Document:

Exhibit 10.25

Exhibit 10.25

DEVELOPMENT AGREEMENT

This DEVELOPMENT AGREEMENT (the “Agreement”), dated as of this 14 day of December, 2009 is made
by and between Unilife Cross Farm, LLC, a Delaware limited liability company (the “Owner”), and
Keystone Redevelopment Group, LLC, a Pennsylvania limited liability company (“Developer”).

RECITALS:

A. Owner has purchased in fee simple certain property located at 250 Cross Farm Lane, York
County, Pennsylvania (the “Property”), containing approximately 35 acres, as more particularly
described on Exhibit A attached hereto.

B. Owner desires to develop the Property by constructing an approximately 170,000 square foot
office, manufacturing, warehousing and distribution building with related improvements (the
“Improvements”).

C. Owner desires to retain the Developer for the purpose of assisting in overseeing the design
and construction of the Property (collectively, the “Project”), and the Developer has agreed to
perform such duties, pursuant to the provisions of this Agreement.

D. Owner also desires to retain the Developer for the purpose of assisting in securing
financing for the Project, and the Developer has agreed to perform such duties, pursuant to the
provisions of this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties
hereto, intending to be legally bound, hereby agree as follows:

1. Definitions

1.1 As used herein:

“Approved Plans” has the meaning set forth in Section 3.1(a) hereof.

“Certificate of Occupancy” means a certificate of occupancy issued by Conewago
Township, York County, Pennsylvania, evidencing permission to commence general occupancy of the
Improvements and compliance with applicable building codes.

“Commitments” has the meaning set forth in Section 3.2(b) hereof.

“Completion Date” means the date of actual completion of the Improvements, as
certified by the architect or engineer in charge of the Project retained by the Owner.

“Construction Activities” means all of the various activities and duties of the
Developer set forth in Section 3.1 hereof, including, but not limited to, those activities and
duties enumerated in the various subsections of Section 3.1.

 

 

 

“Construction Contract” has the meaning set forth in Section 3.1(b) hereof.

“Consultants” has the meaning set forth in Section 3.1(a) hereof.

“Contractors” has the meaning set forth in Section 3.1(b) hereof.

“Development and Construction Budget” means the budget and completion schedule for the
Project set forth as Exhibit B and more fully described in Section 3.1(a) hereof, as amended in
accordance with terms hereof, from time to time.

“Development Fee” has the meaning set forth in Section 5.1 hereof.

“Factory Access” means the date that Owner has access to Improvements which have been
completed sufficiently to allow commencement of the safe, secure installation of production
equipment.

“Force Majeure” means (i) any material labor disputes, fire, damage, unusual delay in
transportation, adverse weather conditions not reasonably anticipatable or other Acts of God; (ii)
any Untimely Consent by Owner.

“Financing” has the meaning set forth in Section 3.2 hereof.

“Improvements” has the meaning set forth in the recitals hereto.

“Project” has the meaning set forth in the recitals hereto.

“Project Completion Cost” means the projected cost of completing the Project as set
forth in the Development and Construction Budget.

“Project Financing” has the meaning set forth in Section 3.2(a) hereof.

“Project Schedule” means the Project Schedule set forth as Exhibit C and which is more
fully described in Section 3.1(a) hereof and which shall be in final form and approved by Owner, as
the same may thereafter be amended in accordance with the terms hereof.

“Project Team” has the meaning set forth in Section 2.3 hereof.

“Property” has the meaning set forth in the recitals hereto.

“Public Financing” has the meaning set forth in Section 3.2(a) hereof.

“Untimely Consent” means any consent or approval required of Owner under the terms
hereof, in connection with any matter, which consent is given on an untimely basis; provided,
however, that no Untimely Consent shall have occurred hereunder if the consent of all other parties
required in connection with such matter (other than parties affiliated with or under common control
with Owner) has not been given.

 

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2. Appointment of Developer

2.1 The Owner hereby appoints the Developer, and the Developer hereby accepts such
appointment, on the terms and conditions, and subject to the limitations, hereinafter set forth, as
the developer of the Project for and on behalf of the Owner to assist Owner in its efforts to
develop the Project and assist Owner in its efforts to complete the Improvements as hereinafter
provided. The Developer recognizes that a relationship of trust and confidence is created by this
Agreement and shall perform those services that are set forth herein, together with such services
as are reasonably incidental thereto, so as to effect the timely, efficient, and economic
development and operation of the Project.

2.2 The appointment of the Developer shall be for a term commencing on the date hereof and
ending on the Completion Date or the earlier termination of this Agreement pursuant to Article 6.

2.3 Developer shall designate a development team comprised of its personnel (“Project Team”)
to enable it to perform its duties hereunder. The Project Team is listed on Exhibit D hereto.

3. Duties of the Developer

3.1 The Developer shall assist Owner in its efforts to cause the Improvements to be completed
in a timely manner in accordance with the requirements of the Project Schedule, the Development and
Construction Budget, and the Approved Plans. The services that the Developer shall perform, or
cause to be performed, include, but are not limited to, the following:

(a) (i) The Developer shall assist the Owner in the selection of, negotiation of contracts
with, and review of the services of, all architects, engineers, designers and other experts and
consultants (collectively, the “Consultants”) necessary for the provision of architectural,
engineering, design and other services for the Project, including the preparation of detailed
plans, specifications, completion schedules, budgets and drawings (herein, as approved in writing
by the Owner called the “Approved Plans”).

(ii) The Approved Plans, the Development and Construction Budget (as defined herein) and the
Project Schedule (as defined herein) shall each be approved in writing by Owner.

(iii) The Development and Construction Budget shall set forth in reasonable detail the steps
necessary to accomplish the completion of the Project in accordance with the Approved Plans and
shall set forth the overall Project Completion Cost. The Development and Construction Budget
described in this Section 3.1(a) shall be referred to herein as the “Development and Construction
Budget.” The Developer shall assist Owner in preparing the Development and Construction Budget and
in creating a schedule to be approved in writing by the Owner, based upon the Approved Plans and
the Development and Construction Budget, setting forth anticipated project milestones and the
target Completion Date (the “Project Schedule”).

 

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(b) The Developer shall assist the Owner in the selection of contractors (the “Contractors”)
for the Project, and in the negotiation of maximum fixed price construction contracts as determined
by Owner (the “Construction Contracts”) for the Project, and Developer shall assist the Owner in
supervising and coordinating the services of the Contractors.

(c) The Developer shall assist Owner in its efforts to administer and use all reasonable
efforts to enforce all obligations of the Contractors, the Consultants, and other contractors under
their respective contracts and shall advise Owner of any non-compliance by these parties on a
timely basis. Developer shall maintain appropriate records with respect thereto.

(d) The Developer shall monitor all development and construction work as it progresses, shall
review the work of subcontractors and materialmen by the Contractors, the Consultants, testing
agents, and other consultants and review their inspection reports, shall assist Owner in its
efforts to expedite completion of the Project as economically and as efficiently as possible, but
in conformity with the Approved Plans, the Construction Contract and other contract documents, the
Development and Construction Budget, and the Project Schedule.

(e) The Developer shall assist Owner in its efforts to require the Contractors, or other
relevant contractors, to correct any defects in the construction of the Project, or in the
installation, quality, or operation of any items, equipment, or fixtures therein.

(f) The Developer shall hold periodic meetings not less frequently than once every two weeks,
with the Owner and any of its respective representatives, to review the progress of development and
completion of the Project.

(g) The Developer shall consult with the Consultants and the Contractors and, in connection
therewith, shall review conceptual designs and plans and specifications during development, and,
after consultation with Owner, advise on site use and improvements, and provide recommendations on
relative construction feasibility and factors relating to cost, all for the purpose of assisting
Owner in its efforts to keep the progress of the development of the Project within the costs and
timetable established by the Development and Construction Budget and the Project Schedule and for
the purpose of assisting Owner in its efforts to obtain and maintain the quality of the
construction of the Project established by the Approved Plans.

(h) The Developer shall use reasonable efforts to (singly, or with the assistance of the
Consultants or the Contractors) assist the Owner in its efforts to obtain all necessary approvals,
licenses, permits, certificates, and authorizations from all governmental authorities having
jurisdiction over the Project in connection with the development and the completion and occupancy
of the Project; and, Owner shall cooperate with Developer in connection with any necessary
requirements applicable to Owner and related to obtaining such items.

 

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(i) The Developer shall, in conjunction with the Consultants and the Contractors, obtain and
provide the Owner with information in connection with any potential or anticipated Force Majeure
and any proposed change, revision, supplementation, or updating of the Approved Plans, Development
and Construction Budget, or Project Schedule. Such
information shall, among other things, include updating estimates of the cost of development
and timing of the completion of the Project, including a trade payment breakdown, and shall
indicate, on a cash basis, the anticipated sources of funds to finance such development and
completion and the anticipated dates when such funds will be required. Any and all change orders,
regardless whether or not resulting from any such proposed revisions, shall only be effective with
the written approval of the Owner.

(j) The Developer shall prepare and update, or assist the Owner in preparing and updating,
cash flow projections and capital and income and expense budgets for the Project, which shall
include proposed revisions and updates if reasonably necessary. All capital and income and expense
budgets and all cash flow projects, together with all revisions and updates thereto, shall be
subject to the written approval of Owner.

(k) The Developer shall promptly advise the Owner, of any known delays or anticipated delays
in meeting the Project Schedule or the Development and Construction Budget and the reasons
therefore.

(l) The Developer shall consult with the Owner regarding recommended insurance coverages and
the terms of any policies. Owner shall procure and maintain in effect, or cause to be procured and
maintained in effect, at all times during the course of construction, on behalf of the Owner and
any lender, worker’s compensation insurance, comprehensive general liability insurance in all risk
form, property damage insurance, and fire and extended coverage insurance carried in builder’s risk
form on a completed value basis, all of which insurance shall be effected under valid and
enforceable policies, from such insurers, in such forms, and in such amounts as shall be approved
by the Owner, naming Developer as an additional insured. The Developer shall also assist the Owner
in its attempts to require the Consultants and the Contractors to carry errors and omissions
coverage acceptable to the Owner in addition to such Builder’s Risk all risk coverages required,
naming Developer as an additional insured.

(m) The Developer shall promptly notify the Owner of any suit, proceeding, or other action
commenced or taken against or threatened all or any portion of the Project or against the Owner of
the Developer which may in any way be related to the Project or any portion thereof.

3.2 The Developer shall assist the Owner in its efforts to place Eighteen Million Dollars
($18,000,000) in financing, on terms and conditions satisfactory to Owner, for the Project (the
“Financing”).

(a) The Developer shall assist Owner in its efforts to locate the Financing from commercial
banks and other lending institutions (“Project Financing”) and/or from the Commonwealth of
Pennsylvania in a manner more particularly described in that certain letter from the Department of
Community and Economic Development to Owner dated October 16, 2009 (“Public Financing”).

(b) The Developer shall assist Owner in its efforts to deliver to Owner commitments for the
Financing (the “Commitments”) on or before December 31, 2009.

 

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(c) The amount of the Financing may be amended with the written consent of the parties; such
consent shall not be unreasonably withheld where the reason for such amendment is to reflect actual
or projected deviations from the projected costs associated with developing the Property and
building the Facility and any and all activities associated therewith and such amendment will not
materially impact the dates of Factory Access or issuance of a Certificate of Occupancy.

3.3 The Developer shall use reasonable efforts to accomplish the completion of the Project in
accordance with the Approved Plans and at a cost within the Development and Construction Budget on
or before the dates set forth in the Project Schedule.

3.4 Neither party shall be liable for damages or have the right to terminate this Agreement
for any delay or default to the extent caused by an event of Force Majeure. Dates by which
performance obligations are scheduled to be met will be extended for a period of time equal to the
time lost because of the event of Force Majeure. Notwithstanding the foregoing, Owner may
terminate this Agreement without any further obligation to Developer if the Commitments are not
received on or before December 31, 2009, provided however, to the extent negotiations with a
specific lender began prior to December 31, 2009, are actively and continuously occurring with the
consent and participation of Owner, then such date shall be extended during the period of such
active and continuous negotiation and Owner’s right to terminate shall expire if Commitments are
received as a result of such active and continuous negotiation.

4. Limitations on the Developer’s Authority

Notwithstanding anything to the contrary contained in this Agreement:

4.1 No sum shall be expended by Developer which causes an overrun of any cost category set
forth in the Development and Construction Budget unless the same has been approved in advance in
writing by the Owner.

4.2 No contract, instrument, or document relating to the Project, and no modifications or
amendment thereof, shall be entered into by the Developer unless approved in writing by the Owner.

4.3 No change order or any change to the: (a) Approved Plans, (b) Project Schedule, (c)
Projected Completion Cost, (d) Development and Construction Budget, (e) Construction Contract, or
(f) Project Schedule shall occur or be made without the prior written consent of Owner.

4.4 The Developer shall not exceed the scope of its authority under this Agreement.

5. Compensation 

5.1 As payment for its services hereunder, the Developer shall be paid by Owner, an amount
equal to Seven Hundred Fifty Four Thousand Dollars ($754,000) (the “Development Fee”). The
Development Fee shall be subdivided into four components, which shall be payable as follows:

(a) Fifty Thousand Dollars ($50,000) shall be paid upon the execution of this Agreement (the
“Initial Payment”).

 

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(b) An amount equal to one third (1/3) of the Development Fee less the Initial Payment shall
be paid in six (6) equal monthly installments, on the first day of every month, during the period
beginning on January 1, 2010, and running through the projected date of Factory Access, June 1,
2010 (the “Progress Payments”).

(i) In the event that the actual date of Factory Access occurs before June 1, 2010, the
remaining Progress Payments shall be accelerated and payable within thirty (30) days of the actual
date of Factory Access.

(ii) In no event shall the Progress Payments continue beyond June 1, 2010, even if the actual
date of Factory Access occurs thereafter.

(c) An amount equal to one third (1/3) of the Development Fee less the Initial Payment shall
be paid on the date of Factory Access.

(d) The balance of the Development Fee shall be paid upon the issuance of the Certificate of
Occupancy.

5.2 The Development Fee is intended to cover and the Owner shall have no obligation to
reimburse Developer for, among other things, (i) any administrative costs, overhead, profit, or
indirect costs of the Developer, (ii) salaries of personnel of the Developer, and (iii) any other
costs or expenses incurred by Developer in the performance of its obligations hereunder; and no
payment or other value, other than the Development Fee, shall be paid or provided by the Owner to
the Developer in connection herewith except expenses expressly reimbursable by Owner in accordance
with the terms hereof, except as provided for elsewhere in this Agreement.

5.3 Notwithstanding anything for the contrary contained herein, nothing in this Agreement
shall obligate or require Developer or any party related to Developer to sign any contract
including any contract relating to the Financing such as a loan, note, mortgage or guarantee.

6. Term

6.1 Subject to the terms hereof, the term of this Agreement shall commence as of the date
hereof and shall terminate, unless extended or renewed in writing in accordance with Section 9.2
hereof, on the date of the issuance of the Certificate of Occupancy.

6.2 Owner may terminate this Agreement on December 31, 2009 if Developer has not delivered the
Commitments to Owner pursuant to Developer’s duties under Section 3.2 hereof (subject to extension
as set forth in Section 3.4). If this Agreement is terminated for any reason, Developer shall
retain the Initial Payment.

 

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7. Limitation of Liability; Indemnification

7.1 The Developer shall not be liable to the Owner on account of the acts (whether negligent
or otherwise), omissions, errors or breaches of contract by the Contractors or subcontractor or
materialmen, the Consultants and any other professionals or consultants engaged on the Project.

7.2 Owner shall indemnify, defend, and hold the Developer harmless from and against any
liability, damages, costs, claims and expenses (including reasonable attorney’s fees) brought by
any third parties (excluding the Owner and its affiliates) arising out of the Developer’s
performance of this Agreement, except to the extent such liability, damages, costs, claims, and
expenses arise as a result of Developer’s gross negligence, willful misconduct or intentionally
tortious conduct.

7.3 Notwithstanding anything to the contrary contained herein, Owner’s sole and exclusive
remedy against Developer for any breach of this Agreement by Developer or non-performance by
Developer under this Agreement shall be to withhold the payments under Section 5.1(c), if Factory
Access is not achieved because of such breach or nonperformance or to withhold payments under
Section 5.1(d), if the Certificate of Occupancy is not achieved because of such breach or
nonperformance. Otherwise, Developer shall have no liability to Owner under this Agreement.

8. Access

8.1 The Owner, shall during reasonable business hours at any time and from time to time during
the term of this Agreement, have access to, and be permitted to inspect and copy, all records,
financial statements, receipts, vouchers, and documents which are in the possession and control of
the Developer relating to the development and the completion of the Project.

9. General Provisions

9.1 All notices or other communications which are required or permitted hereunder
(collectively, “notices”) shall be in writing and shall be deemed sufficiently given if telescoped
with confirmation from the sending machine of satisfactory receipt by the receiving machine,
delivered personally, or sent by registered or certified mail, postage prepaid, to the party for
whom intended, addressed as follows:

if to Owner:

Unilife Cross Farm, LLC

c/o Unilife Corporation

633 Lowther Road

Lewisberry, PA 17339

Telecopy: 717-932-9110

 

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if to Developer:

Robert L. Ventresca

Keystone Redevelopment Group, LLC

242 Wood Street

Doylestown, PA 18901

Telecopy: 215-348-7532

or, as to either party, to such other person or address or number as such party may specify in a
notice duly given to the other party as provided herein. All notices shall be deemed to have been
given as of the date received if personally delivered, on the time of completion of the telecopy
transmission, or three days after the date mailed.

9.2 This Agreement constitutes the entire Agreement between the Parties with respect to the
subject matter hereof. No extension, renewal, waiver, or modification of the terms hereof shall be
valid unless in writing signed by the party to be charged and only to the extent therein set forth.

9.3 This Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns.

9.4 All questions with respect to the construction of this Agreement and the rights and
liabilities of the parties shall be determined in accordance with the applicable provisions of the
laws of the Commonwealth of Pennsylvania, without regard to its conflicts of laws provisions.

9.5 If any term, covenant, or condition of this Agreement, shall, to any extent, be held
invalid or unenforceable, the remainder of this Agreement shall not be affected thereby and each
term, covenant, and condition of this Agreement shall be separately valid and enforceable to the
fullest extent permitted by law.

9.6 All rights, privileges, and remedies afforded to the parties by this Agreement shall be
cumulative and not exclusive, and the exercise of any one of such remedies shall not be deemed to
be a waiver of any other rights, remedies, or privileges provided for herein or available at law or
in equity.

9.7 The failure of either party to seek redress for violation, or to insist upon the strict
performance, of any covenant, agreement, provision or condition of this Agreement shall not
constitute a waiver thereof and such party shall have all remedies provided for herein or by
applicable law with respect to the same or any subsequent act or omission which constitutes such
violation or non-performance.

9.8 The captions appearing in this Agreement are inserted only as a matter of convenience and
for reference and in no way define, limit or describe the scope and intent of this Agreement or any
of the provisions hereof.

9.9 No consent, authorization, approval, waiver, or similar action of Owner hereunder shall be
valid unless provided to Developer in a writing executed by the Owner.

 

9

 

9.10 This Agreement will be deemed to have been made and delivered in Pennsylvania and each of
the undersigned hereby (i) agrees that any suit, action or proceeding arising out of or relating to
this Agreement shall be instituted exclusively in Courts of Common Pleas or in the United States
District Court located in the Commonwealth of Pennsylvania, and (ii) irrevocably consents to the
jurisdiction of the Courts of Common Pleas and the United States District Courts of Pennsylvania in
any such suit, action or proceeding.

IN WITNESS WHEREOF, and intending to be legally bound hereby, the parties hereto have duly
executed this Agreement as of the day and year first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Keystone Redevelopment Group, LLC	 	Unilife Cross Farm, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Robert L. Ventresca	 	By:	 	/s/ Alan Shortall	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Printed Name: 
	 	Robert L. Ventresca
	 	 	 	Printed Name: 	 	Alan Shortall	 	 
	 

	 	Title:
	 	Manager
	 	 	 	Title:
	 	CEO	 	 

 

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List of Exhibits

	 	 	 
	Exhibit A

	 	“Property”
	Exhibit B

	 	Development and Construction Budget
	Exhibit C

	 	Project Schedule
	Exhibit D

	 	Project Team

 

Exhibits-1

 

Exhibit A

Property

 

Exhibits-2

 

EXHIBIT A

LEGAL DESCRIPTION

FOR

GREENSPRING PARTNERS, LP

All that certain tract of land situate in the Township of Conewago, County of York, Commonwealth of
Pennsylvania, being a portion of lands now or formerly owned by Dale R. and Phyllis L Clymer, by
Deed Book 82M, Page 764, being known as Lot 1A as shown on a Subdivision Plan, recorded at the
Office; of the Recorder of Deeds for York County, Commonwealth of Pennsylvania, in Deed Book
1792, Page 6035, prepared by First Capital Engineering, drawing number 12135SD00,
for Greenspring Partners, LP, said tract being more fully bounded and described as follows to wit:

BEGINNING at a point in the centerline of Susquehanna Trail (Township Road T-956) having a legal
right-of-way of eighty and zero hundredths feet (80.00 Ft.), said point being the intersection of
the centerline of Susquehanna Trail (T-956) and the centerline of Cross Farm Lane [to be
constructed and to have a right-of-way of sixty and zero hundredths feet (60.00 Ft.)];

THENCE by the centerline of Susquehanna Trail (T-956) and on a curve to the loft having s
radius of one-thousand, four-hundred thirty-eight and thirteen hundredths feel (1,438.13 Ft.), an
arc length of one and thirty-six hundredths feet (1.36 Ft.), a chord bearing of South one degree,
twenty-two minutes, and twenty-one seconds West (S 01° 22’ 21” W), and a chord length of one and
thirty-six hundredths feet (1.36 Ft) to a point;

THENCE continuing by the centerline of Susquehanna Trail (T-9 56) South zero degress,
forty-four minutes, and fifty-two seconds West (S 00° 44’ 52” W), eighty-seven and seventy-four
hundredths feet (87.74 Ft.) to a point;

THENCE leaving Susquehanna Trail (T-956) in a westerly direction along lands now or formerly
belonging to Richard C. and Patty L. Knisely North eighty-eight degrees, twenty-four
minutes, and fifteen seconds West (N 88° 24’ 15” W), four-hundred two and forty-two hundredths
feet (402.42 Ft.) to a concrete monument;

 

 

 

THENCE continuing by the Knisely property on a southwestern course of South twenty-five
degrees, fifty-eight minutes, and six seconds West (S 25° 58’ 06” W), one-hundred sixty-seven and
seventy-four hundredths feel (167.74 Ft.) to a concrete monument being the common corner of the
aforesaid Knisely lands and property now or formerly belonging to Gerald R. Horst;

THENCE along the Horst properly the following three (3) courses and distances:

1. South twenty-six degrees, two minutes, and twenty-eight seconds West (S 26° 02’ 28” W),
one-thousand, seven-hundred twelve and fifty-nine hundredths feet (1,712.59 Ft.) to a concrete
monument;

2. North fifty-five degrees, fifteen minutes, and thirty-eight seconds West (N 55° 15’ 38” W),
three-hundred sixteen and eighty-four hundredths feet (316.84 Ft.) to a concrete monument; and

3. South thirty-five degrees, twenty-nine minutes, and fifty-two seconds West (S 35° 29’ 52”
W), four-hundred twenty-five and nine hundredths feet (425.09 Ft.) to a concrete monument at the
common comer of lands of the aforementioned Gerald R. Horst and lands now or formerly belonging to
Wellington Investment Group LLC;

THENCE in a northwesterly direction along the property of Wellington Investment Group LLC and
lands now or formerly belonging to Scott T. and Tracey Heiland North thirty-three degrees,
twenty-five minutes, and forty-three seconds West (N 33° 25’ 43” W), six-hundred twenty and
fifty-one hundredths feet (520.51 Ft.) to a concrete monument being a common corner of lands now or
formerly of the aforesaid Heiland property and lands of Dale R. and Phyllis L. Clymer;

 

 

 

THENCE along the property of Dale R. and Phyllis L. Clymer the next two (2) courses and
distances:

1. North eighteen degrees, six minutes, and thirty-four seconds West (N 18° 06’ 34” W),
four-hundred eighty-eight and zero hundredths feet (488.00 Ft.) to a concrete monument; and

2. North twelve degrees, twelve minutes, and forty-eight seconds Hast (N 12° 12’ 48” E),
two-hundred seven and ninety-four hundredths feet (207.94 Ft.) to a point on the centerline of the
aforementioned proposed Cross Farm Lane;

THENCE by the centerline of the proposed Cross Farm Lane the following five (5) courses and
distances:

1. South seventy-seven degrees, forty-seven minutes, and twelve seconds East (S 77° 47’ 12”
E), one-hundred twenty-one and seventy-right hundredths feet (121.78 Ft.) to a point;

2. On a curve to the left having a radius of two-hundred and zero hundredths feet (200.00
Ft.), an arc length of one-hundred forty-one and ninety-nine hundredths feet (141.99 Ft.), a chord
bearing of North eighty-one degrees, fifty-two minutes, and thirty-one seconds East (N 81° 52’ 31”
E), and a chord length of one-hundred thirty-nine and two hundredths feet (139.02 Ft.) to a point;

3. North sixty-one degrees, thirty-two minutes, and fourteen seconds East (N 61° 32’ 14” E)
one-thousand, four-hundred ninety-two and fifty-eight hundredths feet (1,492.58 Ft.) to a point.

 

 

 

4. On a curve to the right having a radius of four-hundred fifty and zero hundredths feet
(450.00 Ft.), an arc length of two-hundred thirty-six and seventy-two hundredths feet (236.72 Ft.),
a chord bearing of North seventy-six degrees, thirty-six minutes, and twenty-six
seconds East (N 76° 36’ 26” E), and a chord length of two-hundred thirty-four and zero
hundredths feet (234.00 Ft.) to a point; and

5. South eighty-eight degrees, nineteen minutes, and twenty-one seconds East (S 88° 19’ 21”
E), three-hundred eighty-nine and nineteen hundredths feet (389.19 Ft.) to the POINT OF BEGINNING.

Excepting and reserving to Metropolitan Edison a right-of-way easement of two-hundred and zero
hundredths feet (200.00 Ft.) in width as described in Deed Book 57-I, Page 348. Also excepting and
reserving to Edison Light and Power Company two (2) right-of-way easements, one of twelve and zero
hundredths feet (12.00 Ft.) in width as described in Deed Book 30-W, Page 149 (in favor of Parcel
103G), and the other of twenty and zero hundredths feet (20.00 Ft.) in width as described in Deed
Book 33-B, Page 180

	 	 	 
	CONTAINING:

	 	38.155 acres (Gross)
	 
	 	 
	 

	 	36.417 acres (Net)

 

 

 

Exhibit B

Development and Construction Budget

	 	 	 	 	 
	Construction Cost
	 	 	 	 
	Site Improvements
	 	 	1,000,000	 
	Production Building Shell
	 	 	3,250,000	 
	Production Fit-out
	 	 	9,130,000	 
	Office Building Shell
	 	 	5,440,000	 
	Office Building Fit-out
	 	 	1,480,000	 
	Central Plant
	 	 	1,300,000	 
	Total Construction Cost
	 	$	21,600,000	 
	 
	 	 	 	 
	Land Cost
	 	$	2,034,791	 
	 
	 	 	 	 
	Architectural and Engineering Cost
	 	$	1,500,000	 
	 
	 	 	 	 
	Total Development and Construction Budget
	 	$	25,134,791	 
	 
	 	 	 

 

Exhibits-3

 

Exhibit C

Project Schedule

 

Exhibits-4

 

Exhibit D

Project Team

Robert L. Ventresca

Robert G. Loughery

Gregory A. Ventresca

Charles A. Artillio

Jorden P. “Pete” Krauss

Such other person as designated by Developer from time to time.Exhibit 10.26

Exhibit 10.26

AMENDED AND RESTATED OPERATING AGREEMENT

OF

UNILIFE CROSS FARM LLC

(A Delaware Limited Liability Company, Member Managed)

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE 1 DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	1.1 Definitions
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2 FORMATION AND PURPOSE
	 	 	6	 
	 
	 	 	 	 
	2.1 Formation
	 	 	6	 
	2.2 Name
	 	 	6	 
	2.3 Registered Office and Principal Place of Business
	 	 	6	 
	2.4 Purposes
	 	 	6	 
	2.5 Execution and Filing of the Certificate
	 	 	6	 
	2.6 Governing Act
	 	 	7	 
	2.7 Other Qualifications
	 	 	7	 
	 
	 	 	 	 
	ARTICLE 3 CAPITAL CONTRIBUTIONS
	 	 	7	 
	 
	 	 	 	 
	3.1 Initial Capital Contributions of Members
	 	 	7	 
	3.2 Capital Accounts
	 	 	7	 
	3.3 No Return of or Interest on Capital; No Partition
	 	 	8	 
	3.4 Additional Capital Contributions
	 	 	8	 
	3.5 Ownership Interests
	 	 	8	 
	 
	 	 	 	 
	ARTICLE 4 DISTRIBUTIONS TO MEMBERS AND ALLOCATIONS OF PROFITS AND
LOSSES
	 	 	8	 
	 
	 	 	 	 
	4.1 Profits and Losses
	 	 	8	 
	4.2 Distributions
	 	 	9	 
	4.3 Special Allocations
	 	 	9	 
	4.4 Curative Allocations
	 	 	10	 
	4.5 Tax Allocations: Code Section 704(c)
	 	 	11	 
	4.6 Miscellaneous
	 	 	11	 
	4.7 Establishment of Reserve
	 	 	12	 
	4.8 Amounts Withheld
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 5 MANAGEMENT
	 	 	12	 
	 
	 	 	 	 
	5.1 Rights and Duties of Members
	 	 	12	 
	5.2 Exculpation
	 	 	12	 
	5.3 Indemnification of the Members
	 	 	13	 
	5.4 Holding of Property
	 	 	13	 
	5.5 Loans
	 	 	13	 
	 
	 	 	 	 
	ARTICLE 6 RIGHTS AND OBLIGATIONS OF MEMBERS; MEETINGS
	 	 	13	 
	 
	 	 	 	 
	6.1 Liability of Members
	 	 	13	 
	6.2 Voting Rights
	 	 	14	 
	6.3 Company Meetings
	 	 	14	 
	6.4 Waiver of Fiduciary Duty; Company Opportunities
	 	 	14	 
	6.5 [Intentionally Deleted]
	 	 	15	 
	6.6 Additional Members
	 	 	15	 

 

-i- 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE 7 ACCOUNTING
	 	 	15	 
	 
	 	 	 	 
	7.1 Books and Records
	 	 	15	 
	7.2 Fiscal Year
	 	 	15	 
	7.3 Tax and Financial Reports
	 	 	15	 
	7.4 Company’s Accounting Firm
	 	 	16	 
	7.5 Tax Matters Member
	 	 	16	 
	 
	 	 	 	 
	ARTICLE 8 TERM AND DISSOLUTION
	 	 	16	 
	 
	 	 	 	 
	8.1 Term
	 	 	16	 
	8.2 Events Causing Termination
	 	 	17	 
	8.3 Actions of Members
	 	 	17	 
	8.4 Distribution in Case of Termination
	 	 	17	 
	8.5 Rights of Members on Liquidation
	 	 	18	 
	 
	 	 	 	 
	ARTICLE 9 TRANSFER OF COMPANY INTERESTS
	 	 	18	 
	 
	 	 	 	 
	9.1 Transfer of Interests Generally
	 	 	18	 
	9.2 Sale or Liquidation of Percentage Interest
	 	 	18	 
	9.3 Transfer of Percentage Interests to Related Parties
	 	 	20	 
	9.4 Arbitration
	 	 	20	 
	9.5 Indemnity
	 	 	20	 
	9.6 Drag-Along Rights
	 	 	21	 
	9.7 Tag-Along Rights
	 	 	22	 
	 
	 	 	 	 
	ARTICLE 10 GENERAL PROVISIONS
	 	 	23	 
	 
	 	 	 	 
	10.1 Binding Effect and Benefit of This Agreement
	 	 	23	 
	10.2 Agreement
	 	 	23	 
	10.3
Notices, etc.
	 	 	24	 
	10.4 Integration; Termination
	 	 	24	 
	10.5 Interpretation
	 	 	24	 
	10.6 Counterparts
	 	 	24	 
	10.7 Severability of Provisions
	 	 	24	 
	10.8 Amendments
	 	 	24	 
	10.9 Subject to Purchase Agreement
	 	 	25	 

 

-ii-

 

AMENDED AND RESTATED OPERATING AGREEMENT

OF

UNILIFE CROSS FARM LLC

(A Delaware Limited Liability Company, Member Managed)

THIS AMENDED AND RESTATED OPERATING AGREEMENT (this “Agreement”) is made as of the
14th day of
December 2009, by and among the persons listed on Exhibit A attached hereto (each of the persons
listed on Exhibit A is sometimes hereinafter referred to individually as a “Member” and
collectively as the “Members”).

WITNESSETH:

WHEREAS, UNILIFE CROSS FARM LLC (the “Company”) was formed as a limited liability company
under the Delaware Limited Liability Company Act on November 10, 2009;

WHEREAS, Cross Farm, LLC has entered into a Membership Interest Purchase Agreement (the
“Purchase Agreement”) whereby Cross Farm, LLC will acquire a 1% interest in the Company;

WHEREAS, the Members desire to amend and restate the Operating Agreement in its entirety in
order to set forth the terms of operation of the Company and the Business;

NOW, THEREFORE, in consideration of the mutual promises and covenants herein and intending to
be legally bound, the Members agree as follows:

ARTICLE 1

DEFINITIONS

1.1 Definitions.

For purposes of this Agreement, the following terms shall have the meanings set forth below,
except as otherwise specified or as the context may otherwise require:

“Act” shall mean the Delaware Limited Liability Company Act, Title 6, Section 18-101 et
seq., as amended from time to time.

“Adjusted Capital Account Deficit” shall mean, with respect to any Member, the deficit
balance, if any, in such Member’s Capital Account as of the end of the relevant fiscal year, after
giving effect to the following adjustments: (i) credit to such Capital Account any amounts which
such Member is obligated to restore pursuant to the terms of such Member’s promissory note or
otherwise or is deemed to be obligated to restore pursuant to Treasury Regulation Sections
1.704-2(g)(1) and 1.704-2(i)(5); and
(ii) debit to such Capital Account the items described in Sections 1.704-1 (b)(2)(ii)(d)(4),
1.704-1 (b)(2)(ii)(d)(5) and 1.704-1 (b)(2)(ii)(d)(6) of the Regulations. The foregoing definition
of Adjusted Capital Account Deficit is intended to comply with the provisions of Section 1.704-1
(b)(2)(ii)(d) of the Regulations and shall be interpreted consistently therewith.

 

1

 

“Adjusted Capital Contribution” shall mean, as of any day, a Member’s Capital Contributions
reduced by the amount of cash and the Gross Asset Value of any Company property distributed to such
Member pursuant to Sections 4.2 and 8.4 hereof.

“Agreement” shall mean this Operating Agreement, as amended from time to time.

“Bankruptcy” shall mean (i) the entry of a decree or order for relief by a court having
jurisdiction in respect of a Person in an involuntary proceeding under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or the appointment of a receiver,
liquidator, assignee, custodian, trustee, sequestrator (or similar official) of a Person or for any
substantial part of such Person’s property or the entry of an order for the winding up or
liquidation of its affairs, which decree or order remains unstayed and in effect for a period of
ninety (90) consecutive days; (ii) the commencement by a Person of a voluntary proceeding under any
applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or consent to
the entry of an order for relief in an involuntary case under any such law, or consent to the
appointment or taking possession by a receiver, liquidator, assignee, custodian, trustee,
sequestrator (or similar official) of a Person or for any substantial part of its property, or any
general assignment by a Person for the benefit of creditors; or (iii) the attachment by a creditor
of a Person’s interest in the Company, which attachment is not discharged or vacated within ninety
(90) days from the date it becomes effective.

“Capital Account(s)” shall mean the individual account(s) maintained by the Company with
respect to each Member as provided in Section 3.2 of this Agreement.

“Capital Contribution(s)” shall mean the amount of cash or the agreed value of the property or
services (as determined by the Members and the Company) contributed by each Member to the Company
as provided in Article 3 of this Agreement.

“Cash Flow” shall mean, for the fiscal year in which such determination is being made, the
Company’s net income after taxes from operations, plus depreciation and amortization expense for
such fiscal year (as computed for income tax purposes), less principal payments on scheduled
indebtedness of the Company during the one-year period ending on the date upon which such
determination is being made (excluding payments made under any subordinated promissory notes of the
Company and payments scheduled to be made under Section 4.3(c) of this Agreement).

“Code” shall mean the Internal Revenue Code of 1986, as amended. All references to the Code
or any regulations adopted thereunder, including Treasury
Regulations or Temporary Treasury Regulations, are references to the Code or such regulations
as they are in effect on the date hereof.

 

2

 

“Company” shall mean the Delaware limited liability company governed by this Agreement.

“Company Minimum Gain” shall have the same meaning as Percentage Minimum Gain set forth in
Treasury Regulation Sections 1 704-2(b)(2) and 1.704-2(d).

“Depreciation” shall mean, for each fiscal year or other period, an amount equal to the
depreciation, amortization or other cost recovery deduction allowable with respect to an asset for
such year or other period, except that if the Gross Asset Value of an asset differs from its
adjusted basis for federal income tax purposes at the beginning of such year or other period,
Depreciation shall be an amount which bears the same ratio to such beginning Gross Asset Value as
the federal income tax depreciation, amortization, or other cost recovery deduction for such year
or other period bears to such beginning adjusted tax basis; provided, however, that if the federal
income tax depreciation, amortization, or other cost recovery deduction for such year is zero,
Depreciation shall be determined with reference to such beginning Gross Asset Value using any
reasonable method selected by the Tax Matters Member.

“Gross Asset Value” with respect to any asset shall mean the asset’s adjusted basis for
federal income tax purposes, except as follows:

(i) The initial Gross Asset Value of any asset contributed by a Member to the Company
shall be the gross fair market value of such asset, as determined by the Members;

(ii) The Gross Asset Values of all Company assets shall be adjusted to equal their
respective gross fair market values, as determined by the Members, at the following times:

(a) the acquisition of an additional interest in the Company by any new or
existing Member in exchange for more than a de minimis Capital
Contribution;

(b) the distribution by the Company to a Member of more than a de
minimis amount of Company property other than money as consideration for an
interest in the Company; and

(c) the liquidation of the Company for federal income tax purposes within the
meaning of Treasury Regulation Section l.704-I(b)(2)(ii)(9); provided, however, that
the adjustments pursuant to clauses (a) and (b) above shall be made only if the Tax
Matters Member reasonably determines that such adjustments are necessary or
appropriate to reflect the relative economic interests of the Members in the
Company.

 

3

 

(iii) The Gross Asset Value of any Company asset distributed to any Member shall be the
gross fair market value of such asset on the date of distribution;

(iv) The Gross Asset Values of Company assets shall be increased (or decreased) to
reflect any adjustments to the adjusted basis of such assets pursuant to Code Section 734(b)
or Code Section 743(b), but only to the extent that such adjustments are taken into account
in determining Capital Accounts pursuant to Regulation Section 1.704-1 (b)(2)(iv)(m) and
Section 4.3(g) hereof; provided, however, that Gross Asset Values shall not be adjusted
pursuant to this clause (iv) to the extent the Tax Matters Member determines that an
adjustment pursuant to clause (ii) hereof is necessary or appropriate in connection with a
transaction that would otherwise result in an adjustment pursuant to this clause (iv); and

(v) If the Gross Asset Value of an asset has been determined pursuant to subparagraphs
(i), (ii) or (iv) hereof, such Gross Asset Value shall thereafter be adjusted by the
Depreciation taken into account with respect to such asset for purposes of computing Profits
and Losses.

“Managing Member” shall have the meaning set forth in Sections 5.1 and 6.2 of this Agreement.

“Member” shall mean each person listed on attached Exhibit A, and anyone else admitted
as a member of the Company. The term “Members” shall mean all of such persons.

“Member Nonrecourse Debt” shall have the same meaning as Member nonrecourse debt set forth in
Sections 1.704-2(b)(4) and 1.704-2(i) of the Treasury Regulations.

“Member Nonrecourse Debt Minimum Gain” shall have the same meaning as Member nonrecourse debt
minimum gain set forth in Treasury Regulation Section 1.704-2(i) and shall be determined in
accordance with the principles of such Section of the Treasury Regulations.

“Member Nonrecourse Deductions” shall have the same meaning as Member nonrecourse deductions
set forth in Sections 1.704-2(i)(1) and 1 704-(2)(i)(2) of the Treasury Regulations.

“Nonrecourse Deductions” shall mean deductions having the meaning set forth in Sections 1
704-2(b)(l) and 1.704-2(c) of the Treasury Regulations.

“Percentage Interest” shall mean a Member’s percentage interest on Exhibit A attached
hereto and as amended from time to time.

“Person” shall mean any individual, person, corporation, trust or other entity.

 

4

 

“Profits and Losses” shall mean, for each fiscal year or other period, an amount equal to the
Company’s taxable income or loss for such year or period, determined in accordance with Code
Section 703(a) (for these purposes, all items of income, gain, loss or deduction required to be
stated separately pursuant to Code Section 703(a)(l) shall be included in taxable income or loss),
with the following adjustments:

(i) Any income of the Company that is exempt from federal income tax and not otherwise
taken into account in computing Profits or Losses pursuant to the foregoing shall be added
to such taxable income or loss;

(ii) Any expenditures of the Company described in Code Section 705(a)(2)(B) or that are
treated as Code Section 705(a)(2)(B) expenditures pursuant to Treasury Regulation Section
1.704-1 (b)(2)(iv)(i) and not otherwise taken into account in computing Profits or Losses
pursuant to the foregoing shall be subtracted from such taxable income or loss;

(iii) In the event the Gross Asset Value of any Company asset is adjusted pursuant to
clause (ii) or (iii) of the definition of Gross Asset Value, the amount of such adjustment
shall be taken into account as gain or loss from the disposition of such asset for purposes
of computing Profits or Losses;

(iv) Gain or loss resulting from any disposition of Company property with respect to
which gain or loss is recognized for federal income tax purposes shall be computed by
reference to the Gross Asset Value of the property disposed of, notwithstanding that the
adjusted tax basis of such property differs from its Gross Asset Value;

(v) In lieu of depreciation amortization, and other cost recovery deductions taken into
account in computing such taxable income or loss, there shall be taken into account
Depreciation for such fiscal year or other period computed in accordance with the definition
of Depreciation used herein;

(vi) To the extent an adjustment to the adjusted tax basis of any Company asset
pursuant to Code Section 734(b) or Code Section 743(b) is required pursuant to Regulations
Section 1.704-l(b)(2)(iv)(m)(4) to be taken into account in determining Capital Accounts as
a result of a distribution other than in liquidation of a Member’s interest, the amount of
such adjustment shall be treated as an item of gain (if the adjustment increases the basis
of the asset) or loss (if the adjustment decreases the basis of the asset) from the
disposition of the asset and shall be taken into account for purposes of computing Profits
or Losses; and

(vii) Notwithstanding the above, any items that are specially allocated pursuant to
Sections 4.3 or 4.4 hereof shall not be taken into account in computing Profits and Losses.

 

5

 

ARTICLE 2

FORMATION AND PURPOSE

2.1 Formation.

The Members hereby form a limited liability company pursuant to the Act. The provisions of
the Act shall apply and govern the formation and operation of the Company except to the extent
otherwise expressly provided in this Agreement.

2.2 Name.

The name of the Company shall be UNILIFE CROSS FARM LLC. The Company may do business under
that name and under any other name or names upon which the Members agree. If the Company does
business under a name other than that set forth in its Certificate of Formation, then the Company
shall file a fictitious name registration as required by law.

2.3 Registered Office and Principal Place of Business.

The registered office for the Company will be located at Corporation Trust Center, 1209 Orange
Street, Wilmington, Delaware 19801 or at such other place within the State of Delaware as the
Members may from time to time determine. The Company shall maintain such other offices as the
Members shall determine. All correspondence for the Company shall be directed to Unilife
Corporation, 633 Lowther Road, Lewisberry, Pennsylvania 17339.

2.4 Purposes.

The general purposes of the Company are to engage in any activity for which limited liability
companies may be formed in the State of Delaware. The specific purpose of the Company shall be to
purchase, own, operate, manage, mortgage, exchange and/or dispose of an interest in real property
located at 250 Cross Farm Lane, Conewago Township, York County, Pennsylvania and to engage in all
necessary or desirable activities in connection therewith. The Company shall possess and may
exercise all of the powers and privileges granted by the Act, any other law or by this Agreement,
together with any powers incidental thereto, so far as such powers and privileges are necessary or
convenient to the conduct, promotion or attainment of the business purposes or activities of the
Company.

2.5 Execution and Filing of the Certificate.

The Members have filed a Certificate of Formation for the Company (the “Certificate”) with the
Delaware Secretary of State. Whenever it is necessary or advisable to amend or restate the
Certificate, the Members may timely file an amended Certificate, and the Members shall do and
continue to do all other things as may be required or advisable to maintain the Company as a
limited liability company existing pursuant to Delaware law and as provided herein.

 

6

 

2.6 Governing Act.

The Company under this Agreement shall be organized pursuant to the Act, as it may be amended
from time to time.

2.7 Other Qualifications.

The Company shall exist under the laws of the State of Delaware and, to the extent that the
business of the Company is conducted in any jurisdiction other than Delaware, shall obtain
qualification to do business under the laws of such other jurisdiction(s) as determined by the
Members.

ARTICLE 3

CAPITAL CONTRIBUTIONS

3.1 Initial Capital Contributions of Members.

Upon the execution of this Agreement, each Member shall contribute cash, tangible or
intangible property, services rendered, or a promissory note or other obligation to contribute cash
or property or to perform services to the Company in proportion to the Member’s Percentage Interest
as shown on Exhibit A attached hereto. The initial capital contribution to the Company by
the Members shall be One Hundred Dollars ($100.00), pro rata as per the Members’ interests.

3.2 Capital Accounts.

For tax purposes, a separate Capital Account shall be established and maintained for each
Member in accordance with Code Section 704 and Treasury Regulation Section 1.704-1(b) and the
following provisions:

(i) Generally, the Capital Account of a Member shall consist of the Member’s initial
Capital Contribution increased by: (a) any additional Capital Contributions in cash; (b)
the fair market value of any Capital Contribution of property in kind (net of liabilities
securing such contributed property that the Company is considered to assume or take subject
to, under Section 752 of the Code); and (c) such Member’s share of Company Profits (or items
thereof allocated pursuant to Article 4), including income and gain exempt from tax, and
decreased by (w) distributions in cash to such Member; (x) the fair market value of property
distributed in kind to such Member (net of liabilities securing such distributed property
that such Member is considered to assume or take subject to, under Section 752 of the Code);
(y) such Member’s share of Company Losses allocated pursuant to Article 4; and (z) such
Member’s share of expenditures of the Company described or treated as described in Section
705(a)(2)(B) of the Code.

 

7

 

(ii) If any interest in the Company, or a portion thereof is transferred in accordance
with this Agreement, the transferee shall succeed to the Capital Account of the transferor
to the extent it relates to the transferred interest.

(iii) The foregoing provisions and other provisions of this Agreement relating to the
maintenance of Capital Accounts are intended to comply with Treasury Regulation Section
1.704-1(b) and shall be interpreted and applied in a manner consistent with such
Regulations.

3.3 No Return of or Interest on Capital; No Partition.

Except as specifically provided in this Agreement, no Member may withdraw any amount from his
Capital Account or be paid interest on his Capital Contributions or his Capital Account. No Member
shall have any personal liability for the repayment of any Capital Contributions of any other
Member. Each Member waives any right to partition Company property. The foregoing shall not
constitute a waiver of any Member’s rights upon dissolution of the Company.

3.4 Additional Capital Contributions.

No Member shall be required to make any additional capital contribution to the Company or to
restore any deficit in such Member’s Capital Account, except as provided in this Agreement, and
such deficit, if any, shall not be considered a debt owed to the Company or to any other person for
any purpose.

3.5 Ownership Interests.

The interests of the Members in the Company shall be personal property for all purposes.

ARTICLE 4

DISTRIBUTIONS TO MEMBERS AND ALLOCATIONS OF PROFITS AND LOSSES

4.1 Profits and Losses.

(a) After giving effect to the special allocations set forth in Sections 4.3 and 4.4
hereof, Profits and Losses for any fiscal year shall be allocated in accordance with the
Members’ respective Percentage Interests.

(b) Notwithstanding subsection (a) and after application of Treasury Regulation Section
I.704-1 (b)(2)(ii)(d), no such Losses shall be allocated to a Member which would cause such
Member to have an Adjusted Capital Account Deficit at the end of any fiscal year if, at the
time, any other Member has a positive Capital Account balance. Any Losses not allocated to
a Member due to the foregoing limitation shall be specially allocated to the Members with
positive Capital Account balances in proportion to such Capital Account balances until all
such Capital Account balances have been reduced to zero and any remainder
shall be allocated to Members in accordance with their respective Percentage Interests.

 

8

 

4.2 Distributions.

All existing net cash flow shall, after providing for a reserve as determined by the Members,
be used to make a distribution in cash to the Members in proportion to their Percentage Interests,
as set forth in Exhibit A, no less frequently than annually.

4.3 Special Allocations.

The following special allocations shall be made in the following order:

(a) Minimum Gain Chargeback. Notwithstanding any other provision of this
Article 4, if there is a net decrease in Company Minimum Gain during any Company taxable
year, each Member shall be specially allocated items of Company income and gain for such
year (and, if necessary, subsequent years) in accordance with Treasury Regulation Section 1
704-2(f). Allocations pursuant to the previous sentence shall be made in proportion to the
respective amounts required to be allocated to each of such Members pursuant thereto. The
items to be so allocated shall be determined in accordance with Section 1.704-2(f) of the
Treasury Regulations. This Section 4.3(a) is intended to comply with the minimum gain
chargeback requirement in such Section of the Regulations and shall be interpreted
consistently therewith.

(b) Member Minimum Gain Chargeback. Notwithstanding any other provision of
this Article 4 except Section 4.3(a), if there is a net decrease in Member Nonrecourse Debt
Minimum Gain attributable to a Member Nonrecourse Debt during any Company fiscal year, each
Member who has a share of the Member Nonrecourse Debt Minimum Gain attributable to such
Member Nonrecourse Debt, determined in accordance with Treasury Regulation Section
1.704-2(i)(5), shall be specially allocated items of Company income and gain for such year
(and, if necessary, subsequent years) in accordance with Treasury
Regulation Section 1.704-2(i)(4). Allocations pursuant to the previous sentence shall be made in proportion to
the respective amounts required to be allocated to each of such Members pursuant thereto.
The items to be so allocated shall be determined in accordance with Section 1.704-2(i)(4)
of the Treasury Regulations. This Section 4.3(b) is intended to comply with the minimum
gain chargeback requirement in such Section of the Regulations and shall be interpreted
consistently therewith.

(c) Qualified Income Offset. In the event any Member who is not obligated (or
treated as obligated) to restore a deficit balance in its Capital Account unexpectedly
receives any adjustments, allocations, or distributions described in Regulation Section
1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5) or I.704-l(b)(2)(ii)(d)(6), items of
Company income and gain shall be specially allocated to each such Member in an amount and
manner sufficient to eliminate,
to the extent required by the Regulations, the Adjusted Capital Account Deficit of such
Member as quickly as possible, provided that an allocation pursuant to this Section 4.3(c)
shall be made if and only to the extent that such Member would have an Adjusted Capital
Account Deficit after all other allocations provided for in this Article 4 have been
tentatively made as if this Section 4.3(c) were not in this Agreement.

 

9

 

(d) Gross Income Allocation. In the event any Member has a deficit Capital
Account at the end of any Company fiscal year that is in excess of the sum of (i) the amount
such Member is obligated to restore, and (ii) the amount such Member is deemed to be
obligated to restore pursuant to Sections 1.704-2(g)(l) and 1.704-2(i)(5) of the Treasury
Regulations, each such Member shall be specially allocated items of Company income and gain
in the amount of such excess as quickly as possible, provided that an allocation pursuant to
this Section 4.3(d) shall be made if and only to the extent that such Member would have a
deficit Capital Account balance in excess of such sum after all other allocations provided
for in this Article 4 have been tentatively made as if this Section 4.3(d) were not in this
Agreement.

(e) Nonrecourse Deductions. Nonrecourse Deductions for any taxable year or
other period shall be allocated among the Members in proportion to their respective
Percentage Interests.

(f) Member Nonrecourse Deductions. Any Member Nonrecourse Deductions for any
fiscal year or other period shall be specially allocated to the Member who bears the
economic risk of loss with respect to the Member Nonrecourse Debt to which such Member
Nonrecourse Deductions are attributable in accordance with Treasury Regulation Section
1.704-2(i).

(g) Section 754 Adjustment. To the extent an adjustment to the adjusted tax
basis of any Company asset pursuant to Code Section 734(b) or Code Section 743(b) is
required, pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(m), to be taken into
account in determining Capital Accounts, the amount of such adjustment to the Capital
Accounts shall be treated as an item of gain (if the adjustment increases the basis of the
asset) or loss (if the adjustment decreases such basis) and such gain or loss shall be
specially allocated to the Members in a manner consistent with the manner in which their
Capital Accounts are required to be adjusted pursuant to such Section of the Regulations.

4.4 Curative Allocations.

The allocations set forth in Sections 4.1(b) and 4.3 hereof (the “Regulatory
Allocations”) are intended to comply with certain requirements of Treasury Regulation Section
1.704-1(b). It is the intent of the Members that, to the extent possible, all Regulatory
Allocations shall be offset either with other Regulatory Allocations or with special allocations of
other items of Company income, gain, loss or deduction pursuant to this Section 4.4. Therefore,
notwithstanding any other provision of this Article 4
(other than the Regulatory Allocations), the Members shall make such offsetting special
allocations of Company income, gain, loss and deduction in whatever manner they determine
appropriate so that, after such offsetting allocations are made, each Members’ Capital Account
balance is, to the extent possible, equal to the Capital Account balance such Member would have had
if the Regulatory Allocations were not part of the Agreement and all Company items were allocated
pursuant to Section 4.1(a) hereof. In exercising their discretion under this Section 4.4, the
Members shall take into account future Regulatory Allocations under Sections 4.3(a) and 4.3(b)
that, although not yet made, are likely to offset other Regulatory Allocations previously made
under Sections 4.3(e) and 4.3(g).

 

10

 

4.5 Tax Allocations: Code Section 704(c).

In accordance with Code Section 704(c) and the Regulations thereunder, income, gain, loss and
deduction with respect to any property contributed to the capital of the Company shall, solely for
tax purposes, be allocated among the Members so as to take account of any variation between the
adjusted basis of such property to the Company for federal income tax purposes and its initial fair
market value. Allocations pursuant to this Section 4.5 are solely for purposes of federal, state
and local taxes and shall not affect, or in any way be taken into account in computing, any
Member’s Capital Account or share of Profits, Losses, other items or distributions pursuant to any
provision of this Agreement.

4.6 Miscellaneous.

(a) For purposes of determining the Profits, Losses or any other items allocable to any
period, Profits, Losses and any such other items shall be determined on a daily, monthly or
other basis, as determined by the Board using any permissible method under Code Section 706
and the Regulations promulgated thereunder.

(b) Except as otherwise provided in this Agreement, all items of Company income, gain,
loss, deduction and any other allocations not otherwise provided for shall be divided among
the Members in the same proportions as they share Profits or Losses, or, as the case may be,
for the year.

(c) The Members are aware of the income tax consequences of the allocations made by
this Article 4 and hereby agree to be bound by the provisions of this Article 4 in reporting
their shares of Company income or loss for income tax purposes.

(d) Solely for the purpose of determining each Member’s share of excess nonrecourse
liabilities pursuant to Treasury Regulation Section 1 752-3(a)(3), each Member’s interest in
Company Profits is hereby specified to be such Member’s Percentage Interest.

 

11

 

4.7 Establishment of Reserve.

The Members shall have the right and obligation to establish reasonable reserves based on
generally accepted accounting principles for acquisitions, capital expenditures and other
contingencies, such reserves to be funded with such portion of the revenues of the Company for any
fiscal year as the Members may deem necessary or appropriate for that purpose.

4.8 Amounts Withheld.

All amounts withheld pursuant to the Code or any provision of any state or local tax law with
respect to any payment, distribution or allocation to the Company or the Members shall be treated
as amounts distributed to the Members pursuant to this Article 4 for all purposes under this
Agreement. The Members agree to withhold from distributions, or with respect to allocations, to
the Members and to pay over to any federal, state or local government any amounts required to be so
withheld pursuant to Code or any provision of any other federal, state or local law and shall
allocate any such amounts to the Members with respect to which such amount was withheld.

ARTICLE 5

MANAGEMENT

5.1 Rights and Duties of Members.

The Company shall be managed by the Members. The Members shall, from time to time, designate
certain individuals as officers and authorize them to act on behalf of the Company, in accordance
with the instructions of the Members. Such individuals need not be Members of the Company. Each
Member shall designate an individual who shall be authorized to act on behalf of such Member with
respect to the Company, and each Member shall, from time to time, advise the Company and each other
Member of the names and offices of the persons authorized to act with respect to the Company on
behalf of such Member. Until such time as otherwise directed by the Members in writing,
Unilife Corporation shall be the “Managing Member” with the sole and exclusive authority to bind
the Company. No other Member shall have the right to act for or bind the Company.

5.2 Exculpation.

No Member as such or any officer, employee or agent of any Member or the Company shall be
liable to the Company or any Member for losses or liabilities arising from the conduct of the
affairs of the Company or from the conduct of any employee or agent of the Company.

 

12

 

5.3 Indemnification of the Members.

(a) The Company shall indemnify and hold harmless the Members and each person who shall
serve at any time as a representative of a Member or an
officer of the Company against all damages, losses, fines, costs and expenses
(including attorneys’ fees and disbursements) resulting from or relating in any way to any
claim or demand made or threatened, or any action, proceeding or investigation commenced or
threatened, omitted to have been taken (or alleged to have been taken or omitted to have
been taken) by such person in connection with the organization, business or other affairs of
the Company (including any amounts paid or property transferred, and all costs and expenses,
including attorneys’ fees and disbursements, incurred in connection with any settlement of
any such claim, action, proceeding, or investigation), except that such indemnification
shall be made only if such action or omission of such person satisfies the requirements of
the Act with respect to the matter or matters as to which indemnity is sought.

(b) For the purposes of Section 5.3(a) hereof, the determination that the action or
omission of any person satisfies the requirements of the Act shall be made by a court of
competent jurisdiction or other body before which the relevant action, proceeding or
investigation is pending. In the absence of a determination by such court or other body,
such determination may be made by legal counsel to the Company in a written legal opinion to
the Company.

5.4 Holding of Property.

Property owned by the Company shall be held in the name of the Company or in nominee name.

5.5 Loans.

Any person may, with the consent of the Members, lend or advance money to the Company. If any
Member shall make any loan or loans to the Company or advance-money on its behalf, the amount of
any such loan or advance shall not be treated as a Capital Contribution but shall be a debt due
from the Company. The amount of any such loan or advance by a lending Member shall be repayable
out of the Company’s cash and shall bear interest at such rate as the lending Member and other
Members shall agree but not in excess of the maximum rate permitted by law. None of the Members
shall be obligated to make any loan or advance to the Company.

ARTICLE 6

RIGHTS AND OBLIGATIONS OF MEMBERS; MEETINGS

6.1 Liability of Members.

(a) No Member shall have any personal liability with respect to the liabilities or
obligations of the Company, except to the extent that such Member expressly and voluntarily
assumes in writing any obligations of the Company; and

(b) No Member shall be personally liable or obligated, except as otherwise required by
the Act, to return to the Company or to pay any creditor or
any other Member the amount of any return of its Capital Contribution to it or other
distribution made to it.

 

13

 

6.2 Voting Rights.

The Members shall each have the number of votes corresponding to their respective Percentage
Interests on any Company matter, except as otherwise specifically provided in this Agreement. Any
action to be taken by the Members may be taken at a meeting held in accordance with Section 6.3
hereof or by consent in writing in accordance with this Section 6.2. Each Member who is entitled
to vote or consent may vote or consent by a signed writing or a signed written consent directing
the manner in which it desires that its vote be cast, except that any Member who fails to respond
to any notice of meeting within twenty (20) days after hand delivery or the mailing thereof by
certified or registered mail shall be deemed not to have consented to or approved any action
proposed. Notwithstanding the foregoing, the Members authorize the Managing Member to act on
behalf of and bind the Company in the ordinary course of business without the necessity of
membership meeting, vote or further consent.

6.3 Company Meetings.

(a) Meetings of the Company may be called by a Member holding at least fifty percent of
the aggregate Percentage Interests in the Company upon no less than five (5) days but no
more than twenty (20) days notice in writing to the other Member(s).

(b) Members may participate in meetings by means of conference telephone calls in which
all Members participating in the meeting can hear each other. Any vote may be cast in
person, by telephone or by proxy. Proxies shall be valid only if in writing.

At any Company meeting, the presence in person or by telephone or proxy of Members representing at
least fifty-one percent of the aggregate Percentage Interests in the Company shall constitute a
quorum. Except as otherwise provided herein, the business of the Company presented at any meeting
shall be decided by the vote of at least fifty-one percent of the aggregate Percentage Interests in
the Company in favor of the action proposed. Alternatively, actions of the Company may be taken
without a meeting by unanimous written consent of the Members.

6.4 Waiver of Fiduciary Duty; Company Opportunities.

This Agreement is not intended to, and does not, create or impose any fiduciary duty on the
Managing Member or its respective Affiliates by virtue of its managing control or majority
percentage interest. Further, all other Members hereby waive any and all fiduciary duties that,
absent such waiver, may be implied by Law, and in doing so, recognizes, acknowledges and agrees
that the duties and obligations of the Managing Member to the other Members and to the Company are
only as expressly set forth in this Agreement. Each Member acknowledges that other Members own
and/or manage other businesses, including businesses that may compete with the Company.
Neither any Member nor its Affiliates, and their respective officers, directors, shareholders,
partners, members, agents and employees, shall not in any way be prohibited or restricted from
engaging or investing in, independently or with others, any business opportunity of any type or
description, including, without limitation, those business opportunities that might be the same or
similar to the Business and neither the Company, or any other Member and their Affiliates, and
their respective officers, directors, shareholders, partners, members, agents and employees, shall
have any right in or to such other business opportunities or to the income or proceeds derived
therefrom.

 

14

 

6.5 [Intentionally Deleted].

6.6 Additional Members.

Additional Members may be admitted to the Company upon receiving the consent of the existing
Members. The terms of admission may provide for the creation of different classes or groups of
Members having different rights, powers, and duties.

ARTICLE 7

ACCOUNTING

7.1 Books and Records.

The Managing Member shall keep, or cause to be kept, true, exact and complete books of account
of the Company’s affairs, in which shall be entered fully and accurately each transaction of the
Company and of each entity that it controls. The books of account shall be kept on a basis as
determined by the Members. Such books of account, together with all correspondence, papers and
other documents, shall be kept at the principal office of the Company and shall be, at all
reasonable times, open to the examination of any of the Members or their duly authorized
representatives. Except as otherwise provided herein, all financial books and records of the
Company and of each entity which it controls shall be kept, and all financial statements furnished
to the Members hereunder shall be prepared, in accordance with generally accepted accounting
principles consistently applied as modified by tax basis accounting or such other basis as the
Members may determine.

7.2 Fiscal Year.

The fiscal year and the taxable year of the Company shall end as of December 31 of each year.

7.3 Tax and Financial Reports.

(a) Not later than April 1 after the end of each fiscal year, each Member shall be
provided with an information letter with respect to its distributive share of income, gain,
deduction, losses and credits, as the case may be, for income tax reporting purposes for the
previous fiscal year, together with any
other information concerning the Company necessary for the preparation of a Member’s
income tax return, including Form K-1 from the Company.

 

15

 

(b) The Managing Member shall prepare or cause to be prepared all federal, state and
local tax returns of the Company for each year for which such returns are required to be
filed. The “Tax Matters Member” designated in Section 7.5 shall promptly notify all other
Members of any Company audits by the US Internal Revenue Service or any state or local
taxing authority.

(c) The Managing Member shall cause to be distributed to the Members, not later than
April 1 after the end of each fiscal year, a balance sheet and income statement prepared for
the prior calendar year in accordance with generally accepted accounting principles
consistently applied.

7.4 Company’s Accounting Firm.

The Company’s accounting firm shall be such firm of independent certified public accountants
as the Members may select from time to time.

7.5 Tax Matters Member.

To the extent necessary under the Code, the Managing Member is hereby designated as the “Tax
Matters Member” in accordance with Section 6231(a)(7) of the Code and, in connection therewith and
in addition to all other powers given thereunder, shall have all other powers needed to perform
fully hereunder, including, without limitation, the power to retain all attorneys and accountants
of its choice. The Tax Matters Member shall give notice to each other Member of a Company audit.
The designation made in this Section 7.5 is hereby expressly consented to by each Member as an
express condition to becoming a Member.

ARTICLE 8

TERM AND DISSOLUTION

8.1 Term.

The term of the Company shall commence as of the date of this Agreement and shall continue
until termination pursuant to the provisions hereof.

 

16

 

8.2 Events Causing Termination.

Except as otherwise provided herein, the Company shall be dissolved and shall terminate, and
its affairs shall be wound up, upon the occurrence of any of the following:

(i) The vote of the Members;

(ii) The sale or other disposition of all or substantially all of the assets of the
Company; or

(iii) An event of dissolution under the Act.

provided, however, that in the event there are no Members of the Company, the Personal
Representative (as defined in the Act) shall have the right, within ninety (90) days after the
event which terminated the continuing membership of the last remaining Member (the “Termination
Date”), to agree in writing to continue the Company and to admit itself or some other Person as a
Member effective as of the Termination Date, whereupon the Company shall not be dissolved and its
affairs shall not be wound up.

8.3 Actions of Members.

No action of or event affecting a Member shall dissolve or terminate the Company unless
specifically provided in Section 8.2 of this Agreement.

8.4 Distribution in Case of Termination.

Upon the termination of the Company, the Members, or such liquidating agent as such Members
may appoint, shall proceed to wind up the affairs of the Company, unless within ninety (90) days
after such event all of the remaining Members agree in writing to continue the Company, in the
following order of priority:

(a) To the payment of the debts and liabilities of the Company and the expenses of
liquidation in the order of priority as provided by the Act, and to the establishment of any
reserves which the Members or liquidating agent shall deem reasonably necessary for any
contingent or unforeseen liabilities or obligations of the Company. Said reserves may be
paid over by the Members or liquidating agent to a bank or an attorney-at-law to be held in
escrow for the purpose of paying any such contingent or unforeseen liabilities or
obligations, and at the expiration of such period as the Members or liquidating agent shall
deem advisable, such reserves shall be distributed to the Members or their assigns in the
order of priority provided in this Section 8.4;

(b) To the Members in proportion to the credit balance in each of their Capital
Accounts, after giving effect to all contributions, distributions and allocations for all
periods.

Liquidation shall be conducted in accordance with the timing requirements of Section
1.704-1(b)(2) of the Treasury Regulations. No Member shall be liable to restore, or pay to the
Company, any deficit in such Member’s Capital Account. The Company shall terminate when all
property owned by Company shall have been disposed of and the net proceeds, after satisfaction of
liabilities to creditors, shall have been distributed among the Members as aforesaid. The
establishment of any reserves in accordance with the provisions of subsection 8.4(a) shall not have
the effect of extending the term of the Company.

 

17

 

8.5 Rights of Members on Liquidation.

Except as otherwise provided in this Agreement, (i) each Member shall look solely to the
assets of the Company for the return of its Capital Contributions and shall have no right or power
to demand or receive property other than cash from the Company and (ii) no Member shall have
priority over any other Member as to the return of its Capital Contributions, distributions or
allocations.

ARTICLE 9

TRANSFER OF COMPANY INTERESTS

9.1 Transfer of Interests Generally.

Except as otherwise expressly provided herein, the Members shall not have the right to
transfer or assign their interests in the Company and any such purported transfer or assignment
shall be void ab initio, unless all of the Members agree to such transfer or assignment. A
transfer shall include a voluntary or involuntary sale, exchange, assignment, gift, pledge,
hypothecation, or other encumbrance or disposition. The Company shall not be required to transfer
on its records any Company interest that has been purported to have been sold or transferred, but
in violation of this Agreement, or to treat such purported owner, holder, or assignee as a Member
or as having any economic rights in the Company. Each Member hereby acknowledges the
reasonableness of the restrictions on the transfer of the interests in the Company imposed by this
Agreement in view of the Company purposes and the relationship of the Members. Accordingly, the
restrictions on transfer contained herein shall be specifically enforceable.

9.2 Sale or Liquidation of Percentage Interest.

A Member may sell or transfer his Percentage Interest subject to the following provisions:

(a) The remaining Members shall each have the first option to purchase a share of the
Percentage Interest of the selling Member or to cause the Company to liquidate the
Percentage Interest of the selling Member prior to said Percentage Interest being sold to a
third party.

(b)(I) Each remaining Member may elect to purchase a share of the Percentage Interest
of the selling Member equal to the ratio that his Percentage Interest bears to the total of
the Percentage Interests of all remaining Members. If a remaining Member does not elect to
purchase a portion of the Percentage Interest of the selling Member, the other remaining
Members may elect to purchase that portion of the Percentage Interest of the selling Member
in the ratio which the Percentage Interest of each such other remaining Member bears to the
Percentage Interest of all such other remaining Members. Notwithstanding the foregoing, the
remaining Members may elect to purchase such portion of the Percentage Interest of the
selling Member as they may mutually agree upon.

 

18

 

(b)(2) A decision by the remaining Members to have the Company liquidate the Percentage
Interest of the selling Member shall be in writing and signed by all remaining Members.

(c) The price for a Percentage Interest shall be the net fair market value of the
Company property multiplied by the Percentage Interest of the selling Member or, if the
selling Member has received a bona fide written third party offer to purchase his interest,
then the purchase price stated in such offer. The net fair market value of the Company
property shall be the net book value of the Company assets increased to reflect the fair
market value of Company assets that have a fair market value greater than their cost less
depreciation. The net fair market value of any Company real estate and equipment shall be
determined by an appraiser selected by agreement of the Members or their authorized
representatives.

(d) In the event any dispute should arise hereunder, such dispute shall be submitted to
binding arbitration in accordance with the provisions of Section 9.4 hereof.

(e) The terms of any sale or liquidation hereunder shall be as follows:

(1) The Member who wishes to sell or transfer shall give written notice thereof
to the other Members including, if applicable, a copy of the written offer of any
third party purchaser.

(2) The other Members shall have a period of thirty (30) days after such
notification within which to notify the selling Member of their intent to purchase
or cause a liquidation of the Percentage Interest.

(3) Failure of the other Members to notify the selling Members within said
thirty (30) day period shall render the Percentage Interest saleable to a third
party for a period of sixty (60) days, and if not sold within that period, it shall
once again become subject to this Agreement. Provided, however, that a Percentage
Interest may not be sold or transferred to a third party without the written consent
of the non-selling Members, which consent shall not be unreasonably withheld.
Provided, further, that any sale to a third party shall be at a purchase price not
less than that stated in a written offer communicated to the remaining Members
pursuant to subparagraph (1) of this subsection (e) or, if no such offer was
communicated to the remaining Members, the fair market value of the Percentage
Interest.

 

19

 

(4) The purchase price of the Percentage Interest purchased by the Company
and/or each of the remaining Members shall be paid as follows:

(i) The Company or purchasing Member shall pay in cash or by certified
check an amount equal to one-sixth (1/6) of the
purchase price at the time of Settlement. The Company’s or the
purchasing Member’s obligation to pay the remaining purchase price shall be
evidenced by a note, delivered at Settlement and payable to the selling
Member, the principal amount of which shall equal the balance of the
purchase price. The promissory note shall provide for five (5) equal
installments of principal and interest, payable on the first through the
fifth anniversary dates of the Settlement. The promissory note shall bear
interest at a rate equal to the then-current prime rate of interest plus one
percent per annum and may be prepaid without premium or penalty.

(ii) Settlement shall be held within sixty (60) days after the
remaining Members receive notice of the intention to sell or transfer a
Percentage Interest at a time and place agreed to by the parties.

(iii) Upon the delivery of the promissory note, the selling Member
shall execute and deliver to the Company or purchasing Member(s) such
documents as may be reasonably required to evidence the liquidation or
transfer of his Percentage Interest.

(iv) Nothing contained in this subparagraph (4) shall prevent the
Members from mutually agreeing upon some other terms of payment.

9.3 Transfer of Percentage Interests to Related Parties.

Notwithstanding the provisions of Section 9.1 of this Agreement or any other provisions
hereof, a Member may, at any time, without the consent of and without creating a right of first
refusal in the remaining Members or the Company, transfer all or any part of its Percentage
Interest to an entity owned or controlled by the same persons owning or control such Member. Any
Percentage Interest thus transferred shall, in the hands of each transferee, be subject to the
terms and conditions of this Agreement.

9.4 Arbitration.

The parties agree that in the event any disagreement or dispute shall arise pertaining to the
terms of Sections 9.1 and 9.2, all matters in controversy shall be submitted to a board of
arbitrators consisting of three members, one of whom shall be chosen by the selling Member, one of
whom shall be chosen by the remaining Members, and the third shall be chosen by the two designees.
The parties to this Agreement, for themselves, their heirs, executors and assigns, agree to be
bound by the decision of the board of arbitrators and accept its decision as a final determination.

9.5 Indemnity.

If a Member shall, or shall attempt to, sell, assign, transfer, pledge, subject to any
security interest, or otherwise dispose of his/its Company interest, such Member
shall indemnify and hold harmless the other Members and the Company against and from any and
all liabilities, obligations, costs and expenses the other Member(s) or the Company may incur as a
result of such failure.

 

20

 

9.6 Drag-Along Rights.

(a) Except as otherwise provided in this Agreement, if, at any time after the date
hereof, the Managing Member (the “Drag-Along Transferring Member”) desires to
Transfer a Percentage Interest owned by such Member to a third party (whether for cash,
securities or a combination of both), then, if requested by the Drag-Along Transferring
Member, each other Member (a “Drag-Along Participant”) shall be required to sell a
percentage of its Percentage Interests equal to the percentage of Percentage Interests owned
by the Drag-Along Transferring Member that are being sold by the Drag-Along Transferring
Member.

(b) The consideration to be received by each Drag-Along Participant in the transaction
contemplated by Section 9.6(a) (the “Drag Transaction”) shall be the same form and
amount of consideration per Percentage Interest to be received by the Drag-Along
Transferring Member(s), and the terms and conditions of such sale shall be the same as those
upon which the Drag-Along Transferring Member(s) sells its Percentage Interests. If the
Drag-Along Transferring Member(s) are given an option as to the form and amount of
consideration to be received, all Drag-Along Participants will be given the same option.

(c) The Drag-Along Transferring Member(s) shall provide written notice (the
“Drag-Along Notice”) to each Drag-Along Participant of any proposed Drag Transaction
not less than 10 days prior to the consummation of the Drag Transaction. The Drag-Along
Notice shall set forth the consideration to be paid by the purchaser for the Percentage
Interests in the Drag Transaction, the name of the proposed purchaser and the other material
terms of the Drag Transaction.

(d) In connection with the Drag Transaction, each Drag-Along Participant will agree to
make the same customary representations, covenants, indemnities and agreements as the
Drag-Along Transferring Member(s).

(e) At least 10 days prior to the anticipated consummation of the Drag Transaction,
each Drag-Along Participant shall deliver to the Company to hold in escrow pending transfer
of the consideration in respect thereof and the consummation of the Drag Transaction in
accordance with its agreed terms and conditions (i) such documents as are necessary to
convey to the applicable purchaser the Percentage Interests to be Transferred by such
Drag-Along Participant, in form and substance reasonably satisfactory to such purchaser and
(ii) a limited power-of-attorney authorizing the Company to take all actions necessary to
Transfer such securities in such Drag Transaction. In the event that a Drag-Along
Participant should fail to deliver such documents and power-of-
attorney, the Company shall cause the books and records of the Company to show that
such Percentage Interests are bound by the provisions of this Section 9.6 and that the
Transfer of such Percentage Interests to the purchaser in such sale may be effected without
such Drag-Along Participant’s consent.

 

21

 

(f) The closing of the Drag Transaction shall be held at such place and on such date as
determined by the Drag-Along Transferring Member(s) and the proposed purchaser, but in no
event later than 120 days (or longer, if the Hart-Scott-Rodino Act so requires) after
delivery of the Drag-Along Notice required to be delivered pursuant to Section 9.6(c). Upon
the consummation of the Drag Transaction, the purchaser shall remit directly to each
Drag-Along Participant, by wire transfer if available and if requested by the Drag-Along
Participant, the consideration for such Drag-Along Participant’s Percentage Interests sold
pursuant thereto.

9.7 Tag-Along Rights.

(a) In the event that the Managing Member (the “Tag-Along Transferring
Member(s)”) shall Transfer Percentage Interests then held by such Member (except for
Transfers by the Managing Member not in the nature of a liquidation or realization of its
investment, such as a transfer involving a Transfer to an Affiliate or in the context of a
reorganization or the Managing Member’s investment in the Company, or transaction of a
similar nature) (a “Tag-Along Sale”) to a third party or third parties, the other B
Members (the “Tag-Along Participants”) shall have the right and option, but not the
obligation, to sell the same percentage of the total number of Percentage Interests held by
the respective Tag-Along Participants as the percentage of the total Percentage Interests
held by the Tag-Along Transferring Member that are being sold, on the terms and conditions
set forth in this Section 9.7.

(b) The consideration to be received by each Tag-Along Participant in the transaction
contemplated by Section 9.7(a) (the “Tag Transaction”) shall be the same form and
amount of consideration per Percentage Interest to be received by the Tag-Along Transferring
Member(s), and the terms and conditions of such sale shall be the same as those upon which
the Tag-Along Transferring Member(s) sells its Percentage Interests. If the Tag-Along
Transferring Member(s) is given an option as to the form and amount of consideration to be
received, all Tag-Along Participants will be given the same option.

(c) The Tag-Along Transferring Member(s) shall provide written notice (the
“Tag-Along Notice”) to each Tag-Along Participant of any proposed Tag Transaction
not less than 10 days prior to the consummation of the Tag Transaction. The Tag-Along
Notice shall set forth the consideration to be paid by the purchaser for the Percentage
Interests in the Tag Transaction, the name of the proposed purchaser and the other material
terms of the Tag Transaction.

 

22

 

(d) In connection with the Tag Transaction, each Tag-Along Participant will agree to
make the same customary representations, covenants, indemnities and agreements as the
Tag-Along Transferring Member(s).

(e) At least 10 days prior to the anticipated consummation of the Tag Transaction, each
Tag-Along Participant shall deliver to the Company to hold in escrow pending transfer of the
consideration in respect thereof and the consummation of the Tag Transaction in accordance
with its agreed terms and conditions (i) such documents as are necessary to convey to the
applicable purchaser the Percentage Interests to be Transferred by such Tag-Along
Participant, in form and substance reasonably satisfactory to such purchaser and (ii) a
limited power-of-attorney authorizing the Company to take all actions necessary to Transfer
such securities in such Tag Transaction. In the event that a Tag-Along Participant should
fail to deliver such documents and power-of-attorney, the Company shall cause the books and
records of the Company to show that such Percentage Interests are bound by the provisions of
this Section 9.7 and that the Transfer of such Percentage Interests to the purchaser in such
sale may be effected without such Tag-Along Participant’s consent.

(f) The closing of the Tag Transaction shall be held at such place and on such date as
determined by the Tag-Along Transferring Member(s) and the proposed purchaser, but in no
event later than 120 days (or longer, if the Hart-Scott-Rodino Act so requires) after
delivery of the Tag-Along Notice required to be delivered pursuant to Section 9.7(c). Upon
the consummation of the Tag Transaction, the purchaser shall remit directly to each
Tag-Along Participant, by wire transfer if available and if requested by the Tag-Along
Participant, the consideration for such Tag-Along Participant’s Percentage Interests sold
pursuant thereto.

ARTICLE 10

GENERAL PROVISIONS

10.1 Binding Effect and Benefit of This Agreement.

This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and
their respective successors and permitted assigns, as the case may be.

10.2 Agreement

The titles of the Articles and Sections herein have been inserted as a matter of convenience
of reference only and shall not control or affect the meaning or construction of any of the terms
or provisions hereof. At the expense of the Company, the Members shall promptly have prepared,
executed and filed or recorded all legally required fictitious name or other applications,
registrations, publications, certificates and
affidavits for filing with the proper governmental authorities and have arranged for the
proper advertisement, publication and filing of record thereof.

 

23

 

10.3 Notices, etc.

Except as otherwise expressly provided herein, all notices that are required or contemplated
by this Agreement shall be in writing. Delivery of such notices shall be deemed to be made when
the same are either personally served upon the person entitled thereto or sent by telecopy (fax) to
such person (with receipt acknowledged by the person receiving such telecopy) or three (3) days
after being deposited in the mails, by certified or registered mail, with postage prepaid,
addressed to such person at its mailing address as shown on the Company’s records as changed by
notice to parties hereto in accordance herewith.

10.4 Integration; Termination.

This Agreement represents the entire understanding of the parties with respect to the subject
matter hereof. No termination, revocation or waiver of this Agreement shall be binding unless in
writing and signed by all Members.

10.5 Interpretation.

This Agreement shall be interpreted and construed in accordance with the laws of the State of
Delaware without regard to its conflicts of laws provisions, but shall not be construed against the
drafter of this Agreement. As used in this Agreement, the neuter, masculine and/or feminine gender
shall include the neuter, masculine or feminine gender as required by the context of the sentence
and the plural shall include the singular wherever appropriate.

10.6 Counterparts.

The parties hereto may execute this Agreement in any number of counterparts, each of which,
when executed and delivered, shall be an original; but all such counterparts shall constitute one
and the same instrument.

10.7 Severability of Provisions.

Each provision of this Agreement shall be considered severable. If for any reason any
provision or provisions hereof are determined to be illegal or invalid, such illegality or
invalidity shall not impair the operation of or affect those portions of this Agreement that are
valid and this Agreement shall be construed in all respects as if such invalid or illegal provision
was omitted.

10.8 Amendments.

This Agreement may be amended by the unanimous vote of the Members and any such amendment
approved in accordance with the foregoing shall be provided to all of the Members in written form;
provided, however, this Agreement may not be
amended without the unanimous written consent of each Member adversely affected thereby if
such amendment would (i) modify the limited liability of a Member, or (ii) alter the interest of a
Member in the Profits, Losses, or distributions of the Company.

 

24

 

10.9 Subject to Purchase Agreement.

Notwithstanding anything to the contrary contained in this Agreement, the Company is bound by
the provisions of the Purchase Agreement and is authorized to take the actions set forth therein.

IN WITNESS WHEREOF, the parties have caused this Operating Agreement to be executed as of the
day and year first above written.

	 	 	 	 	 
	WITNESS:

	 	MEMBERS:	 	 
	 
	 	 	 	 
	 

	 	Unilife Corporation	 	 
	 
	 	 	 	 
	 

	 	/s/ Alan Shortall	 	 
	 

	 	 

By:    Alan Shortall
	 	 
	 

	 	Title: CEO	 	 

 

25

 

EXHIBIT A

	 	 	 	 	 
	Members	 	Percentage Interest	 
	 
	 	 	 	 
	Currently:
	 	 	 	 
	Unilife Corporation
	 	 	100	%
	 
	 	 	 	 
	Upon performance of the Purchase Agreement:
	 	 	 	 
	Unilife Corporation
	 	 	99	%
	Cross Farm, LLC
	 	 	1	%

 

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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]