Document:

Exchange Agreement dated June 25, 2009

 Exhibit 10.6 
 EXCHANGE AGREEMENT 
 THIS EXCHANGE AGREEMENT (this “Agreement”) is dated as of
June 25, 2009, by and between Arrowhead Research Corporation, a Delaware corporation (the “Corporation”), and TEL Venture Capital, Inc. (the “Holder”). The Corporation and each Holder are referred to as a
“Party” and collectively as the “Parties”. 
 W I T N E S
S E T H: 
 WHEREAS, the Corporation and the Holder are shareholders of Unidym, Inc., a Delaware corporation
(“Unidym”); 
 WHEREAS, the Holder desires to exchange shares of Series C Preferred Stock, $0.0001 par value per share and
Series C-1 Preferred Stock, $0.0001 par value per share, of Unidym (each, a “Unidym Share” and, collectively, the “Unidym Shares”) in the amounts set forth on Exhibit A, attached hereto for common stock of
the Corporation, $0.001 par value per share (each, an “Arrowhead Share” and, collectively the “Arrowhead Shares”); 
 WHEREAS, the Corporation desires to exchange (the “Exchange”) one newly issued and unregistered Arrowhead Share for each Unidym Share and the agreement of the Holder to certain restrictions on the
transfer and sale of any Arrowhead Shares it receives pursuant to this Agreement (the Arrowhead Shares received in the Exchange, referred to in this Agreement as the “Exchanged Shares”); and 
 WHEREAS, in partial consideration for the Exchange and to the extent Holder retains any Unidym Shares after the Exchange (“Retained Unidym
Shares”), the Corporation desires that the Holder waive certain rights associated with respect to the Unidym Shares and the Retained Unidym Shares; 
 WHEREAS, the Holder is willing to waive certain rights with respect to the Unidym Shares and confirm that it prepared to waive certain rights with respect to Retained Unidym Shares subject to certain terms and
conditions; and 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows: 
 1. Exchange. 
 (a) Exchange Ratio. The Corporation and the Holder hereby agree to exchange at the Closing the Unidym Shares in the amounts set forth on Exhibit A, attached hereto, for Arrowhead Shares in the following
ratio: one Unidym Share for one Arrowhead Share (1:1). 
 (b) Exchange. To effect this exchange, the Holder will deliver to the
Corporation the stock certificate or certificates representing the Unidym Shares together with duly executed stock powers related thereto and the Corporation will deliver to the Holder a stock certificate or certificates representing the Exchanged
Shares. 

 2. The Closing. 
 (a) Closing Date. The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place at the offices of Arrowhead Research Corporation at 10:00 a.m., Los Angeles
time, on such date as agreed to by the parties on or after the date the conditions to closing set forth in this Agreement are satisfied (“Closing Date”), or at such other place, date or time as the parties may mutually agree in
writing. 
 (b) Conditions to Closing of Holder. The obligation of the Holder to consummate the transactions on the Closing Date as
contemplated by this Agreement shall be subject to the satisfaction or waiver on or prior to the Closing Date of the following conditions: 
 (i) the Corporation shall have performed and complied in all material respects with all obligations and agreements required to be performed and complied with by the Corporation hereunder on or prior to the Closing
Date; 
 (ii) the representations and warranties of the Corporation contained in this Agreement shall be true and correct in
all material respects as of the Closing Date as if made as of such date; 
 (iii) the Corporation shall have delivered to the
Holder one or more stock certificates evidencing such Holder’s ownership of the Exchanged Shares to be delivered on the Closing Date duly executed by the Corporation; 
 (iv) the Corporation shall have delivered to the Transfer Agent the instructions and pre-authorizations described in Section 5(b) of
this Agreement relating to the acceptance of the opinion of counsel satisfactory to the Corporation authorizing the removal of the legends from the Exchanged Shares after the expiration of the Prohibited Period (as defined herein); and 

(v) the Corporation shall have received all third party consents and all authorizations, consents and approvals of any Governmental
Authority necessary to consummate the transactions contemplated hereby. 
 (c) Conditions to Closing of
Corporation. The obligation of the Corporation to consummate the transactions on the Closing Date shall be subject to the satisfaction or waiver on or prior to the Closing Date of the following conditions: 
 (i) The Holder shall have each performed and complied in all material respects with all obligations and agreements required to be
performed and complied with by each Holder hereunder on or prior to the Closing Date; 
 (ii) Holder shall have delivered to
Corporation evidence and supporting documents satisfactory to Corporation that the Holder has complied with or obtained all necessary consents under the terms and conditions of the Amended and Restated Right of first Refusal and Co-Sale Agreement,
(the “ROFR and Co-Sale Agreement”) to exchange all the Unidym Shares free and clear of any Claims as required under this Agreement and with the requested assistance of the Corporation in obtaining such consents as set forth in
Section 11(b) of this Agreement; 
  

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 (iii) the representations and warranties of the Holder contained in this Agreement shall
be true and correct in all material respects as of the Closing Date as if made as of such date; 
 (iv) Holder shall have
delivered to the Corporation a certificate or the certificates representing all the Unidym Shares owned by Holder to be exchanged on such date and related executed stock powers; and 
 (v) Holder shall have received all third party consents and all authorizations, consents and approvals of any Governmental Authority
necessary to consummate the transactions contemplated hereby. 
 3. Representations and Warranties of the Corporation. The Corporation
represents and warrants to Holder as follows: 
 (a) Corporate Status. The Corporation is a corporation incorporated, validly existing
and in good standing under the laws of the State of Delaware with full right, power and authority to execute, deliver and perform this Agreement. 
 (b) Authorization/Enforceability. This Agreement has been duly authorized, executed and delivered by the Corporation and constitutes the valid and legally binding obligation of the Corporation, enforceable in accordance with its
terms and conditions. The Corporation need not give any notice to, make any filing with, or obtain any authorization, consent, or approval of any Governmental Authority in order to consummate the transactions contemplated by this Agreement.

 (c) Non-Contravention. Neither the execution and the delivery of this Agreement, nor the consummation of the transactions
contemplated hereby, will (i) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any Governmental Authority to which the Corporation is subject, or
(ii) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under the certificate of incorporation or
bylaws of the Corporation, or any agreement, contract, lease, license, instrument, or other arrangement to which the Corporation is a party or by which it is bound or to which any of its assets is subject. 
 (d) Consents/Approvals. No consent, approval, authorization, order, registration or qualification of or with any Governmental Authority or other
Person or entity is required for the issuance and sale of the Exchanged Shares by the Corporation to Holder or the consummation by the Corporation of the transactions contemplated by this Agreement. 
 (e) Exchanged Shares Authorization. The Exchanged Shares have been duly authorized and, when issued and delivered, will be duly and validly issued
and fully paid and nonassessable. Upon consummation of the transactions contemplated hereby, good and valid title to the Exchanged Shares, free and clear of all Claims, will be transferred by the Corporation to Holder. 
  

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 (f) The Corporation has such knowledge and experience in financial and business matters so as to be
capable of evaluating the merits and risk of an investment in and holding the Unidym Shares. The Corporation acknowledges that it has had access to all information concerning Unidym and it businesses, assets, liabilities, financial statements, and
obligations which have been requested and has been provided the opportunity to ask questions of and receive answers from Unidym to fully and effectively evaluate the Exchange and the transactions contemplated herein. The Corporation acknowledges
that Holder has not made, and the Corporation is not relying upon, any representations or warranties by Holder with respect to the business, operating or financial condition of Unidym. 
 (g) The Corporation understands that the Unidym Shares (and any Common Stock issued on conversion thereof) may not be sold, transferred or otherwise
disposed of without registration under the Securities Act or an exemption therefrom, and that in the absence of an effective registration statement covering the Unidym Shares (or the Common Stock issued on conversion thereof) or an available
exemption from registration under the Securities Act, the Unidym Shares (and any Common Stock issued on conversion thereof) must be held indefinitely. In particular, the Corporation is aware that the Unidym Shares (and any Common Stock issued on
conversion thereof) may not be sold pursuant to Rule 144 promulgated under the Securities Act unless all of the conditions of that Rule are met. Among the conditions for use of Rule 144 is the availability of current information to the public about
Unidym. Such information is not now available and the Corporation acknowledges that Unidym has no present plans to make such information available. 
 4. Representations and Warranties of Holder. The Holder represents and warrants to the Corporation as follows: 
 (a)
Legal Capacity. The Holder has full legal right, power and authority to execute and deliver this Agreement and to perform his, her or its obligations hereunder. This Agreement constitutes the valid and legally binding obligation of Holder,
enforceable in accordance with its terms and conditions. Holder need not give any notice to, make any filing with, or obtain any authorization, consent, or approval of any third party or Governmental Authority in order to consummate the transactions
contemplated by this Agreement. Holder has been duly organized, and is validly existing and in good standing, under the laws of its jurisdiction of formation, and it has properly taken all corporate, limited liability, partnership or other action
required to be taken by such Holder with respect to the execution and delivery of this Agreement and consummate the transactions contemplated by this Agreement. 
 (b) Title to Unidym Shares. Holder is the lawful record and beneficial owner of the Unidym Shares that will be transferred pursuant to Section 1 of this Agreement with good and marketable title thereto,
and the Holder has the right to sell, assign, convey, transfer and deliver the Unidym Shares and any and all rights and benefits incident to the ownership thereof (including, without limitation, any registration or other rights pertaining to the
Unidym Shares and the shares of common stock underlying such securities), all of which rights and benefits are transferable by the Holder to the Corporation pursuant to this Agreement, free and clear of all 

  

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Claims, except as set forth on the attached Schedule 4(b). The exchange of the securities as contemplated herein will (i) pass good and
marketable title to all the Unidym Shares transferred pursuant to Section 1 of this Agreement to the Corporation, free and clear of all Claims, and (ii) convey, free and clear of all Claims, any and all rights and benefits incident to the
ownership of such securities (including, without limitation, any registration or other rights pertaining to the securities and the shares of common stock underlying such securities). 
 (c) Non-Contravention. Neither the execution and the delivery of this Agreement, nor the consummation of the transactions contemplated hereby,
will (i) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any Governmental Authority to which Holder is subject, or (ii) conflict with, result in a breach of,
constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any agreement, organizational document, bylaws, partnership agreement, trust agreement,
agreement any trust is bound by, contract, lease, license, instrument, or other arrangement to which Holder, as applicable, is a party or by which it is bound or to which any of its assets is subject. 
 (d) Consents/Approvals. No consent, approval, authorization, order, registration or qualification of or with any Governmental Authority or other
entity or Person is required for the Exchange or the consummation by Holder of the transactions contemplated by this Agreement. 
 (e)
Investment Representations. 
 (i) Holder qualifies as an “accredited investor” (as defined in Rule 501(a) of
Regulation D under the Securities Act of 1933, as amended (the “Securities Act”)) and is acquiring the Exchanged Shares hereunder for its own account and with no intention of distributing or selling the Exchanged Shares except
pursuant to a registration or an available exemption under applicable law. Holder understands that the Exchanged Shares have not been (and are not being) registered under the Securities Act by reason of their contemplated issuance in transaction(s)
exempt from the registration and prospectus delivery requirements of the Securities Act pursuant to Section 4(2) thereof (including the rules and regulations promulgated thereunder), and that the reliance of the Corporation on such exemption
from registration is predicated in part on the representations and warranties of Holder hereunder. 
 (ii) Holder agrees that
it will not sell or otherwise dispose of any of the Exchanged Shares unless such sale or other disposition has been registered or is exempt from registration under the Securities Act and has been registered or qualified or is exempt from
registration or qualification under applicable securities laws of any State. 
 (iii) Holder understands that a restrictive
legend consistent with the foregoing set forth in Section 11(a) of this Agreement has been or will be placed on the certificates evidencing the Exchanged Shares to be issued to it hereunder, and related stop transfer instructions will be noted
in the transfer records of the Corporation and/or its transfer agent for the Exchanged Shares during the Prohibited Period. 
  

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 (iv) Holder represents that it is not an Affiliate (as defined herein) of the Corporation
and will covenant and agree that if it becomes an Affiliate, it will promptly provide notice to the Corporation of such status and comply with insider trading laws and policies and the applicable “control securities” provisions of Rule 144
in addition to any other obligations set forth in this Agreement. 
 (v) Holder has such knowledge and experience in financial
and business matters so as to be capable of evaluating the merits and risk of an investment in the Exchanged Shares. Holder acknowledges that it has had access to all information concerning the Corporation and Unidym and their respective businesses,
assets, liabilities, financial statements, and obligations which have been requested and has been provided the opportunity to ask questions of and receive answers from the Corporation and/or Unidym to fully and effectively evaluate the Exchange and
the transactions contemplated herein. Holder understands that a new holding period for purposes of Rule 144 under the Securities Act will be triggered with respect to the Exchanged Shares, and such Holder is able to bear the economic risk of loss of
the investment in such Exchanged Shares and is able to afford a complete loss of such investment. 
 5. Covenants. 
 (a) Current Public Information. Until such time as Rule 144 of the Securities Act or another similar exemption under the Securities Act is
available for the sale of all of Holder’s Exchanged Shares during any ninety (90) day period, the Corporation agrees to use commercially reasonable efforts to keep current in the filing of its quarterly and annual reports as required under
the Securities and Exchange Act of 1934, as amended (“Exchange Act”), in order to allow resales under Rule 144 of the Securities Act, it being understood that the Holder shall remain subject to the contractual lock-up and prohibited
sales period set forth in this Agreement. The Corporation shall notify Holder during any period it is not current with any such filing and shall take all commercially reasonable steps to cure any such late filing in a timely fashion. 
 (b) Removal of Legend. The Corporation shall use commercially reasonable efforts with the assistance of the Holder to facilitate removal of the
restrictive legends set forth in Section 11(a) of this Agreement from the Exchanged Shares within ten (10) business days after expiration of the Prohibited Period (provided certificates have been submitted to the Transfer Agent prior to
the end of the Prohibited Period). If for any reason the Legend cannot be removed as contemplated by this section, the Corporation shall use commercially reasonable efforts to work with the Holder to find an alternative solution that does not
require any extraordinary or material costs to be incurred by the Corporation and the liquidated damages contemplated by this section shall not apply. 
  

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 6. Restrictions on Exchanged Shares. 
 (a) Prohibited Sale Period. For a period of twelve (12) months from the Closing Date (the “Prohibited Period”), Holder agrees
that it shall not (i) offer, sell, contract to sell, pledge or otherwise dispose of any of such Holder’s Exchanged Shares (or securities convertible into or exchangeable for such Exchanged Shares) received in the Exchange, whether held
directly or indirectly, or (ii) enter into a transaction which would have the same effect, or enter into any swap, option, contract to purchase or sell, hedge or other arrangement that transfers, in whole or in part, any economic consequences
of owning any such security. 
 (b) Permitted Sales. For the purpose of clarification, the Corporation acknowledges that nothing
contained in Section 6(a) of this Agreement is intended to restrict Holder’s ability to sell (i) Arrowhead Shares that are not Exchanged Shares that are held or acquired by the Holder in transactions outside of this Agreement in the
open market (unless as part of a plan or scheme to evade the terms and conditions of this Agreement); (ii) Exchanged Shares in a private, non-public negotiated transaction in which, if reasonably requested by the Corporation, Holder shall have
furnished an opinion of counsel, reasonably satisfactory to the Corporation, that such sale will not require registration of the Exchanged Shares under the Securities Act;; or (iii) shares of Exchanged Shares pursuant to Rule 144, provided that
the Exchanged Shares are sold to a single party in a single transaction (the Corporation shall utilize commercially reasonable effort to assist in the identification of such a potential party if desired by Holder) and the proceeds from the sale of
such shares are re-invested in an equity financing (including a financing involving debt convertible into equity) of Unidym. Notwithstanding the foregoing, Holder acknowledges that it may be subject to other restrictions imposed on it by the federal
or state securities laws of the United States. 
 7. Termination. 
 (a) In the event the Closing Date does not occur on or before September 15, 2009, this Agreement may be terminated in writing after such date
(i) by the Corporation or (ii) by the Holder upon two (2) days prior written notice to the Corporation. 
 (b) In the event
that any Person exercises its co-sale rights under the ROFR and Co-Sale Agreement, and the number of Unidym Shares to be exchanged is reduced, the Holder shall have the option to terminate this Agreement and withdraw all of Holder’s Unidym
Shares from the Exchange, upon two (2) days prior written notice to the Corporation. 
 8. Indemnification. 
 (a) The Holder understands and acknowledges that the Corporation is relying on representations, warranties, covenants and agreements made by such Holder
to the Corporation in this Agreement. The Holder, as applicable, hereby agrees to indemnify, defend and hold harmless the Corporation and its directors, officers, shareholders, principals, Affiliates, representatives, agents and employees (each, a
“Corporation Indemnified Party”), against any and all loss, damage, liability or expense (collectively, “Losses”) which any Corporation Indemnified Party may suffer, sustain or incur by reason of or in connection
with or arising under (i) any inaccuracy or breach of representation or warranty of such Holder contained in this 

  

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Agreement; (ii) the breach of this Agreement or any covenant or agreement made by such Holder in this Agreement; or (iii) the sale or distribution
by such Holder of the Exchanged Shares in violation of this Agreement and/or the Securities Act or any other applicable law. This right to indemnification is in addition to any other remedy available to the Corporation under this Agreement. In no
event shall the Holder or its Affiliates or their respective officers, directors, employees, trustees be liable to a Corporation Indemnified Party for indirect, incidental, consequential, special, exemplary or punitive damages or attorney’s
fees of any kind. 
 (b) The Corporation understands and acknowledges that the Holder is relying on representations, warranties, covenants
and agreements made by the Corporation to such Holder in this Agreement. The Corporation hereby agrees to indemnify, defend and hold harmless the Holder and its officers, principals, Affiliates, trustees, agents and representatives, as applicable,
(each, a “Holder Indemnified Party”), against any and all Losses which any Holder Indemnified Party may suffer, sustain or incur by reason of or in connection with or arising under (i) any inaccuracy or breach of representation
or warranty of the Corporation contained in this Agreement; or (ii) the breach of this Agreement or any covenant or agreement made by the Corporation in this Agreement. This right to indemnification is in addition to any other remedy available
to each Holder under this Agreement. In no event shall the Corporation or its Affiliates or their respective officers, directors, employees, trustees be liable to a Holder Indemnified Party for indirect, incidental, consequential, special, exemplary
or punitive damages or attorney’s fees of any kind. 
 9. Waiver of Certain Rights. Under the “Unidym, Inc., Subscription
Agreement, Series C-1 Preferred Stock” dated November 11, 2008 (the “Holder C-1 Subscription Agreement”), the Holder has certain rights vis-à-vis Unidym with respect to the Unidym Shares and the Retained Unidym
Shares. Specifically, Section 5 of the Holder C-1 Subscription Agreement sets forth Optional Put Rights. Section 5.1 sets forth “Put A Right” and Section 5.2 sets forth “Put B Rights.” 
 (a) Holder hereby irrevocably waives, discharges and declares moot any and all rights it has with respect to both the Put A Right and the Put B Right in
their entirety, with respect to the Unidym Shares, effective immediately prior to the Exchange. 
 (b) To the extent Holder has Retained
Unidym Shares subsequent to the Exchange, the Holder hereby confirms that it has agreed to irrevocably waive, discharge and declare moot any and all rights it has with respect to both the Put A Right and the Put B Right in their entirety, with
respect to such Retained Unidym Shares, subject only to and effective upon Unidym meeting certain funding requirements on or prior to July 31, 2009 as set forth in the Agreement Regarding Intellectual Property and Waiver of Put Options between
Unidym and TEL Venture Capital Inc. dated June     , 2009 attached hereto as Exhibit B. 
 (c) Except as set forth in
this Section 9, the Holder C-1 Subscription Agreement shall remain in force unchanged. 
  

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 10. Certain Definitions. 
 (a) “Affiliate” (and, with a correlative meaning, “affiliated”) means, with respect to any Person, any direct or
indirect subsidiary of such Person, and any other Person that directly, or through one or more intermediaries, Controls or is Controlled by or is under common Control with such first Person. As used in this definition, “Control”
(and, with correlative meanings, “Controlled by” and “under common Control with”) means the possession, directly or indirectly, of the power to direct the management or policies of a Person (whether through
ownership of securities or partnership or other ownership interests, by contract or otherwise). 
 (b) “Claims” shall mean
the following of any nature whatsoever: security interests, liens, deeds of trust, hypothecations, pledges, claims (pending or threatened), charges, escrows, encumbrances, lock-up arrangements, options, rights of first offer or refusal, community
property rights, mortgages, indentures, security agreements or other agreements, arrangements, contracts, commitments, understandings or obligations, whether written or oral and whether or not relating in any way to credit or the borrowing of money.

 (c) “Governmental Authority” means any entity exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government, including any governmental authority, independent or autonomous official authority, agency, department, board, commission or instrumentality of the United States or any other country, or any political
subdivision thereof, whether federal, state or local, and any tribunal, court or arbitrator(s) of competent jurisdiction. 
 (d)
“Person(s)” means and includes any natural persons, sole proprietorships, corporations, limited partnerships, limited liability companies, general partnerships, joint stock companies, joint ventures, associations, companies, trusts,
banks, trust companies, land trusts, business trusts or other organizations, whether or not legal entities, all Governmental Authorities and all other entities. 
 (e) “Transfer Agent” shall mean Computershare Limited, 350 Indiana St., Suite 800, Golden, CO 80401, in its capacity as transfer agent to the Corporation, or any successor transfer agent to the
Corporation. 
 11. Miscellaneous. 
 (a) Legend Requirement. Each certificate representing Exchanged Shares held or acquired by Holder will contain legends acknowledging that the shares represented by such certificate are restricted securities and
are subject to this Agreement, as follows: 
 THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS, AND NO SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION, GIFT, TRANSFER OR OTHER DISPOSITION OR OFFER TO DO ANY OF THE FOREGOING MAY BE MADE UNLESS A REGISTRATION
STATEMENT UNDER THE SECURITIES ACT AND OTHER APPLICABLE SECURITIES LAWS WITH RESPECT TO SUCH 

  

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SECURITIES IS THEN IN EFFECT, OR IN THE OPINION OF COUNSEL ACCEPTABLE TO THE ISSUER, SUCH REGISTRATION UNDER THE SECURITIES ACT AND OTHER APPLICABLE
SECURITIES LAWS IS NOT REQUIRED. 
 THE OWNERSHIP, ENCUMBRANCE, PLEDGE, ASSIGNMENT, SALE, TRANSFER OR OTHER DISPOSITION OF THIS
CERTIFICATE OF STOCK, OR SHARES ISSUED IN LIEU HEREOF, IS SUBJECT TO THE RESTRICTIONS CONTAINED IN AN EXCHANGE AGREEMENT (“EXCHANGE AGREEMENT”) BY AND AMONG THE CORPORATION AND CERTAIN STOCKHOLDERS OF THE CORPORATION THAT REMAINS IN EFFECT
UNTIL JUNE 15, 2010. A COPY OF THE EXCHANGE AGREEMENT IS ON FILE AT THE OFFICE OF THE CORPORATION. ANY ENCUMBRANCE, PLEDGE, ASSIGNMENT, SALE, TRANSFER OR OTHER DISPOSITION OF THIS STOCK CONTRARY TO THE EXCHANGE AGREEMENT SHALL BE NULL AND VOID AND
OF NO EFFECT WHATSOEVER. 
 The Transfer Agent and any applicable broker shall each be instructed not to recognize any transfer by the Holder that does
not comply with this Agreement. 
 (b) Assistance. By executing this Agreement, the Holder hereby requests that the Corporation
endeavor to assist Holder (without warranty of any kind) in their compliance with the right of first refusal and co-sale mechanics and requirements set forth in the ROFR and Co-Sale Agreement. The Holder agrees to fully and promptly cooperate with
the Corporation. 
 (c) Equitable Remedy. Each Party shall agree that in addition to any other remedy that may be available to such
Party hereunder, the Party shall be entitled to specific performance. Notwithstanding anything to the contrary in this Agreement, each Party shall be responsible for paying its own expenses, including legal fees, incurred in enforcing this
Agreement. 
 (d) Notices. All notices, claims, demands and other communications hereunder shall be in writing and shall be deemed
given upon (i) confirmation of receipt of a facsimile transmission, (ii) confirmation of delivery when delivered by a standard overnight carrier or (iii) the expiration of five (5) business days after the day when mailed by
registered or certified mail (postage prepaid, return receipt requested), addressed to the respective Parties at the following addresses (or such other address for a Party as shall be specified by like notice): 
  

			
	If to the Corporation, to:	  	 Arrowhead Research Corporation
 201 South Lake Avenue,
Suite 703
 Pasadena, CA 91101
  
 Attention: Dr. Christopher Anzalone
 Telephone:
(626) 304-3400
 Fax: (626) 304-3401

  

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	If to Holder, to:	  	 TEL Venture Capital, Inc.
 2953 Bunker Hill Lane,
Suite 300
 Santa Clara, CA 95054
  
 Attention: Tetsuo Hirose
 Telephone: (408) 566-4403
 Facsimile: (408) 566-4410

 (e) Third-Party Beneficiaries. The Corporation and Holder acknowledge and agree that Unidym
is intended to be a third-party beneficiary of Section 9 of this Agreement and that Unidym shall have the right to rely on and enforce Section 9 as if it were party hereto. 
 (f) Entire Agreement. This Agreement (including the documents referred to herein) constitutes the entire agreement among the parties hereto and
supersedes any prior understandings, agreements, or representations by or among the parties, written or oral, to the extent they relate in any way to the subject matter hereof. 
 (g) Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together
will constitute one and the same instrument. 
 (h) Headings. The section headings contained in this Agreement are inserted for
convenience only and shall not affect in any way the meaning or interpretation of this Agreement. 
 (i) Governing Law. This Agreement
shall be governed by and construed in accordance with the domestic laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of Delaware. 
 (j) Amendments and Waivers. No amendment of any
provision of this Agreement shall be valid unless the same shall be in writing and signed by the Corporation and the Holder. 
 (k)
Gender. All pronouns and any variation thereof shall be deemed to refer to the masculine, feminine, neuter, singular, or plural as the identity of the person or entity or the context may require. 
 (l) Severability. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect
the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction. 
 (m) No Presumption Against Drafter. Each of the Parties has jointly participated in the negotiation and drafting of this Agreement. In the event
of any ambiguity or a question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by each of the Parties and no presumptions or burdens of proof shall arise favoring any Party by virtue of the authorship of
any of the provisions of this Agreement. 
  

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 (n) Successors and Assigns. Except as otherwise specifically provided herein, this Agreement shall
be binding upon, and inure to the benefit of, the Parties hereto and their respective successors and permitted assigns. 
 (o)
Survival. All covenants, agreements, representations and warranties made herein shall survive the Closing and the consummation of the Exchange of the Unidym Shares. 
  

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 IN WITNESS WHEREOF, this Exchange Agreement has been duly executed by or on behalf of each of the parties
hereto on the date first above written. 
  

			
	 ARROWHEAD RESEARCH CORPORATION,
 a Delaware
corporation

		
	By:	 	 /s/ Christopher Anzalone

	Name:	 	Christopher Anzalone
	Title:	 	CEO and President
	
	HOLDER:
	
	TEL Venture Capital, Inc.
		
	By:	 	 /s/ Mike Yamaguchi

	Name:	 	Mike Yamaguchi
	Title:	 	CEO

 Unidym acknowledges and is in agreement with Sections 9 and 11(e) of this Agreement. 
  

			
	UNIDYM, INC:
		
	By:	 	 /s/ Mark Tilley

	Name:	 	Mark Tilley
	Title:	 	CEO

  

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 EXHIBIT A – Exchanged Shares 
  

					
	 Holder (Name and Address)
	  	Number and
Class of Unidym
Shares to be
Exchanged	  	Number of
Exchanged
Shares to be
Received
	 TEL Venture Capital, Inc.
 2953 Bunker Hill Lane, Suite
300
 Santa Clara, CA 95054
	  	1,111,111
 Series C
	  	1,944,444
		  	833,333
 Series C-1Subscription Agreement dated July 30, 2009

 Exhibit 10.7 
 UNIDYM, INC. 
 SUBSCRIPTION AGREEMENT 
 SERIES C-1 PREFERRED STOCK 

 SUBSCRIPTION AGREEMENT 
 THIS SUBSCRIPTION AGREEMENT (this “Agreement”) is made as of the last date indicated on the signature pages hereto between
Unidym, Inc., a Delaware corporation (the “Company”), and the undersigned investor party hereto (“Investor”). 
 RECITALS 
 WHEREAS, the Company wishes to sell additional shares of the Company’s Series C-1
Preferred Stock (“Shares”) to the Investor, at a purchase price of $1.80 per Share, and the Investor wishes to purchase Shares from the Company. 
 NOW, THEREFORE, in consideration of the mutual covenants, agreements and conditions, and upon acknowledgement of each of the parties of the receipt of valuable consideration, the parties herein agree as follows:

 1. Purchase and Sale of Shares. 
 1.1 The Closing. At the Closing (as defined below), the Company shall issue and sell to Investor such number of Shares as is set forth immediately below Investor’s name on the signature pages hereto
against delivery to the Company by Investor of an amount equal to $1.80 times the number of Shares to be purchased by the Investor (the “Purchase Price”), paid by (a) cash (by check or wire transfer) in United States
Dollars to the Company to be held in escrow until the Closing, for release to the Company thereafter or (b) cancellation of indebtedness of the Company to Investor. Promptly after the Closing, the Company shall deliver to Investor a duly
executed certificate representing the Shares which Investor is purchasing hereunder. The purchase and sale transaction contemplated hereby will close on the first business day immediately following the satisfaction of the Closing conditions set
forth herein, which is targeted to be no later than 5:00 p.m., Pacific Time on July 31, 2009, as such date and time may be modified by the Company in its sole discretion (such day, the “Closing”). 
 1.2 Additional Closing(s). 
 (a)
Conditions of Additional Closing(s). At any time and from time to time following the Closing, the Company may, at one or more additional closings (each an “Additional Closing”), without obtaining the signature, consent
or permission of Investor, offer and sell to other investors (the “New Investors”), at a price of $1.80 per Share, additional Shares. New Investors may include persons or entities who are already owners of shares of the
Company’s Series C-1 Preferred Stock or other capital stock. 
 (b) Amendments. The Company and the New Investors purchasing
Shares at each Additional Closing will execute a Subscription Agreement in substantially the same form hereof, and the New Investors will, to the extent not already a party thereto, execute counterpart signature pages to: (i) the Amended and
Restated Investors’ Rights Agreement in the form attached to this Agreement as Exhibit A, as amended (the “Investors’ Rights Agreement”), (ii) the Amended and Restated Right of First Refusal and
Co-Sale Agreement in the form attached to this Agreement as Exhibit B, as amended (the “ROFR Agreement”), and (iii) the Amended and Restated Voting Agreement in the form attached to this Agreement as Exhibit
C, as amended (the “Voting Agreement”) (the Investors’ Rights Agreement, ROFR Agreement and Voting Agreement, as such agreements may be amended, collectively, the “Related Agreements”). Such
New Investors will, upon delivery to the Company of such signature pages, become parties to, and bound by, the Related Agreements, each to the same extent as if they had been an Investor at the time of issuance of the first share of Series C-1
Preferred Stock. 
  

 1 

 (c) Status of New Investors. Upon the completion of each Additional Closing as provided in this
Section 1.2, each New Investor will be deemed to be an “Investor” for all purposes of the Related Agreements. 
 2.
Representations and Warranties of the Company. The Company hereby represents and warrants to Investor, that the statements in the following paragraphs of this Section 2 are all true and complete as of the date hereof: 
 2.1 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. The Company is duly qualified to transact business and is in good standing in each jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect on (a) the present
or future business, assets, or operations, of the Company, taken as a whole or (b) the Company’s ability to perform this Agreement or the Related Agreements (as defined below) (a “Material Adverse Effect”).

 2.2 Capitalization and Voting Rights. 
 (a) Authorized Stock. There are authorized for issuance 50,000,000 shares of common stock, par value $0.0001 (the “Common Stock”) and 22,506,585 shares of preferred stock, par value
$0.0001 (the “Preferred Stock”), of which 5,000,000 shares are designated as Series A Convertible Preferred Stock (“Series A Preferred Stock”), 5,673,252 shares are designated as Series B Senior
Convertible Preferred Stock (“Series B Preferred Stock”), 8,500,000 shares are designated as Series C Senior Convertible Preferred Stock (“Series C Preferred Stock”), and 3,333,333 shares are
designated as Series C-1 Preferred Stock (“Series C-1 Preferred Stock”). Immediately prior to the Closing, the outstanding stock of the Company consists of the following: 
 (i) Common Stock. Three Million Seven Hundred Eighty Thousand One Hundred (3,780,100) shares of issued and outstanding Common
Stock. 
 (ii) Series A Preferred Stock. Five Million (5,000,000) shares of issued and outstanding Series A
Preferred Stock, which shares of Series A Preferred Stock are convertible into 1.680096462 shares of Common Stock upon (x) an involuntary or voluntary liquidation, dissolution and winding up of the Company, (y) a Deemed Liquidation Event
(as such term is defined in the Restated Certificate (as defined below)) or (z) a Qualified IPO (as such term is defined in the Restated Certificate). 
 (iii) Series B Preferred Stock. Five Million Six Hundred Seventy Three Thousand Two Hundred Fifty-Two (5,673,252) shares of
issued and outstanding Series B Preferred Stock, which shares of Series B Preferred Stock are convertible into 1.000042304 shares of Common Stock. 
 (iv) Series C Preferred Stock. Eight Million One Hundred Twenty Five Thousand Eight Hundred Eighty-Nine (8,125,889) shares of issued and outstanding Series C Preferred Stock. 
 (v) Series C-1 Preferred Stock. Two Million Two Hundred FiftyThousand Six Hundred Sixty Seven (2,250,667) shares of issued
and outstanding Series C-1 Preferred Stock. 
 Upon the Closing, the rights, preferences and privileges of each series of Preferred Stock will be as stated
in the Restated Certificate and as provided by law. 
  

 2 

 (b) Valid Issuance. The outstanding shares of Common Stock and Preferred Stock are all duly and
validly authorized and issued, fully paid and nonassessable. 
 (c) Rights to Acquire. Except for (i) the conversion privileges
of the Preferred Stock, (ii) the rights of first refusal provided in Section 4 of the Investors’ Rights Agreement, (iii) the Five Million (5,000,000) shares of Common Stock reserved for issuance to employees, consultants
and/or directors pursuant to the Company’s 2006 Stock Option/Stock Issuance Plan (the “Option Plan”), of which options to purchase an aggregate of Three Million Eight Hundred Seven Thousand Two Hundred Two
(3,807,202) shares of Common Stock are currently outstanding, (iv) outstanding warrants to purchase Three Million Five Hundred Ten Thousand Two Hundred Eight (3,510,208) shares of Common Stock and (vi) outstanding restricted
stock units for the issuance of One Million One Hundred Four Thousand Ten (1,104,010) shares of Common Stock, and (v) the Company’s obligation to purchase 277,779 shares of Series C-1 Preferred Stock from TEL Venture Capital Inc.
(“TEL”) in the event certain conditions are not met and TEL requests that Unidym purchases the 277,779 shares, there are not outstanding any options, warrants, rights (including conversion or preemptive rights) or agreements for the
purchase or acquisition from the Company of any shares of its capital stock. 
 (d) Voting of Shares. Other than the Voting
Agreement, the Company is not a party or subject to any agreement or understanding and, to the Company’s knowledge, there is no agreement or understanding between any persons and/or entities which affects or relates to the voting or giving of
written consents with respect to any security or by a director of the Company. 
 (e) Market Stand-Off. To the Company’s best
knowledge, all outstanding shares of preferred stock of the Company and all capital stock of the Company issuable upon the exercise of outstanding employee incentive stock options are subject to a one hundred eighty (180) day “market
stand-off” restriction upon an initial public offering by the Company resulting in at least $20 Million in gross proceeds pursuant to a registration statement filed with the Securities and Exchange Commission (“SEC”)
pursuant to the Securities Act of 1933, as amended (the “Act”). 
 2.3 Subsidiaries. Except for (i) the
minority ownership position in Nexeon MedSystems pursuant to the license agreement with Nanotech Catheter Solutions, and (ii) the 100% ownership position in Nanoconduction, Inc., the Company does not presently own or control, directly or
indirectly, any interest in any other corporation, association, or other business entity. The Company is not a participant in any joint venture, partnership, or similar arrangement. 
 2.4 Authorization. All corporate action on the part of the Company, its officers, directors and stockholders necessary for the authorization,
execution and delivery of this Agreement, the Related Agreements, the performance of all obligations of the Company hereunder and thereunder, and the authorization, sale and issuance of the Shares being sold hereunder, and the Common Stock issuable
upon conversion of the Shares, has been taken or will be taken prior to the Closing. As of the Closing, this Agreement and the Related Agreements constitute valid and legally binding obligations of the Company, enforceable 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 other equitable remedies, and (iii) to the extent the indemnification provisions contained in the Related Agreements may be limited by applicable federal or state securities laws.

 2.5 Valid Issuance of Preferred and Common Stock. The Shares that are being purchased by Investor hereunder, when issued, sold and
delivered in accordance with the terms of this Agreement for the consideration expressed herein, will be duly and validly issued, fully paid and nonassessable and will be free of restrictions on transfer, other than restrictions on transfer, if any,
(i) under this Agreement, the Investor’s Rights Agreement and the ROFR Agreement, (ii) under applicable state and 
  

 3 

 federal securities laws and (iii) otherwise imposed as a result of actions taken by Investor. The Common Stock
issuable upon conversion of the Shares purchased under this Agreement has been duly and validly reserved for issuance and, upon issuance in accordance with the terms of the Company’s Fourth Amended and Restated Certificate of Incorporation in
the form attached hereto as Exhibit D-1 (the “Restated Certificate”), will be duly and validly issued, fully paid and nonassessable and will be free of restrictions on transfer, other than restrictions on transfer, if
any (i) under this Agreement, the Investor’s Rights Agreement and the ROFR Agreement, (ii) under applicable state and federal securities laws and (iii) otherwise imposed as a result of actions taken by Investor. 
 2.6 Governmental Consents. No consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing
with, any federal, state or local governmental authority on the part of the Company is required in connection with the consummation of the transactions contemplated by this Agreement and the Related Agreements, except for such consents, approvals,
orders, authorizations, registrations, qualifications, designations, declarations or filings which are not required to be obtained prior to the Closing, and such filings as are required pursuant to applicable federal and state securities laws and
blue sky laws, which filings will be effected within the required statutory period. 
 2.7 Offering. Subject in part to the truth and
accuracy of Investor’s representations set forth in Section 3 of this Agreement, the offer, sale and issuance of the Shares as contemplated by this Agreement are exempt from the registration requirements of the Act, and the qualification
or registration requirements of applicable state blue sky laws, as such registration requirements and laws currently exist. 
 2.8
Litigation. There is no action, suit, proceeding or investigation pending or, to the Company’s knowledge, currently threatened in writing against the Company that questions the validity of this Agreement or the Related Agreements, or the
right of the Company to enter into such agreements or to consummate the transactions contemplated hereby and thereby, or that would reasonably be expected to result in a 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. 
 2.9 Proprietary Information Agreements. Each current employee of the Company has executed a Proprietary Information and
Inventions Agreement in substantially the form provided to Investor upon request by Investor. The Company is not aware that any such employee is in violation thereof. 
 2.10 Compliance with Other Instruments. The Company is not in violation of any provision of its Restated Certificate or Bylaws nor, to its knowledge, of any instrument, judgment, order, writ, decree or
contract, statute, rule or regulation to which the Company is subject and a violation of which would reasonably be expected to have a 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 be in conflict with or constitute, with or without the passage of time and giving of notice, either a default under any such provision or
an event that results in the creation of any lien, charge or encumbrance upon any assets of the Company or the suspension, revocation, impairment, forfeiture or nonrenewal of any material permit, license, authorization or approval applicable to the
Company, its business or operations or any of its assets or properties. 
 2.11 Agreements; Action. Except for agreements explicitly
contemplated hereby, there are no agreements or understandings between the Company and any of its officers, directors, affiliates or any affiliate thereof (except for quarterly allocations for services performed by Arrowhead) and except as set forth
on Schedule 2.11, 
  

 4 

 (a) there are no agreements, understandings, instruments, contracts, judgments, orders, writs or decrees
to which the Company is a party or by which it is bound that may involve (i) obligations (contingent or otherwise) of, or payments to the Company, in excess of $10,000, other than obligations of, or payments to, the Company arising from
purchase or sale agreements entered into in the ordinary course of business, or (ii) provisions materially restricting the development, manufacture or distribution of the Company’s products or services, and 
 (b) 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) made any loans or advances to any person, other than ordinary advances for travel expenses, or (iii) sold, exchanged or otherwise disposed of any of its assets or rights. 
 (c) For the purposes of subsections (a) and (b) above, all indebtedness, liabilities, agreements, understandings, instruments and contracts
involving the same person or entity (including persons or entities the Company has reason to believe are affiliated therewith) shall be aggregated for the purpose of meeting the individual minimum dollar amounts of such subsections. 
 2.12 Related-Party Transactions. No employee, officer or director of the Company or member of his or her immediate family is indebted to the
Company, nor is the Company indebted (or committed to make loans or extend or guarantee credit) to any of them. To the best of the Company’s knowledge, other than in Arrowhead Research Corporation, a Delaware corporation
(“Arrowhead”) or in any of Arrowhead’s subsidiaries, none of such persons has any direct or indirect ownership interest in any firm or corporation with which the Company is affiliated or with which the Company has a
business relationship, or any firm or corporation that competes with the Company, except that employees, officers or directors of the Company and members of their immediate families may own stock in publicly traded companies that may compete with
the Company. No member of the immediate family of any officer or director of the Company is directly or indirectly interested in any material contract with the Company. 
 2.13 No Undisclosed Liabilities. Except as set forth in the Financial Statements (as defined in Section 2.25), the Company does not have any liabilities (whether accrued, absolute, unliquidated, contingent
or otherwise, whether or not known to the Company, whether due or to become due and regardless of when asserted) arising out of transactions entered into at or prior to the Closing, or any action or inaction at or prior to the Closing or any state
of facts existing at or prior to the Closing other than (i) liabilities and obligations that have arisen after March 31, 2009 in the ordinary course of business (none of which is material and none of which is a liability resulting from
breach of contract, breach of warranty, tort, infringement, claim or lawsuit), or (ii) obligations under contracts and commitments incurred in the ordinary course of business that would not be required to be reflected in financial statements
prepared in accordance with generally accepted accounting principles. The Company is not a guarantor or indemnitor of any indebtedness of any other person, firm or corporation. 
 2.14 Permits. The Company has all franchises, permits, licenses and any similar authority necessary for the conduct of its business as now being
conducted by it, except to the extent the lack of which would not reasonably be expected to have a Material Adversely Effect. The Company is not in default under any of such franchises, permits, licenses or other similar authority which would be
reasonably expected to have a Material Adverse Effect. 
 2.15 Environmental and Safety Laws. 
 (a) Except as set forth in Section 2.14(b), to its knowledge, the Company is not in violation of any applicable statute, law or regulation relating
to the environment or occupational health and safety, and, to its knowledge, no material expenditures are or will be required in order to comply with any such existing statute, law or regulation. 
  

 5 

 (b) The US Environmental Protection Agency (the “EPA”) has issued recent
guidance regarding the classification of carbon nanotubes under the Toxic Substances Control Act. The EPA has stated that it now considers carbon nanotubes to be “new chemicals” rather than materials previously listed on the TSCA
Inventory, such as synthetic graphite or other carbon compounds. The Company is in the process of reviewing its compliance with this guidance and has filed paperwork with the EPA. Accordingly, the Company withholds any representation or warranty
regarding the matters disclosed in this Section 2.14(b), including its compliance with the new EPA guidance. 
 2.16 Disclosure.
The Company has fully provided Investor with all the information that Investor has requested in writing for deciding whether to purchase the Shares. Neither this Agreement (including all the exhibits and schedules hereto) nor any other statements or
certificates made or delivered in connection herewith contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements herein or therein not misleading in light of the circumstances under which they
were made. 
 2.17 Registration Rights. Except as provided in the Investors’ Rights Agreement, the Company has not granted or
agreed to grant any registration rights, including piggyback rights, to any person or entity. 
 2.18 Title to Property and Assets.
The property and assets used by the Company in its business are owned by the Company free and clear of all mortgages, liens, loans and encumbrances, except for (i) statutory liens for the payment of current taxes that are not yet delinquent and
(ii) for liens, encumbrances and security interests that arise in the ordinary course of business and/or pursuant to applicable law, and minor defects in title, none of which, individually or in the aggregate, would reasonably be expected to
have a Material Adverse Effect. With respect to the property and assets it leases, the Company is in compliance with such leases and, to its knowledge, holds a valid leasehold interest free of any liens, claims or encumbrances, subject to clauses
(i)-(ii) of the foregoing sentence, except to the extent the failure to be in compliance or hold a valid leasehold interest would not reasonably be expected to have a Material Adverse Effect. 
 2.19 Labor Agreements and Actions. The Company is not bound by or subject to any contract, commitment or arrangement with any labor union, and no
labor union has requested or, to the Company’s knowledge, has sought to represent any of the employees, representatives or agents of the Company. There is no strike or other labor dispute involving the Company pending, or to the Company’s
knowledge, threatened in writing, that would reasonably be expected to have a Material Adverse Effect, nor is the Company aware of any labor organization activity involving its employees. The Company is not aware that any officer or key employee, or
that any group of key employees, 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. The Company is not a party to or bound by any currently effective employment contract, deferred compensation agreement, bonus plan, incentive plan, profit sharing plan, retirement agreement or other employee
compensation agreement. 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. 
 2.20 Brokers Fees. The Company expects to pay third-party finders or advisors finder’s fees (in cash and/or equity) for Shares placed by
such third party. For the sake of clarity, no finder’s fees will be paid for Shares not placed by a third-party finder or advisor. 
  

 6 

 2.21 Intellectual Property. To its knowledge, the Company has rights to all patents, patent
applications, trademarks, service marks, trade names, copyrights, trade secrets, licenses, inventions, information and proprietary rights and processes (collectively, “Intellectual Property”) it needs to operate its business
as currently conducted, other than Intellectual Property that it reasonably believes is invalid or it can obtain rights to through a license or cross-licensing arrangement. The Company has not received any communications alleging that the Company
has violated or, by conducting its business as presently proposed, would violate any of the Intellectual Property of any other person or entity. The Company is not aware that any 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 interfere with the use of his or her best efforts to promote the interests of the Company or
that would conflict with the Company’s business as presently proposed to be conducted. Neither the execution nor delivery of this Agreement, nor the carrying on of the Company’s business by the employees of the Company, nor the conduct of
the Company’s business as presently proposed, will, to the Company’s knowledge, 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. The Company does not believe it is or will be necessary to utilize any inventions of any of its employees (or people it currently intends to hire) made prior to their employment by the Company. 
 2.22 Tax Returns and Payments. There are no federal, state, county, local or foreign taxes dues and payable by the Company which have not been
timely paid. There are no accrued and unpaid federal, state, country, local or foreign taxes of the Company which 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 agency. 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. 
 2.23 Insurance. The Company has in full force and effect fire and
casualty insurance policies with extended coverage, sufficient in amount (subject to reasonable deductions) to allow it to replace any of its properties that might be damaged or destroyed. 
 2.24 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 Employee Retirement Income Security Act of 1974, as amended, and has complied in all material respects with all applicable laws for any such employee benefit plan.

 2.25 Financial Statements. Attached hereto in Schedule 2.25 is the Company’s unaudited financial statements (balance sheet,
income statement and statement of cash flows) dated March 31, 2008 (“Financial Statements”). The Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles applied on a
consistent basis throughout the periods indicated and with each other. The Financial Statements are true, correct and complete and fairly present the financial condition and operating results of the Company as of the dates, and for the periods,
indicated therein, subject to normal year-end audit adjustments. 
 2.26 Changes. Since March 31, 2009, and at all times up to
the Closing, there have not been: 
  

	 	a.	any material change in the assets, liabilities, financial condition or operating results of the Company from that reflected in the Financial Statements, except (i) the sale by
the Company of certain assets, including equipment, inventory and intellectual property rights pursuant to a Asset purchase Agreement, dated as of May 1, 2009, between the Company and Continental Carbon Nanotechnologies, and (ii) changes
in the ordinary course of business that have not been, in the aggregate, materially adverse; 

  

 7 

	 	b.	any damage, destruction or loss, whether or not covered by insurance, materially and adversely affecting the assets, properties, financial condition, operating results, prospects or
business of the Company (as such business is presently conducted and as it is proposed to be conducted); 

  

	 	c.	any material change or amendment to a material contract or arrangement by which the Company or any of its assets or properties is bound or subject; 

  

	 	d.	any declaration, setting aside or payment or other distribution in respect of any of the Company’s capital stock, or any direct or indirect redemption, purchase or other
acquisition of any of such stock by the Company; 

  

	 	e.	any sale, assignment or transfer of any patents, trademarks, copyrights, trade secrets or other intangible assets, except the sale by the Company of certain assets, including
equipment, inventory and intellectual property rights pursuant to a Asset purchase Agreement, dated as of May 1, 2009, between the Company and Continental Carbon Nanotechnologies; 

  

	 	f.	to the Company’s knowledge, any other event or condition of any character that might materially and adversely affect the assets, properties, financial condition, operating
results or business of the Company (as such business is presently conducted and as it is proposed to be conducted); or 

  

	 	g.	any agreement or commitment by the Company to do any of the things described in this Section 2.26. 

 3. Representations and Warranties of Investor. Investor hereby represents, warrants and covenants to the Company that: 
 3.1 Authorization. Investor has full power and authority to enter into this Agreement and the Related Agreements to which it is a party, and each
such agreement constitutes its valid and legally binding obligation, enforceable in accordance with its 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 other equitable remedies, and (iii) to the extent the indemnification provisions contained
in the Related Agreements may be limited by applicable federal or state securities laws. 
 3.2 Purchase Entirely for Own Account.
This Agreement is made with Investor in reliance upon Investor’s representation to the Company, which by Investor’s execution of this Agreement, Investor hereby confirms that the Shares will be acquired for investment for Investor’s
own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that Investor has no present intention of selling, granting any participation in or otherwise distributing the same. By executing this
Agreement, Investor further represents that Investor does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to any of the
Shares. 
 3.3 Disclosure of Information. Investor believes it has received all the information it considers necessary or appropriate
for deciding whether to purchase the Shares. Investor further represents that it has had an opportunity to ask questions and receive answers from the Company 
  

 8 

 regarding the terms and conditions of the offering of the Shares and the business, properties, prospects and financial
condition of the Company. The foregoing, however, does not limit or modify the representations and warranties of the Company in Section 2 of this Agreement or the right of Investor to rely thereon. 
 3.4 Investment Experience. Investor is an investor in securities of companies in the development stage and acknowledges that he/she/it is able to
bear the economic risk of its investment, and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment in the Shares. If other than an individual, Investor also
represents it has not been organized for the purpose of acquiring the Shares. 
 3.5 Accredited Investor. Investor is an
“accredited investor” within the meaning of SEC Rule 501 of Regulation D. All of the information in the Investor Questionnaire delivered by Investor to the Company in connection with Investor’s purchase of the Shares remains complete,
true and correct as of the Closing or the Additional Closing, as applicable. 
 3.6 Restricted Securities. Investor understands that
the Shares it is purchasing are characterized as “restricted securities” under the federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering, and that under such laws and
applicable regulations, such Shares may be resold without registration under the Act only in certain limited circumstances. In the absence of an effective registration statement covering the Shares or an available exemption from registration under
the Act, the Shares (and any Common Stock issued on conversion of the Shares) must be held indefinitely. 
 3.7 No Brokers. Investor
has not taken any action which would give rise to any claim by any person for brokerage commissions, finder’s fees or similar payments relating to this Agreement or the transactions contemplated hereby. 
 3.8 Legends. It is understood that the certificates evidencing the Shares may bear one or all of the following legends: 
 (a) “These securities have not been registered under the Securities Act of 1933, as amended. They may not be sold, offered for sale, pledged or
hypothecated in the absence of a registration statement in effect with respect to the securities under such Act or an opinion of counsel satisfactory to the Company that such registration is not required or unless sold pursuant to Rule 144 of such
Act.” 
 (b) Legends required to indicate that the Shares are subject to the terms of the Investors Rights Agreement and ROFR
Agreement. 
 (c) Any legend required by applicable laws. 
 4. Optional Conversion of the Shares. 
 4.1 Optional Conversion. Investor shall have the
right, by giving notice thereof to the Company pursuant to this Section 4, to convert all (but not less than all) of the outstanding Shares held by the Investor (and purchased under this Agreement) into shares of the Company’s Qualified
Stock (as defined below), pursuant to the provisions of this Section 4 concurrently with the closing of a Qualified Transaction (as defined below)(or the first closing in a series of closings). 
 4.2 Qualified Transaction. A “Qualified Transaction” shall mean the Company’s receipt of at least $2,500,000 in
proceeds from: (i) a sale by the Company, in one or more related transactions, of a new series of preferred stock (the “Qualified Stock”) in a financing event (the “Qualified 
  

 9 

 Financing”); or (ii) a combination of (a) a sale of Qualified Stock as described in
Section 4.2(i), and (b) the sale by the Company of some or all of its assets and/or business operations in materials for anti-static polymers. 
 4.3 Notice. The Company shall provide the Investor with a notice no later than 15 business days prior to the closing of the Qualified Transaction indicating the proposed closing date, together with the terms
and conditions of the Qualified Transactions, the rights, preferences and privileges of the Qualified Stock and the conversion calculation determined in accordance with Section 4.4 below. Each Investor shall have the right to exercise its
rights to convert its Shares into the Qualified Stock under Section 4.1 by giving notice thereof to the Company no later than 5 business days prior to the proposed closing date. 
 4.4 Conversion Calculation. In connection with a Qualified Transaction, the Shares shall be converted into Qualified Stock in accordance with the
following formula: 
 A = B * [(C ÷ D) * E] 
 A = the number of shares of Qualified Stock issuable to Investor in connection with the Qualified Transaction; 
 B = the number of Shares purchased
by Investor pursuant to this Agreement; 
 C = $1.80; 
 D = the
price per share at which the Qualified Stock is sold to investors in the Qualified Financing; and 
 E = 1.10. 
 For the avoidance of doubt, the calculation in this Section 4.3 shall be performed in the following order: (i) divide C by D, (ii) multiply the amount in
(i) by E, and (iii) multiply the amount in (ii) by B. 
 4.5 Deliverables. Upon any conversion of Shares under this
Section 4, the Investor will execute and deliver to the Company, at the closing of such Qualified Financing, such stock purchase agreement, investors’ rights agreement, co-sale agreement, voting and/or other agreements as are entered into
by the investors in the Qualified Financing generally. The Company shall not be obligated to issue certificates evidencing the shares of Qualified Stock issuable upon conversion unless the certificates evidencing the Shares are either delivered to
the Company or its transfer agent, or the Investor notifies the Company or its transfer agent that such certificates have been lost, stolen or destroyed and executes an agreement satisfactory to the Company to indemnify the Company from any loss
incurred by it in connection with such certificates. Upon the occurrence of such conversion of the Shares, the Investor shall surrender the certificates representing such Shares at the office of the Company or any transfer agent for the
Company’s capital stock. Thereupon, there shall be issued and delivered to the Investor promptly at such office and in its name as shown on such surrendered certificate or certificates, a certificate or certificates for the number of shares of
Qualified Stock into which the Shares surrendered were convertible on the date on which such automatic conversion occurred. 
 5.
Conditions to Investor’s Obligations at Closing. The following conditions must be satisfied by the Company, unless waived by Investor, in Investor’s sole and absolute discretion. 
 5.1 Representations and Warranties. The representations and warranties of the Company contained in Section 2 shall be true on and as of the
Closing with the same effect as though such representations and warranties had been made on and as of the date of the Closing. 
  

 10 

 5.2 Performance. The Company shall have performed and complied with all agreements, obligations
and conditions contained in this Agreement that are required to be performed or complied with by it on or before the Closing. 
 5.3
Qualifications. All authorizations, approvals or permits, if any, of any governmental authority or regulatory body of the United States or of any state that are required in connection with the lawful issuance and sale of the Shares pursuant
to this Agreement shall be duly obtained and effective, other than such authorizations, approvals or permits or other filings which may be timely made after such issuance and sale of the Shares. 
 5.4 Amendment to Restated Certificate. The Company shall have filed the Certificate of Amendment of Restated Certificate in the form attached
hereto as Exhibit D-2 with the Delaware Secretary of State. 
 5.5 Proceedings and Documents. All corporate and other
proceedings in connection with the transactions contemplated at the Closing and all documents incident thereto shall be reasonably satisfactory in form and substance to Investor, and Investor shall have received all such counterpart original and
certified or other copies of such documents as may be reasonably requested. 
 5.6 General. The holders of Common Stock and/or
Preferred Stock shall have amended any other agreement or arrangement, or given any further consent required to allow the Company to execute and perform this Agreement and the Related Agreements. 
 6. Conditions to the Company’s Obligations at Closing. The following conditions must be satisfied by Investor, unless waived in writing by
the Company, in the Company’s sole and absolute discretion. 
 6.1 Representations and Warranties. The representations and
warranties of the Investor contained in Section 3 shall be true on and as of the Closing or the Additional Closing (as applicable) with the same effect as though such representations and warranties had been made on and as of the date of such
closing. 
 6.2 Payment of the Purchase Price. Investor shall have delivered to the Company the purchase price for the Shares.

 6.3 Securities Exemptions. The offer and sale of the Shares to Investor pursuant to this Agreement shall be exempt from the
registration requirements of the Act, the qualification requirements of the California General Corporation Law and the registration and/or qualification requirements of all other applicable state securities laws. 
 6.4 Proceedings and Documents. All corporate and other proceedings in connection with the transactions contemplated at the Closing or the
Additional Closing (as applicable) and all documents incident thereto shall be reasonably satisfactory in form and substance to the Company, and the Company shall have received all such counterpart original and certified or other copies of such
documents as may be reasonably requested. 
 7. Miscellaneous. 
 7.1 Survival. The warranties, representations and covenants of the Company and Investor contained in or made pursuant to this Agreement shall
survive the execution and delivery of this Agreement and the Closing or the Additional Closing (as applicable) and shall in no way be affected by any investigation of the subject matter thereof made by or on behalf of Investor or the Company.

  

 11 

 7.2 Successors and Assigns. Except as otherwise provided herein, the terms and conditions of this
Agreement shall inure to the benefit of, and be binding upon, the respective successors and assigns of the parties (including transferees of any Shares). Nothing in this Agreement, express or implied, is intended to confer upon any party, other than
the parties hereto or their respective successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. 
 7.3 Governing Law. This Agreement shall be governed by and construed under the laws of the State of California as applied to agreements among
California residents entered into and to be performed entirely within California, except with respect to conflict of laws. 
 7.4 Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 
 7.5 Notices. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (i) upon personal
delivery to the party to be notified, (ii) when sent by confirmed telex or facsimile if sent during normal business hours of the recipient, if not, then on the next business day; (iii) five (5) days after having been sent by
registered or certified mail, return receipt requested, postage prepaid; or (iv) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All
communications shall be sent to the address as set forth on the signature page hereof or at such other address as such party may designate by ten (10) days’ advance written notice to the other parties hereto. 
 7.6 Responsibility for Brokers Fees. Investor indemnifies and holds harmless the Company from any liability for any commission or compensation in
the nature of a finders’ fee (and the costs and expenses of defending against such liability or asserted liability) for which Investor or any of its officers, partners, employees or representatives is responsible. The Company indemnifies and
holds harmless Investor from any liability for any commission or compensation in the nature of a finders’ fee (and the costs and expenses of defending against such liability or asserted liability) for which the Company or any of its officers,
employees or representatives is responsible. 
 7.7 Aggregation of Stock. All issued and outstanding shares of the Series C-1
Preferred Stock and Common Stock issued upon conversion thereof held or acquired by affiliated entities or persons shall be aggregated together for the purpose of determining the availability of any rights under this Agreement. 
 7.8 Amendments and Waivers. Any term of this Agreement may be amended, and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and Investor. 
 7.9 Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such
provision were so excluded and shall be enforceable in accordance with its terms. 
 7.10 Entire Agreement. This Agreement and the
documents referred to herein constitute the entire agreement among the parties, and this Agreement supersedes all prior written and oral agreements, and all contemporaneous written and oral agreements, relating to the subject matter hereof.

 7.11 Counterparts; Facsimile/PDF Signatures. This Agreement may be executed in two or more counterparts, and by facsimile
signatures or portable document format (.pdf or similar format), each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 [SIGNATURE PAGE FOLLOWS] 
  

 12 

 [Company Signature Page to Subscription Agreement] 
  

					
	Dated: JULY 30, 2009	 	COMPANY:
		
		 	 UNIDYM, INC.
 a Delaware
corporation

			
		 	By:	 	 /S/    MARK TILLEY

		 		 	Mark Tilley
		 		 	CEO & President
		
		 	 Address:    1430 Obrien Drive
                   Menlo Park, CA 94025

 [Investor Signature Page to Subscription Agreement] 
 I HEREBY REPRESENT THAT I HAVE READ AND UNDERSTOOD THE SUBSCRIPTION AGREEMENT. 
 Dated: JULY 30, 2009 
 Subscription: I hereby subscribe for the following number of Shares at the Purchase
Price indicated: 
 Total Number of Shares: 291,667 
 Total
Purchase Price ($1.80 Per Share): payable as follows: $525,000 in cash. 
  

			
	                        Arrowhead Research
Corporation                                       
 
	Please print the exact name(s) in which the Shares will be issued
	
	Print Name of Signer:     Christopher
Anzalone                
	
	Signature:         Christopher
Anzalone                                        
                 
	
	Title of Signer (if purchaser is an entity):   Chief Executive Officer

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