Document:

IP Transfer and Waiver Agreement

 Exhibit 10.4 
 AGREEMENT REGARDING INTELLECTUAL PROPERTY 
 AND WAIVER OF PUT OPTIONS 
 This Agreement Regarding Intellectual Property and Waiver of Put Options (this “Agreement”) is effective, made and entered as of June
    , 2009 (the “Agreement Date”) by and between Unidym, Inc., a Delaware corporation (“Unidym”), and TEL Venture Capital, Inc., a Delaware corporation (“TEL”). All capitalized
terms are defined in Article VII. 
 RECITALS 
 A. Unidym and TEL are parties to the Subscription Agreement dated as of November 11, 2008 (the “Subscription Agreement”) pursuant to, among other things, TEL has a Put A Right and Put B Right,
pursuant to which TEL has the right to require that Unidym repurchase the shares of Unidym’s Series C-1 Preferred Stock held by TEL in the event that certain conditions are met. 
 B. Unidym has requested that TEL waive its Put A Right and Put B Right, and TEL has agreed to do so, subject to the terms and conditions set forth
herein, including the transfer and license of certain intellectual property rights and a right to receive a fee on sales of certain CNT and CNT Products by Unidym and its licensees as provided hereunder. 
 AGREEMENT 
 In consideration of the
covenants, promises and representations set forth herein, and for other good and valuable consideration, and intending to be legally bound hereby, the parties agree as follows: 
 ARTICLE I 
 TRANSFER OF EQUIPMENT RELATED IP 
 1.1 Upon the terms and subject to the conditions contained in this Agreement, Unidym shall sell, transfer, convey, assign and deliver, or cause to be
sold, transferred, conveyed, assigned and delivered, to TEL on the Closing Date, and TEL shall acquire from Unidym, free and clear of any Lien, all of Unidym’s right, title and interest in and to the Equipment Related IP as set forth on
Schedule 1.1; provided, however, that the Equipment Related IP shall be co-owned between the parties hereto as identified on such schedule and to the extent and subject to the conditions set forth in Section 1.6 hereof.

 1.2 The closing of the Transactions (the “Closing”) shall take place at the offices of Unidym, on the Agreement Date, or
at such other date (the “Closing Date”) and location as Unidym and TEL agree. 

 1.3 Unidym Deliveries. On the Closing Date, Unidym shall deliver to TEL the following, all of
which shall be in form satisfactory to TEL: 
 (a) the General Assignment and Bill of Sale in substantially the form attached
hereto as Exhibit 1.3(a); 
 (b) Assignments in substantially the form attached hereto as Exhibit 1.3(b) with
respect to the patent and patent applications in the Equipment Related IP, for filing in the United States Patent and Trademark Office and its foreign counterparts; 
 (c) the CNT Products Materials as contemplated by Section 2.2; 
 (d) a copy of the resolution(s) adopted by the Unidym Board authorizing the Transactions; 
 (e) a letter of intent from Continental Carbon Nanotechnologies (“CCNI”) stating that, if Unidym does not meet its obligations
under the CNT Supply Agreement with CCNI, CCNI would enter into discussions, in good faith, to establish a supply agreement with TEL, or TEL Affiliate; 
 (f) binding commitments from (i) one or more third parties to purchase shares of Unidym’s Series C-1 Preferred Stock in the amount of at least $975,000 (including any monies invested from and after
April 23, 2009 in exchange for Series C-1 Preferred Stock, or the conversion into Series C-1 Preferred Stock of any monies provided as bridge loans from and after April 23, 2009 and intra-company accounts payable, up to a maximum of
$100,000, by Unidym to Arrowhead accruing from and after May 13, 2009); and (ii) Arrowhead Research Corporation (“Arrowhead”) to convert to Series C-1 Preferred Stock any outstanding intra-company accounts payable by Unidym, in
each case conditioned only on, and to close concurrently with, the Closing of this Agreement; and 
 (g) such other good and
sufficient instruments of conveyance, assignment and transfer, in form and substance reasonably acceptable to TEL, as shall be effective to vest in TEL good title in its rights to the Equipment Related IP. 
 1.4 TEL Deliveries. On the Closing Date, TEL shall deliver to Unidym the following, all of which shall be in form satisfactory to Unidym:

 (a) the General Assignment and Bill of Sale in substantially the form attached hereto as Exhibit 1.3(a). 

 1.5 Mutual Deliveries. On the Closing Date, the Parties shall execute and deliver such other instruments and documents as
reasonably requested by the Parties to carry out and effect the purpose and intent of this Agreement. 
 1.6 Co-Owned Equipment Related
IP. With respect to the patents and the patent applications (including provisional patent applications) in the Equipment Related IP that will be co-owned by the Parties pursuant to this Agreement (the “Co-Owned Patents”), TEL
and Unidym agree as follows: 
 (a) TEL and Unidym shall cooperate to prosecute and maintain the Co-Owned Patents. 

 (b) TEL and Unidym shall share equally all costs associated with prosecuting and
maintaining the Co-Owned Patents arising and incurred after the Closing Date. If either TEL or Unidym wishes to stop the payment of its share of the maintenance fees or prosecution costs associated with a Co-Owned Patent in any country, the other
Party may take over the payment of such share. The Party discontinuing to pay its share shall transfer to the other Party which continues such payments, its title to, rights and interests in such Co-Owned Patents for the countries concerned. The
rights of third parties under already existing licenses and agreements shall not be prejudiced. 
 (c) TEL shall have the sole
and exclusive right, without the consent of Unidym, to file a lawsuit or otherwise enforce any action using any of the Co-Owned Patents against any TEL Competitor. Unidym shall cooperate as necessary and requested by TEL, including joining of a
lawsuit. TEL shall be responsible for all costs and expenses incurred in connection with such lawsuit or action (including the reasonable costs and expenses incurred by Unidym in cooperating with TEL as requested by TEL) , and shall be entitled to
any and all proceeds resulting from such lawsuit or action, without having to account to Unidym. TEL shall have the further sole and exclusive right, without the consent of Unidym, to grant a license under any of the Co-Owned Patents to any TEL
Competitor and shall be entitled to any and all proceeds (whether in the form of royalties, fees, or otherwise) resulting from such license, without having to account to Unidym. 
 (d) Unidym shall have the sole and exclusive right, without the consent of TEL, to file a lawsuit or otherwise enforce any action using
any of the Co-Owned Patents against any Unidym Competitor. Unidym shall be responsible for all costs and expenses incurred in connection with such lawsuit or action (including the reasonable costs and expenses incurred by TEL in cooperating with
Unidym as requested by Unidym) , and shall be entitled to any and all proceeds resulting from such lawsuit or action, without having to account to TEL. Unidym shall have the further sole and exclusive right, without the consent of TEL, to grant a
license under any of the Co-Owned Patents to any Unidym Competitor and shall be entitled to any and all proceeds (whether in the form of royalties, fees, or otherwise) resulting from such license, without having to account to TEL. 
 (e) Neither Party shall grant a license to, or file a lawsuit or otherwise enforce or attempt to enforce any action using any of the
Co-Owned Patents against a third party that is both a TEL Competitor and a Unidym Competitor without the consent of the other Party. 
 (f) Except as otherwise authorized in clauses (c) and (d) above, neither Party shall grant a license, or file a lawsuit or otherwise enforce or attempt to enforce any action using any of the Co-Owned Patents without the consent of
the other Party. 

 (g) The Parties agree to cooperate in the prosecution of any patent applications
(including any provisional patent applications) of any Co-Owned Patent so that, to the extent reasonably practicable, the claims therein are divided into separate patents or patent applications, as the case may be, that would be solely owned by TEL,
in the case of any patent containing only claims that are related to Equipment or Equipment Process, or solely by Unidym, in the case of any patent that has no claims that are related to Equipment or Equipment Process; provided, however, that any
such division of a patent application shall be approved by both Parties. TEL agrees to assign, transfer and convey to Unidym all of its remaining rights and interest in any resulting patent or patent application that the Parties have agreed should
be solely owned by Unidym, and Unidym agrees to assign, transfer and convey to TEL all of its remaining rights and interest in any resulting patent or patent application that the Parties have agreed should be solely owned by TEL, as provided
hereunder. Each Party further agrees to delivery such instruments of conveyance, assignment and transfer, in form and substance reasonable acceptable to the other Party, as shall be effective to vest in the other Party good title to such patent or
patent application. 
 (h) To the extent it can do so without breaching a contract with a third party, Unidym agree to
promptly disclose to TEL any Intellectual Property related to Equipment or Equipment Process that Unidym may invent after the Closing Date. TEL shall have the right, by giving notice to Unidym no later than three months following the date of such
disclosure, to elect to obtain a world-wide, perpetual, irrevocable, non-terminable, fully paid-up, non-exclusive, transferable, sublicensable right and license of such subsequently invented Intellectual Property, in which case TEL shall be
responsible for the reasonable costs required to prepare, file and prosecute any patent applications and to maintain any issued patents arising from such subsequently invented Intellectual Property. In addition, TEL shall have the exclusive right of
first negotiation to negotiate, for a period of six months, to convert such license into an exclusive but royalty-bearing license with respect to any such subsequently invented Intellectual Property to which TEL has taken a non-exclusive license as
contemplated by the preceding sentence, by giving notice at any time prior to the three- month anniversary of the date that such patent issues, in the case of any such Intellectual Property that is patentable, or prior to the first anniversary of
Unidym’s disclosure as contemplated by this clause (h), in the case of any such Intellectual Property that is not patentable. Unidym agrees not to grant any license to a third party that would be inconsistent with its ability to grant an
exclusive license of any such subsequently invented Intellectual Property to TEL until such time as TEL’s right of first negotiation hereunder has expired or has been waived. 
 (i) TEL shall have the right to assign all or any portion of its rights in the Co-Owned Patents to a TEL Affiliate without the prior
consent of Unidym. 
 ARTICLE II 
 LICENSE OF MATERIALS RELATED IP 
 2.1 Grant of License. Subject to the terms and conditions of this Agreement,
effective as of the Closing, except for the Intellectual Property licensed to Unidym under the 

 
License Agreements, Unidym hereby grants to TEL, a world-wide, perpetual, irrevocable, non-terminable, fully paid-up, royalty-free, non-exclusive,
transferable, sublicensable right and license under all of Unidym’s rights under the CNT Products IP to make, have made, use, import, market, sell and distribute CNT Products solely in the LCD Field and the Solar Field (the “CNT
Products License”). 
 2.2 Deliverables. At the Closing, Unidym shall deliver to TEL a copy of a document entitled
“Unidym Trade Secrets LCD Ink and Film Making” (the “CNT Products Materials”) setting forth the most updated technical information and documentation, including formulas and recipes, for producing CNT Products from CNT for
use in the LCD Field and, to the extent available, the Solar Field. Unidym further agrees to deliver to TEL, on no less frequent than a quarterly basis, any updated version of the CNT Products Materials to ensure that the CNT Products Materials then
in TEL’s possession contains the most updated technical information and documentation then held by Unidym. 
 2.3 Covenant Not to
Exercise Certain Rights. Notwithstanding the foregoing grant of the CNT Products License, TEL agrees that it will not exercise its rights under the CNT Products License (other than its Non-Commercial Rights), unless and until there has been a
Release Event. “Release Event” shall mean any of the following: 
 (a) A receiver, trustee, or similar
officer is appointed for the business or property of Unidym, or Unidym files a petition in bankruptcy, files a petition seeking any reorganization, makes an arrangement, composition, or similar relief under any law regarding insolvency or relief for
debtors, or makes an assignment for the benefit of creditors; 
 (b) any involuntary petition or proceeding under bankruptcy
or insolvency laws is instituted against Unidym and not stayed, enjoined, or discharged within 60 days; 
 (c) any similar or
analogous proceedings or event to those in clauses (a) to (b) above occurs in respect of Unidym within any jurisdiction outside the USA; 
 (d) Unidym ceases to carry on its Inks/Films Business; 
 (e) Unidym takes any action to
liquidate and dissolve; or 
 (f) Unidym generally fails to pay its debts and obligations when due (after taking into account
any cure periods) in the ordinary course of its business; 
 provided, that in the case of a Release Event described in clauses (d) and (f) above,
no Release Event shall be deemed to have occurred unless and until such determination has been made pursuant to the following procedures: 
 (x) TEL shall send a notice to Unidym indicating its good faith belief that such a Release Event has occurred, together with any supporting evidence; 
 (y) Unless within 10 Business Days after the date of such notice TEL receives a counter-notice in writing from Unidym stating that in its
view no such Release 

 
Event has occurred, together with any supporting evidence, or, if appropriate, that the event or circumstance giving rise to the Release Event has been
rectified as shown by documentation in support thereof, the Release Event shall deemed to have occurred; and 
 (z) If TEL
receives such a counter-notice within the 10 Business Day period set forth above, TEL and Unidym agree to discuss in good faith a resolution to the issue of whether or not a Release Event has occurred and remains unrectified. If the parties are not
able to resolve their dispute regarding whether or not such a Release Event has occurred within 90 days after the date of such counter-notice, either Party may invoke the dispute resolution procedure set forth in Section 8.9(c) hereof;

 Notwithstanding the foregoing, upon (a) Unidym achieving Net Sales of CNT Related Products of $10 million or more during a 12-month period; or
(b) the acquisition of a controlling interest in Unidym by a well-capitalized chemical, materials or similar company with the capacity and strategic goal to engage in the Inks/Films Business, as determined by TEL in its reasonable discretion,
the CNT Products License shall be deemed to have been revised to be limited to the Non-Commercial Rights only, and the occurrence of a Release Event at any time thereafter shall have no effect on the scope of the CNT Products License. 
 2.4 Assignment to TEL Affiliate. TEL shall have the right to assign all or any portion of the licensed rights granted pursuant to this Article
II to a TEL Affiliate without the prior consent of Unidym. 
 2.5 Confidentiality. TEL agrees to maintain in confidence and not to
disclose to any third party the CNT Products Materials, other than to its employees or contractors (or those of a TEL Affiliate or a permitted sublicensees or assignees, if any) who need to know the same in order to use the CNT Products Materials
within the scope of the CNT Products License or for any other purpose authorized in writing by Unidym. In the event that CNT Products Materials is disclosed to TEL’s employees or contractors (or those of its Affiliates and permitted
sublicensees or assignees), TEL shall ensure that they are bound by the same confidentiality obligations as are contained in this Section 2.5. The foregoing obligation shall not apply to: 
 (a) Information that is known to TEL or a TEL Affiliate prior to the time of disclosure to TEL, as evidenced by written records;

 (b) Information disclosed to TEL by a third party that has no obligation to maintain the confidentiality thereof;

 (c) Information that is independently developed by TEL or one of its Affiliates without the use of the CNT Products
Materials; 
 (d) Information that becomes part of the public domain through no fault of TEL or a breach of the
confidentiality obligations set forth herein; or 
 (e) Information that is required to be disclosed by order of a
Governmental Entity, provided that TEL shall use its commercially reasonable efforts to notify Unidym prior to the disclosure of such information and, if requested by Unidym, cooperate with Unidym to seek to obtain confidential treatment of such
information by such Governmental Entity. 

 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES OF UNIDYM 
 Unidym represents and warrants to TEL as follows:

 3.1 Organization of Unidym. Unidym is a corporation duly organized, validly existing and in good standing under the laws of the
State of Delaware. Unidym has the requisite corporate power and authority to own, lease and operate its properties and to carry on its business as now being conducted. 
 3.2 Authority. 
 (a) Unidym has all requisite corporate power and authority to enter
into this Agreement, and each other agreement, certificate or document contemplated thereby or hereby (collectively with the Agreement, the “Transaction Agreements”) to which it is or will be a party and to consummate the
Transactions. Unidym’s Board of Directors has approved the Transaction Agreements to which it is or will be a party and the Transactions. The execution, delivery and performance by Unidym of this Agreement and the other Transaction Agreements
to which it is or will be a party and the consummation by Unidym of the Transactions have been duly authorized by all necessary corporate action on the part of Unidym and no further action is required on the part of Unidym to authorize the
Transaction Agreements to which it is or will be a party and the Transactions. The approvals of Unidym’s Board of Directors have not been revoked, rescinded or amended. 
 (b) This Agreement has been, and each of the other Transaction Agreements to which Unidym is a party will be at the Closing Date, duly
executed and delivered by Unidym and, assuming the due authorization, execution and delivery by the other parties hereto and thereto (other than Unidym), this Agreement constitutes, and in the case of such Transaction Agreements they will at the
Closing Date constitute, valid and binding obligations of Unidym, enforceable against Unidym in accordance with their respective terms, except as such enforceability may be subject to applicable bankruptcy, reorganization, insolvency, moratorium and
similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity. 
 3.3 No Conflict.
The execution and delivery by Unidym of this Agreement and each other Transaction Agreement to which Unidym is a party, and the consummation of the Transactions, do not and will not conflict with or result in any violation of or default under (with
or without notice or lapse of time, or both) or give rise to a right of termination, cancellation or acceleration of any obligation or loss of any benefit under, or result in the creation of any lien upon any of Unidym’s properties or assets
(tangible or intangible) under (i) any provision of Unidym’s Certificate of Incorporation, By-Laws or other organizational documents of Unidym, (ii) any material contract to which Unidym is a party or to which it or any of its
properties or 

 
assets (whether tangible or intangible) is subject or bound, or (iii) any law applicable to Unidym or any of its properties or assets (whether tangible
or intangible), except, in the case of (ii) or (iii), for such conflicts, violations or defaults as would not individually or in the aggregate reasonably be expected to be material to Unidym’s ability to consummate the Transactions to
which they are a party in a timely manner. 
 3.4 Consents. No consent, waiver, approval, order or authorization of, or registration,
declaration or filing with, or notice to any Governmental Entity, is required by, or with respect to, Unidym in connection with the execution and delivery of this Agreement and the other Transaction Agreements to which Unidym is a party or the
consummation of the Transactions. 
 3.5 Solvency. 
 (a) Unidym has not, at any time, (i) made a general assignment for the benefit of creditors, (ii) filed, or had filed against
it, any bankruptcy petition or similar filing, (iii) suffered the attachment or other judicial seizure of all or a substantial portion of its assets, (iv) admitted in writing its inability to pay its debts as they become due, or
(v) been convicted of, or pleaded guilty or no contest to, any felony. 
 (b) Unidym is not insolvent. 
 3.6 Absence of Liens. 
 (a) Unidym has good and valid title to all of the Equipment Related IP, free and clear of any Liens. 
 3.7 Intellectual
Property. 
 (a) The Equipment Related IP constitutes all of the Intellectual Property rights owned by Unidym that relate
to Equipment or Equipment Process, and Unidym has the right to transfer such Equipment Related IP to TEL as contemplated hereunder. 
 (b) All of the Equipment Related IP is exclusively owned by Unidym, and no other Person has any rights therein. Except for the licenses granted pursuant to the joint development agreements with Samsung Electronics and LG Display, Unidym has
not granted a license or similar right (including a covenant not to sue), or agreed to grant such a license or similar right, to any third party of any of the Equipment Related IP. To Unidym’s Knowledge, the Equipment Related IP was created
solely by employees of Unidym acting within the scope of their employment, or by third parties, all of which employees and third parties have validly and irrevocably assigned all of their rights, including Intellectual Property rights therein, to
Unidym. 
 (c) Unidym has no Knowledge of any facts, circumstances or information that would render any Equipment Related IP
invalid or unenforceable or would adversely affect any pending application for any Registered Intellectual Property included in the Equipment Related IP. All necessary registration, maintenance and renewal fees in connection with such Registered
Intellectual Property have been paid. 

 (d) Unidym has taken commercially reasonable measures consistent with industry standards
to protect the proprietary nature of the Equipment Related IP and to maintain in confidence all trade secrets and confidential information included in the Equipment Related IP. 
 (e) The CNT Products Materials contain the most recently updated technical information and documentation held by Unidym that relates to
the CNT Products IP, and is sufficient to enable TEL to exercise all of its rights under the CNT Products License in the LCD Field and, to the extent available, the Solar Field. The CNT Products IP constitutes all of the Intellectual Property rights
owned or licensed by Unidym that relate to the production of CNT Products from CNT for use in the LCD Field. 
 3.8 Litigation. There
is no material action, suit or proceeding of any nature pending or, to Unidym’s Knowledge, threatened against Unidym or any of their respective properties and Unidym is not subject to any outstanding order of any Governmental Entity that, in
either case, would be reasonably likely, individually or in the aggregate, to (a) prevent or materially delay the consummation of the Transactions, (b) otherwise prevent or materially delay performance by Unidym of any of their material
obligations under this Agreement, or (c) which would reasonably be expected to have, individually or in the aggregate, a material adverse effect on the business, assets, properties, liabilities, obligations, financial condition, operations or
results of operations of Unidym. 
 3.9 Brokers’ and Finders’ Fees. Unidym has not incurred, or will incur, directly or
indirectly, any liability for brokerage or finders’ fees or agents’ commissions or any similar charges in connection with this Agreement or any of the other Transactions. 
 3.10 Representations Exclusive. Except for the representations and warranties expressly set forth in this Article III or any certificates
furnished by Unidym or an officer of the Unidym pursuant to this Agreement, neither Unidym nor any other Person makes any express or implied representations or warranties on behalf of Unidym. 
 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES BUYER 
 TEL represents and warrants to Unidym as follows: 
 4.1 Organization of TEL. TEL is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. TEL has the full power and authority to own its properties and to carry on its business as
now being conducted. 
 4.2 Authority. 
 (a) TEL has all requisite power and authority to enter into this Agreement and the other Transaction Agreements to which it is a party and to consummate the Transactions. The Board of Directors of TEL
has approved the Transaction Agreements to which it is or will be a party and the Transactions. The execution and delivery of this Agreement and the other Transaction Agreements to which TEL is a party and the 

 
consummation of the Transactions have been duly authorized by all necessary action on the part of TEL. The approvals by TEL’s Board of Directors have
not been revoked, rescinded or amended. 
 (b) This Agreement has been, and each of the other Transaction Agreements to which
TEL is a party will be at the Closing Date, duly executed and delivered by TEL and, assuming the due authorization, execution and delivery by the other parties hereto and thereto (other than TEL), this Agreement constitutes, and in the case of the
other Transaction Agreements they will at the Closing Date constitute, valid and binding obligations of TEL, enforceable against TEL in accordance with their respective terms, except as such enforceability may be subject to applicable bankruptcy,
reorganization, insolvency, moratorium and similar Laws affecting the enforcement of creditors’ rights generally and by general principles of equity. 
 4.3 No Conflict. The execution and delivery by TEL of this Agreement and the other Transaction Agreements to which either is a party, and the consummation of the Transactions, do not and will not conflict with
or result in any violation of or default under (with or without notice or lapse of time, or both) or give rise to a right of termination, cancellation, modification or acceleration of any obligation or loss of any benefit under (i) any
provision of the TEL Certificate of Incorporation or TEL’s By-Laws, (ii) any material contract to which TEL is a party or to which it or any of its properties or assets (whether tangible or intangible) is subject or bound, or
(iii) any Law applicable to TEL or any of its properties (whether tangible or intangible) or assets, except, in the case of (ii) or (iii), for such conflicts, violations or defaults as would not individually or in the aggregate reasonably
be expected to be material to TEL’s ability to consummate the Transactions to which they are a party in a timely manner. 
 4.4
Consents. No consent, waiver, approval, order or authorization of, or registration, declaration or filing with, or notice to, any Governmental Entity, is required by or with respect to TEL in connection with the execution and delivery of this
Agreement and the other Transaction Agreements by TEL or the consummation by TEL of the Transactions. 
 4.5 Litigation. There is no
material action, suit or proceeding of any nature pending or, to the Knowledge of TEL, threatened, against TEL or any of their respective properties and TEL is not subject to any outstanding order of any Governmental Entity that, in either case,
would be reasonably likely, individually or in the aggregate, to (a) prevent or materially delay the consummation of the Transactions, (b) otherwise prevent or materially delay performance by TEL of any of their material obligations under
this Agreement, or (c) which would reasonably be expected to have, individually or in the aggregate, a material adverse effect on the business, assets, properties, liabilities, obligations, financial condition, operations or results of
operations of TEL. 
 4.6 Brokers’ and Finders’ Fees. TEL has not incurred, nor will incur, directly or indirectly, any
liability for brokerage or finders’ fees or agents’ commissions or any similar charges in connection with this Agreement or any of the other Transactions. 

 ARTICLE V 
 ADDITIONAL COVENANTS 
 5.1 Amendment and Waiver of Put Rights. 
 (a) Subject to the terms and conditions set forth herein, and effective on the Closing Date, TEL and Unidym agree to amend Section 5
of the Subscription Agreement as follows: 
 (i) Section 5.1(a) of the Subscription Agreement is amended to read as follows in its
entirety: 
 “Notice. In the event that the Company and the Investor do not enter into a joint development agreement by
July 31, 2009, the Investor shall have until 5:00 p.m. (California Time) on August 31, 2009 (such time, the “Put A Deadline”), to deliver a written notice to the Company (the “Put A Notice”),
requesting that the Company repurchase all (but no less than all) of the Shares then held by the Investor that were purchased under this Agreement or issued under Section 4 hereof, as applicable. The Investor shall have no rights under this
Section 5.1 in the event that (i) the Company and the Investor enter into a joint development agreement by July 31, 2009, or (ii) the Investor fails to deliver a Put A Notice to the Company by the Put A Deadline.”

 (ii) Section 5.2(a) of the Subscription Agreement is amended to read as follows in its entirety: 
 “Notice. In the event that the Company has failed to achieve the Cash Flow Requirement (as defined below) by July 31, 2009, the Investor
shall have until 5:00 p.m. (California Time) on August 31, 2009 (such time, the “Put B Deadline”), to deliver a written notice to the Company (the “Put B Notice”), requesting that the Company
repurchase all (but no less than all) of the Shares then held by the Investor that were purchased under this Agreement. The Investor shall have no rights under this Section 5.2 in the event that (i) the Company has achieved the Cash Flow
Requirement by July 31, 2009, or (ii) the Investor fails to deliver a Put B Notice to the Company by the Put B Deadline. “Cash Flow Requirement” shall mean the receipt by the Company of cash proceeds of at least $7,000,000 during
the period from the date of this Agreement through July 31, 2009 from any combination of (i) the sale by the Company of any equity securities of the Company (other than the sale of the Shares); (ii) the sale or license by the Company
of some or all of its assets and/or business operations in materials for anti-static polymers and other applications such as carbon fibers; (iii) the sale by the Company of its shares in Nanoconduction, Ensysce Biosciences, or Nexeon
MedSystems; or (iv) net cash flow from the Company’s operations during such period (it being understood that if such net cash flow is negative, then the amount for purposes of this clause (iv) shall be zero).” 

 (b) Subject to the terms and conditions set forth herein, and effective only from and
after the Funding Date, TEL agrees to waive forever its Put A Right and its Put B Right with respect to any shares of Unidym’s Series C-1 Preferred Stock held by TEL as of the Funding Date. The term “Funding Date” shall mean the date
that Unidym has notified TEL that Unidym has received at least $1,500,000 after the Closing Date from purchasers of shares of its Series C-1 Preferred Stock (after including the amounts described in Section 1.3(f) hereof), together with
evidence reasonably satisfactory to TEL showing that such amount has been received by Unidym. The agreement of TEL to waive its Put A Right and its Put B Right set forth in this Section 5.1(b) shall be null and void if the Funding Date has not
occurred on or before July 31, 2009. 
 5.2 Exclusivity. For a period of ten (10) years from the date of closing, TEL shall
have the exclusive right to work with Unidym to develop Equipment and accordingly, Unidym agrees that during such period it shall not, either independently or jointly with a party other than TEL or a TEL Affiliate designated by TEL undertake to, or
authorize or subcontract a party other than TEL Affiliate to, design, exchange specifications or other confidential information relating to, conduct trials or other tests, or otherwise develop, market or sell such Equipment (including Equipment
Process), or agree to or enter into any discussions with respect to any of the above. Nothing herein is intended to limit the activities of TEL with regard to the Equipment, Equipment Process, or CNT Products. 
 5.3 Fee on Sales. 
 (a) TEL shall be entitled to receive a fee (the “CNT Fee”) equal to two percent (2%) of Net Sales of CNT Related Products on a worldwide basis for a period of ten years from the date of first sale of CNT or CNT
Products for the LCD Field or the Solar Field, or until terminated in accordance with Section 5.3(k) below (such period being the “Fee Period”), regardless of whether the CNT or CNT Products are used in Equipment
manufactured by TEL Affiliate and regardless of whether the CNT or CNT Products are distributed by TEL. 
 (b) Unidym shall
deliver to TEL within forty-five (45) days after the end of each calendar quarter, any part of which is within the Fee Period, a written report, certified by the chief financial officer of Unidym and setting forth in reasonable detail the
calculation of the CNT Fee due to TEL for such calendar quarter pursuant to this Section 5.3, including, without limitation: 
 (i) Net Sales of CNT Related Products, indicating separate totals by seller (i.e. listing separately sales by Unidym and, to the extent applicable, any assignee, Affiliates and any Inks Licensee), the type of CNT or
CNT Product sold, whether the CNT or CNT Products are for use in the LCD Field or Solar Field, customer, and country in which the sales occurred; and 

 (ii) Calculation of the amount of the CNT Fee payable pursuant to this
Section 5.3. 
 (c) Unidym shall accompany each report under Section 5.3(b) with the payment of the
CNT Fee due to TEL hereunder. If no amounts are due to TEL for any reporting period, the report shall so state. 
 (d) Unidym
shall maintain, and cause any assignee, Affiliates and Inks Licensees, as applicable, to maintain, complete and accurate books and records that enable the CNT Fee to be verified. The records for each calendar quarter shall be maintained for five
(5) years after the submission of each report under Section 5.3(b) . 
 (e) Upon reasonable prior notice to
Unidym or any of its assignees, Affiliates or Inks Licensees, as applicable, TEL or its appointed accountants shall have access to such books and records relating to the calculation of Net Sales of CNT Related Products as necessary to conduct a
review or audit of Net Sales of CNT Related Products. Such access shall be available to TEL not more than once each calendar year during the Fee Period, during normal business hours, and once a year for five years after the end of the Fee Period.

 (f) If an audit of Unidym’s or an assignee’s, Affiliate’s, or Inks Licensee’s records, as the case may
be, indicate that Unidym has underpaid the CNT Fees by five percent (5%) or more, Unidym shall pay the costs and expenses incurred by TEL and its accountants, if any, in connection with the review or audit. 
 (g) Unidym shall have its financial statements audited by nationally or regionally recognized qualified auditors on an annual basis during
the Fee Period, and will deliver a copy of such audited financial statements and any accompanying auditor’s report to TEL within ninety (90) days after the end of each of Unidym’s fiscal years, any part of which are within the Fee
Period. 
 (h) All payments of the CNT Fee to TEL shall be made in United States dollars. If Unidym receives revenues from Net
Sales of CNT Related Products in a currency other than United States dollars, revenues shall be converted into United States dollars at the conversion rate for the foreign currency used by Unidym’s bank on the day the bank credits such funds to
Unidym’s account. 
 (i) Amounts that are not paid when due hereunder shall accrue interest from the due date until paid,
at a rate equal to one and one-half percent (1.5%) per month (or the maximum allowed by law, if less). 
 (j) TEL shall
have the right to assign its right to receive the CNT Fee to a TEL Affiliate without the prior consent of Unidym. 
 (k) If
the Parties enter into a definitive agreement with regard to the JDP as contemplated by Section 5.7 below, the Parties intend that the terms of that agreement (including the payment of fees contemplated thereunder) will supersede the CNT Fee
payable under Section 5.3(a), and Unidym’s obligation to pay the CNT Fee shall cease. 

 5.4 Certain Notifications. Unidym agrees that it will use its best efforts to provide TEL with at
least thirty (30) days prior written notice before Unidym takes any action (a) to cease to carry on its CNT related business; or (b) with respect to any Release Event described in Section 2.3(a) or 2.3(e), and, after providing
such notice and if requested by TEL, to negotiate in good faith for such thirty day period (or such longer period as the Parties may agree) with respect to a possible acquisition by TEL or TEL Affiliate of all or a portion of the assets of Unidym,
or all or a portion of the outstanding stock of Unidym. 
 5.5 License Agreements. To the extent it can do so without breaching a
contract with a third party, Unidym and TEL hereby agree to negotiate in good faith from the closing date through December 31, 2009 a sublicense under the License Agreements for all Intellectual Property rights thereunder necessary for the
Inks/Films Business. At a minimum, if requested by TEL, Unidym agrees to grant to TEL a sublicense with respect to such intellectual property rights that conforms to the requirements of an authorized sublicense under the License Agreements, if any,
subject to the approval of the licensor thereunder. Any additional terms and conditions would be subject to further negotiation between the Parties, as well as to the approval of the licensor thereunder. If requested by TEL, Unidym agrees in good
faith to seek the approval of the licensor for each such sublicense as required under the respective License Agreement such that, (a) in the event the License Agreement is terminated, the licensor will continue to recognize and honor the
sublicensed rights of TEL; and (b) to the extent obtainable, TEL shall have the right to assign its rights under such sublicense to a TEL Affiliate without the prior consent of the licensor. 
 5.6 CNT Production. Unidym agrees that IF (a) it fails to complete the “Second Phase Closing” as defined in the Asset Purchase
Agreement between Unidym and CCNI dated April     , 2009 by no later than August 31, 2009; or (b) at any time after entering into a definitive CNT Supply Agreement, Unidym exercises its right to terminate such agreement
based on a material breach by CCNI of its obligations thereunder (such as the obligation to produce CNT that meets the specifications required to support the development, sale and use of the Equipment, or to produce such CNT in sufficient quantity
to support the development, sale and use of the Equipment); AND, in each case, (i) Unidym fails within thirty (30) days thereafter to present to TEL a financially viable plan by Unidym to manufacture CNT on its own, and (ii) CCNI and
TEL are unable to agree, prior to the end of such thirty (30) day period, upon the terms and conditions of a new contract manufacturing agreement pursuant to which CCNI would supply CNT to TEL and/or a TEL Affiliate; THEN, Unidym agrees, upon
the request of TEL, to grant to TEL, a world-wide, perpetual, irrevocable, non-terminable, fully paid-up, royalty-free, non-exclusive, transferable, sublicensable right and license under all of Unidym’s Intellectual Property rights (excluding a
sublicense of any third party Intellectual Property licensed to Unidym under the License Agreements) to make, have made, use, import, market, sell and distribute CNT solely in the LCD Field and the Solar Field, and further agrees to transfer to TEL
any and all know-how, technical information and documentation, including formulas and recipes, reasonably necessary and useful for producing CNT for use in the LCD Field and the Solar Field. 
 5.7 Joint Development Program. Unidym and TEL hereby agree to negotiate in good faith from the Closing Date through September 30, 2009 with
respect to a joint development program (“JDP”) to develop the Equipment. Under the JDP: 
 (a) Unidym agrees
to work exclusively with TEL (or a TEL Affiliate designated by TEL, the “TEL JDP Partner”) for four years to develop the Equipment, subject to the Parties meeting certain agreed upon objectives and milestones; 

 (b) Any invention arising out of the JDP, including all intellectual property rights
thereto (hereafter, collectively, “JDP Intellectual Property”) shall be handled as follows: 
 (i) Any
Equipment-related JDP Intellectual Property that is developed solely by the TEL JDP Partner, or jointly by both Parties, would be owned by the TEL JDP Partner. 
 (ii) Any Equipment-related JDP Intellectual Property developed solely by Unidym would be owned by Unidym, subject to an exclusive license
to TEL JDP Partner for a period to be determined in the final JDP agreement, with the right to assign such license to any TEL Affiliate without the prior consent of Unidym. 
 (iii) Any JDP Intellectual Property related to the Equipment Process, whether developed solely by one of the Parties or jointly by the
Parties, would be jointly owned by the TEL JDP Partner and Unidym, subject to a covenant that Unidym will not license any such jointly owned JDP Intellectual Property to a TEL Competitor. 
 (c) TEL JDP Partner (or any TEL Affiliate designed by it) would have the right to distribute CNT Products on a worldwide basis, with the
exclusive right to distribute the CNT Products to manufacturers of liquid crystal displays and thin film solar panels in Japan for a period to be agreed upon by the Parties. 
 (d) TEL JDP Partner would be entitled to receive a fee, as compensation for its development activities under the JDP, equal to two percent
(2%) of Net Sales of CNT Related Products on a worldwide basis for a period of ten years from the date of first sale of CNT or CNT Products in the LCD Field or the Solar Field, regardless of whether the CNT or CNT Products are used in Equipment
manufactured by a TEL Affiliate and regardless of whether the CNT or CNT Products are distributed by a TEL Affiliate. 
 ARTICLE VI 

 INDEMNIFICATION, ETC. 
 6.1 Survival of Representations, Warranties and Covenants. The respective agreements and obligations of TEL and Unidym contained in this Agreement, any Transaction Agreement or in any certificate, document or other instrument
delivered pursuant to or in connection herewith or therewith shall survive the execution and delivery of this Agreement or any such Transaction Agreement, any investigation by or on behalf of any party hereto. Any investigation or other examination
that may have been made by any party seeking indemnification under this Agreement on or before the Closing Date shall not limit, diminish or in any way affect the representations and warranties of TEL or Unidym, as the case may be, set 

 
forth in this Agreement, any Transaction Agreement or any certificate, document or other instrument delivered pursuant to or in connection herewith or
therewith, and such party may rely on such representations, warranties and covenants irrespective of any information obtained by such party by any investigation, examination or otherwise. 
 6.2 Indemnification. 
 (a) Subject to the terms and conditions of this Article VI, Unidym shall indemnify, defend and hold harmless TEL and each of its respective officers, directors, employees, members, agents and Affiliates (the “TEL
Group”) against any and all claims, losses, liabilities, damages, deficiencies, interest and penalties, costs and expenses, including reasonable attorneys’ fees and expenses, and expenses of investigation and defense (hereinafter
individually a “Loss” and collectively “Losses”) incurred or suffered by any member of the TEL Group, directly or indirectly, as a result of: 
 (i) the breach of any representation or warranty of Unidym set forth herein or in any related certificate delivered pursuant to this
Agreement; or 
 (ii) any failure by Unidym to perform, fulfill or comply with any covenant set forth in this Agreement
required to be performed. 
 (b) Subject to the terms and conditions of this Article VI, TEL shall indemnify, defend
and hold harmless Unidym and its respective officers, directors, employees, members, agents and Affiliates (the “Unidym Group”), against any and all Losses incurred or suffered by any member of the Unidym Group, directly or
indirectly, as a result of: 
 (i) any misrepresentation or breach of a warranty of TEL set forth herein or in any
certificate, document or other instrument delivered pursuant to or in connection with this Agreement; or 
 (ii) any failure
by TEL to fully perform, fulfill or comply with any covenant or agreement set forth herein or in any certificate, document or other instrument delivered pursuant to or in connection with this Agreement. 
 6.3 Indemnification Procedures. 
 (a) Unidym, on behalf of any member of the Unidym Group that is seeking indemnification under Section 6.2 hereof, or TEL, on behalf of any member of the TEL Group that is seeking indemnification under
Section 6.2 hereof (each such Person of the Unidym Group and the TEL Group seeking indemnification, an “Indemnified Party”) shall give prompt written notice (the “Notice of Claim”) of any Loss in respect
of which the Indemnified Party has a right to indemnity under Section 6.2 hereof, (A) in the case of a Notice of Claim by Unidym, to TEL or (B) in the case of a Notice of Claim by TEL, to Unidym (each such Person from whom
indemnification is sought, the “Indemnifying Party”), and the Notice of Claim shall specify in reasonable detail the nature of the Loss for which indemnification is sought, the section or sections of this Agreement to which the
Notice of Claim relates and the amount of the Loss involved (or, if not determinable, 

 
a reasonable good faith estimate of the amount of the Loss involved); provided, however, that no delay or failure on the part of the
Indemnified Party in notifying the Indemnifying Party shall relieve the Indemnifying Party of any liability or obligation hereunder, except to the extent that the Indemnifying Party clearly demonstrates that the defense of any third party suit,
action or proceeding has been materially prejudiced by the Indemnified Party’s failure to give such notice. Any Notice of Claim to be given by or to, as the case may be, any member of the Unidym Group under this Section 6.3 hereof
shall be given by or to, as the case may be, Unidym. Any Notice of Claim to be given by or to, as the case may be, any member of the TEL Group under this Section 6.3 hereof shall be given by or to, as the case may be, TEL. 
 (b) If such Notice of Claim relates to any claim, suit, action, cause of action suit or proceeding by a third party, the Indemnifying
Party may upon written notice given to the Indemnified Party within twenty (20) days of the receipt by the Indemnifying Party of such Notice of Claim, assume control of the defense of such action, suit or proceeding with counsel reasonably
satisfactory to Indemnified Party. If the Indemnifying Party does not so assume control of such defense, the Indemnified Party shall have the right to control such defense. The party not controlling such defense may participate therein at its own
expense. 
 (c) Neither the Indemnifying Party nor any Indemnified Party shall agree to any settlement of any claim, suit,
action, cause of action suit or proceeding without the prior written consent of the other, which consent shall not be unreasonably withheld or delayed. For purposes hereof, a party’s withholding of its consent to any settlement which does not
include as an unconditional term thereof the giving by the claimant or plaintiff to all Persons who are members of the group represented by the Indemnified Party of a complete irrevocable release from all liability in respect to such claim or
litigation or which requires action (or limits action) other than the payment of money that would be considered to be Losses under this Agreement shall be deemed to be reasonable. 
 ARTICLE VII 
 DEFINITIONS, CONSTRUCTION, ETC. 
 (a) Definitions. For purposes of this Agreement: 
 “Affiliate” shall mean, with respect to the Person to which it refers, a Person that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control
with, such Person. 
 “Agreement” shall have the meaning set forth in the Preamble. 
 “Agreement Date” shall have the meaning set forth in the Preamble. 
 “Business Day” shall mean any weekday of the year on which national banking institutions in the State of California are open to the
public for conducting business and are not required to close. 

 “CCNI” means Continental Carbon Nanotechnologies, Inc. 
 “Closing” shall have the meaning set forth in Section 1.2. 
 “Closing Date” shall have the meaning set forth in Section 1.2. 
 “CNT” means custom opto-electronics grade carbon nanotubes used in producing CNT Products. 
 “CNT Fee” shall have the meaning set forth in Section 5.3(a). 
 “CNT Products” means CNT-based transparent conductive films, or inks used to create films, for application as transparent electrodes in
liquid crystal displays and thin film solar cells. 
 “CNT Products IP” means all Intellectual Property held by Unidym that
relates to the production of CNT Products from CNT, including without limitation, the patents and patent applications set forth in Schedule 7 attached hereto and the disclosures set forth in the CNT Products Materials. 
 “CNT Products License” shall have the meaning set forth in Section 2.1. 
 “CNT Products Materials” shall have the meaning set forth in Section 2.2. 
 “CNT Supply Agreement” means a preferred contract manufacturing agreement proposed to be entered into between Unidym and CCNI for the
production and supply of CNT by CCNI to Unidym. 
 “Co-Owned Patents” shall have the meaning set forth in
Section 1.6. 
 “Court” shall have the meaning set forth in Section 8.9(b). 
 “Equipment” means equipment designed for use by manufacturers of liquid crystal displays and/or designed for use by manufacturers of
solar panels for the deposition of CNT or CNT Products on liquid crystal displays and solar panels, respectively, including for purposes of clarification, the fabrication of CNT or CNT Products on glass for use on solar panels. 
 “Equipment Related IP” means the Intellectual Property related to Equipment and the Equipment Process and described in Schedule
1.1 hereto. 
 “Equipment Process” means any method or process relating to the deposition, deposit or coating of CNT or
CNT Products on any substrate materials used in the manufacturing or production of liquid crystal displays or solar panels (including, for purposes of clarification, any method or process to fabricate CNT or CNT Products on glass for use on solar
panels). 
 “Fee Period” shall have the meaning set forth in Section 5.3(a). 
 “Governmental Entity” shall mean any court, administrative agency or commission or other federal, state, county, local or foreign
governmental authority, instrumentality, agency or commission. 

 “Indemnified Party” shall have the meaning set forth in Section 6.3(a).

 “Indemnifying Party” shall have the meaning set forth in Section 6.3(a). 
 “Inks/Films Business” means the business consisting of the manufacture, production and distribution of CNT Products for use in the LCD
Field and the Solar Field. 
 “Inks Licensee” shall mean any third party licensee of the Intellectual Property of Unidym
that, in connection with such license, receives any of Unidym’s know how for making CNT Products. 
 “Intellectual
Property” shall mean any or all of the following and all rights in, arising out of, or associated therewith: (i) all United States, international and foreign patents and applications therefore and all reissues, divisions, divisionals,
renewals, extensions, provisionals, continuations and continuations-in-part thereof, and all patents, applications, documents and filings claiming priority to or serving as a basis for priority thereof; (ii) all inventions (whether or not
patentable), invention disclosures, improvements, trade secrets, proprietary information, know-how, computer software programs (in both source code and object code form), technology, business methods, technical data and customer lists, tangible or
intangible proprietary information, and all documentation relating to any of the foregoing; (iii) all copyrights, copyrights registrations and applications therefore, and all other rights corresponding thereto throughout the world;
(iv) all industrial designs and any registrations and applications therefore throughout the world; (v) all trade names, logos, common law trademarks and service marks, trademark and service mark registrations and applications therefore
throughout the world; (vi) all databases and data collections and all rights therein throughout the world; (vii) all moral and economic rights of authors and inventors, however denominated, throughout the world; (viii) all Web
addresses, sites and domain names and numbers; and (ix) any similar or equivalent rights to any of the foregoing anywhere in the world. 
 “JDP” shall have the meaning set forth in Section 5.7. 
 “JDP Intellectual Property”
shall have the meaning set forth in Section 5.7(b). 
 “Knowledge” (including any derivation thereof such
as “Known” or “Knowing”) shall mean, the actual (and not constructive or imputed) knowledge of (i) with respect to Unidym, any officers or directors, including John Miller and Mary-Beth Miller and (ii) with respect to
TEL, the President and Vice President. 
 “LCD Field” means the field of nanotechnology using CNT Products for
application as transparent electrodes in liquid crystal displays. 
 “License Agreements” means any license agreement
between Unidym and any third party pursuant to which such third party’s Intellectual Property rights are licensed to Unidym. 
 “Lien” shall mean any lien, pledge, mortgage, deed of trust, security interest, claim, lease, license, charge, option, right of first refusal, easement, restriction, reservation, servitude, proxy, voting trust or agreement,
transfer restriction under any stockholder or similar agreement, or encumbrance of any nature whatsoever, and except for Liens for Taxes not yet due and payable 

 
and such imperfections of title and encumbrances, if any, which are not material in character, amount or extent, and which do not materially detract from the
value, or materially interfere with the present use of the property subject thereto or affected thereby. 
 “Loss” or
“Losses” shall have the meaning set forth in Section 6.2(a). 
 “Net Sales of CNT Related
Products” means all amounts received by: (1) Unidym, or any assignee or Affiliate thereof, from the sale of CNT Products for use in the LCD Field or the Solar Field; (2) Unidym, or any assignee or Affiliate thereof, from the sale
of CNT if the CNT is not sold to an Inks Licensee and is used to make CNT Products for use in the LCD or the Solar Field; and (3) any Inks Licensee from the sale of CNT Products for use in the LCD Field or the Solar Field, net of any
(a) discounts, refunds, credits, or returns and, (b) to the extent separately stated on purchase orders or other documents of sale, sales, consumption, VAT or other taxes and charges for delivery and insurance. For the avoidance of doubt,
CCNI shall not be considered an assignee of Unidym for purposes of calculating Net Sales of CNT Related Products, unless and until Unidym receives, or obtains the right to receive, consideration from CCNI in exchange for Unidym enabling or otherwise
permitting CCNI to sell CNT or CNT Products to a Person other than Unidym. 
 “Non-Commercial Rights” means the rights under
the CNT Products License to use the CNT Products IP solely in connection with trials, tests and other related, non-commercial activities in the course of developing the Equipment and/or Equipment Process. 
 “Notice of Claim” shall have the meaning set forth in Section 6.3(a). 
 “Party” means either Unidym or TEL as the context requires, and “Parties” shall mean both Unidym and TEL. 

“Person” shall mean any individual, corporation, partnership, limited liability company, firm, joint venture, association,
joint-stock company, trust, unincorporated organization, Governmental Entity or other entity. 
 “Put A Right” shall mean
the Put A Right as defined in Section 5.1 of the Subscription Agreement. 
 “Put B Right” shall mean the Put B
Right as defined in Section 5.2 of the Subscription Agreement. 
 “Registered Intellectual Property” shall mean
all United States, international and foreign: (i) patents and patent applications (including utility patents, business method patents, design patents, utility model patents, non-provisional patent applications, provisional patent applications,
utility model patent applications, and design patent applications) and all reissues, divisions, divisionals, renewals, extensions, counterparts, continuations and continuations-in-part thereof, and all patents, applications, documents and filings
claiming priority thereto or serving as a basis for priority thereof; (ii) registered trademarks, service marks, applications to register trademarks, applications to register service marks, intent-to-use applications, or other registrations or
applications related to trademarks; (iii) registered copyrights and applications for copyright registration; (iv) domain name registrations and Internet number assignments; and 

 
(v) any other Intellectual Property that is the subject of an application, certificate, filing, registration or other document issued, filed with, or
recorded by any Governmental Entity. 
 “Release Event” shall have the meaning set forth in Section 2.3.

 “Solar Field” means the field of nanotechnology using CNT Products for application as transparent electrodes in thin film
solar cells. 
 “Subscription Agreement” shall have the meaning set forth in the Recitals. 
 “TEL” shall have the meaning set forth in the recitals. 
 “TEL Affiliate” shall mean TEL or an Affiliate of TEL, as the context requires. 
 “TEL Competitor” means any third party that either directly or through an Affiliate manufactures or sells equipment for the manufacture of semiconductors, solar panels and/or flat panel displays or that uses such third
party’s equipment. 
 “TEL Group” shall have the meaning set forth in Section 6.2(a). 
 “TEL JDP Partner” shall have the meaning set forth in Section 5.7. 
 “Transaction Agreements” shall have the meaning set forth in Section 3.2(a). 
 “Transactions” shall mean the transactions contemplated by this Agreement and the other Transaction Agreements to which the Unidym is or
will be a party. 
 “Unidym” shall have the meaning set forth in the Preamble. 
 “Unidym Competitor” means any third party that either directly or through an Affiliate manufactures or sells CNT or CNT Products.

 “Unidym Group” shall have the meaning set forth in Section 6.2(b). 
 (b) Construction. 
 (i) For purposes of this Agreement, whenever the context requires: the singular number shall include the plural, and vice versa; the masculine gender shall include the feminine and neuter genders; the feminine gender
shall include the masculine and neuter genders; and the neuter gender shall include the masculine and feminine genders. 
 (ii) Any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in the construction or interpretation of this Agreement. 
 (iii) The words “include” and “including,” and variations thereof, shall not be deemed to be terms of limitation, but
rather shall be deemed to be followed by the words “without limitation.” 

 (iv) Except as otherwise indicated, all references in this Agreement to
“Sections,” “Exhibits” and “Schedules” are intended to refer to Sections of this Agreement, and Exhibits and Schedules to this Agreement. 
 (v) The phrase “made available” or “provided to” as used in this Agreement in reference to the delivery of documents
or copies of documents to a party shall mean the provision of documents in the Data Room. 
 ARTICLE VIII 
 GENERAL PROVISIONS 
 8.1
Notices. All notices and other communications under this Agreement shall be in writing and shall be deemed given if properly addressed: (i) if delivered personally, by commercial delivery service or by facsimile (with acknowledgment of a
complete transmission), on the day of delivery; or (ii) if delivered by registered or certified mail (return receipt requested), three Business Days after mailing; or (iii) if delivered by first class mail, three Business Days after
mailing. Notices shall be deemed to be properly addressed to any party hereto if addressed to the following addresses (or at such other address for a party as shall be specified by like notice): 
  

	 	(a)	if to TEL, to: 

 TEL Venture Capital, Inc. 
 2953 Bunker Hill Lane, Suite 300 
 Santa
Clara, CA 95054 
 Attention: Tetsuo Hirose 
 Phone: 408-566-4403 
 Facsimile: (408) 566-4410 
  

	 	(b)	if to the Unidym, to: 

 Unidym, Inc. 
 1244 Reamwood Drive 
 Sunnyvale,
CA
 Attention: Mark Tilley 
 Phone: 650-462-1935 
 Facsimile: 650-462-1939 
 8.2 Entire Agreement. This Agreement, the Schedules and Exhibits hereto, and the documents and instruments and other agreements among the parties hereto referenced herein constitute the entire agreement among
the parties with respect to the subject matter hereof and supersede all prior written and oral agreements and understandings, and all contemporaneous oral agreements and understandings, among the parties with respect to the subject matter hereof.

 8.3 Severability. In the event that any provision of this Agreement or the application thereof becomes or is declared by a court of
competent jurisdiction to be illegal, void or unenforceable, the remainder of this Agreement will continue in full force and effect and the 

 
application of such provision to other Persons or circumstances will be interpreted so as reasonably to effect the intent of the parties hereto. The parties
further agree to replace such void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the greatest extent possible, the economic, business and other purposes of such void or unenforceable
provision. 
 8.4 Specific Performance. The parties hereto 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 this Agreement and
to enforce specifically the terms and provisions hereof in any court of the United States or any state having jurisdiction, this being in addition to any other remedy to which they are entitled at Law or in equity. 
 8.5 Disclosure Schedule. No matter disclosed in one section of the Unidym Disclosure Schedule, shall be deemed disclosed in another section of the
Unidym Disclosure Schedule, unless it is reasonably apparent on the face of the disclosure that the matter is responsive to another representation. Disclosure of a matter in a section of the Unidym Disclosure Schedule shall not affect (directly or
indirectly) the interpretation of this Agreement or the scope of the disclosure obligation of Unidym under this Agreement. 
 8.6 Fees and
Expenses. All fees and expenses incurred in connection with this Agreement including, without limitation, all expenses incurred by a party in connection with the negotiation and effectuation of the terms and conditions of this Agreement and the
Transactions contemplated hereby shall be the obligation of the party incurring such fees and expenses. 
 8.7 Successors and Assigns;
Parties in Interest. 
 (a) This Agreement shall inure to the benefit of the parties hereto and the respective successors
and assigns (if any) of the foregoing. 
 (b) No party may assign any of its rights or delegate any of its obligations under
this Agreement without the prior written consent of TEL. 
 (c) Nothing in this Agreement, express or implied, is intended to
or shall confer upon any Person other than the parties any rights, interests, benefits or other remedies of any nature under or by reason of this Agreement. 
 8.8 Waiver. No failure on the part of any Person to exercise any power, right, privilege or remedy under this Agreement, and no delay on the part of any Person in exercising any power, right, privilege or
remedy under this Agreement, shall operate as a waiver of such power, right, privilege or remedy; and no single or partial exercise of any such power, right privilege or remedy shall preclude any other or further exercise thereof or of any other
power, right, privilege or remedy. 

 8.9 Governing Law; Venue. 
 (a) This Agreement shall be construed in accordance with, and governed in all respects by, the internal laws of the State of California,
without regard to the principles of conflict of laws. 
 (b) Unless otherwise explicitly provided in this Agreement, any
action, claim, suit or proceeding relating to this Agreement or the enforcement of any provision of this Agreement shall be brought or otherwise commenced in any state or federal court located in the State of California (each, a
“Court”). Each Party hereto (i) expressly and irrevocably consents and submits to the exclusive jurisdiction of each Court, and each appellate court located in the State of California, in connection with any such proceeding;
(ii) agrees that each Court shall be deemed to be a convenient forum; (iii) agrees that service of process in any such proceeding may be made by giving notice pursuant to Section 8.1; and (iv) agrees not to assert, by way
of motion, as a defense or otherwise, in any such proceeding commenced in any Court, any claim that such party is not subject personally to the jurisdiction of such Court, that such proceeding has been brought in an inconvenient forum, that the
venue of such proceeding is improper or that this Agreement or the subject matter of this Agreement may not be enforced in or by such Court. 
 (c) Notwithstanding the foregoing, any dispute between the Parties with regard to whether or not a Release Event has occurred, as described in Section 2.3 hereof, shall be submitted for expedited binding
arbitration in the County of Santa Clara in the State of California under Commercial Arbitration Rules of the American Arbitration Association by one arbitrator appointed by the said rules. The decision of the arbitrator shall be final and binding
upon the parties and enforceable in any court of competent jurisdiction and a copy of such decision shall be delivered immediately to Unidym and TEL. The sole question to be determined by the arbitrator shall be whether or not a Release Event has
occurred. The Parties hereby agree that the costs and expenses of the arbitrator shall be paid by the non-prevailing party in the arbitration, but each Party shall pay the costs and expenses of their own attorneys. 
 8.10 Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THE TRANSACTION AGREEMENT IS LIKELY TO
INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE IT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THE TRANSACTION
AGREEMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY. 
 8.11 Other Remedies. Except as otherwise expressly provided herein, any and
all remedies herein expressly conferred upon a party will be deemed cumulative with and not exclusive of any other remedy conferred hereby, or by law or equity upon such party, and the exercise by a party of any one remedy will not preclude the
exercise of any other remedy. 
 8.12 Counterparts; Facsimile Delivery. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall 

 
constitute one and the same instrument. Any signature page delivered by facsimile or electronic image transmission shall be binding to the same extent as an
original signature page. Any party that delivers a signature page by facsimile or electronic image transmission shall deliver an original counterpart to any other party that requests such original counterpart. 
 8.13 Time of the Essence. Time is of the essence of this Agreement. 
 8.14 Further Assurances. In addition to the obligations required to be performed under this Agreement by Unidym and TEL, Unidym and TEL shall perform, on the Closing Date or from time to time thereafter, such
other acts, and shall execute, acknowledge and/or deliver such other instruments, documents and other materials, as may be reasonably required in order to consummate the Transactions described in this Agreement. 
 IN WITNESS WHEREOF, each of the parties to this Agreement has executed and delivered this Agreement, or caused this Agreement to be executed and
delivered by its duly authorized representative, as of the Agreement Date. 
  

			
	UNIDYM, INC.
		
	By:	 	 /s/ Mark Tilley

	Name:	 	Mark Tilley
	Its:	 	Chief Executive Officer
	
	TEL VENTURE CAPITAL, INC.
		
	By:	 	 /s/ Mike Yamaguchi

	Name:	 	Mike Yamaguchi
	Its:	 	PresidentSubscription Agreement dated June 25, 2009

 Exhibit 10.5 
 UNIDYM, INC. 
 SUBSCRIPTION AGREEMENT 
 SERIES C-1 PREFERRED STOCK 

 SUBSCRIPTION AGREEMENT 
 THIS SUBSCRIPTION AGREEMENT (this “Agreement”) is made as of the last date indicated on the signature pages hereto between
Unidym, Inc., a Delaware corporation (the “Company”), and the undersigned investor party hereto (“Investor”). 
 RECITALS 
 WHEREAS, the Company wishes to sell up to an aggregate of 1,416,666 additional shares of
the Company’s Series C-1 Preferred Stock (“Shares”) to the Investor, at a purchase price of $1.80 per Share, and the Investor wishes to purchase Shares from the Company. 
 NOW, THEREFORE, in consideration of the mutual covenants, agreements and conditions, and upon acknowledgement of each of the parties of the receipt of
valuable consideration, the parties herein agree as follows: 
 1. Purchase and Sale of Shares. 
 1.1 The Closing. At the Closing (as defined below), the Company shall issue and sell to Investor such number of Shares as is set forth immediately
below Investor’s name on the signature pages hereto against delivery to the Company by Investor of an amount equal to $1.80 times the number of Shares to be purchased by the Investor (the “Purchase Price”), paid by
(a) cash (by check or wire transfer) in United States Dollars to the Company to be held in escrow until the Closing, for release to the Company thereafter or (b) cancellation of indebtedness of the Company to Investor. Promptly after the
Closing, the Company shall deliver to Investor a duly executed certificate representing the Shares which Investor is purchasing hereunder. The purchase and sale transaction contemplated hereby will close on the first business day immediately
following the satisfaction of the Closing conditions set forth herein, which is targeted to be no later than 5:00 p.m., Pacific Time on             , 2009, as such date and time may be
modified by the Company in its sole discretion (such day, the “Closing”). 
 1.2 Additional Closing(s).

 (a) Conditions of Additional Closing(s). At any time and from time to time following the Closing, the Company may, at one or more
additional closings (each an “Additional Closing”), without obtaining the signature, consent or permission of Investor, offer and sell to other investors (the “New Investors”), at a price of $1.80 per
Share, up to that number of Shares that is equal to 1,416,666 Shares less the number of Shares previously issued and sold by the Company. New Investors may include persons or entities who are already owners of shares of the Company’s Series C-1
Preferred Stock or other capital stock. 
 (b) Amendments. The Company and the New Investors purchasing Shares at each Additional
Closing will execute a Subscription Agreement in substantially the same form hereof, and the New Investors will, to the extent not already a party thereto, execute counterpart signature pages to: (i) the Amended and Restated Investors’
Rights Agreement in the form attached to this Agreement as Exhibit A, as amended (the “Investors’ Rights Agreement”), (ii) the Amended and Restated Right of First Refusal and Co-Sale Agreement in the
form attached to this Agreement as Exhibit B, as amended (the “ROFR Agreement”), and (iii) the Amended and Restated Voting Agreement in the form attached to this Agreement as Exhibit C, as amended (the
“Voting Agreement”) (the Investors’ Rights Agreement, ROFR Agreement and Voting Agreement, as such agreements may be amended, collectively, the “Related Agreements”). Such New Investors will, upon
delivery to the Company of such signature pages, become parties to, and bound by, the Related Agreements, each to the same extent as if they had been an Investor at the time of issuance of the first share of Series C-1 Preferred Stock. 

 

 1 

 (c) Status of New Investors. Upon the completion of each Additional Closing as provided in this
Section 1.2, each New Investor will be deemed to be an “Investor” for all purposes of the Related Agreements. 
 2.
Representations and Warranties of the Company. The Company hereby represents and warrants to Investor, that the statements in the following paragraphs of this Section 2 are all true and complete as of the date hereof: 
 2.1 Organization, Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware. The Company is duly qualified to transact business and is in good standing in each jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect on (a) the present
or future business, assets, or operations, of the Company, taken as a whole or (b) the Company’s ability to perform this Agreement or the Related Agreements (as defined below) (a “Material Adverse Effect”).

 2.2 Capitalization and Voting Rights. 
 (a) Authorized Stock. There are authorized for issuance 50,000,000 shares of common stock, par value $0.0001 (the “Common Stock”) and 22,506,585 shares of preferred stock, par value
$0.0001 (the “Preferred Stock”), of which 5,000,000 shares are designated as Series A Convertible Preferred Stock (“Series A Preferred Stock”), 5,673,252 shares are designated as Series B Senior
Convertible Preferred Stock (“Series B Preferred Stock”), 8,500,000 shares are designated as Series C Senior Convertible Preferred Stock (“Series C Preferred Stock”), and 3,333,333 shares are
designated as Series C-1 Preferred Stock (“Series C-1 Preferred Stock”). Immediately prior to the Closing, the outstanding stock of the Company consists of the following: 
 (i) Common Stock. Three Million Seven Hundred Eighty Thousand One Hundred (3,780,100) shares of issued and outstanding Common
Stock. 
 (ii) Series A Preferred Stock. Five Million (5,000,000) shares of issued and outstanding Series A
Preferred Stock, which shares of Series A Preferred Stock are convertible into 1.680096462 shares of Common Stock upon (x) an involuntary or voluntary liquidation, dissolution and winding up of the Company, (y) a Deemed Liquidation Event
(as such term is defined in the Restated Certificate (as defined below)) or (z) a Qualified IPO (as such term is defined in the Restated Certificate). 
 (iii) Series B Preferred Stock. Five Million Six Hundred Seventy Three Thousand Two Hundred Fifty-Two (5,673,252) shares of
issued and outstanding Series B Preferred Stock, which shares of Series B Preferred Stock are convertible into 1.000042304 shares of Common Stock. 
 (iv) Series C Preferred Stock. Eight Million One Hundred Twenty Five Thousand Eight Hundred Eighty-Nine (8,125,889) shares of issued and outstanding Series C Preferred Stock. 
 (v) Series C-1 Preferred Stock. One Million Nine Hundred Sixteen Thousand Six Hundred Sixty-Seven (1,986,112) shares of
issued and outstanding Series C-1 Preferred Stock. 
 Upon the Closing, the rights, preferences and privileges of each series of Preferred Stock will be as
stated in the Restated Certificate and as provided by law. 
  

 2 

 (b) Valid Issuance. The outstanding shares of Common Stock and Preferred Stock are all duly and
validly authorized and issued, fully paid and nonassessable. 
 (c) Rights to Acquire. Except for (i) the conversion privileges
of the Preferred Stock, (ii) the rights of first refusal provided in Section 4 of the Investors’ Rights Agreement, (iii) the Five Million (5,000,000) shares of Common Stock reserved for issuance to employees, consultants
and/or directors pursuant to the Company’s 2006 Stock Option/Stock Issuance Plan (the “Option Plan”), of which options to purchase an aggregate of Three Million Eight Hundred Seven Thousand Two Hundred Two
(3,807,202) shares of Common Stock are currently outstanding, (iv) outstanding warrants to purchase Three Million Five Hundred Ten Thousand Two Hundred Eight (3,510,208) shares of Common Stock and (vi) outstanding restricted
stock units for the issuance of One Million One Hundred Four Thousand Ten (1,104,010) shares of Common Stock, and (v) the Company’s obligation to purchase 277,779 shares of Series C-1 Preferred Stock from TEL Venture Capital Inc.
(“TEL”) in the event certain conditions are not met and TEL requests that Unidym purchases the 277,779 shares, there are not outstanding any options, warrants, rights (including conversion or preemptive rights) or agreements for the
purchase or acquisition from the Company of any shares of its capital stock. 
 (d) Voting of Shares. Other than the Voting
Agreement, the Company is not a party or subject to any agreement or understanding and, to the Company’s knowledge, there is no agreement or understanding between any persons and/or entities which affects or relates to the voting or giving of
written consents with respect to any security or by a director of the Company. 
 (e) Market Stand-Off. To the Company’s best
knowledge, all outstanding shares of preferred stock of the Company and all capital stock of the Company issuable upon the exercise of outstanding employee incentive stock options are subject to a one hundred eighty (180) day “market
stand-off” restriction upon an initial public offering by the Company resulting in at least $20 Million in gross proceeds pursuant to a registration statement filed with the Securities and Exchange Commission (“SEC”)
pursuant to the Securities Act of 1933, as amended (the “Act”). 
 2.3 Subsidiaries. Except for (i) the
minority ownership position in Nexeon MedSystems pursuant to the license agreement with Nanotech Catheter Solutions, and (ii) the 100% ownership position in Nanoconduction, Inc., the Company does not presently own or control, directly or
indirectly, any interest in any other corporation, association, or other business entity. The Company is not a participant in any joint venture, partnership, or similar arrangement. 
 2.4 Authorization. All corporate action on the part of the Company, its officers, directors and stockholders necessary for the authorization,
execution and delivery of this Agreement, the Related Agreements, the performance of all obligations of the Company hereunder and thereunder, and the authorization, sale and issuance of the Shares being sold hereunder, and the Common Stock issuable
upon conversion of the Shares, has been taken or will be taken prior to the Closing. As of the Closing, this Agreement and the Related Agreements constitute valid and legally binding obligations of the Company, enforceable in accordance with their
respective terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to
the availability of specific performance, injunctive relief or other equitable remedies, and (iii) to the extent the indemnification provisions contained in the Related Agreements may be limited by applicable federal or state securities laws.

 2.5 Valid Issuance of Preferred and Common Stock. The Shares that are being purchased by Investor hereunder, when issued, sold and
delivered in accordance with the terms of this Agreement for the consideration expressed herein, will be duly and validly issued, fully paid and nonassessable and will be free of restrictions on transfer, other than restrictions on transfer, if any,
(i) under this Agreement, the Investor’s Rights Agreement and the ROFR Agreement, (ii) under applicable state and 

  

 3 

 
federal securities laws and (iii) otherwise imposed as a result of actions taken by Investor. The Common Stock issuable upon conversion of the Shares
purchased under this Agreement has been duly and validly reserved for issuance and, upon issuance in accordance with the terms of the Company’s Fourth Amended and Restated Certificate of Incorporation in the form attached hereto as Exhibit
D-1 (the “Restated Certificate”), will be duly and validly issued, fully paid and nonassessable and will be free of restrictions on transfer, other than restrictions on transfer, if any (i) under this Agreement, the
Investor’s Rights Agreement and the ROFR Agreement, (ii) under applicable state and federal securities laws and (iii) otherwise imposed as a result of actions taken by Investor. 
 2.6 Governmental Consents. No consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing
with, any federal, state or local governmental authority on the part of the Company is required in connection with the consummation of the transactions contemplated by this Agreement and the Related Agreements, except for such consents, approvals,
orders, authorizations, registrations, qualifications, designations, declarations or filings which are not required to be obtained prior to the Closing, and such filings as are required pursuant to applicable federal and state securities laws and
blue sky laws, which filings will be effected within the required statutory period. 
 2.7 Offering. Subject in part to the truth and
accuracy of Investor’s representations set forth in Section 3 of this Agreement, the offer, sale and issuance of the Shares as contemplated by this Agreement are exempt from the registration requirements of the Act, and the qualification
or registration requirements of applicable state blue sky laws, as such registration requirements and laws currently exist. 
 2.8
Litigation. There is no action, suit, proceeding or investigation pending or, to the Company’s knowledge, currently threatened in writing against the Company that questions the validity of this Agreement or the Related Agreements, or the
right of the Company to enter into such agreements or to consummate the transactions contemplated hereby and thereby, or that would reasonably be expected to result in a Material Adverse Effect. The Company is not a party or subject to the
provisions of any order, writ, injunction, judgment or decree of any court or government agency or instrumentality. There is no action, suit, proceeding or investigation by the Company currently pending or that the Company currently intends to
initiate. 
 2.9 Proprietary Information Agreements. Each current employee of the Company has executed a Proprietary Information and
Inventions Agreement in substantially the form provided to Investor upon request by Investor. The Company is not aware that any such employee is in violation thereof. 
 2.10 Compliance with Other Instruments. The Company is not in violation of any provision of its Restated Certificate or Bylaws nor, to its knowledge, of any instrument, judgment, order, writ, decree or
contract, statute, rule or regulation to which the Company is subject and a violation of which would reasonably be expected to have a Material Adverse Effect. The execution, delivery and performance of this Agreement and the Related Agreements, and
the consummation of the transactions contemplated hereby and thereby will not result in any such violation, or be in conflict with or constitute, with or without the passage of time and giving of notice, either a default under any such provision or
an event that results in the creation of any lien, charge or encumbrance upon any assets of the Company or the suspension, revocation, impairment, forfeiture or nonrenewal of any material permit, license, authorization or approval applicable to the
Company, its business or operations or any of its assets or properties. 
 2.11 Agreements; Action. Except for agreements explicitly
contemplated hereby, there are no agreements or understandings between the Company and any of its officers, directors, affiliates or any affiliate thereof (except for quarterly allocations for services performed by Arrowhead) and except as set forth
on Schedule 2.11, 
  

 4 

 (a) there are no agreements, understandings, instruments, contracts, judgments, orders, writs or decrees
to which the Company is a party or by which it is bound that may involve (i) obligations (contingent or otherwise) of, or payments to the Company, in excess of $10,000, other than obligations of, or payments to, the Company arising from
purchase or sale agreements entered into in the ordinary course of business, or (ii) provisions materially restricting the development, manufacture or distribution of the Company’s products or services, and 
 (b) The Company has not (i) declared or paid any dividends or authorized or made any distribution upon or with respect to any class or series of
its capital stock, (ii) made any loans or advances to any person, other than ordinary advances for travel expenses, or (iii) sold, exchanged or otherwise disposed of any of its assets or rights. 
 (c) For the purposes of subsections (a) and (b) above, all indebtedness, liabilities, agreements, understandings, instruments and contracts
involving the same person or entity (including persons or entities the Company has reason to believe are affiliated therewith) shall be aggregated for the purpose of meeting the individual minimum dollar amounts of such subsections. 
 2.12 Related-Party Transactions. No employee, officer or director of the Company or member of his or her immediate family is indebted to the
Company, nor is the Company indebted (or committed to make loans or extend or guarantee credit) to any of them. To the best of the Company’s knowledge, other than in Arrowhead Research Corporation, a Delaware corporation
(“Arrowhead”) or in any of Arrowhead’s subsidiaries, none of such persons has any direct or indirect ownership interest in any firm or corporation with which the Company is affiliated or with which the Company has a
business relationship, or any firm or corporation that competes with the Company, except that employees, officers or directors of the Company and members of their immediate families may own stock in publicly traded companies that may compete with
the Company. No member of the immediate family of any officer or director of the Company is directly or indirectly interested in any material contract with the Company. 
 2.13 No Undisclosed Liabilities. Except as set forth in the Financial Statements (as defined in Section 2.25), the Company does not have any liabilities (whether accrued, absolute, unliquidated, contingent
or otherwise, whether or not known to the Company, whether due or to become due and regardless of when asserted) arising out of transactions entered into at or prior to the Closing, or any action or inaction at or prior to the Closing or any state
of facts existing at or prior to the Closing other than (i) liabilities and obligations that have arisen after March 31, 2009 in the ordinary course of business (none of which is material and none of which is a liability resulting from
breach of contract, breach of warranty, tort, infringement, claim or lawsuit), or (ii) obligations under contracts and commitments incurred in the ordinary course of business that would not be required to be reflected in financial statements
prepared in accordance with generally accepted accounting principles. The Company is not a guarantor or indemnitor of any indebtedness of any other person, firm or corporation. 
 2.14 Permits. The Company has all franchises, permits, licenses and any similar authority necessary for the conduct of its business as now being
conducted by it, except to the extent the lack of which would not reasonably be expected to have a Material Adversely Effect. The Company is not in default under any of such franchises, permits, licenses or other similar authority which would be
reasonably expected to have a Material Adverse Effect. 
 2.15 Environmental and Safety Laws. 
 (a) Except as set forth in Section 2.14(b), to its knowledge, the Company is not in violation of any applicable statute, law or regulation relating
to the environment or occupational health and safety, and, to its knowledge, no material expenditures are or will be required in order to comply with any such existing statute, law or regulation. 
  

 5 

 (b) The US Environmental Protection Agency (the “EPA”) has issued recent
guidance regarding the classification of carbon nanotubes under the Toxic Substances Control Act. The EPA has stated that it now considers carbon nanotubes to be “new chemicals” rather than materials previously listed on the TSCA
Inventory, such as synthetic graphite or other carbon compounds. The Company is in the process of reviewing its compliance with this guidance and has filed paperwork with the EPA. Accordingly, the Company withholds any representation or warranty
regarding the matters disclosed in this Section 2.14(b), including its compliance with the new EPA guidance. 
 2.16 Disclosure.
The Company has fully provided Investor with all the information that Investor has requested in writing for deciding whether to purchase the Shares. Neither this Agreement (including all the exhibits and schedules hereto) nor any other statements or
certificates made or delivered in connection herewith contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements herein or therein not misleading in light of the circumstances under which they
were made. 
 2.17 Registration Rights. Except as provided in the Investors’ Rights Agreement, the Company has not granted or
agreed to grant any registration rights, including piggyback rights, to any person or entity. 
 2.18 Title to Property and Assets.
The property and assets used by the Company in its business are owned by the Company free and clear of all mortgages, liens, loans and encumbrances, except for (i) statutory liens for the payment of current taxes that are not yet delinquent and
(ii) for liens, encumbrances and security interests that arise in the ordinary course of business and/or pursuant to applicable law, and minor defects in title, none of which, individually or in the aggregate, would reasonably be expected to
have a Material Adverse Effect. With respect to the property and assets it leases, the Company is in compliance with such leases and, to its knowledge, holds a valid leasehold interest free of any liens, claims or encumbrances, subject to clauses
(i)-(ii) of the foregoing sentence, except to the extent the failure to be in compliance or hold a valid leasehold interest would not reasonably be expected to have a Material Adverse Effect. 
 2.19 Labor Agreements and Actions. The Company is not bound by or subject to any contract, commitment or arrangement with any labor union, and no
labor union has requested or, to the Company’s knowledge, has sought to represent any of the employees, representatives or agents of the Company. There is no strike or other labor dispute involving the Company pending, or to the Company’s
knowledge, threatened in writing, that would reasonably be expected to have a Material Adverse Effect, nor is the Company aware of any labor organization activity involving its employees. The Company is not aware that any officer or key employee, or
that any group of key employees, intends to terminate their employment with the Company, nor does the Company have a present intention to terminate the employment of any of the foregoing. The employment of each officer and employee of the Company is
terminable at the will of the Company. The Company is not a party to or bound by any currently effective employment contract, deferred compensation agreement, bonus plan, incentive plan, profit sharing plan, retirement agreement or other employee
compensation agreement. To its knowledge, the Company has complied in all material respects with all applicable state and federal equal employment opportunity and other laws related to employment. 
 2.20 Brokers Fees. The Company expects to pay third-party finders or advisors finder’s fees (in cash and/or equity) for Shares placed by
such third party. For the sake of clarity, no finder’s fees will be paid for Shares not placed by a third-party finder or advisor. 
  

 6 

 2.21 Intellectual Property. To its knowledge, the Company has rights to all patents, patent
applications, trademarks, service marks, trade names, copyrights, trade secrets, licenses, inventions, information and proprietary rights and processes (collectively, “Intellectual Property”) it needs to operate its business
as currently conducted, other than Intellectual Property that it reasonably believes is invalid or it can obtain rights to through a license or cross-licensing arrangement. The Company has not received any communications alleging that the Company
has violated or, by conducting its business as presently proposed, would violate any of the Intellectual Property of any other person or entity. The Company is not aware that any of its employees is obligated under any contract (including licenses,
covenants or commitments of any nature) or other agreement, or subject to any judgment, decree or order of any court or administrative agency, that would interfere with the use of his or her best efforts to promote the interests of the Company or
that would conflict with the Company’s business as presently proposed to be conducted. Neither the execution nor delivery of this Agreement, nor the carrying on of the Company’s business by the employees of the Company, nor the conduct of
the Company’s business as presently proposed, will, to the Company’s knowledge, conflict with or result in a breach of the terms, conditions or provisions of, or constitute a default under, any contract, covenant or instrument under which
any of such employees is now obligated. The Company does not believe it is or will be necessary to utilize any inventions of any of its employees (or people it currently intends to hire) made prior to their employment by the Company. 
 2.22 Tax Returns and Payments. There are no federal, state, county, local or foreign taxes dues and payable by the Company which have not been
timely paid. There are no accrued and unpaid federal, state, country, local or foreign taxes of the Company which are due, whether or not assessed or disputed. There have been no examinations or audits of any tax returns or reports by any
applicable federal, state, local or foreign governmental agency. The Company has duly and timely filed all federal, state, county, local and foreign tax returns required to have been filed by it and there are in effect no waivers of applicable
statutes of limitations with respect to taxes for any year. 
 2.23 Insurance. The Company has in full force and effect fire and
casualty insurance policies with extended coverage, sufficient in amount (subject to reasonable deductions) to allow it to replace any of its properties that might be damaged or destroyed. 
 2.24 ERISA. The Company has made all required contributions and has no liability to any such employee benefit plan, other than liability for
health plan continuation coverage described in Part 6 of Title I(B) of Employee Retirement Income Security Act of 1974, as amended, and has complied in all material respects with all applicable laws for any such employee benefit plan.

 2.25 Financial Statements. Attached hereto in Schedule 2.25 is the Company’s unaudited financial statements (balance sheet,
income statement and statement of cash flows) dated March 31, 2008 (“Financial Statements”). The Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles applied on a
consistent basis throughout the periods indicated and with each other. The Financial Statements are true, correct and complete and fairly present the financial condition and operating results of the Company as of the dates, and for the periods,
indicated therein, subject to normal year-end audit adjustments. 
 2.26 Changes. Since March 31, 2009, and at all times up to
the Closing, there have not been: 
  

	 	a.	 any material change in the assets, liabilities, financial condition or operating results of the Company from that reflected in the Financial Statements, except
(i) the sale by the Company of certain assets, including equipment, inventory and intellectual property rights pursuant to a Asset purchase Agreement, dated as of May 1, 2009, between the 

  

 7 

	 	 
Company and Continental Carbon Nanotechnologies, and (ii) changes in the ordinary course of business that have not been, in the aggregate, materially
adverse; 

  

	 	b.	any damage, destruction or loss, whether or not covered by insurance, materially and adversely affecting the assets, properties, financial condition, operating results, prospects or
business of the Company (as such business is presently conducted and as it is proposed to be conducted); 

  

	 	c.	any material change or amendment to a material contract or arrangement by which the Company or any of its assets or properties is bound or subject; 

  

	 	d.	any declaration, setting aside or payment or other distribution in respect of any of the Company’s capital stock, or any direct or indirect redemption, purchase or other
acquisition of any of such stock by the Company; 

  

	 	e.	any sale, assignment or transfer of any patents, trademarks, copyrights, trade secrets or other intangible assets, except the sale by the Company of certain assets, including
equipment, inventory and intellectual property rights pursuant to a Asset purchase Agreement, dated as of May 1, 2009, between the Company and Continental Carbon Nanotechnologies; 

  

	 	f.	to the Company’s knowledge, any other event or condition of any character that might materially and adversely affect the assets, properties, financial condition, operating
results or business of the Company (as such business is presently conducted and as it is proposed to be conducted); or 

  

	 	g.	any agreement or commitment by the Company to do any of the things described in this Section 2.26. 

 3. Representations and Warranties of Investor. Investor hereby represents, warrants and covenants to the Company that: 
 3.1 Authorization. Investor has full power and authority to enter into this Agreement and the Related Agreements to which it is a party, and each
such agreement constitutes its valid and legally binding obligation, enforceable in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies, and (iii) to the extent the indemnification provisions contained
in the Related Agreements may be limited by applicable federal or state securities laws. 
 3.2 Purchase Entirely for Own Account.
This Agreement is made with Investor in reliance upon Investor’s representation to the Company, which by Investor’s execution of this Agreement, Investor hereby confirms that the Shares will be acquired for investment for Investor’s
own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that Investor has no present intention of selling, granting any participation in or otherwise distributing the same. By executing this
Agreement, Investor further represents that Investor does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to any of the
Shares. 
 3.3 Disclosure of Information. Investor believes it has received all the information it considers necessary or appropriate
for deciding whether to purchase the Shares. Investor further represents that it has had an opportunity to ask questions and receive answers from the Company 

  

 8 

 
regarding the terms and conditions of the offering of the Shares and the business, properties, prospects and financial condition of the Company. The
foregoing, however, does not limit or modify the representations and warranties of the Company in Section 2 of this Agreement or the right of Investor to rely thereon. 
 3.4 Investment Experience. Investor is an investor in securities of companies in the development stage and acknowledges that he/she/it is able to
bear the economic risk of its investment, and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment in the Shares. If other than an individual, Investor also
represents it has not been organized for the purpose of acquiring the Shares. 
 3.5 Accredited Investor. Investor is an
“accredited investor” within the meaning of SEC Rule 501 of Regulation D. All of the information in the Investor Questionnaire delivered by Investor to the Company in connection with Investor’s purchase of the Shares remains complete,
true and correct as of the Closing or the Additional Closing, as applicable. 
 3.6 Restricted Securities. Investor understands that
the Shares it is purchasing are characterized as “restricted securities” under the federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering, and that under such laws and
applicable regulations, such Shares may be resold without registration under the Act only in certain limited circumstances. In the absence of an effective registration statement covering the Shares or an available exemption from registration under
the Act, the Shares (and any Common Stock issued on conversion of the Shares) must be held indefinitely. 
 3.7 No Brokers. Investor
has not taken any action which would give rise to any claim by any person for brokerage commissions, finder’s fees or similar payments relating to this Agreement or the transactions contemplated hereby. 
 3.8 Legends. It is understood that the certificates evidencing the Shares may bear one or all of the following legends: 
 (a) “These securities have not been registered under the Securities Act of 1933, as amended. They may not be sold, offered for sale, pledged or
hypothecated in the absence of a registration statement in effect with respect to the securities under such Act or an opinion of counsel satisfactory to the Company that such registration is not required or unless sold pursuant to Rule 144 of such
Act.” 
 (b) Legends required to indicate that the Shares are subject to the terms of the Investors Rights Agreement and ROFR
Agreement. 
 (c) Any legend required by applicable laws. 
 4. Optional Conversion of the Shares. 
 4.1 Optional Conversion. Investor shall have the
right, by giving notice thereof to the Company pursuant to this Section 4, to convert all (but not less than all) of the outstanding Shares held by the Investor (and purchased under this Agreement) into shares of the Company’s Qualified
Stock (as defined below), pursuant to the provisions of this Section 4 concurrently with the closing of a Qualified Transaction (as defined below)(or the first closing in a series of closings). 
 4.2 Qualified Transaction. A “Qualified Transaction” shall mean the Company’s receipt of at least $2,500,000 in
proceeds from: (i) a sale by the Company, in one or more related transactions, of a new series of preferred stock (the “Qualified Stock”) in a financing event (the “Qualified 

  

 9 

 
Financing”); or (ii) a combination of (a) a sale of Qualified Stock as described in Section 4.2(i), and (b) the sale
by the Company of some or all of its assets and/or business operations in materials for anti-static polymers. 
 4.3 Notice. The
Company shall provide the Investor with a notice no later than 15 business days prior to the closing of the Qualified Transaction indicating the proposed closing date, together with the terms and conditions of the Qualified Transactions, the rights,
preferences and privileges of the Qualified Stock and the conversion calculation determined in accordance with Section 4.4 below. Each Investor shall have the right to exercise its rights to convert its Shares into the Qualified Stock under
Section 4.1 by giving notice thereof to the Company no later than 5 business days prior to the proposed closing date. 
 4.4
Conversion Calculation. In connection with a Qualified Transaction, the Shares shall be converted into Qualified Stock in accordance with the following formula: 
 A = B * [(C ÷ D) * E] 
 A = the number of shares of Qualified Stock issuable to Investor in connection with the
Qualified Transaction; 
 B = the number of Shares purchased by Investor pursuant to this Agreement; 
 C = $1.80; 
 D = the price per share at which the Qualified Stock is sold to
investors in the Qualified Financing; and 
 E = 1.10. 
 For the
avoidance of doubt, the calculation in this Section 4.3 shall be performed in the following order: (i) divide C by D, (ii) multiply the amount in (i) by E, and (iii) multiply the amount in (ii) by B. 
 4.5 Deliverables. Upon any conversion of Shares under this Section 4, the Investor will execute and deliver to the Company, at the closing
of such Qualified Financing, such stock purchase agreement, investors’ rights agreement, co-sale agreement, voting and/or other agreements as are entered into by the investors in the Qualified Financing generally. The Company shall not be
obligated to issue certificates evidencing the shares of Qualified Stock issuable upon conversion unless the certificates evidencing the Shares are either delivered to the Company or its transfer agent, or the Investor notifies the Company or its
transfer agent that such certificates have been lost, stolen or destroyed and executes an agreement satisfactory to the Company to indemnify the Company from any loss incurred by it in connection with such certificates. Upon the occurrence of such
conversion of the Shares, the Investor shall surrender the certificates representing such Shares at the office of the Company or any transfer agent for the Company’s capital stock. Thereupon, there shall be issued and delivered to the Investor
promptly at such office and in its name as shown on such surrendered certificate or certificates, a certificate or certificates for the number of shares of Qualified Stock into which the Shares surrendered were convertible on the date on which such
automatic conversion occurred. 
 5. Conditions to Investor’s Obligations at Closing. The following conditions must be satisfied
by the Company, unless waived by Investor, in Investor’s sole and absolute discretion. 
 5.1 Representations and Warranties.
The representations and warranties of the Company contained in Section 2 shall be true on and as of the Closing with the same effect as though such representations and warranties had been made on and as of the date of the Closing. 

 

 10 

 5.2 Performance. The Company shall have performed and complied with all agreements, obligations
and conditions contained in this Agreement that are required to be performed or complied with by it on or before the Closing. 
 5.3
Qualifications. All authorizations, approvals or permits, if any, of any governmental authority or regulatory body of the United States or of any state that are required in connection with the lawful issuance and sale of the Shares pursuant
to this Agreement shall be duly obtained and effective, other than such authorizations, approvals or permits or other filings which may be timely made after such issuance and sale of the Shares. 
 5.4 Amendment to Restated Certificate. The Company shall have filed the Certificate of Amendment of Restated Certificate in the form attached
hereto as Exhibit D-2 with the Delaware Secretary of State. 
 5.5 Proceedings and Documents. All corporate and other
proceedings in connection with the transactions contemplated at the Closing and all documents incident thereto shall be reasonably satisfactory in form and substance to Investor, and Investor shall have received all such counterpart original and
certified or other copies of such documents as may be reasonably requested. 
 5.6 General. The holders of Common Stock and/or
Preferred Stock shall have amended any other agreement or arrangement, or given any further consent required to allow the Company to execute and perform this Agreement and the Related Agreements. 
 6. Conditions to the Company’s Obligations at Closing. The following conditions must be satisfied by Investor, unless waived in writing by
the Company, in the Company’s sole and absolute discretion. 
 6.1 Representations and Warranties. The representations and
warranties of the Investor contained in Section 3 shall be true on and as of the Closing or the Additional Closing (as applicable) with the same effect as though such representations and warranties had been made on and as of the date of such
closing. 
 6.2 Payment of the Purchase Price. Investor shall have delivered to the Company the purchase price for the Shares.

 6.3 Securities Exemptions. The offer and sale of the Shares to Investor pursuant to this Agreement shall be exempt from the
registration requirements of the Act, the qualification requirements of the California General Corporation Law and the registration and/or qualification requirements of all other applicable state securities laws. 
 6.4 Proceedings and Documents. All corporate and other proceedings in connection with the transactions contemplated at the Closing or the
Additional Closing (as applicable) and all documents incident thereto shall be reasonably satisfactory in form and substance to the Company, and the Company shall have received all such counterpart original and certified or other copies of such
documents as may be reasonably requested. 
 7. Miscellaneous. 
 7.1 Survival. The warranties, representations and covenants of the Company and Investor contained in or made pursuant to this Agreement shall
survive the execution and delivery of this Agreement and the Closing or the Additional Closing (as applicable) and shall in no way be affected by any investigation of the subject matter thereof made by or on behalf of Investor or the Company.

  

 11 

 7.2 Successors and Assigns. Except as otherwise provided herein, the terms and conditions of this
Agreement shall inure to the benefit of, and be binding upon, the respective successors and assigns of the parties (including transferees of any Shares). Nothing in this Agreement, express or implied, is intended to confer upon any party, other than
the parties hereto or their respective successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. 
 7.3 Governing Law. This Agreement shall be governed by and construed under the laws of the State of California as applied to agreements among
California residents entered into and to be performed entirely within California, except with respect to conflict of laws. 
 7.4 Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 
 7.5 Notices. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (i) upon personal
delivery to the party to be notified, (ii) when sent by confirmed telex or facsimile if sent during normal business hours of the recipient, if not, then on the next business day; (iii) five (5) days after having been sent by
registered or certified mail, return receipt requested, postage prepaid; or (iv) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All
communications shall be sent to the address as set forth on the signature page hereof or at such other address as such party may designate by ten (10) days’ advance written notice to the other parties hereto. 
 7.6 Responsibility for Brokers Fees. Investor indemnifies and holds harmless the Company from any liability for any commission or compensation in
the nature of a finders’ fee (and the costs and expenses of defending against such liability or asserted liability) for which Investor or any of its officers, partners, employees or representatives is responsible. The Company indemnifies and
holds harmless Investor from any liability for any commission or compensation in the nature of a finders’ fee (and the costs and expenses of defending against such liability or asserted liability) for which the Company or any of its officers,
employees or representatives is responsible. 
 7.7 Aggregation of Stock. All issued and outstanding shares of the Series C-1
Preferred Stock and Common Stock issued upon conversion thereof held or acquired by affiliated entities or persons shall be aggregated together for the purpose of determining the availability of any rights under this Agreement. 
 7.8 Amendments and Waivers. Any term of this Agreement may be amended, and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and Investor. 
 7.9 Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such
provision were so excluded and shall be enforceable in accordance with its terms. 
 7.10 Entire Agreement. This Agreement and the
documents referred to herein constitute the entire agreement among the parties, and this Agreement supersedes all prior written and oral agreements, and all contemporaneous written and oral agreements, relating to the subject matter hereof.

 7.11 Counterparts; Facsimile/PDF Signatures. This Agreement may be executed in two or more counterparts, and by facsimile
signatures or portable document format (.pdf or similar format), each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 [SIGNATURE PAGE FOLLOWS] 
  

 12 

 [Company Signature Page to Subscription Agreement] 
  

					
	Dated: JUNE 25, 2009	 	COMPANY:
		
		 	 UNIDYM, INC. 
 a Delaware
corporation

			
		 	By:	 	 /S/ MARK TILLEY

		 		 	Mark Tilley
		 		 	CEO & President

					
			
		 	Address:	 	 1430 Obrien Drive
 Menlo Park, CA
94025

 [Investor Signature Page to Subscription Agreement] 
 I HEREBY REPRESENT THAT I HAVE READ AND UNDERSTOOD THE SUBSCRIPTION AGREEMENT. 
 Dated: JUNE 25, 2009 
 Subscription: I hereby subscribe for the following number of Shares at the
Purchase Price indicated: 
 Total Number of Shares: 333,334 
 Total Purchase Price ($1.80 Per Share): payable as follows: $420,001.02 in cash and $80,000 in bridge loans and $100,000 for intercompany advances for payroll and operating expenses by Arrowhead for the benefit of Unidym. 
  

					
	 Arrowhead Research Corporation
	  	
	 Please print the exact name(s) in which the Shares will be issued

			
	Print Name of Signer:	  	 Paul McDonnel
	  	

					
			
	Signature:	  	 /s/ Paul McDonnel
	  	

					
			
	Title of Signer (if purchaser is an entity):	  	 Chief Financial Officer

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