Document:

EX-10.2

 Exhibit 10.2 

EXECUTION VERSION 
 EXCHANGE
AGREEMENT 
 by and among 

FAIRHOLME CAPITAL MANAGEMENT, L.L.C. and 

SERITAGE GROWTH PROPERTIES 

June 30, 2015 

 TABLE OF CONTENTS 

 

									
	 	 	 	 	 	  	Page	 
			
	 1.
	 	Definitions	  	 	1	  
			
	 2.
	 	Exchange	  	 	3	  
		 	 2.1
	 	Exchange	  	 	3	  
		 	 2.2
	 	Exchange Closing	  	 	4	  
			
	 3.
	 	Representations and Warranties of the Company	  	 	4	  
		 	 3.1
	 	Existence and Power	  	 	4	  
		 	 3.2
	 	Capitalization	  	 	4	  
		 	 3.3
	 	Authorization of the Transactions	  	 	4	  
		 	 3.4
	 	Valid Issuance of Exchange Interests	  	 	5	  
		 	 3.5
	 	Non-Contravention; No Consents	  	 	5	  
		 	 3.6.
	 	Conversion of Class C Shares	  	 	5	  
		 	 3.7.
	 	Registration	  	 	5	  
			
	 4.
	 	Representations and Warranties of the Holder	  	 	5	  
		 	 4.1
	 	Organization; Ownership	  	 	5	  
		 	 4.2
	 	Authorization of the Transactions	  	 	5	  
		 	 4.3
	 	Non-Contravention, No Consents	  	 	5	  
		 	 4.4
	 	SHC Securities	  	 	6	  
		 	 4.5
	 	Brokers and Finders	  	 	6	  
		 	 4.6
	 	No Additional Representations	  	 	6	  
			
	 5.
	 	Covenants	  	 	7	  
		 	 5.1
	 	Taking of Necessary Action	  	 	7	  
		 	 5.2.
	 	Standstill	  	 	7	  
		 	 5.3.
	 	Restrictions on Transfer	  	 	8	  
		 	 5.4.
	 	Class C Share to Class A Share Exchange	  	 	9	  
		 	 5.5.
	 	Tax Matters	  	 	9	  
		 	 5.6.
	 	Class C Conversions	  	 	9	  
			
	 6.
	 	Termination	  	 	10	  
		 	 6.1
	 	Conditions of Termination	  	 	10	  
		 	 6.2
	 	Effect of Termination	  	 	10	  
			
	 7.
	 	Indemnification	  	 	10	  
		 	 7.1.
	 	Indemnification of Fairholme	  	 	10	  
		 	 7.2.
	 	Settlement	  	 	11	  
		 	 7.3.
	 	Contribution	  	 	11	  
		 	 7.4.
	 	Indemnification Procedures	  	 	11	  
		 	 7.5.
	 	Limitation on Indemnification	  	 	12	  
			
	 8.
	 	Miscellaneous Provisions	  	 	12	  
		 	 8.1
	 	Survival of Representations and Warranties	  	 	12	  
		 	8.2	 	Notices	  	 	12	  

  
 i 

									
	 	 	 	 	 	  	Page	 
				
		 	8.3	 	Entire Agreement; Third Party Beneficiaries; Amendment	  	 	13	  
		 	8.4	 	Counterparts	  	 	14	  
		 	8.5	 	Governing Law; Jurisdiction; Venue	  	 	14	  
		 	8.6	 	Expenses	  	 	14	  
		 	8.7	 	Successors and Assigns	  	 	14	  
		 	8.8	 	Severability	  	 	14	  
		 	8.9	 	Specific Performance	  	 	15	  
		 	8.10	 	Headings	  	 	15	  

  
 ii 

 EXCHANGE AGREEMENT 

This EXCHANGE AGREEMENT is dated as of June 30, 2015 (this “Agreement”), by and among Seritage Growth Properties, a
Maryland real estate investment trust (the “Company”) and Fairholme Capital Management L.L.C. (“Fairholme”), acting on its own behalf and on behalf of its advisory clients from time to time, other than clients that
are series of Fairholme Funds, Inc. (Fairholme’s advisory clients from time to time, except clients that are series of Fairholme Funds, Inc., are collectively referred to as the “Class C Acquirors”.) 

WHEREAS, Sears Holdings Corporation (“SHC”) has announced its intent to undertake a separation transaction whereby it will
cause its Subsidiaries to sell to the Company certain properties, joint venture interests and one or more of its Subsidiaries owning certain properties and lease such properties back from the Company and/or such Subsidiaries, and, in connection
therewith, the Company, through a pro rata distribution (the “Distribution”) by SHC to holders of shares of its common stock, par value $0.01 per share of rights (the “Rights”) to purchase from the Company
Class A common shares of beneficial interest, par value $0.01 per share, of the Company (the “Class A Shares”) (the “Rights Offering”). 

WHEREAS, the Company will become a new publicly traded real estate investment trust under the Internal Revenue Code of 1986, as amended. 

WHEREAS, in connection with the proposed separation transaction, the Company has agreed to grant the Class C Acquirors the right to exchange
any and all Rights held by such Class C Acquirors as of immediately prior to the closing of the Rights Offering (the “Rights Offering Closing”), whether received in the Distribution or otherwise acquired (such Rights, the
“Exchange Rights”), together with cash as provided herein, not for Class A Shares but rather for Class C common shares of beneficial interest, par value $0.01 per share, of the Company (the “Class C Shares”)
and Fairholme has agreed to cause the Class C Acquirors not to exercise their Rights to acquire Class A Shares and to be subject to certain limitations of their rights as holders of Class C Shares, in each case, subject to the terms and
conditions set forth herein. 
 NOW THEREFORE, in consideration of the mutual agreements, representations, warranties and covenants in this
Agreement contained, the parties agree as follows: 
 1. Definitions. As used in this Agreement, the following terms shall have the
following respective meanings: 
 “Affiliate” shall mean, with respect to any Person, any other Person directly or indirectly
controlling, controlled by or under direct or indirect common control with such Person; provided, that for, purposes of this Agreement, (x) each series of Fairholme Funds, Inc. shall be deemed not to be an Affiliate of Fairholme or any
Class C Acquiror and (y) each of the Class C Acquirors and each of their respective Affiliates shall be deemed not to be an Affiliate of the Company, the Operating Partnership or SHC, and vice versa. 

“Business Day” means any day other than a Saturday, Sunday or day on which banks in New York, New York are required or authorized to remain
closed. 

  
 1 

 “Change of Control” means (i) any transaction involving (x) a sale of all or
substantially all of the assets of the Company and its Subsidiaries (determined on a consolidated basis), in one transaction or series of related transactions or (y) the consolidation, merger, amalgamation, reorganization of the Company or a
similar transaction in which the Company is combined with another Person, unless common shares of beneficial interest held by holders who are not affiliated with the Company or any entity acquiring the Company remain unchanged or are exchanged for,
converted into or constitute solely (except to the extent of applicable appraisal rights or cash received in lieu of fractional shares) the right to receive as consideration common shares listed on a recognized U.S. national securities exchange and
the Persons who Beneficially Own the outstanding Class A Shares and Class C Shares of the Company and Operating Partnership units of the Operating Partnership (other than the Company) immediately before consummation of the transaction
Beneficially Own more than 50% (by voting power or economic interest) of the outstanding equity interests of the combined or surviving entity or new parent on a consolidated basis immediately thereafter or (ii) Edward S. Lampert ceases to
Beneficially Own a majority of the issued and outstanding Operating Partnership units that are not held by the Company (or in the case of a transaction contemplated by clause (i) of this definition, a plurality of the outstanding equity
interests of the combined or surviving entity or new parent on a consolidated basis immediately thereafter). 
 “Governmental Authority”
means any court, administrative agency or commission or other governmental authority or instrumentality, whether federal, state, local or foreign, and any applicable industry self-regulatory organization. 

“Law” means applicable statutes, common law, rules, ordinances, regulations, codes, licensing requirements, orders, judgments, injunctions,
writs, decrees, licenses, governmental guidelines or interpretations having the force of law, permits, rules and bylaws, in each case, of a Governmental Authority. 

“Operating Partnership” means Seritage Growth Properties, L.P. 

“Purchase Price” means the amount in cash in U.S. dollars equal to the product obtained by multiplying (a) the aggregate number of
Class A Shares for which an Exchange Right would be exercisable pursuant to its terms by (b) the subscription price per Class A Share, as set forth in the Registration Statement, as amended through the date of this Agreement and as it
may be further amended from time to time, of the Company. 
 “Person” means any individual, corporation, company, limited liability
company, partnership, association, trust, joint venture, group or any other entity or organization, including any government or political subdivision or any agency or instrumentality thereof. 

“Proceeding” means any action, claim, suit, litigation, arbitration, proceeding (including any civil, criminal, administrative, investigative
or appellate proceeding and any informal proceeding), prosecution, contest, hearing, inquiry, inquest, audit, examination or investigation commenced, brought, conducted or heard by or before any Governmental Authority or any arbitrator or
arbitration panel. 

  
 2 

 “Registration Statement” means the Registration Statement on Form S-11 (File
No. 333-203163) filed by the Company. 
 “Regular-Way Settlement” means, at any time, the current practice in the United States for
settlement of sales of publicly-traded equity securities. For the avoidance of doubt, Fairholme and the Company each acknowledge that, as of the date hereof, Regular Way Settlement means settlement three Business Days after the execution of a sale
of publicly-traded equity securities. 
 “Securities Act” shall mean the Securities Act of 1933, as amended, and all of the rules and
regulations promulgated thereunder. 
 “Subsidiary” means, with respect to any Person, any other Person of which the first Person owns,
directly or indirectly, securities or other ownership interests having voting power to elect a majority of the board of directors or other persons performing similar functions (or, if there are no such voting interests, more than 50% of the equity
interests of the second Person). 
 Index of Defined Terms 

 

					
	 	 	Page	 
		
	 Affiliate
	 	 	1	  
	 Agreement
	 	 	1	  
	 Beneficial Ownership
	 	 	8	  
	 Business Day
	 	 	1	  
	 Change of Control
	 	 	2	  
	 Class A Shares
	 	 	1	  
	 Class C Acquirors
	 	 	1	  
	 Class C Conversions
	 	 	9	  
	 Class C Exchange Election
	 	 	4	  
	 Class C Shares
	 	 	1	  
	 Class C Transfer
	 	 	5	  
	 Closing
	 	 	4	  
	 Company
	 	 	1	  
	 Distribution
	 	 	1	  
	 Enforceability Exceptions
	 	 	4	  
	 Exchange
	 	 	4	  
	 Exchange Act
	 	 	8	  
	 Exchange Rights
	 	 	1	  
	 Exchange Share
	 	 	4	  
	 Fairholme
	 	 	1	  
	 Governmental Authority
	 	 	2	  

					
	 	 	Page	 
		
	 Indemnified Person
	 	 	10	  
	 Law
	 	 	2	  
	 Losses
	 	 	10	  
	 Person
	 	 	2	  
	 Proceeding
	 	 	2	  
	 Purchase Price
	 	 	2	  
	 Registration Statement
	 	 	3	  
	 Regular-Way Settlement
	 	 	3	  
	 Representation Letter
	 	 	9	  
	 Rights
	 	 	1	  
	 Rights Offering
	 	 	1	  
	 Rights Offering Closing
	 	 	1	  
	 Securities Act
	 	 	3	  
	 Sell
	 	 	8	  
	 SHC
	 	 	1	  
	 Subject Securities
	 	 	8	  
	 Subject Transaction
	 	 	8	  
	 Subsidiary
	 	 	3	  
	 Tax Advisor
	 	 	9	  
	 Transactions
	 	 	4	  

 
 

  
 2. Exchange. 

2.1. Exchange. Subject to and upon the terms and conditions set forth in this Agreement, the Company and Fairholme hereby agree that
each Class C Acquiror may elect (a 

  
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“Class C Exchange Election”) prior to the Rights Offering Closing to tender some or all of the Exchange Rights held by such Class C Acquiror together with the Purchase Price
applicable to such Exchange Right, in exchange for the issuance and sale to such Class C Acquiror of one Class C Share (an “Exchange Share”) per Class A Share for which such Exchange Rights are otherwise exercisable pursuant to
their terms (collectively, the “Exchange”). Fairholme agrees that to the extent that any Class C Acquiror elects to participate in the Rights Offering, Fairholme shall cause such Class C Acquiror to do so pursuant to the Exchange
and not to exercise any Rights for Class A Shares. In addition, each Class C Acquiror shall have the right to exercise its over-subscription privilege (as described in the Company’s Registration Statement on Form S-11) relating to its
Exchange Rights to the same extent as it would have if it were to exercise such Exchange Rights for Class A Shares, except that in lieu of Class A Shares, such Class C Acquiror shall receive additional Exchange Shares for each Class A
Share that would have been issuable pursuant to the exercise of such over-subscription privilege. 
 2.2. Exchange Closing. If any
Class C Acquiror makes a Class C Exchange Election, the closing of the Exchange (the “Closing”) shall occur immediately prior to the Rights Offering Closing. At the Closing, (a) Fairholme shall cause each Class C Acquiror
participating in the Exchange to (i) deliver to the Company all of the Exchange Rights that it is tendering for Exchange, free and clear of all liens, together with any necessary or appropriate instruments of transfer relating thereto, and
(ii) pay, or cause to be paid, to the Company or its designee the Purchase Price applicable to each such Exchange Right, and (b) the Company shall issue to such Class C Acquirors free and clear of all liens, and deliver to the Class C
Acquirors certificates or book-entry notations evidencing the Exchange Shares. 
 3. Representations and Warranties of the Company.
The Company hereby represents and warrants to Fairholme, as of the date hereof and as of the Closing, as follows: 
 3.1. Existence and
Power. The Company is a real estate investment trust duly organized, validly existing and in good standing under the laws of the State of Maryland. 

3.2. Capitalization. The authorized shares of beneficial interest of the Company immediately prior to the Closing will consist of
100,000,000 Class A Shares, 5,000,000 Class B common shares of beneficial interest, par value $0.01 per share, 50,000,000 Class C Shares, and 10,000,000 preferred shares of beneficial interest. As of the date of this Agreement, 100 common
shares of beneficial interest of the Company are issued and outstanding. 
 3.3. Authorization of the Transactions. The execution,
delivery and performance of the transactions contemplated by this this Agreement (the “Transactions”) have been duly authorized by all necessary action on the part of the Company, and this Agreement is a valid and binding obligation
of the Company, enforceable against it in accordance with its terms, subject to the limitation of such enforcement by (i) the effect of bankruptcy, insolvency, reorganization, receivership, conservatorship, arrangement, moratorium or other laws
affecting or relating to creditors’ rights generally or (ii) the rules governing the availability of specific performance, injunctive relief or other equitable remedies and general principles of equity, regardless of whether considered in
a proceeding in equity or at law (the “Enforceability Exceptions”). 

  
 4 

 3.4. Valid Issuance of Exchange Shares. The Exchange Shares have been duly authorized by
all necessary trust action of the Company. When issued and sold against receipt of the consideration therefor, the Exchange Shares will be validly issued, fully paid and nonassessable. 

3.5. Non-Contravention; No Consents. The execution, delivery and performance of this Agreement, and the consummation by the Company of
the Transactions, does not or will not conflict with, violate or result in a breach of any provision of, or constitute a default under, or result in the termination of or accelerate the performance required by, or result in a right of termination or
acceleration under, (i) the organizational documents of the Company, (ii) any mortgage, note, indenture, deed of trust, lease, loan agreement or other agreement binding upon the Company or (iii) any permit, license, judgment, order,
decree, ruling, injunction, statute, law, ordinance, rule or regulation applicable to the Company or any of its Subsidiaries, other than in the cases of clauses (ii) and (iii) as would not reasonably be expected to have a material adverse
effect on the Company and its Subsidiaries, taken as a whole. Assuming the accuracy of the representations of Fairholme set forth herein, other than as have been obtained prior to the date of this Agreement, no material consent, approval, order or
authorization of, or material registration, declaration or filing with, any Governmental Authority is required on the part of the Company or any of its Subsidiaries in connection with the execution, delivery and performance by the Company of this
Agreement and the consummation by the Company of the Transactions. 
 3.6. Conversion of Class C Shares. Upon any transfer of Class C
Shares by a Class C Acquiror to any Person other than to an Affiliate of such Class C Acquiror (a “Class C Transfer”), each such Class C Share shall automatically convert into one Class A Share. 

3.7. Registration. The Company has filed the Registration Statement relating to the Class A Shares and the Class C Shares with the
Securities and Exchange Commission. Prior to the Closing, the Registration Statement will have become effective, no stop order suspending the effectiveness of the Registration Statement will be in effect and no proceedings for such purposes will be
pending before or threatened by the Securities and Exchange Commission. 
 4. Representations and Warranties of Fairholme. Fairholme
hereby represents and warrants to the Company, as of the date hereof and as of the Closing, as follows: 
 4.1. Organization;
Ownership. Fairholme is a limited liability company, duly organized, validly existing and in good standing under the laws of Delaware. 

4.2. Authorization of the Transactions. Entry into this Agreement has been duly authorized by all necessary corporate or equivalent
action on the part of Fairholme, and this Agreement is a valid and binding obligation of Fairholme, enforceable against it in accordance with its terms, subject to the limitation of such enforcement by the Enforceability Exceptions. 

4.3. Non-Contravention; No Consents. The execution, delivery and performance of this Agreement by Fairholme, and the consummation by
the Class C Acquirors of the Transactions, does not conflict with, violate or result in a breach of any provision of, or constitute a default under, or result in the termination of or accelerate the performance required by, or result in a right of
termination or acceleration under, (i) the organizational documents of 

  
 5 

 
Fairholme or, to the actual knowledge of Fairholme, any other Class C Acquiror, (ii) any mortgage, note, indenture, deed of trust, lease, loan agreement or other agreement binding upon
Fairholme or, to the actual knowledge of Fairholme, any other Class C Acquiror or (iii) any permit, license, judgment, order, decree, ruling, injunction, statute, law, ordinance, rule or regulation applicable to Fairholme or, to the actual
knowledge of Fairholme, any other Class C Acquiror, other than in the cases of clauses (ii) and (iii) as would not reasonably be expected to adversely affect or delay the consummation of the Transactions. Assuming the accuracy of the
representations of the Company set forth herein, other than as have been obtained prior to the date of this Agreement, (x) no material consent, approval, order or authorization of any Governmental Authority is required on the part of Fairholme
or, to the actual knowledge of Fairholme, any other Class C Acquiror in connection with the execution, delivery and performance by and the consummation by, the Class C Acquirors of the Transactions and (y) no material registration, declaration
or filing with any Governmental Authority is required on the part of Fairholme or, to the actual knowledge of Fairholme, any other Class C Acquiror in connection with the execution, delivery and performance by and the consummation by, the Class C
Acquirors of the Transactions, other than such registrations, declarations or filings, the failure of which to make would not reasonably be expected to adversely affect or delay the consummation of the Transactions. 

4.4. Rights. As of the Closing, each Class C Acquiror owns and has valid title to each of the Exchange Rights being Exchanged by such
Class C Acquirer, free and clear of any and all liens. As of the Closing, other than this Agreement, to Fairholme’s knowledge, no Class C Acquiror is party to any option, warrant, purchase right or other contract or commitment obligating it to
sell, transfer, pledge or otherwise dispose of the Exchange Rights being Exchanged by such Class C Acquirer or to any voting trust, proxy or other agreement or understanding with respect to the voting of the Exchange Rights being Exchanged by such
Class C Acquirer. 
 4.5. Brokers and Finders. Fairholme and its officers, directors, employees or agents have not utilized any
broker, finder, placement agent or financial advisor or incurred any liability for any brokers’, finders’ or similar fees or commissions in connection with any of the Transactions which are or may become payable by the Company or any of
its Subsidiaries. 
 4.6. No Additional Representations. 

(a) Fairholme acknowledges that neither the Company nor any other person makes any representation or warranty as to any matter whatsoever
except as expressly set forth in Section 3. 
 (b) Fairholme has conducted its own independent review and analysis of the
business, operations, assets, liabilities, results of operations, financial condition and prospects of the Company and its Subsidiaries. Except for the representations and warranties expressly set forth in Section 3 by the Company in
accordance with the terms hereof, in entering into this Agreement, Fairholme has relied solely upon its independent investigation and analysis of the Company and its Subsidiaries, and Fairholme acknowledges and agrees that it has not been induced by
and has not relied upon any representations, warranties or statements, whether express or implied, made by the Company, its Subsidiaries or any of their respective affiliates, 

  
 6 

 
shareholders, controlling persons or representatives that are not expressly set forth or incorporated by reference in Section 3 or the Registration Statement, as amended through the
date of this Agreement, whether or not such representations, warranties or statements were made in writing or orally. Fairholme acknowledges and agrees that, except for the representations and warranties expressly set forth in Section 3
and the statements made or incorporated by reference in the Registration Statement, as amended through the date of this Agreement, (i) the Company does not make, or has not made, any representations or warranties relating to itself or its
business or otherwise in connection with the Transactions and Fairholme is not relying on any representation or warranty except for those expressly set forth in this Agreement and (ii) no person has been authorized by the Company to make any
representation or warranty relating to it or its businesses or otherwise in connection with the Transactions, and if made, such representation or warranty must not be relied upon by Fairholme as having been authorized by the Company. 

5. Covenants. 
 5.1.
Taking of Necessary Action. Each of the parties hereto agrees to use its reasonable best efforts promptly to take or cause to be taken all action and promptly to do or cause to be done all things necessary, proper or advisable under
applicable laws and regulations to consummate and make effective the Transactions. 
 5.2. Standstill. 

(a) After Closing and until the occurrence of a Change of Control, Fairholme covenants to and agrees with the Company that, without the
Company’s prior written consent, it will not cause or permit any Class C Acquiror to, directly or indirectly: 
 (i)
acquire or offer to acquire, seek, propose or agree to acquire, by means of a purchase, tender or exchange offer, business combination or in any other manner, Beneficial Ownership of any Class A Shares; or 

(ii) make any public announcement with respect to, or submit to the Company or any of its trustees, officers, representatives,
employees, attorneys, advisors, agents or Affiliates, any proposal for or recommendation in support of the acquisition of any shares of beneficial interest of the Company entitled to vote in the election of trustees (other than Class B Shares) or
any other matter upon which the holders of such shares of beneficial interest are entitled to vote or with respect to any merger, consolidation, business combination, restructuring, recapitalization or purchase of any substantial portion of the
assets of the Company or of any of its Subsidiaries, and whether or not such proposal or recommendation might require the making of a public announcement by the Company unless the Company shall have made a prior written request to Fairholme to
submit such a proposal or recommendation (provided that the foregoing shall not prohibit Fairholme from submitting a proposal to the Chief Executive Officer or Chief Financial Officer of the Company on a confidential basis so long as such proposal
would not require the making of any public announcement or public reporting by the Company or any public reporting by Fairholme or any Class C Acquiror or any of their respective Affiliates) 

  
 7 

 (iii) seek or propose to influence, advise, change or control the management,
board of trustees, governing instruments or policies or affairs of the Company by way of any public communication, or make any “solicitation” of “proxies” (as such terms are defined or used in Regulation 14A under the Securities
Exchange Act of 1934, as amended, and the rules and regulations thereunder (the “Exchange Act”)) to vote any shares of beneficial interest of the Company entitled to vote in election of trustees of the Company or any other matter
upon which the holders of Class A Shares are entitled to vote or become a “participant” in any “election contest” (as such terms are defined and used in Rule 14a-11 under the Exchange
Act) with respect thereto; provided, however, that nothing in this clause (iii) shall prevent Fairholme, the Class C Acquirors or their respective Affiliates from voting in any manner any Class A Shares over which it has
Beneficial Ownership; or 
 (iv) make a request to amend or waive any provision of this Section 5.2(a). 

(b) A Person shall be deemed to have “Beneficial Ownership” of, or to “Beneficially Own,” any securities in
respect of which such Person or any of such Person’s Affiliates is considered to be a “Beneficial Owner” under Rule 13d-3 under the Exchange Act as in effect on the date hereof; provided that for purposes of
Section 5.2(a)(i), Class C Acquirors shall be deemed not to have Beneficial Ownership of (x) the Class A Shares into which Exchange Rights are exercisable pursuant to their terms and (y) Class A Shares acquired or to
be acquired for the purpose of conversion into Class C Shares pursuant to Section 5.6. 
 5.3. Restrictions on Transfer.
Until the occurrence of a Change of Control, Fairholme agrees that it will cause each Class C Acquiror not to sell, transfer, assign or similarly dispose of, or enter into any contract, option or other arrangement or understanding with respect to
the sale, transfer, assignment or similar disposition of (collectively, “Sell” and “Sale” shall have a correlative meaning), any Class C Shares or other shares of beneficial interest of the Company held by such
Class C Acquiror (collectively, the “Subject Securities”) (any such transaction, a “Subject Transaction”), if, after giving effect to such Subject Transaction, the acquiring Person to the actual knowledge of
Fairholme, after due inquiry, would individually, together with its Affiliates or as a member of a “group” (as such term is used in Section 13(d)(3) of the Exchange Act), Beneficially Own five percent (5%) or more of the issued
and outstanding Class A Shares; provided that each Class C Acquiror may Sell Class C Shares or other shares of beneficial interest of the Company held by such Class C Acquiror (a) to the Company, (b) to an Affiliate that agrees
in writing to be bound by the terms and provisions of this Agreement to the same extent as such Class C Acquiror, (c) in the public market (other than a Sale made with the knowledge that such Sale would otherwise be prohibited by this
Section 5.3), (d) to Edward S. Lampert and his Affiliates, (e) in connection with any bona fide mortgage, encumbrance, pledge or hypothecation of capital stock to a financial institution in connection with any bona fide loan or
(f) to any Person if such Class C Acquiror has received the Company’s prior written consent to such Sale. 

  
 8 

 5.4. Class A Share to Class C Share Exchange. Subject to the availability of an
applicable exemption or exception from the registration requirements of the Securities Act, Fairholme may request, on behalf of its new or existing advisory clients (other than clients that are series of Fairholme Funds, Inc.) that have acquired or
are acquiring Class A Shares, that the Company exchange some or all Class A Shares held by such investors for an equal number of Class C Shares; provided, that, the Company shall have no obligation to complete any such exchange if
(a) it would be required under applicable law to disclose material non-public information concerning the Company that at the time is not, in the good faith judgment of the Board of Trustees of the Company, in the best interests of the Company
to disclose and is not otherwise required to be disclosed or (b) the number of Class C Shares outstanding following such exchange would exceed the greater of (x) the number of Class C Shares outstanding immediately following the Closing
(as adjusted for any share split, share dividend, recapitalization, exchange or similar event) and (y) 37.7% of the aggregate amount of then-outstanding Class A Shares and Class C Shares. 

5.5. Tax Matters. Fairholme shall deliver to Wachtell, Lipton, Rosen & Katz (the “Tax Advisor”) and, if
reasonably requested by the Company, shall cause Class C Acquirors to deliver to the Tax Advisor (a) a certificate signed by an authorized representative of Fairholme, and dated as of the date hereof, with the representations set forth in
Exhibit A (the “Representation Letter”), with such additions or modifications as may be mutually agreed to by Fairholme and the Tax Advisor after the date hereof, and (b) a certificate signed by an authorized representative of
Fairholme to the effect that the Representation Letter remains true, accurate, and correct in all respects as of the date of the Closing. 

5.6. Class C Conversions. 

(a) The Company agrees promptly to take or cause to be taken all actions and promptly to do or cause to be done all things necessary, proper
or advisable under applicable laws and regulations to facilitate Regular-Way Settlement of transfers of Class A Shares from time to time (where such transfers are to be settled by the delivery of newly converted Class A Shares converted
from Class C Shares following the agreement by a Class C Acquiror to sell Class A Shares) (such transfers, “Class C Conversions”). Without limiting the foregoing, the Company agrees prior to the Closing (i) to direct its
transfer agent to effect timely issuance of Class A Shares to Class C Acquirors in time for such Class C Acquirors to effect Regular-Way Settlement of Class C Conversions, subject to the transfer agent having been provided with notice from the
depositary of such Class C Shares of the conversion of such Class C Shares in the form as may be agreed from time to time among the transfer agent and the depositary) prior to the consummation of the Class C Conversion being effected and
(ii) to direct the depositary for the Class C Shares to establish a mechanism with the transfer agent for the conversion of Class C Shares to, and issuance of, Class A Shares upon, and promptly following, the receipt by the depositary of a
conversion notice with respect to such Class C Shares in electronic form (or such other form as may be customarily used from time to time by the depositary to effect conversions and issuances within the applicable Regular-Way Settlement timeframe)
from the applicable Class C Acquiror. Fairholme agrees (x) to take such actions, or deliver such information, as may be reasonably requested by the Company from time to time to facilitate the Company’s obligations under this
Section 5.6(a) and (y) to advise the Class C Acquirors that any Sale of Class C Shares to a Person other than another Class C Acquiror or other Fairholme Affiliate shall be effected as Sale of Class A Shares and a related Class
C Conversion. 

  
 9 

 (b) If the client relationship between Fairholme and a Class C Acquiror is terminated,
(i) Fairholme agrees to instruct such Class C Acquiror to effect a conversion of Class C Shares into Class A Shares and (ii) the Company agrees to promptly to take or cause to be taken all actions and promptly to do or cause to be
done all things necessary, proper or advisable under applicable laws and regulations, if any, to direct its transfer agent to promptly issue Class A Shares to such former Class C Acquiror in exchange for its Class C Shares, subject to the
transfer agent having been provided by Fairholme with notice of the termination in the form attached as Exhibit B (or such other form as may be agreed from time to time among the Company, Fairholme and the transfer agent). 

6. Termination. 
 6.1.
Conditions of Termination. Notwithstanding anything to the contrary contained in this Agreement, this Agreement: 
 (a) may be
terminated at any time: 
 (i) by mutual consent of the Company and Fairholme; or 

(ii) by either the Company, on the one hand, or Fairholme, on the other hand, if any preliminary or permanent injunction or
other judgment or order issued by any court of competent jurisdiction or other Law prohibiting, restraining or rendering illegal the consummation of the Transactions shall be in effect and shall have become final and nonappealable; 

(b) shall be terminated automatically if at any time SHC publicly announces that it has determined to cancel the Rights Offering. 

6.2. Effect of Termination. In the event of any termination pursuant to Section 6.1, this Agreement shall become null and
void and have no effect, with no continuing obligation or liability on the part of any party hereto, or their respective directors, trustees, officers, agents or shareholders, with respect to this Agreement; provided that nothing herein shall
relieve any party of any liability for its willful breach; provided, further that the provisions of Article 7 shall survive the termination of this Agreement. 

7. Indemnification. 

7.1. Indemnification of Fairholme. The Company agrees to indemnify and hold harmless Fairholme and each Class C Acquiror and their
respective Affiliates and each officer, director, employee, advisor, partner, member, controlling entity and agent of Fairholme and each Class C Acquiror (each, an “Indemnified Person”) from and against any and all losses,
liabilities, causes of action, demands, claims, damages, judgments, reasonable costs and expenses (including reasonable fees and disbursements of counsel) (collectively, “Losses”) to which any such Indemnified Person may become
subject arising out of, related to or in connection to any 

  
 10 

 
Proceeding (other than Proceedings brought by an Indemnified Person against the Company, SHC or any of their respective Affiliates) relating to this Agreement, the Transactions, the Rights
Offering or the Distribution, regardless of whether any Indemnified Person is a party thereto, brought by a third party or by the Company or any of its Affiliates, including, without limitation, any action alleging misconduct or other liability on
account of any Indemnified Person entering into or otherwise participating in this Agreement or the Transactions. Notwithstanding the foregoing, the Company shall not be required to indemnify any Indemnified Person for any Losses to the extent that
such Losses are finally judicially determined by a court of competent jurisdiction to have resulted from the gross negligence, fraud or willful misconduct of such Indemnified Person or resulted from such Indemnified Person’s breach of this
Agreement. 
 7.2. Settlement. The Company will not, without the prior written consent of each Indemnified Person, settle,
compromise, consent to the entry of any judgment in or otherwise seek to terminate any Proceeding in respect of which indemnification may be sought hereunder (whether or not any Indemnified Person is a party thereto) unless such settlement,
compromise, consent or termination (i) includes an unconditional release of each Indemnified Person from all liability arising out of such Proceeding and (ii) does not include a statement as to, or an admission of, fault, culpability, or a
failure to act by or on behalf of such Indemnified Person. 
 7.3. Contribution. If the indemnification provided for in this
Article 7 is unavailable to or insufficient to hold harmless an Indemnified Person under Section 7.1 in respect of any losses, liabilities, causes of action, demands, claims, damages, judgments, costs and expenses referred to
therein, then the Company shall contribute to the amount paid or payable by such Indemnified Person as a result of such losses, liabilities, claims, causes of action, damages, or judgments in such proportion as is appropriate to reflect the relative
benefits received by the Company on the one hand and the Class C Acquirors on the other from this Agreement and the Transactions. The relative benefits received by the Company on the one hand and the Class C Acquirors on the other shall be deemed to
be in the same proportion as to the aggregate amount of then-outstanding Class A Shares and Class C Shares bears to the amount of Class A Shares and Class C Shares held by the Class C Acquirors. If, however, the allocation provided by the
immediately preceding sentences is not permitted by applicable law, then the Company shall contribute to such amount paid or payable by such Indemnified Person in such proportion as is appropriate to reflect not only such relative benefits but also
the relative fault of the Company on the one hand and the Class C Acquirors on the other in connection with the actions or omissions which resulted in such losses, liabilities, causes of action, demands, claims, damages, judgments, costs and
expenses, as well as any other relevant equitable considerations. The Company and Fairholme, on behalf of itself and each of the Class C Acquirors, agree that it would not be just and equitable if contribution pursuant to this
Section 7.3 were determined by any other method of allocation which does not take account of the equitable considerations referred to above. 

7.4. Indemnification Procedures. An Indemnified Person shall give written notice to the Company of any claim with respect to which it
seeks indemnification promptly after the discovery by such party of any matters giving rise to a claim for indemnification; provided that the failure of any Indemnified Person to give notice as provided herein shall not relieve the Company of its
obligations under Section 7.1 unless and to the extent that the Company shall have been actually prejudiced by the failure of such Indemnified Person to so notify such party. 

  
 11 

 
In case of any Proceeding against an Indemnified Person in respect of which indemnification has been sought hereunder by an Indemnified Person, the Company shall be entitled to assume and conduct
the defense; provided, however, that unless (i) the Company shall have failed to assume the defense of such claim within a reasonable time after receipt of notice of such claim from the Indemnified Person or (ii) in the reasonable judgment
of any Indemnified Person (based upon advice of its counsel) a conflict of interest may exist between the Indemnified Person and the Company with respect to such claims, then, in each case, the Indemnified Person may assume responsibility for
conducting the defense (in which case the Company shall be liable for any reasonable legal or other expenses reasonably incurred by the Indemnified Person in connection with assuming and conducting the defense). The Company shall not be liable for
any settlement of any action, suit, claim or proceeding effected without its written consent. 
 7.5. Limitations on Indemnification.
In no event shall the Company have any liability to the Indemnified Persons for (a) (i) Losses computed on a multiple of earnings, book value or similar basis, (ii) special, speculative, indirect or consequential Loss or lost profits, or
(iii) punitive damages (except in the case of clauses (i) or (ii), Losses incurred by an Indemnified Person from the award of such amounts against the Indemnified Person in a Proceeding) or (b) for any Losses in an amount greater than
the aggregate Purchase Price paid by the Indemnified Persons. 
 8. Miscellaneous Provisions. 

8.1. Survival of Representations and Warranties. All covenants and agreements contained herein, other than those which by their terms
apply in whole or in part after the Closing, shall terminate as of the Closing. Each of (a) the representations and warranties contained in Section 3 and Section 4 and (b) the provisions of Article 7 shall
survive the Closing until the expiration of the applicable statute of limitations. 
 8.2. Notices. All notices and other
communications hereunder shall be in writing and shall be deemed to have been duly given, if delivered personally, by facsimile, by email or sent by overnight courier as follows: 

  
 12 

 If to Fairholme, to: 

Fairholme Capital Management, L.L.C. 

Suite 900 
 4400 Biscayne
Boulevard 
 Miami, FL 22137 

Attention: Daniel E. Schmerin 

Fax: (305) 358-8002 

Email: notices@fairholme.net 

With a copy (which shall not constitute notice) to: 

Sullivan & Cromwell LLP 125 Broad Street 

New York, NY 10004 
 Attention:
Andrew G. Dietderich 
 Fax: (212) 291-9041 

Email: dietdericha@sullcrom.com 

If to the Company, to: 

Seritage Growth Properties 
 c/o
Sears Holdings Corporation 
 3333 Beverly Road 

Hoffman Estates, Illinois 60179 

Attention: General Counsel 

Email: mfernand@seritage.com 

With a copy (which shall not constitute notice) to: 

Wachtell, Lipton, Rosen & Katz 

51 West 52nd Street 
 New York,
NY 10019 
 Attention: Robin Panovka 

Fax: (212) 403-2000 

Email: RPanovka@wlrk.com 
 or to such other
address or addresses as shall be designated in writing. All notices shall be effective when received. 
 8.3. Entire Agreement; Third
Party Beneficiaries; Amendment. This Agreement sets forth the entire agreement between the parties hereto with respect to the Transactions and is not 

  
 13 

 
intended to and shall not confer upon any person other than the parties hereto any rights or remedies hereunder. Any provision of this Agreement may be amended or modified in whole or in part at
any time by an agreement in writing between the parties hereto executed in the same manner as this Agreement. No failure on the part of any party to exercise, and no delay in exercising, any right shall operate as a waiver thereof nor shall any
single or partial exercise by any party of any right preclude any other or future exercise thereof or the exercise of any other right. 

8.4. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to constitute an original,
but all of which together shall constitute one and the same document. Signatures to this Agreement transmitted by facsimile transmission, by electronic mail in “portable document format” (“.pdf”) form, or by any other electronic
means intended to preserve the original graphic and pictorial appearance of a document will have the same effect as physical delivery of the paper document bearing the original signature. 

8.5. Governing Law; Jurisdiction; Venue. This Agreement shall be governed by, and interpreted in accordance with, the laws of the State
of New York. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND THE COURTS OF THE STATE OF NEW YORK LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW YORK (AND OF THE
APPROPRIATE APPELLATE COURTS THEREFROM) FOR THE PURPOSE OF ANY JUDICIAL PROCEEDING ARISING OUT OF OR RELATING TO OR CONCERNING THIS AGREEMENT. The parties hereby waive, to the fullest extent permitted by applicable law, any objection which they now
or hereafter may have to personal jurisdiction or to the laying of venue of any such suit, action or proceeding brought in any court referred to in this Section 7.5 and such parties agree not to plead or claim the same. EACH OF THE
PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHTS TO TRIAL BY JURY IN CONNECTION WITH ANY PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY 
 8.6. Expenses. Except as otherwise expressly provided herein, each party hereto shall bear its own costs and expenses
(including attorneys’ fees) incurred in connection with this Agreement and the Transactions. 
 8.7. Successors and Assigns.
Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, each of the Company’s, the Operating Partnership’s, Fairholme’s and the Class C Acquirors’ respective
successors and assigns, and no other person. 
 8.8. Severability. If any provision of this Agreement is determined to be invalid,
illegal, or unenforceable, the remaining provisions of this Agreement shall remain in full force and effect provided that the economic and legal substance of any of the Transactions is not affected in any manner materially adverse to any party. In
the event of any such determination, the parties agree to negotiate in good faith to modify this Agreement to fulfill as closely as possible the original intent and purpose hereof. To the extent permitted by law, the parties hereby to the same
extent waive any provision of law that renders any provision hereof prohibited or unenforceable in any respect. 

  
 14 

 8.9. Specific Performance. The parties agree that if any of the provisions of this
Agreement were not performed in accordance with their specific terms or were otherwise breached, irreparable damage would occur, no adequate remedy at law would exist and damages would be difficult to determine, and that the parties will be entitled
to specific performance of the terms hereof, in addition to any other remedy at law or equity. 
 8.10. Headings. The headings of
Articles and Sections contained in this Agreement are for reference purposes only and are not part of this Agreement. 

*        *        *       
 *        *        * 

  
 15 

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

 

					
	 SERITAGE GROWTH PROPERTIES

		
	 By:
		 /s/ Benjamin Schall

			 Name:
		Benjamin Schall
			 Title:
		Chief Executive Officer and President

 [Signature Page to Exchange Agreement] 

 
					
	 FAIRHOLME CAPITAL MANAGEMENT, L.L.C.

		
	 By:
		 /s/ Bruce R. Berkowitz

			 Name:
		Bruce R. Berkowitz
			 Title:
		Managing Member

 [Signature Page to Exchange Agreement]Exhibit 10.1

 

Execution Copy

 

Asset Purchase and collaboration Agreement

  

 

between

  

 

Icagen,
Inc.

  

 

and

  

 

XRPRO SCIENCES, INC.

 

 

 

DATED AS OF JUNE 26, 2015

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	 	Page
	ARTICLE I	DEFINITIONS AND TERMS 	 	1
	Section 1.1  	Definitions 	 	1
	Section 1.2  	Other Definitional Provisions 	 	6
	ARTICLE II	PURCHASE AND SALE 	 	6
	Section 2.1  	Purchase and Sale of the Purchased Assets
    	 	6
	Section 2.2  	Consents 	 	6
	Section 2.3  	Excluded Assets	 	7
	Section 2.4  	Assumption of Certain Liabilities 	 	8
	Section 2.5  	Retained Liabilities 	 	8
	Section 2.6  	Purchase Price 	 	9
	Section 2.7  	Allocation of the Purchase Price 	 	9
	Section 2.8  	Acceleration of Earn Out Payment 	 	9
	ARTICLE III	CLOSING 	 	10
	Section 3.1  	Closing 	 	10
	ARTICLE IV	CONDITIONS TO CLOSING	 	11
	Section 4.1  	Conditions to the Obligations of Buyer
    and Seller 	 	11
	Section 4.2  	Conditions to the Obligations of Buyer	 	11
	Section 4.3  	Conditions to the Obligations of Seller	 	12
	ARTICLE V	REPRESENTATIONS AND WARRANTIES OF SELLER	 	12
	Section 5.1  	Organization	 	12
	Section 5.2  	Authority; Binding Effect	 	12
	Section 5.3  	Non-Contravention	 	13
	Section 5.4  	Governmental Authorization	 	13
	Section 5.5  	Title to Assets	 	13
	Section 5.6  	Employees	 	13
	Section 5.7  	Brokers	 	13
	ARTICLE VI	REPRESENTATIONS AND WARRANTIES OF BUYER	 	14
	Section 6.1  	Organization and Qualification	 	14
	Section 6.2  	Corporate Authorization	 	14
	Section 6.3  	Binding Effect	 	14
	Section 6.4  	Non-Contravention	 	14
	Section 6.5  	Governmental Authorization	 	14
	Section 6.6  	Financial Resources	 	15
	Section 6.7  	Brokers 	 	15
	ARTICLE VII	COVENANTS	 	15
	Section 7.1  	Information and Documents 	 	15
	Section 7.2  	Maintenance of Assets	 	16
	Section 7.3  	Employees and Employee Benefits	 	16

 

    	 

    	 

    

 

	Section 7.4  	Commercially Reasonable Efforts	 	18
	Section 7.5  	Litigation Support	 	18
	Section 7.6  	North Carolina Site	 	18
	Section 7.7  	Delivery of Financial Statements	 	19
	Section 7.8  	Inspection of Records Relating to Research Revenue Milestone and Earn Out Payments	 	20
	Section 7.9  	Condition of the Purchased Assets	 	20
	Section 7.10	Transfer of Documentation	 	21
	ARTICLE VIII	RESEARCH COLLABORATION	 	21
	Section 8.1  	Master Scientific Services Agreement	 	21
	Section 8.2  	Research Revenue Milestone	 	21
	ARTICLE IX	INDEMNIFICATION	 	21
	Section 9.1  	Indemnification by Seller	 	21
	Section 9.2  	Indemnification by Buyer	 	22
	Section 9.3  	Notice of Claims	 	22
	Section 9.4  	Third Party Claims	 	23
	Section 9.5  	Expiration	 	23
	Section 9.6  	Losses Net of Insurance, Etc.	 	24
	Section 9.7  	Sole Remedy/Waiver	 	24
	Section 9.8  	No Consequential Damages	 	24
	ARTICLE X	TERMINATION	 	24
	Section 10.1  	Termination	 	24
	Section 10.2  	Effect of Termination	 	25
	ARTICLE XI	MISCELLANEOUS	 	25
	Section 11.1  	Notices	 	25
	Section 11.2  	Amendment; Waiver	 	26
	Section 11.3  	Assignment	 	26
	Section 11.4  	Entire Agreement	 	26
	Section 11.5  	Fulfillment of Obligations	 	27
	Section 11.6  	Parties in Interest	 	27
	Section 11.7  	Public Disclosure	 	27
	Section 11.8  	Return of Information	 	27
	Section 11.9  	Expenses	 	27
	Section 11.10	Schedules	 	27
	Section 11.11	Governing Law; Jurisdiction	 	28
	Section 11.12	Counterparts	 	28
	Section 11.13	Headings	 	28
	Section 11.14	Severability	 	28

  

    	ii

    	 

    

 

ASSET
Purchase AND COLLABORATION Agreement

 

This Asset Purchase and
Collaboration Agreement is made and entered into as of June 26, 2015 between Icagen, Inc., a Delaware corporation (the “Seller”),
and XRpro Sciences, Inc. a Delaware corporation (the “Buyer”).

 

WHEREAS, Seller is engaged
in performing research activities related to Seller’s ion channel technology.

 

WHEREAS, Seller is a wholly-owned
subsidiary of Pfizer Inc. (“Pfizer”);

 

WHEREAS, the parties hereto
desire that, at the Closing, Seller shall sell and transfer to Buyer, and Buyer shall purchase from the Seller, all of the Purchased
Assets and assume all of the Assumed Liabilities, upon the terms and conditions set forth herein;

 

WHEREAS, following the Closing
Date, the parties hereto desire that Buyer shall perform ion channel screening and other contract research as mutually agreed by
Pfizer and Buyer; and

 

WHEREAS, Buyer and Seller
anticipate that such contract research would provide $4 million of revenue to Buyer during the first 24 months following the Closing;

 

NOW, THEREFORE, in consideration
of the foregoing and the representations, warranties, covenants and agreements contained herein, the parties hereto hereby agree
as follows:

 

ARTICLE
I

DEFINITIONS AND TERMS

 

Section 1.1        Definitions.
As used in this Agreement, the following terms shall have the meanings set forth or as referenced below:

 

“Affected Employee”
shall mean an Employee who is offered and accepts continued employment with the Buyer in a Comparable Position and transfers employment
to the Buyer effective on the Closing Date.

 

“Affiliate”
shall mean, with respect to any Person, any other Person that directly or indirectly, through one or more intermediaries, controls,
is controlled by, or is under common control with, such Person at any time during the period for which the determination of affiliation
is being made.

 

“Agreement”
shall mean this Agreement, as the same may be amended or supplemented from time to time in accordance with the terms hereof.

 

“Allocation”
shall have the meaning set forth in Section 2.7.

 

    	 

    	 

    

 

“Assumed Liabilities”
shall have the meaning set forth in Section 2.4.

 

“Benefits Transition
Date” shall have the meaning set forth in Section 7.3(c).

 

“Business Day”
shall mean any day other than a Saturday, a Sunday or a day on which banks in New York, New York, United States of America are
authorized or obligated by Law or executive order to close.

 

“Buyer”
shall have the meaning set forth in the preamble to this Agreement.

 

“Buyer Material
Adverse Effect” shall have the meaning set forth in Section 6.4.

 

“Closing”
shall mean the closing of the transactions contemplated by this Agreement pursuant to the terms of this Agreement.

 

“Closing Date”
shall have the meaning set forth in Section 3.1(a).

 

“Code”
shall mean the Internal Revenue Code of 1986, as amended, from time to time.

 

“Collateral Source”
shall have the meaning set forth in Section 9.6.

 

“Comparable Position”
shall mean a position with Buyer or its Affiliates in which (i) the Employee’s level of responsibilities would not be materially
reduced from the level of responsibilities applied to such position by Seller immediately prior to the Closing, (ii) the terms
and conditions of employment in such Comparable Position are substantially similar in the aggregate to the terms and conditions
of employment applied to such position by Seller immediately prior to the Closing, and (iii) the Employee is not required to relocate
more than 25 miles from the Employee’s principal business location immediately prior to such relocation.

 

“Confidentiality
Agreement” shall mean the Confidentiality Agreement dated as of February 20, 2015, between Seller and Buyer.

 

“Distribution”
shall mean any distribution of cash or property by the Buyer or its Affiliates to Buyer’s shareholders, whether by way of
dividend or otherwise (other than a dividend of Buyer’s stock) or the repurchase or redemption of shares of the Buyer’s
stock or other equity interests (other than in connection with the repurchase of shares of the Buyer’s Common Stock issued
to or held by employees, consultants, officers or directors pursuant to agreements providing for the right of such repurchase upon
the cessation of their employment or services, at the lower of fair market value or cost) for cash or property.

 

“Earn Out Payments”
shall have the meaning set forth in Section 2.6(c).

 

    	2

    	 

    

 

“Employee”
shall mean the individuals identified on Schedule 5.4.

 

“Excluded Assets”
shall have the meaning set forth in Section 2.3.

 

“GAAP”
shall mean United States generally accepted accounting principles as in effect on the date hereof or for the period with respect
to which such principles are applied.

 

“Governmental Authority”
shall mean any supranational, national, federal, state or local judicial, legislative, executive or regulatory authority.

 

“Governmental Authorizations”
shall mean all licenses, permits, certificates and other authorizations and approvals required to carry on the research activities
conducted by Seller and its Affiliates using the Purchased Assets as of the date of this Agreement under the applicable Laws of
any Governmental Authority.

 

“Governmental Order”
shall mean any order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with any Governmental
Authority.

 

“Income Taxes”
mean the United States federal income Tax and any state, local or non-U.S. net income Tax or any franchise or business Tax incurred
in lieu of a Tax on net income.

 

“Indemnified Party”
shall have the meaning set forth in Section 9.3.

 

“Indemnifying Party”
shall have the meaning set forth in Section 9.3.

 

“Installment Payment”
shall have the meaning set forth in Section 2.6(a)(ii).

 

“Law”
shall mean any federal, state, foreign or local law, common law, statute, ordinance, rule, regulation, code or Governmental Order.

 

“Liabilities”
shall mean any debts, liabilities or obligations, whether accrued or fixed, known or unknown, absolute or contingent, matured or
unmatured or determined or determinable.

 

“Lien”
shall mean any lien, security interest, mortgage, charge or similar encumbrance.

 

    	3

    	 

    

 

“Liquidity Event”
shall mean any transaction or series of transactions (including any stock acquisition, reorganization, merger or consolidation):
(A) involving the merger or consolidation of the Buyer, or a subsidiary of the Buyer, into or with another entity (other than a
transaction or series of related transactions in which the holders of the voting securities of the Buyer outstanding immediately
prior to such transaction continue to retain (either by such voting securities remaining outstanding or by such voting securities
being converted into voting securities of the surviving entity), as a result of shares in the Buyer held by such holders prior
to such transaction, more than fifty per cent of the total voting power represented by the voting securities of the Buyer or such
surviving entity outstanding immediately after such transaction or series of transactions), (B) involving the sale, lease, transfer,
exchange, exclusive license or other conveyance of all or substantially all of the assets of the Buyer and its subsidiaries taken
as a whole, or the sale or disposition (whether by merger or otherwise) of one or more subsidiaries of the Buyer if substantially
all of the assets of the Buyer and its subsidiaries taken as a whole are held by such subsidiary or subsidiaries, except where
such sale, lease, transfer, exclusive license or their disposition is to a wholly owned subsidiary of the Buyer or (C) involving
any Distribution. For the avoidance of doubt, a Liquidation Event would not include a Winding-Up Event.

 

“Loss”
or “Losses” shall have the meaning set forth in Section 9.1(a).

 

“Material Adverse
Effect” shall mean any change or effect that is materially adverse to the use of the Purchased Assets, taken as a whole,
other than any change, effect, event, circumstance, occurrence or state of facts relating to (a) the economy or financial markets
in general, (b) conditions generally affecting the pharmaceutical or contract research industries, (c) the transactions contemplated
by this Agreement, (d) actions required to be taken under any applicable Law, (e) the acts or omissions of, or circumstances affecting,
Buyer or any of its Affiliates, (f) acts of terrorism or war (whether or not threatened, pending or declared), and (g) the public
announcement of this Agreement or the transactions contemplated hereby.

 

“Maximum Earn Out
Payment” shall have the meaning set forth in Section 2.6(c).

 

“MSSA”
shall have the meaning set forth in Section 8.1.

 

“Permitted Encumbrances”
shall mean (a) all Liens approved in writing by Buyer; (b) Liens arising out of operation of Law with respect to a Liability incurred
in the ordinary course of the use of the Purchased Assets and which are not delinquent or being contested in good faith, including
mechanics’, materialmens’, carriers’, workmens’, warehousemens’, repairmens’, landlords’
or other like Liens and security obligations; (c) such Liens and other imperfections of title as do not materially detract
from the value or impair the use of the property subject thereto or make such property unmarketable or (d) Liens for Taxes
not yet subject to penalties for nonpayment or which are being contested in good faith by appropriate proceedings.

 

“Person”
shall mean any individual, firm, corporation, partnership, limited liability company, trust, joint venture, Governmental Authority
or other entity or organization.

 

“Plan”
shall mean any material employee benefit plan as defined in Section 3(3) of ERISA and any other material written plan, program,
agreement or arrangement, whether qualified under applicable Law or not, maintained (or contributed to or required to be contributed
to) by Seller or any of its Affiliates for the benefit of any Employee.

 

    	4

    	 

    

 

“Proceeding”
shall have the meaning set forth in Section 11.11(b).

 

“Purchased Assets”
shall have the meaning set forth in Section 2.1; it being understood that the Purchased Assets do not include the Excluded Assets.

 

“Purchase Price”
shall have the meaning set forth in Section 2.6(a).

 

“Research Revenue
Milestone” shall have the meaning set forth in Section 2.6(b).

 

“Research Revenue
Milestone Payment” shall have the meaning set forth in Section 2.6 (b).

 

“Retained Liabilities”
shall have the meaning set forth in Section 2.5.

 

“Seller”
shall have the meaning set forth in the preamble to this Agreement.

 

“Take or Pay Commitment”
shall have the meaning set forth in Section 8.1.

 

“Tax”
or “Taxes” means any federal, state, local and non-U.S. taxes, including without limitation, income, gross receipts,
capital stock, franchise, profits, withholding, social security, unemployment, disability, real property, ad valorem/personal property,
stamp, excise, occupation, sales, use, transfer, value added, alternative minimum, estimated, license, severance, registration,
natural resources, environmental, customs duties, escheat, fringe benefits, goods and services, intangible, inventory, land, recording,
rent, windfall profits, capital gains, capital stock, franchise, payroll, employment, property, add-on minimum, and other taxes
imposed by a Governmental Authority, including any interest, penalty or addition thereto, whether disputed or not, and shall include
any liability for such amounts as a result of being a member of a combined, consolidated, unitary or affiliated group (including
pursuant to Treasury Regulation Section 1.1502-6 or comparable provisions of state, local or non-U.S. tax law) and including any
liability for taxes as a transferee or successor, by contract or otherwise.

 

“Third Party Claim”
shall have the meaning set forth in Section 9.4(a).

 

“Transferred Site”
shall have the meaning set forth in Section 7.6(a).

 

“Transitional Services
Agreement” means the transitional services agreement between Buyer and Seller dated as of the Closing Date substantially
in the form of Exhibit A.

 

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“Upfront Purchase
Price” shall have the meaning set forth in Section 2.6(a).

 

“Winding-Up Event”
shall mean any liquidation, dissolution, or winding up of the Buyer, whether voluntary or involuntary, but excluding any Liquidity
Event.

 

Section 1.2        Other
Definitional Provisions.

 

(a)        The words “hereof”,
“herein”, “hereto” and “hereunder” and words of similar import, when used
in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement.

 

(b)        The definitions contained
in this Agreement are applicable to the singular as well as the plural forms of such terms.

 

(c)        The terms “dollars”
and “$” shall mean United States dollars.

 

(d)        The term “including”
shall mean “including, without limitation” and the words “included” and “include”
shall have corresponding meanings.

 

(e)        When a reference
is made in this Agreement to an Article, a Section, Exhibit or Schedule, such reference shall be to an Article of, a Section of,
or an Exhibit or Schedule to, this Agreement unless otherwise indicated.

 

ARTICLE
II

PURCHASE AND SALE

 

Section 2.1        Purchase
and Sale of the Purchased Assets. Upon the terms and subject to the conditions set forth herein, at the Closing, Seller shall
sell, convey, assign and transfer to Buyer, and Buyer shall purchase, acquire and accept from the Seller, free and clear of all
Liens, other than Permitted Encumbrances, all of the Seller’s right, title and interest in the assets that are related exclusively
to the Seller’s ion channel biology platform set forth on Schedule 2.1 to this Agreement (collectively, the “Purchased
Assets”). Notwithstanding the foregoing, Buyer recognizes and agrees that to the extent that cell lines and plasmids
are included in the Purchased Assets, Seller will retain copies of such cell lines and plasmids and Seller’s right to continued
ownership of the retained copies of such cell lines and plasmids, including Seller’s right to use and exploit such cell lines
and plasmids in any manner whatsoever, shall not be limited as a result of this Agreement or the transactions contemplated hereby.

 

Section 2.2        Consents.

 

(a)        There shall be excluded
from the transactions contemplated by this Agreement any contract, agreement, leases, commitment, license, right or other asset
that is not assignable or transferable without the consent of any Person, other than Seller or any of its Affiliates or Buyer or
any of its Affiliates, to the extent that such consent shall not have been obtained at or prior to the Closing; provided,
however, that each of Seller and Buyer shall have the continuing obligation after the Closing to use its commercially reasonable
efforts to endeavor to obtain all necessary consents to or approvals for and make any filings for the assignment thereof (provided
that neither Seller, Buyer nor any of their respective Affiliates shall be required to expend money, commence any litigation or
offer or grant any accommodation (financial or otherwise) to any third party) and, upon obtaining the requisite third party consents
thereto or approvals therefor or making of required filings or the expiration or termination of any applicable waiting periods,
such contract, agreement, commitment, license or right, if otherwise includable in the Purchased Assets, shall be transferred and
assigned to, and assumed by, Buyer hereunder.

 

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(b)        With respect to any
contract, agreement, commitment, license or right that is not included in the Purchased Assets or assigned to, and assumed by,
Buyer at the Closing by reason of Section 2.2(a), after the Closing and until any requisite consent is obtained and the foregoing
transferred and assigned to, and assumed by, Buyer, the parties hereto shall reasonably cooperate with each other, upon written
request, in endeavoring to obtain for Buyer, at no cost to Seller or any of its Affiliates, to the extent practicable, an arrangement
which Buyer or Seller reasonably shall desire designed to provide to Buyer the benefits thereof (and provided that Buyer assumes
the obligations thereof) in some other manner.

 

(c)        Buyer acknowledges
that certain consents to the transactions contemplated by this Agreement may be required from parties to contracts, agreements,
leases, commitments, licenses or rights and that such consents have not been and may not be obtained. Buyer agrees that neither
Seller nor any of its Affiliates shall have any Liability whatsoever arising out of or relating to the failure to obtain any consents
that may have been or may be required in connection with the transactions contemplated by this Agreement or because of the default
under or acceleration or termination of any contract, agreement, lease, commitment, license or right, as a result thereof. Buyer
further agrees that no representation, warranty or covenant of Seller contained herein shall be breached or deemed breached, and
no condition to Buyer’s obligations to close the transactions contemplated by this Agreement shall be deemed not satisfied
as a result of (i) the failure to obtain any such consent, (ii) any such default, acceleration or termination or (iii) any lawsuit,
action, claim, proceeding or investigation commenced or threatened by or on behalf of any Person arising out of or relating to
the failure to obtain any such consent or any such default, acceleration or termination.

 

Section 2.3        Excluded
Assets. Notwithstanding any provision in this Agreement, Buyer is not purchasing any Asset that is not expressly identified
on Schedule 2.1 (the “Excluded Assets”) including:

 

(a)        the corporate books
and records of the Seller and the general account and books of original entry that comprise the Seller’s permanent accounting
or Tax records;

 

(b)        the “Pfizer”
and “Neusentis” names and logos; and

 

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(c)        any assets, properties
or rights (including all cash, cash equivalents, accounts receivable) of the Seller, other than the Purchased Assets.

 

Section 2.4        Assumption
of Certain Liabilities. Upon the terms and subject to the conditions of this Agreement, Buyer agrees, effective at the Closing,
to assume all Liabilities of the Seller and its affiliates to the extent relating to any of the Purchased Assets arising on or
after the Closing Date (collectively, the “Assumed Liabilities”). Assumed Liabilities shall include the following:

 

(a)        all Liabilities for
any lawsuits commenced or any claims made on or after the Closing to the extent relating to the use or ownership of any of the
Purchased Assets on or after the Closing;

 

(b)        all Liabilities to
Affected Employees arising on or after the Closing Date, except as otherwise expressly provided in this Agreement;

 

(c)        all Liabilities with
respect to the Transferred Site, including all obligations owed to the landlord at such site, arising on or after the Closing Date;

 

(d)        all Liabilities to
suppliers or other third parties for materials and services to the extent relating to the Purchased Assets and ordered in the ordinary
course of Seller’s or its Affiliate’s business consistent with past practice prior to the Closing, but scheduled to
be delivered or provided thereafter as set forth on Schedule 2.4, which shall not exceed $40,000.00; and

 

(e)        all Liabilities arising
on or after the Closing under any contracts, agreements, leases, licenses, commitments or Governmental Authorizations that are
assigned to Buyer pursuant to Section 2.1 or Section 2.2 at or subsequent to the Closing.

 

Section 2.5        Retained
Liabilities. Notwithstanding any provision in this Agreement, Seller shall retain and be responsible for the following (the
“Retained Liabilities”):

 

(a)        all Liabilities for
any lawsuits pending as of the Closing to the extent relating to the Purchased Assets prior to the Closing or arising after the
Closing Date related to the use or operation of the Purchased Assets prior to the Closing Date;

 

(b)        all Liabilities of
Seller, or any member of any consolidated, affiliated, combined or unitary group of which Seller is or has been a member, for Income
Taxes attributable to taxable periods, or portions thereof, ending on or before the Closing Date;

 

(c)        all Liabilities for
which Seller or its Affiliates expressly has responsibility pursuant to the terms of this Agreement;

 

(d)        all Liabilities to
the extent relating to the Excluded Assets; and

 

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(e)        All Liabilities to
Affected Employees arising prior to the Closing Date, including liabilities for vacation pay, salary, bonuses, overtime and benefits
with respect to periods prior to the Closing Date.

 

Section 2.6        Purchase
Price. In consideration of the sale and transfer of the Purchased Assets, Buyer agrees to make the following payments to Seller:

 

(a)        $500,000 (the “Upfront
Purchase Price”), payable in cash as follows:

 

(i)        $125,000
shall be paid by the Purchaser on the Closing Date (the “Closing Date Payment”); and

 

(ii)        $375,000
shall be paid in three equal installments of $125,000 on September 1, 2015, December 1, 2015 and March 1, 2016 (each, an “Installment
Payment”).

 

(b)        $500,000 shall be
paid on the second anniversary of the Closing Date (the “Research Revenue Milestone Payment”); provided
that prior to such date, the MSSA has generated at least $4 million in revenue (calculated in accordance with GAAP consistently
applied) to Buyer (the “Research Revenue Milestone”).

 

(c)        In addition to the
Upfront Purchase Price and the Research Revenue Milestone, beginning in calendar year 2017, Buyer shall pay to Seller quarterly
earn out payments (“Earn Out Payments”, and together with the Upront Purchase Price, the “Purchase
Price”) equal to 10% of the revenue earned by Buyer during the relevant quarter (calculated in accordance with GAAP consistently
applied) up to an aggregate maximum of $10 million in Earn Out Payments (the “Maximum Earn Out Payment”). Earn
Out Payments shall be payable within 60 days following the end of the applicable quarter. For the avoidance of doubt, the first
Earn Out Payment would be payable to Seller in May 2017 based on first quarter 2017 revenue.

 

Section 2.7        Allocation
of the Purchase Price. The Purchase Price shall be allocated for Tax purposes among the Purchased Assets as mutually agreed
to by the parties (the “Allocation”). Seller and Buyer agree not to take a position on any Income Tax return,
before any Governmental Authority or in any judicial proceeding that is inconsistent with the Allocation.

 

Section 2.8        Acceleration
of Earn Out Payments.

 

(a)        If there is a Liquidity
Event prior to the time that the Seller has received the Maximum Earn Out Payment, then at the consummation of such Liquidity Event,
Buyer (or its successor) shall pay the Seller an amount in cash equal to the lesser of: (i) 10% of the aggregate consideration
payable to Buyer or its shareholders upon such Liquidity Event and (ii) the difference between (A) $10 million and (B) the total
of all Earn Out Payments actually paid to the Seller prior to the consummation of such Liquidity Event (such difference, the “Earn
Out Shortfall”). If after giving effect to such payment, Seller has not received the Maximum Earn Out Payment, any successor
of the Buyer shall, as a condition to the consummation of such Liquidity Event, unconditionally assume the Buyer’s obligation
to make additional Earn Out Payments with respect to such successor’s revenue until Seller has been paid the Maximum Earn
Out Payment.

 

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(b)        If there is a Winding-up
Event prior to the time that the Seller has received the Maximum Earn Out Payment, then upon consummation of such Winding-up Event,
the Buyer (or its successor) shall pay to Seller, in preference to and prior to any distribution to the Buyer’s stockholders,
a payment in cash equal to the lesser of (i) 10% of the fair market value of all assets available for Distribution to Buyer’s
shareholders and (ii) the Earn Out Shortfall. Following payment of such amount to Seller (including any amount that becomes payable
pursuant to the last sentence of Section 2.8(c)), Buyer and its successors shall have no further obligation to Seller under this
Section 2.8(b).

 

(c)        In the event that
there is a Liquidity Event or a Winding-up Event and the consideration paid in such Liquidity Event or the assets available for
Distribution to Buyer’s shareholders include any assets or consideration other than cash, then the value of such non-cash
consideration or assets shall be the fair market value thereof as reasonably agreed by the Seller and the Board of Directors of
the Buyer, in each case, acting in good faith; provided, however, that any securities traded on a national stock
exchange or the Nasdaq Stock Market shall be valued at the average closing prices of the securities over the ten trading day period
ending three trading days prior to the date such Liquidity Event or Winding-up Event is consummated. If the Seller and the Board
of Directors of the Buyer are unable to reach an agreement, then the fair market value of such non-cash assets or consideration
shall be determined by independent appraisal by an investment bank selected by the Buyer’s Board of Directors and reasonably
acceptable to the Seller. All costs of such appraisal shall be borne equally by the Seller and the Buyer. For the avoidance of
doubt, any consideration or asset that is placed into escrow or is otherwise payable to Buyer or its shareholders subject to contingencies,
shall be considered for purposes of the calculation of the amount payable to Seller pursuant to Section 2.8(a) or (b) when such
consideration is actually paid or released to Buyer or its shareholders.

 

ARTICLE
III

CLOSING

 

Section 3.1        Closing.

 

(a)        The Closing shall
take place at the offices of Pfizer Inc., 235 East 42nd Street, New York, New York, 10017, at 10:00 A.M., New York time, on July
1, 2015, or, if the conditions precedent specified in ARTICLE IV have not been satisfied or waived on July 1, 2015, the first Business
Day following the satisfaction or waiver of the conditions precedent specified in ARTICLE IV (other than the conditions to be satisfied
on the Closing Date, but subject to the waiver or satisfaction of such conditions), or at such other time and place as the parties
hereto may mutually agree; provided, however, that without the agreement of Seller and Buyer, the Closing shall not
occur later than the applicable date specified in Section 10.1(b). The date on which the Closing occurs is called the “Closing
Date”. The Closing shall be deemed to occur and be effective as of 12:01 a.m. on the Closing Date.

 

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(b)        At the Closing, Seller
shall deliver, or cause to be delivered, to Buyer the instruments and documents set forth in Exhibit B, in each case in
a form reasonably acceptable to Buyer.

 

(c)        At the Closing, Buyer
shall deliver, or cause to be delivered, to Seller the following: (i) the Closing Date Payment, by wire transfer in immediately
available funds, and (ii) the instruments and documents set forth in Exhibit C, in each case in a form reasonably acceptable
to Seller. Seller shall provide wire transfer instructions to the Buyer at least two Business Days prior to the Closing.

 

ARTICLE
IV

CONDITIONS TO CLOSING

 

Section 4.1        Conditions
to the Obligations of Buyer and Seller. The respective obligations of each of the parties to consummate the transactions contemplated
by this Agreement shall be subject to the satisfaction (or waiver by Seller and Buyer) of the following conditions precedent:

 

(a)        there shall not (i)
be in effect in any Law or Governmental Order that makes illegal or enjoins or prevents in any respect the consummation of the
transactions contemplated by this Agreement or (ii) have been commenced, and shall be continuing or threatened in writing, any
action or proceeding by any Governmental Authority that seeks to prevent or enjoin in any respect the transactions contemplated
by this Agreement.

 

Section 4.2        Conditions
to the Obligations of Buyer. The obligation of Buyer to consummate the transactions contemplated by this Agreement shall be
subject to the satisfaction (or waiver by Buyer) of the following conditions precedent:

 

(a)        Seller shall have
performed in all material respects its agreements and obligations contained in this Agreement required to be performed by it at
or before the Closing;

 

(b)        the representations
and warranties of Seller contained in this Agreement (excluding any amendments or supplements to the Schedules after the date hereof)
shall be true and correct, as of the date of this Agreement and as of the Closing Date as though made on the Closing Date, except
to the extent such representations and warranties expressly relate to a particular date, in which case as of such particular date,
and except further to the extent that the facts or matters as to which such representations and warranties are not so true and
correct as of such dates (without giving effect to any qualifications or limitations as to materiality or Material Adverse Effect
set forth in such representations and warranties) have not had, and would not reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect; and

 

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(c)        Seller shall have
made, or caused to be made, delivery to the Buyer of the items required by Section 3.1(b).

 

Section 4.3        Conditions
to the Obligations of Seller. The obligation of Seller to consummate the transactions contemplated by this Agreement shall
be subject to the satisfaction of the following conditions precedent:

 

(a)        Buyer shall have
performed in all material respects its agreements and obligations contained in this Agreement required to be performed by it at
or before the Closing;

 

(b)        the representations
and warranties of Buyer contained in this Agreement shall be true and correct, as of the date of this Agreement and as of the Closing
Date as though made on the Closing Date, except to the extent such representations and warranties expressly relate to a particular
date, in which case as of such particular date, and except further to the extent that the facts or matters as to which such representations
and warranties are not so true and correct as of such dates (without giving effect to any qualifications or limitations as to materiality
or Buyer Material Adverse Effect set forth in such representations and warranties) have not had, and would not reasonably be expected
to have, individually or in the aggregate, a Buyer Material Adverse Effect; and

 

(c)        Buyer shall have
made, or caused to be made, delivery to Seller of the items required by Section 3.1(c).

 

ARTICLE
V

REPRESENTATIONS AND WARRANTIES OF SELLER

 

Seller represents and warrants
to Buyer as follows:

 

Section 5.1        Organization.
Seller is a corporation duly organized, validly existing and in good standing under the Laws of the State of Delaware.

 

Section 5.2        Authority;
Binding Effect.

 

(a)        Seller has all requisite
corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder. The execution and
delivery by Seller of this Agreement and the performance by Seller of its obligations hereunder have been, or will have been at
the Closing, duly authorized by all requisite corporate action.

 

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(b)        This Agreement has
been duly executed and delivered by Seller and, assuming the due authorization, execution and delivery by Buyer of this Agreement,
constitutes a valid and binding obligation of Seller, enforceable against it in accordance with its terms, except as enforcement
may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally
or by general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or law).

 

Section 5.3        Non-Contravention.
Except as set forth in Schedule 5.3, the execution, delivery and performance by Seller of this Agreement, and the consummation
of the transactions contemplated hereby do not and will not (i) violate any provision of the certificate of incorporation or bylaws
of Seller; (ii) conflict with, or result in the breach of or constitute a default under, any contract, agreement, lease or license
to which Seller is a party and which relates exclusively to the Purchased Assets or (iii) assuming compliance with the matters
set forth in Section 5.4 and Section 6.5, violate or result in a breach of or constitute a default under any Law or other restriction
of any Governmental Authority to which the Seller is subject; except, with respect to clauses (ii) and (iii), for any violations,
breaches, conflicts or defaults, that have not had, and would not reasonably be expected to have, individually or in the aggregate,
a Material Adverse Effect.

 

Section 5.4        Governmental
Authorization. Except as set forth in Schedule 5.4, the execution and delivery by Seller of this Agreement and the consummation
of the transactions contemplated hereby do not require any consent or approval of any Governmental Authority, except for consents
or approvals, the failure of which to obtain has not had, and would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect.

 

Section 5.5        Title
to Assets. The Seller owns, leases or has the legal right to use the Purchased Assets and has good title to (or in the case
of leased Purchased Assets, valid leasehold interests in) the Purchased Assets, free and clear of all Liens other than Permitted
Encumbrances.

 

Section 5.6        Employees.      Schedule
5.6 sets forth the current compensation of each Employee including all salaries, commissions, bonuses, incentive pay,
and welfare benefits. All Affected Employees have been paid, or promptly following the Closing shall be paid, in full all
salary, bonuses, vacation pay and other compensation owed to them as of the Closing Date

 

Section 5.7        Brokers.
No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with
the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Seller.

 

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ARTICLE
VI

REPRESENTATIONS AND WARRANTIES OF BUYER

 

Buyer represents and warrants
to Seller as follows:

 

Section 6.1        Organization
and Qualification. Buyer is a corporation duly organized, validly existing and in good standing under the Laws of the jurisdiction
of its incorporation.

 

Section 6.2        Corporate
Authorization. Buyer has all requisite corporate power and authority to carry on its business as it is now being conducted
and to execute and deliver this Agreement and to perform its obligations hereunder. The execution and delivery by Buyer of this
Agreement and the performance by Buyer of its obligations hereunder have been, or will have been at the Closing, duly authorized
by all requisite corporate action.

 

Section 6.3        Binding
Effect. This Agreement has been duly executed and delivered by Buyer and, assuming the due authorization, execution and delivery
by Seller of this Agreement, constitutes a valid and binding obligation of Buyer, enforceable against it in accordance with its
terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’
rights generally or by general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or law).

 

Section 6.4        Non-Contravention.
The execution, delivery and performance by Buyer of this Agreement and the consummation of the transactions contemplated hereby
do not and will not (i) violate any provision of the certificate of incorporation, bylaws or other organizational documents of
Buyer; (ii) conflict with, or result in the breach of, or constitute a default under, any contract, agreement, lease or license
to which Buyer is a party or to which its assets are subject or (iii) assuming compliance with the matters set forth in Section
5.4 and Section 6.5, violate or result in a breach of or constitute a default under any Law or other restriction of any Governmental
Authority to which Buyer is subject; except, with respect to clauses (ii) and (iii), for any violations, breaches, conflicts or
defaults, that have not had, and would not reasonably be expected to have, individually or in the aggregate, a material adverse
effect on the ability of Buyer to perform its obligations under this Agreement (a “Buyer Material Adverse Effect”).

 

Section 6.5        Governmental
Authorization. The execution and delivery by Buyer of this Agreement and the consummation of the transactions contemplated
hereby do not require any consent or approval of any Governmental Authority, except for consents or approvals, the failure of which
to obtain has not had, and would not reasonably be expected to have, individually or in the aggregate, a Buyer Material Adverse
Effect.

 

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Section 6.6        Financial
Resources. Buyer has, and on or prior to the Closing Date shall have, sufficient cash to pay the Upfront Purchase Price.

 

Section 6.7        Brokers.
No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with
the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Buyer.

 

ARTICLE
VII

COVENANTS

 

Section 7.1        Information
and Documents.

 

(a)        All information received
by Buyer and given by or on behalf of the Seller in connection with this Agreement and the transactions contemplated hereby will
be held by Buyer and its Affiliates, agents and representatives as “Evaluation Material”, as defined in, and pursuant
to the terms of, the Confidentiality Agreement.

 

(b)        From and after the
Closing, upon reasonable advance notice, the Seller, on the one hand, and Buyer, on the other hand, shall permit the other party
and its representatives to have access, during regular business hours upon 48 hours’ notice, to their assets and employees
relating to Purchased Assets and books and records relating solely to the Purchased Assets and, for other books and records of
the Seller relating only in part to the Purchased Assets, to the extent they can be reasonably redacted by Seller to remove the
information that is not related to the Purchased Assets, and shall cause to be furnished or to be provided access to the other
party and its representatives such financial, Tax and operating data and other available information with respect to the Purchased
Assets, in each case in its then existing form, as such party and its representatives shall from time to time reasonably request
in order to complete their legal and regulatory requirements and to complete their Tax returns and for any other reasonable business
purpose, including in respect of litigation (other than litigation between the parties this Agreement or their Affiliates) and
insurance matters. Buyer and its Affiliates shall, for a period of six years after the Closing Date plus any additional time during
which Seller advises Buyer that there is an ongoing Tax audit or investigation or regulatory or other investigation by a Governmental
Authority with respect to such periods, keep such materials reasonably accessible and not destroy or dispose of such materials
without the written consent of Seller. Each party shall promptly reimburse the other for such other party’s reasonable out-of-pocket
expenses associated with requests made by the requesting party under this Section 7.1, but no other charges shall be payable by
the requesting party to the other party in connection with such requests. In the event either party reasonably determines that
any such provision of any such information could be commercially detrimental, violate any Law or contract, or result in the waiver
any privilege, the parties shall take all commercially reasonable measures to permit the compliance with such obligations in a
manner that avoids any such harm or consequence.

 

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Section 7.2        Maintenance
of Assets. Prior to the Closing Date the Seller shall maintain the Purchased Assets in substantially the same condition as
on the date of this Agreement, consistent with Seller’s past practices.

 

Section 7.3        Employees
and Employee Benefits. 

 

(a)        Employees –
Offer of Continued Employment; Severance. Buyer agrees to continue the employment as of 12:01 a.m. on the Closing Date of Employee
in the same or a Comparable Position, at a rate of pay at least equal to such Employee’s pay in effect immediately prior
to the Closing Date and with benefits that are substantially comparable in the aggregate to the employee benefits that are in effect
immediately prior to the Closing Date and identified on Schedule 7.3(a) and with severance benefits that are identical to the benefits
as are contained in the Pfizer severance plan identified on Schedule 7.3(a) (the “Pfizer Separation Plan”).
For purposes of severance benefits under this Section 7.3, references to “pay” shall include base pay only; for all
other purposes, “pay” shall include additional compensation such as bonus, incentive and overtime, as applicable. Buyer
shall have no obligation with regard to former employees who would otherwise be Employees but are retired, or who are not or shall
have ceased to be Employees immediately prior to the Closing Date. Buyer shall be solely responsible for all salaries or wages
(including commissions, bonuses, incentive pay, overtime, premium pay, shift differentials and severance pay) accruing on and after
the Closing Date with respect to the Affected Employees. Buyer agrees that the following conditions of employment shall remain
unchanged until the date immediately following the second anniversary of the Closing Date: (i) the Comparable Position requirement
described in this Section 7.3(a), (ii) the pay and benefits comparability requirements described in this Section 7.3(a), and (iii)
the Pfizer Separation Plan. Notwithstanding the foregoing sentence, Buyer or its Affiliates may terminate an Affected Employee
during such two-year period as long as Buyer or its Affiliates pays or otherwise provides severance benefits to such Affected Employee
as provided under the Pfizer Separation Plan; provided, however, that Buyer or its Affiliates may terminate an Affected
Employee without paying or otherwise providing severance benefits to such Affected Employee in accordance with the Pfizer Separation
Plan if such employee is terminated “for cause” (as such term is defined in the Pfizer Separation Plan). Notwithstanding
anything to the contrary herein, on the date immediately following the second anniversary of the Closing Date, Buyer shall provide
to the Affected Employees that Seller continues to employ following the second anniversary of the Closing Date pay and benefits
(including, but not limited to, severance benefits) which are no less favorable than those provided to other similarly-situated
employees of Buyer and its Affiliates, as the case may be. As of the Closing Date, Affected Employees also shall be provided credit
by Buyer for all service with Seller and its Affiliates, to the same extent as such service was credited for such purpose by Seller
and its Affiliates and any predecessor employer, under (x) all employee benefit plans, programs, policies and fringe benefits of
Buyer for purposes of eligibility and vesting, and (y) severance plans (including, without limitation, the Pfizer Separation Plan),
programs and policies for purposes of calculating the amount of each such employee’s severance benefits.

 

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In the event that Buyer
shall fail to continue employment of an Employee for a Comparable Position effective as of the Closing Date as required by this
Section 7.3, Buyer shall be responsible for the payment of severance to such Employee, or if such severance is paid by Seller,
to reimburse Seller for such cost.

 

In the event that Buyer
shall continue employment of an Employee for a Comparable Position effective as of the Closing Date, and such Employee shall decline
such employment and refuse transfer, that Employee shall be deemed to have resigned from employment with Seller, shall not be entitled
to any severance under Seller Severance Plan, and Buyer shall not be responsible for any such severance cost.

 

(b)        Accrued Entitlements.
Seller shall be responsible for all accrued entitlements, including vacation days, for Affected Employees as of the day immediately
prior to the Closing Date consistent with Pfizer’s policies in respect thereof.

 

(c)        Welfare Plan Obligations.
Commencing as of 12:01 a.m. on August 1, 2015 (the “Benefits Transition Date”), Buyer shall include the Affected
Employees in its welfare plans and agrees to waive any waiting periods or limitations for pre-existing conditions under its welfare
benefits plans (including, without limitation, its medical, dental, life insurance, short-term and long-term disability plans),
and any other similar such plans, and shall ensure that such employees are given credit for any amounts paid toward deductibles,
out-of-pocket limits or other fees on or prior to the Benefits Transition Date. Claims by an Affected Employee for welfare benefit
plan services rendered as of 12:01 a.m. on the Benefits Transition Date shall be the responsibility of the welfare benefit plan
provided by Buyer to such employees. Claims incurred for welfare benefit plan services for Affected Employees rendered prior to
the Closing Date shall be the responsibility of the welfare benefit plan of Seller that covered such employees prior to the Closing
Date. Between the Closing Date and the Benefits Transition Date, Seller or its Affiliates shall continue to provide coverage to
Affected Employees under its welfare benefit plans on behalf of the Buyer pursuant to the terms of the Transitional Services Agreement.

 

(d)        No Third Party
Beneficiaries. Nothing contained herein, expressed or implied, is intended to confer upon any Employee of Seller any benefits
under any benefit plans, programs, policies or other arrangements, including severance benefits or right to employment or continued
employment with Buyer or any Affiliate of Buyer for any period by reason of this Agreement. In addition, the provisions of this
Agreement, in particular this Section 7.3, are solely for the benefit of the parties to this Agreement, and no current or former
employee, director, or independent contractor or any other individual associated therewith shall be regarded for any purpose as
a third party beneficiary of the Agreement, and nothing herein shall be construed as an amendment to any Plan or other employee
benefit plan for any purpose.

 

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Section 7.4        Commercially
Reasonable Efforts. Upon the terms and subject to the conditions herein provided (including Section 2.2), each of the parties
hereto agrees to use its commercially reasonable efforts to take, or cause to be taken, all action and to do, or cause to be done,
all things necessary for it to do under applicable Laws to consummate and make effective the transactions contemplated by this
Agreement, including (i) to comply promptly with all legal requirements that may be imposed on it with respect to this Agreement
and the transactions contemplated hereby (which actions shall include furnishing all information required by applicable Law in
connection with approvals of or filings with any Governmental Authority); (ii) to satisfy the conditions precedent to the obligations
of such party hereto; and (iii) subject to Section 2.2, to obtain any consent, authorization, order or approval of, or any exemption
by, any Governmental Authority or other public or private third party required to be obtained or made by Buyer or Seller in connection
with the acquisition of the Purchased Assets or the taking of any other action contemplated by this Agreement.

 

Section 7.5        Litigation
Support. Buyer and its Affiliates, on the one hand, and Seller and its Affiliates, on the other hand, will cooperate with each
other in the defense or settlement of any Liabilities or lawsuits involving the Purchased Assets or Employees for which they have
responsibility under this Agreement by providing the other party and such other party’s legal counsel and other designated
Persons access to employees, records, documents, data, equipment, facilities, products, parts, prototypes and other information
regarding the Purchased Assets or Employees as such other party may reasonably request, to the extent maintained or under the possession
or control of the requested party. The requesting party shall reimburse the other party for its reasonable out-of-pocket expenses
paid to third parties in performing its obligations under this Section 7.5. In the event either party reasonably determines that
any such provision of any such information could be commercially detrimental, violate any Law or contract, or result in the waiver
any privilege, the parties shall take all commercially reasonable measures to permit the compliance with such obligations in a
manner that avoids any such harm or consequence.

 

Section 7.6        North
Carolina Site.

 

(a)        Following the Closing,
Seller and Buyer will cooperate in good faith to cause as soon as reasonably practicable following receipt of any necessary third
party consents or Governmental Authorizations, the assignment or sublease to Buyer of Suites 350 and 380 located at 4222 Emperor
Boulevard constituting approximately 11,207 Rentable Square Feet (the “Transferred Site”). Following the Closing,
Seller shall be responsible for conducting any construction work necessary to demise the Transferred Site from the portion retained
by the Seller; provided that the Buyer shall reimburse Seller for 50% of any out-of-pocket expenses in connection therewith,
up to a maximum cost to Buyer of $50,000. Buyer and Seller shall cooperate to ensure that all work is performed in a timely manner
promptly following the Closing.

 

(b)        Buyer acknowledges
that the Seller’s lease of the Transferred Site expires on April 30, 2019 and that Seller shall not be obligated to renew
such lease or otherwise continue to make the Transferred Site available to Buyer.

 

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(c)        Following the Closing,
the Buyer shall use its reasonable best efforts to cause the novation to Buyer of Seller’s rights and obligations with respect
to Transferred Site under the master lease, including by providing to Seller and the landlord any information reasonably requested
or required by the landlord in connection with its evaluation of such novation; provided, however that reasonable efforts shall
not include the granting of any personal guarantees by any officer, director or individual stockholder of the Buyer.

 

Section 7.7        Delivery
of Financial Statements. Until such time as the Maximum Earn Out Payment is paid to the Seller, the Buyer shall deliver
the following to the Seller:

 

(a)        if the Buyer has
not previously filed the financial statements set forth below with the Securities and Exchange Commission(the “SEC”):

 

(i)        as soon
as practicable, but in any event within 120 days after the end of each fiscal year of the Buyer (or 135 days if the Buyer files
for an extension with the SEC of the filing of its Annual Report on Form 10-K) a balance sheet as of the end of such year, statements
of income and of cash flows for such year and a statement of stockholders’ equity as of the end of such year, prepared in
accordance with GAAP, setting forth, in each case, comparisons to the corresponding period in the preceding fiscal year, all such
financial statements audited and certified by independent public accountants of nationally recognized standing selected by the
Buyer;

 

(ii)        as soon
as practicable, but in any event within 45 days after the end of each of the first three quarters of each fiscal year of the Buyer
(or 50 days if the Buyer files for an extension with the SEC of the filing of its Quarterly Report on Form 10-Q), unaudited statements
of income and of cash flows for such fiscal quarter, and an unaudited balance sheet and a statement of stockholders’ equity
as of the end of such fiscal quarter, all prepared in accordance with GAAP (except that such financial statements may (A) be subject
to normal year-end audit adjustments and (B) not contain all notes thereto that may be required in accordance with GAAP);

 

(b)        with respect to the
financial statements called for in Section 7.7(a), an instrument executed by the chief financial officer and chief executive officer
of the Buyer certifying that such financial statements were prepared in accordance with GAAP consistently applied with prior practice
for earlier periods (except as otherwise set forth in Section 7.7(a)(ii) and fairly present the financial condition of the Buyer
and its results of operation for the periods specified therein.

 

(c)        within two Business
Days of the end of each of Seller’s quarterly accounting periods, Buyer will provide Seller with a good faith estimate of
the amount of any Earnout Payment that has been earned during such quarter. At the beginning of each year, Seller shall provide
Buyer with the dates on which Seller’s quarterly accounting periods end.

 

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Section 7.8        Inspection
of Records Relating to Research Revenue Milestone and Earn Out Payments. Until such time as Seller has received the Maximum
Earn Out Payment, Buyer shall, and shall cause its Affiliates to, keep accurate books and records setting forth its revenue and
amounts payable hereunder to Seller. Buyer shall permit Seller, by independent certified public accountants selected by both Seller
and Buyer, to examine such books and records at any reasonable time during normal business hours, upon at least 48 hours’
notice. Buyer may require such accountants to enter into a reasonably acceptable confidentiality agreement. The opinion of said
independent accountants regarding such reports and related payments shall be binding on the parties, other than in the case of
manifest error. The Seller shall bear the cost of any such examination and review; provided that if the examination shows an underpayment
of Earn Out Payments of more than ten percent of the amount due for the applicable period, then Buyer shall promptly reimburse
Seller for all costs incurred in connection with such examination. Buyer shall promptly pay to Seller the amount of any underpayment
of Earn Out Payment revealed by an examination. Any overpayment of an Earn Out Payment by Buyer revealed by an examination shall
be fully-creditable against future Earn Out Payments under Section 2.7.

 

Section 7.9        Condition
of the Purchased Assets. Buyer and its representatives and agents have had and have exercised, prior to the date hereof, the
right to make all inspections and investigations of the Purchased Assets deemed necessary or desirable by Buyer. Buyer acknowledges
that the Purchased Assets are being sold “as is” and without any representation or warranty of any kind except as expressly
set forth in ARTICLE V of this Agreement. In light of these inspections and investigations and the representations and warranties
made to Buyer by Seller in ARTICLE V, Buyer is relinquishing any right to any claim based on any representations and warranties,
other than those specifically included in ARTICLE V. Any claims Buyer may have for breach of representation or warranty shall be
based solely on the representations and warranties of Seller set forth in ARTICLE V. ALL WARRANTIES OF HABITABILITY, MERCHANTABILITY
AND FITNESS FOR ANY PARTICULAR PURPOSE, AND ALL OTHER WARRANTIES ARISING UNDER THE UNIFORM COMMERCIAL CODE (OR SIMILAR LAWS), ARE
HEREBY WAIVED BY BUYER. Buyer further represents that neither Seller nor any other Person has made any representation or warranty,
express or implied, as to the accuracy or completeness of any information regarding the Purchased Assets or the Assumed Liabilities
not expressly set forth in this Agreement, and neither Seller nor any other Person will have or be subject to any Liability to
Buyer or any other Person resulting from the distribution to Buyer or its representatives or agents, or Buyer’s use of, any
such information, including Overview of Opportunity and the Request for Proposal or its representatives or agents distributed to
Buyer and any other memoranda distributed by Seller relating to the Purchased Assets or other publication provided to Buyer or
its representatives or agents, or any other document or information provided to Buyer or its representatives or agents in connection
with the sale of the Purchased Assets in any “data room” or otherwise.

 

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Section 7.10        Transfer
of Documentation. Following the Closing, Buyer and Seller agree that certain electronic and physical records that relate exclusively
to the Purchased Assets will be transferred to Buyer pursuant to the process set forth on Exhibit D.

 

ARTICLE
VIII

RESEARCH COLLABORATION

 

Section 8.1        Master
Scientific Services Agreement. On or prior to the Closing Date, Buyer and Seller (or Pfizer or one or more Affiliates of Pfizer)
shall have entered into a Master Scientific Services Agreement substantially in the form of Exhibit E pursuant to which
Buyer shall from time to time perform ion channel screening and other contract research services as may be mutually agreed by Pfizer
and Buyer pursuant to one or more statements of work (together with such statements of work, the “MSSA”). The
MSSA shall provide revenue to Buyer totaling at least $1 million (as calculated in accordance with GAAP consistently applied) for
each of the first two 12-month periods following the Closing on a “take or pay” basis (the “Take or Pay Commitment”).
For the avoidance of doubt, Pfizer shall have no obligation whatsoever to enter into any statement of work under the MSSA, or to
otherwise purchase or procure any goods or services from the Buyer, other than with respect to the Take or Pay Commitment.

 

Section 8.2        Research
Revenue Milestone. In the event that prior to the second anniversary of the Closing Date, the Research Revenue Milestone has
not been met, Buyer’s sole and exclusive remedy (other than with respect to enforcement of any Take or Pay Commitment) shall
be the right to retain (and not pay to the Seller) the Research Revenue Milestone Payment.

 

ARTICLE
IX

INDEMNIFICATION

 

Section 9.1        Indemnification
by Seller.

 

(a)        Subject to the provisions
of this ARTICLE IX, Seller agrees to defend, indemnify and hold harmless Buyer and its Affiliates, and their respective directors,
officers, agents, employees, successors and assigns, from and against any and all claims, actions, causes of action, judgments,
awards, Liabilities, losses, costs (including reasonable attorney’s fees) or damages (collectively, a “Loss”
or, the “Losses”) claimed or arising from (i) any Retained Liability, (ii) any breach by Seller of any of its
covenants or agreements contained in this Agreement or (iii) any breach of any representation or warranty of Seller contained in
this Agreement.

 

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(b)        Buyer acknowledges
and agrees that Seller shall not have any Liability under any provision of this Agreement for any Loss to the extent that such
Loss relates to action taken by Buyer or any other Person (other than action taken by Seller in breach of this Agreement) on or
after the Closing Date. Buyer shall take, and shall cause its Affiliates to take, all reasonable steps to mitigate any Loss upon
becoming aware of any event that would reasonably be expected to, or does, give rise thereto, including incurring costs only to
the minimum extent necessary to remedy the breach that gives rise to the Loss.

 

Section 9.2        Indemnification
by Buyer.

 

(a)        Subject to the provisions
of this ARTICLE IX, Buyer agrees to defend, indemnify and hold harmless Seller and its Affiliates, and their respective directors,
officers, agents, employees, successors and assigns, from and against any and all Loss claimed or arising from (i) any Assumed
Liability, (ii) any breach by Buyer of any of its covenants or agreements in this Agreement, (iii) any breach of any representation
or warranty of Buyer contained in this Agreement or (iv) events occurring on or after the Closing Date in connection with the Purchased
Assets, including the use of the Purchased Assets from and after the Closing Date but not including the use of the Purchased Assets
prior to the Closing Date.

 

(b)        Seller shall take,
and cause its Affiliates to take, all reasonable steps to mitigate any Loss upon becoming aware of any event that would reasonably
be expected to, or does, give rise thereto, including incurring costs only to the minimum extent necessary to remedy the breach
that gives rise to the Loss.

 

Section 9.3        Notice
of Claims. If any of the Persons to be indemnified under this ARTICLE IX (the “Indemnified Party”) has suffered
or incurred any Loss, the Indemnified Party shall so notify the party from whom indemnification is sought (the “Indemnifying
Party”) promptly in writing describing such Loss, the amount or estimated amount thereof, if known or reasonably capable
of estimation, and the method of computation of such Loss, all with reasonable particularity and containing a reference to the
provisions of this Agreement or any other agreement or instrument delivered pursuant hereto in respect of which such Loss shall
have occurred. If any action at Law or suit in equity is instituted by or against a third party with respect to which the Indemnified
Party intends to claim any Liability as a Loss under this ARTICLE IX, the Indemnified Party shall promptly notify the Indemnifying
Party of such action or suit and tender to the Indemnifying Party the defense of such action or suit. A failure by the Indemnified
Party to give notice and to tender the defense of the action or suit in a timely manner pursuant to this Section 9.3 shall not
limit the obligation of the Indemnifying Party under this ARTICLE IX, except (i) to the extent such Indemnifying Party is materially
prejudiced thereby, (ii) expenses that are incurred during the period in which notice was not provided shall not be deemed a Loss
and (iii) as provided by Section 9.5.

 

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Section 9.4        Third
Party Claims.

 

(a)        The Indemnifying
Party under this ARTICLE IX shall have the right, but not the obligation, to conduct and control, through counsel of its choosing,
the defense of any third party claim, action, suit or proceeding (a “Third Party Claim”), and the Indemnifying
Party may compromise or settle the same, provided that the Indemnifying Party shall give the Indemnified Party advance notice
of any proposed compromise or settlement. Should the Indemnifying Party so elect to conduct and control the defense of any Third
Party Claim, the Indemnifying Party shall not be liable to the Indemnified Party for legal expenses subsequently incurred by the
Indemnified Party in connection with the defense thereof. No Indemnified Party may compromise or settle any Third Party Claim for
which it is seeking indemnification hereunder without the consent of the Indemnifying Party. The Indemnifying Party shall permit
the Indemnified Party to participate in, but not control, the defense of any such action or suit through counsel chosen by the
Indemnified Party, provided that the fees and expenses of such counsel shall be borne by the Indemnified Party. If the Indemnifying
Party elects not to control or conduct the defense or prosecution of a Third Party Claim, the Indemnifying Party nevertheless shall
have the right to participate in the defense or prosecution of any Third Party Claim and, at its own expense, to employ counsel
of its own choosing for such purpose.

 

(b)        The parties hereto
shall cooperate in the defense or prosecution of any Third Party Claim, with such cooperation to include (i) the retention of and
the provision to the Indemnifying Party of records and information that are reasonably relevant to such Third Party Claim and (ii)
the making available of employees on a mutually convenient basis for providing additional information and explanation of any material
provided hereunder.

 

Section 9.5        Expiration.
Notwithstanding anything in this Agreement to the contrary except for the next sentence, if the Closing shall have occurred, all
covenants, agreements, representations and warranties made herein shall survive the Closing. Notwithstanding the foregoing, all
representations and warranties made herein, and all indemnification obligations under Section 9.1(a)(iii) and Section 9.2(a)(iii)
with respect to any such representation or warranty, shall terminate and expire on, and no action or proceeding seeking damages
or other relief for breach of any thereof or for any misrepresentation or inaccuracy with respect thereto shall be commenced after,
the first anniversary of the Closing Date, unless prior to such anniversary date a claim for indemnification with respect thereto
shall have been made, with reasonable specificity, by written notice given under Section 9.3.

 

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Section 9.6        Losses
Net of Insurance, Etc. The amount of any Loss for which indemnification is provided under Section 9.1 or Section 9.2 shall
be net of (i) any amounts recovered by the Indemnified Party pursuant to any indemnification by or indemnification agreement with
any third party, (ii) any insurance proceeds (net of any increase in premiums directly relating to such Loss as reasonably demonstrated
by the Indemnified Party) or other funds received as an offset against such Loss (each Person named in clauses (i) and (ii), a
“Collateral Source”) and (iii) an amount equal to the present value of the Tax benefit, if any, attributable
to such Loss. Indemnification under this ARTICLE IX shall not be available unless the Indemnified Party first uses all commercially
reasonable efforts to seek recovery from all Collateral Sources. The Indemnifying Party may require an Indemnified Party to assign
the rights to seek recovery pursuant to the preceding sentence; provided, however, that the Indemnifying Party will
then be responsible for pursuing such claim at its own expense. If the amount to be netted hereunder from any payment required
under Section 9.1 or Section 9.2 is determined after payment by the Indemnifying Party of any amount otherwise required to be paid
to an Indemnified Party pursuant to this ARTICLE IX, the Indemnified Party shall repay to the Indemnifying Party, promptly after
such determination, any amount that the Indemnifying Party would not have had to pay pursuant to this ARTICLE IX had such determination
been made at the time of such payment.

 

Section 9.7        Sole Remedy/Waiver.
The parties hereto acknowledge and agree that other than with respect to fraud, the remedies provided for in this Agreement shall
be the parties’ sole and exclusive remedy with respect to the subject matter of this Agreement.

 

Section 9.8        No Consequential
Damages. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, NO PARTY TO THIS AGREEMENT SHALL BE LIABLE TO OR OTHERWISE
RESPONSIBLE TO ANY OTHER PARTY HERETO OR ANY AFFILIATE OF ANY OTHER PARTY HERETO FOR CONSEQUENTIAL, INCIDENTAL OR PUNITIVE DAMAGES
OR FOR DIMINUTION IN VALUE OR LOST PROFITS THAT ARISE OUT OF OR RELATE TO THIS AGREEMENT OR THE PERFORMANCE OR BREACH HEREOF OR
ANY LIABILITY RETAINED OR ASSUMED HEREUNDER.

 

ARTICLE
X

TERMINATION

 

Section 10.1        Termination.
This Agreement may be terminated at any time prior to the Closing:

 

(a)        by written agreement
of Buyer and Seller;

 

(b)        by either Buyer or
Seller, by giving written notice of such termination to the other party, if the Closing shall not have occurred on or prior to
July 31, 2015 (unless the failure to consummate the Closing by such date (i) shall be due to the failure of the party seeking to
terminate this Agreement to have fulfilled any of its obligations under this Agreement); or

 

(c)        by either Seller
or Buyer, if any court of competent jurisdiction or other competent Governmental Authority shall have issued a Governmental Order
or taken any other action permanently restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement
and such Governmental Order or other action shall have become final and nonappealable.

 

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Section 10.2        Effect
of Termination.

 

(a)        In the event of the
termination of this Agreement in accordance with Section 10.1, this Agreement shall thereafter become void and have no effect,
and no party hereto shall have any Liability to the other party hereto or their respective Affiliates, directors, officers or employees,
except for the obligations of the parties hereto contained in this Section 10.2 and Sections 7.1(a), 11.1, 11.7, 11.8, 11.9 and
11.11, and except that nothing herein will relieve any party from Liability for any material breach of any covenant set forth in
this Agreement prior to such termination.

 

(b)        In the event this
Agreement shall be terminated and at such time any party is in material breach of or default under any term or provision hereof,
such termination shall be without prejudice to, and shall not affect, any and all rights to damages that the other party may have
hereunder or otherwise under applicable Law. The damages recoverable by the non-defaulting party shall include all attorneys’
fees reasonably incurred by such party in connection with the transactions contemplated hereby.

 

ARTICLE
XI

MISCELLANEOUS

 

Section 11.1        Notices.
All notices or other communications hereunder shall be deemed to have been duly given and made if in writing and if served by personal
delivery upon the party for whom it is intended, if delivered by registered or certified mail, return receipt requested, or by
a national courier service, or if sent by facsimile, provided that the facsimile is promptly confirmed by telephone confirmation
thereof, to the Person at the address set forth below, or such other address as may be designated in writing hereafter, in the
same manner, by such Person:

 

To Seller:

 

Icagen, Inc.

c/o Pfizer Inc.

235 East 42nd Street

New York, NY 10017

Attention: John W. Watson

 

    	25

    	 

    

 

With a copy to:

 

c/o Pfizer Inc.

235 East 42nd Street

New York, NY 10017

Attention: Andrew J. Muratore, Esq.

 

To Buyer:

 

XRpro Sciences, Inc.

One Kendall Square, Suite B2002

Cambridge, Massachusetts, 02139

Attention: Richie Cunningham

 

With a copy to:

 

Gracin & Marlow, LLP

The Chrysler Building

405 Lexington Avenue

26th Floor

New York, New York 10174

Attention: Leslie Marlow, Esq.

 

Section 11.2        Amendment;
Waiver. Any provision of this Agreement may be amended or waived if, and only if, such amendment or waiver is in writing and
signed, in the case of an amendment, by Buyer and Seller, or in the case of a waiver, by the party against whom the waiver is to
be effective. No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any
other right, power or privilege.

 

Section 11.3        Assignment.
No party to this Agreement may assign any of its rights or obligations under this Agreement without the prior written consent of
the other party hereto, except that Buyer may without such consent assign its rights to purchase the Purchased Assets or its obligation
to assume the Assumed Liabilities hereunder to one or more of its Affiliates, so long as such assignment does not adversely affect
Seller or any of its Affiliates; provided, however, that no such assignment by Buyer shall relieve Buyer of any of
its obligations hereunder.

 

Section 11.4        Entire
Agreement. This Agreement (including all Schedules and Exhibits) contains the entire agreement between the parties hereto with
respect to the subject matter hereof and supersedes all prior agreements and understandings, oral or written, with respect to such
matters, except for the Confidentiality Agreement which will remain in full force and effect for the term provided for therein
and other than any written agreement of the parties that expressly provides that it is not superseded by this Agreement.

 

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Section 11.5        Fulfillment
of Obligations. Any obligation of any party to any other party under this Agreement, which obligation is performed, satisfied
or fulfilled by an Affiliate of such party, shall be deemed to have been performed, satisfied or fulfilled by such party.

 

Section 11.6        Parties
in Interest. Except as provided in ARTICLE IX, this Agreement shall inure to the benefit of and be binding upon the parties
hereto and their respective successors and permitted assigns. Nothing in this Agreement, express or implied, is intended to confer
upon any Person other than Buyer, Seller or their respective successors or permitted assigns, any rights or remedies under or by
reason of this Agreement.

 

Section 11.7        Public
Disclosure. Notwithstanding anything herein to the contrary, each of the parties to this Agreement hereby agrees with the other
parties hereto that, except as may be required to comply with the requirements of any applicable Laws, and the rules and regulations
of the SEC or each stock exchange upon which the securities of either of the parties is listed, no press release or similar public
announcement or communication shall, if prior to the Closing, be made or caused to be made concerning the execution or performance
of this Agreement unless the parties shall have consulted in advance with respect thereto.

 

Section 11.8        Return
of Information. If for any reason whatsoever the transactions contemplated by this Agreement are not consummated, Buyer shall
promptly return to Seller all information, documents, books and records furnished by Seller, or any of its Affiliates, agents,
employees, or representatives (including all copies, summaries and abstracts, if any, thereof) in accordance with the terms of
the Confidentiality Agreement.

 

Section 11.9        Expenses.
Except as otherwise expressly provided in this Agreement, whether or not the transactions contemplated by this Agreement are consummated,
all costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be borne by the
party incurring such expenses. For the avoidance of doubt, Buyer, at their sole cost and expense, shall make all appropriate filings,
notices and applications with the applicable Governmental Authority to reflect the sale, transfer and assignment of any Purchased
Asset, including the ICAGEN trademark. Notwithstanding the foregoing, all Taxes (including any value added taxes but excluding
any Income Taxes) and fees relating to the transfer of the Purchased Assets shall be paid by Buyer.

 

Section 11.10        Schedules.
Seller may amend or supplement the Schedules to ARTICLE V of this Agreement by delivering amended or supplemented Schedules to
Buyer prior to the Closing. The disclosure of any matter in any Schedule, as so amended or supplemented, shall be deemed to be
a disclosure for all purposes of this Agreement (including any other Schedule), other than for purposes of the condition to Closing
in Section 4.2(b), but shall expressly not be deemed to constitute an admission by Seller or Buyer, or to otherwise imply,
that any such matter is material for the purposes of this Agreement.

 

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Section 11.11        Governing
Law; Jurisdiction.

 

(a)        This Agreement shall
be governed by and construed in accordance with the laws of the State of Delaware, without regard to the conflicts of law rules
of such state.

 

(b)        With respect to any
suit, action or proceeding relating to this Agreement (each, a “Proceeding”), each party hereto irrevocably
(i) agrees and consents to be subject to the exclusive jurisdiction of the Court of Chancery of the State of Delaware or if the
Court of Chancery of the State of Delaware does not have jurisdiction, the United Stated District Court for the District of Delaware
or any other court of the State of Delaware and (ii) waives any objection that it may have at any time to the laying of venue of
any Proceeding brought in any such court, waives any claim that such Proceeding has been brought in an inconvenient forum and further
waives the right to object, with respect to such Proceeding, that such court does not have any jurisdiction over such party.

 

Section 11.12        Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which shall constitute
one and the same agreement.

 

Section 11.13        Headings.
The heading references herein and the table of contents hereto are for convenience purposes only, do not constitute a part of this
Agreement and shall not be deemed to limit or affect any of the provisions hereof.

 

Section 11.14        Severability.
The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect
the validity or enforceability of the other provisions hereof. If any provision of this Agreement, or the application thereof to
any Person or any circumstance, is invalid or unenforceable, (a) a suitable and equitable provision shall be substituted therefor
in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision
and (b) the remainder of this Agreement and the application of such provision to other Persons or circumstances shall not be affected
by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of
such provision, or the application thereof, in any other jurisdiction.

 

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IN WITNESS WHEREOF, the
parties have executed or caused this Agreement to be executed as of the date first written above.

 

	 	Icagen, Inc.
	 	 
	 	By:	/s/ Doug Giordano
	 	 	Name: Doug Giordano
	 	 	Title: Vice President
	 	 	 
	 	XRPRO SCIENCES, INC.
	 	 
	 	By:	/s/ Richard Cunningham
	 	 	Name: Richard Cunningham
	 	 	
        Title: Chief Executive Officer and President

 

[Signature
Page to Purchase and Collaboration Agreement.]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}]]