Document:

Registration Rights Agreement, dated August 14, 2007

 EXHIBIT 10.1 
 REGISTRATION RIGHTS AGREEMENT 
 dated as of August 14, 2007 
 between 
 ADVANCED MICRO DEVICES,
INC. 
 and 
 LEHMAN
BROTHERS INC., 
 as Initial Purchaser 

 REGISTRATION RIGHTS AGREEMENT dated as of August 14, 2007 between Advanced Micro Devices, Inc., a
Delaware corporation (the “Company”), and Lehman Brothers Inc., as initial purchaser (the “Initial Purchaser”) to the Purchase Agreement dated as of August 9, 2007 (the “Purchase Agreement”)
with the Company. In order to induce the Initial Purchaser to enter into the Purchase Agreement, the Company has agreed to provide the registration rights set forth in this Agreement. The execution of this Agreement is a condition to the closing
under the Purchase Agreement. 
 The Company agrees with the Initial Purchaser, (i) for its benefit as Initial Purchaser and
(ii) for the benefit of the beneficial owners (including the Initial Purchaser) from time to time of the Securities (as defined herein) and the beneficial owners from time to time of the Underlying Common Stock (as defined herein) issued upon
conversion of the Securities (each of the foregoing a “Holder” and together the “Holders”), as follows: 
 Section 1. Definitions. Capitalized terms used herein without definition shall have their respective meanings set forth in the Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings:

 “Additional Filing Deadline” has the meaning set forth in Section 2(f)(v) hereof. 
 “Additional Interest Amount” has the meaning set forth in Section 2(f) hereof. 
 “Affiliate” means with respect to any specified person, an “affiliate,” as defined in Rule 144, of such person. 
 “Amendment Effectiveness Deadline” has the meaning set forth in Section 2(d) hereof. 
 “Automatic Shelf Registration Statement” has the meaning ascribed to it in Rule 405. 
 “Business Day” means any day, except a Saturday, Sunday or legal holiday on which banking institutions in The City of New York are
authorized or obligated by law or executive order to close. 
 “Common Stock” means the shares of common stock, par value
$.01 per share, of the Company, and any other shares of common stock as may constitute “Common Stock” for purposes of the Indenture, including the Underlying Common Stock. 
 “Conversion Price” has the meaning assigned such term in the Indenture. 

 “Deferral Notice” has the meaning set forth in Section 3(h) hereof. 
 “Deferral Period” has the meaning set forth in Section 3(h) hereof. 
 “Effectiveness Deadline” has the meaning set forth in Section 2(a) hereof. 
 “Effectiveness Period” means the period commencing on the first date that a Shelf Registration Statement is declared effective under the
Securities Act hereof and ending on the date that all Securities and the Underlying Common Stock have ceased to be Registrable Securities. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder. 
 “Free Writing Prospectus” has the meaning set forth in Rule 405. 
 “Filing
Deadline” has the meaning set forth in Section 2(a) hereof. 
 “Holder” has the meaning set forth in the
second paragraph of this Agreement. 
 “Indenture” means the Indenture dated as of the date hereof between the Company and
the Trustee, pursuant to which the Securities are being issued. 
 “Initial Purchaser” means the Initial Purchaser named in
the Purchase Agreement. 
 “Interest Payment Date” means each February 15 and August 15 of each year. 

“Issue Date” means the first date of original issuance of the Securities. 
 “Issuer Free Writing Prospectus” has the meaning set forth in Rule 433. 
 “Material Event” has the meaning set forth in Section 3(h) hereof. 
 “Notice and Questionnaire” means a written notice delivered to the Company containing substantially the information called for by the
Selling Securityholder Notice and Questionnaire attached as Annex A to the Offering Memorandum of the Company dated as of August 9, 2007 relating to the Securities. 
 “Notice Holder” means, on any date, any Holder that has delivered a Notice and Questionnaire to the Company on or prior to such date.

 “Purchase Agreement” has the meaning set forth in the preamble hereof. 
  

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 “Prospectus” means a prospectus relating to a Shelf Registration Statement, as amended
or supplemented, and all materials incorporated by reference in such Prospectus. 
 “Record Date” means each February 1
and August 1 of each year. 
 “Record Holder” means with respect to any Interest Payment Date relating to any
Securities or Underlying Common Stock as to which any Additional Interest Amount has accrued, the registered holder of such Security on the Record Date immediately preceding the Interest Payment Date. 
 “Registrable Securities” means the Securities until such Securities have been converted into or exchanged for the Underlying Common
Stock and, at all times subsequent to any such conversion, the Underlying Common Stock and any securities into or for which such Underlying Common Stock has been converted or exchanged, and any security issued with respect thereto upon any stock
dividend, split or similar event until, in the case of any such security, (A) the earliest of (i) its effective registration under the Securities Act and resale in accordance with a Shelf Registration Statement, (ii) expiration of the
holding period that would be applicable thereto under Rule 144(k) or (iii) its sale to the public pursuant to Rule 144 (or any similar provision then in force, but not Rule 144A) under the Securities Act, and (B) as a result of the event
or circumstance described in any of the foregoing clauses (i) through (iii), the legend with respect to transfer restrictions required under the Indenture is removed or removable in accordance with the terms of the Indenture or such legend, as
the case may be. 
 “Registration Default” has the meaning set forth in Section 2(f) hereof. 
 “Registration Default Period” has the meaning set forth in Section 2(f) hereof. 
 “Rule 144” means Rule 144 under the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the SEC. 
 “Rule 144A” means Rule 144A under the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the SEC. 
 “Rule 405” means Rule 405 under the Securities
Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the SEC. 
 “Rule
424” means Rule 424 under the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the SEC. 
  

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 “Rule 433” means Rule 433 under the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the SEC. 
 “SEC” means the Securities and Exchange
Commission. 
 “Securities” means the 5.75% Convertible Senior Notes due 2012 of the Company to be purchased pursuant to the
Purchase Agreement, including any Securities purchased by the Initial Purchaser upon exercise of its option to purchase additional Securities. 
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated by the SEC thereunder. 
 “Shelf Registration Statement” has the meaning set forth in Section 2(a) hereof, including amendments to such registration statement, all exhibits to such registration statement and all materials
incorporated by reference in such registration statement. 
 “Special Counsel” means Davis Polk & Wardwell or one
such other successor counsel as shall be specified by the Holders of a majority of the Registrable Securities, but which may, with the written consent of the Initial Purchaser (which shall not be unreasonably withheld), be another nationally
recognized law firm experienced in securities law matters designated by the Company. For purposes of determining Holders of a majority of the Registrable Securities in this definition, Holders of Securities shall be deemed to be the Holders of the
number of shares of Underlying Common Stock into which such Securities are or would be convertible as of the date the consent is requested. 
 “Trustee” means Wells Fargo Bank, National Association, the Trustee under the Indenture. 
 “Underlying
Common Stock” means the Common Stock into which the Securities are convertible or issued upon any such conversion. 
 Section 2. Shelf Registration. (a) The Company shall prepare and file or cause to be prepared and filed with the SEC, as soon as practicable but in any event by the date (the “Filing Deadline”) 90 days
after the Issue Date, a registration statement for an offering to be made on a delayed or continuous basis pursuant to Rule 415 of the Securities Act registering the resale from time to time by Holders of the Registrable Securities (a “Shelf
Registration Statement”). The Shelf Registration Statement shall be on Form S-3 or another appropriate form permitting registration of the Registrable Securities for resale by the Holders in accordance with the methods of distribution
elected by the Holders and set forth in the Shelf Registration Statement. Each Shelf Registration Statement that 

  

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is filed on Form S-3 shall be designated by the Company as an Automatic Shelf Registration Statement if the Company is then eligible to file an Automatic
Shelf Registration Statement on Form S-3 for the purposes contemplated by this Agreement. If the Company is eligible pursuant to Rule 430B(b) to omit from the related Prospectus the identities of selling securityholders and the amounts of securities
to be registered on their behalf, the Company shall prepare and file each Shelf Registration Statement in a manner as to permit such omission and to allow for the subsequent filing of such information in a Prospectus pursuant to Rule 424(b) in the
manner contemplated by Rule 430B(d). The Company shall use its reasonable best efforts to cause a Shelf Registration Statement to be declared effective under the Securities Act as promptly as is practicable but in any event by the date (the
“Effectiveness Deadline”) that is 180 days after the Issue Date, and to keep a Shelf Registration Statement continuously effective under the Securities Act until the expiration of the Effectiveness Period. Each Holder that became a
Notice Holder within 20 days of receiving notice from the Company pursuant to Section 3(c) below of the filing of the Shelf Registration Statement shall be named as a selling securityholder in the initial Shelf Registration Statement and the
related Prospectus in such a manner as to permit such Holder to deliver the Prospectus to purchasers of Registrable Securities in accordance with applicable law. None of the Company’s security holders (other than the Holders) shall have the
right to include any of the Company’s securities in a Shelf Registration Statement. 
 (b) If a Shelf Registration Statement covering
resales of the Registrable Securities ceases to be effective for any reason at any time during the Effectiveness Period (other than because all securities registered thereunder shall have been resold pursuant thereto or shall have otherwise ceased
to be Registrable Securities), or if such Shelf Registration Statement constituted an Automatic Shelf Registration Statement at the time it was filed with the SEC and ceases to constitute an Automatic Shelf Registration Statement, the Company shall
use its reasonable best efforts to obtain the prompt withdrawal of any order suspending the effectiveness thereof, and in any event shall within 30 days of such cessation of effectiveness amend the Shelf Registration Statement in a manner reasonably
expected to obtain the withdrawal of the order suspending the effectiveness thereof, or file an additional Shelf Registration Statement so that all Registrable Securities outstanding as of the date of such filing are covered by a Shelf Registration
Statement. If a new Shelf Registration Statement is filed, the Company shall use its reasonable best efforts to cause the new Shelf Registration Statement to become effective as promptly as is practicable after such filing and to keep the new Shelf
Registration Statement continuously effective until the end of the Effectiveness Period. 
 (c) The Company shall amend and supplement the
Prospectus and amend the Shelf Registration Statement if required by the rules, regulations or instructions applicable to the registration form used by the Company for such 

  

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Shelf Registration Statement or file a new Shelf Registration Statement, if required by the Securities Act, or any other documents necessary to name a Notice
Holder as a selling securityholder pursuant to Section 2(e) below. 
 (d) The Company agrees that, unless it obtains the prior consent
of the Holders of a majority of the Registrable Securities that are registered under the Shelf Registration Statement at such time or the consent of the managing underwriters in connection with any underwritten offering of Registrable Securities,
and each Holder agrees that, unless it obtains the prior written consent of the Company and any such underwriters, it will not make any offer relating to the Securities that would constitute an Issuer Free Writing Prospectus, or that would otherwise
constitute a Free Writing Prospectus required to be filed with the SEC. The Company represents that any Issuer Free Writing Prospectus prepared by it or authorized by it in writing for use by such Holder will not include any information that
conflicts with the information contained in the Shelf Registration Statement or the Prospectus and, any such Issuer Free Writing Prospectus, when taken together with the information in the Shelf Registration Statement and the Prospectus, will not
include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. 
 (e) Each Holder may sell Registrable Securities pursuant to a Shelf Registration Statement and related Prospectus only in accordance with this
Section 2(e) and Section 3(h). Each Holder wishing to sell Registrable Securities pursuant to a Shelf Registration Statement and related Prospectus shall deliver a Notice and Questionnaire to the Company prior to any intended distribution
of Registrable Securities under the Shelf Registration Statement. From and after the date the initial Shelf Registration Statement is declared effective, the Company shall, as promptly as practicable after the date a fully completed Notice and
Questionnaire is delivered, and in any event upon the later of (x) 30 calendar days after such date or (y) five Business Days after the expiration of any Deferral Period in effect when the fully completed Notice and Questionnaire is
delivered or put into effect within 30 calendar Days of such delivery date: 
 (i) if required by applicable law, file with
the SEC a post-effective amendment to the Shelf Registration Statement or prepare and, if required by applicable law, file a supplement to the related Prospectus or a supplement or amendment to any document incorporated therein by reference or file
a new Shelf Registration Statement or any other required document so that the Holder delivering such fully completed Notice and Questionnaire is named as a selling securityholder in a Shelf Registration Statement and the related Prospectus in such a
manner as to permit such Holder to deliver such Prospectus to purchasers of the Registrable Securities in accordance with applicable law and, if the Company shall file a post-effective amendment to a Shelf Registration Statement or shall file

  

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a new Shelf Registration Statement, the Company shall use its reasonable best efforts to cause such post-effective amendment or new Shelf Registration
Statement to be declared effective under the Securities Act as promptly as is practicable, but in any event by the date (the “Amendment Effectiveness Deadline”) that is 45 days after the date such post-effective amendment or new
Shelf Registration Statement is required by this clause to be filed; 
 (ii) provide such Holder copies of any documents filed
pursuant to Section 2(e)(i); and 
 (iii) notify such Holder as promptly as practicable after the effectiveness under the
Securities Act of any new Shelf Registration Statement or post-effective amendment filed pursuant to Section 2(e)(i); 
 provided that if such
Notice and Questionnaire is delivered during a Deferral Period, the Company shall so inform the Holder delivering such Notice and Questionnaire and shall take the actions set forth in clauses (i), (ii) and (iii) above upon expiration of
the Deferral Period in accordance with Section 3(h). Notwithstanding anything contained herein to the contrary, (i) the Company shall be under no obligation to name any Holder that is not a Notice Holder as a selling securityholder in any
Shelf Registration Statement or related Prospectus, (ii) the Amendment Effectiveness Deadline shall be extended by up to ten Business Days from the expiration of a Deferral Period, and (iii) the Company shall not be under any obligation to
file more than one prospectus supplement or post-effective amendment to a Shelf Registration Statement in any calendar quarter or file a new Shelf Registration Statement if the latest existing Shelf Registration Statement was filed in the same
calendar quarter. 
 (f) The parties hereto agree that the Holders of Registrable Securities will suffer damages, and that it would not be
feasible to ascertain the extent of such damages with precision, if: 
 (i) a Shelf Registration Statement has not been filed
on or prior to the Filing Deadline; 
 (ii) a Shelf Registration Statement has not been declared effective under the
Securities Act on or prior to the Effectiveness Deadline; 
 (iii) the Company has failed to perform its obligations set forth
in Section 2(e)(i) within the time period required therein (taking into account the last sentence of Section 2(e)); 
  

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 (iv) a new Shelf Registration Statement or a post-effective amendment to a Shelf
Registration Statement filed pursuant to Section 2(e)(i) has not become effective under the Securities Act on or prior to the Amendment Effectiveness Deadline (taking into account the last sentence of Section 2(e)); 
 (v) a supplement to a Prospectus is required to be filed with the SEC pursuant to Section 2(e)(i) and fails to be filed with the SEC
within the prescribed period and in the manner set forth in Section 2(e) above (a date such filing is required to be made, an “Additional Filing Deadline”); 
 (vi) the aggregate duration of Deferral Periods in any period exceeds the number of days permitted in respect of such period pursuant to
Section 3(h) hereof; or 
 (vii) the number of Deferral Periods in any period exceeds the number permitted in respect of
such period pursuant to Section 3(h) hereof. 
 Each event described in any of the foregoing clauses (i) through (vii) is individually
referred to herein as a “Registration Default.” For purposes of this Agreement, each Registration Default set forth above shall begin and end on the dates set forth in the table set forth below: 
  

					
	 Type of
Registration
Default by
Clause
	  	 Beginning Date
	  	 Ending Date

	(i)	  	Filing Deadline	  	the date a Shelf Registration Statement is filed
			
	(ii)	  	Effectiveness Deadline	  	the date a Shelf Registration Statement becomes effective under the Securities Act
			
	(iii)	  	the date by which the Company is required to perform its obligations under Section 2(e)(i) (taking into account the last sentence of Section 2(e))	  	the date the Company performs its obligations set forth in Section 2(e)(i)
			
	(iv)	  	the Amendment Effectiveness Deadline (taking into account the last sentence of Section 2(e))	  	the date the applicable post-effective amendment to a Shelf Registration Statement or a new

  

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	 Type of
Registration
Default by
Clause
	  	 Beginning Date
	  	 Ending Date

		  		  	Shelf Registration Statement becomes effective under the Securities Act
			
	(v)	  	the Additional Filing Deadline	  	the date the applicable supplement to a Prospectus is filed with the SEC in the manner set forth in Section 2(e)
			
	(vi)	  	the date on which the aggregate duration of Deferral Periods in any period exceeds the number of days permitted by Section 3(h)	  	termination of the Deferral Period that caused the limit on the aggregate duration of Deferral Periods to be exceeded
			
	(vii)	  	the date of commencement of a Deferral Period that causes the number of Deferral Periods to exceed the number permitted by Section 3(h)	  	termination of the Deferral Period that caused the number of Deferral Periods to exceed the number permitted by Section 3(h)

 For purposes of this Agreement, Registration Defaults shall begin on the dates set forth in the table above and
shall continue until the ending dates set forth in the table above. 
 Commencing on (and including) any date that a Registration Default has
begun and ending on (but excluding) the next date on which there are no Registration Defaults that have occurred and are continuing (a “Registration Default Period”), the Company shall pay to Record Holders of Registrable Securities
in respect of each day in the Registration Default Period, additional interest in respect of any Security, at a rate per annum equal to 0.25% of the aggregate principal amount of such Security for the first 90 days of such Registration Default
and a rate per annum equal to 0.50% of the aggregate principal amount of such Security thereafter (the “Additional Interest Amount”); provided that in the case of a Registration Default Period that is in effect solely as a
result of a Registration Default of the type described in clause (iii), (iv) or (v) of the preceding paragraph, such Additional Interest Amount shall be paid only to the Holders (as set forth in the succeeding paragraph) that have
delivered Notices and Questionnaires that caused the Company to incur the obligations set forth in Section 2(e) the non-performance of which is the basis of 

  

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such Registration Default. Notwithstanding the foregoing, no Additional Interest Amount shall accrue as to any Registrable Security from and after the
earlier of (x) the date such security is no longer a Registrable Security and (y) expiration of the Effectiveness Period. The rate of accrual of the Additional Interest Amount with respect to any period shall not exceed the rate provided
for in this paragraph notwithstanding the occurrence of multiple concurrent Registration Defaults. 
 The Additional Interest Amount shall
accrue from the first day of the applicable Registration Default Period, and shall be payable on each Interest Payment Date during the Registration Default Period (and on the Interest Payment Date next succeeding the end of the Registration Default
Period if the Registration Default Period does not end on an Interest Payment Date) to the Record Holders of the Registrable Securities entitled thereto; provided that any Additional Interest Amount accrued with respect to any Security or
portion thereof redeemed by the Company on a redemption date, purchased by the Company on a repurchase date or converted into Underlying Common Stock on a conversion date prior to the Interest Payment Date, shall, in any such event, be paid instead
to the Holder who submitted such Security or portion thereof for redemption, purchase or conversion on the applicable redemption date, repurchase date or conversion date, as the case may be, on such date (or promptly following the conversion date,
in the case of conversion), unless the redemption date or the repurchase date, as the case may be, falls after the Record Date immediately preceding the Interest Payment Date and on or prior to the corresponding Interest Payment Date; and
provided further, that, in the case of a Registration Default of the type described in clause (iii), (iv) or (v) of the first paragraph of this Section 2(f) such Additional Interest Amount shall be paid only to the Holders
entitled thereto by check mailed to the address set forth in the Notice and Questionnaire delivered by such Holder. The Trustee shall be entitled, on behalf of registered holders of Securities, to seek any available remedy for the enforcement of
this Agreement, including for the payment of such Additional Interest Amount. Notwithstanding the foregoing, the parties agree that the sole damages payable for a violation of the terms of this Agreement with respect to which additional interest are
expressly provided shall be such Additional Interest Amount. Nothing shall preclude any Holder from pursuing or obtaining specific performance or other equitable relief with respect to this Agreement. 
 All of the Company’s obligations set forth in this Section 2(f) that are outstanding with respect to any Registrable Security at the time such
security ceases to be a Registrable Security shall survive until such time as all such obligations with respect to such security have been satisfied in full (notwithstanding termination of this Agreement pursuant to Section 8(k)). 

The parties hereto agree that the additional interest provided for in this Section 2(f) constitutes a reasonable estimate of the damages that may
be incurred by Holders of Registrable Securities by reason of the failure of a Shelf Registration Statement to be filed or declared effective or available for effecting resales of Registrable Securities in accordance with the provisions hereof.

  

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 Section 3. Registration Procedures. In connection with the registration obligations of the
Company under Section 2 hereof, the Company shall: 
 (a) Before filing any Shelf Registration Statement or Prospectus or any amendments
or supplements thereto with the SEC, furnish to the Initial Purchaser and the Special Counsel of such offering, if any, copies of all such documents proposed to be filed at least three Business Days prior to the filing of such Shelf Registration
Statement or amendment thereto or Prospectus or supplement thereto. 
 (b) Subject to Section 3(h) prepare and file with the SEC such
amendments and post-effective amendments to each Shelf Registration Statement as may be necessary to keep such Shelf Registration Statement continuously effective during the Effectiveness Period; cause the related Prospectus to be supplemented by
any required prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 (or any similar provisions then in force) under the Securities Act; and use its reasonable best efforts to comply with the provisions of the Securities Act
applicable to it with respect to the disposition of all securities covered by such Shelf Registration Statement during the Effectiveness Period in accordance with the intended methods of disposition by the sellers thereof set forth in such Shelf
Registration Statement as so amended or such Prospectus as so supplemented. 
 (c) As promptly as practicable give notice to the Notice
Holders, the Initial Purchaser and the Special Counsel, (i) when any Prospectus, prospectus supplement, Shelf Registration Statement or post-effective amendment to a Shelf Registration Statement has been filed with the SEC and, with respect to
a Shelf Registration Statement or any post-effective amendment, when the same has been declared effective, (ii) of any request, following the effectiveness of the initial Shelf Registration Statement under the Securities Act, by the SEC or any
other federal or state governmental authority for amendments or supplements to any Shelf Registration Statement or related Prospectus or for additional information, (iii) of the issuance by the SEC or any other federal or state governmental
authority of any stop order suspending the effectiveness of any Shelf Registration Statement or the initiation or threatening of any proceedings for that purpose, (iv) of the receipt by the Company of any notification with respect to the
suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose, (v) of the occurrence of, but not the nature
of or details concerning, a Material Event and (vi) of the determination by the Company that a post-effective amendment to a Shelf Registration Statement will be filed with the SEC, which notice may, at the discretion of the Company (or as
required pursuant to Section 3(h)) state that it constitutes a Deferral Notice, in which event the provisions of Section 3(h) shall apply. 
  

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 (d) Use its reasonable best efforts to obtain the withdrawal of any order suspending the effectiveness of
a Shelf Registration Statement or the lifting of any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction in which they have been qualified for sale, in either case at
the earliest possible moment, and provide immediate notice to each Notice Holder and the Initial Purchaser of the withdrawal of any such order. 
 (e) As promptly as practicable furnish to each Notice Holder, the Special Counsel and the Initial Purchaser, upon request and without charge, at least one conformed copy of each Shelf Registration Statement and any amendment thereto,
including exhibits and all documents incorporated or deemed to be incorporated therein by reference. 
 (f) During the Effectiveness Period,
deliver to each Notice Holder, the Special Counsel, if any, and the Initial Purchaser, in connection with any sale of Registrable Securities pursuant to a Shelf Registration Statement, without charge, as many copies of the Prospectus relating to
such Registrable Securities (including each preliminary prospectus) and any amendment or supplement thereto as such Notice Holder may reasonably request; and the Company hereby consents (except during such periods that a Deferral Notice is
outstanding and has not been revoked) to the use of such Prospectus or each amendment or supplement thereto by each Notice Holder in connection with any offering and sale of the Registrable Securities covered by such Prospectus or any amendment or
supplement thereto in the manner set forth therein. 
 (g) Prior to any public offering of the Registrable Securities pursuant to a Shelf
Registration Statement, use its reasonable best efforts to register or qualify or cooperate with the Notice Holders and the Special Counsel in connection with the registration or qualification (or exemption from such registration or qualification)
of such Registrable Securities for offer and sale under the securities or Blue Sky laws of such jurisdictions within the United States as any Notice Holder reasonably requests in writing (which request may be included in the Notice and
Questionnaire); prior to any public offering of the Registrable Securities pursuant to a Shelf Registration Statement, use its reasonable best efforts to keep each such registration or qualification (or exemption therefrom) effective during the
Effectiveness Period in connection with such Notice Holder’s offer and sale of Registrable Securities pursuant to such registration or qualification (or exemption therefrom) and do any and all other acts or things reasonably necessary or
advisable to enable the disposition in such jurisdictions of such Registrable Securities in the manner set forth in the Shelf Registration Statement and the related Prospectus; provided that the Company will not be 

  

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required to (i) qualify as a foreign corporation or as a dealer in securities in any jurisdiction where it would not otherwise be required to qualify
but for this Agreement or (ii) take any action that would subject it to general service of process in suits or to taxation in any such jurisdiction where it is not then so subject. 
 (h) Upon (A) the issuance by the SEC of a stop order suspending the effectiveness of a Shelf Registration Statement or the initiation of proceedings
with respect to a Shelf Registration Statement under Section 8(d) or 8(e) of the Securities Act, (B) the occurrence of any event or the existence of any fact (a “Material Event”) as a result of which a Shelf Registration
Statement shall contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, or any Prospectus shall contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, or (C) the occurrence or existence of any
pending corporate development that, in the reasonable discretion of the Company, makes it appropriate to suspend the availability of a Shelf Registration Statement and the related Prospectus: 
 (i) in the case of clause (B) above, as promptly as practicable prepare and file, if necessary pursuant to applicable law, a
post-effective amendment to such Shelf Registration Statement or a supplement to the related Prospectus or any document incorporated therein by reference or file any other required document that would be incorporated by reference into such Shelf
Registration Statement and Prospectus so that such Shelf Registration Statement does not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not
misleading, and such Prospectus does not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading, as thereafter delivered to the purchasers of the Registrable Securities being sold thereunder, and, in the case of a post-effective amendment to a Shelf Registration Statement, use its reasonable best efforts to cause it
to be declared effective as promptly as is practicable, and 
 (ii) give notice to the Notice Holders, and the Special
Counsel, if any, that the availability of a Shelf Registration Statement is suspended (a “Deferral Notice”). 
 The Company will use its
reasonable best efforts to ensure that the use of the Prospectus may be resumed (x) in the case of clause (A) above, as promptly as is 

  

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practicable, (y) in the case of clause (B) above, as soon as, in the sole judgment of the Company, public disclosure of such Material Event would
not be prejudicial to or contrary to the interests of the Company or, if necessary to avoid unreasonable burden or expense, as soon as practicable thereafter and (z) in the case of clause (C) above, as soon as in the reasonable discretion
of the Company, such suspension is no longer appropriate. The Company shall be entitled to exercise its right under this Section 3(h) to suspend the availability of a Shelf Registration Statement or any Prospectus, without incurring or accruing
any obligation to pay additional interest pursuant to Section 2(f), no more than once in any 90-day period or three times in any twelve month period, and any such period during which the availability of the Shelf Registration Statement and any
Prospectus is suspended (the “Deferral Period”) shall, without incurring any obligation to pay additional interest pursuant to Section 2(f), not exceed 30 days; provided that the duration of any Deferral Periods shall
not exceed 30 consecutive days in any 90-day period or an aggregate of 90 days in any consecutive 12-month period; provided that in the case of a Material Event relating to an acquisition or a probable acquisition or financing,
recapitalization, business combination or other similar transaction, the Company may, without incurring any obligation to pay additional interest pursuant to Section 2(f), deliver to Notice Holders a second notice to the effect set forth above,
which shall have the effect of extending the Deferral Period by up to an additional 30 days, or such shorter period of time as is specified in such second notice. 
 (i) If requested in writing in connection with a disposition of Registrable Securities pursuant to a Shelf Registration Statement, make reasonably available for inspection during normal business hours by a
representative for the Notice Holders of such Registrable Securities, any broker-dealers, attorneys and accountants retained by such Notice Holders, and any attorneys or other agents retained by a broker-dealer engaged by such Notice Holders, all
relevant financial and other records and pertinent corporate documents and properties of the Company and its subsidiaries, and cause the appropriate officers, directors and employees of the Company and its subsidiaries to make reasonably available
for inspection during normal business hours on reasonable notice all relevant information reasonably requested by such representative for the Notice Holders, or any such broker-dealers, attorneys or accountants in connection with such disposition,
in each case as is customary for similar “due diligence” examinations; provided that such persons shall first agree in writing with the Company that any non-public information shall be used solely for the purposes of satisfying
“due diligence” obligations under the Securities Act and exercising rights under this Agreement and shall be kept confidential by such persons, unless (i) disclosure of such information is required by court or administrative order or
is necessary to respond to inquiries of regulatory authorities, (ii) in the opinion of Special Counsel, disclosure of such information is required by law (including any disclosure requirements pursuant to federal 

  

 14 

 
securities laws in connection with the filing of any Shelf Registration Statement or the use of any prospectus referred to in this Agreement),
(iii) such information becomes generally available to the public other than as a result of a disclosure or failure to safeguard by any such person or (iv) such information becomes available to any such person from a source other than the
Company and such source is not bound by a confidentiality agreement, and provided further that the foregoing inspection and information gathering shall, to the greatest extent possible, be coordinated on behalf of all the Notice Holders and
the other parties entitled thereto by the Special Counsel. Any person legally compelled to disclose any such confidential information made available for inspection shall as soon as practicable provide the Company with prior written notice of such
requirement so that the Company may seek a protective order or other appropriate remedy and such person shall take such actions as reasonably necessary to protect the confidentiality of such information (if practicable) to the extent such action is
otherwise not inconsistent with, an impairment of or in derogation of the rights and interest of the Holder. 
 (j) Comply with all
applicable rules and regulations of the SEC and make generally available to its securityholders earning statements (which need not be audited) satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder (or any
similar rule promulgated under the Securities Act) for a 12-month period commencing on the first day of the first fiscal quarter of the Company commencing after the effective date of a Shelf Registration Statement, which statements shall be made
available no later than 45 days after the end of the 12-month period or 90 days if the 12-month period coincides with the fiscal year of the Company. 
 (k) Cooperate with each Notice Holder to facilitate the timely preparation and delivery of certificates representing Registrable Securities sold or to be sold pursuant to a Shelf Registration Statement, which
certificates shall not bear any restrictive legends, and cause such Registrable Securities to be in such denominations as are permitted by the Indenture and registered in such names as such Notice Holder may request in writing at least one Business
Day prior to any sale of such Registrable Securities. 
 (l) Provide a CUSIP number for all Registrable Securities covered by each Shelf
Registration Statement not later than the effective date of such Shelf Registration Statement and provide the Trustee and the transfer agent for the Common Stock with printed certificates for the Registrable Securities that are in a form eligible
for deposit with The Depository Trust Company. 
 (m) Cooperate and assist in any filings required to be made with the National Association
of Securities Dealers, Inc. 
  

 15 

 Section 4. Holder’s Obligations. (a) Each Holder agrees, by acquisition of the
Registrable Securities, that no Holder shall be entitled to sell any of such Registrable Securities pursuant to a Shelf Registration Statement or to receive a Prospectus relating thereto, unless such Holder has furnished the Company with a Notice
and Questionnaire as required pursuant to Section 2(d) hereof (including the information required to be included in such Notice and Questionnaire) and the information set forth in the next sentence. Each Notice Holder agrees promptly to furnish
to the Company all information required to be disclosed in order to make the information previously furnished to the Company by such Notice Holder not misleading and any other information regarding such Notice Holder and the distribution of such
Registrable Securities as the Company may from time to time reasonably request. Any sale of any Registrable Securities by any Holder shall constitute a representation and warranty by such Holder that the information relating to such Holder and its
plan of distribution is as set forth in the Prospectus delivered by such Holder in connection with such disposition, that such Prospectus does not as of the time of such sale contain any untrue statement of a material fact relating to or provided by
such Holder or its plan of distribution and that such Prospectus does not as of the time of such sale omit to state any material fact relating to or provided by such Holder or its plan of distribution necessary to make the statements in such
Prospectus, in the light of the circumstances under which they were made, not misleading. 
 (b) Upon receipt of any Deferral Notice, each
Notice Holder agrees not to sell any Registrable Securities pursuant to any Shelf Registration Statement until such Notice Holder’s receipt of copies of the supplemented or amended Prospectus provided for in Section 3(h)(i), or until it is
advised in writing by the Company that the Prospectus may be used. 
 Section 5. Registration Expenses. The Company shall bear
all fees and expenses incurred in connection with the performance by the Company of its obligations under Sections 2 and 3 of this Agreement whether or not any Shelf Registration Statement is declared effective. Such fees and expenses shall include,
without limitation, (i) all registration and filing fees (including, without limitation, fees and expenses (x) with respect to filings required to be made with the National Association of Securities Dealers, Inc. and (y) of compliance
with federal and state securities or Blue Sky laws (including, without limitation, reasonable fees and disbursements of the Special Counsel in connection with Blue Sky qualifications of the Registrable Securities under the laws of such jurisdictions
as Notice Holders of a majority of the Registrable Securities being sold pursuant to a Shelf Registration Statement may designate), (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable
Securities in a form eligible for deposit with The Depository Trust Company), (iii) duplication expenses relating to copies of any Shelf Registration Statement or Prospectus delivered to any Holders hereunder, (iv) reasonable fees and
disbursements of counsel for the Company in connection with any Shelf 

  

 16 

 
Registration Statement, (v) reasonable fees and disbursements of the Trustee and its counsel and of the registrar and transfer agent for the Common
Stock, (vi) Securities Act liability insurance obtained by the Company in its sole discretion and (vii) the reasonable fees and disbursements of Special Counsel. In addition, the Company shall pay the internal expenses of the Company
(including, without limitation, all salaries and expenses of officers and employees performing legal or accounting duties), the expense of any annual audit, the fees and expenses incurred in connection with the listing by the Company of the
Registrable Securities on any securities exchange on which similar securities of the Company are then listed and the fees and expenses of any person, including special experts, retained by the Company. Notwithstanding the provisions of this
Section 5, each seller of Registrable Securities shall pay any broker’s commission, agency fee or underwriter’s discount or commission in connection with the sale of the Registrable Securities under a Shelf Registration Statement.

 Section 6. Indemnification and Contribution.  
 (a) The Company agrees to indemnify and hold harmless each Notice Holder, each person, if any, who controls any Notice Holder within the meaning of either Section 15 of the Securities Act or Section 20 of
the Exchange Act, and each affiliate of any Notice Holder within the meaning of Rule 405 under the Securities Act from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses
reasonably incurred in connection with defending or investigating any such action or claim) caused by any untrue statement or alleged untrue statement of a material fact contained in any Shelf Registration Statement or any amendment thereof, any
preliminary prospectus or any Prospectus (as amended or supplemented if the Company shall have furnished any amendments or supplements thereto) or any Issuer Free Writing Prospectus prepared by it or authorized by it in writing for use by such
Notice Holder (as amended or supplemented if the Company shall have furnished any amendments or supplements thereto), caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, except insofar as such losses, claims, damages or liabilities are caused by any such untrue statement or omission or alleged untrue statement or omission based upon information relating to any Notice Holder
furnished to the Company in writing by such Notice Holder expressly for use therein; provided that the foregoing indemnity shall not inure to the benefit of any Notice Holder (or to the benefit of any person controlling such Notice Holder)
from whom the person asserting such losses, claims or liabilities purchased the Registrable Securities, if a copy of the Prospectus or the Issuer Free Writing Prospectus (both as then amended or supplemented if the Company shall have furnished any
amendments or supplements thereto) was not sent or given by or on behalf of such Notice Holder to such person, if required by law so to have been delivered at or prior to the written confirmation of the sale of the Registrable Securities to such
person, and if the Prospectus or the Issuer Free Writing 

  

 17 

 
Prospectus (both as so amended or supplemented) would have cured the defect giving rise to such losses, claims, damages or liabilities, unless such failure
is the result of noncompliance by the Company with Section 2(b) hereof. 
 (b) Each Notice Holder agrees severally and not jointly to
indemnify and hold harmless the Company and its directors, its officers who sign any Shelf Registration Statement and each person, if any, who controls the Company (within the meaning of either Section 15 of the Securities Act or
Section 20 of the Exchange Act) or any other Notice Holder, to the same extent as the foregoing indemnity from the Company to such Notice Holder, but only with reference to information relating to such Notice Holder furnished to the Company in
writing by such Notice Holder expressly for use in such Shelf Registration Statement, Prospectus or Issuer Free Writing Prospectus or amendment or supplement thereto. In no event shall the liability of any Notice Holder hereunder be greater in
amount than the dollar amount of the proceeds received by such Notice Holder upon the sale of the Registrable Securities pursuant to the Shelf Registration Statement giving rise to such indemnification obligation. 
 (c) In case any proceeding (including any governmental investigation) shall be instituted involving any person in respect of which indemnity may be
sought pursuant to Section 6(a) or 6(b) hereof, such person (the “indemnified party”) shall promptly notify the person against whom such indemnity may be sought (the “indemnifying party”) in writing and the
indemnifying party, upon request of the indemnified party, shall retain counsel reasonably satisfactory to the indemnified party to represent the indemnified party and any others the indemnifying party may designate in such proceeding and shall pay
the reasonable fees and disbursements of such counsel related to such proceeding. In any such proceeding, any indemnified party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such
indemnified party unless (i) the indemnifying party and the indemnified party shall have mutually agreed to the retention of such counsel or (ii) the named parties to any such proceeding (including any impleaded parties) include both the
indemnifying party and the indemnified party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. It is understood that the indemnifying party shall not, in
respect of the legal expenses of any indemnified party in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all
such indemnified parties and that all such fees and expenses shall be reimbursed as they are incurred. Such firm shall be designated in writing by, in the case of parties indemnified pursuant to Section 6(a), the Holders of a majority (with
Holders of Securities deemed to be the Holders, for purposes of determining such majority, of the number of shares of Underlying Common Stock into which such Securities are or would be convertible as of the date on which such designation is made) of
the Registrable Securities covered by the Shelf 

  

 18 

 
Registration Statement held by Holders that are indemnified parties pursuant to Section 6(a) and, in the case of parties indemnified pursuant to
Section 6(b), the Company. The indemnifying party shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the
indemnifying party agrees to indemnify the indemnified party from and against any loss or liability by reason of such settlement or judgment. No indemnifying party shall, without the prior written consent of the indemnified party, effect any
settlement of any pending or threatened proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an unconditional
release of such indemnified party from all liability on claims that are the subject matter of such proceeding. 
 (d) To the extent that the
indemnification provided for in Section 6(a) or 6(b) is unavailable to an indemnified party or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then each indemnifying party under such paragraph, in lieu
of indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the
relative benefits received by the indemnifying party or parties on the one hand and the indemnified party or parties on the other hand or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying party or parties on the one hand and of the indemnified party or parties on the other hand in
connection with the statements or omissions that resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company shall be deemed to be equal to the total
net proceeds from the initial placement pursuant to the Purchase Agreement (before deducting expenses) of the Registrable Securities to which such losses, claims, damages or liabilities relate. The relative benefits received by any Holder shall be
deemed to be equal to the value of receiving registration rights under this Agreement for the Registrable Securities. The relative fault of the Holders on the one hand and the Company on the other hand shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Holders or by the Company, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission. The Holders’ respective obligations to contribute pursuant to this Section 6(d) are several in proportion to the respective number of
Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint. 
  

 19 

 The parties hereto agree that it would not be just and equitable if contribution pursuant to this
Section 6(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph. The amount paid or payable by an
indemnified party as a result of the losses, claims, damages or liabilities referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by
such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding this Section 6(d), no indemnifying party that is a selling Holder shall be required to contribute any amount in excess of the amount
by which the total price at which the Registrable Securities sold by it and distributed to the public were offered to the public exceeds the amount of any damages that such indemnifying party has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. 
 (e) The remedies provided for in this Section 6 are not exclusive and shall not limit
any rights or remedies which may otherwise be available to an indemnified party at law or in equity, hereunder, under the Purchase Agreement or otherwise. 
 (f) The indemnity and contribution provisions contained in this Section 6 shall remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation
made by or on behalf of any Holder, any person controlling any Holder or any affiliate of any Holder or by or on behalf of the Company, its officers or directors or any person controlling the Company and (iii) the sale of any Registrable
Securities by any Holder pursuant to the Shelf Registration Statement. 
 Section 7. Information Requirements. The Company
covenants that, if at any time before the end of the Effectiveness Period, the Company is not subject to the reporting requirements of the Exchange Act, it will cooperate with any Holder and take such further reasonable action as any Holder may
reasonably request in writing (including, without limitation, making such reasonable representations as any such Holder may reasonably request), all to the extent required from time to time to enable such Holder to sell Registrable Securities
without registration under the Securities Act within the limitation of the exemptions provided by Rule 144 and Rule 144A under the Securities Act and customarily taken in connection with sales pursuant to such exemptions. Upon the written request of
any Holder, the Company shall deliver to such Holder a written statement as to whether it has complied with such filing requirements, unless such a statement has been included in the Company’s most recent report filed pursuant to
Section 13 or Section 15(d) 

  

 20 

 
of Exchange Act. Notwithstanding the foregoing, nothing in this Section 7 shall be deemed to require the Company to register any of its securities
(other than the Common Stock) under the Exchange Act. 
 Section 8. Miscellaneous. 
 (a) No Conflicting Agreements. The Company is not, as of the date hereof, a party to, nor shall it, on or after the date of this Agreement, enter
into, any agreement with respect to its securities that conflicts with the rights granted to the Holders in this Agreement. The Company represents and warrants that the rights granted to the Holders hereunder do not in any way conflict with the
rights granted to the holders of the Company’s securities under any other agreements. 
 (b) Amendments and Waivers. The
provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the Company has obtained the written
consent of Holders of a majority of the then outstanding Underlying Common Stock constituting Registrable Securities (with Holders of Securities deemed to be the Holders, for purposes of this Section, of the number of outstanding shares of
Underlying Common Stock into which such Securities are or would be convertible as of the date on which such consent is requested). Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that
relates exclusively to the rights of Holders whose securities are being sold pursuant to a Shelf Registration Statement and that does not directly or indirectly affect the rights of other Holders may be given by Holders of at least a majority of the
Registrable Securities being sold by such Holders pursuant to such Shelf Registration Statement; provided that the provisions of this sentence may not be amended, modified or supplemented except in accordance with the provisions of the
immediately preceding sentence. Notwithstanding the foregoing sentence, this Agreement may be amended by written agreement signed by the Company and the Initial Purchaser, without the consent of the Holders of Registrable Securities, to cure any
ambiguity or to correct or supplement any provision contained herein that may be defective or inconsistent with any other provision contained herein, or to make such other provisions in regard to matters or questions arising under this Agreement
that shall not adversely affect the interests of the Holders of Registrable Securities. Each Holder of Registrable Securities outstanding at the time of any such amendment, modification, supplement, waiver or consent or thereafter shall be bound by
any such amendment, modification, supplement, waiver or consent effected pursuant to this Section 8(b) whether or not any notice, writing or marking indicating such amendment, modification, supplement, waiver or consent appears on the
Registrable Securities or is delivered to such Holder. 
  

 21 

 (c) Notices. All notices and other communications provided for or permitted hereunder shall be
made in writing by hand delivery, by fax, by courier or by first-class mail, return receipt requested, and shall be deemed given (i) when made, if made by hand delivery, (ii) upon confirmation, if made by telecopier, (iii) one
Business Day after being deposited with such courier, if made by overnight courier or (iv) on the date indicated on the notice of receipt, if made by first-class mail, to the parties as follows: 
 (i) if to a Holder, at the most current address given by such Holder to the Company in a Notice and Questionnaire or any amendment
thereto; 
 (ii) if to the Company, to: 
 Advanced Micro Devices, Inc. 
 One AMD Place 
 Sunnyvale, California 94088 
 Attention: Faina Medzonsky, Asst. General Counsel 
 Fax: (408) 774-7002 
 with a copy to: 
 Latham & Watkins LLP 
 140 Scott Drive 
 Menlo Park, California 94025 

					
	Attention:	 	Tad Freese	 	
		 	Keith Benson	 	

 Fax: (650) 463-2600 
 (iii) if to the Initial Purchaser, to: 
 Lehman Brothers Inc. 
 745 Seventh Avenue 
 New York, New York 10019 
 Attention: Syndicate Registration 
 Fax: (646) 834-8133 
  

 22 

 with copies to: 
 Davis Polk & Wardwell 
 1600 El Camino Real 
 Menlo Park, California 94025 
 Facsimile: (650) 752-2116 
 Attention: Alan Denenberg 
 and with a copy to: 
 Director of Litigation 
 Office of the General Counsel 
 Lehman Brothers Inc. 
 399 Park Avenue, 10th Floor 
 New York, New York 10022 
 Fax: (212) 520-0421 
 or to such other
address as such person may have furnished to the other persons identified in this Section 8(c) in writing in accordance herewith. 
 (d)
Approval of Holders. Whenever the consent or approval of Holders of a specified percentage of Registrable Securities is required hereunder, Registrable Securities held by the Company or its affiliates (as such term is defined in Rule 405
under the Securities Act) (other than the Initial Purchaser or subsequent Holders if such subsequent Holders are deemed to be such affiliates solely by reason of their holdings of such Registrable Securities) shall not be counted in determining
whether such consent or approval was given by the Holders of such required percentage. 
 (e) Successors and Assigns. Any person who
purchases any Registrable Securities from the Initial Purchaser shall be deemed, for purposes of this Agreement, to be an assignee of the Initial Purchaser. This Agreement shall inure to the benefit of and be binding upon the successors and assigns
of each of the parties and shall inure to the benefit of and be binding upon each Holder of any Registrable Securities, provided that nothing herein shall be deemed to permit any assignment, transfer or other disposition of Registrable
Securities in violation of the terms of the Indenture. If any transferee of any Holder shall acquire Registrable Securities, in any manner, whether by operation of law or otherwise, such Registrable Securities shall be held subject to all of the
terms of this Agreement, and by taking and holding such Registrable Securities, such person shall be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of this Agreement and such person shall be entitled
to receive the benefits hereof. 
 (f) Counterparts. This Agreement may be executed in any number of counterparts and by the parties
hereto in separate counterparts, each of which when so executed shall be deemed to be original and all of which taken together shall constitute one and the same agreement. 
  

 23 

 (g) Headings. The headings in this Agreement are for convenience of reference only and shall not
limit or otherwise affect the meaning hereof. 
 (h) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK. 
 (i) Severability. If any term, provision, covenant or restriction of this Agreement is held
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby, and the
parties hereto shall use their best efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction, it being intended that all of the rights
and privileges of the parties shall be enforceable to the fullest extent permitted by law. 
 (j) Entire Agreement. This Agreement is
intended by the parties as a final expression of their agreement and is intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein and the registration
rights granted by the Company with respect to the Registrable Securities. Except as provided in the Purchase Agreement, there are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein, with respect
to the registration rights granted by the Company with respect to the Registrable Securities. This Agreement supersedes all prior agreements and undertakings among the parties with respect to such registration rights. No party hereto shall have any
rights, duties or obligations other than those specifically set forth in this Agreement. In no event will such methods of distribution take the form of an underwritten offering of the Registrable Securities without the prior agreement of the
Company. 
 (k) Termination. This Agreement and the obligations of the parties hereunder shall terminate upon the end of the
Effectiveness Period, except for any liabilities or obligations under Section 4, 5 or 6 hereof and the obligations to make payments of and provide for additional interest under Section 2(f) hereof to the extent such additional interest
accrues prior to the end of the Effectiveness Period, each of which shall remain in effect in accordance with its terms. 
  

 24 

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

  

			
	ADVANCED MICRO DEVICES, INC.
		
	By:	 	 /s/ Robert J. Rivet

	Name:	 	Robert J. Rivet
	Title:	 	Executive Vice President
and Chief Financial Officer

 Confirmed and accepted, as of 
 the date first above written: 
  

			
	LEHMAN BROTHERS INC.
		
	 By:
	 	 /s/ William Bowmer

	 Name:
	 	William Bowmer
	 Title:
	 	Managing DirectorStock Purchase Agreement

 Exhibit 10.1 
 STOCK PURCHASE AGREEMENT 
 BY AND AMONG 
 THE SELLING STOCKHOLDERS, 
 PINNACLE
PHARMACEUTICALS, INC. 
 AND 
 NEW RIVER MANAGEMENT IV, LP 
 May 10, 2007 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 ARTICLE I DEFINITIONS
	  	1
			
	 Section 1.1.
	  	Accounts.	  	1
	 Section 1.2.
	  	Affiliate.	  	1
	 Section 1.3.
	  	Agreement.	  	2
	 Section 1.4.
	  	Assets.	  	2
	 Section 1.5.
	  	Balance Sheet.	  	2
	 Section 1.6.
	  	Books and Records.	  	2
	 Section 1.7.
	  	Buyer.	  	2
	 Section 1.8.
	  	Closing.	  	2
	 Section 1.9.
	  	Closing Date.	  	2
	 Section 1.10.
	  	Code.	  	2
	 Section 1.11.
	  	Common Stock Per Share Purchase Price.	  	3
	 Section 1.12.
	  	Company Common Stock.	  	3
	 Section 1.13.
	  	Company Preferred Stock.	  	3
	 Section 1.14.
	  	Company Stock Options.	  	3
	 Section 1.15.
	  	Consulting Agreement.	  	3
	 Section 1.16.
	  	Contracts.	  	3
	 Section 1.17.
	  	Effective Time.	  	3
	 Section 1.18.
	  	Employee Benefit Plan.	  	3
	 Section 1.19.
	  	Employment Agreement.	  	3
	 Section 1.20.
	  	Environmental Laws.	  	4
	 Section 1.21.
	  	ERISA.	  	4
	 Section 1.22.
	  	ERISA Affiliate.	  	4
	 Section 1.23.
	  	Financial Statements.	  	4
	 Section 1.24.
	  	GAAP.	  	4
	 Section 1.25.
	  	Governmental Authority.	  	4
	 Section 1.26.
	  	Hazardous Materials.	  	4
	 Section 1.27.
	  	Intellectual Property.	  	4
	 Section 1.28.
	  	Inventory.	  	5
	 Section 1.29.
	  	IRS.	  	5
	 Section 1.30.
	  	Key Employees.	  	5
	 Section 1.31.
	  	Knowledge of the Company.	  	5
	 Section 1.32.
	  	Law.	  	5
	 Section 1.33.
	  	Lease.	  	5
	 Section 1.34.
	  	Liens.	  	5
	 Section 1.35.
	  	Material Adverse Effect.	  	6
	 Section 1.36.
	  	Material Contracts.	  	6
	 Section 1.37.
	  	Opinion of Company Counsel.	  	6
	 Section 1.38.
	  	Pension Plans.	  	6
	 Section 1.39.
	  	Permits.	  	6
	 Section 1.40.
	  	Permitted Liens.	  	6

  

 (i) 

					
	 Section 1.41.
	  	Petroleum Products.	  	6
	 Section 1.42.
	  	Preferred Stock Per Share Purchase Price.	  	6
	 Section 1.43.
	  	Purchased Stock.	  	6
	 Section 1.44.
	  	Real Property.	  	6
	 Section 1.45.
	  	Required Consents.	  	7
	 Section 1.46.
	  	Tax and Taxes.	  	7
	 Section 1.47.
	  	Tax Return.	  	7
		
	 ARTICLE II PURCHASE AND SALE
	  	7
			
	 Section 2.1.
	  	Sale of Purchased Stock.	  	7
	 Section 2.2.
	  	Purchase of Purchased Stock.	  	7
	 Section 2.3.
	  	Payment for Company Stock Options.	  	8
	 Section 2.4.
	  	Closing Deliveries.	  	8
	 Section 2.5.
	  	Other Closing Payments.	  	8
		
	 ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	  	8
			
	 Section 3.1.
	  	Organization of the Company.	  	8
	 Section 3.2.
	  	Authorization; Enforceability.	  	9
	 Section 3.3.
	  	No Violation or Conflict by the Company.	  	9
	 Section 3.4.
	  	No Consents.	  	9
	 Section 3.5.
	  	Capitalization.	  	9
	 Section 3.6.
	  	Subsidiaries.	  	10
	 Section 3.7.
	  	Litigation.	  	10
	 Section 3.8.
	  	Title to, Sufficiency and Condition of Assets.	  	10
	 Section 3.9.
	  	Contracts.	  	11
	 Section 3.10.
	  	Accounts.	  	11
	 Section 3.11.
	  	Inventory.	  	11
	 Section 3.12.
	  	Financial Statements.	  	11
	 Section 3.13.
	  	Absence of Undisclosed Liabilities.	  	12
	 Section 3.14.
	  	Permits.	  	12
	 Section 3.15.
	  	Real Properties.	  	12
	 Section 3.16.
	  	Intellectual Property.	  	13
	 Section 3.17.
	  	Orders, Commitments and Returns.	  	14
	 Section 3.18.
	  	Books and Records.	  	15
	 Section 3.19.
	  	Affiliated Transactions.	  	15
	 Section 3.20.
	  	Insurance.	  	15
	 Section 3.21.
	  	Tax Matters.	  	16
	 Section 3.22.
	  	Compliance with Law.	  	17
	 Section 3.23.
	  	Environmental Conditions.	  	17
	 Section 3.24.
	  	Labor Matters.	  	19
	 Section 3.25.
	  	No Adverse Change.	  	20
	 Section 3.26.
	  	Employee Benefit Plans.	  	22
	 Section 3.27.
	  	Warranties and Service Payment Obligations.	  	23
	 Section 3.28.
	  	Bank Accounts.	  	23

  

 (ii) 

					
	 Section 3.29.
	  	Customers and Suppliers.	  	23
	 Section 3.30.
	  	Fees and Expenses of Brokers and Others.	  	24
	 Section 3.31.
	  	Disclosure.	  	24
		
	 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF SELLERS
	  	24
			
	 Section 4.1.
	  	Authorization; Enforceability.	  	24
	 Section 4.2.
	  	Title to Purchased Stock.	  	24
	 Section 4.3.
	  	Disclosure.	  	25
	 Section 4.4.
	  	No Consents.	  	25
		
	 ARTICLE V REPRESENTATIONS AND WARRANTIES OF THE BUYER
	  	25
			
	 Section 5.1.
	  	Organization of Buyer.	  	25
	 Section 5.2.
	  	Authorization; Enforceability.	  	25
	 Section 5.3.
	  	No Violation or Conflict.	  	26
	 Section 5.4.
	  	No Consents.	  	26
	 Section 5.5.
	  	Litigation.	  	26
	 Section 5.6.
	  	Fees and Expenses of Brokers and Others.	  	26
		
	 ARTICLE VI [RESERVED]
	  	26
		
	 ARTICLE VII CONDITIONS PRECEDENT TO THE OBLIGATIONS OF THE BUYER
	  	27
			
	 Section 7.1.
	  	Compliance with Agreement.	  	27
	 Section 7.2.
	  	Proceedings, Instruments and Due Diligence Satisfactory.	  	27
	 Section 7.3.
	  	No Litigation.	  	27
	 Section 7.4.
	  	Representations and Warranties.	  	27
	 Section 7.5.
	  	Material Damage to Assets; Material Adverse Effect.	  	27
	 Section 7.6.
	  	Employment Agreements with Key Employees.	  	27
	 Section 7.7.
	  	Consulting Agreement.	  	28
	 Section 7.8.
	  	Deliveries at Closing.	  	28
	 Section 7.9.
	  	Consents from Holders of Company Stock Options.	  	28
		
	 ARTICLE VIII CONDITIONS PRECEDENT TO THE OBLIGATIONS OF SELLERS AND THE COMPANY
	  	29
			
	 Section 8.1.
	  	Compliance with Agreement.	  	29
	 Section 8.2.
	  	Proceedings and Instruments Satisfactory.	  	29
	 Section 8.3.
	  	No Litigation.	  	29
	 Section 8.4.
	  	Representations and Warranties.	  	29
	 Section 8.5.
	  	Deliveries at Closing.	  	29

  

 (iii) 

					
		
	 ARTICLE IX POST-CLOSING COVENANTS
	  	30
			
	 Section 9.1.
	  	Additional Instruments.	  	30
	 Section 9.2.
	  	Access to Books and Records.	  	30
	 Section 9.3.
	  	Certain Tax Matters.	  	30
		
	 ARTICLE X [RESERVED]
	  	31
		
	 ARTICLE XI MISCELLANEOUS
	  	31
			
	 Section 11.1.
	  	Entire Agreement; Amendment; Waiver.	  	31
	 Section 11.2.
	  	Expenses.	  	31
	 Section 11.3.
	  	Governing Law; Consent to Jurisdiction.	  	31
	 Section 11.4.
	  	Further Assurances.	  	32
	 Section 11.5.
	  	Termination and Survival of Representations and Warranties.	  	32
	 Section 11.6.
	  	Assignment.	  	32
	 Section 11.7.
	  	Notices.	  	32
	 Section 11.8.
	  	Counterparts.	  	33
	 Section 11.9.
	  	Interpretation.	  	33
	 Section 11.10.
	  	Severability.	  	33
	 Section 11.11.
	  	No Third Party Rights.	  	34
	 Section 11.12.
	  	Specific Performance.	  	34
	 Section 11.13.
	  	Counsel to Company.	  	34

  

 (iv) 

			
	SCHEDULES
		
	 Schedule 1.40
	    	Permitted Liens
	 Schedule 1.45
	    	Required Consents
	 Schedule 2.2
	    	Sellers’ Accounts
	 Schedule 2.3
	    	Option Holders’ Accounts
	 Schedule 2.5
	    	Closing Amounts Payable
	 Schedule 3.12
	    	Financial Statements
	 Schedule 3.16
	    	Intellectual Property
	
	EXHIBITS
		
	 Exhibit A
	    	Selling Stockholders
	 Exhibit 1.15
	    	Consulting Agreement
	 Exhibit 1.19
	    	Employment Agreement
	 Exhibit 1.37
	    	Opinion of Company Counsel

  

 (v) 

 STOCK PURCHASE AGREEMENT 
 This STOCK PURCHASE AGREEMENT (the “Agreement”), made as of May     , 2007, by and among Pinnacle
Pharmaceuticals, Inc., a Delaware corporation (the “Company”), the selling stockholders listed on Exhibit A hereto (each a “Seller” and together, “Sellers”), and New River Management IV, LP, a Virginia
partnership (“Buyer”), recites and provides as follows: 
 RECITALS 
 WHEREAS, Sellers collectively own all of the issued and outstanding shares of capital stock of the Company; and 
 WHEREAS, Sellers desire to sell, and Buyer desires to purchase, all of the issued and outstanding shares of capital stock of the Company.

 NOW, THEREFORE, in consideration of the promises and agreements set forth in this Agreement and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 ARTICLE I

 DEFINITIONS 
 When
used in this Agreement, the following terms shall have the meanings specified: 
 Section 1.1. Accounts. 
 “Accounts” shall mean all accounts receivable, notes receivable and associated rights as of the Effective Time (including, without limitation,
amounts due from vendors, all security deposits, letters of credit and security interests in collateral) arising from the sale of goods and services in the ordinary course of the business of the Company, together with any notes or other amounts due
to the Company from its officers, employees or Affiliates. 
 Section 1.2. Affiliate. 
 “Affiliate” shall mean, as applied to any person, (a) any other person directly or indirectly controlling, controlled by or under common
control with, that person, (b) any other person that owns or controls ten percent (10%) or more of any class of equity securities of that person or any of its Affiliates or (c) as to a corporation, each director and officer thereof,
and as to a partnership, each general partner thereof, and as to a limited liability company, each managing member or similarly authorized person thereof (including officers), and as to any other entity, each person exercising similar authority to
those of a director or officer of a corporation. For the purposes of this definition, “control” (including with correlative meanings, the terms “controlling,” “controlled by,” and “under common control with”)
as applied to any person, 

 
means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of that person, whether through
ownership of voting securities or by contract or otherwise. 
 Section 1.3. Agreement. 
 “Agreement” shall mean this Stock Purchase Agreement, together with the schedules and exhibits attached hereto, as the same may be amended from
time to time in accordance with the terms hereof. 
 Section 1.4. Assets. 
 “Assets” shall mean, collectively, all of the tangible and intangible assets owned by the Company as of the Effective Time. 
 Section 1.5. Balance Sheet. 
 “Balance Sheet” shall mean the balance sheet of the Company as of December 31, 2006 set forth in the Financial Statements. 
 Section 1.6. Books and Records. 
 “Books and Records” shall mean original or true and complete copies of all
of the books, records, files, data and information of the Company as of the Effective Time (including, without limitation, customer lists, financial and accounting records, purchase orders and invoices, sales orders and sales order log books, credit
and collection records, correspondence and miscellaneous records with respect to customers and supply sources and all other general correspondence). 
 Section 1.7. Buyer. 
 “Buyer” shall mean New River Management IV, LP, a Virginia
partnership. 
 Section 1.8. Closing. 
 “Closing” shall mean the meeting of the closing of the transactions contemplated hereby to be held at 10:00 a.m., Richmond, Virginia time, on the Closing Date, at the offices of Troutman Sanders LLP, 1001
Haxall Point, Richmond, Virginia 23219, or at such other time and place as the parties may mutually agree in writing. 
 Section 1.9.
Closing Date. 
 “Closing Date” shall mean May     , 2007, or such other date as the parties may
mutually agree in writing. 
 Section 1.10. Code. 
 “Code” shall mean the Internal Revenue Code of 1986, as amended. 
  

 2 

 Section 1.11. Common Stock Per Share Purchase Price. 
 “Common Stock Per Share Purchase Price” shall mean $3.75. 
 Section 1.12. Company Common Stock. 
 “Company Common Stock” shall mean the
Company’s common stock, par value $0.001 per share. 
 Section 1.13. Company Preferred Stock. 
 “Company Preferred Stock” shall mean the Company’s Series A Preferred Stock, par value $0.001 per share. 
 Section 1.14. Company Stock Options. 
 “Company Stock Options” shall mean options to purchase Company Common Stock outstanding as of the date hereof. 
 Section 1.15. Consulting Agreement. 
 “Consulting Agreement” shall mean a consulting agreement between the
Company and Dr. Sidney Hecht in substantially the form of Exhibit 1.15 attached hereto 
 Section 1.16.
Contracts. 
 “Contracts” shall mean those contracts, agreements, blanket and other purchase orders, leases of personal
property (such as computers and copiers), sales orders, license agreements, relationships and commitments and invoices related thereto, to which the Company is a party or by which the Company is bound (whether written or oral). 
 Section 1.17. Effective Time. 
 “Effective Time” shall mean 11:59 p.m., Richmond, Virginia time on the date immediately preceding the Closing Date. 
 Section 1.18. Employee Benefit Plan. 
 “Employee Benefit Plan” shall mean an “employee benefit plan”
as defined in Section 3(3) of ERISA, each Pension Plan and any other plans, programs, agreements, arrangements or policies that provide compensation or other benefits, whether or not subject to ERISA, to any present or former employee,
non-employee director or service provider of the Company or an ERISA Affiliate, or any dependent or beneficiary thereof. 
 Section 1.19. Employment Agreement. 
 “Employment Agreement” shall mean an employment agreement between the
Company and each of the Key Employees in substantially the form of Exhibit 1.19 attached hereto 
  

 3 

 Section 1.20. Environmental Laws. 
 “Environmental Laws” shall have the meaning set forth in Section 3.23(a) hereto. 
 Section 1.21. ERISA. 
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended. 
 Section 1.22. ERISA
Affiliate. 
 “ERISA Affiliate” shall mean each entity that is a member of a controlled group or affiliated service group of
which the Company is a member or that is treated as a single employer with the Company under Section 414(b), 414(c), 414(m) or 414(o) of the Code or ERISA. 
 Section 1.23. Financial Statements. 
 “Financial Statements” shall mean the balance
sheets of the Company as of December 31, 2004, 2005, and 2006 and the statements of income and retained earnings and statements of cash flows of the Company for the years ended December 31, 2004, 2005, and 2006 set forth in
Schedule 3.12 hereto. 
 Section 1.24. GAAP. 
 “GAAP” shall mean generally accepted accounting principles of the United States as in effect at the time of the preparation of the subject
financial statement consistently applied. 
 Section 1.25. Governmental Authority. 
 “Governmental Authority” shall have the meaning set forth in Section 3.23(a) hereto. 
 Section 1.26. Hazardous Materials. 
 “Hazardous Materials” shall have the meaning set forth in Section 3.23(a) hereto. 
 Section 1.27.
Intellectual Property. 
 “Intellectual Property” shall mean all intellectual property owned or licenses by the Company as of
the Effective Time, including, without limitation, the following: (a) all registered and unregistered domestic and foreign inventions, patents and patent applications, (b) all registered and unregistered trademarks, service marks,
trademark registration and applications, trade dress, logos, trade names and brand names, and any combination of such names, including all goodwill associated therewith and all applications, registrations and renewals in connection therewith,
(c) all copyrightable works, all copyrights and all applications, registrations and renewals in connection therewith, (d) all trade secrets and confidential business information (including ideas, research and development, know-how,
compositions, designs, formulae, technology, processes, drawings, specifications, customer and supplier lists, pricing and cost information and business and market plans and proposals), (e) all computer programs and software and source code
(including hard copy and soft copy as well as all data and related 

  

 4 

 
documentation), (f) all websites and related content (including, without limitation, underlying software, URL’s and domain names), (g) all
financial models, (h) all customer lists, current and past and (i) all other intellectual property rights owned, used, filed by, licensed or possessed by the Company. 
 Section 1.28. Inventory. 
 “Inventory” shall mean all of the Company’s inventories of raw materials, work in process, finished goods and supplies held for use or sale by the Company as of the Effective Time. 
 Section 1.29. IRS. 
 “IRS” shall mean the Internal Revenue Service of the United States. 
 Section 1.30. Key Employees.

 “Key Employees” shall mean Nour Eddine Fahmi, Ph.D, Jing-Zhen Deng, Ph.D and Larisa Dedkova, Ph.D. 
 Section 1.31. Knowledge of the Company. 
 “Knowledge of the Company” shall mean (a) the actual knowledge, after reasonable inquiry, of Sidney Hecht, Ph.D, and (b) the actual knowledge, without any duty of inquiry, of each of the Key Employees. 
 Section 1.32. Law. 
 “Law” shall mean any federal, state, local or other law or treaty or governmental requirement of any kind, and the rules, regulations and orders promulgated thereunder, including, without limitation, the U.S. Federal Food, Drug
and Cosmetic Act of 1938, as amended, the Public Health Service Act, any related law and any regulations promulgated thereunder by the U.S. Food and Drug Administration. 
 Section 1.33. Lease. 
 “Lease” shall mean the lease agreement by and between the
University of Virginia Foundation and the Company, dated May 3, 2004, pursuant to which the Company leases the Real Property. 
 Section 1.34. Liens. 
 “Liens” shall mean any lien, mortgage, security interest, Tax lien, attachment, levy,
charge, claim, restriction, imposition, pledge, encumbrance, conditional sale or title retention arrangement, or any other interest in property or assets (or the income or profits therefrom) designed to secure the repayment of indebtedness, whether
consensual or nonconsensual and whether arising by agreement or under any Law or otherwise. 
  

 5 

 Section 1.35. Material Adverse Effect. 
 “Material Adverse Effect” shall mean any event, change or effect that has a material adverse effect on (a) the properties, business,
results of operations, or condition (financial or otherwise) of the Company or (b) the ability of Sellers to consummate the transactions contemplated hereby. 
 Section 1.36. Material Contracts. 
 “Material Contracts” shall have the meaning set
forth in Section 3.9 hereto. 
 Section 1.37. Opinion of Company Counsel. 
 “Opinion of Company Counsel” shall mean the opinion of LeClair Ryan, A Professional Corporation, counsel to the Company, substantially in the
form of Exhibit 1.37 attached hereto. 
 Section 1.38. Pension Plans. 
 “Pension Plans” mean each “employee pension benefit plan” (as defined in Section 3(2) of ERISA) sponsored, maintained or
contributed to, or required to be maintained or contributed to by the Company. 
 Section 1.39. Permits. 
 “Permits” shall mean governmental approvals, franchises, authorizations, registrations, permits and licenses. 
 Section 1.40. Permitted Liens. 
 “Permitted Liens” shall mean Liens for Taxes for the current tax year that are not yet due and payable and those Liens affecting the Assets that are specifically listed on Schedule 1.40 hereto. 
 Section 1.41. Petroleum Products. 
 “Petroleum Products” shall have the meaning set forth in Section 3.23(a) hereto. 
 Section 1.42.
Preferred Stock Per Share Purchase Price. 
 “Preferred Stock Per Share Purchase Price” shall mean $1.00. 
 Section 1.43. Purchased Stock. 
 “Purchased Stock” shall mean all of the issued and outstanding shares of capital stock of the Company, consisting of all of the issued and outstanding shares of Company Common Stock (including any Company Common Stock issuable
upon the exercise of any Company Stock Options or upon conversion of any shares of Company Preferred Stock) and all of the issued and outstanding shares of Company Preferred Stock. 
  

 6 

 Section 1.44. Real Property. 
 “Real Property” shall mean the real property leased or owned by the Company as of the Effective Time, together with all improvements and
fixtures thereon and all easements, rights-of-way and other appurtenants thereto. 
 Section 1.45. Required Consents. 

“Required Consents” shall mean the consent to the assignment of the Lease by the University of Virginia Foundation and those consents
required from parties to the Contracts and Permits that are necessary or required in order to give effect to the transactions contemplated herein, all of which are specifically identified on Schedule 1.45 attached hereto. 
 Section 1.46. Tax and Taxes. 
 “Tax” or “Taxes” shall mean any federal, state, county, local or foreign taxes, charges, levies, imposts, duties, other assessments or similar charges of any kind whatsoever, including interest, penalties and additions
imposed thereon or with respect thereto. 
 Section 1.47. Tax Return. 
 “Tax Return” shall mean any report, return, information return or other information required to be supplied to a taxing authority in connection
with Taxes, including any return of an affiliated or combined unitary group. 
 ARTICLE II 
 PURCHASE AND SALE 
 Section 2.1. Sale of Purchased Stock. 
 At the Closing, upon the terms and subject to the conditions of this
Agreement, and in consideration of the payments to be made by Buyer to Sellers pursuant to Section 2.2 hereof, each Seller shall sell, transfer, convey and deliver to Buyer all of the shares of Purchased Stock owned by such Seller, and
Buyer shall purchase such shares of Purchased Stock from such Seller, free and clear of all Liens. Each Seller shall deliver, or cause to be delivered, to Buyer one or more stock certificates representing the Purchased Stock owned by such Seller,
duly endorsed for transfer or accompanied by duly executed stock powers. 
 Section 2.2. Purchase of Purchased Stock. 

At the Closing, Buyer shall purchase from each Seller, by wire transfer of immediately available funds to the account designated by such Seller on
Schedule 2.2 attached hereto, the Purchased Stock held by such Seller as follows: 
 (a) Payment for Company Common Stock.
Buyer shall pay to each Seller the Common Stock Per Share Purchase Price for each share of Company Common Stock held by such Seller; 
  

 7 

 (b) Payment for Company Preferred Stock. Buyer shall pay to each Seller the Preferred Stock Per
Share Purchase Price for each share of Company Preferred Stock held by such Seller; and 
 Section 2.3. Payment for Company Stock
Options. 
 All Company Stock Options shall become exercisable and fully vested immediately prior to Closing and cease to represent, as of
Closing, a right to acquire shares of Company Common Stock, and at the Closing Buyer shall pay to the holder of such Company Stock Options to the account designated by such holder on Schedule 2.3, in settlement and cancellation thereof, a
lump sum cash payment of an amount equal to (i) the excess, if any, of (A) the Common Stock Per Share Purchase Price over (B) the exercise price per share of Company Common Stock subject to such Company Stock Option, multiplied by
(ii) the number of shares of Company Common Stock for which such Company Stock Option shall not theretofore have been exercised (with Buyer being entitled to withhold from payments made to holders of Company Stock Options pursuant to this
Section 2.3 any applicable tax withholdings, which the Buyer shall cause the Company to pay promptly after the Closing to the appropriate taxing authorities, and such withheld amounts shall be treated for all purposes of this Agreement
as having been paid to the holder of the Company Stock Options in respect of which such deduction and withholding was made by Buyer). 
 Section 2.4. Closing Deliveries. 
 At the Closing, Sellers and the Company shall deliver, or cause to be delivered, to
Buyer those deliveries required to be made at or prior to the Closing pursuant to Section 7.8 hereof, and Buyer shall deliver, or cause to be delivered, to Sellers and the Company those deliveries required to be made at or prior to the
Closing pursuant to Section 8.5 hereof. 
 Section 2.5. Other Closing Payments. 
 At the Closing, Buyer shall pay in cash on behalf of the Company the accounts payable of the Company set forth on Schedule 2.5 hereto. 

ARTICLE III 
 REPRESENTATIONS
AND WARRANTIES OF THE COMPANY 
 As an inducement to Buyer to enter into this Agreement and to consummate the transactions
contemplated hereby, the Company hereby represents and warrants to Buyer that, except as set forth in the Disclosure Schedule attached hereto: 
 Section 3.1. Organization of the Company. 
 (a) The Company is a corporation duly organized, validly existing and in
good standing under the laws of the State of Delaware. The Company has full corporate power and authority to carry on its business as it is currently being conducted and to own, operate and hold under lease its assets and properties as, and in the
places where, such assets and properties are currently owned, operated or held. The Company is duly qualified or licensed to transact business as a foreign corporation, and is in good standing, in each jurisdiction in which the conduct or nature of
its business or the ownership, leasing or holding of its properties makes such qualification necessary. 
  

 8 

 (b) The Company has full corporate power and authority to enter into this Agreement and has taken all
corporate action necessary in order to enter into and deliver this Agreement and to consummate the transactions contemplated hereby. 
 Section 3.2. Authorization; Enforceability. 
 This Agreement is, and the other documents and instruments required hereby
to which the Company is a party will be, when executed and delivered by the Company, the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with their respective terms. The Company has the absolute and
unrestricted right, power, authority and capacity to execute and deliver, and to perform its obligations under, this Agreement and the other documents and instruments required hereby to which the Company is a party. 
 Section 3.3. No Violation or Conflict by the Company. 
 The execution, delivery and performance by the Company of this Agreement and all of the other documents and instruments required hereby to which the Company is a party do not and will not (a) conflict with or
violate (i) the charter or bylaws of the Company, (ii) any Law, rule, regulation, judgment, order or decree binding on the Company or any of its assets (iii) any Contract or other contract, note, bond, indenture, lease, agreement or
arrangement to which the Company is a party or by which the Company or any of its assets are bound, or (b) give any party to any Contract or other contract, note, bond, indenture, lease, agreement or arrangement to which the Company is a party
or by which the Company is bound any right of termination, cancellation, acceleration or modification thereunder. 
 Section 3.4. No
Consents. 
 Except for the Required Consents, all of which shall have been obtained prior to the Closing, no consent of any other person,
and no notice to, filing or registration with, or consent, license, permit, order, approval or authorization of, any Governmental Authority is necessary or is required to be made or obtained by the Company in connection with the execution and
delivery of this Agreement or the consummation of the transactions contemplated hereby. 
 Section 3.5. Capitalization.

 The authorized capital of the Company consists of 1,500,000 shares of Company Common Stock and 500,000 shares of Company Preferred Stock.
The Purchased Stock represents all of the issued and outstanding capital stock of the Company and has been duly and 

  

 9 

 
validly issued and is fully paid and non-assessable. None of the Purchased Stock was issued in violation of any preemptive, subscription or similar rights.
All of the Purchased Stock was offered and sold in compliance with all applicable federal and state securities laws and regulations. There are no options, warrants or other rights to subscribe for or purchase any capital stock of the Company or
securities convertible into or exchangeable for, or which otherwise confer on the holder any right to acquire, any capital stock of the Company, nor is the Company committed to issue any such option, warrant or other right, other than the Company
Stock Options included in the Purchased Stock. There are no outstanding stock appreciation, phantom stock, profit participation or similar rights with respect to the capital stock of the Company. There are no shares of capital stock reserved for
issuance for any purpose. 
 Section 3.6. Subsidiaries. 
 The Company does not own any capital stock of any other corporation or any interest in any partnership, joint venture, limited liability company or other
business, nor does the Company have the right or obligation to acquire any ownership interest in any corporation, partnership, joint venture, limited liability company or other business. 
 Section 3.7. Litigation. 
 There
is no litigation, arbitration, proceeding, governmental investigation, citation or action of any kind pending or, to the Knowledge of the Company, overtly proposed or threatened, by, before, or involving any Governmental Authority or arbitration
tribunal (a) against the Company, (b) relating to the business, Assets, properties or products of the Company or (c) that seeks restraint, prohibition, damages or other relief in connection with this Agreement or the consummation of
the transactions contemplated hereby. There is no unresolved product liability, product warranty or worker’s compensation claim that has been asserted or filed or, to the Knowledge of the Company, overtly threatened against the Company by,
before, or involving any Governmental Authority or arbitration tribunal. To the Knowledge of the Company, the Company is not a party or subject to or in default under any judgment, order, injunction or decree of any Governmental Authority or
arbitration tribunal applicable to it or any of its properties, Assets, operations or business. 
 Section 3.8. Title to, Sufficiency
and Condition of Assets. 
 The Company owns good, valid and marketable title to all of the Assets (whether tangible or intangible), free
and clear of all Liens other than Permitted Liens. The Assets and Contracts include all tangible and intangible assets, contracts and rights necessary or desirable for the operation by Buyer of the business of the Company immediately after the
Effective Time in accordance with the Company’s past practices. The tangible Assets are in good operating condition and repair, subject to ordinary wear and tear, are substantially fit for use in accordance with the Company’s past
practices and are adequate for which they are currently used or held for use. There are no existing or proposed agreements, options, commitments or rights with, of or to any person or Governmental Authority to acquire or to condemn, expropriate or
otherwise take without payment any of the assets of the Company or any interest therein. 
  

 10 

 Section 3.9. Contracts. 
 The Company has provided to Buyer (or a current or former Affiliate of Buyer) true and complete copies of all written Contracts (including all amendments
or modifications thereto) that require the payment, or involve the receipt, of more than $10,000 during any 12-month period or have a term in excess of one year (the “Material Contracts”) or that include a covenant not to compete or other
covenant restricting the business of the Company, that relate to a license, agreement or understanding with respect to the Intellectual Property, or that involve any Seller or any Affiliate of any Seller or any officer, employee or director of the
Company and, in the case of oral Material Contracts, true and complete written summaries of the terms thereof. Each Material Contract is in full force and effect and is enforceable in accordance with its terms. The Company has performed each
material term, covenant and condition of each Material Contract that is to be performed by it at or before the date hereof, or such material term, covenant or condition will be performed at or before the Closing (including, without limitation,
pursuant to Section 2.5 hereof). No event has occurred or circumstances exist that could, with the passage of time or compliance with any applicable notice requirements or both, constitute a default of, result in a material violation or
breach of, or give any right to accelerate, modify, cancel or terminate any Material Contract by the Company or, to the Knowledge of the Company, any other party under any such Material Contract. To the Knowledge of the Company, no party to any
Material Contract intends to exercise any right of cancellation, termination, acceleration or modification under any such Material Contract. The Company has not made any prior assignment of any Material Contract or any of its rights or obligations
thereunder. 
 Section 3.10. Accounts. 
 All Accounts reflected on the Balance Sheet represented as of the date of the Balance Sheet valid obligations arising from sales actually made or services actually performed by the Company in the ordinary course of
business or valid claims as to which full performance has been rendered by the Company. Except to the extent paid prior to the Closing Date, such Accounts are, or will be as of the Closing Date, current and collectible. There is no contest, claim,
defense or right of setoff, other than returns in the ordinary course of business of the Company, under any Contract with any account debtor of an Account relating to the amount or validity of such Account. Further, no counterclaims, defenses or
offsetting claims with respect to the Accounts have been asserted or, to the Knowledge of the Company, threatened. 
 Section 3.11.
Inventory. 
 All Inventory reflected on the Balance Sheet is of merchantable quality and quantity usable or salable in the ordinary
course of business, except for obsolete and slow-moving items and items of below-standard quality, all of which have been written off or written down to net realizable value in the Books and Records. The quantities of each item of Inventory
reflected on the Balance Sheet (whether raw materials, work-in-process or finished goods) are not excessive but are reasonable in the present circumstances of the Company. 
 Section 3.12. Financial Statements. 
 The Financial Statements set forth in Schedule 3.12 present fairly in all material respects the results of operations, the financial position and cash flows of the Company as of the respective dates thereof, and for the periods
indicated and were prepared in accordance with GAAP consistently applied (except as described in the notes thereto, in the case of audited financial statements, or for the absence of notes and normal recurring year-end adjustments, in the case of
unaudited financial statements). 
  

 11 

 Section 3.13. Absence of Undisclosed Liabilities. 
 To the Knowledge of the Company, except for any liability or obligation arising under any Material Contract, the Company has no liabilities or obligations
(whether known or unknown, absolute or contingent, accrued or unaccrued, asserted or unasserted, or otherwise due or to become due) of any nature other than liabilities or obligations (a) which were accrued or reserved against on the Financial
Statements or the Balance Sheet, (b) that are current liabilities incurred in the ordinary course of business consistent with past practices since the date of the Balance Sheet or (c) that have been or will have been discharged or paid in
full prior to the Effective Time. 
 Section 3.14. Permits. 
 The Company possesses all Permits necessary or required for the conduct of its business, and all such Permits are in full force and effect and are being
complied with in all material respects. The Company has not received written notice that the Company is in violation of any Permit. The Company has taken all necessary actions to maintain such Permits. No loss or expiration of any such Permit is
pending, or to the Knowledge of the Company, threatened, other than expiration in accordance with the terms thereof. 
 Section 3.15.
Real Properties. 
 The Company does not own any real property. The Real Property subject to the Lease and the Real Property subleased
by the Company until December 31, 2007 from Spinner Technologies, Inc., an Affiliate of the University of Virginia Patent Foundation, constitute all real property leased by the Company. The Company has delivered to Buyer (or a current or former
Affiliate of Buyer) true and correct copies of all certificates of occupancy and building permits in the possession of the Company for the improvements located on the Real Property. With respect to each parcel of Real Property, to the Knowledge of
the Company: 
 (a) the Company has good and valid title to the leasehold estates in all leased Real Property, in each case free and clear of
all mortgages, Liens, leases, assignments, subleases, easements, covenants, rights-of-way and other similar restrictions of any nature whatsoever, except easements, covenants, rights-of-way and other similar restrictions of record; any conditions
that may be shown by a current, accurate survey or physical inspection of any leased Real Property made prior to Closing; and (i) zoning, building and other similar restrictions, and (ii) mortgages, Liens, easements, covenants,
rights-of-way and other similar restrictions that have been placed by any developer, landlord or other third party on property over which the Company has easement rights or on any leased Real Property and subordination or similar agreements relating
thereto. 
  

 12 

 (b) there are no pending or, to the Knowledge of the Company, threatened condemnation or expropriation
proceedings, lawsuits or administrative actions relating to the parcel or other legal matters affecting adversely the current use, occupancy or value thereof; 
 (c) all facilities have received all approvals of Governmental Authorities (including licenses and Permits) required in connection with the ownership, occupation or operation thereof and in all material respects have
been operated and maintained in accordance with applicable Law; 
 (d) all buildings located on such parcel (including the foundation,
load-bearing walls, roof and roof membrane, if applicable) are free from material patent structural defects, and the plumbing, mechanical, electrical, heating and ventilation systems installed within such buildings are in a good state of repair and
are in good working order; 
 (e) there are no material improvements necessary to use any leased Real Property to conduct the business of the
Company as it is currently being conducted; 
 (f) there are no leases, subleases, licenses, concessions or other agreements, written or
oral, granting to any party or parties (other than the Company) the right of use or occupancy of any portion of the parcel; 
 (g) there are
no outstanding options or rights of first refusal to purchase the parcel, or any portion thereof or interest therein; 
 (h) there are no
parties in possession of the parcel, other than tenants under any leases or subleases, who are in possession of space to which they are entitled; 
 (i) all facilities located on the parcel are supplied with utilities and other services necessary for the operation of such facilities, including gas, electricity, water, telephone, sanitary sewer and storm sewer, all of which services are
adequate in accordance with all applicable Laws; 
 (j) each parcel abuts on and has direct vehicular access to a public road, or has access
to a public road; and 
 (k) there are no material improvements necessary to use each parcel for its intended purpose as of the Effective
Time. 
 Section 3.16. Intellectual Property. 
 (a) The Company is the sole owner of all right, title and interest in and to the Intellectual Property owned by the Company and has all necessary licenses, rights, permissions and authorizations to use the
Intellectual Property licensed by the Company, including, without limitation, all required computer software licenses free and clear of all Liens. The Intellectual 

  

 13 

 
Property constitutes all non-tangible property necessary for the operation of the business of the Company as presently conducted. To the Knowledge of the
Company, each item of Intellectual Property has been used by the Company with the authorization of every other claimant thereto and the execution, delivery and performance of this Agreement will not impair such use by the Company after the Effective
Time. 
 (b) For a period of three years prior to the date hereof, the Company has not interfered with, infringed upon, misappropriated or
otherwise come into conflict with any intellectual property rights of any third party, and the Company has not received any charge, complaint, claim, demand or notice alleging any such interference, infringement, misappropriation or violation
(including any claim that the Company must license or refrain from using any intellectual property rights of any third party). To the Knowledge of the Company, no third party has interfered with, infringed upon, misappropriated or otherwise come
into conflict with any Intellectual Property rights of the Company. There are no pending claims, including but not limited to litigation, arbitration, opposition proceedings, petitions to cancel, interferences, administrative proceedings, demand
letters, cease and desist letters, or other demands, challenges, or disputes of any nature challenging, impacting, or involving the Intellectual Property, or the Company’s rights therein. A description of any such claims asserted, filed,
settled or resolved in the last three years is set forth on Schedule 3.16. Such identifications shall include descriptions of the parties involved, the Intellectual Property involved, the nature of the claims, the resolution of the
claims, the date of resolution, and true and correct copies of any demand letters, cease and desist letters, complaints, notices of opposition, petitions to cancel, decisions or orders, or settlement agreements. 
 (c) Schedule 3.16 identifies each patent, trademark, copyright or other registration that has been issued to the Company with respect to any
of the Intellectual Property, identifies each pending application or application for registration that the Company has made with respect to any of the Intellectual Property and identifies each license, agreement or other permission that the Company
has granted to any third party with respect to any of the Intellectual Property (together with any exceptions thereto). The Company has delivered to Buyer (or a current or former Affiliate of Buyer) correct and complete copies of all such patents,
registrations, applications, licenses, agreements and permissions (as amended to date) and has made available to Buyer correct and complete copies of all other written documentation evidencing ownership and prosecution (if applicable) of each such
item. Schedule 3.16 also identifies each trade name or unregistered trademark used by the Company. With respect to each item of Intellectual Property required to be identified therein: (i) to the Knowledge of the Company, the item
is not subject to any outstanding injunction, judgment, order, decree, ruling or charge; (ii) no action, suit, proceeding, hearing, charge, complaint, claim or demand is pending or, to the Knowledge of the Company, is threatened which
challenges the legality, validity, enforceability, use or ownership of the item; and (iii) the Company has not licensed or permitted any third party to use any such item. 
 Section 3.17. Orders, Commitments and Returns. 
 All accepted and unfulfilled orders for the sale of products and the performance of services entered into by the Company and all outstanding contracts or commitments for the 

  

 14 

 
purchase of supplies, materials and services used or to be used in the business of the Company were made in bona fide transactions in the ordinary
course of business. There are no customer or distributor claims against the Company to return products by reason of alleged overshipments or adulterated, misbranded, damaged or otherwise defective products or otherwise, and no products of the
Company are in the hands of customers or distributors under a consignment arrangement or other understanding that such products will be returnable. 
 Section 3.18. Books and Records. 
 The Books and Records, all of which have been made available to Buyer, are complete
and correct in all material respects. The minute books of the Company contain accurate and complete records of all meetings held of, and corporate action taken by, the stockholders, the Board of Directors and committees of the Board of Directors of
the Company, and no meeting of any such stockholders, Board of Directors or committee has been held for which minutes have not been prepared and are not contained in such minute books. At the Closing, all such Books and Records will be in the
possession of the Company. 
 Section 3.19. Affiliated Transactions. 
 The Company has not purchased, licensed or leased or otherwise acquired any property or assets or obtained any services from, or sold, licensed, leased or
otherwise disposed of any property or assets or provided any services to, any employee (except with respect to remuneration for services as an employee), stockholder, officer or director, or any Affiliate of any of the foregoing. The Company does
not owe any contractual obligation or commitment to any of the foregoing (other than compensation for current services not yet due and payable and reimbursement of expenses arising in the ordinary course of business), and none of the foregoing owes
any amount or has any contractual obligation to the Company. 
 Section 3.20. Insurance. 
 The Company has made available to Buyer (or a current or former Affiliate of Buyer) copies of each insurance policy (including policies providing
property, casualty, liability and workers’ compensation coverage and bond and surety arrangements) that is in force as of the date hereof and as to which the Company is a party, a named insured or otherwise the beneficiary of coverage. The
Company has delivered a certificate of insurance issued by the insurance provider to Buyer (or a current or former Affiliate of Buyer) for each such insurance policy. With respect to each such insurance policy: (a) the policy is legal, valid,
binding, enforceable and in full force and effect; (b) neither the Company nor, to the Knowledge of the Company, any other party to the policy is in breach or default thereunder (including with respect to the payment of premiums or the giving
of notices), and no event has occurred that, with notice or the lapse of time, would constitute such a breach or default, or permit termination, modification or acceleration under the policy; and (c) no party to any policy has repudiated any
provision thereof. The Company has been covered during the past five years by insurance substantially similar in scope to policies currently in effect. The Company has disclosed to Buyer (or a current or former Affiliate of Buyer) any self-insurance
arrangements affecting the Company. The Company has disclosed to Buyer (or a current or former Affiliate of Buyer) all claims made by the Company under any insurance policy during the past five years with respect to its business. 
  

 15 

 Section 3.21. Tax Matters. 
 (a) The Company has disclosed to Buyer (or a current or former Affiliate of Buyer) all Tax elections, consents and agreements made by or affecting the
Company, all types of Taxes paid and Tax Returns filed by or on behalf of the Company and the status of all examinations, administrative or judicial proceedings, and litigation with respect to any Taxes of the Company. 
 (b) The Company has filed or caused to be filed all Tax Returns required to have been filed by or for it, and all information set forth on such Tax
Returns is accurate and complete in all material respects. 
 (c) The Company has paid all Taxes shown as due on all Tax Returns that it has
filed. 
 (d) The Company is in compliance with, and its records contain all information and documents (including, without limitation,
properly completed IRS Forms W-9) necessary to comply with, all applicable information reporting and Tax withholding requirements under applicable Laws, and such records identify with specificity all accounts subject to backup withholding under
Section 3406 of the Code. 
 (e) The Company has collected or withheld all amounts required to be collected or withheld by it for any
Taxes, and all such amounts have been paid to the appropriate governmental agencies or set aside in appropriate accounts for future payment when due. 
 (f) The Balance Sheet fully and properly reflects, as of its date, the liabilities of the Company for all Taxes that are required by GAAP to be reflected thereon. 
 (g) For all periods after the date of the Balance Sheet, the Books and Records fully and properly reflect the liabilities of the Company for all Taxes
that are required by GAAP to be reflected thereon. 
 (h) The Company has not granted (and is not subject to) any waiver currently in effect
extending the period of limitations for the assessment of any Tax, no unpaid Tax deficiency has been asserted against or with respect to the Company by any taxing authority, and there is no pending examination, administrative or judicial proceeding,
or deficiency or refund litigation with respect to any Taxes of the Company. 
 (i) The Company is not required to include in income any
amount for an adjustment pursuant to Section 481 of the Code or the regulations thereunder or any similar provision of state law. 
 (j)
Neither the Company nor any ERISA Affiliate is a party to any agreement or other arrangement under which the Company or any ERISA Affiliate is or may become 

  

 16 

 
obligated to make any payment that would constitute an “excess parachute payment” within the meaning of Section 280G of the Code or that would
cause compensation payable by it to be non-deductible under Section 162(m) of the Code. 
 (k) No Seller is a “foreign person”
for purposes of Section 1445 of the Code. 
 (l) The Company is not and has never been a member of an affiliated group within the
meaning of Section 1504(a) of the Code, and neither the Company nor any entity to whose liabilities the Company has succeeded has filed or been included in a consolidated, unitary, or combined Tax Return with another person. 
 (m) To the Knowledge of the Company, there are no due but unpaid Taxes payable by the Company that (i) are or could become a Lien on any Asset,
(ii) could be reasonably expected to have a Material Adverse Effect or (iii) could result in any liability to Buyer. 
 (n) The
Company has provided Buyer (or a current or former Affiliate of Buyer) with true and correct copies of all correspondence between the Company and any taxing authority. 
 (o) Since April 16, 1997, the Company has not distributed to its stockholders or security holders stock or securities of a controlled corporation in a transaction to which Section 355(a) of the Code
applies. 
 Section 3.22. Compliance with Law. 
 Except as would not have a Material Adverse Effect, the conduct of the business of the Company and its use of the Assets and performance under the Contracts do not violate or conflict, and have not violated or
conflicted, with any Law. The Company has not received any notice or other communication that alleges the Company is in violation of any applicable Laws or regulations. The Company is not in default under, and has complied in all material respects
with, every federal, state or local grant that the Company has been awarded, no money received by the Company pursuant to any such grant is required to be returned or reimbursed and the Company has no ongoing obligations that have not been either
satisfied, discharged or fulfilled. 
 Section 3.23. Environmental Conditions. 
 (a) Definitions. When used in this Section 3.23: 
 (i) “Environmental Laws” shall mean any and all applicable federal, state, local or municipal Laws (including common law), rules, orders, regulations, statutes, ordinances, codes, decrees or
requirements of any Governmental Authority (as defined below) regulating, relating to or imposing liability or standards of conduct concerning any Hazardous Materials (as defined below), Petroleum Products (as defined below) or environmental
protection, together with any amendment or reauthorization thereto or thereof, as now or at any time hereafter in effect; 
  

 17 

 (ii) “Governmental Authority” shall mean any federal, state, local, municipal or other
governmental department, commission, board, bureau, agency or instrumentality, or any court, in each case having jurisdiction over the applicable matter and whether of the United States or another country; 
 (iii) “Hazardous Materials” shall mean any pollutants, contaminants, solid waste, hazardous material, hazardous waste, infectious or
biomedical medical waste, or hazardous or toxic substance defined or regulated as such in or under any Environmental Law, including, without limitation, materials exhibiting the characteristics of ignitability, corrosivity, radioactivity, reactivity
or toxicity characteristic leaching procedure, as such terms are now or hereafter defined in connection with hazardous materials or hazardous wastes or hazardous or toxic substances in any applicable Environmental Law; and 
 (iv) “Petroleum Products” shall mean gasoline, diesel fuel, motor oil, waste or used oil, heating oil, kerosene and any other petroleum
products. 
 (b) The Company has at all times conducted its business in compliance in all material respects with all Environmental Laws.

 (c) (i) To the Knowledge of the Company, the Company has not used, stored, treated, transported, manufactured, refined, handled,
produced or disposed of any Hazardous Materials or Petroleum Products on, under, at, from or in any way affecting any of its properties or assets (including, without limitation, any properties or assets now or previously owned or operated by the
Company), or otherwise, in any manner which constituted or constitutes a violation of any applicable Environmental Law governing the use, storage, treatment, transportation, manufacture, refinement, handling, production or disposal of Hazardous
Materials or Petroleum Products, and (ii) to the Knowledge of the Company, no prior owner of any such property or asset or any tenant, subtenant, prior tenant or prior subtenant thereof has used Hazardous Materials or Petroleum Products on,
from or in any way affecting any such property or asset, or otherwise, in any manner which constituted or constitutes a violation of any applicable Environmental Law governing the use, storage, treatment, transportation, manufacture, refinement,
handling, production or disposal of Hazardous Materials or Petroleum Products. 
 (d) To the Knowledge of the Company, there has been no
(i) off-site shipment of any Hazardous Materials or Petroleum Products by the Company or (ii) release by the Company on, under, at, from or in any way affecting any real properties now or previously owned or operated by the Company, which
off-site shipment or release gives rise to liabilities or obligations under Environmental Laws or common law that could have a material adverse effect on the Assets or Contracts or the properties, business, financial condition or results of
operations of the Company. The Company has not received any notices or claims that alleges that the Company is in violation of any Environmental Laws or that it is a responsible party in connection with any claim or notice asserted pursuant to 42
U.S.C. Section 9601 et seq., or any state superfund law. 
  

 18 

 (e) The Company has received all Permits as may be required under applicable Environmental Laws to
conduct the business of the Company as currently conducted, and the Company is in compliance in all material respects with the terms and conditions of each such Permit. 
 (f) The Company has provided to Buyer (or a current or former Affiliate of Buyer) true and accurate copies of all environmental site assessments, compliance audits, environmental management system reviews,
environmental consulting agreements, and regulatory correspondence concerning the Real Property. 
 (g) The Company has provided to Buyer (or
a current or former Affiliate of Buyer) true and accurate copies of all insurance policies, insurance policy applications, notices to insurance carriers, reservation of rights letters, environmental insurance policy or applications, and financial
assurance documentation concerning or potentially concerning the Real Property. 
 (h) The Company has provided to Buyer (or a current or
former Affiliate of Buyer) true and accurate copies of all accounting and financial records involving past, present and proposed expenditures for environmental compliance, environmental remediation, and environmental investigations involving the
Real Property or property at which waste or materials from the Company actually or allegedly have been sent. 
 (i) The Company has provided
to Buyer (or a current or former Affiliate of Buyer) true and accurate copies of all correspondence with any prior owner or operator of the Real Property concerning any environmental issue at the Real Property. 
 (j) The Company has not in the past been nor is it currently named as a potentially responsible party for the investigation, remediation or monitoring of
environmental conditions under any Environmental Laws at any sites not owned by the Company. 
 (k) The Company has disclosed to Buyer (or a
current or former Affiliate of Buyer) all material facts that the Company reasonably believes would be reasonably likely to have a material adverse effect on the Company from (x) the cost of pollution control equipment currently required or
known to be required in the future, (y) investigation, assessment, monitoring, remediation, response, removal, corrective action, cleanup, or remediation costs and any related costs currently required or known to be required in the future, or
(z) any other environmental, health or safety matter affecting the Company. 
 (l) The Company does not know of any characteristic,
condition or trait in the products manufactured, assembled or sold by the Company or any characteristic, condition or trait at the Real Property which could, with the passage of time or giving of notice or both, give rise to any liability or
obligation of the Buyer under any Environmental Laws. 
 Section 3.24. Labor Matters. 
 (a) The Company has disclosed to Buyer (or a current or former Affiliate of Buyer) the following information for each employee of the Company (including
each employee on leave of absence or layoff status): name, job title and current compensation paid or payable. To the Knowledge of the Company, no employee of the Company intends to terminate his or her employment. 
  

 19 

 (b) The Company is and has been in compliance in all material respects with all applicable Laws
respecting employment and employment practices, terms and conditions of employment and wages and hours including, without limitation, any such Laws respecting employment discrimination and occupational safety and health requirements, and has not and
is not engaged in any unfair labor practice. 
 (c) There is no unfair labor practice charge or complaint against the Company pending or, to
the Knowledge of the Company, overtly threatened before the National Labor Relations Board or any other comparable authority. 
 (d) The
Company is not a party to any collective bargaining agreements. 
 (e) There is no litigation, arbitration proceeding, governmental
investigation, citation or action of any kind pending or, to the Knowledge of the Company, proposed or overtly threatened against the Company relating to employment, employment practices, terms and conditions of employment or wages and hours.

 (f) Each employee of the Company is employed on an “at will” basis. 
 (g) There are no pending or, to the Knowledge of the Company, threatened strikes, lockouts or other work stoppages involving any persons employed by the
Company. 
 (h) There are no representation petitions or other similar petitions or requests for representation pending or, to the Knowledge
of the Company, proposed or threatened, before the National Labor Relations Board or other federal, provincial, state, or local agency in connection with any persons employed by the Company. 
 Section 3.25. No Adverse Change. 
 Since the date of the Balance Sheet, the business of the Company has been operated in the ordinary course and substantially in the same manner as previously conducted, and there has not been any: 
 (a) change in the Company’s authorized or issued capital stock, grant of any stock option or right to purchase shares of capital stock of the
Company, issuance of any security convertible into such capital stock, grant of any registration rights, purchase, redemption, retirement or other acquisition by the Company of any shares of any such capital stock, declaration or payment of any
dividend or other distribution or payment in respect of shares of capital stock, or split, combination or reclassification of any shares of capital stock of the Company; 
 (b) amendment to the charter or bylaws of the Company; 
  

 20 

 (c) material adverse change in the business of the Company, financial condition, or results of operations
of the Company and, to the Knowledge of the Company, no fact or condition has occurred or exists or is contemplated or threatened (other than general economic or industry conditions) which might reasonably be expected to result in any such material
adverse change; 
 (d) merger or consolidation with, purchase of substantially all of the assets of, or other acquisition of any business or
proprietorship, firm, association, corporation or other business organization or division thereof; 
 (e) loss or, to the Knowledge of
Company, threatened or contemplated loss of business of one or more customers of the Company, which loss could reasonably be expected to have a Material Adverse Effect; 
 (f) borrowings by the Company other than trade payables arising in the ordinary course of business or pledge or hypothecation of any Assets to secure any indebtedness of the Company; 
 (g) forgiveness of any indebtedness or other obligations owed to the Company; 
 (h) payment or increase by the Company of any bonuses, salaries or other compensation to any stockholder, director, officer or (except in the ordinary
course of business) employee or entry into any employment, severance or similar contract with any director, officer or employee; 
 (i) entry
into any collective bargaining agreement; 
 (j) adoption of, or increase in the payments to or benefits under, any profit sharing, bonus,
deferred compensation, savings, insurance, pension, retirement, severance or other employee benefit plan for or with any employees of the Company; 
 (k) damage to, or destruction, condemnation or loss of, any asset or property of the Company, whether or not covered by insurance, materially and adversely affecting the properties, assets, business, or financial condition of the Company,
taken as a whole; 
 (l) termination or assignment of, or receipt of notice of termination of, any Material Contract or insurance policy;

 (m) sale (other than sales of inventory in the ordinary course of business), lease or other disposition of any asset or property of the
Company or mortgage, pledge, or imposition of any Lien (other than a Permitted Lien) on any material asset or property of the Company, including the sale, lease or other disposition of any of the Intellectual Property; 
 (n) capital expenditure by the Company outside of the ordinary course of business; 
  

 21 

 (o) purchase of Inventory or trade accounts payable incurred by the Company in excess of levels (giving
effect to seasonal needs) normally purchased or incurred by the Company in the ordinary course of business consistent with past practices; 
 (p) cancellation or waiver of any claims or rights with a value to the Company in excess of $10,000; 
 (q) change in the accounting
methods and Tax elections used by the Company; or 
 (r) agreement, whether oral or written, by the Company to do any of the foregoing.

 Section 3.26. Employee Benefit Plans. 
 (a) The Company has provided Buyer (or a current or former Affiliate of Buyer) a true and complete list of the Employee Benefit Plans currently or previously maintained by the Company or an ERISA Affiliate, together
with a copy of the same, the most recent annual report on Form 5500 filed with the IRS, the most recent summary plan description and each summary of material modifications thereto, if applicable. 
 (b) No Employee Benefit Plan is a “multiemployer plan” as defined in Section 3(3) of ERISA and neither the Company nor any ERISA Affiliate
has previously maintained or had an obligation to contribute to a “multiemployer plan” (as defined above); and if any Employee Benefit Plan is such a “multiemployer plan”, the Company and each ERISA Affiliate may terminate its
participation in such plan without any withdrawal liability. 
 (c) Each Employee Benefit Plan has been maintained, funded and administered
in accordance with its terms and all applicable Laws, including without limitation complying with all written plan document, reporting, disclosure, fiduciary and prohibited transaction requirements applicable thereto. 
 (d) Neither the Company nor any ERISA Affiliate has any obligation to provide welfare benefits to any former employee, non-employee director or service
provider or the spouses, dependents or beneficiaries thereof other than those benefits required under Section 4980B of the Code and Sections 601 et seq. of ERISA. 
 (e) There are no audits, examinations, investigations or other reviews which are ongoing or have been completed in the last three years by any Governmental Authority, termination proceedings or other claims (except
routine claims for benefits payable under the Employee Benefit Plans) or proceedings against or involving any Employee Benefit Plans or asserting any rights to or claims for benefits or breach of duty under any Employee Benefit Plans, and none have
been threatened or noticed. 
 (f) Each Pension Plan that is intended to be a Tax-qualified plan in the United States has been the subject of
a determination letter from the IRS to the effect that such Pension Plan as established, amended and currently in effect and any related trust is qualified and exempt 

  

 22 

 
from Federal income Taxes under Sections 401(a) and 501(a), respectively, of the Code, and no such determination letter has been revoked and, to the
Knowledge of the Company, no such revocation has been threatened. 
 (g) Each Employee Benefit Plan subject to Section 409A of the Code
has been operated and is in compliance with the requirements of Section 409A of the Code. 
 (h) Each Employee Benefit Plan that is
intended to be a cafeteria plan within the meaning of Section 125 of the Code and each trust or other entity that is intended to be a voluntary employees’ beneficiary association within the meaning of Section 501(c)(9) of the Code
meets the applicable requirements of such Code sections, respectively. 
 (i) Each Employee Benefit Plan, or the participation of the Company
or ERISA Affiliate therein, may in the discretion of the Company or ERISA Affiliate be terminated without any liability other than those amounts which are recorded as liabilities on the Company’s or an ERISA Affiliate’s Books and Records.

 (j) No Pension Plan is subject to Title IV of ERISA or Section 412 of the Code; and if any Pension Plan is subject to Title IV of
ERISA or Section 412 of the Code, no such Pension Plan has an accumulated funding deficiency for purposes of Section 412 of the Code, each such Pension Plan is fully funded on both an ongoing and a termination basis and the Company has not
incurred any liability under Title IV of ERISA with respect thereto. 
 Section 3.27. Warranties and Service Payment Obligations.

 (a) No warranty, express or implied, has been made or extended by the Company with respect to the Assets, or the products or services
provided by the Company in relation thereto. There are no claims (actual or threatened) based on any product warranty of which the Company has received notice. 
 (b) The Company has not granted to any person the right to repair, maintain, service or support any of the Assets. No agreement for the sale, license, service, support or maintenance of the Assets obligates the
Company to provide any change in functionality or other alterations in the performance of the Assets or to provide new products or technology. 
 Section 3.28. Bank Accounts. 
 The Company has disclosed to Buyer (or a current or former Affiliate of Buyer) all bank
accounts, safety deposit boxes and lock boxes (designating each authorized signatory with respect thereto) of the Company. 
 Section 3.29. Customers and Suppliers. 
 The Company is not engaged in any disputes with any current customer or
supplier, and there has not been any material adverse change, and, to the Knowledge of the Company, there are no facts which could reasonably be expected to result in a material adverse change, in the business relationship of the Company with any
current customer or supplier. The Company has 

  

 23 

 
not received any written notice, nor does the Company have any Knowledge that: (a) any current customer intends to terminate, fail to renew or seek any
material adverse modification of its existing business arrangements with the Company; or (b) any current supplier (i) has sought, or is seeking, to substantially increase the price it charges the Company for supplies or other goods and
services or (ii) will not sell supplies or other goods and services to Buyer or the Company at any time after the Closing Date on terms and conditions similar to those used in current sales to the Company, subject to general and customary price
increases. 
 Section 3.30. Fees and Expenses of Brokers and Others. 
 The Company is not committed to any liability for any brokers’ or finders’ fees or any similar fees in connection with the transactions
contemplated hereby, and the Company has not retained any broker or other intermediary to act on its behalf in connection with the transactions contemplated by this Agreement. 
 Section 3.31. Disclosure. 
 Neither this Agreement or any schedule or exhibit hereto nor any certificate or other document furnished to Buyer by the Company pursuant hereto contains any untrue statement of a material fact or omits to state a material fact necessary in
order to make the statements contained therein or herein, in light of the circumstances under which they were made, not misleading. 
 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES OF SELLERS 
 As an inducement to Buyer to enter into this Agreement and to consummate the transactions contemplated hereby, each Seller hereby severally (as to
himself or herself or itself and not as to any other Seller) represents and warrants to Buyer that: 
 Section 4.1. Authorization;
Enforceability. 
 This Agreement is, and the other documents and instruments required hereby to which such Seller is a party will be,
when executed and delivered by such Seller, the legal, valid and binding obligation of such Seller, enforceable against such Seller in accordance with their respective terms. Such Seller has the absolute and unrestricted right, power, authority and
capacity to execute and deliver, and to perform its obligations under, this Agreement and the other documents and instruments required hereby to which such Seller is a party. With respect to any Seller that is a corporation, limited liability
company, partnership or other entity, the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby by such Seller, to the extent required by the governing documents of such Seller or applicable Law, have
been duly and validly authorized by the board of directors or other governing body of such Seller and no other corporate, limited liability, partnership or other proceedings on the part of such Seller, and, as the case may be, its board of directors
or other governing body or its stockholders, partners or members are necessary therefore. 
 Section 4.2. Title to Purchased
Stock. 
 Such Seller is the record and beneficial owner and owns good, valid and marketable title to the number of shares of Purchased
Stock listed under its name on Exhibit A attached hereto, free and clear of any and all Liens. Upon Buyer’s payment of the Purchase Price, Buyer will own good, valid and marketable title to the Purchased Stock, free and clear of any
and all Liens, and good, valid and marketable title to the Purchased Stock, free and clear of any and all Liens, will pass to Buyer. Other than this Agreement, the Purchased Stock is not subject to any voting trust agreement or other contract,
agreement, arrangement, commitment or understanding, including any such agreement, arrangement, commitment or understanding restricting or otherwise relating to the voting, dividend rights or disposition of the Purchased Stock. 
  

 24 

 Section 4.3. Disclosure. 
 Such Seller is not aware of any material facts or circumstances regarding the Company that such Seller reasonably believes should be disclosed to Buyer
that would materially and adversely effect Buyer’s decision to purchase the Purchased Stock. 
 Section 4.4. No Consents.

 No consent of any other person, and no notice to, filing or registration with, or consent, approval or authorization of, any court or
governmental, regulatory or self-regulatory agency is necessary or is required to be made or obtained by such Seller in connection with the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby.

 ARTICLE V 
 REPRESENTATIONS AND WARRANTIES OF THE BUYER 
 As an inducement to the Company and Sellers to enter into this
Agreement and to consummate the transactions contemplated hereby, the Buyer hereby represents and warrants to the Company and Sellers that: 
 Section 5.1. Organization of Buyer. 
 Buyer is a corporation duly organized, validly existing and in good standing under
the laws of the Commonwealth of Virginia. Buyer has full corporate power and authority to carry on its business as it is currently being conducted and to own, operate and hold under lease its assets and properties as, and in the places where, such
assets and properties are currently owned, operated or held. Buyer is duly qualified or licensed to transact business as a foreign corporation, and is in good standing, in each jurisdiction where the failure to be so qualified could be reasonably
expected to have a material adverse effect on its business, financial condition or results of operations. 
 Section 5.2.
Authorization; Enforceability. 
 This Agreement is, and the other documents and instruments required hereby to which Buyer is a party
will be, when executed and delivered by Buyer, the legal valid and binding obligation of Buyer, enforceable against Buyer in accordance with their respective terms. Buyer 

  

 25 

 
has the absolute and unrestricted right, power, authority and capacity to execute and deliver, and to perform its obligations under, this Agreement and the
other documents and instruments required hereby to which Buyer is a party. 
 Section 5.3. No Violation or Conflict. 

The execution, delivery and performance by Buyer of this Agreement and all of the other documents and instruments required hereby to which Buyer is a
party do not and will not (a) conflict with or violate (i) the charter or bylaws of Buyer, (ii) any Law, rule, regulation, judgment, order or decree binding on Buyer or (iii) any contract or agreement to which Buyer is a party or
by which Buyer is bound, or (b) give any party to any contract or agreement to which Buyer is a party or by which Buyer is bound any right of termination, cancellation, acceleration or modification thereunder. 
 Section 5.4. No Consents. 
 No
consent of any other person, and no notice to, filing or registration with, or consent, approval or authorization of, any court or governmental, regulatory or self-regulatory agency is necessary or is required to be made or obtained by Buyer in
connection with the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby. 
 Section 5.5. Litigation. 
 There is no litigation, arbitration, proceeding, governmental investigation, citation or
action of any kind pending or, to the knowledge of Buyer, overtly proposed or threatened, by, before, or involving any Governmental Authority or arbitration tribunal that involves Buyer and that seeks restraint, prohibition, damages or other relief
in connection with this Agreement or the consummation of the transactions contemplated hereby. 
 Section 5.6. Fees and Expenses of
Brokers and Others. 
 Buyer is not committed to any liability for any brokers’ or finders’ fees or any similar fees in
connection with the transactions contemplated hereby has not retained any broker or other intermediary to act on its behalf in connection with the transactions contemplated by this Agreement. 
 ARTICLE VI 
 [RESERVED] 
  

 26 

 ARTICLE VII 
 CONDITIONS PRECEDENT TO THE OBLIGATIONS OF THE BUYER 
 Each and every obligation of Buyer to
be performed on the Closing Date shall be subject to the satisfaction prior to or at the Closing of the following express conditions precedent: 
 Section 7.1. Compliance with Agreement. 
 The Company and Sellers shall have performed and complied in all material
respects with all of their respective obligations under this Agreement which are to be performed or complied with by it prior to or on the Closing Date. 
 Section 7.2. Proceedings, Instruments and Due Diligence Satisfactory. 
 All proceedings,
corporate or other, to be taken by the Company and Sellers in connection with the transactions contemplated by this Agreement, and all documents incident thereto, shall be reasonably satisfactory in form and substance to Buyer and Buyer’s
counsel. Buyer shall have completed its due diligence review of the Company to the satisfaction of Buyer in its sole discretion. 
 Section 7.3. No Litigation. 
 No investigation, suit, action or other proceeding shall be threatened or pending before
any court or governmental agency that seeks restraint, prohibition, damages or other relief in connection with this Agreement or the consummation of the transactions contemplated hereby. 
 Section 7.4. Representations and Warranties. 
 Each of the representations and warranties of the Company and Sellers contained in this Agreement that is qualified by materiality shall be true and correct on and as of the Closing Date as if made on and as of such
date (other than representations and warranties which address matters only as of a certain date which shall be true and correct as of such certain date), and each of the representations and warranties that is not so qualified shall be true and
correct in all material respects on and as of the Closing Date as if made on and as of such date (other than representations and warranties which address matters only as of a certain date which shall be true and correct in all material respects as
of such certain date). 
 Section 7.5. Material Damage to Assets; Material Adverse Effect. 
 Between the date of this Agreement and the Closing Date, (a) the Assets shall not have been materially and adversely affected by reason of any loss,
taking, condemnation, destruction or physical damage, whether or not insured against and (b) there shall not have occurred any Material Adverse Effect. 
 Section 7.6. Employment Agreements with Key Employees. 
 Each Key Employee shall have entered
into an Employment Agreement with the Company. 
  

 27 

 Section 7.7. Consulting Agreement. 
 Dr. Sidney Hecht shall have entered into a Consulting Agreement with the Company. 
 Section 7.8. Deliveries at Closing. 
 Sellers or the Company, as the case may be, shall have delivered to Buyer the following documents, each properly executed and dated as of the Closing Date by Sellers or the Company, as the case may be, and in form and substance reasonably
acceptable to Buyer: 
  

	 	(a)	the certificates evidencing all of the Purchased Stock, which certificates shall be duly endorsed in blank or accompanied by duly executed stock powers; 

  

	 	(b)	a secretary’s certificate of the Company, including (i) the charter of the Company, certified by the Secretary of State or equivalent governmental body of the
Company’s jurisdiction of its incorporation, (ii) the bylaws of the Company and (iii) the resolutions of the Board of Directors of the Company approving the transaction contemplated by this Agreement; 

  

	 	(c)	a current certificate of good standing from the Company’s jurisdiction of incorporation and from each jurisdiction in which the Company is qualified to transact business as a
foreign corporation; 

  

	 	(d)	the minute books of the Company, including all stock registers, corporate seals and related materials; 

  

	 	(e)	all Required Consents and other consents, approvals and waivers from Governmental Authorities and other parties required to be obtained by the Company or Sellers;

  

	 	(f)	the Opinion of Company Counsel; and 

  

	 	(g)	such other documents and certificates as Buyer shall reasonably request. 

 Section 7.9. Consents from Holders of Company Stock Options. 
 The Company shall have delivered
to Buyer true and correct copies of consents of all of the holders of Company Stock Options that are necessary to effect the treatment contemplated by Section 2.3 hereof. 
  

 28 

 ARTICLE VIII 
 CONDITIONS PRECEDENT TO THE OBLIGATIONS OF SELLERS AND THE COMPANY 
 Each and every obligation
of Sellers and the Company to be performed on the Closing Date shall be subject to the satisfaction prior to or at the Closing of the following express conditions precedent: 
 Section 8.1. Compliance with Agreement. 
 Buyer shall have performed and complied in all material respects with all of its obligations under this Agreement which are to be performed or complied with by it prior to or on the Closing Date. 
 Section 8.2. Proceedings and Instruments Satisfactory. 
 All proceedings, corporate or other, to be taken by Buyer in connection with the transactions contemplated by this Agreement, and all documents incident thereto, shall be reasonably satisfactory in form and substance
to Sellers, the Company and the Company’s counsel. 
 Section 8.3. No Litigation. 
 No investigation, suit, action or other proceeding shall be threatened or pending before any court or governmental agency that seeks restraint,
prohibition, damages or other relief in connection with this Agreement or the consummation of the transactions contemplated hereby. 
 Section 8.4. Representations and Warranties. 
 Each of the representations and warranties of Buyer contained in this
Agreement that is qualified by materiality shall be true and correct on and as of the Closing Date as if made on and as of such date (other than representations and warranties which address matters only as of a certain date which shall be true and
correct as of such certain date) and each of the representations and warranties that is not so qualified shall be true and correct in all material respects on and as of the Closing Date as if made on and as of such date (other than representations
and warranties which address matters only as of a certain date which shall be true and correct in all material respects as of such certain date). 
 Section 8.5. Deliveries at Closing. 
 Buyer shall have delivered to Sellers and the Company such documents and
certificates as Sellers or the Company shall reasonably request, each properly executed and dated as of the Closing Date and in form and substance reasonably acceptable to Sellers and the Company. 
  

 29 

 ARTICLE IX 
 POST-CLOSING COVENANTS 
 Section 9.1. Additional Instruments. 
 At any time and from time to time after the Closing, at either a Seller’s, the Company’s or Buyer’s request and without further
consideration, the Company, Sellers or Buyer, as the case may be, shall execute and deliver such other instruments of sale, transfer, conveyance, assignment and confirmation and take such other action as a Seller, the Company or Buyer may reasonably
deem necessary or desirable in order to more effectively consummate the transactions contemplated herein. 
 Section 9.2. Access to
Books and Records. 
 From and after the Closing Date, Buyer will authorize and permit Sellers and their representatives to have access
during normal business hours, upon reasonable notice and for reasonable purposes and in such manner as will not unreasonably interfere with the conduct of Buyer’s or the Company’s business, to all of the Books and Records. From and after
the Closing Date, Sellers will authorize and permit Buyer and its representatives to have access during normal business hours, upon reasonable notice and for reasonable purposes to all books, records, files, documents and other correspondence
related to the business of the Company prior to the Closing that are not included among the Books and Records. The Company, Buyer and Sellers agree to (a) maintain all books, records, files, documents and other correspondence related to the
Company’s business prior to the Closing in accordance with their respective normal document retention practices after the Closing Date and (b) make available to each other, their counsel and accountants all information and documents
reasonably available to them which relate to any claim that may be subject to indemnification hereunder and to render to each other such assistance as may reasonably be required in order to ensure the proper and adequate defense of any such claim.

 Section 9.3. Certain Tax Matters. 
 (a) Sellers agree to cooperate with Buyer, and Buyer agrees to cooperate with Sellers, to the extent necessary in connection with the filing, pursuant to any provision of Law, of any information return or other
document relating to Buyer’s acquisition of the Company and any of the other transactions contemplated by this Agreement. 
 (b) Sellers
agree to make available to Buyer and the Company records in the custody of Sellers, to furnish other information, and otherwise to cooperate to the extent reasonably required for the preparation or filing of Tax Returns relating to the Company.

 (c) Each Seller shall pay (and shall indemnify and hold Buyer harmless from) all sales, stamp, recordation and transfer taxes arising out
of, or directly related to, the sale of such Seller’s Purchased Stock under this Agreement. For the avoidance of doubt, such Seller shall not pay (or indemnify or hold Buyer harmless from) any sales, stamp, recordation or transfer taxes arising
out of, or related to, any other transactions contemplated by this Agreement, including without limitation the sale of Purchased Stock by any other Seller. 
  

 30 

 ARTICLE X 
 [RESERVED] 
 ARTICLE XI 
 MISCELLANEOUS 
 Section 11.1. Entire Agreement; Amendment;
Waiver. 
 This Agreement and the documents referred to herein and to be delivered pursuant hereto constitute the entire agreement between
the parties pertaining to the subject matter hereof and supersede all prior and contemporaneous agreements, understandings, negotiations and discussions of the parties, whether oral or written. There are no warranties, representations or other
agreements between the parties in connection with the subject matter hereof, except as specifically set forth herein. No amendment, supplement, modification or termination of this Agreement shall be binding unless executed in writing by the party to
be bound thereby. No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provision of this Agreement, whether or not similar, nor shall such waiver constitute a continuing waiver unless
otherwise expressly provided. 
 Section 11.2. Expenses. 
 Each of the parties hereto shall pay the fees and expenses of their respective counsel, accountants and other experts and the other expenses incident to
the negotiation and preparation of this Agreement and consummation of the transactions contemplated hereby, except that Buyer shall pay the fees and expenses of counsel to the Company. 
 Section 11.3. Governing Law; Consent to Jurisdiction. 
 This Agreement shall be construed and interpreted according to the laws of the Commonwealth of Virginia, without regard to the conflicts of law rules thereof. Each of the parties hereto, in respect of itself and its
properties, agrees to be subject to (and hereby irrevocably submits to) the nonexclusive jurisdiction of any United States federal or Virginia state court sitting in Richmond, Virginia, in respect of any suit, action or proceeding arising out of or
relating to this Agreement or the transactions contemplated herein, and irrevocably agrees that all claims in respect of any such suit, action or proceeding may be heard and determined in any such court. Each of the parties hereto irrevocably
waives, to the fullest extent it may effectively do so under applicable Law, any objection to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in
any such court has been brought in an inconvenient forum. Either party hereto may make service on the other party by sending or delivering a copy of the process to the 

  

 31 

 
party to be served at the address and in the manner provided for the giving of notices in Section 11.7 hereof. Nothing in this
Section 11.3, however, shall affect the right of any party to bring any action or proceeding arising out of or relating to this Agreement in any other court or to serve legal process in any other manner permitted by Law or in equity.

 Section 11.4. Further Assurances. 
 In case at any time after the Closing any further action is necessary or desirable to carry out the purposes of this Agreement, each party to this Agreement shall take all such necessary action that is reasonably
requested by another party, all at the sole expense of the requesting party. The parties hereto shall execute any additional instruments necessary to consummate the transactions contemplated hereby upon the reasonable request of another party.

 Section 11.5. Termination and Survival of Representations and Warranties. 
 The representations and warranties of the Company in this Agreement and in all other certificates and documents delivered pursuant to this Agreement shall
terminate upon, and shall not survive, the Closing. The representations and warranties of each Seller and of Buyer in this Agreement and in all other certificates and documents delivered pursuant to this Agreement shall survive the Closing.

 Section 11.6. Assignment. 
 This Agreement and each party’s respective rights hereunder may not be assigned, by operation of Law or otherwise, without the prior written consent of the other parties, except that Buyer may assign any of its rights under this
Agreement to any subsidiary of Buyer. This Agreement shall be binding upon and inure solely to the benefit of the parties hereto and their successors and permitted assigns. 
 Section 11.7. Notices. 
 All
notices, requests, claims, demands, disclosures and other communications required or permitted by this Agreement shall be in writing and shall be deemed to have been given at the earlier of the date (a) when delivered personally, by messenger
or by overnight delivery service by a recognized commercial carrier to the other party (or to an officer of the other party, if such party is not a natural person), (b) five days after being mailed by registered or certified United States mail,
postage prepaid, return receipt requested, or (c) when received via facsimile or electronic mail (confirmed by telephone in each case), in all cases addressed to the person for whom it is intended at his address set forth below or beneath its
signature hereto or to such other address as a party shall have designated by notice in writing to the other party in the manner provided by this Section 11.7: 
  

 32 

					
	If to Buyer:	  	New River Management IV, LP
		  	1881 Grove Avenue
		  	Radford, Virginia 24141
		  	Attention:	  	Randal J. Kirk
		  	Phone:	  	(540) 633-7978
		  	Fax:	  	(540) 633-7939
		
	With a copy to:	  	Troutman Sanders LLP
		  	1001 Haxall Point
		  	Richmond, Virginia 23219
		  	Attention:	  	John Owen Gwathmey, Esquire
		  	Phone:	  	(804) 697-1225
		  	Fax:	  	(804) 698-5174
		
	If to Company:	  	Pinnacle Pharmaceuticals, Inc.
		  	McCormick Road
		  	Charlottesville, Virginia 22904-4319
		  	Attention:	  	Sidney Hecht, PhD
		  	Phone:	  	(434) 924-3906
		  	Fax:	  	(434) 924-7856
		
	With a copy to:	  	LeClair Ryan, A Professional Corporation
		  	123 East Main Street, 8th Floor
		  	Charlottesville, Virginia 22902
		  	Attention:	  	Michael P. Drzal, Esquire
		  	Phone:	  	(434) 245-3431
		  	Fax:	  	(434) 296-0905
		  		  	
		  		  	

 Section 11.8. Counterparts. 
 This Agreement may be executed in several counterparts, each of which shall be deemed an original, but such counterparts shall together constitute but one
and the same Agreement. The execution of this Agreement by any of the parties may be evidenced by way of a facsimile transmission of such party’s signature, or a photocopy of such facsimile transmission, and such facsimile signature shall be
deemed to constitute the original signature of such party hereto. 
 Section 11.9. Interpretation. 
 Unless the context requires otherwise, all words used in this Agreement in the singular number shall extend to and include the plural, all words in the
plural number shall extend to and include the singular and all words in any gender shall extend to and include all genders. All references to contracts, agreements, leases or other understandings or arrangements shall refer to oral as well as
written matters. The table of contents and article and section headings in this Agreement are inserted for convenience of reference only and shall not constitute a part hereof. 
 Section 11.10. Severability. 
 If
any provision, clause or part of this Agreement, or the application thereof under certain circumstances, is held invalid or unenforceable by any court of competent jurisdiction, the remainder of this Agreement, or the application of such provision,
clause or part under other circumstances, shall not be affected thereby and shall remain in full force and effect. 
  

 33 

 Section 11.11. No Third Party Rights. 
 Nothing in this Agreement, express or implied, is intended to or shall confer upon any person other than the parties to this Agreement and their
successors and permitted assigns any rights, benefits or remedies of any nature whatsoever under, or by reason of, this Agreement. No third party is entitled to rely on any of the representations, warranties and agreements contained in this
Agreement. The Company, Buyer and Sellers assume no liability to any third party because of any reliance on the representations, warranties and agreements of the Company, Buyer or Sellers contained in this Agreement. 
 Section 11.12. Specific Performance. 
 The parties hereto agree that irreparable damage would occur in the event any of the provisions of this Agreement were not performed in accordance with the terms hereof and that the parties shall be entitled to specific performance of the
terms hereof, in addition to any other remedy at law or in equity. 
 Section 11.13. Counsel to Company. 
 LeClair Ryan, A Professional Corporation (“LeClair Ryan”) has served as legal counsel to the Company in connection with this Agreement and the
transactions contemplated hereby after full disclosure to Sellers of its representation of the Company. Each Seller acknowledges that he, she, or it has not been represented by LeClair Ryan in connection with this Agreement or the transactions
contemplated hereby, is fully aware of such Seller’s right to the advice of counsel independent from that of the Company, and that LeClair Ryan has advised Seller of such right. Each Seller further acknowledges that no advice or representations
have been made by LeClair Ryan or the Company with respect to the tax or other consequences of this Agreement to such Seller. By executing this Agreement, each Seller represents that he, she, or it has either consulted independent legal counsel or
elected, notwithstanding the advisability of seeking such independent legal counsel, not to consult such independent legal counsel. 
 [Signature Pages Follow] 
  

 34 

 IN WITNESS WHEREOF, each party hereto has caused this Agreement to be executed in its name by a
duly authorized officer as of the day and year first above written. 
  

			
	 New River Management IV, LP

		
	By:	 	 /s/ Randal J. Kirk

	Name:	 	Randal J. Kirk
	Title:	 	Manager, Third Security, LLC, which is the Manager of Third Security Capital Partners IV, LLC, New River Management IV, LP
	
	 Pinnacle Pharmaceuticals, Inc.

		
	By:	 	 /s/ Sidney Hecht

	Name:	 	Sidney Hecht
	Title:	 	President

 [SIGNATURES CONTINUE ON THE FOLLOWING PAGES] 

 [COUNTERPART SIGNATURE PAGE TO STOCK PURCHASE AGREEMENT] 
  

			
	 Transgenomic, Inc.

		
	By:	 	 /s/ Debra A. Schneider

	Name:	 	Debra A. Schneider
	Title:	 	V.P. & CFO
		
	Address:	 	12325 Emmet Street
		 	Omaha, NE 68164
	Phone:	 	(402) 452-5446
	Fax:	 	(402) 452-5461

 [COUNTERPART SIGNATURE PAGE TO STOCK PURCHASE AGREEMENT] 
  

			
	 /s/ Sidney Hecht

	Sidney Hecht
		
	Address:	 	4770 Drakeson Road
		 	Charlottesville, VA 22911
	Phone:	 	(434) 466-4952
	Fax:	 	(434) 924-7856

 [COUNTERPART SIGNATURE PAGE TO STOCK PURCHASE AGREEMENT] 
  

			
	 /s/ Francis Schmidt

	Francis Schmidt
		
	Address:	 	801 Westport Dr
		 	Columbia, MO 65203
	Phone:	 	(573) 424-6872
	Fax:	 	(573) 884-4597

 [COUNTERPART SIGNATURE PAGE TO STOCK PURCHASE AGREEMENT] 
  

			
	 S.R. One Limited

		
	By:	 	 /s/ Joyce A Lonergan

	Name:	 	Joyce A. Lonergan
	Title:	 	President
		
	Address:	 	200 Barr Harbor Drive, Suite 250
		 	Four Tower Bridge
		 	West Conshohocken, PA 19428
	Phone:	 	+1 610 567 1000
	Fax:	 	+1 610 567 1039

 [COUNTERPART SIGNATURE PAGE TO STOCK PURCHASE AGREEMENT] 
  

			
	 The University of Virginia Patent Foundation

		
	By:	 	 /s/ Robert S. MacWright

	Name:	 	Robert S. MacWright
	Title:	 	Executive Director & CEO
		
	By:	 	 /s/ Erik L Hewlett

	Name:	 	
	Title:	 	
		
	Address:	 	250 W Main Street
		 	Suite 300
		 	Charlottesville, PA 22402
	Phone:	 	(434) 924-2175
	Fax:	 	(434) 982-1583

 Exhibit A 
  

				
	 Sellers
	  	Shares of Company Common Stock	 
	 Sidney Hecht
	  	210,000	 
	 Francis Schmidt
	  	120,000	 
	 S.R. One, Limited
	  	250,000	*
	 The University of Virginia Patent Foundation
	  	250,000	*
	 Transgenomic, Inc.
	  	250,000	 
		  	 	 
		  	1,080,000	 

	*	Immediately prior to the Closing, each of S.R. One, Limited and The University of Virginia Patent Foundation converted all 250,000 shares of Company Preferred Stock held by it into
250,000 shares of Company Common Stock. 

  

 2

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