Document:

Sublease Agreement

 Exhibit 10.30 
 SUBLEASE AGREEMENT 
 This Sublease Agreement (“Sublease”) is made
effective as of the first day of March, 2012, (the “Effective Date”) by and between KALOBIOS PHARMACEUTICALS, INC., a Delaware corporation (“Sublandlord”), and COMPUGEN, INC.„ a Delaware corporation (“Subtenant”).
Sublandlord agrees to sublease to Subtenant, and Subtenant agrees to sublease from Sublandlord, those certain premises situated in the City and County of San Francisco, State of California, consisting of approximately 4,410 square feet of space on
the first floor in that certain building located at 260 East Grand Avenue, as more particularly set forth on Exhibit “A” hereto (the “Subleased Premises”). 
 ARTICLE 1 
 MASTER LEASE AND OTHER AGREEMENTS 

1.1 Subordinate to Master Lease. Except as specifically set forth herein, this Sublease is subject and subordinate to all of the
terms and conditions of that certain Lease dated as of January 19, 2011 (the “Master Lease”) between Britannia Pointe Grand Limited Partnership, a Delaware corporation (“Master Landlord”) and Sublandlord as
“Tenant”. Subtenant hereby assumes and agrees to perform the obligations of Tenant under the Master Lease to the extent incorporated herein. Unless otherwise defined, all capitalized terms used herein shall have the same meanings as given
them in the Master Lease. A copy of the Master Lease is attached hereto as Exhibit “B” and incorporated herein by this reference. Subtenant shall not commit or permit to be committed any act or omission which would violate any term or
condition of the Master Lease. Subtenant shall neither do nor permit anything to be done which would cause the Master Lease to be terminated or forfeited by reason of any right of termination or forfeiture reserved or vested in Master Landlord under
the Master Lease, [and Subtenant shall indemnify and hold Sublandlord harmless from and against all claims, liabilities, judgments, costs, demands, penalties, expenses, and damages of any kind whatsoever, including, without limitation,
attorneys’ fees, consultants’ fees and costs and court costs, (“Claims”) by reason of any failure on the part of Subtenant to perform any of the obligations of Lessee under the Master Lease which Subtenant has become obligated
hereunder to perform, and such indemnity and hold harmless shall survive the expiration or sooner termination of this Sublease, except to the extent any such Claims directly or indirectly arise out of or are attributable to the the gross negligence
or willful misconduct of Sublandlord or Master Landlord. In the event of the termination of the Master Lease for any reason, then this Sublease shall terminate automatically upon such termination without any liability owed to Subtenant by Master
..Landlord, or by Sublandlord unless the termination is due to Sublandlord’s breach of the Master Lease and not due to Subtenant’s breach of the Sublease. Subtenant represents and warrants to Sublandlord that it has read and is familiar
with the Master Lease. 
 1.2 Applicable Provisions. All of the terms and conditions contained in the Master Lease as
they may apply to the Subleased Premises are incorporated herein and shall be terms and conditions of this Sublease, except those directly contradicted by the terms and conditions contained in this document, and specifically except for the following
Paragraphs of the Master Lease which are not incorporated or are incorporated as modified herein: the Basic Lease 

 
Information and Definitions that have different terms or definitions from those set forth in this Sublease and Sections 1.1.1, 1.1.4, 1.2, 1.3, 2, 3, 4, 6.1, 7.1 as to Building Systems and
routine maintenance to the load bearing and exterior walls (which shall continue to be maintained by Sublandlord), 7.2, 15.4, 16, 21, 23, 28, 29.18, 29.21, 29.24, 29.27, Exhibits A and C. Each reference therein to “Landlord”,
“Tenant” and “Lease” to be deemed to refer to Sublandlord, Subtenant, and Sublease, respectively, as appropriate. However, the following provisions that are incorporated herein, the reference to Landlord shall mean Master
Landlord only or both Master Landlord and Sublandlord if stated as “(both)”: 5.3.1.1 (both), 5.3.1.2 (both), 5.3.1.3 (both), 5.3.1.5 (both), 5.3.2.1, 5.3.2.2, 7.4, 8 (both) and as modified by Section 7.2 herein, 10.2, 11, 13, 18, 19.5
(both), 26 (both), 27 (both), 29.13 (first sentence), 29.29, Exhibits D and E. All of the incorporated terms of the Master Lease as referenced and qualified above along with all of the following terms and conditions set forth in this document shall
constitute the complete terms and conditions of this Sublease. 
 1.3 Obligations of Sublandlord. Notwithstanding
anything herein contained, the only services or rights to which Subtenant is entitled hereunder are those to which Sublandlord is entitled under the Master Lease or which Sublandlord agrees to provide pursuant to the express terms of this Sublease.
The parties acknowledge that Subtenant has no privity of contract with Master Landlord and therefore Sublandlord shall use its reasonable good faith efforts to obtain the performance by Master Landlord of its obligations under the Master Lease
(including, without limitation all repair and maintenance obligations pursuant to Section 7.4 thereof). Subtenant shall reimburse Sublandlord for all reasonable costs incurred by Sublandlord in such efforts. Sublandlord shall have no liability
to Subtenant or any other person for damage of any nature whatsoever as a result of the failure of Master Landlord to perform said obligations except where such failure is the result of Sublandlord’s breach of the Master Lease. With respect to
any obligation of Subtenant to be performed under this Sublease, when the Master Lease grants Sublandlord a specific number of days to perform its obligations thereunder, Subtenant shall have two (2) fewer days to perform. With respect to
approval required to be obtained by “Landlord” under the Master Lease, such consent must be obtained from Master Landlord and Sublandlord and the approval of Sublandlord will be deemed withheld if Master Landlord’s consent is not
obtained. Sublandlord will duly notice Master Landlord of requests for consent by Subtenant, but retains the right to make its own independent determination of consent pursuant to the terms of this Sublease. 

ARTICLE 2 

TERM 

2.1 Term. The term of this Sublease shall commence on the date on which the Sublandlord obtains the consent of Master Landlord set
forth in Article 10 below and delivers exclusive possession of the Subleased Premises to Subtenant. This shall be referred to as the “Commencement Date.” The term of this Sublease shall end on June 30, 2014, unless sooner terminated
pursuant to any provision of the Master Lease applicable to the Subleased Premises (the “Expiration Date”). Sublandlord shall have no obligation to Subtenant to exercise any of its options to extend under the Master Lease. In the event the
Commencement Date has not occurred on or before March 1, 2012, Subtenant shall have the right to terminate this Sublease without penalty by delivery of written notice to Sublandlord, and Sublandlord will promptly return all monies paid to
Sublandlord by Subtenant on account of this Sublease. 

  
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 2.2 Option to Extend. Subtenant shall have no option to extend this Sublease.

 ARTICLE 3 
 RENT 
 3.1 Rent. Subtenant shall pay to Sublandlord each month
during the term of this Sublease, rent, in advance, on execution hereof for the first month and on or before the first of each month thereafter (“Base Rent”). Rent for partial months at the commencement or termination of this Sublease
shall be prorated. Rent shall be paid to the Sublandlord at its business address noted herein, or at any other place Sublandlord may from time to time designate by written notice mailed or delivered to Subtenant. Base Rent schedule is as follows:

  

									
	Months	  	Base Rent per month	 	  	Total	 
	 Effective date — 6/30/2012
	  	$	19,845.00	  	  	$	79,380.00	  
	 7/1/2012 — 6/30/2013
	  	$	19,845.00	  	  	$	238,140.00	  
	 7/1/2013 — 6/30/2014
	  	$	19,845.00	  	  	$	238,140.00	  

 All measurements noted in this Section are included in the Master Lease. Subtenant acknowledges all
square footage measurements noted and relied on in this Sublease and the Master Lease are estimates, and no adjustments shall be made based upon any actual measurements which may be made. 

3.2 Sublandlord Services. The parties agree that the monthly Base Rent is also inclusive of all services provided by Sublandlord
as set forth in Section 7.5. 
 ARTICLE 4 
 SECURITY DEPOSIT 
 4.1 Security Deposit. Upon execution hereof,
Subtenant shall deposit with Sublandlord the sum of thirty-nine thousand six-hundred ninety and 00/100 Dollars ($39,690.00) as and for a Security Deposit to secure Subtenant’s full and timely performance of all of its obligations hereunder,
representing first two months base rent. If Subtenant fails to pay Rent or any other sums as and when due hereunder, or otherwise defaults and/or fails to perform with respect to any provision of this Sublease, Sublandlord may (but shall not be
obligated to) use, apply, or retain all or any portion of the Security Deposit for payment of any sum for which Subtenant is obligated or which will compensate Sublandlord for any foreseeable or unforeseeable loss or damage which Sublandlord may
suffer thereby including, without limitation, any damage that will result in the future through the Sublease Term, to repair damage 

  
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to the Subleased Premises, to clean the Subleased Premises at the end of the Sublease Term or for any loss or damage caused by the act or omission of Subtenant or Subtenant’s officers,
agents, employees, independent contractors or invitees. Subtenant waives the provisions of California Civil Code Section 1950.7 and all other provisions of law now in force or that become in force after the date of execution of this Sublease
that provide that Sublandlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Subtenant or to clean the Subleased Premises. Any such use, application, or
retention shall not constitute a waiver by Sublandlord of its right to enforce its other remedies hereunder, at law, or in equity. If any portion of the Security Deposit is so used, applied, or retained, Subtenant shall, within ten (10) days
after delivery of written demand from Sublandlord, restore the Security Deposit to its original amount. Subtenant’s failure to do so shall constitute a material breach of this Sublease, and in such event Sublandlord may elect, among or in
addition to other remedies, to terminate this Sublease. Sublandlord shall not be a trustee of such deposit, and shall not be required to keep this deposit separate from its accounts. Sublandlord alone shall be entitled to any interest or earnings
thereon and Sublandlord shall have the free use of same. If Subtenant fully and faithfully performs all of its obligations hereunder, then so much of the Security Deposit as remains shall be returned to Subtenant (without payment of interest or
earnings thereon) within 30 days after the later of (i) expiration or sooner termination of the Sublease Term, or (ii) Subtenant’s surrender of possession of the Subleased Premises to Sublandlord. 

ARTICLE 5 

CONDITION OF SUBLEASED PREMISES 
 5.1 Condition of the Subleased Premises. Subtenant acknowledges that as of the Commencement Date, Subtenant shall have inspected the Subleased Premises, and every part thereof, and by taking
possession shall have acknowledged that the Subleased Premises is in good condition and without need of repair, and Subtenant accepts the Subleased Premises “as is”, Subtenant having made all investigations and tests it has deemed
necessary or desirable in order to establish to its own complete satisfaction the condition of the Subleased Premises. Subtenant accepts the Subleased Premises in their condition existing as of the Commencement Date, subject to all applicable
zoning, municipal, county and state laws, ordinances, and regulations governing and regulating the use of the Subleased Premises and any covenants or restrictions of record. Notwithstanding the foregoing, Sublandlord will ensure that all systems and
equipment (including the Building Systems) serving the Subleased Premises and the Building are in good working order as of the Commencement Date and that the Building is in compliance with applicable laws, codes and ordinances in effect as of such
date and that Sublandlord’s current use is in compliance with applicable zoning ordinances. Except as set forth above, Subtenant acknowledges that neither Sublandlord nor Master Landlord have made any representations or warranties as to the
condition of the Subleased Premises or its present or future suitability for Subtenant’s purposes. Sublandlord hereby grants to Subtenant, for the benefit of Subtenant and its employees, suppliers, shippers, contractors, customers and invitees,
during the term of this Sublease, the non-exclusive right to use, in common with others entitled to such use, the Common Areas as they exist from time to time, subject to any rights, powers, and privileges reserved by Sublandlord under the terms
hereof. 

  
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 5.2 Surrender. Subtenant shall keep the Subleased Premises, and every part thereof in
good order and repair. In addition to Subtenant’s requirements under the Master Lease, Subtenant shall surrender the Subleased Premises in the same condition as received, ordinary wear and tear excepted, provided Subtenant performs all
necessary maintenance, repair and cleaning to maintain the Subleased Premises in the condition it was delivered at the Commencement Date. 
 ARTICLE 6 
 INSURANCE 

6.1 Subtenant’s Insurance. With respect to the Tenant’s insurance under the Master Lease, the same is to be provided by
Subtenant as described in the Master Lease, and such policies of insurance shall include as additional insureds Master Landlord, Sublandlord and any lender as required by Master Landlord. 

6.2 Sublandlord’s Insurance. Sublandlord will carry, or for purposes of this Sublease will be treated as if it carried,
rental interruption insurance. 
 6.3 Waiver of Subrogation. With respect to the waiver of subrogation contained in
Section 10.5 of the Master Lease, such waiver shall be deemed to be modified to constitute an agreement by and among Master Landlord, Sublandlord and Subtenant (and Master Landlord’s consent to this Sublease shall be deemed to constitute
its approval of this modification). 
 ARTICLE 7 
 USE OF SUBLEASED PREMISES; PARKING; IMPROVEMENTS 
 7.1 Use of Subleased
Premises. Subtenant shall use the Subleased Premises only for those purposes permitted in the Master Lease. 
 7.2
Alterations; Improvements. Subtenant shall not make any alterations, improvements, or modifications to the Subleased Premises without the express prior written consent of Sublandlord and of Master Landlord, which consent by Sublandlord shall
not be unreasonably withheld. Subtenant shall reimburse Master Landlord and Sublandlord for all costs which Master Landlord and Sublandlord may incur in connection with granting approval to Subtenant for any alterations and additions, including,
without limitation, Master Landlord’s and Sublandlord’s reasonable attorneys’ fees and costs. Subtenant shall provide Master Landlord and Sublandlord with a set of “as-built” drawings for any such work, together with copies
of all permits obtained by Subtenant in connection with performing any such work, within fifteen (15) days after completing such work. Sublandlord may impose as a condition of its consent to such alterations, improvements, or modifications,
such requirements as Sublandlord may deem reasonable and desirable, including, but not limited to the requirement that Subtenant utilize for such purposes only contractor(s), materials, mechanics and materialmen approved by Sublandlord and that
Subtenant, and/or Subtenant’s contractor(s) post a payment and/or completion bond to guarantee the performance of its construction obligations hereunder. On termination of this Sublease, Subtenant shall remove any or all of such improvements
and restore 

  
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the Subleased Premises (or any part thereof) to the same condition as of the Commencement Date of this Sublease, reasonable wear and tear excepted or as otherwise instructed in writing by either
Sublandlord or Master Landlord. Should Subtenant fail to remove such improvements and restore the Subleased Premises on termination of this Sublease unless instructed otherwise in writing as set forth above, Sublandlord shall have the right to do
so, and charge Subtenant therefor, plus a service charge of ten percent (10%) of the costs incurred by Sublandlord. 
 7.3
Parking. So long as Subtenant is not in default and subject to the rules and regulations imposed from time to time by Master Landlord or Sublandlord, Subtenant shall have the right to the non-exclusive use of ten (10) parking spaces in
the common parking areas at no additional cost to Subtenant. 
 7.4 Covenant of Quiet Enjoyment. Sublandlord represents
that (i) the Master Lease is in full force and effect and (ii) there are no defaults, as defined in the Master Lease, on Sublandlord’s part under the Master Lease as of the Commencement Date and (iii) that Sublandlord has the
full right, power and authority to enter into this Sublease (subject to the consent of Master Landlord). Subject to this Sublease terminating in the event the Master Lease is terminated, if Subtenant performs all the provisions in this Sublease to
be performed by Subtenant prior to the expiration of all applicable notice and cure periods, Subtenant will have and enjoy throughout the term of this Sublease the quiet and undisturbed possession of the Subleased Premises. 

7.5 Services to be provided by Sublandlord. Sublandlord shall provide, at no additional cost to Subtenant, the following services:
(i) natural gas, electricity and water associated with chemistry laboratory use; (ii) garbage and janitorial services (non-biohazard) consistent with the service provided at the time of this Sublease; (iii) general building system
maintenance (lighting, HVAC, plumbing and electrical), performed by Sublandlord’s facility personnel within the Sublease Premises; (iv) use of the existing RO/DI water system (at standard lab DI water quality); (v) storage of
Hazardous Materials (as defined in the Master Lease) used or generated by Subtenant in the Subleased Premises (“Subtenant Haz Mat”); provided, however, that Subtenant shall contract directly with (and be solely responsible for payment to)
Sublandlord’s provider for pick-up and disposal of such Subtenant Haz Mat; and further provided that Sublandlord shall not be deemed an owner, operator, generator or transporter of such Subtenant Haz Mat and Subtenant shall indemnify
Sublandlord for any claims, liabilities, judgments, costs, demands, penalties, expenses, and damages of any kind whatsoever, including, without limitation, attorneys’ fees, consultants’ fees and costs and court costs, relating to any claim
that Sublandlord is the owner, operator, generator, or transporter of such Subtenant Haz Mat (such indemnity shall survive the expiration or earlier termination of this Sublease); (vi) shipping, receiving, and handling and incoming materials
management; (vii) use of the existing security card system. Any other services provided to Subtenant not expressly provided above, shall be at the sole cost and expense of Subtenant. 

  
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 ARTICLE 8 
 ASSIGNMENT, SUBLETTING & ENCUMBRANCE 
 8.1 Consent
Required. Subtenant shall not assign this Sublease or any interest therein nor shall Subtenant sublet, license, encumber or permit the Subleased Premises or any part thereof to be used or occupied by others, without Sublandlord’s and Master
Landlord’s prior written consent. Sublandlord’s consent shall not be unreasonably withheld provided, however, Sublandlord’s withholding of consent shall in all events be deemed reasonable if for any reason Master Landlord’s
consent is not obtained. The consent by Sublandlord and Master Landlord to any assignment or subletting shall not waive the need for Subtenant (and Subtenant’s assignee or subtenant) to obtain the consent of Sublandlord and Master Landlord to
any different or further assignment or subletting. All conditions and standards set forth in the Master Lease regarding assignments and subletting shall apply, and to the extent there are any Bonus Rents, (Rent paid by such Assignee or SubSubtenant
in excess of Rent paid by Subtenant hereunder) subtenant shall provide the Master Landlord with the amounts it is entitled to under the Master Lease. 
 8.2 Form of Document. Every assignment, agreement, or sublease shall (i) recite that it is and shall be subject and subordinate to the provisions of this Sublease, that the assignee or
subtenant assumes Subtenant’s obligation hereunder, that the termination of this Sublease shall at Sublandlord’s sole election, constitute a termination of every such assignment or sublease, and (ii) contain such other terms and
conditions customary for a sub-sublease of this type as shall be reasonably requested or provided by Sublandlord’s attorneys. 
 8.3 No Release of Subtenant. Regardless of Sublandlord’s consent, no subletting or assignment shall release Subtenant of Subtenant’s obligation or alter the primary liability of Subtenant
to pay the Rent and to perform all other obligations to be performed by Subtenant hereunder except to the extent that Sublandlord and Master Landlord consent to such release in writing. The acceptance of Rent by Sublandlord from any other person
shall not be deemed to be a waiver by Sublandlord of any provision hereof. In the event of default by any assignee, subtenant or any other successor of Subtenant, in the performance of any of the terms hereof, Sublandlord may proceed directly
against Subtenant without the necessity of exhausting remedies against such assignee, subtenant or successor. 
 8.4
Default. An involuntary assignment shall constitute a default and Sublandlord shall have the right to elect to terminate this Sublease, in which case this Sublease shall not be treated as an asset of Subtenant. 

ARTICLE 9 

DEFAULT 

9.1 Default Described. The occurrence of any of the following shall constitute a material breach of this Sublease and a default by
Subtenant: (i) failure to pay Rent or any other amount within three (3) days after notice the same is past due; (ii) all those items of default set forth in the Master Lease where the obligation is incorporated in this Sublease which
remain uncured after the cure period provided in the Master Lease; or (iii) Subtenant’s failure to perform timely and remain uncured after fifteen (15) days written notice of the default, any other material provision of this Sublease.

  
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 9.2 Sublandlord’s Remedies. Sublandlord shall have the remedies set forth in the
Master Lease as if Sublandlord is Master Landlord in the event of a default by Subtenant of any obligation of Sublandlord assumed by Subtenant under this Sublease that constitutes a default under Section 19 of the Master Lease. These remedies
are not exclusive; they are cumulative and in addition to any remedies now or later allowed by law. 
 9.3 Subtenant’s
Right to Possession Not Terminated. Sublandlord has the remedy described in California Civil Code Section 1951.4 (lessor may continue lease in effect after. lessee’s breach and abandonment and recover rent as it becomes due, if lessee
has right to sublet or assign, subject only to reasonable limitations). Sublandlord may continue this Sublease in full force and effect, and Sublandlord shall have the right to collect rent and other sums when due. During the period Subtenant is in
default, Sublandlord may enter the Subleased Premises and relet them, or any part of them, to third parties for Subtenant’s account and alter or install locks and other security devices at the Subleased Premises. Subtenant shall be liable
immediately to Sublandlord for all costs Sublandlord incurs in reletting the Subleased Premises, including, without limitation, attorneys’ fees, brokers’ commissions, expenses of remodeling the Subleased Premises required by the reletting,
and like costs. Reletting may be for a period equal to, shorter or longer than the remaining term of this Sublease and rent received by Sublandlord shall be applied to (i) first, any indebtedness from Subtenant to Sublandlord other than rent
due from Subtenant; (ii) second, all costs incurred by Sublandlord in reletting, including, without limitation, brokers’ fees or commissions and attorneys fees, the cost of removing and storing the property of Subtenant or any other
occupant, and the costs of repairing, altering, maintaining, remodeling or otherwise putting the Subleased Premises into condition acceptable to a new Subtenant or Subtenants; (iii) third, rent due and unpaid under this Sublease. After
deducting the payments referred to in this subsection 9.3, any sum remaining from the rent Sublandlord receives from reletting shall be held by Sublandlord and applied in payment of future rent and other amounts as rent and such amounts become due
under this Sublease. In no event shall Subtenant be entitled to any excess rent received by Sublandlord. 
 9.4 All Sums Due
and Payable as Rent. Subtenant shall also pay without notice, or where notice is required under this Sublease, immediately upon demand without any abatement, deduction, or setoff, as additional rent all sums, impositions, costs, expenses, and
other payments which Subtenant in any of the provisions of this Sublease assumes or agrees to pay, and, in case of any nonpayment thereof, Sublandlord shall have all the rights and remedies provided for in this Sublease or by law in the case of
nonpayment of rent. 
 9.5 No Waiver. Sublandlord may accept Subtenant’s payments without waiving any rights under
the Sublease, including rights under a previously served notice of default. No payment by Subtenant or receipt by Sublandlord of a lesser amount than any installment of rent due or other sums shall be deemed as other than a payment on account of the
amount due, nor shall any endorsement or statement on any check or accompanying any check or payment be deemed an accord and satisfaction; and Sublandlord may accept such check or payment without prejudice of Sublandlord’s right to recover the
balance of such Rent or other sum or pursue any other remedy provided in this Sublease, at law or in equity. If Sublandlord accepts payments 

  
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after serving a notice of default, Sublandlord may nevertheless commence and pursue an action to enforce rights and remedies under the previously served notice of default without giving Subtenant
any further notice or demand. Furthermore, Sublandlord’s acceptance of Rent from Subtenant when the Subtenant is holding over without express written consent does not convert Subtenant’s tenancy from a tenancy at sufferance to a
month-to-month tenancy. No waiver of any provision of this Sublease shall be implied by any failure of Sublandlord to enforce any remedy for the violation of that provision, even if that violation continues or is repeated. Any waiver by Sublandlord
or Subtenant of any provision of this Sublease must be in writing. Such waiver shall affect only the provisions specified and only for the time and in the manner stated in the writing. No delay or omission in the exercise of any right or remedy by
Sublandlord or Subtenant shall impair such right or remedy or be construed as a waiver thereof. No act or conduct of Sublandlord, including, without limitation the acceptance of keys to the Subleased Premises shall constitute acceptance or the
surrender of the Subleased Premises by Subtenant before the Expiration Date. Only written notice from Sublandlord to Subtenant of acceptance shall constitute such acceptance or surrender of the Subleased Premises. Sublandlord’s consent to or
approval of any act by Subtenant which requires Sublandlord’s consent or approval shall not be deemed to waive or render unnecessary Sublandlord’s consent to or approval of any subsequent act by Subtenant. 

9.6 Sublandlord Default. For purposes of this Sublease, Sublandlord shall not be deemed in default hereunder unless and until
Subtenant shall first deliver to Sublandlord thirty (30) days’ prior written notice, and Sublandlord shall fail to cure said default within said thirty (30) day period, or in the event Sublandlord shall reasonably require in excess of
thirty (30) days to cure said default, shall fail to commence said cure with said thirty (30) day period, and thereafter diligently prosecute the same to completion. If Sublandlord (a) does not commence performance within such thirty
(30) calendar day period, or (b) fails to diligently commence and pursue such performance to completion, and the effect of such failure associated with such non-performance materially interferes with Subtenant’s use of the Subleased
Premises, Subtenant may perform Sublandlord’s obligation, at Sublandlord’s expense (if the cost of such performance obligations are included in Base Rent), and Sublandlord shall reimburse Subtenant within thirty (30) days of
Subtenant’s delivery to Sublandlord of written proof that such performance costs have been paid by Subtenant. 
 9.7
Notice of Event of Default under Master Lease. Sublandlord shall notify Subtenant of any Event of Default under the Master Lease, or of any other event of which Sublandlord has actual knowledge which will impair Subtenant’s ability to
conduct its normal business at the Subleased Premises, as soon as reasonably practicable following Sublandlord’s receipt of notice from Master Landlord of an Event of Default or Sublandlord’s actual knowledge of such impairment.

 9.8 No Default of Master Lease. Sublandlord will not voluntarily do, or fail to do, anything which will constitute a
default under the Master Lease or permit the Master Lease to be terminated for any reason. Sublandlord hereby agrees to defend, indemnify and hold harmless Subtenant from and against any and all claims, actions, liabilities, losses, damages, costs
and expenses (including, without limitation, reasonable attorneys’ fees and disbursements) arising from Sublandlord’s breach of any provisions of this Sublease, including, without limitation, the provisions of this Section 9.8. The
foregoing indemnity shall survive the expiration or earlier termination of this Sublease. 

  
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 ARTICLE 10 
 CONSENT OF MASTER LANDLORD 
 10.1 Precondition. The Master Lease
requires that Sublandlord obtain the consent of Master Landlord to any subletting by Sublandlord. This Sublease shall not be effective unless and until Master Landlord signs a consent to this subletting satisfactory to Sublandlord. Subtenant will
sign such consent if required by Master Landlord as reasonably presented by Master Landlord. 
 ARTICLE 11 

HAZARDOUS MATERIALS 
 11.1 Hazardous Materials. 
 11.1.1 Environmental Questionnaire.
Prior to occupying Subleased Premises, Subtenant shall provide to Sublandlord a fully and accurately completed Pre-leasing Environmental Exposure Questionnaire (“Environmental Questionnaire”; Exhibit E to the Master Lease), which
Sublandlord will deliver to Landlord in accordance with the terms and conditions of Section 5.3.1.1 of the Master Lease. Upon Sublandlord’s request or in the event of any material change in the use of Hazardous Materials at the Subleased
Premises, Subtenant shall deliver to Sublandlord an updated Environmental Questionnaire at least once per year. Subtenant shall comply with all other terms, conditions, obligations, representations and warranties of Subtenant to Landlord and
Sublandlord (as applicable) under Section 5.3.1 of the Master Lease, as incorporated by Section 1.2 herein. 
 11.1.2
Subtenant Indemnity. Subtenant shall be solely responsible for and shall defend, indemnify and hold Sublandlord and its partners, officers, directors, employees and agents harmless from and against all Claims arising out of or caused in whole
or in part, directly or indirectly, by or in connection with Subtenant’s storage, use, disposal or discharge of Hazardous Materials at the Subleased Premises, whether in violation of this section or not, or Subtenant’s failure to comply
with any applicable laws governing the storage, use disposal or discharge of Hazardous Materials. Subtenant shall further be solely responsible for and shall defend, indemnify and hold Sublandlord harmless from and against any and all Claims arising
out of or in connection with the removal, cleanup, detoxification, decontamination and restoration work and materials necessary to return the Subleased Premises to their condition existing prior to Subtenant’s storage, use or disposal of the
Hazardous Materials on the Subleased Premises. For the purposes of this indemnity provision, any acts or omissions of Subtenant or by employees, agents, assignees, contractors or subcontractors of Subtenant (whether or not they are negligent,
intentional or unlawful) shall be strictly attributable to Subtenant. Subtenant’s obligations under this section shall survive the termination of this Sublease. Notwithstanding the foregoing, nothing in this Sublease will be construed or is
intended to impose any liability, obligation or responsibility on Subtenant for any Hazardous Materials existing in the Subleased Premises prior to the Commencement Date or which was brought onto the Building by Sublandlord, Master Landlord, or any
third party. 

  
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 11.1.3 Sublandlord Indemnity. Sublandlord shall be solely responsible for and shall
defend, indemnify and hold Subtenant and its partners, officers, directors, employees and agents harmless from and against all Claims arising out of or caused in whole or in part, directly or indirectly, by or in connection with Sublandlord’s
storage, use, disposal or discharge of Hazardous Materials at the Premises, whether in violation of this section or not, or Sublandlord’s failure to comply with any applicable laws governing the storage, use disposal or discharge of Hazardous
Materials. Sublandlord shall further be solely responsible for and shall defend, indemnify and hold Subtenant harmless from and against any and all Claims arising out of or in connection with the removal, cleanup, detoxification, decontamination and
restoration work and materials necessitated by Sublandlord’s use of Hazardous Materials. For the purposes of this indemnity provision, any acts or omissions of Sublandlord or by employees, agents, assignees, contractors or subcontractors of
Sublandlord (whether or not they are negligent, intentional or unlawful) shall be strictly attributable to Sublandlord. Sublandlord’s obligations under this section shall survive the termination of this Sublease. 

ARTICLE 12 

MISCELLANEOUS 
 12.1 Conflict with Master Lease Interpretation. In the event of any conflict between the provisions of the Master Lease and this Sublease, the Master Lease shall govern and control except to the
extent directly contradicted by the terms of this Sublease. No presumption shall apply in the interpretation or construction of this Sublease as a result of Sublandlord having drafted the whole or any part hereof. 

12.2 Remedies Cumulative. The rights, privileges, elections, and remedies of Sublandlord in this Sublease, at law, and in equity
are cumulative and not alternative. 
 12.3 Waiver of Redemption. Subtenant hereby expressly waives any and all rights of
redemption to which it may be entitled by or under any present or future laws in the event Sublandlord shall obtain a judgment for possession of the Subleased Premises. 
 12.4 Damage and Destruction; Condemnation. In the event of any damage, destruction, casualty, condemnation or threat of condemnation affecting the Subleased Premises, Rent payable hereunder shall
be abated but only to the extent that Rent is abated under the Master Lease with respect to the Subleased Premises. Subtenant shall have no right to terminate this Sublease in connection with any damage, destruction, casualty, condemnation or threat
of condemnation except to the extent the Master Lease is also terminated as to the Premises or any portion thereof 
 12.5
Holding Over. Subtenant shall have no right to Holdover. If Subtenant does not surrender and vacate the Subleased Premises at the Expiration Date of this Sublease, Subtenant shall be a tenant at sufferance, or at the sole election of
Sublandlord, a month to month tenancy, and the parties agree in either case that the reasonable rental value, if at sufferance, or the Rent if 

  
 11 

 
a month to month tenancy shall be the monthly rate of one hundred and fifty percent (150%) of the monthly Rent set forth in Article 3, and if the definition of Rent in either case does not
include additional rent, then with any additional rent due and payable during such holdover period of time. In connection with this Paragraph 12.5, Sublandlord and Subtenant agree that the reasonable rental value of the Subleased Premises following
the Expiration Date of the Sublease shall be the amounts set forth above per month. Sublandlord and Subtenant acknowledge and agree that, under the circumstances existing as of the Effective Date, it is impracticable and/or extremely difficult to
ascertain the reasonable rental value of the Subleased Premises on the Expiration Date and that the reasonable rental value established herein is a reasonable estimate of the damage that Sublandlord would suffer as the result of the failure of
Subtenant to timely surrender possession of the Subleased Premises. The parties acknowledge that the liquidated damages established herein is not intended as a forfeiture or penalty within the meaning of California Civil Code sections 3275 or 3369,
but is intended to constitute liquidated damages to Sublandlord pursuant to California Civil Code sections 1671, 1676, and 1677. Notwithstanding the foregoing, and in addition to all other rights and remedies on the part of Sublandlord if Subtenant
fails to surrender the Subleased Premises upon the termination or expiration of this Sublease, in addition to any other liabilities to Sublandlord accruing therefrom, Subtenant shall indemnify, defend and hold Sublandlord harmless from all Claims
resulting from such failure, including, without limitation, any Claims by any third parties based on such failure to surrender. Furthermore, in the event that Subtenant fails to surrender the Premises after such time that (a) the Master Lease
has expired and (b) Sublandlord has surrendered its premises under the Master Lease, then the rate for month to month tenancy at sufferance shall be one hundred and fifty percent of any and all Rent due to Master Landlord from Sublandlord under
the holdover provisions of the Master Lease. 
 12.6 Furniture. Subtenant may use certain furniture and fixtures located
in the Subleased Premises as set forth on Exhibit C (“Furniture”). Subtenant accepts the Furniture in its “as is” condition and Sublandlord makes no warranty as to the condition of the Furniture or its present or future
suitability for Subtenant’s purposes. Upon termination of this Sublease, Subtenant shall return the Furniture to Sublandlord in the same condition as received, ordinary wear and tear excepted conditioned on the obligation of Subtenant to use
the Furniture in a careful and proper manner and to clean and repair the Furniture in the manner necessary to maintain the Furniture in the condition it was initially provided to Subtenant, ordinary wear and tear excepted. Subtenant shall be liable
for any damage to the Furniture and solely responsible for all costs associated with the maintenance, cleaning and repair of the Furniture, ordinary wear and tear excepted. 
 12.7 Signage. Subtenant shall not place any other signs on or about the Subleased Premises without Sublandlord’s and Master Landlord’s prior written consent. All signs shall be at
Subtenant’s sole cost and shall comply with the terms of the Master Lease and with all local, federal and state rules, regulations, statutes, and ordinances at all times during the Sublease Term. Subtenant acknowledges and agrees that its
request for consent to signage shall be limited to signage at the Subleased Premises. Subtenant, at Subtenant’s cost, shall remove all such signs and graphics prior to the termination of this Sublease and repair any damage caused by such
removal. 

  
 12 

 12.8 Offer. Preparation of this Sublease by either Sublandlord or Subtenant or either
parties’ agent and submission of same to Sublandlord or Subtenant shall not be deemed an offer to Sublease. This Sublease is not intended to be binding until executed and delivered by all Parties hereto. 

12.9 Due Authority. If Subtenant signs as a corporation, Subtenant represents and warrants that the person(s) signing below have
the authority to bind Subtenant, Subtenant has been and is qualified to do business in the State of California, and the corporation has full right and authority to enter into this Sublease. If Subtenant signs as a partnership, trust or other legal
entity, each of the persons executing this Sublease on behalf of Subtenant represent and warrant that they have the authority to bind Subtenant, Subtenant has complied with all applicable laws, rules and governmental regulations relative to its
right to do business in the State of California and such entity has full right and authority to enter into this Sublease. Subtenant agrees to furnish promptly upon request a corporate resolution, proof of clue authorization by partners, or other
appropriate documentation evidencing the authorization of Subtenant to enter into this Sublease. 
 12.10 Multiple
Counterparts. This Sublease may be executed in two or more counterparts, which when taken together shall constitute one and the same instrument. The parties contemplate that they may be executing counterparts of this Sublease transmitted by
facsimile and agree and intend that a signature by facsimile machine shall bind the party so signing with the same effect as though the signature were an original signature. 
 12.11 Building Contaminants. To prevent the contamination, growth, or deposit of any mold, mildew, bacillus, virus, pollen, or other micro-organism (collectively, “Biologicals”) and the
deposit, release or circulation of any indoor contaminants including emissions from paint, carpet and drapery treatments, cleaning, maintenance and construction materials and supplies, pesticides, pressed wood products, insulation, and other
materials and products (collectively with Biologicals, “Contaminants”) that could adversely affect the health, safety or welfare of any tenant, employee, or other occupant of the Building or their invitees (each, an “Occupant”),
Sublandlord and Subtenant shall, at their sole cost and expense, at all times during the term hereof (1) operate the Premises and Subleased Premises (respectively) in such a manner to reasonably prevent or minimize the accumulation of stagnant
water and moisture in planters, kitchen appliances and vessels, carpeting, insulation, water coolers, and any other locations where stagnant water or moisture could accumulate, and (2) otherwise operate the Premises and Subleased Premises (as
applicable) to prevent the generation, growth, deposit, release or circulation of any Contaminants. 
 12.12 Effect of
Conveyance. As used in this Sublease, the term “Sublandlord” means the holder of the Tenant’s/Lessee’s interest under the Master Lease. In the event of any assignment or transfer of the Tenant’s/Lessee’s interest
under the Master Lease, which assignment or transfer may occur at any time during the Term hereof in Sublandlord’s sole discretion, Sublandlord shall be and hereby is entirely relieved of the future performance of all covenants and obligations
of Sublandlord hereunder if such future performance is assumed by the transferee in a writing and a copy thereof is delivered to Subtenant. Sublandlord may transfer and deliver any security of Subtenant to the transferee of the
Tenant’s/Lessee’s interest under the Master Lease, and thereupon Sublandlord shall be discharged from any further liability with respect thereto if such transferee assumes in writing Sublandlord’s obligations with regard to such
security in a writing delivered to Subtenant. 

  
 13 

 ARTICLE 13 
 BROKER’S COMMISSIONS 
 13.1 Commission. Sublandlord and
Subtenant represent and warrant to each other that each has not dealt with any broker and with no other agent, finder, or other such person with respect to this Sublease. 
 ARTICLE 14 
 NOTICES AND PAYMENTS 

14.1 Certified Mail. Any notice, demand, request, consent, approval, submittal or communication that either party desires or is
required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class certified mail or commercial overnight delivery service. Such Notice shall be effective on the date of actual
receipt (in the case of personal service or commercial overnight delivery service) or two days after deposit in the United States mail, to the following addresses: 
  

			
	To the Sublandlord:	  	260 East Grand Ave.
		  	South San Francisco, CA 94080
		  	Attention: Jeanne Jew
		
	with a copy to:	  	Hopkins & Carley, ALC
		  	70 South First Street
		  	San Jose, CA 95113
		  	Attention: Garth E. Pickett, Esq.
		
	To the Subtenant:	  	At the Subleased Premises, whether or not Subtenant has abandoned or vacated the Subleased Premises or notified the Sublandlord of any other address
		
	With a copy to:	  	Compugen Ltd.
		  	Pinellas Rosen 72, Tel Aviv 69512
		  	Tel: 972-765-8546
		  	Fax: 972-3-765-8555
		  	Attn: Dikla Czaczkes Axselbrad
		  	with a copy to General Counsel

 14.2 When this Sublease requires service of a notice, that notice shall replace rather than supplement
any equivalent or similar statutory notice, including any notices required by Code of Civil Procedure Section 1161 or any similar or successor statute. When a statute requires service of a notice in a particular manner, service of that notice
(or a similar notice required by this Sublease) shall replace and satisfy the statutory service-of-notice procedures, including those required by Code of Civil Procedure Section 1162 or any similar or successor statute 

  
 14 

 ARTICLE 15 
 ATTORNEYS’ FEES AND COSTS 
 15.1 Sublandlord Made Party to
Litigation. If Sublandlord becomes a party to any litigation brought by someone other than Subtenant and concerning this Sublease, the Subleased Premises, or Subtenant’s use and occupancy of the Subleased Premises to the extent, based upon
any real or alleged act or omission of Subtenant or its authorized representatives, Subtenant shall be liable to Sublandlord for reasonable attorneys’ fees and court costs incurred by Sublandlord in the litigation. 

15.2 Certain Litigation Between the Parties. In the event any action or proceeding at law or in equity or any arbitration
proceeding be instituted by either party, for an alleged breach of this Sublease, to recover rent, to terminate the tenancy of Subtenant at the Subleased Premises, or to enforce, protect, or establish any right or remedy of a party to this Sublease
Agreement, the prevailing party (by judgment or settlement (it being understood that for the purpose of any settlement, the prevailing party shall be the party receiving substantially the relief requested) in such action or proceeding shall be
entitled to recover as part of such action or proceeding such reasonable attorneys’ fees, expert witness fees, and court costs as may be fixed by the court or jury. The Prevailing Party, for the purpose of any settlement, dismissal or summary
judgment, shall be the party receiving substantially the relief requested 
 15.3 Sublandlord’s Costs. In any case
where Subtenant requests permission from Sublandlord to assign, sublet, make alterations, or receive any other consent or obtain any waiver from or modification to the terms of this Sublease, Subtenant shall pay to Sublandlord Sublandlord’s
reasonable attorney’s fees incurred by Sublandlord in reviewing such request. 
 ARTICLE 16 

EXHIBITS 

16.1 Exhibits and Attachments. All exhibits and attachments to this Sublease are a part hereof. 

  
 15 

 IN WITNESS WHEREOF, Sublandlord and Subtenant have executed and delivered this Sublease on
the date first set forth above. 
  

									
	SUBLANDLORD	 		 	SUBTENANT
			
	KALOBIOS PHARMACEUTICALS, INC.,	 	 	 	COMPUGEN, INC.,
	a Delaware corporation	 		 	a Delaware corporation
			
	 /s/ David W. Pritchard
	 		 	 /s/ Anat Cohen-Dayag

	By:	 	David W. Pritchard	 		 	By:	 	Anat Cohen-Dayag
	Its:	 	Chief Executive Officer	 		 	Its:	 	President & CEO

  
 16Securities Purchase Agreement, dated as of July 17, 2012

 Exhibit 10.1 
 EXECUTION VERSION 
 SECURITIES PURCHASE AGREEMENT 

THIS SECURITIES PURCHASE AGREEMENT (this “Agreement”) dated as of July 17, 2012 (“Effective Date”)
is between Infinity Pharmaceuticals, Inc., a Delaware corporation (the “Company”), Purdue Pharma L.P. (the “Purchaser”) and, solely with respect to Sections 4 through 10 herein, Beacon Company
(“Beacon”) and Rosebay Medical Company L.P. (“Rosebay” and, together with the Purchaser and Beacon, the “BRP Entities”). 
 BACKGROUND 
 WHEREAS, the Company desires to issue and sell, and the
Purchaser desires to purchase, shares of the Company’s common stock, $0.001 par value per share (the “Common Stock”) pursuant to the terms and conditions set forth herein. 

WHEREAS, capitalized terms not defined above or elsewhere in this Agreement have the respective meanings assigned to such terms in
Section 9. 
 NOW, THEREFORE, in consideration of the mutual promises hereinafter set forth and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
 1.
Issuance of New Shares; Closing; Obligations on Effective Date. The Company agrees to issue and sell to the Purchaser, and the Purchaser agrees to purchase from the Company, at an aggregate purchase price of $78,540,191.21 (the “Purchase
Price”), 5,416,565 shares of Common Stock (the “New Shares”). The closing of the sale (the “Closing”) shall take place at 10:00 a.m., Boston time, at the offices of Wilmer Cutler Pickering Hale and Dorr LLP, 60
State Street, Boston, Massachusetts (or remotely via the exchange of signatures and documents) on the third Business Day following the first date on which each of the conditions precedent to Closing set forth in Section 7 have been satisfied or
waived or at such other, place, time and date as the Company and the Purchaser shall agree (the “Closing Date”). On the Effective Date, 
 (i) the Company shall deliver to the Purchaser the Disclosure Schedule; 
 (ii) the Company and Mundipharma International Corporation Limited shall execute and deliver the MICL Termination Agreement; and 

(iii) the Company and Purdue shall execute and deliver the Purdue Termination Agreement. 

2. Representations and Warranties of the Company. Except as disclosed by the Company in a written Disclosure Schedule provided by
the Company to the Purchaser (the “Disclosure Schedule”), which Disclosure Schedules shall be deemed a part hereof, the Company hereby represents and warrants to the Purchaser that the statements contained in this Section 2 are
complete and accurate as of the date of this Agreement (or such other date as is specified below). The Disclosure Schedule shall be arranged in sections corresponding to the numbered and lettered sections and subsections contained in this
Section 2, and the disclosures in 

 
any section or subsection of the Disclosure Schedule shall qualify other sections and subsections in this Section 2 to the extent it is reasonably clear from a reading of the disclosure that
such disclosure is applicable to such other sections and subsections. 
 (a) Corporate Organization; Subsidiary. The
Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. The Subsidiary is duly organized, validly existing and in good standing under the laws of the State of Delaware. Each of the
Company and the Subsidiary is duly qualified and is in good standing as a foreign corporation in each jurisdiction in which the properties owned, leased or operated, or the business conducted, by it require such qualification except for any such
failure so to qualify or be in good standing which, individually or in the aggregate, would not have a Material Adverse Effect on the Company and the Subsidiary, taken as a whole. The Subsidiary has the requisite power and authority to carry on its
business as it is now being conducted. The Company has heretofore made available to Purchaser complete and correct copies of the Certificate of Incorporation of the Company (the “Company Charter”) and the Bylaws of the Company (the
“Company Bylaws”) and the certificate of incorporation and bylaws of the Subsidiary, each as amended to date and currently in full force and effect. 
 (b) Corporate Authority. The Company has the requisite corporate power and authority to execute, deliver and perform this Agreement and to consummate the transactions contemplated hereby. The
execution, delivery and performance of this Agreement by the Company, the issuance and sale by the Company of the New Shares and the performance by the Company of the other transactions contemplated hereby have been duly authorized by the
Company’s Board of Directors, and no other corporate proceedings on the part of the Company are necessary to authorize this Agreement or for the Company to consummate the transactions so contemplated herein. This Agreement is a valid and
binding agreement of the Company, enforceable against the Company in accordance with its terms, subject as to enforcement of remedies to applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting generally the
enforcement of creditors’ rights and subject to a court’s discretionary authority with respect to the granting of a decree ordering specific performance or other equitable remedies. 

(c) No Violations; Consents and Approvals. 

(i) Neither the execution, delivery or performance by the Company of this Agreement nor the consummation by the Company of
the transactions contemplated hereby (A) require approval by the stockholders of the Company, (B) will result in a violation or breach of the Company Charter or the Company Bylaws or the charter or bylaws of the Company’s Subsidiary
or (C) will result in a violation or breach of (or give rise to any right of termination, revocation, cancellation or acceleration under or increased payments under), or constitute a default (with or without due notice or lapse of time or both)
under, or result in the creation of any lien, mortgage, charge, encumbrance or security interest of any kind (a “Lien”) upon any of the properties or assets of the Company or its Subsidiary under any of the terms, conditions or
provisions of any note, bond, mortgage, indenture, contract, agreement, obligation, instrument, offer, commitment, understanding or other arrangement to which the Company or its Subsidiary is a party (each a “Contract”), except, in
the case of clause (C), for violations, breaches, 

  
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defaults, rights of termination, revocations, cancellations or accelerations or Liens that would not, individually or in the aggregate, have a Material Adverse Effect on the Company and its
Subsidiary, taken as a whole. 
 (ii) Except for filings or consents as may be required under, and other
applicable requirements of, (A) the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), (B) applicable securities laws and (C) Nasdaq Marketplace Rule 5250(e)(2), no consent, approval,
order or authorization of, or registration, declaration or filing with, any government or any court, administrative agency or commission or other governmental authority or agency, federal, state, local or foreign (a “Governmental
Entity”), is required with respect to the Company in connection with the execution, delivery or performance by the Company of this Agreement or the consummation by the Company of the transactions contemplated hereby (except where the
failure to obtain such consents, approvals, orders or authorizations, or to make such filings would not, individually or in the aggregate, have a Material Adverse Effect on the Company and its Subsidiary, taken as a whole). 

(d) Capital Stock. The authorized capital stock of the Company consists of (i) 100,000,000 shares of Common Stock, of which
an aggregate of 27,269,697 shares of Common Stock were issued and outstanding as of the close of business on June 30, 2012, and (ii) 1,000,000 shares of preferred stock, $.001 par value per share, of which none were issued and outstanding
as of the close of business on June 30, 2012 2012. All of the outstanding shares of Common Stock have been duly authorized and validly issued, and are fully paid and nonassessable. As of June 30, 2012, the Company had outstanding
(i) stock options to purchase 7,662,752 shares of Common Stock and 3,606,046 shares of Common Stock are reserved for future issuance pursuant to the Company’s stock incentive plans and (ii) 3,170,086 warrants that are exercisable for
shares of Common Stock. There are no preemptive or similar rights on the part of any holders of any class of securities of the Company and, except as set forth in this paragraph (d), no securities convertible into or exchangeable for, or options,
warrants, calls, subscriptions, rights, contracts, commitments, arrangements or understandings of any kind to which the Company is a party or by which it is bound obligating the Company to issue, deliver or sell, or cause to be issued, delivered or
sold, additional shares of capital stock or other voting securities of the Company. 
 (e) Subsidiary. All of the
outstanding shares of capital stock of the Subsidiary are owned by the Company free and clear of all Liens. 
 (f) SEC
Filings; Financial Statements. The Company has timely filed all reports, schedules, forms, statements and other documents required to be filed by it with the SEC under the Securities Act and the Exchange Act since January 1, 2011 (the
“Company SEC Documents”). As of its filing date, each Company SEC Document, as amended or supplemented, if applicable, (i) complied in all material respects with the applicable requirements of the Securities Act or the Exchange
Act, as applicable, and the rules and regulations thereunder and (ii) did not, at the time it was filed, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading. The financial statements of the Company included in the Company SEC Documents comply in all material respects with

  
 - 3 -

 
applicable accounting requirements and the rules and regulations of the SEC with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance
with GAAP applied on a consistent basis during the periods involved, except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by
GAAP, and fairly present in all material respects the financial position of the Company and its Subsidiary as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited
statements, to normal, year-end audit adjustments. 
 (g) Absence of Certain Events and Changes. Since the date of filing
of the Company’s Current Report on Form 10-Q for the quarter ended March 31, 2012 with the SEC, and except as set forth on any Company SEC Documents filed on or after such date (i) the Company and its Subsidiary have conducted their
respective businesses in the ordinary course consistent with past practice, (ii) there has not been any event, change or development which, individually or in the aggregate, would have a Material Adverse Effect on the Company and its
Subsidiary, taken as a whole, (iii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and
(B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or required to be disclosed in filings made with the SEC, (iv) the Company has not altered its method of accounting, (v) the
Company has not declared or made any dividend or distribution of cash or other property to its shareholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, and (vi) the Company has not issued
any equity securities to any officer, director or Affiliate, except pursuant to existing Company stock option or stock plans. The Company does not have pending before the SEC any request for confidential treatment of information. 

(h) Compliance with Applicable Law. Each of the Company and its Subsidiary is in compliance with all statutes, laws, regulations,
rules, judgments, orders and decrees of all Governmental Entities applicable to it that relate to its respective business, and neither the Company nor its Subsidiary has received any notice alleging noncompliance except, with reference to all the
foregoing, where the failure to be in compliance would not, individually or in the aggregate, have a Material Adverse Effect on the Company and its Subsidiary, taken as a whole. Each of the Company and its Subsidiary has all Permits that are
required in order to permit it to carry on its business as it is presently conducted, except where the failure to have such Permits or rights would not, individually or in the aggregate, have a Material Adverse Effect on the Company and its
Subsidiary, taken as a whole. All such Permits are in full force and effect and to the Knowledge of the Company, the Company and its Subsidiary are in compliance with the terms of such Permits, except where the failure to be in full force and effect
or in compliance would not, individually or in the aggregate, have a Material Adverse Effect on the Company and its Subsidiary, taken as a whole. 
 (i) Litigation. There are no civil, criminal or administrative actions, suits, or proceedings pending or, to the Knowledge of the Company, threatened, against the Company or its Subsidiary that,
individually or in the aggregate, are likely to have a Material Adverse Effect on the Company and its Subsidiary, taken as a whole. There are no outstanding judgments, orders, decrees, or injunctions of any Governmental Entity naming the Company or
its Subsidiary 

  
 - 4 -

 
that, insofar as can reasonably be foreseen, individually or in the aggregate, in the future would have a Material Adverse Effect on the Company and its Subsidiary, taken as a whole. 

(j) Contracts. 
 (i) The Company has filed as exhibits to the Company SEC Documents all material agreements required to be filed under the rules and regulations of the SEC (the “Material Contracts”). A
list of the Material Contracts is set forth on Schedule 2(j). 
 (ii) All Material Contracts are valid,
binding and in full force and effect and enforceable against the Company or the Subsidiary, as the case may be, except to the extent that any failure to be enforceable, individually or in the aggregate, would not reasonably be expected to have or
result in a Material Adverse Effect on the Company and its Subsidiary, taken as a whole, provided that no representation is made as to the enforceability of any non-competition provision in any employment agreement. There does not exist under
any Material Contract any violation, breach or event of default, or event or condition that, after notice or lapse of time or both, would constitute a violation, breach or event of default thereunder, on the part of any of the Company or its
Subsidiary or, to the Knowledge of the Company, any other Person, other than such violations, breaches or events of default as would not, individually or in the aggregate, have a Material Adverse Effect on the Company and its Subsidiary, taken as a
whole. 
 (k) Environmental Matters. Except for such matters that, individually or in the aggregate, would not have a
Material Adverse Effect on the Company and its Subsidiary, taken as a whole, (i) the Company and its Subsidiary are in compliance with all applicable Environmental Laws (as defined below), (ii) the Company and its Subsidiary have all
Permits required under Environmental Laws for the operation of their respective businesses as presently conducted (“Environmental Permits”), (iii) neither the Company nor its Subsidiary has received notice from any Governmental
Entity asserting that either the Company or its Subsidiary may be in violation of, or liable under, any Environmental Law, and (iv) there are no actions, proceedings or claims pending (or, to the Knowledge of the Company threatened) against the
Company or its Subsidiary seeking to impose any liability under any Environmental Law or on Environmental Permits or with respect to any Hazardous Substances (as defined below). The representations and warranties in this Section 2(k) are the
Company’s only representations and warranties in this Agreement concerning environmental matters. 
 For the purposes of
this Agreement, “Environmental Law” means any applicable federal, state, local or foreign law, statute, regulation or decree directly relating to (x) the protection of the environment or (y) the use, storage, treatment,
generation, transportation, processing, handling, release or disposal of Hazardous Substances, in each case, as in effect on the Effective Date. “Hazardous Substance” means any waste, substance, material, pollutant or contaminant
listed, defined, designated or classified as hazardous, toxic or radioactive, or otherwise regulated, under any Environmental law. 
 (l) Status of New Shares. The New Shares being issued at the Closing have been duly authorized by all necessary corporate action on the part of the Company, and at the Closing, such New Shares
(i) will have been validly issued and will be fully paid and nonassessable, free 

  
 - 5 -

 
and clear of all Liens imposed by the Company other than restrictions on transfer provided in this Agreement, and (ii) will not be subject to any claims by the Company or any other Person
that the Purchaser is an “acquiring person” under any shareholder rights plan, including the Rights Agreement or similar plan or arrangement in effect or hereafter adopted by the Company, or that the Purchaser could be deemed to trigger
the provisions of any such plan or arrangement, by virtue of receiving New Shares under this Agreement. The issuance of such New Shares will not be subject to preemptive rights of any other shareholder of the Company. The New Shares will be listed
on Nasdaq when issued in accordance with the terms of this Agreement. As of the Closing, the Company will have reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant to this Agreement.

 (m) Intellectual Property. The Company Intellectual Property is owned free from any Liens (other than Permitted
Liens). All material Intellectual Property Licenses are in full force and effect, except as enforceability may be limited by bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium and other laws relating to or affecting
creditors’ rights generally and by general equitable principles and public policy constraints (including those pertaining to limitations and/or exclusions of liability, competition laws, penalties and jurisdictional issues including conflicts
of laws). To the Knowledge of the Company, all Company Intellectual Property is valid and enforceable and all intellectual property that is the subject of such Intellectual Property is valid and enforceable. Neither the Company nor its Subsidiary
has received written notice from any third party that the development or commercialization of the Company’s or its Subsidiary’s products or product candidates infringes or misappropriates the rights of any third party in respect of any
Intellectual Property owned by such third party. To the Knowledge of the Company, none of the Company Intellectual Property is being infringed or misappropriated by any third party. There is no written claim or demand of any Person pertaining
to, or any proceeding which is pending or, to the Knowledge of the Company, threatened, that challenges the rights of the Company or its Subsidiary in respect of any Company Intellectual Property, or that claims that any default exists under any
Intellectual Property License. “Company Intellectual Property” means the Intellectual Property and Intellectual Property Licenses that are owned by the Company or its Subsidiary. 

(n) Brokers or Finders. No agent, broker, investment banker or other firm is or will be entitled to any broker’s or
finder’s fee or any other commission or similar fee in connection with any of the transactions contemplated by this Agreement as a result of any actions taken by the Company or its Subsidiary. 

(o) Taxes. Each of the Company and the Subsidiary has timely filed with the appropriate tax authorities all tax returns required
to be filed by or on behalf of the Company or the Subsidiary or any predecessor corporation of either of them, or any consolidated, combined or unitary group of which the Company is or has ever been a member (but only with respect to taxable periods
during which the Company has been a member thereof) in all jurisdictions in which such tax returns are or were required to be filed. All such filings are true, complete and correct in all material respects. The Company and the Subsidiary have timely
paid all taxes, including penalties and interest, assessments, withholding taxes, fees and other charges for which the Company or the Subsidiary is liable other than (i) those taxes being contested in good faith and for which adequate reserves
have been established in accordance with generally accepted accounting principles, and (ii) those taxes not yet due and payable. To the Knowledge of the 

  
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Company, the Company has no tax deficiency which has been asserted or threatened against the Company or the Subsidiary. There is no action, suit, proceeding, investigation, audit, or claim now
pending or, to the Knowledge of the Company or the Subsidiary, threatened by any authority regarding any taxes relating to the Company or the Subsidiary. Neither the Company nor the Subsidiary has entered into an agreement or waiver or been
requested to enter into an agreement or waiver extending any statute of limitations relating to the payment or collection of taxes of the Company or the Subsidiary, or, to the Knowledge of the Company or its Subsidiary, aware of any circumstances
that would cause the taxable years or other taxable periods of the Company or the Subsidiary not to be subject to the normally applicable statute of limitations. Neither the Company nor the Subsidiary is a party to or is bound by any tax indemnity
agreement, tax sharing agreement or tax allocation agreement. 
 (p) Insurance. The Company and the Subsidiary are
insured by insurers of recognized financial responsibility against losses and risks and in amounts as are prudent and customary in the businesses in which the Company and the Subsidiary are engaged. The Company’s insurance contracts are in
effect in accordance with their respective terms. Neither the Company nor the Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business on terms consistent with market for the Company’s and the Subsidiary’s respective lines of business. 
 (q) Sarbanes-Oxley; Internal Accounting Controls. The Company is in material compliance with all provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it as of the Closing Date. The
Company and the Subsidiary maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations,
(ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general
or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company has established disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and designed such disclosure controls and procedures to ensure that material information relating to the Company, including its Subsidiary, is made
known to the certifying officers by others within those entities, particularly during the period in which the Company’s most recently filed periodic report under the Exchange Act, as the case may be, is being prepared. The Company’s
certifying officers have evaluated the effectiveness of the Company’s controls and procedures as of the date prior to the filing date of the most recently filed periodic report under the Exchange Act (such date, the “Evaluation
Date”). The Company presented in its most recently filed periodic report under the Exchange Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of
the Evaluation Date. Since the Evaluation Date, there have been no significant changes in the Company’s internal controls (as such term is defined in Item 307(b) of Regulation S-K under the Exchange Act) or, to the Knowledge of the
Company, in other factors that could significantly affect the Company’s internal controls. 
 (r) Private Placement.
Assuming the accuracy of the Purchaser’s representations and warranties set forth in Section 3, no registration under the Securities Act is required for the offer 

  
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and sale of the New Shares by the Company to the Purchaser as contemplated hereby. Subject to the requirement that the Company file, no later than 10 days after the Closing, a “Notification
Form: Change in the Number of Shares Outstanding” in accordance with Marketplace Rule 5250(e)(2). 
 (s)
Investment Company. The Company is not, and immediately after receipt of payment for the New Shares will not be, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 

(t) Registration Rights. No Person has any right to cause the Company to effect the registration under the Securities Act of any
securities of the Company. 
 (u) Listing and Maintenance Requirements. The Common Stock is registered pursuant to
Section 12(b) of the Exchange Act, and the Company has taken no action designed to, or which to the Knowledge of the Company is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has the
Company received any notification that the SEC is contemplating terminating such registration. The Company has not, in the twelve (12) months preceding the Effective Date, received notice from Nasdaq to the effect that the Company is not in
compliance with the listing or maintenance requirements of Nasdaq. The Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements. 

(v) Disclosure. All disclosure provided to the Purchaser regarding the Company, its business and the transactions contemplated
hereby, including the Disclosure Schedule to this Agreement, furnished by or on behalf of the Company with respect to the representations and warranties made herein are true and correct with respect to such representations and warranties and do not
contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. The Company acknowledges and agrees
that the Purchaser does not make and has not made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3 hereof. 

(w) No Integrated Offering. Neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has,
directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the New Shares to be integrated with prior offerings by the Company for purposes of
the Securities Act, which would require the registration of any such securities under the Securities Act or under the rules and regulations of Nasdaq on which any of the securities of the Company are listed or designated, if such integration would
cause this Agreement or the transactions contemplated herein to require shareholder approval. 
 (x) Solvency. Based on
the consolidated financial condition of the Company and the Subsidiary as of the Closing after giving effect to the receipt by the Company of the proceeds from the sale of the New Shares hereunder, (i) the Company’s fair saleable value of
its assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing debts and other known liabilities (including known contingent liabilities) as they mature; and (ii) the Company’s assets do not
constitute unreasonably small capital to carry on its business for the 

  
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current fiscal year as now conducted and as proposed to be conducted including its capital needs taking into account the particular capital requirements of the business conducted by the Company,
and projected capital requirements and capital availability thereof. The Company has no present intention to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in
respect of its debt). To the Knowledge of the Company, there are no facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction from the
Effective Date until the one year anniversary of the Closing Date. Schedule 2(x) sets forth all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or the Subsidiary has commitments.
Neither the Company nor the Subsidiary is in default with respect to any Indebtedness. 
 (y) Form S-3 Eligibility. The
Company is eligible to register the resale of the New Shares for resale by the Purchaser on Form S-3 promulgated under the Securities Act. 
 (z) No General Solicitation. Neither the Company nor any person acting on behalf of the Company has offered or sold any of the New Shares by any form of general solicitation or general advertising.
The Company has offered the New Shares only to the Purchaser. 
 (aa) Foreign Corrupt Practices. Neither the Company, nor
to the Knowledge of the Company, any agent or other person acting on behalf of the Company, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or
domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any
contribution made by the Company (or made by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as
amended. 
 (bb) Transactions With Affiliates. None of the officers or directors of the Company is presently a party to
any transaction with the Company or the Subsidiary (other than for services as officers or directors), which would require disclosure under Item 404(a) of Regulation S-K of the Exchange Act, which has not been so disclosed. 

(cc) Labor Relations. No material labor dispute exists or, to the Knowledge of the Company, is imminent with respect to any of the
employees of the Company which could reasonably be expected to result in a Material Adverse Effect. 
 (dd) Title to
Assets. Neither the Company nor the Subsidiary owns any real property. The Company and the Subsidiary have good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiary, in
each case free and clear of all Liens, except for Permitted Liens. Any real property and facilities held under lease by the Company and the Subsidiary are held by them under valid, subsisting and enforceable leases of which the Company and the
Subsidiary are in compliance, except as could not have or reasonably be expected to result in a Material Adverse Effect. 

  
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 3. Representations and Warranties of the Purchaser. The Purchaser represents and
warrants to the Company as follows: 
 (a) Organization. Purchaser is an entity duly organized and validly existing and
in good standing under the laws of the jurisdiction of its organization, with all requisite power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to conduct its business as now being
conducted. 
 (b) Authority. Purchaser has the requisite power and authority to execute, deliver and perform its
obligations under this Agreement and to consummate the transactions contemplated hereby. All necessary action required to have been taken by or on behalf of Purchaser by applicable law or otherwise to authorize the approval, execution, delivery and
performance by Purchaser of this Agreement and the consummation by it of the transactions contemplated hereby have been duly authorized, and no other proceedings on its part are or will be necessary to authorize this Agreement or for it to
consummate such transaction. This Agreement is valid and binding agreement of Purchaser, enforceable against Purchaser in accordance with its terms, subject as to enforcement of remedies to applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting generally the enforcement of creditors’ rights and subject to a court’s discretionary authority with respect to the granting of a decree ordering specific performance or other equitable remedies.

 (c) Conflicting Agreements and Other Matters. Neither the execution and delivery of this Agreement nor the performance
by Purchaser of its obligations hereunder will conflict with, result in a breach of the terms, conditions or provisions of, constitute a default under, result in the creation of any Lien upon any of the properties or assets of Purchaser pursuant to,
or require any consent, approval or other action by or any notice to or filing with any Government Entity pursuant to, the organizational documents or agreements of Purchaser or any agreement, instrument, order, judgment, decree, statute, law, rule
or regulation by which Purchaser is bound, except for filings after the Closing under Section 13(d) of the Exchange Act and filings under the HSR Act. 
 (d) Acquisition for Investment. Immediately following the Closing, Purchaser, in a series of successive transfers, is transferring half of the New Shares to each of its ultimate parents, Beacon and
Rosebay. Purchaser (i) is acquiring the New Shares for BRP Entity’s account for the purpose of investment and not with a view to or for sale in connection with any distribution thereof, and has no present intention to effect, or any
present or contemplated plan, agreement, undertaking, arrangement, obligation, indebtedness, or commitment providing for, any distribution of the New Shares, (ii) is an “accredited investor” as defined in Rule 501(a) under the
Securities Act, (iii) has carefully reviewed the representations concerning the Company and the Subsidiary contained in this Agreement and has made detailed inquiry concerning the Company and the Subsidiary, their respective business and their
respective personnel, and (iv) has sufficient knowledge and experience in finance and business that it is capable of evaluating the risks and merits of its investment in the Company and is able financially to bear the risks thereof. 

(e) General Solicitation. Purchaser is not purchasing the New Shares as a result of any advertisement, article, notice or other
communication regarding the New Shares published in 

  
 - 10 -

 
any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement. 

(f) Brokers or Finders. No agent, broker, investment banker or other firm is or will be entitled to any broker’s or
finder’s fee or any other commission or similar fee in connection with any of the transactions contemplated by this Agreement as a result of any actions taken by Purchaser. 

4. Registration Rights. 
 4.1 Registration of the Shares. The Company shall file with the SEC, within 30 days following the Closing Date, a Registration Statement covering the resale to the public by the BRP Entities of the
New Shares. The Company shall use commercially reasonable efforts to cause the Registration Statement covering the New Shares to be declared effective by the SEC (collectively, the “Registrable Shares”) within 90 days after the
filing thereof. The Company shall cause such Registration Statement to remain effective under the Securities Act until all Registrable Shares covered by such Registration Statement have been sold or may be sold without volume restrictions pursuant
to Rule 144. The Company shall promptly, and in no event in more than two (2) Business Days, notify the BRP Entities of the effectiveness of such Registration Statement after the Company confirms effectiveness with the SEC. In connection with
the Company’s preparation and filing of the Registration Statement, the BRP Entities holding the New Shares shall deliver to the Company within 10 days after the Closing, a customary form of selling stockholder questionnaire. 

4.2 Registration Representations and Warranties and Covenants. 

(a) Other Registrations. The Company shall not file any other registration statements, other than registration statements on Form
S-4 or Form S-8, until the Registration Statement required to be filed pursuant to Sections 4.1 hereunder is declared effective by the SEC, provided that this Section 4.2(a) shall not prohibit the Company from filing amendments to
registration statements already filed. 
 (b) Compliance. The BRP Entities covenant and agree that it will comply with
the prospectus delivery requirements of the Securities Act as applicable to it in connection with sales of Registrable Shares pursuant to a Registration Statement. The Company shall comply in all material respects with all applicable rules and
regulations of the SEC applicable to the filing of a Registration Statement. 
 4.3 Registration Procedures. 

(a) In connection with the filing by the Company of a Registration Statement covering Registrable Shares, the Company shall furnish to
the BRP Entities (i) a copy of the prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act and (ii) such other documents as the BRP Entities may reasonably request, in order to facilitate
the public sale or other disposition of Registrable Shares. 
 (b) The Company shall use commercially reasonable efforts to
register or qualify the Registrable Shares covered by a Registration Statement under the securities laws of each state of 

  
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the United States as the Purchaser shall reasonably request; provided, however, that the Company shall not be required in connection with this paragraph (b) to qualify as a
foreign corporation or execute a general consent to service of process in any jurisdiction. 
 (c) If the Company has delivered
preliminary or final prospectuses to the BRP Entities and after having done so the prospectus is amended or supplemented to comply with the requirements of the Securities Act, the Company shall promptly notify the BRP Entities and, if requested by
the Company, the BRP Entities shall immediately cease making offers or sales of Registrable Shares covered by a Registration Statement and return all prospectuses to the Company. The Company shall promptly provide the BRP Entities with revised or
supplemented prospectuses and, following receipt of the revised or supplemented prospectuses, the BRP Entities shall be free to resume making offers and sales of Registrable Shares under such Registration Statement. 

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

(f) The Company shall use commercially reasonable efforts to avoid the issuance of any order suspending the effectiveness of a
Registration Statement, or any suspension of the qualifications (or exemption from qualification) of any of the Registrable Shares for sale in any jurisdiction. The Company shall advise the BRP Entities promptly after it shall receive notice of any
stop order or issuance of any order by the SEC delaying or suspending the effectiveness of a Registration Statement covering Registrable Shares or of the initiation of any proceeding for that purpose, and it will promptly use commercially reasonable
efforts to prevent the issuance of any stop order or to obtain its withdrawal at the earliest possible moment if such stop order should be issued. 
 4.4 Registration and Underwritten Offering Confidentiality. The BRP Entities agree to treat as confidential (unless otherwise publicly disclosed by the Company or a third party not to the knowledge
of BRP Entities in breach of an agreement of confidentiality with the Company) any written notice from the Company regarding the Company’s plans to file a Registration Statement or effect an Underwritten Offering and shall not disclose such
information to any other person, or use such information, except as is necessary to exercise its rights under this Agreement. 

  
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 4.5 Underwritten Offering 

(a) In connection with an underwritten offering of any of the Common Stock at any time after January 1, 2013 (“Underwritten
Offering”), the Company shall, each such time, promptly give the BRP Entities written notice of such proposed Underwritten Offering as soon as practicable. Upon written request of the BRP Entities given within five (5) Business Days
after receipt of any such notice by the Company, the Company shall use its reasonable best efforts to cause to be included in such Underwritten Offering up to such number of the Shares then held by the BRP Entities as shall equal, in the aggregate,
the lesser of (x) 20% of the total estimated maximum dollar amount of shares proposed to be sold in such Underwritten Offering by the Company and any other holders of securities of the Company, or (y) such number of Shares as the BRP
Entities shall so specify in their written request, subject in either case to Section 4.5(b) below. 
 (b) If the managing
underwriters advise the Company that their reasonable opinion of marketing factors require a limitation in the number of shares to be included by persons other than the Company in an Underwritten Offering under Section 4.5(a), the shares held
by the BRP Entities and any other holders of securities of the Company who are entitled, by contract with the Company, to have securities included in such Underwritten Offering may be excluded from such Underwritten Offering on a pro rata basis
based on the respective number of shares of Common Stock held by them on the date the Company gives notice as specified above. If the BRP Entities or any other holder would thus be entitled to include more shares than such holder requested to be
registered, the excess shall be allocated among the BRP Entities and other holders in the manner described in the preceding sentence. 
 (c) In the event a BRP Entity intends to include its Shares in an Underwritten Offering, such right shall be conditioned upon such BRP Entity’s participation in such Underwritten Offering on the
terms set forth herein and such BRP Entity shall enter into an underwriting agreement upon customary terms with the underwriter or underwriters selected by the Company. 
 (d) All of the Company’s obligations under this Section 4.5 shall terminate on the earlier of (a) December 31, 2018, (b) the date on which all of the Shares have been sold by the
BRP Entities, or (c) a merger or consolidation of the Company, provided that the shares received as merger consideration in exchange for the Shares are freely tradable on a national securities exchange. 

4.6 Indemnification. 
 (a) The Company agrees to indemnify and hold harmless each BRP Entity and their Associated Companies, each underwriter, and each other person, if any, who controls such BRP Entities and their Associated
Companies or underwriter within the meaning of the Securities Act or Exchange Act from and against any losses, claims, damages or liabilities to which such BRP Entities and their Associated Companies, such underwriter or controlling person may
become subject (under the Securities Act, the Exchange Act, state securities or Blue Sky laws or otherwise) insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise out of, or are based upon any
untrue statement of a material fact contained in 

  
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any registration statement covering the Shares or in any preliminary prospectus or final prospectus contained in such registration statement, or any amendment or supplement to such registration
statement, or the omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, and the Company will reimburse each BRP Entity and their Associated Companies,
underwriter or controlling person for any reasonable legal or other expenses reasonably incurred in investigating, defending or preparing to defend any such action, proceeding or claim, or preparing to defend any such action, proceeding or claim;
provided, however, that the Company shall not be liable in any such case to the extent that such loss, claim, damage or liability arises out of, or is based upon, an untrue statement made in such registration statement, preliminary
prospectus or prospectus, or any amendment or supplement in reliance upon and in conformity with written information furnished to the Company by or on behalf of such BRP Entity and their Associated Companies, underwriter or controlling person
specifically for use in the preparation thereof or any statement or omission in any prospectus that is corrected in any subsequent prospectus that was delivered to such BRP Entity prior to the pertinent sale or sales by such BRP Entity. 

(b) Each BRP Entity, severally and not jointly, agrees to indemnify and hold harmless the Company, each underwriter and each person, if
any, who controls the Company within the meaning of Section 15 of the Securities Act, each officer of the Company who signs the registration statement and each director of the Company, from and against any losses, claims, damages or liabilities
to which the Company or any such underwriter, officer, director or controlling person may become subject (under the Securities Act, the Exchange Act, state securities or Blue Sky laws or otherwise), insofar as such losses, claims, damages or
liabilities (or actions or proceedings in respect thereof) arise out of, or are based upon any untrue statement of a material fact contained in any registration statement covering the Shares or in any preliminary prospectus, final prospectus
contained in such registration statement, or any amendment or supplement to such registration statement or the omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not
misleading, if such untrue statement or omission was made in reliance upon and in conformity with written information furnished by or on behalf of such BRP Entity specifically for use in preparation of the registration statement, prospectus,
amendment or supplement and such BRP Entity will reimburse the Company, or such underwriter, officer, director or controlling person, as the case may be, for any legal or other expenses reasonably incurred in investigating, defending or preparing to
defend any such action, proceeding or claim; provided, however, that the BRP Entity’s obligation to indemnify the Company shall be limited to the net amount received by such BRP Entity from the sale of the Shares. 

(c) Promptly after receipt by any indemnified person of a notice of a claim or the beginning of any action in respect of which indemnity
is to be sought against an indemnifying person pursuant to this Section 4.6, such indemnified person shall notify the indemnifying person in writing of such claim or of the commencement of such action, but the omission to so notify the
indemnifying party will not relieve it from any liability which it may have to any indemnified party under this Section 4.6 (except to the extent that such omission materially and adversely affects the indemnifying party’s ability to
defend such action). Subject to the provisions hereinafter stated, in case any such action shall be brought against an indemnified person, the indemnifying person shall be entitled to participate therein, and, to the extent that it shall elect by
written notice delivered to the indemnified party promptly after receiving the aforesaid notice 

  
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from such indemnified party, shall be entitled to assume the defense thereof, with counsel reasonably satisfactory to such indemnified person. After notice from the indemnifying person to such
indemnified person of its election to assume the defense thereof, such indemnifying person shall not be liable to such indemnified person for any legal expenses subsequently incurred by such indemnified person in connection with the defense thereof;
provided, however, that if there exists or shall exist a conflict of interest that would make it inappropriate, in the opinion of counsel to the indemnified person, for the same counsel to represent both the indemnified person and such
indemnifying person or any Affiliate or Associated Company or associate thereof, the indemnified person shall be entitled to retain its own counsel at the expense of such indemnifying person; provided, however, that no indemnifying
person shall be responsible for the fees and expenses of more than one separate counsel (together with appropriate local counsel) for all indemnified parties. In no event shall any indemnifying person be liable in respect of any amounts paid in
settlement of any action unless the indemnifying person shall have approved the terms of such settlement; provided, however, that such consent shall not be unreasonably withheld. No indemnifying person shall, without the prior written
consent of the indemnified person, effect any settlement of any pending or threatened proceeding in respect of which any indemnified person is or could have been a party and indemnification could have been sought hereunder by such indemnified
person, unless such settlement includes an unconditional release of such indemnified person from all liability on claims that are the subject matter of such proceeding. 
 (d) If the indemnification provided for in this Section 4.6 is unavailable to or insufficient to hold harmless an indemnified party under paragraph (a) or (b) above in respect of any
losses, claims, damages or liabilities (or actions or proceedings in respect thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims,
damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative fault of the Company on the one hand and the BRP Entity on the other hand, in connection with the statements or omissions or other
matters which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative fault shall be determined by reference to, among ether things, in the case of
an untrue statement, whether the untrue statement relates to information supplied by the Company on the one hand or the BRP Entity on the other hand and the parties’ relative intent, knowledge, access to information and opportunity to correct
or prevent such untrue statement. The Company and the BRP Entities agree that it would not be just and equitable if contribution pursuant to this paragraph (d) were determined by pro rata allocation (even if the BRP Entities were treated as one
entity for such purpose) or by any other method of allocation which does not take into account the equitable considerations referred to above in this paragraph (d). The amount paid or payable by an indemnified party as a result of the losses,
claims, damages or liabilities (or actions in respect thereof) referred to above in this paragraph (d) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or
defending any such action or claim. Notwithstanding the provisions of this paragraph (d), a BRP Entity shall not be required to contribute any amount in excess of the amount by which the net amount received by such BRP Entity from the sale of the
Shares to which such loss relates exceeds the amount of any damages which such BRP Entity has otherwise been required to pay by reason of such untrue statement. No person guilty of fraudulent misrepresentation (within the

  
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meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. 

(e) The rights and obligation of the Company and the BRP Entities under this Section 4.6 shall survive the termination of this
Agreement. 
 4.7 Lock-Up Agreement and Confidentiality of Notice. 

(a) During the period between the date of this Agreement and December 31, 2013, the BRP Entities agree, if requested by the Company
and/or the managing underwriters, placement agents or initial purchasers for any offering of capital stock proposed by the Company during such period, (i) not to (a) offer, pledge, announce the intention to sell, sell, contract to sell,
sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any Shares or other equity securities of the Company or
(b) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of any Shares or other equity securities of the Company, whether any transaction described in clause (a) or
(b) is to be settled by delivery of securities, in cash or otherwise, during such period as may be requested by the managing underwriters, placement agents or initial purchasers, as the case may be, for such offering and (ii) to execute
any agreement (a “Lock-Up Agreement”) reflecting clause (i) above as may be requested by the Company, the managing underwriters, the placement agents or the initial purchasers, as the case may be, at the time of such offering;
provided, that all officers, directors and Affiliates of the Company enter into similar agreements with equivalent terms. The foregoing sentence shall not apply to (a) transfers as a bona fide gift, (b) distributions to Associated
Companies, (c) transfers by will, other testamentary document or intestate succession to the legal representative, heir, beneficiary or a member of the immediate family of the undersigned, (d) the establishment of a trading plan pursuant
to Rule 10b5-1 under the Exchange Act, provided that such plan does not provide for the transfer during the restricted period and no public announcement or filing under the Exchange Act regarding the establishment of such plan shall be
required of or voluntarily made by or on behalf of the undersigned or the Company, or (e) sales to an underwriter pursuant to an Underwriting Offering; provided that in the case of any transfer or distribution pursuant to
clause (a), (b), or (c) above, (y) each donee or distributee shall sign and deliver a Lock-Up Agreement, and (z) no filing under Section 16(a) of the Exchange Act, reporting a reduction in beneficial ownership of shares of
Common Stock, shall be required or shall be voluntarily made during the restricted period referred to in the foregoing sentence. 
 (b) The Company may impose stop-transfer instructions with respect to the Shares or other securities subject to a Lock-Up Agreement in accordance with the terms thereof. 

(c) Any BRP Entity receiving any written notice from the Company regarding the Company’s plans to effect and offering shall treat
such notice confidentially and shall not disclose such information to any person other than as necessary to exercise its rights under this Agreement. 

  
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 5. Rights Agreement. 

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

(b) Quarterly and upon a BRP Entity’s written request, the Company shall provide (within five (5) Business Days of any request)
a statement as to the number of current outstanding shares of Common Stock and the Company’s good faith estimate of the BRP Entities’ current ownership percentage (which shall be based upon publicly available information and/or information
furnished by the BRP Entities to the Company in writing). 
 (c) The Company will not enter into any shareholder rights plans or
similar plan or arrangement, or further amendment to the Rights Agreement, that would allow a claim to be made or enforced by the Company that any BRP Entity or any Associated Company is an “Acquiring Person” for purposes of the Rights
Agreement or otherwise deemed to trigger the provisions of any such plan provided that the BRP Entities and Associated Companies are in compliance with this Section 5. 

  
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 6. Covenants and Additional Agreements. 

(a) Obligations. The Company and each BRP Entity shall use reasonable best efforts to take or cause to be taken all actions, and
to do or cause to be done all other things, necessary, proper or advisable in order to fulfill and perform its obligations in respect of this Agreement, or otherwise to consummate and make effective the transactions contemplated hereby and thereby.

 (b) Consents and Approvals. The Company and each BRP Entity shall, as promptly as practicable, (i) make, or cause
to be made, all filings and submissions (including but not limited to under the HSR Act and foreign antitrust filings and any filings under the rules and regulations of the SEC) required under any law applicable to it or its Subsidiary or Associated
Companies, and give such reasonable undertakings as may be required in connection therewith, and (ii) use all reasonable efforts to obtain or make, or cause to be obtained or made, all Permits necessary to be obtained or made by it, in each
case in connection with this Agreement, the sale and transfer of the New Shares pursuant hereto and the consummation of the other transactions contemplated hereby or thereby. Without limiting the generality of the foregoing, the Company and each BRP
Entity shall agree to use reasonable best efforts to make a Premerger Notification Filing under the HSR Act on or before August 3, 2012 and the Company and BRP Entities shall request early termination of the applicable waiting period.

 (c) Each of the Company and the BRP Entities shall use its reasonable best efforts to: 

(i) as promptly as practicable, obtain from any Governmental Entity any consents, licenses, permits, waivers, approvals,
authorizations, or orders required to be obtained or made by the Company or the BRP Entities in connection with the authorization, execution and delivery of this Agreement and the consummation of the transactions contemplated hereby; 

(ii) as promptly as practicable, make all necessary filings, and thereafter make any other required submissions, with
respect to this Agreement and the transactions contemplated hereby required under (A) the HSR Act and any related governmental request thereunder, and (B) any other applicable law; and 

(iii) cause each of their respective subsidiaries, to cooperate and to use their respective reasonable best efforts to
obtain any government clearances or approvals required for Closing under the HSR Act, the Sherman Antitrust Act, as amended, the Clayton Antitrust Act, as amended, the Federal Trade Commission Act, as amended, and any other federal, state or foreign
law, regulation or decree designed to prohibit, restrict or regulate actions for the purpose or effect of monopolization or restraint of trade (collectively “Antitrust Laws”), to respond to any government requests for information
under any Antitrust Law, and, at the sole option of the Purchaser, to contest and resist any action, including any legislative, administrative or judicial action, and to have vacated, lifted, reversed or overturned any decree, judgment, injunction
or other order (whether temporary, preliminary or permanent) (an “Antitrust Order”) that restricts, prevents or prohibits the consummation of the transactions contemplated by this Agreement under any Antitrust Law. The parties
hereto will consult and cooperate with one another, and consider in good faith the views of one another, in connection with, and provide to the 

  
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other parties in advance, any analyses, appearances, presentations, memoranda, briefs, arguments, opinions and proposals made or submitted by or on behalf of any party hereto in connection with
proceedings under or relating to any Antitrust Law. 
 (d) Further Actions. The Company and each BRP Entity shall
coordinate and cooperate with the other parties in exchanging such information and supplying such reasonable assistance as may be reasonably requested by such other parties in connection with the filings and other actions contemplated by this
Agreement. The Company and each BRP Entity will execute, acknowledge and deliver such further instruments, and do all such other acts, as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement. 

(e) SEC Filings; Financial Statements. The Company shall use commercially reasonable efforts to (i) timely file any reports,
schedules, forms, statements and documents required to be filed by it with the SEC under the Securities Act and the Exchange Act (“Future SEC Filings”) and use commercially reasonable efforts to (A) comply in all material
respects with the applicable requirements of the Securities Act or the Exchange Act, as applicable, and the rules and regulations thereunder and (B) ensure that any Future SEC Filings do not contain any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; (ii) ensure that the financial statements of the Company
included in the Future SEC Filings shall comply in all material respects with applicable accounting requirements and the rules and regulations of the SEC with respect thereto as in effect at the time of filing; and (iii) ensure that the
financial statements in its Future SEC Filings shall be prepared in accordance with GAAP applied on a consistent basis during the periods involved, except as may be otherwise specified in such financial statements or the notes thereto and except
that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its Subsidiary as of and for the dates thereof and the results of operations
and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, year-end audit adjustments. 

(f) Compliance with Applicable Law. Each of the Company and its Subsidiary shall (i) use commercially reasonable efforts to
comply in all material respects with all statutes, laws, regulations, rules, judgments, orders and decrees of all Governmental Entities applicable to it that relate to its respective business; and (ii) maintain all Permits that are required in
order to permit it to carry on its business as it is presently conducted, except such Permits for which the failure so to maintain shall not have a Material Adverse Effect. The Company will comply in all material respects with all applicable
provisions of the Sarbanes-Oxley Act of 2002. The Company will not knowingly take action that would cause the Company to become subject to the Investment Company Act unless the Company so registers or has, or obtains, an exemption from registration.

 (g) Board Attendance Rights. The BRP Entities hereby agree and acknowledge that, as of the Effective Date, the BRP
Entities shall have no further board attendance rights under Section 6(h) of the Original Securities Purchase Agreement. 

(h) Listing of Common Stock. The Company shall take no action designed to, or which to the Knowledge of the Company is likely to
have the effect of, terminating the registration of the Common Stock under the Exchange Act. The Company hereby agrees to use 

  
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commercially reasonable efforts to maintain the listing of the Common Stock, including the New Shares, on Nasdaq. The Company further agrees, if the Company applies to have the Common Stock
traded on any other trading market, it will include in such application all of the New Shares, and will take such other action as is necessary to cause all of the New Shares to be listed on such other trading market as promptly as possible. The
Company will take all action reasonably necessary to continue the listing and trading of its Common Stock, including the New Shares, on Nasdaq and will comply in all material respects with the Company’s reporting, filing and other obligations
under the bylaws or rules of Nasdaq. 
 (i) Agreement to Vote. From and after the Closing Date and until the fifth
anniversary of the Closing Date, at any meeting of the stockholders of the Company (each, a “Stockholder Meeting”), each of the BRP Entities and Associated Companies holding Voting Shares (as defined below) shall: 

(i) appear at each such Stockholder Meeting and at every adjournment or postponement thereof or otherwise cause all of its
Existing Shares, New Shares and any other shares of Common Stock acquired after the Closing Date (the “Post Closing Shares”) entitled to vote at such Stockholder Meeting then Beneficially Owned and of record as of the applicable
record date by such Stockholder (the “Voting Shares”) to be counted as present thereat for purposes of calculating a quorum; and 
 (ii) vote (or cause to be voted), in person or by proxy, its Voting Shares as recommended by the Company’s Board of Directors, as such recommendation is set forth in the definitive proxy statement
mailed by the Company to its stockholders for such Stockholder Meeting, provided, however, that notwithstanding the foregoing, with respect to any proposal to (x) amend the Company’s Charter or (y) approve any
Extraordinary Transaction (as defined below), each of the Stockholders instead shall vote (or cause to be voted), in person or by proxy, any Voting Shares, to the extent they are Existing Shares or Post Closing Shares, shall be voted in proportion
to the manner in which all of the stockholders of the Company, other than the BRP Entities, vote their shares in respect of such proposal(s), regardless of the recommendation of the Company’s Board of Directors. 

(iii) For purposes of this Section 6(i) only: 

(A) The term “Associated Company” shall disregard the final sentence of the definition of such term
contained in Section 9 hereof such that the voting restrictions and related covenants contained in this Section 6(i) shall apply to any Voting Shares now or hereafter held by The Purdue Frederick Company as if such company were an
“Associated Company”. 
 (B) The term “Extraordinary Transaction” shall mean any
transaction where the Company (1) must seek the vote of its stockholders under the Delaware General Corporation Law or (2) seeks approval or authorization of its stockholders solely under any rule of Nasdaq or any other then applicable
stock exchange on which the Common Stock is listed. 

  
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 (C) In the event that the BRP Entities sell Voting Shares pursuant to the
terms of this Agreement following the Effective Date, solely for purposes of the voting covenants contained in clause (ii) of this Section 6(i), the number of (1) Existing Shares and (2) New Shares held by the BRP Entities and
Associated Companies shall be reduced proportionately as a result of any such sale such that 50% of the Voting Shares sold shall be deemed to have been Existing Shares and 50% of the Voting shares sold shall be deemed to have been New Shares.

 7. Conditions Precedent to Closing. 
 7.1 Each Party’s Obligations. The obligations of the Company and the Purchaser to consummate the transaction contemplated to occur at the Closing shall be subject to the satisfaction prior to
the Closing of the following condition: 
 (a) HSR, and Other Approvals. Any applicable waiting period under the HSR Act
relating to the transactions contemplated hereby to be consummated at the Closing shall have expired or been terminated and all other material authorizations, consents, orders or approvals of, or regulations, declarations or filings with, or
expirations of applicable waiting periods imposed by, any Governmental Entity (including, without limitation, any foreign antitrust filing) necessary for the consummation of the transactions contemplated hereby to be consummated at the Closing,
shall have been obtained or filed or shall have occurred. 
 (b) No Litigation, Injunctions, or Restraints. No statute,
rule, regulation, executive order, decree, temporary restraining order, preliminary or permanent injunction or other order enacted, entered, promulgated, enforced or issued by any Governmental Entity or other legal restraint or prohibition
preventing the consummation of the transactions contemplated by this Agreement to be consummated at the Closing shall be in effect. 
 7.2 Conditions to the Obligations of the Company. The obligations of the Company to consummate the transaction contemplated to occur at the Closing shall be subject to the satisfaction or waiver
thereof prior to or on the Closing Date of the following condition: 
 (a) Representations and Warranties. The
representations and warranties of the Purchaser set forth in this Agreement that are qualified as to materiality shall be true and correct, and those that are not so qualified shall be true and correct in all material respects, as of the time of the
Closing as though made at and as of such time, except to the extent such representations and warranties expressly relate to an earlier date (in which case such representations and warranties that are qualified as to materiality shall be true and
correct, and those that are not qualified shall be true and correct in all material respects, on and as of such earlier date). 

(b) Officer’s Certificate. At Closing, the Purchaser shall deliver to the Company a certificate signed by an authorized
officer of the Purchaser certifying to the effect set forth in Sections 7.1(a) and 7.2(a); 
 (c) Payment of Purchase
Price. At Closing, the Purchaser shall pay to the Company the Purchase Price for the New Shares being purchased by: (i) conversion and cancellation of an amount equal to $51,040,191.21 (representing $50,000,000 in principal and
$1,040,192.21 in interest due and owing to Purchaser by the Company pursuant to the Line of Credit Notes as of 

  
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the Effective Date), and (ii) by wire transfer of immediately available funds, or by other method acceptable to the Company, of $27,500,000. 

(d) Conversion of Line of Credit Notes. At Closing, Purchaser shall surrender the Line of Credit Notes to the Company for
cancellation and conversion in exchange for the issuance to the Purchaser of the New Shares. Purchaser and the Company hereby agree and acknowledge that, upon the issuance of the New Shares to Purchaser and the occurrence of the Closing, subject to
Section 8.2(c) below (i) the Line of Credit Notes shall be deemed to be cancelled and converted into the New Shares without any further action by Purchaser or the Company (other than the issuance and delivery to the Purchaser of the New
Shares), and the Line of Credit Notes shall thereafter have no further force or effect, (ii) the Line of Credit Agreement shall be deemed to be terminated in its entirety and shall have no further force or effect, and (iii) the Company
shall have no further obligations of any kind whatsoever to Purchaser and Purchaser shall have no further obligations of any kind whatsoever to the Company (including, without limitation, the obligation to make Line of Credit Loans (as defined in
the Line of Credit Agreement)), in each case, with respect to the Line of Credit Notes or the Line of Credit Agreement; provided that, notwithstanding the foregoing, the obligations of the Company under Sections 9.3 of the Line of Credit
Agreement shall survive termination. 
 7.3 Conditions to the Obligations of Purchaser. The obligations of the Purchaser
to consummate the transaction contemplated to occur at the Closing shall be subject to the satisfaction or waiver thereof prior to or on the Closing Date of each of the following conditions: 

(a) Representations and Warranties. The representations and warranties of the Company set forth in this Agreement that are
qualified as to materiality shall be true and correct, and those that are not so qualified shall be true and correct in all material respects, as of the time of the Closing as though made at and as of such time, except (i) to the extent such
representations and warranties expressly relate to an earlier date (in which case such representations and warranties that are qualified as to materiality shall be true and correct, and those that are not so qualified shall be true and correct in
all material respects, on and as of such earlier date), or (ii) as set forth in an amended Disclosure Schedule delivered by the Company to the Purchaser. 
 (b) Performance of Obligations of the Company. The Company shall have performed or complied in all material respects (other than such covenants and obligations which are already qualified by a
materiality standard in which case such covenant and agreement shall be performed or complied with exactly as stated) with all obligations and covenants required to be performed or complied with by the Company under this Agreement on or prior to the
Closing. 
 (c) Officer’s Certificate. At Closing, the Company shall deliver to the Purchaser a certificate signed
by the chief executive officer and chief financial officer of the Company certifying to the effect set forth in Sections 7.1(a), 7.1(b), 7.3(a) and 7.3(b). 
 (d) Disclosure Schedule. The Company shall deliver to the Purchaser the Disclosure Schedule updated as of the Closing Date. 

  
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 (e) Legal Opinion. Wilmer Cutler Pickering Hale and Dorr LLP, counsel for the
Company, shall deliver to the Purchaser an opinion, dated the Closing Date, in the form attached hereto as Exhibit A. 

(f) Stock Certificates. The Company shall deliver to the Purchaser a certificate for the number of New Shares registered in the
name of the Purchaser. 
 8. Termination. 
 8.1 Termination. This Agreement may be terminated with respect to the respective obligations of the Company and the Purchaser to sell and purchase the New Shares and to deliver the other
deliverables contemplated to be delivered at the Closing at any time prior to the Closing: 
 (a) by mutual written consent of
Purchaser and the Company; or 
 (b) by the Purchaser or the Company if (i) there shall be any statute, law, regulation or
rule that makes consummating the transactions contemplated hereby to be consummated at the Closing illegal or if any court or other Governmental Entity of competent jurisdiction shall have issued a judgment, order, decree or ruling, or shall have
taken such other action restraining, enjoining or otherwise prohibiting the consummation of the transactions contemplated hereby to be consummated at the Closing and such judgment, order, decree or ruling shall have become final and non-appealable;
or (ii) if the Closing shall not have occurred prior to September 30, 2012; or (iii) if any of the conditions set forth in Section 7 shall become impossible to fulfill and shall not have been waived in accordance with the terms
of this Agreement. 
 8.2 Effect of Termination. In the event of termination of this Agreement by either the Company or
the Purchaser as provided in Section 8.1, 
 (a) the respective obligations of the Company and the Purchaser to sell and
purchase the New Shares and to deliver the other deliverables contemplated to be delivered at the Closing shall forthwith become void and have no effect, without any liability or obligation on the part of the Purchaser or the Company (except to the
extent that such termination results from the willful and material breach by a party of any of its representations, warranties, covenants or agreements set forth in this Agreement applicable to the Closing); 

(b) the remaining provisions of this Agreement shall survive such termination and remain in full force and effect; 

(c) (i) the definition of the term “Line of Credit Maturity Date” as set forth in the Line of Credit Agreement shall, without
any action on the part of the Company and the Purchaser, automatically be amended and restated in its entirety to read as follows: “Line of Credit Maturity Date” means December 31, 2015, and (ii) Section 2.3(c) of the Line
of Credit Agreement shall be terminated in its entirety. For the avoidance of doubt, interest on the principal amount outstanding under the Line of Credit Agreement shall continue to accrue from and after the Effective Date and, in the event that
this Agreement is terminated for any reason prior to the issuance of the New Shares, such accrued interest, together with the principal amount of all outstanding Line of Credit Notes, shall be payable in accordance with the terms and provisions of

  
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the Line of Credit Agreement as though this Agreement had not been entered into by the parties hereto. Nothing contained herein shall be deemed to waive, limit, prejudice or otherwise adversely
affect any of the rights, powers, remedies or privileges of the Purchaser under the Line of Credit Agreement or the Line of Credit Notes, and the Purchaser expressly reserves all of its rights to enforce any or all of its rights and remedies under
the Line of Credit Agreement and the Line of Credit Notes. Notwithstanding the foregoing, acting in accordance with Section 9.10 of the Line of Credit Agreement, the Purchaser: (x) hereby waives as of the Effective Date any rights it may
have under Section 2.3(c) as a result of the termination of the Global Strategic Alliance Agreement (as defined in the Line of Credit Agreement) and the execution by the Company of the MICL Termination Agreement, and (y) agrees and
acknowledges that the matters and circumstances leading up to the execution of the Termination Agreements shall not give rise to, or constitute, an “Event of Default” for purposes of Section 7.3 of the Line of Credit Agreement;

 (d) the royalty rates set forth in Section 4.1(a) of the MICL Termination Agreement shall be amended as set forth in
Section 4.1(a) of the MICL Termination Agreement; and 
 (e) the royalty rates set forth in Section 4.1(a) of the
Purdue Termination Agreement shall be amended as set forth in Section 4.1(a) of the Purdue Termination Agreement. 
 9.
Interpretation; Definitions. 
 (a) For purposes of this Agreement, the following terms shall have the following
meanings: 
 “Affiliate” shall have the meaning set forth in Rule 12b-2 under the Exchange Act (as in effect
on the date of this Agreement). 
 “Agreement” means this Agreement, together with all appendices, exhibits
and schedules attached hereto and the Disclosure Schedule, as the same may be amended or supplemented from time to time, by written agreement of the Company and the BRP Entities. 

“Associated Company” means, as to any BRP Entity, any person, firm, trust, partnership, corporation, company or other
entity or combination thereof, which directly or indirectly (i) controls the BRP Entity, (ii) is controlled by the BRP Entity or (iii) is under common control with the BRP Entity. The terms “control” and
“controlled” mean ownership of 50% or more, including ownership by trusts with substantially the same beneficial interests, of the voting and equity rights of such person, firm, trust, partnership, corporation, company or other entity or
combination thereof or the power to direct the management of such person, firm, trust, partnership, corporation, company or other entity or combination thereof. “Associated Company” shall not include The Purdue Frederick Company Inc., a
New York corporation. 
 “Beacon” is defined in the recitals to this Agreement. 

“Beneficial Ownership” by a Person of any securities means ownership, directly or indirectly, through any contract,
arrangement, understanding, relationship or 

  
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otherwise, where such Person has or shares with another Person (i) voting power which includes the power to vote, or to direct the voting of, such security; and/or (ii) investment power
which includes the power to dispose, or to direct the disposition, of such security; and shall otherwise be interpreted in accordance with the term “beneficial ownership” as defined in Rule 13d-3 adopted by the SEC under the Exchange
Act. The terms “Beneficially Own” and “Beneficially Owned” shall have a correlative meaning. 
 “BRP Entity” is defined in the recitals. 
 “Business
Day” means any day on which banking institutions are open in the City of Boston. 
 “Closing” is
defined in Section 1. 
 “Closing Date” is defined in Section 1. 

“Common Stock” is defined in the recitals to this Agreement. 

“Company” means the Company’s Common Stock, $0.001 par value per share. 

“Company Bylaws” is defined in Section 2(a). 

“Company Charter” is defined in Section 2(a). 

“Company Intellectual Property” is defined in Section 2(m). 

“Company SEC Documents” is defined in Section 2(f). 

“Contract” is defined in Section 2(c)(i). 
 “Disclosure Schedule” is defined in Section 2. 

“Environmental Law” is defined in Section 2(k). 

“Environmental Permits” is defined in Section 2(k). 

“Evaluation Date” is defined in Section 2(q). 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor federal statute and the rules and
regulations of the SEC promulgated thereunder, all as the same shall be in effect from time to time. 
 “Existing
Shares” means the (i) 3,000,000 shares of Common Stock Beneficially Owned by Beacon as of the Effective Date and (ii) 3,000,000 shares of Common Stock Beneficially Owned by Rosebay as of the Effective Date, issued pursuant to the
Original Securities Purchase Agreement. 
 “Extraordinary Transaction” is defined in Section 6(i)(iii)(B).

  
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 “Future SEC Filings” is defined in Section 6(e). 

“GAAP” means United States generally accepted accounting principles. 

“Governmental Entity” is defined in Section 2(c)(ii). 

“Hazardous Substance” is defined in Section 2(k). 

“Indebtedness” shall mean (a) any liabilities for borrowed money or amounts owed in excess of $100,000 (other than
trade accounts payable incurred in the ordinary course of business), (b) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others, whether or not the same are or should be reflected in the
Company’s balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (c) the present value of any lease
payments in excess of $100,000 due under leases required to be capitalized in accordance with GAAP. 
 “Intellectual
Property” means trademarks, trade names, trade dress, service marks, copyrights, domain names, and similar rights (including registrations and applications to register or renew the registration of any of the foregoing), patents and patent
applications, trade secrets, rights of privacy and publicity, moral rights, and any other similar intellectual property rights. 

“Intellectual Property License” means any written license, permit, authorization, approval, Contract or consent granted,
issued by or with any Person relating to the use by Company or its Subsidiary of Intellectual Property. 
 “Knowledge
of the Company,” “Knowledge of the Company or its Subsidiary” or any like expression means the actual knowledge of the executive officers and vice presidents of the Company and/or Subsidiary and the knowledge that would be
reasonably expected to be known by such individuals in the ordinary and usual course of the performance of their professional responsibilities to the Company and/or Subsidiary. 

“Lien” is defined in Section 2(c)(i). 
 “Line of Credit Agreement” means the Line of Credit Agreement dated November 19, 2008 by and between the Company and Purchaser. 

“Line of Credit Notes” has the meaning set forth in the Line of Credit Agreement. 

“Material Adverse Effect” on or with respect to an entity (or group of entities taken as a whole) means any state of
facts, event, change or effect that has had, or would reasonably be expected to have, a material adverse effect on (a) the results of business, properties, results of operations or financial condition of such entity (or, if with respect
thereto, of such group of entities taken as a whole), 

  
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(b) the ability of such entity (or group of entities) to consummate the transactions and perform in any material respect on a timely basis its obligations contemplated under this Agreement,
or (c) the legality, validity or enforceability of this Agreement. 
 “Material Contract” is defined in
Section 2(j)(i). 
 “Maximum Percentage” is defined in Section 5(a). 

“MICL Termination Agreement” means that certain Termination and Revised Relationship Agreement entered into as of the
Effective Date by and between the Company and Mundipharma International Corporation Limited, a Bermuda corporation. 

“Nasdaq” means the NASDAQ Stock Market. 
 “New Shares” is defined in Section 1. 
 “Original
Securities Purchase Agreement” means that certain Securities Purchase Agreement, dated November 19, 2008, between the Company, the Purchaser and Purdue. 
 “Permit” all permits, licenses, registrations, certificates, orders or approvals from any Governmental Entity. 
 “Permitted Liens” means (a) those Liens (A) securing debt set forth on Schedule 9, (B) for Taxes not yet due or payable or being contested in good faith and for
which adequate reserves have been established in accordance with GAAP, (C) that constitute mechanics’, carriers’, workmen’s or like liens, liens arising under original purchase price conditional sales contracts and equipment
leases with third parties entered into in the ordinary course, (D) Liens incurred or deposits made in the ordinary course of business consistent with past practice in connection with workers’ compensation, unemployment insurance and social
security, retirement and other legislation, (E) easements, covenants, declarations, rights or way, encumbrances, or similar restrictions in connection with real property owned by the Company or its Subsidiary that do not materially impair the
use of such real property by the Company and its Subsidiary, and in the case of Liens described in clauses (B), (C), (D) or (E) that, individually or in the aggregate, would not have a Material Adverse Effect on the Company and its
Subsidiary, taken as a whole; and (b) with respect to Company Intellectual Property, (A) the joint ownership of any Company Intellectual Property by Company or its Subsidiary, on the one hand, and any other Person(s) (each such Person, a
“Co-Owner”), on the other hand, set forth on Schedule 9, (B) licenses under the Company Intellectual Property granted by Company, its Subsidiary, any Co-Owner or any licensee of the foregoing set forth on Schedule
9 or (C) rights to use Company Intellectual Property granted by the Company or its Subsidiary under reasonable and customary service agreements, clinical trial agreements, 

  
 - 27 -

 
consulting agreements, material transfer agreements and confidentiality agreements entered into in the ordinary course of business. 

“Person” means any individual, partnership, joint venture, corporation, limited liability company, trust, unincorporated
organization, government or department or agency of a government or other entity. 
 “Post Closing Shares” is
defined in Section 6(i)(i). 
 “Purchase Price” is defined in Section 1. 

“Purchaser” is defined in the recitals to this Agreement. 

“Purdue” means Purdue Pharmaceutical Products L.P., a Delaware limited partnership. 

“Purdue Termination Agreement” means that Termination and Revised Relationship Agreement entered into as of the
Effective Date by and between the Company and Purdue. 
 “Registration Statement” means the registration
statements on Form S-3 (or any successor form related to secondary offerings) required to be filed hereunder and any additional registration statements contemplated by Section 4, including (in each case) the prospectus, amendments and
supplements to such registration statement or prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in such registration statement.

 “Registrable Shares” is defined in Section 4.1. 

“Representative” shall mean any director, officer or employee of a BRP Entity or an Associated Company. 

“Rights Agreement” means the Rights Agreement between Discovery Partners International, Inc. (“DPI”),
and American Stock Transfer & Trust Company (“Rights Agent”) dated February 13, 2003, as amended by the First Amendment to Rights Agreement between DPI and Rights Agent dated April 10, 2006 and the Second
Amendment to Rights Agreement. 
 “SEC” means the Securities and Exchange Commission. 

“Second Amendment to Rights Agreement” means that Second Amendment to the Rights Agreement between the Company and
American Stock Transfer & Trust Company, LLC dated November 19, 2008. 
 “Securities Act” means
the Securities Act of 1933, as amended, or any successor federal statute, and the rules and regulations of the SEC promulgated thereunder, all as the same shall be in effect from time to time. 

  
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 “Shares” means all shares of Common Stock currently held or acquired in
the future by any BRP Entity or an Associated Company, including the New Shares and Existing Shares. 

“Subsidiary” means Infinity Discovery, Inc., a wholly-owned subsidiary of the Company. 

“Termination Agreements” shall mean collectively the MICL Termination Agreement and the Purdue Termination Agreement.

 “Underwritten Offering” is defined in 4.5(a). 

(b) The definitions of the terms herein apply equally to the singular and plural forms of the terms defined. Whenever the context may
require, any pronoun will include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” will be deemed to be followed by the phrase “without limitation.”
Unless the context requires otherwise, (A) any definition of or reference to any agreement, instrument or other document herein will be construed as referring to such agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or therein), (B) any reference to any laws or regulations herein will be construed as referring to such laws and
regulations as from time to time enacted, repealed or amended, (C) any reference herein to any Person will be construed to include the Person’s successors and assigns, (D) the words “herein”, “hereof” and
“hereunder”, and words of similar import, will be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (E) any reference herein to the words “mutually agree” or “mutual
written agreement” will not impose any obligation on either party to agree to any terms relating thereto or to engage in discussions relating to such terms except as such party may determine in such party’s sole discretion, and
(F) all references herein to Sections, Exhibits or Schedules will be construed to refer to Sections, Exhibits and Schedules of this Agreement. 
 10. Miscellaneous 
 10.1 Severability. If any term, provision,
covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect
and shall in no way be affected, impaired or invalidated. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants, and restrictions without including any of
such which may be hereafter declared invalid, void or unenforceable. 
 10.2 Specific Enforcement. The BRP Entities, on
the one hand, and the Company, on the other, acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached.
It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches of the provisions hereof, including, without limitation, Sections 4.1, 6(b) and 6(i), in the United States District Court for the
Southern District 

  
 - 29 -

 
of New York, Manhattan Courthouse, this being in addition to any other remedy to which they may be entitled at law or equity. 

10.3 Entire Agreement. This Agreement, the Original Securities Purchase Agreement and the Termination Agreements contain the
entire understanding of the parties and their Associated Companies with respect to the transactions contemplated hereby. 
 10.4
Counterparts. This Agreement may be executed in one or more counterparts, each of which, when so executed and delivered, shall be considered to be an original, and all of which counterparts, taken together, will constitute one and the same
instrument even if the parties have not executed the same counterpart. Signatures provided by facsimile or electronic transmission will be deemed to be original signatures. 
 10.5 Notices. All notices and other communications required or permitted under this Agreement shall be in writing and addressed to the Company or the BRP Entity, as the case may be, at their
respective addresses set forth below: 
 If to the Company: 
 Infinity Pharmaceuticals, Inc. 
 780 Memorial Drive 

Cambridge, Massachusetts 02139 
 Attn: Adelene Q. Perkins, President 
 Telephone (617) 453-1000 

Facsimile: (617) 453-1001 
 With copies to: 
 Infinity Pharmaceuticals, Inc. 

780 Memorial Drive 
 Cambridge, Massachusetts 02139 
 Attn: Gerald E. Quirk, Esq., General Counsel

 Telephone (617) 453-1000 
 Facsimile: (617) 453-1001 
 and to 

Wilmer Cutler Pickering Hale and Dorr LLP 
 60 State Street 
 Boston, Massachusetts 01209 

Attn: Steven D. Singer, Esq. 
 Telephone (617) 526-6000 
 Facsimile: (617) 526-5000 

If to Purchaser: 
 Purdue Pharma L.P. 
 One Stamford Forum 

201 Tresser Blvd. 

Stamford, CT 06901-3431 

  
 - 30 -

 USA 
 Attn: John Stewart 
 Telephone: (203) 588-7500 

Facsimile: (203) 588-6211 
 If to Beacon: 
 Beacon Company 

c/o Jonathan G. White, Esq. 
 Ogier House 
 The Esplanade 

St. Helier, Jersey JE4 9WG 
 Channel Islands 
 Telephone: (011-44-1534) 504-000 

Facsimile: (011-44-1534) 887-379 
 If to Rosebay: 
 Rosebay Medical Company L.P. 

c/o North Bay Associates 
 14000 Quail Springs Parkway 
 Oklahoma City, Oklahoma 73134 

Attn: Stephen A. Ives 
 Telephone: (405) 936-6240 
 Facsimile: (405) 936-6241 

With copies to: 

Chadbourne & Parke LLP 
 30 Rockefeller Plaza 
 New York, New York 10112 

Attn: Stuart D. Baker 
 Telephone (212) 408-5435 
 Facsimile: (212) 489-7130 

All notices and other communications required or permitted under this Agreement shall be effective upon the earlier of actual receipt thereof by the
person to whom notice is directed or (a) in the case of notices and communications sent by personal delivery or telecopy, one Business Day after such notice or communication arrives at the applicable address or was successfully sent to the
applicable telecopy number, (b) in the case of notices and communications sent by overnight delivery service, at noon (local time) on the second Business Day following the day such notice or communications was delivered to such delivery
service, and (c) in the case of notices and communications sent by United States mail, three days after such notice or communication shall have been deposited in the United States mail. Any notice delivered to a party hereunder shall be sent
simultaneously, by the same means, to such party’s counsel as set forth above. 
 10.6 Amendments. This Agreement
may be amended as to the BRP Entities and their successors and assigns (determined as provided in Section 10.7), and the Company may take any action herein prohibited, or omit to perform any act required to be performed by it, if the

  
 - 31 -

 
Company shall obtain the written consent of the BRP Entities, provided that the Company shall not require the consent of either Beacon or Rosebay with respect to any revisions to Sections
1 through 3 of this Agreement. This Agreement may not be waived, changed, modified, or discharged orally, but only by an agreement in writing signed by the party or parties against whom enforcement of any waiver, change, modification or discharge is
sought or by parties with the right to consent to such waiver, change, modification or discharge on behalf of such party. 

10.7 Successors and Assigns. All covenants and agreements contained herein shall bind and inure to the benefit of the parties
hereto and their respective successors and assigns. This Agreement, and the rights and obligations of the BRP Entities hereunder, may be assigned by a BRP Entity to (a) any person or entity to which Shares are transferred by the BRP Entity, or
(b) to any Associated Company of the BRP Entities, and, in each case, such transferee shall be deemed a “BRP Entity” for purposes of this Agreement; provided that such assignment of rights shall be contingent upon the
transferee providing a written instrument to the Company notifying the Company of such transfer and assignment and agreeing in writing to be bound by the terms of this Agreement. 

10.8 Expenses and Remedies. Whether or not the Closing takes place, all costs and expenses incurred in connection with this
Agreement and the transactions contemplated hereby shall be borne by the party incurring such expense. 
 10.9 Transfer of
Securities. The Purchaser understands and agrees that the New Shares have not been registered under the Securities Act or the securities laws of any state and that they may only be sold or otherwise disposed of in compliance with state and
federal securities laws and as set forth herein. The Purchaser understands and agrees that each certificate representing the New Shares (other than New Shares which have been transferred in a transaction registered under the Securities Act or exempt
from the registration requirements of the Securities Act pursuant to Rule 144 thereunder or any similar rule or regulation) shall bear the following legend: 
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR AN APPLICABLE EXEMPTION TO THE REGISTRATION REQUIREMENTS OF SUCH ACT OR SUCH LAWS.” 
 and the Purchaser agrees to transfer the New Shares only in accordance with the provisions of such legend and as set forth herein. The foregoing legend shall be removed from any New Shares or from the
certificates representing such New Shares, at the request of the holder thereof, at such time as they become eligible for resale pursuant to an effective Registration Statement or Rule 144. Notwithstanding the foregoing and subject to
compliance with any applicable securities laws, the Purchaser may sell, transfer, assign, pledge or otherwise dispose of the New Shares, in whole or in part, to any of their Associated Companies or the Company. Subject to

  
 - 32 -

 
compliance with any applicable securities laws and the conditions set forth in this Section 10.9, if a Purchaser wishes to transfer New Shares, at Purchaser’s request, and subject to
the delivery by Purchaser of such documentation as may be reasonably requested by the Company or its counsel, the Company shall cause its counsel to issue a legal opinion to the Company’s transfer agent if required by the Company’s
transfer agent to effect a transfer of any of the New Shares. 
 10.10 Governing Law. This Agreement shall be governed by
and construed and enforced in accordance with the laws of the State of New York without regard to choice of law and conflicts of law principles. 
 10.11 Publicity. The Company and the BRP Entities will consult and cooperate with each other before issuing, and provide each other the opportunity to review and comment upon, any press release or
otherwise making any public statement with respect to the transactions contemplated by this Agreement. 
 10.12 No Third
Party Beneficiaries. Nothing contained in this Agreement is intended to confer upon any Person other than the parties hereto and their respective successors and permitted assigns, any benefit, right or remedies under or by reason of this
Agreement. 
 10.13 Consent to Jurisdiction. The Company and the BRP Entities irrevocably submit to the personal
exclusive jurisdiction of the United States District Court for the Southern District of New York, Manhattan Courthouse for the purposes of any suit, action or other proceeding arising out of this Agreement or any transaction contemplated hereby
(and, to the extent permitted under applicable rules of procedure, agrees not to commence any action, suit or proceeding relating hereto except in such court). The Company and the BRP Entities further agree that service of any process, summons,
notice or document hand delivered or sent by registered mail to such party’s respective address set forth in Section 10.5 will be effective service of process for any action, suit or proceeding in New York with respect to any matters to
which it has submitted to jurisdiction as set forth in the immediately preceding sentence. The Company and the BRP Entities irrevocably and unconditionally waive any objection to the laying of venue of any action, suit or proceeding arising out of
this Agreement or the transactions contemplated hereby in the United States District court for the Southern District of New York, Manhattan Courthouse, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in
such court that any such action, suit or proceeding brought in such court has been brought in an inconvenient forum. 

[Signature Pages Follow] 

  
 - 33 -

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

			
	INFINITY PHARMACEUTICALS, INC.
		
	By:	 	/s/ Adelene Q. Perkins
		 	Adelene Q. Perkins
		 	President and Chief Executive Officer

  

			
	PURDUE PHARMA L.P.
		
	By:	 	Purdue Pharma Inc., its general partner
		
	By:	 	/s/ Stuart D. Baker 
		 	Stuart D. Baker
		 	 Executive Vice President,

Counsel to the Board

  

			
	And solely with respect to Sections 4 through 10 in consideration of the obligations of the Company in favor of such following BRP Entities set forth herein and in
the Purdue Termination Agreement and the MICL Termination Agreement:

  

			
	BEACON COMPANY
		
	By:	 	/s/ Anthony M. Roncalli
		 	Anthony M. Roncalli
		 	Assistant Secretary

  

			
	ROSEBAY MEDICAL COMPANY L.P.
		
	By:	 	Rosebay Medical Company, Inc.,
its general partner
		
	By:	 	/s/ Anthony M. Roncalli
		 	 Anthony M. Roncalli

Vice President

 [Signature Page to Securities Purchase Agreement] 

 EXHIBIT A 

FORM OF LEGAL OPINION 

  
 - 35 -

  
 

 
  
 

 

                    
      , 2012 
 Purdue Pharma L.P. 
 One Stamford Forum 
 201 Tresser Blvd. 
 Stamford, CT 06901-3431 
  

	Re:	Infinity Pharmaceuticals, Inc. 

 Ladies
and Gentlemen: 
 This opinion is being furnished pursuant to Section 7.3(e) of the Securities Purchase Agreement, dated as
of July 17, 2012 (the “Agreement”), by and among Infinity Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and Purdue Pharma L.P. (the “Purchaser”) and, solely with respect to Sections 4 through 10 of
the Agreement, Beacon Company and Rosebay Medical Company L.P. Capitalized terms used herein and not otherwise defined shall have the respective meanings ascribed to them in the Agreement. 

We have acted as counsel to the Company in connection with the preparation, execution and delivery of the Agreement. As such counsel, we
have examined and are familiar with and have relied upon the following documents: 
  

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

  

	 	(b)	a Certificate of the Secretary of State of the State of Delaware, dated
                           , 2012, attesting to the continued legal existence and corporate good standing
of the Company in Delaware (the “Company Domestic Certificate”); 

  

	 	(c)	a Certificate of the Secretary of State of the Commonwealth of Massachusetts, dated
                           , 2012, attesting to the good standing and due qualification of the Company to
transact business in Massachusetts (the “Company Foreign Qualification Certificate”); 

  

	 	(d)	a Certificate of the Secretary of State of the State of Delaware, dated
                           , 2012, attesting to the continued legal existence and corporate good standing
of Infinity Discovery, Inc. (the “Subsidiary”) in Delaware (the “Subsidiary Domestic Certificate”); 

  

	 	(e)	a Certificate of the Secretary of State of the Commonwealth of Massachusetts, dated
                           , 2012, attesting to the good standing and due qualification

  
 

 

 Purdue Pharma L.P. 
                            , 2012 

Page 2 
  

 
of the Subsidiary to transact business in Massachusetts (the “Subsidiary Foreign Qualification Certificate”); 

 

	 	(f)	the Agreement; and 

  

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

 In our examination of
the documents described above, we have assumed the genuineness of all signatures, the legal capacity of all individual signatories, the completeness of all corporate and stock records provided to us, the authenticity of all documents submitted to us
as originals, the conformity to original documents of all documents submitted to us as copies, and the authenticity of the originals of such latter documents. 
 In rendering this opinion, we have relied, as to all questions of fact material to this opinion, upon certificates of public officials and officers of the Company and upon the representations and
warranties made by the Purchaser and the Company in the Agreement. We have not attempted to verify independently such facts. We have not conducted a search of any electronic databases or the dockets of any court, administrative or regulatory body,
agency or other filing office in any jurisdiction. 
 For purposes of this opinion, we have assumed that the Agreement has been
duly authorized, executed and delivered by all parties thereto other than the Company, and that all such other parties have all requisite power and authority to effect the transactions contemplated by the Agreement. We have also assumed that the
Agreement is the valid and binding obligation of each party thereto other than the Company and is enforceable against such other parties in accordance with its terms. We do not render any opinion as to the application of any federal or state law or
regulation to the power, authority or competence of any party to the Agreement other than the Company. 
 For purposes of this
opinion, we have assumed that the Board of Directors of the Company has complied with its fiduciary duties in connection with the transactions contemplated by the Agreement. 
 Our opinions set forth below are qualified to the extent that they may be subject to or affected by (i) applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar
laws relating to or affecting the rights of creditors generally, (ii) statutory or decisional law concerning recourse by creditors to security in the absence of notice or hearing, (iii) duties and standards imposed on creditors and parties
to contracts, including, without limitation, requirements of good faith, reasonableness and fair dealing, and (iv) general equitable principles. We express no opinion as to the availability of any equitable or specific remedy upon

 Purdue Pharma L.P. 
                            , 2012 

Page 3 
  

 
any breach of any of the agreements as to which we are opining herein, or any of the agreements, documents or obligations referred to therein, or to the successful assertion of any equitable
defenses, inasmuch as the availability of such remedies or the success of any equitable defense may be subject to the discretion of a court. We are expressing no opinion herein as to the enforceability of Section 4.6 of the Agreement. We are
expressing no opinion herein with respect to compliance by the Company with state securities or “blue sky” laws, or with any state or federal securities antifraud laws. 

We also express no opinion herein as to any provision of any agreement (a) which may be deemed to or construed to waive any right of
the Company, (b) to the effect that rights and remedies are not exclusive, that every right or remedy is cumulative and may be exercised in addition to or with any other right or remedy and does not preclude recourse to one or more other rights
or remedies, (c) relating to the effect of invalidity or unenforceability of any provision of the Agreement on the validity or enforceability of any other provision thereof, (d) requiring the payment of penalties, consequential damages or
liquidated damages, (e) which is in violation of public policy, including, without limitation, any provision relating to non-competition and non-solicitation or relating to indemnification and contribution with respect to securities law
matters, (f) purporting to indemnify any person against his, her or its own negligence or intentional misconduct, (g) which provides that the terms of the Agreement may not be waived or modified except in writing or (h) relating to
choice of law or consent to jurisdiction. 
 Our opinions expressed in paragraph 1 below, insofar as they relate to the
valid existence, due qualification and good standing of the Company, are based solely on the Company Domestic Certificate and the Company Foreign Qualification Certificate and are limited accordingly, and, as to such matters, our opinions are
rendered as of the respective dates of such certificates. Our opinions expressed in paragraph 1 below, insofar as they relate to the valid existence, due qualification and good standing of the Subsidiary, are based solely on the Subsidiary
Domestic Certificate and the Subsidiary Foreign Qualification Certificate and are limited accordingly, and, as to such matters, our opinions are rendered as of the respective dates of such certificates. We express no opinion as to the tax good
standing of the Company or the Subsidiary in any jurisdiction. 
 For purposes of our opinions in paragraphs 5 and 6 below, we
have relied upon representations made by the Purchaser in Section 3 of the Agreement, and have assumed (without any independent investigation) the accuracy of such representations. For purposes of our opinions in paragraphs 5 and 6 below, we
have also assumed that in connection with the offer and sale of securities to the Purchaser, neither the Company nor any person acting on its behalf has engaged in any form of “general solicitation or general advertising” within the
meaning contemplated by Rule 502 (c) of Regulation D. 
 We are opining herein solely as to the state laws of the State of
New York, the statutes codified as 8 Del. C. §§101-398 and known as the General Corporation Law of the State of Delaware (the “DGCL Statute”) and the federal laws of the United States of America. To the

 Purdue Pharma L.P. 
                            , 2012 

Page 4 
  

 
extent that any other laws govern any of the matters as to which we are opining below, we have assumed, with your permission and without independent investigation, that such laws are identical to
the state laws of the State of New York, and we express no opinion as to whether such assumption is reasonable or correct. 

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

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

  

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

  

	 	3.	The New Shares have been duly authorized by all necessary corporate action on the part of the Company, and the New Shares, when issued, sold and delivered against
payment therefor in accordance with the provisions of the Agreement, will be duly and validly issued, fully paid and non-assessable. 

  

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

  

	 	5.	 The execution and delivery by the Company of the Agreement, and the consummation by the Company of the transactions contemplated thereby, do not and
will not (a) violate the provisions of any U.S. federal or New York state law, rule or regulation to which the Company is subject or which is applicable to the 

 Purdue Pharma L.P. 
                            , 2012 

Page 5 
  

	 	
Company; (b) violate the provisions of the Company’s Charter or By-laws; (c) violate any judgment, decree, order or award of any court, governmental body or arbitrator specifically
naming the Company of which we are aware; or (d) with or without notice and/or the passage of time, conflict with or result in the breach or termination of any term or provision of, or constitute a default under, or cause any acceleration
under, or cause the creation of any lien, charge or encumbrance upon the properties or assets of the Company pursuant to, any agreement to which the Company is a party and which is listed on Schedule A hereto. 

 

	 	6.	Based in part on the representations of each of the Purchaser in Section 3 of the Agreement, the offer, issuance and sale of the New Shares pursuant to the
Agreement are exempt from registration under the Securities Act of 1933, as amended. 

  

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

  

	 	8.	Assuming the accuracy of the representations of the Purchaser in Section 3 of the Agreement, no approval or consent of, or registration or filing with, any U.S.
federal or New York state governmental authority is required to be obtained or made by the Company under applicable law in connection with the execution, delivery and performance of the Agreement, except (a) such as have been obtained for any
state “blue sky filings,” (b) a Form D to be filed pursuant to the Securities Act, or (c) any other such filings that may be required by the terms of the Agreement or required or permitted to be made after the date hereof under
applicable federal and state securities laws or as required by the rules and regulations of the NASDAQ Global Select Market. 

  

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

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

 Purdue Pharma L.P. 
                            , 2012 

Page 6 
  

 This opinion is rendered only to the Purchaser, and solely with respect to Sections 4
through 10 of the Agreement, to Beacon Company and Rosebay Medical Company L.P., and is solely for the benefit of the Purchaser in connection with the transactions contemplated by the Agreement. This opinion may not be relied upon by the Purchaser,
Beacon Company or Rosebay Medical Company L.P. for any other purpose, nor may this opinion be provided to, quoted to or relied upon by any other person or entity for any purpose without our prior written consent. 

 

			
	Very truly yours,
	
	 WILMER CUTLER PICKERING
 HALE AND DORR LLP

		
	By:	 	 
		 	Joshua D. Fox, a Partner

 Schedule A 
 Agreements 
 Rights Agreement between Infinity Pharmaceuticals, Inc. and American Stock
Transfer & Trust Company dated February 13, 2003 
 First Amendment to Rights Agreement between Infinity Pharmaceuticals, Inc. and
American Stock Transfer & Trust Company dated April 11, 2006 
 Second Amendment to the Rights Agreement between the Registrant
and American Stock Transfer & Trust Company, LLC dated November 19, 2008 
 Development and License Agreement, dated as of
July 7, 2010, by and between Infinity Pharmaceuticals, Inc. and Intellikine, Inc. 
 Collaboration Agreement by and between MedImmune, Inc.
and Infinity Discovery, Inc. dated as of August 25, 2006 
 Lease Agreement dated July 2, 2002 between Infinity Discovery, Inc. and
ARE-770/784/790 Memorial Drive LLC, as amended by First Amendment to Lease dated March 25, 2003, Second Amendment to Lease dated April 30, 2003, Third Amendment to Lease dated October 30, 2003 and Fourth Amendment to Lease dated
December 15, 2003 
 Fifth Amendment to Lease dated July 8, 2011 between Infinity Pharmaceuticals, Inc. and ARE-770/784/790 Memorial
Drive LLC 
 Sublease dated August 24, 2004 between Infinity Discovery, Inc. and Hydra Biosciences, Inc., together with Consent to Sublease
dated September 16, 2004 by ARE-770/784/790 Memorial Drive LLC, Infinity Discovery, Inc. and Hydra Biosciences, Inc., as amended by First Amendment to Sublease dated October 17, 2005, together with Consent to Amendment to Sublease dated as
of October 31, 2005 by ARE-770/784/790 Memorial Drive LLC and Second Amendment to Sublease dated as of January 9, 2006, together with Consent to Amendment to Sublease dated as of January 26, 2006 by ARE-770/784/790 Memorial Drive LLC,
Infinity Discovery, Inc. and Hydra Biosciences, Inc. 
 Third Amendment to Sublease dated April 17, 2009 between Infinity Discovery, Inc.
and Hydra Biosciences, Inc., together with Consent to Third Amendment to Sublease dated May 5, 2009 by ARE-770/784/790 Memorial Drive LLC, Infinity Discover, Inc. and Hydra Biosciences, Inc. 

Offer Letter between Infinity Discovery, Inc. and Julian Adams dated as of August 19, 2003 
 Amendment to Offer Letter between Infinity Discovery, Inc. and Julian Adams dated as of October 25, 2007 

 Offer Letter between Infinity Discovery, Inc. and Adelene Perkins dated as of February 6, 2002

 Amendment to Offer Letter between Infinity Discovery, Inc. and Adelene Perkins dated as of October 25, 2007 

Pre-Merger Stock Incentive Plan 
 Incentive
Stock Agreements entered into with each of the officers identified on the schedule attached to Exhibit 10.25 to the Company’s Current Report on Form 8-K filed on September 18, 2006 
 Nonstatutory Stock Option Agreements entered into with each of the officers identified on the schedule attached to Exhibit 10.27 to the Company’s Current Report on Form 8-K filed on
September 18, 2006 
 2000 Stock Incentive Plan, as amended by Amendment No. 1 to 2000 Stock Incentive Plan; Amendment No. 2 to
2000 Stock Incentive Plan; Amendment No. 3 to 2000 Stock Incentive Plan; Amendment No. 4 to 2000 Stock Incentive Plan; and Amendment No. 5 to 2000 Stock Incentive Plan 
 2010 Stock Incentive Plan 
 Amendment No. 1 to 2010 Stock Incentive Plan 

Amendment No. 2 to 2010 Stock Incentive Plan

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