Document:

Stock Purchase Agreement dated July 28, 2011

 Exhibit 10.1 
 STOCK PURCHASE AGREEMENT 
 This Stock Purchase Agreement (this
“Agreement”), dated as of July 28, 2011, is entered into by and between Harbor BioSciences, Inc., a Delaware corporation (the “Company”), and Amun LLC, a Delaware limited liability company (including its
successors and assigns, the “Purchaser”). 
 RECITALS: 

WHEREAS, subject to the terms and conditions set forth in this Agreement and in reliance upon the exemption from securities registration
afforded by Section 4(2) of the Securities Act of 1933 and Rule 506 of Regulation D under the Securities Act, the Company desires to issue and sell to Purchaser, and Purchaser desires to purchase from the Company, two million
(2,000,000) shares (the “Shares”) of the Preferred Stock. 
 WHEREAS, the sale of the Shares is in
furtherance of the Company’s purpose of entering into a Qualifying Transaction in order to provide financing for, and to diversify, the Company’s business. 
 AGREEMENT: 
 NOW, THEREFORE, IN CONSIDERATION of the mutual covenants
contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and Purchaser agree as follows: 

ARTICLE I 

DEFINITIONS 
 1.1 Definitions. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the meanings set forth in this Section 1.1:

 “2010 Warrant” shall have the meaning ascribed to such term in Section 5.2. 

“Action” shall have the meaning ascribed to such term in Section 3.2(j). 

“Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled
by or is under common control with a Person as such terms are used in and construed under Rule 405 under the Securities Act. 
 “Agreement” shall have the meaning ascribed to such term in the first paragraph of this Agreement. 
 “Board of Directors” means the board of directors of the Company. 

“Business Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United
States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close. 

 “Bylaw Amendment” means the amendment to the bylaws of the Company approved
by the Board of Directors in the form attached hereto as Exhibit A. 
 “Certificate of Designations”
means the Certificate of Designations relating to the Preferred Stock approved by the Board of Directors in the form attached hereto as Exhibit B. 
 “Change of Recommendation” means that, except as required by the Exchange Act, to withdraw or modify, or propose publicly to withdraw or modify, in a manner adverse to Purchaser, the
approval or recommendation by the Board of Directors or any committee thereof to the stockholders of the Charter Amendments or the transactions contemplated hereby. 
 “Charter Amendments” means those amendments to the certificate of incorporation of the Company approved by the Board of Directors in the forms attached hereto as Exhibit C as well
as the amendments to the certificate of incorporation relating to the Reverse Stock Split and Forward Stock Split. 

“Code” means the Internal Revenue Code of 1986, as amended. 

“Commission” means the United States Securities and Exchange Commission. 

“Common Stock” means the common stock, $0.01 par value per share, of the Company. 

“Common Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder
thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the
holder thereof to receive, Common Stock. 
 “Company” shall have the meaning ascribed to such term in the first
paragraph of this Agreement. 
 “Company Counsel” means Stradling Yocca Carlson & Rauth, with offices
located at 4365 Executive Drive, Suite 1500, San Diego, California 92121. 
 “Disclosure Schedule” means the
disclosure schedule of the Company delivered concurrently herewith. 
 “Equity Incentive Plan” means any one of
the Company’s 1997 Incentive Stock Option Plan, the 2005 Equity Incentive Plan or the 2005 Non-Employee Directors’ Equity Incentive Plan, in each case as amended or otherwise modified from time to time, prior to the date of this Agreement.

 “Escrow” means the escrow of $2.825 million in cash by Purchaser pursuant to the Escrow Agreement.

 “Escrow Agent” has the meaning ascribed to such term in the Escrow Agreement. 

  
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 “Escrow Agreement” means that certain escrow agreement, dated as of the
date of this Agreement, in the form attached hereto as Exhibit D. 
 “Escrowed Expenses” shall have the
meaning ascribed to such term in Section 5.2. 
 “Evaluation Date” shall have the meaning ascribed to such
term in Section 3.2(r). 
 “Exchange Act” means the Securities Exchange Act of 1934. 

“FDA” shall have the meaning ascribed to such term in Section 3.2(gg). 

“FDCA” shall have the meaning ascribed to such term in Section 3.2(gg). 

“Forward Stock Split” means the proposed amendment to the certificate of incorporation of the Company, which following
the Reverse Stock Split, converts each outstanding share of Common Stock into 1000 shares of Common Stock. 

“Fractional Share Purchase Expenses” shall have the meaning ascribed to such term in Section 5.2. 

“Fundamental Transaction” shall have the meaning ascribed to such term in Section 5.2. 

“GAAP” shall have the meaning ascribed to such term in Section 3.2(h). 

“Indebtedness” shall have the meaning ascribed to such term in Section 3.2(z). 

“Initial Closing” means the initial closing of the purchase and sale of the Shares pursuant to Section 2.1.

 “Initial Closing Date” means the date hereof. 

“Intellectual Property Rights” shall have the meaning ascribed to such term in Section 3.2(o). 

“Knowledge” means in the case of an individual that he or she will be deemed to have Knowledge of a particular fact or
other matter if such individual is actually aware of such fact or other matter or would reasonably be expected to be aware of such fact or other matter after reasonable inquiry. 

“Knowledge of the Company” and similar variations thereof means the Knowledge, as of the relevant date, of James Frincke
or Robert Weber. 
 “Liens” means a lien, charge, claim, pledge, security interest, encumbrance, right of first
refusal, preemptive right or other restriction, other than restrictions imposed by securities laws. 
 “Material Adverse
Effect” means (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document or (ii) a material adverse effect on the results of operations, assets, business or condition (financial or
otherwise) of the Company and the Subsidiaries, taken as a whole. 

  
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 “Material Permits” shall have the meaning ascribed to such term in
Section 3.2(m). 
 “NOL Provision” shall have the meaning ascribed to such term in the proposed amendment
to the certificate of incorporation of the Company approved by the Board of Directors in the form attached hereto as Exhibit C. 
 “Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or
an agency or subdivision thereof) or other entity of any kind. 
 “Pharmaceutical Product” shall have the
meaning ascribed to such term in Section 3.2(gg). 
 “Preferred Stock” means the Series A Preferred Stock,
$0.01 par value per share, of the Company, and any other shares of stock issued or issuable with respect thereto (whether by way of a stock dividend or stock split or in exchange for or upon conversion of such shares or otherwise in connection with
a combination of shares, recapitalization, merger, consolidation or other reorganization). 
 “Proxy Statement”
shall have the meaning ascribed to such term in Section 4.9(a). 
 “Purchaser” shall have the meaning
ascribed to such term in the first paragraph of this Agreement. 
 “Purchaser Party” shall have the meaning
ascribed to such term in Section 4.5. 
 “Put Right” shall have the meaning ascribed to such term in the
Stockholders Agreement. 
 “Qualifying Transaction” shall have the meaning ascribed to such term in the
Stockholders Agreement. 
 “Required Approvals” shall have the meaning ascribed to such term in
Section 3.2(e). 
 “Reverse Stock Split” means the proposed amendment to the certificate of incorporation
of the Company that converts each outstanding share of Common Stock into 1/1000 of a share of Common Stock. 
 “Rights
Plan Amendment” means the amendment to the Company’s Shareholder Rights Plan approved by the Board of Directors in the form attached hereto as Exhibit E. 
 “Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or
regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule. 

“Schedule 13E-3” shall have the meaning ascribed to such term in Section 4.9(a). 

“SEC Reports” shall have the meaning ascribed to such term in Section 3.2(h). 

  
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 “Securities Act” means the Securities Act of 1933. 

“Shares” shall have the meaning ascribed to such term in the second paragraph of this Agreement. 

“Short Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act
(but shall not be deemed to include the location and/or reservation of borrowable shares of Common Stock). 

“Stockholders Agreement” means that certain Stockholders Agreement, dated the date of this Agreement, in the form
attached hereto as Exhibit F. 
 “Stockholders Meeting” means the annual meeting of the stockholders of
the Company. 
 “Subsidiaries” shall mean, with respect to any Person, any corporation, association or other
business entity of which more than 50% of the total voting power of shares of stock or other equity interest entitled to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by
that Person or one or more of the other Subsidiaries of that Person or a combination thereof. 
 “Trading Day”
means a day on which the principal Trading Market is open for trading. 
 “Trading Market” means any of the
following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE AMEX, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange or the
OTC Bulletin Board (or any successors to any of the foregoing). 
 “Transaction Documents” means this Agreement
and any other documents or agreements executed in connection with the transactions contemplated hereunder. 
 “Transfer
Agent” means American Stock Transfer & Trust Company, the current transfer agent of the Company, with a mailing address of 59 Maiden Lane, Plaza Level, New York, New York 10038, and any successor transfer agent of the Company.

 “Warrant Expenses” shall have the meaning ascribed to such term in Section 5.2. 

“Working Capital Amount” shall have the meaning ascribed to such term in Section 2.5. 

ARTICLE II 

PURCHASE AND SALE 
 2.1 Initial Closing. On the Initial Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with the execution and delivery of this Agreement by the
parties hereto, Purchaser shall deliver $2.825 million in cash into Escrow, a portion of which shall be used to pay the Escrowed Expenses in consideration for the issuance to Purchaser of the Shares and the remainder of which may be released to the
Company as contemplated by Sections 2.5 and 5.2 and in accordance with the Escrow Agreement as additional consideration for the Shares. In addition, the Company and Purchaser shall also 

  
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deliver the other items set forth in Section 2.2 at the Initial Closing. Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the Initial Closing shall
occur at the offices of Company Counsel or such other location as the parties shall mutually agree. 
 2.2 Deliveries.

 (a) On or prior to the Initial Closing Date, Purchaser shall deliver or cause to be delivered to the Company
the following: 
 (i) this Agreement duly executed by Purchaser; 

(ii) the Escrow Agreement duly executed by Purchaser; and 

(iii) the Stockholders Agreement duly executed by Purchaser. 

(b) On or prior to the Initial Closing Date, the Company shall deliver or cause to be delivered to Purchaser the
following: 
 (i) this Agreement duly executed by the Company; 

(ii) a legal opinion of Company Counsel, substantially in the form of Exhibit G attached hereto; 

(iii) a certificate evidencing two million (2,000,000) shares of Preferred Stock registered in the name of Amun LLC;

 (iv) the Escrow Agreement duly executed by the Company; 

(v) the Stockholders Agreement duly executed by the Company; 

(vi) the Bylaw Amendment adopted by the Board of Directors; 

(vii) the Certificate of Designations adopted by the Board of Directors; and 

(viii) the proposed Charter Amendments adopted by the Board of Directors. 

(c) Within one (1) Business Day of the Initial Closing Date, the Company shall deliver or cause to be delivered to
Purchaser the Rights Plan Amendment adopted by the Board of Directors and Purchaser shall deliver or cause to be delivered to the Company the Escrow Agent’s confirmation that $2.825 million in cash has been delivered into Escrow. 

  
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 2.3 Initial Closing Conditions. 

(a) The obligations of the Company hereunder in connection with the Initial Closing are subject to the following
conditions being met: 
 (i) the accuracy in all material respects on the Initial Closing Date of the
representations and warranties of Purchaser contained herein (unless as of a specific date therein in which case they shall be accurate as of such date); 
 (ii) all obligations, covenants and agreements of Purchaser required to be performed at or prior to the Initial Closing Date shall have been performed in all material respects; and 

(iii) the delivery by Purchaser of the items set forth in Section 2.2(a) of this Agreement. 

(b) The obligations of Purchaser hereunder in connection with the Initial Closing are subject to the following conditions
being met: 
 (i) the accuracy in all material respects on the Initial Closing Date of the representations and
warranties of the Company contained herein (unless as of a specific date therein in which case they shall be accurate as of such date); 
 (ii) all obligations, covenants and agreements of the Company required to be performed at or prior to the Initial Closing Date shall have been performed in all material respects; 

(iii) the delivery by the Company of the items set forth in Section 2.2(b) of this Agreement; 

(iv) there shall have been no Material Adverse Effect with respect to the Company and its Subsidiaries, taken as a whole;
and 
 (v) trading in the Common Stock shall not have been suspended by the Commission or the Company’s
principal Trading Market, and, at any time prior to the Initial Closing Date, trading in securities generally as reported by Bloomberg L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities
whose trades are reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United States or New York State authorities nor shall there have occurred any material outbreak or escalation of
hostilities or other national or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment of Purchaser, makes it impracticable or inadvisable
to acquire the Shares at the Initial Closing. 

  
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 2.4 Payment of Expenses. The Escrow Agent shall, pursuant to the terms of the Escrow
Agreement, disburse to the Company the Escrowed Expenses in accordance with the Escrow Agreement. 
 2.5 Payment of Working
Capital Amount. Beginning January 1, 2012, the Escrow Agent shall disburse to the Company on the first Business Day of each month following such date, $200,000 (the “Working Capital Amount”) for so long as:
(x) Purchaser shall not have made a Qualifying Transaction Proposal (as defined in the Stockholders Agreement) to the Company, (y) for sixty (60) calendar days following Purchaser having made a Qualifying Transaction Proposal provided
that the sixty (60) day period shall be extended an additional fourteen (14) calendar days in the event the sixty (60) day period includes all or any part of the period from December 15 through December 31, 2011; and
(z) in the event that a Qualifying Transaction has been presented and definitive documentation relating to such Qualifying Transaction has been executed, for so long as the Qualifying Transaction has not been consummated unless the failure to
consummate such Qualifying Transaction is due to the Company’s breach in any material respect of its obligations under the definitive agreements providing for the Qualifying Transaction, and if and until the Put Right is exercised or the right
to exercise the Put Right otherwise expires. 
 2.6 Final Closing. If the Put Right is not exercised within the later to
occur of (x) the twelve-month period following the Initial Closing or (y) in the event a Qualifying Transaction has not been consummated, forty-five (45) calendar days following the Company’s 2012 Stockholders Meeting, the
remaining cash and other property or assets being held pursuant to the Escrow Agreement shall be released by the Escrow Agent to the Company, pursuant to the terms of the Escrow Agreement, as additional consideration for the Shares. 

ARTICLE III 

REPRESENTATIONS AND WARRANTIES 
 3.1 Representations and Warranties of Purchaser. Purchaser hereby represents and warrants as of the date hereof and as of the Initial Closing Date to the Company as follows (unless as of a specific
date therein): 
 (a) Organization; Authority. Purchaser is either an individual or an entity duly
incorporated or formed, validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability company or similar power and authority to enter into and to
consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement and performance by Purchaser of the transactions contemplated by this
Agreement have been duly authorized by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of Purchaser. Each Transaction Document to which it is a party has been duly executed by Purchaser,
and when delivered by Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of Purchaser, enforceable against it in accordance with its terms, except: (i) as limited by general equitable
principles and 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) insofar as indemnification and contribution provisions may be limited by applicable law. 

  
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 (b) Understandings or Arrangements. Purchaser is acquiring the Shares
as principal for its own account and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Shares (provided that this representation and warranty shall not limit
Purchaser’s right to sell the Shares in compliance with applicable federal and state securities laws). 

(c) No Conflicts. The execution, delivery and performance by Purchaser of the Agreement and the consummation by it
of the transactions contemplated hereby do not and will not (i) conflict with or violate any provision of Purchaser’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with
or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which Purchaser is subject (including federal and state securities laws and regulations), or by
which any property or asset of Purchaser is bound or affected. 
 (d) Purchaser Status. At the time
Purchaser was offered the Shares, it was, and as of the date hereof it is, either: (i) an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a
“qualified institutional buyer” as defined in Rule 144A(a) under the Securities Act. Purchaser is not required to be registered as a broker-dealer under Section 15 of the Exchange Act. 

(e) Information. Purchaser and its advisors, if any, have been furnished with all materials relating to the
business, finances and operations of the Company, and materials relating to the offer and sale of the Shares, that have been requested by Purchaser or its advisors, if any. Purchaser and its advisors have been afforded the opportunity to ask
questions of the Company. Purchaser acknowledges and understands that its investment in the Shares involves a significant degree of risk, including without limitation the risks reflected in the SEC Reports. 

(f) Experience of Purchaser. Purchaser, either alone or together with its representatives, has such knowledge,
sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Shares, and has so evaluated the merits and risks of such investment. Purchaser is able to
bear the economic risk of an investment in the Shares and, at the present time, is able to afford a complete loss of such investment. 
 (g) Certain Transactions. Other than consummating the transactions contemplated hereunder, Purchaser has not, nor has any Person acting on behalf of or pursuant to any understanding with Purchaser,
directly or indirectly executed any purchases or sales (which, for the avoidance of doubt, excludes gifts or transfers for which the transferor receives no consideration), including Short Sales, of the securities of the Company during the
period commencing as of the time that Purchaser first received a term sheet (written or oral) from the Company or any other Person representing the Company setting forth the material terms of the transactions contemplated hereunder and ending
immediately prior to the execution hereof. Notwithstanding the foregoing, for avoidance of doubt, nothing contained herein shall constitute a representation or warranty, or preclude any actions, with respect to the identification of the availability
of, or securing of, available shares to borrow in order to effect Short Sales or similar transactions in the future. 

  
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 (h) Residency. Purchaser is a resident of (or, if an entity, has its
principal place of business in) the jurisdiction set forth immediately below Purchaser’s name on the signature page hereto. 
 (i) Legends. Purchaser understands that until (a) the Shares may be sold by Purchaser under Rule 144 or (b) such time as the resale of the Shares has been registered under the Securities
Act, the certificates representing the Shares will bear a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of the certificates for such Share): 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY
STATE OF THE UNITED STATES. THE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER APPLICABLE SECURITIES LAWS, OR UNLESS OFFERED, SOLD OR TRANSFERRED PURSUANT TO AN
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THOSE LAWS. 
 The Company acknowledges and agrees that the
representations contained in Section 3.1 shall not modify, amend or affect Purchaser’s right to rely on the Company’s representations and warranties contained in this Agreement or any representations and warranties contained in any
other Transaction Document or the consummation of the transaction contemplated hereby. 
 3.2 Representations and Warranties
of the Company. Except as set forth in the Disclosure Schedule, which shall be deemed a part hereof and shall be arranged in sections corresponding to the lettered subsections contained in this Section 3.2, with the disclosure in any
section of the Disclosure Schedule qualifying only the corresponding subsection in this Section 3.2 (or any other subsection specifically referenced, or any other subsection to which it is readily apparent from a reading of this schedule that
such disclosure is applicable to such other sections). The Company hereby makes the following representations and warranties to Purchaser as of the date hereof and as of the Initial Closing Date: 

(a) Subsidiaries. Except as set forth in Section 3.2(a) of the Disclosure Schedule, the Company has no
Subsidiaries and has never had any Subsidiaries. To the extent that the Company has no subsidiaries, all other references to the Subsidiaries or any of them in the Transaction Documents shall be disregarded. 

(b) Organization and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or
otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry on its business as

  
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currently conducted. Neither the Company nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other
organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to be material to the Company and its Subsidiaries, taken as a
whole or materially impair the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document and no Action has been instituted in any such jurisdiction revoking, limiting or curtailing or
seeking to revoke, limit or curtail such power and authority or qualification. 
 (c) Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations
hereunder and thereunder. The execution and delivery of this Agreement each of the other Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary
action on the part of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders in connection herewith or therewith other than in connection with the Required Approvals. This Agreement
and each other Transaction Document to which it is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation
of the Company enforceable against the Company in accordance with its terms, except (i) as limited by general equitable principles and 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) insofar as indemnification and contribution provisions
may be limited by applicable law. 
 (d) No Conflicts. The execution, delivery and performance by the
Company of this Agreement and the other Transaction Documents to which it is a party, the issuance and sale of the Shares and the consummation by it of the transactions contemplated hereby and thereby do not and will not (i) conflict with or
violate any provision of the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or
lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with
or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a the Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which
any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other
restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected;
except in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to be material to the Company and its Subsidiaries, taken as a whole. 

  
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 (e) Filings, Consents and Approvals. The Company is not required to
obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery
and performance by the Company of the Transaction Documents, other than: (i) the filings required pursuant to Section 4.3 of this Agreement and (ii) such filings as are required to be made under applicable state securities laws
(collectively, the “Required Approvals”). 
 (f) Issuance of the Shares. The Shares are
duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens. The Company has reserved from its duly authorized
capital stock the maximum number of shares of Preferred Stock issuable pursuant to this Agreement as well as the maximum number of shares of Common Stock into which such Preferred Stock is convertible. 

(g) Capitalization. The authorized capital stock of the Company consists of (i) 100,000,000 shares of Common
Stock, of which there were issued and outstanding as of the close of business on the date of this Agreement 35,465,838 shares, and (ii) 10,000,000 shares of preferred stock, none of which there were issued and outstanding as of the close of
business on the date of this Agreement. The Company is authorized to issue 8,896,169 options to purchase shares of Common Stock pursuant to its Equity Incentive Plans, of which there were issued and outstanding as of the close of business on the
date of this Agreement 3,454,743 options, none of which were granted since December 31, 2010. Of the 3,454,743 options issued and outstanding, 3,332,618 options are vested and fully exercisable. The Company has not issued any capital stock
since its most recently filed periodic report under the Exchange Act, other than pursuant to the exercise of employee stock options under the Company’s stock option plans and pursuant to the conversion and/or exercise of Common Stock
Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange Act. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions
contemplated by the Transaction Documents. Except as set forth in Section 3.2(g) of the Disclosure Schedule, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to,
or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the
Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents. The issuance and sale of the Shares will not obligate the Company to issue shares of Common Stock or other securities to any
Person (other than Purchaser) and will not result in a right of any holder of the Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities. All of the outstanding shares of capital stock of the
Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar
rights to subscribe for or purchase securities. No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and 

  
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sale of the Shares. Except as set forth in Section 3.2(g) of the Disclosure Schedule, there are no stockholders agreements, voting agreements or other similar agreements with respect to the
Company’s capital stock to which the Company is a party or, to the Knowledge of the Company, between or among any of the Company’s stockholders. 
 (h) SEC Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities Act and the
Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the foregoing materials, including
the exhibits thereto and documents incorporated by reference therein being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC
Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when
filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not
misleading. The Company has never been an issuer subject to Rule 144(i) under the Securities Act. The financial statements of the Company included in the SEC Reports complied in all material respects with applicable accounting requirements and
the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis
during the periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly
presented in all material respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited
statements, to normal, immaterial, year-end audit adjustments. 
 (i) Material Changes; Undisclosed Events,
Liabilities or Developments. Since the date of the latest audited financial statements included within the SEC Reports, except as set forth in Section 3.2(i) of the Disclosure Schedule, (i) there has been no event, occurrence or
development that has had or that could reasonably be material to the Company and its Subsidiaries, taken as a whole, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than trade payables and accrued expenses
incurred in the ordinary course of business consistent with past practice, (iii) the Company has not materially altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other
property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to
existing the Company stock option or compensation plans. The Company does not have pending before the Commission any request for confidential treatment of information. Except for the issuance of the Shares contemplated by this Agreement or as set
forth in Section 3.2(i) of the Disclosure Schedule, no event, liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company or its Subsidiaries or their
respective businesses, properties, operations, assets or financial condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly
disclosed at least one Trading Day prior to the date that this representation is made. 

  
 13 

 (j) Litigation. There is no action, claim, suit, inquiry, notice of
violation, proceeding or investigation (including, without limitation, an informal investigation or partial proceeding, such as a deposition) pending or, to the Knowledge of the Company, threatened against or affecting the Company, any Subsidiary or
any of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”) which (i) adversely
affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Shares or (ii) would, if there were an unfavorable decision, have or reasonably be expected to be material to the Company and its
Subsidiaries, taken as a whole. Neither the Company nor any Subsidiary, nor, to the Knowledge of the Company, any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or
state securities laws or a claim of breach of fiduciary duty. There has not been, and to the Knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company or, to the Knowledge of the
Company, any current or former director or officer of the Company. The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act
or the Securities Act. 
 (k) Labor Relations. No labor dispute exists or, to the Knowledge of the
Company, is imminent with respect to any of the employees of the Company, which would reasonably be expected to be material to the Company and its Subsidiaries, taken as a whole. None of the Company’s or its Subsidiaries’ employees is a
member of a union that relates to such employee’s relationship with the Company or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries
believe that their relationships with their employees are good. To the Knowledge of the Company, no executive officer of the Company or any Subsidiary, is, or is now expected to be, in violation of any material term of any employment contract,
confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant in favor of any third party, and, to the Knowledge of the Company, the continued employment
of each such executive officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance in all material respects with all U.S. federal,
state, local and foreign laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours. 
 (l) Compliance. Neither the Company nor any Subsidiary: (i) is in default in any material respect under or in violation of (and no event has occurred that has not been waived that, with notice
or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit
agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation in any material respect of any judgment,
decree or order of any court, arbitrator or other governmental authority 

  
 14 

 
or (iii) is or has been in violation of any statute, rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws
relating to taxes, environmental protection, occupational health and safety, product quality and safety and employment and labor matters. 
 (m) Regulatory Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities
necessary to conduct their respective businesses as described in the SEC Reports filed prior to the date hereof, except where the failure to possess such permits could not reasonably be expected to be material to the Company and its Subsidiaries,
taken as a whole (“Material Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any Material Permit. 

(n) Title to Assets. The Company does not own any real property. The Company and the Subsidiaries have good and
marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for (i) Liens created under license or collaboration agreements
relating to the Company’s products or Intellectual Property Rights, (ii) Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company
and the Subsidiaries and (iii) Liens for the payment of federal, state or other taxes, for which appropriate reserves have been made therefore in accordance with GAAP and, the payment of which is neither delinquent nor subject to penalties. Any
real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance in all material respects. 

(o) Intellectual Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent
applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights and similar rights necessary or required for use in connection with their respective
businesses as described in the SEC Reports filed prior to the date hereof and which the failure to so have would reasonably be expected to be material to the Company and its Subsidiaries, taken as a whole (collectively, the “Intellectual
Property Rights”). None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of, the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or
terminate or be abandoned, within two (2) years from the date of this Agreement. Neither the Company nor any Subsidiary has received, since the date of the latest audited financial statements included within the SEC Reports, a written notice of
a claim or otherwise has any Knowledge that the Intellectual Property Rights violate or infringe upon the rights of any Person, except as could not have or reasonably be expected to be material to the Company and its Subsidiaries, taken as a whole.
To the Knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights which would reasonably be expected to be material to the
Company and its Subsidiaries, taken as a whole. The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties, except where failure to do so could
not, individually or in the aggregate, reasonably be expected to be material to the Company and its Subsidiaries, taken as a whole. 

  
 15 

 (p) Insurance. The Company and the Subsidiaries are insured by
insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary for companies of similar size as the Company and in the businesses in which the Company and the Subsidiaries are engaged,
including, but not limited to, directors and officers insurance coverage at least equal to the fair market value of the amount held in escrow. Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its
existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase in cost. 

(q) Transactions With Affiliates and Employees. None of the officers or directors of the Company or any Subsidiary
and, to the Knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including any
contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, providing for the borrowing of money from or lending of money to or otherwise requiring
payments to or from any officer, director or such employee or, to the Knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member or
partner. 
 (r) Sarbanes-Oxley; Internal Accounting Controls. The Company and the Subsidiaries are in
material compliance with any and all applicable requirements of the Sarbanes-Oxley Act of 2002, and any and all applicable rules and regulations promulgated by the Commission thereunder. The Company and the Subsidiaries maintain a system of internal
accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation
of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability for
assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company and the Subsidiaries have established disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)) for the Company and the Subsidiaries and designed such disclosure controls and procedures to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange
Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. The Company’s certifying officers have evaluated the effectiveness of the disclosure controls and procedures of the
Company and the Subsidiaries as of the end of the period covered by the most recently filed periodic report under the Exchange Act (such date, the “Evaluation Date”). The Company presented in its most recently filed periodic report
under the Exchange Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no changes in the
internal control over financial reporting (as such term is defined in the Exchange Act) of the Company and its Subsidiaries that have materially affected, or is reasonably likely to materially affect, the internal control over financial reporting of
the Company and its Subsidiaries. 

  
 16 

 (s) Certain Fees. No brokerage or finder’s fees or commissions
are or will be payable by the Company or any Subsidiary to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents.
Purchaser shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due from the Company in connection with the transactions
contemplated by the Transaction Documents. 
 (t) Investment Company. The Company is not, and is not an
Affiliate of, and immediately after receipt of payment for the Shares, will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. The Company shall conduct its business
in a manner so that it will not become an “investment company” subject to registration under the Investment Company Act of 1940, as amended. 
 (u) Registration Rights. No Person has any right to cause the Company or any Subsidiary to effect the registration under the Securities Act of any securities of the Company or any Subsidiary.

 (v) Listing and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b)
or 12(g) of the Exchange Act. The Company has not, in the twelve months preceding the date hereof, received notice from any Trading Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance
with the listing or maintenance requirements of such Trading Market. The Company is in compliance in all material respects with all such listing and maintenance requirements. 

(w) Application of Takeover Protections. The Company and the Board of Directors have taken all necessary action, if
any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Company’s certificate of
incorporation (or similar charter documents) or the laws of its state of incorporation that is or could become applicable to Purchaser as a result of Purchaser and the Company fulfilling their obligations or exercising their rights under the
Transaction Documents, including without limitation as a result of the Company’s issuance of the Shares and Purchaser’s ownership of the Shares. 
 (x) Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company confirms that neither it nor any other Person
acting on its behalf has provided Purchaser or its agents or counsel with any information that it believes constitutes or might constitute material, non-public information. The Company understands and confirms that Purchaser will rely on the
foregoing representation in effecting transactions in securities of the Company. All of the disclosure furnished by or on behalf of the Company to Purchaser regarding the Company and its Subsidiaries, their respective businesses and the transactions
contemplated hereby, including the Disclosure Schedule to this Agreement, is true and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in
light of the circumstances under which they were made, not misleading. The press releases disseminated 

  
 17 

 
by the Company during the twelve months preceding the date of this Agreement taken as a whole do not contain any untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made and when made, not misleading. The Company acknowledges and agrees that Purchaser does not make or has not made any
representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3.1 hereof. 
 (y) No Integrated Offering. Assuming the accuracy of Purchaser’s representations and warranties set forth in Section 3.1, neither the Company, nor any of its Affiliates, nor any Person
acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Shares to be integrated with prior offerings
by the Company for purposes of any applicable stockholder approval provisions of any Trading Market on which any of the securities of the Company are listed or designated. 

(z) Solvency. Based on the consolidated financial condition of the Company as of the Initial Closing Date, after
giving effect to the receipt by the Company of the proceeds from the sale of the Shares hereunder, (i) the fair saleable value of the Company’s assets exceeds the amount that will be required to be paid on or in respect of the
Company’s existing debts and other liabilities (including known contingent liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small capital to carry on its business as now conducted and as proposed
to be conducted including its capital needs taking into account the particular capital requirements of the business conducted by the Company, consolidated and projected capital requirements and capital availability thereof, and (iii) the
current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of
its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its
debt). The Company has no Knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year from the Initial Closing
Date. Section 3.2(z) of the Disclosure Schedule sets forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments. For the purposes
of this Agreement, “Indebtedness” means (x) any liabilities for borrowed money or amounts owed in excess of $250,000 (other than trade accounts payable incurred in the ordinary course of business), (y) all guaranties,
endorsements and other contingent obligations in respect of indebtedness of others, whether or not the same are or should be reflected in the Company’s consolidated balance sheet (or the notes thereto), except guaranties by endorsement of
negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (z) the present value of any lease payments in excess of $250,000 due under leases required to be capitalized in accordance with
GAAP. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness except where such default would not reasonably be expected to be material to the Company and its Subsidiaries, taken as a whole. 

  
 18 

 (aa) Tax Status. The Company and its Subsidiaries each (i) has
made or filed all material United States federal, state and local income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all taxes and other
governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the payment of all material taxes
for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company or of any
Subsidiary know of no basis for any such claim. 
 (bb) Foreign Corrupt Practices. Neither the Company nor
any Subsidiary, nor to the Knowledge of the Company or the knowledge of any Subsidiary, any agent or other person acting on behalf of the Company or any Subsidiary, has (i) directly or indirectly, used any funds for unlawful contributions,
gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or
campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated
in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended. 
 (cc)
Accountants. The Company’s accounting firm is BDO Seidman, LLP. To the Knowledge of the Company, such accounting firm is a registered public accounting firm as required by the Exchange Act. 

(dd) Acknowledgment Regarding Purchaser’s Acquisition of Shares. The Company acknowledges and agrees that
Purchaser is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated thereby. The Company further acknowledges that Purchaser is not acting as a financial advisor or
fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given by Purchaser or any of its respective representatives or agents in connection with the
Transaction Documents and the transactions contemplated thereby is merely incidental to Purchaser’s acquisition of the Shares. The Company further represents to Purchaser that the Company’s decision to enter into this Agreement and the
other Transaction Documents has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives. 
 (ee) Acknowledgement Regarding Purchaser’s Trading Activity. Anything in this Agreement or elsewhere herein to the contrary notwithstanding, it is understood and acknowledged by the Company
that: (i) Purchaser has not been asked by the Company to agree, nor has Purchaser agreed, to desist from purchasing or selling, long and/or short, securities of the Company, or “derivative” securities based on securities issued by the
Company or to hold the Shares for any specified term; (ii) past or future open market or other transactions by Purchaser, specifically including, without limitation, Short Sales or “derivative” transactions, before or after the
closing of this or future private placement transactions, may negatively impact the market price of the Company’s publicly-traded securities; (iii) Purchaser, and counter-parties in “derivative” transactions to which Purchaser is
a party, directly or indirectly, presently may have 

  
 19 

 
a “short” position in the Common Stock, and (iv) Purchaser shall not be deemed to have any affiliation with or control over any arm’s length counter-party in any
“derivative” transaction. The Company further understands and acknowledges that (y) Purchaser may engage in hedging activities at various times during the period that the Shares are outstanding, and (z) such hedging activities
(if any) could reduce the value of the existing stockholders’ equity interests in the Company at and after the time that the hedging activities are being conducted. The Company acknowledges that such aforementioned hedging activities do not
constitute a breach of any of the Transaction Documents. 
 (ff) Regulation M Compliance. The Company has
not, and to its Knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or
resale of any of the Shares, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of, any of the Shares, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any
other securities of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Company’s placement agent in connection with the placement of the Shares. 

(gg) FDA. As to each product subject to the jurisdiction of the U.S. Food and Drug Administration
(“FDA”) under the Federal Food, Drug and Cosmetic Act, as amended, and the regulations thereunder (“FDCA”) that is manufactured, packaged, labeled, tested, distributed, sold, and/or marketed by the Company or any of
its Subsidiaries (each such product, a “Pharmaceutical Product”), such Pharmaceutical Product is being manufactured, packaged, labeled, tested, distributed, sold and/or marketed by the Company in compliance with all applicable
requirements under FDCA and similar laws, rules and regulations relating to registration, investigational use, premarket clearance, licensure, or application approval, good manufacturing practices, good laboratory practices, good clinical practices,
product listing, quotas, labeling, advertising, record keeping and filing of reports, except where the failure to be in compliance would not reasonably be expected to be material to the Company and its Subsidiaries, taken as a whole. There is no
pending, completed or, to the Company’s Knowledge, threatened, action (including any lawsuit, arbitration, or legal or administrative or regulatory proceeding, charge, complaint, or investigation) against the Company or any of its Subsidiaries,
and none of the Company or any of its Subsidiaries has received any notice, warning letter or other communication from the FDA or any other governmental entity, which (i) contests the premarket clearance, licensure, registration, or approval
of, the uses of, the distribution of, the manufacturing or packaging of, the testing of, the sale of, or the labeling and promotion of any Pharmaceutical Product, (ii) withdraws its approval of, requests the recall, suspension, or seizure of,
or withdraws or orders the withdrawal of advertising or sales promotional materials relating to, any Pharmaceutical Product, (iii) imposes a clinical hold on any clinical investigation by the Company or any of its Subsidiaries,
(iv) enjoins production at any facility of the Company or any of its Subsidiaries, (v) enters or proposes to enter into a consent decree of permanent injunction with the Company or any of its Subsidiaries, or (vi) otherwise alleges
any violation of any laws, rules or regulations by the Company or any of its Subsidiaries, and which, either individually or in the aggregate, would reasonably be expected to be material to the Company and its Subsidiaries, taken as a whole. The
properties, business and operations of the Company have been and are being conducted in all material respects in accordance with all applicable laws, rules and regulations of the FDA. The Company has not been

  
 20 

 
informed by the FDA that the FDA will prohibit the marketing, sale, license or use in the United States of any product proposed to be developed, produced or marketed by the Company nor has the
FDA expressed any concern as to approving or clearing for marketing any product being developed or proposed to be developed by the Company other than normal investigational product correspondence between the Company and the FDA. 

(hh) Office of Foreign Assets Control. Neither the Company or any Subsidiary nor, to the Company’s Knowledge,
any director, officer, agent, employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

 (ii) U.S. Real Property Holding Corporation. The Company is not and has never been a U.S. real property
holding corporation within the meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon Purchaser’s request. 

(jj) Bank Holding Company Act. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank
Holding Company Act of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve”). Neither the Company nor any of its Subsidiaries or Affiliates
owns or controls, directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent (25%) or more of the total equity of a bank or any entity that is subject to the BHCA
and to regulation by the Federal Reserve. Neither the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence over the management or policies of a bank or any entity that is subject to the BHCA and to regulation by the
Federal Reserve. 
 (kk) Money Laundering. The operations of the Company and its Subsidiaries are and have
been conducted at all times in compliance with applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, applicable money laundering statutes and applicable rules and
regulations thereunder (collectively, the “Money Laundering Laws”), and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any Subsidiary with
respect to the Money Laundering Laws is pending or, to the Knowledge of the Company, threatened. 
 (ll)
NOLS. Section 3.2(ll) of the Disclosure Schedule sets forth the following information with respect to the Company and its Subsidiaries as of the date of this Agreement: (i) the amount of any net operating losses, unused investment
or other credits, unused foreign tax credits or excess charitable contributions of the Company or any of its Subsidiaries for Federal income tax, alternative minimum tax or any other tax purposes (including dates of expiration of such items, any
limitations on such items and all Schedules M-1 and M-3 prepared or filed by the Company or any of its Subsidiaries) and (ii) any limitations on the use of any such Tax attributes under Section 382 of the Code. 

  
 21 

 (mm) Equity Issuances. Except as set forth in Section 3.2(mm) of
the Disclosure Schedule there has not been any issuance, sale or other disposition by the Company of any of its securities, or grant of any options, warrants or other rights to purchase or obtain (including upon conversion, exchange or exercise) any
of its securities. The information contained in Section 3.2(mm) of the Disclosure Schedule is true and correct in all respects. 
 (nn) Equity Incentive Plans. Other than the Equity Incentive Plans, there are no other agreements, plans or arrangements requiring or contemplating the issuance of any securities of the Company or
any of its Subsidiaries. 
 Purchaser acknowledges and agrees that the Company does not make and has not made any
representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in this Section 3.2. Purchaser acknowledges and agrees that the representations contained in Section 3.2 shall not
modify, amend or affect the Company’s right to rely on Purchaser’s representations and warranties contained in this Agreement. 
 ARTICLE IV 
 OTHER AGREEMENTS OF THE PARTIES 

4.1 Furnishing of Information. Until the time that Purchaser owns less than 25% of the Shares acquired by Purchaser at the Initial
Closing, the Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act. 

4.2 Integration. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any
security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Shares for purposes of the rules and regulations of any Trading Market such that it would require stockholder approval prior to the
closing of such other transaction unless stockholder approval is obtained before the closing of such subsequent transaction. 

4.3 Securities Laws Disclosure; Publicity. The Company shall, in accordance with the requirements of the Exchange Act, file a
Current Report on Form 8-K disclosing the material terms of the transactions documents contemplated hereby and including the Transaction Documents as exhibits thereto. The Company will provide Purchaser with a reasonable opportunity to review and
comment on the Current Report on Form 8-K and will make such changes as Purchaser reasonably requests prior to its filing. From and after the issuance of the press release, the Company represents to Purchaser that it shall have publicly disclosed
all material, non-public information delivered to Purchaser by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees or agents in connection with the transactions contemplated by the Transaction Documents.
The Company and Purchaser shall consult with each other in issuing any other press releases with respect to the transactions contemplated hereby, and neither Purchaser nor the Company shall issue any such press release nor otherwise make any such
public statement without the prior consent of the Company, with respect to any press release of Purchaser, or without the prior consent of Purchaser, with respect to any press release of the Company, which consent shall not unreasonably be withheld
or delayed, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the other party with prior notice of such public statement or communication. Notwithstanding the foregoing, the Company shall not
publicly disclose the name of Purchaser, 

  
 22 

 
or include the name of Purchaser in any filing with the Commission or any regulatory agency or Trading Market, without the prior written consent of Purchaser, except (a) as required by
federal securities law in connection with the filing of final Transaction Documents (including signature pages thereto) with the Commission and (b) to the extent such disclosure is required by law or Trading Market regulations, in which case
the Company shall provide Purchaser with a reasonable opportunity to review and comment on any disclosure filed with the Commission pursuant to this Section 4.3 and will make such changes as Purchaser reasonably requests prior to making such
disclosure. 
 4.4 Shareholder Rights Plan. No claim will be made or enforced by the Company or, with the consent of the
Company, any other Person, that Purchaser is an “acquiring person” or “interested shareholder” under any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or
similar anti-takeover plan or arrangement in effect or hereafter adopted by the Company, or that Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Shares under the Transaction Documents or
under any other agreement between the Company and Purchaser. 
 4.5 Indemnification of Purchaser. Subject to the
provisions of this Section 4.5, the Company will indemnify and hold Purchaser and its directors, officers, stockholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a Person holding such
titles notwithstanding a lack of such title or any other title), each Person who controls Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, stockholders,
agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser
Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of
investigation that any such Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction
Documents or (b) any action instituted against Purchaser Parties in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate of such Purchaser Party, with respect to any of the
transactions contemplated by the Transaction Documents (unless such action is based upon a breach of such Purchaser Party’s representations, warranties or covenants under the Transaction Documents or any agreements or understandings such
Purchaser Party may have with any such stockholder or any violations by such Purchaser Party of state or federal securities laws or any conduct by such Purchaser Party which constitutes fraud, gross negligence, willful misconduct or malfeasance). If
any action shall be brought against any Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall have the right to assume the
defense thereof with counsel of its own choosing reasonably acceptable to Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of
such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to
assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of counsel, a conflict on 

  
 23 

 
any issue between the position of the Company and the position of such Purchaser Party, or defenses available to Purchaser that are different than as against the Company in which case the Company
shall be responsible for the reasonable fees and expenses of no more than one such separate counsel. The Company will not be liable to any Purchaser Party under this Agreement (y) for any settlement by a Purchaser Party effected without the
Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party’s breach of any of the
representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction Documents. The Company will have the exclusive right to settle any claim or proceeding provided that the Company will not
settle any such claim, action or proceeding without the prior written consent of Purchaser Party, which will not be unreasonably withheld or delayed, provided, however that such consent shall not be required if the settlement includes a full and
unconditional release satisfactory to Purchaser Party from all liability arising or that may arise out of such claim or proceeding and does not include a statement as to or an admission of fault or a failure to act by or on behalf of any Purchaser
Party. 
 4.6 Reservation of Preferred Stock and Common Stock. As of the date hereof, the Company has reserved and the
Company shall continue to reserve and keep available at all times, free of preemptive rights, a sufficient number of shares of Preferred Stock and Common Stock into which such Preferred Stock is convertible for the purpose of enabling the Company to
issue Shares pursuant to this Agreement. 
 4.7 Certain Transactions and Confidentiality. Purchaser covenants that until
such time as the transactions contemplated by this Agreement are publicly disclosed by the Company pursuant to the initial press release as described in Section 4.3, Purchaser will maintain the confidentiality of the existence and terms of this
transaction and the information included in the Disclosure Schedule. Notwithstanding the foregoing and notwithstanding anything contained in this Agreement to the contrary, the Company expressly acknowledges and agrees that (i) Purchaser makes
no representation, warranty or covenant hereby that it will not engage in effecting transactions in any securities of the Company after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the
initial press release as described in Section 4.3 and (ii) Purchaser shall not be restricted or prohibited from effecting any transactions in any securities of the Company in accordance with applicable securities laws from and after the
time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.3 and (iii) Purchaser shall not have any duty of confidentiality to the Company or its
Subsidiaries after the issuance of the initial press release as described in Section 4.3. 
 4.8 Capital Changes.
The Company shall not undertake a reverse or forward stock split or reclassification of the Common Stock or Preferred Stock without the prior written consent of Purchaser other than the Reverse Stock Split and Forward Stock Split to be effectuated
pursuant to the Charter Amendments. 

  
 24 

 4.9 Preparation of Proxy Statement and Schedule 13e-3; Stockholders Meeting.

 (a) The Company will, as expeditiously as practicable after the execution of this Agreement, but in no event
later than ten (10) calendar days from the date hereof, prepare and file with the Commission the proxy statement and any amendments or supplements thereto relating to the Stockholders Meeting (the “Proxy Statement”) and, if
required, a Rule 13e-3 Transaction Statement on Schedule 13E-3 (the “Schedule 13E-3”). Purchaser shall reasonably cooperate with the Company in the preparation and filing of the Proxy Statement and Schedule 13E-3. The Company will
provide Purchaser with a reasonable opportunity to review and comment on the Proxy Statement and Schedule 13E-3 and will make such changes as Purchaser reasonably requests prior to any filing. The Company shall use its reasonable best efforts to
have the Proxy Statement and Schedule 13E-3 cleared by the Commission as promptly thereafter as practicable. The Company shall, as expeditiously as practicable after the receipt thereof, provide to Purchaser copies of any written comments and advise
Purchaser of any oral comments with respect to the Proxy Statement and 13E-3 received from the staff of the Commission and (subject to its obligation in the next sentence) to respond to such comments as expeditiously as practicable. The Company will
provide Purchaser with a reasonable opportunity to review and comment on any amendment or supplement to the Proxy Statement and Schedule 13E-3 and will make such changes as Purchaser reasonably requests prior to filing with the Commission and will
provide Purchaser with a copy of all such filings with the Commission. The Company will use its reasonable best efforts to cause the Proxy Statement to be mailed to its stockholders at the earliest practicable date. 

(b) Except for information relating solely to Purchaser and that is provided by Purchaser, the Company covenants that the
Proxy Statement will not, at the date mailed to stockholders of the Company and at the time of the Stockholders Meeting, and the Schedule 13E-3 will not, contain any untrue statement of a material fact or omit to state any material fact required to
be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they are made, not misleading. If at any time prior to the Stockholders Meeting any event with respect to the Company, its officers or
directors or any of its subsidiaries should occur which is required to be described in an amendment of, or a supplement to, the Proxy Statement or Schedule 13E-3, the Company shall promptly so advise Purchaser and such event shall be so described,
and such amendment or supplement (which Purchaser shall have a reasonable opportunity to review and provide comments on) shall be promptly filed with the Commission and, as required by law, disseminated to the stockholders of the Company. The Proxy
Statement and the Schedule 13E-3 will comply as to form in all material respects with the provisions of the Exchange Act and the rules and regulations promulgated thereunder. 

(c) Purchaser covenants that none of the information supplied or to be supplied by Purchaser for inclusion in the Proxy
Statement will, at the date mailed to stockholders and at the time of the Stockholders Meeting, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they are made, not misleading. If at any time prior to the Stockholders Meeting any event with respect to Purchaser, its officers or directors or any of its subsidiaries should occur
which is required to be described in an amendment of, or a supplement to, the Proxy Statement, Purchaser shall promptly so advise the Company of such event in sufficient detail to allow the Company to prepare and file any such amendment or
supplement. 

  
 25 

 (d) Purchaser covenants that none of the information supplied or to be
supplied by Purchaser for inclusion in the 13E-3 will contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the
circumstances under which they are made, not misleading. If at any time prior clearance of the 13E-3 with the Commission any event with respect to Purchaser, its officers or directors or any of its subsidiaries should occur which is required to be
described in an amendment of, or a supplement to, the 13E-3, Purchaser shall promptly so advise the Company of such event in sufficient detail to allow the Company to prepare and file any such amendment or supplement. 

4.10 Stockholders Meeting. 
 (a) The Company shall take all actions in accordance with applicable law, the Trading Market, the Company’s certificate of incorporation and the Company’s bylaws to promptly and duly call, give
notice of, convene and hold as promptly as practicable, and in any event within thirty (30) calendar days after the clearance of the Proxy Statement, its Stockholders Meeting for the purpose of considering and voting upon the approval of the
Charter Amendments. To the fullest extent permitted by applicable law, (i) the Board of Directors shall recommend approval of the Charter Amendments by the stockholders of the Company and include such recommendation in the Proxy Statement and
(ii) neither the Board of Directors, nor any committee thereof, shall effect a Change of Recommendation. The Company shall use its reasonable best efforts (including by retaining a proxy solicitation firm) to solicit from its stockholders
proxies in favor of the Charter Amendments, and to secure the votes or consents of the stockholders that are required by the rules of the Trading Market, or the Delaware General Corporation Law. 

(b) The Company shall call, give notice of, convene and hold the Stockholders Meeting in accordance with this
Section 4.10. The Company shall submit the Charter Amendments to its stockholders for the purpose of acting upon such proposal whether or not the Board of Directors at any time subsequent to the date of this Agreement determines, that the
proposal is no longer advisable or recommends that the stockholders of the Company reject such proposal. The Company shall use reasonable best efforts to ensure that all proxies solicited in connection with its Stockholders Meeting are solicited, in
compliance with the Delaware General Corporation Law, the Trading Market, the Company’s certificate of incorporation and the Company’s bylaws and all other applicable legal requirements. Notwithstanding anything to the contrary contained
in this Agreement, the Company, after receiving written consent of Purchaser, may adjourn or postpone the Stockholders Meeting to the extent necessary to ensure that any required supplement or amendment to the Proxy Statement is provided to its
stockholders or, if as of the time for which the Stockholders Meeting is originally scheduled (as set forth in the Proxy Statement), there are insufficient shares of Common Stock and Preferred Stock represented (either in person or by proxy) to
constitute a quorum necessary to conduct the business of the Stockholders Meeting. 
 (c) Following the
Stockholders Meeting, the Company shall deliver to the Corporate Secretary of Purchaser a certificate setting forth the voting results from the Stockholders Meeting. 

  
 26 

 4.11 Post-Initial Closing Deliverables. Within one (1) Business Day of the
Initial Closing Date, the Company shall deliver or cause to be delivered to Purchaser the Rights Plan Amendment adopted by the Board of Directors and Purchaser shall deliver or cause to be delivered to the Company the Escrow Agent’s
confirmation that $2.825 million in cash has been delivered into Escrow. 
 ARTICLE V 

MISCELLANEOUS 
 5.1 Termination. This Agreement may be terminated by Purchaser by written notice to the Company if the Initial Closing has not been consummated on or before August 1, 2011; provided,
however, that no such termination will affect the right of any party to sue for any breach by any other party (or parties). 

5.2 Fees and Expenses. The Company shall be entitled to be reimbursed for amounts required to purchase fractional shares of the
Company in connection with the Reverse Stock Split (the “Fractional Share Purchase Expenses”). To the extent that a “Fundamental Transaction” (as such term is defined in the Common Stock Warrant issued by the
Company to certain warrant holders on June 7, 2010 (the “2010 Warrant”) occurs, and the warrant holders elect to exercise their put right under Section 3(e) of the 2010 Warrant, the Company shall be entitled to
disbursement from the Escrow in accordance with the Escrow Agreement, an amount equal to the amount required to repurchase such 2010 Warrants pursuant to the formula set forth in such section (the “Warrant Expenses” and, together
with the Fractional Share Purchase Expenses, the “Escrowed Expenses”). The Escrowed Expenses shall be paid solely from cash available in the Escrow established by the Escrow Agreement. Except as may be mutually agreed by the Company
and Purchaser, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of
this Agreement and the transactions contemplated hereby. The Company shall pay all Transfer Agent fees, stamp taxes and other taxes and duties levied in connection with the delivery of any Shares to Purchaser. 

5.3 Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire
understanding of the parties solely with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or written, solely with respect to such matters, which the parties acknowledge have been merged
into such documents, exhibits and schedules. 
 5.4 Notices. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set
forth on the signature pages attached hereto at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile
number set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2nd) Trading Day following the date of mailing, if sent by U.S.
nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto.

  
 27 

 5.5 Amendments; Waivers. No provision of this Agreement may be waived, modified,
supplemented or amended except in a written instrument signed, in the case of an amendment, by Purchaser and the Company or, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought. No waiver of any
default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor
shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right. 

5.6 Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to
limit or affect any of the provisions hereof. 
 5.7 Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the parties and their successors and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of Purchaser (other than by merger, consolidation or
sale of all or substantially all of the Company’s assets). Purchaser may not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Company (other than by merger, consolidation or sale of all or
substantially all of Purchaser’s assets). 
 5.8 No Third-Party Beneficiaries. This Agreement is intended for the
benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in Section 4.5. 

5.9 Governing Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction
Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the
interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates, directors, officers, stockholders, partners,
members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the State of Delaware. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the State
of Delaware for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such
proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing

  
 28 

 
contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If either party shall commence an action, suit or proceeding to enforce any
provisions of the Transaction Documents, then, in addition to the obligations of the Company under Section 4.5, the prevailing party in such action, suit or proceeding shall be reimbursed by the other party for its reasonable attorneys’
fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding. 

5.10 Survival. The representations and warranties contained herein shall survive the Initial Closing and the delivery of the
Shares. 
 5.11 Execution. This Agreement may be executed in two or more counterparts, all of which when taken together
shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being understood that the parties need not sign the same counterpart. In the event that
any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with
the same force and effect as if such facsimile or “.pdf” signature page were an original thereof. 
 5.12
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set
forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and
restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 
 5.13
Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) any of the other Transaction Documents, whenever Purchaser exercises a right, election, demand or option
under a Transaction Document and the Company does not timely and in all material respects perform its related obligations within the periods therein provided, then Purchaser may rescind or withdraw, in its sole discretion from time to time upon
written notice to the Company, any relevant notice, demand or election in whole or in part without prejudice to its future actions and rights. 
 5.14 Replacement of Shares. If any certificate or instrument evidencing any Shares is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and
substitution for and upon cancellation thereof (in the case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or
destruction and, if requested by the Company, customary and reasonable indemnity or security. The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs (including customary indemnity)
associated with the issuance of such replacement Shares. 

  
 29 

 5.15 Remedies. In addition to being entitled to exercise all rights provided herein
or granted by law, including recovery of damages, the Company and Purchaser will be entitled to specific performance under the Transaction Documents without any requirement to post a bond or other security. The parties agree that monetary damages
may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and hereby agree to waive and not to assert in any action for specific performance of any such obligation the
defense that a remedy at law would be adequate. 
 5.16 Payment Set Aside. To the extent that the Company makes a payment
or payments to Purchaser pursuant to any Transaction Document or Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated,
declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person under any law (including, without limitation, any
bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as
if such payment had not been made or such enforcement or setoff had not occurred. 
 5.17 Saturdays, Sundays, Holidays,
etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business
Day. 
 5.18 Construction. The parties agree that each of them and/or their respective counsel have reviewed and had an
opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents
or any amendments thereto. In addition, each and every reference to share prices and shares of Preferred Stock in any Transaction Document shall be subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and
other similar transactions of the Preferred Stock that occur after the date of this Agreement. 

  
 30 

 5.19 WAIVER OF JURY TRIAL. EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR THE SUBJECT MATTER HEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT
MATTER OF THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO
AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL
RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. 
 [SIGNATURE PAGE FOLLOWS] 

  
 31 

 IN WITNESS WHEREOF, the parties hereto have caused this Stock Purchase Agreement to be duly
executed by their respective authorized signatories as of the date first indicated above. 
  

									
	HARBOR BIOSCIENCES, INC.	 		 	 Address for Notice:
 Harbor BioSciences, Inc.
 9191 Towne Centre Drive, Suite 409

San Diego, California 92122
 Facsimile: (858)
320-2590
 Attention: Robert Weber,

Chief Financial Officer

	 By:
	 	/s/ Robert W. Weber	 		 		 	
	 Name:
	 	Robert W. Weber	 		 		 	
	 Title:
	 	Chief Financial Officer	 		 		 	
			
	 With a copy to (which shall not constitute notice):

 
 Stradling Yocca Carlson & Rauth

4365 Executive Drive, Suite 1500
 San Diego,
California 92121
 Facsimile: (858) 926-3001
 Attention: Michael J. Brown, Esq.
	 		 	
			
	AMUN LLC	 		 	 Address for Notice:
 Amun LLC
 c/o Resource Holdings, Ltd.
 520 Madison Avenue, 33rd Floor
 New York, New York 10022

Facsimile: (212) 935-3851
 Attention: Richard
Bartlett

					
	 By:
	 	/s/ Richard Bartlett	 		 		 	
	 Name:
	 	Richard Bartlett	 		 		 	
	 Title:
	 	President	 		 		 	
				
	 With a copy to (which shall not constitute notice):

 
 Covington & Burling LLP

The New York Times Building
 620 Eighth
Avenue
 New York, New York 10018

Facsimile: (212) 841-1010
 Attention: Jack
Bodner, Esq.Stockholders Agreement dated July 28, 2011

 Exhibit 10.2 
 STOCKHOLDERS AGREEMENT 
 STOCKHOLDERS AGREEMENT (the
“Agreement”), dated as of July 28, 2011, among Harbor BioSciences, Inc., a Delaware corporation (the “Company”), Amun LLC a Delaware limited liability company (“Amun”), and any other
stockholder who from time to time becomes party to this Agreement by execution of a Joinder Agreement in substantially the form attached hereto as Exhibit A. Amun and the other parties who become a party hereto are sometimes referred to
herein collectively as the “Stockholders,” and each individually, a “Stockholder.” 
 The
Company is party to that certain Stock Purchase Agreement, dated July 28, 2011, between the Company and Amun (the “Purchase Agreement”), pursuant to which Amun will purchase two million (2,000,000) shares of Preferred
Stock (the “Acquired Shares”). 
 In connection with the Initial Closing of the Purchase Agreement, the parties
hereto desire to enter into this Agreement on the date of such Initial Closing (the “Closing Date”). 

Accordingly, the parties hereto agree as follows: 
 ARTICLE I 
 DEFINITIONS 

SECTION 1.1 Construction of Terms. As used herein, the masculine, feminine or neuter gender, and the singular or plural number,
shall be deemed to be or to include the other genders or number, as the case may be, whenever the context so indicates or requires. 
 SECTION 1.2 Defined Terms. The following capitalized terms, as used in this Agreement, shall have the meanings set forth below. 

“382 Ownership Change” means an “ownership change” as defined in Section 382 of the Code. 

“5% Shareholder” means a “5-percent shareholder” as defined in Section 382 of the Code. 

“12(g) Termination” has the meaning ascribed to it in Section 4.2(e). 

“Acquired Shares” has the meaning ascribed to it in the second paragraph of this Agreement. 

“Affiliate” of any Person means a Person that, directly or indirectly, through one or more intermediaries, controls, is
controlled by or is under common control with the first mentioned Person; provided, however, that an Affiliate of Amun, as applicable, shall also include (a) an employee, limited partner, general partner or director of Amun and
(b) any spouse, sibling or lineal ancestor or descendent of any such employee, limited partner, general partner or director or any trust for the benefit of, or any estate of, any such spouse, sibling, ancestor or descendent. For the purpose of
this definition, “control” (including with correlative meanings, the terms 

 
“controlling,” “controlled by” and “under common control with”), as used with respect to any Person, shall mean the possession, directly or indirectly, of the power
to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities or by contract or agency or otherwise. 
 “Agreement” has the meaning ascribed to it in the first paragraph of this Agreement. 
 “Amun” has the meaning ascribed to it in the first paragraph of this Agreement. 
 “Board of Directors” means the Board of Directors of the Company. 

“Business Day” means any day, other than a Saturday or a Sunday, on which commercial banks are not required or
authorized by law or executive order to close in New York City, New York. 
 “Bylaw Amendment” has the meaning
ascribed to it in the Purchase Agreement. 
 “Charter Amendments” has the meaning ascribed to it in the
Purchase Agreement. 
 “Closing Date” has the meaning ascribed to it in the third paragraph of this Agreement

 “Code” means the Internal Revenue Code of 1986, as amended. 

“Commission” means the Securities and Exchange Commission. 

“Common Stock” means the common stock, $0.01 par value per share, of the Company, and any other common equity securities
issued by the Company, and any other shares of stock issued or issuable with respect thereto (whether by way of a stock dividend or stock split or in exchange for or upon conversion of such shares or otherwise in connection with a combination of
shares, recapitalization, merger, consolidation or other reorganization). 
 “Company” has the meaning ascribed
to it in the first paragraph of this Agreement. 
 “Deregistration” means the termination of the registration
of the Company’s Common Stock or other class of securities under Section 12(g) of the Exchange Act and the suspension of the Company’s reporting obligations under Section 15(d) of the Exchange Act. 

“Director” means a member of the Board of Directors. 

“Escrow Agreement” has the meaning ascribed to it in the Purchase Agreement. 

“Equity Incentive Plan” means any one of the 1997 Incentive Stock Option Plan, the 2005 Equity Incentive Plan or the
2005 Non-Employee Directors’ Equity Incentive Plan, in each case as amended or otherwise modified from time to time prior to the date of this Agreement. 
 “Exchange Act” means the Securities Exchange Act of 1934. 

“Forward Stock Split” has the meaning ascribed to it in the Purchase Agreement. 

  
 - 2 -

 “Initial Closing Date” has the meaning ascribed to it in the Purchase
Agreement. 
 “Issuance Notice” has the meaning ascribed to it in Section 8.3. 

“NOL Provision” has the meaning ascribed to it in the Purchase Agreement. 

“Purchase Agreement” has the meaning ascribed to it in the second paragraph of this Agreement. 

“Person” means any individual, corporation, partnership (limited or general), a limited liability company, trust, joint
venture, unincorporated organization or any similar entity. 
 “Preferred Stock” means the Series A Preferred
Stock, $0.01 par value per share, of the Company, and any other shares of stock issued or issuable with respect thereto (whether by way of a stock dividend or stock split or in exchange for or upon conversion of such shares or otherwise in
connection with a combination of shares, recapitalization, merger, consolidation or other reorganization). 
 “Put
Right” has the meaning ascribed to it in Section 4.2. 
 “Qualifying Transaction” means a
transaction in which the Company acquires a controlling interest in a third-party, the terms of which transaction provide that, immediately following the closing of such acquisition, the acquired company would provide to the Company funds in an
amount equal to at least $5,000,000 in cash plus an amount equal to the documented out-of-pocket costs and expenses (including for legal and accounting expenses) incurred by the Company in connection with such Qualifying Transaction (such amount not
to exceed $200,000), which amounts, together with any operating cash held by the Company immediately prior to the closing of such Qualifying Transaction, would, subject to applicable law, be available to the Company to be transferred, together with
any and all (i) intellectual property and (ii) other assets of the Company related to the Company’s biotechnology business as it exists immediately prior to the closing of such Qualifying Transaction that may be so transferred
pursuant to applicable law as otherwise permitted under any contract, agreement or arrangement to which the Company is a party, to a newly formed subsidiary of the Company, which subsidiary will assume all liabilities, obligations and commitments of
the Company (whether known or unknown, accrued, contingent or absolute or otherwise) as of immediately prior to such closing. 

“Qualifying Transaction Proposal” has the meaning ascribed to it in Section 4.2(g). 

“Reverse Stock Split” has the meaning ascribed to it in the Purchase Agreement. 

“Securities Act” means the Securities Act of 1933. 

“Stockholder” has the meaning ascribed to it in the first paragraph of this Agreement. 

“Stockholder Directors” has the meaning ascribed to it in Section 7.1. 

“Stockholder Observer” has the meaning ascribed to it in Section 7.2. 

  
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 “Transfer” means any direct or indirect transfer, donation, sale,
assignment, pledge, hypothecation, grant of a security interest in or other disposal or attempted disposal of all or any portion of a security, any interest or rights in a security, or any rights under this Agreement. “Transferred”
means the accomplishment of a Transfer, and “Transferee” means the recipient of a Transfer. 
 ARTICLE II

 REPRESENTATIONS AND WARRANTIES OF THE STOCKHOLDERS 

Each of the Stockholders, individually and not jointly, hereby represents, warrants and covenants to the Company and each other
Stockholder as follows: (a) such Stockholder has full authority, power and capacity to enter into this Agreement and perform its obligations hereunder; and (b) this Agreement constitutes the valid and binding obligation of such Stockholder
enforceable against such Stockholder in accordance with its terms. 
 ARTICLE III 

PURCHASE AND SALE 
 Pursuant to the Purchase Agreement, Amun shall be issued, on the Closing Date and in connection with the initial closing of the Purchase Agreement, two million (2,000,000) shares of Preferred Stock.

 ARTICLE IV 
 TRANSFER AND ASSIGNMENT; AMUN PUT RIGHT 
 SECTION 4.1 Transfer and
Assignment by Amun. Subject to compliance with applicable law, Amun may freely Transfer any Acquired Shares held by it and any or all of its rights under this Agreement to any Affiliated Transferee of the Acquired Shares, and any such Transferee
shall be deemed to be a “Stockholder” for purposes of this Agreement and as a condition of such transfer shall become a party to this Agreement via execution of a Joinder Agreement in substantially the form attached hereto as
Exhibit A. 
 SECTION 4.2 Amun Put Right. Following the Closing Date and until the later to occur of (x) the
12-month anniversary following the Closing Date or (y) in the event a Qualifying Transaction has not been consummated, forty-five (45) calendar days following the Company’s 2012 annual stockholders meeting, Amun may, in its sole
discretion, elect to put all (but not less than all) of the Acquired Shares held by it to the Company (the “Put Right”), and the Company shall be obliged to purchase such Acquired Shares promptly, and in no event later than thirty
(30) calendar days, following the date on which such put request is delivered in writing to the Company, in exchange for $1.00 and the return of all cash and any other property or assets held in escrow pursuant to the Escrow Agreement, in the
event of any of the following: 
 (a) The Company has not appointed to the Board of Directors the Stockholder
Directors within five (5) calendar days of the receipt by the Company of a written request from Amun that they do so; 
 (b) Less than three (3) Stockholder Directors are members of the Board of Directors following the Company’s 2011 annual stockholders meeting; 

  
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 (c) The stockholders of the Company shall have failed to approve the Reverse
Stock Split and Forward Stock Split or adopt the NOL Provision, in each case in accordance with the Purchase Agreement within one hundred (100) calendar days following the Closing Date; 

(d) Amun shall have requested in writing, at any time following the approval of the Reverse Stock Split and Forward Stock
Split by the stockholders of the Company, that the Company effect the Reverse Stock Split and Forward Stock Split and within two (2) Business Days after such request the Company shall not have filed the amendments to the Company’s
certificate of incorporation relating to the Reverse Stock Split and Forward Stock Split with the Delaware Secretary of State; 
 (e) (i) Amun shall have requested in writing, at any time following the Closing Date, that the Company effect the termination of the registration of the Company’s Common Stock or other class of
securities under Section 12(g) of the Exchange Act (the “12(g) Termination”) and within five (5) Business Days after such request the Company has not filed a certification on Form 15 pursuant to Rule 12g-4 of the Exchange
Act to effect the 12(g) Termination or (ii) Amun shall have requested in writing, at any time following the effective date of the Reverse Stock Split, that the Company effect a Deregistration of the Company’s Common Stock or other class of
securities and within five (5) Business Days after such request the Company has not effected such Deregistration (subject to any applicable waiting periods); 

(f) The occurrence of a 382 Ownership Change that occurs prior to the closing of a Qualifying Transaction; 

(g) (i) Amun shall have brought to the Board of Directors a Qualifying Transaction, and a majority of the
Company’s disinterested directors shall have failed to recommend and approve the Qualifying Transaction within forty-five (45) calendar days of Amun having made a written proposal to the Company in respect of a Qualifying Transaction (a
“Qualifying Transaction Proposal”) or (ii) such Qualifying Transaction shall not have been consummated within seventy-five (75) calendar days of Amun having made a Qualifying Transaction Proposal to the Company, unless, in
the case of clause (ii), the failure to consummate such Qualifying Transaction within such seventy-five (75) calendar day period is due to Amun’s breach in any material respect of its obligations under the definitive agreements providing
for the Qualifying Transaction; 
 (h) At any time following the Deregistration, the Company makes any filing
with the Commission pursuant to Sections 13 and 15(d) of the Exchange Act on a voluntary basis; or 
 (i) Any
material breach of this Agreement by the Company that is not cured within twenty (20) calendar days after notification of breach or any breach of any representation or warranty contained in Sections 3.1(g), (ll) or (mm) of the Purchase
Agreement. 

  
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 ARTICLE V 
 RIGHTS TO PURCHASE 
 SECTION 5.1 Right to Participate in Certain Sales
of Additional Securities. So long as Amun continues to hold or is deemed to hold through one or more of their Affiliated Transferees at least 50% of the Acquired Shares issued to Amun on the Closing Date (as the same may be proportionately
adjusted by way of a stock split, stock dividend, or other division of securities, or in connection with a combination of securities, recapitalization, merger, consolidation, or other reorganization), the Company agrees that it will not, subject to
Section 5.5 below, sell or issue: (a) any shares of capital stock of the Company (which includes shares of both Common Stock and Preferred Stock), (b) securities convertible into or exercisable or exchangeable for capital stock of the
Company or (c) options, warrants or rights carrying any rights to purchase capital stock of the Company, unless the Company first submits a written notice to Amun identifying the terms of the proposed sale (including the name or names of the
third party proposed purchasers, price, number or aggregate principal amount of securities and all other material terms), and offers to Amun the opportunity to purchase up to one hundred percent (100%) of the securities proposed to be issued on
terms and conditions, including price, no less favorable than those on which the Company proposes to sell such securities to such proposed purchasers. The Company’s offer pursuant to this Section 5.1 shall remain open and irrevocable for a
period of ten (10) calendar days following the Company’s sending of such written notice. 
 SECTION 5.2 Stockholder
Acceptance. Amun may elect to purchase up to one hundred percent (100%) of the securities so offered by giving written notice thereof to the Company within such ten (10) calendar day period, including in such written notice the maximum
number of shares of capital stock or other securities of the Company that Amun wishes to purchase. Any securities purchased by Amun pursuant to this Article V will be subject to the rights and obligations set forth in this Agreement.

 SECTION 5.3 Sale to Third Party. Any securities so offered that are not purchased by Amun pursuant to the offer set
forth in Section 5.1 above, may be sold by the Company to such proposed purchasers, but only on terms and conditions no more favorable than those set forth in the notice to Amun, at any time within ninety (90) calendar days following the
termination of the above-referenced ten (10) calendar day period, but may not be sold to any other Person or on terms and conditions, including price, that are more favorable to such purchaser than those set forth in such offer or after such
ninety (90) calendar day period without renewed compliance with this Article V. 
 SECTION 5.4 Exceptions to
Pre-emptive Rights. Notwithstanding the foregoing, the right to purchase granted under this Article V shall be inapplicable with respect to: (i) the issuance of shares of Common Stock (as appropriately adjusted for any stock split,
combination, reorganization, recapitalization, reclassification, stock dividend or similar event) pursuant to the valid exercise of options to purchase Common Stock outstanding on the date of this Agreement, (ii) securities issued as a result
of any stock split, stock dividend, reclassification, recapitalization or reorganization or similar event with respect to the Acquired Shares or (iii) the issuance of Common Stock pursuant to currently outstanding warrants to acquire Common
Stock of the Company outstanding on the date of this Agreement. 

  
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 SECTION 5.5 Assignment of Rights. Amun shall have the right to transfer and/or assign
its rights under this Article V to any Transferee of such Acquired Shares permitted by Section 4.1, and shall further have the right to transfer and/or assign and transfer Amun’s right to accept any particular offer under
Section 5.1 hereof. 
 ARTICLE VI 
 CONSULTATION RIGHTS 
 SECTION 6.1 The Company shall make its appropriate
officers and/or Directors, and those of its subsidiaries, available periodically and at such times as reasonably requested by a single designee and representative of all the Stockholder(s) (the “Representative”) for consultation
with the Representative with respect to all matters relating to the business and affairs of the Company and its subsidiaries, including, without limitation, significant changes in management personnel and compensation of employees, introduction of
new products or new lines of business, important acquisitions or dispositions or the proposed commencement or compromise of significant litigation. The Company agrees to consider, in good faith, the recommendations of the Representative in
connection with the matters on which it is consulted as described above. 
 SECTION 6.2 So long as the Stockholder(s) continues
to hold or is deemed to hold through one or more of their Affiliated Transferees at least 50% of the Acquired Shares issued to Amun on the Closing Date (as the same may be proportionately adjusted by way of a stock split, stock dividend, or other
division of securities, or in connection with a combination of securities, recapitalization, merger, consolidation, or other reorganization), the Company shall use commercially reasonable efforts to deliver to the Stockholder(s) (via the
Representative): 
 (a) as soon as available, but in any event within forty-five (45) calendar days after
the end of each fiscal quarter, unaudited consolidated statements of income and cash flows of the Company and its subsidiaries for such fiscal quarter, and consolidated balance sheets of the Company and its subsidiaries as of the end of such fiscal
quarter; 
 (b) within ninety (90) calendar days after the end of each fiscal year, audited consolidated
statements of income and cash flows of the Company and its subsidiaries for such fiscal year, and consolidated balance sheets of the Company and its subsidiaries as of the end of such fiscal year; and 

(c) promptly upon receipt thereof, any additional written reports, management letters or other detailed information
concerning significant aspects of the Company’s or any of its subsidiary’s operations or financial affairs given to the Company or any of its subsidiaries by its independent accountants (and not otherwise contained in other materials
provided hereunder). 

  
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 ARTICLE VII 
 GOVERNANCE 
 SECTION 7.1 Initial Board Representation. Immediately
following the Closing Date, the Company will exercise all authority to fill the three (3) current vacancies on the Board of Directors with the individuals designated by the Stockholder in writing to the Company (the “Stockholder
Directors”), each of whose term shall expire at the Company’s 2011 annual stockholders meeting. In connection with the Company’s 2011 annual stockholders meeting, the Company will exercise all authority to cause such Stockholder
Directors to be nominated for election to the Board of Directors at such annual stockholders meeting to terms that expire at the Company’s 2014 annual stockholders meeting. 

SECTION 7.2 Stockholder Observer. At any time following Closing Date and prior to the appointment of the Stockholder Directors,
the Stockholder will be entitled to appoint one (1) observer to the Board of Directors (the “Stockholder Observer”) who shall be invited to attend all meetings of the Board of Directors in a nonvoting observer capacity. The
Company shall also provide the Stockholder Observer with copies of all notices, minutes, consents, and other materials that are provided to the Directors at the same time and in the same manner as provided to such Directors; provided,
however, that the Stockholder Observer shall agree to hold in confidence and trust and to act in a fiduciary manner with respect to all information so provided; and provided further, that the Company reserves the right to withhold any
information and to exclude the Stockholder Observer from any meeting or portion thereof if access to such information or attendance at such meeting could adversely affect the attorney-client privilege between the Company and its counsel. 

SECTION 7.3 Resignations and Replacements. If a Stockholder Director ceases to serve as a Director for any reason, the vacancy
created by such Director ceasing to serve as a Director shall be filled by the affirmative vote of a majority of the remaining Directors then in office with an individual designated by the Stockholder(s). 

SECTION 7.4 Special Board Actions. Notwithstanding anything else in this Agreement to the contrary, for so long as the Stockholder
continues to hold or is deemed to hold through one or more of its Affiliated Transferees at least 50% of the Acquired Shares issued to Amun pursuant to the Purchase Agreement (as the same may be proportionately adjusted by way of a stock split,
stock dividend, or other division of securities, or in connection with a combination of securities, recapitalization, merger, consolidation, or other reorganization), the Company shall not take any of the following actions, and shall not permit any
of its subsidiaries or Affiliates (other than any business acquired by the Company in a Qualifying Transaction) to take any of the following actions, without first obtaining the approval (by vote or written consent) of two-thirds of the Board of
Directors: 
 (a) amend any provision of the Company’s or any of its subsidiary’s governing documents,
including without limitation the Certificate of Incorporation, the Bylaws and the Shareholder Rights Plan, except in accordance with the terms of this Agreement and the Purchase Agreement; 

(b) make or approve any voluntary bankruptcy or reorganization filing by, liquidation or other termination of the business
or operations of, the Company or any of its subsidiaries or allow the Company or any subsidiary to make a general assignment, arrangement or composition for the benefit of its creditors or to admit its inability to pay its debts generally as they
become due; 

  
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 (c) increase the size of the Board of Directors to more than seven
(7) Directors; 
 (d) make any determination or otherwise take any action with respect to net operating
losses as contemplated by the terms of the NOL Provision; 
 (e) except as required under options to purchase
Common Stock and warrants to acquire Common Stock, in each case outstanding on the date of this Agreement, issue any securities; and 
 (f) register any securities of the Company or any of its Subsidiaries or file any registration statement relating to securities of the Company or any of its Subsidiaries with the Commission or list any
such securities on any stock exchange. 
 SECTION 7.5 Committees. At any time following the appointment of the
Stockholder Directors and for as long as the Stockholder(s), in the aggregate, own Preferred Stock that on an as converted basis is equivalent to at least five percent (5%) of the outstanding shares of Common Stock, the Company shall exercise
all authority under applicable law to cause the Board to designate at least one (1) Stockholder Director to serve as a member of each committee of the Board of Directors, to the same extent, and on the same basis, as the other Directors,
provided that such Stockholder Director need not serve as chair of any such committee. 
 ARTICLE VIII 

MISCELLANEOUS PROVISIONS 
 SECTION 8.1 Deregistration. At any time following the effective date of the Reverse Stock Split, the Company shall, upon the request of Amun, file with the Commission all forms and documentation
necessary to effect the Deregistration and shall effect such Deregistration as soon as reasonably practicable following a request by Amun, but in no event later than five (5) Business Days following such request. 

SECTION 8.2 No Voluntary Filings. Following the Deregistration, the Company shall not make any filing with the Commission pursuant
to Sections 13 and 15(d) of the Exchange Act on a voluntary basis. 
 SECTION 8.3 Amun Option to Contribute Shares. The
Company will provide written notice (the “Issuance Notice”) to the Stockholder(s) on the earlier to occur of (x) twenty (20) calendar days prior to any issuance of shares of Common Stock to any Person other than the
Stockholder(s) and (y) such shorter period to allow sufficient time for the Company to deliver shares of Common Stock as required by the option or warrant upon its exercise, provided that the Issuance Notice shall allow sufficient time
for the Stockholder(s) to convert the necessary number of shares of Preferred Stock into Common Stock and to make the contribution to the Company of such shares of Common Stock as contemplated by this Section 8.3. Within ten (10) calendar
days of the receipt of the Issuance Notice or such earlier time as the Company shall have notified the Stockholder(s) in writing and as may be required to allow sufficient time for the Company to deliver shares of Common Stock as required by the
option or warrant subject to such Issuance Notice (and in any event at least two (2) Business Days prior to the date shares of Common Stock are required to be delivered in connection with such issuance), the

  
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Stockholder(s) shall have the option, but not the obligation, to contribute, to the Company Common Stock subject to such Issuance Notice, in exchange for such consideration to be paid to the
Company in connection with such issuance or as may otherwise be agreed to by the Company and the Stockholder(s). In the event that the Issuance Notice relates to an exercise by a holder of warrants or options to purchase Common Stock, the
Stockholder(s) shall receive the warrant or option exercise price, as applicable, in exchange for its contribution of the Common Stock to the Company. The Company shall use reasonable best efforts to allow the Stockholder(s) to convert shares of
Preferred Stock into shares of Common Stock and contribute such shares in accordance with the terms of this Section 8.3. 

SECTION 8.4 Surrender and Contribution of Fractional Shares. If the Stockholder(s) converts shares of Preferred Stock in order to
contribute shares of Common Stock pursuant to Section 8.3 above, the Company at its expense will forthwith issue to the Stockholder(s) certificates representing any Preferred Stock (including fractional shares thereof) not converted and
contributed by the Stockholder(s), such certificates representing shares of Preferred Stock (including fractional shares thereof) to be issued in the name of the Stockholder(s) or its nominee. 

SECTION 8.5 Amun Voting Agreement. Following the Closing Date, the Stockholder(s) will vote all shares of Preferred Stock over
which the Stockholder(s) has voting control in favor of approval of the Charter Amendments. 
 SECTION 8.6 Qualifying
Transaction. Following the Closing Date, the Stockholder(s) will use commercially reasonable efforts to identify a company or business that may be sold to the Company in a transaction that would constitute a Qualifying Transaction. The Company
and the Stockholder(s) shall use reasonable best efforts to consummate the Qualifying Transaction as promptly as practicable following execution of definitive documentation in connection therewith. 

SECTION 8.7 Standstill. Following the Closing Date and until the expiration of the Put Right, neither the Company nor any of its
subsidiaries or Affiliates (other than any business acquired by the Company in a Qualifying Transaction) shall: 

(a) enter into any agreement or arrangement or amend, modify or terminate any such agreement or arrangement with any
officer, employee, director, stockholder, member, warrant holder or equity holder of the Company or any of its subsidiaries or any Affiliate of such officer, employee, director, stockholder, member, warrant holder or equity holder or otherwise incur
any liabilities (other than as may be required by the express terms of outstanding warrants in connection with the redemption thereof by the Company in accordance with such warrants) and other than liabilities incurred in the ordinary course of
business, in an amount greater than $200,000; 
 (b) incur indebtedness for borrowed money in an amount greater
than $200,000 in the aggregate at any one time outstanding for the Company and its subsidiaries; 
 (c) incur or
grant any lien, security interest or other encumbrance on the Company, its subsidiaries or any of their respective assets or properties, other than with respect to assets relating to HE2000, HE2100, HE3413, HE3177, Apoptone or Triolex, having a
value in excess of $200,000; 

  
 - 10 -

 (d) extend any credit, loan or other advance in an amount greater than
$200,000 in the aggregate at any one time outstanding; 
 (e) acquire in one transaction or a series of related
transactions securities or other assets having an aggregate value for the Company and its subsidiaries in excess of $200,000 except in connection with a Qualifying Transaction; 

(f) issue any guarantee with respect to the debts or other obligations (e.g., “keep well” or “take or
pay” arrangements) of any Person except in connection with a Qualifying Transaction; 
 (g) make any
expenditure in excess of $100,000; and 
 (h) hire any employee, officer or director of or consultant to the
Company and/or any of its subsidiaries that may result in the payment of compensation in cash, property or other consideration during any calendar year of more than $150,000 to any Person in the aggregate from any one or more of such companies

 SECTION 8.8 Reverse and Forward Stock Splits. The Board of Directors shall effect the Reverse Stock Split and Forward
Stock Split within two (2) Business Days of receiving a request in writing from Amun that the Board of Directors effect the Reverse Stock Split and Forward Stock Split. 
 SECTION 8.9 Survival. Each of the parties hereto agrees that each representation, warranty, covenant and agreement made by it in this Agreement or in any certificate, instrument or other document
delivered pursuant to this Agreement is material, shall be deemed to have been relied upon by the other parties and shall remain operative and in full force and effect after the date hereof regardless of any investigation. This Agreement shall not
be construed so as to confer any right or benefit upon any Person other than the parties hereto and their respective successors and permitted assigns to the extent contemplated herein. 

SECTION 8.10 Legend on Securities. The Company and Amun acknowledge and agree that the following legends shall be typed on each
certificate evidencing any of the Acquired Shares held at any time by Amun: 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER APPLICABLE SECURITIES LAWS, OR UNLESS OFFERED, SOLD OR TRANSFERRED PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THOSE LAWS. 

  
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 THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO THE PROVISIONS OF A CERTAIN STOCKHOLDERS
AGREEMENT, DATED AS OF JULY 28, 2011, AS SUCH MAY BE AMENDED AND/OR RESTATED IN ACCORDANCE WITH ITS TERMS. A COMPLETE AND CORRECT COPY OF SUCH AGREEMENT IS AVAILABLE FOR INSPECTION AT THE PRINCIPAL OFFICE OF THE COMPANY AND WILL BE FURNISHED
UPON WRITTEN REQUEST AND WITHOUT CHARGE. 
 SECTION 8.11 Amendment and Waiver. Any party may waive in writing any
provision hereof intended for its benefit. No failure or delay on the part of any party hereto in exercising any right, power or remedy hereunder shall operate as a waiver thereof. The remedies provided for herein are cumulative and are not
exclusive of any remedies that may be available to any party hereto at law or in equity or otherwise. This Agreement may be amended only with the prior written consent of the Company and the Stockholder(s). 

SECTION 8.12 Interpretation; Certain Definitions. References to defined terms in the singular shall include the plural and
references to defined terms in the plural shall include the singular. The descriptive headings of the several Articles and Sections of this Agreement are inserted for convenience only, do not constitute a part of this Agreement and shall not affect
in any way the meaning or interpretation of this Agreement. All references herein to “Articles” and “Sections” shall be deemed to be references to Articles and Sections hereof unless otherwise indicated. A reference to a law
includes any amendment or modification to such law and any rules or regulations issued thereunder. As used in this Agreement, “including” (and the derivative “include”) means including, without limitation.

 SECTION 8.13 Actions Taken by Amun. To the extent that any action in this Agreement may be taken by the
Stockholder(s), such action shall be undertaken by the affirmative vote of the holders of a majority of the Acquired Shares then owned by the Stockholder(s). 
 SECTION 8.14 Notices. All notices, requests, permissions, waivers and other communications hereunder shall be in writing and shall be deemed to have been duly given (i) five (5) Business
Days following sending by registered or certified mail, postage prepaid, (ii) when sent, if sent by facsimile or electronic mail, provided that the facsimile transmission or electronic mail, as applicable, is promptly confirmed by
telephone, (iii) when delivered, if delivered personally to the intended recipient and (iv) one (1) Business Day following sending by overnight delivery via a national courier service and, in each case, addressed to a party at the
following address for such party: 
 if to the Company, 
 Harbor BioSciences, Inc. 
 9191 Towne Centre Drive, Suite 409 

San Diego, California 92122 
 Attention: Robert Weber, Chief Financial Officer 
 Facsimile: (858) 320-2590

  
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 and 
 Stradling Yocca Carlson & Rauth 
 4365 Executive Drive, Suite 1500

 San Diego, California 92121 
 Attention: Michael Brown, Esq. 
 Facsimile: (858) 926-3001 

if to the Stockholder(s), 
 Amun LLC 
 c/o Resource Holdings, Ltd. 

520 Madison Avenue, 33rd Floor 
 New York, New York 10022 
 Attention: Richard Bartlett 

Facsimile: (212) 935-3851 
 and 
 Covington & Burling LLP 

The New York Times Building 
 620 Eighth Avenue 
 New York, New York 10018 

Attention: Jack Bodner, Esq. 
 Facsimile: (212) 841-1010 
 SECTION 8.15 Counterparts. This Agreement
may be executed in any number of counterparts, and each such counterpart hereof shall be deemed to be an original instrument, but all such counterparts together shall constitute but one agreement. 

SECTION 8.16 Entire Agreement. This Agreement and the Schedules and Exhibits annexed hereto constitute the entire understanding
between the parties with respect to the subject matter hereof, and supersede all other understandings and negotiations with respect thereto. 
 SECTION 8.17 Remedies; Severability. It is specifically understood and agreed that any breach of the provisions of this Agreement by any Person subject hereto would result in irreparable injury to
the other parties hereto, that the remedy at law alone would not be an inadequate remedy for such breach, and that, in addition to any other legal or equitable remedies which they may have, such other parties may enforce their respective rights by
actions for specific performance (to the extent permitted by law). The parties agree that irreparable damage would occur in the event that any provision of this Agreement were not performed in accordance with the terms hereof and that the parties
shall be entitled to specific performance of the terms hereof including an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement, without having to post any bond or
other security of undertaking, this being in addition to any other remedy to which they are entitled at law or equity. In the event that any provision contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable
by a court of competent jurisdiction in any jurisdiction, such provision shall be ineffective as to such jurisdiction to the extent of such invalidity, illegality or unenforceability without invalidating or affecting the remaining provisions hereof
or affecting the validity, legality or enforceability of such provision in any other jurisdiction. 

  
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 SECTION 8.18 Governing Law. This Agreement and any disputes arising under or related
hereto (whether for breach of contract, tortious conduct or otherwise) shall be governed and construed in accordance with the laws of the State of Delaware, without reference to its conflicts of law principles. 

SECTION 8.19 Jurisdiction. 
 (a) Each party irrevocably agrees that any legal proceeding against it arising out of or in connection with this Agreement or the transactions contemplated by this Agreement or disputes relating hereto
(whether for breach of contract, tortious conduct or otherwise) shall be brought exclusively in the United States District Court for the District of Delaware, or, if such court does not have subject matter jurisdiction, the state courts of the State
of Delaware, and hereby irrevocably accepts and submits to the exclusive jurisdiction and venue of the aforesaid courts in personam, with respect to any such proceeding. 

(b) WAIVER OF JURY TRIAL: EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON
OR ARISING OUT OF THIS AGREEMENT OR THE SUBJECT MATTER HEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS AGREEMENT, INCLUDING,
WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE
SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL. 
 SECTION 8.20 Adjustments. All references to share prices and amounts herein shall be equitably
adjusted to reflect stock splits, stock dividends, combinations of shares, recapitalizations, merger, consolidations, reorganizations and similar changes affecting the capital stock of the Company. 

  
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 SECTION 8.21 Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of the respective successors and permitted assigns of the parties hereto as contemplated herein, and any successor to the Company by way of merger or otherwise shall specifically agree to be bound by the terms hereof as a condition of
such succession. The right of Amun hereunder shall only be assignable to Transferees Affiliated with Amun. This Agreement may not be assigned by the Company without the prior written consent of Amun, and without such prior written consent any
attempted Transfer shall be null and void. 
 [SIGNATURE PAGE FOLLOWS] 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first set forth above. 
  

			
	HARBOR BIOSCIENCES, INC.
		
	By:	 	/s/ Robert W. Weber
		 	Name: Robert W. Weber
		 	Title:   Chief Financial Officer

  

			
	AMUN LLC
		
	By:	 	/s/ Richard Bartlett
		 	Name: Richard Bartlett
		 	Title:   President

 EXHIBIT A 
 Form of Joinder Agreement 
 The undersigned hereby agrees, effective as of
the date hereof, to become a party to that certain Stockholders Agreement (the “Agreement”) dated as of July 28, 2011, by and among Harbor BioSciences, Inc. (the “Company”) and the parties named therein and for
all purposes of the Agreement, the undersigned shall be included within the term “Stockholder” (as defined in the Agreement). The undersigned further confirms that the representations and warranties contained in Section II of the
Agreement are true and correct as to the undersigned as of the date hereof. The address and facsimile number to which notices may be sent to the undersigned is as follows: 
 Address: _______________________ 
 Facsimile No. ____________________ 

 

					
			
	 	 		 	  
	NAME OF UNDERSIGNED

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