Document:

Exhibit 10.37

Exhibit 10.37

Grant No.:                     

Unilife Corporation

Nonstatutory Stock Option Notice

(page 1 of 2)

This Nonstatutory Stock Option Notice (the “Notice”) evidences the award of nonstatutory stock
options (each, an “Option” or collectively, the “Options”) that have been granted to you, Alan D.
Shortall, subject to and conditioned upon your agreement to the terms of the attached Nonstatutory
Stock Option Agreement (the “Agreement”). The Options entitle you to purchase shares of common
stock, par value US$0.01 per share (“Shares”), of Unilife Corporation, a Delaware corporation (the
“Company”), under the Unilife Corporation 2009 Stock Incentive Plan (the “Plan”). The number of
Shares you may purchase and the exercise price at which you may purchase them are specified below.
This Notice constitutes part of and is subject to the terms and provisions of the Agreement and the
Plan, which are incorporated by reference herein.

Grant Date: [GRANT DATE]

Number of Options: 834,000 Options, each permitting the purchase of one Share.

Exercise Price: US$[PRICE] per Option

Expiration Date: The Options expire at 5:00 p.m. US Eastern Time on the fifth anniversary
of the Grant Date (the “Expiration Date”), unless fully exercised or terminated earlier.

Exercisability Schedule: Subject to the terms and conditions described in the Agreement,
the Options become vested and exercisable as follows:

	 	•	 	The table below sets forth the performance milestones (each, a “Performance
Milestone”) that apply to the Options. The number of Options set forth opposite
each Performance Milestone in the table shall become vested and exercisable upon
the successful achievement of that Performance Milestone provided that (i) such
achievement occurs on or before the fifth anniversary of the Grant Date and
(ii) either your Service with the Company is continuous from the Grant Date through
the applicable date upon which such achievement occurs or your Service with the
Company was terminated by the Company without Cause prior to the achievement of the
Performance Milestone.

	 	 	 	 	 
	 	 	Number of	 
	 	 	Options Eligible	 
	Performance Milestones	 	to Vest	 
	Fair Market Value of one Share of Unilife
Corporation common stock, on the Nasdaq
Stock Market or other US established
securities exchange or market on which the
stock may be trading at the time, is
US$9.45 or more for a minimum of 20 out of
any 30 consecutive trading days
	 	250,000 Options
	Fair Market Value of one Share of Unilife
Corporation common stock, on the Nasdaq
Stock Market or other US established
securities exchange or market on which the
stock may be trading at the time, is
US$12.15 or more for a minimum of 20 out of
any 30 consecutive trading days
	 	250,000 Options
	Fair Market Value of one Share of Unilife
Corporation common stock, on the Nasdaq
Stock Market or other US established
securities exchange or market on which the
stock may be trading at the time, is
US$17.82 or more for a minimum of 20 out of
any 30 consecutive trading days
	 	334,000 Options
	 
	 	 	 
	Total
	 	834,000 Options
	 
	 	 	 

 

 

 

Grant No.:                     

Unilife Corporation

Nonstatutory Stock Option Notice

(page 2 of 2)

	 	•	 	For purposes of determining whether a Performance Milestone has been satisfied,
if the principal trading market for Unilife Corporation equity securities is the
ASX, then (i) each Performance Milestone specified above shall be measured by the
equivalent of six times the closing sale price of one CHESS Depository Interest of
Unilife Corporation on the ASX, as quoted in Australian dollars and converted to US
dollars, and (ii) the closing sale price on each of the relevant trading days shall
be converted to US dollars using the average Australia-to-US currency exchange spot
rate in effect during the relevant period of trading days, as determined by the
Administrator.

	 	•	 	All of the Options, to the extent not earlier terminated or forfeited, will
become vested and exercisable immediately before and contingent upon the occurrence
of a Change in Control (notwithstanding whether your Service continues after the
Change in Control), upon your death, or upon your ceasing to be employed by the
Company by reason of Disability.

	 	 	 	 	 
	 	 	UNILIFE CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Date:	 	 
	 

	 	 	 	 

I acknowledge that I have carefully read the attached Agreement and the prospectus for the
Plan and agree to be bound by all of the provisions set forth in these documents.

	 	 	 	 	 
	 	 	OPTIONEE
	 
	 	 	 	 
	 	 	 
	 	 	Alan D. Shortall
	 
	 	 	 	 
	 

	 	Date:	 	 
	 

	 	 	 	 

 

 

 

Grant No.:                     

Nonstatutory Stock Option Agreement

under the

Unilife Corporation 2009 Stock Incentive Plan

1. Terminology. Capitalized terms used in this Agreement are defined in the
correlating Nonstatutory Stock Option Notice and/or the Glossary at the end of this Agreement.

2. Exercise of Options.

(a) Exercisability. The Options will become exercisable in accordance with the
Exercisability Schedule set forth in the Notice.

(b) Right to Exercise. You may exercise the Options, to the extent exercisable, at
any time on or before 5:00 p.m. US Eastern Time on the Expiration Date or the earlier termination
of the Options, unless otherwise provided under applicable law. Notwithstanding the foregoing, if
at any time the Administrator determines that the delivery of Shares under the Plan or this
Agreement is or may be unlawful under the laws of any applicable jurisdiction, or US Federal, state
or foreign securities laws, the right to exercise the Options or receive Shares pursuant to the
Options shall be suspended until the Administrator determines that such delivery is lawful. The
Options may be exercised only in multiples of whole Shares and may not be exercised at any one time
as to fewer than one hundred Shares (or such lesser number of Shares as to which the Options are
then exercisable). No fractional Shares will be issued under the Options.

(c) Exercise Procedure. In order to exercise the Options, you must provide the
following items to the Secretary of the Company or his or her delegate before the expiration or
termination of the Options:

	 	(i)	 	notice, in such manner and form as the
Administrator may require from time to time, specifying the number of
Shares to be purchased under the Options;

	 	(ii)	 	full payment of the Exercise Price for the
Shares or properly executed, irrevocable instructions, in such manner
and form as the Administrator may require from time to time, to
effectuate a broker-assisted cashless exercise, each in accordance
with Section 2(d) of this Agreement; and

	 	(iii)	 	full payment of applicable withholding
taxes pursuant to Section 6 of this Agreement.

An exercise will not be effective until the Secretary of the Company or his or her delegate
receives all of the foregoing items, and such exercise otherwise is permitted under and complies
with all applicable US Federal, state and foreign securities laws.

(d) Method of Payment. You may pay the Exercise Price by:

	 	(i)	 	delivery of cash, certified or cashier’s
check, money order or other cash equivalent acceptable to the
Administrator in its discretion;

	 	(ii)	 	a broker-assisted cashless exercise in
accordance with Regulation T of the Board of Governors of the Federal
Reserve System (or in accordance with the rules of another applicable
regulatory body) through a brokerage firm approved by the
Administrator;

 

- 1 -

 

	 	(iii)	 	tender (via actual delivery or
attestation) to the Company of other Shares or CHESS Depository
Interests of the Company which have a Fair Market Value on the date
of tender equal to the Exercise Price;

	 	(iv)	 	subject to such limits as the Administrator
may impose from time to time, net settlement;

	 	(v)	 	any other method approved by the
Administrator; or

	 	(vi)	 	any combination of the foregoing.

(e) Issuance of Shares upon Exercise. The Company shall issue to you the Shares
underlying the Options you exercise as soon as practicable after the exercise date, subject to the
Company’s receipt of the aggregate exercise price and the requisite withholding taxes, if any.
Upon issuance of such Shares, the Company may deliver, subject to the provisions of Section 7
below, such Shares on your behalf electronically to the Company’s designated stock plan
administrator or such other broker-dealer as the Company may choose at its sole discretion, within
reason, or may retain such Shares in uncertificated book-entry form. Any share certificates
delivered will, unless the Shares are registered or an exemption from registration is available
under applicable federal and state law, bear a legend restricting transferability of such Shares
and referencing the Holding Period requirement described at Section 4(b) of this Agreement. If you
exercise an Option when CHESS Depository Interests of the Company are listed for trading on the
ASX, you may request that the Shares acquired upon exercise be delivered in the form of CHESS
Depository Interests.

3. Termination of Service.

(a) Termination of Unexercisable Options. If your Service with the Company ceases for
any reason other than your death, Disability, or a termination by the Company without Cause, the
Options that are then unexercisable will terminate immediately upon such cessation.

(b) Exercise Period Following Termination of Service. If your Service with the
Company ceases for any reason, the Options that are then exercisable will terminate upon the
Expiration Date.

4. Restrictions on Transfer.

(a) These Options and, before exercise, the underlying Shares are nontransferable otherwise
than by will or the laws of descent and distribution and, during your lifetime, the Options may be
exercised only by you or, during the period you are under a legal disability, by your guardian or
legal representative. Except as provided above, the Options and, before exercise, the underlying
Shares may not be assigned, transferred, pledged, hypothecated, subjected to any “put equivalent
position,” “call equivalent position” (as each preceding term is defined by Rule 16(a)-1 under the
Securities Exchange Act of 1934), or short position, or disposed of in any way (whether by
operation of law or otherwise) and shall not be subject to execution, attachment or similar
process.

(b) Unless determined otherwise by the Administrator, for the period that commences upon the
date that an Option becomes vested and exercisable and ends on the one-year anniversary of that
date (the “Holding Period”), the Share subject to that Option may not be sold, assigned,
transferred, pledged, hypothecated or disposed of in any way (whether by operation of law or
otherwise), except by will or the laws of descent and distribution, and shall not be subject to
execution, attachment or similar process, and you may not enter into a put, call or other
transaction to hedge the risk of holding such Share; provided, however, that the Holding
Period shall expire on the date on which a Change in Control occurs and on the date on which
your Service with the Company terminates for any reason. The provisions of this Section 4(b) shall
not apply to any Share that, in order to pay the exercise price or satisfy tax withholding
obligations that arise in connection with the exercise of an Option granted under this Agreement,
is surrendered to the Company or is sold in the open market and the sale proceeds are delivered to
the Company.

 

- 2 -

 

(c) The Company shall be entitled to place a stop transfer order on the Shares until the
Holding Period described in Section 4(b) expires. Any attempt to sell, transfer, pledge, assign or
otherwise alienate or hypothecate any such Shares in contravention of the restrictions set forth in
Section 4(a) or Section 4(b) shall be null and void and without effect. The Company shall not be
required to (i) transfer on its books any Shares that have been sold or transferred in
contravention of this Agreement or (ii) treat as the owner of Shares, or otherwise accord voting,
dividend or liquidation rights to, any transferee to whom Shares have been transferred in
contravention of this Agreement.

5. Nonqualified Nature of the Options. The Options are not intended to
qualify as incentive stock options within the meaning of Code section 422, and this Agreement shall
be so construed. You hereby acknowledge that, upon exercise of the Options, you will recognize
compensation income in an amount equal to the excess of the then Fair Market Value of the Shares
over the Exercise Price and must comply with the provisions of Section 6 of this Agreement with
respect to any tax withholding obligations that arise as a result of such exercise.

6. Tax Withholding and Excise Tax Adjustments.

(a) At the time the Options are exercised, in whole or in part, or at any time thereafter as
requested by the Company, you hereby authorize withholding from payroll or any other payment of any
kind due to you and otherwise agree to make adequate provision for foreign, federal, state and
local taxes required by law to be withheld, if any, which arise in connection with the Options.
The Company may require you to make a cash payment to cover any withholding tax obligation as a
condition of exercise of the Options or issuance of share certificates representing Shares. The
Administrator may, in its sole discretion, permit you to satisfy, in whole or in part, any
withholding tax obligation which may arise in connection with the Options either by electing to
have the Company withhold from the Shares to be issued upon exercise that number of Shares, or by
electing to deliver to the Company already-owned Shares, in either case having a Fair Market Value
not in excess of the amount necessary to satisfy the statutory minimum withholding amount due.

(b) Excise Tax Adjustments.

(i) Notwithstanding any other provision herein or any provision in an employment, severance,
change in control or similar agreement to the contrary, in the event it shall be determined that
any payment in the nature of compensation by the Company to you or for your benefit, whether paid,
payable, distributed or distributable pursuant to this Agreement or otherwise (including, without
limitation, any severance payment or accelerated vesting of stock options or restricted stock
granted by the Company) (each, a “Payment” and collectively, the “Total Payments”) would be subject
to the excise tax imposed by Section 4999 of the Code (or any successor provision) or any interest
or penalties with respect to such excise tax (such excise tax, together with any such interest and
penalties, are collectively referred to in this Agreement as the “Excise Tax”), then the Total
Payments shall be reduced (the “Reduction”) to the minimum extent necessary (but not below zero) so
that no portion thereof shall be subject to the Excise Tax; provided, however, that
such Reduction shall be made only if, by reason of such Reduction, the net after-tax benefit
received by you (or for your benefit) shall exceed the net after-tax benefit that would be received
by you (or for your benefit) if no such Reduction was made and you bore the Excise Tax payment
liability.

 

- 3 -

 

(ii) If a Reduction is required pursuant to the terms of Section 6(b)(i), the Total Payments
shall be reduced in the following order: any Payments constituting cash severance shall be reduced
first, any other Payments in the nature of cash compensation shall be reduced second, the number or
accelerated vesting of outstanding equity awards other than stock options shall be reduced third,
and lastly, the number or accelerated vesting of outstanding stock options shall be reduced.

(iii) If it shall be determined that any Payment would be subject to the Excise Tax and
applying the Reduction would not result in a greater net after-tax benefit to you than if no such
Reduction was made and you bore the Excise Tax payment liability, then you shall be entitled to
receive from the Company an additional payment (a “Gross-Up Payment”) in an amount such that after
the payment by you of all taxes (including any interest or penalties imposed with respect to such
taxes), including any Excise Tax, imposed upon the Gross-Up Payment, you retain an amount of the
Gross-Up Payment equal to the Excise Tax imposed upon the Total Payments. In all events, the
Gross-Up Payment, if any, shall be made by no later than the December 31st following the calendar
year in which you remit the Excise Tax.

(iv) All determinations required under this Section 6(b), including without limitation whether
a Reduction shall be applied, the amount of such Reduction, and/or the amount of any Gross-Up
Payment, shall be made by a nationally recognized accounting firm selected by the Company and
reasonably acceptable to you (which may be, but will not be required to be, the Company’s
independent auditors) and such determinations shall be binding on the Company and you.

7. Adjustments. The Administrator may make various adjustments to your Options,
including adjustments to the number and type of securities subject to the Options and the Exercise
Price, in accordance with the terms of the Plan. In the event of any transaction resulting in a
Change in Control (as defined in the Plan) of the Company, the outstanding Options will terminate
upon the effective time of such Change in Control unless provision is made in connection with the
transaction for the continuation or assumption of such Options by, or for the substitution of the
equivalent awards of, the surviving or successor entity or a parent thereof. In the event of such
termination, you will be permitted, immediately before the Change in Control, to exercise or the
outstanding Options.

8. Non-Guarantee of Employment or Service Relationship. Nothing in the Plan or this
Agreement will alter your employment status or other service relationship with the Company, nor be
construed as a contract of employment or service relationship between you and the Company, or as a
contractual right for you to continue in the employ of, or in a service relationship with, the
Company for any period of time, or as a limitation of the right of the Company to discharge you at
any time with or without cause or notice and whether or not such discharge results in the failure
of any of the Options to become exercisable or any other adverse effect on your interests under the
Plan or this Agreement.

9. No Rights as a Stockholder. You shall not have any of the rights of a stockholder
with respect to the Shares until such Shares have been issued to you upon the due exercise of the
Options. No adjustment will be made for dividends or distributions or other rights for which the
record date is prior to the date such Shares are issued.

10. The Company’s Rights. The existence of the Options shall not affect in any way
the right or power of the Company or its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the Company’s capital structure or its
business, or any merger or consolidation of the Company, or any issue of bonds, debentures,
preferred or other stocks with preference ahead of or convertible into, or otherwise affecting the
Shares or the rights thereof, or the dissolution or liquidation of the Company, or any sale or
transfer of all or any part of the Company’s assets or business, or any other corporate act or
proceeding, whether of a similar character or otherwise.

 

- 4 -

 

11. Entire Agreement. This Agreement, together with the correlating Nonstatutory
Stock Option Notice and the Plan, contain the entire agreement between you and the Company with
respect to the Options. Any oral or written agreements, representations, warranties, written
inducements, or other communications made prior to the execution of this Agreement with respect to
the Options shall be void and ineffective for all purposes.

12. Amendment. This Agreement may be amended from time to time by the Administrator
in its discretion; provided, however, that this Agreement may not be modified in a
manner that would have a materially adverse effect on the Options or Shares as determined in the
discretion of the Administrator, except as provided in the Plan or in a written document signed by
you and the Company.

13. Conformity with Plan. This Agreement is intended to conform in all respects with,
and is subject to all applicable provisions of, the Plan. Any conflict between the terms of this
Agreement and the Plan shall be resolved in accordance with the terms of the Plan. In the event of
any ambiguity in this Agreement or any matters as to which this Agreement is silent, the Plan shall
govern. A copy of the Plan is available upon request to the Administrator.

14. Governing Law. The validity, construction and effect of this Agreement, and of any
determinations or decisions made by the Administrator relating to this Agreement, and the rights of
any and all persons having or claiming to have any interest under this Agreement, shall be
determined exclusively in accordance with the laws of the State of Delaware, without regard to its
provisions concerning the applicability of laws of other jurisdictions. Any suit with respect
hereto will be brought in the federal or state courts in the districts which include the city and
state in which the principal executive offices of the Company are located on the date on which the
suit arises, and you hereby agree and submit to the personal jurisdiction and venue thereof.

15. Headings. The headings in this Agreement are for reference purposes only and
shall not affect the meaning or interpretation of this Agreement.

16. Section 409A. This Agreement and the Options granted hereunder are intended to
comply with, or otherwise be exempt from, Section 409A of the Code. Nothing in the Plan or this
Agreement shall be construed as including any feature for the deferral of compensation other than
the deferral of recognition of income until the exercise of the Options. Should any provision of
the Plan or this Agreement be found not to comply with, or otherwise be exempt from, the provisions
of Section 409A of the Code, it may be modified and given effect, in the sole discretion of the
Administrator and without requiring your consent, in such manner as the Administrator determines to
be necessary or appropriate to comply with, or to effectuate an exemption from, Section 409A of the
Code. The foregoing, however, shall not be construed as a guarantee by the Company of any
particular tax effect to you.

17. Electronic Delivery of Documents. By your signing the Notice, you (i) consent to
the electronic delivery of this Agreement, all information with respect to the Plan and the
Options, and any reports of the Company provided generally to the Company’s stockholders; (ii)
acknowledge that you may receive from the Company a paper copy of any documents delivered
electronically at no cost to you by contacting the Company by telephone or in writing; (iii)
further acknowledge that you may revoke your consent to the electronic delivery of documents at any
time by notifying the Company of such revoked consent by telephone, postal service or electronic
mail; and (iv) further acknowledge that you understand that you are not required to consent to
electronic delivery of documents.

 

- 5 -

 

18. No Future Entitlement. By execution of the Notice, you acknowledge and agree
that: (i) the grant of these Options is a one-time benefit which does not create any contractual
or other right to receive future grants of stock options, or compensation in lieu of stock options,
even if stock options have been granted repeatedly in the past; (ii) all determinations with
respect to any such future grants, including, but not limited to, the times when stock options
shall be granted
or shall become exercisable, the maximum number of shares subject to each stock option, and
the purchase price, will be at the sole discretion of the Administrator; (iii) the value of these
Options is an extraordinary item of compensation which is outside the scope of your employment
contract, if any; (iv) the value of these Options is not part of normal or expected compensation or
salary for any purpose, including, but not limited to, calculating any termination, severance,
resignation, redundancy, end of service payments or similar payments, or bonuses, long-service
awards, pension or retirement benefits; (v) the vesting of these Options ceases upon termination of
employment with the Company or transfer of employment from the Company, or other cessation of
eligibility for any reason, except as may otherwise be explicitly provided in this Agreement; (vi)
if the underlying Shares do not increase in value, these Options will have no value, nor does the
Company guarantee any future value; and (vii) no claim or entitlement to compensation or damages
arises if these Options do not increase in value and you irrevocably release the Company from any
such claim that does arise.

19. Personal Data. For the exclusive purpose of implementing, administering and
managing these Options, you, by execution of the Notice, consent to the collection, receipt, use,
retention and transfer, in electronic or other form, of your personal data by and among the Company
and its third party vendors. You understand that personal data (including but not limited to,
name, home address, telephone number, employee number, employment status, social security number,
tax identification number, date of birth, nationality, job and payroll location, data for tax
withholding purposes and shares awarded, cancelled, exercised, vested and unvested) may be
transferred to third parties assisting in the implementation, administration and management of
these Options and the Plan and you expressly authorize such transfer as well as the retention, use,
and the subsequent transfer of the data by the recipient(s). You understand that these recipients
may be located in your country or elsewhere, and that the recipient’s country may have different
data privacy laws and protections than your country. You understand that data will be held only as
long as is necessary to implement, administer and manage these Options. You understand that you
may, at any time, request a list with the names and addresses of any potential recipients of the
personal data, view data, request additional information about the storage and processing of data,
require any necessary amendments to data or refuse or withdraw the consents herein, in any case
without cost, by contacting in writing the Company’s Secretary. You understand, however, that
refusing or withdrawing your consent may affect your ability to accept a stock option.

{Glossary begins on next page}

 

- 6 -

 

GLOSSARY

(a) “Administrator” means the Board of Directors of Unilife Corporation or such committee or
committees appointed by the Board to administer the Plan.

(b) “Affiliate” means any entity, whether now or hereafter existing, which controls, is
controlled by, or is under common control with, Unilife Corporation (including, but not limited to,
joint ventures, limited liability companies, and partnerships). For this purpose, “control” shall
mean ownership of 50% or more of the total combined voting power or value of all classes of stock
or interests of the entity, or the power to direct the management and policies of the entity, by
contract or otherwise.

(c) “ASX” means ASX Limited ACN 008 624 691 or the securities market which it operates, as the
context requires.

(d) “Cause” means the occurrence of an event that allows the Company to terminate your
employment without notice as specified in section 15.3 of the Executive Employment Agreement, dated
October 26, 2008, between you and Unilife Medical Solutions Limited or, if there is a successor
employment agreement between you and the Company in effect immediately before your termination of
Service, then “Cause” shall have the meaning ascribed to such term or words of similar import in
such successor employment agreement.

(e) “Change in Control” has the meaning ascribed thereto in the Plan.

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

(g) “Company” means Unilife Corporation and its Affiliates, except where the context otherwise
requires. For purposes of determining whether a Change in Control has occurred, Company shall mean
only Unilife Corporation.

(h) “Disability” means any medically determinable physical or mental impairment that is
expected to be permanent in nature and which renders you, in the good faith judgment of the
Administrator, unable to perform the essential duties of your position.

(i) “Fair Market Value” has the meaning ascribed thereto in the Plan.

(j) “Holding Period” means the period described in Section 4(b) of this Agreement as it is
measured from the vesting date of each Option.

 

- 7 -

 

(k) “Notice” or “Nonstatutory Stock Option Notice” means the Nonstatutory Stock Option Notice
evidencing the award of the Options that correlates with and makes up a part of this Agreement.

(l) “Service” means your employment with the Company and its Affiliates. Your Service with
the Company and its Affiliates will be considered to have ceased if, immediately after a sale,
merger or other corporate transaction, the trade, business or entity with which you are employed or
otherwise have a service relationship is not Unilife Corporation or its successor, or an Affiliate
of Unilife Corporation or its successor.

(m) “Shares” means shares of common stock of the Company, par value US$0.01 per share.

(n) “You”; “Your”. “You” or “your” means the recipient of the award of Options as reflected
on the Notice. Whenever the Agreement refers to “you” under circumstances where the provision
should logically be construed, as determined by the Administrator, to apply to your estate,
personal representative, or beneficiary to whom the Options may be transferred by will or by
the laws of descent and distribution, the word “you” shall be deemed to include such person.

{End of Agreement}Exhibit 10.38

Exhibit 10.38

MEMBERSHIP INTEREST PURCHASE AGREEMENT

THIS MEMBERSHIP INTEREST PURCHASE AGREEMENT (the “Agreement”) is entered into as of this 14
day of December, 2009, by and between UNILIFE CROSS FARM LLC, a Delaware limited liability company
(“Unilife Cross Farm” or “Seller”) and CROSS FARM, LLC, a Pennsylvania limited liability company
(“Keystone Cross Farm” or “Buyer”). Each of Unilife Cross Farm and Buyer are individually referred
to in this Agreement as a “Parry,” and collectively as the “Parties.”

WHEREAS, Unilife Cross Farm has purchased and intends to develop the property located at 250
Cross Farm Lane, York, Pennsylvania (the “Property”); and

WHEREAS, as part of the development of the Property, Unilife Cross Farm requires approximately
Eighteen Million Dollars ($18,000,000) in financing (the “Financing”) to erect an approximately
170,000 square foot corporate headquarters, office and manufacturing facility (the “Facility”) on
the Property; and

WHEREAS, subject to Article VII hereof, Keystone Cross Farm wishes to purchase a one percent
(1%) interest in Unilife Cross Farm (the “Minority Interest”).

NOW THEREFORE, in consideration of the foregoing, of the representations and warranties set
forth in this Agreement, and of the covenants and agreements contained herein, and intending to be
legally bound, the undersigned parties hereby agree as follows:

ARTICLE I

SALE OF MINORITY INTEREST

Subject to the terms and conditions set forth in this Agreement:

1.1 Sale of the Minority Interest. Unilife Cross Farm shall issue the Minority
Interest to Keystone Cross Farm upon satisfaction of the terms and conditions contained herein,
including the conditions precedent set forth in Article VI.

1.2 Transfer of the Minority Interest. At the Closing (as defined in
Article II hereof), Unilife Cross Farm shall issue, sell, convey, assign, transfer and
deliver sufficient membership interests to Keystone Cross Farm to comprise the Minority Interest,
free and clear of all liens, encumbrances and claims of others whatsoever, and accompanied by an
instrument of transfer satisfactory to Keystone Cross Farm.

1.3 Purchase Price. The purchase price for the Minority Interest shall be Ninety
Thousand Dollars ($90,000) (the “Purchase Price”). Subject to the satisfaction of the conditions
contained in Article VII hereof, at the Closing, Keystone Cross Farm shall deliver the Purchase
Price to Unilife Cross Farm in immediately available funds delivered by: (i) wire transfer to a
bank or financial institution of Unilife Cross Farm’s choosing, or (ii) at the option of Unilife
Cross Farm, delivery of a certified check made payable to the order of Unilife Cross Farm.

 

 

 

1.4 No Guarantees etc. Keystone Cross Farm shall not be required to sign any other
contracts, including but not limited to any note, mortgage, loan or guarantee nor shall be it
obliged to encumber the Minority Interest in any fashion, whether as part of the Financing or
otherwise.

ARTICLE II

CLOSING

The closing of the transactions contemplated by this Agreement (the “Closing”) shall take
place at the law offices of McNees Wallace & Nurick LLC, in Harrisburg, Pennsylvania, ten (10) days
after the satisfaction of all of the Conditions Precedent to the Obligation of Seller to Close as
more particularly set forth in Article VI herein (the “Closing Date”)

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF SELLER

The Seller hereby makes the following representations and warranties, each of which is true
and correct on the date hereof and, unless limited in time below, shall be true and correct on the
Closing Date. Each of the Parties acknowledges and agrees that the Seller has not made, nor has
any party relied upon, any representation or warranty made by Seller except those expressly
provided herein.

3.1 Existence and Qualification. Unilife Cross Farm is a limited liability company
duly organized, validly existing and in good standing under the laws of the State of Delaware, and
is duly qualified to conduct its business in each jurisdiction where the nature of its business or
properties requires it to be so qualified. Unilife Cross Farm has the power and authority to own
and use its properties, and to transact the business in which it is currently engaged.

3.2 Capitalization. All of the issued and outstanding membership interests of Unilife
Cross Farm (the “Outstanding Interests”) are owned by Unilife Corporation. The Outstanding
Interests are duly authorized, validly issued, fully paid and non-assessable. There are no
outstanding warrants, options, contracts, calls, or other rights of any kind with regard to any
authorized and unissued membership interest or any other security of Unilife Cross Farm of any
kind. The Outstanding Interests are not certificated.

3.3 Authorization of Agreement and Enforceability. Seller has taken all necessary
action to authorize the execution and delivery of this Agreement, the performance by it of all
terms and conditions hereof to be performed by it and the consummation of the transactions
contemplated hereby. This Agreement constitutes the legal, valid and binding obligation of Seller,
enforceable in accordance with its terms.

 

2

 

3.4 No Violations; Consents. The execution, delivery and performance by Seller of
this Agreement and the consummation of the transactions contemplated hereby will not (with or
without the giving of notice or the lapse of time, or both): (i) violate any provision of the
Operating Agreement or Certificate of Formation of Seller, (ii) violate or require any consent,
authorization or approval of, or exemption by, or filing under any provision of any law, statute,
rule or regulation to which Seller is subject, (iii) violate any judgment, order, writ or decree of
any court applicable to Seller, (iv) conflict with, result in a breach of, constitute a default
under,
or accelerate or permit the acceleration of the performance required by, or require any
consent, authorization or approval under any contract, agreement or instrument to which Seller is a
party or any of its assets is bound or (v) result in the creation or imposition of any encumbrance
upon its assets, which violation, conflict, breach, default, acceleration or encumbrance, or the
failure to make or obtain such filing, consent, authorization or approval, with respect to the
matters specified in clauses (ii) through (v) could, individually or in the aggregate, reasonably
be expected to have a material adverse effect on Seller or prevent or delay the consummation of the
transactions contemplated by this Agreement.

3.5 Legal Proceedings. There is no claim, action, suit, proceeding, investigation or
inquiry pending before any federal, state or other court or governmental or administrative agency
or, to Seller’s knowledge, threatened, against Seller or any of Seller’s properties, assets,
operations or businesses that might prevent or delay the consummation of the transactions
contemplated hereby.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF BUYER

Buyer hereby makes the following representations and warranties, each of which is true and
correct on the date hereof and, unless limited in time below, shall be true and correct on the
Closing Date. Each of the Parties acknowledges and agrees that the Buyer has not made, nor has any
party relied upon, any representation or warranty made by Buyer except for those expressly provided
herein,

4.1 Existence and Qualification. Buyer is a limited liability company duly organized,
validly existing and in good standing under the laws of the Commonwealth of Pennsylvania, and is
duly qualified to conduct its business in each jurisdiction where the nature of its business or
properties requires it to be so qualified. Buyer has the power and authority to own and use its
properties and to transact the business in which it is engaged.

4.2 Authorization of Agreement and Enforceability. Buyer has taken all necessary
action to authorize the execution and delivery of this Agreement, the performance by it of all
terms and conditions hereof to be performed by it and the consummation of the transactions
contemplated hereby. This Agreement constitutes the legal, valid and binding obligation of Buyer,
enforceable in accordance with its terms.

4.3 No Violations; Consents. The execution, delivery and performance by Buyer of this
Agreement and the consummation of the transactions contemplated hereby will not (with or without
the giving of notice or the lapse of time, or both): (i) violate any provision of the Operating
Agreement or Certificate of Formation of Buyer, (ii) violate or require any consent, authorization
or approval of, or exemption by, or filing under any provision of any law, statute, rule or
regulation to which Buyer is subject, (iii) violate any judgment, order, writ or decree of any
court applicable to Buyer, (iv) conflict with, result in a breach of, constitute a default under,
or accelerate or permit the acceleration of the performance required by, or require any consent,
authorization or approval under any contract, agreement or instrument to which Buyer is a party or
any of its assets is bound or (v) result in the creation or imposition of any encumbrance upon its
assets, which violation, conflict, breach, default, acceleration or encumbrance, or the failure to
make or obtain such filing, consent, authorization or approval, with respect to the matters
specified in clauses (ii) through (v) could, individually or in the aggregate, reasonably be
expected to have a material adverse effect on Buyer or prevent or delay the consummation of the
transactions contemplated by this Agreement.

 

3

 

4.4 Legal Proceedings. There is no claim, action, suit, proceeding, investigation or
inquiry pending before any federal, state or other court or governmental or administrative agency
or, to Buyer’s knowledge, threatened, against Buyer or any of Buyer’s properties, assets,
operations or businesses that might prevent or delay the consummation of the transactions
contemplated hereby.

4.5 Financial Ability. Buyer has the financial ability to fulfill its obligations
under this Agreement.

ARTICLE V

COVENANTS OF THE PARTIES

5.1 Confidentiality. The Parties covenant and agree with one another to hold in
confidence all documents and information concerning the other, furnished to it in connection with
the transactions contemplated by this Agreement and not otherwise available to it, and agree to use
such information only in connection with such transactions. The Parties further agree not to
release or disclose such information to any other person, except their respective lenders,
prospective investors, outside accountants, attorneys and consultants. If the transactions
contemplated by this Agreement shall not be consummated, such confidence shall be maintained for a
period of two (2) years and, during such time period, such information shall not be used in
competition against the other Parties to this Agreement (except to the extent that such information
was previously known to the Parties, as applicable, in the public domain, or later acquired by the
Parties, as applicable, from other legitimate sources) and all such documents shall immediately
thereafter be returned to the Party furnishing same. Notwithstanding the foregoing, either party
shall be permitted to disclose any information or documents to the extent required by law.

5.2 Good Faith Efforts. Each Party shall utilize its respective good faith efforts to
carry out the intents and purposes of this Agreement and to cure or correct any unintentional
deviations from this Agreement and to accomplish any of the undertakings in this Agreement.

ARTICLE VI

CONDITIONS PRECEDENT TO THE OBLIGATION OF SELLER TO CLOSE

The obligations of Seller to consummate the transactions contemplated by this Agreement are
subject to satisfaction of each of the following conditions before or on the Closing Date, subject
to the right of Seller to waive any one or more of such conditions:

6.1 Financing. Unilife Cross Farm shall have received commitments for the Financing
on or before the 31st day of December, 2009 and closing on the Financing shall have occurred on or
before January 31, 2010.

 

4

 

6.2 Representations and Warranties of Buyer. The representations and warranties of
Buyer contained in this Agreement and in any certificate, exhibit, schedule or other document
delivered to Seller pursuant to the provisions of this Agreement or in connection with the
transactions contemplated hereby shall be true and correct on and as of the Closing Date as though
such representations and warranties were made on the Closing Date.

6.3 Performance of this Agreement. Buyer shall have performed and complied with all
agreements and conditions required by this Agreement to be performed or complied with by it prior
to or at the Closing.

6.4 Approval by Members. Buyer’s Members shall have approved this Agreement and the
transactions contemplated hereby to the extent required by law and by its Operating Agreement.

6.5 Certificate. Buyer shall have delivered to Seller a certificate, dated as of the
Closing Date, certifying to the fulfillment of the conditions specified in Sections 6.2,
6.3 and 6.4 of this Agreement. Such certificate or certificates shall be deemed a
representation and warranty of Buyer hereunder.

6.6 Approval of Counsel. The validity of the transactions herein contemplated and the
form and substance of all instruments, closing documents and other documents or certificates to be
delivered by Buyer hereunder shall be reasonably satisfactory to Seller’s counsel.

ARTICLE VII

CONDITIONS PRECEDENT TO THE OBLIGATION OF BUYER TO CLOSE

The obligations of Buyer to consummate the transactions contemplated by this Agreement are
subject to satisfaction of each of the following conditions on or before the Closing Date, subject
to the right of Buyer to waive any one or more of such conditions:

7.1 Representations and Warranties of Seller. The representations and warranties of
Seller contained in this Agreement shall be true and correct in all material respects on and as of
the Closing Date as though such representations and warranties were made on the Closing Date.

7.2 Performance of this Agreement. Seller shall have performed and complied with all
agreements and conditions required by this Agreement to be performed or complied with by Seller
prior to or at the Closing.

7.3 Approval by Members. Seller’s members shall have approved this Agreement and the
transactions contemplated hereby to the extent required by law and by its Operating Agreement.

7.4 Development Agreement. That certain Development Agreement between Keystone
Redevelopment Group, LLC and Seller dated as of the same date herewith (“Development Agreement”)
shall be in full force and effect and neither party shall be in breach thereof or has given notice
of termination or has reason to terminate said Development Agreement.

 

5

 

7.5 Certificate. Seller shall have delivered to Buyer a certificate, dated as of the
Closing Date, certifying to the fulfillment of the conditions specified in Sections 7.1,
7.2, 7.3 and 7.4 of this Agreement. Such certificate or certificates shall
be deemed a representation and warranty of Seller hereunder.

7.6 Approval of Counsel. The validity of the transactions herein contemplated and the
form and substance of all instruments, closing documents and other documents or certificates to be
delivered by Seller hereunder shall be reasonably satisfactory to counsel for Buyer.

ARTICLE VIII

CALL PROVISION

8.1 Unilife’s Call. Keystone Cross Farm shall sell, and Unilife Cross Farm shall
repurchase, the Minority Interest at any time chosen by Unilife Cross Farm, at its sole discretion,
within and no later than five (5) years after the Closing Date, subject to the obligation to
accelerate set forth in Section 8.5 hereof (the “Call”).

(a) Unilife Cross Farm shall notify Keystone Cross Farm of the date it elects to perform the
Call (the “Call Date”), in the manner prescribed under Section 12.1 herein, no later than
thirty (30) days prior to the Call Date.

8.2 Call Transfer of the Minority Interest. On the Call Date, Keystone Cross Farm
shall sell, convey, assign, transfer and deliver the Minority Interest to Unilife Cross Farm, free
and clear of all liens, encumbrances and claims of others whatsoever, and accompanied by an
instrument of transfer reasonably satisfactory to Unilife.

8.3 Call Price. The purchase price of the Minority Interest in connection with the
Call (the “Call Price”) shall be determined as follows: The Base Price shall be the Purchase
Price. The Base Price shall be increased at the rate of twenty percent (20%) per year on a
compounded basis, with this rate increase being pro-rated for time periods of less than one (1)
complete calendar year.

8.4 Delivery of the Call Price. On the Call Date, Unilife Cross Farm shall deliver
the Call Price to Keystone Cross Farm in immediately available funds delivered by wire transfer to
a bank or financial institution of Keystone Cross Farm’s choosing.

8.5 Acceleration of the Call. The Call shall accelerate and occur at the earliest of
the occurrence of any of the following:

(a) the date that all or substantially all of the real or personal properly of any of Unilife
Cross Farm Unilife Medical Solutions, Inc. (“Unilife”), Unilife Corporation (“UC”) or Unilife
Medical Solutions, Ltd. (“Unilife Ltd.”) is levied upon or sold in any judicial proceedings;

(b) the date that a transfer of Unilife Corporation’s interest in Unilife Cross Farm is
compelled by court order in any judicial proceeding;

(c) immediately upon the sale of the Facility or Property;

(d) upon a “Change of Control” of Seller, Unilife, UC or Unilife Ltd.; or

(e) upon the breach by Seller of the Development Agreement.

 

6

 

For purposes of this Agreement, a “Change of Control” of any entity shall be deemed to occur
(i) upon any Change of Control of a nature that would be required to be reported in response to
Item 6(e) of Schedule I4A or Item 5.01 of Form 8-K (or any successor provisions thereto)
promulgated under the Securities Exchange Act of 1934, as amended and the regulations thereunder
(“Exchange Act”); (ii) upon the acquisition by any person or group of beneficial ownership (within
the meaning of Rule 13d-3 under the Exchange Act), directly or indirectly, of twenty-five percent
(25%) or more of the combined voting power of an entity’s outstanding securities then entitled to
vote generally in the election of directors, excluding however acquisitions by an entity or any of
its subsidiaries, or any employee benefit plan sponsored or maintained by an entity, or by a
corporation pursuant to a reorganization, merger, consolidation, division or issuance of securities
of an entity if the conditions described in clauses (v) (A) and (B) below are satisfied; (iii) if
individuals who constitute the board of directors of an entity as of the date of this Agreement
(“Incumbent Board”), cease for any reason to constitute at least a majority of the board of
directors of an entity during any twenty-four (24) month period; provided, however, that any
individual becoming a director subsequent tot the dale of this Agreement whose election, or
nomination for election by an entity’s shareholders, was approved by a vote of at least a majority
of the directors then comprising the board of directors of an entity shall be considered as though
such individual were a member of the Incumbent Board, but excluding for this purpose any such
individual whose initial assumption of office occurs as a result of either an actual or threatened
election contest or other actual or threatened solicitation of proxies or consents by or on behalf
of a person other than the Incumbent Board; (iv) the consummation of a sale of all or substantially
all of the assets of an entity or the complete liquidation or dissolution of an entity, in each
case, whether directly or indirectly; or (v) upon a reorganization, merger, consolidation,
division, or issuance of securities of an entity, in each case unless following such transaction
(A) not less than sixty percent (60%) of the outstanding equity securities of an entity resulting
from or surviving such transaction and of the combined voting power of the outstanding voting
securities of an entity entitled to vote generally in the election of directors is then
beneficially owned by the holders of an entity’s common stock immediately prior to such transaction
is substantially the same proportions as their ownership immediately prior to such transaction, and
(B) at least a majority of the members of the board of directors of the resulting or surviving
corporation were members of the Incumbent Board. Notwithstanding the foregoing, any combination
(merger, exchange, sale, recapitalization, consolidation, scheme of arrangement or other similar
combination) among any of Unilife, Unilife Cross Farm, Unilife, UC, Unilife Ltd. or other entities
having common control with the foregoing shall not be considered a Change of Control.

ARTICLE IX

TERMINATION

9.1 Termination by Seller. Seller may terminate this Agreement by giving written
notice to Buyer at any time prior to the Closing if a condition to the performance by Seller as
more particularly enumerated in Article VI hereunder shall not be fulfilled on or before
the date
specified for the fulfillment thereof or if a material default under or a material breach of
this Agreement shall occur or be made by Buyer and shall remain uncured at the time of the notice.

 

7

 

9.2 Termination by Buyer. Buyer may terminate this Agreement by giving written notice
to Seller at any time prior to the Closing if a condition to the performance by Buyer as more
particularly enumerated in Article VII hereunder shall not be fulfilled on or before the
date specified for the fulfillment thereof or if a material default under or a material breach of
this Agreement shall occur or be made by Seller and shall remain uncured at the time of the notice.

ARTICLE X

MISCELLANEOUS

10.1 Notices. All notices or other communications which are required or permitted
here under shall be in writing and shall be deemed sufficiently given if delivered personally, or
sent by registered or certified mail, postage prepaid, to the party for whom intended, addressed as
follows:

	 	 	 	 	 
	 

	 	If to Unilife Cross Farm, to:
	 	Unilife Cross Farm, LLC
	 

	 	 	 	633 Lowther Road
	 

	 	 	 	Lewisberry, PA 17339
	 

	 	 	 	Facsimile # 717-932-9110
	 
	 	 	 	 
	 

	 	If to Keystone Cross Farm, to:
	 	Robert L. Ventresca
	 

	 	 	 	Cross Farm, LLC
	 

	 	 	 	242 Wood Street
	 

	 	 	 	Doylestown, PA 18901
	 

	 	 	 	Facsimile #215-348-7532

All notices shall be deemed to have been given as of the date received if personally delivered, on
the time of completion of the telecopy transmission, or three days after the date mailed.

10.2 Entire Agreement. This Agreement contains the entire agreement between the
Parties with respect to the transactions contemplated herein and shall not be modified or amended
except by an instrument in writing signed by or on behalf of each of the Parties. However, at any
time prior to the Closing Date, Seller or Buyer may extend the time for the performance of any
obligations or other acts of any of the Parties.

10.3 Assignment. No Party may assign this Agreement, nor any of their respective
rights hereunder, without the prior written consent of each of the other Parties.

10.4 Expenses. All Parties shall pay their own expenses incident to the preparation
and execution of this Agreement and the consummation of the transactions contemplated hereby.

10.5 No Presumption. The Parties have participated jointly in the negotiation and
drafting of this Agreement and, in the event an ambiguity or question of intent or interpretation
arises, this Agreement shall be construed as jointly drafted by the Parties and no presumption or
burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any
provision of this Agreement.

 

8

 

10.6 No Waivers. The failure of either party to seek redress for violation, or to
insist upon the strict performance, of any covenant, agreement, provision or condition of this
Agreement shall not constitute a waiver thereof and such party shall have all remedies provided for
herein or by applicable law with respect to the same or any subsequent act or omission which
constitutes such violation or non-performance.

10.7 Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the Commonwealth of Pennsylvania without giving effect to its conflicts
of laws provisions.

10.8 Jurisdiction. This Agreement will be deemed to have been made and delivered in
Pennsylvania and each party bound hereby (i) agrees that any suit, action or proceeding arising out
of or relating to this Agreement shall be instituted exclusively in the Courts of Common Pleas or
in the United States District Courts located in the Commonwealth of Pennsylvania, and
(ii) irrevocably consents to the jurisdiction of the County Common Pleas Courts and the United
States District Courts located in the Commonwealth of Pennsylvania in any such suit, action or
proceeding.

10.9 Severability. If any term, covenant, or condition of this Agreement, shall to
any extent, be held invalid or unenforceable, the remainder of this Agreement shall not be affected
thereby and each term, covenant, and condition of this Agreement shall be separately valid and
enforceable to the fullest extent permitted by law.

10.10 Counterparts. This Agreement may be executed simultaneously in any number of
counterparts, each of which shall be deemed an original but all of which together shall constitute
one and the same instrument.

10.11 Headings. The paragraph headings in this Agreement arc for convenience of
reference only and shall not be deemed to alter or affect any provisions hereof.

[SIGNATURES APPEAR ON FOLLOWING PAGE]

 

9

 

IN WITNESS WHEREOF, and intending to be legally bound hereby, the parties hereto have duly
executed this Agreement as of the day and year first above written.

	 	 	 	 	 	 	 	 	 
	 	 	Unilife Cross Farm, LLC
	 	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Alan Shortall	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Printed Name:
	 	Alan Shortall	 	 
	 

	 	 	 	Its: CEO
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Cross Farm, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Robert L. Ventresca	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Printed Name:
	 	Robert L. Ventresca	 	 
	 

	 	 	 	Its: Manager
	 	 

 

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]