Document:

Exhibit 10.3

 

INNOVATIVE INDUSTRIAL PROPERTIES, INC.

 

2016 OMNIBUS INCENTIVE PLAN

 

PERFORMANCE SHARE UNIT AWARD GRANT NOTICE AND

PERFORMANCE SHARE UNIT AWARD AGREEMENT

 

Innovative Industrial Properties, Inc., a
Maryland corporation (the “Company”), pursuant to its 2016 Omnibus Incentive Plan (the “Plan”),
hereby grants to the individual listed below (“Participant”) an award of performance share units (the “Units”)
with respect to the number of shares of common stock of the Company (the “Shares”) set forth below. This award
(this “Award”) is subject to all of the terms and conditions as set forth herein, in the Performance Share Unit
Award Agreement attached hereto as Exhibit A (the “Performance Share Unit Agreement”) and in the
Plan, which are incorporated herein by reference. Unless otherwise defined herein, the terms defined in this Grant Notice and the Performance
Share Unit Agreement shall have the same defined meanings specified in the Plan.

 

	Participant:	____________________________
	Grant Date:	________ ___, 20__
	Target Units:	_______ Units
	Maximum Units:	_______ Units
	Vesting Schedule:	Subject to the terms of the Performance Share Unit Agreement, the Units shall vest on the date and in the percentages set forth on Exhibit B attached hereto.

 

By his or her signature, Participant agrees to
be bound by the terms and conditions of the Plan, the Performance Share Unit Agreement and this Grant Notice. Participant has reviewed
the Performance Share Unit Agreement, the Plan and this Grant Notice in their entirety, has had an opportunity to obtain the advice of
counsel prior to executing this Grant Notice and fully understands all provisions of this Grant Notice, the Performance Share Unit Agreement
and the Plan. Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator
of the Plan upon any questions arising under the Plan, this Grant Notice or the Performance Share Unit Agreement.

 

	INNOVATIVE INDUSTRIAL PROPERTIES, INC.	 	PARTICIPANT
	 	 	 
	By:	 	 	By:	 
	Print Name:	 	 	Print Name:	 
	Title:	 	 	 	 
	 	 	 	 	 
	Address:	11440 West Bernardo Ct, Ste 100	 	Address:	 
	 	San Diego, CA 92127	 	 	 

 

     

     

    

 

CONSENT OF SPOUSE

 

I, _________, spouse of ___________, have read
and approve this Grant Notice and the attached Performance Share Unit Agreement and Vesting Schedule. In consideration of granting to
my spouse the performance share units relating to shares of the common stock of Innovative Industrial Properties, Inc. set forth
in this Grant Notice, I hereby appoint my spouse as my attorney-in-fact in respect to the exercise of any rights under this Grant
Notice and agree to be bound by the provisions of this Grant Notice insofar as I may have any rights in said Grant Notice, any performance
share units or any shares of the common stock of Innovative Industrial Properties, Inc. issued pursuant thereto under the community
property laws or similar laws relating to marital property in effect in the state of our residence as of the date of the signing of the
foregoing Grant Notice.

 

	Dated: _______ __, 20__	 	 
	 	 	Signature of Spouse

 

     

     

    

 

EXHIBIT A

 

TO Performance
SHARE UNIT AWARD GRANT NOTICE

 

performance
SHARE UNIT AWARD AGREEMENT

 

Pursuant to the Performance Share Unit Award Grant
Notice (“Grant Notice”) to which this Performance Share Unit Award Agreement (this “Agreement”)
is attached, Innovative Industrial Properties, Inc., a Maryland corporation (the “Company”), has granted
to Participant the number of performance share units (the “Units”) under the Company’s 2016 Omnibus Incentive
Plan (the “Plan”) indicated in the Grant Notice. The Units are subject to the terms and conditions of the Plan
which are incorporated herein by reference. Capitalized terms not specifically defined herein shall have the meanings specified in the
Plan and the Grant Notice.

 

ARTICLE I

AWARD OF UNITS

 

1.1            Grant
of Units. Pursuant to the Plan and subject to the terms and conditions of this Agreement, effective on the Grant Date, the Company
irrevocably grants to Participant the number of Units set forth in the Grant Notice in consideration of Participant’s continued
employment with or service to the Company or one of its Subsidiaries. Prior to actual issuance of any Shares, the Units and this Agreement
represent an unsecured obligation of the Company, payable only from the general assets of the Company.

 

1.2            Vesting.
The Award shall vest in accordance with Exhibit B to the Grant Notice.

 

ARTICLE II

SETTLEMENT OF UNITS

 

2.1            Settlement
Mechanics.

 

(a)            Time
of Settlement. Subject to the terms and conditions of the Plan and this Agreement and to any deferral election Participant has made
pursuant to the terms of the Company’s Nonqualified Deferred Compensation Plan (or any successor deferred compensation plan thereto),
the Company shall distribute one Share to Participant (or in the event of Participant’s death, to his or her estate) in settlement
of each vested Unit, if any, as soon as practicable following the later of the Vesting Date (as defined in Exhibit B to the
Grant Notice) and the date the Administrator determines the number of Units that have been earned in accordance with Exhibit B
to the Grant Notice, but in no event later than thirty (30) days following the Vesting Date.

 

(b)            Taxes.
As a condition of receiving this award of Units, Participant agrees to pay to the Company upon demand such amount as may be requested
by the Company for the purpose of satisfying its liability to withhold federal, state, or local income or other taxes due by reason of
the grant, vesting or settlement of, or by reason of any other event relating to, the Units. However, Participant may elect to have the
Company satisfy such withholding obligations by withholding a number of Shares otherwise issuable hereunder having a Fair Market Value
on the date the tax obligation arises equal to the amount to be withheld; provided, however, that the amount to be withheld may not exceed
the total maximum statutory tax rates associated with the transaction to the extent needed for the Company to avoid adverse accounting
treatment. If Participant does not make the payment or election described in the foregoing, then the Company or an affiliate may withhold
such taxes from other amounts owed to the Participant or may choose to satisfy the withholding obligations by withholding Shares otherwise
issuable hereunder in accordance with the preceding sentence.

 

    A-1

     

    

 

(c)            Generally.
Shares issued under this Agreement shall be issued to Participant or Participant’s beneficiaries, as the case may be, at the sole
discretion of the Administrator, in either (i) uncertificated form, with the Shares recorded in the name of Participant in the books
and records of the Company’s transfer agent with appropriate notations regarding the restrictions on transfer imposed pursuant to
this Agreement; or (ii) certificated form. Unless otherwise determined by the Administrator or provided in this Agreement, all distributions
in respect of the Units shall be made by the Company in the form of whole Shares. In no event will fractional shares be issued upon settlement
of the Units. In lieu of any fractional Share, the Company shall make a cash payment to Participant equal to the Fair Market Value of
such fractional Share on the date the Units are settled pursuant to this Section 2.1.

 

2.2            Conditions
to Issuance of Shares. The Company shall not be required to issue or deliver any Shares upon settlement of the Units prior to fulfillment
of all of the conditions set forth in this Agreement and the Plan.

 

ARTICLE III

RESTRICTIONS

 

3.1            Transfer
Restriction. No Units or any interest or right therein or part thereof shall be liable for the debts, contracts or engagements of
the Participant or his or her successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge,
encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy,
attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall
be null and void and of no effect. In addition, notwithstanding anything to the contrary herein, the Participant agrees and acknowledges
that (a) with respect to any Shares issued hereunder that have not been registered under the Securities Act of 1933, as amended (the
 “Act”), he or she will not sell or otherwise dispose of such Shares except pursuant to an effective registration
statement under the Act and any applicable state securities laws, or in a transaction which, in the opinion of counsel for the Company,
is exempt from such registration, and a legend will be placed on the certificates for the Shares to such effect, and (b) the Participant
agrees not to sell any Shares acquired under this Agreement other than as set forth in the Plan and at a time when applicable laws, Company
policies or an agreement between the Company and its underwriters do not prohibit a sale.

 

3.2            Rights
as Stockholder; Dividend Equivalents. Participant shall not have any rights of a stockholder with respect to the Shares subject to
the Units (including, without limitation, any voting rights or any right to dividends) until the Shares have been issued hereunder. If,
however, after the Grant Date set forth in the Grant Notice and prior to the settlement date, a record date with respect to a cash dividend
on the Shares occurs, then on the date that such dividend is paid to Company stockholders Participant shall accrue “dividend equivalents”
in an amount equal to the dividends that would have been paid to Participant if Participant owned a number of Shares equal to the maximum
number of outstanding Units hereunder as of such record date. Such dividend equivalents shall be deemed reinvested in additional Units
on the ex-dividend date based on the Fair Market Value of a Share on such date, and such additional Units shall be earned and vested only
to the extent the underlying Units with respect to which the dividend equivalents were credited are also earned and vested. Such additional
Units shall also be subject to the same terms and conditions (including vesting and forfeiture provisions set forth in Exhibit B),
and be paid at the same time, as the underlying Units with respect to which the dividend equivalents were credited.

 

    A-2

     

    

 

3.3            Ownership
Limit and REIT Status. Notwithstanding anything to the contrary herein, Shares shall not be issued or paid hereunder if the issuance
or payment of such Shares would likely result in any of the following:

 

(a)            a
violation of the restrictions or limitations on ownership provided for from time to time under the terms of the organizational documents
of the Company; or

 

(b)            income
to the Company that could impair the Company’s status as a real estate investment trust, within the meaning of Sections 856 through
860 of the Code.

 

ARTICLE IV

TAXATION REPRESENTATIONS

 

Participant represents to the Company the following:

 

(a)            Participant
has reviewed with his or her own tax advisors the federal, state, local and foreign tax consequences of the transactions contemplated
by this Agreement. Participant is relying solely on such advisors and not on any statements or representations of the Company or any of
its agents. Participant understands that Participant (and not the Company) shall be responsible for his or her own tax liability that
may arise as a result of the transactions contemplated by this Agreement.

 

(b)            Notwithstanding
anything to the contrary in this Agreement, the Company shall be entitled to require payment (which payment may be made in cash, by deduction
from other compensation payable to Participant or in any form of consideration permitted by the Plan) of any sums required by federal,
state or local tax law to be withheld with respect to the issuance or other event with respect to the Units or Shares. The Company shall
not be obligated to issue any Shares or deliver any stock certificate representing Shares to Participant or Participant’s legal
representative, or, if the Shares are held in book entry form, to remove the notations on the book form, unless and until Participant
or Participant’s legal representative shall have paid or otherwise satisfied in full the amount of all federal, state and local
taxes applicable to the taxable income of Participant resulting from the issuance or other event with respect to the Units or Shares.

 

ARTICLE V

Miscellaneous

 

5.1            Governing
Law; Limitation on Actions. This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties
hereto shall be governed, construed and interpreted in accordance with the laws of the State of Maryland, without giving effect to principles
of conflicts of law. Any legal action or proceeding with respect to this Agreement and all acts and transactions pursuant hereto may only
be brought and determined in (a) a court sitting in the State of California, and (b) a “bench” trial, and any party
to such action or proceeding shall agree to waive its right to a jury trial. In accordance with Section 17(g) of the Plan, any
legal action or proceeding with respect to this Agreement and all acts and transactions pursuant hereto, must be brought within one year
(365 days) after the day the complaining party first knew or should have known of the events giving rise to the complaint.

 

5.2            Entire
Agreement; Enforcement of Rights. This Agreement and the Plan set forth the entire agreement and understanding of the parties relating
to the subject matter herein and merge all prior discussions between them. Subject to Section 14(c) of the Plan, no modification
of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in writing signed by the
parties to this Agreement.

 

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5.3            Bound
by Plan; Interpretation. Participant hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all of the terms
and provisions therein. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan
(as such may be amended from time to time in accordance with the terms of the Plan), the applicable terms and provisions of the Plan will
govern.

 

5.4            Severability.
If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such provision
in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (a) such
provision shall be excluded from this Agreement, (b) the balance of the Agreement shall be interpreted as if such provision were
so excluded and (c) the balance of the Agreement shall be enforceable in accordance with its terms.

 

5.5            Notices.
Any notice required or permitted by this Agreement shall be in writing and shall be deemed sufficient when delivered personally or sent
by electronic mail (with return receipt requested and received) or fax or forty-eight (48) hours after being deposited in the U.S. mail,
as certified or registered mail, with postage prepaid, and addressed to the party to be notified, if to the Company, at its principal
offices, and if to Participant, at Participant’s address, electronic mail address or fax number in the Company’s records or
as subsequently modified by written notice.

 

5.6            Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall
constitute one instrument.

 

5.7            Successors
and Assigns. The rights and benefits of this Agreement shall inure to the benefit of, and be enforceable by the Company’s successors
and assigns. The Company may assign its rights under this Agreement to any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the Company without the prior written consent
of Participant. The rights and obligations of Participant under this Agreement may only be assigned with the prior written consent of
the Company.

 

5.8            Conformity
to Securities Laws. Participant acknowledges that the Plan is intended to conform to the extent necessary with all provisions of the
Securities Act and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder,
and state securities laws and regulations. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Shares
are to be issued, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by applicable
law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.

 

5.9            No
Right to Continued Service. EXCEPT AS MAY BE PROVIDED IN ANY EMPLOYMENT AGREEMENT WITH THE PARTICIPANT, THE PARTICIPANT
ACKNOWLEDGES AND AGREES THAT THE VESTING OF THE UNITS PURSUANT TO SECTION 2.1 HEREOF IS EARNED ONLY BY CONTINUING SERVICE TO THE
COMPANY, OR ONE OF ITS SUBSIDIARIES AS AN “AT WILL” EMPLOYEE OR CONSULTANT OF THE COMPANY, OR ONE OF ITS SUBSIDIARIES OR A
NON-EMPLOYEE DIRECTOR OF THE COMPANY (AND NOT THROUGH THE ACT OF BEING HIRED OR ACQUIRING SHARES HEREUNDER). THE PARTICIPANT FURTHER ACKNOWLEDGES
AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN
EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS AN EMPLOYEE, CONSULTANT OR NON-EMPLOYEE DIRECTOR FOR SUCH PERIOD, FOR ANY PERIOD,
OR AT ALL, AND SHALL NOT INTERFERE WITH THE COMPANY’S, OR ANY OF ITS SUBSIDIARIES’ RIGHT TO TERMINATE THE PARTICIPANT’S
EMPLOYMENT OR SERVICE TO THE COMPANY AT ANY TIME, WITH OR WITHOUT CAUSE.

 

    A-4

     

    

 

5.10            No
Right to Future Awards. The grant of the Award is a one-time benefit and does not create any contractual or other right to receive
a grant of Awards or benefits in lieu of Awards in the future. Future grants, if any, will be at the sole discretion of the Company. In
addition, the value of the Award is an extraordinary item of compensation outside the scope of any employment contract. As such, the Award
is not part of normal or expected compensation for purposes of calculating any severance, resignation, redundancy, end of service payments,
bonuses, long-service awards, pension or retirement benefits or similar payments. The future value of the underlying Stock is unknown
and cannot be predicted with certainty.

 

5.11             Section 409A. Notwithstanding
any other provision of the Plan, this Agreement or the Grant Notice, the Plan, this Agreement and the Grant Notice shall be interpreted
in accordance with, and incorporate the terms and conditions required by, Section 409A of the Code (together with any Treasury Regulations
and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued
after the Grant Date, “Section 409A”). The Administrator may, in its discretion, adopt such amendments to the Plan, this
Agreement or the Grant Notice or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect),
or take any other actions, as the Administrator determines are necessary or appropriate to comply with the requirements of Section 409A.

 

5.12             Vesting Provisions Supersede. Participant
acknowledges and agrees that the provisions of this Agreement concerning vesting and settlement supersede, as to the Units, any contrary
terms of any severance or change of control agreement or plan to which the Participant is or becomes a party or in which the Participant
is or becomes a participant that purports to govern the vesting of Participant’s equity-based awards generally.

 

    A-5

     

    

 

EXHIBIT B

 

TO Performance
SHARE UNIT AWARD GRANT NOTICE

 

vesting
schedule

 

Capitalized terms used in this Exhibit B
and not defined in Section 4 below shall have the meanings given them in the Grant Notice and the Agreement to which this Exhibit B
is attached.

 

1.            Performance
Vesting. Provided that Participant has remained continuously employed with or in service to the Company or its Subsidiaries from the
Grant Date until the Vesting Date, such number of Units shall vest as determined by multiplying (a) the Target Units set forth in
the Grant Notice by (b) the Performance Multiplier determined as follows (rounded to the nearest whole Unit):

 

	Average Relative TSR Rank	Performance Multiplier*
	At or Above 80th percentile	150%
	55th percentile	100%
	25th percentile	33.3%
	Below 25th percentile	0%

*The Performance Multiplier will be linearly interpolated for performance
between levels.

 

The Company’s Average Relative TSR Rank for
the Performance Period is determined by taking the numeric average of (a) the Company’s Relative TSR Rank calculated using
the Peer Group as the comparator group and (b) the Company’s Relative TSR Rank calculated using the REIT Index Group as the
comparator group. Notwithstanding the foregoing, if the Company’s TSR is negative, then the Performance Multiplier may not exceed
100%.

 

Notwithstanding anything to the contrary herein,
in no event shall the Units that vest under this Award have an aggregate Fair Market Value as calculated on the Vesting Date greater than
800% of the aggregate Fair Market Value of the Target Units set forth in the Grant Notice as calculated on the Grant Date (the “Value
Cap”), and the number of Units that would otherwise vest shall be reduced to the extent necessary to prevent such Value
Cap from being exceeded.

 

Any Units that do not vest as a result of the Company’s
Average Relative TSR Rank, or that are prevented from vesting as a result of the application of the Value Cap, shall automatically and
without further action be cancelled and forfeited by Participant, and Participant shall have no further right or interest in or with respect
to such portion of the Award or such Units.

 

2.            Effect
of Termination of Employment.

 

2.1            If
Participant’s employment or service with the Company and its Subsidiaries terminates before the Vesting Date as a result of Participant’s
death, termination by the Company without Cause or resignation by Participant for Good Reason, or, in the case of a Participant who is
party to a Severance and Change of Control Agreement with the Company, the Participant’s Disability or Qualifying Retirement, then
Participant shall continue to be eligible to earn the Units hereunder as though Participant’s employment or service had not terminated,
provided that if Participant’s termination date occurs before the 12-month anniversary of the Grant Date, then the Participant’s
Target Units will be reduced to the product of (i) the Target Units set forth in the Grant Notice, multiplied by (ii) a fraction,
the numerator of which is the number of full months between the Grant Date and the Participant’s termination date, and the denominator
of which is 12.

 

    B-1

     

    

 

2.2            If
Participant’s employment or service terminates before the Vesting Date for any reason other than those set forth in Section 2.1,
then the Award and the Units shall automatically and without further action be cancelled and forfeited by Participant, and Participant
shall have no further right or interest in or with respect to such portion of the Award or Units.

 

3.            Change
of Control.

 

3.1            Upon
a Change of Control, the Administrator will determine the Average Relative TSR Rank and the Performance Multiplier using the table set
forth in Section 1 and the corresponding number of Units that are earned. However, the earned Units will continue to be subject to
a requirement of continued employment or service and will vest on the Vesting Date only if Participant remains employed or in service
with the Company and its Subsidiaries (or their successor in the Change of Control) through such date, except as otherwise provided in
Section 3.2; provided that such requirement of continued employment or service shall not apply to the earned Units if the purchaser,
successor or surviving entity in the Change of Control (or parent thereof) does not agree to continue, assume or replace this Award in
the Change of Control.

 

3.2            Notwithstanding
Section 3.1, if, following a Change of Control, Participant’s employment or service terminates before the Vesting Date due
to Participant’s death, termination by the Company without Cause or resignation by Participant for Good Reason, or, in the case
of a Participant who is party to a Severance and Change of Control Agreement with the Company, the Participant’s Disability or Qualifying
Retirement, then Participant shall vest in such Units as of Participant’s termination date, and such vested Units shall be settled
in accordance with Section 2.1 of the Agreement following the Vesting Date as though Participant’s employment or service had
continued through the Vesting Date.

 

4.            Holding
Period. Participant agrees to hold any Shares issued in settlement of vested Units, less any Shares withheld to satisfy federal, state,
or local income or other tax withholding due in connection with this Award (the “Net Shares”), and not to sell,
transfer or otherwise dispose of such Net Shares, until after the first anniversary of the Vesting Date. Following the first anniversary
of the Vesting Date, the Participant may sell, transfer or otherwise dispose of the Net Shares, subject to and in compliance with any
applicable limitations, restrictions or requirements under the Plan, the Grant Notice, the Agreement, any agreement with the Company or
any applicable Company policy.

 

5.            Definitions.

 

5.1            “Adjusted
End Price” means the average adjusted closing stock price (i.e., the price assuming that dividends are reinvested in additional
shares of stock as of the ex-dividend date) over the twenty (20) trading days ending on the last day of the Performance Period.

 

5.2            “Good
Reason” has the same meaning as set forth in Participant’s Severance and Change of Control Agreement with the Company,
or if no such agreement exists, then it shall mean the occurrence of any of the following events without Participant’s prior written
consent or subsequent ratification in writing: (a) a material diminution in Participant’s authority, duties or responsibilities,
(b) a material diminution of Participant’s annual base salary, or (c) a material change in the geographic location at
which Participant must perform Participant’s duties and responsibilities. However, Participant will not be considered to have terminated
for Good Reason unless Participant provides notice to the Company of the condition giving rise to Good Reason within ninety (90) days
of the initial existence of such condition and provides the Company with thirty (30) days to cure such condition before terminating employment.

 

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5.3            “Disability”
shall have the meaning as set forth in the applicable Severance and Change of Control Agreement of the Participant.

 

5.4            “Grant
Date” is the date set forth in the Grant Notice as the grant date of the Award.

 

5.5            “Measurement
Date” means the first to occur of (a) December 31, 2024, or (b) the trading day immediately preceding the
date on which a Change of Control occurs.

 

5.6            “Peer
Group” means the companies listed in the table below, provided that if a company meets either of the following criteria,
then it shall be excluded from the Peer Group for all purposes: (i) during the Performance Period, the company makes a public disclosure
of its intent or agreement to enter into a merger or sale with another company, it will not remain the survivor of said merger or sale,
and the transaction has not been consummated at the end of the Performance Period; or (ii) it is not listed on a securities exchange
for the entire applicable Performance Period; provided, however, that a company that becomes de-listed due to bankruptcy during the applicable
Performance Period will be included with TSR equal to negative one hundred percent (-100%).

 

	Agree Realty Corporation
	Broadstone Net Lease, Inc. Class A
	Easterly Government Properties, Inc.
	EPR Properties
	Essential Properties Realty Trust, Inc.
	Four Corners Property Trust, Inc.
	Gaming & Leisure Properties, Inc.
	Getty Realty Corp.
	Gladstone Commercial Corporation
	Global Net Lease Inc.
	Industrial Logistics Properties Trust
	Lexington Realty Trust
	Monmouth Real Estate Investment Corporation Class A
	National Retail Properties, Inc.
	NewLake Capital Partners, Inc.
	One Liberty Properties, Inc.
	PS Business Parks, Inc.
	Realty Income Corporation
	Safehold, Inc.
	Spirit Realty Capital, Inc.
	STAG Industrial, Inc.
	STORE Capital Corporation
	Terreno Realty Corporation
	VEREIT, Inc. Class A
	VICI Properties Inc.
	W.P. Carey Inc.

 

5.7            “Performance
Period” means the period beginning on January 11, 2022 and ending on the Measurement Date.

 

    B-3

     

    

 

5.8            “Qualifying
Retirement” shall have the meaning as set forth in the applicable Severance and Change of Control Agreement of the Participant.

  

5.9            “REIT
Index Group” means companies that are included in the FTSE Nareit All Equity REIT Index as of the first day of the Performance
Period, but excluding the Company, provided that, if a company meets either of the following criteria, then it shall be excluded from
the REIT Index Group for all purposes: (i) during the Performance Period, a company makes a public disclosure of its intent or agreement
to enter into a merger or sale with another company, it will not remain the survivor of said merger or sale, and the transaction has not
been consummated at the end of the Performance Period; or (ii) a company is not listed on a securities exchange for the entire Performance
Period; provided, however, that a company that becomes de-listed due to bankruptcy during the applicable Performance Period will be included
with TSR equal to negative one hundred percent (-100%).

 

5.10            “Relative
TSR Rank” means the Company’s TSR compared to the TSR of a comparator group (either the Peer Group or REIT Index Group),
calculated as follows:

 

(a)  rank the companies in the comparator
group (excluding the Company) from highest to lowest TSR, with the company with the highest TSR being assigned the rank of 1.

 

(b)  calculate the percentile rank
of (i) the company in the comparator group with the TSR closest to, but greater than, the Company’s TSR (the “Above
Company”), and (ii) the company in the comparator group with the TSR closest to, but less than, the Company’s
TSR, using the equation below (the “Below Company”):

 

 

 

where “N” equals the total number of companies
in the comparator group and “R” is the company’s ranking within the comparison group.

 

(c)  calculate the Company’s
Relative TSR Rank using the equation below:

 

 

 

where “Pabove”
and “TSRabove” equals the percentile rank and TSR, respectively, for the Above Company, Pbelow”
and “TSRbelow” equals the percentile rank and TSR, respectively, for the Below Company, and TSRIIPR equals
the Company’s TSR.

 

Notwithstanding the foregoing, if (i) the Company’s
TSR exceeds the TSR of the comparator group company that ranked “1,” then the Company’s Relative TSR Rank will equal
100% with respect to such comparator group, and (ii) if the Company’s TSR is less than the TSR of the comparator group company
that ranked last, then the Company’s Relative TSR Rank with respect to such comparator group will equal 0%.

 

5.11            “Start
Price” means the average closing stock price over the twenty (20) trading days starting on the first day of the Performance
Period.

 

5.12            “TSR”
or “Total Stockholder Return” means the return a stockholder of a company would earn if the stockholder purchased
shares of such company’s common stock at the beginning of the Performance Period, reinvested all dividends paid on such stock during
the Performance Period in additional shares, and sold the shares at the end of the Performance Period, calculated according to the following
formula:

 

 

 

5.13            “Vesting
Date” means December 31, 2024.

 

    B-4EX-10.1

 Exhibit 10.1 

PURCHASE AGREEMENT 
 BY AND
BETWEEN 
 ATHENEX, INC. 
 AND

 IMMUNITYBIO, INC. 
 DATED
JANUARY 7, 2022 

 TABLE OF CONTENTS 

 

							
	 ARTICLE I DEFINITIONS
	  	 	2	 
	 1.1
	  	Definitions	  	 	2	 
	 1.2
	  	Other Defined Terms	  	 	5	 
		
	 ARTICLE II SALE AND TRANSFER OF ASSETS
	  	 	6	 
	 2.1
	  	Purchased Assets	  	 	6	 
	 2.2
	  	Excluded Assets	  	 	7	 
	 2.3
	  	Nonassignable Assets	  	 	7	 
	 2.4
	  	Liabilities	  	 	8	 
		
	 ARTICLE III PURCHASE PRICE
	  	 	8	 
	 3.1
	  	The Purchase Price	  	 	8	 
	 3.2
	  	Payment at Closing	  	 	9	 
	 3.3
	  	Allocation of Purchase Price	  	 	9	 
		
	 ARTICLE IV CLOSING
	  	 	9	 
	 4.1
	  	Closing	  	 	9	 
	 4.2
	  	Closing Actions and Deliveries	  	 	9	 
		
	 ARTICLE V REPRESENTATIONS AND WARRANTIES OF SELLER
	  	 	10	 
	 5.1
	  	Organization; Subsidiaries; Ownership	  	 	10	 
	 5.2
	  	Due Authorization; No Conflict	  	 	10	 
	 5.3
	  	Title to Assets; Condition; Sufficiency	  	 	11	 
	 5.4
	  	Leased Real Property	  	 	11	 
	 5.5
	  	Insurance	  	 	12	 
	 5.6
	  	Governmental Authorizations	  	 	12	 
	 5.7
	  	Compliance with Laws	  	 	12	 
	 5.8
	  	Environmental Matters	  	 	12	 
	 5.9
	  	Litigation	  	 	13	 
	 5.10
	  	Assigned Contracts	  	 	13	 
	 5.11
	  	Employees	  	 	13	 
	 5.12
	  	No Broker	  	 	14	 
	 5.13
	  	Employment Benefit Matters	  	 	14	 
	 5.14
	  	Benchmark Items	  	 	15	 
	 5.15
	  	DISCLAIMER OF OTHER REPRESENTATIONS AND WARRANTIES	  	 	15	 
		
	 ARTICLE VI REPRESENTATIONS AND WARRANTIES OF BUYER
	  	 	15	 
	 6.1
	  	Organization and Good Standing	  	 	15	 
	 6.2
	  	Due Authorization; No Conflict	  	 	15	 
	 6.3
	  	Litigation	  	 	16	 
	 6.4
	  	No Brokers	  	 	16	 
	 6.5
	  	Independent Investigation	  	 	16	 
	 6.6
	  	DISCLAIMER OF OTHER REPRESENTATIONS AND WARRANTIES	  	 	16	 

  
 i 

							
	 ARTICLE VII COVENANTS AND AGREEMENTS
	  	 	17	 
	 7.1
	  	Buyer’s Investigation	  	 	17	 
	 7.2
	  	Consents of Third Parties; Governmental Authorizations	  	 	17	 
	 7.3
	  	Actions Prior to Closing	  	 	18	 
	 7.4
	  	Notification of Certain Matters	  	 	18	 
	 7.5
	  	No Solicitation	  	 	18	 
	 7.6
	  	Satisfaction of Closing Conditions	  	 	19	 
	 7.7
	  	Further Assurances	  	 	19	 
	 7.8
	  	Transfer of Warranties	  	 	19	 
	 7.9
	  	Prorations	  	 	19	 
	 7.10
	  	Employees	  	 	19	 
	 7.11
	  	503B Agreement	  	 	20	 
	 7.12
	  	Facility Records	  	 	21	 
		
	 ARTICLE VIII CONDITIONS TO PERFORMANCE BY BUYER PARTIES
	  	 	21	 
	 8.1
	  	Representations and Warranties	  	 	21	 
	 8.2
	  	Covenants and Agreements	  	 	22	 
	 8.3
	  	Compliance Certificate	  	 	22	 
	 8.4
	  	Absence of Litigation	  	 	22	 
	 8.5
	  	Consents and Authorizations	  	 	22	 
	 8.6
	  	Other Closing Deliveries	  	 	22	 
		
	 ARTICLE IX CONDITIONS TO PERFORMANCE BY SELLER
	  	 	23	 
	 9.1
	  	Representations and Warranties	  	 	23	 
	 9.2
	  	Covenants and Agreements	  	 	23	 
	 9.3
	  	Compliance Certificate	  	 	23	 
	 9.4
	  	Absence of Litigation	  	 	23	 
	 9.5
	  	Consents and Authorizations	  	 	23	 
	 9.6
	  	Other Closing Deliveries	  	 	23	 
		
	 ARTICLE X TERMINATION
	  	 	24	 
	 10.1
	  	Termination	  	 	24	 
	 10.2
	  	Notice of Termination; Effect of Termination	  	 	24	 
	 10.3
	  	Return of Documentation	  	 	25	 
		
	 ARTICLE XI INDEMNIFICATION
	  	 	25	 
	 11.1
	  	Survival of Representations and Warranties	  	 	25	 
	 11.2
	  	Indemnification by Seller	  	 	25	 
	 11.3
	  	Indemnification by Buyer	  	 	26	 
	 11.4
	  	Indemnification Procedures	  	 	26	 
	 11.5
	  	Other Indemnification Provisions	  	 	28	 
	 11.6
	  	Insurance	  	 	28	 
	 11.7
	  	Cooperation, Access to Documents and Information	  	 	29	 

  
 ii 

							
	 ARTICLE XII GENERAL PROVISIONS
	  	 	29	 
	 12.1
	  	Expenses; Transfer Taxes	  	 	29	 
	 12.2
	  	Entire Agreement; No Third Party Beneficiaries; Amendment	  	 	29	 
	 12.3
	  	Severability	  	 	29	 
	 12.4
	  	Waiver	  	 	30	 
	 12.5
	  	Public Announcements	  	 	30	 
	 12.6
	  	Successors and Assigns	  	 	30	 
	 12.7
	  	Specific Performance	  	 	30	 
	 12.8
	  	Notice	  	 	30	 
	 12.9
	  	Counterparts; Facsimile Signatures	  	 	31	 
	 12.10
	  	Governing Law	  	 	31	 
	 12.11
	  	Jurisdiction	  	 	32	 
	 12.12
	  	Interpretation	  	 	32	 
		
	 SCHEDULES
	  	 	II	 

  
 iii 

 PURCHASE AGREEMENT 

THIS PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of January 7, 2022, by and between
ATHENEX, INC., a Delaware corporation (“Seller”), and IMMUNITYBIO, INC., a Delaware corporation (“Buyer”). Buyer and Seller are sometimes referred to herein individually as a “Party”
and collectively as the “Parties.” 
 RECITALS 

A. Seller (formerly known as Kinex Pharmaceuticals, Inc) and Fort Schuyler Management Corporation (“FSMC”) entered into the
Agreement for Medical Technology Research, Development, Innovation, and Commercialization Alliance Agreement dated May 1, 2015, as amended by (i) the First Amendment to the Agreement for Medical Technology Research, Development,
Innovation, and Commercialization Alliance Agreement dated July 21, 2015, and (ii) the Second Amendment to the Agreement for Medical Technology Research, Development, Innovation, and Commercialization Alliance Agreement dated June 22,
2016 (collectively, the “Alliance Agreement”) which provided for, among other things, (i) the design and construction of a cGMP ISO Class 5 high potency pharmaceutical manufacturing facility located at 3805 Lakeshore Drive
East, Dunkirk, New York (the “Manufacturing Facility”), to be owned by FSMC and leased to Seller, and (ii) certain commitments by Seller regarding hiring and investment at the Manufacturing Facility. 

B. Following completion of the construction of the Manufacturing Facility, Seller and FSMC entered into the Fort Schuyler Management
Corporation Lease, dated as of October 1, 2021 (the “Lease Agreement”), pursuant to which Seller leases from FSMC certain space encompassing approximately 409,000 square feet in the Manufacturing Facility and consisting of
approximately 33.6 acres of real property, as more particularly described in the Lease Agreement (collectively, the “Leased Real Property”) and certain manufacturing equipment described in (or to be described in) the Lease Agreement
(collectively, the “Leased Manufacturing Equipment”). 
 C. New York State Urban Development Corporation d/b/a Empire State
Development Agreement (“ESD”) agreed to fund up to $200,000,000 for the design and construction of the Manufacturing Facility, pursuant to a Capital Grant Agreement, dated as of September 4, 2017, between ESD and Seller, as
amended by the Capital Grant Agreement Amendment dated as of July 23, 2019. 
 D. Seller entered into various agreements with the
County of Chautauqua Industrial Development Agency (“CCIDA”) with respect to the Manufacturing Facility, pursuant to which the CCIDA provides Seller with certain tax benefits, in exchange for certain payments by Seller to CCIDA and
certain commitments by Seller regarding hiring and investment at the Manufacturing Facility and, in connection therewith, Seller and CCIDA entered into a lease-leaseback arrangement whereby Seller subleases the Manufacturing Facility to CCIDA, and
CCIDA subleases the Manufacturing Facility back to Athenex. 
 E. Seller desires to sell, assign, and transfer to Buyer, and Buyer desires
to acquire from Seller, certain assets and rights of Seller, and Buyer is willing to assume certain liabilities and obligations of Seller, relating to the Manufacturing Facility, upon the terms and subject to the conditions hereinafter set forth.

 NOW, THEREFORE, in consideration of the premises and of the mutual covenants hereinafter set
forth, the Parties hereby agree as follows: 
 ARTICLE I 

Definitions. 
 1.1
Definitions. The following terms shall have the meanings ascribed to such terms in this Section 1.1. 

“Affiliate” means, with respect to a specified Person, a Person that directly, or indirectly through one or more
intermediaries, controls, is controlled by or is under common control with, the specified Person. For purposes of this definition, the term “control” (including the terms “controlling,” “controlled by” and “under
common control with”) means (a) the possession, directly or indirectly, of the power to vote more that 50% of the securities or other equity interests of a Person having ordinary voting power, or (b) the possession, directly or
indirectly, of the power to direct or cause the direction of the management policies of a Person, by contract or otherwise. 

“Business Day” means a day other than a Saturday, a Sunday or a day on which commercial banks are authorized or required to
be closed in the State of New York. 
 “CCIDA Lease Agreements” means, collectively, (i) the Company Lease Agreement,
dated as of October 1, 2021, between Seller and CCIDA, and (ii) the Agency Lease Agreement, dated as of October 1, 2021, between CCIDA and Athenex. 

“Closing Date” means the date on which the Closing occurs. 

“Contract” means, with respect to any Person, any contract, agreement, deed, mortgage, lease or license, whether written or
oral, which pertains to such Person or any material assets of such Person. 
 “Environmental Claim” means any action, suit,
claim, investigation or other legal proceeding by any Person alleging liability of whatever kind or nature (including liability or responsibility for the costs of enforcement proceedings, investigations, cleanup, governmental response, removal or
remediation, natural resources damages, property damages, personal injuries, medical monitoring, penalties, contribution, indemnification and injunctive relief) arising out of, based on or resulting from: (a) the Environmental Release of, or
exposure to, any Hazardous Substances; or (b) any actual or alleged non-compliance with any Environmental Law or term or condition of any Environmental Permit. 

“Environmental Law” means all Laws relating to the protection of the environment and occupational health and safety. 

“Environmental Matters” means collectively Environmental Claims, Environmental Laws, Environmental Notices, Environmental
Release and/or Environmental Permits. 
 “Environmental Notice” means any written directive, notice of violation or
infraction, or notice respecting any Environmental Claim relating to actual or alleged non-compliance with any Environmental Law or any term or condition of any Environmental Permit. 

  
 2 

 “Environmental Permit” means any Governmental Authorizations required
pursuant to Environmental Laws. 
 “Environmental Release” means any actual or threatened release, spilling, leaking,
pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, abandonment, disposing or allowing to escape or migrate into or through the environment (including, without limitation, ambient air (indoor or outdoor),
surface water, groundwater, land surface or subsurface strata or within any building, structure, facility or fixture). 
 “General
Enforceability Exceptions” means general principles of equity and by bankruptcy, insolvency or similar Laws and general equitable principles affecting the rights of creditors generally. 

“Governmental Authority” means any domestic or foreign federal, state or local government, or political subdivision thereof,
or any authority, agency or commission entitled to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power, any court or tribunal (or any department, bureau or division thereof), or any
arbitrator or arbitral body. 
 “Governmental Authorization” means any approval, consent, ratification, waiver, license,
permit, registration or other authorization issued, granted, given or otherwise made available by or under the authority of any Governmental Authority or pursuant to any Law, including without limitation, any bond, certificate of authority,
accreditation, qualification, license, franchise, permit, order, registration, variance or privilege. 
 “Governmental
Order” means any order, writ, judgment, injunction, decree, stipulation, ruling, determination or award entered by or with any Governmental Authority. 

“Hazardous Substance” means (a) any petroleum or petroleum products, radioactive materials, asbestos in any form that is
or could become friable, urea formaldehyde foam insulation, polychlorinated biphenyls, and (b) any chemicals, materials, substances or wastes defined as or included in the definition of “hazardous substances,” “hazardous
waste,” “hazardous materials,” “extremely hazardous substances,” “restricted hazardous waste,” “toxic substances,” “toxic pollutants,” “contaminants” or “pollutants” under
any applicable Environmental Law. 
 “Knowledge” means (i) with respect to Seller, the actual knowledge, after
reasonable inquiry, of the Persons listed for Seller on Schedule 1.1, and (ii) with respect to Buyer, the actual knowledge, after reasonable inquiry, of the Persons listed for Buyer on Schedule 1.1. 

“Law” means any foreign, federal, state or local law, treaty, constitution, statute, ordinance, common law, ruling or
regulation, or any Governmental Order, or any license, franchise, permit or similar right granted under any of the foregoing, or any similar provision having the force or effect of law. 

“Liability” means, with respect to any Person, any liability or obligation of such Person whether known or unknown, whether
asserted or unasserted, whether determined, determinable or otherwise, whether absolute or contingent, whether accrued or unaccrued, whether liquidated or unliquidated and whether due or to become due. 

  
 3 

 “Lien” means any mortgage, pledge, hypothecation, security interest,
encumbrance, adverse claim or interest, easement, covenant, encroachment, title retention agreement, title defect, voting trust agreement, transfer restriction, community property interest, deed of trust, lease, proxy, lien, preemptive right, right
of first offer or refusal or similar right or encumbrance. 
 “Material Environmental Liability” means each individual
liability, claim or cause of action due to Environmental Matters in excess of $50,000. 
 “Organizational Documents” means,
with respect to any Person (other than an individual), the certificate or articles of incorporation or organization, certificate of limited partnership and any joint venture, limited liability company, operating, voting or partnership agreement, by-laws, or similar documents, instruments or agreements relating to the organization or governance of such Person, in each case, as amended or supplemented. 

“Permitted Lien” means any (a) Liens for taxes not yet due and payable; (b) Liens that secure only Assumed
Liabilities or that constitute Assumed Liabilities; (c) Liens to secure landlords, sub landlords, licensors or sub licensors under real estate leases or rental agreements, (d) Liens in favor of lessors under capitalized leases but only to
the extent that such Liens encumber the equipment or other property leased pursuant thereto, (e) zoning, entitlement, building and other similar restrictions which would be shown by a current and accurate survey and are not violated by the
current conduct of the business, or any local ordinances, codes, or regulations, (f) easements, covenants, rights of way, or other encumbrances, or restrictions, encroachments or matters, if any, that are of record or that would be shown on a
current and accurate survey of the Leased Real Property, which do not materially interfere with the use and enjoyment of the Leased Real Property. 

“Person” means any individual or corporation, association, partnership, limited liability company, joint venture, joint stock
or other company, business trust, trust, organization, Governmental Authority or other entity of any kind. 
 “Proceeding”
means any litigation, action, suit, mediation, arbitration, assessment, investigation, hearing, grievance or similar proceeding (in each case, whether civil, criminal, administrative or investigative) initiated, commenced, conducted, heard, or
pending by or before any Governmental Authority, arbitrator or mediator. 
 “SEC” means the U.S. Securities and Exchange
Commission. 
 “Tax” or “Taxes” means any tax, charge, deficiency, duty, fee, levy, toll or other amount
(including, without limitation, any net income, gross income, profits, gross receipts, escheat, excise, property, sales, ad valorem, withholding, social security, retirement, excise, employment, unemployment, minimum, alternative, add-on minimum, estimated, severance, stamp, occupation, environmental, premium, capital stock, disability, windfall profits, use, service, net worth, payroll, franchise, license, gains, customs, transfer,
recording, registration or other tax) assessed or otherwise imposed by any Governmental Authority or under applicable law, together with any interest, penalties or any other additions or increases. 

“Transaction Documents” means this Agreement, the Bill of Sale, the Contract Assignments, and all other written agreements,
documents and certificates listed as closing deliveries in Article VIII or Article IX, that are executed and delivered at Closing. 

  
 4 

 1.2 Other Defined Terms. The following terms have the meanings defined for
such terms in the Sections set forth below: 
  

			
	 503B Agreement
	  	Section 7.11
	 Additional Facility Costs
	  	Section 3.1
	 Agreement
	  	Preamble
	 AIA Agreement
	  	Section 7.2
	 Alliance Agreement
	  	Recitals
	 Allocation Schedule
	  	Section 3.3
	 Architect
	  	Section 7.3
	 Assigned Contracts
	  	Section 2.1(d)
	 Assumed Liabilities
	  	Section 2.4(a)
	 Benefit Plan
	  	Section 5.13(a)
	 Bill of Sale
	  	Section 8.6(a)
	 Buyer
	  	Preamble
	 Buyer Indemnitee
	  	Section 11.2
	 Charges
	  	Section 7.9
	 Claim
	  	Section 11.4(a)
	 Closing
	  	Section 4.1
	 Code
	  	Section 5.13(b)
	 Contract Assignments
	  	Section 8.6(b)
	 Deemed Acceptance
	  	Section 11.4(a)
	 Design-Builder
	  	Section 7.2
	 Dispute Notice
	  	Section 11.4(a)
	 ESD
	  	Recitals
	 Environmental Documents
	  	Section 5.8(b)
	 ERISA
	  	Section 5.13(b)
	 Excluded Assets
	  	Section 2.2
	 Facility Costs
	  	Section 3.1
	 Facility Employee
	  	Section 5.11(a)
	 Facility Governmental Authorizations
	  	Section 5.6
	 Facility Records
	  	Section 2.1(h)
	 FSMC
	  	Recitals
	 Fundamental Representations
	  	Section 11.1

  
 5 

			
	 Indemnified Party
	  	Section 11.4(a)
	 Indemnifying Party
	  	Section 11.4(a)
	 Insurance Policy
	  	Section 5.5
	 Lease Agreement
	  	Recitals
	 Leased Manufacturing Equipment
	  	Recitals
	 Leased Real Property
	  	Recitals
	 Losses
	  	Section 11.2
	 Manufacturing Facility
	  	Recitals
	 Material Consents
	  	Section 8.5
	 Non-assignable Asset
	  	Section 2.3
	 Owned Personal Property
	  	Section 2.1(b)
	 Party
	  	Preamble
	 Purchase Price
	  	Section 3.1
	 Purchased Assets
	  	Section 2.1
	 Retained Liabilities
	  	Section 2.4(b)
	 Seller
	  	Preamble
	 Seller Indemnitee
	  	Section 11.3
	 Seller Required Consents
	  	Section 5.2(c)
	 Third Party Claim
	  	Section 11.4(b)
	 Threshold
	  	Section 11.5(b)
	 Transaction Proposal
	  	Section 7.5
	 Transferred Employee
	  	Section 7.10(a)
	 Transfer Taxes
	  	Section 12.1

 ARTICLE II 

Sale and Transfer of Assets. 

2.1 Purchased Assets. Upon the terms and subject to the conditions of this Agreement, at the Closing, Seller shall sell, transfer,
assign, convey and deliver to Buyer, and Buyer shall purchase from Seller, free and clear of all Liens other than Permitted Liens, all of the right, title and interest that Seller possesses in and to all of the following assets and properties
(collectively, the “Purchased Assets”): 
 (a) Seller’s leasehold interest in the Leased Manufacturing Equipment (as
more particularly described on Schedule 2.1(a), which shall be updated by the Parties within three (3) Business Days prior to the Closing) and the Leased Real Property, pursuant to the Lease Agreement; 

  
 6 

 (b) all tangible personal property, including computer hardware, manufacturing equipment,
office equipment, accessories, machinery, furniture, and fixtures owned by Seller and located at the Manufacturing Facility (collectively, the “Owned Personal Property”), as more particularly set forth on Schedule 2.1(b)
(which shall be updated by the Parties within three (3) Business Days prior to the Closing); 
 (c) all of Seller’s inventories
and supplies located at the Manufacturing Facility on the Closing Date other than the raw materials and product inventory for 503B products; 

(d) all of Seller’s rights under the Contracts (collectively, the “Assigned Contracts”) identified on Schedule
2.1(d) (which shall be updated by the Parties within three (3) Business Days prior to the Closing), subject to the provisions of Section 2.4(c)); 

(e) all of Seller’s rights relating to deposits and prepayments with respect to purchase orders or other Contracts included in the
Assigned Contracts, as more particularly set forth on Schedule 2.1(e) (which shall be updated by the Parties within three (3) Business Days prior to the Closing); 

(f) the Facility Governmental Authorizations, to the extent assignable; 

(g) all warranties (express and implied) that continue in effect with respect to the Manufacturing Facility or any Purchased Asset (including,
without limitation, warranties provided for under any Assigned Contract), to the extent assignable; and 
 (h) originals, or where not
available, copies, of material documents and records of Seller, in Seller’s possession or control, relating specifically and solely to the Manufacturing Facility, the Purchased Assets, or the Assigned Contracts (the “Facility
Records”). 
 2.2 Excluded Assets. Except as specifically included in the Purchased Assets described in Section 2.1,
Buyer shall not acquire any other assets or properties (real, personal or mixed, tangible or intangible), of any kind or description of Seller or any Affiliate of Seller (collectively, the “Excluded Assets”). 

2.3 Nonassignable Assets. Nothing in this Agreement, the Bill of Sale or the Contract Assignments or the consummation of the
transactions contemplated hereby or thereby shall be construed as an attempt or agreement to assign or transfer any Purchased Asset (including any Assigned Contract or Facility Governmental Authorization) to Buyer which by its terms or by Law is not
assignable or transferable without a consent or is cancelable by a third party in the event of an assignment or transfer (a “Nonassignable Asset”), unless and until such consent shall have been obtained or Law satisfied. Seller and
Buyer shall obtain as expeditiously as possible any consent that may be required and satisfy any Law necessary to the assignment or transfer of a Nonassignable Asset to Buyer, and Seller shall take all such actions as may be necessary to effect the
assignment or transfer of the Nonassignable Asset. Unless and until any such consent that may be required is obtained or Law satisfied, Seller shall establish an arrangement reasonably satisfactory to Buyer under which Buyer would obtain the claims,
rights and benefits and assume the corresponding liabilities and obligations under such Nonassignable Asset (including by means of any subcontracting, sublicensing or subleasing arrangement) or under which Seller would enforce for the benefit of
Buyer, with Buyer assuming and agreeing to pay Seller’s obligations and reasonable expenses, any and all claims, rights and benefits of Seller against a third party thereto; 

  
 7 

 
provided, that in no event shall Buyer be required to enter into any such arrangement with respect to any Nonassignable Asset for which a required consent is necessary or be required to
incur any unreimbursed expenses in connection with such arrangement. Seller shall promptly pay over to Buyer all payments received by such Seller in respect of all Nonassignable Assets. If and when the applicable consents or approvals, the absence
of which caused the deferral of transfer of any Nonassignable Asset pursuant to this Section, are obtained, the transfer of the applicable Nonassignable Asset to Buyer shall automatically and without further action be effected in accordance with the
terms of this Agreement. 
 2.4 Liabilities. 

(a) Subject to the terms and conditions of this Agreement, at the Closing, Buyer shall assume and agree to perform, pursuant to the Bill of
Sale and the Contract Assignments, as applicable, only the Liabilities of Seller under the Assigned Contracts arising, accruing, or required to be performed after the Closing Date (collectively, the “Assumed Liabilities”). 

(b) Except for the Assumed Liabilities described in Section 2.4(a), Buyer shall not assume, nor shall it agree to pay, perform or
discharge, any Liability of Seller or any Affiliate of Seller (collectively, the “Retained Liabilities”). 
 (c) The
Parties acknowledge that the Alliance Agreement includes provisions relating to Seller’s corporate headquarters in Buffalo, New York, in addition to those relating to the Manufacturing Facility. Notwithstanding anything in this Agreement to the
contrary, Seller shall retain all rights, liabilities, and obligations under the Alliance Agreement that relate specifically to Seller’s corporate headquarters located in the Coventus Building, 1001 Main Street, Buffalo, New York (none of which
shall constitute part of the Assigned Contracts and all of which shall constitute Excluded Assets and Retained Liabilities, as applicable). In connection with the assignment of the Alliance Agreement and the request for FSMC’s consent to such
assignment, Seller and Buyer shall negotiate with FSMC to amend, modify, or restate, in whole or in part, the Alliance Agreement as necessary and appropriate to bifurcate and allocate, as between Seller and Buyer, the respective rights, liabilities,
and obligations thereunder between Seller (with respect to its corporate headquarters) and Buyer (with respect to the Manufacturing Facility). 

ARTICLE III 
 Purchase
Price. 
 3.1 The Purchase Price. The aggregate purchase price (the “Purchase Price”) to be paid by Buyer for
the Purchased Assets shall be an amount equal to (a) $38,165,366 (which for the avoidance of doubt reflects Facility Costs incurred to date inclusive of Seller’s current accounts payable) plus (b) the aggregate amount of Facility
Costs incurred by Seller between December 18, 2021 and the Closing Date (the “Additional Facility Costs”), as agreed upon by Buyer and Seller prior to the Closing, provided, however, that the Purchase Price shall not exceed
$40,000,000. Within three (3) Business Days prior to the Closing, Seller shall deliver to Buyer for its review and approval Seller’s calculation of the Additional Facility Costs (which calculation shall be consistent with Seller’s
prior calculations of Facility Costs used for purposes of determining the Purchase Price) and, if Buyer disputes any amounts in such calculation, Buyer and Seller shall negotiate in good faith to resolve such dispute prior to the Closing. The
Parties acknowledge that 

  
 8 

 
the Purchase Price shall reflect the aggregate amount of costs incurred by Seller prior to the Closing with respect to the design, development, construction, staffing, equipping, and operation of
the Manufacturing Facility and the satisfaction of its obligations for the Manufacturing Facility under certain Assigned Contracts (collectively, “Facility Costs”). The Purchase Price shall be allocated among the Purchased Assets as
set forth in Section 3.3, and shall be payable to Seller in accordance with the provisions of Section 3.2. 
 3.2 Payment at
Closing. Subject to the terms and conditions of this Agreement, at Closing, Buyer shall pay the Purchase Price to Seller by wire transfer of immediately available funds to an account designated in writing by Seller at least three
(3) Business Days prior to Closing. 
 3.3 Allocation of Purchase Price. The Parties agree that the Purchase Price shall be
allocated among the Purchased Assets for all purposes (including tax and financial accounting) as shown on the allocation schedule determined pursuant to this Section (the “Allocation Schedule”). Buyer shall prepare and deliver to
Seller a draft of the Allocation Schedule at least five (5) Business Days prior to the Closing. If, prior to the Closing, Seller notifies Buyer in writing that Seller objects to one or more items reflected in the Allocation Schedule, Seller and
Buyer shall negotiate in good faith to resolve such dispute prior to the Closing Date. If Seller fails to deliver such objection prior to the Closing, the Allocation Schedule provided by Buyer shall be final and binding for purposes of this Section.
Seller and Buyer and their respective Affiliates shall report, act and file all tax returns in all respects and for all purposes consistent with the Allocation Schedule. No Party shall take any position in any tax matter (whether in audit, tax
returns, or otherwise with any Governmental Authority) that is inconsistent with the Allocation Schedule unless required to do so by applicable Law. 

ARTICLE IV 
 Closing. 

4.1 Closing. The closing of the transactions contemplated hereby (the “Closing”) shall take place at such place as is
agreed in writing by Buyer and Seller, or via electronic transmittal of documents, on a date designated by Buyer not later than five (5) Business Days after the date that the conditions set forth in Article VIII and Article IX have been
satisfied or waived (other than conditions that by their terms are to be satisfied at Closing, but subject to the satisfaction or waiver of such conditions), or on such other date or at such other place or time as is mutually agreed upon by Buyer
and Seller. For financial accounting and tax purposes, to the extent permitted by Law, the Closing shall be deemed to have become effective as of 11:59 p.m. on the Closing Date. 

4.2 Closing Actions and Deliveries. All actions to be taken and all documents to be executed and delivered in connection with the
consummation of the transactions provided for herein shall be in form and substance agreed upon by the Parties and their respective counsel. All actions to be taken and all documents to be executed and delivered by the Parties at the Closing shall
be deemed to have been taken and executed simultaneously, and no action shall be deemed taken nor any document executed and delivered until all have been taken, executed and delivered. 

  
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 ARTICLE V 

Representations and Warranties of Seller. 

Seller makes the following representations and warranties to Buyer as of the date hereof and as of the Closing Date (except to the extent made
only as of a specified date, in which case as of such date), which representations and warranties are supplemented and qualified by the disclosures contained in the Schedules attached hereto that contains references to the representations and
warranties to which the disclosures contained therein relate. 
 5.1 Organization; Subsidiaries; Ownership. Seller is a
corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has the full right, power and authority to own, lease and operate all of its properties and assets and carry out its business as it is
presently conducted. 
 5.2 Due Authorization; No Conflict. 

(a) Seller has the corporate power and authority to execute and deliver this Agreement and all other Transaction Documents to which it is a
party, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance by Seller of this Agreement and all other Transaction Documents to which it is a
party have been duly authorized by all necessary corporate action. 
 (b) This Agreement has been duly executed and delivered by Seller.
This Agreement, and all other Transaction Documents executed or to be executed by Seller in connection herewith, constitute or, when executed and delivered, shall constitute a legal, valid and binding contract of Seller, enforceable against Seller
in accordance with its terms, except as enforcement may be limited by General Enforceability Exceptions. 
 (c) Except for the consents,
approvals and authorizations set forth in Schedule 5.2(c) (collectively, the “Seller Required Consents”), the execution and delivery by Seller of this Agreement and the Transaction Documents to which Seller is a party, the
performance by Seller of its obligations hereunder and thereunder and the consummation of the transactions contemplated hereby and thereby, shall not (with or without notice or lapse of time): (i) violate, conflict with, result in a breach of the
terms or conditions of, or constitute a default, an event of default or an event creating rights of acceleration, termination or cancellation or a loss of rights under, (A) any Assigned Contract, (B) any other Contract to which Seller is a
party or any of the Purchased Assets is subject or by which Seller is bound, or (C) any Law, Governmental Authorization or Governmental Order applicable to Seller, the Purchased Assets, or the Assumed Liabilities; (ii) contravene the
Organizational Documents of Seller; (iii) require Seller to make any declaration, filing or registration with, or provide any notice to, any Governmental Authority or obtain any Governmental Authorization, (iv) require any consent,
approval or authorization of, declaration, filing or registration with, or notice to, any other Person; or (v) result in the creation or imposition of any Lien (other than Permitted Liens) upon any of the Purchased Assets. 

  
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 5.3 Title to Assets; Condition; Sufficiency. 

(a) Except as set forth on Schedule 5.3(a), Seller has (and shall transfer to Buyer at the Closing) good title to all of the Owned
Personal Property, free and clear of all Liens, except Permitted Liens. 
 (b) The Owned Personal Property and the Leased Manufacturing
Equipment are in good working order, condition and repair, reasonable wear and tear excepted. 
 5.4 Leased Real Property. 

(a) Schedule 5.4(a) contains a true, complete and accurate description of the Leased Real Property. Except for the CCIDA Lease
Agreements, there are no subleases, licenses, concessions, occupancy agreements or other Contracts granting to any other Person the right of use or occupancy of the Leased Real Property and there is no Person (other than Seller) in possession of the
Leased Real Property. Seller has made available to Buyer to Buyer true and correct copies of the Lease Agreement and the CCIDA Lease Agreements, and they have not been further amended. Seller has (and shall transfer to Buyer at Closing) a leasehold
interest in the Leased Real Property, free and clear of all Liens, except Permitted Liens. 
 (b) Seller presently enjoys peaceful and
undisturbed possession of the Leased Real Property. There is no pending or, to the Knowledge of Seller, threatened eminent domain taking affecting any portion of the Leased Real Property which shall interfere with the operation of the Leased Real
Property. Except as set forth on Schedule 5.4(b), to the Knowledge of Seller, no event or condition currently exists which would create a legal or other impediment to the use of the Leased Real Property as currently used (or as intended to be
used under the Lease Agreement), or would increase the additional charges or other sums payable by the tenant under the Lease Agreement (including, without limitation, any pending tax reassessment or other special assessment affecting the Leased
Real Property). 
 (c) Seller has not received written notice from any Governmental Authority of any violations of any Law affecting any
portion of the Leased Real Property. 
 (d) Each of the Lease Agreement and CCIDA Lease Agreements is in full force and effect and is
binding and enforceable against Seller and, to the Knowledge of Seller, each of the other parties thereto, in accordance with its terms, except as enforcement may be limited by General Enforceability Exceptions. There has not been under the Lease
Agreement or any CCIDA Lease Agreement any material breach or default by Seller or, to the Knowledge of Seller, by any other party thereto, nor any event which, after notice or lapse of time, or both, would constitute any such material breach or
default by Seller or, to the Knowledge of Seller, by any other party thereto. Seller has not received any written claim from any other party to the Lease Agreement or any CCIDA Lease Agreement that Seller has breached in any material respect any
obligations to be performed by it thereunder, or is otherwise in default or delinquent in performance thereunder. 
 (e) All contractors who
performed and completed work at the Leased Real Property pursuant to the AIA Agreement have been paid in full, except as set forth on Schedule 5.4(e). 

  
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 (f) Except as set forth in the letter described on Schedule 5.10, the Manufacturing
Facility is in good condition and repair, ordinary wear and tear excepted. 
 (g) Neither the whole nor any material portion of the Leased
Real Property has been damaged or destroyed by fire or other casualty within the prior twelve (12) months. 
 (h) The Certificate of
Occupancy for the Manufacturing Facility covers the entire Manufacturing Facility. Seller has used the Manufacturing Facility in compliance with such Certificate of Occupancy. 

5.5 Insurance. Schedule 5.5 sets forth a description of the current insurance policies pertaining to the Leased Real Property
maintained by Seller (each, an “Insurance Policy”). The description includes for each Insurance Policy the type of policy, policy number, name of insurer and expiration date. Seller has made available to Buyer true, accurate and
complete copies of all such Insurance Policies, in each case, as amended or otherwise modified and in effect with respect to Seller. 
 5.6
Governmental Authorizations. Schedule 5.6 sets forth a list of all material Governmental Authorizations that Seller currently holds with respect to its lease, operation, and use of the Manufacturing Facility (the “Facility
Governmental Authorizations”). Seller has not been a party to or subject to any Proceeding seeking to revoke, suspend or otherwise limit any Facility Governmental Authorization, and Seller has not received any written notice of any such
Proceeding or any threat thereof. Each of the Facility Governmental Authorizations is valid and in full force and effect, and Seller is in compliance in all material respects with the terms of all of its Facility Governmental Authorizations. 

5.7 Compliance with Laws. Seller is in compliance in all material respects with all applicable Laws relating to the lease, operation,
or use of the Manufacturing Facility. Seller has not received any written notice from any Governmental Authority of any violation of any Law relating to the lease, operation, or use of the Manufacturing Facility. 

5.8 Environmental Matters. 

(a) Except as set forth on Schedule 5.8(a), (i) Seller has conducted its operations at the Leased Real Property in compliance with all
applicable Environmental Laws and Environmental Permits, (ii) Seller has obtained, and has maintained in full force and effect, all Environmental Permits required for its operations at the Leased Real Property, (iii) Seller has managed and
handled Hazardous Substances on the Leased Real Property in compliance with applicable Environmental Laws and Environmental Permits, (iv) there are no past, pending or, to the Knowledge of Seller, threatened claims or Proceedings pursuant to
Environmental Laws against Seller, any of the Purchased Assets or, to the Knowledge of Seller, the Leased Real Property, and (v) to the Knowledge of Seller, there are no Hazardous Substance conditions at the Leased Real Property (x) in
violation of applicable Environmental Laws or Environmental Permits or (y) for which investigation, remediation or other corrective action is required under Environmental Laws or Environmental Permits. 

(b) Seller has provided or made available to Buyer all environmental reports in the possession or control of Seller (as more particularly set
forth on Schedule 5.8(b)), all Environmental Permits, and other relevant, material environmental documentation (“Environmental Documents”) pertaining to the Leased Real Property in the possession or control of Seller. 

  
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 (c) The representations and warranties in this Section 5.8 are Seller’s sole
representations and warranties with respect to all Environmental Matters, including matters involving Hazardous Substances. 
 5.9
Litigation. Except as set forth in Schedule 5.9, (a) there is no Proceeding pending or, to the Knowledge of Seller, threatened (i) against Seller or affecting the Purchased Assets or the Manufacturing Facility or
(ii) which seeks to prohibit, restrict or delay consummation of the transactions contemplated by this Agreement or any of the conditions to consummation of such transactions and, (b) there is no Governmental Order outstanding or, to the
Knowledge of Seller, threatened (i) against Seller or affecting the Purchased Assets or the Manufacturing Facility, or (ii) which seeks to prohibit, restrict or delay consummation of the transactions contemplated by this Agreement or any
of the conditions to consummation of such transactions. 
 5.10 Assigned Contracts. Except as set forth on Schedule 2.1(d),
Seller has made available to Buyer true and correct copies of each of the Assigned Contracts. Each of Assigned Contracts is in full force and effect and is binding and enforceable against Seller and, to the Knowledge of Seller, each of the other
parties thereto, in accordance with its terms, except as enforcement may be limited by General Enforceability Exceptions. Except as set forth on Schedule 5.10, there has not been under any such Assigned Contract any material breach or default
by Seller or, to the Knowledge of Seller, by any other party thereto, nor any event which, after notice or lapse of time, or both, would constitute any such material breach or default by Seller or, to the Knowledge of Seller, by any other party
thereto. Seller has not received any written claim from any other party to any Assigned Contract that Seller has breached in any material respect any obligations to be performed by it thereunder, or is otherwise in default or delinquent in
performance thereunder. 
 5.11 Employees. 

(a) Seller has made available to Buyer a true and complete list setting forth the name, position, salary or wage rate, commission status, date
of hire, full- or part-time status, active or leave status and “exempt” or “non-exempt” status, for each employee or individual service provider of Seller who is assigned to work primarily
at the Manufacturing Facility as of the date hereof (collectively, the “Facility Employees”), including any individual absent due to short-term disability, family or medical leave, military leave or other approved absence. Seller is
not party to any management, employment, consulting or other agreements or understandings with any Facility Employee providing for employment for a defined period of time or on an other than
“at-will” basis. 
 (b) Seller is not a party to, or bound by, any collective bargaining
or other agreement with a labor organization representing any Facility Employees. There has not been, nor, to the Knowledge of Seller, has there been any threat of, any strike, slowdown, work stoppage, lockout, labor organizing, concerted refusal to
work overtime or other similar labor activity or dispute affecting Seller in respect of the Manufacturing Facility. 

  
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 (c) Except as set forth in Schedule 5.11(c) there are no Proceedings against Seller
pending or, to the Knowledge of Seller, threatened to be brought or filed, by or with any Governmental Authority or arbitrator in connection with the employment of any current or former Facility Employee, including, without limitation, any claim
relating to unfair labor practices, employment discrimination, harassment, retaliation, equal pay or any other employment related matter arising under applicable Laws. 

(d) Seller is in compliance in all material respects with all applicable Laws pertaining to employment and employment practices (including all
Laws relating to terms and conditions of employment, wages, hours, overtime compensation, child labor, hiring, promotion and termination of Facility Employees, working conditions, meal and break periods, privacy, collective bargaining, workers’
compensation, occupational safety and health, equal employment opportunity, fair employment practices, employment discrimination, harassment, retaliation, reasonable accommodation, disability rights or benefits, immigration, leaves of absence and
unemployment insurance), to the extent they relate to Facility Employees. All Facility Employees classified as exempt under the Fair Labor Standards Act and state and local wage and hour Laws are properly classified. Seller has not received any
written notice alleging that it has failed to comply with any such Laws as it relates to the Facility Employees. There are no pending or, to the Knowledge of Seller, threatened Proceedings regarding any alleged misclassification of Facility
Employees as independent contractors. 
 (e) Assuming Buyer’s compliance with Section 7.10, Seller has not taken any action that
could constitute a “mass layoff” or “plant closing” within the meaning of the Worker Adjustment and Retraining Notification (“WARN Act”) or similar state Law or could otherwise trigger any notice requirement or
liability under any local or state plant closing notice Law. 
 (f) (i) All compensation, including wages, commissions and bonuses payable
to any Facility Employees for services performed on or prior to the date hereof have been paid in full or accrued in Seller’s financial records. Seller has withheld all amounts required by Law or agreement to be withheld from the wages or
salaries of Facility Employees and Buyer is not liable for any arrears of any Tax or penalties for Seller’s failure to comply with the foregoing. 

5.12 No Broker. Neither Seller nor any Person acting on behalf of Seller has paid or become obligated to pay any fee or commission to
any broker, finder or intermediary for or on account of the transactions contemplated by this Agreement 
 5.13 Employment Benefit
Matters. 
 (a) Seller has provided to Buyer a summary of each material benefit, retirement, compensation, incentive, bonus, stock
option, restricted stock, stock appreciation right, phantom equity, change in control, severance, vacation, paid time off, welfare and fringe-benefit agreement, plan, policy and program, whether or not reduced to writing, in effect and covering one
or more Facility Employees or the beneficiaries or dependents of any such Persons, which is maintained, sponsored, contributed to, or required to be contributed to by Seller, or under which Seller has any liability for premiums or benefits (each, a
“Benefit Plan”). 

  
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 (b) Each Benefit Plan complies in all material respects with all applicable Laws, including
the Employee Retirement Income Security Act, as amended (“ERISA”) and the Internal Revenue Code of 1986, as amended (the “Code”). 

(c) There is no Liability whatsoever with respect to, or in any way related to, any Benefit Plan, which the Buyer shall assume, or could
reasonably be expected to assume (by operation of law or otherwise), as part of the transactions contemplated by this Agreement or otherwise. 

5.14 Benchmark Items. Schedule 5.14 sets forth the status of Seller’s obligations to satisfy certain benchmark requirements
as provided in the CCIDA Lease Agreements and the Alliance Agreement. 
 5.15 DISCLAIMER OF OTHER REPRESENTATIONS AND WARRANTIES.
EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, SELLER MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, IN RESPECT OF THE PURCHASED ASSETS, THE ASSUMED LIABILITIES OR THE MANUFACTURING FACILITY, INCLUDING, WITHOUT
LIMITATION, WITH RESPECT TO MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE, AND ANY SUCH OTHER REPRESENTATIONS OR WARRANTIES ARE HEREBY EXPRESSLY DISCLAIMED. 

ARTICLE VI 
 Representations and
Warranties of Buyer.  
 Buyer hereby makes the following representations and warranties to Seller as of the date hereof and as
of the Closing Date (except to the extent made only as of a specified date, in which case as of such date), which representations and warranties are qualified by the information set forth in the reports, registrations, documents, filings,
statements, schedules and submissions together with any required amendments thereto filed by Buyer with the SEC prior to the date of this Agreement. 

6.1 Organization and Good Standing. Buyer is a corporation duly organized, validly existing and in good standing under the laws of the
State of Delaware. 
 6.2 Due Authorization; No Conflict. 

(a) Buyer has all requisite power and authority to execute, deliver and perform this Agreement and all other Transaction Documents to which it
is a party, to consummate the transactions contemplated hereby and thereby and to perform its obligations hereunder and thereunder. The execution, delivery and performance by Buyer of this Agreement and all other Transaction Documents to which it is
a party have been duly authorized by all necessary corporate action. This Agreement, and all other Transaction Documents executed or to be executed by Buyer in connection herewith, constitute or, when executed and delivered, shall constitute, a
legal, valid and binding Contract of Buyer, enforceable against Buyer in accordance with its terms, except as enforcement may be limited by General Enforceability Exceptions. 

  
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 (b) The execution and delivery by Buyer of this Agreement and the Transaction Documents to
which it is a party, the performance by Buyer of its obligations hereunder and thereunder and the consummation of the transactions contemplated hereby and thereby, shall not (with or without notice or lapse of time): (i) violate, conflict with,
result in a breach of the terms or conditions of, or constitute a default, an event of default or an event creating rights of acceleration, termination or cancellation or a loss of rights under, (A) any Contract to which Buyer is a party or by
which Buyer’s assets are subject or by which Buyer is bound, or (B) any Law, Governmental Authorization or Governmental Order applicable to Buyer or Buyer’s assets or business; (ii) contravene the Organizational Documents of
Buyer; (iii) require Buyer to make any declaration, filing or registration with, or provide any notice to, any Governmental Authority or obtain any Governmental Authorization, or (iv) require any consent, approval or authorization of,
declaration, filing or registration with, or notice to, any other Person. 
 6.3 Litigation. There is no Proceeding pending or, to
the Knowledge of Buyer, threatened against Buyer or its Affiliates which seeks to prohibit, restrict or delay consummation of the transactions contemplated by this Agreement or any of the conditions to consummation of such transactions. There
is no Governmental Order outstanding against Buyer or its Affiliates or, to the Knowledge of Buyer, threatened which seeks to prohibit, restrict or delay consummation of the transactions contemplated by this Agreement or any of the conditions to
consummation of such transactions. 
 6.4 No Brokers. Neither Buyer, nor any Person acting on behalf of Buyer, has paid or become
obligated to pay any fee or commission to any broker, finder or intermediary for or on account of the transactions contemplated by this Agreement. 

6.5 Independent Investigation. Buyer has conducted its own independent investigation, review and analysis of the Manufacturing
Facility, the Purchased Assets, and the Assumed Liabilities, and acknowledges that it has been provided adequate access to the personnel, properties, premises, and other documents and data of Seller for such purpose. Buyer acknowledges and agrees
that: (a) in making its decision to enter into this Agreement and consummate the transactions contemplated by this Agreement, Buyer has relied solely upon its own investigation and the express representations and warranties of Seller set forth
in Article V of this Agreement (including related portions of the Schedules); and (b) neither Seller nor any other Person has made any representation or warranty as to Seller, the Manufacturing Facility, the Purchased Assets, the Assumed
Liabilities, or this Agreement, except as expressly set forth in Article V of this Agreement (including the related portions of the Schedules). 

6.6 DISCLAIMER OF OTHER REPRESENTATIONS AND WARRANTIES. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, BUYER MAKES NO REPRESENTATION
OR WARRANTY, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, IN RESPECT OF ANY OF ITS ASSETS, LIABILITIES OR OPERATIONS, INCLUDING, WITHOUT LIMITATION, WITH RESPECT TO MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE, AND ANY SUCH OTHER
REPRESENTATIONS OR WARRANTIES ARE HEREBY EXPRESSLY DISCLAIMED. 

  
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 ARTICLE VII 

Covenants and Agreements.  

7.1 Buyer’s Investigation. 

(a) Prior to the Closing Date, Buyer shall be entitled, upon reasonable request and at its own expense, through its employees and
representatives, including without limitation, its attorneys to perform a due diligence evaluation of the Manufacturing Facility, the Purchased Assets, and the Assumed Liabilities. Buyer shall be permitted reasonable access to the Leased Premises
including, without limitation, the opportunity to observe and verify the Purchased Assets. Any such evaluation and review shall be conducted at reasonable times and under reasonable circumstances. Buyer agrees that any such evaluation or review
shall not unreasonably interfere with the ongoing operations of Sellers and shall not involve any Phase II environmental investigations, any environmental sampling or any other invasive investigations or sampling. Seller shall cooperate with all
reasonable requests and shall use reasonable efforts to cause its officers, employees, consultants, agents, accountants and attorneys to cooperate with such review and investigation. The furnishing of any information to Buyer or any investigation
made by Buyer or its authorized representatives shall not operate as a waiver or otherwise affect, diminish or obviate the representations and warranties made in this Agreement by Seller and Buyer’s right to rely thereon. 

(b) In the event this Agreement is terminated for any reason, upon the written request of Seller, Buyer shall promptly return to Seller or
destroy, any such information in its possession and certify in writing to Seller that it has done so, subject to the provisions of Section 10.3. The provisions of this Section 7.1(b) shall survive the termination of this Agreement. 

7.2 Consents of Third Parties; Governmental Authorizations. The Parties shall use best efforts to diligently pursue and secure, before
the Closing Date, all Seller Required Consents, in each case in form and substance agreed upon by Buyer and Seller. The Parties shall not willfully take any action that will have the effect of delaying, impairing or impeding the receipt of any
Seller Required Consents. Each of Buyer and Seller will comply with any reasonable additional requests for information by any Governmental Authority or other Person whose consent or approval is required for the Seller Required Consents. In addition,
Buyer and Seller will cooperate in good faith with any Governmental Authority or other such Person and use reasonable efforts to undertake promptly any reasonable action required to complete lawfully the transactions contemplated by this Agreement.
Buyer shall be responsible for and pay all fees and other charges that may be payable to any Governmental Authority for purposes of requesting or obtaining the Seller Required Consents, however, Seller shall be responsible for payment of any
penalties, fines, levies, assessments or charges, related to violations by Seller, that are required or conditioned upon obtaining the Seller Required Consents. Seller shall be responsible for and pay all fees and other charges that may be payable
to any Persons (other than Governmental Authorities) for purposes of requesting or obtaining the Seller Required Consents. If the Person identified as the “Design Builder” of Schedule 7.2 (“Design-Builder”) does not
consent to the assignment of the AIA Document A141-2014 (Standard Form of Agreement between Owner and Design-Builder) dated as of December 29, 2017, between Seller and Design-Builder, as amended or supplemented (the “AIA
Agreement”), to Buyer by the Closing Date, then Seller shall cooperate with Buyer to enforce any of Seller’s rights and obligations under the AIA Agreement post-Closing, at Buyer’s cost. 

  
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 7.3 Actions Prior to Closing. During the period prior to the Closing Date, except as
contemplated by this Agreement or except as approved in writing by Buyer, Seller shall (a) keep and maintain the Manufacturing Facility, the Leased Manufacturing Equipment, and the Owned Personal Property in good operating condition and repair
subject to normal wear and tear; (b) maintain and comply in all material respects with (except for expiration due to lapse of time) all Assigned Contracts in effect without change, except those Assigned Contracts which expire or terminate by
their terms or as otherwise expressly provided herein; (c) comply in all material respects with the provisions of all Laws applicable to the Manufacturing Facility and the Purchased Assets and its conduct of the Business; (d) not alter in
any material respect the rate or basis of compensation of any of the Facility Employees other than in the ordinary course of business; (e) use commercially reasonable efforts to resolve the matters identified in Schedule 5.10; (f) not
sign any sublease or license with respect to the Leased Real Property; (g) not amend the Lease Agreement or CCIDA Lease Agreements, or amend in any material respect any other Assigned Contract; (h) maintain insurance for the Leased Real
Property (to the extent maintained by Seller as of the date of this Agreement), Owned Personal Property and Leased Manufacturing Equipment; (i) refrain from removing any items of Owned Personal Property or Leased Manufacturing Equipment (other
than any obsolete items), unless such items are replaced with items of equal or greater value; (j) promptly inform Buyer of any written notices of default or violations that it receives related to the Leased Real Property, Manufacturing
Facility or any Assigned Contracts; (k) not enter into any agreements with Design-Builder or the “Architect” identified on Schedule 7.2 (“Architect”) without Buyer’s consent, which consent shall not be
unreasonably withheld, conditioned, or delayed; and (l) provide Buyer with the opportunity to attend all meetings and conference calls that Seller has with Design-Builder, Architect, FSMC, ESD, CCIDA or any Governmental Authority, to the extent
such meetings or conference calls relate to the Purchased Assets, Assigned Contracts, or the Manufacturing Facility. 
 7.4 Notification
of Certain Matters. 
 (a) From the date of this Agreement until the Closing Date, Seller shall give Buyer prompt written notice upon
becoming aware of any material development that has had or could reasonably be expected to adversely affect the Purchased Assets or the Assumed Liabilities, or any event or circumstance that has resulted in or could reasonably be expected to result
in a breach of, or inaccuracy in, any representation or warranty contained in Article V or the failure of any conditions set forth in Article VIII; provided, however, that no such disclosure shall be deemed to prevent or cure
any such breach of, or inaccuracy in, amend or supplement any Schedule to, or otherwise disclose any exception to, any of the representations and warranties of Seller set forth in this Agreement. 

(b) Seller and Buyer shall agree to a schedule of regular contact during the period prior to Closing to update Buyer on any matters related to
Section 7.3 or Section 7.4(a), and to keep a steady line of communication as it relates to Section 7.2. Seller shall update Buyer on a weekly basis regarding the status of (i) consummating Design-Builder’s obligations under
the AIA Agreement, and (ii) any Governmental Authority requisitions and payments related to the Manufacturing Facility. 
 7.5 No
Solicitation. From the date of this Agreement until the earlier of the Closing Date or the date of the termination of this Agreement pursuant to Article X, Seller shall not, and Seller shall not authorize or permit any officer, manager,
employee, investment banker, attorney or other adviser or representative of Seller to: (i) continue discussions, initiate, solicit, entertain, negotiate, accept or discuss, directly or indirectly, any proposal or offer from any Person or group

  
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of persons other than Buyer and its Affiliates (a “Transaction Proposal”) to acquire all or any significant part of the Purchased Assets, whether by merger, purchase of stock,
purchase of assets, tender offer or otherwise, or (ii) enter into any agreement, arrangement or understanding requiring Seller to abandon, terminate or fail to consummate the transactions contemplated by this Agreement. 

7.6 Satisfaction of Closing Conditions. Seller and Buyer shall, and shall cause their respective representatives to, use best efforts
to take all of the actions necessary to consummate the transactions hereunder including delivering all the various certificates, documents and instruments described in Article VIII and Article IX hereto, as the case may be. 

7.7 Further Assurances. From and after the Closing Date, upon the request of either Seller or Buyer, each of the Parties shall do,
execute, acknowledge and deliver all such further acts, assurances, deeds, assignments, transfers, conveyances and other instruments and papers as may be commercially reasonable to carry out the transactions contemplated hereunder. 

7.8 Transfer of Warranties. As of the Closing Date, to the extent assignable, Seller shall be deemed to have assigned to Buyer all of
its right, title and interest in and to warranties (express and implied) that continue in effect with respect to any of the Purchased Assets or the Manufacturing Facility, and to have nominated Buyer as Seller’s true and lawful attorney to
enforce such warranties against such manufacturers, and Seller shall execute and deliver such specific assignments of such warranty rights as Buyer may reasonably request. 

7.9 Prorations. Personal property, ad valorem, use and intangible taxes and assessments, common area maintenance charges, utility
charges and rental payments with respect to the Purchased Assets and the Leased Real Property (collectively, “Charges”) shall be prorated on a per diem basis and apportioned on a calendar year basis between Seller, on the one hand,
and Buyer, on the other hand, as of the date of the Closing. Seller shall be liable for that portion of such Charges relating to, or arising in respect of, periods on or prior to the Closing Date, and Buyer shall be liable for that portion of such
Charges relating to, or arising in respect of, any period after the Closing Date. 
 7.10 Employees. 

(a) Effective as of immediately before the Closing, Buyer shall offer employment, on an “at will” basis and on terms of employment
substantially similar in the aggregate to the terms of employment currently provided by Seller, to all of Facility Employees; provided, that for purposes of determining whether such terms of employment are substantially similar in the
aggregate, equity compensation, employee pension benefit plan as defined in Section 3(2) of ERISA, severance, retention, sale, stay or change in control payments or awards or any similar compensation or benefit will not be taken into account.
Consistent with applicable Law, Seller shall provide Buyer access to the personnel records and personnel files of such Facility Employees, and shall provide such other information regarding the Facility Employees as Buyer may reasonably request. All
Facility Employees who accept such offers of employment with Buyer are hereinafter referred to as the “Transferred Employees” and such acceptance of offers shall be effective immediately after the Closing. 

  
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 (b) With respect to any benefit plans, programs, and arrangements of Buyer in which
Transferred Employees participate after the Closing, Buyer shall use commercially reasonable efforts to: (i) waive all limitations as to pre-existing conditions, exclusions and waiting periods with
respect to participation and coverage requirements applicable to Transferred Employees under Buyer’s health and welfare plans to the extent such limitations were waived or otherwise satisfied under the comparable benefit plans,
(ii) recognize all service of Transferred Employees with Seller for purposes of eligibility to participate (but not benefit accruals), but only to the extent such service would be taken into account under a comparable benefit plan immediately
prior to the Closing, and (iii) to the extent permitted by Buyer’s health and welfare plans, provide that, with respect to the year in which the Closing occurs, any
year-to-date covered expenses incurred on or before the Closing by a Transferred Employee or a Transferred Employee’s covered dependent shall be taken into account
for purposes of satisfying applicable deductible, coinsurance and maximum out-of-pocket provisions after the Closing under Buyer’s health and welfare plans. 

(c) Seller shall be solely responsible for any Liability, claim or expense with respect to employment, termination of employment, compensation
or employee benefits of any nature owed to any Facility Employee (or the beneficiary of any such individual) whether or not such individual becomes a Transferred Employee, that arises out of or relates to the provision of services to or on behalf
of, or the employment relationship between, Seller and any such individual or the termination of such relationship or provision of services on or before the Closing Date. 

(d) For the purposes of the WARN Act and similar state and local laws, Buyer and Seller intend that the transactions contemplated by this
Agreement should not constitute a separation, employment loss, termination or severance of employment of any Facility Employee who accepts an employment offer by Buyer that is consistent with the requirements of Section 7.10(b) and that each
such Facility Employee will have continuous employment immediately before and immediately after the Closing. Buyer shall be liable for any Liabilities relating to Buyer’s hiring of the Transferred Employees and relating to the employment of any
Transferred Employees following the Closing. 
 (e) The provisions of this Section 7.10 are for the benefit of the Parties only and
shall not be construed to grant any rights, as a third party beneficiary or otherwise, to any Person who is not a party to this Agreement, nor shall any provision of this Agreement be deemed to be the adoption of, or an amendment to, any employee
benefit plan, or otherwise to limit the right of Buyer or Seller to amend, modify or terminate any such employee benefit plan. In addition, nothing contained herein shall be construed to (i) prohibit any amendments to or termination of any
employee benefit plans or (ii) prohibit the termination or change in terms of employment of any employee (including any Transferred Employee). Nothing herein, expressed or implied, shall confer upon any employee (including any Transferred
Employee) any rights or remedies (including, without limitation, any right to employment or continued employment for any specified period) of any nature or kind whatsoever, under or by reason of this Agreement. 

7.11 503B Agreement. During the period prior to the Closing Date, the Parties shall negotiate in good faith with respect to the
terms of a manufacturing agreement between the Buyer and the Seller (or an Affiliate or other designee thereof), in form and substance reasonably acceptable to Buyer and Seller, in respect of anticipated access to the Manufacturing Facility
consistent with the needs of the 503B business, under which Buyer shall agree to manufacture at the Manufacturing Facility certain products, following the Closing Date (the “503B Agreement”). 

  
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 7.12 Facility Records. 

(a) In order to facilitate the resolution of any claims made against or incurred by Seller prior to the Closing, or for any other reasonable
purpose, for a period of five (5) years after the Closing, Buyer shall: 
 (i) retain the Facility Records relating to periods prior
to the Closing in a manner reasonably consistent with the prior practices of Seller; and 
 (ii) upon reasonable notice, afford
Seller’s representatives reasonable access (including the right to make, at Seller’s expense, photocopies), during normal business hours, to such Facility Records. 

(b) In order to facilitate the resolution of any claims made by or against or incurred by Buyer after the Closing, or for any other reasonable
purpose, for a period of five (5) years following the Closing, Seller shall: 
 (i) retain the Facility Records of Seller which relate
to the business and its operations for periods prior to the Closing; and 
 (ii) upon reasonable notice, afford Buyer’s
representatives reasonable access (including the right to make, at Buyer’s expense, photocopies), during normal business hours, to such Facility Records. 

(c) Neither Buyer nor Seller shall be obligated to provide the other Party with access to any Facility Records pursuant to this Section
7.12 where such access would violate any Law. 
 ARTICLE VIII 

Conditions to Performance by Buyer Parties.  

The obligation of Buyer to consummate the Closing is subject to the fulfillment of each of the following conditions (unless waived by Buyer in
accordance with Section 12.4): 
 8.1 Representations and Warranties. Other than the Fundamental Representations of Seller, each
of the representations and warranties of Seller contained in this Agreement and in any document, instrument or certificate delivered pursuant to this Agreement, shall be true and correct in all respects (in the case of any representation or warranty
qualified by materiality) or true and correct in all material respects, (in the case of any representation or warranty not qualified by materiality), in either case, as of the date hereof and as of the Closing Date, other than representations and
warranties that expressly speak only as of a specific date or time, which shall be true and correct (or true and correct in all material respects, as the case may be) as of such specified date or time. The Fundamental Representations of Seller shall
be true and correct in all respects on and as of the date hereof and on and as of the date of the Closing with the same effect as though made at and as of such date (except those representations and warranties that address matters only as of a
specified date, the accuracy of which shall be determined as of that specified date in all respects). 

  
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 8.2 Covenants and Agreements. Seller shall have performed and complied in all
material respects with all of its obligations under this Agreement which are to be performed or complied with by it prior to or at the Closing. 

8.3 Compliance Certificate. Seller shall have delivered to Buyer a certificate dated as of the Closing Date, duly executed by an
officer of Seller, certifying as to the satisfaction or the conditions set forth in Sections 8.1 and 8.2. 
 8.4 Absence of
Litigation. No Proceeding shall be initiated, pending or threatened, verbally or in writing, nor shall there be any formal or informal inquiry by a Governmental Authority, which may result in a Governmental Order (nor shall there be any
Governmental Order in effect) which would prevent consummation of any of the transactions contemplated hereunder. 
 8.5 Consents and
Authorizations. All actions by (including any Governmental Authorization or consents of any other Persons) or in respect of (including notice to), or filings with, any Governmental Authority or other Person that are required to consummate the
transactions contemplated hereunder, and identified in Schedule 8.5 (the “Material Consents”) shall have been obtained or made in a manner satisfactory in form and substance to Buyer. 

8.6 Other Closing Deliveries. Seller shall deliver or shall cause to be delivered to Buyer the following: 

(a) a Bill of Sale, Assignment and Assumption Agreement or similar document, in a form acceptable to Buyer and Seller (the “Bill of
Sale”), duly executed by Seller; 
 (b) one or more Assignment and Assumption Agreements or similar documents, in a form acceptable
to Buyer and Seller, with respect to the Assigned Contracts, including, without limitation, an assignment of the Lease Agreement in recordable form (collectively, the “Contract Assignments”), duly executed by Seller; 

(c) an estoppel certificate, in form and substance reasonably acceptable to Buyer which does not reveal any default, duly executed by FSMC;

 (d) an estoppel certificate, in form and substance reasonably acceptable to Buyer which does not reveal any default, duly executed by
CCIDA; 
 (e) a certificate of good standing, as of a recent date, of Seller from the State of Delaware and the State of New York; 

(f) New York Real Property Transfer Tax returns with respect to the Leased Real Property and the assignment of the Lease Agreement; and 

(g) such other assignments and other instruments of transfer or conveyance, duly executed by Seller, as may be reasonably requested by Buyer
to effect the sale, conveyance and delivery of the Purchased Assets and Assumed Liabilities to Buyer. 

  
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 ARTICLE IX 

Conditions to Performance by Seller.  

The obligations of Seller to consummate the Closing is subject to the fulfillment of each of the following conditions (unless waived by Seller
in accordance with Section 12.4): 
 9.1 Representations and Warranties. Other than the Fundamental Representations of Buyer,
each of the representations and warranties of Buyer contained in this Agreement shall be true and correct in all respects (in the case of any representation or qualified by materiality) or true and correct in all material respects (in the case of
any representation or warranty not qualified by materiality), in either case, as of the date hereof and as of the Closing Date, other than representations and warranties that expressly speak only as of a specific date or time, which shall be true
and correct (or true and correct in all material respects, as the case may be) as of such specified date or time. The Fundamental Representations of Buyer shall be true and correct in all respects on and as of the date hereof and on and as of the
date of the Closing with the same effect as though made at and as of such date (except those representations and warranties that address matters only as of a specified date, the accuracy of which shall be determined as of that specified date in all
respects). 
 9.2 Covenants and Agreements. Buyer shall have performed and complied in all material respects with all of its
obligations under this Agreement which are to be performed or complied with by it prior to or at the Closing. 
 9.3 Compliance
Certificate. Buyer shall have delivered to Seller a certificate dated as of the Closing Date, duly executed by an officer of Buyer, certifying as to the satisfaction or the conditions set forth in Sections 9.1 and 9.2. 

9.4 Absence of Litigation. No Proceeding shall be pending or threatened in writing which may result in a Governmental Order (nor shall
there be any Governmental Order in effect) which would prevent consummation of any of the transactions contemplated hereunder. 
 9.5
Consents and Authorizations. All Material Consents shall have been obtained or made in a manner satisfactory in form and substance to Seller. 

9.6 Other Closing Deliveries. Buyer shall deliver or shall cause to be delivered to Seller the following: 

(a) payment of the Purchase Price, in accordance with Section 3.2; 

(b) the Bill of Sale, duly executed by Buyer; 

(c) the Contract Assignments, duly executed by Buyer; 

(d) a certificate of good standing, as of a recent date, of Buyer from the State of Delaware; and 

  
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 (e) such other bills of sale, assignments and other instruments of transfer or conveyance,
duly executed by Buyer, as may be reasonably requested by Seller to effect the sale, conveyance and delivery of the Purchased Assets and Assumed Liabilities to Buyer. 

ARTICLE X 
 Termination.
 
 10.1 Termination. Notwithstanding anything contained in this Agreement to the contrary, this Agreement may be terminated at
any time prior to the Closing: 
 (a) by the mutual written consent of Buyer and Seller; 

(b) by either Buyer or Seller, if (i) any Governmental Authority having competent jurisdiction over any Party shall have issued a final
Governmental Order restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement and such Governmental Order is or shall have become nonappealable or (ii) there shall be adopted any Law that makes the
transactions contemplated by this Agreement illegal or otherwise prohibited; provided, however, the Party seeking to terminate this Agreement pursuant to clause (i) above shall not have initiated such Proceeding or taken any
action in support of such Proceeding and shall have used its reasonable best efforts to challenge such order or other action; 
 (c) by
Buyer, in the event of the inaccuracy in or breach of any representation or warranty of Seller contained in this Agreement or if Seller breaches or fails to perform any of its covenants or agreements contained in this Agreement and such inaccuracy,
breach or failure to perform (i) would reasonably be expected to give rise to the failure of a condition set forth in Article VIII, (ii) cannot be or has not been cured within twenty (20) Business Days after the receipt of written
notice thereof and (iii) has not been waived by Buyer; provided, that, the right to terminate this Agreement pursuant to this Section 10.1(c) shall not be available if, at the time of such purported termination, Buyer has breached
or failed to perform in any material respect any of its representations, warranties, covenants or agreements contained in this Agreement; or 

(d) by Seller, in the event of the inaccuracy in or breach of any representation or warranty of Buyer contained in this Agreement or if Buyer
breaches or fails to perform any of its covenants or agreements contained in this Agreement and such inaccuracy, breach or failure to perform (i) would reasonably be expected to give rise to the failure of a condition set forth in Article IX,
(ii) cannot be or has not been cured within twenty (20) Business Days after the receipt of written notice thereof and (iii) has not been waived by Seller; provided, that, the right to terminate this Agreement pursuant to this
Section 10.1(d) shall not be available if, at the time of such purported termination, Seller has breached or failed to perform in any material respect any of its representations, warranties, covenants or agreements contained in this Agreement.

 10.2 Notice of Termination; Effect of Termination. 

(a) The Party desiring to terminate this Agreement pursuant to Sections 10.1(b) through 10.1(d) shall give written notice of such termination
to the other Party in accordance with Section 12.8, specifying the provision or provisions hereof pursuant to which such termination is effected. The right of any Party to terminate this Agreement pursuant to Section 10.1 shall remain
operative and in full force and effect regardless of any investigation made by or on behalf of any Party hereto, whether prior to or after the execution of this Agreement. 

  
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 (b) In the event of termination of this Agreement pursuant to Section 10.1, this
Agreement shall be of no further force or effect; provided, however, (i) the provisions of Section 7.1(b), Article X, Article XI and Article XII shall survive termination and (ii) any termination pursuant to Section 10.1 shall
not relieve any Party of any Liability for breach of any representation, warranty, covenant or agreement hereunder occurring prior to such termination. 

10.3 Return of Documentation. Following termination of this Agreement, (a) all filings, applications and other submissions made
pursuant to this Agreement or prior to the execution of this Agreement in contemplation hereof shall, to the extent practicable, be withdrawn from the Governmental Authority to which made and (b) Buyer shall return or destroy (and provide proof
of such destruction of) all agreements, documents, contracts, instruments, books, records, materials and other information (in any format) regarding Seller provided to Buyer or its representatives in connection with the transactions contemplated
hereunder other than as reasonably necessary to enforce its rights under this Agreement. Notwithstanding the foregoing, Buyer shall be permitted to retain one copy of all such information and materials in its law department or with its outside legal
counsel. 
 ARTICLE XI 

Indemnification.  

11.1 Survival of Representations and Warranties. All representations and warranties contained in this Agreement shall survive the
consummation of the transactions contemplated by this Agreement for a period of one year from the Closing Date; provided, however, that the representations and warranties contained in Sections 5.1, 5.2(a), 5.2(b), 5.3(a), and 5.12, and Sections 6.1,
6.2(a), and 6.4 (collectively, the “Fundamental Representations”) shall survive the consummation of the transactions contemplated by this Agreement for the full period of all applicable statutes of limitations (giving effect to any
waiver, mitigation or extension thereof) plus sixty (60) days. No action or claim for Losses resulting from any misrepresentation or breach of warranty shall be brought or made after the expiration of the survival period applicable to such
representation or warranty (as provided in this Section), except that such time limitation shall not apply to claims which have been asserted and which are the subject of a written notice from Seller to Buyer or from Buyer to Seller, as may be
applicable, prior to the expiration of such survival period. 
 11.2 Indemnification by Seller. Subject to the terms and conditions
of Section 11.4 and Section 11.5, Seller agrees to indemnify, defend and hold harmless Buyer and its successors and assigns (each a “Buyer Indemnitee”) from or against, for and in respect of, any and all damages, losses,
obligations, Liabilities, demands, judgments, injuries, penalties, claims, actions or causes of action, costs, and expenses (including, without limitation, reasonable attorneys’, experts’ and consultants’ fees) (collectively,
“Losses”) suffered, sustained, incurred or required to be paid by any Buyer Indemnitee arising out of, based upon, in connection with or as a result of: 

(a) any inaccuracy in or breach of any representation or warranty made by Seller in this Agreement; 

  
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 (b) the non-fulfillment, non-performance or other breach of any covenant or agreement to be performed by Seller pursuant to this Agreement; 

(c) the Retained Liabilities; 

(d) any Taxes relating to any period prior to Closing, arising out of the Purchased Assets or Assumed Liabilities, other than any Transfer
Taxes that Buyer is responsible for under Section 12.1; or 
 (e) a bona fide Environmental Claim brought against Buyer by third
parties who are not Affiliates of Buyer, and who are not otherwise acting on behalf of Buyer or as a result of solicitation by or on behalf of Buyer, that (i) is a Material Environmental Liability and (ii) pertains to the Leased Real
Property and (A) pre-Closing Environmental Releases or (B) pre-Closing non-compliance with Environmental Laws;
provided, however, that Seller’s indemnity obligation pursuant to this Section 11.2(e) shall expire on the date that is five years from the Closing Date, except that such time limitation shall not apply to Claims which have been asserted
by Buyer and which are the subject of a written notice from Buyer to Seller prior to such expiration date. 
 11.3 Indemnification by
Buyer. Subject to the terms and conditions of Section 11.4 and Section 11.5, Buyer hereby agree to indemnify, defend and hold harmless Seller and its successors and assigns (each a “Seller Indemnitee”) from or against,
for and in respect of, any and all Losses suffered, sustained, incurred or required to by paid by any Seller Indemnitee arising out of, based upon, in connection with or as a result of: 

(a) any inaccuracy in or breach of any representation or warranty made by Buyer in this Agreement; 

(b) the non-fulfillment, non-performance or other breach of
any covenant or agreement to be performed by Buyer pursuant to this Agreement; or 
 (c) the Assumed Liabilities. 

11.4 Indemnification Procedures. 

(a) Any Party seeking indemnification hereunder (the “Indemnified Party”) shall promptly notify the other Party hereto (the
“Indemnifying Party”, which term shall include all Indemnifying Parties if there be more than one) of any claim for indemnification hereunder (a “Claim”), provided that failure of the Indemnified Party to
give such notice shall not relieve the Indemnifying Party of its obligations under this Article XI except to the extent, if at all, that such Indemnifying Party shall have been prejudiced thereby. After an Indemnified Party has delivered a Claim
requesting payment from an Indemnifying Party for any Losses, the Indemnifying Party shall, within thirty (30) days of receipt of such Claim, (i) pay to the Indemnified Party, in immediately available funds, the amount of Losses, or
(ii) deliver to the Indemnified Party written notice (a “Dispute Notice”) advising the Indemnifying Party that it disputes the Claim. If, within thirty (30) days of receipt of a Claim, the Indemnifying Party fails to pay
said amount to the Indemnified Party or deliver to the Indemnified Party a Dispute Notice the Indemnifying Party shall be deemed to have accepted and agreed to such Claim (a “Deemed Acceptance”) and the Indemnified Party may
exercise any and all legal or equitable remedies available to the 

  
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Indemnified Party under this Agreement or otherwise with respect to such Losses. If, within such 30-day period following receipt of a Claim, the
Indemnifying Party delivers a Dispute Notice with respect to the Indemnified Party’s Claim, the Indemnifying Party and the Indemnified Party agree that, prior to commencing any litigation or other proceedings against the other concerning such
Claim, they will negotiate in good faith to resolve any dispute with respect to such Claim and to provide each other with all relevant information relating to such dispute. If the Indemnifying Party and the Indemnified Party are unable to resolve
any such dispute within thirty (30) days of the delivery of a Dispute Notice (or such longer period as the Parties may agree upon), the Indemnifying Party or the Indemnified Party may thereafter commence litigation or other proceedings to
resolve such dispute. The successful Party in any such proceeding shall be entitled to reimbursement from the non-successful Party for any and all of the successful Party’s costs and expenses including,
without limitation, reasonable attorneys’ fees, incurred in connection with such proceeding. Notwithstanding anything herein to the contrary, if any Claim relates to a Third Party Claim, the procedures of Section 11.4(b),
Section 11.4(c) and Section 11.4(d) shall apply to such Third Party Claim. 
 (b) If such Claim relates to any Proceeding or
demand instituted against the Indemnified Party by a third party (a “Third Party Claim”), the Indemnifying Party shall be entitled to participate in the defense of such Third Party Claim after receipt of notice of such Third Party
Claim from the Indemnified Party. Within thirty (30) days after receipt of notice of a Third Party Claim from the Indemnified Party, the Indemnifying Party may assume the defense of such Third Party Claim, in which case the Indemnifying Party
shall have the authority to negotiate, compromise and settle such Third Party Claim, if and only if the following conditions are satisfied: 

(i) the Indemnifying Party shall have confirmed in writing that it is obligated hereunder to indemnify the Indemnified Party with respect to
such Third Party Claim; 
 (ii) the Indemnified Party shall not have given the Indemnifying Party written notice that it has determined, in
the exercise of its reasonable discretion in good faith, that matters of corporate or management policy or a conflict of interest make separate representation by the Indemnified Party’s own counsel advisable; and 

(iii) such Third Party Claim involves only money damages and does not seek an injunction or other equitable relief; 

provided, however, that no Indemnifying Party shall, except with the consent of the Indemnified Party, consent to entry of any judgment or enter
into any settlement that does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all Liability in respect of such claim or litigation. Indemnified Party’s consent
shall not be unreasonably withheld with respect to monetary matters and matters that are not likely to adversely affect the business operations or reputation of the Indemnified Party. 

(c) In the event the Indemnifying Party does not elect, or is not entitled, to assume the defense of the Third Party Claim, the Indemnified
Party (upon further written notice to the Indemnifying Party) shall have the right to undertake the defense, compromise or settlement of such Third Party Claim, by counsel of its own choosing, on behalf of and for the account and at the risk of the
Indemnifying Party. 

  
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 (d) Notwithstanding anything in this Section 11.4 to the contrary, the Indemnified
Party shall have the right, at its own cost and expense, to participate in the defense and, to the extent such participation affects the Indemnified Party, the compromise or settlement of the Third Party Claim. In the event the Indemnifying Party
undertakes defense of any Third Party Claim, the Indemnified Party, at its sole cost and expense, shall have the right to consult with the Indemnifying Party and its counsel concerning such Claim and the Indemnifying Party and the Indemnified Party
and their respective counsel shall cooperate with respect to the defense of such Claim. 
 11.5 Other Indemnification Provisions.

 (a) Subject to the provisions of Section 11.5(c), (i) the aggregate maximum amount of all Losses for which Seller shall be liable
pursuant to Section 11.2(a) related to Fundamental Representations shall not exceed the Purchase Price, and the aggregate maximum amount of all Losses for which Seller shall be liable pursuant to Section 11.2(a) related to all
representations and warranties other than Fundamental Representations shall not exceed an amount equal to 15% of the Purchase Price. 
 (b)
Subject to the provisions of 11.5(c), Seller shall not be obligated to provide any indemnification for Losses pursuant to Section 11.2(a) for claims for any inaccuracy in, or breach of, any representations and warranties (other than Fundamental
Representations) unless the aggregate amount of Losses incurred by the Buyer Indemnitees with respect to such breaches of, or inaccuracies in, representations and warranties exceeds $200,000 (the “Threshold”), in which case Seller
will be liable only for Losses in excess of the Threshold. 
 (c) The limitations set forth in Section 11.5(a) and Section 11.5(b)
shall not apply to Losses arising as a result of any fraud or intentional misrepresentation by Seller with respect to this Agreement. 
 (d)
The Parties acknowledge and agree that the indemnification provided in this Article XI is the exclusive remedy with respect to any Losses arising under or in connection with this Agreement; provided, however, that (i) any Party
may seek equitable relief, including the remedies of specific performance and injunction, with respect to the breach of any covenant or agreement to be performed after Closing, (ii) this Section 11.5(d) shall not apply with respect to any
claim based on fraud or intentional breach of this Agreement, and (iii) nothing contained in this Agreement shall impair or limit in any way the rights or remedies available to any Party under or in respect of the other Transaction Documents.
 
 (e) The Parties agree to treat any indemnity payments made pursuant to Sections 11.2 and 11.3 as an adjustment to the
Purchase Price for all tax purposes. 
 11.6 Insurance. In calculating the amount of Losses recoverable from an Indemnifying Party,
the amount of such Losses shall be reduced by the amount of any insurance proceeds actually received by the Indemnified Party in respect of the Losses net of (i) any deductible amounts and any reasonable costs and expenses actually incurred by
the Indemnified Party in collecting such insurance proceeds, including reasonable attorneys’ fees, and (ii) any increase in insurance premiums reasonably attributable to insurance proceeds paid in respect of such Losses. If an Indemnified
Party has been indemnified and made whole by the Indemnifying Party under 

  
 28 

 
this Agreement in respect of a Loss, and the Indemnified Party subsequently recovers any insurance proceeds in respect of such Loss, then the Indemnified Party shall promptly reimburse the
Indemnifying Party the amount of such indemnification payment that was subsequently recovered by such insurance proceeds, net of the adjustments described in the first sentence of this Section 11.6. 

11.7 Cooperation, Access to Documents and Information. The Parties shall cooperate with each other in connection with resolving any
indemnification Claims. Without limiting the generality of the foregoing, any Indemnified Party who asserts an indemnification Claim pursuant to this Agreement shall provide to the Indemnifying Party the right to inspect all reasonably requested
documents, books, records and other information relevant to the indemnification Claim and reasonably required to evaluate such indemnification Claim that are in the possession of the Indemnified Party or its Affiliates; provided,
however, that such right to inspect or access would not reasonably be expected to jeopardize or violate any attorney-client or other applicable legal privilege, applicable Law or Contract or other confidentiality obligations. 

ARTICLE XII 
 General
Provisions. 
 12.1 Expenses; Transfer Taxes. Whether or not the transactions contemplated herein shall be consummated,
except as otherwise expressly provided herein, the Parties shall pay their own respective expenses incident to the preparation of this Agreement and to the consummation of the transactions provided for herein. All transfer, documentary, sales, use,
stamp, registrations and other such taxes applicable to, imposed upon or arising out of the transactions contemplated hereby (collectively, “Transfer Taxes”) shall be paid by Buyer; provided, however, that with respect to real
property Transfer Taxes associated with the assignment of the Lease Agreement, Buyer shall not be required to pay more than $100,000 (and, if such real estate Transfer Taxes exceed $100,000, then Seller shall pay the balance thereof). 

12.2 Entire Agreement; No Third Party Beneficiaries; Amendment. This Agreement and the other Transaction Documents and the Exhibits and
Schedules thereto, embodies all of the representations, warranties and agreements of the Parties with respect to the subject matter hereof, and all prior understandings, representations and warranties (whether oral or written) with respect to such
matters are superseded. Nothing in this Agreement, express or implied, is intended to or shall confer upon any Person other than the Parties any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement. This Agreement
may not be amended, modified, waived, discharged or orally terminated except by an instrument in writing signed by the Party against whom enforcement of the change, waiver, discharge or termination is sought. 

12.3 Severability. The invalidity or unenforceability of any particular provision of this Agreement shall not affect the other
provisions hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provisions were omitted. Furthermore, in lieu of such illegal, invalid or unenforceable provisions there shall be added automatically as a
part of this Agreement a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable. 

  
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 12.4 Waiver. Any Party to this Agreement may, by written notice to the other Parties,
waive any provision of this Agreement from which such Party is entitled to receive a benefit. The waiver by any Party hereto of a breach by another Party of any provision of this Agreement shall not operate or be construed as a waiver of any
subsequent breach by such other Party of such provision or any other provision of this Agreement. 
 12.5 Public Announcements. Prior
to the Closing Date, no public announcement or other publicity regarding the existence of this Agreement or any agreements contemplated hereby or their contents or the transactions contemplated hereby or thereby shall be made by any Party or any of
their respective Affiliates, officers, directors, employees, representatives or agents, without the prior written agreement of the other Parties as to form, content, timing and manner of distribution or publication. On and after the Closing Date,
each Party shall maintain confidential the terms and provisions of this Agreement and the agreements contemplated hereby and the terms of the transactions contemplated hereby and thereby. Notwithstanding the foregoing, nothing in this
Section 12.5 shall prevent any Party or its Affiliates or any other Person from (a) making any public announcement or disclosure required by applicable Law or the rules of any stock exchange (in which case the disclosing Party will provide
the other Party with the opportunity to review and comment in advance of the disclosure); (b) disclosing this Agreement or any of the agreements contemplated hereby or their contents or the transactions contemplated hereby or thereby to
(i) current and future officers, directors, employees, representatives and agents of such Party and its Affiliates, (ii) current and potential lenders to, investors in and purchasers of such Party and its Affiliates, and (iii) any
Governmental Authority in order to provide notice, transfer any permits or licenses or obtain such Government Authorities consent in order to consummate the transaction contemplated by this Agreement; (c) disclosing the tax treatment and tax
structure of the transactions contemplated hereby and all materials of any kind (including opinions or other tax analyses) that are provided to such Party relating to such tax treatment and tax structure except to the extent maintaining
confidentiality of such information is necessary to comply with any applicable securities Laws; or (d) enforcing its rights hereunder. 

12.6 Successors and Assigns. This Agreement shall not be assignable by any Party hereto without the prior written consent of the other
Parties; provided, however, Buyer may, upon written notice to Seller, assign this Agreement in whole or in part to any Affiliate of Buyer, provided that such assignment shall not relieve Buyer of its obligations hereunder. This
Agreement shall be binding upon, and shall inure to the benefit of, and be enforceable by, the Parties and their respective legal representatives, heirs, legatees, successors and assigns.  

12.7 Specific Performance. The Parties agree that irreparable damage would occur if any provision of this Agreement were not performed
in accordance with the terms hereof and that the Parties shall be entitled to specific performance of the terms hereof, including, but not limited to Section 7.5, in addition to any other remedy to which they are entitled at law or in equity,
in each case subject to the limitations set forth in this Agreement. 
 12.8 Notice. All notices or other communications required or
permitted hereunder shall be in writing and in English and shall be delivered personally or sent by registered or certified mail, by reputable overnight delivery or courier or by electronic mail or facsimile transmission, addressed as follows: 

  
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	 To Buyer:
	  	 ImmunityBio, Inc.

		  	 2040 E. Mariposa Avenue

		  	 El Segundo, CA 90245

		  	 Attn: Richard Adcock, CEO and President

		  	 Email: Richard.Adcock@ImmunityBio.com

		
	 With a copy to:
	  	 Olshan Frome Wolosky LLP

	 (which shall not constitute notice)
	  	 1325 Avenue of the Americas

		  	 New York, New York 10019

		  	 Attn: Kenneth M. Silverman

		  	 Facsimile No.: (212) 451-2222

		  	 Email: ksilverman@olshanlaw.com

		
	 To Seller:
	  	 Athenex, Inc.

		  	 Conventus Building

1001 Main Street, Suite 600

		  	 Buffalo, NY 14203

		  	 Attn: Legal Department

		  	 Email: legal-agreements@athenex.com

		
	 With a copy to:
	  	 Harter Secrest & Emery LLP

	 (which shall not constitute notice)
	  	 1600 Bausch & Lomb Place

		  	 Rochester, New York 14604-2711

		  	 Attn: Alexander R. McClean

		  	 Facsimile No.: (585) 232-2152

		  	 E-mail: amcclean@hselaw.com

 and in any case at such other address as the advisee shall have specified by written notice. Notice of change of address shall
be effective only upon receipt thereof. All such other notices and communications shall be deemed effective (a) if by personal delivery, upon receipt, (b) if by registered or certified mail, on the seventh Business Day after the date of
mailing thereof, (c) if by reputable overnight delivery or courier, on the first Business Day after the date of mailing or (d) if by electronic mail or facsimile transmission, immediately upon receipt of a transmission confirmation,
provided notice is sent on a Business Day between the hours of 9:00 a.m. and 5:00 p.m., recipient’s time, but if not then upon the following Business Day. 

12.9 Counterparts; Facsimile Signatures. This Agreement may be executed in any number of counterparts, each of which when executed and
delivered shall be an original, but all such counterparts shall constitute one and the same instrument. The exchange of executed copies of this Agreement by facsimile, portable document format (PDF) or other reasonable form of electronic
transmission shall constitute effective execution and delivery of this Agreement. 
 12.10 Governing Law. This Agreement shall be
governed by and construed in accordance with the internal laws of the State of Delaware, without regard to conflicts-of-laws principles that would require application of
any other law. 

  
 31 

 12.11 Jurisdiction. Each Party hereby (a) agrees that any Proceeding in
connection with or relating to this Agreement, any agreement contemplated hereby or any matters contemplated hereby or thereby, shall be brought in a court of competent jurisdiction located in New Castle County in the State of Delaware, whether a
state or federal court; (b) agrees that in connection with any such Proceeding, such Party shall consent and submit to personal jurisdiction in any such court described in clause (a) of this Section 12.11 and to service of process
upon it in accordance with the rules and statutes governing service of process; and (c) agrees to waive to the full extent permitted by Law any objection that it may now or hereafter have to the venue of any such Proceeding in any such court or
that any such Proceeding was brought in an inconvenient forum. None of the Parties shall, and each Party shall cause its Affiliates not to, file, initiate or bring, or participate in, any Proceeding in connection with or relating to this Agreement
or any matters contemplated hereby in or before any Governmental Authority other than that specified in clause (a) of this Section 12.11. 

12.12 Interpretation. The use of the masculine, feminine or neuter gender or the singular or plural form of words used herein
(including defined terms) shall not limit any provision of this Agreement. The terms “include,” “includes” and “including” are not intended to be limiting and shall be deemed to be followed by the words “without
limitation” (whether or not they are in fact followed by such words) or words of like import. The term “or” has the inclusive meaning represented by the phrase “and/or.” Reference to a particular Person includes such
Person’s successors and assigns to the extent such successors and assigns are permitted by the terms of any applicable agreement. Reference to a particular agreement (including this Agreement), document or instrument means such agreement,
document or instrument as amended or modified and in effect from time to time in accordance with the terms thereof. The terms “dollars” and “$” mean United States Dollars. Unless Business Days are specified, all references to
“days” hereunder shall mean calendar days. The Exhibits and Schedules identified in this Agreement are incorporated into this Agreement by reference and made a part hereof. The Article, Section, paragraph, Exhibit and Schedule headings
contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. References to Articles, Sections, paragraphs, clauses, Exhibits or Schedules shall refer to those portions
of this Agreement. The use of the terms “hereunder,” “hereof,” “hereto” and words of similar import shall refer to this Agreement as a whole and not to any particular Article, Section, paragraph or clause of, or Exhibit
or Schedule to, this Agreement. 
 [Signature page follows.] 

  
 32 

 IN WITNESS WHEREOF, the Parties have executed this Asset Purchase Agreement as of the day
and year first above written. 
  

			
	 SELLER:

	
	 ATHENEX, INC.

		
	 By:
	 	 /s/ Jeffrey Yordon

	 Name:
	 	 Jeffrey Yordon

	 Title:
	 	Chief Operating Officer and President - Athenex Pharmaceutical Division

 [Signature Page to Asset Purchase Agreement] 

 
			
	BUYER:
	
	IMMUNITYBIO, INC.
		
	By:	 	/s/ Richard Adcock
	Name:	 	Richard Adcock
	Title:	 	Chief Executive Officer and President

 [Signature Page to Asset Purchase Agreement] 

 SCHEDULES 

Schedules: 
  

					
	 Schedule 1.1
	  	—  	  	 Knowledge Parties

			
	 Schedule 2.1(a)
	  	—  	  	 Leased Manufacturing Equipment

	 Schedule 2.1(b)
	  	—  	  	 Owned Personal Property

	 Schedule 2.1(d)
	  	—  	  	 Assigned Contracts

	 Schedule 2.1(e)
	  	—  	  	 Seller’s Rights to Deposits and Prepayments

			
	 Schedule 5.2(c)
	  	—  	  	 Seller Required Consents

	 Schedule 5.3(a)
	  	—  	  	 Title to Owned Personal Property

	 Schedule 5.4(a)
	  	—  	  	 Leased Real Property; Leases

	 Schedule 5.4(b)
	  		  	 Events Affecting Costs

	 Schedule 5.4(e)
	  		  	 Contractors

	 Schedule 5.5
	  	—  	  	 Insurance

	 Schedule 5.6
	  	—  	  	 Facility Governmental Authorizations

	 Schedule 5.8(a)
	  	—  	  	 Environmental Matters

	 Schedule 5.8(b)
	  		  	 Environmental Reports

	 Schedule 5.9
	  	—  	  	 Litigation

	 Schedule 5.10
	  	—  	  	 Breaches or Defaults Under Assigned Contracts

	 Schedule 5.11(c)
	  	—  	  	 Facility Employee Proceedings

			
	 Schedule 5.14
	  	—  	  	 Benchmark Items

			
	 Schedule 7.2
	  		  	 Design-Builder and Architect

			
	 Schedule 8.5
	  	—  	  	 List of Material Consents

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