Document:

Securities Purchase Agreement

 Exhibit 10.1 
 SECURITIES PURCHASE AGREEMENT 
 THIS SECURITIES PURCHASE AGREEMENT (this
“Agreement”) dated as of November 19, 2008 is between Infinity Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and each of the purchasers named on Schedule A-1 hereto, (each, a
“Purchaser” and collectively the “Purchasers”). 
 BACKGROUND 
 WHEREAS, the Company desires to issue and sell, and the Purchasers desire to purchase, shares of the Company’s common stock, $0.001 par value per
share (the “Common Stock”) and warrants to purchase shares of the Common Stock; and 
 WHEREAS, capitalized terms not
defined above or elsewhere in this Agreement have the respective meanings assigned to such terms in Section 9. 
 NOW, THEREFORE, in
consideration of the mutual promises hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
 1. Purchase and Sale of the Securities; Closings. 
 (a) The Initial Closing. The Company agrees to issue and sell to the Purchasers, and the Purchasers agree to purchase from the Company, at an aggregate purchase price of $45,000,000 (the “Initial
Purchase Price”), an aggregate of 4,000,000 shares of Common Stock (the “Initial Closing Shares”), in accordance with the schedule attached hereto as Schedule A-1, on the date of this Agreement (such date is referred
to herein as the “Initial Closing Date” and the closing of such sale and purchase is referred to herein as the “Initial Closing”). The Initial Closing shall take place at the offices of Wilmer Cutler Pickering Hale
and Dorr LLP, 60 State Street, Boston, Massachusetts (or remotely via the exchange of signatures and documents) simultaneously with the execution of this Agreement. At the Initial Closing, subject to the terms and conditions of this Agreement:

 (i) the Company shall deliver to the Purchasers the Disclosure Schedule; 
 (ii) the Company and Mundipharma International Corporation Limited shall execute and deliver the Global Strategic Alliance Agreement;

 (iii) the Company and Purdue Pharmaceutical Products L.P. shall execute and deliver the FAAH U.S. Strategic Alliance
Agreement; 
 (iv) the Company and the Purchasers shall execute and deliver the Line of Credit Agreement; provided,
however, that the Company shall not have the right to cause loans to be made pursuant to the Line of Credit Agreement until the later of (A) April 1, 2009 and (B) the Second Closing; provided, further, that if the
Second Closing shall not occur as a result of Purchasers’ termination of this Agreement with respect to the Second Closing pursuant to Section 8.1(c) because the condition set forth in Section 7.3(c) has occurred, the Company shall
have the right to cause loans to be made pursuant to the Line of Credit Agreement as of the later of (A) April 1, 2009 and (B) the date of such termination; 

 (v) the Company shall deliver to the Purchasers a copy of the Second Amendment to Rights
Agreement, dated as of the date hereof (the “Second Amendment to Rights Agreement”), in the form attached hereto as Exhibit A; 
 (vi) WilmerHale, counsel for the Company, shall deliver to the Purchasers an opinion, dated the Initial Closing Date, in the form attached hereto as Exhibit B; 
 (vii) the Company shall deliver to each of the Purchasers a certificate for the number of Initial Closing Shares set forth opposite such
Purchaser’s name on Schedule A-1, registered in the name of such Purchaser; and 
 (viii) the Purchasers shall pay
to the Company, by wire transfer of immediately available funds to an account or accounts designated by the Company, the Initial Purchase Price for the Initial Closing Shares being purchased by each such Purchaser in accordance with Schedule
A-1. 
 (b) The Second Closing. Subject to the terms and conditions of this Agreement, the Company agrees to issue and sell to the
Purchasers, and the Purchasers agree to purchase from the Company, at an aggregate purchase price of $30,000,000 (the “Second Closing Purchase Price”), an aggregate of 2,000,000 shares of Common Stock (the “Second Closing
Shares”), and warrants to purchase up to an aggregate of 6,000,000 shares of Common Stock in accordance with the schedule attached hereto as Schedule A-2, such warrants having the exercise prices set forth on Schedule B and
being in the form attached hereto as Exhibit C (the “Warrants”). The closing of such sale and purchase of the Second Closing Shares and the Warrants is referred to herein as the “Second Closing” and the date
on which the sale and purchase occurs is referred to herein as the “Second Closing Date.” The Second Closing and the Initial Closing are collectively referred to as the “Closings” and the date of the Second Closing
and the Initial Closing are collectively referred to as the “Closing Dates.” The Second Closing shall be held at the offices of Wilmer Cutler Pickering Hale and Dorr LLP, 60 State Street, Boston, Massachusetts (or remotely via the
exchange of signatures and documents) on the second Business Day following the first date on which all the conditions to the Second Closing set forth in Section 7 have been satisfied or waived, or at such other place, time and date as the
Company and Purchasers shall agree. The Company shall give the Purchasers three (3) Business Days’ prior notice of the date the Second Closing is scheduled to occur. At the Second Closing, subject to the terms and conditions of this
Agreement: 
 (i) the Company shall deliver to the Purchasers the amended Disclosure Schedule; 
  

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 (ii) WilmerHale, counsel for the Company, shall deliver to the Purchasers an opinion,
dated the Second Closing Date, in the form attached hereto as Exhibit B; 
 (iii) the Company shall deliver to each of
the Purchasers certificates for the number of Second Closing Shares and Warrants in accordance with Schedule A-2, registered in the name of such Purchasers; 
 (iv) the Company shall deliver to the Purchasers a certificate signed by the chief executive officer and chief financial officer of the
Company certifying to the effect set forth in Sections 7.1(a), 7.1(b), 7.3(a), 7.3(b) and 7.3(c); 
 (v) the Purchasers shall
deliver to the Company a certificate signed by an authorized officer of each Purchaser certifying to the effect set forth in Sections 7.1(b) and 7.2(a). 
 (vi) the Purchasers shall pay to the Company, by wire transfer of immediately available funds to an account or accounts (previously designated by the Company no less than two (2) Business Days prior to the Second
Closing Date) the Second Closing Purchase Price for the Second Closing Shares being purchased by each such Purchaser in accordance with Schedule A-2. 
 2. Representations and Warranties of the Company. Except as disclosed by the Company in a written Disclosure Schedule provided by the Company to the Purchasers (the “Disclosure Schedule”), which
Disclosure Schedules shall be deemed a part hereof, the Company hereby represents and warrants to the Purchasers that the statements contained in this Section 2 are complete and accurate as of the date of this Agreement (or such other date as
is specified below). The Disclosure Schedule shall be arranged in sections corresponding to the numbered and lettered sections and subsections contained in this Section 2, and the disclosures in any section or subsection of the Disclosure
Schedule shall qualify other sections and subsections in this Section 2 to the extent it is reasonably clear from a reading of the disclosure that such disclosure is applicable to such other sections and subsections. 
 (a) Corporate Organization; Subsidiary. The Company is a corporation duly organized, validly existing and in good standing under the laws of the
State of Delaware. The Subsidiary is duly organized, validly existing and in good standing under the laws of the State of Delaware. Each of the Company and the Subsidiary is duly qualified and is in good standing as a foreign corporation in each
jurisdiction in which the properties owned, leased or operated, or the business conducted, by it require such qualification except for any such failure so to qualify or be in good standing which, individually or in the aggregate, would not have a
Material Adverse Effect on the Company and the Subsidiary, taken as a whole. The Subsidiary has the requisite power and authority to carry on its business as it is now being conducted. The Company has heretofore made available to Purchaser complete
and correct copies of the Certificate of Incorporation of the Company (the “Company Charter”) and the Bylaws of the Company (the “Company Bylaws”) and the certificate of incorporation and bylaws of the Subsidiary,
each as amended to date and currently in full force and effect. 
  

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 (b) Corporate Authority. The Company has the requisite corporate power and authority to execute,
deliver and perform this Agreement and to consummate the transactions contemplated hereby. The execution, delivery and performance of this Agreement by the Company, the issuance and sale by the Company of the Securities and the performance by the
Company of the other transactions contemplated hereby have been duly authorized by the Company’s Board of Directors, and no other corporate proceedings on the part of the Company are necessary to authorize this Agreement or for the Company to
consummate the transactions so contemplated herein. This Agreement is, and the Warrants, when executed or delivered will be, valid and binding agreements of the Company, enforceable against the Company in accordance with their respective terms,
subject as to enforcement of remedies to applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting generally the enforcement of creditors’ rights and subject to a court’s discretionary authority with respect
to the granting of a decree ordering specific performance or other equitable remedies. 
 (c) No Violations; Consents and Approvals.

 (i) Neither the execution, delivery or performance by the Company of this Agreement nor the consummation by the Company of
the transactions contemplated hereby (A) will result in a violation or breach of the Company Charter or the Company Bylaws or the charter or bylaws of the Company’s Subsidiary or (B) will result in a violation or breach of (or give
rise to any right of termination, revocation, cancellation or acceleration under or increased payments under), or constitute a default (with or without due notice or lapse of time or both) under, or result in the creation of any lien, mortgage,
charge, encumbrance or security interest of any kind (a “Lien”) upon any of the properties or assets of the Company or its Subsidiary under any of the terms, conditions or provisions of any note, bond, mortgage, indenture, contract,
agreement, obligation, instrument, offer, commitment, understanding or other arrangement to which the Company or its Subsidiary is a party (each a “Contract”), except, in the case of clause (B), for violations, breaches, defaults,
rights of termination, revocations, cancellations or accelerations or Liens that would not, individually or in the aggregate, have a Material Adverse Effect on the Company and its Subsidiary, taken as a whole. 
 (ii) Except for filings or consents as may be required under, and other applicable requirements of, (A) the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended (the “HSR Act”), (B) applicable securities laws, (C) Nasdaq Marketplace Rule 4310(c)(24), and (D) solely with respect to the Second Closing, Nasdaq Marketplace Rule 4350,
no consent, approval, order or authorization of, or registration, declaration or filing with, any government or any court, administrative agency or commission or other governmental authority or agency, federal, state, local or foreign (a
“Governmental Entity”), is required with respect to the Company in connection with the execution, delivery or performance by the Company of this Agreement or the consummation by the Company of the transactions contemplated hereby
(except where the failure to obtain such consents, approvals, orders or authorizations, or to make such filings would not, individually or in the aggregate, have a Material Adverse Effect on the Company and its Subsidiary, taken as a whole).

  

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 (d) Capital Stock. The authorized capital stock of the Company consists of (i) 100,000,000
shares of Common Stock, of which an aggregate of 20,062,437 shares of Common Stock were issued and outstanding as of the close of business on October 31, 2008, and (ii) 1,000,000 shares of preferred stock, $.001 par value per share, of
which none were issued and outstanding as of the close of business on October 31, 2008. All of the outstanding shares of Common Stock have been duly authorized and validly issued, and are fully paid and nonassessable. As of October 31,
2008, the Company had outstanding (i) stock options to purchase 3,763,604 shares of Common Stock and 1,043,265 shares of Common Stock are reserved for future issuance pursuant to the Company’s stock incentive plans and (ii) warrants
that are exercisable for 246,629 shares of Common Stock. There are no preemptive or similar rights on the part of any holders of any class of securities of the Company and, except as set forth in this paragraph (d), no securities convertible into or
exchangeable for, or options, warrants, calls, subscriptions, rights, contracts, commitments, arrangements or understandings of any kind to which the Company is a party or by which it is bound obligating the Company to issue, deliver or sell, or
cause to be issued, delivered or sold, additional shares of capital stock or other voting securities of the Company. 
 (e)
Subsidiary. All of the outstanding shares of capital stock of the Subsidiary are owned by the Company free and clear of all Liens. 
 (f) SEC Filings; Financial Statements. The Company has timely filed all reports, schedules, forms, statements and other documents required to be filed by it with the SEC under the Securities Act and the Exchange Act since
January 1, 2007 (the “Company SEC Documents”). As of its filing date, each Company SEC Document, as amended or supplemented, if applicable, (i) complied in all material respects with the applicable requirements of the
Securities Act or the Exchange Act, as applicable, and the rules and regulations thereunder and (ii) did not, at the time it was filed, 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 light of the circumstances under which they were made, not misleading. The financial statements of the Company included in the Company SEC Documents comply in all material respects with
applicable accounting requirements and the rules and regulations of the SEC with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with GAAP applied on a consistent basis during the
periods involved, except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the
financial position of the Company and its Subsidiary as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, year-end audit adjustments.

 (g) Absence of Certain Events and Changes. Since the date of filing of the Company’s Current Report on Form 10-Q for the
quarter ended September 30, 2008 with the SEC, (i) the Company and its Subsidiary have conducted their respective businesses in the ordinary course consistent with past practice, (ii) there has not been any event, change or
development which, individually or in the aggregate, would have a Material Adverse Effect on the Company and its Subsidiary, taken as a whole, (iii) the Company has not incurred any liabilities (contingent or otherwise) other than
(A) trade payables and accrued expenses incurred 

  

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in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial
statements pursuant to GAAP or required to be disclosed in filings made with the SEC, (iv) the Company has not altered its method of accounting, (v) the Company has not declared or made any dividend or distribution of cash or other
property to its shareholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, and (vi) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant
to existing Company stock option or stock plans. The Company does not have pending before the SEC any request for confidential treatment of information. 
 (h) Compliance with Applicable Law. Each of the Company and its Subsidiary is in compliance with all statutes, laws, regulations, rules, judgments, orders and decrees of all Governmental Entities applicable to
it that relate to its respective business, and neither the Company nor its Subsidiary has received any notice alleging noncompliance except, with reference to all the foregoing, where the failure to be in compliance would not, individually or in the
aggregate, have a Material Adverse Effect on the Company and its Subsidiary, taken as a whole. Each of the Company and its Subsidiary has all Permits that are required in order to permit it to carry on its business as it is presently conducted,
except where the failure to have such Permits or rights would not, individually or in the aggregate, have a Material Adverse Effect on the Company and its Subsidiary, taken as a whole. All such Permits are in full force and effect and to the
Knowledge of the Company, the Company and its Subsidiary are in compliance with the terms of such Permits, except where the failure to be in full force and effect or in compliance would not, individually or in the aggregate, have a Material Adverse
Effect on the Company and its Subsidiary, taken as a whole. 
 (i) Litigation. There are no civil, criminal or administrative actions,
suits, or proceedings pending or, to the Knowledge of the Company, threatened, against the Company or its Subsidiary that, individually or in the aggregate, are likely to have a Material Adverse Effect on the Company and its Subsidiary, taken as a
whole. There are no outstanding judgments, orders, decrees, or injunctions of any Governmental Entity naming the Company or its Subsidiary that, insofar as can reasonably be foreseen, individually or in the aggregate, in the future would have a
Material Adverse Effect on the Company and its Subsidiary, taken as a whole. 
 (j) Contracts. 
 (i) The Company has filed as exhibits to the Company SEC Documents all material agreements required to be filed under the rules and
regulations of the SEC (the “Material Contracts”). A list of the Material Contracts is set forth on Schedule 2(j). 
 (ii) All Material Contracts are valid, binding and in full force and effect and enforceable against the Company or the Subsidiary, as the case may be, except to the extent that any failure to be enforceable,
individually or in the aggregate, would not reasonably be expected to have or result in a Material Adverse Effect on the Company and its Subsidiary, taken as a whole, provided that no representation is made as to the enforceability of any
non-competition provision in any employment agreement. There does not exist under any Material Contract any violation, breach or event of default, or 

  

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event or condition that, after notice or lapse of time or both, would constitute a violation, breach or event of default thereunder, on the part of any of
the Company or its Subsidiary or, to the Knowledge of the Company, any other Person, other than such violations, breaches or events of default as would not, individually or in the aggregate, have a Material Adverse Effect on the Company and its
Subsidiary, taken as a whole. 
 (k) Environmental Matters. Except for such matters that, individually or in the aggregate, would not
have a Material Adverse Effect on the Company and its Subsidiary, taken as a whole, (i) the Company and its Subsidiary are in compliance with all applicable Environmental Laws (as defined below), (ii) the Company and its Subsidiary have
all Permits required under Environmental Laws for the operation of their respective businesses as presently conducted (“Environmental Permits”), (iii) neither the Company nor its Subsidiary has received notice from any
Governmental Entity asserting that either the Company or its Subsidiary may be in violation of, or liable under, any Environmental Law, and (iv) there are no actions, proceedings or claims pending (or, to the Knowledge of the Company
threatened) against the Company or its Subsidiary seeking to impose any liability under any Environmental Law or on Environmental Permits or with respect to any Hazardous Substances (as defined below). The representations and warranties in this
Section 2(k) are the Company’s only representations and warranties in this Agreement concerning environmental matters. 
 For the
purposes of this Agreement, “Environmental Law” means any applicable federal, state, local or foreign law, statute, regulation or decree directly relating to (x) the protection of the environment or (y) the use, storage,
treatment, generation, transportation, processing, handling, release or disposal of Hazardous Substances, in each case, as in effect on the date hereof. “Hazardous Substance” means any waste, substance, material, pollutant or
contaminant listed, defined, designated or classified as hazardous, toxic or radioactive, or otherwise regulated, under any Environmental law. 
 (l) Status of Securities. The Securities being issued at the Initial Closing, and the Securities being issued at the Second Closing will, have been duly authorized by all necessary corporate action on the part of the Company, and at
the Initial Closing and Second Closing, as the case may be, such Securities (i) will have been validly issued and, assuming payment therefor has been made, will be fully paid and nonassessable, free and clear of all Liens imposed by the Company
other than restrictions on transfer provided in this Agreement, and (ii) will not be subject to any claims by the Company or any other Person that a Purchaser is an “acquiring person” under any shareholder rights plan, including the
Rights Agreement, as amended by the Second Amendment to Rights Agreement, or similar plan or arrangement in effect or hereafter adopted by the Company, or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement,
by virtue of receiving Securities under the Transaction Documents. The issuance of such Securities will not be subject to preemptive rights of any other shareholder of the Company. The Shares and the shares of Common Stock issuable upon exercise of
the Warrants (the “Warrant Shares”) will be eligible for listing on Nasdaq when issued in accordance with the terms of this Agreement. As of the Initial Closing, the Company will have reserved from its duly authorized capital stock
the maximum number of shares of Common Stock issuable pursuant to this Agreement and the Warrants. 
  

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 (m) Intellectual Property. The Company Intellectual Property is owned free from any Liens
(other than Permitted Liens). All material Intellectual Property Licenses are in full force and effect, except as enforceability may be limited by bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium and other laws relating
to or affecting creditors’ rights generally and by general equitable principles and public policy constraints (including those pertaining to limitations and/or exclusions of liability, competition laws, penalties and jurisdictional issues
including conflicts of laws). To the Knowledge of the Company, all Company Intellectual Property is valid and enforceable and all intellectual property that is the subject of such Intellectual Property is valid and enforceable. Neither the Company
or its Subsidiary has received written notice from any third party that the development or commercialization of the Company’s or its Subsidiary’s products or product candidates infringes or misappropriates the rights of any third party in
respect of any Intellectual Property owned by such third party. To the Knowledge of the Company, none of the Company Intellectual Property is being infringed or misappropriated by any third party. There is no written claim or demand of any
Person pertaining to, or any proceeding which is pending or, to the Knowledge of the Company, threatened, that challenges the rights of the Company or its Subsidiary in respect of any Company Intellectual Property, or that claims that any default
exists under any Intellectual Property License. “Company Intellectual Property” means the Intellectual Property and Intellectual Property Licenses that are owned by the Company or its Subsidiary. 
 (n) Brokers or Finders. No agent, broker, investment banker or other firm is or will be entitled to any broker’s or finder’s fee or any
other commission or similar fee in connection with any of the transactions contemplated by this Agreement as a result of any actions taken by the Company or its Subsidiary. 
 (o) Taxes. Each of the Company and the Subsidiary has timely filed with the appropriate tax authorities all tax returns required to be filed by or
on behalf of the Company or the Subsidiary or any predecessor corporation of either of them, or any consolidated, combined or unitary group of which the Company is or has ever been a member (but only with respect to taxable periods during which the
Company has been a member thereof) in all jurisdictions in which such tax returns are or were required to be filed. All such filings are true, complete and correct in all material respects. The Company and the Subsidiary have timely paid all taxes,
including penalties and interest, assessments, withholding taxes, fees and other charges for which the Company or the Subsidiary is liable other than (i) those taxes being contested in good faith and for which adequate reserves have been
established in accordance with generally accepted accounting principles, and (ii) those taxes not yet due and payable. To the Knowledge of the Company, the Company has no tax deficiency which has been asserted or threatened against the Company
or the Subsidiary. There is no action, suit, proceeding, investigation, audit, or claim now pending or, to the Knowledge of the Company or the Subsidiary, threatened by any authority regarding any taxes relating to the Company or the Subsidiary.
Neither the Company nor the Subsidiary has entered into an agreement or waiver or been requested to enter into an agreement or waiver extending any statute of limitations relating to the payment or collection of taxes of the Company or the
Subsidiary, or, to the Knowledge of the Company or its Subsidiary, aware of any circumstances that would cause the taxable years or other taxable periods of the Company or the Subsidiary not to be subject to the normally applicable statute of
limitations. Neither the Company nor the Subsidiary is a party to or is bound by any tax indemnity agreement, tax sharing agreement or tax allocation agreement. 
  

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 (p) Insurance. The Company and the Subsidiary are insured by insurers of recognized financial
responsibility against losses and risks and in amounts as are prudent and customary in the businesses in which the Company and the Subsidiary are engaged. The Company’s insurance contracts are in effect in accordance with their respective
terms. Neither the Company nor the Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to
continue its business on terms consistent with market for the Company’s and the Subsidiary’s respective lines of business. 
 (q)
Sarbanes-Oxley; Internal Accounting Controls. The Company is in material compliance with all provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it as of the Initial Closing Date. The Company and the Subsidiary maintain a
system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to
permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company has established disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) for the Company and designed such disclosure controls and procedures to ensure that material information relating to the Company, including its Subsidiary, is made known to the certifying officers by others within those
entities, particularly during the period in which the Company’s most recently filed periodic report under the Exchange Act, as the case may be, is being prepared. The Company’s certifying officers have evaluated the effectiveness of the
Company’s controls and procedures as of the date prior to the filing date of the most recently filed periodic report under the Exchange Act (such date, the “Evaluation Date”). The Company presented in its most recently filed
periodic report under the Exchange Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no
significant changes in the Company’s internal controls (as such term is defined in Item 307(b) of Regulation S-K under the Exchange Act) or, to the Knowledge of the Company, in other factors that could significantly affect the
Company’s internal controls. 
 (r) Private Placement. Assuming the accuracy of the Purchasers’ representations and
warranties set forth in Section 3, no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchasers as contemplated hereby. Subject to (i) the requirement that the Company file,
no later than 10 days after each of the Initial Closing and the Second Closing, a “Notification Form: Change in the Number of Shares Outstanding” in accordance with Marketplace Rule 4310(c)(24), and (ii) the Company
obtaining the requisite approval of its stockholders for the issuance of the Second Closing Shares and the Warrants prior to the Second Closing, the issuance and sale of the Securities hereunder does not contravene the rules and regulations of
Nasdaq. 
  

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 (s) Investment Company. The Company is not, and immediately after receipt of payment for the
Securities will not be, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 
 (t)
Registration Rights. No Person has any right to cause the Company to effect the registration under the Securities Act of any securities of the Company. 
 (u) Listing and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(g) of the Exchange Act, and the Company has taken no action designed to, or which to the Knowledge of the
Company is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has the Company received any notification that the SEC is contemplating terminating such registration. The Company has not, in the
twelve (12) months preceding the date hereof, received notice from Nasdaq to the effect that the Company is not in compliance with the listing or maintenance requirements of Nasdaq. The Company is, and has no reason to believe that it will not
in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements. 
 (v) Disclosure. All
disclosure provided to the Purchasers regarding the Company, its business and the transactions contemplated hereby, including the Disclosure Schedule to this Agreement, furnished by or on behalf of the Company with respect to the representations and
warranties made herein are true and correct with respect to such representations and warranties and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in
light of the circumstances under which they were made, not misleading. The Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those
specifically set forth in Section 3 hereof. 
 (w) No Integrated Offering. Neither the Company, nor any of its Affiliates, nor
any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Securities to be integrated with
prior offerings by the Company for purposes of the Securities Act, which would require the registration of any such securities under the Securities Act or under the rules and regulations of Nasdaq on which any of the securities of the Company are
listed or designated, if such integration would cause this Agreement or the transactions contemplated herein to require shareholder approval in addition to the shareholder approval required pursuant to Nasdaq Marketplace Rule 4350 for the
transactions contemplated hereby to be consummated at the Second Closing. 
 (x) Solvency. Based on the consolidated financial
condition of the Company and the Subsidiary as of the Initial Closing Date after giving effect to the receipt by the Company of the proceeds from the sale of the Securities hereunder, (i) the Company’s fair saleable value of its assets
exceeds the amount that will be required to be paid on or in respect of the Company’s existing debts and other known liabilities (including known contingent liabilities) as they mature; and (ii) the Company’s assets do not constitute
unreasonably small capital to carry on its business for the current fiscal year as now conducted and as proposed to be conducted including its capital needs taking into account the particular capital requirements of the business conducted by the

  

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Company, and projected capital requirements and capital availability thereof. The Company has no present intention to incur debts beyond its ability to pay
such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt). To the Knowledge of the Company, there are no facts or circumstances which lead it to believe that it will file for
reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction from the date hereof until the one year anniversary of the Second Closing Date. Schedule 2(x) sets forth all outstanding secured and unsecured
Indebtedness of the Company or any Subsidiary, or for which the Company or the Subsidiary has commitments. Neither the Company nor the Subsidiary is in default with respect to any Indebtedness. 
 (y) Form S-3 Eligibility. The Company is eligible to register the resale of the Securities for resale by the Purchaser on Form S-3 promulgated
under the Securities Act. 
 (z) No General Solicitation. Neither the Company nor any person acting on behalf of the Company has
offered or sold any of the Securities by any form of general solicitation or general advertising. The Company has offered the Securities for sale only to the Purchasers and certain other “accredited investors” within the meaning of Rule
501 under the Securities Act. 
 (aa) Foreign Corrupt Practices. Neither the Company, nor to the Knowledge of the Company, any agent
or other person acting on behalf of the Company, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any
unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company (or made by any
person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended. 
 (bb) Transactions With Affiliates. None of the officers or directors of the Company is presently a party to any transaction with the Company or
the Subsidiary (other than for services as officers or directors), which would require disclosure under Item 404(a) of Regulation S-K of the Exchange Act, which has not been so disclosed. 
 (cc) Labor Relations. No material labor dispute exists or, to the Knowledge of the Company, is imminent with respect to any of the employees of
the Company which could reasonably be expected to result in a Material Adverse Effect. 
 (dd) Title to Assets. Neither the Company
nor the Subsidiary owns any real property. The Company and the Subsidiary have good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiary, in each case free and clear of all
Liens, except for Permitted Liens. Any real property and facilities held under lease by the Company and the Subsidiary are held by them under valid, subsisting and enforceable leases of which the Company and the Subsidiary are in compliance, except
as could not have or reasonably be expected to result in a Material Adverse Effect. 
  

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 (ee) Confidentiality. The Company is a party to the Confidentiality Agreement and acknowledges and
agrees that the Purchasers are subject to the obligations set forth in the Confidentiality Agreement. The Company is in compliance, in all material respects, and bound by the terms of the Confidentiality Agreement. 
 (ff) Additional Representations. Reference is made to the representations and warranties of the Company set forth in Sections 8.5 and 8.9 of the
Global Strategic Alliance Agreement (the “Additional Representations”). The Additional Representations are incorporated herein by reference and shall constitute a part of this Agreement as if such Additional Representations shall have been
made hereunder. For the sake of clarity, the Additional Representations are the only representations of the Global Strategic Alliance Agreement that are incorporated herein by reference and made a part hereof. 
 3. Representations and Warranties of the Purchaser. Each of the Purchasers severally represents and warrants to the Company as follows:

 (a) Organization. Each Purchaser is an entity duly organized and validly existing and in good standing under the laws of the
jurisdiction of its organization, with all requisite power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to conduct its business as now being conducted. 
 (b) Authority. Such Purchaser has the requisite power and authority to execute, deliver and perform its obligations under this Agreement and to
consummate the transactions contemplated hereby. All necessary action required to have been taken by or on behalf of such Purchaser by applicable law or otherwise to authorize the approval, execution, delivery and performance by such Purchaser of
this Agreement and the consummation by it of the transactions contemplated hereby have been duly authorized, and no other proceedings on its part are or will be necessary to authorize this Agreement or for it to consummate such transaction. This
Agreement is valid and binding agreement of such Purchaser, enforceable against such Purchaser in accordance with its terms, subject as to enforcement of remedies to applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting generally the enforcement of creditors’ rights and subject to a court’s discretionary authority with respect to the granting of a decree ordering specific performance or other equitable remedies. 
 (c) Conflicting Agreements and Other Matters. Neither the execution and delivery of this Agreement nor the performance by such Purchaser of its
obligations hereunder will conflict with, result in a breach of the terms, conditions or provisions of, constitute a default under, result in the creation of any Lien upon any of the properties or assets of such Purchaser pursuant to, or require any
consent, approval or other action by or any notice to or filing with any Government Entity pursuant to, the organizational documents or agreements of such Purchaser or any agreement, instrument, order, judgment, decree, statute, law, rule or
regulation by which such Purchaser is bound, except for filings after the Closings under Section 13(d) of the Exchange Act and filings under the HSR Act. 
 (d) Acquisition for Investment. Such Purchaser (i) is acquiring the Securities for its own account for the purpose of investment and not with a view to or for sale in connection with 

  

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any distribution thereof, and has no present intention to effect, or any present or contemplated plan, agreement, undertaking, arrangement, obligation,
indebtedness, or commitment providing for, any distribution of Securities, (ii) is an “accredited investor” as defined in Rule 501(a) under the Securities Act, (iii) has carefully reviewed the representations concerning the
Company and the Subsidiary contained in this Agreement and has made detailed inquiry concerning the Company and the Subsidiary, their respective business and their respective personnel, and (iv) has sufficient knowledge and experience in
finance and business that it is capable of evaluating the risks and merits of its investment in the Company and is able financially to bear the risks thereof. 
 (e) General Solicitation. Such Purchaser is not purchasing the Securities as a result of any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine
or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement. 
 (f) Confidentiality. Each Purchaser acknowledges and agrees that the Company is a party to the Confidentiality Agreement. Each Purchaser is in compliance, in all material respects, and is bound by the terms of the Confidentiality
Agreement. 
 (g) Brokers or Finders. No agent, broker, investment banker or other firm is or will be entitled to any broker’s or
finder’s fee or any other commission or similar fee in connection with any of the transactions contemplated by this Agreement as a result of any actions taken by a Purchaser. 
 4. Registration Rights. 
 4.1
Registration of the Shares and the Warrant Shares. 
 (a) The Company shall file with the SEC, within 30 days following the Initial
Closing Date, a Registration Statement covering the resale to the public by the Purchasers of the Initial Closing Shares. The Company shall use commercially reasonable efforts to cause the Registration Statement covering the Initial Closing Shares
to be declared effective by the SEC (collectively, the “Initial Closing Registrable Shares”) within 90 days after the filing thereof. The Company shall cause such Registration Statement to remain effective under the Securities Act
until all Initial Closing Registrable Shares covered by such Registration Statement have been sold or may be sold without volume restrictions pursuant to Rule 144. The Company shall promptly, and in no event in more than two (2) Business Days,
notify the Purchasers of the effectiveness of such Registration Statement after the Company confirms effectiveness with the SEC. In connection with the Company’s preparation and filing of the Registration Statement, each of the Purchasers shall
deliver to the Company within 10 days after the Initial Closing, a completed questionnaire in the form attached hereto as Exhibit D. 
 (b) The Company shall file with the SEC, within 30 days following the Second Closing Date, a Registration Statement covering the resale to the public by the Purchasers of the Second Closing Shares and Warrant Shares. The Company shall use
commercially reasonable efforts to cause the Registration Statement covering the Second Closing Shares and Warrant Shares to be declared effective by the SEC (collectively, the “Second Closing Registrable Shares” and, together with
the Initial Closing Registrable Shares, the “Registrable Shares”) within 90 days after the filing thereof. The Company shall cause such Registration Statement to remain effective under the Securities Act until all Second Closing
Registrable Shares covered by such Registration 

  

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Statement have been sold or may be sold without volume restrictions pursuant to Rule 144. The Company shall promptly, and in no event in more than two
(2) Business Days, notify the Purchasers of the effectiveness of such Registration Statement after the Company confirms effectiveness with the SEC. 
 4.2 Registration Representations and Warranties and Covenants. 
 (a) Other Registrations. The
Company shall not file any other registration statements, other than registration statements on Form S-4 or Form S-8, until the Registration Statements required to be filed pursuant to Sections 4.1(a) and (b) hereunder are declared effective by
the SEC, provided that this Section 4.2(a) shall not prohibit the Company from filing amendments to registration statements already filed. 
 (b) Compliance. Each Purchaser covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable to it in connection with sales of Registrable Shares
pursuant to a Registration Statement. The Company shall comply in all material respects with all applicable rules and regulations of the SEC applicable to the filing of a Registration Statement. 
 4.3 Registration Procedures. 
 (a) In
connection with the filing by the Company of a Registration Statement covering Registrable Shares, the Company shall furnish to each Purchaser (i) a copy of the prospectus, including a preliminary prospectus, in conformity with the requirements
of the Securities Act and (ii) such other documents as such Purchaser may reasonably request, in order to facilitate the public sale or other disposition of Registrable Shares. 
 (b) The Company shall use commercially reasonable efforts to register or qualify the Registrable Shares covered by a Registration Statement under the
securities laws of each state of the United States as the Purchasers shall reasonably request; provided, however, that the Company shall not be required in connection with this paragraph (b) to qualify as a foreign corporation or
execute a general consent to service of process in any jurisdiction. 
 (c) If for any reason the SEC does not permit the registration of all
of the Warrant Shares in the Registration Statement filed pursuant to Section 4.1(b), then the Company shall file as soon as reasonably practicable an additional Registration Statement covering the resale by the Purchasers of any previously
unregistered Warrant Shares on the first date after which the SEC will permit the filing of a Registration Statement covering any such remaining Warrant Shares. 
 (d) If the Company has delivered preliminary or final prospectuses to the Purchasers and after having done so the prospectus is amended or supplemented to comply with the requirements of the Securities Act, the
Company shall promptly notify the Purchasers and, if requested by the Company, the Purchasers shall immediately cease making offers or sales of Registrable Shares covered by a Registration Statement and return all prospectuses to the Company. The
Company shall promptly provide the Purchasers with revised or supplemented prospectuses and, following receipt of the revised or supplemented prospectuses, the Purchasers shall be free to resume making offers and sales of Registrable Shares under
such Registration Statement. 
  

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 (e) The Company shall be entitled to include in a Registration Statement covering Registrable Shares the
shares of Common Stock held by other shareholders of the Company, provided such other shares of Common Stock are excluded first from such Registration Statement in order to comply with any applicable laws or request from any Government
Entity, Nasdaq or any applicable listing agency. 
 (f) The Company shall pay the expenses incurred by it in complying with its registration
obligations under this Section 4, including all registration and filing fees, exchange listing fees, fees and expenses of counsel for the Company, and fees and expenses of accountants for the Company, but excluding (i) any brokerage fees,
selling commissions or underwriting discounts incurred by the Purchasers in connection with sales under any Registration Statement covering Registrable Shares and (ii) the fees and expenses of one counsel retained by the Purchasers. 

(g) The Company shall use commercially reasonable efforts to avoid the issuance of any order suspending the effectiveness of a Registration Statement,
or any suspension of the qualifications (or exemption from qualification) of any of the Registrable Shares for sale in any jurisdiction. The Company shall advise the Purchasers promptly after it shall receive notice of any stop order or issuance of
any order by the SEC delaying or suspending the effectiveness of a Registration Statement covering Registrable Shares or of the initiation of any proceeding for that purpose, and it will promptly use commercially reasonable efforts to prevent the
issuance of any stop order or to obtain its withdrawal at the earliest possible moment if such stop order should be issued. 
 4.4
Registration Confidentiality. Each Purchaser agrees to treat as confidential (unless otherwise publicly disclosed by the Company or a third party not to the knowledge of Purchaser in breach of an agreement of confidentiality with the Company)
any written notice from the Company regarding the Company’s plans to file a Registration Statement and shall not disclose such information to any other person, or use such information, except as is necessary to exercise its rights under this
Agreement. 
 4.5 Indemnification. 
 (a) The Company agrees to indemnify and hold harmless each Purchaser and their Associated Companies, each underwriter, and each other person, if any, who controls such Purchaser and their Associated Companies or
underwriter within the meaning of the Securities Act or Exchange Act from and against any losses, claims, damages or liabilities to which such Purchaser and their Associated Companies, such underwriter or controlling person may become subject (under
the Securities Act, the Exchange Act, state securities or Blue Sky laws or otherwise) insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise out of, or are based upon any untrue statement of a
material fact contained in any Registration Statement covering the Registrable Shares or in any preliminary prospectus or final prospectus contained in such Registration Statement, or any amendment or supplement to 

  

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such Registration Statement, or the omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements
therein not misleading, and the Company will reimburse each Purchaser and its Associated Companies, underwriter or controlling person for any reasonable legal or other expenses reasonably incurred in investigating, defending or preparing to defend
any such action, proceeding or claim, or preparing to defend any such action, proceeding or claim; provided, however, that the Company shall not be liable in any such case to the extent that such loss, claim, damage or liability arises
out of, or is based upon, an untrue statement made in such Registration Statement, preliminary prospectus or prospectus, or any amendment or supplement in reliance upon and in conformity with written information furnished to the Company by or on
behalf of such Purchaser and their Associated Companies, underwriter or controlling person specifically for use in the preparation thereof or any statement or omission in any prospectus that is corrected in any subsequent prospectus that was
delivered to such Purchaser prior to the pertinent sale or sales by such Purchaser. 
 (b) Each Purchaser, severally and not jointly, agrees
to indemnify and hold harmless the Company, each underwriter and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act, each officer of the Company who signs the Registration Statement and each
director of the Company, from and against any losses, claims, damages or liabilities to which the Company or any such underwriter, officer, director or controlling person may become subject (under the Securities Act, the Exchange Act, state
securities or Blue Sky laws or otherwise), insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise out of, or are based upon any untrue statement of a material fact contained in any Registration
Statement covering the Registrable Shares or in any preliminary prospectus, final prospectus contained in such Registration Statement, or any amendment or supplement to such Registration Statement or the omission or alleged omission to state a
material fact required to be stated therein or necessary to make the statements therein not misleading, if such untrue statement or omission was made in reliance upon and in conformity with written information furnished by or on behalf of such
Purchaser specifically for use in preparation of the Registration Statement, prospectus, amendment or supplement and such Purchaser will reimburse the Company, or such underwriter, officer, director or controlling person, as the case may be, for any
legal or other expenses reasonably incurred in investigating, defending or preparing to defend any such action, proceeding or claim; provided, however, that the Purchaser’s obligation to indemnify the Company shall be limited to
the net amount received by such Purchaser from the sale of the Registrable Shares. 
 (c) Promptly after receipt by any indemnified person of
a notice of a claim or the beginning of any action in respect of which indemnity is to be sought against an indemnifying person pursuant to this Section 4.5, such indemnified person shall notify the indemnifying person in writing of such claim
or of the commencement of such action, but the omission to so notify the indemnifying party will not relieve it from any liability which it may have to any indemnified party under this Section 4.5 (except to the extent that such omission
materially and adversely affects the indemnifying party’s ability to defend such action). Subject to the provisions hereinafter stated, in case any such action shall be brought against an indemnified person, the indemnifying person shall be
entitled to participate therein, and, to the extent that it shall elect by written notice delivered to the indemnified party promptly after receiving the aforesaid notice 

  

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from such indemnified party, shall be entitled to assume the defense thereof, with counsel reasonably satisfactory to such indemnified person. After notice
from the indemnifying person to such indemnified person of its election to assume the defense thereof, such indemnifying person shall not be liable to such indemnified person for any legal expenses subsequently incurred by such indemnified person in
connection with the defense thereof; provided, however, that if there exists or shall exist a conflict of interest that would make it inappropriate, in the opinion of counsel to the indemnified person, for the same counsel to represent
both the indemnified person and such indemnifying person or any Affiliate or Associated Company or associate thereof, the indemnified person shall be entitled to retain its own counsel at the expense of such indemnifying person; provided,
however, that no indemnifying person shall be responsible for the fees and expenses of more than one separate counsel (together with appropriate local counsel) for all indemnified parties. In no event shall any indemnifying person be liable
in respect of any amounts paid in settlement of any action unless the indemnifying person shall have approved the terms of such settlement; provided, however, that such consent shall not be unreasonably withheld. No indemnifying person
shall, without the prior written consent of the indemnified person, effect any settlement of any pending or threatened proceeding in respect of which any indemnified person is or could have been a party and indemnification could have been sought
hereunder by such indemnified person, unless such settlement includes an unconditional release of such indemnified person from all liability on claims that are the subject matter of such proceeding. 
 (d) If the indemnification provided for in this Section 4.5 is unavailable to or insufficient to hold harmless an indemnified party under paragraph
(a) or (b) above in respect of any losses, claims, damages or liabilities (or actions or proceedings in respect thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified
party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative fault of the Company on the one hand and the Purchasers on the other hand, in connection
with the statements or omissions or other matters which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative fault shall be determined by
reference to, among ether things, in the case of an untrue statement, whether the untrue statement relates to information supplied by the Company on the one hand or a Purchaser on the other hand and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such untrue statement. The Company and the Purchasers agree that it would not be just and equitable if contribution pursuant to this paragraph (d) were determined by pro rata
allocation (even if the Purchasers were treated as one entity for such purpose) or by any other method of allocation which does not take into account the equitable considerations referred to above in this paragraph (d). The amount paid or payable by
an indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this paragraph (d) shall be deemed to include any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this paragraph (d), a Purchaser shall not be required to contribute any amount in excess of the amount by which the net
amount received by such Purchaser from the sale of the Registrable Shares to which such loss relates exceeds the amount of any damages which such Purchaser has otherwise been required to 

  

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pay by reason of such untrue statement. 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 rights and obligation
of the Company and the Purchaser under this Section 4.5 shall survive the termination of this Agreement. 
 4.6
Termination. All of the Company’s obligations to register the Registrable Shares under this Agreement shall terminate on a merger or consolidation of the Company, provided that the shares received as merger consideration in
exchange for the Shares and Warrant Shares are freely tradable on a national securities exchange. 
 5. Rights Agreement.

 (a) The Company shall at all times keep in full force and effect the Second Amendment to Rights Agreement, which generally provides that
the Purchasers and Associated Companies may own the number of shares of outstanding Common Stock that does not exceed 33.3% of the Company’s fully-diluted Common Stock outstanding (which assumes the exercise or conversion of all exercisable or
convertible securities then outstanding) (the “Maximum Percentage”) without such ownership causing such Purchasers and Associated Companies to be deemed “Acquiring Persons” for purposes of the Rights Agreement, which
Maximum Percentage, as further provided in the Second Amendment to Rights Agreement, may be comprised of a combination of (i) Shares, (ii) up to 2,400,000 shares of Common Stock (subject to adjustment for any stock split, reverse stock
split, stock dividend, reclassification, recapitalization or other similar change to the Common Stock) that may be purchased from time to time after the Second Closing Date in the sole discretion of the Purchasers in open market purchases and/or
privately negotiated acquisitions, (iii) Warrant Shares from time to time (so long as such Warrant exercise does not result in the Purchasers and Associated Companies owning in excess of the Maximum Percentage) and (iv) shares of Common
Stock that the Purchasers may acquire as a consequence of the exercise of rights pursuant to Section 5(b). The Second Amendment to Rights Agreement also provides that the Purchasers’ and Associated Companies’ ownership of
fully-diluted Common Stock outstanding in excess of the Maximum Percentage shall not result in the Purchasers and/or Associated Companies being deemed an “Acquiring Person” for purposes of the Rights Agreement if as a result of an
acquisition of Common Stock by the Company, or the exercise or cancellation of outstanding securities that are exercisable, convertible or exchangeable for shares of Common Stock (including but not limited to outstanding options and warrants to
purchase Common Stock), which, by reducing the number of shares of fully-diluted Common Stock outstanding, increases the proportionate number of shares owned by the Purchasers’ and Associated Companies’ to more than the Maximum Percentage.
For the sake of clarity, the Company will use reasonable best efforts to ensure that the Purchasers and/or Associated Companies compliance with this Section 5 does not trigger the provisions of any shareholder rights plan or similar plan or
arrangement, the Second Amendment to the Rights Agreement, or the Rights Agreement, as may be further amended, and will take all further action as may be reasonably required to accomplish the intent of this Section 5. 
  

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 (b) Subject to the Rights Agreement, including the Second Amendment to Rights Agreement, and
notwithstanding the limitation set forth in Section 5(a)(ii), if on or after the Initial Closing Date the Company issues shares of its Common Stock, or securities convertible or exercisable into shares of its Common Stock other than the Second
Closing Shares, Warrants or Warrant Shares, each of the Purchasers may, in its sole discretion from time to time following the Second Closing Date and up to the earlier to occur of (i) December 31, 2013, and (ii) the termination of
both of the Strategic Alliance Agreements, make open market purchases and/or privately negotiated acquisitions from time to time of up to such additional number of shares of Common Stock as may be required to ensure that the Purchasers maintain
their aggregate Common Stock ownership level at the levels set forth in Schedule 5(b). 
 (c) Quarterly and upon Purchasers’
written request, the Company shall provide (within five (5) Business Days of any request) a statement as to the number of current outstanding shares of Common Stock and the Company’s good faith estimate of Purchasers’ current
ownership percentage (which shall be based upon publicly available information and/or information furnished by the Purchasers to the Company in writing). 
 (d) The Company will not enter into any shareholder rights plans or similar plan or arrangement, or further amendment to the Rights Agreement, that would allow a claim to be made or enforced by the Company that any
Purchaser or any Associated Company is an “Acquiring Person” for purposes of the Rights Agreement or otherwise deemed to trigger the provisions of any such plan provided that the Purchasers and Associated Companies are in compliance with
this Section 5. 
 6. Covenants and Additional Agreements. 
 (a) Obligations. The Company and each Purchaser shall use reasonable best efforts to take or cause to be taken all actions, and to do or cause to
be done all other things, necessary, proper or advisable in order to fulfill and perform its obligations in respect of this Agreement, or otherwise to consummate and make effective the transactions contemplated hereby and thereby. 
 (b) Consents and Approvals. The Company and each Purchaser shall, as promptly as practicable, (i) make, or cause to be made, all filings and
submissions (including but not limited to under the HSR Act and foreign antitrust filings and any filings under the rules and regulations of the SEC) required under any law applicable to it or its Subsidiary or Associated Companies, and give such
reasonable undertakings as may be required in connection therewith, and (ii) use all reasonable efforts to obtain or make, or cause to be obtained or made, all Permits necessary to be obtained or made by it, in each case in connection with this
Agreement, the sale and transfer of the Securities pursuant hereto and the consummation of the other transactions contemplated hereby or thereby. 
 (c) Further Actions. The Company and each Purchaser shall coordinate and cooperate with the other parties in exchanging such information and supplying such reasonable assistance as may be reasonably requested by such other parties in
connection with the filings and other actions contemplated by this Agreement. The Company and each Purchaser will execute, acknowledge and deliver such further instruments, and do all such other acts, as may be necessary or appropriate in order to
carry out the purposes and intent of this Agreement. 
  

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 (d) Notice. At all times prior to the Second Closing Date, the Company and each Purchaser shall
promptly notify each other in writing of any fact, condition, event or occurrence that could reasonably be expected to result in the failure of any of the conditions contained in Section 7 to be satisfied, promptly upon becoming aware of the
same. 
 (e) SEC Filings; Financial Statements. The Company shall use commercially reasonable efforts to (i) timely file any
reports, schedules, forms, statements and documents required to be filed by it with the SEC under the Securities Act and the Exchange Act (“Future SEC Filings”) and use commercially reasonable efforts to (A) comply in all
material respects with the applicable requirements of the Securities Act or the Exchange Act, as applicable, and the rules and regulations thereunder and (B) ensure that any Future SEC Filings do 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 light of the circumstances under which they were made, not misleading; (ii) ensure that the financial statements of the
Company included in the Future SEC Filings shall comply in all material respects with applicable accounting requirements and the rules and regulations of the SEC with respect thereto as in effect at the time of filing; and (iii) ensure that the
financial statements in its Future SEC Filings shall be prepared in accordance with GAAP applied on a consistent basis during the periods involved, except as may be otherwise specified in such financial statements or the notes thereto and except
that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its Subsidiary as of and for the dates thereof and the results of operations
and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, year-end audit adjustments. 
 (f)
Compliance with Applicable Law. Each of the Company and its Subsidiary shall (i) use commercially reasonable efforts to comply in all material respects with all statutes, laws, regulations, rules, judgments, orders and decrees of all
Governmental Entities applicable to it that relate to its respective business; and (ii) maintain all Permits that are required in order to permit it to carry on its business as it is presently conducted, except such Permits for which the
failure so to maintain shall not have a Material Adverse Effect. The Company will comply in all material respects with all applicable provisions of the Sarbanes-Oxley Act of 2002. The Company will not knowingly take action that would cause the
Company to become subject to the Investment Company Act unless the Company so registers or has, or obtains, an exemption from registration. 
 (g) Listing of Common Stock. The Company shall take no action designed to, or which to the Knowledge of the Company is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act. The Company
hereby agrees to use commercially reasonable efforts to maintain the listing of the Common Stock, including the Shares and Warrant Shares, on Nasdaq. The Company further agrees, if the Company applies to have the Common Stock traded on any other
trading market, it will include in such application all of the Shares and Warrant Shares, and will take such other action as is necessary to cause all of the Shares and Warrant Shares to be listed on such other trading market as promptly as
possible. The Company will take all action reasonably necessary to continue the listing and trading of its 

  

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Common Stock, including the Shares and Warrant Shares, on Nasdaq and will comply in all material respects with the Company’s reporting, filing and other
obligations under the bylaws or rules of Nasdaq. 
 (h) Board Attendance Rights. The Company shall permit one Representative
(which Representative shall be reasonably acceptable to the Company) to attend regular meetings of the Company’s Board of Directors each year during the period beginning on the date hereof and ending on the earlier to occur of:
(a) December 31, 2013 and (b) the termination of both of the Strategic Alliance Agreements; provided, however, that, at the request of the Board of Directors, the Representative shall excuse himself or herself from such
portions of the Board of Directors meeting that he or she is attending if the Board of Directors reasonably believes it to be necessary so to conduct the Board’s business (i) in order to avoid conflict with the Company’s obligations
to third parties (such as, but not limited to, discussions of proprietary aspects of collaborations with third parties), (ii) discussions of disputes with Purchasers and/or its Associated Companies, and (iii) any other matters in which the
Board of Directors reasonably concludes that the exercise of the fiduciary duties of the Board of Directors requires such Representative to excuse himself or herself. The Company shall provide to the Purchasers’ Representative all notices of
all Board meetings, copies of agendas for all Board meetings prior to such meetings and the minutes for all Board meetings as soon as practicable after the conclusion of any such meeting. The initial Representative of the Purchasers shall be
James J. Dolan. The Purchasers may, from time to time, propose in writing a substitute Representative to the Company, which substitute Representative shall be subject to approval by the Board, which approval shall not be unreasonably withheld, such
approval to be granted or denied promptly after such proposal has been made by the Purchasers, and in any event on or before the next meeting of the Board. 
 (i) Proxy Statement; Special Meeting. The Company shall, within ten (10) Business Days of the Initial Closing Date, file a preliminary proxy statement with the SEC with respect to a special meeting of
shareholders seeking approval for the transactions contemplated by the Second Closing, which shall include the recommendation of the Board that the shareholders approve such transactions. The Company shall use commercially reasonable efforts to hold
a special meeting of its shareholders to vote on such transactions no more than thirty (30) Business Days after the mailing of its definite proxy statement to shareholders, as such time may be extended by adjournments to obtain the requisite
quorum for such meeting and adjournments resulting from the distribution of additional proxy solicitation materials pursuant to Exchange Act Rule 14a-6. 
 7. Conditions Precedent to Second Closing. 
 7.1 Each Party’s Obligations. The obligations
of the Company and the Purchasers to consummate the transactions contemplated to occur at the Second Closing shall be subject to the satisfaction prior to the Second Closing of each of the following conditions, each of which may be waived only if it
is legally permissible to do so: 
 (a) HSR, Shareholder and Other Approvals. Any applicable waiting period under the HSR Act relating
to the transactions contemplated hereby to be consummated at the Second Closing shall have expired or been terminated, the Company shall have received the requisite approval of its holders of Common Stock to the issuance and sale of the Second
Closing Shares 

  

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and Warrants, and all other material authorizations, consents, orders or approvals of, or regulations, declarations or filings with, or expirations of
applicable waiting periods imposed by, any Governmental Entity (including, without limitation, any foreign antitrust filing) necessary for the consummation of the transactions contemplated hereby to be consummated at the Second Closing, shall have
been obtained or filed or shall have occurred. 
 (b) No Litigation, Injunctions, or Restraints. No statute, rule, regulation,
executive order, decree, temporary restraining order, preliminary or permanent injunction or other order enacted, entered, promulgated, enforced or issued by any Governmental Entity or other legal restraint or prohibition preventing the consummation
of the transactions contemplated by this Agreement to be consummated at the Second Closing shall be in effect. 
 7.2 Conditions to the
Obligations of the Company. The obligations of the Company to consummate the transactions contemplated to occur at the Second Closing shall be subject to the satisfaction or waiver thereof prior to the Second Closing of the following condition:

 (a) Representations and Warranties. The representations and warranties of each Purchaser set forth in this Agreement that are
qualified as to materiality shall be true and correct, and those that are not so qualified shall be true and correct in all material respects, as of the time of the Second Closing as though made at and as of such time, except to the extent such
representations and warranties expressly relate to an earlier date (in which case such representations and warranties that are qualified as to materiality shall be true and correct, and those that are not qualified shall be true and correct in all
material respects, on and as of such earlier date). 
 (b) Deliverables. The Purchasers shall have delivered to the Company the items
set forth in Sections 1(b)(v) and (vi). 
 7.3 Conditions to the Obligations of Purchaser. The obligations of the Purchasers to
consummate the transactions contemplated to occur at the Second Closing shall be subject to the satisfaction or waiver thereof prior to the Second Closing of each of the following conditions: 
 (a) Representations and Warranties. The representations and warranties of the Company set forth in this Agreement that are qualified as to
materiality shall be true and correct, and those that are not so qualified shall be true and correct in all material respects, as of the time of the Second Closing as though made at and as of such time, except (i) to the extent such
representations and warranties expressly relate to an earlier date (in which case such representations and warranties that are qualified as to materiality shall be true and correct, and those that are not so qualified shall be true and correct in
all material respects, on and as of such earlier date), or (ii) as set forth in an amended Disclosure Schedule delivered by the Company to the Purchasers. 
 (b) Performance of Obligations of the Company. The Company shall have performed or complied in all material respects (other than such covenants and obligations which are already qualified by a materiality
standard in which case such covenant and agreement shall be performed or complied with exactly as stated) with all obligations and covenants required to be performed or complied with by the Company under this Agreement on or prior to the Second
Closing. 
  

 - 22 - 

 (c) Material Adverse Change. There shall have been no Material Adverse Change with respect to the
Company since the date hereof. 
 (d) Deliverables. The Company shall have delivered to the Purchasers the items set forth in Sections
1(b)(i)-(iv). 
 8. Termination. 
 8.1 Termination. This Agreement may be terminated with respect to the respective obligations of the Company and the Purchasers to sell and purchase the Second Closing Shares and the Warrants and to deliver the other deliverables
contemplated to be delivered at the Second Closing at any time prior to the Second Closing: 
 (a) by mutual written consent of Purchasers
and the Company; or 
 (b) by the Purchasers or the Company if there shall be any statute, law, regulation or rule that makes consummating
the transactions contemplated hereby to be consummated at the Second Closing illegal or if any court or other Governmental Entity of competent jurisdiction shall have issued a judgment, order, decree or ruling, or shall have taken such other action
restraining, enjoining or otherwise prohibiting the consummation of the transactions contemplated hereby to be consummated at the Second Closing and such judgment, order, decree or ruling shall have become final and non-appealable; or 
 (c) by the Purchasers: 
 (i)
if the Second Closing shall not have occurred prior to March 31, 2009, unless such failure to close is because any applicable waiting period under the HSR Act relating to the transactions contemplated hereby to be consummated at the Second
Closing shall not have expired or been terminated as of such date, or 
 (ii) if any of the conditions set forth in
Section 7 shall become impossible to fulfill and shall not have been waived in accordance with the terms of this Agreement. 
 8.2
Effect of Termination. In the event of termination of this Agreement by either the Company or the Purchasers as provided in Section 8.1, the respective obligations of the Company and the Purchasers to sell and purchase the Second Closing
Shares and the Warrants and to deliver the other deliverables contemplated to be delivered at the Second Closing shall forthwith become void and have no effect, without any liability or obligation on the part of the Purchasers or the Company (except
to the extent that such termination results from the willful and material breach by a party of any of its representations, warranties, covenants or agreements set forth in this Agreement applicable to the Second Closing) and the remaining provisions
of this Agreement shall survive such termination and remain in full force and effect. 
  

 - 23 - 

 9. Interpretation; Definitions. 
 (a) For purposes of this Agreement, the following terms shall have the following meanings: 
 “Affiliate” shall have the meaning set forth in Rule 12b-2 under the Exchange Act (as in effect on the date of this Agreement).

 “Agreement” means this Agreement, together with all appendices, exhibits and schedules attached hereto and the Disclosure
Schedule, as the same may be amended or supplemented from time to time, by written agreement of the Company and the Purchasers. 
 “Associated Company” means, as to any Purchaser, any person, firm, trust, partnership, corporation, company or other entity or combination thereof, which directly or indirectly (i) controls a Purchaser, (ii) is
controlled by a Purchaser or (iii) is under common control with a Purchaser. The terms “control” and “controlled” mean ownership of 50% or more, including ownership by trusts with substantially the same beneficial interests,
of the voting and equity rights of such person, firm, trust, partnership, corporation, company or other entity or combination thereof or the power to direct the management of such person, firm, trust, partnership, corporation, company or other
entity or combination thereof. 
 “Business Day” means any day on which banking institutions are open in the City of Boston.

 “Closing” is defined in Section 1(b). 
 “Closing Date” is defined in Section 1(b). 
 “Common Stock” is defined
in the recitals to this Agreement. 
 “Company” is defined in the recitals to this Agreement. 
 “Company Bylaws” is defined in Section 2(a). 
 “Company Charter” is defined in Section 2(a). 
 “Company Intellectual
Property” is defined in Section 2(m). 
 “Company SEC Documents” is defined in Section 2(f). 

“Confidentiality Agreement” means the Mutual Confidential Disclosure Agreement effective August 13, 2008 between the Company and
an Associated Company of the Purchasers. 
 “Contract” is defined in Section 2(c)(i). 
  

 - 24 - 

 “Disclosure Schedule” is defined in Section 2. 
 “Environmental Law” is defined in Section 2(k). 
 “Environmental Permits” is defined in Section 2(k). 
 “Evaluation
Date” is defined in Section 2(q). 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, or
any successor federal statute and the rules and regulations of the SEC promulgated thereunder, all as the same shall be in effect from time to time. 
 “FAAH U.S. Strategic Alliance Agreement” means the Strategic Alliance Agreement dated as of the date hereof with respect to the development and commercialization of certain products in the United States between the Company
and Purdue Pharmaceutical Products L.P. 
 “Future SEC Filings” is defined in Section 6(e). 
 “GAAP” means United States generally accepted accounting principles. 
 “Global Strategic Alliance Agreement” means the Strategic Alliance Agreement as of the date hereof with respect to the development and
commercialization of certain products outside of the United States between the Company and an Associated Company of the Purchasers. 
 “Governmental Entity” is defined in Section 2(c)(ii). 
 “Hazardous Substance” is defined in
Section 2(k). 
 “HSR Act” is defined in Section 2(c)(ii). 
 “Indebtedness” shall mean (a) any liabilities for borrowed money or amounts owed in excess of $100,000 (other than trade accounts
payable incurred in the ordinary course of business), (b) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others, whether or not the same are or should be reflected in the Company’s balance sheet
(or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (c) the present value of any lease payments in excess of $100,000 due
under leases required to be capitalized in accordance with GAAP. 
 “Initial Closing” is defined in Section 1(a).

 “Initial Closing Date” is defined in Section 1(a). 
 “Initial Closing Registrable Shares” is defined in Section 4.1(a). 
  

 - 25 - 

 “Initial Closing Shares” is defined in Section 1(a). 
 “Initial Purchase Price” is defined in Section 1(a). 
 “Intellectual Property” means trademarks, trade names, trade dress, service marks, copyrights, domain names, and similar rights (including registrations and applications to register or renew the
registration of any of the foregoing), patents and patent applications, trade secrets, rights of privacy and publicity, moral rights, and any other similar intellectual property rights. 
 “Intellectual Property License” means any written license, permit, authorization, approval, Contract or consent granted, issued by or
with any Person relating to the use by Company or its Subsidiary of Intellectual Property. 
 “Knowledge of the Company,”
“Knowledge of the Company or its Subsidiary” or any like expression means the actual knowledge of the executive officers and vice presidents of the Company and/or Subsidiary and the knowledge that would be reasonably expected to be
known by such individuals in the ordinary and usual course of the performance of their professional responsibilities to the Company and/or Subsidiary. 
 “Lien” is defined in Section 2(c)(i). 
 “Line of Credit Agreement”
means the Line of Credit Agreement dated as of the date hereof, pursuant to which the Purchasers are agreeing to make loans of up to an aggregate principal amount of $50.0 million to the Company, upon certain conditions contained therein.

 “Material Adverse Change” with respect to the Company and the Subsidiary (taken as a whole) means (i) the
Company’s ongoing Phase III clinical trial of IPI-504 in refractory gastrointestinal stromal tumors shall have been terminated by the Company, the independent data safety monitoring committee for such trial, or the U.S. Food and Drug
Administration on the basis of statistical futility or a significant change in the safety profile of IPI-504 or (ii) the Company’s ongoing Phase I clinical trial of IPI-926 in advanced and/or metastatic solid tumors shall have been
terminated by the Company or the U.S. Food and Drug Administration on the basis of a significant change in the safety profile of IPI-926. 
 “Material Adverse Effect” on or with respect to an entity (or group of entities taken as a whole) means any state of facts, event, change or effect that has had, or would reasonably be expected to have, a material adverse
effect on (a) the results of business, properties, results of operations or financial condition of such entity (or, if with respect thereto, of such group of entities taken as a whole), (b) the ability of such entity (or group of entities)
to consummate the transactions and perform in any material respect on a timely basis its obligations contemplated under the Transaction Documents, or (c) the legality, validity or enforceability of any Transaction Document. 
  

 - 26 - 

 “Material Contract” is defined in Section 2(j)(i). 
 “Maximum Percentage” is defined in Section 5(a). 
 “Nasdaq” means the NASDAQ Stock Market. 
 “Permit” all permits, licenses,
registrations, certificates, orders or approvals from any Governmental Entity. 
 “Permitted Liens” means (a) those
Liens (A) securing debt set forth on Schedule 9, (B) for Taxes not yet due or payable or being contested in good faith and for which adequate reserves have been established in accordance with GAAP, (C) that constitute
mechanics’, carriers’, workmen’s or like liens, liens arising under original purchase price conditional sales contracts and equipment leases with third parties entered into in the ordinary course, (D) Liens incurred or deposits
made in the ordinary course of business consistent with past practice in connection with workers’ compensation, unemployment insurance and social security, retirement and other legislation, (E) easements, covenants, declarations, rights or
way, encumbrances, or similar restrictions in connection with real property owned by the Company or its Subsidiary that do not materially impair the use of such real property by the Company and its Subsidiary, and in the case of Liens described in
clauses (B), (C), (D) or (E) that, individually or in the aggregate, would not have a Material Adverse Effect on the Company and its Subsidiary, taken as a whole; and (b) with respect to Company Intellectual Property, (A) the
joint ownership of any Company Intellectual Property by Company or its Subsidiary, on the one hand, and any other Person(s) (each such Person, a “Co-Owner”), on the other hand, set forth on Schedule 9, (B) licenses under
the Company Intellectual Property granted by Company, its Subsidiary, any Co-Owner or any licensee of the foregoing set forth on Schedule 9 or (C) rights to use Company Intellectual Property granted by the Company or its Subsidiary under
reasonable and customary service agreements, clinical trial agreements, consulting agreements, material transfer agreements and confidentiality agreements entered into in the ordinary course of business. 
 “Person” means any individual, partnership, joint venture, corporation, limited liability company, trust, unincorporated organization,
government or department or agency of a government or other entity. 
 “Purchaser” and “Purchasers” are
defined in the recitals to this Agreement. 
 “Registrable Shares” is defined in Section 4.1(b). 
  

 - 27 - 

 “Registration Statement” means the registration statements on Form S-3 (or any successor
form related to secondary offerings) required to be filed hereunder and any additional registration statements contemplated by Section 4, including (in each case) the prospectus, amendments and supplements to such registration statement or
prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in such registration statement. 
 “Representative” shall mean any director, officer or employee of a Purchaser or an Associated Company. 
 “Rights Agreement” means the Rights Agreement between Discovery Partners International, Inc. (“DPI”), and American Stock
Transfer & Trust Company (“Rights Agent”) dated February 13, 2003, as amended by the First Amendment to Rights Agreement between DPI and Rights Agent dated April 10, 2006. 
 “SEC” means the Securities and Exchange Commission. 
 “Second Amendment to Rights Agreement” is defined in Section 1(a)(v). 
 “Second
Closing” is defined in Section 1(b). 
 “Second Closing Date” is defined in Section 1(b). 
 “Second Closing Purchase Price” is defined in Section 1(b). 
 “Second Closing Registrable Shares” is defined in Section 4.1(b). 
 “Second Closing Shares” is defined in Section 1(b). 
 “Securities” means the Shares, the Warrants and the Warrant Shares. 
 “Securities
Act” means the Securities Act of 1933, as amended, or any successor federal statute, and the rules and regulations of the SEC promulgated thereunder, all as the same shall be in effect from time to time. 
 “Shares” means the Initial Closing Shares and the Second Closing Shares. 
 “Strategic Alliance Agreements” means, collectively, the Global Strategic Alliance Agreement and the FAAH U.S. Strategic Alliance
Agreement. 
 “Subsidiary” means Infinity Discovery, Inc., a wholly-owned subsidiary of the Company. 
 “Transaction Documents” means this Agreement, the Warrants, and any other documents or agreement executed in connection with the
transactions contemplated hereunder. 
  

 - 28 - 

 “Warrants” is defined in Section 1(b). 
 “Warrant Shares” is defined in Section 2(l). 
 (b) The definitions of the terms herein apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun will include the corresponding masculine, feminine and neuter
forms. The words “include”, “includes” and “including” will be deemed to be followed by the phrase “without limitation.” Unless the context requires otherwise, (A) any definition of or reference to any
agreement, instrument or other document herein will be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments,
supplements or modifications set forth herein or therein), (B) any reference to any laws or regulations herein will be construed as referring to such laws and regulations as from time to time enacted, repealed or amended, (C) any reference
herein to any Person will be construed to include the Person’s successors and assigns, (D) the words “herein”, “hereof” and “hereunder”, and words of similar import, will be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (E) any reference herein to the words “mutually agree” or “mutual written agreement” will not impose any obligation on either party to agree to any terms
relating thereto or to engage in discussions relating to such terms except as such party may determine in such party’s sole discretion, and (F) all references herein to Sections, Exhibits or Schedules will be construed to refer to
Sections, Exhibits and Schedules of this Agreement. 
 10. Miscellaneous 
 10.1 Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated. It is hereby stipulated and declared to be
the intention of the parties that they would have executed the remaining terms, provisions, covenants, and restrictions without including any of such which may be hereafter declared invalid, void or unenforceable. 
 10.2 Specific Enforcement. The Purchasers, on the one hand, and the Company, on the other, acknowledge and agree that irreparable damage would
occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to
prevent breaches of the provisions hereof in any court of the United States or any state thereof having jurisdiction, this being in addition to any other remedy to which they may be entitled at law or equity. 
 10.3 Entire Agreement. This Agreement, the Warrant, the Strategic Alliance Agreements, and the Line of Credit Agreement contain the entire
understanding of the parties and their Associated Companies with respect to the transactions contemplated hereby. 
  

 - 29 - 

 10.4 Counterparts. This Agreement may be executed in one or more counterparts, each of which, when
so executed and delivered, shall be considered to be an original, and all of which counterparts, taken together, will constitute one and the same instrument even if the parties have not executed the same counterpart. Signatures provided by facsimile
or electronic transmission will be deemed to be original signatures. 
 10.5 Notices. All notices and other communications required or
permitted under this Agreement shall be in writing and addressed to the Company or the Purchasers, as the case may be, at their respective addresses set forth below: 
 If to the Company: 
 Infinity Pharmaceuticals, Inc. 
 780 Memorial Drive 
 Cambridge, Massachusetts
02139 
 Attn: Adelene Q. Perkins, President 
 Telephone (617) 453-1000 
 Facsimile: (617) 453-1001 
 With copies to: 
 Infinity Pharmaceuticals,
Inc. 
 780 Memorial Drive 
 Cambridge, Massachusetts 02139 
 Attn: Gerald E. Quirk, Esq., General Counsel 
 Telephone (617) 453-1000 
 Facsimile:
(617) 453-1001 
 and to 
 Wilmer Cutler Pickering Hale and Dorr LLP 
 60 State Street 
 Boston, Massachusetts 01209 
 Attn: Steven D.
Singer, Esq. 
 Telephone (617) 526-6000 
 Facsimile: (617) 526-5000 
 If to Purchaser, at the address set forth on Schedule A-1 hereto.

 With copies to: 
 Chadbourne & Parke LLP 
 30 Rockefeller Plaza 
 New York, New York 10112 
 Attn: Stuart D. Baker 
 Telephone (212) 408-5100 
 Facsimile:
(212) 541-5369 
  

 - 30 - 

 All notices and other communications required or permitted under this Agreement shall be effective upon the earlier of
actual receipt thereof by the person to whom notice is directed or (a) in the case of notices and communications sent by personal delivery or telecopy, one Business Day after such notice or communication arrives at the applicable address or was
successfully sent to the applicable telecopy number, (b) in the case of notices and communications sent by overnight delivery service, at noon (local time) on the second Business Day following the day such notice or communications was delivered
to such delivery service, and (c) in the case of notices and communications sent by United States mail, three days after such notice or communication shall have been deposited in the United States mail. Any notice delivered to a party hereunder
shall be sent simultaneously, by the same means, to such party’s counsel as set forth above. 
 10.6 Amendments. This Agreement
may be amended as to the Purchasers and their successors and assigns (determined as provided in Section 10.7), and the Company may take any action herein prohibited, or omit to perform any act required to be performed by it, if the Company
shall obtain the written consent of the Purchasers. This Agreement may not be waived, changed, modified, or discharged orally, but only by an agreement in writing signed by the party or parties against whom enforcement of any waiver, change,
modification or discharge is sought or by parties with the right to consent to such waiver, change, modification or discharge on behalf of such party. 
 10.7 Successors and Assigns. All covenants and agreements contained herein shall bind and inure to the benefit of the parties hereto and their respective successors and assigns. This Agreement, and the rights
and obligations of the Purchasers hereunder, may be assigned by a Purchaser to (a) any person or entity to which Securities are transferred by such Purchaser, or (b) to any Associated Company of such Purchaser, and, in each case, such
transferee shall be deemed a “Purchaser” for purposes of this Agreement; provided that such assignment of rights shall be contingent upon the transferee providing a written instrument to the Company notifying the Company of
such transfer and assignment and agreeing in writing to be bound by the terms of this Agreement. 
 10.8 Expenses and Remedies.
Whether or not the Closing takes place, all costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be borne by the party incurring such expense. 
 10.9 Transfer of Securities. Each Purchaser understands and agrees that the Securities have not been registered under the Securities Act or the
securities laws of any state and that they may only be sold or otherwise disposed of in compliance with state and federal securities laws. Each Purchaser understands and agrees that each certificate representing the Securities (other than Securities
which have been transferred in a transaction registered under the Securities Act or exempt from the registration requirements of the Securities Act pursuant to Rule 144 thereunder or any similar rule or regulation) shall bear the following legend:

 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF
ANY STATE 

  

 - 31 - 

 
AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR AN
APPLICABLE EXEMPTION TO THE REGISTRATION REQUIREMENTS OF SUCH ACT OR SUCH LAWS.” 
 and such Purchaser agrees to transfer the Securities only in
accordance with the provisions of such legend. The foregoing legend shall be removed from any Securities or from the certificates representing such Securities, at the request of the holder thereof, at such time as they become eligible for resale
pursuant to an effective Registration Statement or Rule 144. Notwithstanding the foregoing and subject to compliance with any applicable securities laws, Purchasers may sell, transfer, assign, pledge or otherwise dispose of the Securities, in
whole or in part, to any of its Associated Companies or the Company. Subject to compliance with any applicable securities laws and the conditions set forth in this Section 10.9, if a Purchaser wishes to transfer Securities, at such
Purchaser’s request, and subject to the delivery by such Purchaser of such documentation as may be reasonably requested by the Company or its counsel, the Company shall cause its counsel to issue a legal opinion to the Company’s transfer
agent if required by the Company’s transfer agent to effect a transfer of any of the Securities. 
 10.10 Governing Law. This
Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York without regard to choice of law and conflicts of law principles. 
 10.11 Publicity. The Company and the Purchasers will consult and cooperate with each other before issuing, and provide each other the opportunity
to review and comment upon, any press release or otherwise making any public statement with respect to the transactions contemplated by this Agreement. 
 10.12 No Third Party Beneficiaries. Nothing contained in this Agreement is intended to confer upon any Person other than the parties hereto and their respective successors and permitted assigns, any benefit,
right or remedies under or by reason of this Agreement. 
 10.13 Consent to Jurisdiction. The Company and each Purchaser irrevocably
submits to the personal exclusive jurisdiction of the United States District Court for the District of New York for the purposes of any suit, action or other proceeding arising out of this Agreement or any transaction contemplated hereby (and, to
the extent permitted under applicable rules of procedure, agrees not to commence any action, suit or proceeding relating hereto except in such court). The Company and each Purchaser further agrees that service of any process, summons, notice or
document hand delivered or sent by registered mail to such party’s respective address set forth in Section 10.5 will be effective service of process for any action, suit or proceeding in New York with respect to any matters to which it has
submitted to jurisdiction as set forth in the immediately preceding sentence. The Company and each Purchaser irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising out of this Agreement
or the transactions contemplated hereby in the United States District court for the District of New York, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in such court that any such action, suit or
proceeding brought in such court has been brought in an inconvenient forum. 
 [Signature Pages
Follow] 
  

 - 32 - 

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

  

			
	INFINITY PHARMACEUTICALS, INC.
		
	By:	 	 /s/    Adelene Q. Perkins

	Name:	 	Adelene Q. Perkins
	Title:	 	President and Chief Business Officer
	
	 PURDUE PHARMA L.P.

		
	By:	 	 Purdue Pharma Inc., its general partner

		
	By:	 	 /s/    Edward B. Mahony

		 	Executive V.P. and Chief Financial Officer
	
	 PURDUE PHARMACEUTICAL PRODUCTS L.P.

		
	By:	 	Purdue Pharmaceutical Products, Inc., its general partner
		
	By:	 	 /s/    Edward B. Mahony

		 	Executive V.P. and Chief Financial Officer

  

 - 33 - 

 SCHEDULE A-1 
 LIST OF PURCHASERS AND SECURITIES PURCHASED AT INITIAL CLOSING 
  

						
	 Purchaser
	  	Shares of
Common Stock	  	Initial Purchase Price
	 Purdue Pharma L.P.
 One Stamford Forum
 201 Tresser Blvd.
 Stamford, CT 06901-3431, USA
	  	2,000,000	  	$	22,500,000
			
	 Purdue Pharmaceutical Products L.P.
 One Stamford Forum
 201 Tresser Blvd.
 Stamford, CT 06901-3431, USA
	  	2,000,000	  	$	22,500,000
		  	 	  	 	 
	 Total:
	  	4,000,000	  	$	45,000,000

  

 - 34 - 

 SCHEDULE A-2 
 LIST OF PURCHASERS AND SECURITIES PURCHASED AT SECOND CLOSING 
  

									
	 Purchaser
	  	Shares of
Common Stock	  	Warrants to Purchase
Common Stock	 	 	Second
Closing
Purchase
Price
	 Purdue Pharma L.P.
 One Stamford Forum
 201 Tresser Blvd.
 Stamford, CT 06901-3431, USA
	  	1,000,000	  	3,000,000	(1)	 	$	15,000,000
				
	 Purdue Pharmaceutical Products L.P.
 One Stamford Forum
 201 Tresser Blvd.
 Stamford, CT 06901-3431, USA
	  	1,000,000	  	3,000,000	(1)	 	$	15,000,000
		  	 	  	 	 	 	 	 
	 Total:
	  	2,000,000	  	6,000,000	 	 	$	30,000,000

  

	(1)	At the Second Closing, each Purchaser will receive Warrants exercisable for: (a) 500,000 shares, (b) 1,000,000 shares, and (c) 1,500,000 shares, of Common Stock,
respectively, the exercise terms of which are further described in Schedule B to the Agreement. 

  

 - 35 - 

 SCHEDULE B 
 WARRANT EXERCISE TERMS 
 At the Second Closing, each Purchaser shall receive three Warrants, as follows:

  

										
	 	  	First Warrants	  	Second Warrants	  	Third Warrants
	 Warrant Exercise Date
	  	Exercise Price for
Warrants to Purchase

an Aggregate of
500,000 Shares;
Expires 7/1/10	  	Exercise Price for
Warrants to Purchase

an Aggregate of
1,000,000 Shares;
Expires 7/1/11	  	Exercise Price for
Warrants to Purchase

an Aggregate of
1,500,000 Shares;
Expires 7/2/12
	Second Closing Date	  	$	15	  	$	20	  	$	30
	4/1/09	  	$	15	  	$	20	  	$	30
	7/1/09	  	$	15	  	$	20	  	$	30
	10/1/09	  	$	16.25	  	$	20	  	$	30
	1/4/10	  	$	17.50	  	$	20	  	$	30
	4/1/10	  	$	18.75	  	$	20	  	$	30
	7/1/10	  	$	20	  	$	20	  	$	30
	10/1/10	  			  	$	22.50	  	$	30
	1/3/11	  			  	$	25	  	$	30
	4/1/11	  			  	$	27.50	  	$	30
	7/1/11	  			  	$	30	  	$	30
	10/3/11	  			  			  	$	32.50
	1/3/12	  			  			  	$	35
	4/2/12	  			  			  	$	37.50
	7/2/12	  			  			  	$	40

  

	NOTE:	The above exercise prices are subject to adjustment to take into account any adjustments set forth in Section 2 of the form Warrant occurring between the date of this Agreement
and the issuance of the Warrant. 

  

 - 36 - 

 SCHEDULE 5(b) 
 PURCHASERS AGGREGATE COMMON STOCK OWNERSHIP LEVEL 
  

				
	 Warrant Exercise
	  	Ownership Level	 
	 If the Purchasers have not exercised any of the Warrants
	  	20.0	%
	 If the Purchasers have exercised the aggregate First Warrants
	  	22.6	%
	 If the Purchasers have exercised the aggregate Second Warrants, but not the First Warrants
	  	25.0	%
	 If the Purchasers have exercised the aggregate First Warrants and the Second Warrants
	  	27.3	%
	 If the Purchasers have exercised the Third Warrants, but not the First and Second Warrants
	  	27.3	%
	 If the Purchasers have exercised the aggregate First and Third Warrants, but not the Second Warrants
	  	29.4	%
	 If the Purchasers have exercised the aggregate Second and Third Warrants, but not the First Warrants
	  	31.4	%
	 If the Purchasers have exercised the aggregate First, Second and Third Warrants
	  	33.3	%

  

 - 37 - 

 EXHIBIT A 
 SECOND AMENDMENT TO RIGHTS AGREEMENT 
 INFINITY PHARMACEUTICALS, INC. 
 SECOND AMENDMENT TO RIGHTS AGREEMENT 
 This Second Amendment to Rights Agreement (this “Amendment”) is made as of November 19, 2008 between Infinity Pharmaceuticals, Inc., a Delaware corporation (formerly known as Discovery Partners International, Inc. (the
“Company”)), and American Stock Transfer & Trust Company, LLC (formerly known as American Stock Transfer & Trust Company, as rights agent (the “Rights Agent”)). 
 WHEREAS, the Company and the Rights Agent entered into that certain Rights Agreement, dated as of February 13, 2003 (the “Rights
Agreement”); 
 WHEREAS, the Company and the Rights Agent entered into that certain First Amendment of Rights Agreement dated as of
April 10, 2006 (the “First Amendment”); and 
 WHEREAS, the Company and the Rights Agent wish to further amend the Rights
Agreement, as amended by the First Amendment, as provided below. 
 NOW, THEREFORE, in consideration of the foregoing premises and the mutual
covenants and conditions set forth below, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties to this Amendment hereby agree as follows: 
 1. Further Amendment of Rights Agreement. 
 1.1 That the definition of “Acquiring Person” set forth in Section 1(a) of the Rights Agreement be amended to read in its entirety as follows: 
 “Acquiring Person” shall mean any Person (as such term is hereinafter defined) who or which, together with all Affiliates and Associates (as
such terms are hereinafter defined) of such Person, shall be the Beneficial Owner (as such term is hereinafter defined) of 15% or more of the shares of Common Stock of the Company then outstanding, but shall not include: 
 (1) the Company, any Subsidiary (as such term is hereinafter defined) of the Company, any employee benefit plan of the Company or any Subsidiary of the
Company, or any entity holding shares of Common Stock of the Company for or pursuant to the terms of any such plan; 
 (2) the Purchasers (as
such term is defined in that certain Securities Purchase Agreement, dated as of November 19, 2008, between the Company and the Purchasers named therein (the “Securities Purchase Agreement”)) and any of their Associated Companies (as
defined below) (such Purchasers and their Associated Companies referred to herein collectively as the “Investment Group”) solely with respect to: 
 (A) An aggregate of (a) four million (4,000,000) shares of Common Stock representing the Initial Closing Shares (as defined below) and (b) two million (2,000,000) shares of Common Stock
representing the Second Closing Shares (as defined below), in each case issued to the Purchasers pursuant to Sections 1(a) and 1(b), respectively, of the Securities Purchase Agreement; 
  

 - 38 - 

 (B) Up to an additional two million four hundred thousand (2,400,000) shares of Common Stock
acquired by the Investment Group after the Second Closing Date (as defined below) in open market purchase transactions and/or privately negotiated acquisitions, other than pursuant to a Make Whole Acquisition (as defined in paragraph
(D) below); 
 (C) Up to an additional six million (6,000,000) shares of Common Stock issuable upon exercise of the Warrants (as
defined below) acquired by the members of the Investment Group pursuant to Section 1(b) of the Securities Purchase Agreement; and 
 (D)
the Investment Group solely as a result of the exercise of their rights described in the following sentence to make one or more Make Whole Acquisitions. If on or after the Initial Closing Date (as defined below) the Company issues shares of Common
Stock or issues Common Stock upon conversion or exercise of securities convertible or exercisable into shares of Common Stock other than pursuant to the Securities Purchase Agreement, such additional shares of Common Stock as may be acquired in open
market purchases and/or privately negotiated acquisitions from time to time by members of the Investment Group as may be required to maintain the Investment Group’s Common Stock ownership percentage as set forth in Schedule 5(b) of the
Securities Purchase Agreement (each a “Make Whole Acquisition”); provided that any such Make Whole Acquisition only occurs during the period commencing upon the Second Closing Date and ending on the earlier to occur of
(x) December 31, 2013 and (y) the termination of the Strategic Alliance Agreements, as such term is defined in the Securities Purchase Agreement; 
 Subject to Section 1.1(4) below and notwithstanding anything contained in clauses (A) through (D) above, in no event shall the total amount of Common Stock beneficially owned by the members of the Investment Group exceed
33.3% of the Company’s then current Fully-Diluted Common Outstanding (as defined below). 
 (3) any Person who, alone or together with
all Affiliates and Associates of such Person, was, at the time of the announcement by the Company of the declaration by its board of directors on February 13, 2003 of the dividend distribution of the Rights, the Beneficial Owner of 15% or more
of the Common Stock of the Company then outstanding, unless and until such time as such Person or any Affiliate or Associate of such Person becomes the Beneficial Owner of any additional shares of Common Stock (other than as a result of a stock
dividend, stock split or similar transaction effected by the Company in which all holders of Common Stock are treated equally); and 
 (4)
any Person that the board of directors of the Company in good faith determines has become an “Acquiring Person” inadvertently, and such Person has divested or divests as promptly as practicable a sufficient number of shares of Common Stock
so that such Person would no longer be an “Acquiring Person” hereunder. Furthermore, notwithstanding anything stated in Section 1.1 of this Amendment to the contrary, no Person shall become an “Acquiring Person” as a result
of (i) an acquisition of Common Stock by the Company or (ii) in the case of 

  

 - 39 - 

 
the Investment Group, the exercise or cancellation of outstanding securities that are exercisable, convertible or exchangeable for shares of Common Stock
(including but not limited to outstanding options and warrants to purchase Common Stock), which, as a result of reducing the number of shares of Fully-Diluted Common Outstanding, increases the proportionate number of shares beneficially owned by
such person to 15% or more of the shares of Common Stock then outstanding (or, in the case of the Investment Group, more than 33.3% of the Company’s then current Fully-Diluted Common Outstanding); provided, however, that if a Person shall
become the Beneficial Owner of 15% or more of the shares of Common Stock then outstanding (or, in the case of the Investment Group, more than 33.3% of the Company’s then current Fully-Diluted Common Outstanding) as a result of (i) the
acquisition of shares of Common Stock by the Company (as described in the immediately preceding clause) or (ii) in the case of the Investment Group, the exercise or cancellation of outstanding securities that are exercisable, convertible or
exchangeable for shares of Common Stock (including but not limited to outstanding options and warrants to purchase Common Stock) and shall thereafter become the Beneficial Owner of any additional shares of Common Stock (other than as a result of a
stock dividend, stock split or similar transaction effected by the Company in which all holders of Common Stock are treated equally), then such Person shall be deemed to be an “Acquiring Person” hereunder. 
 All references herein to numbers of shares of Common Stock or Fully-Diluted Common Outstanding shall be subject to adjustment for any stock split, reverse stock split,
stock dividend, reclassification, recapitalization or other similar change to the Common Stock. 
 For purposes of this definition of “Acquiring
Person,” (i) “Fully-Diluted Common Outstanding” shall mean the number of then issued and outstanding shares of Common Stock together with all shares of Common Stock issuable upon the exercise or conversion, as applicable, of all
exercisable or convertible securities of the Company then outstanding and (ii) the terms “Associated Companies,” “Initial Closing Date,” “Initial Closing Shares,” “Second Closing Date,” “Second
Closing Shares” and “Warrants” shall have the meanings given them in the Securities Purchase Agreement. 
 1.2 That
Section 35 of the Right Agreement, as amended, be deleted. 
 2. No Other Amendment. Except as provided in this Amendment, the Rights Agreement,
as amended, shall remain in full force and effect without any modification. The Company will not enter into any further amendment to the Rights Agreement that would allow a claim to be made or enforced by the Company that the Investment Group is an
“Acquiring Person” for purposes of the Rights Agreement or otherwise deemed to trigger the provisions of the Rights Agreement provided that the Investment Group is in compliance with Section 1.1 of this Amendment. By executing below,
the Company certifies that this Amendment has been executed and delivered in compliance with the terms of Section 27 of the Rights Agreement. This Amendment shall become effective when executed and delivered by the Company and the Rights Agent
as provided in Section 27 of the Rights Agreement and shall be irrevocable. 
 3. Counterparts. This Amendment may be executed in counterparts,
each of which shall constitute an original and all of which, when taken together, shall constitute one agreement. 
  

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 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 - 41 - 

 The foregoing Amendment is hereby executed as of the date first above written. 
  

			
	THE COMPANY
	
	INFINITY PHARMACEUTICALS, INC.
		
	By:	 	 /s/    Adelene Q. Perkins

	Name:	 	Adelene Q. Perkins
	Title:	 	President and Chief Business Officer
	
	THE RIGHTS AGENT
	
	 AMERICAN STOCK TRANSFER & TRUST
 COMPANY, LLC

		
	By:	 	 /s/    Herbert J. Lemmer

	Name:	 	Herbert J. Lemmer
	Title:	 	Vice President

  

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 EXHIBIT B 
 FORM OF WILMERHALE OPINION 
                     , 2008 
 To the Purchasers
Named on  
 Schedule A attached hereto 
  

	Re:	Infinity Pharmaceuticals, Inc. 

 Ladies and Gentlemen: 

This opinion is being furnished pursuant to Section [1(a)(vi)/1(b)(ii)] of the Securities Purchase Agreement, dated as of November __, 2008 (the
“Agreement”), by and between Infinity Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and each of the parties identified in the Agreement as a “Purchaser” (each of whom is named on Schedule A
attached hereto (collectively, the “Purchasers” and individually, a “Purchaser”)). Capitalized terms used herein and not otherwise defined shall have the respective meanings ascribed to them in the Agreement. 
 We have acted as counsel to the Company in connection with the preparation, execution and delivery of the Agreement. As such counsel, we have examined
and are familiar with and have relied upon the following documents: 
  

	 	(a)	the Restated Certificate of Incorporation, as in effect on the date hereof (the “Charter”), and the Amended and Restated By-laws, as amended and in effect on the date
hereof (the “By-laws”), of the Company; 

  

	 	(b)	a Certificate of the Secretary of State of the State of Delaware, dated November __, 2008, attesting to the continued legal existence and corporate good standing of the Company in
Delaware (the “Company Domestic Certificate”); 

  

	 	(c)	a Certificate of the Secretary of State of the Commonwealth of Massachusetts, dated November __, 2008, attesting to the good standing and due qualification of the Company to
transact business in Massachusetts (the “Company Foreign Qualification Certificate”); 

  

	 	(d)	a Certificate of the Secretary of State of the State of Delaware, dated November __, 2008, attesting to the continued legal existence and corporate good standing of Infinity
Discovery, Inc. (the “Subsidiary”) in Delaware (the “Subsidiary Domestic Certificate”); 

  

	 	(e)	a Certificate of the Secretary of State of the Commonwealth of Massachusetts, dated November __, 2008, attesting to the good standing and due qualification of the Subsidiary to
transact business in Massachusetts (the “Subsidiary Foreign Qualification Certificate”); 

  

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 To the Purchasers Named on 
     Schedule A attached hereto 
 November __, 2008 
 Page 2 
  

	 	(f)	the Agreement; 

  

	 	(g)	the Strategic Alliance Agreements; 

  

	 	(h)	[For Second Closing opinion only: the Warrants;] and 

  

	 	(i)	a Secretary’s Certificate from the Company, dated as of the date hereof, attesting to the Company’s Charter and By-laws, certain resolutions adopted by the Board of
Directors [for Second Closing opinion only: and stockholders] of the Company, and the incumbency of certain officers of the Company. 

 In our examination of the documents described above, we have assumed the genuineness of all signatures, the legal capacity of all individual signatories, the completeness of all corporate and stock records provided to
us, the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as copies, and the authenticity of the originals of such latter documents. 
 In rendering this opinion, we have relied, as to all questions of fact material to this opinion, upon certificates of public officials and officers of
the Company and upon the representations and warranties made by the Purchasers and the Company in the Agreement. We have not attempted to verify independently such facts. We have not conducted a search of any electronic databases or the dockets of
any court, administrative or regulatory body, agency or other filing office in any jurisdiction. 
 For purposes of this opinion, we have
assumed that the Agreement has been duly authorized, executed and delivered by all parties thereto other than the Company, and that all such other parties have all requisite power and authority to effect the transactions contemplated by the
Agreement. We have also assumed that the Agreement is the valid and binding obligation of each party thereto other than the Company and is enforceable against such other parties in accordance with its terms. We do not render any opinion as to the
application of any federal or state law or regulation to the power, authority or competence of any party to the Agreement other than the Company. 
 For purposes of this opinion we have assumed that the Board of Directors of the Company has complied with its fiduciary duties in connection with the transactions contemplated by the Agreement. 
 Our opinions set forth below are qualified to the extent that they may be subject to or affected by (i) applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent 

  

 - 44 - 

 To the Purchasers Named on 
     Schedule A attached hereto 
 November __, 2008 
 Page 3 
  
 
conveyance or similar laws relating to or affecting the rights of creditors generally, (ii) statutory or decisional law concerning recourse by creditors
to security in the absence of notice or hearing, (iii) duties and standards imposed on creditors and parties to contracts, including, without limitation, requirements of good faith, reasonableness and fair dealing, and (iv) general
equitable principles. We express no opinion as to the availability of any equitable or specific remedy upon any breach of any of the agreements as to which we are opining herein, or any of the agreements, documents or obligations referred to
therein, or to the successful assertion of any equitable defenses, inasmuch as the availability of such remedies or the success of any equitable defense may be subject to the discretion of a court. We are expressing no opinion herein as to the
enforceability of Section 4.5 of the Agreement. We are expressing no opinion herein with respect to compliance by the Company with state securities or “blue sky” laws, or with any state or federal securities antifraud laws.

 We also express no opinion herein as to any provision of any agreement (a) which may be deemed to or construed to waive any right of
the Company, (b) to the effect that rights and remedies are not exclusive, that every right or remedy is cumulative and may be exercised in addition to or with any other right or remedy and does not preclude recourse to one or more other rights
or remedies, (c) relating to the effect of invalidity or unenforceability of any provision of the Agreement on the validity or enforceability of any other provision thereof, (d) requiring the payment of penalties, consequential damages or
liquidated damages, (e) which is in violation of public policy, including, without limitation, any provision relating to non-competition and non-solicitation or relating to indemnification and contribution with respect to securities law
matters, (f) purporting to indemnify any person against his, her or its own negligence or intentional misconduct, (g) which provides that the terms of the Agreement may not be waived or modified except in writing or (h) relating to
consent to jurisdiction. 
 Our opinions expressed in paragraph 1 below, insofar as they relate to the valid existence, due
qualification and good standing of the Company, are based solely on the Company Domestic Certificate and the Company Foreign Qualification Certificate and are limited accordingly, and, as to such matters, our opinions are rendered as of the
respective dates of such certificates. Our opinions expressed in paragraph 1 below, insofar as they relate to the valid existence, due qualification and good standing of the Subsidiary, are based solely on the Subsidiary Domestic Certificate
and the Subsidiary Foreign Qualification Certificate and are limited accordingly, and, as to such matters, our opinions are rendered as of the respective dates of such certificates. We express no opinion as to the tax good standing of the Company or
the Subsidiary in any jurisdiction. 
 For purposes of our opinions in paragraphs 5 and 6 below, we have relied upon representations made by
the Purchasers in Section 3 of the Agreement, and have assumed 

  

 - 45 - 

 To the Purchasers Named on 
     Schedule A attached hereto 
 November __, 2008 
 Page 4 
  
 
(without any independent investigation) the accuracy of such representations. For purposes of our opinions in paragraphs 5 and 6 below, we have also assumed
that in connection with the offer and sale of securities to the Purchasers, neither the Company nor any person acting on its behalf has engaged in any form of “general solicitation or general advertising” within the meaning contemplated by
Rule 502 (c) of Regulation D. 
 We are opining herein solely as to the state laws of the State of New York, the statutes codified as 8
Del. C. §§101-398 and known as the General Corporation Law of the State of Delaware (the “DGCL Statute”) and the federal laws of the United States of America. To the extent that any other laws govern any of the matters as to
which we are opining below, we have assumed, with your permission and without independent investigation, that such laws are identical to the state laws of the State of New York, and we express no opinion as to whether such assumption is reasonable
or correct. 
 For purposes of our opinions rendered below, we have assumed that the facts and law governing the future performance by the
Company of its obligations under the Agreement will be identical to the facts and law governing its performance on the date of this opinion. 
 Based upon
and subject to the foregoing, we are of the opinion that: 
  

	 	1.	The Company is a corporation validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to conduct its
business as it is, to our knowledge, currently conducted, to enter into and perform its obligations under the Agreement, and to carry out the transactions contemplated by the Agreement. The Company is duly qualified to do business and is in good
standing in the Commonwealth of Massachusetts. The Subsidiary is a corporation validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to conduct its business as it is, to our
knowledge, currently conducted. The Subsidiary is duly qualified to do business and is in good standing in the Commonwealth of Massachusetts. 

  

	 	2.	The authorized capital stock of the Company consists of 100,000,000 shares of Common Stock and 1,000,000 shares of Preferred Stock, $0.001 par value per share.

  

	 	3.	 The [Initial Closing/Second Closing] Shares have been duly authorized by all necessary corporate action on the part of the Company, and the [Initial Closing/Second
Closing] Shares, when issued, sold and delivered against payment 

  

 - 46 - 

 To the Purchasers Named on 
     Schedule A attached hereto 
 November __, 2008 
 Page 5 
  
 
therefor in accordance with the provisions of the Agreement, will be duly and validly issued, fully paid and non-assessable. [For Second Closing opinion
only: The Warrants have been duly authorized by all necessary corporate action on the part of the Company; and the Warrants, when issued, sold and delivered against payment therefor in accordance with the provisions of the Agreement, will be
duly and validly issued, fully paid and non-assessable. The Warrant Shares have been duly authorized or reserved for issuance by all necessary corporate action on the part of the Company; and the Warrant Shares, when issued, sold and delivered
against payment therefor upon exercise of, and in accordance with the provisions of, the Warrants, will be duly and validly issued, fully paid and non-assessable.] 
  

	 	4.	The execution and delivery by the Company of the Agreement [For Second Closing opinion only: and the Warrants], and the consummation by the Company of the transactions
contemplated thereby, have been duly authorized by all necessary corporate action on the part of the Company, and the Agreement [For Second Closing opinion only: and the Warrants] [has][have] been duly executed and delivered by the Company.
The Agreement constitutes the valid and binding obligation of the Company, enforceable against the Company in accordance with its terms. [For Second Closing opinion only: Each of the Agreement and the Warrants constitutes the valid and
binding obligation of the Company, enforceable against the Company in accordance with its respective terms.] 

  

	 	5.	The execution and delivery by the Company of the Agreement [For Second Closing only: and the Warrants], and the consummation by the Company of the transactions contemplated
thereby, do not and will not (a) violate the provisions of any U.S. federal or New York or Massachusetts state law, rule or regulation of any governmental authority, to which the Company is subject, or by which any property or asset of the
Company is bound or affected; (b) violate the provisions of the Company’s Charter or By-laws; (c) violate any judgment, decree, order or award of any court, governmental body or arbitrator specifically naming the Company of which we
are aware; or (d) with or without notice and/or the passage of time, conflict with or result in the breach or termination of any term or provision of, or constitute a default under, or cause any acceleration under, or cause the creation of any
lien, charge or encumbrance upon the properties or assets of the Company pursuant to, any agreement to which the Company is a party and which is listed as on Schedule B hereto. 

  

	 	6.	 Based in part on the representations of each of the Purchasers in Section 3 of the Agreement, the offer, issuance and sale of the [Initial Closing/Second
Closing] 

  

 - 47 - 

 To the Purchasers Named on 
     Schedule A attached hereto 
 November __, 2008 
 Page 6 
  
 
Shares pursuant to the Agreement are exempt from registration under the Securities Act of 1933, as amended. [For Second Closing opinion only: Based in
part on the representations of each of the Purchasers in Section 3 of the Agreement, the offer, issuance and sale of the Warrants pursuant to the Agreement, and the Warrant Shares are exempt from registration under the Securities Act of 1933,
as amended.] 
  

	 	7.	The issuance of the Shares [For Second Closing opinion only: the Warrants, and the Warrant Shares] will not be subject to any preemptive or similar statutory rights under the
DGCL Statute, the Company’s Charter or By-Laws, or similar contractual rights granted by the Company (except for such contractual rights as have been waived) pursuant to any contract or agreement to which the Company is a party and which is
listed on Schedule B hereto. 

  

	 	8.	Assuming the accuracy of the representations of the Purchasers in Section 3 of the Agreement, no approval or consent of, or registration or filing with, any court or
governmental agency or body is required to be obtained or made by the Company under applicable law in connection with the execution, delivery and performance of the Agreement [For Second Closing opinion only: and the Warrants], except
(a) such as have been obtained for any state “blue sky filings,” (b) a Form D to be filed pursuant to the Securities Act, or (c) any other such filings that may be required by the terms of the Agreement or required or
permitted to be made after the date hereof under applicable federal and state securities laws or as required by the rules and regulations of the NASDAQ Global Market. 

  

	 	9.	The Company is not, and as a result of and immediately upon [Initial Closing/Second Closing] will not be an “investment company” within the meaning of the Investment
Company Act of 1940, as amended. 

 This opinion is provided to the Purchasers as a legal opinion only and not as a guaranty or
warranty of the matters discussed herein. This opinion is based upon currently existing statutes, rules, regulations and judicial decisions and is rendered as of the date hereof, and we disclaim any obligation to advise you of any change in any of
the foregoing sources of law or subsequent developments in law or changes in facts or circumstances which might affect any matters or opinions set forth herein. 
 This opinion is rendered only to the Purchasers and is solely for the benefit of the Purchasers in connection with the transactions contemplated by the Agreement. This opinion may not be relied upon by the Purchasers
for any other purpose, nor may this opinion be 

  

 - 48 - 

 To the Purchasers Named on 
     Schedule A attached hereto 
 November __, 2008 
 Page 7 
  
 
provided to, quoted to or relied upon by any other person or entity for any purpose without our prior written consent. 
  

			
	 Very truly yours,
  
 Wilmer Cutler Pickering Hale and Dorr LLP

		
	By:	 	 
		 	______________________, a Partner

  

 - 49 - 

 Schedule A 
 Name and Address of Purchasers 
 Purdue Pharma L.P. 
 One Stamford Forum 
 201 Tresser Blvd. 
 Stamford, CT 06901-3431 
 USA 
  
  
 Purdue Pharmaceutical Products L.P. 
 One Stamford Forum 
 201 Tresser Blvd. 
 Stamford, CT 06901-3431 
 USA 
  

 - 50 - 

 To the Purchasers Named on 
     Schedule A attached hereto 
 November __, 2008 
 Page 9 
  
 Schedule B

 Agreements 
 Rights Agreement
between Infinity Pharmaceuticals, Inc. and American Stock Transfer & Trust Company dated February 13, 2003 
 First Amendment to Rights
Agreement between Infinity Pharmaceuticals, Inc. and American Stock Transfer & Trust Company dated April 11, 2006 
 License Agreement by and
between Infinity Discovery, Inc. and Amgen, Inc. dated as of July 7, 2006 
 Collaboration and Option Agreement by and between Infinity Discovery, Inc.
and Novartis International Pharmaceutical Ltd. dated as of November 16, 2004 
 Collaboration Agreement by and between Infinity Discovery, Inc. and
Novartis Institutes for BioMedical Research, Inc. dated as of February 24, 2006 
 Collaboration and License Agreement by and between Infinity
Discovery, Inc. and Johnson & Johnson Pharmaceutical Research & Development, a division of Janssen Pharmaceutica N.V., dated as of December 22, 2004, as amended by Amendment No. 1 effective as of March 2, 2006

 Collaboration Agreement by and between MedImmune, Inc. and Infinity Discovery, Inc. dated as of August 25, 2006 
 Master Security Agreement between Infinity Discovery, Inc. and General Electric Capital Corporation dated December 6, 2002, as amended on December 6, 2002,
together with Promissory Notes in favor of GE 
 Lease Agreement dated July 2, 2002 between Infinity Discovery, Inc. and ARE-770/784/790 Memorial Drive
LLC, as amended by First Amendment to Lease dated March 25, 2003, Second Amendment to Lease dated April 30, 2003, Third Amendment to Lease dated October 30, 2003 and Fourth Amendment to Lease dated December 15, 2003 

Sublease dated August 24, 2004 between Infinity Discovery, Inc. and Hydra Biosciences, Inc., together with Consent to Sublease dated September 16, 2004 by
ARE-770/784/790 Memorial Drive LLC, Infinity Discovery, Inc. and Hydra Biosciences, Inc., as amended by First 

  

 - 51 - 

 To the Purchasers Named on 
     Schedule A attached hereto 
 November __, 2008 
 Page 10 
  
 
Amendment to Sublease dated October 17, 2005, together with Consent to Amendment to Sublease dated as of October 31, 2005 by ARE-770/784/790
Memorial Drive LLC and Second Amendment to Sublease dated as of January 9, 2006, together with Consent to Amendment to Sublease dated as of January 26, 2006 by ARE-770/784/790 Memorial Drive LLC, Infinity Discovery, Inc. and Hydra
Biosciences, Inc. 
 Offer Letter between Infinity Discovery, Inc. and Steven Holtzman dated as of August 1, 2001 
 Amendment to Offer Letter between Infinity Discovery, Inc. and Steven Holtzman dated as of October 25, 2007 
 Offer Letter between Infinity Discovery, Inc. and Julian Adams dated as of August 19, 2003 
 Amendment to Offer Letter between Infinity Discovery, Inc. and Julian Adams dated as of October 25, 2007 
 Offer Letter
between Infinity Discovery, Inc. and Adelene Perkins dated as of February 6, 2002 
 Amendment to Offer Letter between Infinity Discovery, Inc. and
Adelene Perkins dated as of October 25, 2007 
 Letter Agreement between Infinity Discovery, Inc. and Steven Holtzman dated effective as of
March 31, 2006 
 Letter Agreement between Infinity Discovery, Inc. and Julian Adams dated effective as of March 31, 2006 
 Letter Agreement between Infinity Discovery, Inc. and Adelene Perkins dated effective as of March 31, 2006 
 Pre-Merger Stock Incentive Plan. 
 Restricted Stock Agreements entered into
with each of the directors identified on the schedule attached to Exhibit 10.19 to the Company’s Current Report on Form 8-K filed on September 18, 2006. 
 Nonstatutory Stock Option Agreements entered into with each of the directors identified on the schedule attached to Exhibit 10.20 to the Company’s Current Report on Form 8-K filed on September 18, 2006. 
  

 - 52 - 

 To the Purchasers Named on 
     Schedule A attached hereto 
 November __, 2008 
 Page 11 
  
 Stock Restriction Agreements entered
into with each of the directors identified on the schedule attached to Exhibit 10.21 to the Company’s Current Report on Form 8-K filed on September 18, 2006. 
 Stock Restriction Agreement entered into with Franklin H. Moss on August 14, 2001 
 Restricted Stock Agreements entered
into with each of the officers and directors identified on the schedule attached to Exhibit 10.23 to the Company’s Current Report on Form 8-K filed on September 18, 2006. 
 Restricted Stock Agreements entered into with each of the officers and directors identified on the schedule attached to Exhibit 10.24 to the Company’s Current Report on Form 8-K filed on September 18, 2006.

 Incentive Stock Agreements entered into with each of the officers identified on the schedule attached to Exhibit 10.25 to the Company’s Current
Report on Form 8-K filed on September 18, 2006. 
 Restricted Stock Agreement entered into with Adelene Perkins on March 19, 2002 
 Nonstatutory Stock Option Agreements entered into with each of the officers identified on the schedule attached to Exhibit 10.27 to the Company’s Current Report on
Form 8-K filed on September 18, 2006. 
 Restricted Stock Agreement entered into with Julian Adams on October 6, 2003 
 Restricted Stock Agreements entered into with Steven Holtzman on each of the dates specified on the schedule attached to Exhibit 10.29 to the Company’s Current
Report on Form 8-K filed on September 18, 2006. 
 Nonstatutory Stock Option Agreement entered into with Steven Holtzman on March 25, 2004

 Restricted Stock Agreement entered into with Steven Holtzman on August 14, 2001 
 2000 Stock Incentive Plan, as amended by Amendment No. 1 to 2000 Stock Incentive Plan; Amendment No. 2 to 2000 Stock Incentive Plan; Amendment No. 3 to 2000 Stock Incentive Plan; Amendment No. 4 to
2000 Stock Incentive Plan; and Amendment No. 5 to 2000 Stock Incentive Plan. 
 Stock Restriction Agreements entered into with Steven H. Holtzman on
October 27, 2008 and Julian Adams on October 28, 2008 filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2008. 
  

 - 53 - 

 EXHIBIT C 
 FORM OF COMMON STOCK PURCHASE WARRANT 
 THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUED UPON ITS
EXERCISE ARE SUBJECT TO THE RESTRICTIONS ON TRANSFER SET FORTH IN SECTION 4 OF THIS WARRANT. 
 THIS WARRANT AND THE SHARES OF COMMON STOCK UNDERLYING
THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE
SECURITIES LAWS OR AN APPLICABLE EXEMPTION TO THE REGISTRATION REQUIREMENTS OF SUCH ACT OR SUCH LAWS. 
  

					
	 Warrant No.             
	  	Number of Shares:                     	  	
	  
 Date of Issuance:
                    , 2008
	  	        (subject to adjustment)	  	
			
	 Original Issue Date (as defined in subsection 2(a)):
                                        ,
2008
	  		  	

 Infinity Pharmaceuticals, Inc. 
 Common Stock Purchase Warrant 
 (Void After
             ,         ) 
 Infinity Pharmaceuticals, Inc., a Delaware corporation (the “Company”), for value received, hereby certifies that
                                        
(the “Initial Registered Holder”), or its registered assigns (the “Registered Holder”), is entitled, subject to the terms and conditions set forth below, to purchase from the Company, at any time or from time to
time on or after the date set forth below under “Initial Exercise Date,” and on or before 5:00 p.m. (Boston time) on the date set forth below under “Final Exercise Date”,
                     shares of Common Stock, $.001 par value per share, of the Company (“Common Stock”), at the purchase
price set forth below under the heading “Purchase Price.” The shares purchasable upon exercise of this Warrant, and the purchase price per share, each as adjusted from time to time pursuant to the provisions of this Warrant, are
hereinafter referred to as the “Warrant Shares” and the “Purchase Price,” respectively. Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to such terms in the Securities
Purchase Agreement dated              , 2008, to which the Company and the Initial Registered Holder are parties (the “Securities Purchase Agreement”).

  

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	 Initial Exercise Date
	  	Final Exercise Date	  	Purchase Price
	 Second Closing Date
	  		  	

 1. Exercise. 
 (a) Exercise for Cash. The Registered Holder may, at its option, elect to exercise this Warrant, in whole but not in part, by surrendering this Warrant, with the purchase form appended hereto as
Exhibit A duly executed by or on behalf of the Registered Holder, at the principal office of the Company, or at such other office or agency as the Company may designate, accompanied by payment in full, in lawful money of the United
States, of the Purchase Price payable in respect of the number of Warrant Shares purchased upon such exercise. 
 (b) Exercise Date.
Each exercise of this Warrant shall be deemed to have been effected immediately prior to the close of business on the day on which this Warrant shall have been surrendered to the Company as provided in subsection 1(a) above (the “Exercise
Date”). At such time, the person or persons in whose name or names any certificates for Warrant Shares shall be issuable upon such exercise as provided in subsection 1(c) below shall be deemed to have become the holder or holders of record
of the Warrant Shares represented by such certificates. 
 (c) Issuance of Certificates. As soon as practicable after the exercise of
this Warrant, and in any event within 3 days thereafter, the Company, at its expense, will cause to be issued in the name of, and delivered to, the Registered Holder (or as the Registered Holder may direct upon payment by the Registered Holder of
any applicable transfer taxes) a certificate or certificates for the number of full Warrant Shares to which the Registered Holder shall be entitled upon such exercise plus, in lieu of any fractional share to which the Registered Holder would
otherwise be entitled, cash in an amount determined pursuant to Section 1(d) hereof. 
 (d) Fractional Shares. The Company shall
not be required upon the exercise of this Warrant to issue any fractional shares, but shall pay the value thereof to the Registered Holder in cash on the basis of the Fair Market Value per share of Common Stock. The “Fair Market
Value” per share of Common Stock shall be determined as follows: 
 (1) If the Common Stock is listed on a national securities
exchange or another nationally recognized trading system as of the Exercise Date, the Fair Market Value per share of Common Stock shall be deemed to be the average of the high and low reported sale prices per share of Common Stock thereon on the
trading day immediately preceding the Exercise Date (provided that if no such price is reported on such day, the Fair Market Value per 
  

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 share of Common Stock shall be deemed to be the average of the high and low reported sale price per share of Common Stock
thereon on the last reported trading day preceding the Exercise Date). 
 (2) If the Common Stock is not listed on a national securities
exchange or another nationally recognized trading system as of the Exercise Date, the Fair Market Value per share of Common Stock shall be deemed to be the amount most recently determined by the Board of Directors of the Company (the
“Board”) to represent the fair market value per share of the Common Stock (including without limitation a determination for purposes of granting Common Stock options or issuing Common Stock under any plan, agreement or arrangement
with employees of the Company). 
 (e) Exercise Limitations. This Warrant is one of a series of Warrants issued to the Purchaser and
its Associated Companies pursuant to the Securities Purchase Agreement. Notwithstanding anything to the contrary contained herein, the number of shares of Common Stock that may be acquired by the Initial Registered Holder, or any Associated Company
to which this Warrant is transferred, upon exercise of this Warrant shall be limited to the extent necessary to insure that, following such exercise, the total number of shares of outstanding Common Stock then owned by such Initial Registered Holder
and any Associated Company to which this Warrant is transferred, together with shares of outstanding Common Stock owned by Associated Companies, does not exceed 33.3% of the fully-diluted number of shares of Common Stock outstanding (giving effect
to all securities that are then exercisable for, or convertible into, Common Stock). 
 2. Adjustments. 
 (a) Adjustment for Stock Splits and Combinations. If the Company shall at any time or from time to time after the date on which this Warrant was
first issued (the “Original Issue Date”) effect a subdivision of the outstanding Common Stock, the Purchase Price then in effect immediately before that subdivision shall be proportionately decreased. If the Company shall at any
time or from time to time after the Original Issue Date combine the outstanding shares of Common Stock, the Purchase Price then in effect immediately before the combination shall be proportionately increased. Any adjustment under this paragraph
shall become effective at the close of business on the date the subdivision or combination becomes effective. 
 (b) Adjustment for
Certain Dividends and Distributions. In the event the Company at any time, or from time to time after the Original Issue Date shall make or issue, or fix a record date for the determination of holders of Common Stock entitled to receive, a
dividend or other distribution payable in additional shares of Common Stock, then and in each such event the Purchase Price then in effect immediately before such event shall be decreased as of the time of such issuance or, in the event such a
record date shall have been fixed, as of the close of business on such record date, by multiplying the Purchase Price then in effect by a fraction: 
 (1) the numerator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record date, and 
  

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 (2) the denominator of which shall be the total number of shares of Common Stock issued and outstanding
immediately prior to the time of such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment of such dividend or distribution; 
 provided, however, that if such record date shall have been fixed and such dividend is not fully paid or if such distribution is not fully made on the date
fixed therefor, the Purchase Price shall be recomputed accordingly as of the close of business on such record date and thereafter the Purchase Price shall be adjusted pursuant to this paragraph as of the time of actual payment of such dividends or
distributions. 
 (c) Adjustment in Number of Warrant Shares. When any adjustment is required to be made in the Purchase Price
pursuant to subsections 2(a) or 2(b), the number of Warrant Shares purchasable upon the exercise of this Warrant shall be changed to the number determined by dividing (i) an amount equal to the number of shares issuable upon the exercise
of this Warrant immediately prior to such adjustment, multiplied by the Purchase Price in effect immediately prior to such adjustment, by (ii) the Purchase Price in effect immediately after such adjustment. 
 (d) Adjustments for Other Dividends and Distributions. In the event the Company at any time or from time to time after the Original Issue Date
shall make or issue, or fix a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable in securities of the Company (other than shares of Common Stock) or in cash or other property
(other than regular cash dividends paid out of earnings or earned surplus, determined in accordance with generally accepted accounting principles), then and in each such event provision shall be made so that the Registered Holder shall receive upon
exercise hereof, in addition to the number of shares of Common Stock issuable hereunder, the kind and amount of securities of the Company, cash or other property which the Registered Holder would have been entitled to receive had this Warrant been
exercised on the date of such event and had the Registered Holder thereafter, during the period from the date of such event to and including the Exercise Date, retained any such securities receivable during such period, giving application to all
adjustments called for during such period under this Section 2 with respect to the rights of the Registered Holder. 
 (e) Adjustment
for Reorganization. If there shall occur any reorganization, recapitalization, reclassification, consolidation or merger involving the Company in which the Common Stock is converted into or exchanged for securities, cash or other property (other
than a transaction covered by subsections 2(a), 2(b) or 2(d)) (collectively, a “Reorganization”), then, following such Reorganization, the Registered Holder shall receive upon exercise hereof the kind and amount of securities,
cash or other property which the Registered Holder would have been entitled to receive pursuant to such Reorganization if such exercise had taken place immediately prior to such Reorganization. In any such case, appropriate adjustment (as determined
in good 
  

 - 57 - 

 faith by the Board) shall be made in the application of the provisions set forth herein with respect to the rights and
interests thereafter of the Registered Holder, to the end that the provisions set forth in this Section 2 (including provisions with respect to changes in and other adjustments of the Purchase Price) shall thereafter be applicable, as nearly as
reasonably may be, in relation to any securities, cash or other property thereafter deliverable upon the exercise of this Warrant. 
 (f)
Certificate as to Adjustments. Upon the occurrence of each adjustment or readjustment of the Purchase Price pursuant to this Section 2, the Company at its expense shall, as promptly as reasonably practicable but in any event not later
than 10 days thereafter, compute such adjustment or readjustment in accordance with the terms hereof and furnish to the Registered Holder a certificate setting forth such adjustment or readjustment (including the kind and amount of securities, cash
or other property for which this Warrant shall be exercisable and the Purchase Price) and showing in detail the facts upon which such adjustment or readjustment is based. The Company shall, as promptly as reasonably practicable after the written
request at any time of the Registered Holder (but in any event not later than 10 days thereafter), furnish or cause to be furnished to the Registered Holder a certificate setting forth (i) the Purchase Price then in effect and (ii) the
number of shares of Common Stock and the amount, if any, of other securities, cash or property which then would be received upon the exercise of this Warrant. 
 3. Expiration Notice. The Company will use commercially reasonable efforts to send the Registered Holder a notice 30 days in advance of the expiration of this Warrant. 
 4. Transfers, etc. 
 (a) This Warrant
and the Warrant Shares shall not be sold or transferred unless either (i) they first shall have been registered under the Securities Act of 1933, as amended (the “Act”), or (ii) the Company first shall have been furnished
with an opinion of legal counsel, reasonably satisfactory to the Company, to the effect that such sale or transfer is exempt from the registration requirements of the Act. Notwithstanding the foregoing, no registration or opinion of counsel shall be
required for (i) a transfer by a Registered Holder which is an entity to a wholly owned subsidiary of such entity, a transfer by a Registered Holder which is a partnership to a partner of such partnership or a retired partner of such
partnership or to the estate of any such partner or retired partner, a transfer by a Registered Holder which is a limited liability company to a member of such limited liability company or a retired member or to the estate of any such member or
retired member, a transfer by a Registered Holder to any of its Associated Companies, or a transfer by a Registered Holder to the Company, provided that the transferee in each case (except the last) agrees in writing to be subject to the
terms of this Section 4, or (ii) a transfer made in accordance with Rule 144 under the Act. 
 (b) Each Warrant and each
certificate representing Warrant Shares shall bear legends substantially in the following form: 
 “THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE 
  

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 AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR AN APPLICABLE EXEMPTION TO THE REGISTRATION REQUIREMENTS OF SUCH ACT OR SUCH LAWS.” 
 The foregoing legend shall be removed from any Warrants and from the certificates representing any Warrant Shares, at the request of the holder thereof, at such time as they become registered under the Act or eligible for resale pursuant to
Rule 144 under the Act. 
 (c) The Company will maintain a register containing the name and address of the Registered Holder of this
Warrant. The Registered Holder may change its address as shown on the warrant register by written notice to the Company requesting such change. 
 (d) Subject to the provisions of Section 4 hereof, this Warrant and all rights hereunder are transferable, in whole or in part, upon surrender of this Warrant with a properly executed assignment (in the form of Exhibit B
hereto) at the principal office of the Company (or, if another office or agency has been designated by the Company for such purpose, then at such other office or agency). 
 5. No Impairment. The Company will not, by amendment of its charter or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such action as may be necessary or
appropriate in order to protect the rights of the Registered Holder against impairment. 
 6. Notices of Record Date, etc. In the
event: 
 (a) the Company shall take a record of the holders of its Common Stock (or other stock or securities at the time deliverable upon
the exercise of this Warrant) for the purpose of entitling or enabling them to receive any dividend or other distribution, or to receive any right to subscribe for or purchase any shares of stock of any class or any other securities, or to receive
any other right; or 
 (b) of any capital reorganization of the Company, any reclassification of the Common Stock of the Company, any
consolidation or merger of the Company with or into another corporation (other than a consolidation or merger in which the Company is the surviving entity and its Common Stock is not converted into or exchanged for any other securities or property),
or any transfer of all or substantially all of the assets of the Company; or 
 (c) of the voluntary or involuntary dissolution, liquidation
or winding-up of the Company, 
  

 - 59 - 

 then, and in each such case, the Company will send or cause to be sent to the Registered Holder a notice specifying, as
the case may be, (i) the record date for such dividend, distribution or right, and the amount and character of such dividend, distribution or right, or (ii) the effective date on which such reorganization, reclassification, consolidation,
merger, transfer, dissolution, liquidation or winding-up is to take place, and the time, if any is to be fixed, as of which the holders of record of Common Stock (or such other stock or securities at the time deliverable upon the exercise of this
Warrant) shall be entitled to exchange their shares of Common Stock (or such other stock or securities) for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, transfer, dissolution,
liquidation or winding-up. Such notice shall be sent at least 5 days prior to the record date or effective date for the event specified in such notice. 
 7. Reservation of Stock. The Company will at all times reserve and keep available, solely for issuance and delivery upon the exercise of this Warrant, such number of Warrant Shares and other securities, cash
and/or property, as from time to time shall be issuable upon the exercise of this Warrant. 
 8. Exchange or Replacement of Warrants.

 (a) Upon the surrender by the Registered Holder, properly endorsed, to the Company at the principal office of the Company, the Company
will, subject to the provisions of Section 4 hereof, issue and deliver to or upon the order of the Registered Holder, at the Company’s expense, a new Warrant or Warrants of like tenor, in the name of the Registered Holder or as the
Registered Holder (upon payment by the Registered Holder of any applicable transfer taxes) may direct, calling in the aggregate on the face or faces thereof for the number of shares of Common Stock (or other securities, cash and/or property) then
issuable upon exercise of this Warrant. 
 (b) Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant and (in the case of loss, theft or destruction) upon delivery of an indemnity agreement (with surety if reasonably required) in an amount reasonably satisfactory to the Company, or (in the case of
mutilation) upon surrender and cancellation of this Warrant, the Company will issue, in lieu thereof, a new Warrant of like tenor. 
 9.
Notices. All notices and other communications from the Company to the Registered Holder in connection herewith shall be mailed by certified or registered mail, postage prepaid, or sent via a reputable nationwide overnight courier service
guaranteeing next business day delivery, to the address last furnished to the Company in writing by the Registered Holder. All notices and other communications from the Registered Holder to the Company in connection herewith shall be mailed by
certified or registered mail, postage prepaid, or sent via a reputable nationwide overnight courier service guaranteeing next business day delivery, to the Company as follows: Infinity Pharmaceuticals, Inc., 780 Memorial Drive, Cambridge, MA 02139,
Attention: General Counsel. If the Company should at any time change the location of its principal office to a place other than as set forth below, it shall give prompt written notice to the Registered Holder and thereafter all references in this
Warrant to the location of its principal office at the 
  

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 particular time shall be as so specified in such notice. All such notices and communications shall be deemed delivered
(i) two business days after being sent by certified or registered mail, return receipt requested, postage prepaid, or (ii) one business day after being sent via a reputable nationwide overnight courier service guaranteeing next business
day delivery. 
 10. No Rights as Stockholder. Until the exercise of this Warrant, the Registered Holder shall not have or exercise
any rights by virtue hereof as a stockholder of the Company. Notwithstanding the foregoing, in the event (i) the Company effects a split of the Common Stock by means of a stock dividend and the Purchase Price of and the number of Warrant Shares
are adjusted as of the date of the distribution of the dividend (rather than as of the record date for such dividend), and (ii) the Registered Holder exercises this Warrant between the record date and the distribution date for such stock
dividend, the Registered Holder shall be entitled to receive, on the distribution date, the stock dividend with respect to the shares of Common Stock acquired upon such exercise, notwithstanding the fact that such shares were not outstanding as of
the close of business on the record date for such stock dividend. 
 11. Amendment or Waiver. Any term of this Warrant may be amended
or waived only by an instrument in writing signed by the party against which enforcement of the change or waiver is sought. No waivers of any term, condition or provision of this Warrant, in any one or more instances, shall be deemed to be, or
construed as, a further or continuing waiver of any such term, condition or provision. 
 12. Section Headings. The section headings
in this Warrant are for the convenience of the parties and in no way alter, modify, amend, limit or restrict the contractual obligations of the parties. 
 13. Governing Law. This Warrant will be governed by and construed in accordance with the internal laws of the State of New York (without reference to the conflicts of law provisions thereof). 
 14. Facsimile Signatures. This Warrant may be executed by facsimile signature. 
 EXECUTED as of the Date of Issuance indicated above. 
  

			
	INFINITY PHARMACEUTICALS, INC.
		
	By:	 	  

		
	Title:	 	  

  

	
	 ATTEST:

	
	  

  

 - 61 - 

 EXHIBIT A 
 PURCHASE FORM 
  

			
	 To:
                                
	  	Dated:                     

 The undersigned, pursuant to the provisions set forth in the attached Warrant
(No.                     ), hereby elects to purchase
                     shares of the Common Stock of Infinity Pharmaceuticals, Inc. covered by such Warrant 
 The undersigned herewith makes payment of the full purchase price for such shares at the price per share provided for in such Warrant. Such payment shall
be $         in lawful money of the United States. 
  

			
	Signature:	 	  

		
	Address:	 	  

		
		 	  

  

 - 62 - 

 EXHIBIT B 
 ASSIGNMENT FORM 
 FOR VALUE RECEIVED,
                                         
                                         
                   hereby sells, assigns and transfers all of the rights of the undersigned under the attached Warrant (No.
                    ) with respect to the number of shares of Common Stock of Infinity Pharmaceuticals, Inc. covered thereby set forth below,
unto: 
  

					
	 Name of Assignee
	  	Address	  	No. of Shares
		  		  	

  

							
	 Dated:
	 	                    	 	            Signature:	 	  

 Notarized: 
  

			
	 By:
	 	  

  

			
	 NOTE:
	  	The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant. Officers of corporations and those acting in a fiduciary or other representative
capacity should file proper evidence of authority to assign the foregoing Warrant.

  

 - 63 - 

 EXHIBIT D 
 QUESTIONNAIRE 
  

									
	1. Name.
		
	(a)	  	Full Legal Name of Selling Securityholder
	
	  

		
	(b)	  	Full Legal Name of Registered Holder (if not the same as (a) above) through which Registrable Securities Listed in Item 3 below are held:
	
	  

		
	(c)	  	Full Legal Name of Natural Control Person (which means a natural person who directly or indirectly alone or with others has power to vote or dispose of the securities covered by the
questionnaire):
	
	  

		
	2. Address for Notices to Selling Securityholder:	  	
	
	Fax:                                       
                                         
                                         
                                         
                                         
  
	
	Contact Person:                                    
                                         
                                         
                                         
                            
		
	3.	  	Beneficial Ownership of Registrable Securities:
		
	(a)	  	Type and Number of Registrable Securities beneficially owned:
		
	4.	  	Broker-Dealer Status:
		
	(a)	  	Are you a broker-dealer?
					
		  	Yes	  	 ̈	  	No	  	 ̈
			
		  	(b)	  	If “yes” to Section 4(a), did you receive your Registrable Securities as compensation for investment banking services to the Company.
					
		  	Yes	  	 ̈	  	No	  	 ̈
		
	Note:	  	If no, the SEC’s staff has indicated that you should be identified as an underwriter in the Registration Statement.

  

 - 64 - 

									
		
	(c)	  	Are you an affiliate of a broker-dealer?
					
		  	Yes	  	 ̈	  	No	  	 ̈
		
	(d)	  	If you are an affiliate of a broker-dealer, do you certify that you bought the Registrable Securities in the ordinary course of business, and at the time of the purchase of the
Registrable Securities to be resold, you had no agreements or understandings, directly or indirectly, with any person to distribute the Registrable Securities?
					
		  	Yes	  	 ̈	  	No	  	 ̈
			
		  	Note:	  	If no, the SEC’s staff has indicated that you should be identified as an underwriter in the Registration Statement.
		
	5.	  	Beneficial Ownership of Other Securities of the Company Owned by the Selling Securityholder.
		
		  	Except as set forth below in this Item 5, the undersigned is not the beneficial or registered owner of any securities of the Company other than the Registrable Securities listed
above in Item 3.
		
	(a)	  	Type and Amount of Other Securities beneficially owned by the Selling Securityholder:

  

	6.	Relationships with the Company: 

 Except as set
forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners of 5% of more of the equity securities of the undersigned) has held any position or office or has had any other material
relationship with the Company (or its predecessors or affiliates) during the past three years. 
 State any exceptions here: 
 The undersigned agrees to promptly notify the Company of any inaccuracies or changes in the information provided herein that may occur subsequent to the
date hereof at any time while the Registration Statement remains effective. 
 By signing below, the undersigned consents to the disclosure
of the information contained herein in its answers to Items 1 through 6 and the inclusion of such information in the Registration Statement and the related prospectus and any amendments or supplements thereto. The undersigned understands that such
information will be relied upon by the Company in connection with the preparation or amendment of the Registration Statement and the related prospectus. 
 [SIGNATURE PAGE OF SECURITYHOLDER FOLLOWS] 
  

 - 65 - 

 IN WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and
delivered either in person or by its duly authorized agent. 
  

					
	Date:	 	Securityholder:
			
		 	By:	 	  

		 	Name	 	
		 	Title	 	

 PLEASE FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN THE ORIGINAL BY OVERNIGHT
MAIL, TO: 
 Infinity Pharmaceuticals, Inc. 
 780 Memorial Drive 
 Cambridge, Massachusetts 02139 
 Attn: Gerald E. Quirk, Esq., General Counsel 
 Telephone (617) 453-1000 
 Facsimile: (617) 453-1001 
  

 - 66 -Line of Credit Agreement

 Exhibit 10.2 
 LINE OF CREDIT AGREEMENT 
 This LINE OF CREDIT
AGREEMENT, dated as of November 19, 2008, is made among PURDUE PHARMA L.P., a Delaware limited partnership (“Purdue Pharma”) and PURDUE
PHARMACEUTICAL PRODUCTS L.P., a Delaware limited partnership (“PPP”, and together with Purdue Pharma, the “Lenders” and individually, each a
“Lender”), and INFINITY PHARMACEUTICALS, INC., a Delaware corporation (“Borrower”). 
 RECITALS: 
 WHEREAS, the Borrower desires a line of credit facility for the
operation of its business, and has requested that the Lenders make a loan facility available to the Borrower; and 
 WHEREAS, the
Lenders are willing to provide Borrower with such facility on the terms and conditions hereafter provided; 
 NOW,
THEREFORE, in order to induce the Lenders to make the Line of Credit Loans and to perform their obligations hereunder and for other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, and intending to be legally bound, the Lenders and the Borrower hereby agree as follows: 
 1. DEFINED
TERMS. 
 When used in this Credit Agreement the following terms shall have the following meanings: 
 “Additional Interest” as defined in Section 2.2. 
 “Associated Company” means, as to any Lender, any person, firm, trust, partnership, corporation, company or other entity or
combination thereof, which directly or indirectly (i) controls a Lender, (ii) is controlled by a Lender or (iii) is under common control with a Lender. The terms “control” and “controlled” mean ownership of 50% or
more, including ownership by trusts with substantially the same beneficial interests, of the voting and equity rights of such person, firm, trust, partnership, corporation, company or other entity or combination thereof or the power to direct the
management of such person, firm, trust, partnership, corporation, company or other entity or combination thereof. 
 “Authorized
Officer” means any of the Chief Executive Officer, President, Chief Financial Officer, Treasurer, Assistant Treasurer or Secretary of the Borrower, acting singly. 
 “Business Day” means with respect to any borrowing or payment, a day other than Saturday or Sunday on which banks are open for
business in Boston, Massachusetts. 
 “Change in Control” means (a) the occurrence of an event or series of
events by which any person or group of persons (within the meaning of Section 13 or 14 of the Exchange Act), exclusive of the Lenders and their Associated Companies, shall have acquired beneficial ownership (within the meaning of Rule 13d-3
promulgated by the SEC under said Exchange Act), directly or indirectly, of more than fifty percent (50%) of the outstanding shares of capital stock of the Borrower; (b) occupation of more 

 
than fifty percent (50%) of the seats (other than vacant seats) on the board of directors of the Borrower by persons who were not at least one of the
following: (i) directors of the Borrower on the date of this Credit Agreement, (ii) nominated by the board of directors of the Borrower, or (iii) appointed by directors referred to in the preceding clauses (i) and (ii); or
(c) if during the Funded Discovery Period (as such term is defined in the Global Strategic Alliance Agreement) either (i) Julian Adams, Ph.D. is no longer a full-time executive of the Borrower or (ii) both Steven H. Holtzman and
Adelene Q. Perkins are no longer full-time executives of the Borrower. 
 “Common Stock” means Borrower’s Common
Stock, $0.001 par value per share. 
 “Confidentiality Agreement” means the “Confidentiality Agreement” as
defined in the Securities Purchase Agreement. 
 “Credit Agreement” means this Line of Credit Agreement, as it may be
amended or modified and in effect from time to time. 
 “Default Rate” as defined in Section 2.2. 
 “Event of Default” shall have the meaning assigned to such term in Article VII hereof. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor federal statute and the rules and
regulations of the SEC promulgated thereunder, all as the same shall be in effect from time to time. 
 “Future SEC
Filings” as defined in Section 5.2(b). 
 “GAAP” means United States generally accepted accounting
principles. 
 “Global Strategic Alliance Agreement” has the meaning ascribed to such term in the Securities Purchase
Agreement. 
 “Highest Lawful Rate” means the maximum lawful interest rate, if any, that at any time or from time to
time may be contracted for, charged, or received under the laws applicable to the Lenders which are presently in effect or, to the extent allowed by law, under such applicable laws which allow a higher maximum nonusurious interest rate than
applicable laws now allow. 
 “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

 “Initial Closing Date” has the meaning ascribed to such term in the Securities Purchase Agreement. 
 “Investment Company Act” means the Investment Company Act of 1940, as amended. 
 “Knowledge of the Borrower,” “Knowledge of the Borrower or the Subsidiary” or any like expression means
the actual knowledge of the executive officers and vice presidents of the Borrower 

  

 - 2 - 

 
and/or the Subsidiary and the knowledge that would be reasonably expected to be known by such individuals in the ordinary and usual course of the performance
of their professional responsibilities to the Borrower and/or the Subsidiary. 
 “Lender Registration Statement”
means one or more registration statements on Form S-3 (or any successor form) covering resale to the public by a Lender of the Repayment Shares. 
 “Lien” means any lien, mortgage, charge, encumbrance or security interest of any kind. 
 “Line
of Credit Availability Date” as defined in Section 2.1(a). 
 “Line of Credit Advance Termination Date” means the 3rd anniversary of the Line of Credit Availability Date.

 “Line of Credit Commitment” means $50,000,000. 
 “Line of Credit Commitment Percentage” for each Lender means fifty percent (50.0%). 
 “Line of Credit Loan” as defined in Section 2.1(a). 
 “Line of Credit Loan Request” shall mean a loan request in substantially the form attached hereto as Exhibit
“B”. 
 “Line of Credit Maturity Date” means the
10th anniversary of the Line of Credit Availability Date. 
 “Line of Credit Notes” as defined in Section 2.1(a). 
 “Loan
Documents” means this Credit Agreement and the Line of Credit Notes. 
 “Margin Stock” has the meaning
given to such term in Regulation U of the Board of Governors of the Federal Reserve System (or any successor), as the same may be modified and supplemented and in effect from time to time). 
 “Material Adverse Effect” means a material adverse effect on (i) the business operations or financial condition of the
Borrower and its Subsidiaries taken as a whole, or (ii) the ability of Borrower to repay the Obligations or otherwise perform its obligations under the Loan Documents. 
 “Obligations” means all unpaid principal of and accrued and unpaid interest on the Line of Credit Notes, and all other
obligations, interest, fees, charges and expenses of the Borrower to the Lenders arising under the Loan Documents. 
 “Payment
Blockage” as defined in Section 6.2(a). 
  

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 “Person” means any corporation, natural person, firm, joint venture, partnership,
trust, unincorporated organization, enterprise, government or any department or agency of any government. 
 “Prime
Rate” is the highest prime rate as published in The Wall Street Journal on each day, and for any day on which The Wall Street Journal is not published, it means the highest such prime rate as so published on the most
recent previous date. Changes in the Prime Rate shall take place immediately without notice or demand of any kind. 
 “Regulations
T, U and X” means, respectively, Regulations T, U and X of the Board of Governors of the Federal Reserve System (or any successor), as the same may be modified and supplemented and in effect from time to time. 
 “Repayment Shares” as defined in Section 2.3(b). 
 “Rights Agreement” means the Rights Agreement between the Borrower (as successor to Discovery Partners International, Inc.
(“DPI”)), and American Stock Transfer & Trust Company (“Rights Agent”) dated February 13, 2003, as amended from time to time. 
 “SEC” means the United States Securities and Exchange Commission or any successor agency thereto. 
 “Second Closing Date” has the meaning ascribed to such term in the Securities Purchase Agreement. 
 “Securities Act” means the Securities Act of 1933, as amended, or any successor federal statute, and the rules and regulations of
the SEC promulgated thereunder, all as the same shall be in effect from time to time. 
 “Securities Purchase
Agreement” means the Securities Purchase Agreement dated the date hereof among the Borrower, Purdue Pharma and PPP. 
 “Senior Credit Documents” means all credit documents related to Senior Indebtedness; in each case, together with all the other documents related thereto (including, without limitation, any guarantees and security
documents), as such documents may be amended (including any amendment and restatement thereof), supplemented, extended, renewed, replaced or otherwise modified from time to time, including, without limitation, any agreement increasing the amount of,
extending the maturity of, refinancing or otherwise restructuring (including, but not limited to, the inclusion or substitution of additional or different borrowers, guarantors, debtors or lenders thereunder) all or any portion of the indebtedness
under such agreements or any successor or replacement agreement or agreements and whether by the same or any other agent, lender or group of lenders. 
 “Senior Indebtedness” means all obligations of the Borrower now or hereafter existing under, or with respect to all Senior Credit Documents related to indebtedness designated as senior
Indebtedness by the Borrower; in each case whether created directly or acquired by assignment or otherwise and whether for principal, interest (including, without limitation, interest accruing after the filing of a petition initiating 

  

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any proceeding referred to in Section 6.3), whether or not such interest accrues after the filing of such petition or is an allowed claim in such
proceeding), fees, premium, indemnifications, reimbursements, damages, expenses or otherwise. 
 “Share Payment
Amount” as defined in Section 2.4(a). 
 “Share Payment Date” as defined in Section 2.3(b).

 “Share Payment Notice” as defined in Section 2.3(b). 
 “Share Payment Notice Date” as defined in Section 2.3(b). 
 “Share Payment Price” means the average closing price per share of Common Stock of the Borrower for the twenty (20) trading
days prior to (and not including) the Share Payment Date. 
 “Solvent” means, with respect to a particular date, that
on such date (i) the Borrower’s fair saleable value of its assets exceeds the amount that will be required to be paid on or in respect of the Borrower’s existing debts (including known contingent liabilities) as they mature; and
(ii) the Borrower’s assets do not constitute unreasonably small capital to carry on its business for the current fiscal year as now conducted and as proposed to be conducted including its capital needs taking into account the particular
capital requirements of the business conducted by the Borrower, and projected capital requirements and capital availability thereof. 
 “Strategic Alliance Agreement Termination Notice” as defined in Section 2.3(c). 
 “Strategic Alliance Agreement Termination Repayment Notice” as defined in Section 2.3(c). 
 “Subsidiary” means Infinity Discovery, Inc., a wholly-owned subsidiary of the Borrower. 
 The definitions
of the terms herein apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun will include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” will be deemed to be followed by the phrase “without limitation.” Unless the context requires otherwise, (A) any definition of or reference to any agreement, instrument or other document
herein will be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or
therein), (B) any reference to any laws or regulations herein will be construed as referring to such laws and regulations as from time to time enacted, repealed or amended, (C) any reference herein to any Person will be construed to
include the Person’s successors and assigns, (D) the words “herein”, “hereof” and “hereunder”, and words of similar import, will be construed to refer to this Credit Agreement in its entirety and not to any
particular provision hereof, (E) any reference herein to the words “mutually agree” or “mutual written agreement” will not impose any obligation on either party to agree to any terms relating thereto or to engage in
discussions relating to such terms except as such party may determine in such party’s sole discretion, and (F) all references herein to Sections, Exhibits or Schedules will be construed to refer to Sections, Exhibits and Schedules of this
Credit Agreement. 
  

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 2. LINE OF CREDIT FACILITY.

 2.1 Line of Credit Loans. 
 (a) Obligations to Make Line of Credit Loans. Subject to satisfaction of the conditions set forth in Section 3 hereof, each Lender agrees, severally and not jointly, on the terms and conditions set forth in this Credit
Agreement, to make loans (each a “Line of Credit Loan”) to the Borrower at the Borrower’s request from the later to occur (such later date being the “Line of Credit Availability Date”) of (i) April 1,
2009 and (ii) the earlier to occur of (x) the Second Closing Date and (y) the termination of the Securities Purchase Agreement with respect to the Second Closing (as defined therein) pursuant to Section 8.1(c) of the Securities
Purchase Agreement because the condition set forth in Section 7.3(c) of the Securities Purchase Agreement has occurred, until the Line of Credit Advance Termination Date, in an aggregate principal amount of all Loans funded by such Lender
(irrespective of any interest or Additional Interest which may have accrued and is unpaid or have been added to principal) not to exceed such Lender’s Line of Credit Commitment Percentage of the Line of Credit Commitment. The Borrower shall
repay the aggregate outstanding principal amount of each such Line of Credit Loan together with all interest due thereon and all other amounts owing under this Credit Agreement or the Loan Documents in full on the Line of Credit Maturity Date. The
obligation of the Borrower to repay the principal amount of each Line of Credit Loan and any and all interest which accrues thereon shall be evidenced by line of credit notes, each in substantially the form of Exhibit “A” hereto
(each a “Line of Credit Note” and collectively, the “Line of Credit Notes”), executed and delivered by the Borrower to each Lender, which Line of Credit Notes shall be in the original principal amount equal to the
applicable Lender’s Line of Credit Commitment Percentage of the Line of Credit Commitment. 
 (b) Method of Borrowing Line of
Credit Loans. To request a Line of Credit Loan, the Borrower shall deliver to each Lender not later than fifteen (15) Business Days prior to the date of the proposed funding of the Line of Credit Loan (which shall also be a Business
Day), a completed Line of Credit Loan Request executed by an Authorized Officer. Each Line of Credit Loan shall comply with all of the provisions of this Credit Agreement. Subject to the provisions of this Section 2.1, each Lender shall advance
such Lender’s Line of Credit Commitment Percentage of the requested Line of Credit Loan to the Borrower in immediately available funds as directed by the Borrower. The failure of any Lender to make any Line of Credit Loan required to be made by
it hereunder shall not relieve the other Lender of its obligation hereunder to make its Line of Credit Loan on such date, and no Lender shall be responsible for the failure of the other Lender to make the Line of Credit Loan to be made by such other
Lender on such date. 
 (c) Use of Proceeds of Line of Credit Loan. The proceeds of each Line of Credit Loan shall be used for
any proper corporate purpose. 
 2.2 Interest. The interest rate for each Line of Credit Loan will be a fluctuating rate, which rate
will be set for a particular Line of Credit Loan at the Prime Rate in effect on the Business Day prior to the date such Line of Credit loan is funded and shall be reset on the last Business Day of each month ending thereafter (the “Floating
Rate”). Interest will accrue on each Line of Credit Loan at the Floating Rate for such Line of Credit Loan, beginning on the date such Line of Credit Loan is funded, on the outstanding principal amount thereof. Interest will be payable on
the Line of Credit Maturity Date 

  

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and will be compounded on each successive three-month anniversary of the funding date of the applicable Line of Credit Loan, at which time the amount of such
accrued but unpaid interest (the “Additional Interest”) shall be added to the principal amount of the applicable Line of Credit Loan (and bear interest from and after such time at the Floating Rate applicable to such Line of Credit
Loan until paid), provided that such Additional Interest shall neither be nor be deemed to be a Line of Credit Loan nor shall such Additional Interest be included in the principal amount outstanding under or in connection with this Credit Agreement
for purposes of calculating whether the aggregate principal amount of all Line of Credit Loans exceeds the Line of Credit Commitment. Interest shall be calculated for actual days elapsed on the basis of a 365-day year (or a 366-day year in the case
of a leap year), and shall be payable for the day the Line of Credit Loan is funded but not for the day of any payment on the amount paid if payment is received prior to 5:00 p.m. (local time) at the place of payment. Notwithstanding the foregoing,
if any principal of or interest on any Line of Credit Loan or any fee or other amount payable by the Borrower hereunder is not paid when due, whether at stated maturity, upon acceleration, or otherwise, such overdue amount shall bear interest, after
as well as before judgment, at a rate per annum equal to 5% plus the applicable Floating Rate (the “Default Rate”). For the avoidance of doubt, if the Borrower fails to deliver the appropriate number of Repayment Shares on
any Share Payment Date other than due to the failure of any Lender to comply with any of the covenants set forth in Sections 5.2(f), (g) or (h), the unpaid amount of the principal amount of unpaid Line of Credit Loans that the Borrower notified
the Lenders it would prepay on such Share Payment Date shall accrue interest at the Default Rate from the Share Payment Date until such time as such amount is paid in cash; provided, however, if the Lenders subsequently comply with
Section 5.2(f), (g) or (h), as the case may be, but the Borrower fails to deliver the appropriate number of Repayment Shares promptly, but no later than five (5) Business Days following delivery by the Lenders to the Borrower of a
written notice of such compliance (the “Subsequent Delivery Date”), then the principal amount of unpaid Line of Credit Loans that the Borrower notified the Lenders it would prepay on such Share Payment Date shall accrue interest at
the Default Rate from such Subsequent Delivery Date until such time as such amount is paid in cash or such Repayment Shares are delivered to the Lenders. 
 2.3 Method of Payment; Prepayments. 
 (a) Subject to Section 2.3(b), all payments of principal,
interest, and fees hereunder shall be made to the applicable Lender on the date when due in immediately available funds in United States Dollars to such Lender’s address specified pursuant to Section 9.8, or as otherwise directed by such
Lender. The Borrower shall have the right from time to time, on any Business Day, to pay (whether or not due) or prepay any Line of Credit Loan in whole or in part, and any other amount owing hereunder (whether as principal, interest or otherwise)
and may do so on one or more occasions. Any payment or prepayment by the Borrower hereunder or in connection herewith must be allocated equally among the Lenders, and, unless an Event of Default is continuing, shall be allocated among principal,
interest and other amounts as directed by the Borrower. In addition, upon or in connection with the payment in full of all amounts owed under the Loan Documents, the Borrower may terminate this Credit Agreement and the other Loan Documents. Any
amount of principal of the Line of Credit Loans which is repaid or prepaid may not be re-borrowed. 
 (b) At the election of the Borrower,
any payment (whether on account of principal, interest or any other amount) hereunder, whether made upon the occurrence of the Line of 

  

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Credit Maturity Date, the occurrence of an Event of Default, an optional prepayment by the Borrower of any amount outstanding hereunder or under any other
Loan Document, or otherwise, may be made, in whole or in part, at the election of the Borrower (which election shall be made in the sole and absolute discretion of the Borrower), by delivery to the applicable Lender of a number of shares of Common
Stock calculated by dividing the amount to be paid by the Borrower pursuant to this Section 2.3(b) by the Share Payment Price; provided, however, the Borrower may not make a payment by delivering Repayment Shares under this
Section 2.3(b) if the effect of such delivery would be to cause the Lenders and their Associated Companies to own a percentage of the outstanding Common Stock greater than the Maximum Percentage (as defined in the Securities Purchase
Agreement). The shares of Common Stock of the Borrower issued pursuant to this Section 2.3(b) shall be referred to herein as the “Repayment Shares.” To the extent any such calculation results in a number of shares which
includes a fractional share, the number of Repayment Shares to be delivered shall be rounded down to the nearest whole share, and the fractional amount shall be paid in cash. In order to make the election under this Section 2.3(b), the Borrower
shall deliver written notice (the “Share Payment Notice”), which Share Payment Notice shall be irrevocable (except to the extent that, after exercising its good faith efforts, the Borrower is unable to obtain all necessary
shareholder approvals or to comply with all applicable regulations, including obtaining all applicable regulatory approvals, including under the HSR Act, or the failure of any Lender to comply with any of the covenants set forth in Sections 5.2(f),
(g) or (h), in which case the Borrower may revoke such Share Payment Notice and may pay the applicable amount in cash in accordance with Section 2.3(a)), to the applicable Lender of its election to make such payment under this
Section 2.3(b) at least seven (7) months, but no more than eight (8) months, prior to the date of such proposed payment (the date such notice of election is sent to such Lender being the “Share Payment Notice Date”),
which notice shall include (i) the amount proposed to be paid and the maximum number of Repayment Shares to be issued in full or partial satisfaction of such payment (it being understood that any difference between the amount proposed to be
paid and the Share Payment Amount shall be paid by the Borrower in cash), (ii) the date of such proposed payment (such date being the “Share Payment Date”), and (iii) the dates to be used for the calculation of the Share
Payment Price on such proposed Share Payment Date. On the Share Payment Date, the Borrower shall deliver or caused to be delivered to such Lender, in accordance with written instructions from such Lender which have been previously provided to the
Borrower, the appropriate number of shares of Common Stock and, if applicable, any additional cash amount payable and a certificate of an Authorized Officer certifying the final calculation of the Share Payment Price. Notwithstanding anything to the
contrary herein, the Borrower may only prepay amounts with Repayment Shares on up to two (2) occasions. The Borrower agrees that, as a condition to its right to issue Repayment Shares, it will take all steps necessary to ensure that the
issuance of the Repayment Shares to the Lenders hereunder will not result in either Lender or their respective Associated Companies being deemed an “Acquiring Person” under the Rights Agreement. 
 (c) Notwithstanding anything to the contrary herein or in any other Loan Document, if the Global Strategic Alliance Agreement is terminated pursuant to
Section 10.2(a) thereof, the Borrower shall give the Lenders prompt (but in any event no later than two (2) Business Days) written notice (the “Strategic Alliance Agreement Termination Notice”) of such termination. The
Lenders may, within forty-five (45) Business Days of the Borrower having given such Strategic Alliance Agreement Termination Notice (or such other date as the parties may mutually agree), then provide written notice (the “Strategic
Alliance Agreement Termination Repayment Notice”) to the Borrower of their decision to cause a prepayment of the Obligations to occur hereunder by virtue of such 

  

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termination, as follows (i) each Lender may terminate any further commitment or obligation such Lender may have to make any further Line of Credit Loans
under this Credit Agreement and/or (ii) any and all amounts outstanding under this Credit Agreement or any other Loan Document to such Lender shall be due and payable by the Borrower on the date which is the date that is one (1) year after
the date that the Borrower received the Strategic Alliance Agreement Termination Repayment Notice, unless such date shall be after the Line of Credit Maturity Date, in which case all such amounts shall be due and owing on the Line of Credit Maturity
Date. If the Lenders fail to provide the Borrower with the Strategic Alliance Agreement Termination Repayment Notice within such forty-five (45) Business Day period (or such other period as the parties may have mutually agreed), the right of
the Lenders to provide such notice shall terminate. 
 (d) The Lenders agree to share any payments that they receive from the Borrower in
respect of any principal of or interest on any Line of Credit Loans to the extent necessary to ensure that each Lender receives its ratable portion of any such payment made by the Borrower hereunder. 
 2.4 Registration Rights. 
 (a)
Registration of Repayment Shares. The Borrower shall file with the SEC, as soon as possible, but in any event, within five (5) Business Days following each Share Payment Date, a Lender Registration Statement. The Borrower shall
use its commercially reasonable efforts to cause each Lender Registration Statement to be declared effective by the SEC as soon as practicable, but in no event later than ninety (90) days following the applicable Share Payment Date (the
“Target Effective Date”). In the event that such Lender Registration Statement is not declared effective by the applicable Target Effective Date, then interest shall be deemed to have accrued on an amount equal to the product
obtained by multiplying the number of Repayment Shares delivered by Borrower on the applicable Share Payment Date by the Share Payment Price (“Share Payment Amount”) at the Default Rate from the applicable Share Payment Date and
shall continue to accrue until such Share Payment Amount is paid in cash, and such accrued interest shall be paid in cash on the applicable Target Effective Date and on each one-month anniversary of the applicable Target Effective Date. The Borrower
shall cause the Lender Registration Statement to remain effective under the Securities Act until all Repayment Shares covered by such Lender Registration Statement have been sold or may be sold without volume restrictions pursuant to Rule 144 under
the Securities Act. The Borrower shall promptly, and any event within two (2) Business Days, notify the Lenders of the effectiveness of a Lender Registration Statement after the date that the Borrower confirms effectiveness with the SEC.

 (b) Registration Procedures. 
 (i) In connection with the filing by the Borrower of a Lender Registration Statement, the Borrower shall furnish to the Lenders a copy of the prospectus, including a preliminary prospectus, in conformity with the
requirements of the Securities Act. 
 (ii) The Borrower shall use its commercially reasonable efforts to register or qualify the Repayment
Shares covered by a Lender Registration Statement under the securities laws of each state of the United States; provided, however, that the Borrower shall not be required in connection with this paragraph (b) to qualify as a foreign corporation
or execute a general consent to service of process in any jurisdiction. 
  

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 (iii) If the Borrower has delivered preliminary or final prospectuses to the Lenders and after having
done so the prospectus is amended or supplemented to comply with the requirements of the Securities Act, the Borrower shall promptly notify each Lender and, if requested by the Borrower, such Lender shall immediately cease making offers or sales of
shares under a Lender Registration Statement and return all prospectuses to the Borrower. The Borrower shall promptly provide each Lender with revised or supplemented prospectuses and, following receipt of the revised or supplemented prospectuses,
such Lender shall be free to resume making offers and sales under a Lender Registration Statement. 
 (iv) The Borrower shall pay the
expenses incurred by it in complying with its obligations under this Section 2.4(b), including all registration and filing fees, exchange listing fees, fees and expenses of counsel for the Borrower, and fees and expenses of accountants for the
Borrower, but excluding (A) any brokerage fees, selling commissions or underwriting discounts incurred by a Lender in connection with sales under a Lender Registration Statement and (B) the fees and expenses of any counsel retained by the
Lender. 
 (v) The Borrower shall not file any other registration statements, other than registration statements on Form S-4 or Form S-8,
until the initial Lender Registration Statement required hereunder is declared effective by the Commission, provided that this Section 2.4(b) shall not prohibit the Borrower from filing amendments to registration statements already filed.

 (vi) If for any reason the SEC does not permit the registration of all of the Repayment Shares in the initial Lender Registration
Statement filed pursuant to Section 2.4(b), then the Borrower shall file as soon as reasonably practicable an additional Lender Registration Statement covering the resale by the Lenders of any previously unregistered Repayment Shares on the
first date after which the SEC will permit the filing of a Lender Registration Statement covering any such remaining Repayment Shares. 
 (vii) The Borrower shall use its commercially reasonable efforts to avoid the issuance of any order suspending the effectiveness of a Lender Registration Statement, or any suspension of the qualifications (or exemption from qualification)
of any of the Repayment Shares for sale in any jurisdiction. The Borrower shall advise the Lenders promptly after it shall receive notice of any stop order or issuance of any order by the SEC delaying or suspending the effectiveness of a Lender
Registration Statement covering the Repayment Shares or of the initiation of any proceeding for that purpose, and it will promptly use its commercially reasonable efforts to prevent the issuance of any stop order or to obtain its withdrawal at the
earliest possible moment if such stop order should be issued. 
 (c) Requirements of the Lenders. Each of the Lenders agrees
to report to the Borrower sales made pursuant to the Lender Registration Statement and that it will comply with the prospectus delivery requirements of the Securities Act as applicable to it. 
  

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 (d) Indemnification. 
 (i) The Borrower agrees to indemnify and hold harmless each Lender and their Associated Companies, and each other person, if any, who controls such
Lender and their Associated Companies within the meaning of the Securities Act or Exchange Act from and against any losses, claims, damages or liabilities to which such Lender and their Associated Companies, or controlling person may become subject
(under the Securities Act, the Exchange Act, state securities or Blue Sky laws or otherwise) insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise out of, or are based upon any untrue statement
of a material fact contained in any Lender Registration Statement covering the Repayment Shares or in any preliminary prospectus or final prospectus contained in such Lender Registration Statement, or any amendment or supplement to such Lender
Registration Statement, or the omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, and the Borrower will reimburse each Lender and its Associated Companies,
or controlling person for any reasonable legal or other expenses reasonably incurred in investigating, defending or preparing to defend any such action, proceeding or claim, or preparing to defend any such action, proceeding or claim;
provided, however, that the Borrower shall not be liable in any such case to the extent that such loss, claim, damage or liability arises out of, or is based upon, an untrue statement made in such Lender Registration Statement,
preliminary prospectus or prospectus, or any amendment or supplement in reliance upon and in conformity with written information furnished to the Borrower by or on behalf of such Lender and their Associated Companies, or controlling person
specifically for use in the preparation thereof or any statement or omission in any prospectus that is corrected in any subsequent prospectus that was delivered to such Lender prior to the pertinent sale or sales by such Lender. 
 (ii) Each Lender, severally and not jointly, agrees to indemnify and hold harmless the Borrower, each underwriter and each person, if any, who controls
the Borrower within the meaning of Section 15 of the Securities Act, each officer of the Borrower who signs the Lender Registration Statement and each director of the Borrower, from and against any losses, claims, damages or liabilities to
which the Borrower or any such underwriter, officer, director or controlling person may become subject (under the Securities Act, the Exchange Act, state securities or Blue Sky laws or otherwise), insofar as such losses, claims, damages or
liabilities (or actions or proceedings in respect thereof) arise out of, or are based upon any untrue statement of a material fact contained in any Lender Registration Statement covering the Repayment Shares or in any preliminary prospectus, final
prospectus contained in such Lender Registration Statement, or any amendment or supplement to such Lender Registration Statement or the omission or alleged omission to state a material fact required to be stated therein or necessary to make the
statements therein not misleading, if such untrue statement or omission was made in reliance upon and in conformity with written information furnished by or on behalf of such Lender specifically for use in preparation of the Lender Registration
Statement, prospectus, amendment or supplement and such Lender will reimburse the Borrower, or such underwriter, officer, director or controlling person, as the case may be, for any legal or other expenses reasonably incurred in investigating,
defending or preparing to defend any such action, proceeding or claim; provided, however, that the Lender’s obligation to indemnify the Borrower shall be limited to the net amount received by such Lender from the sale of the
Repayment Shares. 
 (iii) Promptly after receipt by any indemnified person of a notice of a claim or the beginning of any action in respect
of which indemnity is to be sought against an indemnifying person pursuant to this Section 2.4(d), such indemnified person shall notify the 

  

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indemnifying person in writing of such claim or of the commencement of such action, but the omission to so notify the indemnifying party will not relieve it
from any liability which it may have to any indemnified party under this Section 2.4(d) (except to the extent that such omission materially and adversely affects the indemnifying party’s ability to defend such action). Subject to the
provisions hereinafter stated, in case any such action shall be brought against an indemnified person, the indemnifying person shall be entitled to participate therein, and, to the extent that it shall elect by written notice delivered to the
indemnified party promptly after receiving the aforesaid notice from such indemnified party, shall be entitled to assume the defense thereof, with counsel reasonably satisfactory to such indemnified person. After notice from the indemnifying person
to such indemnified person of its election to assume the defense thereof, such indemnifying person shall not be liable to such indemnified person for any legal expenses subsequently incurred by such indemnified person in connection with the defense
thereof; provided, however, that if there exists or shall exist a conflict of interest that would make it inappropriate, in the opinion of counsel to the indemnified person, for the same counsel to represent both the indemnified person
and such indemnifying person or any affiliate or Associated Company or associate thereof, the indemnified person shall be entitled to retain its own counsel at the expense of such indemnifying person; provided, however, that no
indemnifying person shall be responsible for the fees and expenses of more than one separate counsel (together with appropriate local counsel) for all indemnified parties. In no event shall any indemnifying person be liable in respect of any amounts
paid in settlement of any action unless the indemnifying person shall have approved the terms of such settlement; provided, however, that such consent shall not be unreasonably withheld. No indemnifying person shall, without the prior
written consent of the indemnified person, effect any settlement of any pending or threatened proceeding in respect of which any indemnified person is or could have been a party and indemnification could have been sought hereunder by such
indemnified person, unless such settlement includes an unconditional release of such indemnified person from all liability on claims that are the subject matter of such proceeding. 
 (iv) If the indemnification provided for in this Section 2.4(d) is unavailable to or insufficient to hold harmless an indemnified party under
paragraph (i) or (ii) above in respect of any losses, claims, damages or liabilities (or actions or proceedings in respect thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative fault of the Borrower on the one hand and the Lenders, as well as any other
holders under such Lender Registration Statement on the other hand, in connection with the statements or omissions or other matters which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other
relevant equitable considerations. The relative fault shall be determined by reference to, among ether things, in the case of an untrue statement, whether the untrue statement relates to information supplied by the Borrower on the one hand or a
Lender or other holder on the other hand and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement. The Borrower and the Lenders agree that it would not be just and equitable
if contribution pursuant to this paragraph (iv) were determined by pro rata allocation (even if the Lenders and Other Holders were treated as one entity for such purpose) or by any other method of allocation which does not take into account the
equitable considerations referred to above in this paragraph (iv). The amount paid or payable by an indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this paragraph
(iv) shall be deemed to include any legal or other expenses reasonably incurred 

  

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by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this paragraph (iv), a
Lender shall not be required to contribute any amount in excess of the amount by which the net amount received by such Lender from the sale of the Repayment Shares to which such loss relates exceeds the amount of any damages which such Lender has
otherwise been required to pay by reason of such untrue statement. 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. 
 (v) The rights and obligation of the Borrower and the Lenders under this Section 2.4(d) shall
survive the termination of this Credit Agreement. 
 (e) Assignment of Rights. The Lender may not assign any of its rights
under this Section 2.4 except in connection with the transfer of some or all of its Repayment Shares to one or more of its Associated Companies, provided each such transferee agrees in a written instrument delivered to the Borrower to be bound
by the provisions of this Section 2.4. 
 2.5 Usury Savings Clause. Notwithstanding any other provision herein, the aggregate
interest rate charged with respect to any of the Obligations, shall not exceed the Highest Lawful Rate. If the rate of interest (determined without regard to the preceding sentence) under this Credit Agreement at any time exceeds the Highest Lawful
Rate, the outstanding amount of the Line of Credit Loans made hereunder shall instead bear interest at the Highest Lawful Rate. Accordingly, if the Lenders contract for, charge, or receive any consideration which constitutes interest in excess of
the Highest Lawful Rate, then any such excess shall be cancelled automatically and, if previously paid, shall at the Lenders’ option be applied to the outstanding amount of the Line of Credit Loans made hereunder or be refunded to the Borrower.

 2.6 Early Termination. The obligations of the Lenders hereunder to make any Line of Credit Loans shall automatically terminate, and
this Credit Agreement will cease to have any force or effect, if by May 31, 2009 neither (i) the Second Closing Date, nor (ii) the termination of the Securities Purchase Agreement with respect to the Second Closing (as defined
therein) pursuant to Section 8.1(c) of the Securities Purchase Agreement on account of the occurrence of the condition set forth in Section 7.3(c) of the Securities Purchase Agreement, has occurred. 
 3. CONDITIONS PRECEDENT 
 3.1 Conditions to Effectiveness of this Credit Agreement. The effectiveness of this Credit Agreement shall be subject to the satisfaction of each of the following conditions precedent: (a) the Borrower
shall have furnished to the Lenders, or caused to be furnished to the Lenders (unless otherwise waived in writing), the following items: (i) a counterpart of this Credit Agreement duly executed by the Lenders and the Borrower; (ii) the
Line of Credit Notes duly executed by the Borrower; (iii) a certificate of the Borrower’s Secretary or Assistant Secretary certifying (A) copies of the resolutions of the Borrower’s Board of Directors approving this Credit
Agreement and the other Loan Documents, (B) copies of the Borrower’s certificate of incorporation and bylaws, and (C) the names and true signatures of the Borrower’s officers authorized to sign this Credit Agreement and to
request Line of Credit Loans hereunder, (iv) a certificate of an Authorized Officer dated the Initial Closing Date to the 

  

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effect that (A) there is no Event of Default or event or condition which upon notice, lapse of time or both would constitute an Event of Default and
(B) the representations and warranties of the Borrower set forth in this Agreement and the other Loan Documents (1) that are qualified by materiality shall be true and correct, and (2) that are not so qualified are true and correct in
all material respects as of such date and (v) a good standing certificate of the Borrower certified on or about the Initial Closing Date by the Secretary of State of Delaware, and (b) the Initial Closing Date shall have occurred.

 3.2 Conditions to Initial Line of Credit Loan. The obligation of the Lenders to make the initial Line of Credit Loan under this
Credit Agreement shall be subject to the satisfaction of each of the following conditions precedent: (a) the Borrower shall have furnished to the Lenders, or caused to be furnished to the Lenders (unless otherwise waived in writing), the
following items: (i) a certificate of the Borrower’s Secretary or Assistant Secretary certifying (A) copies of the resolutions of the Borrower’s Board of Directors approving this Credit Agreement and the other Loan Documents,
(B) copies of the Borrower’s certificate of incorporation and bylaws, and (C) the names and true signatures of the Borrower’s officers authorized to request Line of Credit Loans hereunder, (ii) a certificate of an Authorized
Officer dated the Second Closing Date to the effect that (A) there is no Event of Default or event or condition which upon notice, lapse of time or both would constitute an Event of Default and (B) the representations and warranties of the
Borrower set forth in this Agreement and the other Loan Documents (1) that are qualified by materiality shall be true and correct and (2) that are not so qualified, are true and correct in all material respects as of such date,
(iii) a written opinion of WilmerHale, counsel to the Borrower, dated the Second Closing Date and in the form attached hereto as Exhibit “D”, and (iv) a good standing certificate of the Borrower certified on or about the Second
Closing Date by the Secretary of State of Delaware, and (b) the Second Closing Date shall have occurred. 
 3.3 Conditions To All
Line of Credit Loans. The obligations of the Lenders to make any Line of Credit Loan shall also be subject to the satisfaction of each of the following conditions precedent: 
 (a) The following statements shall be true and correct on and as of the date of such Line of Credit Loan, both before and after giving effect thereto
and to the application of the proceeds therefrom: 
 (i) Each of the representations and warranties of the Borrower contained in this Credit
Agreement, and the Loan Documents are true and correct in all material respects (except that any representation and warranty that is qualified as to “materiality” or “Material Adverse Effect” shall be true and correct in all
respects) as of the date as of which they were made and as of the date the Line of Credit Loan is made (other than any such representations or warranties that, by their terms, refer to a date other than such dates, in which case such representations
and warranties were true and correct in all material respects (except that any representation and warranty that is qualified as to “materiality” or “Material Adverse Effect” shall be true and correct in all respects) on and as of
such earlier date); and 
 (ii) At the time of, and immediately after giving effect to, such Line of Credit Loan, no Event of Default or
event or condition which upon notice, lapse of time or both would constitute an Event of Default, has occurred and is continuing. 
  

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 (b) The Borrower shall have furnished to the Lenders a certificate of an Authorized Officer dated the
date the Line of Credit Loan is made certifying as to the accuracy of the matters specified in Section 3.3(a) (which may be included in the applicable Line of Credit Loan Request). 
 (c) The Borrower shall have furnished to the Lenders an executed Line of Credit Loan Request with respect to such Line of Credit Loan. 
 4. REPRESENTATIONS AND WARRANTIES. 
 4.1 By the Borrower. The Borrower represents and warrants to the Lenders that on the date hereof, and on the date of each and every Line of Credit
Loan made after the date hereof: 
 (a) Organization; Good Standing. The Borrower is duly organized, validly existing, and in
good standing under the laws of its jurisdiction of incorporation and is duly qualified and in good standing in every other jurisdiction where the conduct of its business or its ownership or location of its properties requires such qualification and
where the failure to be so qualified could not reasonably be expected to have a Material Adverse Effect. 
 (b) Corporate Power and
Authorization. The Borrower has the full corporate power and authority to execute and deliver this Credit Agreement and the other Loan Documents to which it is a party and to perform all of the obligations hereunder and thereunder,
and all necessary corporate action has been taken to execute, deliver and perform this Credit Agreement and the other Loan Documents to which it is a party and to make the borrowings hereunder. 
 (c) Non-Contravention. The execution and delivery by the Borrower, and the performance by Borrower of its obligations under this
Credit Agreement and the other Loan Documents to which it is a party: (i) are not in contravention of any provision of Borrower’s by-laws or charter; (ii) will not violate any law or regulation (including, without limitation,
Regulations T, U and X), or any order or decree of any court or governmental instrumentality in any material respect; and (iii) will not conflict with or result in the breach or termination of, constitute a default under, or accelerate any
performance required by, any indenture, mortgage, deed of trust, lease, or material agreement or other instrument to which the Borrower is a party or by which Borrower or any of its property is bound, except for any such conflict, breach,
termination, default or acceleration as would not have a Material Adverse Effect. 
 (d) Enforceable Obligations. This Credit
Agreement and the other Loan Documents to which the Borrower is a party each constitutes the legal, valid, and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization or similar laws generally affecting the enforcement of the rights of creditors. 
 (e) Investment
Company. The Borrower is not an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 
  

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 (f) Margin Regulations. The Borrower is not engaged in the business of extending credit
for the purpose of purchasing or carrying Margin Stock, and no proceeds of any Line of Credit Loan will be used to purchase or carry any Margin Stock or to extend credit to others for the purpose of purchasing or carrying any Margin Stock in
contravention of Regulations T, U and X. 
 (g) Solvency. The Borrower is Solvent. 
 (h) Taxes. The Borrower has timely filed all tax returns required to be filed by or on behalf of the Borrower or any predecessor
corporation, except to the extent that a failure to file would not have a Material Adverse Effect on the Borrower. All such filings are true, complete and correct in all material respects. The Borrower has not failed to timely pay any taxes,
including penalties and interest, assessments, fees and other charges thereon due or otherwise assessed other than (i) those such amounts being contested in good faith and for which adequate reserves have been provided in accordance with GAAP,
(ii) those amounts not yet due and payable and (iii) those failures to pay which would not have a Material Adverse Effect on the Borrower. 
 4.2 By the Lenders. In the event the Borrower proposes to issue Repayment Shares and as a condition precedent to such issuance to a Lender, such Lender represents and warrants to the Borrower that on the date
hereof, and on the date of each and every Line of Credit Loan made after the date hereof: 
 (a) Investment. It is acquiring
the Repayment Shares for its own account for investment and not with a view to, or for sale in connection with, any distribution thereof, nor with any present intention of distributing or selling the same; and such Lender has no present or
contemplated agreement, undertaking, arrangement, obligation, indebtedness or commitment providing for the disposition thereof. 
 (b)
Accredited Investor. Such Lender is an “accredited investor” as defined in Rule 501(a) under the Securities Act. 
 (c) Experience. Such Lender has made such inquiry concerning the Borrower and its business and personnel as it has deemed appropriate; and the Lender has sufficient knowledge and experience in finance and business that it is
capable of evaluating the risks and merits of its investment in the Borrower. 
 4.3 Share Repayment Representations. In the event the
Borrower proposes to issue Repayment Shares and as a condition precedent to such issuance to a Lender, the Borrower represents and warrants to the Lenders that on the Share Payment Date: 
 (a) SEC Filings; Financial Statements. The Borrower has timely filed all reports, schedules, forms, statements and other documents
required to be filed by it with the SEC under the Securities Act and the Exchange Act since January 1, 2007 (the “Borrower SEC Documents”) for the immediately preceding two (2) years. As of its filing, each Borrower SEC
Document, as amended or supplemented, if applicable, (i) complied in all material respects with the applicable requirements of the Securities Act or the Exchange Act, as applicable, and the rules and regulations thereunder and (ii) did

  

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not, at the time it was filed, 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 light of the circumstances under which they were made, not misleading. The financial statements of the Borrower included in the Borrower SEC Documents comply in all material respects with applicable accounting
requirements and the rules and regulations of the SEC with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with GAAP applied on a consistent basis during the periods involved, except as
may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the
Borrower and its subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, year-end audit adjustments. 
 (b) Status of Repayment Shares. The shares of Common Stock being issued on the Share Payment Date have been duly authorized by all
necessary corporate action on the part of the Company, and on such date the Common Stock (i) subject to the cancellation of indebtedness in an amount equal to the Share Payment Amount will have been validly issued and will be fully paid and
nonassessable, free and clear of all Liens imposed by the Borrower other than restrictions on transfer provided in this Credit Agreement, and (ii) will not be subject to any claims by the Borrower or any other Person that a Lender is an
“acquiring person” under any shareholder rights plan, including the Rights Agreement, or similar plan or arrangement in effect or hereafter adopted by the Borrower, or that any Lender could be deemed to trigger the provisions of any such
plan or arrangement, by virtue of receiving the Repayment Shares. The issuance of such Repayment Shares will not be subject to preemptive rights of any other shareholder of the Borrower. The Repayment Shares will be eligible for listing on the
NASDAQ Global Market (or such other stock exchange on which the Common Stock is then listed) and issued in accordance with the terms of this Credit Agreement. 
 5. COVENANTS. 
 5.1 Covenants. From and after the date on which the conditions
to the initial Line of Credit Loan set forth in Section 3.2 have been satisfied, unless the Lenders shall otherwise consent in writing, and while Obligations remain outstanding under this Credit Agreement or any Loan Document: 
 (a) Corporate Existence, etc. Borrower shall maintain its corporate existence and continue to engage in the same or related lines of
business. Borrower will maintain its assets and properties in good repair and working order, ordinary wear and tear excepted. 
 (b)
Compliance with Laws; Contracts. Borrower will comply with all applicable laws, ordinances, rules, regulations, and requirements of governmental authorities applicable to the Borrower except where the failure to comply would not have a
Material Adverse Effect. 
 (c) Taxes. The Borrower will timely file with the appropriate tax authorities all tax returns
required to be filed by or on behalf of the Borrower in all jurisdictions in which such tax returns are required to be filed, except where the failure to file would not have a Material Adverse Effect 

  

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on the Borrower. All such tax returns will be true and complete in all material respects. The Borrower will timely pay all taxes, including penalties and
interest, assessments, withholding taxes, fees and other charges thereon for which the Borrower is liable other than (i) those amounts being contested in good faith and for which adequate reserves have been established in accordance with GAAP,
(ii) those amounts not yet due and payable, and (iii) those failures to pay which would not have a Material Adverse Effect on the Borrower. To the extent applicable, the Borrower will furnish to the Lenders upon request receipts or other
evidence that deposits or payments have been made. 
 (d) Notice of Event of Default. The Borrower will furnish to each Lender
prompt written notice of the occurrence of any Event of Default. 
 (e) Margin Stock. No part of the proceeds of any
Line of Credit Loan will be used in violation of applicable law or, directly or indirectly, for the purpose, whether immediate, incidental or ultimate, of buying or carrying any Margin Stock. 
 (f) Further Actions. The Borrower and each Lender shall coordinate and cooperate with the other parties in exchanging such information and
supplying such reasonable assistance as may be reasonably requested by such other parties in connection with the filings and other actions contemplated by this Credit Agreement. The Borrower and each Lender will execute, acknowledge and deliver such
further instruments, and do all such other acts, as may be necessary or appropriate in order to carry out the purposes and intent of this Credit Agreement. 
 5.2 Repayment Shares Covenants. In the event the Borrower proposes to issue Repayment Shares, from and after the Share Payment Notice Date, unless (i) with respect to Sections 5.2(a) through (e), the
Lenders shall otherwise consent in writing and (ii) with respect to Sections 5.2(f) and (g), the Borrower shall otherwise consent in writing: 
 (a) Investment Company Act. The Borrower shall conduct its business in a manner so that it will not become subject to the Investment Company Act. 
 (b) SEC Filings; Financial Statements. The Borrower shall use commercially reasonable efforts to: (i) timely file any reports, forms, statements and documents required to be filed by it with the SEC
under the Securities Act or the Exchange Act (the “Future SEC Filings”) and use commercially reasonable efforts to (A) comply in all material respects with the applicable requirements of the Securities Act or the Exchange Act,
as applicable, and the rules and regulations thereunder and (B) ensure that the Future SEC Filings do 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 light of the circumstances under which they were made, not misleading; (ii) ensure that the financial statements of the Borrower included in the Future SEC Filings shall comply in all material respects with applicable
accounting requirements and the rules and regulations of the SEC with respect thereto as in effect at the time of filing; and (iii) ensure that the financial statements in its Future SEC Filings shall be prepared in accordance with GAAP applied
on a consistent basis during the periods involved, except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly
present in all material respects the financial position of the Borrower and its subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to
normal, year-end audit adjustments. 
  

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 (c) Listing of Common Stock. The Borrower shall take no action designed to, or which to
the Knowledge of the Borrower is likely to have the effect of, terminating the registration of the Repayment Shares under the Securities Exchange Act. The Borrower hereby agrees to use commercially reasonable efforts to maintain the listing of the
Repayment Shares on the NASDAQ Global Market (or such other stock exchange on which the Common Stock is then listed). The Borrower further agrees, if the Borrower applies to have the Repayment Shares traded on any other trading market, it will
include in such application all of the Repayment Shares, and will take such other action as is necessary to cause all of the Repayment Shares to be listed on such other trading market as promptly as possible. The Borrower will take all action
reasonably necessary to continue the listing and trading of its Common Stock on the NASDAQ Global Market or other stock exchange and will comply in all material respects with the Borrower’s reporting, filing and other obligations under the
bylaws or rules of the NASDAQ Global Market (or such other stock exchange on which the Common Stock is then listed). 
 (d) NASDAQ
Listing. The Repayment Shares shall have been approved for listing on the NASDAQ Global Market (or such other stock exchange on which the Common Stock is then listed), subject only to official notice of issuance. 
 (e) Shareholder Rights Plan. All shareholder rights plans, including the Rights Agreement, or similar plans or arrangements in effect that
any Lender could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Repayment Shares under this Credit Agreement will be revised to allow the Lenders to receive the Repayment Shares under this Credit
Agreement without being subject to any claims made or enforced by the Borrower or any other person that any Lender is an “acquiring person.” 
 (f) Delivery of Questionnaire. The Lenders agree to furnish to the Borrower a completed Questionnaire in the form attached to this Credit Agreement as Exhibit “C” upon reasonable
request. 
 (g) HSR Act. If the delivery of the Repayment Shares to the Lenders would require approval under the HSR Act, then
the Lenders shall promptly notify the Borrower in writing and, the Borrower and each of the Lenders shall, as promptly as practicable, make, or cause to be made, all filings and submissions under the HSR Act and give such reasonable undertakings as
may be required in connection therewith. 
 (h) Confidentiality. Each Lender agrees to treat as confidential (unless otherwise
publicly disclosed by the Borrower or a third party not to the knowledge of the Lender in breach of an agreement of confidentiality with the Borrower) any written notice from the Borrower regarding the Borrower’s plans to file a Lender
Registration Statement and shall not disclose such information to any other person, or use such information, except as is necessary to exercise its rights under this Credit Agreement. 
  

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 6. SUBORDINATION 
 6.1 General Subordination Provisions. The Obligations shall, to the extent and in the manner provided herein, be subordinated and
junior in right of payment to the prior payment in full of all Senior Indebtedness. 
 6.2 Blockage of Payments and Remedies.

 (a) No payment on account of principal, interest or otherwise on the Obligations shall be made, and the Borrower shall not be in default
hereunder, if, at the time of such payment or immediately after giving effect thereto, there shall exist an event of default with respect to any Senior Indebtedness and the holder of such Senior Indebtedness which is in default shall have provided
to the Lenders written notice thereof (a “Payment Blockage”); provided, however, if such event of default under the Senior Indebtedness is cured or otherwise no longer exists, any payments otherwise due hereunder, but
not due because of such event of default or which had not been paid when due hereunder due to the existence of a Payment Blockage, may be made; provided further, that so long as no such Payment Blockage is in effect, nothing in this
Section 6 shall prevent the Borrower from making payments (whether prepayments, payments at maturity or otherwise) to the Lenders of the Obligations; and provided further that nothing in this Section 6 shall prevent the
Borrower from making payment on the Obligations in Common Stock as provided in Section 2.3(b). 
 (b) The Lenders will not take or omit
to take any action or assert any claim with respect to the Obligations or otherwise which is inconsistent with the provisions of this Section 6; provided, however, the Lenders may exercise any or all rights or remedies hereunder
after the passage of a period of at least one hundred eighty (180) days from the date on which the holder of Senior Indebtedness has provided notice to the Lenders of the Payment Blockage (the “Standstill Period”). If a Payment
Blockage exists, the Lenders will not, subject to the expiration of the Standstill Period, assert, collect or enforce the Obligations or any part thereof or take any action to foreclose or realize upon such indebtedness or any part thereof except to
the extent (and only to the extent) that the commencement of a legal action may be required to toll the running of any applicable statute of limitation, or to the extent necessary to effectuate payment of the Obligations in Common Stock as provided
in Section 2.3(b). 
 6.3 Bankruptcy. In the event of any insolvency or bankruptcy proceedings, and any receivership,
liquidation, reorganization, whether voluntary or involuntary, or other similar proceedings in connection therewith (a “Reorganization”), relative to the Borrower, or its property, and, in the event of any proceedings for voluntary
liquidation, dissolution or other winding up of the Borrower or distribution or marshaling of its assets or any composition with its creditors, whether or not involving insolvency or bankruptcy, then all Senior Indebtedness shall be paid in full in
cash before any payment or distribution of any character, whether in cash, securities or other property, shall be made in respect of any Obligation. Notwithstanding the foregoing provisions of this Section 6, the Lenders shall be entitled to
receive and retain any securities of the Borrower or any other corporation or any other entity provided for by a plan of reorganization or readjustment (i) the payment of which securities is subordinate, at least to the extent provided in this
Section 6, to the payment of all Senior Indebtedness under any such plan of reorganization or readjustment and (ii) all other terms of which are acceptable to the holders of the Senior Indebtedness. 
  

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 6.4 Subrogation. Upon the payment in full of all Senior Indebtedness, the Lenders shall be
subrogated to the rights of the holders of Senior Indebtedness to receive payments or distributions of assets of the Borrower applicable to the Senior Indebtedness. 
 6.5 No Amendments to Note Without Consent. So long as any Senior Indebtedness is outstanding and has not been paid in full, the provisions of this Section 6 may not be amended or changed without the prior
consent of the holders of outstanding Senior Indebtedness. 
 6.6 Payments Held In Trust for Holders of Senior Indebtedness. All
payments or distributions upon or with respect to the Obligations, whether in cash or property, which are received by the Lenders contrary to the provisions hereof shall be received in trust for the benefit of the holders of Senior Indebtedness,
shall be segregated from other funds and property held by such holder and shall be forthwith paid over to the holders of Senior Indebtedness, until the Senior Indebtedness has been paid in full, in the same form as so received (with any necessary
endorsement) for application (in the case of cash) to, the payment or prepayment of the Senior Indebtedness until such remaining Senior Indebtedness shall have been paid in full. 
 6.7 Specific Performance of this Section 6. The holders of Senior Indebtedness are each hereby authorized to demand specific performance of
the provisions of this Section 6, whether or not the Lenders shall have complied with any of the provisions hereof applicable to them, at any time when the Lenders shall have failed to comply with any of the provisions hereof applicable to
them. The Lenders hereby irrevocably waive any defense based on the adequacy of a remedy at law, which might be asserted as a bar to the remedy of specific performance provided for herein. 
 6.8 Survival of Rights; Further Assurances. The provisions of this Section 6 shall not operate to limit the rights of any holder of Senior
Indebtedness under any separate subordination agreement applicable thereto. The Lenders hereby agree, upon the reasonable request of the holder of the Senior Indebtedness from time to time, to execute such other documents or instruments as may be
reasonably requested by the holders of the Senior Indebtedness further to evidence of public record or otherwise the senior priority of the Senior Indebtedness as contemplated hereby. 
 7. EVENTS OF DEFAULT. The occurrence of any one or more of the following events shall constitute an
“Event of Default”: 
 7.1 Failure to Pay. The Borrower shall fail to pay any principal, interest or any other amount
payable under this Credit Agreement or any other Loan Document and such failure shall continue for five (5) Business Days after the date when due hereunder (it being understood that if the Borrower has given a Share Payment Notice but the
Borrower fails to make (or be able to make) any payment in Repayment Shares in connection therewith due to any Lender’s failure to comply with any of the covenants set forth in Sections 5.2(f), (g) or (h), or instead pays the applicable
amount in cash in accordance with Section 2.3(b), such failure to make a payment in Repayment Shares shall not constitute an Event of Default under any provision of this Section 7). 
 7.2 Incorrectness of any Representation or Warranty. Any material representation or warranty made or deemed made in this Credit Agreement or any
other Loan Document by the Borrower to the Lenders shall have been false or misleading in any material respect when made or deemed made. 
  

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 7.3 Failure to Observe or Perform Covenants, Conditions or Agreements. The Borrower shall fail to
observe or perform any covenant, condition or agreement (other than those specified in Section 7.1 of this Credit Agreement), and such failure shall continue for more than thirty (30) days after the earlier of (a) the date on which an
Authorized Officer obtains actual knowledge of such failure and (b) the date on which a Lender has given written notice of such failure to the Borrower. 
 7.4 Bankruptcy, et al. The Borrower generally does not pay its debts as such debts become due, or admits in writing its inability to pay its debts generally, or makes a general assignment for the benefit of
creditors; any proceeding is instituted by or against the Borrower seeking to adjudicate the Borrower a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of the
Borrower or the Borrower’s debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a custodian, receiver, trustee or other similar official
for the Borrower or for any substantial part of the Borrower’s property, and, in the case of any such proceeding instituted against the Borrower or its property, such proceeding remains undismissed or unstayed for a period of ninety
(90) days. 
 7.5 Change in Control. A Change in Control of the kind described in (A) clause (a) or clause (b) of
the definition of such term shall have occurred or (B) clause (c)(i) or clause (c)(ii) of the definition of such term shall have occurred and the Global Strategic Alliance Agreement shall have terminated pursuant to Section 10.2(c)
thereof. 
 7.6 Cross Acceleration. The Borrower shall fail to pay any principal of or interest on any mortgage, agreement or other
instrument under which there may be outstanding any of the Borrower’s indebtedness for money borrowed in excess of $5,000,000, whether such indebtedness for money borrowed exists or shall hereafter be created, resulting in such indebtedness for
money borrowed being accelerated in full, and such acceleration shall not have been rescinded or annulled within fifteen (15) days after written notice of such acceleration has been received by the Borrower, provided that if such default is
cured, waived, rescinded or annulled, then the Event of Default hereunder by reason thereof would be deemed to not have occurred. 
 8.
ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES. 
 8.1
Acceleration. If any Event of Default under Section 7.4 hereof occurs with respect to the Borrower, the obligation of the Lenders to make further Line of Credit Loans under this Credit Agreement shall automatically terminate and the
Obligations shall immediately become due and payable without any election, notice or action on the part of the Lenders. If another Event of Default occurs, or the Line of Credit Maturity Date occurs, the Lenders may declare the Obligations to be due
and payable, whereupon the Obligations shall become immediately due and payable, without presentment, demand, protest or notice of any kind, all of which the Borrower hereby expressly waives. 
  

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 8.2 Further Remedies. 
 (a) Upon the occurrence and during the continuance of an Event of Default or upon the occurrence of the Line of Credit Maturity Date, in addition to any
and all other remedies available to the Lenders hereunder or under any other Loan Document or otherwise, the Lenders may exercise any one or more of the following rights and remedies (all of which shall be cumulative): 
 (i) Terminate any further commitment or obligation of the Lenders to make any Line of Credit Loans under this Credit Agreement. 
 (ii) Exercise any and all rights and remedies hereunder, under the Line of Credit Note and under each and any other Loan Document with the Lenders; and
exercise all other rights and remedies which the Lenders may have under applicable law. 
 8.3 Preservation of Rights; No Adverse Impact;
Waivers; and Amendments. No delay or omission of the exercise of any right under this Credit Agreement or any of the Loan Documents shall impair such right or be construed to be a waiver or an acquiescence therein. Any single or partial exercise
of any such right shall not preclude other or further exercise thereof or the exercise of any other right, and no waiver, amendment or other variation of the terms, conditions or provisions of the Loan Documents, whatsoever, shall be valid unless in
writing signed by the Lenders and the Borrower, and then only to the extent in such writing specifically set forth. All remedies contained in the Loan Documents, or by law afforded, shall be cumulative. 
 8.4 Application of Proceeds. Any and all amounts realized or obtained by the Lenders upon exercise of its or their rights and remedies hereunder
shall be applied to the amounts outstanding under this Credit Agreement or any other Loan Document, after payment of any and all costs and expenses as provided herein, in such order as the Lenders shall determine. 
 9. GENERAL PROVISIONS. 
 9.1 Entire Agreement; Amendments; Invalidity. This Credit Agreement and the other Loan Documents constitute the entire agreement and understanding of the parties, and supersede and replace in their entirety any
prior discussions, agreements, etc., all of which are merged herein and therein. None of the terms of this Credit Agreement or any of the other Loan Documents may be amended or otherwise modified except by an instrument executed by each of the
Borrower and the Lenders. If any term of this Credit Agreement or any other Loan Document shall be held to be invalid, illegal or unenforceable, the validity of all other terms hereof shall in no way be affected thereby, and this Credit Agreement
and the other Loan Documents shall be construed and be enforceable as if such invalid, illegal or unenforceable term had not been included herein. Section headings in this Credit Agreement and the Loan Documents are for convenience of reference
only, and shall not govern the interpretation of any of the provisions of this Credit Agreement or any of the Loan Documents. 
 9.2 No
Third Party Beneficiary. This Credit Agreement shall not be construed so as to confer any right or benefit upon any person or entity other than the parties to this Credit Agreement and their respective successors and assigns. 
  

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 9.3 Indemnification; Expenses. 
 (a) The Borrower shall indemnify the Lenders and their Associated Companies and the partners, directors, officers, employees, agents and advisors of such
Lender and their Associated Companies (each such person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related reasonable expenses
(including the reasonable fees, charges and disbursements of any counsel for any Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by any third party or by the Borrower arising out of or as a result of (i) the Lenders
being party to this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the
transactions contemplated hereby or thereby, (ii) any Line of Credit Loan or the use or proposed use of proceeds therefrom, or (iii) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory, whether brought by a third party or by the Borrower, and regardless of whether any Indemnitee is a party thereto, provided that such indemnity shall not, as to any Indemnitee, be available
to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of such Indemnitee. 
 (b) The Borrower agrees to pay to the Lenders, within thirty (30) days after written demand (which shall include reasonable documentation), any and
all reasonable costs, expenses, and fees incurred by the Lenders including, without limitation, the reasonable fees, charges and disbursements of counsel for the Lenders in connection with the collection, enforcement, preservation or protection of
its rights in connection with this Credit Agreement and the other Loan Documents, including its rights under this Section, or in connection with the Line of Credit Loans made; provided that such costs and expenses shall only include the fees
and expenses of a single counsel shared by the Lenders. 
 9.4 Governing Law. THIS CREDIT AGREEMENT AND EACH OF THE OTHER LOAN
DOCUMENTS (OTHER THAN THOSE CONTAINING A CONTRARY EXPRESS CHOICE OF LAW PROVISION) SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF NEW YORK. 
 9.5 Consent to Jurisdiction. THE BORROWER AND THE LENDERS EACH HEREBY IRREVOCABLY SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF THE STATE COURTS OF
THE STATE OF NEW YORK AND THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF OR RELATING TO THIS CREDIT AGREEMENT OR ANY LOAN DOCUMENTS AND THE BORROWER AND
THE LENDERS EACH HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT,
ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. The Borrower and the Lenders each hereby further agrees to service of process in any such suit being made upon such party by mail at the address specified for
notices in Section 9.8 hereof. 
  

 - 24 - 

 9.6 Waiver of Jury Trial. THE BORROWER AND THE LENDERS EACH WAIVES ITS RIGHT TO A JURY TRIAL WITH
RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS CREDIT AGREEMENT OR ANY LOAN DOCUMENT, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR THEREUNDER OR THE PERFORMANCE OF ANY SUCH RIGHTS OR OBLIGATIONS. 
 9.7 Successors and Assigns. This Credit Agreement and the other Loan Documents shall be binding upon, and inure to the benefit of the Borrower,
the Lenders and each of their respective successors and assigns of the Borrower, except that (a) the Borrower will not have the right to assign the Borrower’s rights or obligations hereunder or thereunder or any interest herein or therein
without the Lenders’ prior written consent, and (b) neither Lender shall have the right to assign any of its rights or obligations hereunder or thereunder or any interest herein or therein without the Borrower’s prior written consent;
provided, however, the Borrower’s prior written consent shall not be required for any assignment upon the occurrence and continuation of an Event of Default; provided, further, the Borrower’s prior written consent
shall not be required for any assignment by any Lender of its rights and obligations hereunder to an Associated Company of such Lender so long as such assignee shall be able to perform the obligations of a Lender hereunder.  
 9.8 Notices. All notices and other communications required or permitted under this Credit Agreement shall be in writing and addressed to the
Borrower or the Lenders, as the case may be, at their respective addresses set forth below: 
 If to the Borrower: 
 Infinity Pharmaceuticals, Inc. 
 780 Memorial
Drive 
 Cambridge, Massachusetts 02139 
 Attn: Adelene Q. Perkins, President 
 Telephone (617) 453-1000 
 Facsimile: (617) 453-1001 
 With copies
to: 
 Infinity Pharmaceuticals, Inc. 
 780 Memorial Drive 
 Cambridge, Massachusetts 02139 
 Attn: Gerald E. Quirk, Esq., General Counsel 
 Telephone (617) 453-1000 
 Facsimile: (617) 453-1001 
 and to

 Wilmer Cutler Pickering Hale and Dorr LLP 
 60 State Street 
 Boston, Massachusetts 01209 
 Attn: Steven D. Singer, Esq. 
  

 - 25 - 

 Telephone (617) 526-6000 
 Facsimile: (617) 526-5000 
 If to the
Lenders, at the address set forth on Schedule “I” hereto. 
 With copies to: 
 Chadbourne & Parke LLP 
 30
Rockefeller Plaza 
 New York, New York 10112 
 Attn: Stuart D. Baker 
 Telephone (212) 408-5100 
 Facsimile: (212) 541-5369 
 All notices and other
communications required or permitted under this Credit Agreement shall be effective upon the earlier of actual receipt thereof by the person to whom notice is directed or (a) in the case of notices and communications sent by personal delivery
or telecopy, one (1) Business Day after such notice or communication arrives at the applicable address or was successfully sent to the applicable telecopy number, (b) in the case of notices and communications sent by overnight delivery
service, at noon (local time) on the second Business Day following the day such notice or communications was delivered to such delivery service, and (c) in the case of notices and communications sent by United States mail, three (3) days
after such notice or communication shall have been deposited in the United States mail. Any notice delivered to a party hereunder shall be sent simultaneously, by the same means, to such party’s counsel as set forth above. 
 9.9 Counterparts. This Credit Agreement may be executed in any number of separate counterparts, all of which, when taken together, shall
constitute one and the same instrument, notwithstanding the fact that all parties did not sign the same counterpart. 
 9.10 No Waiver by
Lender, Etc. Neither the Borrower nor the Lenders shall be deemed to have waived any of their respective rights upon or under this Credit Agreement or any of the other Loan Documents unless such waiver shall be in writing and signed by
the waiving party. No delay or omission on the part of either the Borrower or the Lenders in exercising any right shall operate as a waiver of such right or any other right. A waiver on any one occasion shall not be construed as a bar to or waiver
of any right on any future occasion. All rights and remedies under this Credit Agreement or any of the other Loan Documents shall be cumulative and may be exercised singularly, alternatively, successively or concurrently at such time or at such
times as the exercising party deems expedient. 
 9.11 Confidentiality. The Lenders shall maintain all information provided them by or
on behalf of the Borrowers in accordance with the confidentiality provisions of the Confidentiality Agreement (whether or not any such Lender is an actual party to such agreement). 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 - 26 - 

 IN WITNESS WHEREOF, this Credit
Agreement has been duly executed as an instrument under seal as of the date first set forth above. 
  

									
	BORROWER:	 		 		 	INFINITY PHARMACEUTICALS, INC.
					
		 		 		 	By:	 	 /s/    Adelene Q. Perkins

		 		 		 	Printed Name:	 	Adelene Q. Perkins
		 		 		 	Title:	 	President and Chief Business Officer
				
	LENDERS: 	 		 		 	PURDUE PHARMA L.P.
					
		 		 		 	By:	 	 Purdue Pharma Inc.
 its general
partner,

					
		 		 		 	By:	 	 /s/    Edward B. Mahony

		 		 		 	Printed Name:	 	 Edward B. Mahony

		 		 		 	Title:	 	 Executive V.P. and Chief Financial Officer

				
		 		 		 	PURDUE PHARMACEUTICAL PRODUCTS L.P.
					
		 		 		 	By:	 	 Purdue Pharmaceutical Products Inc.
 its general
partner,

					
		 		 		 	By:	 	 /s/    Edward B. Mahony

		 		 		 	Printed Name:	 	 Edward B. Mahony

		 		 		 	Title:	 	 Executive V.P. and Chief Financial Officer

  

 - 27 - 

 SCHEDULE “I” 
 Addresses of Lenders 
 Purdue Pharma L.P. 
 One Stamford Forum 
 201 Tresser Blvd. 
 Stamford, CT 06901-3431, USA 
 Purdue Pharmaceutical Products L.P. 
 One Stamford Forum 
 201 Tresser Blvd. 
 Stamford, CT 06901-3431, USA 

 EXHIBIT “A” 
 THE SECURITIES REPRESENTED BY THIS LINE OF CREDIT NOTE, OR ISSUED IN PAYMENT HEREOF, HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OTHERWISE
DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR AN APPLICABLE EXEMPTION TO THE REGISTRATION REQUIREMENTS OF SUCH ACT OR SUCH LAWS. 
 LINE OF CREDIT NOTE 
  

			
	 $25,000,000.00
	 	November     , 2008
		 	Cambridge, Massachusetts

 FOR VALUE RECEIVED, on the Line of Credit Maturity Date, INFINITY
PHARMACEUTICALS, INC., a Delaware corporation having a principal place of business at 780 Memorial Drive, Cambridge, Massachusetts 02139 (the “Borrower”), promises to pay to
[PURDUE PHARMA L.P., a Delaware limited partnership]/[PURDUE PHARMACEUTICAL PRODUCTS L.P., a Delaware limited partnership] (the “Lender”), or
order, at the address specified pursuant to Section 9.8 of the Credit Agreement (defined below), or such other place as Lender or any holder hereof may from time to time designate, the principal sum of (a) Twenty-Five Million and 00/XX
Dollars ($25,000,000.00) or, if less, the aggregate unpaid principal amount of all Line of Credit Loans made by Lender to Borrower, plus (b) any and all Additional Interest which remains unpaid and outstanding, in United States Dollars and in
immediately available funds as provided in the Line of Credit Agreement, dated as of even date among the Borrower and the lenders party thereto (as amended and in effect from time to time, the “Credit Agreement”), together with
interest on the unpaid principal amount hereof from time to time outstanding at the rate and on the dates set forth in the Credit Agreement. 
 This Line of Credit Note is a Line of Credit Note issued pursuant to, and is entitled to the benefits of, the Credit Agreement, as it may be amended from time to time. Reference is hereby made thereto for a statement of the terms and
conditions under which this Line of Credit Note may be paid, prepaid or its maturity date accelerated. Capitalized terms used herein and not otherwise defined herein are used with the meanings attributed to them in the Credit Agreement. This Line of
Credit Note is subject to obligations as set forth in the Credit Agreement. 
 The Lender shall, and is hereby authorized to, record on the
schedule attached hereto, or to otherwise record in accordance with its usual practice, the date and amount of each Line of Credit Loan and addition of Additional Interest and the date and amount of each principal payment and each payment of each
Line of Credit Loan and each Additional Interest hereunder. 
 If the Line of Credit Maturity Date shall have occurred or an Event of Default
shall have occurred and be continuing, then and in any such event, Lender may, at its option, declare any and all of the Borrower’s obligations, liabilities and indebtednesses owing by Borrower under this Line of Credit Note, the Credit
Agreement and any other Loan Document (collectively, the “Obligations”) to be due and payable, all in accordance with the provisions of the Credit Agreement. 
  

 A-1 

 EXHIBIT “A” 
 The Borrower shall pay all Lenders’ reasonable costs and expenses (including, without limitation, all reasonable attorneys’ fees and expenses) as provided in the Credit Agreement. 
 No delay or omission on the part of the Lender in exercising any right hereunder shall operate as a waiver of such right or of any other right of Lender,
nor shall any delay, omission or waiver on any one occasion be deemed a bar to or waiver of the same or any other right on any future occasion. The Borrower and every endorser or guarantor of this Line of Credit Note regardless of the time, order or
place of signing waives presentment, demand, protest and notices (other than notices specifically provided for in this Line of Credit Note, the Credit Agreement or the other Loan Documents) of every kind and assents to any extension or postponement
of the time of payment or any other indulgence, to any substitution, exchange or release of collateral, and to the addition or release of any other party or person primarily or secondarily liable. 
 None of the terms or provisions of this Line of Credit Note may be excluded, modified, or amended except by a written instrument duly executed as
provided in the Credit Agreement. This Line of Credit Note shall be binding upon, and inure to the benefit of the Borrower, the Lender and their respective successors and assigns as provided in the Credit Agreement. If any term or provision of this
Line of Credit Note shall be held to be invalid or unenforceable, in whole or in part in any jurisdiction, then such invalidity or unenforceability shall only effect such term or provision, and shall not effect such term or provision in any other
jurisdiction or any other term or provision of this Line of Credit Note. 
 WITHOUT LIMITING THE PROVISIONS OF THE CREDIT AGREEMENT, BORROWER
AGREES THAT ANY SUIT FOR THE ENFORCEMENT OF THIS LINE OF CREDIT NOTE MAY BE BROUGHT IN THE STATE COURTS OF THE STATE OF NEW YORK OR ANY FEDERAL COURT SITTING THEREIN AND CONSENTS TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURTS AND SERVICE OF PROCESS
IN ANY SUCH SUIT BEING MADE UPON THE BORROWER AT THE ADDRESS PROVIDED IN THE CREDIT AGREEMENT FOR NOTICES. BORROWER HEREBY WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH SUIT OR ANY SUCH COURT OR THAT SUCH SUIT IS
BROUGHT IN AN INCONVENIENT COURT. 
 Borrower hereby waives its right to a jury trial with respect to any action or claim arising out of any
dispute in connection with this Line of Credit Note or any of the other Loan Documents, any rights or obligations hereunder or thereunder or the performance of such rights and obligations. 
 All rights and obligations hereunder shall be governed by the laws of the State of New York (without giving effect to principles of conflicts or choice
of laws). 
  

									
	Attest:	 		 		 	INFINITY PHARMACEUTICALS, INC.
				
	  
	 		 	By	 	  

	Name:	 	  
	 		 	Name:	 	  

		 		 		 	Title:	 	  

  

 A-2 

 EXHIBIT “A” 
 SCHEDULE OF 
 LINE OF CREDIT LOANS AND ADDITIONAL INTEREST 
 AND PAYMENTS ON LINE OF CREDIT NOTE, DATED NOVEMBER     , 2008 
  

									
	Date	  	 Principal
 Amount of
 Line of Credit Loan,
 and/or Amount of
 Unpaid Additional
 Interest
	  	 Maturity
 of Interest
 Period
	  	 Principal
 Amount
 Paid
	  	 Unpaid
 Balance

		  		  		  		  	    

  

 A-3 

 EXHIBIT “B” 
 LINE OF CREDIT LOAN REQUEST 
 The undersigned, being a duly elected and acting Authorized Officer of INFINITY PHARMACEUTICALS, INC., a Delaware corporation (“Borrower”), does hereby request that the
Lenders make a Line of Credit Loan, in the aggregate amount of $             on
                    , 200   [Note – enter a date prior to the Line of Credit Advance Termination Date], the
proceeds of which shall be transferred to Borrower’s account as follows: 
 Account Name: 
 Bank Name: 
 Bank Address: 
 Attention: 
 Telephone: 
 Account Number: 
 ABA Number: 
 In support of this Line of Credit Loan Request, the Borrower hereby certifies to PURDUE PHARMA L.P., a Delaware limited partnership (“Purdue Pharma”) and
PURDUE PHARMACEUTICAL PRODUCTS L.P., a Delaware limited partnership (“PPP”, and together with Purdue Pharma, the “Lenders” and individually, each a
“Lender”) in connection with that certain LINE OF CREDIT AGREEMENT, dated as of November 19, 2008 among the Borrower and the Lenders (the
“Credit Agreement”; with other capitalized terms used below having the meanings ascribed thereto in the Credit Agreement) that: 
 1. Each of the representations and warranties of the Borrower contained in the Credit Agreement and the Loan Documents are true and correct in all material respects (except that any representation and warranty that is qualified as to
“materiality” or “Material Adverse Effect” shall be true and correct in all material respects) as of the date as of which they were made and as of the date the Line of Credit Loan is made (other than any such representations or
warranties that, by their terms, refer to a date other than such dates, in which case such representations and warranties were true and correct in all material respects (except that any representation and warranty that is qualified as to
“materiality” or “Material Adverse Effect” shall be true and correct in all respects) on and as of such earlier date); and 
 2. At the time of, and immediately after giving effect to, the such Line of Credit Loan, no Event of Default or event or condition which upon notice, lapse of time or both would constitute an Event of Default, has occurred and is
continuing. 
 Dated:             , 200   
  

			
	BORROWER:
	
	INFINITY PHARMACEUTICALS, INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 B-1 

 EXHIBIT “C” 
 QUESTIONNAIRE 
  

									
	1. Name.
		
	(a)	  	Full Legal Name of Selling Securityholder
	
	  

		
	(b)	  	Full Legal Name of Registered Holder (if not the same as (a) above) through which Registrable Securities Listed in Item 3 below are held:
	
	  

		
	(c)	  	Full Legal Name of Natural Control Person (which means a natural person who directly or indirectly alone or with others has power to vote or dispose of the securities covered by
the questionnaire):
	
	  

		
	2.	  	Address for Notices to Selling Securityholder:
	
	Fax:                                       
                                         
                                         
                                         
                                         
     
	
	Contact Person:                                    
                                         
                                         
                                         
                                
		
	3.	  	Beneficial Ownership of Registrable Securities:
		
	(a)	  	Type and Number of Registrable Securities beneficially owned:
		
	4.	  	Broker-Dealer Status:
		
	(a)	  	Are you a broker-dealer?
					
		  	Yes	  	r	  	No	  	r
		
	(b)	  	If “yes” to Section 4(a), did you receive your Registrable Securities as compensation for investment banking services to the Company.
					
		  	Yes	  	r	  	No	  	r
		
	Note:	  	If no, the SEC’s staff has indicated that you should be identified as an underwriter in the Registration Statement.
		
	(c)	  	Are you an affiliate of a broker-dealer?
					
		  	Yes	  	r	  	No	  	r

  

 C-1 

									
	(d)	  	If you are an affiliate of a broker-dealer, do you certify that you bought the Registrable Securities in the ordinary course of business, and at the time of the purchase of the
Registrable Securities to be resold, you had no agreements or understandings, directly or indirectly, with any person to distribute the Registrable Securities?
					
		  	Yes	  	r	  	No	  	r
		
	Note:	  	If no, the SEC’s staff has indicated that you should be identified as an underwriter in the Registration Statement.
		
	5.	  	Beneficial Ownership of Other Securities of the Borrower Owned by the Selling Securityholder.
		
		  	Except as set forth below in this Item 5, the undersigned is not the beneficial or registered owner of any securities of the Borrower other than the Registrable Securities
listed above in Item 3.
		
	(a)	  	Type and Amount of Other Securities beneficially owned by the Selling Securityholder:

 6. Relationships with the Borrower: 
 Except as set forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners of 5% of more of the
equity securities of the undersigned) has held any position or office or has had any other material relationship with the Borrower (or its predecessors or affiliates) during the past three years. 
 State any exceptions here: 
 The undersigned
agrees to promptly notify the Borrower of any inaccuracies or changes in the information provided herein that may occur subsequent to the date hereof at any time while the [Lender] Registration Statement remains effective. 

By signing below, the undersigned consents to the disclosure of the information contained herein in its answers to Items 1 through 6 and the inclusion
of such information in the [Lender] Registration Statement and the related prospectus and any amendments or supplements thereto. The undersigned understands that such information will be relied upon by the Borrower in connection with
the preparation or amendment of the [Lender] Registration Statement and the related prospectus. 
 [SIGNATURE
PAGE OF SECURITYHOLDER FOLLOWS] 
  

 C-2 

 IN WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and
delivered either in person or by its duly authorized agent. 
  

					
	Date:	 	Securityholder:
			
		 	By:	 	  

		 	Name	 	
		 	Title	 	

 PLEASE FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN THE ORIGINAL BY OVERNIGHT
MAIL, TO: 
 [NOTE TO INFINITY: Please provide the address where you would like the Questionnaires sent.] 
  

 C-3 

 EXHIBIT “D” 
 FORM OF OPINION LETTER 
 ______________, 200__

 Purdue Pharma L.P. 
 One Stamford Forum 
 201 Tresser Blvd. 
 Stamford, CT 06901-3431 
 USA 
 Purdue Pharmaceutical Products L.P. 
 One Stamford Forum 
 201 Tresser Blvd. 
 Stamford, CT 06901-3431 
 USA 
  

	Re:	Infinity Pharmaceuticals, Inc. 

 Ladies and Gentlemen: 

This opinion is being furnished pursuant to Section [3.2] of the Line of Credit Agreement, dated as of November __, 2008 (the “Credit
Agreement”), by and between Infinity Pharmaceuticals, Inc., a Delaware corporation (the “Company”), Purdue Pharma L.P. (“Purdue Pharma”) and Purdue Pharmaceutical Products L.P. (“Purdue Products”, and together with
Purdue Pharma, the “Lenders” and individually, a “Lender”). Capitalized terms used herein and not otherwise defined shall have the respective meanings ascribed to them in the Credit Agreement. 
 We have acted as counsel to the Company in connection with the preparation, execution and delivery of the Credit Agreement. As such counsel, we have
examined and are familiar with and have relied upon the following documents: 
  

	 	(a)	the Credit Agreement; 

  

	 	(b)	the Line of Credit Notes, issued by the Company to each of the Lenders (the “Notes”); 

  

	 	(c)	the Restated Certificate of Incorporation (the “Charter”) and the Amended and Restated By-laws, as amended to date (the “By-laws”), of the Company;

  

	 	(d)	a Certificate of the Secretary of State of the State of Delaware, dated
                    , 2008, attesting to the continued legal existence and corporate good standing of the Company in Delaware (the “Company
Domestic Certificate”); 

  
 

 

 

 
 Purdue Pharma L.P. 
 Purdue
Pharmaceutical Products L.P. 
 ______________, 200__ 
 Page 2

  
  

	 	(e)	a Certificate of the Secretary of State of the Commonwealth of Massachusetts, dated
                    , 2008, attesting to the good standing and due qualification of the Company to transact business in Massachusetts (the
“Company Foreign Qualification Certificate”); 

  

	 	(f)	a Secretary’s Certificate (the “Secretary’s Certificate”) from the Company, dated as of the date hereof, attesting to the Company’s Charter and By-laws,
certain resolutions adopted by the Board of Directors of the Company, and the incumbency of certain officers of the Company; and 

  

	 	(g)	such other documents, instruments and certificates (including, but not limited to, certificates of public officials and officers of the Company (the “Officer’s
Certificate”)) as we have considered necessary for purposes of this opinion. 

 For purposes of this opinion letter, the
Credit Agreement and the Notes are referred to collectively as the “Transaction Documents”. 
 In our examination of the documents
described above, we have assumed the genuineness of all signatures, the legal capacity of all individual signatories, the completeness of all corporate and stock records provided to us, the authenticity of all documents submitted to us as originals,
the conformity to original documents of all documents submitted to us as copies, and the authenticity of the originals of such latter documents. 
 In rendering this opinion, we have relied, as to all questions of fact material to this opinion, upon certificates of public officials and officers of the Company and upon the representations and warranties made by the Lenders and the
Company in the Transaction Documents and in the Secretary’s Certificate and the Officer’s Certificate. We have not attempted to verify independently such facts. We have not conducted a search of any electronic databases or the dockets of
any court, administrative or regulatory body, agency or other filing office in any jurisdiction. 
 For purposes of this opinion, we have
assumed that the Transaction Documents have been duly authorized, executed and delivered by all parties thereto other than the Company, and that all such other parties have all requisite power and authority to effect the transactions contemplated
by, and to perform their obligations under, the Transaction Documents. We have also assumed that each Transaction Document is the valid and binding obligation of each party thereto other than the Company and is enforceable against such other parties
in accordance with its terms. We do not render any opinion as to the application of any federal or state law or regulation to the power, authority or competence of any party to the Transaction Documents other than the Company. 

 

 
 Purdue Pharma L.P. 
 Purdue
Pharmaceutical Products L.P. 
 ______________, 200__ 
 Page 3

  
 For purposes of this opinion we have assumed that the Board of
Directors of the Company has complied with its fiduciary duties in connection with the transactions contemplated by the Transaction Documents. 
 Our opinions set forth below are qualified to the extent that they may be subject to or affected by (i) applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, fraudulent transfer or similar laws relating
to or affecting the rights of creditors generally (including, without limitation, the principles of equitable subordination and recharacterization), (ii) usury laws, (iii) statutory or decisional law concerning recourse by creditors to
security in the absence of notice or hearing, (iv) duties and standards imposed on creditors and parties to contracts, including, without limitation, requirements of good faith, reasonableness and fair dealing, and (v) general equitable
principles. We express no opinion as to the availability of any equitable or specific remedy upon any breach of any of the agreements as to which we are opining herein, or any of the agreements, documents or obligations referred to therein, or to
the successful assertion of any equitable defenses, inasmuch as the availability of such remedies or the success of any equitable defense may be subject to the discretion of a court. We are expressing no opinion herein with respect to compliance by
the Company with state securities or “blue sky” laws, or with any state or federal securities antifraud laws. 
 We also express no
opinion herein as to any provision of any agreement (a) which may be deemed to or construed to waive any right of the Company, (b) to the effect that rights and remedies are not exclusive, that every right or remedy is cumulative and may
be exercised in addition to or with any other right or remedy and does not preclude recourse to one or more other rights or remedies, (c) relating to the effect of invalidity or unenforceability of any provision of the Transaction Documents on
the validity or enforceability of any other provision thereof, (d) requiring the payment of penalties, consequential damages or liquidated damages, (e) which is in violation of public policy, including, without limitation, any provision
relating to non-competition and non-solicitation or relating to indemnification and contribution with respect to securities law matters, (f) purporting to indemnify any person against his, her or its own negligence or intentional misconduct,
(g) which provides that the terms of the Transaction Documents may not be waived or modified except in writing, (h) relating to consent to jurisdiction, (i) relating to powers of attorney, (j) purporting to establish in advance
standards of commercial reasonableness, or (k) purporting to charge interest on interest. We express no opinion relating to the creation, perfection or priority of any security interest. 
 Our opinions expressed in paragraph 1 below, insofar as they relate to the valid existence, due qualification and good standing of the Company, are
based solely on the Company Domestic Certificate and the Company Foreign Qualification Certificate and are limited accordingly, and, as to such matters, our opinions are rendered as of the respective dates of such certificates. We express no opinion
as to the tax good standing of the Company in any jurisdiction. 
 We are opining herein solely as to the state laws of the State of New
York, the statutes codified as 8 Del. C. §§101-398 and known as the General Corporation Law of the State of Delaware (the “DGCL Statute”) and the federal laws of the United States of America. To the extent that any other laws
govern any of the matters as to which we are opining below, we have assumed, with your permission and without independent investigation, that such laws are identical to the state laws of the State of New York, and we express no opinion as to whether
such assumption is reasonable or correct. 

 

 
 Purdue Pharma L.P. 
 Purdue
Pharmaceutical Products L.P. 
 ______________, 200__ 
 Page 4

  
 For purposes of our opinions rendered below, we have assumed that
the facts and law governing the future performance by the Company of its obligations under the Transaction Documents will be identical to the facts and law governing its performance on the date of this opinion. 
 Based upon and subject to the foregoing, we are of the opinion that: 
  

	 	1.	The Company is a corporation validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to conduct its
business as it is, to our knowledge, currently conducted, to enter into and perform its obligations under the Transaction Documents, and to carry out the transactions contemplated by the Transaction Documents. The Company is duly qualified to do
business and is in good standing in the Commonwealth of Massachusetts. 

  

	 	2.	The execution and delivery by the Company of the Transaction Documents, and the consummation by the Company of the transactions contemplated thereby, have been duly authorized by
all necessary corporate action on the part of the Company, and the Transaction Documents have been duly executed and delivered by the Company. Each of the Transaction Documents constitutes the valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms. 

  

	 	3.	The execution and delivery by the Company of the Transaction Documents, and the consummation by the Company of the transactions contemplated thereby, do not (a) violate the
provisions of any U.S. federal or New York state law, rule or regulation applicable to the Company or the DGCL Statute; (b) violate the provisions of the Company’s Charter or By-laws; (c) violate any judgment, decree, order or award
of any court, governmental body or arbitrator specifically naming the Borrower of which we are aware, or (d) with or without notice and/or the passage of time, conflict with or result in the breach or termination of any term or provision of, or
constitute a default under, or cause any acceleration under, or cause the creation of any lien, charge or encumbrance upon the properties or assets of the Company pursuant to, any agreement to which the Company is a party and which is listed as on
Schedule A hereto. 

  

	 	4.	Based upon the facts set forth in the Officer’s Certificate, the Borrower is not an “investment company” within the meaning of the Investment Company Act of 1940, as
amended. 

  

	 	5.	The making of each Line of Credit Loan under the Credit Agreement and the use of the proceeds thereof in accordance with the Credit Agreement do not violate Regulation T, U or X of
the Board of Governors of the Federal Reserve System. 

 This opinion is provided to the Lenders as a legal opinion only and
not as a guaranty or warranty of the matters discussed herein. This opinion is based upon currently existing statutes, rules, regulations and judicial decisions and is rendered as of the date hereof, and we disclaim any obligation to advise you of
any change in any of the foregoing sources of law or subsequent developments in law or changes in facts or circumstances which might affect any matters or opinions set forth herein. 

 

 
 Purdue Pharma L.P. 
 Purdue
Pharmaceutical Products L.P. 
 ______________, 200__ 
 Page 5

  
 This opinion is rendered only to the Lenders and is solely for the
benefit of the Lenders (and their permitted assigns) in connection with the transactions contemplated by the Transaction Documents. This opinion may not be relied upon by the Lenders (or such permitted assigns) for any other purpose, nor may this
opinion be provided to, quoted to or relied upon by any other person or entity for any purpose without our prior written consent. 
 Very truly yours,

 WILMER CUTLER PICKERING 
 HALE AND DORR LLP 
  
 By:  _________________________________ 
         _________________________, a Partner 
  

 Schedule A—Agreements 
 Rights Agreement between Infinity Pharmaceuticals, Inc. and American Stock Transfer & Trust Company dated February 13, 2003 
 First Amendment to Rights Agreement between Infinity Pharmaceuticals, Inc. and American Stock Transfer & Trust Company dated April 11, 2006 
 License Agreement by and between Infinity Discovery, Inc. and Amgen, Inc. dated as of July 7, 2006 
 Collaboration and Option Agreement by and between Infinity Discovery, Inc. and Novartis International Pharmaceutical Ltd. dated as of November 16, 2004

 Collaboration Agreement by and between Infinity Discovery, Inc. and Novartis Institutes for BioMedical Research, Inc. dated as of
February 24, 2006 
 Collaboration and License Agreement by and between Infinity Discovery, Inc. and Johnson & Johnson
Pharmaceutical Research & Development, a division of Janssen Pharmaceutica N.V., dated as of December 22, 2004, as amended by Amendment No. 1 effective as of March 2, 2006 
 Collaboration Agreement by and between MedImmune, Inc. and Infinity Discovery, Inc. dated as of August 25, 2006 
 Master Security Agreement between Infinity Discovery, Inc. and General Electric Capital Corporation dated December 6, 2002, as amended on December 6,
2002, together with Promissory Notes in favor of GE 
 Lease Agreement dated July 2, 2002 between Infinity Discovery, Inc. and
ARE-770/784/790 Memorial Drive LLC, as amended by First Amendment to Lease dated March 25, 2003, Second Amendment to Lease dated April 30, 2003, Third Amendment to Lease dated October 30, 2003 and Fourth Amendment to Lease dated
December 15, 2003 
 Sublease dated August 24, 2004 between Infinity Discovery, Inc. and Hydra Biosciences, Inc., together with
Consent to Sublease dated September 16, 2004 by ARE-770/784/790 Memorial Drive LLC, Infinity Discovery, Inc. and Hydra Biosciences, Inc., as amended by First Amendment to Sublease dated October 17, 2005, together with Consent to Amendment
to Sublease dated as of October 31, 2005 by ARE-770/784/790 Memorial Drive LLC and Second Amendment to Sublease dated as of January 9, 2006, together with Consent to Amendment to Sublease dated as of January 26, 2006 by
ARE-770/784/790 Memorial Drive LLC, Infinity Discovery, Inc. and Hydra Biosciences, Inc. 
 Offer Letter between Infinity Discovery, Inc. and
Steven Holtzman dated as of August 1, 2001 
 Amendment to Offer Letter between Infinity Discovery, Inc. and Steven Holtzman dated as of
October 25, 2007 
 Offer Letter between Infinity Discovery, Inc. and Julian Adams dated as of August 19, 2003 
 Amendment to Offer Letter between Infinity Discovery, Inc. and Julian Adams dated as of October 25, 2007 
 Offer Letter between Infinity Discovery, Inc. and Adelene Perkins dated as of February 6, 2002 
 Amendment to Offer Letter between Infinity Discovery, Inc. and Adelene Perkins dated as of October 25, 2007 
 Letter Agreement between Infinity Discovery, Inc. and Steven Holtzman dated effective as of March 31, 2006 
 Letter Agreement between Infinity Discovery, Inc. and Julian Adams dated effective as of March 31, 2006 

 Letter Agreement between Infinity Discovery, Inc. and Adelene Perkins dated effective as of March 31, 2006

 Pre-Merger Stock Incentive Plan 
 Restricted Stock Agreements entered into with each of the directors identified on the schedule attached to Exhibit 10.19 to the Company’s Current Report on Form 8-K filed on September 18, 2006 
 Nonstatutory Stock Option Agreements entered into with each of the directors identified on the schedule attached to Exhibit 10.20 to the Company’s Current
Report on Form 8-K filed on September 18, 2006 
 Stock Restriction Agreements entered into with each of the directors identified on the
schedule attached to Exhibit 10.21 to the Company’s Current Report on Form 8-K filed on September 18, 2006 
 Stock Restriction
Agreement entered into with Franklin H. Moss on August 14, 2001 
 Restricted Stock Agreements entered into with each of the officers and
directors identified on the schedule attached to Exhibit 10.23 to the Company’s Current Report on Form 8-K filed on September 18, 2006 
 Restricted Stock Agreements entered into with each of the officers and directors identified on the schedule attached to Exhibit 10.24 to the Company’s Current Report on Form 8-K filed on September 18, 2006

 Incentive Stock Agreements entered into with each of the officers identified on the schedule attached to Exhibit 10.25 to the Company’s
Current Report on Form 8-K filed on September 18, 2006 
 Restricted Stock Agreement entered into with Adelene Perkins on March 19,
2002 
 Nonstatutory Stock Option Agreements entered into with each of the officers identified on the schedule attached to Exhibit 10.27 to the
Company’s Current Report on Form 8-K filed on September 18, 2006 
 Restricted Stock Agreement entered into with Julian Adams on
October 6, 2003 
 Restricted Stock Agreements entered into with Steven Holtzman on each of the dates specified on the schedule attached
to Exhibit 10.29 to the Company’s Current Report on Form 8-K filed on September 18, 2006. 
 Nonstatutory Stock Option Agreement
entered into with Steven Holtzman on March 25, 2004 
 Restricted Stock Agreement entered into with Steven Holtzman on August 14,
2001 
 2000 Stock Incentive Plan, as amended by Amendment No. 1 to 2000 Stock Incentive Plan; Amendment No. 2 to 2000 Stock
Incentive Plan; Amendment No. 3 to 2000 Stock Incentive Plan; Amendment No. 4 to 2000 Stock Incentive Plan; and Amendment No. 5 to 2000 Stock Incentive Plan 
 Stock Restriction Agreements entered into with Steven H. Holtzman on October 27, 2008 and Julian Adams on October 28, 2008 filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for
the quarter ended September 30, 2008

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