Document:

EX-10.27

 Exhibit 10.27 

EXECUTION VERSION 

STOCK PURCHASE AGREEMENT 

BY AND AMONG 
 CHIESI
USA, INC., 
 PALLADIO ACQUISITION SUB, INC. 

and 
 PALLADIO
BIOSCIENCES, INC. 
 July 26, 2016 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 ARTICLE I DEFINITIONS
	  	 	1	 
			
	 Section 1.1
	 	Definitions	  	 	1	 
		
	 ARTICLE II PURCHASE AND SALE OF THE SHARES
	  	 	13	 
			
	 Section 2.1
	 	Agreement to Sell and Purchase	  	 	13	 
			
	 Section 2.2
	 	Closing; Closing Deliveries	  	 	13	 
			
	 Section 2.3
	 	Closing Consideration	  	 	14	 
			
	 Section 2.4
	 	Contingent Consideration	  	 	15	 
			
	 Section 2.5
	 	Overdue Payments	  	 	16	 
			
	 Section 2.6
	 	Reporting	  	 	16	 
			
	 Section 2.7
	 	Commercialization Diligence	  	 	17	 
			
	 Section 2.8
	 	Contingent Consideration Payments Not a Security	  	 	18	 
			
	 Section 2.9
	 	Withholding Rights	  	 	18	 
		
	 ARTICLE III REPRESENTATIONS AND WARRANTIES OF SELLER
	  	 	19	 
			
	 Section 3.1
	 	Organization; Power and Authority; Capital Structure	  	 	19	 
			
	 Section 3.2
	 	Subsidiaries	  	 	20	 
			
	 Section 3.3
	 	No Conflict; Consents	  	 	20	 
			
	 Section 3.4
	 	Investment Status	  	 	20	 
			
	 Section 3.5
	 	Material Liabilities; Operations	  	 	21	 
			
	 Section 3.6
	 	Litigation	  	 	21	 
			
	 Section 3.7
	 	Taxes	  	 	21	 
			
	 Section 3.8
	 	Employees and Benefit Plans	  	 	23	 
			
	 Section 3.9
	 	Real and Personal Property	  	 	24	 
			
	 Section 3.10
	 	Contracts and Commitments	  	 	24	 
			
	 Section 3.11
	 	Intellectual Property	  	 	25	 
			
	 Section 3.12
	 	Compliance with Laws	  	 	25	 
			
	 Section 3.13
	 	Environmental Matters	  	 	26	 
			
	 Section 3.14
	 	No Brokers	  	 	26	 
			
	 Section 3.15
	 	Regulatory Matters	  	 	26	 
			
	 Section 3.16
	 	Inventory	  	 	26	 
			
	 Section 3.17
	 	Disclaimer of Other Representations and Warranties	  	 	26	 

  
 i 

							
			
	 Section 3.18
	 	Non-Reliance	  	 	27	 
		
	 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF PARENT
	  			
		
	 PARTIES
	  	 	27	 
			
	 Section 4.1
	 	Organization; Power and Authority; Capitalization	  	 	27	 
			
	 Section 4.2
	 	Subsidiaries	  	 	28	 
			
	 Section 4.3
	 	No Conflict; Consents	  	 	28	 
			
	 Section 4.4
	 	Investment Status	  	 	29	 
			
	 Section 4.5
	 	Litigation	  	 	29	 
			
	 Section 4.6
	 	Taxes	  	 	30	 
			
	 Section 4.7
	 	Compliance with Laws	  	 	30	 
			
	 Section 4.8
	 	No Brokers	  	 	30	 
			
	 Section 4.9
	 	No Liabilities	  	 	30	 
			
	 Section 4.10
	 	Financial and Operational Capability	  	 	30	 
			
	 Section 4.11
	 	Non-Reliance	  	 	31	 
			
	 Section 4.12
	 	Disclaimer of Other Representations and Warranties	  	 	31	 
		
	 ARTICLE V COVENANTS
	  	 	32	 
			
	 Section 5.1
	 	Right of First Negotiation	  	 	32	 
			
	 Section 5.2
	 	Right of First Refusal	  	 	33	 
			
	 Section 5.3
	 	Interim Operations of the Company	  	 	33	 
			
	 Section 5.4
	 	Access to Information	  	 	33	 
			
	 Section 5.5
	 	Commercially Reasonable Efforts	  	 	34	 
			
	 Section 5.6
	 	Publicity	  	 	34	 
			
	 Section 5.7
	 	Technology Transfer and Assistance	  	 	34	 
			
	 Section 5.8
	 	Confidentiality	  	 	35	 
			
	 Section 5.9
	 	RESERVED	  	 	35	 
			
	 Section 5.10
	 	Tax Matters	  	 	35	 
			
	 Section 5.11
	 	Books and Records	  	 	38	 
		
	 ARTICLE VI CONDITIONS TO THE CLOSING
	  	 	38	 
			
	 Section 6.1
	 	Conditions to the Obligations of Each Party	  	 	38	 
			
	 Section 6.2
	 	Additional Conditions to Obligations of the Parent Parties	  	 	38	 
			
	 Section 6.3
	 	Additional Conditions to Obligations of Seller	  	 	39	 
		
	 ARTICLE VII TERMINATION
	  	 	40	 
			
	 Section 7.1
	 	Termination	  	 	40	 

  
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	 Section 7.2
	 	Effect of Termination	  	 	40	 
		
	 ARTICLE VIII SURVIVAL OF REPRESENTATIONS AND WARRANTIES;
	  			
		
	 INDEMNIFICATION
	  	 	40	 
			
	 Section 8.1
	 	Survival	  	 	40	 
			
	 Section 8.2
	 	Indemnification of the Buyer Indemnified Parties	  	 	41	 
			
	 Section 8.3
	 	Indemnification of the Seller Indemnified Parties	  	 	42	 
			
	 Section 8.4
	 	Notice; Defense of Claims	  	 	42	 
			
	 Section 8.5
	 	Limitations	  	 	43	 
			
	 Section 8.6
	 	Source of Payments	  	 	44	 
			
	 Section 8.7
	 	Remedies Exclusive	  	 	45	 
			
	 Section 8.8
	 	Character of Indemnity Payments	  	 	45	 
		
	 ARTICLE IX GENERAL PROVISIONS
	  	 	46	 
			
	 Section 9.1
	 	Notices	  	 	46	 
			
	 Section 9.2
	 	Severability	  	 	47	 
			
	 Section 9.3
	 	Interpretation	  	 	47	 
			
	 Section 9.4
	 	Fees and Expenses	  	 	47	 
			
	 Section 9.5
	 	Choice of Law/Consent to Jurisdiction	  	 	47	 
			
	 Section 9.6
	 	WAIVER OF JURY TRIAL	  	 	48	 
			
	 Section 9.7
	 	Amendment	  	 	48	 
			
	 Section 9.8
	 	Extension; Waiver	  	 	48	 
			
	 Section 9.9
	 	Assignment	  	 	49	 
			
	 Section 9.10
	 	No Third-Party Beneficiaries	  	 	49	 
			
	 Section 9.11
	 	Mutual Drafting	  	 	49	 
			
	 Section 9.12
	 	Prior Company Counsel	  	 	50	 
			
	 Section 9.13
	 	Specific Performance	  	 	50	 
			
	 Section 9.14
	 	Counterparts	  	 	50	 
			
	 Section 9.15
	 	Entire Agreement	  	 	50	 

  
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	Exhibits	  	
		
	Exhibit A	  	Form of Investor Rights Agreement
		
	Exhibit B	  	Form of Novation and Waiver Agreement
		
	Exhibit C	  	Form of Warrant
		
	Exhibit D	  	IRS Form 8883 – Allocation Schedule
		
	Exhibit E	  	Form of Voting Agreement
		
	Exhibit F	  	Form of Right of First Refusal & Co-Sale Agreement

  
 iv 

 STOCK PURCHASE AGREEMENT 

This STOCK PURCHASE AGREEMENT (this “Agreement”) is dated as of July 26, 2016, by and among Chiesi USA, Inc., a
Delaware corporation (“Seller”), Palladio Biosciences, Inc., a Delaware corporation (“Parent”) and Palladio Acquisition Sub, Inc, a Delaware corporation and wholly-owned subsidiary of Buyer (“Buyer”
and together with Parent, the “Parent Parties”). 
 RECITALS: 

WHEREAS, Seller is the owner of One Hundred (100) shares (the “Shares”) of common stock, par value $0.001 per
share (the “Company Common Stock”), of Cardiokine, Inc., a Delaware corporation (the “Company”), representing all of the issued and outstanding capital stock of the Company; 

WHEREAS, Buyer has agreed to purchase from Seller, and Seller has agreed to sell to Buyer, the Shares pursuant to the terms of this
Agreement; and 
 NOW THEREFORE, in consideration of the foregoing and the mutual covenants and agreements hereinafter set forth, and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

ARTICLE I 
 DEFINITIONS

 Section 1.1 Definitions. In this Agreement, the following terms have the meanings specified or
referred to in this Section 1.1. 
 “Affiliate” means, with respect to any Person, any
other Person who is an “affiliate” of that Person within the meaning of Rule 405 promulgated under the Securities Act; provided, however, that Chiesi (including any of its Subsidiaries) shall not constitute an Affiliate of Parent or any of
its Subsidiaries (including Buyer and the Company) after the Closing. 
 “Agreement” has the meaning set forth in
the Preamble. 
 “Approved Indication” has the meaning set forth in Section 5.1. 

“Audit Period” has the meaning set forth in Section 2.6. 

“Benefit Plans” has the meaning set forth in Section 3.8(a). 

“Business Day” means any day other than a Saturday, Sunday or other day on which banking institutions located in New
York, New York are permitted or required by Law to remain closed. 
 “Buyer” has the meaning set forth in the
Preamble. 

 “Buyer Indemnified Party” has the meaning set forth in
Section 8.2(a). 
 “Cap” has the meaning set forth in
Section 8.2(b)(ii). 
 “Chiesi” has the meaning set forth in
Section 5.1. 
 “Chosen Courts” has the meaning set forth in
Section 9.5. 
 “Closing” has the meaning set forth in
Section 2.2(a). 
 “Closing Date” has the meaning set forth in
Section 2.2(a). 
 “Code” means the Internal Revenue Code of 1986. 

“Combination Product” has the meaning set forth in this Section 1.1. 

“Company” has the meaning set forth in the Preamble. 

“Company Common Stock” has the meaning set forth in the Recitals. 

“Compound” means [####] 

“Confidentiality Agreements” has the meaning set forth in Section 5.8. 

“Contingent Consideration Payee” means the Persons entitled to receive “Contingent Consideration” pursuant
to Sections 5.5 and 5.6 of the Pfizer License Agreement and Section 2.6 of the Merger Agreement, as applicable. 

“Contingent Consideration Payments” has the meaning set forth in Section 2.4(a). 

“Contingent Consideration Period” means, on a country-by-country basis, the period commencing on the date that the
applicable regulatory authority in such country grants Marketing Approval for a Lixivaptan Product and expiring upon the later of (a) expiration of the last Valid Claim of any Lixivaptan Patent Right in such country or (b) the expiration
of the market exclusivity period(s) granted by a Governmental Body for a Lixivaptan Product in such country during which such Governmental Body will not grant Regulatory Approval of a product (i) containing the Compound or the active moiety
thereof, (ii) using a Lixivaptan Product as its reference product or (iii) relying in any other manner on the regulatory data or filings for a Lixivaptan Product. 

“Contract” means any contract, lease, sublease, license, sublicense, deed, note, mortgage, indenture, instrument or
other commitment or legally binding agreement, whether written or oral. 
 “Controlling Party” has the meaning set
forth in Section 8.4. 

  
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 “Deductible” has the meaning set forth in
Section 8.2(b)(i). 
 “Disclosure Letter” means the Disclosure Letter delivered by Seller
to the Parent Parties concurrently with the execution and delivery of this Agreement. 
 “Encumbrance” means any
charge, claim, pledge, lien, security interest, mortgage, deed of trust, easement, encroachment or other similar encumbrance. 

“Environment” means soil, surface waters, groundwater, land, stream sediments, surface or subsurface strata and
ambient air and biota living in or on such media. 
 “Environmental Laws” means all Laws relating to protection of
the Environment, including the federal Comprehensive Environmental Response, Compensation and Liability Act, the Resource Conservation and Recovery Act, the Clean Air Act, the Clean Water Act, the Toxic Substances Control Act, the Endangered Species
Act and similar federal, state and local Laws as in effect on the Closing Date. 
 “ERISA” means the Employee
Retirement Income Security Act of 1974. 
 “Fair Market Value” means the following, (a) with respect to Parent
Common Stock that is publicly traded and that is not subject to restrictions on sale, the last sale price on the principal national securities exchange on which they are traded on the Business Day immediately prior to the date of determination, or
if no sales occurred on such day, the highest final “bid” price on such day, and (b) with respect to Parent Common Stock not subject to clause (a) above, the value determined by the Board of Directors of Parent in good faith,
based on all factors which the Board of Directors of Parent, in its sole discretion, determines to be relevant and appropriate, which may include, type of asset, marketability (or absence thereof), restrictions on disposition, purchases of the same
or similar securities by other investors, pending mergers or acquisitions and current and prospective financial position and operating results. 

“FDA” means the United States Food and Drug Administration. 

“Financing Agreements” means the Investor Rights Agreement, Right of First Refusal & Co-Sale Agreement and Voting
Agreement. 
 “Fundamental Expiration Date” has the meaning set forth in Section 8.1. 

“Fundamental Representations” has the meaning set forth in Section 8.1. 

“Fundamental Transaction” means (a) any “person” or “group” (as such terms are used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), other than (i) Parent, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of Parent,
(iii) a company owned, directly or indirectly, by the stockholders of Parent in substantially the same proportions as their ownership of stock of Parent, (iv) the existing holders of capital stock of Parent as of the date hereof or
subsequent holders of capital stock of Parent acquired pursuant to a bona-fide equity financing of Parent, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 

  
 3 

 securities of Parent representing more than fifty percent (50%) of the combined voting power of
Parent’s then outstanding securities; (b) the consummation of a merger, share exchange, consolidation or reorganization involving Parent and any other company or other entity as a result of which (A) less than fifty percent (50%) of
the combined voting power of Parent or of the surviving or resulting company or entity after such transaction is held in the aggregate by the holders of the combined voting power of the outstanding securities of Parent immediately prior to such
transaction or (B) Seller’s shares are exchanged for cash or non-equity consideration; (c) the stockholders of Parent approve a plan of complete liquidation of Parent or an agreement for the sale or disposition by Parent of all or
substantially all of Parent’s assets; (d) the occurrence of an “IPO,” a “Deemed Liquidation Event” or a “Stock Sale” (as each such term is defined in the Investor Rights Agreement); or (e) a sale,
transfer or assignment to any third party who is not an Affiliate of Parent of any material rights relating to any Lixivaptan Product (including any applicable Lixivaptan Patent Right or Regulatory Approvals), other than, for the avoidance of doubt,
sales of a Lixivaptan Product subject to royalties paid to Parent or its Affiliates by the relevant Selling Person measured as a percentage of sales. 

“GAAP” means United States generally accepted accounting principles. 

“General Expiration Date” has the meaning set forth in Section 8.1. 

“Governmental Body” means the government of the United States of America and any state, commonwealth, territory,
possession, county or municipality thereof, or the government of any political subdivision of any of the foregoing, the government or agency of any non-U.S. country, or any entity, authority, agency, ministry or other similar body exercising
executive, legislative, judicial, regulatory or administrative authority or functions of or pertaining to government, including, in all cases, any authority or other quasi-governmental entity established to perform any of such functions. 

“Indebtedness” means, without duplication, (i) any indebtedness for borrowed money, whether current or funded, or
secured or unsecured, (ii) all outstanding obligations evidenced by bonds, monies, debentures, loan agreements, notes, letters of credit, bankers’ acceptances, mortgage notes, guarantees, or similar instruments, (iii) all outstanding
indebtedness representing the balance deferred and unpaid of the purchase price of any property (including all outstanding capital lease, direct financing lease and/or vendor financing obligations) but excluding trade payables, if and to the extent
any of the foregoing would appear as a liability upon a balance sheet prepared in accordance with GAAP; (iv) under any interest rate, currency or other hedging agreements, to the extent payable if terminated at the Closing; (v) all accrued
and unpaid interest or any breakage costs, premiums, fees, expenses, penalties or other amounts due with respect to the indebtedness above; (vi) any lease (or applicable portion thereof) that is required to be accounted for as a long-term
capital lease on a balance sheet, prepared in accordance with GAAP, and any accrued interest and/or accrued financing fees thereon, and (vii) any indebtedness of a Person of a type referred to in clauses (i) through (vi) above and that is
either guaranteed by, or secured by an Encumbrance upon any property or asset owned by, a Person. 
 “Indemnification Cut-Off
Date” has the meaning set forth in Section 8.5(a). 
 “Indemnified Party” has
the meaning set forth in Section 8.4. 

  
 4 

 “Indemnifying Party” has the meaning set forth in
Section 8.4. 
 “Independent Auditor” has the meaning set forth in
Section 2.6(c). 
 “Indication” means (a) an indication for hyponatremia associated
with the Syndrome of Inappropriate Anti-Diuretic Hormone secretion or (b) an indication for hyponatremia associated with Congestive Heart Failure. 

“Initial Notice” has the meaning set forth in Section 5.1. 

“Intellectual Property” means (a) patents, trademarks, service marks, trade names, domain names, copyrights,
designs and trade secrets, (b) applications for and registrations of such patents, trademarks, service marks, trade names, domain names, copyrights and designs, (c) Know-How, and (d) any and all intellectual property rights and
similar proprietary rights in any jurisdiction, including all rights to sue for past, present and future infringement or misappropriation of any of the items in clauses (a), (b) and (c). 

“Investor Rights Agreement” means the investors’ rights agreement by and among Parent, Seller and the other
parties thereto, substantially in the form attached hereto as Exhibit A. 
 “IRS” means the United States
Internal Revenue Service. 
 “Know-How” means any information, results and data of any type whatsoever, in any
tangible or intangible form or medium whatsoever (including in print, electronic or digital form), including databases, ideas, discoveries, inventions, trade secrets, practices, methods, tests, assays, techniques, specifications, processes,
formulations, formulae, knowledge, know-how, skill, experience, materials, including pharmaceutical, chemical and biological materials, products and compositions, scientific, technical or test data (including pharmacological, biological, chemical,
biochemical, toxicological and clinical test data), analytical and quality control data, stability data, studies and procedures, drawings, plans, designs, diagrams, sketches, technology, documentation and descriptions and all other technical and
business information. 
 “Law” means any law, statute, code, executive order, licensing requirement, ordinance,
common law, constitution, treaty, rule, regulation or other requirement of any Governmental Body, including any judgment, order, writ, injunction, ruling, decision or decree of, or any settlement under the jurisdiction of, any court or Governmental
Body having the effect of law in each such jurisdiction. 
 “Liabilities” means any liabilities, obligations or
commitments of any nature whatsoever, asserted or unasserted, known or unknown, absolute or contingent, accrued or unaccrued, matured or unmatured or otherwise requiring the payment or expenditure of money, including any Indebtedness, those arising
under Law, those relating to Taxes and those arising under any Contract, other than obligations pursuant to the Pfizer License Agreement and the Merger Agreement. 

“Lixivaptan Patent Right” means the rights and interests in and to the patents and patent applications set forth in
Section 1.1 of the Disclosure Letter. 

  
 5 

 “Lixivaptan Product” means any pharmaceutical product containing the
Compound as an active pharmaceutical ingredient. 
 “Losses” means, with respect to a Person, any and all losses,
Liabilities, damages, claims, awards, judgments, amounts paid in settlement, costs and expenses (including reasonable attorney’s fees) actually suffered, paid or incurred by such Person. 

“Marketing Approval” means the approval by the FDA, the European Medicines Agency or the Brazil Health Surveillance
Agency, as applicable (or similar or equivalent foreign Governmental Body) of a new drug application (or similar or equivalent application) for a Lixivaptan Product. 

“Material Adverse Effect” means any change, circumstance or effect that is materially adverse to, or has a material
adverse effect upon, the Company and its Subsidiary, provided that the following shall be excluded from any determination of whether a Material Adverse Effect has occurred or would reasonably be expected to occur: (a) any changes in
(i) the United States or global economy generally or the capital or financial markets generally, (ii) political conditions in any country or jurisdiction or (iii) conditions affecting the pharmaceuticals industry generally; (b) any
change or effect resulting from or arising in connection with this Agreement, the other Transaction Documents or the transactions contemplated hereby or thereby, including the announcement of such transactions or any effect of any action taken by
Seller or any of its Affiliates with respect to such transactions; (c) any action required or permitted by this Agreement or the other Transaction Documents or any action taken (or omitted to be taken) with the consent of or at the request of
Buyer (or because Buyer did not provide its consent); (d) any determination by, or delay of a determination by, the FDA or any other Governmental Body, or any panel or advisory body empowered or appointed thereby, or any indication that any such
entity, panel or body will make any determination or delay in making any determination, with respect to the approvability, labeling, contents of package insert, prescribing information, risk management profile, pre-approval inspection matters or
requirements relating to the results of any pre-clinical or clinical testing of any Lixivaptan Product; (e) any recommendations, statements or other pronouncements published or proposed by professional medical organizations or any Governmental
Body, or any panel or advisory body empowered or appointed thereby, relating to any Lixivaptan Product or any of its competitors or potential competitors; (f) any changes or prospective changes in applicable Laws or accounting standards
(including GAAP); and (g) any act of civil unrest, war or terrorism. 
 “Material Contracts” has the meaning
set forth in Section 3.10(a). 
 “Merger Agreement” means that certain Agreement and Plan
of Merger by and among Seller (f/k/a Cornerstone Therapeutics Inc.), Cohesion Merger Sub, Inc., the Company and Shareholder Representative Services LLC, dated as of December 28, 2011. 

“Net Sales” means the gross amount invoiced for any sale of a Lixivaptan Product for any indication by a Selling
Person to a non-Affiliate of the Selling Person or to an Affiliate of the Selling Person if such Affiliate is not itself a Selling Person, less the sum of the following deductions, in each case to the extent actually and reasonably allowed or
incurred in connection with such sale of such Lixivaptan Product in accordance with GAAP: 

  
 6 

	 	(a)	 reasonable and customary trade, cash and quantity discounts off the invoiced price; 

 

	 	(b)	 all excise, sales and other consumption Taxes to the extent included in the invoice price; provided, however,
that with respect to excise tax payments pursuant to Section 9008 of the Patient Protection and Affordable Care Act of 2010, any such deduction shall be limited to the proportionate share of such excise tax equal to the proportionate share that the
aggregate sales of such Lixivaptan Product by such Selling Person during the period to which such excise tax relates bears to the aggregate sales of all products by such Selling Person subject to such excise tax; 

 

	 	(c)	 freight, insurance and other transportation charges to the extent included in the invoice price;

  

	 	(d)	 amounts repaid, credited or accrued or allowances or adjustments made, by reason of returns, rejections, or
recalls, or because of chargebacks, retroactive price reductions, or billing errors; 

  

	 	(e)	 reasonable and customary launch discounts, stocking fees and other discounts extended to wholesalers,
distributors, chain drug stores and other third party organizations who distribute a Lixivaptan Product to pharmacies; 

  

	 	(f)	 reasonable and customary rebates and chargebacks to pharmacy benefit managers, federal, state, or local
governments (or their agencies or purchasers), and managed health organizations (including Medicaid rebates); and 

  

	 	(g)	 any amounts actually written off or specifically identified as uncollected in accordance with GAAP;

 solely to the extent the above deductions are taken in accordance with GAAP (or other similar generally accepted accounting principles
used by any such Selling Person that is not a U.S. Person, consistently applied) applicable to the particular Selling Person. 
 Such amounts shall be
determined from the books and records of the applicable Selling Person, maintained in accordance with GAAP (or other similar generally accepted accounting principles used by any such Selling Person that is not a U.S. Person, consistently applied).
Sales of a Lixivaptan Product between or among the Selling Persons and/or Affiliates of Selling Persons for resale, or for use in the production or manufacture of a Lixivaptan Product, shall not be included within Net Sales; provided, however, that
any subsequent sale of a Lixivaptan Product by any Selling Person or its Affiliates to another Person that is not a Selling Person shall be included within Net Sales. 

Use of a Lixivaptan Product for promotional, sampling or compassionate use purposes or for use in clinical trials (but excluding post-approval clinical trials
for which compensation is received by the Selling Person) shall not be considered in determining Net Sales. 

  
 7 

 In the case of any sale of a Lixivaptan Product for value other than in an arm’s length transaction
exclusively for cash, such as barter or counter-trade, Net Sales shall be calculated based on the fair market value of the consideration received; provided that (a) sales to a third party distributor, wholesaler, group purchasing organization,
pharmacy benefit manager or retail chain customer who is a non-Affiliate of a Selling Person and does not need a license or sublicense in order to resell such Lixivaptan Product shall be considered sales to a non-Affiliate of the Selling Person and
not to a sublicensee, and (b) Net Sales by a Selling Person to a consignee non-Affiliate of the Selling Person are not recognized as Net Sales by such Selling Person until such consignee sells the Lixivaptan Product. 

In the event that a Lixivaptan Product is sold as part of a pharmaceutical product which comprises a Compound and other active compound(s) and/or ingredients
(a “Combination Product”), the Net Sales of the Lixivaptan Product, for the purposes of determining Contingent Consideration Payments, shall be determined by multiplying the Net Sales of the Combination Product by the fraction, A /
(A+B) where A is the weighted average sale price of the Lixivaptan Product where the Compound is the sole active ingredient when sold separately in finished form, and B is the weighted average sale price of the other product(s) or active ingredients
sold separately in finished form. 
 In the event that the weighted average sale price of a Lixivaptan Product containing the Compound as the sole active
ingredient can be determined but the weighted average sale price of the other product(s) or active ingredients cannot be determined, Net Sales for purposes of determining royalty payments shall be calculated by multiplying the Net Sales of the
Combination Product by the fraction A / C where A is the weighted average sale price of the Lixivaptan Product where the Compound is the sole active ingredient when sold separately in finished form and C is the weighted average sale price of the
Combination Product. 
 In the event that the weighted average sale price of the other product(s) or active ingredients can be determined but the weighted
average sale price of the Lixivaptan Product containing the Compound as the sole active ingredient cannot be determined, Net Sales for purposes of determining royalty payments shall be calculated by multiplying the Net Sales of the Combination
Product by the following formula: 1- (B / C) where B is the weighted average sale price of the other product(s) or active ingredients when sold separately in finished form and C is the weighted average sale price of the Combination Product. 

In the event that the weighted average sale price of both the Lixivaptan Product containing the Compound as the sole active ingredient and the other
product(s) or active ingredients in the Combination Product cannot be determined, the Net Sales of the Lixivaptan Product will be negotiated by the Parties in good faith. If the parties cannot reach agreement on the appropriate allocation, the Net
Sales of the Lixivaptan Product will be deemed to be equal to fifty percent (50%) of the Net Sales of the Combination Product. 
 The weighted average sale
price for a Lixivaptan Product containing the Compound as the sole active ingredient, other product(s) or active ingredients, or Combination Product shall be calculated once each calendar year and such price shall be used during all applicable
Contingent Consideration Periods for the entire following calendar year. When determining the weighted 

  
 8 

 average sale price of a Lixivaptan Product containing the Compound as the sole active ingredient, other
product(s) or active ingredients, or Combination Product, the weighted average sale price shall be calculated by dividing the sales dollars by the units of active ingredient sold during the twelve (12) months (or the number of months sold in a
partial calendar year) of the preceding calendar year for the respective Lixivaptan Product containing the Compound as the sole active ingredient, other product(s) or active ingredients, or Combination Product. In the initial calendar year, a
forecasted weighted average sale price will be used for the Lixivaptan Product containing the Compound as the sole active ingredient, other product(s) or active ingredients, or Combination Product. Any over or under payment due to a difference
between forecasted and actual weighted average sale prices will be paid or credited in the first Contingent Consideration Payment of the following calendar year. 

With respect to sales of a Lixivaptan Product or combination product invoiced in United States dollars, Net Sales shall be expressed in United States dollars.
With respect to sales not invoiced in United States dollars, Net Sales shall be converted to U.S. dollars using the applicable exchange rate as published by The Wall Street Journal, Eastern Edition on the last Business Day of the calendar
quarter in which such sales are made. 
 “Non-controlling Party” has the meaning set forth in
Section 8.4. 
 “Novation and Waiver Agreement” means the novation and waiver agreement
among Parent, Seller and Shareholder Representative Services LLC substantially in the form attached hereto as Exhibit B. 

“Ordinary Course of Business” means, with respect to the Company and its Subsidiary, the ordinary course of their
business consistent with past practice. 
 “Outside Date” has the meaning set forth in
Section 7.1(b). 
 “Parent” has the meaning set forth in the Preamble. 

“Parent Common Stock” means the common stock, par value $0.00001 per share, of Parent. 

“Parent Confidentiality Agreement” has the meaning set forth in Section 5.8. 

“Parent Parties” has the meaning set forth in the Preamble. 

“Parent’s Knowledge” or any other similar knowledge qualification means the actual knowledge of Lorenzo
Pellegrini. 
 “Permitted Encumbrances” means (a) liens for Taxes not yet due and payable or being contested in
good faith by appropriate procedures, (b) mechanics, carriers’, workmen’s, repairmen’s or other like liens arising or incurred in the Ordinary Course of Business, or (c) liens arising under original purchase price
conditional sales contracts and equipment leases with third parties entered into in the Ordinary Course of Business, or (d) other imperfections of title or Encumbrances, if any, that have not had, and would not have, a Material Adverse Effect.

  
 9 

 “Person” means any individual, corporation, partnership, limited
liability company, joint venture, association, joint-stock company, trust, unincorporated organization or Governmental Body. 

“Pfizer License Agreement” means that certain License Agreement, by and between Wyeth, acting through its Wyeth
Pharmaceuticals Division (and each successor thereof), and Cardiokine Biopharma, LLC (as assignee of the Company), dated March 15, 2004, as amended May 3, 2004, as further amended October 14, 2004, as further amended June 21, 2007, as
further amended February 6, 2008 and as further amended December 27, 2011. 
 “Pre-Closing Tax Period” means
any taxable period (or portion thereof) ending on or before the Closing Date. 
 “Pre-Closing Taxes” means
(A) any Liability for Taxes of Seller; (B) any Liability for Taxes of the Company or its Subsidiary for the Pre-Closing Tax Period (including any Taxes imposed under Section 1374 or 1375 of the Code or any corresponding or similar
provision of state, local or foreign Tax Law); (C) any Liability for Taxes of any member of any consolidated, combined or unitary or aggregate group of which the Company or its Subsidiary is or has been a member on or prior to the Closing Date,
including pursuant to Treasury Regulation Section 1.1502-6 (or any corresponding or similar provision of state, local or foreign Tax Law); (D) any Taxes of any other Person imposed on the Company or its Subsidiary as a transferee or successor, by
Contract or otherwise; (E) any withholding Taxes imposed with respect to any payments made pursuant to this Agreement; or (F) any Liability for Taxes attributable to the failure of any representation or warranty set forth in
Section 3.7 (determined without regard to disclosure related thereto in the Disclosure Letter) to be true and correct in all respects or a breach of any covenant set forth in Section 5.10. 

“Pricing Approval” means the approval, agreement, determination or governmental decision establishing the price or
level of reimbursement for the relevant pharmaceutical or biological product, if required in the relevant country or jurisdiction prior to sale of such product in such country or jurisdiction. 

“Prior Company Counsel” has the meaning set forth in Section 9.12. 

“Regulatory Approval” means, with respect to a pharmaceutical or biological product and a country or jurisdiction, any
approval, registration, license or authorization that is required by the applicable Governmental Body to market and sell such pharmaceutical or biological product in such country or jurisdiction, including Pricing Approval. 

“Representative” means, with respect to any Person, any and all directors, officers, employees, consultants, financial
advisors, counsel, accountants and other agents of such Person. 
 “Right of First Refusal and Co-Sale Agreement”
means the right of first refusal and co-sale agreement by and among Parent, Seller and the other parties thereto, substantially in the form attached hereto as Exhibit F. 

  
 10 

 “ROFN Notice” has the meaning set forth in
Section 5.1. 
 “ROFN Term” means, with respect to any indication for a Lixivaptan Product
and any ROFN Territory identified in a ROFN Notice, the period of time beginning when Buyer receives an ROFN Notice from Chiesi, if any such notice is received within the time frame provided in Section 5.1, and expires at
11:59 p.m. Eastern Time on the day that is six (6) months from the date of the ROFN Notice. 
 “ROFN Territory”
has the meaning set forth in Section 5.1. 
 “Securities Act” means United States
Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder. 
 “Seller” has the
meaning set forth in the Preamble. 
 “Seller Indemnified Party” has the meaning set forth in
Section 8.3. 
 “Seller’s Knowledge” or any other similar knowledge qualification
means the actual knowledge of Michael Gordon, Amy Diebler, Alan Roberts, or Jonathan Williams. 
 “Selling Person”
means Buyer, each of its Affiliates and each (a) licensee, sublicensee, assignee or other grantee of rights from Buyer or any of its Affiliates or another Selling Person to develop, market or sell a Lixivaptan Product, (b) buyer,
transferee or assignee of any Lixivaptan Product or Intellectual Property that the Company or its Subsidiary owns, licenses, sublicenses or otherwise possesses legally enforceable rights to use, excluding, for the avoidance of doubt, any third party
distributor, wholesaler, group purchasing organization, pharmacy benefit manager or retail chain customer, (c) Person (other than Buyer and its Affiliates) with whom Buyer or any of its Affiliates directly or indirectly consummates a sale,
transfer or assignment to any third party who is not an Affiliate of Buyer of any material rights relating to any Lixivaptan Product, other than, for the avoidance of doubt, sales of a Lixivaptan Product subject to royalties paid to Buyer or its
Affiliates by the relevant Selling Person measured as a percentage of sales or (d) any Affiliate of the foregoing. 

“Series A Preferred Stock Purchase Agreement” means that certain Series A Preferred Stock Purchase Agreement, dated as
of the date hereof, by and among Parent, Index Ventures Life VI (Jersey), L.P., and other purchasers listed on the signature pages thereto. 

“Shares” has the meaning set forth in the Recitals. 

“Statutory Expiration Date” has the meaning set forth in Section 8.1. 

“Straddle Period” means any taxable period beginning on or before and ending after the Closing Date. 

“Subsidiary” of a Person means any corporation more than fifty percent (50%) of whose outstanding voting securities,
or any partnership, limited liability company, joint venture or other entity more than fifty percent (50%) of whose total equity interest, is directly or indirectly owned by such Person. 

  
 11 

 “Tax Attribute” has the meaning set forth in
Section 3.7(q). 
 “Taxes” means all taxes, duties, charges, fees, levies, registrations
or other assessment imposed by any Governmental Body or other taxing authority, including income, gross receipts, value-added, excise, withholding, personal property, real estate, escheat, environmental, sale, use, ad valorem, license, lease,
service, severance, stamp, transfer, payroll, employment, customs, duties, alternative, add-on minimum, estimated and franchise taxes (including any interest, penalties or additions attributable to or imposed on or with respect to any such
assessment) and including any liability for the payment of the foregoing obligations of another Person as a result of (a) being or having been a member of an affiliated, consolidated, combined, unitary or aggregate group of corporations;
(b) being or having been a party to any tax sharing agreement or any express or implied obligation to indemnify any Person; and (c) being or having been a transferee, successor, or otherwise assuming the obligations of another Person to
pay the foregoing amounts. 
 “Tax Returns” means any report, return, document or other filing (including estimated
reports, returns, schedules or statements) required to be supplied to any taxing authority or jurisdiction (supranational, national, federal, provincial, state, municipal or local, domestic or foreign) with respect to Taxes, as well as any amendment
thereof. 
 “Third Party Term Sheet” has the meaning set forth in Section 5.2. 

“Third Party Term Sheet Notice” has the meaning set forth in Section 5.2. 

“Transfer Taxes” has the meaning set forth in Section 5.10(d). 

“Transaction Documents” means this Agreement, the Financing Agreements, the Novation and Waiver Agreement and the
Warrant. 
 “Valid Claim” means (a) a claim of an issued and unexpired patent that has not been permanently
revoked or declared unenforceable or invalid by an unreversed and unappealable or unreversed and unappealed decision of a court or other Governmental Body or authority of competent jurisdiction and that is not admitted to be invalid or unenforceable
through reissue, disclaimer or otherwise (i.e., only to the extent the subject matter is disclaimed or is sought to be deleted or amended through reissue), or (b) a claim of a pending patent application, which claim has not been irretrievably
revoked, cancelled, withdrawn or abandoned, or finally disallowed without the possibility of appeal or refiling of such application (or which is not appealed or refiled within the time allowed for appeal); provided, however, that unless and until a
pending patent issues, “Valid Claim” will exclude any such pending claim in an application that has not been granted within five (5) years following the filing date for such application. 

“Voting Agreement” means the voting agreement by and among Parent, Seller and the other parties thereto, substantially
in the form attached hereto as Exhibit E. 

  
 12 

 “Warrant” has the meaning set forth in Section 2.2(c)(vi). 

ARTICLE II 
 PURCHASE
AND SALE OF THE SHARES 
 Section 2.1 Agreement to Sell and Purchase.
Subject to the terms and conditions set forth herein, at the Closing, Seller shall sell to Buyer, and Buyer shall purchase from Seller, the Shares for the consideration specified in this Article II. 

Section 2.2 Closing; Closing Deliveries. 

(a) The consummation of the transactions contemplated by this Agreement (the “Closing”) shall take place at the offices of
Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, L.L.P. at 10:00 a.m. on the date which is two (2) Business Days following the date on which all conditions to Closing set forth herein have been satisfied or waived in accordance
with their terms, or at such other place or at such other time as may be mutually agreed upon by the parties. The date on which the Closing occurs is referred to herein as the “Closing Date.” 

(b) At the Closing, Seller will deliver to Buyer: 

(i) a certificate of the Secretary or Assistant Secretary of Seller, dated as of the Closing Date, certifying (A) true and
complete copies and the effectiveness as of the Closing Date of (1) the resolutions of Seller’s Board of Directors unanimously approving the Transaction Documents and the transactions contemplated thereby, (2) the certificate of
incorporation of Seller and the Company and (3) the current bylaws of Seller and the Company and (B) the name, title, incumbency and signatures of the officers authorized to execute the Transaction Documents and any other documents
delivered in connection therewith to which Seller or an Affiliate of Seller is a party; 
 (ii) certificates of good standing
for Seller and the Company from the Secretary of State of the State of Delaware, dated as of a date no more than ten (10) Business Days prior to the Closing Date; 

(iii) written letters of resignation from each of the current officers, directors and managers, as applicable, of the Company
and its Subsidiary, in each case, effective on the Closing; 
 (iv) a stock certificate representing all of the Shares, free
and clear of all Encumbrances, duly endorsed in blank or accompanied by stock powers or other instruments of transfer duly executed in blank, with any required tax stamps affixed thereto; 

(v) the Financing Agreements, each duly executed by Seller; 

(vi) the Novation and Waiver Agreement, duly executed by Seller; 

  
 13 

 (vii) evidence of all consents, waivers and approvals from, notices to, or
novations with any third parties set forth on Section 2.2(b)(vii) of the Disclosure Letter; 

(viii) a duly executed IRS Form 8023 signed by Seller and comparable state or local Tax forms requested by Buyer (in a form
reasonably acceptable to Buyer) with respect to the purchase and sale of the Shares; and 
 (ix) a duly authorized and
executed certificate from the Company in accordance with Treasury Regulations Sections 1.1445-2(c). 
 (c) At the Closing, Buyer will deliver
to Seller: 
 (i) certificates of the Secretary or Assistant Secretary of each Parent Party, dated as of the Closing Date,
certifying (A) true and complete copies and the effectiveness as of the Closing Date of (1) the resolutions of each Parent Party’s Board of Directors unanimously approving the Transaction Documents to which such Parent Party is a
party and the transactions contemplated thereby, (2) the certificate of incorporation of each Parent Party and (3) the current bylaws of each Parent Party and (B) the name, title, incumbency and signatures of the officers authorized
to execute the Transaction Documents and any other documents delivered in connection therewith to which each such Parent Party or an Affiliate is a party; 

(ii) a certificate of good standing for each Parent Party from the Secretary of State of the State of Delaware, dated as of a
date no more than ten (10) Business Days prior to the Closing Date; 
 (iii) a certificate representing the shares of
Parent Common Stock to be issued to Seller at the Closing, free of all Encumbrances, duly executed, with any required tax stamps affixed thereto; 

(iv) the Financing Agreements, each duly executed by each Parent Party to which such Parent Party is a party and the other
parties thereto (other than Seller); 
 (v) the Novation and Waiver Agreement, duly executed by Parent and Shareholder
Representative Services LLC; and 
 (vi) a warrant, substantially in the form attached hereto as Exhibit C,
exercisable for shares of Parent Common Stock (the “Warrant”). 
 Section 2.3 Closing
Consideration. At the Closing, Buyer will deliver to Seller a stock certificate representing a number of shares of Parent Common Stock representing ten percent (10%) of Parent’s outstanding capitalization on a fully diluted, as-converted
basis (including shares issuable upon exercise or conversion of stock options, warrants or other convertible or exercisable securities and shares reserved for issuance under any equity compensation plan, including any employee stock ownership plan,
whether or not such shares are subject to existing stock option grants) as of the Closing Date, free and clear of all Encumbrances, duly endorsed in blank or accompanied by stock powers or other instruments of transfer duly executed in blank, with
any required tax stamps affixed thereto. 

  
 14 

 Section 2.4 Contingent Consideration. 

(a) In addition to the securities Buyer is required to deliver to Seller pursuant to Section 2.3, Buyer shall pay
cash consideration during the Contingent Consideration Period to Seller in accordance with the terms of this Section 2.4 (all such payments, together, the “Contingent Consideration Payments”). 

(b) Unless and until Buyer or any of its Affiliates has received Marketing Approval in the United States for any Lixivaptan Product for either
Indication, Buyer will make cash payments to Seller in amounts equal to the following percentages of total worldwide Net Sales during each calendar quarter during the Contingent Consideration Period: 

 

					
	 [####]
	  	[####]	 
	 [####]
	  	 	[	####] 
	 [####]
	  	 	[	####] 
	 [####]
	  	 	[	####] 

 (c) If Buyer or any of its Affiliates receives Marketing Approval in the United States for any Lixivaptan
Product for either Indication, Buyer will, with respect to any Net Sales following the receipt of such approval, make cash payments to Seller in amounts equal to the following percentages of total worldwide Net Sales during each calendar quarter
during the Contingent Consideration Period: 
  

					
	 [####]
	  	[####]	 
	 [####]
	  	 	[	####] 
	 [####]
	  	 	[	####] 
	 [####]
	  	 	[	####] 

 (d) Contingent Consideration Payments pursuant to this Section 2.4 shall exclude any
Net Sales generated by or on behalf of Seller in connection with any agreement to commercialize any Lixivaptan Product that is entered into following Seller’s exercise of its right of first negotiation or right of first refusal as provided in
Section 5.1 or Section 5.2 of this Agreement. 
 (e) [####] 

 

  
 15 

 Section 2.5 Overdue Payments. Any undisputed amounts
payable by Buyer or any of its Affiliates under this Agreement that are not paid when due shall bear interest from the due date until the date of payment thereof at [####] compounded monthly, provided that interest shall not accrue at a rate that
exceeds the maximum rate permitted by applicable Law. 
 Section 2.6 Reporting. 

(a) Whenever Buyer provides (i) written reports of the efforts of the Selling Persons to achieve each of the Diligence Objectives and its
progress with respect thereto under the Merger Agreement or the Pfizer License Agreement, (ii) notice of achievement of any of the Diligence Objectives, or (iii) any notices or other correspondence delivered under the Merger Agreement or
the Pfizer License Agreement, Buyer shall simultaneously provide a copy of such report to Seller. 
 (b) Until the end of the Contingent
Consideration Period, and thereafter as needed for any audit requested with respect to the Contingent Consideration Period (collectively, the “Audit Period”), Buyer shall, and shall cause its Affiliates to, keep such reasonably
complete and accurate books and records as may be necessary to ascertain (i) the efforts of Selling Persons to achieve the Diligence Objectives and (ii) the amounts of any payments owed hereunder. From and after the Closing, Buyer and its
Affiliates shall include in their agreements with Selling Persons (other than Buyer and its Affiliates) provisions requiring efforts consistent with those required under this Section 2.6(b) by Buyer and its Affiliates and
shall use commercially reasonable efforts to enforce such provisions. During the Audit Period, (x) for each calendar quarter in which Contingent Consideration Payments are due or with respect to which a Contingent Consideration Payment is
calculated, Buyer shall furnish Seller with a quarterly report of the Contingent Consideration Payment due during such quarter or calculated with respect to such quarter, and all relevant information required to calculate such Contingent
Consideration Payment, within sixty (60) days after the end of each calendar quarter; and (y) for each other calendar quarter, Buyer shall furnish Seller with a written notice that no Contingent Consideration Payment is due. Each report
pursuant to clause (x) shall include (A) Net Sales during such calendar quarter, broken out on a United States and rest-of-world basis, (B) the “gross to net” adjustments with respect to the calculation of Net Sales for such
calendar quarter; provided, however, that the requirement to provide such a “gross to net” adjustment shall not apply if it would require the disclosure of trade secrets, and (C) if any deduction is made to Net Sales during such
calendar quarter pursuant to clause (ii) of the definition of Net Sales, an explanation of how the share of the excise tax deducted pursuant to such clause (ii) was allocated to Lixivaptan Product sales. 

(c) Upon the written request of Seller, Buyer shall, and shall cause its Affiliates to, permit an independent public accountant (the
“Independent Auditor”) selected by Seller and reasonably satisfactory to Buyer, at Seller’s expense (subject to the reimbursement obligation described below in this paragraph, if applicable), to have reasonable access solely in
response to a request made with respect to the Audit Period, upon reasonable prior notice and during normal business hours, but no more than once during any calendar year, to inspect the records specified in Section 2.6(b)
the purpose of determining the accuracy of the reports described in Section 2.6(a) and Section 2.6(b). All results of any such audit shall be promptly

  
 16 

 
made available to Buyer. The cost of this examination and audit will be borne by the Seller unless the Independent Auditor concludes that any Contingent Consideration Payment based on the audit
is 105% or greater of the Contingent Consideration Payment reported by Buyer for such reporting period, in which case Buyer shall promptly reimburse Seller for the reasonable out-of- pocket costs of the audit and shall promptly pay Seller the
underreported portion of Contingent Consideration Payments that were not paid. If the Independent Auditor concludes that any Contingent Consideration Payment reported by Buyer is 105% or greater of the Contingent Consideration Payment based on the
audit for such reporting period, Seller shall promptly pay Buyer the overreported portion of Contingent Consideration Payments that were paid, less any amounts paid or payable by Seller in connection with the cost of the examination and audit. From
and after the Closing, Buyer shall (i) include in its agreements with Selling Persons (other than Buyer and its Affiliates) provisions providing Buyer with inspection rights consistent with those provided to Seller under this
Section 2.6(c), such inspections to be conducted by Buyer at its expense through an Independent Auditor selected by Buyer and reasonably satisfactory to Seller, (ii) use commercially reasonable efforts to enforce such
provisions, and (iii) promptly provide Seller with the results of any such inspection. 
 (d) Any nonpublic records, data, results,
reports and other information granted access to or disclosed pursuant to this Section 2.6 shall be treated in accordance with Section 5.8. 

(e) Notwithstanding anything to the contrary contained herein, the provisions of this Section 2.6 shall not preclude
Seller from pursuing indemnification for the breach of any representation, warranty or covenant pursuant to Article VIII or any matters otherwise indemnifiable thereunder. 

Section 2.7 Commercialization Diligence. 

(a) In furtherance and not in limitation of the obligations under the Merger Agreement and the Pfizer License Agreement, from and after the
Closing Date, Buyer shall, and shall cause its applicable Affiliates and Selling Persons to, use Commercially Reasonable Efforts to (i) obtain Marketing Approval for a Lixivaptan Product and commercialize a Lixivaptan Product in the United
States, and (ii) obtain Regulatory Approval for a Lixivaptan Product in Europe and commercialize a Lixivaptan Product in Europe (each of clause (i) and (ii), a “Diligence Objective”). As used in this
Section 2.7, “Commercially Reasonable Efforts” means (i) commercially reasonable efforts and resources that are of a substantially similar level of effort and resources that pharmaceutical companies of size
and resources comparable to those of Buyer and its Affiliates, collectively, typically exercise to accomplish a similar objective under similar circumstances with respect to drugs or drug candidates of similar commercial potential at a similar stage
in their development or product lifestyle to that of the Compound or the relevant Lixivaptan Product, taking into account all relevant factors at the time such efforts are expended, which may include, as applicable, efficacy, safety, approved
labeling, the competitiveness of alternative products in the marketplace, the patent and other proprietary position of the drugs or drug candidates, the likelihood of Marketing Approval or Regulatory Approval and the expected financial return,
profitability and commercial potential of the drugs or drug candidates, but disregarding any financial obligations that are owed to third parties under the Merger Agreement, or (ii) any greater obligations imposed by the Merger Agreement or the
Pfizer License Agreement to achieve the achieve the Diligence Objectives. 

  
 17 

 (b) Buyer will provide Seller with a summary written progress report discussing material
developments concerning any Lixivaptan Product at least once per calendar year, provided that in any case, the interval between such annual reports shall not exceed eighteen (18) months. 

(c) Any nonpublic records, data, results, reports and other information granted access to or disclosed pursuant to this
Section 2.7 shall be treated in accordance with Section 5.8. 

Section 2.8 Contingent Consideration Payments Not a Security. The Contingent Consideration Payments are
contingent payments subject to the terms and conditions of this Agreement and the parties do not intend for the contingent right of Seller to receive Contingent Consideration Payments to be a security. Accordingly, the contingent right of Seller to
receive Contingent Consideration Payments (i) shall not be represented by a certificate, (ii) does not represent an ownership interest in Buyer, Company or its Subsidiary, (iii) does not entitle a Seller to any rights common to
equityholders of Buyer, Company or its Subsidiary and (iv) is a non-interest bearing contingent payment. Seller acknowledges and agrees that (A) achieving the Diligence Objectives may not occur in spite of the exercise of Commercially
Reasonable Efforts by Buyer and its Affiliates and Selling Persons, (B) the amount of Net Sales, if any, that may be generated is uncertain, (C) that no Net Sales may be generated in any Contingent Consideration Period in spite of the
exercise of Commercially Reasonable Efforts by Buyer and its Affiliates and Selling Person, (D) there is no assurance that Seller will receive any Contingent Consideration Payments, (E) other than pursuant to the terms of this Agreement,
Buyer has not promised or projected any amounts to be received by Seller in respect of any Contingent Consideration Payments, and Seller has not relied on any statements or information provided by or on behalf of Buyer or its Affiliates or
Representatives with respect to the potential sales or value of the Compound or any Lixivaptan Product, and (F) Buyer and its Affiliates will have the exclusive right to operate the business of the Company and make decisions with respect to the
development and commercialization of any Lixivaptan Product or any component thereof, subject to complying with the diligence and other obligations under this Agreement. 

Section 2.9 Withholding Rights. Each of the Company, its Subsidiary and Buyer and any of their Affiliates
shall be entitled to deduct and withhold from any payment of Contingent Consideration Payments to any Person under this Agreement such amounts as it is then required under applicable Law to deduct and withhold for Tax purposes with respect to the
making of such payment and to otherwise comply with any other Tax withholding obligation then required under applicable Law with respect to the transactions contemplated by this Agreement. To the extent that amounts are so withheld or deducted, such
withheld amounts shall be treated for all purposes of this Agreement as having been paid to such Person in respect of which such deduction and withholding was made. Each of the Company, its Subsidiary and Buyer and any of their Affiliates, as the
case may be, shall pay over to the appropriate Governmental Body all amounts withheld under this Section 2.9. 

  
 18 

 ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF SELLER 

Except as may be set forth in the Disclosure Letter, Seller represents and warrants to the Parent Parties as of the date hereof as follows,
provided, however, that in no event shall any of the representations and warranties in this Article III apply to any time period, events, facts, matters or circumstances occurring prior to December 30, 2011: 

Section 3.1 Organization; Power and Authority; Capital Structure. 

(a) The Company is a corporation duly organized and validly existing and in good standing under the laws of the State of Delaware. The Company
is duly qualified to transact business and is in good standing in each jurisdiction where the character of its properties owned or held under lease or the nature of its activities makes such qualification necessary, except where the failure to be so
qualified or in good standing has not had and would not reasonably be expected to have a Material Adverse Effect. The Company has the corporate power and authority to carry on its business as currently conducted by it. 

(b) Seller is a corporation duly organized and validly existing and in good standing under the laws of the State of Delaware. The Seller has
the corporate power and authority to enter into and perform this Agreement and the other Transaction Documents and to carry out the transactions contemplated hereby and thereby. This Agreement has been duly executed and delivered by Seller, and this
Agreement constitutes a legal, valid and binding obligation of Seller enforceable against Seller in accordance with its terms. 
 (c) The
authorized capital stock of the Company consists of One Hundred (100) shares of Common Stock, all of which are issued and outstanding and constitute the Shares. All of the Shares have been duly authorized, are validly issued, fully paid and
non- assessable, and are owned of record and beneficially by Seller, free and clear of all Encumbrances. Upon consummation of the transactions contemplated by this Agreement, Buyer shall own all of the Shares, free and clear of all Encumbrances.
There are no outstanding subscriptions, options, warrants, commitments, preemptive rights, deferred compensation rights, agreements, arrangements or commitments of any kind to which the Company is a party relating to the issuance of, or outstanding
securities convertible into or exercisable or exchangeable for, any shares of capital stock of any class or other equity interests of the Company. There are no agreements to which the Company is a party with respect to the voting of any shares of
capital stock of the Company or which restrict the transfer of any such shares. There are no outstanding contractual obligations of the Company to repurchase, redeem or otherwise acquire any shares of its capital stock, other equity interests or any
other securities of the Company. All of the Shares were issued in compliance with applicable Laws. None of the Shares were issued in violation of any agreement, arrangement or commitment to which Seller or the Company is a party or is subject to or
in violation of any preemptive or similar rights of any Person. 

  
 19 

 Section 3.2 Subsidiaries. The Company’s sole
Subsidiary is listed in Section 3.2 of the Disclosure Letter. The Company is the owner of record and beneficially of all of the outstanding equity interests in its Subsidiary, free and clear of all Encumbrances. Neither the
Company nor its Subsidiary owns, directly or indirectly, any capital stock, equity or other ownership interest in any other Person. The Company’s Subsidiary is limited liability company duly organized, validly existing and in good standing
under the Laws of the State of Delaware and has all requisite limited liability company power and authority to own, operate or lease its properties and to carry on its business as currently conducted. Such Subsidiary is duly licensed or qualified to
do business as a foreign organization under the Laws of each jurisdiction listed in Section 3.2 of the Disclosure Letter and each other jurisdiction in which the character of its properties or in which the conduct of its
business makes such qualification necessary, except where the failure to be so licensed or qualified has not had and would not reasonably be expected to have a Material Adverse Effect. The copies of the organizational documents of the Company’s
Subsidiary, in each case as amended to date and made available to Buyer’s counsel, are complete and correct, and no amendments thereto are pending. 

Section 3.3 No Conflict; Consents. 

(a) The execution and delivery by Seller of this Agreement and the other Transaction Documents and the performance by Seller of the
transactions contemplated hereby and thereby in accordance with the terms hereof and thereof do not and will not (i) require the consent, notice or other action by any Person under, conflict with, result in a violation or breach of, constitute
a default or an event that, with or without notice or lapse of time or both, would constitute a material default under, result in the acceleration of or create in any party the right to accelerate, terminate, materially modify or cancel any Material
Contract to which Seller or the Company is a party or by which Seller or the Company is bound or to which any of their respective properties and assets are subject or any permit affecting the properties, assets or business of the Company,
(ii) conflict with, or result in any violation of, any provision of the certificate of formation, operating agreement, charter, bylaws or comparable instrument of Seller, the Company or the Company’s Subsidiary; or (iii) violate or
result in a violation of, or constitute a default under, any provision of any Law, or any order of, or any restriction imposed by, any Governmental Body, except in the case of clauses (i) and (iii), where the circumstances giving rise to any
failure of the representations and warranties contained in such clauses to be true and correct have not had, and would not reasonably be expected to have, individually or in the aggregate, a material impact on the Company or its Subsidiary. 

(b) No notice to, declaration or filing with or material consent or approval of any Governmental Body is required by or with respect to Seller,
the Company or the Company’s Subsidiary in connection with the execution and delivery by Seller of this Agreement or the other Transaction Documents or the consummation by Seller of the transactions contemplated hereby and thereby in accordance
with the terms hereof and thereof, except for such notices or approvals that have been obtained or made or that, if not obtained or made, would not reasonably be expected to have a Material Adverse Effect. 

Section 3.4 Investment Status. 

(a) Seller is acquiring the Parent Common Stock issuable under the Transaction Documents for investment and not with a view to, or for sale in
connection with, any distribution thereof in violation of the Securities Act or any other Law. Seller understands that Buyer has not registered the Parent Common Stock under the Securities Act, or under the Laws 

  
 20 

 
of any other jurisdiction (including the blue sky or securities laws of any state of the United States), that the Parent Common Stock constitutes “restricted securities” under the
Securities Act and that the Parent Common Stock constitutes an illiquid investment, and Seller agrees that it will not sell any of the Parent Common Stock unless the Parent Common Stock is registered under applicable securities Laws, or exempt
pursuant to exemptions from registration thereunder, and such sale otherwise complies with all applicable Laws of relevant jurisdictions. Seller further understands that, in view of the foregoing restrictions on dispositions of the Parent Common
Stock, Seller will be required to bear the economic risks of its ownership of the Parent Common Stock for an indefinite period of time. Seller has sufficient knowledge and experience in financial and business matters so as to be capable of
evaluating the merits and risk of its investment. 
 (b) Seller is acquiring the Parent Common Stock for its own account and not for the
account of any other Person and shall not sell the Parent Common Stock or enter into any other arrangement pursuant to which any other Person shall be entitled to a beneficial interest in the Shares without complying with all applicable requirements
of applicable Law. 
 (c) Seller is an “accredited investor” (as defined in Rule 501 under the Securities Act). 

Section 3.5 Material Liabilities; Operations. 

(a) As of the date hereof, neither the Company nor its Subsidiary has any Liabilities greater than $100,000 in the aggregate that are required
to be recorded on a balance sheet prepared in accordance with GAAP, except (i) those which are adequately reflected or reserved against in the latest balance sheet of the Company as of June 30, 2016, (ii) those set forth on
Section 3.5(a) of the Disclosure Letter or (iii) those arising under any Material Contract (which shall be the subject of Section 3.10). 

(b) Since February 4, 2014, the Company and its Subsidiary have operated only in the Ordinary Course of Business in all material respects. 

Section 3.6 Litigation. As of the date hereof and since March 31, 2014, neither the Company nor its
Subsidiary is (a) a party to (either as plaintiff or defendant) any litigation, action, suit, proceeding, claim, arbitration or investigation pending or, to Seller’s Knowledge, threatened in writing against the Company or its Subsidiary or
(b) subject to any outstanding writ, order, judgment, injunction or decree. 
 Section 3.7 Taxes. 

(a) The Company and its Subsidiary have timely filed or been included in all Tax Returns required to be filed by them or in which they are
required to be included with respect to Taxes for any period ending on or before the Closing Date, taking into account any extension of time to file granted to or obtained on behalf of the Company or its Subsidiary. 

(b) The Company and its Subsidiary have paid or caused to be paid or have accrued all Taxes due and owing by the Company and its Subsidiary.

  
 21 

 (c) Neither the IRS nor any other Governmental Body has asserted by written notice to the
Company or its Subsidiary as of the date hereof any deficiency or claim for any amount of additional Taxes that has not yet been resolved. 

(d) To Seller’s Knowledge, no audits or other administrative proceedings or court proceedings are pending or threatened with regard to any
Taxes or Tax Returns of the Company or its Subsidiary, and neither the Company nor its Subsidiary has received a written notice of any such audits or proceedings. 

(e) There are no liens for Taxes upon the assets of the Company or its Subsidiary, except for Permitted Encumbrances. Neither the Company nor
its Subsidiary has executed (or is subject to) any waiver currently in effect or comparable consents regarding the application of the statute of limitations for any Taxes or Tax Returns, and no request for an extension of time in which to file any
Tax Return is outstanding. 
 (f) No claim has ever been made by any Governmental Body in a jurisdiction where the Company or its Subsidiary
does not file Tax Returns that the Company or its Subsidiary is or may be subject to taxation by that jurisdiction or that the Company or its Subsidiary must file Tax Returns. 

(g) Each of the Company and its Subsidiary has withheld and paid over to the proper Governmental Body all Taxes required to have been withheld
and paid over, and complied with all information reporting and backup withholding requirements, including maintenance of required records with respect thereto. 

(h) Neither the Company nor its Subsidiary is or has been at any time, a party to a Tax sharing, Tax indemnity or Tax allocation Contract, and
neither the Company nor its Subsidiary has assumed any Tax Liability of any other Person under any Contract. 
 (i) Neither the Company nor
its Subsidiary will be required to include any item of income in, or exclude any item of deduction from, taxable income for any taxable period (or portion thereof) ending after the Closing Date as a result of any: (i) intercompany transactions
or excess loss accounts described in Treasury regulations under Section 1502 of the Code (or any similar provision of state, local, or foreign Tax Law); (ii) installment sale or open transaction disposition made on or prior to the Closing Date;
(iii) prepaid amount received on or prior to the Closing Date; (iv) application of Code Section 481 or Section 263A (or any corresponding or similar provision of state, local or foreign Tax Law) to transactions or events
occurring, or accounting methods employed, prior to or on the Closing Date; (v) “closing agreement,” as described in Code Section 7121 (or any corresponding or similar provision of state, local or foreign Tax Law), executed on or
prior to the Closing Date; or (vi) election under Section 108(i) of the Code 
 (j) Neither the Company nor its Subsidiary
(i) has been a member of an affiliated group of corporations filing Tax Returns on a combined, unitary or consolidated basis, other than the affiliated group of which the Seller is the common parent, (ii) owns, directly or indirectly, any
interest or investment (whether equity or debt) in any corporation, partnership, limited liability company, trust joint venture or other legal entity (other than with respect to the Company’s ownership of its Subsidiary), and (iii) has any
Liability for the Taxes of any Person or other taxpayer under Treasury Regulation Section 1.1502-6 (or any similar provision of any other Law), as a transferee or successor, or otherwise. 

  
 22 

 (k) Neither the Company nor its Subsidiary has been the “distributing corporation”
or “controlled corporation” (within the meaning of Section 355 of the Code) with respect to a transaction described in Section 355 of the Code within the five-year period ending as of the date of this Agreement. 

(l) Neither the Company nor its Subsidiary has a “permanent establishment” in a country outside of its country of
“residence,” as such terms are defined in any applicable Tax treaty or convention. 
 (m) No asset (including goodwill) of the
Company or its Subsidiary is, or immediately after the Closing will be, excluded from the definition of “amortizable section 197 tangible” by operation of Section 197(f)(9) of the Code and the Treasury Regulations thereunder. 

(n) Since its formation, the Subsidiary of the Company has been classified, for U.S. federal income tax purposes and state and local tax
purposes, as a disregarded entity within the meaning of Treasury Regulation Sections 301.7701-2 and -3. 
 (o) Seller is eligible to join
with Buyer in making the Section 338 Elections with respect to the acquisition of the Company pursuant to this Agreement. 
 (p) Neither
the Company nor its Subsidiary has consummated or participated in, and is not currently participating in, any transaction which was or is a “listed transaction” or a “reportable transaction” as defined in Section 6707A of
the Code or Treasury Regulation Section 1.6011-4(b) or any transaction requiring disclosure under a corresponding or similar provision of state, local or foreign Law. 

(q) The representations and warranties set forth in this Section 3.7 and in Section 3.8 and
Section 3.9(b) shall constitute the only representations and warranties by the Company with respect to Taxes, and, except with regard to the representation and warranty set forth in Section 3.7(m),
the Company makes no representation or warranty regarding the amount, value or condition of, or any limitations on, any Tax asset or attribute of the Company, including but not limited to net operating losses, (each, a “Tax
Attribute”), or the ability of Buyer or any of its Affiliates to utilize such Tax Attributes after the Closing. 

Section 3.8 Employees and Benefit Plans. 

(a) Since February 4, 2014, neither the Company nor its Subsidiary has had any employees or has sponsored, maintained or participated in any
“employee benefit plans,” as such term is defined in Section 3(3) of ERISA (the “Benefit Plans”) and does not have and would not reasonably be expected to have any liability with respect to any Benefit Plans. 

(b) The Company and its Subsidiary are in compliance in all material respects with all applicable federal, state and other Laws respecting
employment and employment practices, terms and conditions of employment and wages and hours. 

  
 23 

 (c) The representations and warranties set forth in this
Section 3.8 shall constitute the only representations and warranties by Seller with respect to Benefit Plans, employment matters and labor matters. 

Section 3.9 Real and Personal Property. 

(a) Neither the Company nor its Subsidiary owns or leases any real property. 

(b) Except with respect to leased personal property, the Company and its Subsidiary have good title to all of the tangible personal property
and assets, free and clear of any Encumbrances, except for (i) Taxes (other than Taxes that are being contested in good faith), fees, assessments or other governmental charges which are not delinquent or remain payable without penalty,
(ii) carriers’, warehousemen’s, mechanics’, landlords’, materialmen’s, repairmen’s or other similar encumbrances arising in the Ordinary Course of Business, (iii) encumbrances on any property acquired or held
by the Company or its Subsidiary in the Ordinary Course of Business, securing Indebtedness incurred or assumed for the purpose of financing (or refinancing) all or any part of the cost of acquiring such property, and (iv) encumbrances of record
or imperfections of title which are not material in character, amount or extent and which do not materially detract from the value or materially interfere with the present use of the assets subject thereto or affected thereby. 

Section 3.10 Contracts and Commitments. 

(a) Section 3.10(a) of the Disclosure Letter sets forth a complete and accurate list as of the date of this Agreement
of each Contract to which the Company or its Subsidiary is a party that (a) is material to the Company or its Subsidiary and (b) requires, in the aggregate, future payments by the Company or its Subsidiary in excess of $10,000 (excluding,
for purposes of this determination, future payments for indemnification, termination or other similar obligations for which the obligation to pay a sum certain has not accrued or otherwise become due and payable as of the date hereof) (each such
Contract that is required to be listed, a “Material Contract”). 
 (b) Each of the Material Contracts is the legal, valid
and binding obligation of the Company and/or its Subsidiary, enforceable against them in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium and similar Laws affecting
creditors’ rights generally and by general equitable principles (regardless of whether enforcement is sought in a proceeding at law or in equity). Except as expressly stated in Section 3.10 of the Disclosure Letter,
each of the Material Contracts is in full force and effect, and neither the Company nor its Subsidiary is in breach of, or default under, any such agreement, except where such breaches or defaults have not had, and would not reasonably be expected
to have, a Material Adverse Effect. 
 (c) The Pfizer License Agreement is in full force and effect, and from December 30, 2011 until
the date of this Agreement, neither the Company nor its Subsidiary has breached, or defaulted under, the Pfizer License Agreement. For the avoidance of doubt, the representations and warranties set forth in this
Section 3.10(c) shall not apply to any breach or default that originally occurred prior to December 30, 2011. From December 30, 2011 until the 

  
 24 

 
date of this Agreement, neither Seller, the Company nor any of their Affiliates has received any written notice or communication of breach or default under the Pfizer License Agreement, and, to
Seller’s Knowledge, neither Seller, the Company nor any of their Affiliates has received any oral notice or communication of breach or default under the Pfizer License Agreement. 

(d) Seller has made available to Buyer a complete and accurate copy of each written report, notice, correspondence or other communication
delivered by or to Seller pursuant to the Merger Agreement and Pfizer License Agreement. 
 Section 3.11
Intellectual Property. 
 (a) Section 3.11(a) of the Disclosure Letter sets forth a complete and
accurate list of all patents, registered trademarks and service marks, registered copyrights, domain names and applications for any of the foregoing, in each case owned by the Company or its Subsidiary and material to the conduct of the business of
the Company and its Subsidiary, taken as a whole, as currently conducted. Since February 4, 2014, neither the Company nor its Subsidiary have sold, pledged, assigned, conveyed or otherwise transferred any Intellectual Property related to the conduct
of the Company’s business or otherwise used in the development of the Licensed Compound. 
 (b) Since February 4, 2014, neither the
Company nor its Subsidiary has received any writing from any Person alleging that any Lixivaptan Product infringes, or would infringe, any patent or other proprietary right of any other Person. 

(c) As of the date hereof, neither the Company nor its Subsidiary is a party to any suit, action or proceeding which involves a claim of
material infringement, unauthorized use or violation by the Company or its Subsidiary of any third party Intellectual Property, or which challenges in any material respect the ownership, use, validity or enforceability of any Intellectual Property
owned or used by the Company or its Subsidiary and, to Seller’s Knowledge, no such suit, action or proceeding is threatened in writing. 

(d) Other than licenses, sublicenses and other agreements entered into by the Company or its Subsidiary in the Ordinary Course of Business,
Section 3.11(d) of the Disclosure Letter sets forth a complete and accurate list of all material licenses, sublicenses and other agreements to which the Company and/or its Subsidiary are a party (i) granting any other
Person the exclusive right to use any Intellectual Property owned by the Company and/or its Subsidiary or (ii) pursuant to which the Company or its Subsidiary are authorized to use any third party Intellectual Property, which is incorporated in
or forms a part of any services rendered or products offered by the Company or its Subsidiary or which is otherwise used by the Company or its Subsidiary in the business of the Company or such Subsidiary as currently conducted, other than
commercially available software. 
 Section 3.12 Compliance with Laws. Each of the Company and its
Subsidiary is in compliance in all material respects with any Law of a Governmental Body that is applicable to the Company or its Subsidiary or by which any property or asset of the Company or its Subsidiary is bound. Notwithstanding the foregoing,
the representations and warranties in this Section 3.12 do not apply to matters covered by Section 3.7 (Taxes), Section 3.8 (Employees and Benefit Plans) or
Section 3.13 (Environmental Matters), which matters are covered exclusively in such Sections. 

  
 25 

 Section 3.13 Environmental Matters. Except as has not had
or would not reasonably be expected to have a Material Adverse Effect: 
 (a) The Company and its Subsidiary are in compliance with all
Environmental Laws applicable to their operations. 
 (b) Since February 4, 2014, neither the Company nor its Subsidiary has
(i) received notice under the citizen suit provisions of any Environmental Law; (ii) received any written request for information, notice, demand letter, administrative inquiry or written complaint or claim under any Environmental Law;
(iii) been subject to or, to Seller’s Knowledge, threatened in writing with any governmental or citizen enforcement action with respect to any Environmental Law; or (iv) received written notice of any unsatisfied liability under any
Environmental Law. 
 (c) The representations and warranties set forth in this Section 3.13 shall constitute the
only representations and warranties by the Company with respect to environmental matters. 
 Section 3.14 No
Brokers. Neither the Company nor its Subsidiary has entered into any Contract, arrangement or understanding with any Person or firm that may result in the obligation of such entity to pay any finder’s fees, brokerage or agent’s
commissions or other like payments in connection with the negotiations leading to this Agreement. 
 Section 3.15
Regulatory Matters. Seller has made available to the Buyer as of the date of this Agreement a complete and correct copy of each New Drug Application and each Investigational New Drug Application submitted to the FDA with respect to the
Compound, including all supplements and amendments thereto. 
 Section 3.16 Inventory. Section 3.16 of the
Disclosure Letter sets forth a complete and accurate list of all inventory of the Compound (the “Inventory”) owned by the Company or its Subsidiary as reported by the Company’s third-party logistics provider as of the date set
forth in Section 3.16 of the Disclosure Schedule. The Inventory shall include the existing supply of the Compound, which Seller shall deliver, or cause to be delivered, to Buyer at or promptly following Closing or upon the request of Buyer, in
each case at Buyer’s sole cost and expense. All Inventory is owned by the Company free and clear of all Encumbrances except for Permitted Encumbrances, and no Inventory is held on a consignment basis. 

Section 3.17 Disclaimer of Other Representations and Warranties. 

(a) NONE OF SELLER, ANY OF ITS DIRECT OR INDIRECT SUBSIDIARIES OR AFFILIATES OR ANY OF THEIR RESPECTIVE REPRESENTATIVES, MEMBERS, MANAGERS OR
STOCKHOLDERS HAS MADE ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, OF ANY NATURE WHATSOEVER RELATING TO THE COMPANY OR ITS SUBSIDIARY OR THE BUSINESS OF THE COMPANY OR ITS SUBSIDIARY, OTHER THAN THOSE REPRESENTATIONS AND WARRANTIES
EXPRESSLY SET FORTH IN THIS ARTICLE III. 

  
 26 

 (b) Without limiting the generality of the foregoing, none of Seller or its Affiliates or
any of their respective Representatives, members, managers, or stockholders has made, and shall not be deemed to have made, any representations or warranties in the materials relating to the business of the Company or its Subsidiary made available
to Buyer, including due diligence or “data room” materials, or in any presentation concerning the business of the Company and its Subsidiary by management and/or owners of any of Seller, the Company or others in connection with the
transactions contemplated hereby or otherwise, and no statement contained in any of such materials or made in any such presentation shall be deemed a representation or warranty hereunder or deemed to be relied upon by Buyer or any of its Affiliates
in executing, delivering and performing this Agreement and the transactions contemplated hereby. It is understood that any cost estimates, projections or other predictions, data, financial information, memoranda or offering materials or
presentations, including any offering memorandum or similar materials made available by any of Seller, the Company, their direct or indirect Subsidiaries or owners or any of the Representatives, members, managers, stockholders or Affiliates of any
of them, including any information relating to Tax matters, are not and shall not be deemed to be or to include representations or warranties of any of the foregoing or any other Person. 

Section 3.18 Non-Reliance. Seller acknowledges and agrees that no Marketing Approval has been received; there
can be no guarantee that any Marketing Approval will ever be received; Seller is entering into this Agreement and the other Transaction Documents with the full understanding that Buyer and the Company may be unable to obtain Marketing Approval or
commercialize any Lixivaptan Product; and neither Buyer nor any other Person on Buyer’s behalf has made any representation or warranty regarding any such matters to Seller or its Representatives. Except for the specific representations and
warranties expressly made by Buyer in Article IV of this Agreement, Seller specifically disclaims that it is relying upon or has relied upon any other representations or warranties that may have been made by Buyer or any other Person, and
acknowledges and agrees that Buyer has specifically disclaimed and does hereby specifically disclaim any such other representation or warranty made by Buyer or any other Person (provided, however, that this disclaimer does not extend to any
representations or warranties set forth in the other Transaction Documents). 
 ARTICLE IV 

REPRESENTATIONS AND WARRANTIES OF PARENT PARTIES 

The Parent Parties hereby represent and warrant, jointly and severally, to Seller as of the date hereof as follows: 

Section 4.1 Organization; Power and Authority; Capitalization. 

(a) Each Parent Party is duly organized and is validly existing and in good standing under the laws of the State of Delaware. Each Parent Party
is duly qualified to transact business and is in good standing in each jurisdiction where the character of its properties owned 

  
 27 

 
or held under lease or the nature of its activities makes such qualification necessary, except where the failure to be so qualified or in good standing has not had and would not reasonably be
expected to have a material adverse effect on each Parent Party’s ability to consummate the transactions contemplated hereby and to perform each Parent Party’s obligations under the Transaction Documents. Each Parent Party has the
corporate power and authority to carry on its business as currently conducted by it, to enter into and perform this Agreement and to carry out the transactions contemplated hereby. 

(b) The authorized capital stock of Buyer consists, immediately prior to Closing and immediately following the Closing, of 1,000 shares of
Common Stock, of which all are issued and outstanding and owned by Parent and zero shares of Preferred Stock. The authorized capital stock of Parent consists, immediately prior to Closing, of 1,000 shares of Common Stock, of which all are issued and
outstanding and owned by Lorenzo Pellegrini, and zero shares of Preferred Stock. 
 (c) The authorized capital stock of Parent immediately
following the Closing will consist of (i) Eleven Million (11,000,000) shares of Common Stock, Three Million Two Hundred Sixty One Thousand Three Hundred Eighty Eight (3,261,388) of which are issued to Lorenzo Pellegrini and Nine Hundred
Eighteen Thousand Nine Hundred Fifty Two (918,952) of which will be issued to Seller and (ii) Five Million Nine Thousand One Hundred Eighty Five (5,009,185) shares of Series A Preferred Stock, of which Two Million Five Hundred Nine Thousand One
Hundred Eighty Five (2,509,185) will be issued to Index Ventures Life VI (Jersey), L.P. and certain of its affiliates. All issued and outstanding shares of Parent’s Common Stock have been duly authorized and are validly issued, fully paid and
nonassessable, and, when issued in accordance with the Transaction Documents, the Parent Common Stock and all other shares of capital stock of Parent issued to Seller pursuant to the terms of the Transaction Documents will have been duly authorized,
and will be validly issued, fully paid and nonassessable. Except as provided in the Financing Agreements, there are no outstanding subscriptions, options, warrants, commitments, preemptive rights, deferred compensation rights, agreements,
arrangements or commitments of any kind to which Parent is a party relating to the issuance of, or outstanding securities convertible into or exercisable or exchangeable for, any shares of capital stock of any class or other equity interests of
Parent. Except as provided in the Financing Agreements, there are no agreements to which Parent is a party with respect to the voting of any shares of capital stock of Parent or which restrict the transfer of any such shares. There are no
outstanding contractual obligations of Parent to repurchase, redeem or otherwise acquire any shares of its capital stock, other equity interests or any other securities of Parent. 

Section 4.2 Subsidiaries. Buyer does not have any Subsidiaries. Buyer is the only subsidiary of Parent. 

Section 4.3 No Conflict; Consents. 

(a) The execution and delivery by each Parent Party of this Agreement and the Transaction Documents and the performance by each Parent Party of
the transactions contemplated hereby and thereby in accordance with the terms hereof and thereof do not and will not (i) require the consent, notice or other action by any Person under, conflict with, result in a violation or breach of,
constitute a default or an event that, with or without notice or lapse of 

  
 28 

 
time or both, would constitute a default under, result in the acceleration of or create in any party the right to accelerate, terminate, modify or cancel any Contract to which such Parent Party
is a party or by which any of its properties or assets is bound, (ii) conflict with, or result in any violation of, any provision of the certificate of incorporation or bylaws of either Parent Party or (iii) violate or result in a
violation of, or constitute a default under, any provision of any Law, or any order of, or restriction imposed by, any Governmental Body, except, in the case of clauses (i) and (iii), for any such conflicts, defaults or violations that have not
had, and would not reasonably be expected to have, a material adverse effect on either Parent Party’s ability to consummate the transactions contemplated hereby and to perform either Parent Party’s obligations under the Transaction
Documents. 
 (b) No notice to, declaration or filing with, or material consent or approval of any Governmental Body is required by or with
respect to either Parent Party in connection with the execution and delivery by either Parent Party of this Agreement or the other Transaction Documents to which such Parent Party is a party, or the consummation by either Parent Party of the
transactions contemplated hereby or thereby in accordance with the terms hereof and thereof, except for such notices or approvals that have been obtained or made or that, if not obtained or made, would not reasonably be expected to have a material
adverse effect on either Parent Party’s ability to consummate the transactions contemplated hereby and thereby. 

Section 4.4 Investment Status. 

(a) Buyer is acquiring the Shares for investment and not with a view to, or for sale in connection with, any distribution thereof in violation
of the Securities Act or any other Law. Buyer understands that Seller has not registered the Shares under the Securities Act, or under the Laws of any other jurisdiction (including the blue sky or securities laws of any state of the United States),
that the Shares constitute “restricted securities” under the Securities Act and that the Shares constitute an illiquid investment, and Buyer agrees that it will not sell any of the Shares unless the Shares are registered under applicable
securities Laws, or exempt pursuant to exemptions from registration thereunder, and such sale otherwise complies with all applicable Laws of relevant jurisdictions. Buyer further understands that, in view of the foregoing restrictions on
dispositions of the Shares, Buyer will be required to bear the economic risks of its ownership of the Shares for an indefinite period of time. Buyer has sufficient knowledge and experience in financial and business matters so as to be capable of
evaluating the merits and risk of its investment. 
 (b) Buyer is acquiring the Shares for its own account and not for the account of any
other Person and shall not sell the Shares or enter into any other arrangement pursuant to which any other Person shall be entitled to a beneficial interest in the Shares without complying with all applicable requirements of applicable Law. 

(c) Buyer is an “accredited investor” (as defined in Rule 501 under the Securities Act). 

Section 4.5 Litigation. As of the date hereof, neither Parent Party is (a) a party to (either as
plaintiff or defendant) any material litigation, action, suit, proceeding, claim, arbitration or investigation pending or, to Parent’s Knowledge, threatened in writing, against either Parent Party or (b) subject to any material outstanding
writ, order, judgment, injunction or decree. 

  
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 Section 4.6 Taxes. 

(a) Each Parent Party has timely filed or been included in all material Tax Returns required to be filed by it or in which it is required to be
included with respect to material Taxes for any period ending on or before the Closing Date, taking into account any extension of time to file granted to or obtained on behalf of it. 

(b) Each Parent Party has paid or caused to be paid or have accrued all material Taxes due and owing by it. 

(c) Neither the IRS nor any other Governmental Body has asserted by written notice to either Parent Party as of the date hereof any deficiency
or claim for any amount of additional Taxes that has not yet been resolved. 
 (d) To Parent’s Knowledge, no audits or other
administrative proceedings or court proceedings are pending with regard to any material Taxes or material Tax Returns of either Parent Party, and neither Parent Party has received a written notice of any such audits or proceedings. 

(e) There are no liens for Taxes upon the assets of either Parent Party, except for liens relating to current Taxes not yet due and payable or
which are being contested in good faith. 
 (f) The representations and warranties set forth in this
Section 4.6 shall constitute the only representations and warranties by each Parent Party with respect to Taxes. 

Section 4.7 Compliance with Laws. Each Parent Party is and has been in compliance in all material respects
with any Law of a Governmental Body that is applicable to it or by which any of its property or assets is bound. Notwithstanding the foregoing, the representations and warranties in this Section 4.7 do not apply to matters
covered by Section 4.6 (Taxes), which matters are covered exclusively in such Section. 

Section 4.8 No Brokers. Neither Parent Party has entered into any Contract, arrangement or understanding with
any Person or firm that may result in the obligation of such entity to pay any finder’s fees, brokerage or agent’s commissions or other like payments in connection with the negotiations leading to this Agreement. 

Section 4.9 No Liabilities. Immediately following Closing, neither Parent Party will have any Indebtedness.

 Section 4.10 Financial and Operational Capability. On or prior to the Closing Date, Parent will have
received at least [####] and the Series A Preferred Stock Purchase Agreement provides for a second tranche of an additional [####] which amounts will be reserved primarily for purposes of commercializing the Compound, and will have delivered to
Seller true and complete copies of executed investment documents, which have been duly authorized by Parent’s Board of Directors. 

  
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 Section 4.11 Non-Reliance. Each Parent Party is an informed
and sophisticated purchaser and has engaged expert advisors, experienced in the evaluation and purchase of property and assets such as the Company, its Subsidiary and the Shares as contemplated hereunder. Each Parent Party acknowledges and agrees
that the Company, its Subsidiary and the Shares are sold on an “as is where is” basis, and Each Parent Party agrees to accept the Company, its Subsidiary and the Shares in the condition they are in on the Closing Date and without reliance
upon any express or implied representations or warranties of any nature made by or on behalf of or imputed to Seller, except as expressly set forth in Article III. Without limiting the generality of the foregoing, each Parent Party
acknowledges and agrees that Seller makes no representation or warranty with respect to (a) any projections, estimates or budgets delivered to or made available to either Parent Party or its Representatives with respect to the Company, its
Subsidiary or their respective property and assets or (b) except as expressly set forth in this Agreement, any other information or documents made available to either Parent Party or its Representatives with respect to the Company or its
Subsidiary. Each Parent Party further acknowledges and agrees that no Marketing Approval has been received; there can be no guarantee that any Marketing Approval will ever be received; each Parent Party is entering into this Agreement and the other
Transaction Documents with the full understanding that Parent, Buyer and their respective Affiliates may be unable to obtain Marketing Approval or commercialize any Lixivaptan Product; and neither Seller nor any other Person on Seller’s behalf
has made any representation or warranty regarding any such matters to either Parent Party. Except for the specific representations and warranties expressly made by Seller in Article III of this Agreement, each Parent Party specifically
disclaims that it is relying upon or has relied upon any other representations or warranties that may have been made by Seller or any other Person, and acknowledges and agrees that Seller has specifically disclaimed and does hereby specifically
disclaim any such other representation or warranty made by Seller or any other Person. 
 Section 4.12
Disclaimer of Other Representations and Warranties. 
 (a) NONE OF BUYER, PARENT, ANY OF THE DIRECT OR INDIRECT SUBSIDIARIES OR
AFFILIATES OF ANY OF THE FOREGOING OR ANY OF THE RESPECTIVE REPRESENTATIVES, MEMBERS, MANAGERS, OR STOCKHOLDERS OF ANY OF THE FOREGOING HAS MADE ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, OF ANY NATURE WHATSOEVER RELATING TO EITHER
PARENT PARTY OR THE BUSINESS OF EITHER PARENT PARTY AS CURRENTLY CONDUCTED OR PROPOSED TO BE CONDUCTED, OTHER THAN THOSE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN THIS ARTICLE IV. 

(b) Without limiting the generality of the foregoing, none of Buyer, Parent or any their Affiliates or any of the respective Representatives,
members, managers or stockholders of the foregoing has made, and shall not be deemed to have made, any representations or warranties in the materials relating to the business of the Parent Parties made available to Seller, including due diligence or
“data room” materials, or in any presentation concerning the business of the Parent Parties by management and/or owners of any of either Parent Party or others in 

  
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connection with the transactions contemplated hereby or otherwise, and no statement contained in any of such materials or made in any such presentation shall be deemed a representation or
warranty hereunder or deemed to be relied upon by Seller or any of its Affiliates in executing, delivering and performing this Agreement and the transactions contemplated hereby. It is understood that any cost estimates, projections or other
predictions, data, financial information, memoranda or offering materials or presentations, including any offering memorandum or similar materials made available by any Parent Party, any direct or indirect Subsidiaries or owners of any of the
foregoing or any of the Representatives, members, managers, stockholders or Affiliates of any of the foregoing, including any information relating to Tax matters, are not and shall not be deemed to be or to include representations or warranties of
any of the foregoing or any other Person. 
 ARTICLE V 

COVENANTS 

Section 5.1 Right of First Negotiation. Parent will provide Seller a written notice (an “Initial
Notice”) of each Marketing Approval (or a similar or an equivalent approval) by the European Medicines Agency or the Brazilian Health Surveillance Agency (or a similar, equivalent or successor Governmental Body) for a particular indication
of any Lixivaptan Product (each such particular indication (an “Approved Indication”)) in any portion of Europe, Brazil, Russia or the Commonwealth of Independent States (the “ROFN Territory”) within ten
(10) days of receipt of such approval. Parent Parties hereby grant Seller and any Affiliates designated by Seller for such purpose (together, “Chiesi”) a right of first negotiation to negotiate exclusive rights to commercialize
any and all Lixivaptan Products for the Approved Indication in the ROFN Territory identified in an Initial Notice, and Chiesi must provide Parent with written notice of its exercise of such right of first negotiation (a “ROFN
Notice”) within thirty (30) days of the date on which it receives an Initial Notice; provided, however, that if Chiesi does not provide Parent with a ROFN Notice within such thirty (30) day period,
Section 5.2 shall be void and of no further force and effect with respect to the Lixivaptan Product Approved Indication for the ROFN Territory. During the applicable ROFN Term, Chiesi and Parent will promptly and
diligently, on an exclusive and good faith basis, negotiate commercially reasonable terms for an exclusive commercial agreement for the Lixivaptan Product Approved Indication in the ROFN Territory. Prior to the expiration of the applicable ROFN
Term, and subject to the terms of Section 5.2, Parent, directly or indirectly, including through its Affiliates and their respective Representatives, will not negotiate or enter into any commercialization or similar
agreement with any third party with respect to any Lixivaptan Product for the ROFN Territory. If Chiesi does not timely deliver a ROFN Notice, Parent may negotiate and enter into definitive agreements with a third party (“Third Party
Partner”), and Chiesi will have no further rights with respect to the Lixivaptan Product Approved Indication for the ROFN Territory, but shall retain a right of first negotiation with respect to any other Lixivaptan Product indication
except to the extent that the definitive agreement(s) with such Third Party Partner obligate Parent to provide such Third Party Partner with a right of first negotiation, right of first refusal or similar rights in such ROFN Territory with respect
to any additional Approved Indication, in which case the right of first negotiation and right of first refusal of Chiesi pursuant to this Section 5.1 and Section 5.2 shall be subordinated in all
respects to such right of first negotiation, right of first refusal or similar rights of such Third Party Partner. 

  
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 Section 5.2 Right of First Refusal. 1 If the ROFN Term has expired with respect to any Initial Notice, then the Parent Parties will have the right to negotiate with a third party with respect to the Lixivaptan Product Approved Indication
for the ROFN Territory. Promptly, but in no event later than five (5) Business Days after entering into any agreement, term sheet, understanding, arrangement or other Contract with respect to key terms with the third party relating to the
commercialization of the Lixivaptan Product for the Approved Indication for the ROFN Territory (a “Third Party Term Sheet”), Parent shall provide, to the extent the Parent Parties are not precluded from disclosing such Third Party
Term Sheet, a copy of such Third Party Term Sheet to Chiesi (a “Third Party Term Sheet Notice”) at the address specified in the ROFN Notice for any Chiesi entity that is not Seller. If the Parent Parties are not permitted to provide
Chiesi with the Third Party Term Sheet as provided for in the foregoing sentence, Parent shall provide Chiesi with notice of receipt of such Third Party Term Sheet. Chiesi shall provide written notice to Parent within thirty (30) days of
receipt of a Third Party Term Sheet Notice indicating whether it wants to negotiate and enter into a definitive agreement reflecting the terms set forth in the Third Party Term Sheet. If Chiesi indicates that it does want to do so, the Parent
Parties and Chiesi will have one hundred and twenty (120) days, as such period may be extended by mutual agreement of the parties, from the date that Chiesi received the Third Party Term Sheet Notice to negotiate in good faith definitive
agreements reflecting the terms set forth in the Third Party Term Sheet. If the Parent Parties and Chiesi have not entered into such definitive agreements by the expiration of such period, the Parent Parties may negotiate and enter into definitive
agreements reflecting the terms set forth in the Third Party Term Sheet with the applicable third party. 

Section 5.3 Interim Operations of the Company. Except with the prior written consent of Parent (which shall
not be unreasonably withheld, conditioned or delayed), as specifically contemplated by this Agreement or as set forth in Section 5.3 of the Disclosure Letter, Seller hereby covenants to the Parent Parties that, during the
period commencing on the date of this Agreement and ending on the earlier to occur of the Closing Date or the termination of this Agreement in accordance with Article VII, (a) the business of the Company and its Subsidiary shall be
conducted only in the Ordinary Course of Business and (b) Seller shall use commercially reasonable efforts to preserve intact the present business organization of the Company and its Subsidiary, not sell any assets of the Company or its
Subsidiary and preserve satisfactory relationships with customers, suppliers, distributors and others having business dealings with them. 

Section 5.4 Access to Information. During the period commencing on the date of this Agreement and ending on
the earlier to occur of the Closing Date or the termination of this Agreement in accordance with Article VII, each party shall, and shall cause each of its respective Affiliates and Representatives to, grant or cause to be granted to the
other parties and their respective Representatives reasonable access to and the right to inspect the properties, assets, books and records, Contracts and other documents and data related to the Company, Parent and Buyer for the purposes of
(a) any financial reporting or Tax matters (including any financial and Tax audits, Tax contests, Tax examinations, preparation for any Tax returns or financial records); (b) any regulatory reporting matters; (c) any investigation being
conducted by any Governmental Body involving the Compound, any Lixivaptan Product or Seller’s business; (d) any claims or 

 

	1 	 Note to Buyer: To be discussed whether these references should be to “Parent.”

  
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litigation (other than between the parties) involving the Compound, any Lixivaptan Product or Seller’s business; (e) any reports concerning Diligence Objectives or the amounts of any
payments owed to any Contingent Consideration Payees or other Persons under the Merger Agreement or the Pfizer License Agreement; or (f) any similar or related matter. Any such inspection shall be conducted during normal business hours upon
reasonable advance notice and shall be conducted under the supervision of the disclosing party’s personnel and in such a manner as not to interfere with the disclosing party’s normal operations. Each party may restrict access to such
records and documents to the extent that disclosure of any such information would (i) cause significant competitive harm to such party if the transactions contemplated by this Agreement were not consummated, (ii) jeopardize any
attorney-client or other privilege or (iii) contravene any applicable Law, fiduciary duty or binding agreement. The Parent Parties acknowledge and agree that any access or information provided shall be subject to the terms of the
Confidentiality Agreements. 
 Section 5.5 Commercially Reasonable Efforts. The parties shall perform all
of their respective obligations hereunder and otherwise shall use commercially reasonable efforts to take or cause to be taken all actions, to do or cause to be done, and to assist and cooperate with the other parties hereto in doing, all things
necessary, proper or advisable to consummate and make effective, at the earliest possible date, the transactions contemplated hereby. 

Section 5.6 Publicity. Unless otherwise required by applicable Laws, based upon
the reasonable advice of counsel, no party to this Agreement shall make any public announcements in respect of this Agreement or the transactions contemplated hereby or otherwise communicate with any news media without the prior written consent of
the other party (which consent shall not be unreasonably withheld or delayed). Prior to any party making a public announcement in respect of this Agreement or the transactions contemplated hereby, the other party shall have the right to review and
comment on the substance of the announcement. The parties shall cooperate as to the timing and contents of any announcement. 

Section 5.7 Technology Transfer and Assistance. 

(a) Seller shall, or shall cause its Affiliates to, use commercially reasonable efforts to transfer within ninety (90) days following the
Closing Date (such ninety (90) day period, the “Know-How Transfer Period”) to Buyer a tangible or electronic copy of all Know- How owned by Seller, the Company or the Company’s Subsidiary that is primarily related to any
Lixivaptan Product (“Company Know-How”). 
 (b) Seller shall make reasonably available to Buyer in person at Seller’s
facilities or via telephone conference at no cost to Buyer during the period commencing at the conclusion of the Know-How Transfer Period and continuing until the expiration of the twelve (12) month period following the Know-How Transfer Period
for up to twenty (20) man-hours, Seller’s key employees with respect to the Compound for purposes of reasonable consultation with Buyer regarding the development of the Compound, and to enable Buyer to use the Company Know-How in
connection with Compound. 

  
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 (c) NO WARRANTIES ARE GIVEN WITH RESPECT TO SELLER’S ASSISTANCE OR SUPPORT TO BUYER
UNDER THIS SECTION 5.7, WHETHER ORAL OR WRITTEN, EXPRESS OR IMPLIED, OR IMPOSED BY STATUTE OR OTHERWISE, INCLUDING WITHOUT LIMITATION ANY WARRANTY AGAINST INFRINGEMENT AND IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE. NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, SELLER SHALL NOT BE RESPONSIBLE TO BUYER FOR ANY LOSSES ARISING FROM OR RELATING TO SELLER’S ASSISTANCE OR SUPPORT TO BUYER UNDER THIS SECTION 5.7 EXCEPT TO THE EXTENT SUCH LOSSES
ARISE FROM, OR ARE CAUSED BY, THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SELLER, ITS EMPLOYEES, AGENTS OR CONTRACTORS. IN NO EVENT WILL SELLER BE LIABLE FOR ANY LOST PROFITS, LOST REVENUES, OR SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL, OR
PUNITIVE DAMAGES ARISING OUT OF OR IN CONNECTION WITH SELLER’S ASSISTANCE OR SUPPORT UNDER THIS SECTION 5.7. 

Section 5.8 Confidentiality. Seller and Parent acknowledge that Seller and Parent have previously executed
that certain confidentiality agreement, dated November 1, 2015 (the “Parent Confidentiality Agreement”) and Seller and Lorenzo Pellegrini have previously executed that certain confidentiality agreement, dated May 18, 2015
(together with the Parent Confidentiality Agreement, the “Confidentiality Agreements”). Seller and the Parent Parties acknowledge that after the Closing Date, Lorenzo Pellegrini, Parent and each of their respective Affiliates shall
not have any further obligations under the Confidentiality Agreements to the extent the confidential information relates to the Company or the Company’s assets, business or operations, provided, however, that any confidential information
otherwise related to Seller or any Affiliates of Seller disclosed to Lorenzo Pellegrini or Parent under the Confidentiality Agreements shall remain confidential in accordance with the terms of the Confidentiality Agreements and that Lorenzo
Pellegrini and the Parent Parties will maintain in confidence, and will cause their respective Affiliates and Representatives to maintain in confidence, and not use any such confidential information. From and after the Closing, Seller will maintain
in confidence, and will cause its respective Affiliates and its Representatives to maintain in confidence, and not use any confidential information of the Company or its Subsidiary, unless (a) such information is already known to such party or
to others not bound by a duty of confidentiality or such information becomes publicly available through no fault of such party or (b) the furnishing or use of such information is required by or necessary or appropriate in connection with an
applicable Laws. If the Parent Parties or Seller or any of their respective Affiliates or their respective Representatives are compelled to disclose any information by judicial or administrative process or by other requirements of Law, such party
shall promptly notify the other in writing and shall disclose only that portion of such information which is legally required to be disclosed, provided that such party shall use reasonable best commercial efforts to obtain an appropriate protective
order or other reasonable assurance that confidential treatment will be accorded such information. 
 Section 5.9
RESERVED. 
 Section 5.10 Tax Matters. 

(a) Preparation and Filing of Tax Returns. 

  
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 (i) Seller shall timely prepare and file, or shall cause to be prepared and filed, all Tax
Returns of the Company and its Subsidiary with respect to any Tax period ending on or prior to the Closing Date, which are due after the Closing Date; provided, however, that Seller shall provide each such Tax Return to Buyer for its
review and comment at least twenty (20) Business Days prior to the date on which such Tax Return is to be filed, and Seller shall consider in good faith any changes to each such Tax Return as are reasonably requested by Buyer. Such Tax Returns
shall be prepared in a manner consistent with past practices except as required by applicable Law. The parties agree, to the extent allowed by applicable Law, to deduct any deductions attributable to expenses incurred by the Company or its
Subsidiary (including, but not limited to, fees paid to legal and accounting advisors, deductions incurred in the connection with repaying of Indebtedness, compensation payments) with respect to the transactions contemplated by this Agreement on the
Tax Returns of the Company for the taxable period that ends on the Closing. For purposes of this Agreement, the parties agree that seventy percent (70%) of success-based fees paid by the Company shall be deductible under Rev. Proc. 2011-29 and shall
be deducted in the Pre-Closing Tax Period. 
 (ii) Buyer shall timely prepare and file, or shall cause to be prepared and filed, all Tax
Returns of the Company and its Subsidiary with respect to any Straddle Period at the expense of Buyer and the Company; provided, however, that Buyer shall provide each such Tax Return to Seller for its review and comment at least
twenty (20) Business Days prior to the date on which such Tax Return is to be filed, and Buyer shall make any changes to each such Tax Return as are reasonably requested by Seller. Such Tax Returns shall be prepared in a manner consistent with
past practices except as required by applicable Law. For all purposes of this Agreement, in the case of any Straddle Period of a Company or its Subsidiary, the amount of Taxes allocable to the Pre- Closing Tax Period portion of such Straddle Period
shall be deemed to be: (1) in the case of real or personal property Taxes or similar Taxes imposed on a periodic basis, the amount of such Taxes for the entire Straddle Period multiplied by a fraction, the numerator of which is the number of
calendar days in the portion of the Straddle Period ending on and including the Closing Date and the denominator of which is the number of calendar days in the entire relevant Straddle Period; and (2) in the case of Taxes not described in
(1) above (such as franchise Taxes, Taxes that are based upon or related to income or receipts, based upon production or occupancy or imposed in connection with any sale or other transfer or assignment of property (real or personal, tangible or
intangible)), the amount of any such Taxes shall be determined as if such taxable period ended as of the end of the Closing Date. 
 (iii)
Unless required by applicable Law, without the prior written consent of Seller (such consent not to be unreasonably withheld, conditioned or delayed), neither Buyer, the Company nor any of their Affiliates shall adopt or change any accounting method
or, except as specifically contemplated under Section 5.10, file or amend any Tax Return, if such adoption, change, or amendment would have the effect of increasing the Tax Liability of Seller or any of its direct or
indirect owners or increase their indemnification obligations under this Agreement. 

  
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 (iv) Seller shall pay or cause to be paid all income Taxes attributable to the transactions
contemplated hereby reported on the consolidated, unitary or combined income Tax Returns that include the operations of the Company or its Subsidiary prior to the day following the Closing. 

(b) Closing Date Course of Business. For the portion of the Closing Date after the time of Closing, other than transactions expressly
contemplated hereby (including, for the avoidance of doubt, the Section 338 Elections), Buyer shall cause the Company and its Subsidiary to carry on its business only in the Ordinary Course of Business. 

(c) Cooperation on Tax Matters. Buyer, Seller and the Company shall cooperate fully, as and to the extent reasonably requested by the
other parties, in connection with the filing of Tax Returns, the filing of any amended Tax Return for a period prior to (or including) the Closing Date, any Tax audits, Tax proceedings or other Tax-related claims. Such cooperation shall include,
upon a party’s request, providing records and information that are reasonably relevant to any such matters, making employees available on a mutually convenient basis to provide additional information, and explaining any materials provided
pursuant to this Section 5.10. Following the Closing, Seller, Buyer, the Company and their respective Subsidiaries and Affiliates shall not destroy or dispose of any Tax workpapers, schedules or other materials and
documents supporting Tax Returns of the Company and its Subsidiary for Pre-Closing Tax Periods until the seventh anniversary of the Closing Date, without the prior written consent of the other party, and before any disposition or destruction of such
materials at any time, each party shall give the other party thirty (30) days prior written notice of any such proposed disposition or destruction, and the other party shall have the right, in its sole discretion, to take possession of such
materials and documents at its expense. 
 (d) Transfer Taxes. Buyer shall be liable for and, without duplication of any right to
recovery herein, shall hold Seller harmless against any transfer, value added, excise, stock transfer, stamp, recording, registration and any similar Taxes (“Transfer Taxes”) that become payable in connection with the purchase and
sale of the Shares. The applicable parties shall cooperate in filing such forms and documents as may be necessary to permit any such Transfer Tax to be assessed and paid on or prior to the Closing Date in accordance with any available pre-sale
filing procedure, and to obtain any exemption or refund of any such Transfer Tax. If required by applicable Laws, Seller will join in the execution of any Tax Returns and other documentation with respect to Transfer Taxes. 

(e) Section 338(h)(10) Election. The Company and Buyer shall join Seller in making an election under Code
§338(h)(10) (and any corresponding election under state, local and non-U.S. Tax Law) with respect to the purchase and sale of the Shares hereunder (collectively, the “Section 338 Elections”). To the extent
permitted or required by Law, any income, gain, loss or deduction, or other Tax item resulting from the deemed sale pursuant to the Section 338 Elections shall be included in the Tax Returns of the Company for the Pre-Closing Tax Period, and
any Tax Liability resulting from the Section 338 Elections shall be borne by Seller. Seller will provide to Buyer original an IRS Form 8023 (and comparable state or local Tax forms requested by Buyer) properly signed and executed by Seller with
respect to each Section 338 Election on or before the Closing Date. The parties hereto agree that the consideration for the Shares provided in this Agreement and the liabilities of the Company and 

  
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its Subsidiary treated as purchase consideration for Tax purposes (including any Contingent Consideration Payments and any payment made pursuant to Section 2.6 of the Merger Agreement) shall
be allocated to the assets of the Company and its Subsidiary for Tax purposes as shown on the allocation schedule on IRS Form 8883 attached hereto as Exhibit D. Buyer shall adjust such allocation if and to the extent of any adjustment to the
purchase consideration paid by Buyer under this Agreement for Tax purposes. Buyer, Seller and the Company shall file all Tax Returns in a manner consistent with such allocation unless otherwise so required under a challenge of such allocation by a
taxing authority. 
 Section 5.11 Books and Records. 

(a) Record Retention Period. The parties agree to retain or cause to be retained all books and records pertinent to Seller’s
business relating to Tax matters until the expiration of the applicable period for assessment under applicable Law (giving effect to any and all extensions or waivers), and, if relating to other than Tax matters, for the period specified under such
retaining party’s document retention policy or, if longer, the longest period specified under applicable Laws. Additionally, Buyer shall, and shall cause its applicable Affiliates to, keep such complete and accurate books and records as may be
necessary to ascertain the efforts of Buyer to comply with its obligations under the Transaction Documents and all Material Contracts. No such books or records shall be destroyed after the expiration of such periods without first advising Seller in
writing and giving Seller a reasonable opportunity to obtain possession thereof. 
 (b) Retention of Copies by Seller. Notwithstanding
anything to the contrary contained in this Agreement, Seller may retain and use archival copies of all documents or materials conveyed hereunder to the extent (i) required to remain in the possession of Seller pursuant to Laws,
(ii) related to any of the purposes set forth in Section 5.4 or (iii) necessary or appropriate for Seller to perform and discharge its liabilities or obligations under the Transaction Documents; provided, however,
that Seller shall maintain such items in accordance with the provisions of Section 5.8 hereof. 
 ARTICLE VI

 CONDITIONS TO THE CLOSING 

Section 6.1 Conditions to the Obligations of Each Party. The respective obligations of each party to effect
the transactions contemplated hereby are subject to the fulfillment at or prior to the Closing Date, of the condition that no Governmental Body shall have enacted, issued, promulgated, enforced or entered any Law that is in effect and has the effect
of making the transactions contemplated by this Agreement illegal, otherwise restraining or prohibiting consummation of such transactions or causing any of the transactions contemplated hereunder to be rescinded following completion thereof. 

Section 6.2 Additional Conditions to Obligations of the Parent Parties. The obligations of each Parent Party
to effect the transactions contemplated hereby are further subject to the satisfaction of the following conditions, any one or more of which may be waived by the Parent Parties at or prior to the Closing Date: 

  
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 (a) Seller Representations and Warranties. The representations and warranties of
Seller set forth in Article III shall be true and correct (with such representations and warranties read for such purposes without any materiality or Material Adverse Effect qualifications) as of the Closing Date (or if such representations
and warranties expressly relate to a specific date, such representations and warranties shall be true and correct as of such date), except where the failure of such representations and warranties to be true and correct would not have a Material
Adverse Effect. 
 (b) Performance of Obligations of Seller. Seller shall have performed or complied in all material respects with all
agreements and covenants required by this Agreement to be performed or complied with by it on or prior to the Closing Date and shall have delivered all the items specified in Section 2.2(b). 

(c) Officer’s Certificate. The Parent Parties shall have received a certificate executed and delivered by a duly authorized officer
of Seller in his or her capacity as such, dated as of the Closing Date, stating therein that the conditions set forth in Section 6.2(a) and Section 6.2(b) have been satisfied. 

(d) Seller Deliveries. Seller shall have made the deliveries required by Section 2.2(b). 

Section 6.3 Additional Conditions to Obligations of Seller. The obligation of Seller to effect the
transactions contemplated hereby is further subject to the satisfaction of the following conditions, any one or more of which may be waived by Seller at or prior to the Closing Date: 

(a) Representations and Warranties. The representations and warranties of the Parent Parties set forth in Article IV shall be
true and correct as of the Closing Date (or if such representations and warranties expressly relate to a specific date, such representations and warranties shall be true and correct as of such date), except where the failure of such representations
and warranties (other than the representations and warranties set forth in Section 4.10, which shall be true and correct in all respects on the Closing Date) to be true and correct would not have a material adverse effect on either
Parent Party’s ability to consummate the transactions contemplated hereby. 
 (b) Performance of Obligations of Parent Parties.
Each Parent Party shall have performed or complied in all material respects with all agreements and covenants required by this Agreement to be performed or complied with by it on or prior to the Closing Date and shall have delivered all the items
specified in Section 2.2(c). 
 (c) Officer’s Certificate. Seller shall have received a certificate
from each Parent Party executed and delivered by a duly authorized representative of each Parent Party in his or her capacity as such, dated as of the Closing Date, stating therein that the conditions set forth in
Section 6.3(a) and Section 6.3(b) have been satisfied. 
 (d) Parent Parties
Deliveries. Each Parent Party shall have made the deliveries required by Section 2.2(c). 

  
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 ARTICLE VII 

TERMINATION 

Section 7.1 Termination. This Agreement may be terminated at any time prior to the Closing Date, as follows:

 (a) by the written consent of Buyer and Seller; 

(b) by either Seller, on the one hand, or Buyer, on the other hand, by written notice to the other, if the consummation of the transactions
contemplated herein, shall not have occurred on or before July 26, 2016 (the “Outside Date”); provided, however, that the right to terminate this Agreement under this Section 7.1(b) shall not
be available to any party whose failure to comply with any provision of this Agreement has been the cause of, or resulted in, the failure of such transaction to close on or before such date; or 

(c) by Seller, on the one hand, or Buyer, on the other hand, by written notice to the other, if Buyer or Parent, on the one hand, or Seller, on
the other hand, shall have breached or failed to perform in any material respect any of its respective representations, warranties, covenants or other agreements contained in this Agreement, and such breach or failure to perform (i) would give
rise to the failure of a condition set forth in Section 6.2(a) or Section 6.2(b) (in the case of a breach by Seller) or Section 6.3(a) or Section 6.3(b) (in
the case of a breach by Buyer or Parent), and (ii) cannot be or has not been cured prior to the earlier of (A) the Business Day prior to the Outside Date or (B) the date that is thirty (30) days from the date that Seller or
Buyer, as applicable, is notified by the other in writing of such breach or failure to perform. 
 Section 7.2
Effect of Termination. In the event of the termination of this Agreement pursuant to Article VII, this Agreement shall forthwith become null and void and have no effect, without any liability on the part of Buyer, Parent or Seller
or any of their respective directors, officers, managers, members, employees, partners or stockholders, and all rights and obligations of any party hereto shall cease, except that the provisions contained in this Article VII and the
Confidentiality Agreements shall survive the termination of this Agreement; provided, however, that such termination shall not relieve any party to this Agreement of liability for any fraud with the intent to deceive in connection
herewith. 
 ARTICLE VIII 

SURVIVAL OF REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION 

Section 8.1 Survival. Subject to the limitations and other provisions of this Agreement, the representations
and warranties of Seller contained in Article III or in any closing certificate delivered pursuant to Section 6.2(a), and the rights of the Buyer Indemnified Parties to bring an indemnification claim under
Section 8.2 in respect of any breach thereof resulting in Losses, shall survive the Closing and shall remain in full force and effect until the date that is fifteen (15) months immediately after the Closing (the
“General Expiration Date”); except that (a) the representations and warranties contained in Section 3.1 (Organization; Power and 

  
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 Authority; Capital Structure), Section 3.2 (Subsidiaries),
Section 3.5(a) (Material Liabilities), Section 3.10(c) (Pfizer License Agreement) and Section 3.14 (Brokers) (together, the “Fundamental Representations”)
shall survive the Closing and shall remain in full force and effect until the date that is three (3) years immediately after the Closing (the “Fundamental Expiration Date”) and (b) the representations and warranties
contained in Section 3.7 (Taxes) and Section 3.8 (Employee Benefit Plans), and the rights of the Buyer Indemnified Parties to bring an indemnification claim under
Section 8.2 in respect of any breach thereof resulting in Losses, shall survive the Closing and shall remain in full force and effect until the expiration of the applicable statute of limitations as extended under
applicable Law (the “Statutory Expiration Date”). All representations and warranties of the Parent Parties, and the rights of the Seller Indemnified Parties to bring an indemnification claim under
Section 8.3 in respect of any breach thereof resulting in Losses, shall survive the Closing and shall remain in full force and effect until the Fundamental Expiration Date, except that the representations and warranties
contained in Section 4.6 (Taxes), and the rights of the Seller Indemnified Parties to bring an indemnification claim under Section 8.3 in respect of any breach thereof resulting in Losses, shall
survive the Closing and shall remain in full force and effect until the Statutory Expiration Date. The covenants and agreements set forth herein (and the applicable rights to indemnification pursuant to this Article VIII for breaches of such
covenants) shall survive the Closing indefinitely in accordance with their terms. Except to the extent expressly provided herein, no claim for breach of any such representation or warranty may be brought after such applicable survival period;
provided, however, that any breach of a representation or warranty in respect of which indemnity may be sought under this Agreement that occurs prior to the applicable Indemnification Cut-Off Date shall survive such applicable
Indemnification Cut-Off Date if written notice of the applicable breach resulting in Losses shall have been delivered to Seller pursuant to Section 8.4 prior to such applicable Indemnification Cut-Off Date. 

Section 8.2 Indemnification of the Buyer Indemnified Parties. 

(a) Subject to the other terms and conditions of this Agreement, from and after the Closing, the Parent Parties, and each of their Affiliates
(including at and following the Closing, the Company) and their respective Representatives, stockholders, members, managers, successors, assigns and controlling Persons of any of the foregoing (each a “Buyer Indemnified
Party”) shall be held harmless, indemnified and defended by Seller for any Losses arising from or relating to (i) any inaccuracy in or breach of any representation or warranty of Seller contained in Article III or any
certificates to be delivered pursuant to Section 2.2(b)(i) or Section 6.2(c), (ii) any breach or non-fulfillment of any covenant, agreement, or obligations to be performed by Seller contained herein, or
(iii) any Pre-Closing Taxes. 
 (b) The Buyer Indemnified Parties’ indemnification rights pursuant to Section
8.2(a) shall be limited as follows: 
 (i) Other than with respect to the Buyer Indemnified Parties’
indemnification rights related to Pre-Closing Taxes arising under Section 8.2(a)(iii), the Buyer Indemnified Parties shall not be entitled to any indemnification until the aggregate dollar amount of all Losses that would
otherwise be indemnifiable pursuant to Section 8.2(a) exceeds an amount equal Seven Thousand Five Hundred Dollars ($7,500) (the “Deductible”), and then only to the extent such Losses exceed the Deductible. 

  
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 (ii) Other than with respect to the Buyer Indemnified Parties’
indemnification rights related to a breach of the Fundamental Representations, Section 3.7 (Taxes) or Pre-Closing Taxes arising under Section 8.2(a)(iii), the Buyer Indemnified Parties shall not be
entitled to indemnification under this Agreement for any Losses (individually or in the aggregate) in excess of an amount equal to Seventy Five Thousand Dollars ($75,000) (the “Cap”). Except in the case of fraud with the intent to
deceive, the Buyer Indemnified Parties’ sole source of recovery for all indemnifiable Losses under this Agreement shall be as provided in Section 8.6. 

Section 8.3 Indemnification of the Seller Indemnified Parties. From and after the Closing, Seller and its
Affiliates and each of their respective Representatives, stockholders, members, managers, successors, assigns and controlling Persons (each a “Seller Indemnified Party”) shall be held harmless, indemnified and defended by the
Parent Parties, for any Losses arising from or relating to (a) the breach of any representation or warranty of the Parent Parties contained in Article IV and any inaccuracy in the certificates to be delivered pursuant to
Section 2.2(c)(i) or Section 6.3(c), (b) the breach of any covenant of Buyer or Parent contained herein and (c) any breach or alleged breach of the Merger Agreement, the Novation and Waiver
Agreement or the Pfizer License Agreement at Closing or by Buyer or any of its Affiliates following Closing or any failure or alleged failure of Buyer, Parent or any Affiliate or either Buyer or Parent (including, at and following the Closing, the
Company and its Subsidiary) to fully satisfy its obligations under such agreements (including any obligations of Buyer, Parent, the Company or the Company’s Subsidiary or their respective Affiliates arising out of or in connection with the
Closing). 
 Section 8.4 Notice; Defense of Claims. The Buyer Indemnified Parties and the Seller
Indemnified Parties (each, an “Indemnified Party”) shall make claims for indemnification hereunder by giving prompt written notice thereof to Seller or the Parent Parties, as applicable, prior to the applicable Indemnification
Cut-Off Date in the case of the Buyer Indemnified Parties. If indemnification is sought for a claim by or in respect of any third party, the Indemnified Party shall also give the Parent Parties or Seller, as applicable, written notice of such claim
as to which such Indemnified Party may request indemnification hereunder or as to which the Deductible may be applied as soon as is practicable and in any event within twenty (20) days of the time that such Indemnified Party learns of such
claim; provided, however, that the failure to do so shall not relieve the party with the indemnification obligation hereunder (each an “Indemnifying Party”) from any liability except to the extent that it is prejudiced
by the failure or delay in giving such notice. Such notice shall state in reasonable detail the information then available regarding the amount and nature of such claim and the amount of Losses incurred or expected to be incurred in respect thereof
to the extent determinable and shall specify the representation, warranty or covenant in this Agreement under which the liability or obligation is asserted. In the case of any third party claim (which for the avoidance of doubt includes any claims
or controversies related to Taxes), the Indemnifying Party shall have the right to direct, through counsel of its own choosing reasonably acceptable to the Indemnified Party, the defense or settlement of any such claim at its own expense (subject to
the limitations set forth in this Article VIII), unless the Indemnifying Party’s control of such claim would affect any privilege of the Indemnified Party in respect of such third party claim or a conflict of interest exists that would
make it inappropriate in the reasonable judgment of the Indemnified Party for the Indemnifying Party to control such claim. If the Indemnifying Party elects to assume the defense 

  
 42 

 
of any such claim, it shall consult with the Indemnified Party for the purpose of allowing the Indemnified Party to participate in such defense. If the Indemnifying Party does not so assume
control of such defense, the Indemnified Party shall control such defense (the party controlling the defense, whether Indemnifying Party or the Indemnified Party “Controlling Party”). Parent shall be the Controlling Party for any
claims arising out of or related to the Pfizer License Agreement. The party not controlling such defense (the “Non-controlling Party”) may participate therein at its own expense, which expense shall not be recoverable as part of any
indemnification claim. The Non-controlling Party shall provide, and shall cause the Company and its Subsidiary to provide, as applicable, the Controlling Party and its counsel with reasonable access to its records and personnel relating to any such
claim during normal business hours and shall otherwise cooperate with the Controlling Party in the defense or settlement thereof. If the Controlling Party elects to direct the defense of any such claim, the Non-controlling Party shall not pay, or
permit to be paid, any part of any claim or demand arising from such asserted liability unless Controlling Party consents in writing to such payment. If the Controlling Party assumes the defense of any such claim and proposes to settle such claim
prior to a final judgment thereon or to forego any appeal with respect thereto, then the Controlling Party shall give the Non- controlling Party prompt written notice thereof, and the Non-controlling Party shall have the right to participate in and
approve (such approval not to be unreasonably withheld, conditioned or delayed) the settlement or assume the defense of such claim or proceeding. 

Section 8.5 Limitations. (a) All claims for indemnification pursuant to this Article VIII for breaches
of representations and warranties must be made on or before the General Expiration Date, the Fundamental Expiration Date or the Statutory Expiration Date, as applicable (the “Indemnification Cut-Off Date”). No indemnification shall
be payable with respect to claims asserted after the Indemnification Cut-Off Date, regardless of when the claim accrued or the circumstances that resulted in the claim being asserted after the Indemnification Cut-Off Date. In the event a claim for a
Loss has been made properly and in good faith on or prior to the applicable Indemnification Cut-Off Date, and such claim is unresolved as of the applicable Indemnification Cut-Off Date, then the right to indemnification with respect to such claim
shall remain in effect until such matter shall have been finally determined. 
 (b) The amount of any Losses subject to indemnification under
this Article VIII shall be calculated net of (i) any insurance proceeds received or receivable by any Seller Indemnified Party or any Buyer Indemnified Party on account of such Losses and/or (ii) any indemnification paid or payable
by any third party. 
 (c) The Seller Indemnified Parties and the Buyer Indemnified Parties shall use commercially reasonable efforts to
utilize insurance coverage for all or part of any Loss under then-current policies to the same extent as they would if such Loss were not subject to indemnification hereunder (which, if commercially reasonable, may include a decision by either the
Seller Indemnified Parties or the Buyer Indemnified Parties not to seek to recover any such insurance proceeds). In the event that an insurance or other recovery is made by any Seller Indemnified Party or Buyer Indemnified Party with respect to any
Loss for which any such Person has been indemnified hereunder, then a refund equal to the aggregate amount of the recovery shall be promptly paid to the Parent Parties or Seller, as applicable. 

  
 43 

 (d) The Seller Indemnified Parties and the Buyer Indemnified Parties shall use commercially
reasonable efforts to bring indemnity claims against any third party which has an indemnification obligation to either of them with respect to any Loss and to diligently pursue such claims until finally adjudicated. 

(e) Anything herein to the contrary notwithstanding, no breach of any representation, warranty or covenant contained herein shall give rise to
any right on the part of any party, after the consummation of the transactions contemplated hereby, to rescind any of the Transaction Documents. 

(f) Anything herein to the contrary notwithstanding, no Seller Indemnified Party or Buyer Indemnified Party shall have the right to be
indemnified for any Losses to the extent they are in the nature of consequential, incidental or indirect damages, diminution in value damages, lost profits or punitive, special or exemplary damages (except to the extent any such damages listed in
this sentence are part of a third party claim), and in particular, without limitation, no “multiple of profits” or “multiple of cash flow” or similar valuation methodology shall be used in calculating the amount of any Losses.
For the avoidance of doubt, any claim arising out of the Pfizer License Agreement or the Merger Agreement shall be considered a third party claim. 

(g) Any Loss for which any party is entitled to indemnification under this Article VIII shall be determined without duplication of
recovery by reason of the state of facts giving rise to such Loss constituting a breach of more than one representation, warranty or covenant. 

(h) Notwithstanding anything herein to the contrary, no Indemnified Party shall be entitled to any indemnification under this Agreement with
respect to any breach of any representation, warranty or covenant if the Indemnified Party or any of its Representatives had knowledge, at any time prior to the Closing, of such breach or of the events, circumstances or conditions constituting or
resulting in such breach. 
 Section 8.6 Source of Payments. Except for claims made by a Buyer Indemnified
Party pursuant to this Article VIII with respect Pre-Closing Taxes arising under Section 8.2(a)(iii), which Losses shall be satisfied in cash, claims made by a Buyer Indemnified Party pursuant to this Article VIII shall be exclusively
satisfied as follows: (a) first, in an amount, in cash, up to the Cap (the “Cash Indemnity Amount”); (b) second, solely with respect to breaches of the Fundamental Representations or Section 3.7 (Taxes), to
the extent that the Cash Indemnity Amount is fully depleted, by offset of any Contingent Consideration Payments payable under this Agreement; and (c) third, solely with respect to breaches of the Fundamental Representations or
Section 3.7 (Taxes), if a period of three (3) years has elapsed since the date that a claim for indemnification pursuant to this Article VIII has become payable and there have been no Net Sales, by surrender to
Buyer for immediate cancellation an amount of Parent Common Stock at a price per share of Parent Common Stock equal to the Fair Market Value at the time of resolution of the applicable claim, up to a maximum aggregate amount of 200,000 shares of
Parent Common Stock, it being understood that if the Buyer Indemnified Parties’ rights to indemnification are not fully satisfied by surrender and cancellation of Parent Common Stock pursuant to Section 8.6(c), the Buyer Indemnified
Parties shall have the right to satisfy the 

  
 44 

 
amount of such deficit by offset against Contingent Consideration Payments pursuant to Section 8.6(b); provided, however, that the Buyer Indemnified Parties’ rights
under Section 8.2(a) shall terminate (i) as to any shares of Parent Common Stock that Seller transfers in compliance with this Section 8.6 prior to notice of a claim or (ii) upon the occurrence of a Fundamental Transaction
(regardless of whether notice of a claim was delivered prior to such Fundamental Transaction); and provided, further, that Seller may, in its sole discretion, elect to satisfy any claim for which a Buyer Indemnified Party is entitled
to recovery under Section 8.6(b) or Section 8.6(c) through the payment of cash in immediately available funds to an account designated by the Buyer Indemnified Party. Pursuant to
Section 8.6(b), Buyer may withhold against any one (1) or more Contingent Consideration Payments the amount of any resolved or good faith pending claims for indemnification pursuant to this Article VIII. If such
resolved claim amount is less than the amount by which such Seller payment was reduced, then Buyer shall make payment of such difference within ten (10) days following final resolution of the claim. Upon final resolution of any pending claim
for which an offset right was asserted pursuant to Section 8.6(ii), any amount of a previously offset Contingent Consideration Payment due to Seller shall be paid within ten (10) days following such final resolution of
a claim. In connection with this provision, Seller agrees that, (a) until the earlier of the date of a Fundamental Transaction or the date that is three (3) years from the date of this Agreement or (b) upon receipt of notification of
a claim pursuant to Section 8.4 that is made prior to the earlier of the dates set forth in clause (a), Seller will not sell, transfer or otherwise dispose of any of its shares of Parent Common Stock that are subject to
surrender to Buyer in connection with this Agreement (other than to an Affiliate) without the prior written consent of Parent. For the avoidance of doubt, the number of shares of Parent Common Stock that shall be subject to such transfer restriction
shall be 200,000 shares, less the number of shares previously surrendered to Buyer in connection with this Agreement. 

Section 8.7 Remedies Exclusive. Except in the case of fraud with the intent to deceive, after the Closing,
the rights of the Seller Indemnified Parties and the Buyer Indemnified Parties to indemnification or other recourse relating to this Agreement and the transactions contemplated hereby shall, except as may otherwise be expressly agreed in writing
between the parties, be strictly limited to those contained in this Article VIII, and such indemnification rights shall be the sole and exclusive remedies of the parties hereto and the Seller Indemnified Parties and the Buyer Indemnified
Parties subsequent to the Closing Date with respect to any matter in any way relating to this Agreement or its subject matter or arising in connection herewith. To the maximum extent permitted by Law, Seller, Parent and Buyer hereby waive all other
rights and remedies with respect to any matter in any way relating to this Agreement or arising in connection herewith, whether under any Laws at common law, in equity or otherwise. Without limiting the generality of the foregoing, the parties to
this Agreement hereby irrevocably waive any right of rescission they may otherwise have or to which they may become entitled with respect to this Agreement and the transactions contemplated hereby. For the avoidance of doubt, this
Section 8.7 shall not limit the rights of the parties set forth in the Financing Agreements or the Warrant or limit any Person’s right to seek and obtain any equitable relief to which any Person shall be entitled
pursuant to Section 9.13. 
 Section 8.8 Character of Indemnity Payments. The
parties agree that any indemnification payments made under this Article VIII shall be treated for all Tax purposes as an adjustment to the total consideration received for Tax purposes, unless otherwise required by Law. 

  
 45 

 ARTICLE IX 

GENERAL PROVISIONS 

Section 9.1 Notices. All notices, requests, demands and other communications under this Agreement shall be in
writing and shall be deemed to have been duly given or made as follows: (a) if sent by registered or certified mail in the United States return receipt requested, upon receipt, (b) if sent by nationally recognized overnight courier, one
(1) Business Day after mailing, (c) if sent by facsimile transmission or e-mail of a PDF document, with a copy mailed or sent on the following Business Day in the manner provided in clauses (a) or (b) of this Section
9.1, when transmitted, and (d) if otherwise actually personally delivered, when delivered; provided, in each case, that such notices, requests, demands and other communications are delivered to the addresses or facsimile numbers
set forth below, or to such other addresses and facsimile numbers as any party shall provide by like notice to the other parties set forth below: 

If to Seller, to: 
 Chiesi USA,
Inc. 
 1255 Crescent Green Drive, Suite 250 

Cary, NC 27518 
 [####] 

[####] 
 [####] 

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

Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, L.L.P. 

Wells Fargo Capitol Center 
 150
Fayetteville Street, Suite 2300 
 Raleigh, North Carolina 27601 

[####] 
 [####] 

[####] 
 If to the Parent Parties
or the Company (after the Closing Date), to: 
 Palladio Biosciences, Inc. 

1418 Ridgewood Lane 
 Newtown, PA
18940 
 [####] 
 [####] 

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

  
 46 

 Morgan, Lewis & Bockius, LLP 

502 Carnegie Center 
 Princeton,
NJ 08540 
 [####] 
 [####] 

[####] 

Section 9.2 Severability. If any provision of this Agreement, or the application thereof to any Person or
circumstance is held invalid or unenforceable, the remainder of this Agreement, and the application of such provision to other Persons or circumstances, shall not be affected thereby, and to such end, the provisions of this Agreement are agreed to
be severable. 
 Section 9.3 Interpretation. When a reference is made in this Agreement to an Article,
Section, Schedule or Exhibit, such reference will be to an Article or Section of, or a Schedule or Exhibit to, this Agreement unless otherwise indicated. The table of contents and headings contained in this Agreement are for reference purposes only
and will not affect in any way the meaning or interpretation of this Agreement. Whenever the words “include,” “includes” or “including” are used in this Agreement, they will be deemed to be followed by the words
“without limitation.” The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement will refer to this Agreement as a whole and not to any particular provision of this
Agreement. The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such term. Unless the context clearly requires
otherwise, the word “or” shall be inclusive and not exclusive. Any agreement, instrument or statute defined or referred to herein, or in any agreement or instrument that is referred to herein, means such agreement, instrument or statute as
from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and references to all attachments thereto and
instruments incorporated therein. 
 Section 9.4 Fees and Expenses. Unless otherwise provided herein, upon
Closing all expenses of Seller and its Affiliates in connection with the negotiation and the consummation of the transactions contemplated by this Agreement and the other Transaction Documents shall be reimbursed by Buyer for their reasonable
out-of-pocket expenses (including legal fees and expenses) incurred in connection with the pursuit, negotiation and consummation of the transactions contemplated by this Agreement and the other Transaction Documents in an amount not to exceed Five
Hundred Thousand Dollars ($500,000). The Parent Parties shall bear all of their own expenses in connection with the negotiation and the consummation of the transactions contemplated by this Agreement and the other Transaction Documents. In the event
the transactions contemplated hereby and thereby fail to close for any reason, each of Buyer, Parent and Seller and their respective Affiliates (including the Company and the Company’s Subsidiary) shall bear its own respective expenses. 

Section 9.5 Choice of Law/Consent to Jurisdiction. All disputes, claims or controversies (whether in contract
or tort) arising out of or relating to this Agreement and the other Transaction Documents, or the negotiation, validity or performance of this Agreement and the other Transaction Documents, or the transactions contemplated hereby or thereby, shall
be 

  
 47 

 
governed by and construed in accordance with the internal laws of the State of Delaware without regard to its choice or conflict of law provisions. Each of Buyer, Parent and Seller hereby
irrevocably and unconditionally consents to submit to the sole and exclusive jurisdiction of the state courts of the State of Delaware (or, if such court declines to accept jurisdiction over a particular matter or matters, in any federal district
court within the State of Delaware) (the “Chosen Courts”) for any litigation, controversy or dispute arising out of or relating to this Agreement or the other Transaction Documents, or the negotiation, validity or performance of
this Agreement or the other Transaction Documents, or the transactions contemplated hereby or thereby (and agrees not to commence any litigation relating thereto except in such courts), waives any objection to the laying of venue of any such
litigation in the Chosen Courts and agrees not to plead or claim in any Chosen Court that such litigation brought therein has been brought in any inconvenient forum. Each of the parties hereto agrees, (a) to the extent such party is not
otherwise subject to service of process in the State of Delaware, to appoint and maintain an agent in the State of Delaware as such party’s agent for acceptance of legal process and (b) that service of process may also be made on such
party by prepaid certified mail to the addresses specified in this Agreement with a proof of mailing receipt validated by the United States Postal Service constituting evidence of valid service. Service made pursuant to (a) or (b) above shall
have the same legal force and effect as if served upon such party personally within the State of Delaware. 

Section 9.6 WAIVER OF JURY TRIAL. EACH PARTY TO THIS AGREEMENT ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY
ARISING UNDER OR RELATING TO THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR THE FORMATION, BREACH, TERMINATION OR VALIDITY OF THIS AGREEMENT. Each party hereto certifies and acknowledges that
(a) no Representative or any other party has represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce the foregoing waiver, (b) each party hereto understands and has considered the
implications of this waiver, (c) each party hereto makes this waiver voluntarily and (d) each party hereto has been induced to enter into this Agreement by, among other things, the mutual waivers and certifications of this
Section 9.6. Either party hereto may file an original counterpart or a copy of this Agreement with any court as written evidence of the consent of the parties to the waiver of their right to trial by jury. 

Section 9.7 Amendment. This Agreement may be amended by the parties hereto by an instrument in writing signed
by Buyer, Parent and Seller. 
 Section 9.8 Extension; Waiver. At any time prior to the Closing Date, the
parties hereto may, to the extent legally allowed, (a) extend the time for the performance of any of the obligations or other acts of the other parties hereto, (b) waive any inaccuracies in the representations and warranties of the other
party contained herein or in any document delivered pursuant hereto and (c) waive compliance by the other party with any of the agreements or conditions contained herein. Any agreement on the part of a party hereto to any such extension 

  
 48 

 
or waiver shall be valid only if set forth in a written instrument signed on behalf of the party against whom such waiver or extension is to be enforced. Waiver of any term or condition of this
Agreement by a party shall not be construed as a waiver of any subsequent breach or waiver of the same term or condition by such party, or a waiver of any other term or condition of this Agreement by such party. 

Section 9.9 Assignment. Except as expressly permitted by the terms hereof, neither this Agreement nor any of
the rights, interests or obligations hereunder may be assigned (by operation of Law or otherwise) by any of the parties hereto without the prior written consent of the other parties; provided, that each of Seller, Parent and Buyer may assign
its rights and obligations (a) to an Affiliate or (b) in connection with a merger, consolidation, sale of all or substantially all of the assets or similar transaction involving Seller or its Affiliates or Buyer or Parent or any of their
Affiliates, as the case may be. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of and be enforceable by the parties hereto and their respective successors and assigns. Any purported assignment in
violation of this Section 9.9 shall be void ab initio. No assignment shall relieve the assigning party of any of its obligations hereunder. In addition, for so long as any Parent Party (or any Affiliate or assignee
of any Parent Party) has any obligations to Seller or any of its Affiliates under this Agreement, in connection with any sale, transfer or other disposition of all or substantially all of either Parent Party’s assets or business, whether direct
or indirect, by purchase, merger, consolidation or otherwise or the sale or assignment of all of the Parent Party’s (or its assignee’s or Affiliate’s) rights in the Company, the Company’s Subsidiary or any rights to any
Lixivaptan Product or Intellectual Property that the Company or its Subsidiary owns, licenses, sublicenses or otherwise possesses legally enforceable rights to use, the Parent Party (or its assignee) shall assign this Agreement and its rights,
together with its obligations hereunder (including the obligation to issue equity and make Contingent Consideration Payments); for the avoidance of doubt, the foregoing shall not apply to (x) any grant of any license, distribution, marketing or
other similar development or commercial right in and to any Lixivaptan Product or (y) any debt or other transaction in which a Parent Party or an Affiliate of a Parent Party grants a security interest in any Lixivaptan Product and/or assigns
its right to receive proceeds from sales of any Lixivaptan Product or grant a security interest in such right to receive proceeds of sales in any Lixivaptan Product to one or more third parties providing financing to a Parent Party pursuant to the
terms of a security or other agreement related to such financing (e.g., for purposes of a royalty financing arrangement), it being acknowledged and agreed that, notwithstanding any such arrangement, the Parent Party shall remain obligated hereunder
(including the obligation to issue equity and make Contingent Consideration Payments). 
 Section 9.10 No
Third-Party Beneficiaries. Except as expressly provided in Article VIII, which is intended to provide rights of the parties named therein as third party beneficiaries, this Agreement is not intended to confer upon any other Person
any rights or remedies hereunder. 
 Section 9.11 Mutual Drafting. The parties hereto are sophisticated and
have been represented by attorneys throughout the transactions contemplated hereby who have carefully negotiated the provisions hereof. As a consequence, the parties do not intend that the presumptions of Laws or rules relating to the interpretation
of contracts against the drafter of any particular clause should be applied to this Agreement or any agreement or instrument executed in connection herewith, and therefore waive their effects. 

  
 49 

 Section 9.12 Prior Company Counsel. Each Parent Party
hereby acknowledges that Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, L.L.P. prior to the Closing (“Prior Company Counsel”) represented the Company and its Subsidiary. Each Parent Party agrees that to the
extent it, through its acquisition of the Company, acquires any right to treat the Prior Company Counsel as either Parent Party’s counsel or former counsel, it will not, solely as a result thereof, take any action to disqualify the Prior
Company Counsel from acting and continuing to act as counsel to any of the Company’s Affiliates or former Affiliates (including Seller) in connection with any matters arising out of or related in any way to the Transaction Documents or in the
event of a dispute related to the Transaction Documents or the transactions contemplated thereby. Each Parent Party further agrees that, as to all communications among Prior Company Counsel and the Company or its Affiliates, to the extent such
communications are specifically related to the transactions contemplated by this Agreement, the attorney-client privilege and the expectation of client confidences belongs to the Company or its Affiliates and shall not pass to or be claimed by
either Parent Party. 
 Section 9.13 Specific Performance. The parties hereto acknowledge and agree that
the failure of any party to perform its agreements and covenants hereunder, including such party’s failure to take all actions as are necessary on such party’s part in accordance with the terms and conditions of this Agreement to
consummate the transactions contemplated hereby will cause irreparable injury to the other parties, for which damages, even if available, will not be an adequate remedy. Accordingly, each party hereby consents to the issuance of injunctive relief by
any court of competent jurisdiction to compel performance of such party’s obligations and to the granting by any court of the remedy of specific performance of such party’s obligations hereunder. 

Section 9.14 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an
original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery
of an original signed copy of this Agreement. 
 Section 9.15 Entire Agreement. This Agreement, the other
Transaction Documents and the Confidentiality Agreements and the other agreements, instruments and documents delivered or required to be delivered in connection with the execution of this Agreement or at the Closing constitute the entire agreement
among the parties with respect to the subject matter hereof and supersede all prior agreements and undertakings, both written and oral, between the parties with respect to the subject matter hereof and thereof. The parties have voluntarily agreed to
define their rights, liabilities and obligations with respect to the sale of the Shares exclusively in contract pursuant to the express terms and provisions of this Agreement, the other Transaction Documents, the Confidentiality Agreements and the
other agreements, instruments and documents delivered or required to be delivered in connection with the execution of this Agreement or at the Closing, and the parties hereby expressly disclaim that they are owed any duties or are entitled to any
remedies not expressly set forth herein and therein. 
 [Remainder of page intentionally left blank.] 

  
 50 

 IN WITNESS WHEREOF, the parties hereto have caused this Stock Purchase Agreement to be
signed by their respective officers thereunto duly authorized, all as of the date first written above. 
  

							
	PARENT:	 		 	PALLADIO BIOSCIENCES, INC.
				
		 		 	By:	 	/s/ Lorenzo Pellegrini
		 		 	Name: Lorenzo Pellegrini
		 		 	Title: Chief Executive Officer

  

							
	BUYER:	 		 	PALLADIO ACQUISITION SUB, INC.
				
		 		 	By:	 	/s/ Lorenzo Pellegrini
		 		 	Name: Lorenzo Pellegrini
		 		 	Title: Chief Executive Officer

  

							
	SELLER:	 		 	CHIESI USA, INC.
				
		 		 	By:	 	/s/ Ken McBean
		 		 	Name: Ken McBean
		 		 	Title: President and Chief Executive Officer

 SIGNATURE PAGE TO CARDIOKINE SPA 

 Exhibit A 

[####] 

 Exhibit B 

[####] 

 Exhibit C 

[####] 

 Exhibit D 

[####] 

 Exhibit E 

[####] 

 Exhibit F 

[####]EX-10.28

 Exhibit 10.28 

EXECUTION VERSION 
 AGREEMENT AND
PLAN OF MERGER 
 by and among 

CORNERSTONE THERAPEUTICS INC., 

COHESION MERGER SUB, INC., 

CARDIOKINE, INC. 
 and 

SHAREHOLDER REPRESENTATIVE SERVICES LLC 

Dated as of December 28, 2011 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 ARTICLE I
	 	 THE MERGER
	  	 	1	 
	 1.1
	 	 Effective Time of the Merger
	  	 	1	 
	 1.2
	 	 Closing
	  	 	1	 
	 1.3
	 	 Effects of the Merger
	  	 	2	 
	 1.4
	 	 Directors and Officers of the Surviving Corporation
	  	 	2	 
	 1.5
	 	 Stock Certificates
	  	 	2	 
	 1.6
	 	 Statement of Liabilities
	  	 	2	 
	 1.7
	 	 Charter Amendment
	  	 	2	 
	 ARTICLE II
	 	 CONVERSION OF SECURITIES
	  	 	2	 
	 2.1
	 	 Conversion of Capital Stock; Product Payments
	  	 	2	 
	 2.2
	 	 Dissenting Shares
	  	 	4	 
	 2.3
	 	 Indemnification Representative
	  	 	5	 
	 2.4
	 	 Treatment of Company Options
	  	 	9	 
	 2.5
	 	 Contingent Consideration
	  	 	9	 
	 2.6
	 	 Distributions
	  	 	18	 
	 2.7
	 	 Withholding Rights
	  	 	20	 
	 ARTICLE III
	 	 REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	  	 	21	 
	 3.1
	 	 Organization, Standing and Power
	  	 	21	 
	 3.2
	 	 Capitalization
	  	 	22	 
	 3.3
	 	 Subsidiaries
	  	 	23	 
	 3.4
	 	 Authority; No Conflict; Required Filings and Consents
	  	 	24	 
	 3.5
	 	 Financial Statements
	  	 	25	 
	 3.6
	 	 Absence of Certain Changes
	  	 	25	 
	 3.7
	 	 No Undisclosed Liabilities
	  	 	26	 
	 3.8
	 	 Taxes
	  	 	26	 
	 3.9
	 	 Owned and Leased Real Properties
	  	 	28	 
	 3.10
	 	 Intellectual Property
	  	 	28	 
	 3.11
	 	 Contracts
	  	 	31	 
	 3.12
	 	 Litigation
	  	 	33	 
	 3.13
	 	 Environmental Matters
	  	 	33	 
	 3.14
	 	 Employee Benefit Plans
	  	 	34	 
	 3.15
	 	 Labor Matters
	  	 	37	 
	 3.16
	 	 Compliance With Laws
	  	 	38	 
	 3.17
	 	 Permits
	  	 	38	 
	 3.18
	 	 Insurance
	  	 	38	 
	 3.19
	 	 Product Liability
	  	 	38	 
	 3.20
	 	 Regulatory Matters
	  	 	38	 
	 3.21
	 	 Affiliate Transactions
	  	 	40	 
	 3.22
	 	 Brokers
	  	 	40	 
	 ARTICLE IV
	 	 REPRESENTATIONS AND WARRANTIES OF THE BUYER AND THE TRANSITORY SUBSIDIARY
	  	 	40	 

  
 -i- 

							
	 4.1
	 	 Organization, Standing and Power
	  	 	40	 
	 4.2
	 	 Authority; No Conflict; Required Filings and Consents
	  	 	40	 
	 4.3
	 	 Litigation
	  	 	41	 
	 4.4
	 	 Operations of the Transitory Subsidiary
	  	 	42	 
	 4.5
	 	 Financing
	  	 	42	 
	 4.6
	 	 Solvency
	  	 	42	 
	 4.7
	 	 No Other Representations or Warranties
	  	 	42	 
	 4.8
	 	 Competing Products
	  	 	43	 
	 ARTICLE V
	 	 CONDUCT OF BUSINESS
	  	 	43	 
	 5.1
	 	 Covenants of the Company
	  	 	43	 
	 5.2
	 	 Severance Costs
	  	 	45	 
	 5.3
	 	 Confidentiality
	  	 	45	 
	 ARTICLE VI
	 	 ADDITIONAL AGREEMENTS
	  	 	45	 
	 6.1
	 	 No Solicitation
	  	 	45	 
	 6.2
	 	 Stockholder Consent or Approval
	  	 	46	 
	 6.3
	 	 Access to Information
	  	 	46	 
	 6.4
	 	 Legal Conditions to the Merger
	  	 	46	 
	 6.5
	 	 Public Disclosure
	  	 	47	 
	 6.6
	 	 Indemnification of Directors and Officers
	  	 	47	 
	 6.7
	 	 Notification of Certain Matters
	  	 	48	 
	 6.8
	 	 [Reserved]
	  	 	48	 
	 6.9
	 	 280G Matters
	  	 	48	 
	 6.10
	 	 Tax Matters
	  	 	49	 
	 ARTICLE VII
	 	 CONDITIONS TO MERGER
	  	 	51	 
	 7.1
	 	 Conditions to Each Party’s Obligation To Effect the Merger
	  	 	51	 
	 7.2
	 	 Additional Conditions to Obligations of the Buyer and the Transitory Subsidiary
	  	 	51	 
	 7.3
	 	 Additional Conditions to Obligations of the Company
	  	 	52	 
	 ARTICLE VIII
	 	 TERMINATION AND AMENDMENT
	  	 	53	 
	 8.1
	 	 Termination
	  	 	53	 
	 8.2
	 	 Effect of Termination
	  	 	53	 
	 8.3
	 	 Fees and Expenses
	  	 	54	 
	 8.4
	 	 Amendment
	  	 	54	 
	 8.5
	 	 Extension; Waiver
	  	 	54	 
	 ARTICLE IX
	 	 INDEMNIFICATION
	  	 	54	 
	 9.1
	 	 Indemnification by Company Participating Equityholders
	  	 	54	 
	 9.2
	 	 Indemnification by Buyer
	  	 	55	 
	 9.3
	 	 Claims for Indemnification
	  	 	56	 
	 9.4
	 	 Survival
	  	 	57	 
	 9.5
	 	 Limitations.
	  	 	58	 
	 9.6
	 	 Right of Set Off
	  	 	59	 
	 9.7
	 	 Treatment of Indemnity Payments
	  	 	60	 
	 ARTICLE X
	 	 MISCELLANEOUS
	  	 	60	 
	 10.1
	 	 Notices
	  	 	60	 
		 		  			

  
 -ii- 

							
	 10.2
	  	 Entire Agreement
	  	 	61	 
	 10.3
	  	 No Third Party Beneficiaries
	  	 	62	 
	 10.4
	  	 Assignment
	  	 	62	 
	 10.5
	  	 Severability
	  	 	62	 
	 10.6
	  	 Counterparts and Signature
	  	 	63	 
	 10.7
	  	 Interpretation
	  	 	63	 
	 10.8
	  	 Governing Law
	  	 	63	 
	 10.9
	  	 Remedies
	  	 	63	 
	 10.10
	  	 Submission to Jurisdiction
	  	 	64	 
	 10.11
	  	 Disclosure Schedules
	  	 	64	 
	 10.12
	  	 Company’s Knowledge
	  	 	64	 

  

  
 -iii- 

 AGREEMENT AND PLAN OF MERGER 

THIS AGREEMENT AND PLAN OF MERGER (this “Agreement”) is entered into as of December 28, 2011, by and among Cornerstone
Therapeutics Inc., a Delaware corporation (the “Buyer”), Cohesion Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of the Buyer (the “Transitory Subsidiary”), Cardiokine, Inc., a Delaware corporation (the
“Company”), and Shareholder Representative Services LLC, a Colorado limited liability company, solely in its capacity as the Indemnification Representative. 

WHEREAS, the Boards of Directors of the Buyer and the Company deem it advisable and in the best interests of each corporation and their
respective stockholders that the Buyer acquire the Company in order to advance the long-term business interests of the Buyer and the Company; and 

WHEREAS, the acquisition of the Company shall be effected through a merger (the “Merger”) of the Transitory Subsidiary with and into
the Company in accordance with the terms of this Agreement and the Delaware General Corporation Law (the “DGCL”), as a result of which the Company shall become a wholly owned subsidiary of the Buyer. 

NOW, THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants and agreements set forth below,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Buyer, the Transitory Subsidiary and the Company agree as follows: 

ARTICLE I 
 THE MERGER

 1.1 Effective Time of the Merger. Subject to the provisions of this Agreement, prior to the Closing, the Buyer and the Company
shall jointly prepare, and immediately following the Closing the Surviving Corporation shall cause to be filed with the Secretary of State of the State of Delaware, a certificate of merger (the “Certificate of Merger”) in such form as
“is” required by, and executed in accordance with, the relevant provisions of the DGCL and shall make all other filings or recordings required under the DGCL. The Merger shall become effective upon the filing of the Certificate of Merger
with the Secretary of State of the State of Delaware or at such later time as is established by the Buyer and the Company and set forth in the Certificate of Merger (the “Effective Time”). 

1.2 Closing. The closing of the Merger (the “Closing”) shall take place at 10:00 a.m., Eastern time, on December 30, 2011
(the “Closing Date”), subject to satisfaction or waiver of the conditions set forth in Article VII (other than delivery of items to be delivered at the Closing and other than satisfaction of those conditions that by their nature are to be
satisfied at the Closing, it being understood that the occurrence of the Closing shall remain subject to the delivery of such items and the satisfaction or waiver of such conditions at the Closing), at the offices of Wilmer Cutler Pickering Hale and
Dorr LLP, 60 State Street, Boston, Massachusetts 02109, unless another date, place or time is agreed to in writing by the Buyer and the Company. For purposes of this Agreement, a “Business Day” shall be any day other than (a) a
Saturday or Sunday or (b) a day on which banking institutions located in New York, New York are permitted or required by law, executive order or governmental decree to remain closed. 

  
 1 

 1.3 Effects of the Merger. At the Effective Time (a) the separate existence of
the Transitory Subsidiary shall cease and the Transitory Subsidiary shall be merged with and into the Company (the Company following the Merger is sometimes referred to herein as the “Surviving Corporation”) and (b) the Certificate of
Incorporation of the Company as in effect on the date of this Agreement shall be amended in its entirety to read as set forth on Exhibit A. The by-laws of the Transitory Subsidiary, as in effect immediately
prior to the Effective Time, shall be the by-laws of the Surviving Corporation until thereafter amended as provided by law, by the terms of the certificate of incorporation of the Surviving Corporation and by
the terms of such by-laws. The Merger shall have the effects set forth in Section 259 of the DGCL. 

1.4 Directors and Officers of the Surviving Corporation. 

(a) The directors of the Transitory Subsidiary immediately prior to the Effective Time shall be the initial directors of the Surviving
Corporation, each to hold office in accordance with the Certificate of Incorporation and By-laws of the Surviving Corporation. 

(b) The officers of the Transitory Subsidiary immediately prior to the Effective Time shall be the initial officers of the Surviving
Corporation, each to hold office in accordance with the Certificate of Incorporation and By-laws of the Surviving Corporation. 

1.5 Stock Certificates. At the Closing, the Company shall deliver to the Buyer, for cancellation by the Buyer, all stock certificates
representing, as of immediately prior to the Effective Time, shares of Company Stock. 
 1.6 Statement of Liabilities. No later than
three (3) Business Days prior to the Closing, the Company shall prepare and deliver to the Buyer a certificate containing a description and the outstanding balance of the Liabilities contemplated by Section 3.5(b) of this Agreement,
including the timing and amounts of payments with respect to any such Liabilities required after the Closing, if any. 
 1.7 Charter
Amendment. Promptly following execution and delivery of this Agreement, the Company shall file with the Secretary of State of the State of Delaware the Certificate of Amendment of the Second Amended and Restated Certificate of Incorporation of
the Company attached as Exhibit B. 
 ARTICLE II 

CONVERSION OF SECURITIES 

2.1 Conversion of Capital Stock; Product Payments. 

(a) Capital Stock of the Transitory Subsidiary. At the Effective Time, each share of the common stock of the Transitory Subsidiary
issued and outstanding immediately prior to the Effective Time shall, by virtue of the Merger, be converted into and become one fully paid and nonassessable share of common stock, $0.001 par value per share, of the Surviving Corporation. 

  
 2 

 (b) Cancellation of Treasury Stock and Buyer-Owned Stock. At the Effective Time, all
shares of common stock, par value $0.0001 per share, of the Company (“Company Common Stock”), Series A Convertible Preferred Stock, par value $0.001 per share, of the Company (“Company Series A Convertible Preferred Stock”),
Series B Convertible Preferred Stock, par value $0.001 per share, of the Company (“Company Series B Convertible Preferred Stock”) and Series B1 Preferred Stock, par value $0.001 per share, of the Company (“Company Series B1 Preferred
Stock” and, together with Company Series A Convertible Preferred Stock and Company Series B Convertible Preferred Stock, “Company Preferred Stock”, and together with Company Common Stock, Company Series A Convertible Preferred Stock
and Company Series B Convertible Preferred Stock, the “Company Stock”), that are owned by the Company as treasury stock or by any wholly owned Subsidiary of the Company and any shares of Company Stock owned by the Buyer, the Transitory
Subsidiary or any other wholly owned Subsidiary of the Buyer immediately prior to the Effective Time shall, by virtue of the Merger, be cancelled and shall cease to exist and no payment or consideration shall be delivered in exchange therefor. 

(c) Conversion of Company Stock. Each share of Company Stock outstanding immediately prior to the Effective Time (other than
(i) Dissenting Shares and (ii) shares cancelled pursuant to Section 2.1(b)) shall, by virtue of the Merger and without any action on the part of the Buyer or any holder of Company Stock, be converted into the right to receive the
amounts, if any, to which the holder of such share is entitled pursuant to Section 2.6(b) (such amounts, the “Applicable Merger Consideration”). 

(d) Product Payments. The Buyer shall make the following payments, in each case, in accordance with Section 2.6 (each, a
“Product Payment”): 
 (i) [####] 

[####] 
 [####] 

(e) Payments for Company Cash and Cash Equivalents. At the Closing, the Buyer shall pay to the party or account designated by the
Indemnification Representative, (1) [####] (the “Initial Common Amount”) for distribution to the holders of Company Common Stock, with each such holder being paid his, her or its Common Pro Rata Share of the Initial Common Amount by the
Indemnification Representative and (2) for distribution to the Company Participating Equityholders in accordance with Section 2.6(b), an amount in cash equal to (w) the amount of cash and cash equivalents held by the Company as of the
close of business on the Business Day prior to the Closing Date minus (x) the amount necessary for the Company to meet its Liabilities in excess of [####] (the “Excess Liability Amount”) minus (y) [####] (the
“General Escrow Funds”) minus (z) the Initial Common Amount. The Surviving Corporation shall provide the Company Participating Equityholders reasonable access upon written request to the books and records of the Company, solely
as they relate to the amount of cash and cash equivalents held by the Company as of the close of business on the Business Day prior to the Closing Date, during business hours during the five (5) Business Days immediately following the Closing
Date. 

  
 3 

 (f) General Escrow. At the Closing, the Buyer shall deposit the General Escrow Funds
in an account (the “General Escrow Account) with JP Morgan Chase Bank, N.A. (the “Escrow Agent”) pursuant to an escrow agreement attached as Exhibit C, to secure the indemnification obligations of the Company Participating
Equityholders under this Agreement. On the date that is 18 months after the Closing Date, the Buyer and the Indemnification Representative shall jointly instruct the Escrow Agent to release any remaining General Escrow Funds not otherwise subject to
outstanding claims pursuant to Article IX hereof to the party or account designated by the Indemnification Representative for further distribution in accordance with Section 2.6(b). 

2.2 Dissenting Shares. 

(a) Notwithstanding anything to the contrary contained in this Agreement, shares of Company Stock held by a holder who has made a demand for
appraisal of such shares of Company Stock in accordance with the DGCL (any such shares being referred to as “Dissenting Shares” until such time as such holder fails to perfect or who shall have effectively withdrawn or otherwise loses such
holder’s appraisal rights under the DGCL with respect to such shares) shall not be converted into or represent the right to receive the Applicable Merger Consideration in accordance with Section 2.1, but shall be entitled only to such
rights as are granted by the DGCL to a holder of Dissenting Shares. 
 (b) If any Dissenting Shares shall lose their status as such (through
failure to perfect or otherwise), then, as of the later of the Effective Time or the date of loss of such status, such shares shall automatically be converted into and shall represent only the right to receive the Applicable Merger Consideration
payable in respect thereof pursuant to this Agreement, without interest thereon, upon surrender of the Certificate formerly representing such shares. 

(c) The Company shall give the Buyer: (i) prompt notice of any written demand for appraisal received by the Company prior to the
Effective Time pursuant to the DGCL, any withdrawal of any such demand and any other demand, notice or instrument delivered to the Company prior to the Effective Time pursuant to the DGCL that relates to such demand and (ii) the opportunity to
participate in all negotiations and proceedings with respect to any such demand, notice or instrument. The Company shall not make any payment or settlement offer prior to the Effective Time with respect to any such demand, notice or instrument
unless the Buyer shall have given its written consent to such payment or settlement offer, which consent shall not be unreasonably withheld, conditioned or delayed. 

  
 4 

 2.3 Indemnification Representative 

(a) Shareholder Representative Services LLC (the “Indemnification Representative”) is hereby authorized to act on behalf of the
Company Participating Equityholders in connection with the transactions contemplated by this Agreement and in any litigation or arbitration involving this Agreement, and to make payments to Company Participating Equityholders pursuant to
Section 2.6. In connection therewith, the Indemnification Representative is authorized to do or refrain from doing all further acts and things, and to execute all such documents as the Indemnification Representative shall deem necessary or
appropriate, and shall have the power and authority to: 
 (i) act for the Company Participating Equityholders with regard to all matters
pertaining to indemnification pursuant to Article IX of this Agreement, including the power to compromise any indemnity claim on behalf of the Company Participating Equityholders and to transact matters of litigation; 

(ii) execute and deliver all amendments, waivers, ancillary agreements, certificates and documents that the Indemnification Representative
deems necessary or appropriate in connection with the consummation of the transactions contemplated by this Agreement; 
 (iii)receive
funds, make payments of funds, and give receipts for funds, or appoint an agent or advisor for such purposes; 
 (iv)do or refrain from
doing any further act or deed on behalf of the Company Participating Equityholders that the Indemnification Representative deems necessary or appropriate in their discretion relating to the subject matter of this Agreement as fully and completely as
the Company Participating Equityholders could do if personally present; 
 (v) give and receive all notices required to be given or received
by the Company Participating Equityholders under this Agreement; and 
 (vi)receive service of process in connection with any claims under
this Agreement. 
 (b) All decisions and actions by the Indemnification Representative shall be binding upon all Company Participating
Equityholders, and no Company Participating Equityholder shall have the right to object, dissent, protest or otherwise contest the same. 

(c) Prior to the Effective Time, the Company shall pay $0 to the Indemnification Representative (the “Indemnification
Representative’s Fund”), which Indemnification Representative’s Fund shall be maintained by the Indemnification Representative in a segregated account (the “Indemnification Representative’s Account”). The
Indemnification Representative shall be reimbursed for reasonable out-of-pocket expenses incurred in the performance of its duties (including the reasonable fees and
expenses of counsel) under this Agreement from the Indemnification Representative’s Fund. Upon the determination of the Indemnification Representative that the Indemnification Representative’s Fund is no longer necessary in connection with
indemnification claims that may be brought hereunder, the Indemnification Representative shall distribute to the Company Participating Equityholders (solely out of the Indemnification Representative’s Fund) the amount remaining in the
Indemnification Representative’s Fund after payment of all of the Indemnification Representative’s out-of-pocket expenses incurred in connection with its
services as Indemnification Representative (such 

  
 5 

 
amount, the “Residual Indemnification Representative’s Fund Amount”) in accordance with Section 2.6(b) hereof. The Indemnification Representative shall hold and disburse the
Indemnification Representative’s Account in trust for all of the Company Participating Equityholders, and the Indemnification Representative’s Account shall not be used for any other purpose and shall not be available to the Buyer to
satisfy any claims hereunder. The Company Participating Equityholders shall not receive interest or other earnings on the Indemnification Representative’s Account and the Company Participating Equityholders irrevocably transfer and assign to
the Indemnification Representative any ownership right that they may have in any interest that may accrue on funds held in the Indemnification Representative’s Account. The Company Participating Equityholders acknowledge that the
Indemnification Representative is not providing any investment supervision, recommendations or advice. The Indemnification Representative shall have no responsibility or liability for any loss of principal of the Indemnification
Representative’s Account other than as a result of its gross negligence or willful misconduct. For tax purposes, the Indemnification Representative’s Account shall be treated as having been received and voluntarily set aside by the Company
Participating Equityholders at the time of Closing. The Company Participating Equityholders shall not receive interest or other earnings on the Indemnification Representative’s Account and the Company Participating Equityholders irrevocably
transfer and assign to the Indemnification Representative any ownership right that they may have in any interest that may accrue on funds held in the Indemnification Representative’s Account as a fee to the Indemnification Representative. The
Company Participating Equityholders acknowledge that the Indemnification Representative is not providing any investment supervision, recommendations or advice. The Indemnification Representative shall have no responsibility or liability for any loss
of principal of the Indemnification Representative’s Account other than as a result of its gross negligence or willful misconduct. The parties agree that the Indemnification Representative is not acting as a withholding agent or in any similar
capacity in connection with the Indemnification Representative’s Account. If any tax reporting is required with respect to the ultimate distribution of any balance of the Indemnification Representative’s Account, then the Indemnification
Representative will provide to Buyer or its designated agent, upon request, information regarding the amounts distributed to each Company Participating Equityholder, to be used by Buyer or its agent in completing any required tax reporting. Any
portion of the Indemnification Representative’s Account that remains undeliverable or unclaimed after six months of the initial delivery attempt shall promptly be paid to Buyer and handled in the same manner as other unclaimed funds as provided
in this Agreement. 
 (d) The Indemnification Representative shall act for the Company Participating Equityholders on all of the matters set
forth in this Agreement in the manner the Indemnification Representative believes to be in the best interest of the Company Participating Equityholders. The Indemnification Representative is authorized to act on behalf of the Company Participating
Equityholders notwithstanding any dispute or disagreement among the Company Participating Equityholders. In taking any actions as Indemnification Representative, the Indemnification Representative may rely conclusively, without any further inquiry
or investigation, upon any certification or confirmation, oral or written, given by any person the Indemnification Representative reasonably believes to be authorized thereunto. The Indemnification Representative may, in all questions arising
hereunder, rely on the advice of counsel, and the Indemnification Representative shall not be liable to any of the parties hereto or to any Company Participating Equityholder for anything done, omitted or suffered in good faith by the

  
 6 

 
Indemnification Representative based on such advice. The Indemnification Representative undertakes to perform such duties and only such duties as are specifically set forth in this Agreement and
no implied covenants or obligations shall be read into this Agreement against the Indemnification Representative. The Indemnification Representative shall not have any liability to any of the parties hereto or the Company Participating Equityholders
for any act done or omitted hereunder as Indemnification Representative while acting in good faith. The Indemnification Representative shall be indemnified by the Company Participating Equityholders from and against any loss, liability or expense
arising out of or in connection with the acceptance or administration of its duties hereunder from the Indemnification Representative’s Fund, in each case as such loss, liability or expense is incurred or suffered, provided that in the event it
is finally adjudicated that any such loss, liability or expense was primarily caused by the bad faith of the Indemnification Representative, the Indemnification Representative will reimburse the Company Participating Equityholders the amount of such
loss, liability or expense attributable to such bad faith. In the event that the Indemnification Representative’s Fund is insufficient to fully reimburse the Indemnification Representative for such indemnified losses, liabilities or expenses,
the Indemnification Representative shall be entitled to deduct and retain the amount of such shortfall out of any General Escrow Funds, NOL Tax Refund or Contingent Consideration received on behalf of the Indemnification Representative that the
Indemnification Representative would otherwise be obligated to cause to be distributed to the Company Participating Equityholders pursuant to Section 2.6(b); provided that nothing in this Section shall (i) relieve the Company Participating
Equityholders from their obligation to promptly pay such losses, liabilities or expenses as they are suffered or incurred or (ii) prevent the Indemnification Representative from seeking any remedies available to it at law or otherwise. 

(e) Access to Information. 

(i) The Indemnification Representative shall have reasonable access to relevant information of the Company, its Subsidiaries, the Buyer and
their Affiliates and the reasonable assistance of the employees of the Company, its Subsidiaries, the Buyer and their Affiliates solely for the purposes of (A) evaluating claims for indemnification made under Article IX and performing their
duties and exercising their rights related to any such claims under Article IX and (B) evaluating the information provided pursuant to, and performing their duties and exercising their rights pursuant to, Section 2.5(d); provided that the
Indemnification Representative shall enter into a reasonable confidentiality agreement in a form reasonably satisfactory to the accountants, auditors or other professional advisors of the Buyer or the Surviving Corporation if requested by them prior
to granting access to such information. 
 (ii) The Indemnification Representative shall treat confidentially and not disclose any nonpublic
information disclosed to them pursuant to this Section 2.3(e) or Section 2.5(d) to anyone except as required by law, regulation or court order, provided that (x) any Indemnification Representative may disclose to legal counsel and
other advisors (for the same purposes as to which the Indemnification Representative may use such information pursuant to Section 2.3(e)(i)(A) or (B)) any information disclosed to the Indemnification Representative pursuant to
Section 2.3(e)(i)(A) or (B) or Section 2.5(d), (y) the Indemnification Representative (or legal counsel or other advisor to whom information is disclosed pursuant to clause (x) above) may disclose in any proceeding relating to a
claim for indemnification under Article IX or a 

  
 7 

 
dispute relating to Section 2.5 (or, in either case, discussions in preparation therefor) any information disclosed to the Indemnification Representative pursuant to
Section 2.3(e)(i)(A) or (B) or Section 2.5(d), and (z) the Indemnification Representative may disclose to any Company Participating Equityholder any information disclosed to the Indemnification Representative pursuant to
Section 2.3(e)(i)(A) or (B) or Section 2.5(d) provided that such Company Participating Equityholder has agreed to be bound by obligations of confidentiality to the Indemnification Representative of at least a high as standard as those
imposed on the Indemnification Representative in this Agreement or has agreed with the Company, or with the Company as a third party beneficiary of such agreement, to maintain the confidentiality of such information. 

(f) In the event the Indemnification Representative becomes unable to perform its responsibilities hereunder or resigns from such position,
the Company Participating Equityholders (acting by a written instrument signed by holders of Company Stock who held, as of immediately prior to the Effective Time, a majority (by voting power) of the then outstanding shares of Company Stock) shall
select another representative to fill the vacancy of the Indemnification Representative, and such substituted representative shall be deemed to be an Indemnification Representative for all purposes of this Agreement. The Indemnification
Representative may only be removed upon delivery of written notice to the Buyer signed by holders of Company Stock who held, as of immediately prior to the Effective Time, a majority (by voting power) of the then outstanding shares of Company Stock.

  

	 	(g)	 For all purposes of this Agreement: 

(i) the Buyer shall be entitled to rely conclusively on the instructions and decisions of the Indemnification Representative as to the
settlement of any claims for indemnification by the Buyer pursuant to Article IX hereof, or any other actions required or permitted to be taken by the Indemnification Representative hereunder, and no party hereunder shall have any cause of action
against the Buyer for any action taken by the Buyer in reliance upon the instructions or decisions of the Indemnification Representative; 

(ii) the provisions of this Section 2.3 are independent and severable, are irrevocable and coupled with an interest and shall be
enforceable notwithstanding any rights or remedies that any Company Participating Equityholder may have in connection with the transactions contemplated by this Agreement; and 

(iii)the provisions of this Section 2.3 shall be binding upon the executors, heirs, legal representatives, personal representatives,
successor trustees and successors of each Company Participating Equityholder, and any references in this Agreement to a Company Participating Equityholder shall mean and include the successors to the rights of each applicable Company Participating
Equityholder, respectively, hereunder, whether pursuant to testamentary disposition, the laws of descent and distribution or otherwise. 

  
 8 

 2.4 Treatment of Company Options. 

(a) At the Effective Time, each option to purchase Company Common Stock (a “Company Option”), whether vested or unvested, that is
outstanding as of immediately prior to the Effective Time will be cancelled in exchange for the right to receive, without interest, the amounts, if any, to which the holder of such Company Option is entitled pursuant to Section 2.6(b). After
the Effective Time, any such cancelled Company Option shall no longer be exercisable by the holder thereof for, or otherwise entitle the holder thereof to receive, shares of Company Common Stock (or any other equity security), but shall only entitle
such holder to the potential payments described in the first sentence of this Section 2.4(a). Section 2.4(a) of the Company Disclosure Schedule sets forth with respect to each Company Option the name of the holder, the number of shares
subject thereto, the grant date, exercise price and termination date. “Company Stock Plan” means the Company’s 2004 Stock Incentive Plan. 

(b) Prior to the Closing, the Company shall take all actions that are necessary to effect the transactions contemplated by Section 2.4(a)
and shall provide Buyer with evidence of the same. As soon as practicable following the execution of this Agreement, the Company shall mail to each holder of a Company Option a letter describing the treatment of such Company Option pursuant to this
Section 2.4. 
 2.5 Contingent Consideration. 

(a) “Contingent Consideration” means each of the following payments (each, a “Contingent Payment”): 

(i) The following payments based on [####] 

(A) [####] and 
 (B) [####]

 (ii) Subject to Section 2.5(b), the applicable Earnout Percentage of the Net Sales Payments, payable within [####] during the
Earnout Period in the United States, where “Net Sales Payments” means Net Sales of Lixivaptan Products sold in the United States by a Selling Person during such calendar quarter, and “Earnout Percentage” means: 

(A) [####] or 
 (B) [####] 

(iii)The following payments: 

(A) [####] 

  
 9 

 (B) [####] 

(C) [####] and 
 (D) [####] and

 (iv) [####] 
 (A) [####]
or: 
 (1) [####] or 
 (2)
[####] 
 (B) [####] and 
 (C)
[####] and 
 (v) [####] 
 For the avoidance
of doubt, any Sales Milestone may be satisfied in the same calendar quarter as any other Sales Milestone, and Sales Milestones are measured on a rolling four (4) consecutive calendar quarter basis. 

(b) Generic Competition. Upon the first commercial sale by any Person (other than Buyer, any of Buyer’s Affiliates or any other
Selling Person) of a product which received Regulatory Approval from the FDA of an abbreviated new drug application using a Lixivaptan Product as its reference product, the rate payable pursuant to Section 2.5(a)(ii)(A) or
Section 2.5(a)(ii)(B), as applicable, shall be reduced by 50%. 

  
 10 

 (c) Diligence. From and after the Effective Time, the Buyer shall, and shall cause
its Affiliates (including the Surviving Corporation) to, use Commercially Reasonable Efforts to obtain: (i) Marketing Approval for a Lixivaptan Product and commercialize Lixivaptan Product in the United States, and (ii) Regulatory Approval
in Europe for a Lixivaptan Product and commercialize Lixivaptan Product in Europe after receipt of such Regulatory Approval (each of clause (i) and (ii), a “Diligence Objective”). From and after the Effective Time, the Buyer shall
include in its agreements with Selling Persons (other than the Buyer and its Affiliates) provisions providing for efforts consistent with those required under this Section 2.5(c) by the Buyer and its Affiliates and shall use commercially
reasonable efforts to enforce such provisions. “Commercially Reasonable Efforts” as used in this Section 2.5(c) means, with respect to the efforts to be expended by the relevant Selling Person with respect to a Diligence Objective,
commercially reasonable efforts and resources that are of a substantially similar level of effort and resources that specialty pharmaceutical companies of size and resources comparable to those of the Buyer and its Affiliates, collectively,
typically exercise to accomplish a similar objective under similar circumstances with respect to drugs or drug candidates of similar commercial potential at a similar stage in their development or product lifecycle to that of Lixivaptan or the
relevant Lixivaptan Product, taking into account all relevant factors at the time such efforts are expended, which may include, as applicable, efficacy, safety, approved labeling, the competitiveness of alternative products in the marketplace, the
patent and other proprietary position of the drugs or drug candidates, the likelihood of Regulatory Approval and the expected financial return, profitability and commercial potential of the drugs or drug candidates, but disregarding any financial
obligations that are owed by the Buyer under this Agreement. 
 (d) Reporting. 

(i) Until the end of the Last Measured Earnout Period, the Buyer shall provide the Indemnification Representative, within 30 days following
January 1st and July 1st of each calendar year, with reasonably detailed semiannual written reports of the efforts of the Selling Persons to achieve each of the Diligence Objectives and their progress with respect thereto. 

(ii) With respect to the achievement of any of the Diligence Objectives, the Buyer shall provide written notice to the Indemnification
Representative of such occurrence no later than 5 Business Days after the Buyer or its Affiliates becoming aware of the the occurrence thereof and the Buyer shall use commercially reasonable efforts to become aware of such occurrence. 

(iii) Until the end of the Last Measured Earnout Period (the “Audit Period”), and thereafter as needed for any audit requested
during the Audit Period, the Buyer shall, and shall cause its Affiliates (including the Surviving Corporation) to, keep such complete and accurate books and records as may be necessary to ascertain the efforts of the Selling Persons to achieve the
Diligence Objectives and the amounts of any payments owed hereunder. From and after the Effective Time, the Buyer shall include in its agreements with Selling Persons (other than the Buyer and its Affiliates) providing for efforts consistent with
those required under 

  
 11 

 
this Section 2.5(d)(iii) by the Buyer and its Affiliates and shall use commercially reasonable efforts to enforce such provisions. During the Audit Period, (1) for each calendar quarter
in which a Contingent Payment comes due or with respect to which a Contingent Payment is calculated, the Buyer shall furnish the Indemnification Representative with a quarterly report of each Contingent Payment due during such quarter or calculated
with respect to such quarter, and all relevant information required to calculate such Contingent Payment, within 30 days after the end of each calendar quarter; and (2) for each other calendar quarter, the Buyer shall furnish the
Indemnification Representative with a written notice that no Contingent Payment is due. Each report pursuant to clause (1) shall include (A) Net Sales, on a
country-by-country basis, during such calendar quarter, (B) Annual Net Sales during each consecutive four calendar quarter period ending during such calendar
quarter, (C) the “gross to net” adjustments with respect to the calculation of Net Sales for such calendar quarter, on a country-by-country basis,
(D) if any deduction is made to Net Sales during such calendar quarter pursuant to clause (B) of the definition of Net Sales, an explanation of how the share of the excise tax deducted pursuant to such clause (B) was allocated to
Lixivaptan Product sales, and (E) the amount of each Approval Contingent Payment, Ex-US Payment and US Payment and the calculation thereof. 

(iv)Upon the written request of the Indemnification Representative, the Buyer shall, and shall cause its Affiliates (including the Surviving
Corporation) to, permit an independent public accountant (the “Independent Auditor”) selected by the Indemnification Representative and reasonably satisfactory to the Buyer, at the Company Participating Equityholders’ expense (to be
paid through the Indemnification Representative’s Fund or otherwise be caused to be paid by the Indemnification Representative solely on behalf of the Company Participating Equityholders), to have reasonable access solely in response to a
request made during the Audit Period, upon reasonable prior notice and during normal business hours, but no more than once during any calendar year, to inspect the records specified in Section 2.5(d)(iii) for the purpose of determining the
accuracy of the reports described in Section 2.5(d)(i) and Section 2.5(d)(iii). If the Independent Auditor concludes that any Contingent Payment was underreported for any reporting period by more than ten percent (10%), the Buyer shall promptly
reimburse the Indemnification Representative’s Fund or the Indemnification Representative, as applicable, for the reasonable out-of-pocket costs of the audit. From
and after the Effective Time, (a) the Buyer shall include in its agreements with Selling Persons (other than the Buyer and its Affiliates) provisions providing the Buyer with inspection rights consistent with those provided to the
Indemnification Representative under this Section 2.5(d)(iv), such inspections to be conducted by the Buyer at its expense through an Independent Auditor selected by the Buyer and reasonably satisfactory to the Indemnification Representative,
(b) the Buyer shall use commercially reasonable efforts to enforce such provisions, and (c) the Buyer shall promptly provide the Indemnification Representative with the results of any such inspection. 

(v) Any nonpublic records, data, results, reports and other information granted access to or disclosed by the Buyer, its Affiliates, or any
other Selling Person pursuant to this Section 2.5(d) shall be treated in accordance with Section 2.3(e)(ii). 
 (e) Overdue
Payments. Any Net Equityholder Distribution Amount not paid when due shall bear interest from the due date until the date of payment thereof at a rate of 10% per annum, compounded monthly, provided that interest shall not accrue at a rate that
exceeds the maximum rate permitted by applicable law. 

  
 12 

 (f) Definitions. For the purposes of this Agreement the following terms shall have
the following meanings: 
 (i) “Annual Net Sales” shall mean the Net Sales of Lixivaptan Products during any consecutive four
calendar quarter period ending prior to the expiration of the Last Measured Earnout Period. 
 (ii) “Approval” shall mean any of
the following indications for which the FDA grants Marketing Approval for a Lixivaptan Product: 
 (A) euvolemic hyponatremia
(“Approval A”), or 
 (B) euvolemic hyponatremia and hypervolemic hyponatremia, regardless of whether therapy is initiated inside
or outside of a hospital (“Approval B”); 
 where, “euvolemic hyponatremia” means hyponatremia associated with the
Syndrome of Inappropriate Anti-Diuretic Hormone secretion (SIADH), and “hypervolemic hyponatremia” means hyponatremia associated with Congestive Heart Failure (CHF), and Approval B shall be deemed received whether or not other forms of
hypervolemic hyponatremia (including hypervolemic hyponatremia associated with liver cirrhosis or hypervolemic hyponatremia in patients with acutely decompensated heart failure) are contraindicated or the subject of a warning in the label. 

(iii)“Earnout Period” shall mean, on a
country-by-country basis, the period commencing on the Closing Date and expiring upon the later of: (A) expiration of the last Valid Claim of any Lixivaptan Patent
Right in such country, or (B) the expiration of the market exclusivity period(s) granted by a Regulatory Authority for Lixivaptan Product in such country during which such Regulatory Authority will not grant Regulatory Approval of a product
(1) containing lixivaptan or the active moiety thereof, (2) using a Lixivaptan Product as its reference product, or (3) relying in any other manner on the regulatory data or filings for a Lixivaptan Product. 

(iv)“Europe” shall mean (A) the European Union, as constituted as of the relevant time, or (B) if the European Union is
disbanded, the countries on the continent of Europe. 
 (v) “Ex-US Payments” shall mean
any amounts (including Ex-US Net Sales Payments) actually received by the Buyer or any of its Affiliates (including the Surviving Corporation), calculated net of Taxes incurred by the Buyer or any of its
Affiliates (including the Surviving Corporation) in connection with the receipt of such amounts (which Taxes shall be deemed to be incurred at a combined rate of 42% (the “Assumed Tax Rate”)) and without duplication, after the Effective
Time from a Selling Person or its Affiliate (other than the Buyer or its Affiliates) in consideration: (A) for granting a Selling Person a license, sublicense or other similar rights with respect to a Lixivaptan Product (including a license or
sublicense of any Lixivaptan Patent Rights) outside the United States at any time prior to the end of the applicable Earnout Period, (B) for selling, assigning or transferring to a Selling Person any Company Intellectual Property or Third Party
Intellectual Property owned by or licensed to the Company or any of its Subsidiaries as of immediately prior to the Effective Time (including any Lixivaptan 

  
 13 

 
Patent Right), outside the United States at any time prior to the end of the applicable Earnout Period, or (C) for consummating an Ex-US Lixivaptan
Product Line Sale at any time prior to the end of the applicable Earnout Period; provided, that, with respect any sale of active ingredient in bulk, such amounts shall only include the net profit realized by Buyer and its Affiliates with respect to
such sale and the Buyer and the Indemnification Representative shall negotiate in good faith upon such a sale to agree upon the calculation thereof. For the avoidance of doubt, Ex-US Payments exclude the
portion of any payments made to Buyer or its Affiliates by a Selling Person in respect of the Buyer’s obligations to make a Sales Milestone Payment pursuant to this Agreement which portion is required to be paid by Buyer hereunder. 

(vi)“Ex-US Lixivaptan Product Line Sale” shall mean a sale, transfer or assignment to any
third party who is not an Affiliate of the Buyer of any material rights relating to any Lixivaptan Product outside the United States (including any applicable Lixivaptan Patent Rights, Regulatory Approvals or active ingredient in bulk), other than,
for the avoidance of doubt, sales of a Lixivaptan Product subject to royalties paid to Buyer or its Affiliates by the relevant Selling Person measured as a percentage of sales. 

(vii) [####] 
 (viii) [####]

 (ix)“Last Measured Earnout Period” shall mean the longest of (a) the Earnout Period in the United States, (b) the
Earnout Period in Europe, and (c) the Earnout Period in any country in which, at the end of the longer of the Earnout Period in the United States and the Earnout Period in Europe, any Lixivaptan Product is then being sold by a Selling Person.

 (x) “Lixivaptan Patent Right” shall mean the rights and interests in and to the patent or patent application owned by or
licensed to Company or any of its Subsidiaries as of immediately prior to the Effective Time which claims the composition of matter, use or method of manufacture of any Lixivaptan Product, or any Counterpart thereof, regardless of whether such
patent or patent application, as of the relevant time, is owned by or licensed to Buyer, any of its Affiliates (including the Surviving Corporation) or any Selling Person or Affiliate of a Selling Person. For purposes of this definition,
“Counterpart” shall mean (A) all divisionals, continuations, continuations-in-part of any patent application; (B) any patents (including certificates
of correction) issuing from a patent application; (C) any substitutions, extensions (including supplemental protection certificates), registrations, confirmations, reissues, re-examinations and renewals
of any of the patents and patent applications described in clause (A) or (B); and (D) foreign counterparts of any of the foregoing. 

(xi)“Lixivaptan Product” shall mean Lixivaptan or any pharmaceutical product containing lixivaptan as an active pharmaceutical
ingredient. 

  
 14 

 (xii) “Lixivaptan Product Line Buyer” shall mean any Person (other than Buyer and
its Affiliates) with whom Buyer or any of its Affiliates (including the Surviving Corporation), directly or indirectly consummates a Lixivaptan Product Line Sale. 

(xiii) “Marketing Approval” shall mean the approval by the FDA of a new drug application for a Lixivaptan Product. 

(xiv) “Net Sales” shall mean the gross amount invoiced for any sale of a Lixivaptan Product by a Selling Person to a non-Affiliate of the Selling Person or to an Affiliate of the Selling Person if such Affiliate is not itself a Selling Person, less the sum of the following deductions, in each case to the extent actually and
reasonably allowed or incurred in connection with such sale of such Lixivaptan Product in accordance with GAAP: 
 (A) reasonable and
customary trade, cash and quantity discounts off the invoiced price; 
 (B) all excise, sales and other consumption taxes and custom duties
to the extent included in the invoice price; provided, however, that, with respect to excise tax payments pursuant to Section 9008 of the Patient Protection and Affordable Care Act of 2010, any such deduction shall be limited to the
proportionate share of such excise tax equal to the proportionate share that the aggregate sales of such Lixivaptan Product by such Selling Person during the period to which such excise tax relates bears to the aggregate sales of all products by
such Selling Person subject to such excise tax; 
 (C) freight, insurance and other transportation charges to the extent included in the
invoice price; 
 (D) amounts repaid, credited or accrued, or allowances or adjustments made, by reason of returns, rejections, or recalls,
or because of chargebacks, retroactive price reductions, or billing errors; 
 (E) reasonable and customary launch discounts, stocking fees
and other discounts extended to wholesalers, distributors, chain drug stores and other third party organizations who distribute the Lixivaptan Product to pharmacies; 

(F) reasonable and customary rebates and chargebacks to pharmacy benefit managers, federal, state, or local governments (or their agencies or
purchasers), and managed health organizations (including Medicaid rebates); and 
 (G) any amounts actually written off or specifically
identified as uncollectible in accordance with GAAP; 
 solely to the extent the above deductions are taken in accordance with GAAP applicable to the
particular Selling Person. 

  
 15 

 Such amounts shall be determined from the books and records of the applicable Selling Person, maintained in
accordance with U.S. Generally Accepted Accounting Principles or other similar generally accepted accounting principles used by such Selling Person, consistently applied (“GAAP”). Sales of a Lixivaptan Product between or among the Selling
Persons and/or Affiliates of Selling Person for resale, or for use in the production or manufacture of Lixivaptan Product, shall not be included within Net Sales; provided, however, that any subsequent sale of a Lixivaptan Product by
any Selling Person or its Affiliates to another person or entity that is not a Selling Person shall be included within Net Sales. 
 Use of Lixivaptan
Product for promotional, sampling or compassionate use purposes or for use in clinical trials (but excluding post-approval clinical trials for which compensation is received by the Selling Person) shall not be considered in determining Net Sales.

 In the case of any sale of a Lixivaptan Product for value other than in an arm’s length transaction exclusively for cash, such as barter or
counter-trade, Net Sales shall be calculated based on the fair market value of the consideration received; provided that (i) sales to a third party distributor, wholesaler, group purchasing organization, pharmacy benefit manager or
retail chain customer who is a non-Affiliate of a Selling Person and does not need a license or sublicense in order to resell such Lixivaptan Product shall be considered sales to a non-Affiliate of the Selling Person and not to a sublicensee, and (ii) Net Sales by a Selling Person to a consignee non-Affiliate of the Selling Person are not recognized
as Net Sales by such Selling Person until the such consignee sells the Lixivaptan Product. 
 With respect to sales of a Lixivaptan Product invoiced in U.S.
dollars, Net Sales shall be expressed in U.S. dollars. With respect to sales not invoiced in U.S. dollars, Net Sales shall be converted to U.S. dollars using the applicable exchange rate as published by The Wall Street Journal, Eastern
Edition on the last Business Day of the calendar quarter in which such sales are made. 
 (xv) “Person” shall mean an individual,
corporation, partnership, limited liability company, joint venture, association, trust, unincorporated organization, or other entity. 

(xvi) “Pricing Approval” means the approval, agreement, determination or governmental decision establishing the price or level of
reimbursement for the relevant pharmaceutical or biological product, if required in the relevant country or jurisdiction prior to sale of such product in such country or jurisdiction 

(xvii) “Regulatory Approval” shall mean, with respect to a pharmaceutical or biological product and a country or jurisdiction, any
approval, registration, license or authorization that is required by the applicable governmental agency or authority to market and sell such pharmaceutical or biological product in such country or jurisdiction, including Pricing Approval. 

(xviii) “Regulatory Authority” shall mean any governmental agency or authority responsible for granting Regulatory Approvals for
pharmaceutical or biological products, as applicable, in a country or jurisdiction, including the FDA in the United States. 
 (xix)
“Sales Milestone” shall mean any of the First Sales Milestone, Second Sales Milestone, Third Sales Milestone or Fourth Sales Milestone. 

  
 16 

 (xx) “Sales Milestone Payment” shall mean any of the First Sales Milestone
Payment, Second Sales Milestone Payment, Third Sales Milestone Payment or Fourth Sales Milestone Payment. 
 (xxi) [####] 

(xxii) “Selling Person” shall mean the Buyer, each of its Affiliates (including the Surviving Corporation) and each
(A) licensee, sublicensee, assignee or other grantee of rights from Buyer or any of its Affiliates or another Selling Person to develop, market or sell a Lixivaptan Product, (B) buyer, transferee or assignee of any Company Intellectual
Property or Third Party Intellectual Property (for the sake of clarity to avoid double-counting, other than, in each case, rights granted with respect to any Lixivaptan Patent Right pursuant to clause (A)), from Buyer or its Affiliates (including
the Surviving Corporation) or another Selling Person, (C) a Lixivaptan Product Line Buyer, or (D) any Affiliate of the foregoing. 

(xxiii) [####] 
 (xxiv)
“US” or “United States” means the United States of America, its territories and possessions. 
 (xxv) “US
Lixivaptan Product Line Sale” shall mean a sale, transfer or assignment to any third party who is not an Affiliate of the Buyer of any material rights relating to any Lixivaptan Product in the United States (including any applicable Lixivaptan
Patent Rights or Regulatory Approvals), other than, for the avoidance of doubt, sales of a Lixivaptan Product subject to royalties paid to Buyer or its Affiliates by the relevant Selling Person measured as a percentage of sales. 

(xxvi) “US Payments” shall mean any amounts actually received by the Buyer or any of its Affiliates (including the Surviving
Corporation), calculated net of Taxes incurred by the Buyer or any of its Affiliates (including the Surviving Corporation) in connection with the receipt of such amounts (which Taxes shall be deemed to be incurred at the Assumed Tax Rate) and
without duplication, after the Effective Time from a Selling Person or its Affiliate (other than the Buyer or any of its Affiliates) in consideration: (A) for granting a Selling Person a license, sublicense or similar rights with respect to a
Lixivaptan Product (including a license or sublicense of any Lixivaptan Patent Rights) in the United States at any time prior to the end of the applicable Earnout Period, (B) for selling, assigning or transferring to a Selling Person any
Company Intellectual Property or Third Party Intellectual Property owned by or licensed to the Company or any of its Subsidiaries as of immediately prior to the Effective Time (for the sake of clarity to avoid double-counting, other than, in each
case, rights granted with respect to any Lixivaptan Patent Right pursuant to clause (A)) in the United States at any time prior to the end of the applicable Earnout Period, or (C) for consummating a US Lixivaptan Product Line Sale at

  
 17 

 
any time prior to the end of the applicable Earnout Period. For the avoidance of doubt, US Payments exclude (i) the portion of any payments made to Buyer or its Affiliates by a Selling
Person in respect of the Buyer’s obligation to make an Approval Contingent Payment or a Sales Milestone Payment pursuant to this Agreement which portion is required to be paid by Buyer hereunder, and (ii) Net Sales Payments. 

(xxvii) “Valid Claim” shall mean (A) a claim of an issued and unexpired patent which has not been permanently revoked or
declared unenforceable or invalid by an unreversed and unappealable or unreversed and unappealed decision of a court or other governmental agency or authority of competent jurisdiction and that is not admitted to be invalid or unenforceable through
reissue, disclaimer or otherwise (i.e., only to the extent the subject matter is disclaimed or is sought to be deleted or amended through reissue), or (B) a claim of a pending patent application, which claim has not been irretrievably revoked,
cancelled, withdrawn or abandoned, or finally disallowed without the possibility of appeal or refiling of such application (or which is not appealed or refiled within the time allowed for appeal); provided, however, that unless and until a pending
patent issues, “Valid Claim” will exclude any such pending claim in an application that has not been granted within five (5) years following the filing date for such application. 

2.6 Distributions. 
 (a)
Subject to Section 9.6, as and when a Product Payment is required to be made pursuant to Section 2.1(d), the Buyer shall, within the time period provided in Section 2.1(d) or 2.5, as applicable, take the following actions with respect
to such Product Payment: 
 (i) if less than an aggregate of [####] has previously been paid to Wyeth LLC, a Delaware limited liability
company formerly known as Wyeth (“Wyeth”) pursuant to the License Agreement dated March 15, 2004, between Wyeth and Cardiokine Biopharma, LLC, an Affiliate of the Company, as such agreement has been amended on or prior to the
Effective Time (the “Wyeth License”), then the Surviving Corporation shall instead pay to Wyeth pursuant to the Wyeth License an amount equal to the lesser of (A) the amount by which [####] exceeds the aggregate amounts previously
paid to Wyeth pursuant to the Wyeth License as contemplated by this Section 2.6(a)(i) or (B) the amount of such Product Payment, and such Product Payment shall be reduced by such amount in clause (A) or (B), as applicable (as reduced,
the “Post-Wyeth Product Payment”); 
 (ii) once [####] has been paid to Wyeth as contemplated by Section 2.6(a)(i), the
Surviving Corporation shall (A) first, pay to J.P. Morgan Securities, Inc. (“JPM”) any amount owed to JPM pursuant to the engagement letter between JPM and the Company as in effect at the Effective Time (the “JPM Engagement
Letter”) as a result of the payment of Post-Wyeth Product Payment and (B) second, pay to the Bonus Plan Participants such respective portions of such Post-Wyeth Product Payment as the Bonus Plan Participants are entitled to receive (taking
into account the aggregate amount any previous payments to the Bonus Plan Participants and any previously paid Net Equityholder Distribution Amounts) pursuant to the terms of the Bonus Plans, copies of which are attached to Section 3.2(f) of
the Disclosure Schedule, and such Post-Wyeth Product Payment shall be reduced by such amounts paid in clauses (A) and (B) above (as reduced, the “Post-Bonus Plan Product Payment”) and (c) third, pay the Post-Bonus Plan Product
Payment, subject to Section 2.7, to the party or account designated by the Indemnification Representative, for further distribution to the Company Participating Equityholders in accordance with Section 2.6(b); 

  
 18 

 (iii) after the Buyer or the Surviving Corporation has paid to the party or account
designated by the Indemnification Representative any amount required to be so paid pursuant to Section 2.6(a)(ii), the Buyer and the Surviving Corporation shall have no liability whatsoever to the Company Participating Equityholders for such
payment, nor shall the Buyer or the Surviving Corporation have any further liability whatsoever in respect of the payments to the Company Participating Equityholders contemplated by Section 2.6(b); and 

(iv) for the sake of clarity, the parties hereto recognize and acknowledge that any payments to Wyeth, JPM or the Bonus Plan Participants
contemplated by this Section 2.6(a) are being paid pursuant to the terms of the Company’s pre-existing contractual obligations to such parties that were entered into in the ordinary course of the
Company’s business and not as consideration to the holders of Company Stock and Company Options being paid under this Agreement. 
 (b)
Subject to Section 2.3(d), any payment made to the party or account designated by the Indemnification Representative pursuant to Sections 2.1(e), 2.1(f), 2.6(a)(ii) or 6.10(c) (any such payment, a “Net Equityholder Distribution
Amount”) shall be distributed as directed by the Indemnification Representative to the Company Participating Equityholders (other than the Bonus Plan Participants) as follows (provided, however, that any payments to employees or former
employees of the Company for which employment tax withholding is required shall be delivered to Buyer or the Surviving Corporation with explicit instructions as to whom the amounts should be paid for payment through Buyer or the Surviving
Corporation’s payroll processing service or system): 
 (i) if an amount less than the aggregate Series B Liquidation Amount (as
defined in, and calculated pursuant to, the Company’s Certificate of Incorporation as in effect immediately prior to the Effective Time) (such aggregate amount, the “Series B Liquidation Preference”) has previously been paid to the
holders of Company Series B Convertible Preferred Stock, then the Indemnification Representative shall cause to be paid to each holder of Company Series B Convertible Preferred Stock his, her or its Series B Pro Rata Share of the lesser of
(x) the amount by which the Series B Liquidation Preference exceeds the aggregate amounts previously paid to the holders of Company Series B Convertible Preferred Stock pursuant to this Section 2.6(b)(i) or (y) the total amount of
such Net Equityholder Distribution Amount; and 
 (ii) if the total amount of such Net Equityholder Distribution Amount exceeds the amount,
if any, required to be paid to the holders of Series B Convertible Preferred Stock pursuant to Section 2.6(b)(i)) (any such excess amount, a “Post-Series B Distribution Amount”), then such Post-Series B Distribution Amount shall be
paid to the holders of Company Stock and the holders of Company Options, as applicable, as follows: 

  
 19 

 (A) if less than the aggregate Series A Liquidation Amount (as defined in, and calculated
pursuant to, the Company’s Certificate of Incorporation as in effect immediately prior to the Effective Time) (such aggregate amount, the “Series A Liquidation Preference”) has previously been paid to the holders of Company Series A
Convertible Preferred Stock, then the Indemnification Representative shall cause to be paid to each holder of Company Series A Convertible Preferred Stock his, her or its Series A Pro Rata Share of the lesser of (x) the amount by which the
Series A Liquidation Preference exceeds the aggregate amounts previously paid to the holders of Company Series A Convertible Preferred Stock pursuant to this Section 2.6(b)(ii)(A) or (y) the total amount of such Post-Series B Distribution
Amount; and 
 (B) if the total amount of such Post-Series B Distribution Amount exceeds the amount, if any, required to be paid to the
holders of Company Series A Convertible Preferred Stock pursuant to Section 2.6(b)(ii)(A) (any such excess amount, a “Participation Amount”), then the Indemnification Representative shall cause to be paid to each holder of Company
Stock and, subject to the last sentence of this Section 2.6(b)(ii)(B), each holder of a Company Option, his, her or its Participating Pro Rata Share of such Participation Amount. Payments to each holder of a Company Option pursuant to
Section 2.6(b)(ii)(B) shall be reduced by the amount of the applicable exercise price of such Company Option until the aggregate exercise price of such Company Option has been satisfied in full, with each Company Option held by such holder
considered separately for purposes of this calculation. Any amount deducted from a payment to a holder of a Company Option pursuant to the immediately preceding sentence shall be added to the aggregate Participation Amount distributed pursuant to
this Section 2.6(b)(ii)(B) in connection with the same Product Payment with respect to which such deduction is made. 
 (c) The right of
the Company Participating Equityholders to receive any payment pursuant to this Section 2.6: (i) is solely a contractual right and is not a security for purposes of any federal or state securities Laws; (ii) will not be represented by any
form of certificate or instrument; and (iii) does not give the Company Participating Equityholders any dividend rights, voting rights, liquidation rights, preemptive rights or other rights common to holders of the equity securities of the
Surviving Corporation or its Affiliates. 
 2.7 Withholding Rights. Each of the Indemnification Representative (or the payment agent
or other agent designated by the Indemnification Representative), the Buyer and the Surviving Corporation shall (a) be entitled to deduct and withhold from the consideration otherwise payable pursuant to this Agreement to any of the
participants in the Company’s 2011 Employee Carve-Out Plan and Cash Bonus Plan for Amber Salzman (collectively, the “Bonus Plans”) in their capacities as such (the “Bonus Plan
Participants”), any holder of Company Stock or any holder of Company Options (any such Bonus Plan Participant or holder, a “Company Participating Equityholder”) such amounts as it is required to deduct and withhold with respect to the
making of such payment under the Internal Revenue Code of 1986, as amended (the “Code”), the regulations promulgated thereunder (the “Treasury Regulations”) or any other applicable state, local or foreign Tax law and
(b) furnish to each other such information as reasonably necessary to determine the amounts to be deducted and withheld pursuant to this Section 2.7. To the extent that amounts are so withheld by the Indemnification Representative (or its
agent), the Buyer or the Surviving Corporation, as the case may be, such withheld amounts shall be (i) remitted by the Indemnification Representative, the Buyer or the Surviving Corporation, as the case may be, to the applicable Governmental
Entity, and (ii) treated for all purposes of this Agreement as having been paid to such Company Participating Equityholder in respect of which such deduction and withholding was made by the Indemnification Representative (or its agent), the
Buyer or the Surviving Corporation, as the case may be. 

  
 20 

 ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY 

The Company represents and warrants to the Buyer and the Transitory Subsidiary that the statements contained in this Article III are true and
correct except as expressly set forth herein or in the disclosure schedule delivered by the Company to the Buyer and the Transitory Subsidiary and dated as of the date of this Agreement (the “Company Disclosure Schedule”). 

3.1 Organization, Standing and Power. The Company and each of its Subsidiaries is duly organized, validly existing and in good standing
under the laws of the state of its incorporation or organization, has all requisite corporate or limited liability company power and authority to own, lease and operate its properties and assets and to carry on its business as now being conducted
and is duly qualified to do business and is in good standing as a foreign corporation or limited liability company in each jurisdiction in which the character of the properties it owns, operates or leases or the nature of its activities makes such
qualification necessary, except for such failures to be so organized, qualified or in good standing, individually or in the aggregate, that would not reasonably be expected to have or result in a Company Material Adverse Effect. For purposes of this
Agreement, the term “Company Material Adverse Effect” means any material adverse change, event, circumstance or development with respect to, or material adverse effect on, the business, assets, financial condition or results of operations
of the Company and its Subsidiaries, taken as a whole; provided, however, that none of the following shall constitute, or shall be considered in determining whether there has occurred, a Company Material Adverse Effect: (a) any
change, event, circumstance, development or effect arising out of or resulting from actions contemplated by the parties in connection with this Agreement or the pendency or announcement of the transactions contemplated by this Agreement, including
actions of competitors, customers or suppliers or losses of employees; (b) any action taken at the request of or with the consent of the Buyer; (c) changes in the pharmaceutical or biotechnology industries, other than any such changes that
have a disproportionate impact on the Company; (d) changes in general economic or political conditions or the financing or capital markets in general in the United States or any country or region in the world, or changes in currency exchange
rates, other than any such changes that have a disproportionate impact on the Company; (e) any earthquakes, hurricanes, tsunamis, tornadoes, floods, mudslides, wild fires or other natural disasters, weather conditions and other force majeure
events in the United States or any other country or region in the world, sabotage, terrorism, military action or war (whether or not declared); or (f) the continued incurrence of losses by the Company or any of its Subsidiaries at a rate and in
an amount consistent past losses. 

  
 21 

 3.2 Capitalization. 

(a) The authorized capital stock of the Company consists of 172,839,076 shares of Company Common Stock and 157,000,000 shares of Company
Preferred Stock, of which 37,000,000 shares are designated as Company Series A Convertible Preferred Stock, 60,000,000 shares are designated as Company Series B Convertible Preferred Stock and 60,000,000 shares are designated as Company Series B1
Preferred Stock. As of the date of this Agreement, there are issued and outstanding 7,599,533 shares of Company Common Stock, 37,000,000 shares of Company Series A Convertible Preferred Stock, 50,000,000 shares of Company Series B Convertible
Preferred Stock and no shares of Company Series B1 Preferred Stock. The rights and privileges of each class of the Company’s capital stock are as set forth in the Company’s Certificate of Incorporation, a complete and accurate copy of
which has been provided to the Buyer, together with all amendments thereto. 
 (b) Section 3.2(b) of the Company Disclosure Schedule sets
forth a complete and accurate list, as of the date hereof, of all outstanding Company Options, indicating with respect to each such Company Option the name of the holder thereof, the number of shares of Company Common Stock subject to such Company
Option, the date of grant and the exercise price thereof. The Company has made available to the Buyer a complete and accurate copy of the Company Stock Plan. 

(c) Except (i) as set forth in this Section 3.2, (ii) as reserved for future grants under the Company Stock Plan, (iii) for the
conversion provisions set forth in the Company’s Certificate of Incorporation and (iv) the Amended and Restated Investors’ Rights Agreement, dated as of April 26, 2006, among the Company and the other parties named therein (the
“IRA”), (A) there are no equity securities of any class of the Company, or any security exchangeable into or exercisable for such equity securities, issued, reserved for issuance or outstanding and (B) there are no options, warrants,
equity securities, calls, rights, commitments or agreements of any character to which the Company is a party or by which the Company is bound obligating the Company to issue, exchange, transfer, deliver or sell, or cause to be issued, exchanged,
transferred, delivered or sold, additional shares of capital stock or other equity interests of the Company or any security or rights convertible into or exchangeable or exercisable for any such shares or other equity interests, or obligating the
Company to grant, extend, otherwise modify or amend or enter into any such option, warrant, equity security, call, right, commitment or agreement. Except as set forth in this Section 3.2, as of the date of this Agreement, the Company does not
have any outstanding stock appreciation rights, phantom stock, performance-based equity rights or similar equity rights or obligations. Except for (1) the Company’s Certificate of Incorporation, (2) the IRA, (3) the Amended and
Restated Co-Sale and First Refusal Agreement, dated as of April 26, 2006, among the Company and the other parties named therein and (4) the Amended and Restated Voting Agreement, dated as of
April 26, 2006, among the Company and the other parties named therein, neither the Company nor, to the Company’s Knowledge, any of its Affiliates, is a party to or is bound by any agreements with respect to the voting (including voting
trusts and proxies) or sale or transfer of any shares of capital stock or other equity interests of the Company. For purposes of this Agreement, the term “Affiliate” when used with respect to any party shall mean any person who is an
“affiliate” of that party within the meaning of Rule 405 promulgated under the Securities Act of 1933, as amended (the “Securities Act”). 

(d) All outstanding shares of Company Stock are, and all shares of Company Stock subject to issuance as specified in Sections 3.2(b) above,
upon issuance on the terms and conditions specified in the instruments pursuant to which they are issuable, will be, duly authorized, validly issued, fully paid and nonassessable and not subject to or issued in violation of any purchase option, call
option, right of first refusal, preemptive right or subscription right under any provision of the DGCL, the Company’s Certificate of Incorporation or By-laws or any agreement to which the Company is a
party or is otherwise bound. 

  
 22 

 (e) There are no obligations, contingent or otherwise, of the Company to repurchase, redeem
or otherwise acquire any shares of Company Stock or the capital stock of the Company. 
 (f) Section 3.2(f) of the Disclosure Schedule sets
forth (i) copies of each Bonus Plan, (ii) each holder of Company Common Stock’s “Common Pro Rata Share”, (iii) each holder of Company Series A Convertible Preferred Stock’s “Series A Pro Rata Share”, (iv) each
holder of Company Series B Convertible Preferred Stock’s “Series B Pro Rata Share”, (v) each holder of Company Stock’s “Participating Pro Rata Share” and (vi) each holder of a Company Option’s
“Participating Pro Rata Share”. 
 3.3 Subsidiaries. 

(a) Other than Cardiokine Biopharma, LLC, a Delaware limited liability company of which the Company is the sole member, and Cardiokine Ireland,
Limited, an Irish corporation that is a wholly owned subsidiary of the Company, the Company does not have any Subsidiaries or any capital stock, equity or other ownership interest in any other person. The Company has not agreed to, and is not
obligated to, directly or indirectly, make any future investment in or capital contribution or advance to any person. For purposes of this Agreement, the term “Subsidiary” means, with respect to any party, any corporation, partnership,
trust, limited liability company or other non-corporate business enterprise in which such party (or another Subsidiary of such party) holds stock or other ownership interests representing (a) more than
50% of the voting power of all outstanding stock or ownership interests of such entity or (b) the right to receive more than 50% of the net assets of such entity available for distribution to the holders of outstanding stock or ownership
interests upon a liquidation or dissolution of such entity. 
 (b) All of the issued and outstanding shares of capital stock of each of the
Company’s Subsidiaries that is a corporation are duly authorized, validly issued, fully paid, nonassessable and free of preemptive rights. All shares of each of the Company’s Subsidiaries that are held of record or owned beneficially by
the Company are held or owned free and clear of any restrictions on transfer (other than restrictions under the Securities Act and state securities laws), claims, security interests, options, warrants, rights, contracts, calls, commitments, equities
and demands. There are no outstanding or authorized options, warrants, rights, agreements or commitments to which the Company or any of its Subsidiaries is a party or which are binding on any of them providing for the issuance, disposition or
acquisition of any capital stock of any of the Company’s Subsidiaries. There are no outstanding stock appreciation, phantom stock or similar rights with respect to any of the Company’s Subsidiaries. There are no voting trusts, proxies or
other agreements or understandings with respect to the voting of any capital stock of any of the Company’s Subsidiaries. 

  
 23 

 3.4 Authority; No Conflict; Required Filings and Consents. 

(a) The Company has all requisite corporate power and authority to enter into this Agreement and, subject to the adoption of this Agreement by
the Company’s stockholders under the DGCL and the Company’s Certificate of Incorporation (the “Company Stockholder Approval”), to consummate the transactions contemplated by this Agreement. The execution and delivery of this
Agreement and the consummation of the transactions contemplated by this Agreement by the Company have been duly authorized by all necessary corporate action on the part of the Company, subject only to the required receipt of the Company Stockholder
Approval. This Agreement has been duly executed and delivered by the Company and constitutes the valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles (the “Bankruptcy and Equity Exception”). 

(b) The execution and delivery of this Agreement by the Company do not, and the consummation by the Company of the transactions contemplated by
this Agreement will not, (i) conflict with, or result in any violation or breach of, any provision of the Certificate of Incorporation or By-laws of the Company, (ii) conflict with, or result in any
violation or breach of, or constitute (with or without notice or lapse of time, or both) a default (or give rise to a right of termination, cancellation or acceleration of any obligation or loss of any material benefit) under, require a consent or
waiver under, require the payment of a penalty under or result in the imposition of any mortgage, security interest, pledge, lien, charge or encumbrance (“Liens”) on the assets of the Company or any of its Subsidiaries under any of the
terms, conditions or provisions of any Company Material Contract, or (iii) subject to obtaining the Company Stockholder Approval and compliance with the requirements specified in clauses (i) through (iii) of Section 3.4(c), conflict
with or violate any permit, concession, franchise, license, judgment, injunction, order, decree, statute, law, ordinance, rule or regulation applicable to the Company or any of its Subsidiaries or to the properties or assets of the Company or any of
its Subsidiaries, except in the case of clauses (ii) of this Section 3.4(b) for any such conflicts, violations, breaches, defaults, terminations, cancellations, accelerations, losses, penalties or Liens, and for any consents or waivers not
obtained, that, individually or in the aggregate, would not reasonably be expected to be material to the Company and its Subsidiaries, taken as a whole. 

(c) No consent, approval, license, permit, order or authorization of, or registration, declaration, notice or filing with, any court,
arbitrational tribunal, administrative agency or commission or other governmental or regulatory authority, agency or instrumentality (a “Governmental Entity”) is required by or with respect to the Company in connection with the execution
and delivery of this Agreement by the Company or the consummation by the Company of the transactions contemplated by this Agreement, except for (i) the filing of the Certificate of Merger with the Delaware Secretary of State and appropriate
corresponding documents with the appropriate authorities of other states in which the Company is qualified as a foreign corporation to transact business and (ii) such other consents, approvals, licenses, permits, orders, authorizations,
registrations, declarations, notices and filings which, if not obtained or made, would not reasonably be expected to have a Company Material Adverse Effect. 

  
 24 

 3.5 Financial Statements. 

(a) The Company has made available to the Buyer (i) its audited consolidated balance sheet as of December 31, 2010 (the “Company
Balance Sheet”) and the related audited consolidated statement of operations and cash flows for the year then ended and (ii) its unaudited consolidated balance sheet as of November 30, 2011 and the related unaudited consolidated
statement of operations and cash flows of the Company and its Subsidiaries for the eleven months then ended (all of the foregoing financial statements and any notes thereto are hereinafter collectively referred to as the “Company Financial
Statements”). The Company Financial Statements are accurate and complete in all material respects, are derived from and are in accordance with the books and records of the Company and its Subsidiaries and have been prepared in accordance with
GAAP consistently applied, and fairly present, in all material respects, the financial condition of the Company and its Subsidiaries at the dates therein indicated and the results of operations and cash flows of the Company and its Subsidiaries for
the periods therein specified in accordance with GAAP consistently applied, except that they do not contain footnotes and are subject to normal year end adjustments. 

(b) As of the Effective Time, the Liabilities of the Company will not exceed $2,000,000 in the aggregate and the Company will have no
Indebtedness. For the purposes of this Agreement, “Liabilities” shall mean any liabilities or obligations requiring the payment or expenditure of money, including those arising under Law, those relating to Taxes and those arising under any
Company Material Contract, other than Liabilities (i) pursuant to the Wyeth License, (ii) pursuant to the JPM Engagement Letter or (iii) arising by virtue of services or rights elected to be used by the Company after the Closing that
are not contractually required to be used. For purposes of this Agreement, “Indebtedness” shall mean (i) all outstanding indebtedness for borrowed money, whether current or funded, or secured or unsecured, (ii) all outstanding
obligations evidenced by bonds, monies, debentures, loan agreements, notes, letters of credit, bankers’ acceptances, mortgage notes, guarantees, or similar instruments, including, without limitation, the Contribution Note, (iii) all
outstanding indebtedness representing the balance deferred and unpaid of the purchase price of any property (including all outstanding capital lease, direct financing lease and/or vendor financing obligations) but excluding trade payables, if and to
the extent any of the foregoing would appear as a liability upon a balance sheet prepared in accordance with GAAP; (iv) all amounts representing accrued Taxes to the extent such amounts would appear as a liability upon a balance sheet prepared
in accordance with GAAP; (v) under any interest rate, currency or other hedging agreements, to the extent payable if terminated at the Closing; (vi) in the nature of guaranties or keep-well obligations, direct or indirect, in any manner,
of all or any part of any indebtedness of a kind referred to above of any other Person; and (vii) all accrued and unpaid interest or any breakage costs, premiums, fees, expenses, penalties or other amounts due with respect to the indebtedness
above. 
 3.6 Absence of Certain Changes. Except as expressly contemplated by this Agreement, since the date of the Company Balance
Sheet, (i) the Company and its Subsidiaries have conducted their business in the ordinary course in all material respects and in a manner consistent in all material respects with prior practice and (ii) there has not been any change,
event, circumstance, development that has had or would reasonably be expected to have a Company Material Adverse Effect. Since the date of the Company Balance Sheet there has not been any other action or event that would have required the consent of
the Buyer pursuant to Section 5.1 of this Agreement had such action or event occurred after the date of this Agreement. 

  
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 3.7 No Undisclosed Liabilities. Except (a) as disclosed in Section 3.7 of
the Company Disclosure Schedule, (b) as reflected in the Company Balance Sheet and (c) for debts, liabilities, obligations, claims, losses, damages, expenses, deficiencies and indebtedness incurred in the ordinary course of business after
the date of the Company Balance Sheet or obligations which do not require the expenditure of money arising under contracts or agreements (other than arising by virtue of services or rights elected to be used by the Company after the Closing that are
not contractually required to be used), the Company and its Subsidiaries do not have any direct or indirect debts, liabilities, obligations, claims, losses, damages, expenses, deficiencies or indebtedness of any kind, whether accrued or fixed,
absolute or contingent, matured or unmatured, determined or determinable, known or unknown, including those arising under Law and those relating to Taxes. 

3.8 Taxes. 
 (a) Each of
the Company and its Subsidiaries has filed all material Tax Returns that it was required to file, and all such Tax Returns were correct and complete in all material respects. The Company or the applicable Subsidiary has paid on a timely basis all
Taxes due and payable by it whether or not such Taxes are shown to be due on a Tax Return. For purposes of this Agreement, (i) “Taxes” means all taxes, charges, fees, levies or other similar assessments or liabilities in the nature of a
tax, including income, gross receipts, ad valorem, premium, value-added, excise, real property, personal property, sales, use, services, transfer, withholding, employment, payroll and franchise taxes imposed by any Governmental Entity, and any
interest, fines, penalties, assessments or additions to tax resulting from, attributable to or incurred in connection with any tax or any contest or dispute thereof and (ii) “Tax Returns” means all reports, returns, declarations,
statements or other information required to be supplied to a Governmental Entity in connection with Taxes. All material Taxes that each of the Company and its Subsidiaries was required by law to withhold or collect have been duly withheld or
collected and, to the extent required, have been properly paid to the appropriate Governmental Entity and all forms required to be prepared in connection therewith have been properly completed and timely provided to or filed with the appropriate
Person. 
 (b) The Company has made available to the Buyer correct and complete copies of all U.S. federal income Tax Returns, examination
reports and statements of deficiencies assessed against or agreed to by any of the Company and its Subsidiaries since January 1, 2007. No examination or audit of any Tax Return of the Company or any of its Subsidiaries by any Governmental
Entity is currently in progress or, to the Company’s Knowledge, threatened or contemplated. None of the Company nor any of its Subsidiaries has been informed in writing by any jurisdiction that the jurisdiction believes that the Company or such
Subsidiary was required to file any Tax Return that was not filed. No Governmental Entity has asserted by written notice to the Company or any of its Subsidiaries any deficiency or claim for any amount of additional Taxes that have not been paid.

  
 26 

 (c) None of the Company nor any of its Subsidiaries (i) has ever been a member of a
group of corporations with which it has filed (or been required to file) consolidated, combined or unitary Tax Returns or (ii) is a party to or bound by any Tax indemnity, Tax sharing or Tax allocation agreement. 

(d) None of the Company nor any of its Subsidiaries: (i) has made any payments, is obligated to make any payments, or is a party to any
agreement that could obligate it to make any payments that will be treated as an “excess parachute payment” under Section 280G of the Code; or (ii) has any actual or potential liability for any Taxes of any Person (other than the
Company or such Subsidiary as applicable) under Treasury Regulation Section 1.1502-6 (or any similar provision of law in any jurisdiction), or as a transferee or successor, by contract or otherwise. 

(e) There are no Liens with respect to Taxes upon any of the assets or properties of the Company or any of its Subsidiaries, other than with
respect to Taxes not yet due and payable or Taxes being contested in good faith by appropriate proceedings to the extent that reserves for such contested Taxes have been established on the books of the Company or such Subsidiary. 

(f) There are no adjustments under Section 481 of the Code (or any similar adjustments under any provision of the Code or the
corresponding foreign, state or local Tax laws) that are required to be taken into account by the Company or any of its Subsidiaries in any period ending after the Closing Date by reason of a change in method of accounting in any taxable period
ending on or before the Closing Date or as a result of the consummation of the transactions contemplated by this Agreement. 
 (g) None of
the Company nor any of its Subsidiaries has distributed to its shareholders or security holders stock or securities of a controlled corporation, nor has stock or securities of the Company or any of its Subsidiaries been distributed, in a transaction
to which Section 355 or Section 361 of the Code applies or in a distribution that could otherwise constitute part of a “plan” or “series of related transactions” (within the meaning of Section 355(e) of the Code)
that includes the transactions contemplated by this Agreement. 
 (h) None of the Company nor any of its Subsidiaries has engaged in a
“reportable transaction” as set forth in Treasury Regulation Section 1.6011-4(b), or any transaction that is the same as or substantially similar to one of the types of transactions that the IRS
has determined to be a tax avoidance transaction and identified by notice, regulation or other form of published guidance as a “listed transaction” as set forth in Treasury Regulation
Section 1.6011-4(b)(2). 
 (i) None of the Company nor any of its Subsidiaries has executed or
entered into a closing agreement pursuant to Section 7121 of the Code or any predecessor provision thereof or any similar provision of state, local or foreign law that would have continuing effect after the Closing. 

(j) None of the Company nor any of its Subsidiaries has (i) any application pending with any Governmental Entity requesting permission for
any changes in accounting methods, or (ii) been the subject of a Tax ruling that would have continuing effect after the Closing Date. 

  
 27 

 (k) No transaction contemplated by this Agreement would terminate or otherwise alter the
application of any material Tax holiday or other favorable Tax arrangement or require the recapture or payment of material Taxes covered by any such Tax holiday or other favorable Tax arrangement. 

(l) None of the Company nor any of its Subsidiaries will be required to include any item of income in, or exclude any item of deduction from,
taxable income for any taxable period (or portion thereof) ending after the Closing Date as a result of any (i) installment or open transaction made by the Company or any of its Subsidiaries on or prior to the Closing Date or (ii) prepaid
amount received on or prior to the Closing Date. 
 (m)No extensions or waivers of statutes of limitations have been given or requested with
respect to any Taxes of the Company or any of its Subsidiaries that are still in effect. 
 3.9 Owned and Leased Real Properties. 

(a) None of the Company nor any of its Subsidiaries own, or have owned, any real property. 

(b) Section 3.9(b) of the Company Disclosure Schedule sets forth a complete and accurate list of all real property leased or subleased by the
Company or any of its Subsidiaries (collectively “Company Leases”) and the location of the premises. None of the Company nor any of its Subsidiaries is, nor, to the Company’s Knowledge, is any other party to any Company Lease, in
material default under any of the Company Leases, nor, to the Company’s Knowledge, has any event occurred which, with notice or the passage of time, or both, would give rise to such a material default. None of the Company nor any of its
Subsidiaries lease or sublease any real property to any person. The Company has made available to the Buyer complete and accurate copies of all Company Leases together with all amendments, modifications and supplemental agreements thereto. The
Company has not assigned, transferred, conveyed, mortgaged, deeded in trust or encumbered any interest in any Company Lease. 
 3.10
Intellectual Property. 
 (a) To the Company’s Knowledge, the Intellectual Property owned by the Company, together with the
Intellectual Property owned by any Subsidiary of the Company (the “Company Intellectual Property”), and the Intellectual Property licensed or sublicensed to the Company or which the Company otherwise possesses legally enforceable rights to
use, together with the Intellectual Property licensed or sublicensed to any Subsidiary of the Company or which any Subsidiary of the Company otherwise possesses legally enforceable rights to use (the “Third Party Intellectual Property”),
constitutes all Intellectual Property material to or otherwise used in the conduct of the business of the Company and its Subsidiaries, taken as a whole, as currently conducted (in each case excluding generally commercially available, off-the-shelf software programs). For purposes of this Agreement, the term “Intellectual Property” means (i) patents, trademarks, service marks, trade names,
domain names, copyrights, designs and trade secrets, (ii) applications for and registrations of such patents, trademarks, service marks, trade names, domain names, copyrights and designs, (iii) proprietary or confidential processes,
formulae, 

  
 28 

 
methods, schematics, technology, know-how and computer software programs and applications, (iv) other proprietary or confidential information, and
(v) any and all intellectual property rights and similar proprietary rights in any jurisdiction, including all rights to sue for past, present and future infringement or misappropriation of any of the items in clauses (i), (ii), (iii) and (iv).
The Company is the exclusive owner of the Company Intellectual Property and, to the Company’s Knowledge, possesses valid and enforceable rights to use the Third Party Intellectual Property, in each case, free and clear of all Liens other than
the licenses and rights described or set forth in the Intellectual Property Agreements. Each issued patent, registered copyright, and registered and material unregistered trademark, service mark, trade name and domain name in the Company
Intellectual Property, each issued patent, registered copyright, and registered and material unregistered trademark, service mark, trade name and domain name in the Third Party Intellectual Product which is prosecuted by, and exclusively licensed
to, the Company or any of its Subsidiaries, and, to the Company’s Knowledge, each other issued patent, registered copyright, and registered and material unregistered trademark, service mark, trade name and domain name in the Third Party
Intellectual Product exclusively licensed to the Company or any Subsidiary is subsisting and, to the Company’s Knowledge after review of the files of the Company and its Subsidiaries and the inquiry of the Company’s US outside counsel with
a reasonable basis for knowledge, valid and enforceable. None of the Company Intellectual Property or, to the Company’s Knowledge, Third Party Intellectual Property, is subject to any outstanding consent agreement, settlement, ruling, order,
writ, judgment, injunction or decree restricting the use of the Company Intellectual Property or Third Party Intellectual Property or that would impair the validity or enforceability of the issued patents, registered copyrights, and registered and
material unregistered trademarks, service marks, trade names and domain names in the Company Intellectual Property or Third Party Intellectual Property. 

(b) The execution and delivery of this Agreement by the Company and the consummation by the Company of the Merger will not result in the breach
of, or create on behalf of any third party the right to terminate or modify, (i) any license, sublicense or other agreement relating to any Company Intellectual Property (the “Company Intellectual Property Agreements”), or
(ii) any license, sublicense or other agreement as to which the Company or any of its Subsidiaries is a party and pursuant to which the Company or any of its Subsidiaries is authorized to use any Third Party Intellectual Property (the
“Third Party Intellectual Property Agreements”, and together with the Company Intellectual Property Agreements, the “Intellectual Property Agreements”), excluding generally commercially available,
off-the-shelf software programs. Section 3.10(b)(i) of the Company Disclosure Schedule sets forth a complete and accurate list of all (A) patents and patent
applications, (B) registered and material unregistered trademarks, service marks, trade names, domain names, and applications thereto, (C) registered copyrights and copyright applications, and (D) material software that, in each case,
are owned by the Company or any of its Subsidiaries, and Section 3.10(b)(ii) of the Company Disclosure Schedule sets forth a complete and accurate list of all (W) patents and patent applications (or a general description with respect to
patents or patent applications which are not prosecuted or maintained by Company or any of its Subsidiaries), (X) registered and material unregistered trademarks, service marks, trade names, domain names, and applications thereto,
(Y) registered copyrights and copyright applications, and (Z) material software that, in each case, are exclusively licensed to the Company or any of its Subsidiaries. Schedule 3.10(b)(iii) of the Company Disclosure Schedule sets forth a
complete and accurate list of all Intellectual Property Agreements relating to patents, patent applications, registered copyrights, material trade secrets and know-how, registered and material unregistered
trademarks, service marks, trade names, domain names, and applications therefor, excluding (1) licenses of generally commercially available, off-the-shelf software
programs with annual license, maintenance, support and other fees of less than $5,000 individually and (2) employment agreements and confidential disclosure agreements. 

  
 29 

 (c) To the Company’s Knowledge, no third party is infringing or violating or
misappropriating in any material respect any of the Company Intellectual Property or any Third Party Intellectual Property exclusively licensed to the Company or any of its Subsidiaries. The Company and its Subsidiaries have taken reasonable
measures to maintain in confidence all trade secrets and confidential information comprising a part of the Company Intellectual Property or any Third Party Intellectual Property exclusively licensed to the Company or any of its Subsidiaries,
including requiring all current and former employees of, and individuals who are consultants and contractors of, the Company or any of its Subsidiaries, and any other persons with access to such trade secrets or confidential information, to execute
a confidentiality or similar agreement and, to the Company’s Knowledge, there has not been any breach by any such party to any such agreement. 

(d) Without giving effect to 35 U.S.C. § 271(e)(1) and any other laws of similar effect in any jurisdiction, to the Company’s
Knowledge after review of the files of the Company and its Subsidiaries and the inquiry of the Company’s US outside counsel with a reasonable basis for knowledge, the conduct of the business of the Company and its Subsidiaries, taken as a
whole, as currently conducted does not infringe or violate or constitute a misappropriation of any Intellectual Property of any third party. For the past six (6) years, neither the Company nor any of its Subsidiaries has received any written
claim or notice alleging any such infringement, violation or misappropriation. Neither the Company nor any of its Subsidiaries has been notified in writing, or, to the Company’s Knowledge, in any other form, (i) that any action, suit,
proceeding, claim, arbitration, investigation or other legal proceeding has been asserted, is pending, or is threatened against the Company or any of its Subsidiaries alleging that the conduct of the business of the Company and its Subsidiaries as
currently conducted infringes, misappropriates or otherwise violates the Intellectual Property of any third party, (ii) that any issued patent, registered copyright, and registered and material unregistered trademark, service mark, trade name,
domain name, or other type of Intellectual Property which is by its nature enforceable, in the Company Intellectual Property or Third Party Intellectual Property is invalid or unenforceable, or (iii) that challenges the ownership by the Company
or any of its Subsidiaries of any Company Intellectual Property or the right to use by Company or any of its Subsidiaries of any Company Intellectual Property and Third Party Intellectual Property. 

(e) No current or former employee, consultant or contractor of the Company or any of its Subsidiaries owns any rights in or to any of the
Company Intellectual Property and all current and former employees and individual consultants and contractors of the Company or any of its Subsidiaries have executed an agreement assigning to the Company or one of its Subsidiaries all such
individual’s rights in or to any Company Intellectual Property. 

  
 30 

 (f) To the Company’s Knowledge, there has been no misappropriation of material trade
secrets or other material confidential or proprietary information of the Company or any of its Subsidiaries by any person, and to the Company’s Knowledge, no current or former employee, consultant or contractor of the Company or any of its
Subsidiaries has misappropriated any trade secrets or other confidential or proprietary information of any other person in the course of such performance as an employee, consultant or contractor of the Company or its Subsidiary. 

(g) (A) Neither the Company nor any of its Subsidiaries has granted any license or other right to any third party with respect to the Company
Intellectual Property and Third Party Intellectual Property other than the Intellectual Property Agreements; (B) the Company has made available to Buyer a complete and accurate copy of each Intellectual Property Agreement listed in
Section 3.10(b)(iii) of the Company Disclosure Schedule; and (C) each Intellectual Property Agreement is in full force and effect with respect to the Company or the applicable Subsidiary and, to the Company’s Knowledge, with respect
to each other party thereto, and is a valid and binding obligation of the Company or the applicable Subsidiary and, to the Company’s Knowledge, of each other party thereto, enforceable against it in accordance with its terms (subject to the
Bankruptcy and Equity Exception and except to the extent it has previously expired in accordance with its terms) and neither the Company or the applicable Subsidiary is, nor to the Company’s Knowledge any other party thereto is, in material
violation of or material default under any Intellectual Property Agreement. 
 (h) No university or Governmental Entity has sponsored any
research or development conducted by the Company or any of its Subsidiaries or, to the Company’s Knowledge, has any claim of right to or ownership of or other Lien on any Company Intellectual Property or any Third Party Intellectual Property
exclusively licensed to the Company or any of its Subsidiaries. 
 3.11 Contracts. 

(a) Section 3.11(a) of the Company Disclosure Schedule sets forth a complete and accurate list as of the date of this Agreement of the
following contracts and agreements to which the Company or any of its Subsidiaries is a party and under which the Company or any of its Subsidiaries has any remaining rights or obligations (collectively, the “Company Material Contracts”):

 (i) any Intellectual Property Agreement, excluding generally commercially available, off-the-shelf software programs with annual license, maintenance, support and other fees of less than $5,000 individually; 

(ii) any agreement (or group of related agreements) for the lease of personal property from or to third parties providing for remaining unpaid
lease payments as of the date hereof in excess of $50,000; 
 (iii) any agreement (or group of related agreements) for the purchase of raw
materials, inventory, or finished goods or for the receipt of services under which the Company or any of its Subsidiaries expects to receive or pay more than the sum of $50,000; 

(iv) any agreement for capital expenditures or the acquisition or construction of fixed assets; 

  
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 (v) any agreement concerning the establishment or operation of a partnership, joint
venture, limited liability company or other business organization; 
 (vi) any agreement to which a Governmental Entity is a party; 

(vii) any agreement containing covenants of the Company or any of its Subsidiaries not to (or otherwise restricting or limiting the ability of
the Company or any of its Subsidiaries to) compete in any line of business or geographic or therapeutic area, including any covenant not to compete with respect to the manufacture, marketing, distribution or sale of any product or product line; 

(viii) any agreement (or group of related agreements) under which the Company or any of its Subsidiaries has created, incurred, assumed or
guaranteed (or may create, incur, assume or guarantee) Indebtedness (including capitalized lease obligations); 
 (ix) any agreement under
which the Company or any of its Subsidiaries has made advances or loans to any other person; 
 (x) any agreement for the disposition of any
significant portion of the assets of the Company or its Subsidiaries; 
 (xi) any agreement for the acquisition of any business or any
corporation, partnership, joint venture, limited liability company, association or other business organization or division thereof, except purchases of inventory, supplies and raw materials in the ordinary course of business; 

(xii) any powers of attorney; 

(xiii) any employment, severance, separation or consulting agreement with any executive officer or key employee of the Company or any of its
Subsidiaries other than those that are terminable by the Company or the applicable Subsidiary on no more than 60 days’ notice without material liability or financial obligation to the Company or any of its Subsidiaries; 

(xiv) any agreement between the Company or any of its Subsidiaries, on one hand, and any of the Company’s stockholders, directors,
officers or employees, on the other; and 
 (xv) any other agreement (or group of related agreements) involving unpaid amounts of more than
$50,000 or not entered into in the ordinary course of business. 
 (b) The Company has made available to the Buyer a complete and accurate
copy of each Company Material Contract, together with any amendments, exhibits and schedules thereto. Each Company Material Contract is in full force and effect with respect to the Company or the applicable Subsidiary and, to the Company’s
Knowledge, with respect to each other party thereto, and is a valid and binding obligation of each party thereto, subject to the Bankruptcy and Equity Exception and except to the extent it has previously expired in accordance with its terms. None of
the Company nor any of its Subsidiaries nor, to the Company’s Knowledge, any other party to any Company Material Contract is in material violation of or in material default under 

  
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any Company Material Contract, nor does there exist any condition which, upon the passage of time or the giving of notice or both, would reasonably be expected to (i) cause such a material
violation of or material default or (ii) give any third party (A) the right to declare a default or exercise any remedy under any Company Material Contract, (B) the right to accelerate the maturity or performance of any obligation of
the Company or a Subsidiary under any Company Material Contract, (C) the right to cancel, terminate or materially modify any Company Material Contract or (D) a right to a penalty under any Company Material Contract. 

3.12 Litigation. There is, and in the past 5 years there has been, no action, suit, proceeding, claim, arbitration, investigation or
other judicial, administrative or arbitral proceeding (any of the foregoing, an “Action”) pending, or to the Company’s Knowledge, threatened, against the Company or any of its Subsidiaries or their assets. There are no, and in the
past 5 years there has not been, material judgments, orders, writs, injunctions or decrees outstanding against the Company or any of its Subsidiaries. 

3.13 Environmental Matters. 

(a) The Company and each of its Subsidiaries is in material compliance with, and is not in material violation of, and since January 1,
2007, has been in material compliance with all applicable Environmental Laws. The Company and each of its Subsidiaries possesses and is in material compliance with all permits, approvals, registrations, licenses and authorizations required under
applicable Environmental Law (“Environmental Permits”) for its operations as currently conducted, all applications for renewal of such Environmental Permits have been timely made, and no loss or expiration of any such Environmental Permits
is pending or, to the Company’s Knowledge, threatened. 
 (b) To the Company’s Knowledge, the properties operated by the Company
and each of its Subsidiaries (including soils, groundwater, surface water, buildings or other structures) are not contaminated with any Hazardous Substances in an amount or concentration that would give rise to an obligation to act or disclose that
condition under any Environmental Law. 
 (c) None of the Company nor any of its Subsidiaries has received a written notice that it is or may
be subject to any material liability for any Hazardous Substance disposal or contamination on the property of any third party. 
 (d) None of
the Company nor any of its Subsidiaries has released any Hazardous Substance into the indoor or outdoor environment except (i) in compliance with law or (ii) in an amount or concentration that would not reasonably be expected to give rise
to any material liability or obligation under any Environmental Law. 
 (e) None of the Company nor any of its Subsidiaries is subject to any
orders, decrees or injunctions by any Governmental Entity addressing liability under any Environmental Law. 

  
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 (f) The Company has made available to the Buyer correct and complete copies and results of
any audits, reports, studies, analyses, tests or monitoring in the control or custody of the Company or any of its Subsidiaries pertaining to compliance by the Company and its Subsidiaries with Environmental Law and to any actual or potential
releases of Hazardous Substances at, under, about or migrating to or from, the real property currently or formerly owned, leased or operated by the Company and its Subsidiaries. 

(g) For purposes of this Agreement, the term “Environmental Law” means any foreign, international, multinational, federal, state,
county, provincial or local law (including common law), statute, directive, rule or regulation relating to the environment, the protection of human health from exposure to Hazardous Substances, or occupational health and safety, including any
statute, regulation, administrative decision or order pertaining to (i) treatment, storage, disposal, recycling, generation or transportation of industrial, toxic, infectious, biological, radioactive or hazardous materials or substances or
solid, medical, mixed or hazardous waste; (ii) air, water or noise pollution; (iii) groundwater or soil contamination; (iv) the release or threatened release into the environment of industrial, toxic, infectious, biological,
radioactive or hazardous materials or substances, or solid, medical, mixed or hazardous waste, including emissions, discharges, injections, spills, escapes or dumping of pollutants, contaminants or chemicals; (v) the protection of wild life,
marine life and wetlands, including all endangered and threatened species; (vi) storage tanks, vessels, containers, abandoned or discarded barrels and other closed receptacles; (vii) health and safety of employees and other persons; or
(viii) manufacturing, processing, using, distributing, treating, storing, disposing, transporting or handling of materials regulated under any law as pollutants, contaminants, toxic, infectious, biological, radioactive or hazardous materials or
substances or oil or petroleum products or solid, medical, mixed or hazardous waste. 
 (h) For purposes of this Agreement, the term
“Hazardous Substance” means: (i) any substance that is regulated or which falls within the definition of a “hazardous substance,” “hazardous waste,” “contaminant,” “pollutant,” “hazardous
material” or words of similar import pursuant to any Environmental Law; or (ii) any petroleum product, constituent or by-product, asbestos-containing material, polychlorinated biphenyls, radioactive
materials or radon. 
 (i) The parties agree that the only representations and warranties of the Company in this Agreement as to any
environmental matters or any other obligation or liability with respect to Hazardous Substances or materials of environmental concern are those contained in Sections 3.5, 3.7 and 3.13. Without limiting the generality of the foregoing, the Buyer
specifically acknowledges that the representations and warranties contained in Sections 3.16 and 3.17 do not relate to environmental matters. 

3.14 Employee Benefit Plans. 

(a) Section 3.14(a) of the Company Disclosure Schedule sets forth a complete and accurate list, as of the date of this Agreement, of all
Employee Benefit Plans maintained, or contributed to, by the Company, its Subsidiaries or any of the ERISA Affiliates of the Company or any of its Subsidiaries for the benefit of any current or former employee, officer, director or independent
contractor of the Company or its Subsidiaries or under which the Company, its Subsidiaries or any ERISA Affiliate has any liability with respect to any current or former employee, officer, director or independent contractor (together, the
“Company Employee Plans”). For purposes of this Agreement, the following terms shall have the following meanings: (i) “Employee Benefit Plan” means any “employee pension benefit plan” (as defined in Section

  
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3(2) of ERISA), any “employee welfare benefit plan” (as defined in Section 3(1) of ERISA), and all other pension, retirement, supplemental retirement, deferred compensation, excess
benefit, profit sharing, bonus, phantom stock, incentive, stock purchase, stock ownership, stock option, stock appreciation right, profits interest, employment, severance, salary continuation, termination, change-of-control, health, life, disability, group insurance, vacation, holiday and material fringe benefit plan, agreement or arrangement, whether written or oral; (ii) “ERISA” means the Employee
Retirement Income Security Act of 1974, as amended; and (iii) “ERISA Affiliate” means any entity that is a member of (A) a controlled group of corporations (as defined in Section 414(b) of the Code) or (B) a group of trades
or businesses under common control (as defined in Section 414(c) of the Code), any of which includes the Company or its Subsidiaries. 

(b) With respect to each Company Employee Plan, the Company has made available to the Buyer a complete and accurate copy of (i) such
Company Employee Plan, including all amendments thereto, (ii) the three most recently filed annual reports (Form 5500 and all schedules thereto); (iii) the most recent Internal Revenue Service (the “IRS”) determination or opinion
letter and each currently pending application to the IRS for a determination letter, (iv) the three most recent summary annual reports, actuarial reports, financial statements and trustee reports and (v) all records, notices and filings
concerning IRS or Department of Labor audits or investigations, “prohibited transactions” within the meaning of Section 406 of ERISA or Section 4975 of the Code and “reportable events” within the meaning of section 4043
of ERISA, and (vi) all current trust agreements, group annuity contracts and summary plan descriptions (and each summary of material modifications thereto), if any, relating to such Company Employee Plans. 

(c) Each Company Employee Plan is being administered in all material respects in accordance with (i) ERISA, (ii) the Code, (iii) all
other applicable laws and the regulations thereunder and (iv) its terms. 
 (d) With respect to the Company Employee Plans, there are no
benefit obligations for which material contributions have not been made or properly accrued to the extent required by GAAP. 
 (e) Each
Company Employee Plan that is intended to be qualified under Section 401(a) of the Code has received a determination or opinion letter from the IRS to the effect that such Company Employee Plan is qualified and the plans and trusts related
thereto are exempt from federal income Taxes under Sections 401(a) and 501(a), respectively, of the Code or the period for obtaining such letter is still open. No such determination or opinion letter has been revoked and revocation has not been
threatened, and no such Company Employee Plan has been amended since the date of its most recent determination or opinion letter or application therefor in any respect that would adversely affect its qualification. No act or omission has occurred
with respect to any such Company Employee Plan that would reasonably be expected to adversely affect its qualification or materially increase its cost. 

(f) Neither the Company, its Subsidiaries nor any of the ERISA Affiliates of the Company or any of its Subsidiaries has (i) within the
past six (6) years maintained an Employee Benefit Plan that was ever subject to Section 412 of the Code or Title IV of ERISA or (ii) within the past six (6) years been obligated to contribute to a “multiemployer plan”
(as defined in Section 4001(a)(3) of ERISA). 

  
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 (g) None of the Company Employee Plans promises or provides retiree medical or other retiree
welfare benefits to any person, except as required by (i) applicable law or (ii) the terms of any plan qualified under Section 401(a) of the Code. 

(h) Except as set forth on Section 3.14(h) of the Company Disclosure Schedule, none of the Company nor any of its Subsidiaries is a party
to any agreement with any director, executive officer or other key employee of the Company or such Subsidiary the benefits of which are contingent, or the terms of which are altered, upon the occurrence of a transaction involving the Company of the
nature of any of the transactions contemplated by this Agreement or providing severance benefits or other benefits after the termination of employment of such director, executive officer or employee. 

(i) Each Company Plan that is a nonqualified deferred compensation plan (as defined in Code Section 409A) complies in both form and
operation with the requirements of Code Section 409A so that no amounts that have been paid pursuant to any such Company Employee Plan are subject to tax under Section 409A of the Code. 

(j) Neither the Company, its Subsidiaries, any ERISA Affiliates, nor to the best knowledge of the Company, any fiduciary, trustee or
administrator of any Company Employee Plan, has engaged in or, in connection with the transactions contemplated by this Agreement, will engage in any transaction with respect to any Company Employee Plan which would subject any such Company Employee
Plan, the Company or any of its Subsidiaries or ERISA Affiliates to a tax, penalty or liability for a “prohibited transaction” under Section 406 of ERISA or Section 4975 of the Code. None of the assets of any funded Company
Employee Plan that is subject to ERISA is invested in any property constituting “employer real property” or an “employer security,” within the meaning of Section 407 of ERISA. 

(k) There are no pending audits or investigations by any Governmental Entity of any Company Employee Plan, and no threatened or pending claims
(other than routine individual claims for benefits), litigation or proceedings of any Company Employee Plan, nor to the best knowledge of the Company is there any basis for any such claim, suit or proceeding. 

(l) Neither the Company nor any Subsidiary or ERISA Affiliate has any commitment to modify or amend any Company Employee Plan (except as
required by law or to retain the tax qualified status of any Company Employee Plan). Neither the Company nor any ERISA Affiliate has any commitment to establish any new benefit plan, program or arrangement. 

(m)The Company and each Subsidiary and ERISA Affiliate has, for purposes of each Company Employee Plan and for all other purposes, correctly
classified all individuals performing services for the Company as common law employees, leased employees, independent contractors or agents, as applicable. 

  
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 3.15 Labor Matters. 

(a) Set forth on Section 3.15(a) of the Company Disclosure Schedule is a list of all employees of the Company and each of its Subsidiaries
as of the date of this Agreement and indicating for each such employee: name, employing entity, location, hire date, title or position, current base salary or hourly wage, vacation time (including flexible
time-off and sick pay) accrual, and any contracts or agreements with the Company or any of its Subsidiaries to which such employee is a party. The Company shall update Section 3.15(a) of the Company
Disclosure Schedule as of the day prior to Closing. 
 (b) Neither the Company nor any of its Subsidiaries is or has been a party to or bound
by any collective bargaining agreement or any other labor-related agreement with any labor union, labor organization or works council. No labor union, labor organization or works council has made a pending demand for recognition or certification,
and there are no representation or certification proceedings or petitions seeking a representation proceeding presently pending or, to the Company’s Knowledge, threatened to be brought or filed with the National Labor Relations Board or any
other labor relations tribunal or authority. To the Company’s Knowledge, there are no ongoing labor union organizing activities or campaigns with respect to any employees of the Company or any of its Subsidiaries. 

(c) Neither the Company nor any of its Subsidiaries is the subject of any pending Action asserting that the Company or such Subsidiary has
committed an unfair labor practice, nor, to the Company’s Knowledge, is any such Action threatened. There is no labor strike, labor dispute, or work stoppage or lockout pending or, to the Company’s Knowledge, threatened against or
affecting the Company or any of its Subsidiaries and, since January 1, 2006, there has been no such action. 
 (d) The Company and each
of its Subsidiaries is in material compliance with all, and is not in material violation of any, applicable laws relating to labor or labor relations and employment benefit terms and conditions, including any provisions thereof relating to
(i) wages, hours, bonuses, commissions, termination pay, vacation pay, sick pay, fringe benefits, employee benefits, health insurance continuation (COBRA), and the payment and/or accrual of the same and all insurance and all other costs and
expenses applicable thereto; (ii) unlawful, wrongful, or retaliatory or discriminatory employment or labor practices; (iii) occupational health and safety standards; (iv) immigration, workers’ compensation, classification,
disability, unemployment compensation, whistleblower laws, and other employment laws; and neither the Company nor any of its Subsidiaries is liable for any arrearage, or any costs or penalties for failure to comply with any of the foregoing. All
employees are authorized to work in the United States. A Form I-9 has been completed properly and retained with respect to each employee. 

(e) No key employee or group of key employees of the Company or any of its Subsidiaries has given written notice to the Company or such
Subsidiary that such employee or any employee in a group of key employees intends to terminate his or her employment with the Company or such Subsidiary. 

  
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 (f) To the Company’s Knowledge, the activities of the employees of the Company and its
Subsidiaries with respect to the business of the Company and its Subsidiaries do not conflict with or constitute a breach of the terms of any employment agreement, intellectual property disclosure agreement, restrictive covenant or other agreement
under which such employee is obligated or bound. Neither the Company nor any of its Subsidiaries has received (in the past two years) any written allegation asserting such a breach. 

3.16 Compliance With Laws. Since January 1, 2006, the Company and each of its Subsidiaries is and has been in material compliance
with, is not and has not been in material violation of, and, has not received any notice alleging any material violation with respect to, any Law. For the purposes of this Agreement, “Law” shall mean any federal, state, local or foreign
law, statute, ordinance or principle of common law, or any rule, regulation, standard, judgment, order, writ, injunction, decree, arbitration award, agency requirement, license or permit of any Governmental Entity. 

3.17 Permits. The Company and each of its Subsidiaries has all permits, licenses and franchises from Governmental Entities material to
the lawful conduct of the business of the Company and its Subsidiaries, taken as a whole, as now being conducted (the “Company Permits”). The Company and each of its Subsidiaries is and has been in material compliance with the terms of
each Company Permit. 
 3.18 Insurance. The Company and its Subsidiaries, taken together, maintain insurance policies with reputable
carriers against risks of a character and in such amounts as are customarily insured against by similarly situated companies in the same or similar businesses (the “Insurance Policies”). The Company has Insurance Policies in full force and
effect for such amounts as are sufficient for compliance in all material respects with all requirements of applicable laws and of all Company Material Contracts. The Company and each of its Subsidiaries has complied in all material respects with the
provisions of each material Insurance Policy under which it is the insured party. No insurer under any material Insurance Policy has provided notice to the Company or its applicable Subsidiary that it has cancelled or generally disclaimed liability
under any such Insurance Policy or indicated any intent to do so or not to renew any such policy, nor has done so since January 1, 2007. There is no material claim by the Company pending with respect to any of its Insurance Policies. 

3.19 Product Liability. No product liability claims have been received by the Company or any of its Subsidiaries and, to the
Company’s Knowledge, no such claims have been threatened against the Company or any of its Subsidiaries relating to any of the products or product candidates currently being developed, tested or manufactured by or on behalf of the Company or
any of its Subsidiaries. There are no, and since January 1, 2007, there has not been, judgments, orders, writs, injunctions or decrees outstanding against the Company or any of its Subsidiaries relating to product liability claims. 

3.20 Regulatory Matters. 

(a) The Company’s lixivaptan product candidate (“Lixivaptan”) is being, and at all times since January 1, 2007 has been,
developed, tested, manufactured and stored, as applicable, in compliance in all material respects with the Federal Food, Drug and Cosmetic Act (the “FDA Act”) and applicable regulations issued thereunder by the United States Food and Drug
Administration (“FDA”), including, as applicable, those requirements relating to the FDA’s current good manufacturing practices, good laboratory practices and good clinical practices. 

  
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 (b) The Company has made available to the Buyer as of the date of this Agreement a complete
and correct copy of each New Drug Application (“NDA”) and each Investigational New Drug application (“IND”) submitted to the FDA with respect to Lixivaptan, including all supplements and amendments thereto. The Company has
completed and analyzed all clinical investigations, preclinical investigations, and any other studies, analyses, or other work necessary to compile and submit the Lixivaptan NDA for substantive review by FDA. The Lixivaptan NDA is complete,
accurate, and in compliance, in each case in all material respects, with all relevant provisions of the FDC Act and FDA regulations and guidances, including but not limited to the content and format requirements set forth at 21 C.F.R. sec. 314.50.

 (c) The clinical trials conducted by the Company or any of its Subsidiaries with respect to Lixivaptan were conducted in all material
respects in accordance with all applicable clinical trial protocols and applicable requirements of the FDA and any Institutional Review Board (“IRB”), including, as applicable, the FDA’s good clinical practices and good laboratory
practices regulations. 
 (d) None of the Company nor any of its Subsidiaries is subject to any investigation that is pending and of which
the Company or such Subsidiary has been notified in writing or, to the Company’s Knowledge, which has been threatened, in each case by (i) the FDA or (ii) the Department of Health and Human Services Office of Inspector General or
Department of Justice pursuant to the Federal Healthcare Program Anti-Kickback Statute (42 U.S.C. §1320a-7b(b) (known as the “Anti-Kickback Statute”) or the Federal False Claims Act (31 U.S.C.
§3729). 
 (e) To the Company’s Knowledge, none of the Company nor any of its Subsidiaries has submitted any claim for payment to
any government healthcare program in connection with any referrals related to Lixivaptan that violated in any material respect any applicable self-referral Law, including the Federal Ethics in Patient Referrals Act, 42 U.S.C. §1395nn (known as
the “Stark Law”), or any applicable state self-referral law. 
 (f) To the Company’s Knowledge, none of the Company nor any of
its Subsidiaries has submitted any claim for payment to any government healthcare program related to Lixivaptan in material violation of any laws relating to false claim or fraud, including the Federal False Claim Act, 31 U.S.C. § 3729, or any
applicable state false claim or fraud law. 
 (g) The Company and each of its Subsidiaries has complied in all material respects with all
applicable security and privacy standards regarding protected health information under (i) the Health Insurance Portability and Accountability Act of 1996, including the regulations promulgated thereunder (collectively “HIPAA”) and
(ii) other applicable state privacy laws. 

  
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 3.21 Affiliate Transactions. Other than in his or her capacity as a director, officer
or employee of the Company or one of its Subsidiaries, no Affiliate of the Company or any of its Subsidiaries (a) owns any interest (other than capital stock of the Company or Company Options) in any property or right, tangible or intangible,
which is used in the business of the Company and its Subsidiaries, (b) has been involved in any business arrangement or relationship with the Company or any of its Subsidiaries, or (c) owes any money to, or is owed any money by, the
Company or any of its Subsidiaries. 
 3.22 Brokers. Except for the fees payable to JPM, no agent, broker, investment banker,
financial advisor or other firm or person is or shall be entitled, as a result of any action, agreement or commitment of the Company, its Subsidiaries or any Affiliate of the Company or any of its Subsidiaries, to any broker’s, finder’s,
financial advisor’s or other similar fee or commission in connection with any of the transactions contemplated by this Agreement. 

ARTICLE IV 

REPRESENTATIONS AND WARRANTIES OF THE BUYER AND THE TRANSITORY SUBSIDIARY 

The Buyer and the Transitory Subsidiary represent and warrant to the Company that the statements contained in this Article IV are true and
correct except as expressly set forth herein or in the disclosure schedule delivered by the Buyer and the Transitory Subsidiary to the Company and dated as of the date of this Agreement (the “Buyer Disclosure Schedule”). 

4.1 Organization, Standing and Power. Each of the Buyer and the Transitory Subsidiary is a corporation duly organized, validly existing
and in good standing under the laws of the jurisdiction of its incorporation, has all requisite corporate power and authority to own, lease and operate its properties and assets and to carry on its business as now being conducted, and is duly
qualified to do business and, where applicable as a legal concept, is in good standing as a foreign corporation in each jurisdiction in which the character of the properties it owns, operates or leases or the nature of its activities makes such
qualification necessary, except for such failures to be so organized, qualified or in good standing, individually or in the aggregate, that would not reasonably be expected to have a Buyer Material Adverse Effect. For purposes of this Agreement, the
term “Buyer Material Adverse Effect” means any material adverse change, event, circumstance or development with respect to, or any material adverse effect on, the ability of the Buyer or the Transitory Subsidiary to consummate, including
any material delay in the Buyer’s ability to consummate, the transactions contemplated by this Agreement. 
 4.2 Authority; No
Conflict; Required Filings and Consents. 
 (a) Each of the Buyer and the Transitory Subsidiary has all requisite corporate power and
authority to enter into this Agreement and to consummate the transactions contemplated by this Agreement. The execution and delivery of this Agreement and the consummation of the transactions contemplated by this Agreement by the Buyer and the
Transitory Subsidiary have been duly authorized by all necessary corporate action on the part of each of the Buyer and the Transitory Subsidiary. This Agreement has been duly executed and delivered by each of the Buyer and the Transitory Subsidiary
and constitutes the valid and binding obligation of each of the Buyer and the Transitory Subsidiary, enforceable against each of them in accordance with its terms, subject to the Bankruptcy and Equity Exception. 

  
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 (b) The execution and delivery of this Agreement by each of the Buyer and the Transitory
Subsidiary do not, and the consummation by the Buyer and the Transitory Subsidiary of the transactions contemplated by this Agreement shall not, (i) conflict with, or result in any violation or breach of, any provision of the Certificate of
Incorporation or By-laws of the Buyer or the Transitory Subsidiary, (ii) conflict with, or result in any violation or breach of, or constitute (with or without notice or lapse of time, or both) a default
(or give rise to a right of termination, cancellation or acceleration of any obligation or loss of any material benefit) under, require a consent or waiver under, constitute a change in control under, require the payment of a penalty under or result
in the imposition of any Lien on the Buyer’s or the Transitory Subsidiary’s assets under, any of the terms, conditions or provisions of any lease, license, contract or other agreement, instrument or obligation to which the Buyer or the
Transitory Subsidiary is a party or by which any of them or any of their properties or assets may be bound, or (iii) subject to compliance with the requirements specified in clauses (i) and (ii) of Section 4.2(c), conflict with or violate
any permit, concession, franchise, license, judgment, injunction, order, decree, statute, law, ordinance, rule or regulation applicable to the Buyer or the Transitory Subsidiary or any of its or their respective properties or assets, except in the
case of clauses (ii) and (iii) of this Section 4.2(b) for any such conflicts, violations, breaches, defaults, terminations, cancellations, accelerations, losses, penalties or Liens, and for any consents or waivers not obtained, that,
individually or in the aggregate, would not reasonably be expected to have a Buyer Material Adverse Effect. 
 (c) No consent, approval,
license, permit, order or authorization of, or registration, declaration, notice or filing with, any Governmental Entity or any stock market or stock exchange on which shares of Buyer common stock are listed for trading is required by or with
respect to the Buyer or the Transitory Subsidiary in connection with the execution and delivery of this Agreement by the Buyer or the Transitory Subsidiary or the consummation by the Buyer or the Transitory Subsidiary of the transactions
contemplated by this Agreement, except for the filing of the Certificate of Merger with the Delaware Secretary of State and appropriate corresponding documents with the appropriate authorities of other states in which the Company is qualified as a
foreign corporation to transact business. 
 (d) No vote of the holders of any class or series of the Buyer’s capital stock or other
securities is necessary for the consummation by the Buyer of the transactions contemplated by this Agreement. 
 4.3 Litigation. There
is no Action pending or, to the knowledge of the Buyer or the Transitory Subsidiary, threatened, against the Buyer or the Transitory Subsidiary, and neither the Buyer nor the Transitory Subsidiary is subject to any outstanding order, writ, judgment,
injunction or decree of any Governmental Entity that, in either case, would, individually or in the aggregate, (a) prevent or materially delay the consummation by the Buyer of the transactions contemplated by this Agreement or
(b) otherwise prevent or materially delay performance by the Buyer or the Transitory Subsidiary of any of its material obligations under this Agreement. 

  
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 4.4 Operations of the Transitory Subsidiary. The Transitory Subsidiary was formed
solely for the purpose of engaging in the transactions contemplated by this Agreement, has engaged in no other business activities and has conducted its operations only as contemplated by this Agreement. 

4.5 Financing. The Buyer and the Transitory Subsidiary have sufficient funds to perform all of their respective obligations under this
Agreement and to consummate the Merger. 
 4.6 Solvency. Immediately after giving effect to the transactions contemplated by this
Agreement, the Buyer, the Surviving Corporation and their Affiliates, taken together, shall be able to pay their debts as they become due and shall own property having a fair saleable value greater than the amounts required to pay their debts
(including a reasonable estimate of the amount of all contingent liabilities), taken together. Immediately after giving effect to the transactions contemplated by this Agreement, the Buyer, the Surviving Corporation and their Affiliates, taken
together, shall have adequate capital to carry on their business. No transfer of property is being made and no obligation is being incurred in connection with the transactions contemplated by this Agreement with the intent to hinder, delay or
defraud either present or future creditors of the Buyer or the Surviving Corporation. 
 4.7 No Other Representations or Warranties.
Except for the representations and warranties set forth in Article III (as modified by the Company Disclosure Schedule), the Buyer and the Transitory Subsidiary hereby acknowledge and agree that (a) none of the Company or any of its Affiliates,
stockholders, directors, officers, employees, agents, representatives or advisors, or any other person or entity, has made or is making any other express or implied representation or warranty with respect to the Company or any of its Subsidiaries,
including with respect to any information provided or made available to the Buyer or any of its Affiliates, stockholders, directors, officers, employees, agents, representatives or advisors, or any other person or entity, and (b) other than
with respect to claims of fraud or the right of Buyer and its Affiliates to be indemnified in accordance with and subject to the limitations of Article IX, none of the Company or any of its Affiliates, stockholders, directors, officers, employees,
agents, representatives or advisors, or any other person or entity, will have or be subject to any liability or indemnification obligation or other obligation of any kind or nature to the Buyer, the Transitory Subsidiary or any of their respective
Affiliates, stockholders, directors, officers, employees, agents, representatives or advisors, or any other person or entity, resulting from the delivery, dissemination or any other distribution to the Buyer, the Transitory Subsidiary or any of
their respective Affiliates, stockholders, directors, officers, employees, agents, representatives or advisors, or any other person or entity, or the use by the Buyer, the Transitory Subsidiary or any of their respective Affiliates, stockholders,
directors, officers, employees, agents, representatives or advisors, or any other person or entity, of any such information provided or made available to any of them by the Company or any of its Affiliates, stockholders, directors, officers,
employees, agents, representatives or advisors, or any other person or entity, including any information, documents, estimates, projections, forecasts or other forward-looking information, business plans or other material provided or made available
to the Buyer, the Transitory Subsidiary or any of their respective Affiliates, stockholders, directors, officers, employees, agents, representatives or advisors, or any other person or entity, in “data rooms,” confidential information
memoranda or management presentations in anticipation or contemplation of the Merger or any other transactions contemplated by this Agreement. 

  
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 4.8 Competing Products. Neither the Buyer nor any of its Affiliates engages in any
business or other enterprise that develops, manufactures, distributes, markets, uses or sells or otherwise commercializes a product candidate or product for the treatment of hyponatremia. 

ARTICLE V 
 CONDUCT OF
BUSINESS 
 5.1 Covenants of the Company. Except (i) as expressly provided or permitted herein, (ii) as set forth in
Section 5.1 of the Company Disclosure Schedule, (iii) as required by applicable law, or (iv) as consented to in writing by the Buyer (which consent shall not be unreasonably withheld, conditioned or delayed), during the period
commencing on the date of this Agreement and ending at the Effective Time or such earlier date as this Agreement may be terminated in accordance with its terms (the “Pre-Closing Period”), the Company
shall use commercially reasonable efforts to, and to cause each of its Subsidiaries to, carry on its business in the ordinary course consistent with past practice, maintain and preserve its business organization, assets and properties and preserve
its business relationships with those having material business dealings with it. Without limiting the generality of the foregoing, except (I) as expressly provided or permitted herein, (II) as set forth in Section 5.1 of the Company
Disclosure Schedule, or (III) as required by applicable law, during the Pre-Closing Period, the Company shall not, and shall not permit any of its Subsidiaries to, do any of the following without the
prior written consent of the Buyer (which consent shall not be unreasonably withheld, conditioned or delayed): 
 (a) (i) declare, set aside
or pay any dividends on, or make any other distributions (whether in cash, securities or other property) in respect of, any Company Stock, (ii) split, combine or reclassify any Company Stock or issue or authorize the issuance of any other
securities in respect of, in lieu of or in substitution for shares of Company Stock or any other securities of the Company or (iii) purchase, redeem or otherwise acquire any shares of Company Stock or any other of securities of the Company or
any rights, warrants or options to acquire any such shares or other securities of the Company; 
 (b) except as permitted by
Section 5.1(j), issue, deliver, sell, grant, pledge or otherwise dispose of or encumber any shares of Company Stock, any other voting securities or any securities convertible into or exchangeable for, or any rights, warrants or options to
acquire, any such shares, voting securities or convertible or exchangeable securities (other than the issuance of shares of Company Stock upon the exercise of Company Options outstanding on the date of this Agreement); 

(c) amend its Certificate of Incorporation, By-laws, limited liability company operating agreement or
other organizational documents; 
 (d) acquire (i) by merging or consolidating with, or by purchasing all or a substantial portion of
the assets or any stock of, or by any other manner, any business or any corporation, partnership, joint venture, limited liability company, association or other business organization or division thereof or (ii) any assets that are material to
the Company, except purchases of inventory, supplies and raw materials in the ordinary course of business; 

  
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 (e) sell, lease, license, pledge, or otherwise dispose of or encumber any properties or
assets material to the Company and its Subsidiaries, taken as a whole, other than in the ordinary course of business; provided that prior to the Company or any of its Subsidiaries selling, leasing, licensing, pledging, or otherwise disposing of or
encumbering any of the Company Intellectual Property and Third Party Intellectual Property, prior written consent of Buyer is required; 

(f) enter into any contract that would constitute a Company Material Contract if in effect on the date hereof, or waive any material right of
the Company or any of its Subsidiaries under any Company Material Contract; provided, that prior to the Company or any of its Subsidiaries entering into any contract that would constitute, or waiving any material right of, any Intellectual Property
Agreement, prior written consent of Buyer is required in each case; 
 (g) (i) incur any indebtedness (other than (A) letters of credit
or similar arrangements issued to or for the benefit of suppliers and manufacturers in the ordinary course of business and (B) intercompany indebtedness), (ii) make any loans, advances (other than routine advances to employees of the Company in
the ordinary course of business) or capital contributions to, or investment in, any other person or entity other than the Company or any of its Subsidiaries or (iii) cancel, modify or waive any material debts or claims held by the Company or
waive any rights of material value; 
 (h) make any capital expenditures or other expenditures with respect to property, plant or equipment
in excess of $25,000 in the aggregate, other than as set forth in the Company’s budget for capital expenditures previously made available to the Buyer; 

(i) make any material changes in accounting methods, principles or practices, except as required by a change in GAAP; 

(j) (i) adopt, enter into, terminate or materially amend any employment, severance or similar agreement Company Employee Plan or any collective
bargaining agreement (except in the ordinary course of business and only if such arrangement is terminable on 60 days’ or less notice without either a penalty or a termination payment), (ii) increase in any material respect the compensation or
fringe benefits of, or pay any bonus to, any director, officer or employee (except for annual increases of salaries or changes made in connection with any promotion or increase in duties or responsibilities in the ordinary course of business), (iii)
accelerate the payment, right to payment or vesting of any compensation or benefits, including any outstanding options or restricted stock awards, other than as contemplated by this Agreement, (iv) grant any stock options, stock appreciation
rights, stock based or stock related awards, performance units or restricted stock or (v) take any action other than in the ordinary course of business to fund or in any other way secure the payment of compensation or benefits under any Company
Employee Plan; 
 (k) make or change or revoke any material election in respect of Taxes, adopt or change any material accounting method in
respect of Taxes, file any amendment to a material Tax Return, settle any material claim or assessment in respect of Taxes, enter into a closing agreement with any Governmental Entity with respect to Taxes, take any action that would terminate or
alter the application of any Tax holiday or similar favorable Tax arrangement or consent to any extension or waiver of the limitation period applicable to any material claim or assessment in respect of Taxes; 

  
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 (l) settle any material action, cause of action, suit, claim, investigation, audit, hearing
or proceeding, whether civil, criminal, administrative or arbitral, whether at law or in equity; or 
 (m)authorize any of, or commit or
agree to take any of, the foregoing actions. 
 5.2 Severance Costs. Prior to the Closing, the Company shall terminate all employees
of the Company and pay all severance, accrued compensation and other amounts owed to such terminated employees in connection with such termination of employment (other than any amounts owed to such terminated employees with respect to Company Stock
or Company Options or pursuant to the Bonus Plans or amounts set forth on Section 3.7 of the Company Disclosure Schedule). 
 5.3
Confidentiality. The parties acknowledge that the Buyer and the Company have previously executed a confidentiality agreement, dated as of July 12, 2011 (the “Confidentiality Agreement”), which Confidentiality Agreement shall
continue in full force and effect in accordance with its terms, except as expressly modified herein. 
 ARTICLE VI 

ADDITIONAL AGREEMENTS 

6.1 No Solicitation. During the Pre-Closing Period, the Company and its Subsidiaries shall not,
and the Company and its Subsidiaries shall use reasonable efforts to cause their respective directors, officers, employees and other agents not to, directly or indirectly, (a) solicit, initiate or knowingly encourage any Acquisition Proposal,
(b) enter into, continue or otherwise participate in any discussions or negotiations regarding, or furnish to any person any non public information for the purpose of encouraging or facilitating, any Acquisition Proposal or (c) otherwise
cooperate in any way with, or assist or participate in, facilitate or encourage, any effort or attempt by any other person or entity to do or seek any of the foregoing. The Company shall promptly inform the Buyer of the identity of any person making
an Acquisition Proposal during the Pre-Closing Period as well as the nature and material terms of any such Acquisition Proposal. For purposes of this Agreement, “Acquisition Proposal” means
(i) any proposal or offer for a merger, consolidation, dissolution, sale of substantial assets outside the ordinary course of business, stock purchase, recapitalization, share exchange or other business combination involving the Company or any
of its Subsidiaries, (ii) any proposal for the issuance by the Company or any of its Subsidiaries of over 20% of its equity securities or (iii) any proposal or offer to acquire in any manner, directly or indirectly, over 20% of the equity
securities or total assets of the Company and its Subsidiaries, taken as a whole, in each case other than the transactions contemplated by this Agreement. The Company shall, and shall cause its representatives to, immediately cease and cause to be
terminated any existing discussions or negotiations with any persons or entities (other than the Buyer and the Transitory Subsidiary) conducted heretofore with respect to any of the foregoing 

  
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 6.2 Stockholder Consent or Approval. As expeditiously as possible, and in any event
within two hours following the execution of this Agreement, the Company shall use commercially reasonable efforts to take all lawful action to obtain the Company Stockholder Approval pursuant to executed written consents (the “Written
Consent”). Promptly following receipt of the Written Consent, the Company shall cause its corporate Secretary to deliver a copy of such Written Consent to the Buyer, together with a certificate executed on behalf of the Company by its corporate
Secretary certifying that such Written Consent reflects the Company Stockholder Approval. 
 6.3 Access to Information. During the Pre-Closing Period, the Company and its Subsidiaries shall afford to the Buyer’s officers, employees, accountants, counsel and other representatives, reasonable access, upon reasonable notice, during normal
business hours and in a manner that does not disrupt or interfere with business operations, to all of their properties, books, contracts, commitments, personnel and records as the Buyer shall reasonably request, and, during such period, the Company
and its Subsidiaries shall furnish promptly to the Buyer the information concerning their business, properties, assets and personnel as the Buyer may reasonably request. Any access provided to the Buyer or information provided by the Company and its
Subsidiaries shall not constitute any expansion of or additional representations or warranties of the Company beyond those specifically set forth in this Agreement. The Buyer will hold any such information which is nonpublic in confidence in
accordance with the Confidentiality Agreement. Notwithstanding the foregoing, none of the Company or any of its Subsidiaries shall have any obligation to provide the Buyer with any such access or information which is prohibited under applicable law
or the terms of any agreement to which the Company or any of its Subsidiaries is a party as of the date hereof, or the provision of which would cause any applicable attorney-client privilege to be lost. 

6.4 Legal Conditions to the Merger. 

(a) Subject to the terms hereof, including Section 6.4(b), the Company and the Buyer shall each: 

(i) use its commercially reasonable efforts to take, or cause to be taken, all actions, and do, or cause to be done, and to assist and
cooperate with the other parties in doing, all things necessary, proper or advisable to consummate and make effective the transactions contemplated hereby as promptly as practicable; 

(ii) use its commercially reasonable efforts to make, as promptly as practicable, all necessary filings, and thereafter make any other
required submissions, with respect to this Agreement and the Merger required under any applicable law; 
 (iii) use its commercially
reasonable efforts to obtain, as promptly as practicable, from any Governmental Entity any consents, licenses, permits, waivers, approvals, authorizations or orders required to be obtained or made by the Company or the Buyer in connection with the
authorization, execution and delivery of this Agreement and the consummation of the transactions contemplated hereby; and 

  
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 (iv)execute or deliver any additional instruments necessary to consummate the transactions
contemplated by, and to fully carry out the purposes of, this Agreement. 
 The Company and the Buyer shall cooperate with each other in connection with the
making of all such filings, including providing copies of all such documents to the other party and its advisors prior to filing and, if requested, accepting reasonable additions, deletions or changes suggested in connection therewith. The Company
and the Buyer shall furnish to each other all information required for any application or other filing to be made pursuant to the rules and regulations of any applicable law in connection with the transactions contemplated by this Agreement. 

(b) Each of the Company and the Buyer shall give (and the Buyer shall cause its Subsidiaries to give) any notices to third parties, and use,
and, in the case of the Buyer, cause its Subsidiaries to use, their commercially reasonable efforts to obtain any third party consents required in connection with the Merger that are (i) necessary to consummate the transactions contemplated
hereby, (ii) disclosed or required to be disclosed in the Company Disclosure Schedule or the Buyer Disclosure Schedule, as the case may be, or (iii) required to prevent the occurrence of an event that would have a Company Material Adverse
Effect or a Buyer Material Adverse Effect prior to or after the Effective Time, it being understood that neither the Company nor the Buyer shall be required to make any payments, other than the payment of customary filing fees, in connection with
the fulfillment of its obligations under this Section 6.4. 
 6.5 Public Disclosure. The press release announcing the execution
of this Agreement shall be issued in such form as shall be mutually agreed upon by the Company and the Buyer. Except as may be required by law or stock market regulations, the Buyer and the Company shall consult with the other party before issuing
any other press release or otherwise making any public statement with respect to the Merger or this Agreement. 
 6.6 Indemnification of
Directors and Officers. 
 (a) From the Effective Time through the sixth anniversary of the date on which the Effective Time occurs, each
of the Buyer and the Surviving Corporation agree that all rights to indemnification, advancement and exculpation now existing in favor of, and all limitations on the personal liability of, each present and former director, officer, employee,
fiduciary and agent of the Company (each a “Company Indemnified Party”) and its Subsidiaries provided for in the Certificate of Incorporation or By-Laws of the Company in effect as of the date hereof
shall continue in full force and effect to the fullest extent permitted under the DGCL for officers and directors of Delaware corporations. 

(b) Prior to the Closing Date, the Company shall, at no expense to the beneficiaries, purchase a “tail” or “run-off” policy for the directors’ and officers’ liability insurance currently maintained by the Company with respect to periods prior to the Closing Date, which provides coverage for six
(6) years following the Effective Time on terms reasonably acceptable to the Company and the Buyer. 

  
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 6.7 Notification of Certain Matters. During the
Pre-Closing Period, the Buyer shall give prompt notice to the Company, and the Company shall give prompt notice to the Buyer, of (a) the occurrence, or failure to occur, of any event, which occurrence or
failure to occur is 47 reasonably likely to cause any representation or warranty of such party contained in this Agreement to be untrue or inaccurate in any material respect, in each case at any time from and after the date of this Agreement until
the Effective Time or (b) any material failure of the Buyer and the Transitory Subsidiary or the Company, as the case may be, or of any officer, director, employee or agent thereof, to comply with or satisfy any covenant, condition or agreement
to be complied with or satisfied by it under this Agreement. Notwithstanding the above, the delivery of any notice pursuant to this Section will not limit or otherwise affect the remedies available hereunder to the party receiving such notice or the
conditions to such party’s obligation to consummate the Merger. Notwithstanding the prior sentence, if (i) any such notice relates to the occurrence of any event arising after the date of this Agreement (without breach of Section 5.1
or Section 6.1), (ii) such notice is delivered at least 5 days prior to the Closing Date, (iii) such notice is accompanied by a written statement from the Company informing the Buyer of the Company’s belief that the Buyer is entitled
to terminate this Agreement in accordance with the provisions of Section 8.1(d) as a result of such notice (which statement shall be binding on the Company) (such written statement, a “Company Termination Right Notice”) and
(iv) the Buyer does not exercise such right prior to the Closing, then the information set forth in such notice shall constitute an amendment of the representation or warranty to which it relates for purpose of Article IX of this Agreement such
that the Buyer shall not be entitled to indemnification under Article IX of this Agreement with respect to such matter to the extent of the information so disclosed. Within five Business Days of receipt of a Company Termination Right Notice, the
Buyer shall provide written notice to the Company, which notice shall be binding on the Buyer, pursuant to which the Buyer shall agree or dispute that the Buyer is entitled to terminate this Agreement in accordance with the provisions of
Section 8.1(d) as a result of such Company Termination Right Notice. 
 6.8 [Reserved.] 

6.9 280G Matters. Prior to the Effective Time, the Company shall submit to a stockholder vote the right of any “disqualified
individual” (as defined in Section 280G(c) of the Code) listed in Section 6.9 of the Company Disclosure Schedule to receive any and all payments (or other benefits) contingent on the consummation of the transactions contemplated by
this Agreement (within the meaning of Section 280G(b)(2)(A)(i) of the Code) to the extent necessary so that, if such vote is adopted by the Company stockholders in a manner that satisfies the stockholder approval requirements under
Section 280G(b)(5)(B) of the Code and regulations promulgated thereunder, no payment received by such “disqualified individual” would be a “parachute payment” under Section 280G(b) of the Code (determined without regard
to Section 280G(b)(4) of the Code). Such vote shall determine whether the “disqualified individuals” are entitled to the payment or other compensation. In addition, the Company shall provide adequate disclosure to Company stockholders
that hold voting Company Stock of all material facts concerning all payments that, but for such vote, could be deemed “parachute payments” to any such “disqualified individual” under Section 280G of the Code in a manner that
satisfies Section 280G(b)(5)(B)(ii) of the Code and regulations promulgated thereunder. 

  
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 6.10 Tax Matters. 

(a) The Buyer and the Company agree that they will treat the Closing Date as the last day of the Company’s 2011 tax year for federal
income tax purposes. The Indemnification Representative shall, at the cost of the Company Participating Equityholders, prepare or cause to be prepared the federal and state income Tax Returns for the Company for the taxable period that ends on the
Closing Date (the “Closing Date Tax Returns”). The Closing Date Tax Returns shall be prepared on a basis consistent with the last previous similar federal and state income Tax Returns filed by the Company. The Indemnification
Representative shall provide the Buyer with copies of each Closing Date Tax Return for review and comment at least 15 days prior to the respective filing due date for such Closing Date Tax Return and shall make any changes thereto reasonably
requested by the Buyer, and thereafter the Buyer shall timely file or cause to be filed with the appropriate Governmental Entity such Closing Date Tax Return. Buyer shall cooperate, and shall cause the Surviving Corporation to cooperate, with the
Indemnification Representative with respect to its obligations pursuant to this Section 6.10, including, but not limited to, (a) providing reasonable access to the books and records of the Surviving Corporation and to the personnel or
representatives of Buyer or the Surviving Corporation, including but not limited to individuals responsible for preparing the Company’s past income Tax Returns, (b) using commercially reasonable efforts to enter into or amend the
Company’s engagements with third party service providers assisting with such Tax Returns to assign and delegate authority to the Indemnification Representative, subject to the limitations set forth in this Section 6.10, as necessary for
the Indemnification Representative to manage and direct such third party service providers with respect to the preparation of such Tax Returns, or (c) in the event that third party service providers will not agree to such an assignment and
delegation, then otherwise ensuring that the Indemnification Representative shall have access to and the ability to direct (even if indirectly through Buyer or the Company) the Company’s third party service providers in a manner reasonably
sufficient to permit the Indemnification Representative to fulfill its obligations under this Section 6.10; provided, that, any out of pocket fees or expenses incurred in connection with the foregoing shall be borne by the Company Participating
Equityholders. Notwithstanding the foregoing, the Company shall retain the sole and exclusive authority and all obligations with respect to the filing of any such Tax Returns. 

(b) Promptly following the filing of the Closing Date Tax Returns, the Indemnification Representative shall, at the cost of the Company
Participating Equityholders, prepare or cause to be prepared, and the Buyer shall file, or caused to be filed, on behalf of the Company, a Form 1139, Corporation Application for Tentative Refund (or if a Form 1139 is not permitted by applicable law,
one or more Forms 1120X, as needed), carrying back any net operating loss (a “NOL”) or research and development tax credits reflected on the Company’s federal Closing Date Tax Return to the extent permitted under applicable law. 

(c) Within 5 Business Days after the Buyer or any of its Affiliates (including the Company) receives a refund of Taxes from the filing of the
Form 1139 or Form 1120X(s), as the case may be (including any interest paid thereon, the “NOL Tax Refund”), the Buyer shall (i) pay to the party or account designated by the Indemnification Representative an amount of cash equal to
90% of the amount of the NOL Tax Refund and (ii) deposit an amount of cash equal to 10% of the NOL Tax Refund (the “Tax Escrow Funds”) in a separate account with the Escrow Agent. In the event that the Company is requested by a
Governmental Entity to repay any amount of the NOL Tax Refund or any other Tax Refund, the Buyer may obtain reimbursement for the repayment of all such amounts (plus any penalties, interest or other charges imposed by the relevant Governmental
Entity) and any out-of-pocket expenses (including the reasonable fees and expenses of counsel) incurred by the Buyer or any of its Affiliates (including the Surviving

  
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Corporation) in connection with an audit by the IRS of the NOL Tax Refund first from the Tax Escrow Funds, and then, the General Escrow Funds, and then, if the Tax Escrow Funds and the General
Escrow Funds are insufficient for the Buyer to recover all such amounts and expenses, by exercising the Buyer’s right of set off pursuant to Section 9.6 hereof. Within five (5) Business Days after earliest to occur of (i) the
Company’s receipt of letter 1574 (P) (or comparable letter) from the IRS’s Joint Committee Specialist indicating that the Joint Committee on Taxation (the “JCT”) has taken no exceptions to the conclusions reached by the IRS with
respect to the permissibility of the NOL Tax Refundor a portion thereof; (ii) the Company’s receipt of a Revenue Agent Report (not subject to JCT review) with respect to the Closing Date Tax Return agreeing to the determination of the NOL
Tax Refund or a portion thereof; or (iii) the later to occur of either (a) three years from the later of (x) the due date of the Closing Date Tax Return or (y) the date such return is filed or (b) the expiration of any
consent to extend the statute of limitations (Form 872) for the Closing Date Tax Return under Section 6501(c)(4) of the Code, the Buyer and the Indemnification Representative shall jointly instruct the Escrow Agent to release the balance of the
Tax Escrow Funds, to the extent not subject to any outstanding claims pursuant to Article IX hereof, to (A) the Buyer or the party or account designated by the Indemnification Representative, as applicable, for distribution pursuant to the
Company Participating Equityholders (other than the Bonus Plan Participants) in accordance with Section 2.6(b), if the release occurs as the result of clause (i) or (ii) and there is no reduction in the amount of the NOL Tax Refund or if
the release occurs as the result of clause (iii), (B) the Buyer or the Indemnification Representative, as applicable, for distribution pursuant to the Company Participating Equityholders (other than the Bonus Plan Participants) in accordance with
Section 2.6(b) an amount equal to the portion of the NOL Refund Claim not required to be repaid to the IRS, if the release occurs as the result of clause (i) or (ii) and the approved amount is less than the NOL Tax Refund by an amount less
that the Tax Escrow Funds, or (C) to the Buyer, if the release occurs as the result of clause (i) or (ii) and the approved amount is less than the NOL Tax Refund by an amount that exceeds the Tax Escrow Funds. 

(d) Any transfer, sales, value added, excise, stock transfer, stamp, recording, registration and any similar Taxes that become payable in
connection with the Merger and other transactions contemplated hereby (“Transfer Taxes”) shall be borne fifty percent (50%) by the Buyer and fifty percent (50%) by the Company. The applicable parties shall cooperate in filing such forms
and documents as may be necessary to permit any such Transfer Taxes to be assessed and paid on or prior to the Closing Date in accordance with any available pre-sale filing procedure, and to obtain any
exemption or refund of any such Transfer Taxes for any taxable period (or portion thereof) beginning on or after the Closing Date. 
 (e) On
or prior to the Closing Date, the Company shall provide the Buyer with a properly executed “FIRPTA” certificate prepared in accordance with Treasury Regulations Section 1.1445-2 certifying that
the interests in the Company being transferred pursuant to this Agreement are not “United States real property interests” within the meaning of Sections 897 or 1445 of the Code or the Treasury Regulations promulgated thereunder. 

  
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 ARTICLE VII 

CONDITIONS TO MERGER 
 7.1
Conditions to Each Party’s Obligation To Effect the Merger. The respective obligations of each party to this Agreement to effect the Merger shall be subject to the satisfaction on or prior to the Closing Date of the following conditions:

 (a) Stockholder Approval. The Company shall have obtained the Company Stockholder Approval. 

(b) Governmental Approvals. Other than the filing of the Certificate of Merger, all authorizations, consents, orders or approvals of, or
declarations or filings with, or expirations of waiting periods imposed by, any Governmental Entity in connection with the Merger and the consummation of the other transactions contemplated by this Agreement, the failure of which to file, obtain or
occur would have a Buyer Material Adverse Effect or a Company Material Adverse Effect, shall have been filed, been obtained or occurred on terms and conditions which would not have a Buyer Material Adverse Effect or a Company Material Adverse
Effect. 
 (c) No Injunctions. No Governmental Entity of competent jurisdiction shall have enacted, issued, promulgated, enforced or
entered any order, executive order, stay, decree, judgment or injunction (preliminary or permanent) or statute, rule or regulation which is in effect and which has the effect of making the Merger illegal or otherwise prohibiting consummation of the
Merger or the other transactions contemplated by this Agreement. 
 7.2 Additional Conditions to Obligations of the Buyer and the
Transitory Subsidiary. The obligations of the Buyer and the Transitory Subsidiary to effect the Merger shall be subject to the satisfaction on or prior to the Closing Date of each of the following additional conditions, either of which may be
waived, in writing, exclusively by the Buyer and the Transitory Subsidiary: 
 (a) Representations and Warranties. The representations
and warranties of the Company set forth in this Agreement shall be true and correct in all material respects as of the Closing Date as though made on and as of the Closing Date (except (i) to the extent such representations and warranties are
specifically made as of a particular date, in which case such representations and warranties shall be true and correct as of such date and (ii) for representations and warranties which are qualified by materiality or Company Material Adverse
Effect, in which case such representations and warranties shall be true and correct in all respects); and the Buyer shall have received a certificate signed on behalf of the Company by the chief executive officer or the chief financial officer of
the Company to such effect. 
 (b) Performance of Obligations of the Company. The Company shall have performed in all material
respects all obligations required to be performed by it under this Agreement on or prior to the Closing Date; and the Buyer shall have received a certificate signed on behalf of the Company by the chief executive officer or the chief financial
officer of the Company to such effect. 

  
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 (c) Secretary’s Certificate. The Company shall have delivered a certificate of
the Secretary of the Company, dated as of the Closing Date, certifying as to (i) the copies of the Certificate of Incorporation and By-Laws, each as in effect from the date of this Agreement until the
Closing Date, (ii) a copy of the votes of the Company Board authorizing and approving the applicable matters contemplated hereunder and (iii) written consents constituting the Company Stockholder Approval. 

(d) Amendment of Wyeth License. The Wyeth License shall have been amended in a manner reasonably satisfactory to the Buyer so as to
provide that any payments pursuant to Sections 5.2 and 5.5 thereunder shall be paid as contemplated by Section 2.6(a)(i). 
 (e)
Absence of Pending Proceedings. No Action that seeks to restrain, restrict, limit, prohibit or enjoin the transactions contemplated by this Agreement or seeks monetary relief by reason of the consummation of such transactions shall be
pending. 
 (f) NDA Filing. The Company shall have submitted NDA 203009 for Lixivaptan (the “Lixivaptan NDA”) to the FDA and
the Buyer shall have received evidence thereof reasonably satisfactory to the Buyer from the Company. 
 (g) Closing Cash and Cash
Equivalents. The total amount of cash and cash equivalents on hand at the Company as of the Effective Time shall be no less than the amount necessary for the Company to meet its Liabilities in excess of $2,000,000; and the Buyer shall have
received a certificate signed on behalf of the Company by the chief executive officer or the chief financial officer of the Company to such effect. 

7.3 Additional Conditions to Obligations of the Company. The obligation of the Company to effect the Merger shall be subject to the
satisfaction on or prior to the Closing Date of each of the following additional conditions, either of which may be waived, in writing, exclusively by the Company: 

(a) Representations and Warranties. The representations and warranties of the Buyer and the Transitory Subsidiary set forth in this
Agreement shall be true and correct in all material respects as of the Closing Date as though made on and as of the Closing Date (except (i) to the extent such representations and warranties are specifically made as of a particular date, in which
case such representations and warranties shall be true and correct as of such date and (ii) representations and warranties which are qualified by materiality or Buyer Material Adverse Effect , in which case such representations and warranties shall
be true and correct in all respects); and the Company shall have received a certificate signed on behalf of the Buyer by the chief executive officer or the chief financial officer of the Buyer to such effect. 

(b) Performance of Obligations of the Buyer and the Transitory Subsidiary. The Buyer and the Transitory Subsidiary shall have performed
in all material respects all obligations required to be performed by them under this Agreement on or prior to the Closing Date; and the Company shall have received a certificate signed on behalf of the Buyer by the chief executive officer or the
chief financial officer of the Buyer to such effect. 

  
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 ARTICLE VIII 

TERMINATION AND AMENDMENT 

8.1 Termination. This Agreement may be terminated at any time prior to the Effective Time (with respect to Sections 8.1(b) through
8.1(f), by written notice by the terminating party to the other party), whether before or, subject to the terms hereof, after receipt of the Company Stockholder Approval: 

(a) by mutual written consent of the Buyer, the Transitory Subsidiary and the Company; or 

(b) by either the Buyer or the Company if the Merger shall not have been consummated by January 6, 2012 (the “Outside Date”); or

 (c) by either the Buyer or the Company if a Governmental Entity of competent jurisdiction shall have issued a nonappealable final order,
decree or ruling or taken any other nonappealable final action (including the enactment of a Law), in each case having the effect of permanently restraining, enjoining or otherwise prohibiting the Merger; or 

(d) by the Buyer, if there has been a breach of or failure to perform any representation, warranty, covenant or agreement on the part of the
Company set forth in this Agreement, which breach or failure to perform (i) would cause the conditions set forth in Section 7.2(a) or 7.2(b) not to be satisfied and (ii) shall not have been cured within 20 days following receipt by
the Company of written notice of such breach or failure to perform from the Buyer; or 
 (e) by the Company, if there has been a breach of or
failure to perform any representation, warranty, covenant or agreement on the part of the Buyer or the Transitory Subsidiary set forth in this Agreement, which breach or failure to perform (i) would cause the conditions set forth in
Section 7.3(a) or 7.3(b) not to be satisfied and (ii) shall not have been cured within 10 days following receipt by the Buyer of written notice of such breach or failure to perform from the Company; or 

(f) by the Buyer, if the Company Stockholder Approval shall not have been obtained within two hours following the date of this Agreement. 

8.2 Effect of Termination. In the event of the termination of this Agreement as provided in Section 8.1, this Agreement shall
immediately become void and there shall be no liability or obligation on the part of the Buyer, the Company, the Transitory Subsidiary or their respective officers, directors, stockholders or Affiliates; provided that (a) any such termination
shall not relieve any party from liability for damages (including, in the case of damages sought by the Company, damages based on the consideration payable to the Company Participating Equityholders pursuant to this Agreement) for any willful breach
of this Agreement (including such party’s obligation to close if it was otherwise obligated to do so under the terms of this Agreement) and (b) the provisions of Sections 5.2 (Confidentiality) and 8.3 (Fees and Expenses), this
Section 8.2 (Effect of Termination) and Article X (Miscellaneous) of this Agreement and the Confidentiality Agreement shall remain in full force and effect and survive any termination of this Agreement. 

  
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 8.3 Fees and Expenses. Except as set forth in this Section 8.3 or on the
certificate delivered pursuant to Section 1.6, all fees and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such fees and expenses, whether or not the Merger is
consummated. 
 8.4 Amendment. This Agreement may be amended by the parties hereto, by action taken or authorized by their respective
Boards of Directors, at any time before or after receipt of the Company Stockholder Approval, but, after receipt of the Company Stockholder Approval no amendment shall be made which by law requires further approval by such stockholders without such
further approval. This Agreement may not be amended except by an instrument in writing signed on behalf of each of the parties hereto. 
 8.5
Extension; Waiver. At any time prior to the Effective Time, the parties hereto, by action taken or authorized by their respective Boards 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 parties hereto, (b) waive any inaccuracies in the representations and warranties contained herein or in any document delivered pursuant hereto and (c) waive compliance with any of the agreements
or conditions contained herein. Any agreement on the part of a party hereto to any such extension or waiver shall be valid only if set forth in a written instrument signed on behalf of such party. Such extension or waiver shall not be deemed to
apply to any time for performance, inaccuracy in any representation or warranty, or noncompliance with any agreement or condition, as the case may be, other than that which is specified in the extension or waiver. The failure of any party to this
Agreement to assert any of its rights under this Agreement or otherwise shall not constitute a waiver of such rights. 
 ARTICLE IX

 INDEMNIFICATION 

9.1 Indemnification by Company Participating Equityholders. Subject to the terms and conditions of this Article IX, from and after the
Closing, the Company Participating Equityholders shall indemnify, defend and hold harmless the Buyer and its Affiliates (including, after the Effective Time, the Company) and their respective and their respective successors and permitted assigns,
officers, employees, directors, equityholders, members and partners (the “Buyer Indemnified Parties”) against any and all claims, losses, liabilities and damages whatsoever, interest, penalties and costs and expenses, including reasonable
attorneys’, accountants’ and expert witnesses’ fees, and costs and expenses of investigation and amounts paid in settlement, court costs, and other expenses of litigation, including in respect of enforcement of their indemnity rights
hereunder (collectively, “Damages”) incurred or suffered by the Buyer Indemnified Parties arising out of, resulting from or constituting: 

(a) any breach of a representation or warranty of the Company made in or pursuant to this Agreement or the certificate required by
Section 7.2(a); 
 (b) any breach or non-fulfillment by the Company of any covenant or agreement
made in or pursuant to this Agreement, to the extent that such breach or non-fulfillment occurs at or prior to the Effective Time; 

  
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 (c) any Liabilities of the Company as of the Effective Time in excess of an amount equal to
(x) $2,000,000 plus (y) the Excess Liability Amount in the aggregate; 
 (d) any liability of the Company or any of its Subsidiaries for
any Tax imposed upon the Company or any of its Subsidiaries for (i) any taxable period ending on or before the Closing Date, (ii) any taxable period beginning on or before the Closing Date and ending after the Closing Date (a
“Straddle Period”), limited to the amount of Tax allocable to the pre-Closing portion of such Straddle Period which shall be (A) in the case of Taxes that are imposed on an annual basis (such as
real property taxes), the amount of such Taxes for the entire Straddle Period (or in the case of such Taxes determined on an arrears basis, the amount of such Taxes for the immediately preceding period) multiplied by a fraction the numerator of
which is the number of calendar days in the Straddle Period up to and including the Closing Date and the denominator of which is the number of calendar days in the entire relevant Straddle Period and (B) in the case of Taxes that are not
described in clause (A) (such as income Taxes, Taxes imposed in connection with the sale or other transfer or assignment of property, and payroll and similar Taxes), the amount that would have been payable if the taxable year or period of the
Company and its Subsidiaries ended on the close of business on the Closing Date, (iii) any amounts required to be repaid by the Company Participating Equityholders pursuant to Section 6.11(c), and (iv) any Transfer Taxes borne by
Buyer that were the responsibility of the Company pursuant to Section 6.11(d) (all such liabilities, amounts and Taxes described in this Section 9.1(d), the “Tax Losses”); 

(e) any Dissenting Shares; 
 (f)
any failure by the Indemnification Representative to take any action or pay any amounts that this Agreement provides that the Indemnification Representative will take or pay; 

(g) any application user or similar fee paid or required to be paid in connection with the submission of the Lixivaptan NDA pursuant to
Section 7.2(f) or any resubmissions thereof because the FDA refused to file the Lixivaptan NDA for a reason under paragraph (d) or (e) of 21 CFR 314.101; and 

(h) any breach by any Company Participating Equityholder, or by the legal counsel or other advisors of the Indemnification Representative, of
the confidentiality commitments contemplated by Section 2.3(e)(ii). 
 9.2 Indemnification by Buyer. Subject to the terms and
conditions of this Article IX, from and after the Closing, the Buyer shall indemnify the Company Participating Equityholders harmless against any and all Damages incurred or suffered by any Company Participating Equityholder resulting from or
constituting: 
 (a) any breach of a representation or warranty of the Buyer or the Transitory Subsidiary made in or pursuant to this
Agreement or the certificate required by Section 7.3(a); or 
 (b) any failure by the Buyer or the Transitory Subsidiary to perform any
covenant or agreement made in or pursuant to this Agreement. 

  
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 9.3 Claims for Indemnification. 

(a) Third Party Claims. All claims for indemnification made under this Agreement resulting from, related to or arising out of a
third-party claim against an Indemnified Party shall be made in accordance with the following procedures. A person entitled to indemnification under this Article IX (an “Indemnified Party”) shall give prompt written notification to the
Indemnifying Party (a “Third Party Claim Notice”) of the commencement of any action, suit or proceeding relating to a third party claim for which indemnification may be sought or, if earlier, upon the assertion of any such claim by a third
party. Subject to Section 9.5(e), for purposes of this Agreement, “Indemnifying Party” means (i) in the case of a claim for indemnification by the Buyer, the Company Participating Equityholders and (ii) in the case of a claim for
indemnification by the Company Participating Equityholders, the Buyer. Such Third Party Claim Notice shall include a description in reasonable detail (to the extent known by the Indemnified Party) of the facts constituting the basis for such third
party claim and the amount of the Damages claimed (the “Third Party Claim Amount”). Within 30 days after delivery of such Third Party Claim Notice, the Indemnifying Party may, upon written notice thereof to the Indemnified Party, assume
control of the defense of such action, suit, proceeding or claim with counsel reasonably satisfactory to the Indemnified Party and at the Indemnifying Party’s expense only for so long as (i) such Third Party Claim involves only monetary
damages in a civil proceeding and does not seek an injunction or other equitable relief, (ii) the Indemnifying Party expressly agrees in such notice to the Indemnified Party that, as between the Indemnifying Party and the Indemnified Party, the
Indemnifying Party shall be solely obligated to fully satisfy and discharge such third-party claim, and (iii) the Indemnifying Party diligently contests such claim. If the Indemnifying Party does not assume control of such defense, the
Indemnified Party shall control such defense. The party not controlling such defense may participate therein at its own expense; provided that if the Indemnifying Party assumes control of such defense and the Indemnified Party reasonably concludes,
based on advice from counsel, that the Indemnifying Party and the Indemnified Party have conflicting interests with respect to such action, suit, proceeding or claim, the reasonable fees and expenses of counsel to the Indemnified Party solely in
connection therewith shall be considered Damages for purposes of this Agreement; provided, however, that in no event shall the Indemnifying Party be responsible for the fees and expenses of more than one (1) counsel for all Indemnified Parties.
The party controlling such defense shall keep the other party advised of the status of such action, suit, proceeding or claim and the defense thereof and shall consider recommendations made by the other party with respect thereto. The Indemnified
Party shall not agree to any settlement of such action, suit, proceeding or claim without the prior written consent of the Indemnifying Party. The Indemnifying Party shall not agree to any settlement of such action, suit, proceeding or claim that
does not include a complete release of the Indemnified Party from all liability with respect thereto or that imposes any liability or obligation on the Indemnified Party without the prior written consent of the Indemnified Party. 

(b) Procedure for Claims Not Involving Third Parties. An Indemnified Party wishing to assert a claim for indemnification under this
Article IX that does not involve a third-party claim shall deliver to the Indemnifying Party a written notice (a “Claim Notice”) which contains (i) a description and the amount (the “Claim Amount”) of any Damages reasonably
claimed to have been incurred by the Indemnified Party, (ii) a statement that the Indemnified Party is entitled to indemnification under this Article IX and a reasonable explanation of the 

  
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basis therefor and (iii) a demand for payment in the amount of such Damages. Within 30 days after delivery of a Claim Notice, the Indemnifying Party shall deliver to the Indemnified Party a
written response in which the Indemnifying Party shall (A) agree that the Indemnified Party is entitled to receive all of the Claim Amount (in which case if the Indemnifying Party is the Buyer, such response shall be accompanied by a payment by
the Indemnifying Party to the Indemnified Party of the Claim Amount, by check or by wire transfer and (y) if the Indemnifying Party is the Company Participating Equityholders, the Buyer shall be entitled to recover first from the General Escrow
Funds and then by exercising its right of set off pursuant to Section 9.6 with respect to the Claim Amount), (B) agree that the Indemnified Party is entitled to receive part, but not all, of the Claim Amount (the “Agreed Amount”) (in
which case (x) if the Indemnifying Party is the Buyer, such response shall be accompanied by a payment by the Indemnifying Party to the Indemnified Party of the Agreed Amount, by check or by wire transfer and (y) if the Indemnifying Party
is the Company Participating Equityholders, the Buyer shall be entitled to recover first from the General Escrow Funds and then by exercising its right of set off pursuant to Section 9.6 with respect to the Agreed Amount) or (C) contest
that the Indemnified Party is entitled to receive any of the Claim Amount. If the Indemnifying Party in such response contests the payment of all or part of the Claim Amount, the Indemnifying Party and the Indemnified Party shall use good faith
efforts to resolve such dispute. If such dispute is not resolved within 60 days following the delivery by the Indemnifying Party of such response, the Indemnifying Party and the Indemnified Party shall each have the right to submit such dispute to a
court of competent jurisdiction in accordance with the provisions of Section 10.10. 
 9.4 Survival. 

(a) Except as otherwise provided in Sections 9.4(b)-(e), the representations and warranties in this Agreement shall survive the Closing and the
consummation of the transactions contemplated hereby and continue until the date that is eighteen (18) months following the Closing Date, at which time they shall expire. Each of the covenants and agreements contained herein shall survive the
Closing and continue in full force and effect until performed in accordance with their terms. 
 (b) The representations and warranties
contained in Section 3.13 (Environmental Matters) and Section 3.14 (Employee Benefit Plans) shall survive the Closing and the consummation of the transactions contemplated hereby and continue until the date that is two (2) years
following the Closing Date, at which time they shall expire. 
 (c) The representations and warranties contained in Sections 3.10
(Intellectual Property) and 3.20 (Regulatory Matters) shall survive the Closing and the consummation of the transactions contemplated hereby and continue until the date that is three (3) years following the Closing Date, at which time they
shall expire. 
 (d) The representations and warranties contained in Section 3.1 (Organization), Section 3.2 (Capitalization),
Section 3.3 (Subsidiaries), Section 3.5(b) (Excess Closing Liabilities) and Section 3.22 (Brokers) (collectively, the “Fundamental Representations”) and claims based on fraud shall survive the Closing and the consummation of
the transactions contemplated hereby and continue until the date that is 60 days following the expiration of the applicable statutes of limitations (giving effect to any extension or waiver thereof), at which time they shall expire. 

  
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 (e) The representations and warranties contained in Section 3.8 (Taxes) shall survive
the Closing and the consummation of the transactions contemplated hereby and continue until the date that is 60 days following the expiration of the applicable statutes of limitations (giving effect to any extension or waiver thereof), at which time
they shall expire. 
 (f) If an indemnification claim is properly asserted in writing pursuant to Section 9.3 prior to the expiration as
provided in Sections 9.4(a)-(e) of the representation, warranty, covenant or agreement that is the basis for such claim, then such representation, warranty, covenant or agreement shall survive until, but only for the purpose of, the resolution of
such claim. 
 9.5 Limitations. 

(a) Notwithstanding anything to the contrary contained in this Agreement, the Buyer Indemnified Parties shall not be permitted to recover any
Damages incurred or suffered by Buyer Indemnified Parties resulting from any breach by the Company of its representations and warranties pursuant to Section 9.1(a) (other than with respect to the Fundamental Representations) until all Damages
incurred by the Buyer Indemnified Parties pursuant to such section exceed $150,000 in the aggregate, at which point the Buyer shall be entitled to recover all such Damages in excess of $150,000. Solely for the purpose of determining the existence
of, and calculating the amount of any Damages arising out of or resulting from, any breach of any representation or warranty of the Company contained in this Agreement (other than any breach of any representation or warranty contained in
Section 3.6(ii) (Absence of Certain Changes)) or the certificates required by Sections 7.2(a), and 7.3(a), such representation or warranty shall be read without regard to any Material Adverse Effect or materiality qualifiers contain therein.

 (b) In no event shall any Indemnifying Party be responsible or liable for any Damages or other amounts under this Article IX that are
consequential, special or punitive or otherwise not actual damages; provided, however, that this sentence shall not apply to or limit in any respect any claim by the Company Participating Equityholders based on a breach of
Section 2.5(c) or 2.5(d) (other than any such damages payable to third parties). Each party shall (and shall cause its Affiliates to) use commercially reasonable efforts to mitigate the Damages for which indemnification is provided to it under
this Article IX. 
 (c) The amount of Damages recoverable by an Indemnified Party under this Article IX with respect to an indemnity claim
shall be reduced by the amount of any insurance payment received by such Indemnified Party (or an Affiliate thereof) with respect to such indemnity claim less any costs of recovery and resulting increases in premiums. An Indemnified Party shall use
reasonable commercial efforts to pursue, and to cause its Affiliates to pursue, all insurance claims to which it may be entitled in connection with any Damages it incurs, and the parties shall cooperate with each other in pursuing insurance claims
with respect to any Damages or any indemnification obligations with respect to Damages. If an Indemnified Party (or an Affiliate) receives any insurance payment in connection with any claim for Damages for which it has already been indemnified by
the Indemnifying Party, it shall pay to the Indemnifying Party, within 30 days of receiving such insurance payment, an amount equal to the excess of (i) the amount previously received by the Indemnified Party under this Article IX with respect
to such claim plus the amount of the insurance payments received, over (ii) the amount of Damages with respect to such claim which the Indemnified Party has become entitled to receive under this Article IX. 

  
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 (d) Except with respect to claims for equitable relief made with respect to breaches of any
covenant or agreement contained in this Agreement, (i) the rights of the Indemnified Parties under this Article IX and Section 6.10(c) shall be the sole and exclusive remedies of the Indemnified Parties and their respective Affiliates with
respect to claims under, or otherwise relating to the transactions that are the subject of, this Agreement and (ii) the right to (x) seek recourse against the General Escrow Funds and the Tax Escrow Funds and
(y) set-off set forth in Section 9.6 shall be the sole and exclusive means for the Buyer Indemnified Parties to collect any Damages for which they are entitled to indemnification under this Article
IX. Without limiting the generality of the foregoing, in no event shall any party, its successors or permitted assigns be entitled to claim or seek rescission of the transactions consummated by this Agreement. 

(e) For purposes of this Article IX, (i) if the Company Participating Equityholders comprise the Indemnifying Party, any references to the
Indemnifying Party (except provisions relating to an obligation to make any payments) shall be deemed to refer to the Indemnification Representative and (ii) if the Company Participating Equityholders comprise the Indemnified Party, any
references to the Indemnified Party (except provisions relating to an obligation to make or a right to receive any payments) shall be deemed to refer to the Indemnification Representative. 

9.6 Right of Set Off. 
 (a)
In the event that the Buyer has made a good faith claim for indemnification in accordance with this Article IX or Section 6.10(c), and any Product Payments are required to be made after such time that Wyeth received $20,000,000 as contemplated
by Section 2.6(a)(i), then such Product Payments shall be reduced by an aggregate amount (a “Set Off Amount”) equal to the Claim Amount stated in the Claim Notice or Third Party Claim Notice, as applicable, for such indemnification
claim to the extent such Claim Amount has not been recovered from the remaining Tax Escrow Funds or General Escrow Funds, as applicable, or pursuant to this Section 9.6(a); provided, however, that the Set Off Amount resulting from any claim for
indemnification pursuant to Section 9.1(a) shall not exceed 15% of such Product Payment. 
 (b) In any case where the Buyer is entitled
to reduce a Product Payment pursuant to Section 9.6(a), the Buyer shall, on the date on which the payment of each Product Payment with respect to which such right was exercised would otherwise have been due, deliver a written notice to the
Indemnification Representative stating that Buyer has exercised its rights thereunder with respect to such Product Payment, the amount of the applicable Set Off Amount and an identification of the Claim Notice that provides notice of the claim that
is the basis of the Buyer’s having exercised its rights in this Section 9.6. 

  
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 (c) In any case where the Buyer retains a Set Off Amount pursuant to this Section 9.6,
if it is later determined that the Buyer was not entitled to indemnification with respect to all or any portion of such Set Off Amount by (i) a final, non appealable judgment of a court of competent jurisdiction, (ii) a final, binding
resolution of an arbitrator or (iii) the mutual agreement of Buyer and the Indemnification Representative, Buyer shall promptly (and, in any event, within 10 Business Days) pay the Set Off Amount with respect to which Buyer was not entitled to
indemnification to the party or account designated by the Indemnification Representative for distribution pursuant to Section 2.6(b). 

9.7 Treatment of Indemnity Payments. Any payments made to an Indemnified Party pursuant to this Article IX or Section 6.10(c) shall
be treated as an adjustment to the Applicable Merger Consideration for tax purposes to the extent permitted by law. 
 ARTICLE X 

MISCELLANEOUS 
 10.1
Notices. All notices and other communications hereunder shall be in writing and shall be deemed duly delivered (i) four Business Days after being sent by registered or certified mail, return receipt requested, postage prepaid,
(ii) one Business Day after being sent for next Business Day delivery, fees prepaid, via a reputable nationwide overnight courier service or (iii) on the date of confirmation of receipt (or, the first Business Day following such receipt if
the date of such receipt is not a Business Day) of transmission by facsimile, in each case to the intended recipient as set forth below: 

(a) if to the Buyer or the Transitory Subsidiary, to 

Cornerstone Therapeutics, Inc. 

1255 Crescent Green Drive, Suite 250 

Cary, NC 27518 
 [####] 

[####] 
 with a copy to: 

Dechert LLP 
 902 Carnegie
Center 
 Suite 500 

Princeton, NJ 08540-6531 

[####] 
 [####] 

(b) if to the Company, to 

Cardiokine, Inc. 
 30 South 15th Street, 15th Floor 
 Philadelphia,
PA 19102 
 Attn: Chief Executive Officer 

[####] 

  
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 with a copy to: 

Wilmer Cutler Pickering Hale and Dorr LLP 

60 State Street 
 Boston,
Massachusetts 02109 
 [####] 

[####] 
 [####] 

(c) if to the Indemnification Representative, to 

Shareholder Representative Services LLC 

601 Montgomery Street, Suite 2020 

San Francisco, CA 94111 
 [####]

 [####] 
 [####] 

[####] 
 with a copy (which
shall not constitute notice) to: 
 Wilmer Cutler Pickering Hale and Dorr LLP 

60 State Street 
 Boston,
Massachusetts 02109 
 [####] 

[####] 
 [####] 

Any party to this Agreement may give any notice or other communication hereunder using any other means (including personal delivery, messenger
service, ordinary mail or electronic mail), but no such notice or other communication shall be deemed to have been duly given unless and until it actually is received by the party for whom it is intended. Any party to this Agreement may change the
address to which notices and other communications hereunder are to be delivered by giving the other parties to this Agreement notice in the manner herein set forth. 

10.2 Entire Agreement. This Agreement (including the Company Disclosure Schedule, the Buyer Disclosure Schedule and the Schedules and
Exhibits hereto and the documents and instruments referred to herein that are to be delivered at the Closing) constitutes the entire agreement among the parties to this Agreement and supersedes any prior understandings, agreements or representations
by or among the parties hereto, or any of them, written or oral, with respect to the subject matter hereof; provided that the Confidentiality Agreement shall remain in effect in accordance with its terms until the Effective Time. 

  
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 10.3 No Third Party Beneficiaries. This Agreement is not intended to, and shall not,
confer upon any other person or entity any rights or remedies hereunder, except (a) with respect to Section 6.6 (with respect to which the Company Indemnified Parties shall be third party beneficiaries), (b) with respect to
Section 6.10 (with respect to which the Company Participating Equityholders shall be third party beneficiaries), (c) with respect to Section 9.2 (with respect to which the Company Participating Equityholders shall be third party
beneficiaries), (d) prior to the Effective Time, for the right of Company Participating Equityholders to pursue claims for damages (including damages based on loss of the economic benefits of the transaction to the Company Participating
Equityholders) and other relief (including equitable relief) for any breach of this Agreement by the Buyer or the Transitory Subsidiary, whether or not this Agreement has been validly terminated pursuant to Article VIII, which right is hereby
expressly acknowledged and agreed by the Buyer and the Transitory Subsidiary, and (b) from and after the Effective Time, the rights of Company Participating Equityholders to receive the consideration set forth in Article II. The rights granted
pursuant to clause (d) of this Section 10.3 shall only be enforceable on behalf of the Company Participating Equityholders by the Company in its sole and absolute discretion, as agent for the Company Participating Equityholders and,
consequently, any damages, settlements or other amounts recovered or received by the Company with respect to such claims (net of expenses incurred by the Company in connection therewith) may, in the Company’s sole and absolute discretion, be
(i) distributed, in whole or in part, by the Company to the Company Participating Equityholders or (ii) retained by the Company for the use and benefit of the Company on behalf of the Company Participating Equityholders in any manner the
Company deems fit. In addition, no provision of this Agreement shall be deemed to be the adoption of, or an amendment to, any employee benefit plan, as that term is defined in Section 3(3) of ERISA, or otherwise to limit the right of the
Company or Buyer to amend, modify or terminate any such employee benefit plan. 
 10.4 Assignment. Neither this Agreement nor any of
the rights, interests or obligations under this Agreement may be assigned or delegated, in whole or in part, by operation of law or otherwise by any of the parties hereto without the prior written consent of the other parties, and any such
assignment without such prior written consent shall be null and void, except that the Buyer or the Transitory Subsidiary may transfer or assign its rights and obligations under this Agreement, in whole or from time to time in part, to one or more of
their Affiliates; provided that such transfer or assignment shall not relieve the Buyer or the Transitory Subsidiary of its primary liability for its obligations hereunder or enlarge, alter or change any obligation of any other party hereto
or due to the Buyer or the Transitory Subsidiary. Subject to the preceding sentence, this Agreement shall be binding upon, inure to the benefit of, and be enforceable by, the parties hereto and their respective successors and permitted assigns. 

10.5 Severability. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall
not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction. If the final judgment of a court of
competent jurisdiction declares that any term or provision hereof is invalid or unenforceable, the parties hereto agree that the court making such determination shall have the power to limit the term or provision, to delete specific words or
phrases, or to replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this Agreement

  
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shall be enforceable as so modified. In the event such court does not exercise the power granted to it in the prior sentence, the parties hereto agree to replace such invalid or unenforceable
term or provision with a valid and enforceable term or provision that will achieve, to the extent possible, the economic, business and other purposes of such invalid or unenforceable term. 

10.6 Counterparts and Signature. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original
but all of which together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each of the parties hereto and delivered to the other parties, it being understood that all parties need not
sign the same counterpart. This Agreement may be executed and delivered by facsimile or .pdf transmission. 
 10.7 Interpretation.
Except where expressly stated otherwise in this Agreement, the following rules of interpretation apply to this Agreement: (i) “either” and “or” are not exclusive and “include,” “includes” and
“including” are not limiting; (ii) “hereof,” “hereto,” “hereby,” “herein” and “hereunder” and words of similar import when used in this Agreement refer to this Agreement as a whole and not
to any particular provision of this Agreement; (iii) “date hereof” refers to the date set forth in the initial caption of this Agreement; (iv) “extent” in the phrase o the extent” means the degree to which a subject or other
thing extends, and such phrase does not mean simply “if”; (v) descriptive headings, the table of defined terms and the table of contents are inserted for convenience only and do not affect in any way the meaning or interpretation of this
Agreement; (vi) definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms; (vii) references to a person or entity are also to its permitted successors and assigns;
(viii) references to an “Article,” “Section,” “Exhibit” or “Schedule” refer to an Article or Section of, or an Exhibit or Schedule to, this Agreement; (ix) references to “$” or otherwise to
dollar amounts refer to the lawful currency of the United States; (x) references to a federal, state, local or foreign statute or law include any rules, regulations and delegated legislation issued thereunder; and (xi) references to a
communication by a regulatory agency include a communication by the staff of such regulatory agency. The language used in this Agreement shall be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of
strict construction shall be applied against any party hereto. No summary of this Agreement prepared by any party shall affect the meaning or interpretation of this Agreement. 

10.8 Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware
without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of laws of any jurisdictions other than those of the State of Delaware. 

10.9 Remedies. Except as otherwise provided herein, any and all remedies herein expressly conferred upon a party will be deemed
cumulative with and not exclusive of any other remedy conferred hereby, or by law or equity upon such party, and the exercise by a party of any one (1) remedy will not preclude the exercise of any other remedy. 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 an
injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement, this being in addition to any other remedy to which they are entitled at law or in equity. 

  
 63 

 10.10 Submission to Jurisdiction. Each of the parties to this Agreement
(a) consents to submit itself to the exclusive personal jurisdiction of the Court of Chancery of the State of Delaware, New Castle County, or, if that court does not have jurisdiction, a federal court sitting in Wilmington, Delaware in any
action or proceeding arising out of or relating to this Agreement or any of the transactions contemplated by this Agreement, (b) agrees that all claims in respect of such action or proceeding may be heard and determined in any such court,
(c) agrees that it shall not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court and (d) agrees not to bring any action or proceeding arising out of or relating to this Agreement or
any of the transactions contemplated by this Agreement in any other court. Each of the parties hereto waives any defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety or other security
that might be required of any other party with respect thereto. Any party hereto 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 the giving of
notices in Section 10.1. Nothing in this Section 10.10, however, shall affect the right of any party to serve legal process in any other manner permitted by law. 

10.11 Disclosure Schedules. The Company Disclosure Schedule and the Buyer Disclosure Schedule shall each be arranged in Sections
corresponding to the numbered Sections contained in Article III, in the case of the Company Disclosure Schedule, or Article IV, in the case of the Buyer Disclosure Schedule, and the disclosure in any Section shall qualify (a) the corresponding
Section in Article III or Article IV, as the case may be, and (b) the other Sections in Article III or Article IV, as the case may be, to the extent that it is reasonably apparent from a reading of such disclosure that it also qualifies or
applies to such other Sections. The inclusion of any information in the Company Disclosure Schedule or the Buyer Disclosure Schedule, or in any update thereto, shall not be deemed to be an admission or acknowledgment, in and of itself, that such
information is required by the terms hereof to be disclosed, is material, has resulted in or would reasonably be expected to result in a Company Material Adverse Effect or a Buyer Material Adverse Effect, or is outside the ordinary course of
business. 
 10.12 Company’s Knowledge. For purposes of this Agreement, the term “Company’s Knowledge” means the
actual knowledge as of the date hereof of each of Amber Salzman, Mark Guerin, Cesare Orlandi, Leonard Selihar and Roger Hunter. 

[Signature page follows] 

  
 64 

 IN WITNESS WHEREOF, the Buyer, the Transitory Subsidiary and the Company have caused this
Agreement to be signed by their respective officers thereunto duly authorized as of the date first written above. 
  

			
	CORNERSTONE THERAPEUTICS, INC.
		
	By:	 	 /s/ Craig A. Collard

		 	Name: Craig A. Collard
		 	Title:   Chief Executive Officer
	
	COHESION MERGER SUB, INC.
		
	By:	 	 /s/ Andrew Powell

		 	Name: Andrew Powell
		 	Title:   President
	
	CARDIOKINE, INC.
		
	By:	 	 /s/ Amber Salzman

		 	Name: Amber Salzman
		 	Title:  Cheif Executive Officer
	
	SHAREHOLDER REPRESENTATIVE
	SERVICES LLC, solely in its capacity as the
	Indemnification Representative
		
	By:	 	 /s/ Mark B. Vogel

		 	Name: Mark B. Vogel
		 	Title:   Managing Director

 [Signature Page to Merger Agreement}

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