relating to or incidental to the discussion,
evaluation, financing, negotiation and documentation of the transactions contemplated hereby, (B) fees and expenses associated with obtaining necessary or appropriate waivers, consents or approvals of any Governmental Entity or third parties on
behalf of the Company, and (C) all brokers’ or finders’ fees. 
 “Unaccredited CVR Agreement” means the
Contingent Value Rights Agreement in the form attached as Annex IV hereto between Parent and the Stockholder Representative. 

“Unaffiliated Stockholder” means a Stockholder other than any of the PSS Parties. 

ARTICLE II 
 MERGER 

2.1.    The Merger. At the Effective Time, and subject to and upon the terms and conditions of this Agreement and
the provisions of the DGCL, the Company shall be merged with and into Merger Sub pursuant to which (a) the separate corporate existence of the Company shall cease and (b) Merger Sub shall be the Surviving Entity in the Merger (the
“Surviving Entity”). 
 2.2.    Effective Time. The closing of the transactions contemplated by
this Agreement (the “Closing”) will take place at the offices of Parent, 9920 Jefferson Boulevard, Culver City, California 90232, on the day which is no later than five (5) Business Days after the day on which the last of the
conditions set forth in Article VI (other than those that can only be fulfilled at the Closing, but subject to the fulfillment or waiver of such conditions) is fulfilled or waived, or at such other time and place as

  
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Parent and the Company shall agree in writing. The date upon which the Closing occurs is herein referred to as the “Closing Date.” On the Closing Date, the parties hereto shall
cause the Merger to be consummated by filing a properly completed and executed Certificate of Merger satisfying the requirements of the DGCL (the “Certificate of Merger”) with the Secretary of State of the State of Delaware in
accordance with the relevant provisions of the DGCL (the date and time of the filing of the Certificate of Merger with the Secretary of State of the State of Delaware (or such later time as may be agreed by each of the parties hereto and specified
in the Certificate of Merger) being referred to herein as the “Effective Time”). 
 2.3.    Effect
of the Merger. At the Effective Time, the effect of the Merger shall be as provided in this Agreement and the applicable provisions of the DGCL. Without limiting the generality of the foregoing, and subject thereto, at the Effective Time, all
rights and property of the Company and Merger Sub shall vest in the Surviving Entity, and all debts and liabilities of the Company and Merger Sub shall become debts and liabilities of the Surviving Entity. 

2.4.    Certificate of Formation of the Surviving Entity. From and after the Effective Time, the certificate of
formation of Merger Sub shall be the certificate of formation of the Surviving Entity until amended in accordance with the provisions thereof and applicable Law, except that Section 1 of the certificate of formation of the
Surviving Entity, instead of reading the same as Section 1 of the certificate of formation of Merger Sub, shall read as follows: “The name of this limited liability company is “Altor BioScience, LLC”. 

2.5.    Limited Liability Company Agreement of the Surviving Entity. At the Effective Time, the limited liability
company agreement of Merger Sub, as in effect immediately prior to the Effective Time, shall be the limited liability company agreement of the Surviving Entity until amended in accordance with the provisions thereof and applicable Law. 

2.6.    Board; Officers. The managers of Merger Sub immediately prior to the Effective Time shall be the initial
managers of the Surviving Entity and the officers of Merger Sub immediately prior to the Effective Time shall be the initial officers of the Surviving Entity, each to hold office in accordance with the certificate of formation and limited liability
company agreement of the Surviving Entity, in each case until their respective successors are duly elected or appointed and qualified. 

2.7.    Effect On Shares. 

(a)    Conversion of Shares. At the Effective Time, by virtue of the Merger and without any action on the part of
Parent, Merger Sub, the Company, the Stockholder Representative or the holders of any Company Capital Stock: 

(i)    any shares of Company Capital Stock held immediately prior to the Effective Time by the Company (or held in the
Company’s treasury) shall be cancelled and retired and shall cease to exist, and no consideration shall be delivered in exchange therefor; 

  
 -8- 

 (ii)    any shares of Company Capital Stock held immediately prior to
the Effective Time by Parent or Merger Sub shall be cancelled and retired and shall cease to exist, and no consideration shall be delivered in exchange therefor; 
  

	 	(iii)	 except as provided in clauses (i) and (ii) above and subject to Section 2.7(b),
each share of Company Capital Stock of any class or series, whether Company Common Stock or Company Preferred Stock, outstanding immediately prior to the Effective Time (other than any Dissenting Shares, which shall have only those rights set forth
in Section 2.10) shall be converted into the right to receive: 

  

	 	(A)	 In the case of Unaccredited Unaffiliated Stockholders, the Per Share Closing Consideration, payable to the
holder thereof in cash, as shown for each Unaccredited Unaffiliated Stockholder on the Stockholder Spreadsheet in accordance with the procedures described in Section 2.7(c) below, plus two CVRs (one for each Milestone
Payment), subject to and in accordance with the Unaccredited CVR Agreement; and 

  

	 	(B)	 In the case of Stockholders other than Unaccredited Unaffiliated Stockholders, the Per Share Closing
Consideration, payable to the holder thereof in cash, shares of Parent Common Stock, or a combination thereof, as shown for each such Stockholder on the Stockholder Spreadsheet in accordance with such Stockholder’s Election Form and the
procedures described in Section 2.7(c) below, plus two CVRs (one for each Milestone Payment) subject to and in accordance with the FDA CVR Agreement and Sales CVR Agreement. 

The CVRs described above are referred to herein as “Per Share Contingent Consideration” and collectively with the Per Share Closing
Consideration, as the “Merger Consideration”, in each case without any interest thereon and subject to any withholding of Taxes in accordance with Section 2.9. 

(iv)    each membership unit of Merger Sub issued and outstanding immediately prior to the Effective Time shall remain
outstanding and shall represent one validly issued and fully paid membership unit of the Surviving Entity. 

(b)    Adjustment For Stock Splits, Etc. If, between the date of this Agreement and the Effective Time, any class
or series of outstanding shares of Company Capital Stock are changed into a different number, class or series of shares by reason of any stock split, division or subdivision of shares, stock dividend, reverse stock split, consolidation of shares,
reclassification, recapitalization or other similar transaction, then the Merger Consideration shall be appropriately adjusted; provided, that in any case, nothing in this Section 2.7(b) shall be construed to permit the
Company to take any action that is prohibited by the terms of this Agreement. 

  
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 (c)    Election Procedure. 

(i)    Prior to the Closing, the Company shall deliver to each Stockholder a form of Stockholder Agreement, and the other
documents described in Section 2.11, as described in Section 5.1. The Stockholder Agreement shall contain an election form (the “Election Form”) which shall permit each Stockholder
(other than Unaccredited Unaffiliated Stockholders and PSS Parties) to elect (an “Election”), subject to the limitations and adjustment provisions of this Section 2.7(c), the portion of such
Stockholder’s Per Share Closing Consideration and Per Share Contingent Consideration which will be payable in cash (a “Cash Election”), shares of Parent Common Stock (a “Stock Election”) or a combination of
cash and shares of Parent Common Stock (a “Mixed Election”), all as indicated by each Stockholder’s Election (subject to this Section 2.7(c)). For the avoidance of doubt, a separate Election may be
made by each Stockholder (other than Unaccredited Unaffiliated Stockholders and PSS Parties) with respect to the Per Share Closing Consideration and the Per Share Contingent Consideration and the Election made with respect to Per Share Contingent
Consideration may be changed in accordance with such Stockholder’s FDA Milestone CVR Agreement and/or Sales Milestone CVR Agreement. Any Stockholder who will receive shares of Parent Common Stock shall be required, as a condition precedent to
the receipt of such shares of Parent Common Stock, to execute and deliver to Parent the Stockholder Agreement. 

(ii)    For any Stock Election or Mixed Election as to a Stockholder’s Per Share Closing Consideration, the portion
of each Stockholder’s Per Share Closing Consideration to be paid in shares of Parent Common Stock will be that number of shares of Parent Common Stock that is equal to (i) the portion of each Stockholder’s Per Share Closing
Consideration that such Stockholder has elected to be paid in shares of Parent Common Stock (plus the amount that must be paid in Parent Common Stock after giving effect to Section 2.7(c)(viii) (the “Stock Election
Closing Portion”)), divided by (ii) the Parent Stock Value. 
 (iii)    For any Stock Election or
Mixed Election as to a Stockholder’s Per Share Contingent Consideration, the portion of each Stockholder’s Per Share Contingent Consideration to be paid in shares of Parent Common Stock (the “Stock Election Contingent
Portion”) will be that number of shares of Parent Common Stock determined in accordance with the applicable FDA Milestone CVR Agreement or Sales Milestone CVR Agreement, as the case may be. 

(iv)    If a Stockholder other than a PSS Party (a “Non-Electing
Stockholder”) fails to deliver to the Company a properly completed Election Form and duly executed Stockholder Agreement on or before 5:00 p.m. Pacific Time on the date which is five (5) Business Days prior to the Closing Date, and
such Non-Electing Stockholder’s Stockholder Agreement is not necessary to fulfill the condition set forth in Section 6.2(j), or Parent otherwise waives the condition set forth in
Section 6.2(j) as to such Non-Electing Stockholder so that the Merger can be consummated, such Non-Electing Stockholder will be deemed to have
made a Cash Election as to such Non-Electing Stockholder’s Per Share Closing Consideration. 

(v)    Notwithstanding any other provision of this Agreement or a CVR Agreement to the contrary, if an Unaffiliated
Stockholder is unable to demonstrate, through the delivery of customary personal representations and certifications, to Parent’s 

  
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reasonable satisfaction prior to the Closing that such Stockholder is an “accredited investor” (as such term is defined in Rule 501(a) of Regulation D under the 1933 Act) as of the
Closing, then, regardless of whether or not such Stockholder has made an Election or executed and delivered a Stockholder Agreement, such Stockholder will be deemed to have made a Cash Election as to such Stockholder’s Per Share Closing
Consideration and Per Share Contingent Consideration (such Stockholder is referred to herein as an “Unaccredited Unaffiliated Stockholder”). Parent may rely on a Stockholder’s representation as to such Stockholder’s
accredited investor status in the Stockholder Agreement, or such other customary evidence of accredited investor status as Parent shall determine in its reasonable discretion to be reliable. Each Non-Electing
Stockholder will also be considered to be an Unaccredited Unaffiliated Stockholder for purposes of clause (vii) below unless Parent otherwise concludes to its reasonable satisfaction that such
Non-Electing Stockholder is an Accredited Unaffiliated Stockholder. 

(vi)    The Company will prepare and deliver to Parent not more than one (1) Business Day prior to the Closing Date
a draft of a spreadsheet (the “Stockholder Spreadsheet”) indicating for each Stockholder as of immediately prior to the Effective Time (i) the name and current address of such Stockholder, (ii) the number of shares of each
class or series of Company Capital Stock held by such Stockholder (iii) such Stockholder’s Election (or, if a Non-Electing Stockholder, such Stockholder’s deemed Election) as to the Per Share
Closing Consideration and Per Share Contingent Consideration, as of the Effective Time, and (iv) number of CVRs issuable to such Stockholder in the Merger; in each case as such Elections have been adjusted pursuant to
Section 2.7(c)(vii) below, as applicable. Parent shall be given the opportunity to review and comment on the draft Stockholder Spreadsheet and discuss same with the Company. The Company will deliver the final Stockholder
Spreadsheet to Parent in connection with the Closing. 
 (vii)    The aggregate amount of cash elected to be received
by all Stockholders making (or being deemed to have made) Cash Elections and Mixed Elections for such Stockholder’s Per Share Closing Consideration is referred to herein as the “Aggregate Elected Cash Closing Merger
Consideration.” Notwithstanding the Elections of all or any Stockholders, but subject to Section 2.7(c)(vii)(B), the Aggregate Elected Cash Closing Merger Consideration payable to Stockholders shall not exceed
$85 million (the “Closing Cash Maximum”). If the Elections would cause the aggregate amount of Cash Closing Merger Consideration to exceed the Closing Cash Maximum, then the Aggregate Elected Cash Closing Merger Consideration
will be deemed to equal the Closing Cash Maximum, and the Elections of all such Stockholders, and the amount of cash payable to each Stockholder making a Cash Election or Mixed Election for its Per Share Closing Consideration, will be adjusted as
follows: 
 (A)    First, the Elections will be adjusted to assure that the Unaccredited
Unaffiliated Stockholders receive only cash; and 
 (B)    Next, to the extent funds comprising
the Closing Cash Maximum are available after giving effect to Section 2.7(c)(vii)(A), the Elections of the Accredited Unaffiliated Stockholders making Cash Elections and Mixed Elections will be adjusted by the Company in
its judgment and reflected on the final Stockholder Spreadsheet so that the amount of cash payable to each such Accredited Unaffiliated Stockholder 

  
 -11- 

 
will be reduced on a pro rata basis based upon each such Accredited Unaffiliated Stockholder’s relative cash Elections (i.e., each such Accredited Unaffiliated Stockholder will
receive an amount out of the Closing Cash Maximum not paid to the Accredited Unaffiliated Stockholders (the “Remaining Closing Cash Maximum”) equal to the product obtained by multiplying the Remaining Closing Cash Maximum by such
Accredited Unaffiliated Stockholder’s Cut Back Percentage); provided that any such Accredited Unaffiliated Stockholder making a Cash Election or Mixed Election shall not, giving effect to Section 2.7(c)(vii)(A) receive
in cash an amount per share less than (1) $1.00 (even if the Remaining Closing Cash Maximum must be increased to achieve such result) or (2) if such Stockholder elected less than $1.00 of cash, such lesser amount. The portion of the Per Share
Closing Consideration to be paid in shares of Parent Common Stock after giving effect to this Section 2.7(c)(viii)(B) shall increase the Stock Election Closing Portion. The Company’s determination of the adjustments to
the Elections as described in this Section 2.7(c)(vii) and reflected in the final Stockholder Spreadsheet delivered to Parent at the Closing shall be conclusive and binding on all parties hereto and on the Stockholders
absent manifest error. 
 (viii)    Each of the PSS Parties has agreed irrevocably to make, and shall be deemed to have
made, a Stock Election with respect to all shares of Company Capital Stock held by any PSS Party for the Per Share Closing Consideration and the Per Share Contingent Consideration payable to the PSS Parties. 

(d)    No fractional shares of Parent Common Stock shall be issued as part of the Merger Consideration. In lieu of any
such fractional share of Parent Common Stock, each holder of Company Common Stock otherwise entitled to a fraction of a share of Parent Common Stock will be entitled to receive a cash payment in an amount, rounded down to the nearest cent, equal to
the product of (i) such fractional part of a share of Parent Common Stock multiplied by (ii) the Parent Stock Value. Such payment will be in addition to, and in no way affect, the Closing Cash Maximum. 

(e)    At the Effective Time, the stock transfer books of the Company shall be closed and there shall be no further
registration of transfers of shares of Company Capital Stock thereafter on the records of the Company. From and after the Effective Time, the holders of certificates representing shares of Company Capital Stock outstanding immediately prior to the
Effective Time shall cease to have any rights with respect to such shares of Company Capital Stock, except as provided in this Agreement or by applicable Law. 

(f)    The shares of Parent Common Stock and CVRs to be issued as part of the Merger Consideration have not been and will
not be registered under the 1933 Act or any other federal or state securities or “blue-sky” laws and regulations, or the securities laws and regulations of any other jurisdiction, and will be subject
to restrictions on transfer imposed by such laws and regulations. Parent may include on any certificates issued which represent such shares of Parent Common Stock or CVRs customary legends referencing such applicable transfer restrictions, and shall
inform its transfer agent of same. 

  
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 2.8.    Company Stock Rights. 

(a)    Company Options. At the Effective Time, each Company Option that is outstanding immediately prior to the
Effective Time, whether vested or unvested, shall be assumed by the Parent and converted to constitute an option to acquire, on the same terms and conditions as were applicable under such Company Option prior to the Effective Time (including terms
and conditions relating to such Stock Option’s term, exercisability, vesting schedule and status as an “incentive stock option” under Section 422 of the Code), except as follows (i) such Company Option will be exercisable
for that number of shares of Parent Common Stock equal to the quotient obtained by dividing the number of shares of Company Common Stock that were purchasable under such Company Option immediately prior to the Effective Time by the Exchange
Ratio, rounded down to the nearest whole number of shares of Parent Common Stock, and (ii) the per share exercise price for the shares of Parent Common Stock issuable upon exercise of such assumed Company Option will be equal to the
product of the exercise price per share of Company Common Stock at which such Company Option was exercisable immediately prior to the Effective Time and the Exchange Ratio, and rounding the resulting exercise price up to the nearest whole cent. No
payment shall be made for fractional shares. The aggregate number of shares of Parent Common Stock issuable upon the exercise of Options assumed by Parent pursuant to this Section shall be referred to in this Agreement as the “Option
Shares.” Any adjustment to an incentive stock option made under this Section shall comply with Section 424(a) of the Code. The Parent’s assumption of each Company Option pursuant to this Section shall be subject to the holder of
such Company Option executing and delivering to the Parent an Option Assumption Agreement in a form mutually agreed by the Parent and Company. Parent will reserve sufficient shares of Parent Common Stock for issuance under this Section 2.8(a).

 (b)    Company Warrants. Each warrant to acquire shares of Company Common Stock (“Company
Warrants”) that is outstanding and unexercised immediately prior to the Effective Time shall, pursuant to a Warrant Assumption Agreement in substantially the form attached hereto as Annex VI (a “Warrant Assumption
Agreement”), to be executed and delivered to the Company by each holder thereof, be assumed and converted at the Effective Time into a warrant to acquire the number of shares of Parent Common Stock specified in such Warrant Assumption
Agreement at the exercise price specified in such Warrant Assumption Agreement (each, a “Parent Warrant”). The number of shares of Parent Common Stock offered to the holders of Company Warrants will be calculated by Parent, in its
reasonable discretion, based on the per share value of the Merger Consideration exchanged for the Company Common Stock pursuant to the Merger and shall have an exercise price for such shares of Parent Common Stock based upon the relative value of
the exercise price of such Company Warrants to the per share value of the Merger Consideration exchanged for the Company Common Stock pursuant to the Merger. If required, each such Company Warrant shall be amended to provide for the issuance of
Parent Common Stock as contemplated by this Section 2.8(b). 
 2.9.    Withholding Rights;
Deductions from Merger Consideration. Each of the Surviving Entity and Parent shall be entitled to deduct and withhold from any payment to any Person under this Agreement such amounts as it is required by Law to deduct and withhold with respect
to the making of such payment or any other Tax withholding obligation with respect to the Merger Consideration. To the extent that amounts are so 

  
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withheld or deducted by the Surviving Entity or by Parent, as the case may be, such withheld amounts shall be treated for all purposes of this Agreement as having been paid to such Person in
respect of which such deduction and withholding was made by the Surviving Entity or by Parent, as the case may be. Parent or the Surviving Entity, as the case may be, shall pay over to the appropriate Governmental Entity all amounts withheld under
this Section 2.9. 
 2.10.    Dissenting Shares. 

(a)    Notwithstanding any provision of this Agreement to the contrary, any shares of Company Capital Stock held by a
Stockholder who demands and perfects appraisal rights for such shares in accordance with the DGCL and who, as of the Effective Time, has not effectively withdrawn or lost such appraisal rights (collectively, “Dissenting Shares”),
shall not be converted into or represent the right to receive any portion of the Merger Consideration pursuant to Section 2.7, but the holder thereof shall only be entitled to such rights as are granted by the DGCL. 

(b)    If any Stockholder who holds Dissenting Shares as of the Effective Time effectively withdraws or loses (through
passage of time, failure to demand or perfect, or otherwise) the right to demand and perfect appraisal rights under the DGCL, then, as of the later of the Effective Time and the occurrence of such event, such holder’s shares that were
Dissenting Shares shall automatically be converted into and represent only the right to receive a portion of the Merger Consideration pursuant to and subject to Section 2.7 without interest thereon upon surrender of the
certificate representing such shares. 
 (c)    The Company shall give Parent (i) prompt written notice of any
demands for appraisal of any shares of Company Capital Stock, withdrawals of such demands, and any other instruments or notices served pursuant to the DGCL on the Company and (ii) the opportunity to participate in all negotiations and
proceedings with respect to demands for appraisal under the DGCL. The Company shall not, except with the prior written consent of Parent, voluntarily make or agree to make any payment with respect to any demands for appraisal of Company Capital
Stock, or settle or offer to settle any such demands. 
 2.11.    Surrender of Certificates and Payment. 

(a)    Payments Administrator. From and after the Effective Time, Parent and Company hereby appoint Acquiom
Clearinghouse LLC to act as payments administrator (the “Payments Administrator”) pursuant to the Payments Agreement in effecting the payment of the applicable Merger Consideration pursuant to this Agreement. Prior to or at the
Effective Time, Parent will deposit with the Payments Administrator such amount of cash and such number of shares of Parent Common Stock that, in the aggregate, is sufficient to pay all Stockholders the Per Share Closing Consideration in accordance
with this Section 2.11. 
 (b)    Exchange Procedures and Payment. With the delivery to
the Stockholders of the Stockholder Agreement and Election forms, the Company or the Payments Administrator will also send to each holder of record of a certificate or certificates (the “Certificates”) representing the outstanding
shares of Company Capital Stock forms of (i) a letter of transmittal (the “Letter of Transmittal”) which shall specify 

  
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that delivery of Certificates shall be effected, and risk of loss and title to the Certificates shall pass, only upon delivery of the Certificates to the Payments Administrator at Closing and
shall be in such form and have such other provisions as Company and Parent may agree and shall contain a form of affidavit meeting the requirements of Section 2.11(c), (ii) instructions for use in effecting the
surrender of the Certificates in exchange for the amount of the Merger Consideration payable in exchange therefore, and (iii) any applicable notice required by the DGCL in connection with the actions taken by the Stockholders or
dissenters’ rights. The Letter of Transmittal shall indicate, among other things, that applicable withholding Taxes with respect to payments on account of shares of Company Capital Stock that were obtained upon the exercise of Company Stock
Rights will be withheld, if required, from the Merger Consideration otherwise payable to each holder thereof in connection with the Merger and that other amounts may be withheld from any Stockholder in accordance with the terms of this Agreement. As
promptly as is practicable following the Effective Time, and upon delivery to the Payments Administrator of a duly completed and executed Letter of Transmittal, together with surrender of a Certificate (or Certificates) for cancellation (or an
affidavit pursuant to Section 2.11(c)), the Payments Administrator shall deliver to each Stockholder (A) the portion of the Merger Consideration payable pursuant to Section 2.7, and (B) a
certificates or certificates representing the shares of Parent Common Stock payable at the Effective Time pursuant to Section 2.7. The Certificate(s) so surrendered shall be canceled. Following the Effective Time, until so
surrendered, each outstanding Certificate that, prior to the Effective Time, represented shares of Company Capital Stock will be deemed from and after the Effective Time, for all corporate purposes, to evidence only the right to receive the portion
of Merger Consideration as provided in Section 2.7. 
 (c)    Lost, Stolen or Destroyed
Certificates. In the event any Certificates shall have been lost, stolen or destroyed, the Payments Administrator shall issue in exchange for such lost, stolen or destroyed Certificates, upon the making of an affidavit of that fact by the holder
thereof, the Merger Consideration required pursuant to Section 2.7; provided, that Parent may, in its discretion and as a condition precedent to the payment thereof, require the owner of such lost, stolen or
destroyed Certificates to provide an indemnity reasonably acceptable to Parent against any claim that may be made against Parent or the Surviving Entity with respect to the Certificates alleged to have been lost, stolen or destroyed. 

2.12.    Taking of Necessary Action; Further Action. If, at any time after the Effective Time, any further action
is necessary or desirable to carry out the purposes of this Agreement and to vest the Surviving Entity with full right, title and possession to all assets, property, rights, privileges, powers and franchises of the Company and Merger Sub, the
officers and directors of Parent, the Company and Merger Sub are fully authorized in the name of their respective corporations or otherwise to take, and will take, all such lawful and necessary action. 

2.13.    No Liability. Notwithstanding anything to the contrary in this Agreement, neither Parent nor the Surviving
Entity nor any party hereto shall be liable for any amount properly paid to a public official in compliance with any applicable abandoned property, escheat or similar Law. 

2.14.    Tax-Free Reorganization. The parties intend that the Merger will
qualify as a reorganization under Sections 368(a)(1)(A) and 368(a)(2)(E) of the Code and will 

  
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report the Merger for federal and applicable state income tax purposes consistent (and take no tax reporting position inconsistent) with such treatment. No party has any plan or intention to take
any action that would be reasonably likely to cause the Merger to fail to qualify as a reorganization. Notwithstanding any provision of this Agreement, the CVR Agreements or any Elections made pursuant to Election Forms, the allocation as among
cash and Parent Stock of each Milestone Payment payable to Accredited Unaffiliated Stockholders shall be adjusted, by decreasing the cash portion and correspondingly increasing the portion paid in Parent Stock, if and to the extent necessary to
assure that the Stockholders receive sufficient voting stock of Parent such that, when aggregated with the Parent voting stock issued in connection with the Closing and any Milestone Payment previously made, the amount of Parent voting stock is not
less than the minimum amount of such voting stock necessary to satisfy the requirements for qualification as a reorganization under Sections 368(a)(1)(A) and 368(a)(2)(E) of the Code. 

ARTICLE III 
 REPRESENTATIONS AND
WARRANTIES OF THE COMPANY 
 Subject to such exceptions as are disclosed in the disclosure schedule dated as of the date hereof and
delivered herewith to Parent (the “Company Disclosure Schedule”), the Company hereby makes the following representations and warranties to each of Parent and Merger Sub as of the date of this Agreement and as of the Closing Date (as
though made then and as though the Closing Date were substituted for the date of this Agreement throughout this Article III except to the extent such representations and warranties expressly speak as of an earlier date). The Company
Disclosure Schedules shall be arranged in sections corresponding to the applicable sections of this Article III, and the disclosures in any section of the Company Disclosure Letter shall qualify other sections of this Article III to
the extent it is readily apparent from a reading of the disclosure that such disclosure is applicable to such other sections: 

3.1.    Organization, Good Standing and Qualification. The Company is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to carry on its business as now conducted. The Company is duly qualified to transact business and is in good standing in each
jurisdiction in which the failure to so qualify would have a Company Material Adverse Effect. 

3.2.    Capitalization, Dividends and Voting Rights. 

(a)    As of the date of this Agreement, the authorized and issued capital of the Company consists of: 

(i)    139,752,876 shares of Company Preferred Stock, (1) 4,465,507 of which has been designated Series A-1 Preferred Stock, all of which is issued and outstanding; (2) 2,775,567 of which has been designated Series A-2 Preferred Stock, all of which is issued and outstanding; (3)
29,265,249 of which has been designated Series B-1 Preferred Stock, all of which is issued and outstanding; (4) 5,842,130 of which has been designated Series C-1
Preferred Stock, all of which is issued and outstanding; (5) 19,584,055 of which has been designated Series D Preferred Stock, all of which is issued and outstanding; (6) 8,593,750 of which has been designated Series E Preferred Stock, all of which
is issued and outstanding; (7) 

  
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14,433,616 of which has been designated Series F Preferred Stock, all of which is issued and outstanding; (8) 30,000,002 of which has been designated Series G Preferred Stock, all of which is
issued and outstanding; and (9) 24,793,000 of which has been designated Series H Preferred Stock, 18,579,713 of which are issued and outstanding. The rights, privileges and preferences of the Company Preferred Stock are as stated in the Twelfth
Amended and Restated Certificate of Incorporation of the Company (the “Restated Certificate”) in the form set forth in Section 3.2(a) of the Company Disclosure Schedule. 

(ii)    325,000,000 shares of Company Common Stock, 15,871,864 shares of which are issued and outstanding. 

(b)    Set forth in Section 3.2(b) of the Company Disclosure Schedule is a true, correct and
complete capitalization table of the Company showing, as of the date of this Agreement, the names of the stockholders of the Company and the number, class and series of the shares of stock held by each stockholder, as well as the percentage
ownership of the Company of each stockholder on a fully-diluted, as-converted into Company Common Stock basis. 

(c)    The outstanding shares of Company Common Stock and Company Preferred Stock are all duly and validly authorized and
issued, fully paid and nonassessable, and were issued in accordance with the registration or qualification provisions of the 1933 Act, and any relevant state securities laws or pursuant to valid exemptions therefrom. 

(d)    Except as set forth in Section 3.2(b) and Section 3.2(d) of the
Company Disclosure Schedule, as of the date of this Agreement, there are no outstanding Company Options, Company Warrants, Company Stock Rights (including conversion or preemptive rights) or agreements for the purchase or acquisition from the
Company of any shares of its Company Capital Stock. 
 (e)    The Company has reserved 15,045,000 shares of Company
Common Stock for issuance to officers, directors, employees and service providers of the Company pursuant to the 2002 Stock Incentive Plan and the 2016 Equity Incentive Plan (each as amended, collectively referred to herein as the “Company
Incentive Plan”), 5,898,117 of which, as of the date of this Agreement, have been issued pursuant to the exercise of stock options, 7,976,896 of which, as of the date of this Agreement, are subject to outstanding stock options and 1,169,987
of which, as of the date of this Agreement, are available for future grants. 
 3.3.    Authorization. 

(a)    Assuming the due authorization, execution and delivery by the other parties hereto and thereto, this Agreement
constitutes, and in the case of the Certificate of Merger and any other Related Agreements to which the Company is a party, will at Closing constitute, valid and legally binding obligations of the Company, enforceable against the Company in
accordance with their respective terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as
limited by laws relating to the availability of specific performance, injunctive relief, or 

  
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other equitable remedies, and (iii) the Certificate of Merger will not be effective until filed with the Secretary of State of the State of Delaware. 

(b)    The Company Board has (i) determined that the Merger is fair to, and in the best interests of, the Company and
its stockholders, (ii) approved this Agreement, the Related Agreements and the transactions contemplated hereby and thereby, including the Merger and (iii) recommended that the stockholders adopt and approve this Agreement, the Related
Agreements and the transactions contemplated hereby and thereby, and approve the Merger. The Company has made available to Parent true and correct copies of the resolutions adopted by the Company Board. The adoption of such resolutions by the
Company Board and the written consent of Stockholders holding a majority of the outstanding shares of Company Common Stock approving this Agreement and the Merger are collectively referred to as the “Transaction Approvals.” The
Transaction Approvals constitute or will constitute as of Closing all necessary corporate and stockholder action on the part of the Company Board and the Stockholders for the authorization, execution and delivery of this Agreement and the Related
Agreements by the Company and the performance by the Company of the Merger and the other transactions contemplated hereby and thereby, and such Transaction Approvals have not been revoked, rescinded or amended. 

3.4.    Consents. 

(a)    No consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing
with, or notice to any Governmental Entity on the part of the Company is required in connection with the execution and delivery of this Agreement and the Related Agreements to which the Company is a party or the consummation of the transactions
contemplated hereby or thereby, except as have already been received or for the filing of the Certificate of Merger with the Secretary of State of Delaware and notices required by the DGCL. 

(b)    Section 3.4(b) of the Company Disclosure Schedule sets forth all notices to, and all necessary consents,
waivers and approvals of, parties to any material Company Contract to which the Company is a party or by which it or its properties are bound that are required thereunder in connection with the Merger, or for any such material Company Contract to
remain in full force and effect without limitation, modification or alteration (including payment of any additional amounts or consideration other than ongoing fees, royalties or payments which the Company would otherwise be required to pay pursuant
to the terms of such material agreement had the transactions contemplated by this Agreement not occurred) after the Effective Time so as to preserve all rights of, and benefits to, the Company under such material Company Contract from and after the
Effective Time. 
 3.5.    Litigation. To the Knowledge of the Company, there is no Proceeding pending against
the Company (a) that questions the validity of this Agreement or any of the Related Agreements, or the right of the Company to enter into such agreements or to consummate the transactions contemplated hereby or thereby, or (b) that might
result, either individually or in the aggregate, in any Company Material Adverse Effect. The Company is not a party or subject to the provisions of any order, writ, injunction, judgment or decree of any court or government agency or instrumentality.
There is no action, suit, proceeding or investigation by the Company currently pending or that the Company currently intends to initiate. 

  
 -18- 

 3.6.    Patents and Trademarks. The Company owns or possesses
sufficient legal rights to (a) all trademarks, service marks, trade names, copyrights, trade secrets, licenses, information and proprietary rights and processes and (ii) to the Company’s Knowledge, all patents and patent rights (such
rights are collectively referred to as the “Company Intellectual Property”) as are necessary to the conduct of the Company’s business as now conducted and as presently proposed to be conducted, without any known conflict with,
or infringement of, the rights of others. To the Company’s Knowledge, no product or service marketed or sold (or proposed to be marketed or sold) by the Company violates any license or infringes any Intellectual Property rights of any other
party. Other than pursuant to the Company Contracts, there are no material outstanding options, licenses, agreements, claims, encumbrances or shared ownership interests of any kind relating to the foregoing, nor is the Company bound by or a party to
any material options, licenses or agreements of any kind with respect to the patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses, information, proprietary rights and processes of any other person or entity. The
Company has not received any communications alleging that the Company has violated or, by conducting its business, would violate any of the patents, trademarks, service marks, trade names, copyrights, trade secrets or other proprietary rights or
processes of any other person or entity. To the Company’s Knowledge, it will not be necessary to use any inventions of any of its employees (or persons it currently intends to hire) made prior to their employment by the Company, except as may
have been assigned to the Company. Each Key Employee has assigned to the Company all intellectual property rights he or she owns that are related to the Company’s business as now conducted. 

3.7.    Compliance with Other Instruments. The Company is not in violation or default in any material respect of
(a) any provision of its Restated Certificate or Amended and Restated Bylaws (the “Bylaws”), (b) any instrument, judgment, order, writ, decree or contract to which it is a party or by which it is bound in writing, or
(c) to its Knowledge, any provision of any federal or state statute, rule or regulation applicable to the Company, except in the case of clauses (b) and (c), for such violations or defaults which would not result in a Company Material
Adverse Effect. The execution, delivery and performance of this Agreement and the Related Agreements, and the consummation of the transactions contemplated hereby and thereby, will not result in any such violation or default or constitute, with or
without the passage of time and giving of notice, (i) an event that results in the creation of any material lien, charge or encumbrance upon any material assets of the Company or (ii) an event that results in the suspension, revocation,
impairment, forfeiture, or non-renewal of any material permit, license, authorization or approval applicable to the Company or its business, except for such results which would not result in a Company Material
Adverse Effect. 
 3.8.    Permits; Compliance with Laws. The Company, to its Knowledge, has all franchises,
permits and licenses necessary for the conduct of its business as currently conducted. The Company is not in default in any material respect under any of such franchises, permits or licenses. The Company, to its Knowledge, is not in violation in any
material respect of any applicable Law in respect of the conduct of its business or the ownership of its properties. 

3.9.    Environmental and Safety Laws. To its Knowledge, the Company is not in violation of any applicable Law
relating to the environment or occupational health and safety. 

  
 -19- 

 3.10.    Title to Property and Assets. Except as set forth on
Section 3.10 of the Company Disclosure Schedule, the Company owns its property and assets free and clear of all Liens, except such Liens that arise in the ordinary course of business and do not materially impair the
Company’s ownership or use of such property or assets. With respect to the property and assets it leases, the Company is in material compliance with such leases and, holds a valid leasehold interest thereon free of any material Liens. All
facilities, equipment, machines, vehicles and other material tangible properties owned, leased or used by the Company in the operation of its business are in good operating condition and repair, consistent with such facility’s or
property’s, as the case may be, age and intended use (ordinary wear and tear excepted), and are useable for the purpose for which they are being used. 

3.11.    Financial Statements. 

(a)    The Company has delivered to Parent copies of the following: (i) the audited financial statements of the
Company for the fiscal year ended December 31, 2015, (ii) the unaudited financial statement of the Company for the twelve months ended December 31, 2016 and (iii) the unaudited financial statements of the Company for the three months
ended March 31, 2017 (collectively, the “Financial Statements”). 
 (b)    The Financial
Statements are accurate and complete in all material respects, are consistent with the books and records of the Company and have been prepared in good faith in accordance with generally accepted accounting principles applied on a consistent basis
throughout the periods indicated, except as indicated therein. The Financial Statements fairly present in all material respects the financial condition and operating results of the Company as of the date, and for the period, indicated therein. 

3.12.    Tax Returns, Payments and Elections. The Company has filed all Tax Returns and reports as required by Law.
These returns and reports are true and correct in all material respects. The Company has paid all Taxes and other assessments due, except those contested by it in good faith. 

3.13.    Labor Agreements and Actions. 

(a)    The Company is not bound by or subject to (and none of its assets or properties is bound by or subject to) any
written contract, commitment or arrangement with any labor union. There is no strike or other labor dispute involving the Company pending, or to the best of the Company’s Knowledge, threatened, that could reasonably be expected to cause a
Company Material Adverse Effect. 
 (b)    To the Company’s Knowledge, no Key Employee, or any group of Key
Employees, currently intends to terminate their employment with the Company, nor does the Company have a present intention to terminate the employment of any of the foregoing. The employment of each officer and Employee of the Company is terminable
at the will of the Company. 
 (c)    To its Knowledge, the Company has complied in all material respects with all
applicable state and federal equal employment opportunity and other laws related to employment. 

  
 -20- 

 3.14.    Subsidiaries. Except as set forth on
Section 3.14 of the Company Disclosure Schedule, the Company does not presently own or control, directly or indirectly, any controlling interest in any other corporation, association or other business entity. The Company is
not a participant in any joint venture, partnership or similar arrangement. 
 3.15.    Changes. Except as
contemplated by this Agreement or as set forth in the Financial Statements, between December 31, 2015 and the date of this Agreement, there has not been: 

(a)    any change in the assets, liabilities, financial condition or operating results of the Company from that reflected
in the Financial Statements, except changes that are not reasonably expected to cause a Company Material Adverse Effect; 

(b)    any damage, destruction or loss that is reasonably expected to cause a Company Material Adverse Effect; 

(c)    any satisfaction or discharge of any material Lien, claim or encumbrance or payment of any material obligation by
the Company; 
 (d)    any declaration, payment, setting aside or other distribution of cash or other property to its
stockholders with respect to its capital stock or other equity securities (including any warrants, options or other rights to acquire its capital stock or other equity securities), other than options granted pursuant to equity/stock incentive plans,
except as set forth on Section 3.15 of the Company Disclosure Schedule; 
 (e)    any material
change to a material contract or agreement by which the Company or any of its assets is bound or subject; 
 (f)    any
material change in any compensation arrangement or agreement with any employee, officer, director or stockholder; 

(g)    any resignation or termination of employment of any officer or Key Employee of the Company; 

(h)    to the Knowledge of the Company, any other event or condition of any character that would result in a Company
Material Adverse Effect; or 
 (i)    any agreement or commitment by the Company to do any of the things described in
this Section 3.15. 
 3.16.    Material Contracts and Agreements. Section 3.16 of
the Company Disclosure Schedule lists all agreements, contracts, leases, liabilities and other legally-binding obligations to which the Company is a party or by which it is bound as of the date of this Agreement (each a ”Company
Contract”) which (i) individually involve an amount in excess of $100,000, (ii) are material to the conduct and operations of its business and properties, (iii) are not terminable in less than twelve months from the date hereof,
(iv) involve any employment bonus or consulting arrangement, whether written or oral, between the Company and any person, (v) involve any material loan, notes, indentures, or instruments relating to or evidencing indebtedness for borrowed
money, or any agreement or instrument evidencing any guaranty by the Company of payment or 

  
 -21- 

 
performance by any other person, (vi) involve any joint venture contract or arrangement or other agreement involving a sharing of profits or expenses to which the Company is a party,
(vii) involve any contracts pursuant to which the Company grants any rights to a third party to use any intellectual property rights of the Company’s or pursuant to which the Company has acquired any rights to use the intellectual property
rights of others, or (viii) involve any agreements limiting the freedom of the Company to compete in any line of business or in any geographic area or with any person. All of such Company Contracts are, to the Knowledge of the Company, binding
and in full force and effect in all material respects and the Company has complied with all material terms of such Company Contracts, and neither the Company, nor, to the Company’s Knowledge, any other party, is in material default of a
material provision thereunder. 
 3.17.    Conflicts of Interest. Other than (i) standard employee benefits
generally made available to all employees and (ii) the purchase of shares of Company Capital Stock and the issuance of Company Options to purchase shares of Company Capital Stock, in each instance, approved by the Company Board, there are no
agreements, understandings or proposed transactions between the Company and any of its officers, directors, or Key Employees, or any Affiliate thereof, except as set forth on Section 3.17 of the Company Disclosure Schedule.

 3.18.    Confidential Information and Invention Assignment Agreements. Each current and former employee,
consultant and officer of the Company has executed an agreement with the Company regarding confidentiality and proprietary information (the “Confidential Information Agreements”). To the Knowledge of the Company, no current or
former Key Employee (which for the purposes of this Section 3.18 only, shall include employees of the Company working in research and development), consultant or officer of the Company has excluded works or inventions from
his or her assignment of inventions pursuant to such Key Employee’s, consultant’s or officer’s Confidential Information Agreements. The Company is not aware that any of its Key Employees, consultants or officers is in violation
thereof. 
 3.19.    Corporate Documents. The Restated Certificate and Bylaws of the Company are in the form made
available to Parent. The minute books of the Company contain the minutes of all meetings of directors and stockholders and all actions by written consent without a meeting by the directors and stockholders since the date of incorporation and
accurately reflects in all material respects all actions by the directors (and any committee of directors) and stockholders with respect to all transactions referred to in such minutes. 

3.20.    Section 280G. Neither the execution of this Agreement nor any of the transactions contemplated by this
Agreement will (either alone or upon the occurrence of any additional or subsequent events): (a) result in “excess parachute payments” within the meaning of Section 280G(b) of the Code; or (b) require a “gross-up” or other payment to any “disqualified individual” within the meaning of Section 280G(c) of the Code. 

3.21.    Reliance. The Company expressly acknowledges and agrees that, except as set forth in Article IV of
this Agreement, neither the Company nor any of its representatives is relying on any other representation or warranty of Parent, Merger Sub or any other Person, including regarding the accuracy or completeness of any such

  
 -22- 

 
other representations or warranties or the omission of any material information, whether express or implied. 

3.22.    Exclusivity of Representations. Except as expressly set forth in this Article III, neither the Company nor
any Person on behalf of Company makes any representation or warranty, express or implied, in respect of Company, Company’s business or in connection with the transactions contemplated by the Related Agreements. 

ARTICLE IV 
 REPRESENTATIONS AND
WARRANTIES OF PARENT AND MERGER SUB 
 Subject to such exceptions as are disclosed in the disclosure schedule dated as of the date hereof
and delivered herewith to Parent (the “Parent Disclosure Schedule”), Parent and Merger Sub jointly and severally make the following representations and warranties to the Company and each Stockholder, as of the date of this Agreement
and as of the Closing Date (as though made then and as though the Closing Date were substituted for the date of this Agreement throughout this Article IV except to the extent such representations and warranties expressly speak as of an
earlier date). The Parent Disclosure Schedule shall be arranged in sections corresponding to the applicable sections of this Article IV, and the disclosures in any section of the Parent Disclosure Schedule shall qualify other sections of this
Article IV to the extent it is readily apparent from a reading of the disclosure that such disclosure is applicable to such other sections: 

4.1.    Organization, Good Standing and Qualification. Parent is a corporation duly organized, validly existing and
in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to carry on its business as now conducted. Parent is duly qualified to transact business and is in good standing in each jurisdiction in
which the failure to so qualify would have a Parent Material Adverse Effect. 
 4.2.    Capitalization, Dividends and
Voting Rights. 
 (a)    The authorized capital of Parent as of the date hereof consists of: 1,000,000,000 shares of
Parent Common Stock, 293,659,022 shares of which are issued and outstanding. 
 (b)    Set forth in
Section 4.2(b) of the Parent Disclosure Schedule is a true, correct and complete capitalization table of the Parent as of the date hereof showing a summary of the number, class and series of the shares of stock held by all
stockholders of Parent, as well as all Parent Stock Rights. 
 (c)    The outstanding shares of Parent Common Stock as
of the date hereof are all duly and validly authorized and issued, fully paid and nonassessable, and were issued in accordance with the registration or qualification provisions of the 1933 Act, and any relevant state securities laws or pursuant to
valid exemptions therefrom. 
 (d)    Except as set forth in Section 4.2(b) and
Section 4.2(d) of the Parent Disclosure Schedule, as of the date hereof there are no outstanding Parent Stock Rights (including conversion or preemptive rights) or agreements for the purchase or acquisition from Parent of
any shares of its Parent Common Stock. 

  
 -23- 

 (e)    Parent has reserved 24,000,000 shares of Parent Common Stock for
issuance to officers, directors, employees and service providers of Parent pursuant to Parent’s 2015 Stock Incentive Plan (as amended, the “Parent Incentive Plan”). As of the date of this Agreement and as of the Closing Date
there are and shall be sufficient ungranted shares of Parent Common Stock available under the Parent Incentive Plan to enable Parent to fulfill its obligations pursuant to Section 2.8. 

(f)    The shares of Parent Common Stock issued pursuant to this Agreement and the CVR Agreements shall be validly issued,
fully paid and nonassessable. Assuming the accuracy of the representations and warranties of the Stockholders in each of the Stockholder Agreements, the offer, sale and issuance of the shares of Parent Common Stock issued pursuant to this Agreement
will be exempt from the registration requirements of the 1933 Act, and from registration and qualification under the registration, permit or qualification requirements of applicable state securities laws. 

4.3.    Authorization. 

(a)    Parent has all requisite corporate power and authority, and Merger Sub has all requisite limited liability company
power and authority, to enter into this Agreement and the Related Agreements to which it is or will be a party and to consummate the transactions contemplated hereby and thereby. All action on the part of Parent, Merger Sub, and their respective
officers, directors and stockholders necessary for the authorization, execution and delivery of and the performance of all obligations of Parent and Merger Sub hereunder and thereunder has been taken or will be taken prior to the Closing. 

(b)    This Agreement has been, and each of the Related Agreements to which Parent or Merger Sub is a party will be at the
Closing, duly executed and delivered by Parent and Merger Sub, and this Agreement constitutes, and in the case of the Related Agreements they will at Closing constitute, valid and legally binding obligations of Parent and Merger Sub, enforceable
against Parent and Merger Sub in accordance with its respective terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights
generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies, and (iii) the Certificate of Merger will not be effective until filed with the Secretary of State
of the State of Delaware. 
 4.4.    Consents. 

(a)    No consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing
with, or notice to any Governmental Entity on the part of Parent or Merger Sub is required in connection with the execution and delivery of this Agreement and the Related Agreements to which Parent or Merger Sub is a party or the consummation of the
transactions contemplated hereby or thereby, except as have already been received or for the filing of the Certificate of Merger with the Secretary of State of Delaware and notices required by the DGCL. 

(b)    Section 4.4(b) of the Parent Disclosure Schedule sets forth all notices to, and all necessary consents,
waivers and approvals of, parties to any material 

  
 -24- 

 
Parent Contract to which Parent is a party or by which it or its properties are bound that are required thereunder in connection with the Merger. 

4.5.    Litigation. To the Knowledge of Parent, there is no Proceeding pending against Parent or any Affiliate
(a) that questions the validity of this Agreement or any of the Related Agreements, or the right of Parent to enter into such agreements or to consummate the transactions contemplated hereby or thereby, or (b) that would be reasonably
likely to result, either individually or in the aggregate, in a Parent Material Adverse Effect. 
 4.6.    Patents
and Trademarks. Parent and its subsidiaries collectively own or possess sufficient legal rights to (a) all material trademarks, service marks, trade names, copyrights, trade secrets, licenses, information and proprietary rights and
processes and (ii) to Parent’s Knowledge, all material patents and patent rights, as are necessary for Parent and its subsidiaries to conduct their business in all material respects as it is now conducted. 

4.7.    Compliance with Other Instruments. Parent is not in violation or default in any material respect of
(a) any provision of its Certificate of Incorporation or Bylaws, each as amended or amended and restated to date, (b) any instrument, judgment, order, writ, decree or contract to which it is a party or by which it is bound in writing, or
(c) to its Knowledge, any provision of any federal or state statute, rule or regulation applicable to Parent, except in the case of clauses (b) and (c), for such violations or defaults which would not result in a Parent Material Adverse
Effect. The execution, delivery and performance of this Agreement and the Related Agreements, and the consummation of the transactions contemplated hereby and thereby, will not result in any such violation or default or constitute, with or without
the passage of time and giving of notice, an event that would reasonably be expected to result in a Parent Material Adverse Effect. 

4.8.    Permits; Compliance with Laws. Parent, to its Knowledge, has all franchises, permits and licenses necessary
for the conduct of its business as currently conducted. Parent is not in default in any material respect under any of such franchises, permits or licenses. Parent, to its Knowledge, is not in violation in any material respect of any applicable Law
in respect of the conduct of its business or the ownership of its properties. 
 4.9.    Financial Statements.

 (a)    Parent has made available to the Company its preliminary unaudited
pre-tax consolidated balance sheet as of December 31, 2016 and March 31, 2017 and its preliminary unaudited pre-tax consolidated income statement for the
twelve months ended December 31, 2016 and for the three months ended March 31, 2017 (collectively, the “Parent Financial Statements”). 

(b)    The Parent Financial Statements are accurate and complete in all material respects, are consistent with the books
and records of Parent and have been prepared in good faith in accordance with generally accepted accounting principles applied on a consistent basis throughout the periods indicated, except as indicated therein and subject to the exceptions set
forth on Section 4.9 of the Parent Disclosure Schedule. The Parent Financial Statements fairly present the consolidated financial 

  
 -25- 

 
condition and operating results of Parent and its subsidiaries as of the date, and for the period, indicated therein. 

4.10.    Corporate Documents. The Certificate of Incorporation or Bylaws, each as amended or amended and restated
to date, of Parent are in the form made available to the Company. The minute books of Parent made available to the Company contain the minutes of all meetings of directors and stockholders and all actions by written consent without a meeting by the
directors and stockholders since the date of incorporation and accurately reflect in all material respects all actions by the directors (and any committee of directors) and stockholders with respect to all transactions referred to in such minutes.

 4.11.    Tax Returns, Payments and Elections. Parent has filed all material Tax Returns and reports as
required by Law. Such returns and reports are true and correct in all material respects. Parent has paid all material Taxes and other assessments due, except those contested by it in good faith. 

4.12.    Reliance. Parent and Merger Sub expressly acknowledge and agree that, except as set forth in Article
III of this Agreement, none of Parent, Merger Sub or any of their respective representatives is relying on any other representation or warranty of Company or any other Person, including regarding the accuracy or completeness of any such other
representations or warranties or the omission of any material information, whether express or implied. 

4.13.    Exclusivity of Representations. Except as expressly set forth in this Article IV, neither Parent nor
Merger Sub, nor any Person on behalf of Parent or Merger Sub, makes any representation or warranty, express or implied, in respect of Parent, Merger Sub, their respective businesses or in connection with the transactions contemplated by the Related
Agreements. 
 ARTICLE V 

CERTAIN COVENANTS 

5.1.    Company Stockholder Approval. 

(a)    At a time mutually agreeable to Parent and the Company after the execution of this Agreement, the Company shall
submit this Agreement, and the transactions contemplated hereby to its Stockholders for approval and adoption as provided by the DGCL and the Company’s Restated Certificate and Bylaws. The Company Board has approved this Agreement and declared
its advisability, and unanimously recommended that the Stockholders vote in favor of and adopt and approve this Agreement. The Company shall use its commercially reasonable efforts to solicit and obtain the written consent of not less than the
Stockholders holding a majority of the outstanding shares of Company Common Stock to approve and adopt the Agreement and approve the Merger and to enable the Closing to occur as promptly as reasonably practicable. The Company shall give the
Stockholders sufficient notice to enable each Stockholder to exercise and perfect appraisal rights, pursuant to Section 262 of the DGCL, prior to Closing. 

(b)    In connection with such Stockholder approval and as soon as practicable after the execution of this Agreement, the
Company shall prepare, with the 

  
 -26- 

 
cooperation of Parent, an information statement (the “Information Statement”) for purposes of soliciting such written consent of the Stockholders, which shall include a statement
to the effect that the Company Board has unanimously recommended that the Stockholders vote in favor of and adopt and approve this Agreement. Anything to the contrary contained herein notwithstanding, the Company shall not include in the Information
Statement any information with respect to Parent or its Affiliates or associates, the form and content of which information shall not have been approved by Parent prior to such inclusion. The Information Statement shall be accompanied by a form of
Stockholder Agreement and attached Election Form, and the Company shall use its commercially reasonable efforts to obtain an executed Stockholder Agreement from each Stockholder. The Stockholder Agreement shall contain as to each Stockholder party
thereto: (i) approval of this Agreement and the Merger, (ii) appointment of the Stockholder Representative for purposes of this Agreement and the CVR Agreements, (iii) such Stockholder’s Election as to the Per Share Merger
Consideration and Per Share Contingent Consideration, (iv) a Letter of Transmittal, and (v) a release, with customary exclusions, by such Stockholder of any and all claims related to or that arise because of such Stockholder’s
ownership of Company Capital Stock against the Company, Parent, Merger Sub, the Surviving Entity, each other Stockholder and the current and former officers, directors, agents and Affiliates of such parties. 

5.2.    Conduct of Business of the Company. During the period from the date of this Agreement and continuing until
the earlier of the termination of this Agreement and the Effective Time, the Company will (except as contemplated by this Agreement or to the extent that Parent shall otherwise consent in writing) carry on its business in the usual and ordinary
course in substantially the same manner as heretofore conducted or as directed Parent, pay its debts and Taxes in accordance with past practice, pay or perform other obligations in accordance with past practice and use its commercially reasonable
efforts consistent with past practice and policies to preserve intact its present business organization, keep available the services of its present officers and key employees and preserve its relationships with customers, suppliers, distributors,
licensors, licensees, and others having business dealings with it. The Company shall promptly notify Parent of any Company Material Adverse Effect. Without limiting the foregoing and except as expressly contemplated by this Agreement, the Company
shall not, without the prior written consent of Parent, do any of the following: 
 (a)    make any payments or enter
into any commitment or transaction outside of the ordinary course of business consistent with past practices or waive or release any right or claim in excess of $25,000 in any individual case; 

(b)    amend or otherwise change the Company’s Restated Certificate or Bylaws; 

(c)    declare, set aside, make or pay any dividend or other distribution, payable in cash, stock, property or otherwise,
with respect to any Company Capital Stock; 
 (d)    issue, grant, deliver or sell, or authorize or propose the
issuance, grant, delivery or sale of, or purchase or propose the purchase of, any Company Capital Stock or Company Stock Rights except for: (i) the issuance of Company Common Stock upon exercise or conversion of presently outstanding Company
Stock Rights; provided, that (A) the Company timely pays in cash all applicable Taxes required to be withheld 

  
 -27- 

 
and paid in connection with such exercise or conversion, (B) the amount of such applicable Taxes is contributed to the Company in cash by the Person exercising or converting such Company
Stock Right, and (C) the Company promptly notifies Parent of such exercise or conversion); (ii) Company Options granted to attract new employees and consultants to serve the Company, provided that (A) in no event may the aggregate number
of shares of Company Common Stock issued or issuable in connection with such awards exceed 600,000 and (B) such stock options shall have a vesting schedule that is no more favorable to the recipient thereof than vesting over four
(4) years, with 25% of the underlying shares vesting on the first anniversary of the vesting commencement date and 1/48th of the amount vesting each month thereafter; (iii) two Company Option awards for up to an aggregate of an additional
3,525,000 shares of Company Common Stock as described on Section 5.2(d) of the Company Disclosure Schedule, provided that such stock options shall have (A) a vesting schedule no more favorable to the recipient thereof
than vesting over four (4) years, with 25% of the underlying shares vesting on the first anniversary of the vesting commencement date and 1/48th of the amount vesting each month thereafter and (B) a vesting commencement date no earlier
than October 17, 2016, except that Fred A. Middleton shall have vesting commencement date of March 21, 2016; and (iv) the issuance of Preferred Stock contemplated by that certain Series H Preferred Stock Purchase Agreement, dated as
of March 8, 2017, by and among the Company and the investor named therein. 
 (e)    acquire or agree to acquire by
merging or consolidating with, or by purchasing any assets or equity securities of, or by any other manner, any business or any Person or division thereof, or otherwise acquire or agree to acquire outside of the ordinary course of business
consistent with past practice any assets in any amount, or in the ordinary course of business in an amount in excess of $10,000 in the case of a single transaction or in excess of $20,000 in the aggregate; 

(f)    Sell, transfer, lease, license, loan, mortgage, encumber or otherwise dispose of any of its properties or assets
except in the ordinary course of business consistent with past practice; 
 (g)    hire or engage any employees or
consultants, or encourage any Employees or consultants to resign from the Company, or promote any Employees or change the employment status or titles of any of the Employees, except for the hiring or promotion of employees or engagements of
consultants in the ordinary course of business at compensation rates comparable to other Employees at similar levels; 

(h)    increase, or agree to increase, the compensation payable, or to become payable, to its officers or Employees, or
grant any severance or termination pay to, or enter into any employment or severance agreement with, any of its directors, officers or other Employees, or establish, adopt, enter into or amend any collective bargaining, bonus, profit sharing,
thrift, compensation, stock option, restricted stock, pension, retirement, deferred compensation, employment, termination, severance or other plan, agreement, trust, fund, policy or arrangement for the benefit of any director, officer or employee;

 (i)    incur any indebtedness for borrowed money or issue any debt securities or assume, guarantee or endorse, or
otherwise as an accommodation become responsible for, the obligations of any Person, or make any loans or advances, except 

  
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accounts payable arising in the ordinary course of business consistent with past practices; 

(j)    waive or release any material right or claim; 

(k)    materially amend or terminate any Company Contract; 

(l)    enter into any contract or agreement material to the business, results of operations or financial condition of the
Company; 
 (m)    fail to maintain its equipment and other assets in good working condition and repair according to the
standards it has maintained up to the date of this Agreement, subject only to ordinary wear and tear; 
 (n)    take any
action that would reasonably be expected to cause a breach of or to have been a breach of any of the provisions of Section 3.15 had such action occurred after December 31, 2015 and prior to the date of this Agreement
(without regard for disclosures on the Company Disclosure Schedule); or 
 (o)    take, or agree in writing or otherwise
to take, any of the actions described in clauses (a) through (n) above, or any other action that would prevent the Company from performing or cause the Company not to perform its obligations hereunder. 

5.3.    Access to Information. Subject to applicable Law, the Company shall provide Parent and its accountants,
legal counsel, and other representatives reasonable access during normal business hours during the period prior to the Effective Time to (a) all of the properties, facilities, books, agreements, records, customers and Employees of the Company
and (b) all other information concerning the business, finances, properties, products, services, technology and personnel of the Company as Parent may reasonably request. The Company agrees to provide Parent and its accountants, legal counsel,
and other representatives copies of internal financial statements promptly upon request. No information or knowledge obtained in any investigation pursuant to this Section 5.3 or otherwise shall affect or be deemed to
modify or qualify any representation or warranty of the Company or the conditions to the obligations of the parties to consummate the Merger. 

5.4.    Public Disclosure. Except as contemplated by this Agreement or as otherwise required by Law (including
applicable securities Laws) or, as to Parent, by regulatory authority, no disclosure (whether or not in response to an inquiry) of the subject matter of this Agreement shall be made prior to the Effective Time by any party hereto (including any
third party representatives of Parent or Company) (other than disclosures to Stockholders in connection with the approval of this Agreement, to the legal, tax and other advisors of any party, and as otherwise necessary in order to seek and obtain
the consents and approvals required by Section 5.5) unless approved by Parent and the Company prior to release; provided that such approval shall not be unreasonably withheld, conditioned or delayed. 

5.5.    Consents and Approvals. The Company shall promptly apply for or otherwise seek and use its commercially
reasonable efforts to promptly obtain all consents and approvals required to be obtained by it in connection with the Merger, 

  
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including all consents, waivers, or approvals under any of the agreements to which the Company is a party or by which they or their properties or assets are bound in order to preserve the
benefits thereunder for the Surviving Entity and otherwise in connection with the Merger. 
 5.6.    Conditions to
the Merger; Further Assurances. Each of the parties to this Agreement (other than the Stockholder Representative) shall use its commercially reasonable efforts to: (a) effectuate the transactions contemplated hereby and to fulfill and cause
to be fulfilled the conditions to closing under this Agreement; (b) comply promptly with all legal requirements which may be imposed on such party with respect to the Merger and will promptly cooperate with and furnish information to any other
party hereto in connection with any such requirements imposed upon such other party in connection with the Merger; (c) obtain and make (and will cooperate with the other parties in obtaining or making) any consent, authorization, order or
approval of, or any registration, declaration, or filing with, or an exemption by, any Governmental Entity, or other third party, required to be obtained or made by such party or its subsidiaries in connection with the Merger or the taking of any
action contemplated thereby or by this Agreement; and (d) at the reasonable request of another party hereto, execute and deliver such other instruments and do and perform such other acts and things as may be reasonably necessary or desirable
for effecting completely the consummation of the Merger and the other transactions contemplated by this Agreement and the Related Agreements. 

5.7.    Notification of Certain Matters. The Company shall give prompt written notice to Parent, and Parent shall
give prompt written notice to the Company, of: (i) the occurrence or non-occurrence of any event which is likely to cause any representation or warranty of the Company, on the one hand, or Parent or
Merger Sub, on the other hand, contained in this Agreement to be untrue or inaccurate in any material respect at or prior to the Effective Time such that the condition in Section 6.1(a) shall not be met; (ii) any
failure of the Company or Parent, as applicable, to comply with or satisfy in any material respect any covenant, condition or agreement to be complied with or satisfied by it hereunder such that the condition in
Section 6.1(b) shall not be met; and (iii) any event, condition, fact or circumstance that would reasonably be expected to make the timely satisfaction of any of the conditions set forth in Article VI incapable
of satisfaction; provided, that the delivery of any notice pursuant to this Section 5.7 shall not be deemed to be a waiver of or otherwise affect any condition of closing of the party receiving such notice. 

5.8.    No Solicitation. 

(a)    Until the earlier of the Effective Time and the date of termination of this Agreement pursuant to
Section 8.1, neither the Company nor any of its officers, directors, Employees, stockholders, Affiliates, financial advisors or representatives (collectively, the “Representatives”) shall, directly or
indirectly, take any of the following actions with any Person other than Parent and its designees: (i) solicit, initiate, entertain or agree to any proposals or offers from any Person relating to (A) any merger, share exchange, business
combination, reorganization, consolidation or similar transaction involving the Company, (B) the acquisition of beneficial ownership of any equity interest in the Company, whether by issuance by the Company or by purchase (through a tender
offer, exchange offer, negotiated purchase or otherwise) from the stockholders of the Company or otherwise, (C) the license or transfer of all or a material portion of the 

  
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assets of the Company or (D) any transaction that may be inconsistent with or that may have an adverse effect upon the Merger (any of the transactions described in clauses (A) through
(D), a “Third-Party Acquisition”); or (ii) participate in any discussions or negotiations regarding, or furnish to any Person any information with respect to, or otherwise cooperate with, facilitate or encourage any effort or
attempt by any Person to do or seek, a Third-Party Acquisition. 
 (b)    If the Company or any Representative receives
an unsolicited inquiry, proposal or offer relating to a Third-Party Acquisition from any Person, the Company will (i) promptly notify Parent of the same and the material details thereof and the Company shall be permitted to provide a response
without breaching this Section 5.8; provided that the response is limited to informing the initiator of such inquiry, proposal or offer that the Company is unable to respond further at this time, and (ii) keep
Parent informed of the status thereof. 
 (c)    The parties hereto agree that irreparable damage may occur in the event
that the provisions of this Section 5.8 were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed by the parties that Parent shall be entitled to seek an immediate
injunction or injunctions, without the necessity of proving the inadequacy of money damages as a remedy and without the necessity of posting any bond or other security, to prevent breaches of the provisions of this
Section 5.8 and to enforce specifically the terms and provisions hereof in any court of the United States or any state having jurisdiction, this being in addition to any other remedy to which Parent may be entitled at law
or in equity. Without limiting the foregoing, it is understood that any violation of the restrictions set forth above by any officer, director or Employee of the Company shall be deemed to be a breach of this Agreement by the Company. 

5.9.    Intentionally Deleted. 

5.10.    Confidentiality. The parties acknowledge that the Company and Parent have previously executed an Exclusive Co-Development Agreement, dated as of September 2, 2016 (the “Confidentiality Agreement”), which Confidentiality Agreement will continue in full force and effect in accordance with its terms.

 5.11.    Resignation of Officers and Directors. The Company shall obtain the resignations of all officers and
directors of the Company (from their positions as officers and directors) as Parent designates in writing, effective as of the Effective Time. 

5.12.    D&O Indemnification. 

(a)    For six (6) years from and after the Effective Time, Parent shall indemnify, defend, and hold harmless the
current and former directors and officers of the Company (the “D&O Indemnified Parties”) in respect of acts or omissions occurring at or prior to the Effective Time to the fullest extent permitted by Delaware Law or provided
under the Company’s Restated Certificate and Bylaws as in effect on the date of this Agreement and pursuant to any indemnity agreements between the Company and such Person as in effect on the date of this Agreement. Parent shall cause to be
maintained in effect provisions in the Surviving Entity’s certificate of incorporation and bylaws regarding elimination of liability of directors, indemnification of directors and officers and employees and advancement of expenses that are no
less advantageous to the D&O 

  
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Indemnified Parties than the corresponding provisions in the Company’s Restated Certificate and Bylaws in existence as of the date of this Agreement. The obligations set forth in this
Section 5.12 shall not be terminated, amended or otherwise modified in any manner that adversely affects any D&O Indemnified Parties without the consent of such affected D&O Indemnified Parties. The rights of the
D&O Indemnified Parties under this Section 5.12 shall be in addition to, and not in substitution for, any other rights that such Persons may have under the Company’s Restated Certificate, Bylaws, and any and all
indemnification agreements of or entered into by the Company, or applicable Law. 
 (b)    This
Section 5.12 shall survive the consummation of the Merger and the Effective Time, is intended to benefit and may be enforced by the Company, Parent, the Surviving Entity and the D&O Indemnified Parties, and shall be
binding on all successors and assigns of Parent and the Surviving Entity. 
 (c)    Prior to the Effective Time, the
Company shall purchase a six-year extended reporting period or tail policy insuring the current and former officers or directors of the Company for the current program of directors’ and officers’
liability insurance maintained by the Company which shall be effective commencing with the Effective Time and ending six years thereafter and which shall afford coverage for actual or alleged acts or omissions occurring at or prior to the Effective
Time. The provisions of this Section 5.12(c) are intended to be for the benefit of, and shall be enforceable by, each of the current and former directors and officers of the Company, his or her heirs and his or her
representatives and are in addition to, and not in substitution for, any other rights to indemnification or contribution that any such person may have. 

5.13.    Financial Statements. Until the date that Parent completes an initial public offering, Parent shall
furnish to each Threshold Accredited Unaffiliated Stockholder, as soon as practicable after the end of each fiscal year of Parent, and in any event within 120 days thereafter, a balance sheet of Parent as at the end of such fiscal year and a
statement of income and cash flows of the Parent for such year, all prepared in accordance with GAAP, consistently applied (except as noted therein) and setting forth in each in comparative form the figures for the previous fiscal year, all in
reasonable detail. Such financial statements shall be accompanied by a report and opinion thereon by independent public accountants selected by the board of directors of Parent. 

ARTICLE VI 
 CONDITIONS TO THE
MERGER 
 6.1.    Conditions to the Obligations of the Company. The obligations of the Company to consummate the
Merger and the transactions contemplated by this Agreement shall be subject to the satisfaction at or prior to the Closing of each of the following conditions, any of which may be waived, in writing, exclusively by the Company: 

(a)    Representations and Warranties. The representations and warranties of Parent and Merger Sub contained in
this Agreement shall have been true and correct (in the case of representations and warranties qualified as to materiality) or true and correct in all material respects (in the case of other representations and warranties) on and as of the date of
this Agreement and shall be so true and correct on and as of the Closing Date with the same force and effect as if made on and as of the 

  
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Closing Date, except for those representations and warranties that address matters only as of a particular date (which shall remain so true and correct as of such date). 

(b)    Agreements and Covenants. Parent and Merger Sub shall have performed or complied in all material respects
with their covenants and obligations under this Agreement required to be performed or complied with by them on or prior to the Closing Date. 

(c)    No Material Adverse Effect. There shall not have occurred any events, occurrences, changes, effects or
conditions of any character that, individually or in the aggregate, have had or would reasonably be expected to have a Parent Material Adverse Effect. 

(d)    Closing Certificate. Parent shall have executed and delivered to the Company a certificate of Parent,
executed by an appropriate officer of Parent, that each of the conditions set forth in Sections 6.1(a) and (b) has been satisfied in all respects. 

(e)    Secretary’s Certificate. Parent shall have delivered to the Company a certificate of Parent and Merger
Sub executed by the Secretary of the Company and or similar officer of Merger Sub, dated as of the Closing Date, certifying: (i) approval of this Agreement and the Related Agreements and the Merger and other transactions contemplated hereby and
thereby, by all necessary corporate or limited liability approvals of Parent and Merger Sub, (ii) Parent’s Certificate of Incorporation and Bylaws, each as amended or amended and restated to date, and (iii) the name, title, incumbency
and signatures of the officers authorized to execute this Agreement and the Related Agreements to which Parent and Merger Sub are a party. 

(f)    Parent Options. Parent shall have delivered to the Company evidence reasonably satisfactory to the Company
of the approval and authorization of the Parent Options. 
 (g)    No Injunctions or Restraints; Illegality. No
temporary restraining order, preliminary or permanent injunction or other order issued by any court of competent jurisdiction or other legal or regulatory restraint or prohibition preventing the consummation of the Merger shall be in effect, and
there shall be no pending action, proceeding or other application before any Governmental Entity seeking any such order, restraint or prohibition. 

(h)    Legal Action. There shall not be any threatened or pending action, proceeding or other application before
any court or Governmental Entity brought by any Person or Governmental Entity challenging or seeking to restrain or prohibit the consummation of the Merger or the other transactions contemplated by this Agreement. 

(i)    Funding of Stockholder Representative Account. The Company shall have deposited with the Stockholder
Representative the sum of $500,000 (the “Expense Fund”) to be utilized to pay the fees of the Stockholder Representative and to be used by the Stockholder Representative to pay its third party costs and expenses. Neither the Company
nor the Stockholders will receive any interest or earnings on the Expense Fund and irrevocably transfer and assign to the Stockholder Representative any ownership right that they may otherwise have had in any such interest or earnings.

  
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The Stockholder Representative will not be liable for any loss of principal of the Expense Fund other than as a result of its gross negligence or willful misconduct. The Stockholder
Representative will hold these funds separate from its corporate funds, will not use these funds for its operating expenses or any other corporate purposes and will not voluntarily make these funds available to its creditors in the event of
bankruptcy. The Stockholder Representative will have no responsibility for any tax reporting or withholding with respect to the Expense Fund or the distribution thereof. Upon the distribution of the FDA Milestone Payment, or on January 1, 2023
if the FDA Milestone (as defined in the FDA Milestone CVR Agreement and the Unaccredited CVR Agreement) has not been achieved, any amount then remaining on deposit with the Stockholder Representative in excess of $250,000 (after payment of any
pending Representative Losses) shall be paid over to Parent by the Stockholder Representative, and at such time as the Stockholder Representative determines that the services of the Stockholder Representative are no longer required pursuant to the
terms of this Agreement and the agreements ancillary hereto, any amount then remaining on deposit with the Stockholder Representative shall be paid over to Parent by the Stockholder Representative. 

6.2.    Conditions to the Obligations of Parent and Merger Sub. The obligations of Parent and Merger Sub to
consummate the Merger and the transactions contemplated by this Agreement shall be subject to the satisfaction at or prior to the Closing of each of the following conditions, any of which may be waived, in writing, exclusively by Parent: 

(a)    Representations and Warranties. The representations and warranties of the Company contained in this
Agreement shall have been true and correct (in the case of representations and warranties qualified as to materiality) or true and correct in all material respects (in the case of other representations and warranties) on and as of the date of this
Agreement and shall be so true and correct on and as of the Closing Date with the same force and effect as if made on and as of the Closing Date, except for those representations and warranties that address matters only as of a particular date
(which shall remain so true and correct as of such date). 
 (b)    Agreements and Covenants. The Company shall
have performed or complied in all material respects with its covenants and obligations under this Agreement required to be performed or complied with by it on or prior to the Closing Date. 

(c)    No Material Adverse Effect. There shall not have occurred any events, occurrences, changes, effects or
conditions of any character that, individually or in the aggregate, have had or would reasonably be expected to have a Company Material Adverse Effect. 

(d)    Stockholder Approval; Dissenters’ Rights. The Transaction Approvals shall have been obtained and shall
be in full force and effect. Stockholders holding at least a majority of the outstanding shares of Company Common Stock shall have approved this Agreement, the Merger and the transactions contemplated hereby and thereby. Stockholders holding not
more than 1% of the outstanding shares of Company Common Stock shall have exercised, or have continuing rights to exercise, appraisal or dissenters’ rights under the DGCL with respect to the transactions contemplated by this Agreement. 

  
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 (e)    Closing Certificate. The Company shall have executed and
delivered to Parent a certificate of the Company, executed by the Chief Executive Officer of the Company, that each of the conditions set forth in Sections 6.2(a)-(d) has been satisfied in all respects (the “Closing
Certificate”). 
 (f)    Secretary’s Certificate. The Company shall have delivered to Parent a
certificate of the Company executed by the Secretary of the Company, dated as of the Closing Date, certifying: (i) the Transaction Approvals, (ii) the Company’s Restated Certificate and Bylaws, and (iii) the name, title,
incumbency and signatures of the officers authorized to execute this Agreement and the Related Agreements to which the Company is a party. 

(g)    Third-Party Consents. Parent shall have been furnished with evidence reasonably satisfactory to it that the
Company has obtained the consents, approvals and waivers set forth on Section 6.2(g) of the Company Disclosure Schedule. 

(h)    Terminations; Notices. Parent shall have been furnished evidence reasonably satisfactory to it that
(x) except with regards to Company Options, all Company Stock Rights have been exercised or terminated at or prior to the Effective Time and that there are no Company Stock Rights outstanding as of the Effective Time, and (y) all required
notifications of the Merger and the other transactions contemplated hereby to the holders of Company Common Stock and Company Stock Rights have been properly delivered. 

(i)    Resignations. Parent shall have received resignation letters executed and delivered by the directors and
officers of the Company as have been identified by Parent prior to the Closing Date. 
 (j)    Stockholder
Agreement. Parent shall have received a duly executed Stockholder Agreement from each Stockholder; provided, however, that if despite the exercise of commercially reasonable efforts the Company is unable to obtain such Stockholder
Agreements from all Stockholders, this condition shall be deemed satisfied if such Stockholder Agreements have been obtained from all Stockholders other than Stockholders holding in the aggregate not more than 50,000 shares of Company Capital Stock.

 (k)    Legal Action. There shall not be any threatened or pending action, proceeding or other application
before any court or Governmental Entity brought by any Governmental Entity challenging or seeking to restrain or prohibit the consummation of the Merger or the other transactions contemplated by this Agreement, or seeking to obtain any material
damages from Parent, Merger Sub or the Company as a result of the Merger or such other transactions. 
 (l)    No
Injunctions or Restraints; Illegality. No temporary restraining order, preliminary or permanent injunction or other order issued by any court of competent jurisdiction or other legal or regulatory restraint or prohibition preventing the
consummation of the Merger shall be in effect, and there shall be no pending action, proceeding or other application before any Governmental Entity seeking any such order, restraint or prohibition. 

  
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 ARTICLE VII 

INDEMNIFICATION 

7.1.    General; Survival of Representations and Warranties. The Unaffiliated Stockholders shall indemnify, defend
and hold harmless Parent, the Surviving Entity, and each of their respective directors, officers, employees, representatives and other Affiliates (the “Parent Indemnitees”), from and against the Indemnification Percentage of Losses
as described in this Article VII (“Indemnifiable Losses”), subject to the provisions set forth below, including the limitations described in Section 7.3 below. For purposes of determining
Indemnifiable Losses, the representations and warranties of the Company set forth in Article III of this Agreement and the covenants of the Company set forth in this Agreement shall survive the execution and delivery of this Agreement, any
investigation by or on behalf of Parent or Merger Sub, and the effectiveness of the Merger, and shall terminate at 11:59 P.M. Pacific time on the date that is twelve (12) months following the Closing Date (such date, the “Expiration
Date”), except with respect to any representation as to which Parent shall have provided written notice of an indemnification claim to the Stockholder Representative prior to such termination as set forth herein. 

7.2.    Indemnifiable Losses. The Indemnifiable Losses shall consist of any Losses resulting from or arising out of
the following: 
 (a)     the failure of any representation or warranty of the Company set forth in Article III
of this Agreement to be true and correct as of the date of this Agreement and as of the Closing Date, or, with respect to any such representation or warranty that addresses matters only as of a particular date, the failure of such representation or
warranty to be true and correct as of such particular date; 
 (b)     any failure by the Company to fully perform,
fulfill or comply with any covenant set forth herein; 
 (c)     any Dissenting Share Payments; 

(d)     any claims by any current or former holder of Company Capital Stock, Company Options, Company Warrants or other
Company Stock Rights relating to or arising out of the Merger, this Agreement, the transactions contemplated thereby, including the allocation of the Merger Consideration, or any Person’s status as an equity holder or ownership of equity
interests in the Company at any time at or prior to the Closing Date, whether for breach of fiduciary duty or otherwise; and 

(e)     any claim made by any Stockholder based upon any alleged breach of fiduciary or other duty by any officer,
director or stockholder of the Company in connection with this Agreement or the transactions contemplated hereby, or any claims by any officer, director or Stockholder to indemnification by the Company or the Surviving Entity in the Merger with
respect to any such claims. 
 7.3.    Limitations. 

(a)     The liability of the Unaffiliated Stockholders for Indemnifiable Losses under this Article VII shall be
satisfied solely by deduction and set-off of amounts which may otherwise be payable to the Unaffiliated Stockholders in connection with the 

  
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achievement of the FDA Milestone (as defined in the FDA Milestone CVR Agreement and the Unaccredited CVR Agreement). The right of Parent to set-off such
liability herein shall be the sole and exclusive remedy of the Parent Indemnitees after the Closing with respect to this Article VII; provided, that Parent may seek equitable relief, including the remedies of specific performance and
injunction, with respect to the breach of any covenant or agreement to be performed by the Company. 
 (b)     (ii)No
claim may be made by any Parent Indemnitee for indemnification pursuant to this Article VII unless and until (A) the amount of Indemnifiable Losses related to any individual claim exceeds $150,000 (provided that such claims shall be
aggregated for the purposes of determining whether the Deductible has been reached); and (B) the aggregate amount of Indemnifiable Losses exceeds an amount equal to $1,000,000 (the “Deductible”), at which point the Unaffiliated
Stockholders shall be liable for only those Indemnifiable Losses in excess of the Deductible. 
 (c)     The
indemnification obligations of the Unaffiliated Stockholders under this Agreement are subject to the following limitations: 

(i)    The FDA Milestone Payment payable to Unaffiliated Stockholders shall serve as the sole and exclusive source of
funding for any Indemnifiable Losses under this Agreement; and 
 (ii)    The Unaffiliated Stockholders shall not be
required to indemnify any Parent Indemnitees for amounts in the aggregate in excess of an amount equal to $16,000,000. 

(d)     Notwithstanding the foregoing provisions of this Section 7.3, the limitations of this
Section 7.3 shall not apply with respect to a claim of fraud or intentional misrepresentation against the Person who committed such fraud or intentional misrepresentation. 

(e)     The amount of any Indemnifiable Losses shall be net of any amounts actually recovered by the Parent Indemnitee
under third party insurance policies with respect to such Indemnifiable Losses. 
 (f)    The provisions of this
Article VII shall be the sole and exclusive remedy of any Parent Indemnitee from and after the Effective Time for any claims arising under this Agreement and the CVR Agreements. 

7.4.    Calculation of Indemnifiable Losses; No Investigation. Solely for purposes of determining the amount of any
Indemnifiable Loss (but not for purposes of determining whether there has been any inaccuracy in or breach of any representation or warranty or breach of any covenant), any qualifications in the representations, warranties and covenants herein with
respect to materiality, “Material Adverse Effect” or similar terms shall be disregarded and will not have any effect with respect to the calculation of the amount of any Indemnifiable Losses attributable to a breach of any such
representation, warranty or covenant. The right of Parent Indemnitees to and the determination of the amount of any Indemnifiable Losses will not be affected by any investigation conducted with respect to, or any knowledge acquired (or capable of
being 

  
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acquired) at any time, whether before or after the execution and delivery of this Agreement or the Closing Date, by or on behalf of Parent. 

7.5.    Third-Party Claims. 

(a)     Promptly after the assertion by any third party of any claim (a “Third-Party Claim”) against a
Parent Indemnitee that, in the judgment of Parent, may result in the incurrence of Indemnifiable Losses for which such Parent Indemnitee would be entitled to indemnification pursuant to this Article VII, Parent shall deliver to the
Stockholder Representative a written notice describing in reasonable detail such Third-Party Claim (“Claim Notice”) and specifying the specific representation, warranty or covenant alleged to have been breached and estimating the
amount of Indemnifiable Losses; provided, that no delay in notifying the Stockholder Representative will relieve the Unaffiliated Stockholders of any liability or obligations hereunder, except to the extent that the Unaffiliated Stockholders have
been prejudiced thereby, and then only to such extent. Notwithstanding the foregoing sentence, indemnification shall not be available if the Claim Notice has not been delivered prior to the Expiration Date. 

(b)     If the Stockholder Representative acknowledges in writing the obligation of the Unaffiliated Stockholders to
indemnify the Parent Indemnitees against any Indemnifiable Losses that may result from such Third-Party Claim, then the Stockholder Representative shall be entitled to assume and control the defense of such Third-Party Claim through counsel of its
choice (such counsel to be reasonably acceptable to the Parent Indemnitee) if it gives notice of its intention to do so to the Parent Indemnitee within 30 days of the receipt of Claim Notice; provided, that the Stockholder Representative shall not
have the right to assume the defense of the Third-Party Claim if (A) any such claim seeks, in addition to or in lieu of monetary losses, any injunctive or other equitable relief, (B) there is reasonably likely to exist a conflict of
interest that would make it inappropriate (in the judgment of the Parent Indemnitee in its reasonable discretion) for the same counsel to represent both the Parent Indemnitee and the Stockholder Representative, or (iii) settlement of, or an
adverse judgment with respect to, the Third-Party Claim may establish (in the good faith judgment of the Parent Indemnitee) a precedential custom or practice adverse to the business interests of the Parent Indemnitee; provided further, that if by
reason of the Third-Party Claim a lien, attachment, garnishment, execution or other encumbrance is placed upon any of the property or assets of such Parent Indemnitee, the Stockholder Representative, if it desires to exercise its right to assume
such defense of the Third-Party Claim, must agree to furnish a satisfactory indemnity bond to obtain the prompt release of such lien, attachment, garnishment, execution or other encumbrance. If the Stockholder Representative assumes the defense of a
Third-Party Claim pursuant to the first sentence of this clause (ii), it will conduct the defense actively, diligently and at its own expense, and it will agree that the Unaffiliated Stockholders shall hold all Parent Indemnitees harmless from and
against all Losses caused by or arising out of any settlement thereof. The Parent Indemnitee shall cooperate with the Stockholder Representative in such defense and make available to the Stockholder Representative, at the Unaffiliated
Stockholders’ expense, all witnesses, pertinent records, materials and information in the Parent Indemnitee’s possession or under the Parent Indemnitee’s control relating thereto as is reasonably requested by the Stockholder
Representative. Except with the written consent of the Parent Indemnitee (not to be unreasonably withheld), the Stockholder Representative will not, in the defense of a Third-Party Claim, consent to the entry of any judgment or enter into any
settlement (1) which does not 

  
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include as an unconditional term thereof the giving to the Parent Indemnitee by the third party of a release from all liability with respect to such suit, claim, action, or proceeding; and
(2) unless there is no finding or admission of (A) any violation of law by the Parent Indemnitee (or any Affiliate thereof), (B) any liability on the part of the Parent Indemnitee (or any Affiliate thereof) or (C) any violation of the
rights of any person and no effect on any other claims of a similar nature that may be made by the same third party against the Parent Indemnitee (or any Affiliate thereof). 

(c)     In the event that the Stockholder Representative fails or elects not to assume the defense of a Parent Indemnitee
against such Third-Party Claim which the Stockholder Representative had the right to assume pursuant to clause (ii) above, the Parent Indemnitee shall have the right to defend or prosecute such claim in any manner as it may reasonably deem
appropriate and may settle such claim after giving written notice thereof to the Stockholder Representative and obtaining the Stockholder Representative’s written consent (not to be unreasonably withheld) to the terms of the settlement. 

(d)     In the event that the Stockholder Representative is not entitled to assume the defense of the Parent Indemnitee
against such Third-Party Claim pursuant to Section 7.5(b) above, the Parent Indemnitee shall have the right, at the expense of the Unaffiliated Stockholders, to defend or prosecute such claim and consent to the entry of any
judgment or enter into any settlement with respect to the Third-Party Claim in any manner it may reasonably deem appropriate after giving written notice thereof to the Stockholder Representative. In such case, the Parent Indemnitee shall conduct the
defense of the Third-Party Claim actively and diligently, and the Stockholder Representative shall cooperate with the Parent Indemnitee in such defense and make available to the Parent Indemnitee all such witnesses, records, materials and
information in the Stockholder Representative’s possession or under the Stockholder Representative’s control relating thereto as is reasonably requested by the Parent Indemnitee. The Parent Indemnitee may settle such claim after giving
written notice thereof to the Stockholder Representative and obtaining the Stockholder Representative’s written consent (not to be unreasonably withheld) to the terms of the settlement. 

7.6.    Direct Claims. Any claim by a Parent Indemnitee on account of an Indemnifiable Loss that does not result
from a Third Party Claim (a “Direct Claim”) will be asserted by giving the Stockholder Representative written notice thereof promptly after Parent Indemnitee becomes aware of any fact, condition or event giving rise to Indemnifiable
Losses for which indemnification may be sought. Such notice (as well as any notice of a Third-Party Claim) by the Parent Indemnitee will describe the Direct Claim in reasonable detail (specifying the representation, warranty or covenant alleged to
have been breached), will include copies of all available material written evidence thereof, and will indicate the estimated amount, if reasonably practicable, of Indemnifiable Losses that has been or may be sustained by the Parent Indemnitee. The
Stockholder Representative will have a period of twenty (20) Business Days within which to respond in writing to such Direct Claim. If the Stockholder Representative notifies the Parent Indemnitee that it does not dispute the claim described in
such Direct Claim notice or fails to respond within twenty (20) Business Days following receipt of such Claim Notice, the Indemnifiable Losses identified in the Direct Claim notice will be conclusively deemed a liability of the Unaffiliated
Stockholders named thereunder. If the Stockholder Representative disputes liability with respect to such Direct Claim or the 

  
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estimated amount of such Indemnifiable Losses pursuant to this Article VII, the parties shall attempt in good faith to resolve such dispute; provided, that if such dispute has not been
resolved within thirty (30) Business Days following receipt of such Direct Claim notice, then the Stockholder Representative and the Parent Indemnitee may seek legal redress in accordance with the terms of this Agreement. 

7.7.    Recovery of Losses. The aggregate amount of Indemnifiable Losses which are the subject of any and all Third
Party Claims and Direct Claims and determined pursuant to this Article VII, subject to the limitations of Section 7.3, is referred to as the “Indemnification Amount.” As provided in
Section 7.3(c)(i), the Indemnification Amount when finally determined to be owing by the Unaffiliated Stockholders will be set off against and deducted from any FDA Milestone Payment otherwise payable to the Unaffiliated
Stockholders, subject to the limitations set forth in Section 7.3. 
 7.8.    Waiver of
Claims Against Surviving Entity. No Unaffiliated Stockholder, as a former stockholder of the Company or otherwise, has (and each Unaffiliated Stockholder, as a former stockholder of the Company or otherwise, waives) any right of indemnification
or contribution against the Surviving Entity with respect to any breach by any Unaffiliated Stockholder, as a former stockholder of the Company or otherwise, or the Company of any of their respective representations, warranties, covenants or
agreements in this Agreement or otherwise, whether by virtue of any contractual or statutory right of indemnity or otherwise, and all claims to the contrary are hereby waived and released. In addition, each Unaffiliated Stockholder, as a former
stockholder of the Company or otherwise, hereby agrees that such Unaffiliated Stockholder, as a former stockholder of the Company or otherwise, will not make any claim for indemnification against the Surviving Entity by reason of the fact that such
Unaffiliated Stockholder was a director, officer, employee, or agent of the Company or was serving at the request of the Company as a partner, trustee, director, officer, employee, or agent of another Person (whether such claim is for judgments,
damages, penalties, fines, costs, amounts paid in settlement, losses, expenses, or otherwise and whether such claim is pursuant to any statute, charter document, bylaw, agreement, or otherwise) to the extent that any action, suit, proceeding,
complaint, claim, or demand brought against such Unaffiliated Stockholder relates to an Indemnifiable Loss described herein (whether such action, suit, proceeding, complaint, claim, or demand is pursuant to this Agreement, applicable law, or
otherwise). 
 7.9.    Stockholder Representative; Power of Attorney. 

(a)    Appointment. By virtue of the adoption of this Agreement and the approval of the Merger by the Stockholders,
each Unaffiliated Stockholder (regardless of whether or not such Stockholder votes in favor of the adoption of this Agreement and the approval of the Merger, whether at a meeting or by written consent in lieu thereof), and whether or not such
Stockholder has executed and delivered a Stockholder Agreement, hereby appoints, as of the date of the Closing, Shareholder Representative Services LLC (together with its permitted successors, the “Stockholder Representative”), as
his, her or its true and lawful representative, agent and attorney-in-fact to enter into any Related Agreement and any transactions contemplated by this Agreement and
the CVR Agreements, and to: (i) give and accept notices and communications from Parent (on behalf of itself or any other Indemnified Party) after the Effective Time relating to this Agreement or any of the transactions and other matters
contemplated hereby (except to 

  
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the extent that this Agreement expressly contemplates that any such notice or communication shall be given or received by such Stockholders individually); (ii) authorize Parent to reduce any
payment in respect of the Unaccredited CVR Agreement and/or the FDA Milestone CVR Agreement in satisfaction of claims asserted by Parent (on behalf of itself or any other Indemnitee, including by not objecting to claims thereto); (iii) object to any
claims by Parent to reduce any payment under the Unaccredited CVR Agreement and/or the FDA Milestone CVR Agreement; (iv) consent or agree to, negotiate, enter into settlements and compromises of, and agree to arbitration and comply with orders
of courts and awards of arbitrators with respect to such claims; (v) assert, negotiate, enter into settlements and compromises of, and agree to arbitration and comply with orders of courts and awards of arbitrators with respect to, any other
claim by any Indemnitee against any such Stockholder or by any such Unaffiliated Stockholder against any Indemnitee or any dispute between any Indemnitee and any such Unaffiliated Stockholder, in each case relating to this Agreement or the
transactions contemplated hereby; (vi) amend this Agreement or any other Related Agreement or other agreement referred to herein or contemplated hereby; and (vii) take all actions necessary or appropriate in the judgment of the Stockholder
Representative for the accomplishment of the foregoing, in each case without having to seek or obtain the consent of any Person under any circumstance; provided that the Stockholder Representative will comply with the provisions of
Section 7.9(b). The Stockholder Representative shall have the sole and exclusive right on behalf of each Unaffiliated Stockholder with respect to the foregoing actions. Any such actions taken, exercises of rights, power or
authority, and any decision or determination made by the Stockholder Representative, shall be absolutely and irrevocably binding on each Unaffiliated Stockholder as if such Unaffiliated Stockholder personally had taken such action, exercised such
rights, power or authority or made such decision or determination in such Unaffiliated Stockholder’s individual capacity, and no Unaffiliated Stockholder shall have the right to object, dissent, protest or otherwise contest the same. Any action
required to be taken by the Unaffiliated Stockholders hereunder or any action that the Unaffiliated Stockholders, at their election, have the right to take hereunder, shall be taken only by the Stockholder Representative and no Unaffiliated
Stockholder acting on its own shall be entitled to take any such action. 
 (b)    Advisory Committee.
Notwithstanding anything herein to the Contrary, the Stockholder Representative agrees not to take any material action hereunder or under any of the CVR Agreements (including, without limitation, sending or receiving notices hereunder or thereunder
or binding any Unaffiliated Stockholder to any agreement or course of action hereunder or thereunder) without approval of the Advisory Committee (acting via a majority of the members thereof). The Stockholder Representative shall provide copies of
any and all material notices received by it under this Agreement or any of the Related Agreements to the Advisory Committee and shall keep all members of the Advisory Committee informed of all material actions related to or undertaken in connection
with this Agreement or any of the Related Agreements. If any member of the Advisory Committee resigns, dies or becomes legally incapacitated, then a majority of the Unaffiliated Stockholders, based on their respective Pro Rata Shares, may promptly
designate in writing to Buyer and the Stockholder Representative a single individual or entity to fill such Advisory Committee vacancy. Advisory Committee Members shall not have any liability to the Unaffiliated Stockholders for any act done or
omitted hereunder or under any Related Agreements as an Advisory Committee Member other than for acts of willful misconduct or bad faith. Notwithstanding the provisions of this Section 7.9(b), after Closing, Parent shall be

  
 -41- 

 
entitled to deal exclusively with the Stockholder Representative on all matters relating to this Agreement and the CVR Agreements and shall be entitled to rely conclusively (without further
evidence of any kind whatsoever, including any evidence of approval or lack thereof by the Advisory Committee) on any document executed or purported to be executed on behalf of any Unaffiliated Stockholder by the Stockholder Representative, and on
any other action taken or purported to be taken on behalf of any Unaffiliated Stockholder by the Stockholder Representative, as being fully binding upon such Person. 

(c)    Acceptance. The Stockholder Representative hereby accepts its appointment as Stockholder Representative.

 (d)    Replacement. The Person serving as the Stockholder Representative may resign at any time, or may be
replaced from time to time by majority vote of the Unaffiliated Stockholders, based on their respective Pro Rata Shares, upon not less than 10 days’ prior written notice to Parent. No bond shall be required of the Stockholder Representative.
After the Closing, notices or communications to or from the Stockholder Representative shall constitute notice to or from each of the Unaffiliated Stockholders. 

(e)    No Liability; Indemnification. The Stockholder Representative will incur no liability of any kind with
respect to any action or omission by the Stockholder Representative in connection with its services pursuant to this Agreement and any agreements ancillary hereto, except in the event of liability directly resulting from the Stockholder
Representative’s gross negligence or willful misconduct. The Stockholder Representative shall not be liable for any action or omission pursuant to the advice of counsel. The Unaffiliated Stockholders will, severally (based on such Unaffiliated
Stockholder’s respective Indemnification Percentage compared to the aggregate of the Indemnification Percentages of all Unaffiliated Stockholders) and not jointly, in the amount not to exceed the portion of the Merger Consideration actually
paid to such Unaffiliated Stockholder, indemnify, defend and hold harmless the Stockholder Representative from and against any and all losses, liabilities, damages, claims, penalties, fines, forfeitures, actions, fees, costs and expenses (including
the fees and expenses of counsel and experts and their staffs and all expense of document location, duplication and shipment) (collectively, “Representative Losses”) arising out of or in connection with the Stockholder
Representative’s execution and performance of this Agreement and any agreements ancillary hereto, in each case as such Representative Loss is suffered or incurred; provided, that in the event that any such Representative Loss is finally
adjudicated to have been directly caused by the gross negligence or willful misconduct of the Stockholder Representative, the Stockholder Representative will reimburse the Unaffiliated Stockholders the amount of such indemnified Representative Loss
to the extent attributable to such gross negligence or willful misconduct. If not paid directly to the Stockholder Representative by the Unaffiliated Stockholders, any such Representative Losses may be recovered by the Stockholder Representative
from (i) the funds in the Expense Fund and (ii) any other amounts become distributable to the Unaffiliated Stockholders in connection with the transactions contemplated by this Agreement; provided, that while this section allows the
Stockholder Representative to be paid from the aforementioned sources of funds, this does not relieve the Unaffiliated Stockholders from their obligation to promptly pay such Representative Losses as they are suffered or incurred, nor does it
prevent the Stockholder Representative from seeking any remedies available to it at law or otherwise. In no event will the Stockholder 

  
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Representative be required to advance its own funds on behalf of the Unaffiliated Stockholders or otherwise. Notwithstanding anything in this Agreement to the contrary, any restrictions or
limitations on liability or indemnification obligations of the Unaffiliated Stockholders set forth elsewhere in this Agreement are not intended to be applicable to the indemnities provided to the Stockholder Representative under this section. The
foregoing indemnities will survive the Closing, the resignation or removal of the Stockholder Representative or the termination of this Agreement. 

(f)    Access to Information. The Stockholder Representative shall have reasonable access to relevant information
about the Company and the reasonable assistance of the Company’s employees for purposes of performing its duties and exercising his rights hereunder; provided that the Stockholder Representative shall treat confidentially and not
disclose any nonpublic information from or about the Company to anyone (except on a need to know basis to individuals who agree to treat such information confidentially). 

(g)    Notice. After the Closing, any notice or communication given or received by, and any decision, action,
failure to act within a designated period of time, agreement, consent, settlement, resolution or instruction of, the Stockholder Representative shall constitute a notice or communication to or by, or a decision, action, failure to act within a
designated period of time, agreement, consent, settlement, resolution or instruction of all the Unaffiliated Stockholders and shall be final, binding and conclusive upon each such Unaffiliated Stockholder; and each Indemnitee shall be entitled to
rely upon any such notice, communication, decision, action, failure to act within a designated period of time, agreement, consent, settlement, resolution or instruction as being a notice or communication to or by, or a decision, action, failure to
act within a designated period of time, agreement, consent, settlement, resolution or instruction of, each and every such Stockholder. Each Indemnitee is hereby relieved from any liability to any Person for any acts done by them in accordance with
any such notice, communication, decision, action, failure to act within a designated period of time, agreement, consent or instruction of the Stockholder Representative. 

(h)    Role of Stockholder Representative; No Contribution. Without limiting the generality or effect of
Section 7.9(a), any claims or disputes between or among any Indemnitee, the Stockholder Representative and/or any one or more of the Unaffiliated Stockholders relating to this Agreement or the transactions contemplated
hereby or thereby shall in the case of any claim or dispute asserted by or against or involving any such Unaffiliated Stockholder (other than any claim against or dispute with the Stockholder Representative), be asserted or otherwise addressed
solely by the Stockholder Representative on behalf of such Unaffiliated Stockholder (and not by such Unaffiliated Stockholder acting on its own behalf). Each Unaffiliated Stockholder waives, and acknowledges and agrees that he shall not have and
shall not exercise or assert (or attempt to exercise or assert), any right of contribution, right of indemnity or other right or remedy against the Surviving Entity in connection with any indemnification obligation or any other liability to which he
may become subject under or in connection with this Agreement. 
 7.10.    No Subrogation. Following the Closing,
no Unaffiliated Stockholder shall have any right of indemnification, contribution or subrogation against the Company with respect to any indemnification made by or on behalf of any Stockholder under this Article VII. 

  
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 ARTICLE VIII 

TERMINATION, AMENDMENT AND WAIVER 

8.1.    Termination. This Agreement may be terminated and the Merger abandoned at any time prior to the Closing
Date regardless of whether this Agreement and/or the Merger have been approved by the Stockholders: 
 (a)    by written
agreement of the Company, Parent and Merger Sub; 
 (b)    by either Parent or the Company if the Closing Date has not
occurred by June 30, 2017 (the “Termination Date”); provided, that any party not in material breach of its obligations under this Agreement may by notice to the other parties extend the Termination Date by up to thirty
(30) days; and provided further that the right to terminate this Agreement under this Section 8.1(b) shall not be available to any party whose failure to fulfill any obligation hereunder has been the cause of,
or resulted in, the failure of the Closing Date to occur on or before the Termination Date and such action or failure constitutes a breach of this Agreement; 

(c)    by Parent if it is not in material breach of its obligations under this Agreement and there has been a breach of
any representation, warranty, covenant or agreement contained in this Agreement on the part of the Company and as a result of such breach the conditions set forth in Section 6.2(a) or 6.2(b), as the case may be,
would not then be satisfied; provided, that if such breach is curable by the Company prior to the Termination Date through the exercise of its commercially reasonable efforts, then Parent may not terminate this Agreement under this
Section 8.1(c) prior to the earlier of the Termination Date or the date that is 30 days following the Company’s receipt of written notice from Parent of such breach, it being understood that Parent may not terminate
this Agreement pursuant to this Section 8.1(c) if such breach by the Company is cured within such 30 day period so that the conditions would then be satisfied; or 

(d)    by the Company if it is not in material breach of its obligations under this Agreement and there has been a breach
of any representation, warranty, covenant or agreement contained in this Agreement on the part of Parent or Merger Sub and as a result of such breach the conditions set forth in Section 6.1(a) or 6.1(b), as the case
may be, would not then be satisfied; provided, that if such breach is curable by Parent prior to the Termination Date through the exercise of its commercially reasonable efforts, then the Company may not terminate this Agreement under this
Section 8.1(d) prior to the earlier of the Termination Date or the date that is 30 days following Parent’s receipt of written notice from the Company of such breach, it being understood that the Company may not terminate this
Agreement pursuant to this Section 8.1(d) if such breach by Parent is cured within such 30-day period so that the conditions would then be satisfied. 

8.2.    Effect of Termination. Any termination of this Agreement under Section 8.1 will
be effective immediately upon the delivery of written notice by the terminating party to the other parties hereto. In the event of the termination of this Agreement as provided in Section 8.1, this Agreement shall be of no
further force or effect, except (i) as set forth in Section 5.4, Section 7.9(e), this Section 8.2, Section 8.3 and
Article VII, each of which shall survive the termination of this Agreement, and (ii) nothing herein shall relieve any party from liability for any willful breach of this

  
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Agreement. No termination of this Agreement shall affect the obligations of the parties contained in the Confidentiality Agreement, all of which obligations shall survive termination of this
Agreement. 
 8.3.    Amendment. Except as is otherwise required by applicable Law, prior to the Closing this
Agreement may be amended by the parties hereto at any time by execution of an instrument in writing signed by Parent, Merger Sub and the Company. Except as is otherwise required by applicable Law, after the Closing this Agreement may be amended by
the parties hereto at any time by execution of an instrument in writing signed by Parent, the Surviving Entity and the Stockholder Representative. 

8.4.    Extension; Waiver. At any time prior to the Effective Time, Parent and Merger Sub, on the one hand, and the
Company, on the other, may, to the extent legally allowed, (i) extend the time for the performance of any of the obligations of the other party hereto, (ii) waive any inaccuracies in the representations and warranties made to such party
contained herein or in any document delivered pursuant hereto or (iii) waive compliance with any of the agreements or conditions for the benefit of such party contained herein. Any agreement on the part of a party hereto to any such extension
or waiver shall be valid only if, and to the extent, set forth, in an instrument in writing signed on behalf of such party. 
 ARTICLE IX

 GENERAL PROVISIONS 

9.1.    Notices. All notices and other communications hereunder shall be in writing and shall be deemed given if
properly addressed: (i) if delivered personally, by commercial delivery service or by facsimile (with acknowledgment of a complete transmission) or by .pdf attachment to email (with a copy to follow either personally, by commercial delivery
service or by first class, registered or certified mail (return receipt requested)), on the day of delivery; or (ii) if delivered by internationally recognized courier (appropriately marked for next day delivery), one Business Day after
sending; or (iii) if delivered by first class, registered or certified mail (return receipt requested), three Business Days after mailing. Notices shall be deemed to be properly addressed to any party hereto if addressed to the following
addresses (or at such other address for a party as shall be specified by like notice): 
 (a)    If to Parent or Merger
Sub: 
 NantCell, Inc. 

9920 Jefferson Blvd. 

Culver City, CA 90232 

Attention: Charles Kim 

Email: ckim@nantworks.com 

(b)    if to the Company, to: 

Altor BioScience Corporation 

2810 North Commerce Parkway 

Miramar, FL 33025 
 Attention:
Hing Wong 
 Email: hingwong@altorbioscience.com 

  
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 with a copy (which shall not constitute notice) to: 

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. 

One Financial Center 
 Boston,
MA 02111 
 Attention: Megan N. Gates, Esq. 

Facsimile: 617.542.2241 
 Email:
mgates@mintz.com 
 (c)    if to the Stockholder Representative to: 

If prior to July 31, 2017: 

Shareholder Representative Services LLC 

1614 15th Street, Suite 200 

Denver, CO 80202 
 Attention:
Managing Director 
 Email: deals@srsacquiom.com 

Facsimile No.: (303) 623-0294 

Telephone No.: (303) 648-4085 

If on or after July 31, 2017: 

Shareholder Representative Services LLC 

950 17th Street, Suite 1400 

Denver, CO 80202 
 Attention:
Managing Director 
 Email: deals@srsacquiom.com 

Facsimile No.: (303) 623-0294 

Telephone No: (303) 648-4085 

in each case, with a copy (which shall not constitute notice) to: 

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. 

One Financial Center 
 Boston,
MA 02111 
 Attention: Megan N. Gates, Esq. 

Facsimile: 617.542.2241 
 Email:
mgates@mintz.com 
 9.2.    Entire Agreement. This Agreement, together with the Related Agreements and the
Confidentiality Agreement, the schedules, Annexes and Exhibits hereto and thereto, and the documents and instruments and other agreements among the parties hereto referenced herein constitute the entire agreement among the parties with respect to
the subject matter hereof and supersede all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof, including but not limited to that certain Binding Term Sheet dated as of
February 18, 2017, by and between Parent and the Company; provided, however, that the obligations of certain Stockholders party to such Binding Term Sheet to vote in favor 

  
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of the Merger and the Merger Agreement shall not be so superseded and shall continue in effect through the Closing. 

9.3.    Severability. In the event that any provision of this Agreement or the application thereof becomes or is
declared by a court of competent jurisdiction to be illegal, void or unenforceable, the remainder of this Agreement will continue in full force and effect and the application of such provision to other Persons or circumstances will be interpreted so
as reasonably to effect the intent of the parties hereto. The parties further agree to replace such void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the greatest extent possible, the
economic, business and other purposes of such void or unenforceable provision. 
 9.4.    Expenses. Except as
otherwise expressly contemplated in this Agreement, all Transaction Expenses and all costs and expenses incurred in connection with this Agreement and in closing and carrying out the transactions contemplated hereby shall be paid by the party
incurring such cost or expense. 
 9.5.    Successors and Assigns; Parties in Interest. 

(a)    This Agreement shall be binding upon each Stockholder and each of the Stockholders’ personal representatives,
executors, administrators, estates, heirs, successors and assigns (if any) and Parent and Merger Sub and their respect successors and assigns, if any. This Agreement shall inure to the benefit of the parties hereto and the Indemnified Parties and
the respective successors and assigns (if any) of the foregoing. No obligation of the Company in this Agreement shall become an obligation of the Surviving Entity after the Effective Time. 

(b)    Except as provided herein or in the CVR Agreements, no party may assign any of its rights or delegate any of its
obligations under this Agreement without the prior written consent of Parent and the Company, except that Parent may assign its rights and delegate its obligations hereunder to any Affiliate without the Company’s consent. 

(c)    Except as provided in the following sentence, nothing in this Agreement, express or implied, is intended to or
shall confer upon any other Person any rights, interests, benefits or other remedies of any nature under or by reason of this Agreement. This Agreement is intended to benefit the Indemnitees, each Indemnitee shall be deemed a third-party beneficiary
of this Agreement and this Agreement shall be enforceable by the Indemnitees. Except as set forth in this Section 9.5(c), none of the provisions of this Agreement is intended to provide any rights or remedies to any Person
other than the parties and their respective successors and assigns, if any. 
 9.6.    Waiver. No failure on the
part of any Person to exercise any power, right, privilege or remedy under this Agreement, and no delay on the part of any Person in exercising any power, right, privilege or remedy under this Agreement, shall operate as a waiver of such power,
right, privilege or remedy; and no single or partial exercise of any such power, right privilege or remedy shall preclude any other or further exercise thereof or of any other power, right, privilege or remedy. 

  
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 9.7.    Construction. 

(a)    For purposes of this Agreement, whenever the context requires: the singular number shall include the plural, and
vice versa; the masculine gender shall include the feminine and neuter genders; the feminine gender shall include the masculine and neuter genders; and the neuter gender shall include the masculine and feminine genders. 

(b)    Any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be
applied in the construction or interpretation of this Agreement. 
 (c)    The words “include” and
“including,” and variations thereof, shall not be deemed to be terms of limitation, but rather shall be deemed to be followed by the words “without limitation.” 

(d)    Except as otherwise indicated, all references in this Agreement to “Sections,” “Exhibits” and
“Schedules” are intended to refer to Sections of this Agreement, and Exhibits and Schedules to this Agreement or to the Company Disclosure Schedule, as the context may require. 

(e)    The table of contents and headings contained in this Agreement are for reference purposes only and shall not affect
in any way the meaning or interpretation of this Agreement. 
 9.8.    Governing Law; Venue. 

(a)    This Agreement shall be construed in accordance with, and governed in all respects by, the laws of the State of
Delaware without regard to the laws of such jurisdiction that would require the substantive laws of another jurisdiction to apply. 

(b)    Unless otherwise explicitly provided in this Agreement or the Related Agreements, any action, claim, suit or
proceeding relating to this Agreement or the Related Agreements or the enforcement of any provision of this Agreement or the Related Agreements shall be settled in accordance with the following procedures. If such action, claim, suit or proceeding
is not resolved by good faith negotiation within thirty (30) days, either party may submit the action, claim, suit or proceeding to binding arbitration in Wilmington, Delaware. The arbitration shall be administered by JAMS pursuant to its
Comprehensive Arbitration Rules and Procedures and in accordance with the Expedited Procedures in those rules. In the event that a dispute arises which requires arbitration under this Section 9.8, the parties shall attempt
to agree upon one arbitrator to resolve such dispute. In the event that the parties are unable to agree upon an arbitrator within fourteen (14) days then each party shall within ten (10) days thereafter choose one arbitrator and the
arbitrators so chosen by the parties shall then choose a single arbitrator who shall resolve such dispute. If a party fails to designate an arbitrator within ten (10) days of a written request therefor, that party shall forfeit his right to
participate in the arbitrator selection process, and the arbitrator selected by the other party shall arbitrate the dispute. Each party shall bear his respective costs of the arbitration. The prevailing party in any such arbitration shall be
entitled to have the arbitrators’ award enforced by any court of competent jurisdiction. This Section 9.8 shall 

  
 -48- 

 
not preclude a party from seeking provisional remedies in aid of arbitration from a court of appropriate jurisdiction. 

9.9.    Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS
AGREEMENT OR ANY RELATED AGREEMENTS IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE IT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY
ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY RELATED AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH OF THE COMPANY, PARENT AND MERGER SUB (a) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTIES HAS
REPRESENTED, EXPRESSLY OR OTHERWISE THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (b) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.9. 
 9.10.    Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Any signature page delivered by facsimile or electronic image transmission
shall be binding to the same extent as an original signature page. Any party that delivers a signature page by facsimile or electronic image transmission shall deliver an original counterpart to any other party that requests such original
counterpart. 
 9.11.    Time of the Essence. Time is of the essence of this Agreement. 

9.12.    Privileged Communications. Parent, on behalf of itself and the Surviving Corporation, hereby acknowledges
that any attorney-client privilege attaching as a result of Mintz Levin’s representation of the Company and the Unaffiliated Stockholders prior to the Effective Time in connection with this Agreement, and all information and documents covered
by such privilege shall, after the Effective Time, belong to and be controlled solely by the Stockholder Representative, on behalf of the Unaffiliated Stockholders, and may only be waived by the Stockholder Representative, on behalf of the
Unaffiliated Stockholders. Following the Effective Time, Parent, on behalf of itself and the Surviving Corporation, agrees that it will not seek to assert attorney-client privilege with respect to communications between Mintz Levin, on the one
hand, and the Company and/or the Unaffiliated Stockholders, on the other hand, in each case solely relating to Mintz Levin’s representation in connection with this Agreement (the “Communications”), with respect to any claim in
connection with any claim by a Parent Indemnitee under Article VII. Notwithstanding the foregoing, if a dispute arises between Parent or the Surviving Corporation, on the one hand, and a third party, on the other hand, then Parent or the
Surviving Corporation may assert the attorney-client privilege to prevent disclosure to such third party of any Communications. 
 [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK] 

  
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 IN WITNESS WHEREOF, each of the parties to this
Agreement has executed and delivered this Agreement, or caused this Agreement to be executed and delivered by its duly authorized representative, as of the date first written above. 

 

			
	NANTCELL, INC.
		
	By:	 	 /s/ Charles Kim

		 	Name: Charles Kim
		 	Title: General Counsel
	
	ALTOR ACQUISITION, LLC
		
	By:	 	 /s/ Charles Kim

		 	Name: Charles Kim
		 	Title: Manager
	
	ALTOR BIOSCIENCE CORPORATION
		
	By:	 	 /s/ Hing C. Wong

		 	Name: Hing C. Wong
		 	Title: President & Chief Executive Officer
	
	STOCKHOLDER REPRESENTATIVE:
	
	 SHAREHOLDER REPRESENTATIVE SERVICES

LLC, solely in its capacity as the
 Stockholder
Representative

		
	By:	 	 /s/ Sam Riffe

		 	Name: Sam Riffe
		 	Title: Executive Director

  
 -50-

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