Document:

Form of Common Stock Purchase Warrant

 Exhibit 4.11 
 THE ISSUANCE OF THIS WARRANT AND THE WARRANT SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED BY THE COMPANY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED (REGISTRATION NO. 333-171208). 
 BIONOVO, INC. 

WARRANT TO PURCHASE COMMON SHARES 

Warrant No.: ____________ 
 Number of Common
Shares: ___________ 
 Date of Issuance: January __, 2011 (“Issuance Date”) 

Bionovo, Inc., a Delaware corporation (the “Company”), hereby certifies that, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, [INVESTOR NAME], the registered holder hereof or its permitted assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from
the Company, at the Exercise Price (as defined below) then in effect, upon surrender of this Warrant to Purchase Common Shares (including any Warrants to Purchase Common Shares issued in exchange, transfer or replacement hereof, the
“Warrant”), at any time or times on or after [the six (6) month anniversary of]1 the Issuance Date (the “Initial Issuance Date”), but not after 5:00 p.m., New York time, on the Expiration Date (as defined below),
[             (            )] (subject to adjustment as provided herein) fully paid, nonassessable Common Shares
(as defined below) (the “Warrant Shares”). Except as otherwise defined herein, capitalized terms in this Warrant shall have the meanings set forth in Section 16. This Warrant is the Warrant to Purchase Common Shares
issued pursuant to (i) that certain Underwriting Agreement (the “Underwriting Agreement”), dated as of January             , 2011 (the
“Subscription Date”), by and between the Company and Cowen and Company, LLC (the “Underwriter”) and (ii) the Company’s Registration Statement on Form S-1 (File number 333-171208) (the “Registration
Statement”). 
 1. EXERCISE OF WARRANT.  

(a) Mechanics of Exercise. Subject to the terms and conditions hereof, this Warrant may be exercised by the Holder
on any day on or after the Initial Issuance Date, in whole or in part, by delivery of a written notice, in the form attached hereto as Exhibit A (the “Exercise Notice”), of the Holder’s election to exercise this Warrant.
Within two (2) days following the Exercise Notice, the Holder shall make payment to the Company of an amount equal to the applicable Exercise Price multiplied by the number of Warrant Shares as to which this Warrant is being exercised (the
“Aggregate Exercise Price”) in cash or by wire transfer of immediately available funds, or provided the conditions for cashless exercise set forth in Section 1(e) are satisfied, by notifying the Company that this Warrant
is being exercised pursuant to a Cashless Exercise (as defined in Section 1(e)). Execution and delivery of the Exercise Notice with respect to less than all of the Warrant Shares shall have the same effect as cancellation of the original
Warrant and issuance of a new Warrant evidencing the right to purchase the remaining number of Warrant Shares. On or before the first (1st) Business Day following the date on which the Company has received the Exercise Notice, the Company

  

	1	 Insert in Underwriter compensation warrants only 

 shall transmit by facsimile an acknowledgment of confirmation of receipt of the Exercise
Notice to the Holder and the Company’s transfer agent (the “Transfer Agent”). On or before the third (3rd) Business Day following the date on which the Company has received the Exercise Notice (the “Share Delivery
Date”), the Company shall (X) provided that the Transfer Agent is participating in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program (the “FAST Program”), upon the request
of the Holder, credit such aggregate number of Common Shares to which the Holder is entitled pursuant to such exercise to the Holder’s or its designee’s balance account with DTC through its Deposit Withdrawal Agent Commission system, or
(Y), if the Transfer Agent is not participating in the FAST Program, issue and dispatch by overnight courier to the address as specified in the Exercise Notice, a certificate, registered in the Company’s share register in the name of the Holder
or its designee, for the number of Common Shares to which the Holder is entitled pursuant to such exercise. The Warrant Shares so purchased shall be deemed to be issued to the Holder or the Holder’s designee, as the record owner of such
Warrant Shares, as of the close of business on the date of exercise. If this Warrant is submitted in connection with any exercise pursuant to this Section 1(a) and the number of Warrant Shares represented by this Warrant submitted for
exercise is greater than the number of Warrant Shares being acquired upon an exercise, then the Company shall as soon as practicable and in no event later than three (3) Business Days after any exercise and at its own expense, issue a new
Warrant (in accordance with Section 7(d)) representing the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which this
Warrant is exercised. No fractional Common Shares are to be issued upon the exercise of this Warrant, but rather the Company shall pay to Holder cash equal to the product of such fraction multiplied by the Closing Sale Price of one Warrant Share on
the Share Delivery Date. The Company shall pay any and all transfer taxes and transfer agent fees which may be payable with respect to the issuance and delivery of Warrant Shares to the Holder upon exercise of this Warrant. Notwithstanding the
foregoing, if the Holder did not notify the Company in such Exercise Notice that such exercise was being made pursuant to a Cashless Exercise (as defined in Section 1(e)), the Company’s failure to deliver Warrant Shares to the Holder on or
prior to the second (2nd) Trading Day after the Company receives the Aggregate Exercise Price shall not be deemed to be a breach of this Warrant (except to the extent set forth in Section 1(f)). 

(b) Exercise Price. For purposes of this Warrant, “Exercise Price” means
$             per Warrant Share, subject to adjustment as provided herein. 
 (c) Disputes. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the Company shall promptly issue to the Holder the number
of Warrant Shares that are not disputed. 
 (d) Limitations On Exercise. The Company
shall not effect the exercise of this Warrant, and the Holder shall not have the right to exercise this Warrant, to the extent that after giving effect to such exercise, such Person (together with such Person’s affiliates) would beneficially
own in excess of [4.99%]2 (the “Maximum
Percentage”) of the Common Shares outstanding immediately after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of Common Shares beneficially owned by such Person and its affiliates shall include
the number of Common Shares issuable upon exercise of 
  

	2	 Maximum Percentage to be 4.99% unless otherwise requested by the Holder on the applicable Closing Date (as defined in the Underwriting Agreement); but
in no event greater than 9.99%. 

  
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 this Warrant with respect to which the determination of such sentence is
being made, but shall exclude Common Shares which would be issuable upon (i) exercise of the remaining, unexercised portion of this Warrant beneficially owned by such Person and its affiliates and (ii) exercise or conversion of the
unexercised or unconverted portion of any other securities of the Company beneficially owned by such Person and its affiliates (including, without limitation, any convertible notes or convertible shares or warrants) subject to a limitation on
conversion or exercise analogous to the limitation contained herein. Except as set forth in the preceding sentence, for purposes of this paragraph, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”). For purposes of this Warrant, in determining the number of outstanding Common Shares, the Holder may rely on the number of outstanding Common Shares as reflected in the most
recent of (1) the Company’s most recent Form 10-K, Form 10-Q or other public filing with the Securities and Exchange Commission, as the case may be, (2) a more recent public announcement by the Company or (3) any other notice by
the Company or the Transfer Agent setting forth the number of Common Shares outstanding. For any reason at any time, upon the written or oral request of the Holder, the Company shall within two (2) Business Days confirm to the Holder the number
of Common Shares then outstanding. In any case, the number of outstanding Common Shares shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder and its affiliates
since the date as of which such number of outstanding Common Shares was reported. [By written notice to the Company, the Holder may from time to time increase or decrease the Maximum Percentage to any other percentage not in excess of 9.99%
specified in such notice; provided that (i) any such increase will not be effective until the sixty-first (61st) day after such notice is delivered to the Company, and (ii) any such increase or decrease will apply only to the
Holder.]3 The provisions of this paragraph shall be
construed, corrected and implemented in a manner so as to effectuate the intended beneficial ownership limitation herein contained. The limitations contained in this paragraph shall apply to any successor Holder of this Warrant. 

(e) Limited Cashless Exercise. If the Registration Statement (or any subsequent registration statement applicable
to the Warrant Shares) permitting the registered issuance of the Warrant Shares is not then effective or the prospectus forming a part thereof is not then available, then the Holder shall be entitled to utilize cashless exercise, in which event the
Company shall issue to the Holder the number of Warrant Shares determined as follows (a “Cashless Exercise”): 

X = Y [(A-B)/A] 

where: 
 X = the number of
Warrant Shares to be issued to the Holder. 
 Y = the number of Warrant Shares with respect to which this Warrant is being exercised. 

A = the VWAP for the five (5) Trading Days immediately prior to (but not including) the date of delivery of the Exercise Notice. 

B = the Exercise Price. 
  

	3	 To be included unless otherwise requested by the Holder on the applicable Closing Date (as defined in the Underwriting Agreement)

  
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 Upon receipt of an Exercise Notice to which this Section 1(e) is
applicable, the Company shall notify the Holder within one (1) Trading Day of such applicability and the calculation of the Warrant Shares issuable upon the noticed exercise of the Warrant utilizing cashless exercise, and confirm the
Holder’s desire to complete the exercise of the Warrant pursuant to this Section 1(e). 
 For
purposes of Rule 144 promulgated under the Securities Act of 1933, as amended, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless exercise transaction shall be deemed to have been acquired by the Holder, and the
holding period for the Warrant Shares shall be deemed to have commenced, on the date this Warrant was originally issued. 
 (f) Company’s Failure to Timely Deliver Securities. If the Company shall fail for any reason or for no reason to issue to the Holder within the later of (i) three (3) Trading Days
after receipt of the applicable Exercise Notice and (ii) two (2) Trading Days after the Company’s receipt of the Aggregate Exercise Price (or valid notice of a Cashless Exercise) (such later date, the “Share Delivery
Deadline”), a certificate for the number of Warrant Shares to which the Holder is entitled and register such Warrant Shares on the Company’s share register or to credit the Holder’s balance account with DTC for such number of
Warrant Shares to which the Holder is entitled upon the Holder’s exercise of this Warrant, and if on or after such Trading Day the Holder, or any third party on behalf of the Holder or for the Holder’s account, purchases (in an open market
transaction or otherwise) Common Shares to deliver in satisfaction of a sale by the Holder of Warrant Shares issuable upon such exercise that the Holder anticipated receiving from the Company, then the Company shall, within three (3) Business
Days after the Holder’s request and in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions, if any) for the Common Shares so
purchased (the “Buy-In Price”), at which point the Company’s obligation to deliver such certificate or credit the Holder’s balance account with DTC for the number of Warrants Shares to which the Holder is entitled upon the
Holder’s exercise hereunder, as the case may be (and to issue such Warrant Shares), shall terminate, or (ii) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such Warrant Shares or credit
the Holder’s balance account with DTC for the number of Warrants Shares to which the Holder is entitled upon the Holder’s exercise hereunder, as the case may be, and pay cash to the Holder in an amount equal to the excess (if any) of the
Buy-In Price over the product of (A) such number of Common Shares, times (B) the Closing Sale Price on the Share Delivery Deadline. 
 2. ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The Exercise Price and the number of Warrant Shares shall be adjusted from time to time as follows: 

(a) Adjustment upon Subdivision or Combination of Common Shares. If the Company at any time on or after the
Subscription Date subdivides (by any share split, share dividend, recapitalization or otherwise) one or more classes of its outstanding Common Shares into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision
will be proportionately reduced and the number of Warrant Shares will be proportionately increased. If the Company at any time on or after the Subscription Date combines (by any reverse share split, recapitalization or otherwise) one or more classes
of its outstanding Common Shares into a smaller number of shares, the Exercise Price in effect immediately prior to such combination will be proportionately increased and the number of Warrant Shares will be proportionately decreased. Any adjustment
under this Section 2(a) shall become effective at the close of business on the date the subdivision or combination becomes effective. 

  
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 (b) Calculations. All calculations made under
this Section 2 shall be made by rounding to the nearest cent or the nearest 1/100th of a Common Share, as applicable. 
 3. RIGHTS UPON DISTRIBUTION OF ASSETS.

 (a) If at any time or from time to time the holders of Common Shares of the Company (or any other securities
at the time receivable upon the exercise of this Warrant) shall have received or become entitled to receive, without payment therefor: 
 (i) Common Shares or other securities which are at any time directly or indirectly convertible into or exchangeable for Common Shares, or any rights or options to subscribe for, purchase or otherwise
acquire any of the foregoing by way of dividend or other distribution (other than an issuance due to a subdivision covered in Section 2(a) above); 
 (ii) any cash paid or payable, including any declared and paid cash dividends; or 
 (iii) Common Shares or additional shares or other securities or property (including cash) by way of spinoff, split-up, reclassification, combination of shares or similar corporate rearrangement (other
than Common Shares pursuant to Section 2(a) above), 
 then and in each such case, the Holder hereof
will, upon the exercise of this Warrant, be entitled to receive, in addition to the number of Common Shares receivable thereupon, and without payment of any additional consideration therefor, the amount of Common Shares and other securities and
property (including cash in the cases referred to in clause (iii) above) which such Holder would hold on the date of such exercise had such Holder been the holder of record of such Common Shares as of the date on which holders of Common Shares
received or became entitled to receive such shares or other securities and property, provided, however, (x) in the event that the holders of Common Shares have received options, warrants or rights that have expired prior to the date of
exercise of this Warrant, the Holder shall not be entitled to receive such options, warrants or rights and (y) in the event of a distribution consisting of cash as referred to in clause (ii) above, the Exercise Price in effect immediately
prior to such distribution will be proportionately reduced by the amount of the distribution per Common Share such Holder would have been entitled to receive had such Holder been the holder of record of such Common Shares as of the date on which
holders of Common Shares received or became entitled to receive such cash distribution. 

(b) Upon the occurrence of each adjustment pursuant to this Section 3, the Company at its
expense will, at the written request of the Holder, promptly compute such adjustment in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment, including a statement of the adjusted number or type of
Warrant Shares or other securities issuable upon exercise of this Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail the facts upon which such adjustment is based, including the expiration
date of any applicable options, warrants or rights. Upon written request, the Company will promptly deliver a copy of each such certificate to the Holder and to the Transfer Agent. All calculations made under this Section 3 shall be made
by rounding to the nearest cent or the nearest 1/100th of
any security, as applicable. 

  
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 4. FUNDAMENTAL TRANSACTIONS. 

(a) Fundamental Transactions. The Company shall not consummate a Fundamental Transaction (other than an Involuntary Change of
Control) or permit the consummation of any Involuntary Change of Control unless (i) (x) the Successor Entity (if a Person other than the Company) assumes in writing all of the obligations of the Company under this Warrant and the other
Transaction Documents in accordance with the provisions of this Section 4(a) pursuant to written agreements in form and substance reasonably satisfactory to the Required Holders and approved by the Required Holders prior to such Fundamental
Transaction, including agreements to deliver to each holder of Warrants in exchange for such Warrants a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant, including,
without limitation, an adjusted exercise price equal to the value for the Common Shares reflected by the terms of such Fundamental Transaction, and exercisable for a corresponding number of share capital equivalent to the Common Shares acquirable
and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and reasonably satisfactory to the Required Holders and (y) the Successor Entity (if a
Person other than the Company) is a publicly traded corporation whose common stock is quoted on or listed for trading on an Eligible Market (a “Public Successor Entity”) (each such Fundamental Transaction, an “Assumption
Fundamental Transaction”) or (ii) solely with respect to Fundamental Transactions that are not Assumption Fundamental Transactions, the Company has complied (or will comply in all respects, solely with respect to the payment of any
Black Scholes Value to the Holder in accordance with Section 4(b) below or the delivery of any notice of any Fundamental Transaction that in accordance with this Section 4 or Section 8 is scheduled to occur after the consummation of
such Change of Control) in all respects with its obligations pursuant to Sections 4(a), 4(b) and 8 hereof, including without limitation, the delivery of the notice of such Fundamental Transaction and with respect to any Black Scholes Notice
delivered by the Holder either (x) prior to the date of the consummation of such Change of Control (other than an Involuntary Change of Control) or (y) prior to twenty (20) Trading Days after either (A) the date of the
consummation of such Change of Control (other than an Involuntary Change of Control) or (B) the later of (I) the date of the consummation of such Involuntary Change of Control and (II) the date of the Holder’s receipt of a written
notice from the Company with respect to such Involuntary Change of Control, the payment of the Black Scholes Value to the Holder in accordance with Section 4(b) below on or prior to the applicable Black Scholes Payment Date. Upon the occurrence
of any Assumption Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Assumption Fundamental Transaction, the provisions of this Warrant referring to the “Company”
shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant with the same effect as if such Successor Entity (including its Parent
Entity) had been named as the Company herein. Notwithstanding the foregoing, but except with respect to an Assumption Fundamental Transaction in which the Company does not survive the consummation thereof, the Holder may elect, at its sole option,
by delivery of written notice to the Company to waive this Section 4(a) to permit the Assumption Fundamental Transaction 

  
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without the assumption of this Warrant. Upon consummation of the Assumption Fundamental Transaction, the Successor Entity shall deliver to the Holder confirmation that there shall be issued upon
exercise of this Warrant at any time after the consummation of the Assumption Fundamental Transaction, in lieu of the Common Shares (or other securities, cash, assets or other property) purchasable upon the exercise of the Warrant prior to such
Assumption Fundamental Transaction, such shares of the publicly traded common stock (or its equivalent) of the Successor Entity (including its Parent Entity), as adjusted in accordance with the provisions of this Warrant. In addition to and not in
substitution for any other rights hereunder, prior to the consummation of any Fundamental Transaction pursuant to which holders of Common Shares are entitled to receive securities or other assets with respect to or in exchange for Common Shares (a
“Corporate Event”), the Company shall (or, with respect to any tender offer Involuntary Change of Control, shall use its reasonable best efforts to) make appropriate provision to insure that the Holder will thereafter have the right
to receive upon an exercise of this Warrant at any time after the consummation of the Fundamental Transaction but prior to the Expiration Date, in lieu of the Common Shares (or other securities, cash, assets or other property) purchasable upon the
exercise of the Warrant prior to such Fundamental Transaction or the publicly traded stock (or its equivalents) of the Successor Entity upon an Assumption Fundamental Transaction, such shares, securities, cash, assets or any other property
whatsoever (including warrants or other purchase or subscription rights) which the Holder would have been entitled to receive upon the happening of such Fundamental Transaction had the Warrant been exercised immediately prior to such Fundamental
Transaction. Provision made pursuant to the preceding sentence shall be in a form and substance reasonably satisfactory to the Required Holders. If holders of Common Shares are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. The provisions of this Section shall apply similarly and
equally to successive Fundamental Transactions and Corporate Events and shall be applied without regard to any limitations on the exercise of this Warrant. 
 (b) Notwithstanding the foregoing and the provisions of Section 4(a) above, in the event of a Change of Control, if the Holder has not exercised the Warrant in full prior to the consummation of the
Change of Control, then the Holder shall have the right by written notice to the Company (the “Black Scholes Notice”) to require the Company (or such Successor Entity, as applicable) to purchase this Warrant from the Holder by
paying to the Holder, either (i) concurrently with the consummation of such Change of Control if such notice is received prior to the consummation of such Change of Control or (ii) within five (5) Trading Days after the Company’s
receipt of such Black Scholes Notice otherwise (such applicable payment date, the “Black Scholes Payment Date”), in lieu of the warrant referred to in Section 4(a), cash in an amount equal to the Black Scholes Value of the
remaining unexercised portion of this Warrant as calculated on either (x) the date of the consummation of such Change of Control (other than an Involuntary Change of Control) or (y) the date of the Black Scholes Notice with respect to any
Involuntary Change of Control. 
 5. NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company will not,
by amendment of its Certificate of Incorporation or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, and will at all times in good faith comply with all the provisions of this Warrant and take all actions consistent with effectuating the

  
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purposes of this Warrant. Without limiting the generality of the foregoing, the Company (i) shall not increase the par value of any Common Shares receivable upon the exercise of this Warrant
above the Exercise Price then in effect, (ii) shall take all such actions as may be reasonably necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Common Shares upon the exercise of this
Warrant, and (iii) shall, so long as this Warrant is outstanding, take all action reasonably necessary to reserve and keep available out of its authorized and unissued Common Shares, solely for the purpose of effecting the exercise of this
Warrant, 100% of the number of Common Shares issuable upon exercise of the Warrants then outstanding (without regard to any limitations on exercise). 
 6. WARRANT HOLDER NOT DEEMED A SHAREHOLDER. Except as otherwise specifically provided herein, the Holder, solely in such Person’s capacity as a holder of this Warrant, shall not be entitled to
vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in such Person’s capacity as the Holder of this
Warrant, any of the rights of a shareholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of shares, reclassification of shares, consolidation, merger, conveyance or
otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares which such Person is then entitled to receive upon the due exercise of this Warrant. In
addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a shareholder of the Company, whether such liabilities are
asserted by the Company or by creditors of the Company. Notwithstanding this Section 6, the Company shall provide the Holder with copies of the same notices and other information given to the shareholders of the Company generally,
contemporaneously with the giving thereof to the shareholders, provided that any such notice or information published via international wire or furnished to or filed with the U.S. Securities and Exchange Commission shall satisfy this requirement.

 7. REISSUANCE OF WARRANTS; NO FRACTIONAL SHARES. 

(a) Transfer of Warrant. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the
Company and deliver the completed and executed Assignment Form, in the form attached hereto as Exhibit B, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with
Section 7(d)), registered as the Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less than the total number of Warrant Shares then underlying this Warrant is
being transferred, a new Warrant (in accordance with Section 7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred. 

(b) Lost, Stolen or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary form and, in the case of mutilation, upon surrender
and cancellation of this Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to purchase the Warrant Shares then underlying this Warrant. 

  
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 (c) Exchangeable for Multiple Warrants. This Warrant is exchangeable,
upon the surrender hereof by the Holder at the principal office of the Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase the number of Warrant Shares then
underlying this Warrant, and each such new Warrant will represent the right to purchase such portion of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, that no Warrants for fractional
Common Shares shall be given. 
 (d) Issuance of New Warrants. Whenever the Company is required to issue a
new Warrant pursuant to the terms of this Warrant, such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to purchase the Warrant Shares then underlying
this Warrant (or in the case of a new Warrant being issued pursuant to Section 7(a) or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of Common Shares underlying the other new
Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance
Date, and (iv) shall have the same rights and conditions as this Warrant. 
 (e) No Fractional
Shares. No fractional shares of Warrant Shares will be issued in connection with any exercise of this Warrant, but rather, the number of Common Shares to be issued upon exercise of this Warrant shall be rounded up to the nearest whole number.

 8. NOTICES. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given:
(a) upon personal delivery to the party to be notified, (b) when sent by confirmed telex or facsimile if sent during normal business hours of the recipient, if not, then on the next Business Day, (c) three (3) days after having
been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) Business Day after deposit with a nationally recognized overnight courier, with written verification of receipt. All communications shall
be sent to the Company at the address listed on the signature page hereto and to Holder at the applicable address designated by Holder to the Underwriter or the Company, as applicable, in connection with the issuance of this Warrant or at such other
address as the Company or Holder may designate by ten (10) days advance written notice to the other parties hereto. 
 9.
AMENDMENT AND WAIVER. Except as otherwise provided herein, the provisions of this Warrant may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the
Company has obtained the written consent of Holders owning a majority in interest of the outstanding Warrants issued under the Underwriting Agreement which are then outstanding; provided, that (x) any such amendment or waiver must apply
to all Warrants issued by the Company pursuant to the Underwriting Agreement which are then outstanding; and (y) the number of Warrant Shares subject to this Warrant, the Exercise Price and the Expiration Date may not be amended, and the right
to exercise this Warrant may not be altered or waived, without the written consent of the Holder. No waiver of any provision hereunder shall be effective unless it is in writing and signed by an authorized representative of the waiving party.

  
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 10. SEVERABILITY. If any provision of this Warrant is prohibited by law or otherwise
determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and
enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Warrant so long as this Warrant as so modified continues to express, without material change, the original
intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or
the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect
of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s). 
 11. GOVERNING
LAW. This Warrant shall be governed by and construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of
New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New
York. 
 12. CONSTRUCTION; HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and
shall not be construed against any person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or affect the interpretation of, this Warrant. 

13. DISPUTE RESOLUTION. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of
the Warrant Shares, the Company shall submit the disputed determinations or arithmetic calculations via facsimile within two (2) Business Days of receipt of the Exercise Notice giving rise to such dispute, as the case may be, to the Holder. If
the Holder and the Company are unable to agree upon such determination or calculation of the Exercise Price or the Warrant Shares within three (3) Business Days of such disputed determination or arithmetic calculation being submitted to the
Holder, then the Company shall, within four (4) Business Days thereafter submit via facsimile the disputed determination of the Exercise Price or Warrant Shares to an independent, reputable investment bank mutually agreeable to the Company and
the Holder. The Company shall cause the investment bank to perform the determinations or calculations and notify the Company and the Holder of the results no later than ten (10) Business Days from the time it receives the disputed
determinations or calculations. Such investment bank’s determination or calculation, as the case may be, shall be binding upon all parties absent demonstrable error. The expenses of the investment bank and any other reasonable expenses incurred
in good faith in connection with any such dispute will be borne by the Company unless the investment bank or accountant determines that the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares by the Holder was
incorrect, in which case the expenses of the investment bank and any other reasonable expenses incurred in connection with any such dispute will be borne by the Holder. 
 14. REMEDIES, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall be cumulative and in addition to all other remedies available under this Warrant, at law
or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue actual damages for any failure by the Company to comply with the terms of this Warrant.

  
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 15. TRANSFER. This Warrant may be offered for sale, sold, transferred, hypothecated
or assigned without the consent of the Company. This Warrant and the Warrant Shares have been registered by the Company with the U.S. Securities and Exchange Commission pursuant to the Registration Statement. 

16. CERTAIN DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings: 

(c) “Bloomberg” means Bloomberg Financial Markets. 

(d) “Black Scholes Value” means the value of this Warrant based on the Black and Scholes Option Pricing Model obtained
from the “OV” function on Bloomberg determined as of the day of consummation of the applicable Fundamental Transaction for pricing purposes and reflecting (i) a risk-free interest rate corresponding to the U.S. Treasury rate for a
period equal to the remaining term of this Warrant as of the date of the Holder’s request pursuant to Section 4(c), (ii) an expected volatility equal to the greater of 80% and the 180 day volatility obtained from the HVT function on
Bloomberg as of the Trading Day immediately prior to the public announcement of the applicable Fundamental Transaction and, if applicable, (iii) the underlying price per share used in such calculation shall be the sum of the price per
share being offered in cash, if any, plus the value of any non-cash consideration, if any, being offered in the applicable Fundamental Transaction. 
 (a) “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed. 

(b) “Change of Control” means any Fundamental Transaction (including, without limitation, any Involuntary Change of
Control) other than (i) any merger of the Company or any of its, direct or indirect, wholly-owned Subsidiaries with or into any of the foregoing Persons, (ii) any reorganization, recapitalization or reclassification of the Common Shares in
which holders of the Company’s voting power immediately prior to such reorganization, recapitalization or reclassification continue after such reorganization, recapitalization or reclassification to hold publicly traded securities and, directly
or indirectly, are, in all material respects, the holders of the voting power of the surviving entity (or entities with the authority or voting power to elect the members of the board of directors (or their equivalent if other than a corporation) of
such entity or entities) after such reorganization, recapitalization or reclassification, or (iii) pursuant to a migratory merger effected solely for the purpose of changing the jurisdiction of incorporation of the Company or any of its
Subsidiaries. 
 (c) “Closing Bid Price” and “Closing Sale Price” means, for any security as
of any date, the last closing bid price and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does not designate
the closing bid price or the closing trade price, as the case may be, then the last bid price or the last trade price, respectively, of such security prior to 4:00:00 p.m., New York time, as reported by Bloomberg, or, if the Principal Market is
not the principal securities exchange or trading market for such security, the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or trading market where such security is listed or traded
as reported by 

  
 -11-

 
Bloomberg, or if the foregoing do not apply, the last closing bid price or last trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board for
such security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such security
as reported in the “pink sheets” by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If the Closing Bid Price or the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases,
the Closing Bid Price or the Closing Sale Price, as the case may be, of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair
market value of such security, then such dispute shall be resolved pursuant to Section 13. All such determinations to be appropriately adjusted for any share dividend, share split, share combination or other similar transaction during the
applicable calculation period. 
 (d) “Common Shares” means (i) shares of the Company’s common stock,
$0.0001 par value (the “Common Stock”), and (ii) any share capital into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common Stock. 

(e) “Eligible Market” means the Principal Market, The New York Stock Exchange, Inc., The NYSE Amex Equities or The
NASDAQ Stock Market. 
 (f) “Expiration Date” means the date five years following the Issuance Date or, if
such date falls on a day on which trading does not take place on the Principal Market (a “Holiday”), the next date that is not a Holiday. 
 (g) “Fundamental Transaction” means that (A) the Company or any of its Significant Subsidiaries shall, directly or indirectly, in one or more related transactions,
(i) consolidate or merge with or into (whether or not the Company or any of its Significant Subsidiaries is the surviving corporation) another Person or Persons, or (ii) sell, assign, transfer, convey or otherwise dispose of all or
substantially all of the properties or assets of the Company or any of its Significant Subsidiaries to another Person, or (iii) allow another Person to make a purchase, tender or exchange offer that is accepted by the holders of more than 50%
of the outstanding shares of Voting Stock of the Company (not including any shares of Voting Stock of the Company held by the Person or Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase,
tender or exchange offer), or (iv) consummate a securities purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such
other Person acquires more than the 50% of the outstanding shares of Voting Stock of the Company (not including any shares of Voting Stock of the Company held by the other Person or other Persons making or party to, or associated or affiliated with
the other Persons making or party to, such securities purchase or other business combination), or (v) reorganize, recapitalize or reclassify the Voting Stock of the Company or (B) any “person” or “group” (as these terms
are used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate Voting Stock of the
Company. 
 (h) “Involuntary Change of Control” means any Fundamental Transaction pursuant to clause (A)(iii)
or clause (B) of the definition of Fundamental Transaction herein that does not involve any prior, direct or indirect, agreement, support or other assistance by the Company or any of its Subsidiaries (or any employee, officer, director,
consultant or agent of the Company or any of its Subsidiaries) (other than the Company’s compliance with Regulation 14D under the Exchange Act). 

  
 -12-

 (i) “Parent Entity” of a Person means an entity that, directly or
indirectly, controls the applicable Person and whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the largest
public market capitalization as of the date of consummation of the Fundamental Transaction. 
 (j) “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof. 

(k) “Principal Market” means The NASDAQ Capital Market. 

(l) “Required Holders” means the holders of the Warrants representing at least a majority of Common Shares underlying the
Warrants then outstanding. 
 (m) “Significant Subsidiaries” means “significant subsidiaries” (as
defined in Rule 1-02 of Regulation S-X, except that all references to “10 percent” set forth therein shall be deemed replaced with “20 percent”). 
 (n) “Successor Entity” means the Person (or, if so elected by the Required Holders, the Parent Entity) formed by, resulting from or surviving any Fundamental Transaction or the Person
(or, if so elected by the Required Holders, the Parent Entity) with which such Fundamental Transaction shall have been entered into. 
 (o) “Trading Day” means any day on which the Common Shares are traded on the Principal Market, or, if the Principal Market is not the principal trading market in the United States for the
Common Shares, then on the principal securities exchange or securities market in the United States on which the Common Shares are then traded; provided that “Trading Day” shall not include any day on which the Common Shares are scheduled
to trade on such exchange or market for less than 4.5 hours or any day that the Common Shares are suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the
closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time). 
 (p)
“Voting Stock” of a Person means capital shares of such Person of the class or classes pursuant to which the holders thereof have the general voting power to elect, or the general power to appoint, at least a majority of the board
of directors, managers or trustees of such Person (irrespective of whether or not at the time capital shares of any other class or classes shall have or might have voting power by reason of the happening of any contingency). 

(q) “VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the
Common Shares are then listed or quoted on the Principal Market or an Eligible Market, the daily volume weighted average price of the Common Shares for such date (or the nearest preceding date) on the trading market on which the Common Shares are
then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time), (b) if 

  
 -13-

 
then quoted on the OTC Bulletin Board, the volume weighted average price of the Common Shares for such date (or the nearest preceding date) on the OTC Bulletin Board, (c) if the Common
Shares are not then listed or quoted for trading on the OTC Bulletin Board and if prices for the Common Shares are then reported on Pink Quote published by Pink OTC Markets Inc. (or a similar organization or agency succeeding to its functions of
reporting prices), the most recent bid price per Common Share so reported, or (d) in all other cases, the fair market value of one Common Share as determined by an independent appraiser reasonably acceptable to the Company and selected in good
faith by the holders of a majority of the Warrants issued pursuant to the Underwriting Agreement which are then outstanding, the reasonable fees and expenses of which shall be paid by the Company. 

[Signature Page Follows] 

  
 -14-

 IN WITNESS WHEREOF, the Company has caused this Warrant to Purchase Common Shares to
be duly executed as of the Issuance Date set out above. 
  

			
	BIONOVO, INC.
		
	 By:
	 	 
		 	Name:
		
		 	Title:

 EXHIBIT A 
 EXERCISE NOTICE 
 TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE
THIS 
 WARRANT TO PURCHASE COMMON SHARES 
 BIONOVO, INC. 
 The undersigned holder hereby exercises the right to
purchase                 of the Common Shares (“Warrant Shares”) of Bionovo, Inc., a Delaware corporation (the
“Company”), evidenced by the attached Warrant to Purchase Common Shares (the “Warrant”). Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

 1. Payment of Exercise Price. The holder shall pay the Aggregate Exercise Price in the sum of
$        to the Company in accordance with the terms of the Warrant. 
 2.
Delivery of Warrant Shares. The Company shall deliver to the holder             Warrant Shares in accordance with the terms of the Warrant and, after delivery of such
Warrant Shares,                 Warrant Shares remain subject to the Warrant. 
 3. Representations and Warranties. By its delivery of this Exercise Notice, the undersigned represents and warrants to the Company that in giving effect to the exercise evidenced hereby the
holder will not beneficially own in excess of the number of Common Shares (determined in accordance with Section 13(d) of the Securities Exchange Act of 1934) permitted to be beneficially owned under Section 1(d) of the Warrant.

 Date:                
    ,              
  

			
	Name of Registered holder
		
	 By:
	 	 
	
	Name:
	
	Title:

 ACKNOWLEDGMENT 

The Company hereby acknowledges this Exercise Notice and hereby directs [Computershare Trust Company] to issue the above indicated number
of Common Shares in accordance with the Transfer Agent Instructions dated [            ] from the Company [and acknowledged and agreed to by Computershare Trust Company].

			
	BIONOVO, INC.
		
	 By:
	 	 
		 	Name:
		
		 	Title:

 EXHIBIT B 
 ASSIGNMENT FORM 
 BIONOVO, INC. 

(To assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.)

 FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to 

 

					
	Name:	 	
		
		 	(Please Print)
		
	Address:	 	 
		
		 	(Please Print)
		
	Dated:                    
    ,             	 	
		
	Holder’s Signature:	 	
		
	 Holder’s Address:
	 	
	
                        
        _________________
	 	

 NOTE: The signature to this Assignment Form must correspond with the name as it appears on the face of the
Warrant, without alteration or enlargement or any change whatever. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.Agreement and Plan of Merger

 EXHIBIT 10.1 
 Execution Version 
 AGREEMENT
AND PLAN OF MERGER 
 AMONG 

WISEPOWER CO., LTD., 

UNICYCLE ACQUISITION CORP., 

UNIDYM, INC. AND 

ARROWHEAD RESEARCH CORPORATION 

 AGREEMENT AND PLAN OF
MERGER 
 This AGREEMENT AND PLAN OF
MERGER (this “Agreement”) is entered into as of January 17, 2011 (the “Agreement Date”) by and among Wisepower Co., Ltd., a corporation of Republic of Korea
(“Acquirer”), Unicycle Acquisition Corp., a Delaware corporation and a wholly owned subsidiary of Acquirer (“Sub”), Unidym, Inc., a Delaware corporation (“Company”) and, solely
with respect to Article 3 hereof, Arrowhead Research Corporation, a Delaware corporation (“Arrowhead”). 

RECITALS 
 A. The parties intend that, subject to the terms and conditions hereinafter set forth, Sub will merge with and into Company (the “Merger”), with Company to be the surviving
corporation of the Merger, all pursuant to the terms and conditions of this Agreement, the Certificate of Merger and the applicable provisions of the laws of the State of Delaware. 

B. The Boards of Directors of Acquirer, Sub and Company have determined that the Merger is in the best interests of their respective
companies and stockholders, and have approved the principal terms of this Agreement and, accordingly, have agreed to effect the Merger provided for herein upon the terms and conditions of this Agreement. 

NOW, THEREFORE, the parties hereto agree as follows: 
 ARTICLE 1 
 CERTAIN DEFINITIONS 

As used herein, the following terms will have the meanings set forth below: 

“Acquirer Ancillary Agreements” means all agreements (other than this Agreement) and documents to which Acquirer
and/or Sub is or will be a party that are required to be executed pursuant to this Agreement. 
 “Acquirer Common
Stock” means the Common Stock of Acquirer. 
 “Affiliate” means an “affiliate”
within the meaning of Rule 144 or Rule 405 promulgated under the Securities Act. 
 “Applicable Laws”
means all foreign, federal, state, local, municipal or other laws, ordinances, regulations, rules and other provisions having the force or effect of law, and all judicial and administrative orders, writs, injunctions, awards, judgments, decrees and
determinations, applicable to a specified Person or to such Person’s assets, properties or business. 

“Arrowhead Common Stock” means the Common Stock of Arrowhead Research Corporation. 

“Bingel Patents” means patents licensed to Company under the Bingel Patent Agreement. 

“Bingel Patent Agreement” means the agreement between Luna Innovations Incorporated (as a successor to Tego
Biosciences) and Unidym. 

 “Bingel Patent Consideration” means forty percent (40%) of the
proceeds received by Acquirer or the Surviving Corporation from licenses (current and future) of the Bingel Patents or assignment of the Bingel Patent Agreement, payable pursuant to the terms of Section 2.5. 

“Bond Purchase Agreement” means the bond purchase agreement in substantially the form attached hereto as
Exhibit B. 
 “Business Day” means a day (a) other than Saturday or Sunday and (b) on
which commercial banks are open for business in San Francisco, California. 
 “California Law” means
Chapter 13 of the California Corporations Code. 
 “Cash On Hand” means the sum of (i) cash held by
Company and its Subsidiaries after receipt of all proceeds from the Samsung Transactions and payment of all expenses associated with the Samsung Transactions and other existing liabilities incurred in the ordinary course of business and booked on
the Closing Balance Sheet (but excluding any payments due to universities for license fees in 2011), and (ii) the fair market value of Arrowhead Common Stock held by Company based on a weighted-average per share price of Arrowhead Common Stock
traded on the NASDAQ over a ten (10) day period prior to the Closing Date, (iii) accounts receivable in the Closing Balance Sheet that both parties reasonably agree will be paid, and (iv) prepaid expenses. 

“Certificate of Merger” means the certificate of merger in substantially the form attached hereto as Exhibit
D. 
 “Closing Balance Sheet” means the balance sheet of Unidym as of the Effective Time.

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

“Common Revenue Amount” means an aggregate amount of the Earnout Consideration and/or the Bingel Patent
Consideration payable by Acquirer to the Company Stockholders pursuant to Section 2.4 and Section 2.5, in excess of the payment in full by the Surviving Corporation for the Series D Payout Threshold, the Series C Payout Threshold and the
Series B Payout Threshold. 
 “Common Revenue Amount Per Share” means the quotient obtained by dividing
(i) the Common Revenue Amount by (ii) the aggregate number of shares of Company Common Stock that are issued and outstanding immediately prior to the Effective Time. 
 “Company Ancillary Agreements” means all agreements (other than this Agreement) and documents to which Company is or will be a party that are required to be executed pursuant to
this Agreement. 
 “Company Business” means the business of Company as presently being conducted.

 “Company Capital Stock” means the issued and outstanding shares of Company Common Stock, Company
Preferred Stock and any other classes and series of capital stock of Company (in each case on a fully diluted, as-converted to Company Common Stock basis, including all shares of such stock that are issuable upon the exercise of any outstanding
Company Rights). 
 “Company Charter Documents” means Company’s Certificate of Incorporation and
Bylaws, as may be amended from time to time. 

 “Company Closing Date Balance Sheet” means the balance sheet of the
Company as of the Closing Date which sets forth all of the assets and Liabilities of the Company as of the Closing Date. 

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

“Company Common Stock Holder” means a holder of Company Common Stock. 

“Company Option” means an option to purchase shares of Company Common Stock. 

“Company Optionholders” means the holders of Company Options as of immediately prior to the Effective Time.

 “Company Option Plan” means Company’s 2006 Stock Option/Stock Issuance Plan. 

“Company Preferred Stock” means the Company Series A Preferred Stock, Series B Preferred Stock, Series C
Preferred Stock, and Series D Preferred Stock. 
 “Company Rights” means all stock appreciation rights,
options, warrants, restricted stock units, call rights, commitments, conversion privileges or preemptive or other rights or agreements outstanding to purchase or otherwise acquire any shares of Company Capital Stock or any securities or debt
convertible into or exchangeable for shares of Company Capital Stock or obligating Company to grant, extend or enter into any such option, warrant, call right, commitment, conversion privilege or preemptive or other right or agreement. 

“Company Securityholders” means collectively, the Company Stockholders, Company Optionholders, and holders of any
Company Rights. 
 “Company Series D Holder” means a holder of Series D Preferred Stock. 

“Company Series C Holder” means a holder of Series C Preferred Stock. 

“Company Series B Holder” means a holder of Series B Preferred Stock. 

“Company Stockholders” means the record holders of shares of Company Capital Stock issued and outstanding as of
immediately prior to the Effective Time and holders of Company Warrants. 
 “Company Warrants” means all
warrants to purchase shares of Company Capital Stock. 
 “Contract” means any legally binding contract,
agreement, arrangement, commitment, undertaking, instrument, permit, mortgage, license, sublicense, letter of intent, quotation, statement of work, contract order or purchase order (in each case, whether oral or in writing). 

“Delaware Law” means the Delaware General Corporation Law. 

“Dissenting Shares” means any shares of Company Capital Stock that are outstanding immediately prior to the
Effective Time that have not been voted for approval of this Agreement and with respect to which dissenters or appraisal rights are properly asserted in accordance with Delaware Law or California Law. 

 “Earnout Consideration” means an aggregate amount of up to USD
$140,000,000 in cash payable pursuant to the terms of Section 2.4, but excluding any payments of Merger Product Sales Consideration. 
 “Effective Time” means the date and time on which the Merger first becomes legally effective under the laws of the State of Delaware as a result of the filing with the Secretary of
State of the State of Delaware of the Certificate of Merger pursuant to the requirements of Delaware Law. The filing of the Certificate of Merger shall be made within forty-eight (48) hours from the Closing. 

“Encumbrance” means, with respect to any asset, any mortgage, deed of trust, lien, pledge, charge, security
interest, title retention device, conditional sale or other security arrangement, collateral assignment, claim, charge, adverse claim of title, ownership or right to use, restriction or other encumbrance of any kind in respect of such asset
(including any restriction on (a) the voting of any security or the transfer (other than pursuant to applicable federal and state securities laws) of any security or other asset, (b) the receipt of any income derived from any asset,
(c) the use of any asset, and (d) the possession, exercise or transfer of any other attribute of ownership of any asset). 
 “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended. 
 “US GAAP” means United States generally accepted accounting principles. 
 “Governmental Authority” means any court, administrative agency, commission or other governmental agency or authority. 

“Intellectual Property Rights” means, collectively, all worldwide industrial and intellectual property rights,
including patents, patent applications, patent rights, trademarks, trademark registrations and applications therefor, trade dress rights, trade names, service marks, service mark registrations and applications therefor, Internet domain names,
Internet and World Wide Web URLs or addresses, copyrights, copyright registrations and applications therefor, mask work rights, mask work registrations and applications therefor, inventions, trade secrets, know-how, customer lists, supplier lists,
proprietary processes and formulae, software source code and object code, hardware description language (“HDL”) code, netlists, design databases, design methodologies, design schematics, ASICs, cores, transceivers,
interconnects, equalizers, algorithms, net lists, architectures, structures, technology, screen displays, photographs, images, layouts, development tools, designs, blueprints, specifications, technical drawings (or similar information in electronic
format) and all documentation and media constituting, describing, embodying or relating to any of the foregoing, including manuals, programmers’ notes, memoranda and records. 

“Knowledge” means, with respect to any fact, circumstance, event or other matter in question, the actual or
deemed knowledge of such fact, circumstance, event or other matter after reasonable inquiry of (a) an individual, if used in reference to an individual, (b) with respect to Company, Mark Tilley and John Miller, and (c) with respect to
Acquirer, each of the officers and directors of Acquirer. A Person will be deemed to have knowledge of a particular fact, circumstance, event or other matter if such knowledge could be obtained from reasonable inquiry of the persons reporting to
such Person (including, with respect to Company and Acquirer, each officer and director thereof) charged with administrative or operational responsibility for such matters for such Person. 

“Liabilities” means any debt, liability or obligation, whether accrued or fixed, absolute or contingent, matured
or unmatured, determined or determinable, known or unknown, and whether due or to become due, in each case that would be required by US GAAP to be reflected on a balance sheet or in the notes thereto. 

 “Licensing Activities” shall mean granting rights to third parties
to Intellectual Property Rights related to Products. 
 “Material Adverse Effect,” when used with
reference to any Person, means any event, change, violation, inaccuracy, circumstance or effect (each, an “Effect”) that, individually or taken together with all other Effects, (i) is or is reasonably likely to be or
become materially adverse in relation to the near-term or longer term financial condition, properties, employees, assets (including intangible assets), business or results of operations of such Person and its Subsidiaries, taken as a whole, or
(ii) materially impedes or delays, or is reasonably likely to materially impede or delay, such Person’s ability to consummate the transactions consummated by this Agreement in accordance with its terms and Applicable Laws, other than an
Effect caused by or, that would not have occurred but for: (A) changes in economic conditions generally, (B) changes in general regulatory or political conditions, including any acts of war or terrorist activities, or (C) changes in
Applicable Laws or other binding directives issued by any Governmental Entity, so long as in each of the cases set forth in clauses (A), (B) and (C), Company is not disproportionately affected by such changes as compared to other companies in
Company’s industry. 
 “Merger Cash Consideration” means $5,000,000. 

“Merger Product Sales Consideration” means on the first day of each month following the receipt of all funds due
to Unidym from Samsung Electronics, payments equal to fifty percent of the amount of proceeds received from the sale of Products by the Company or the Surviving Corporation in the previous month until the total accrued payments reach an amount that
is equal to: ($500,000 – ($1,000,0000 – Cash on Hand)). 
 “Net Proceeds From Licensing
Activities” shall mean net proceeds received from Licensing Activities after all third parties such as Samsung Electronics and university licensors have been paid in connection with the Licensing Activities. 

“Permitted Encumbrance” means (i) any mechanic’s, carrier’s, warehouseman’s or other similar
encumbrance arising in the ordinary course of business, consistent with past practice, (ii) Encumbrances in respect of Taxes not yet due and payable, or the validity of which are being contested in good faith, and (iii) pledges or deposits
to secure obligations under workers’ compensation laws or similar legislation or to secure public or statutory obligations. 
 “Person” means any individual, corporation (including any not-for-profit corporation), general or limited partnership, limited liability partnership, joint venture, estate, trust,
firm, company (including any limited liability company or joint stock company), association, organization, entity or Governmental Authority. 
 “Products” shall mean carbon nanomaterials, items incorporating carbon nanomaterials, or transparent, conductive films. 

“Samsung Transactions” means the agreements between Unidym and Samsung Electronics, dated December 7, 2010.

 “Second Merger Cash Payment” shall mean any amount of Cash on Hand greater than $1,000,000, to be
paid within 7 days of Acquirer’s receipt of the Closing Balance Sheet. 
 “Securities Act” means
the Securities Act of 1933, as amended. 
 “Series A Preferred Stock” shall have the meaning set forth
in Section 3.4. 

 “Series B Payout Threshold” means an aggregate amount up to, but not
in excess of, USD $10,999,998.79, which shall consist of the Earnout Consideration and/or the Bingel Patent Consideration payable by the Surviving Corporation to the Company Stockholders pursuant to Section 2.4 and Section 2.5, in excess
of the Series D Payout Threshold and the Series C Payout Threshold. 
 “Series B Preferred Stock” shall
have the meaning set forth in Section 3.4. 
 “Series B Revenue Amount Per Share” means the
quotient obtained by dividing (i) the Series B Payout Threshold by (ii) the aggregate number of shares of Series B Preferred Stock that are issued and outstanding immediately prior to the Effective Time. 

“Series C Payout Threshold” means an aggregate amount up to, but not in excess of, USD $14,626,600.20, which
shall consist of the Earnout Consideration and/or the Bingel Patent Consideration payable by the Surviving Corporation to the Company Stockholders pursuant to Section 2.4 and Section 2.5, in excess of the Series D Payout Threshold.

 “Series C Preferred Stock” shall have the meaning set forth in Section 3.4. 

“Series C Revenue Amount Per Share” means the quotient obtained by dividing (i) the Series C Payout
Threshold by (ii) the aggregate number of shares of Series C Preferred Stock that are issued and outstanding immediately prior to the Effective Time. 
 “Series D Cash Amount Per Share” means the quotient obtained by dividing (i) the Merger Cash Consideration by (ii) the aggregate number of shares of Series D Preferred
Stock that are issued and outstanding immediately prior to the Effective Time. 
 “Series D Preferred
Stock” shall have the meaning set forth in Section 3.4. 
 “Series D Product Sales Amount Per
Share” means the quotient obtained by dividing (i) the Merger Product Sales Consideration by (ii) the aggregate number of shares of Series D Preferred Stock that are issued and outstanding immediately prior to the Effective
Time. 
 “Series D Payout Threshold” means an aggregate amount up to, but not in excess of, USD
$2,052,526.18, which shall consist of the: (i) the Merger Product Sales Consideration; (i) Second Merger Cash Payment; and (ii) Earnout Consideration, and/or the Bingel Patent Consideration payable by the Surviving Corporation to the
Company Stockholders pursuant to Section 2.4 and Section 2.5. 
 “Series D Revenue Amount Per
Share” means the quotient obtained by dividing (i) the Series D Payout Threshold by (ii) the aggregate number of shares of Series D Preferred Stock that are issued and outstanding immediately prior to the Effective Time.

 “Services” shall mean any research and development activities relating to Products. 

“Stock Purchase Agreement” means the stock purchase agreement in substantially the form attached hereto as
Exhibit C. 
 “Subsidiary” of a specified entity means any corporation, partnership, limited
liability company, joint venture or other entity of which the specified entity (either alone or through or together with any other subsidiary) owns, directly or indirectly, 50% or more of the stock or other equity or partnership interests the
holders of which are generally entitled to vote for the election of the Board of Directors or other governing body of such corporation or other entity. 

 “Tax” and “Taxes” mean all (i) income,
gains, franchise, excise, property, sales, use, employment, license, payroll, services, occupation, recording, value added or transfer taxes, governmental charges, fees, levies, assessments or other taxes (whether payable directly or by
withholding), and, with respect to such taxes, charges, fees, levies and assessments, any estimated tax, interest, fines, penalties or additions and interest on such fines, penalties and additions, (ii) liability for the payment of any amounts
of the types described in clause (i) as a result of being a member of an affiliated, consolidated, combined, unitary or aggregate group and (iii) liability for the payment of any amounts as a result of an express or implied obligation to
indemnify any other person with respect to the payment of any amounts of the type described in clause (i) or (ii). 

“Unidym Revenue” means cumulative proceeds actually received in cash or immediately available funds by the
Surviving Corporation or Acquirer or its Affiliates, successors or assigns from sales of Products or Net Proceeds From Licensing Activities (excluding proceeds received in connection with the Bingel Patents or the $4,500,000 of consideration paid by
Samsung Electronics under the Samsung Transactions and also excluding proceeds received from sale of Services), which proceeds would be booked as revenue under US GAAP. For the avoidance of doubt, if any proceeds are received from sale of certain
products consisting of Products and different constituent products other than Products, then the amount of Unidym Revenue from sale of such products shall be adjusted proportionally to reflect composition of costs or added value of Products and the
different constituent products. 
 ARTICLE 2 
 PLAN OF MERGER 
 2.1 The Merger. The parties hereto will cause the
Merger to be consummated by filing the Certificate of Merger with the Secretary of State of the State of Delaware in accordance with the applicable provisions of Delaware Law on the Closing Date. Subject to the terms and conditions of this
Agreement, at the Effective Time, Sub will be merged with and into Company in a statutory merger, the separate existence of Sub will cease and Company will be the surviving corporation in the Merger (the “Surviving
Corporation”), all pursuant to the Certificate of Merger and in accordance with the applicable provisions of Delaware Law. 
 2.2 Conversion and Exchange of Shares. 
 (a) Conversion of Series D
Preferred Stock. Subject to the terms and conditions of this Agreement, at the Effective Time, each share of Series D Preferred Stock that is issued and outstanding immediately prior to the Effective Time will, by virtue of the Merger and
without the need for any further action on the part of Acquirer, Sub, Company or the holder thereof (except as expressly provided herein), be converted into and represent (i) the right to receive an amount of cash equal to the Series D Cash
Amount Per Share, (ii) the right to receive an amount of cash (without interest) equal to the Series D Product Sales Amount Per Share , and (iii) the right to receive the Series D Revenue Amount Per Share. The amount of cash each Company
Series D Holder is entitled to receive pursuant to this Section 2.2(a) for the shares of Series D Preferred Stock held by such Company Series D Holder shall be rounded to the nearest cent and computed after aggregating cash amounts for
all shares of Series D Preferred Stock held by such Company Series D Holder. The provisions of this Section 2.2(a) are subject to the provisions of Section 2.3 (regarding Dissenting Shares) and Section 2.7(d)
(regarding surrender of Certificates). 

 (b) Conversion of Series C Preferred Stock. Subject to the terms and conditions of
this Agreement, at the Effective Time, each share of Series C Preferred Stock that is issued and outstanding immediately prior to the Effective Time will, by virtue of the Merger and without the need for any further action on the part of Acquirer,
Sub, Company or the holder thereof (except as expressly provided herein), be converted into and represent, the right to receive the Series C Revenue Amount Per Share, if, and only if, the Earnout Consideration and/or the Bingel Patent Consideration
payable by the Surviving Corporation to the Company Stockholders exceeds the Series D Payout Threshold. The amount of cash each Company Series C Holder is entitled to receive pursuant to this Section 2.2(b) for the shares of Series C
Preferred Stock held by such Company Series C Holder shall be rounded to the nearest cent and computed after aggregating cash amounts for all shares of Series C Preferred Stock held by such Company Series C Holder. The provisions of this
Section 2.2(b) are subject to the provisions of Section 2.3 (regarding Dissenting Shares) and Section 2.7(d) (regarding surrender of Certificates). 

(c) Conversion of Series B Preferred Stock. Subject to the terms and conditions of this Agreement, at the Effective Time, each
share of Series B Preferred Stock that is issued and outstanding immediately prior to the Effective Time will, by virtue of the Merger and without the need for any further action on the part of Acquirer, Sub, Company or the holder thereof (except as
expressly provided herein), be converted into and represent, the right to receive the Series B Revenue Amount Per Share, if, and only if, the Earnout Consideration and/or the Bingel Patent Consideration payable by the Surviving Corporation to the
Company Stockholders exceeds the Series C Payout Threshold. The amount of cash each Company Series B Holder is entitled to receive pursuant to this Section 2.2(c) for the shares of Series B Preferred Stock held by such Company Series B
Holder shall be rounded to the nearest cent and computed after aggregating cash amounts for all shares of Series B Preferred Stock held by such Company Series B Holder. The provisions of this Section 2.2(c) are subject to the provisions
of Section 2.3 (regarding Dissenting Shares) and Section 2.7(d) (regarding surrender of Certificates). 

(d) Conversion of Series A Preferred Stock. Immediately prior to the Effective Time, each share of Series A Preferred Stock that
is issued and outstanding immediately prior to the Effective Time will, in connection with the Merger and without the need for any further action on the part of Acquirer, Sub, Company or the holder thereof, be cancelled and deemed converted into one
share of Company Common Stock immediately prior to the Effective Time pursuant to Section 4.1.1 of Article Fourth of Company’s Certificate of Incorporation, as may be amended from time to time (the “Conversion”).

 (e) Conversion of Company Common Stock. At the Effective Time, each share of Company Common Stock that is issued and
outstanding immediately prior to the Effective Time (which, for the avoidance of doubt, includes each share of Company Common Stock deemed to have been issued as a result of the Conversion) will, by virtue of the Merger and without the need for any
further action on the part of Acquirer, Sub, Company or the holder thereof (except as expressly provided herein), be converted into and represent, the right to receive the Common Revenue Amount Per Share, if, and only if, the Earnout Consideration
and/or the Bingel Patent Consideration payable by the Surviving Corporation to the Company Stockholders exceeds the Series B Payout Threshold. The amount of cash each Company Common Stock Holder is entitled to receive pursuant to this
Section 2.2(e) for the shares of Company Common Stock held by such Company Common Stock Holder shall be rounded to the nearest cent and computed after aggregating cash amounts for all shares of Company Common Stock held by such Company
Series B Holder. The provisions of this Section 2.2(e) are subject to the provisions of Section 2.3 (regarding Dissenting Shares) and Section 2.7(d) (regarding surrender of Certificates). 

(f) Conversion of Sub Stock. Subject to the terms and conditions of this Agreement, at the Effective Time, each share of Sub
common stock that is issued and outstanding 

 
immediately prior to the Effective Time will be converted into one validly issued, fully paid and nonassessable share of common stock of the Surviving Corporation. Each certificate evidencing
ownership of shares of Sub common stock will evidence ownership of such shares of common stock of the Surviving Corporation. 

(g) Cancellation of Company-Owned Stock. Notwithstanding Sections 2.2(a)-(e), each share of Company Capital Stock held by Company
immediately prior to the Effective Time will be canceled and extinguished without any conversion thereof and without the issuance or payment of any consideration. 
 (h) Company Options, Company Warrants and Other Rights. No Company Options or other Company Rights, whether vested or unvested, shall be assumed by either Acquirer or the Surviving Corporation in
connection with the Merger. Each Company Option outstanding immediately prior to the Effective Time that is exercised prior to the Effective Time shall receive upon exercise, shares of Company Common Stock pursuant to which such Company Option is
exercisable for and shall be treated in accordance with Section 2.2(e). Any Company Options which are not exercised prior to the Effective Time shall, without any further action on the part of any holder thereof, automatically be cancelled and
extinguished effective as of the Closing without any conversion thereof and without the issuance or payment of any consideration. Each Company Warrant outstanding immediately prior to the Effective Time that is exercised prior to the Effective Time
shall receive upon exercise, shares of Company Capital Stock pursuant to which such Company Warrant is exercisable for and shall be treated in accordance with Sections 2.2(a)-(e) hereto, as applicable. Any Company Warrants which are not
exercised prior to the Effective Time shall, without any further action on the part of any holder thereof, be exercisable in accordance with the terms and conditions of the Company Warrant in exchange for the right to receive the merger
consideration provided for in Section 2.2. 
 2.3 Dissenting Shares. Notwithstanding anything contained herein to
the contrary, Dissenting Shares (if any) shall not be converted into the right to receive the merger consideration provided for in Section 2.2, but shall instead be converted into the right to receive such consideration as may be determined to
be due with respect to any such Dissenting Shares pursuant to Delaware Law or California Law. Each holder of Dissenting Shares who, pursuant to the provisions of Delaware Law or California Law, becomes entitled to payment thereunder for such shares
shall receive payment therefor in accordance with Delaware Law or California Law (but only after the value therefor shall have been agreed upon or finally determined pursuant to such provisions). If, after the Effective Time, any Dissenting Shares
shall lose their status as Dissenting Shares, then any such shares shall immediately be converted into the right to receive the merger consideration, if any, pursuant to Section 2.2 in respect of such shares as if such shares never had been
Dissenting Shares, and the Surviving Corporation shall pay to the holder thereof, following the satisfaction of the applicable conditions set forth in Section 2.2, the amount of merger consideration to which such holder would be entitled in
respect thereof. Company shall give Acquirer prompt notice (and in any case, within one Business Day following receipt) of any demands for appraisal and payment received by Company, withdrawals of such demands, and any other instruments related to
Dissenting Shares served pursuant to Delaware Law or California Law and received by Company and Acquirer will have the right to direct all negotiations and proceedings with respect to assertions of dissenters’ rights under Delaware Law or
California Law. Prior to the Effective Time, the Company shall not, except with the prior written consent of Acquirer, or as otherwise required under Delaware Law or California Law, voluntarily make any payment or offer to make any payment with
respect to, or settle or offer to settle, any claim or demand in respect of any Dissenting Shares. 
 2.4 Earnout.

 During the ten (10) year period beginning on the Closing Date, the Surviving
Corporation or Acquirer or its Affiliates, successors, or assigns shall make payments to the Company Stockholders pursuant to Sections 2.2(a)-(e) based on cumulative amounts of Unidym Revenue (“Revenue Milestones”),
measured as of the Closing Date, as follows (“Earnout Payments”): 
  

			
	 Unidym Revenue Milestones
	  	Payments to Company Stockholders
	 $10,000,000.00
	  	$750,000.00
	 $30,000,000.00
	  	$800,00.00
	 $50,000,000.00
	  	$950,000.00
	 $100,000,000.00
	  	$3,000,000.00
	 $150,000,000.00
	  	$3,000,000.00
	 $200,000,000.00
	  	$3,000,000.00
	 $350,000,000.00
	  	$7,500,000.00
	 $500,000,000.00
	  	$7,500,000.00
	 $1,000,000,000.00
	  	$16,000,000.00
	 $1,500,000,000.00
	  	$22,500,000.00
	 $2,000,000,000.00
	  	$30,000,000.00
	 $3,000,000,000.00
	  	$45,000,000.00

 Upon the achievement of
each Revenue Milestone, within three (3) Business Days, the Surviving Corporation or Acquirer or its Affiliates (if Acquirer or its Affiliates receive proceeds from sales of Products or Net Proceeds From Licensing Activities without
compensating Unidym based on fair market value of the Products), successors or assigns shall make the corresponding Earnout Payment pursuant to Section 2.4(a) (but excluding any amounts already paid to the Company Stockholders pursuant to
Section 2.4(c)) to the Company Stockholders pursuant to Sections 2.2(a)-(e) and Exhibit A. 
 From the Closing Date
until such time as the achievement and/or non-achievement of all amounts of Earnout Consideration have been determined by the Surviving Corporation, the Surviving Corporation shall use commercially reasonable efforts in good faith to provide
adequate resources so as to make it possible for the Company Stockholders to earn the full benefit of the Earnout Consideration. 
 2.5 Bingel Patents. 
 During the ten (10) year period beginning on the
Closing Date, the Surviving Corporation, its successors or assigns shall pay the Bingel Patent Consideration to the Company Stockholders, pursuant to Sections 2.2(a)-(e) and Exhibit A, within ninety (90) days from the date Surviving
Corporation, its successors or assigns receive any proceeds from licenses (current and future) of the Bingel Patents or assignment of the Bingel Patent Agreement. 

 2.6 Effects of the Merger. 

(a) General. At the Effective Time, the effect of the Merger will be as provided in this Agreement and the applicable provisions
of Delaware Law. Without limiting the generality of the foregoing, at the Effective Time, all of the properties, rights, privileges, powers and franchises of Company and Sub will vest in the Surviving Corporation, and all Liabilities and duties of
Company and Sub will become the Liabilities and duties of the Surviving Corporation. 
 (b) Certificate of Incorporation.
The Certificate of Incorporation of the Surviving Corporation shall be amended and restated as of the Effective Time to be identical to the Certificate of Incorporation of Sub as in effect immediately prior to the Effective Time until thereafter
amended in accordance with the provisions thereof or as provided by law; provided, however, that Article I of the Certificate of Incorporation of the Surviving Corporation will be amended at the Effective Time to read: “The name
of the corporation is Unidym, Inc.” 
 (c) Bylaws. The Bylaws of the Surviving Corporation shall be amended and
restated as of the Effective Time to be identical to the Bylaws of Sub as in effect immediately prior to the Effective Time until thereafter amended in accordance with the provisions thereof or as provided by law. 

(d) Directors and Officers. At the Effective Time, (i) the initial directors of the Surviving Corporation will be the
directors of Sub immediately prior to the Effective Time, until their respective successors are duly elected or appointed and qualified and (ii) the initial officers of the Surviving Corporation will be the officers of Sub immediately prior to
the Effective Time, until their respective successors are duly appointed. 
 2.7 Closing and Surrender of Certificates.

 (a) Closing. Subject to the terms and conditions of this Agreement, the closing of the Merger (the
“Closing”) shall take place at a place to be discussed and agreed upon, on January [    ], 2011 at 9:00 a.m., local time, or at such other location, time and date as the parties hereto may agree
(the “Closing Date”). 
 (b) Closing Deliveries of Company. At the Closing, Company shall deliver
to Acquirer the following items: 
 (i) signature pages to the Bond Purchase Agreement and the Stock Purchase Agreement
executed by the each of the Company Series D Holders; 
 (ii) evidence of Company’s receipt of approval of the
transactions contemplated by this Agreement by Samsung Electronics; 
 (iii) letters of resignation from each officer and
member of the Board of Directors of Company; 
 (iv) a Secretary’s Certificate, executed by Company’s Secretary,
attaching copies of the Company Charter Documents as currently in effect, and executed copies of resolutions adopted by Company’s Board of Directors and the Company Stockholders approving this Agreement and the transactions contemplated hereby;
and 

 (v) a certificate from the Secretary of State of the State of Delaware and any other
jurisdiction(s) in which Company is qualified to do business dated as of a recent date prior to the Closing Date, regarding the good standing of Company with that agency as of such date. 

(c) Closing Deliveries of Acquirer. At the Closing, Acquirer shall deliver to Company the following items: 

(i) an executed counterpart signature page to the Bond Purchase Agreement and the Stock Purchase Agreement; and 

(d) Other Terms of Payment/Closing Mechanics. At and after the Effective Time, each certificate representing outstanding shares of
Company Capital Stock will represent the right to receive an amount of merger consideration as determined pursuant to Sections 2.2(a)-(e), subject to the provisions of Section 2.3 (regarding Dissenting Shares), for which such
shares of Company Capital Stock have been or will be exchanged. Within three (3) Business Days after the Effective Time, the Surviving Corporation will cause to be mailed to each holder of record of a certificate or certificates that
immediately prior to the Effective Time represented outstanding shares of Company Capital Stock (each, a “Certificate”) and which shares were converted into the right to receive cash pursuant to Sections 2.2(a)-(e),
(i) a letter of transmittal (the “Letter of Transmittal”) in customary form (which will specify that delivery will be effected, and risk of loss and title to any Certificate will pass, only upon delivery of such
Certificate to the Surviving Corporation or such other agent or agents as may be appointed by the Surviving Corporation and (ii) instructions for use in effecting the surrender of Certificates in exchange for the merger consideration payable
pursuant to Sections 2.2(a)-(e). Upon surrender to the Surviving Corporation of a Certificate for cancellation or upon delivery to the Surviving Corporation of an affidavit of lost certificate and an indemnification agreement in form and
substance reasonably satisfactory to the Surviving Corporation (an “Affidavit”) and Letter of Transmittal, duly completed and validly executed in accordance with the instructions thereto, the Surviving Corporation will
deliver within three (3) Business Days to each tendering holder of a Certificate or an Affidavit, pursuant to the payment instructions for such tendering holder set forth in such tendering holder’s Letter of Transmittal, the amount of
merger consideration to which such holder is entitled pursuant to Sections 2.2(a)-(e), as applicable, subject to Section 2.3 (regarding Dissenting Shares). After the Effective Time and until the Certificates are surrendered
pursuant to this Section 2.7(d), such Certificates will be deemed, for all purposes, to evidence only ownership of the right to receive the merger consideration payable pursuant to Sections 2.2(a)-(e). 

ARTICLE 3 

REPRESENTATIONS AND WARRANTIES OF COMPANY 
 CONCERNING THE COMPANY 
 Except as set forth in the disclosure letter of
Company dated as of the Agreement Date, including all Schedules thereto which will specifically reference the sections or subsections of this Article 3 to which the items of disclosure therein constitute an exception (unless and then to the extent
the relevance to other sections or subsections is reasonably apparent from the face of the disclosed exception or from a reading of the document(s) referred to in such exception), which has been delivered by Company to Acquirer concurrently with the
parties’ execution of this Agreement (the “Company Disclosure Letter”), Company and Arrowhead represent and warrant to Acquirer that each of the representations and warranties contained in the following sections or
subsections of this Article 3 is true and correct as of the Agreement Date: 

 3.1 Organization and Good Standing. Company is duly organized, validly existing and
in good standing under the laws of the jurisdiction in which it is organized and has the power and authority to own, operate and lease its properties and to carry on the Company Business. Company is duly qualified or licensed to do business and is
in good standing in each jurisdiction where the character of its properties owned or leased or the nature of its activities make such qualification or licensing necessary (each such jurisdiction being listed on Schedule 3.1), except where the
failure to be so qualified or licensed would not, individually or in the aggregate, have a Material Adverse Effect on Company. Company is not in violation of any of its Company Charter Documents. 

3.2 No Subsidiaries. Except for (i) the minority ownership position in Nexeon MedSystems pursuant to the license agreement
with Nanotech Catheter Solutions, (ii) the 100% ownership position in Nanoconduction, Inc., and (iii) the 100% ownership position in Unidym Korea, 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. 
 3.3 Power, Authorization and Validity. 
 (a) Company has the right, power
and authority to enter into and perform its obligations under this Agreement and all Company Ancillary Agreements. The execution, delivery and performance of this Agreement and the Company Ancillary Agreements, and the Merger, have been duly and
validly approved and authorized by Company, and this Agreement has been duly executed and delivered by Company. The affirmative votes of the holders of (i) a majority of the shares of Company Common Stock that are issued and outstanding (voting
as a separate class), (ii) a majority of the shares of Company Common Stock and Company Preferred Stock that are issued and outstanding (voting together as a single class on an as-converted to Company Common Stock basis), (iii) a majority
of the shares of Company Series D Preferred Stock that are issued and outstanding (voting as a separate class on an as-converted to Company Common Stock basis) and (iv) a majority of the shares of Company Preferred Stock that are issued and
outstanding (voting together as a single class on an as-converted to Company Common Stock basis) (collectively, the “Requisite Votes”) are the only votes of the Company Stockholders necessary under all Applicable Laws and the
Company Charter Documents to approve the Merger, this Agreement and, if required, each Company Ancillary Agreement and all other agreements, transactions and actions contemplated hereby and thereby. 

(b) No filing, authorization, consent, approval, permit, order, registration or declaration from any United States Governmental Authority
is necessary to enable Company to enter into, and to perform its obligations under, this Agreement or the Company Ancillary Agreements, except for the filing of the Certificate of Merger with the State of Delaware Secretary of State. 

(c) This Agreement and the Company Ancillary Agreements are, or when executed by Company will be, and assuming the due authorization,
execution and delivery hereof (and in the case of Acquirer Ancillary Agreements, thereof) by Acquirer and all other parties thereto will each constitute, valid and binding obligations of Company, enforceable against Company in accordance with their
respective terms, subject only to the effect, if any, of (i) applicable bankruptcy and other similar laws affecting the rights of creditors generally, and (ii) rules of law governing specific performance, injunctive relief and other
equitable remedies. 
 3.4 Capitalization. 

 (a) Capital Stock. There are authorized for issuance (i) 80,000,000 shares of
Company Common Stock, and (ii) 49,173,252 shares of Company Preferred Stock, $0.0001 par value per share, of which 5,000,000 shares are designated as Series A Preferred Stock (“Series A Preferred Stock”), 5,673,252
shares are designated as Series B Preferred Stock (“Series B Preferred Stock”), 8,500,000 shares are designated as Series C Preferred Stock (“Series C Preferred Stock”), and 30,000,000 shares are
designated as Series D Preferred Stock (“Series D Preferred Stock”). As of the date hereof, the Company Capital Stock consists of the following: 
 (i) Five Million Seven Hundred Eighty Thousand One Hundred (5,780,100) shares of issued and outstanding Common Stock. 
 (ii) Five Million (5,000,000) shares of issued and outstanding Series A Preferred Stock. 
 (iii) Five Million Six Hundred Seventy Three Thousand Two Hundred and Fifty Two (5,673,252) shares of issued and outstanding Series B Preferred Stock. 

(iv) Eight Million One Hundred Twenty Five Thousand Eight Hundred Eighty-Nine (8,125,889) shares of issued and outstanding Series C
Preferred Stock. 
 (v) Twenty Three Million Five Hundred Eight Thousand Four Hundred Twenty One (23,508,421) shares of
issued and outstanding Series D Preferred Stock. 
 The number of issued and outstanding shares of Company Capital Stock held by each Company
Stockholder as of the Closing Date is set forth on Schedule 3.4(a). No shares of Company Capital Stock are issued or outstanding as of the Closing Date that are not set forth on Schedule 3.4(a) and no shares of Company Capital Stock
will be issued or outstanding as of the Closing Date that are not set forth on Schedule 3.4(a) except for shares of Company Common Stock issued pursuant to the exercise of outstanding Company Options listed on Schedule 3.4(b) and
shares of Company Capital Stock issued pursuant to the exercise of outstanding Company Warrants listed on Schedule 3.4(c). 
 (b) Company Options. Company has reserved an aggregate of 5,000,000 shares of Company Common Stock for issuance pursuant to the Company Option Plan, of which 2,643,250 shares are subject to
outstanding and unexercised Company Options. Schedule 3.4(b) sets forth a true, correct and complete list of all holders of outstanding Company Options, whether or not granted under the Company Option Plans, including the number of shares of
Company Common Stock subject to each such option. Company has granted no Company Options outside of the Company Option Plan. A true and correct copy of the Company Option Plan, the standard agreement under the Company Option Plan and each agreement
for each Company Option that does not conform to the standard agreement under the Company Option Plan have been delivered by Company to Acquirer’s legal counsel. All outstanding Company Options have been issued and granted in compliance with
all Applicable Laws and all requirements set forth in applicable Contracts. 
 (c) Company Warrants. Schedule
3.4(c) sets forth a true, correct and complete list of all holders of outstanding Company Warrants, including the number of shares and type of Company Capital Stock subject to each such warrant, the date of grant, the exercise or vesting
schedule (and the terms of any acceleration thereof), the exercise price per share and the term of each such warrant. All outstanding Company Warrants have been issued and granted in compliance with all Applicable Laws and all requirements set forth
in applicable Contracts. 

 (d) Except for Company Options and Company Warrants set forth on Schedule 3.4(b)
and Schedule 3.4(c), respectively, there are no other options, warrants, calls, Contracts or other Company Rights of any character to which the Company is a party or by which it is bound obligating the Company to issue, deliver, sell,
repurchase or redeem, or cause to be issued, delivered, sold, repurchased or redeemed, any shares of any Company Capital Stock, Company Options, Company Warrants or other Company Rights, or obligating the Company to grant, extend, accelerate the
vesting and/or repurchase rights of, change the price of, or otherwise amend or enter into any such option, warrant, call, Contract or other Company Right. Neither the Company Option Plan, any Company Option, Company Warrant nor any other Contract
of any character to which the Company is a party to or is bound relating to any security of the Company that is entitled (or is exercisable into a security that is entitled) to receive the merger consideration pursuant to Section 2.2 requires
or otherwise provides for any accelerated vesting or exercisability of any such security in connection with the Merger or any other transaction contemplated by this Agreement or upon termination of employment or service with Company or with Acquirer
following the Merger or otherwise. 
 3.5 No Conflicts. Neither the execution and delivery of this Agreement or the
Company Ancillary Agreements, nor the consummation of any of the transactions contemplated hereby or thereby, will (a) conflict with or violate any provision of the Company Charter Documents as currently in effect, (b) conflict with or
violate any Applicable Law, (c) conflict with, violate, constitute a default under, result in a termination, acceleration or breach of, or provide any party with any right of termination or acceleration or any other material rights or remedies
under (in each case with or without notice or lapse of time, or both) any agreement that would result in a Material Adverse Effect. 
 3.6 Litigation. There is no action, suit, proceeding or investigation pending or, to the Company’s knowledge, currently threatened against the Company. 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. 
 3.7
Financial Statements and Net Working Capital Statements. Company has delivered to Acquirer its consolidated financial statements as of December 31, 2010 (the “Balance Sheet Date”) (including, in each case, balance
sheets and statements of operations) (collectively, the “Financial Statements”), which are included as Schedule 3.7. The Financial Statements (i) are true, correct and complete, (ii) are derived from and are
in accordance with the books and records of Company, (iii) fairly and accurately represent the financial condition of Company at the respective dates specified therein and the results of operations for the respective periods specified therein,
subject to normal year-end adjustments, which are not material in amount in any individual case or in the aggregate, and (iv) have been prepared in accordance with US GAAP applied on a basis consistent with prior periods, except for the
absence of any footnotes thereto. Company does not have any Liabilities of any nature, except for (A) Liabilities set forth in the Financial Statements and (B) Liabilities incurred in the ordinary course of Company’s business,
consistent with past practice, since the Balance Sheet Date that are not material in amount either individually or collectively and do not result from any breach of contract, tort or violation of law. There has been no change in Company’s
accounting policies other than as specifically described in the notes to the Financial Statements. All reserves that are set forth or reflected on the balance sheet as of December 31, 2010 (the “Balance Sheet”) are
adequate and have been established in accordance with US GAAP. As of the Closing, Company shall have Cash on Hand of at least $700,000. As of the Closing, Company shall have cash in its bank accounts of at least $1,600,000. 

3.8 Taxes. 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. 

3.9 Title to Assets and Properties; Condition of Equipment and Property. Schedule 3.9 lists all lease agreements between Unidym
and third parties. The property and assets used by the Company in its business are owned or leased 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 listed in Schedule 3.9 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 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. 

3.10 Agreements. 
 (a) Except as set forth in Schedule 3.10, there are no agreements or understandings between the Company and any of its officers, directors, affiliates or any affiliate thereof, 

(b) 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 $100,000, 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 

(c) 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. 

For the purposes of subsections (a),(b) and (c) 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. 

3.11 Compliance. The Company is not in violation of any provision of its Restated Certificate, or Bylaws nor, to the best of 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 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. 
 3.12
Intellectual Property. 

 (a) Schedule 3.12 lists all patents and patent applications owned by or exclusively licensed
to the Company. 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. Schedule 3.12 lists all out-license agreements between Unidym and third parties. Schedule 3.12 lists all active non-disclosure agreements,
material transfer agreements, and joint development agreements between Unidym and third parties. 
 (b) Except as set forth in
Schedule 3.12(b), the Intellectual Property owned, registered or applied for by the Company, and the Intellectual Property exclusively licensed to the Company, does not conflict with, or constitute an infringement of, the Intellectual Property
rights of others and is not being infringed or opposed by any person. Except for the patents licensed to Samsung Electronics and Ensysce Biosciences and listed in Schedule 3.12(b), no third party, employee or other person has any right, claim or
interest in any Intellectual Property owned, registered or applied for by the Company. 
 3.13 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. 
 3.14 Certain Transactions and Agreements. 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. 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. 

3.15 Labor. Schedule 3.15 lists all existing agreements between Unidym and its employees. 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 best of 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 best of the Company’s knowledge, threatened, that would reasonably be expected to have a Material Adverse Effect, nor does the Company have knowledge of any labor
organization activity involving its employees. To the best of the Company’s knowledge, no 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. The Company has complied in all material respects with all applicable state and federal equal
employment opportunity and other laws related to employment. 
 3.16 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. 

3.17 Proprietary Information Agreements. Each current employee of the Company has executed a Proprietary Information and
Inventions Agreement in substantially the form provided to Acquirer upon request by Acquirer. To the best of the Company’s knowledge, no such employee is in violation thereof. 

3.18 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. 

3.19 Environmental, Health and Safety Matters. 
 (a) Except as set forth in Section 3.19(b), the Company is not in violation of any applicable statute, law or regulation relating to the environment or occupational health and safety, and no
material expenditures are or will be required in order to comply with any such existing statute, law or regulation. 
 (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 3.19(b), including its compliance with the new EPA guidance. 

ARTICLE 4 

REPRESENTATIONS AND WARRANTIES OF ACQUIRER AND SUB 
 Acquirer and Sub represent and warrant to Company that each of the representations, warranties and statements contained in the following Sections of this Article 4 is true and correct on and as of the
Closing Date. 
 4.1 Organization and Good Standing. Acquirer is a corporation duly organized, validly existing and in
good standing under the laws of Korea and has the power and authority to own, operate and lease its properties and to carry on its business as presently being conducted and as proposed to be conducted. Sub is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware and has the power and authority to own, operate and lease its properties and to carry on its business as presently being conducted. 

4.2 Power, Authorization and Validity. 
 (a) Acquirer and Sub have the right, power and authority to enter into and perform their respective obligations under this Agreement and all Acquirer Ancillary Agreements. The execution, delivery and
performance of this Agreement and the Acquirer Ancillary Agreements, and the Merger, have been duly and validly approved and authorized by all necessary action by the Board of Directors of Sub, and no action on the part of the Board of Directors and
stockholders of Acquirer is required to authorize the execution, delivery and performance of this Agreement, or the Merger and the 

 
consummation of the transactions contemplated hereby and thereby, and this Agreement has been duly executed and delivered by Acquirer and Sub. 

(b) No filing, authorization, consent, approval, permit, order, registration or declaration, governmental or otherwise, is necessary to
enable Acquirer and Sub to enter into, and to perform their respective obligations under, this Agreement or the Acquirer Ancillary Agreements, except for: (i) the filing of the Certificate of Merger with the Delaware Secretary of State;
(ii) the filing of a direct overseas investment report in connection with Acquirer’s investment in Sub; and (iii) such other filings, authorizations, consents, approvals, permits, orders, registrations and declarations, if any, that
if not made or obtained by Acquirer or Sub would not be material to Acquirer’s or Sub’s ability to consummate the Merger or to perform their respective obligations under this Agreement and the Acquirer Ancillary Agreements. 

(c) This Agreement and the Acquirer Ancillary Agreements are, or when executed by Acquirer and Sub (as applicable) will be, valid and
binding obligations of Acquirer and Sub (as applicable) enforceable against Acquirer and Sub (as applicable) in accordance with their respective terms, subject only to the effect, if any, of (i) applicable bankruptcy and other similar laws
affecting the rights of creditors generally, and (ii) rules of law governing specific performance, injunctive relief and other equitable remedies. 
 4.3 No Conflicts. Neither the execution and delivery of this Agreement or the Acquirer Ancillary Agreements, nor the consummation of any of the transactions contemplated herein or therein, will
(a) conflict with or violate any provision of the Certificate of Incorporation or Bylaws of Acquirer or Sub, each as currently in effect, or (b) except as would not have a Material Adverse Effect on Acquirer, conflict with or violate any
Applicable Law. 
 4.4 No Prior Sub Operations. Sub was formed solely for the purpose of effecting the Merger and has not
engaged in any business activities or conducted any operations other than in connection with the transactions contemplated hereby. 
 ARTICLE 5 
 PRE-CLOSING COVENANTS 

During the time period from the Agreement Date until the earlier to occur of (a) the Effective Time and (b) the termination of
this Agreement in accordance with the provisions of Article 10, the parties hereto agree to take all necessary action to satisfy their respective closing conditions, including but not limited to the following: 

5.1 Access to Information. The Company shall give Acquirer and its representatives full reasonable access to such information as
Acquirer may request. 
 5.2 Conditions Precedent. The Company and Arrowhead shall satisfy the conditions precedent set
forth in Article 8, and shall promptly notify Acquirer of any circumstance which is, or may result in, an inaccuracy or breach of any representation, warranty or covenant by them under this Agreement, or any Material Adverse Change; provided,
however, that no such notice shall excuse the condition set forth in Article 8. 
 5.3 Conduct of Business. Except as
expressly contemplated by this Agreement, Arrowhead shall ensure that the Company shall conduct its business and operations only in the ordinary course of 

 
business consistent with past practice. Arrowhead shall ensure that the Company shall not do anything which would make any of the representations and warranties under Article 3 inaccurate or
misleading. 
 5.4 Requisite Votes. Within four (4) hours following the execution of this Agreement by the parties
hereto, the Company shall deliver to evidence to Acquirer that it has obtained the Requisite Votes. 
 ARTICLE 6

 COVENANTS OF ACQUIRER AND THE SURVIVING CORPORATION 

6.1 Indemnification of Company Directors and Officers. 

(a) If the Merger is consummated, for a period of six (6) years following the Effective Time, the Surviving
Corporation or Acquirer shall fulfill and honor in all respects its obligations to any of its current or former directors and officers as of immediately prior to the Effective Time (the “Company Indemnified Parties”) pursuant
to any indemnification provisions under the Company Charter Documents as in effect on the Agreement Date and pursuant to any indemnification agreements between Company and such Company Indemnified Parties existing as of the Agreement Date (the
“Company Indemnification Provisions”), with respect to claims arising out of matters occurring at or prior to the Effective Time. Any claims for indemnification made under this Section 6.1(a) on or prior to the
sixth anniversary of the Effective Time shall survive such anniversary until the final resolution thereof. The Surviving Corporation shall retain or include in its certificate of incorporation and bylaws indemnification provisions, including
provisions respecting the advancement of expenses, that are at least as favorable to the Company Indemnified Parties as the indemnification provisions in effect immediately prior to the Effective Time, for the benefit of the Company Indemnified
Parties, and, during such six (6) year period, such provisions shall not be amended, repealed or otherwise modified in any respect (except to the extent that such amendment preserves, increases or broadens the indemnification or other rights
theretofore available to the Company Indemnified Parties or as required by Applicable Law). 
 (b) Each of Acquirer, the
Surviving Corporation and the Company Indemnified Parties shall cooperate, and cause their respective Affiliates to cooperate, in the defense of any action requiring indemnification under this Section 6.1 and shall provide access to
properties and individuals as reasonably requested and furnish or cause to be furnished records, information and testimony, and attend such conferences, discovery proceedings, hearings, trials or appeals, as may be reasonably requested in connection
therewith. 
 (c) The obligations set forth in this Section 6.1 will continue for a period of six (6) years
following the Closing Date and will continue in effect thereafter with respect to any proceeding or claim commenced or asserted, as applicable, prior to the sixth anniversary of the Closing Date. The provisions of this Section 6.1 are
intended to be for the benefit of, and shall be enforceable by, the Company Indemnified Parties. 
 6.2 Acquirer Compliance
With Earn Out. Acquirer will use commercially reasonable efforts to cause the Surviving Corporation to fulfill and honor in all respects its obligations to pay the Earnout Consideration to the Company Stockholders, if and when owed, pursuant to
the terms and conditions of this Agreement. 
 6.3 Acquirer Capital Commitment. Acquirer covenants and agrees that it
will transfer to the Surviving Corporation: (1) $400,000 of the capital used to pay the Merger Cash Consideration by January 28, 2011; and (2) the remainder of the capital used to pay the Merger Cash Consideration by February 18,
2011. Acquirer unconditionally guarantees the obligations of the Surviving Corporation until such 

 
transfer is completed. It is further agreed that creditors of Unidym and the Surviving Corporation are intended to be third party beneficiaries under this Section 6.3. 

6.4 Closing Balance Sheet. The Surviving Corporation will deliver to Acquirer the Closing Balance Sheet by January 31, 2011.

 ARTICLE 7 
 CONDITIONS TO OBLIGATIONS OF COMPANY 
 The obligations of Company hereunder
are subject to the fulfillment or satisfaction, on and as of the Closing, of each of the following conditions (any one or more of which may be waived by Company, but only in a writing signed on behalf of Company by Company’s Chief Executive
Officer, and by proceeding with the Closing, Company shall be deemed to have waived any of such conditions that remain unfulfilled or unsatisfied): 
 7.1 Stockholder Approval. The Merger shall have been duly and validly approved and this Agreement shall have been duly and validly adopted, as required by Delaware Law and the Company
Charter Documents, each as in effect on the date of such approval and adoption, by the Requisite Votes. 
 7.2
Accuracy of Representations and Warranties. The representations and warranties of Acquirer set forth in the Bond Purchase Agreement and the Stock Purchase Agreement will be true and correct in all material respects on the Agreement Date and
on the Closing Date with the same force and effect as if they had been made on the Closing Date (except for any such representations and warranties that, by their terms, speak only as of a specific date or dates, in which case such representations
and warranties will be true and correct in all material respects, on and as of such specified date or dates). 

7.3 Closing Deliverables. Company will have received each of the agreements, instruments, consents, waivers and other
documents set forth in Section 2.7(c). 
 7.4 Funding of Sub. Company will have received evidence
from Acquirer that Acquirer transferred USD $3,500,000 to Sub in order for the Surviving Corporation to fulfill its obligation to pay the Merger Cash Consideration pursuant to the terms and conditions of this Agreement. 

ARTICLE 8 

CONDITIONS TO OBLIGATIONS OF ACQUIRER AND SUB 
 The obligations of Acquirer and Sub hereunder are subject to the fulfillment or satisfaction, on and as of the Closing, of each of the following conditions (any one or more of which may be waived by
Acquirer and Sub, but only in a writing signed on behalf of Acquirer and Sub by a duly authorized officer of each of Acquirer and Sub, and by proceeding with the Closing, Acquirer and Sub shall be deemed to have waived any of such conditions that
remain unfulfilled or unsatisfied: 
 8.1 Stockholder Approval. The Merger shall have been duly and validly
approved and this Agreement shall have been duly and validly adopted, as required by Delaware Law and the Company Charter Documents, each as in effect on the date of such approval and adoption, by the Requisite Votes. 

8.2 Closing Deliverables. Acquirer will have received each of the agreements, instruments, consents, waivers and other documents
set forth in Section 2.7(b). 

 8.3 Accuracy of Representations and Warranties. The representations and warranties of
Company and Arrowhead set forth in Article 3 will be true and correct in all material respects on the Closing Date with the same force and effect as if they had been made on the Closing Date (except for any such representations and warranties that,
by their terms, speak only as of a specific date or dates, in which case such representations and warranties will be true and correct in all material respects, on and as of such specified date or dates). 

8.4 No Payment to Dissenting Shares. Company has not made any payment or offer to make any payment with respect to, or settle or
offer to settle, any claim or demand in respect of any Dissenting Shares. 
 8.5 Samsung Transaction. Company has
received proceeds from the Samsung Transactions in an amount equivalent to USD $4,500,000 in cash minus applicable withholding taxes. 
 ARTICLE 9 
 TERMINATION OF AGREEMENT 

9.1 Termination. This Agreement may be terminated at any time before the Closing, whether before or after approval of the Merger
by the Company Stockholders: 
 (a) by the mutual written consent of Acquirer and Company; or 

(b) by either Acquirer or Company, if all conditions to such party’s obligations to consummate the transactions contemplated by this
Agreement have not been satisfied or waived, and the Closing has not occurred, on or before the date that is thirty (30) days from the Agreement Date. 
 ARTICLE 10 
 GENERAL PROVISIONS 

10.1 Non-Survival of Representations and Warranties. If the Merger is consummated, the representations and warranties of
Company, Arrowhead, Acquirer and Sub contained in this Agreement shall expire and be of no further force or effect as of and following the Effective Time, and only such covenants and agreements of Acquirer and Company in this Agreement that by their
terms survive the Effective Time shall survive the Effective Time. Notwithstanding the foregoing, in no event shall the expiration of the representations and warranties of Arrowhead have the effect of precluding Acquirer or the Surviving Corporation
from asserting a claim for fraud, including fraud in the inducement. 
 10.2 Governing Law; Submission to
Jurisdiction. The internal laws of the State of California, irrespective of its choice of law principles, will govern the validity of this Agreement, the construction of its terms, and the interpretation and enforcement of the rights and duties
of the parties hereto. Each of the parties hereto (a) submits to the personal jurisdiction of any state or federal court sitting in Santa Clara County, California in any action or proceeding arising out of or relating to this Agreement,
(b) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court, including but not limited to a motion for forum of non conveniens or other actions or other motions
asserting the aforementioned forum is inconvenient (and waives any bond, surety or other security that might be required of any other party with respect thereto), (c) agrees that all claims in respect of the action or proceeding may be heard
and determined in any such court, and (d) agrees not to bring any action or proceeding arising out of or relating to this Agreement in any other court. Any party may make service on another party by sending or delivering a copy of the process
to the party to be served at 

 
the address and in the manner provided for giving of notices in Section 10.7. Nothing in this Section 10.2, however, will affect the right of any party to serve legal process in any
other manner permitted by law. 
 10.3 Specific Performance. The parties hereto agree that irreparable damage would occur
in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to specific performance and injunctive
relief as a remedy to prevent breaches of this Agreement, without any requirement to post a bond or other security, and to enforce specifically the terms and provisions hereof in any court of the United States or any state or country having
jurisdiction, this being in addition to any other remedy to which they are entitled at law or in equity. The provisions of this Section 10.3 are intended to be for the benefit of, and shall be enforceable by, the Company Stockholders.

 10.4 Assignment; Binding Upon Successors and Assigns. No party hereto may assign any of its rights or obligations
hereunder without the prior written consent of the other parties hereto; provided, however, that any party, without the consent of any other party hereto, assign this Agreement and the Acquirer Ancillary Agreements (a) to any of
its majority-owned Subsidiaries, (b) by operation of law, or (c) in connection with any merger, consolidation or sale of all or a significant portion of its assets or in connection with any similar transaction. This Agreement will be
binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. Any assignment in violation of this Section 10.4 will be void. 

10.5 Severability. If any provision of this Agreement, or the application thereof, is for any reason held to any extent to be
invalid, illegal or unenforceable, then the remainder of this Agreement and the application thereof will nevertheless remain in full force and effect so long as the economic and legal substance of the transactions contemplated by this Agreement are
not affected in any manner materially adverse to any party hereto. Upon such determination that any provision is invalid, illegal or unenforceable, the parties agree to replace such provision with a valid, legal and enforceable provision that will
achieve, to the maximum extent legally permissible, the economic, business and other purposes of such provision. 
 10.6
Amendment and Waivers. This Agreement may not be amended or modified except by a written instrument signed by Acquirer, Sub, and Company. This Agreement may be amended by the parties hereto as provided in this Section 10.6 at any time
before or after approval of this Agreement by the Company Stockholders; provided, however, that, after such approval, no amendment will be made that by Applicable Laws requires the further approval of the Company Stockholders without
obtaining such further approval. At any time prior to the Effective Time, each of Company and Acquirer, by action taken by its Board of Directors, may, to the extent legally allowed: (a) extend the time for the performance of any of the
obligations or other acts of the other contained herein or in any agreement, certificate or document delivered pursuant hereto; (b) waive any inaccuracies in the representations and warranties made to it contained herein or in any agreement,
certificate or document delivered pursuant hereto; and (c) waive compliance with any of the agreements or conditions for its benefit contained herein or in any agreement, certificate or document delivered pursuant hereto. No such extension or
waiver will be effective unless signed in writing by the party against whom such extension or waiver is asserted. The waiver by a party of any breach hereof or default in the performance hereof will not be deemed to constitute a waiver of any other
breach or default or any succeeding breach or default. The failure of any party to enforce any of the provisions hereof will not be construed to be a waiver of the right of such party thereafter to enforce such provisions. 

 10.7 Notices. All notices and other communications required or permitted under this
Agreement will be in writing and will be either hand delivered in person, sent by facsimile, sent by certified or registered first-class mail, postage pre-paid, or sent by nationally recognized express courier service. Such notices and other
communications will be effective upon receipt if hand delivered or upon confirmation if sent by facsimile, five (5) calendar days after mailing if sent by mail, and one business day after dispatch if sent by express courier, to the following
addresses, or such other addresses as any party may notify the other parties in accordance with this Section 10.7: 
 If to
Acquirer: 
 Wisepower Co., Ltd. 
 5th Fl., Ace Techno Tower 
 Mullaedong 3-Ga, Yongsan-Gu 

Seoul, Korea 

Tel: +82-2-2637-7550 
 Fax: +82-2-2637-7594 
 If to Company: 

Unidym, Inc. 

1244 Reamwood Avenue 
 Sunnyvale, CA 94089 
 Attn: Mark Tilley 

Tel: (408) 636-7500 
 Fax: (408) 636-7539 
 with a copy to: 

Fenwick & West LLP 
 Silicon Valley Center 
 801 California Street 

Mountain View, CA 94041 
 Attention: Mark A. Leahy, Esq. 
 Facsimile Number: (650) 938-5200 

10.8 No Joint Venture. Nothing contained in this Agreement will be deemed or construed as creating a joint venture or partnership
between any of the parties hereto. Except as otherwise specified herein: (a) no party is by virtue of this Agreement authorized as an agent, employee or legal representative of any other party; (b) no party will have the power to control
the activities and operations of any other and their status is, and at all times will continue to be, that of independent contractors with respect to each other; (c) no party will have any power or authority to bind or commit any other party;
and (d) no party will hold itself out as having any authority or relationship in contravention of this Section 10.8. 

10.9 Absence of Third-Party Beneficiary Rights. No provisions of this Agreement are intended, nor will be interpreted, to provide
or create any third-party beneficiary rights or any other rights of any kind in any client, customer, Affiliate, stockholder, partner or employee of any party hereto or any other Person, unless specifically provided otherwise herein, and, except as
otherwise so provided, all provisions hereof will be personal solely between the parties to this Agreement. 

 10.10 Time is of the Essence. The parties hereto acknowledge and agree that time is
of the essence in connection with the execution, delivery and performance of this Agreement. 
 10.11 Entire Agreement.
This Agreement, including the Exhibits and Schedules hereto, the Company Ancillary Agreements and the Acquirer Ancillary Agreements constitute the entire understanding and agreement of the parties hereto with respect to the subject matter hereof and
thereof and supersede all prior and contemporaneous agreements or understandings, inducements or conditions, express or implied, oral or written, between the parties, including that certain Non-Binding Confidential Term Sheet negotiated between
Company and Acquirer. The express terms hereof control and supersede any course of performance or usage of the trade inconsistent with any of the terms hereof. 
 10.12 Counterparts. This Agreement may be executed in any number of counterparts, each of which will be an original as regards any party whose signature appears thereon and all of which together
will constitute one and the same instrument. 
 [REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK.] 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
written above. 
  

									
	UNIDYM, INC.	 		 	WISEPOWER CO., LTD.
					
	By:	 	 /s/ Mark G. Tilley
	 		 	By:	 	 /s/ Gi Ho Park

	Name:	 	Mark G. Tilley	 		 	Name:	 	Gi Ho Park
	Title:	 	CEO	 		 	Title:	 	CEO
			
	UNICYCLE ACQUISITION CORP.	 		 	ARROWHEAD RESEARCH CORPORATION
					
	By:	 	 /s/ Mark G. Tilley
	 		 	By:	 	 /s/ Christopher Anzalone

	Name:	 	Mark G. Tilley	 		 	Name:	 	Christopher Anzalone
	Title:	 	CEO	 		 	Title:	 	CEO

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