EX-10.32



 Exhibit 10.32 

AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 

THIS AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (as the same may from time to time be amended, modified,
supplemented or restated, this “Agreement”) dated as of March 31, 2014 (the “Effective Date”) among OXFORD FINANCE LLC, a Delaware limited liability company with an office located at 133 North Fairfax Street,
Alexandria, Virginia 22314 (“Oxford”), as collateral agent (in such capacity, “Collateral Agent”), the Lenders listed on Schedule 1.1 hereof or otherwise a party hereto from time to time including Oxford
in its capacity as a Lender and SILICON VALLEY BANK, a California corporation with an office located at 3003 Tasman Drive, Santa Clara, CA 95054 (“Bank” or “SVB”) (each a “Lender” and collectively,
the “Lenders”), and SORRENTO THERAPEUTICS, INC., a Delaware corporation (“Parent”), IGDRASOL, INC., a Delaware corporation (“IgDraSol”), and SHERRINGTON PHARMACEUTICALS, INC., a Delaware corporation
(“Sherrington”), each with offices located at 6042 Cornerstone Court, Suite B, San Diego, CA 92121, CONCORTIS BIOSYSTEMS, CORP., a Delaware corporation (“Concortis”), with offices located at 11760 Sorrento Valley
Road, Suite N, San Diego, CA 92121 and ARK ANIMAL THERAPEUTICS, INC., a Delaware corporation, with offices located at 6042 Cornerstone Court, Suite B, San Diego, CA 92121 (individually and collectively, jointly and severally,
“Borrower”), amends and restates in its entirety that certain Loan and Security Agreement dated as of September 27, 2013 by and among Collateral Agent, Oxford, in its capacity as a Lender, Silicon Valley Bank, as a Lender,
Parent, IgDraSol, Sherrington and Concortis (the “Original Agreement”) and provides the terms on which the Lenders shall lend to Borrower and Borrower shall repay the Lenders. The parties agree as follows: 

 

	1.        ACCOUNTING AND OTHER TERMS	 



1.1        Accounting terms not defined in this Agreement shall be construed in
accordance with GAAP. Calculations and determinations must be made in accordance with GAAP. Capitalized terms not otherwise defined in this Agreement shall have the meanings set forth in Section 13. All other terms contained in this Agreement,
unless otherwise indicated, shall have the meaning provided by the Code to the extent such terms are defined therein. All references to “Dollars” or “$” are United States Dollars, unless otherwise noted. 

 

	2.        LOANS AND TERMS OF PAYMENT	 



2.1        Promise to Pay.  Borrower hereby unconditionally
promises to pay each Lender, the outstanding principal amount of all Term Loans advanced to Borrower by such Lender and accrued and unpaid interest thereon and any other amounts due hereunder as and when due in accordance with this Agreement. 

2.2        Term Loans. 

(a)        Availability. 

(i)        Subject to the terms and conditions of the Original Agreement, on
September 27, 2013, Oxford loaned to Borrower a term loan in an amount equal to Three Million Five Hundred Thousand Dollars ($3,500,000.00) (“the Oxford Original Term Loan”) and SVB loaned to Borrower a term loan in an amount
equal to One Million Five Hundred Thousand Dollars ($1,500,000.00) (the “SVB Original Term Loan”). 
 (ii)
        Subject to the terms and conditions of this Agreement, Lenders agree, severally and not jointly, to lend to Borrower on the Effective Date, or as soon thereafter as practical, term loans as follows:

 (1)        SVB shall make a term loan to Borrower in an amount equal to One
Million Five Hundred Thousand Dollars ($1,500,000.00) (the “SVB Pay Off Term Loan”), the proceeds of which will be used to repay all Obligations owing from Borrower to SVB in respect of the SVB Original Term Loan; 

(2)        SVB shall make a term loan to Borrower in the amount equal to Three
Million Five Hundred Thousand Dollars ($3,500,000.00) (the “SVB New Money Term Loan” and together with the SVB Pay Off Term Loan, the “SVB Term Loan”); and 

  
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 (iii)        Oxford shall make a term
loan to Borrower in an amount equal to Four Million Dollars ($4,000,000.00) (the “Oxford New Money Term Loan” and together with the Oxford Original Term Loan, collectively, the “Oxford Term Loan”; the Oxford Term
Loan, together with the SVB Term Loan, each a “Term Loan” and collectively, the “Term Loans”). When repaid, the Term Loans may not be re-borrowed. 

(b)        Repayment.  Borrower shall make monthly payments of
interest only commencing on the first (1st) Payment Date following the Funding Date of the Term Loan (for the avoidance of doubt, such amount shall include the amount of the Oxford Original
Term Loan outstanding on the Effective Date), and continuing on the Payment Date of each successive month thereafter through and including the Payment Date immediately preceding the Amortization Date. Borrower agrees to pay, on the Funding Date of
the Term Loan, any initial partial monthly interest payment otherwise due for the period between the Funding Date of the Term Loan and the first Payment Date thereof. Commencing on the Amortization Date, and continuing on the Payment Date of each
month thereafter, Borrower shall make consecutive equal monthly payments of principal and interest, in arrears, to each Lender, as calculated by Collateral Agent (which calculations shall be deemed correct absent manifest error) based upon:
(1) the amount of such Lender’s Term Loan, (2) the effective rate of interest, as determined in Section 2.3(a), and (3) a repayment schedule equal to thirty-six (36) months, if the Amortization Date is
November 1, 2014, or thirty (30) months, if the Amortization Date is May 1, 2015. All unpaid principal and accrued and unpaid interest with respect to the Term Loan is due and payable in full on the Maturity Date. The Term Loan
may only be prepaid in accordance with Sections 2.2(c) and 2.2(d). 

(c)        Mandatory Prepayments.  If the Term Loans are accelerated
following the occurrence of an Event of Default, Borrower shall immediately pay to Lenders, payable to each Lender in accordance with its respective Pro Rata Share, an amount equal to the sum of: (i) all outstanding principal of the Term Loans
plus accrued and unpaid interest thereon through the prepayment date, (ii) the Final Payment, (iii) the Prepayment Fee, plus (iv) all other Obligations that are due and payable, including Lenders’ Expenses and interest at the
Default Rate with respect to any past due amounts. Notwithstanding (but without duplication with) the foregoing, on the Maturity Date, if the Final Payment had not previously been paid in full in connection with the prepayment of the Term Loans in
full, Borrower shall pay to Collateral Agent, for payment to each Lender in accordance with its respective Pro Rata Share, the Final Payment in respect of the Term Loan(s). 

(d)        Permitted Prepayment of Term Loans.  Borrower shall have
the option to prepay all, but not less than all, of the Term Loans advanced by the Lenders under this Agreement, provided Borrower (i) provides written notice to Collateral Agent of its election to prepay the Term Loans at least seven
(7) days prior to such prepayment, and (ii) pays to the Lenders on the date of such prepayment, payable to each Lender in accordance with its respective Pro Rata Share, an amount equal to the sum of (A) all outstanding principal of
the Term Loans plus accrued and unpaid interest thereon through the prepayment date, (B) the Final Payment, (C) the Prepayment Fee, plus (D) all other Obligations that are due and payable, including Lenders’ Expenses, if any, and
interest at the Default Rate with respect to any past due amounts. The Lenders hereby agree to waive (i) the unaccrued portion of the final payment, and (ii) any prepayment fees, with respect to the Oxford Original Term Loan and the SVB
Original Term Loan. 
 2.3        Payment of Interest on the Credit
Extensions. 
 (a)        Interest Rate.  Subject to
Section 2.3(b), the principal amount outstanding under the Term Loans shall accrue interest at a fixed per annum rate (which rate shall be fixed for the duration of the applicable Term Loan) equal to the Basic Rate, determined by Collateral
Agent on the Funding Date of the applicable Term Loan, which interest shall be payable monthly in arrears in accordance with Sections 2.2(b) and 2.3(e). Interest shall accrue on each Term Loan commencing on, and including, the Funding Date of
such Term Loan, and shall accrue on the principal amount outstanding under such Term Loan through and including the day on which such Term Loan is paid in full. 

(b)        Default Rate.  Immediately upon the occurrence and during
the continuance of an Event of Default, Obligations shall accrue interest at a fixed per annum rate equal to the rate that is otherwise applicable thereto plus five percentage points (5.00%) (the “Default Rate”). Payment or
acceptance of the increased interest rate provided in this Section 2.3(b) is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of
Collateral Agent. 

  
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 (c)        360-Day Year.  Interest shall be computed on the basis of a three hundred sixty (360) day year consisting of twelve (12) months of thirty (30) days. 

(d)        Debit of Accounts.  Collateral Agent and each Lender may
debit (or ACH) any deposit accounts, maintained by Borrower or any of its Subsidiaries, including the Designated Deposit Account, for principal and interest payments or any other amounts Borrower owes the Lenders under the Loan Documents when due.
Any such debits (or ACH activity) shall not constitute a set-off. Without limiting the foregoing, Collateral Agent and each Lender shall use commercially reasonable efforts to notify Borrower of any amounts
(other than principal and interest payments) debited from Borrower’s deposit accounts with respect to this Agreement. 

(e)        Payments.  Except as otherwise expressly provided herein,
all payments by Borrower under the Loan Documents shall be made to the respective Lender to which such payments are owed, at such Lender’s office in immediately available funds on the date specified herein. Unless otherwise provided, interest
is payable monthly on the Payment Date of each month. Payments of principal and/or interest received after 12:00 noon Eastern time are considered received at the opening of business on the next Business Day. When a payment is due on a day that is
not a Business Day, the payment is due the next Business Day and additional fees or interest, as applicable, shall continue to accrue until paid. All payments to be made by Borrower hereunder or under any other Loan Document, including payments of
principal and interest, and all fees, expenses, indemnities and reimbursements, shall be made without set-off, recoupment or counterclaim, in lawful money of the United States and in immediately available
funds. 
 2.4        Secured Promissory Notes.  The Term
Loans shall be evidenced by a Secured Promissory Note or Notes in the form attached as Exhibit D hereto (each a “Secured Promissory Note”), and shall be repayable as set forth in this Agreement. Borrower irrevocably
authorizes each Lender to make or cause to be made, on or about the Funding Date of any Term Loan or at the time of receipt of any payment of principal on such Lender’s Secured Promissory Note, an appropriate notation on such Lender’s
Secured Promissory Note Record reflecting the making of such Term Loan or (as the case may be) the receipt of such payment. The outstanding amount of each Term Loan set forth on such Lender’s Secured Promissory Note Record shall be prima facie
evidence of the principal amount thereof owing and unpaid to such Lender, but the failure to record, or any error in so recording, any such amount on such Lender’s Secured Promissory Note Record shall not limit or otherwise affect the
obligations of Borrower under any Secured Promissory Note or any other Loan Document to make payments of principal of or interest on any Secured Promissory Note when due. Upon receipt of an affidavit of an officer of a Lender as to the loss, theft,
destruction, or mutilation of its Secured Promissory Note, Borrower shall issue, in lieu thereof, a replacement Secured Promissory Note in the same principal amount thereof and of like tenor. 

2.5        Fees.  Borrower shall pay to
Collateral Agent and/or to each Lender, as applicable: 
 (a)        Facility
Fee.  A fully earned, non-refundable facility fee of Seventy Five Thousand Dollars ($75,000.00) to be shared between the Lenders pursuant to their respective Commitment Percentages payable on the
Effective Date; 
 (b)        Final Payment.  The Final Payment,
when due hereunder, to be shared between the Lenders in accordance with their respective Pro Rata Shares; 

(c)        Prepayment Fee.  The Prepayment Fee, when due hereunder,
if at all, to be shared between the Lenders in accordance with their respective Pro Rata Shares; and 

(d)        Lenders’ Expenses.  All Lenders’ Expenses
(including reasonable attorneys’ fees and expenses for documentation and negotiation of this Agreement) incurred through and after the Effective Date, when due. 

(e)        Accrued Final Payment.  The accrued portion of the Final
Payment under the Original Agreement in an amount equal to Twenty Four Thousand Nine Hundred and 80/100 Dollars ($24,900.80) payable to Oxford and Eleven Thousand Six Hundred Sixty Six and 29/100 Dollars ($11,666.29) payable to SVB on the


  
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Effective Date. For the avoidance of doubt, prepayment fees under the Original Agreement are hereby waived by Lenders. 

2.6        Withholding.  Payments received by the
Lenders from Borrower hereunder will be made free and clear of and without deduction for any and all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed by any governmental authority
(including any interest, additions to tax or penalties applicable thereto). Specifically, however, if at any time any Governmental Authority, applicable law, regulation or international agreement requires Borrower to make any withholding or
deduction from any such payment or other sum payable hereunder to the Lenders, Borrower hereby covenants and agrees that the amount due from Borrower with respect to such payment or other sum payable hereunder will be increased to the extent
necessary to ensure that, after the making of such required withholding or deduction, each Lender receives a net sum equal to the sum which it would have received had no withholding or deduction been required and Borrower shall pay the full amount
withheld or deducted to the relevant Governmental Authority. Borrower will, upon request, furnish the Lenders with proof reasonably satisfactory to the Lenders indicating that Borrower has made such withholding payment; provided, however, that
Borrower need not make any withholding payment if the amount or validity of such withholding payment is contested in good faith by appropriate and timely proceedings and as to which payment in full is bonded or reserved against by Borrower. The
agreements and obligations of Borrower contained in this Section 2.6 shall survive the termination of this Agreement. 

3.        CONDITIONS OF LOANS 

   3.1        Conditions Precedent to Initial Credit
Extension.  Each Lender’s obligation to make a Term Loan is subject to the condition precedent that Collateral Agent and each Lender shall consent to or shall have received, in form and substance satisfactory to Collateral Agent
and each Lender, such documents, and completion of such other matters, as Collateral Agent and each Lender may reasonably deem necessary or appropriate, including, without limitation: 

(a)        original Loan Documents, each duly executed by Borrower and each
Subsidiary, as applicable; 
 (b)        duly executed original Control Agreements
with respect to any Collateral Accounts maintained by Borrower or any of its Subsidiaries; 

(c)        duly executed original Secured Promissory Notes in favor of each Lender
according to its Term Loan Commitment Percentage; 
 (d)        except with respect
to Sorrento HK, the certificate(s) for the Shares, together with Assignment(s) Separate from Certificate, duly executed in blank; 

(e)        the Operating Documents and good standing certificates of Borrower and its
Subsidiaries certified by the Secretary of State (or equivalent agency) of Borrower’s and such Subsidiaries’ jurisdiction of organization or formation and each jurisdiction in which Borrower and each Subsidiary is qualified to conduct
business, each as of a date no earlier than thirty (30) days prior to the Effective Date; 

(f)        a completed Perfection Certificate for Borrower and each of its
Subsidiaries; 
 (g)        the Annual Projections, for the current calendar year
(receipt of which Collateral Agent hereby acknowledges); 
 (h)        duly
executed original officer’s certificate for Borrower and each Subsidiary that is a party to the Loan Documents, in a form acceptable to Collateral Agent and the Lenders; 

(i)        certified copies, dated as of date no earlier than thirty (30) days
prior to the Effective Date, of financing statement searches, as Collateral Agent shall request, accompanied by written evidence (including 

  
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any UCC termination statements) that the Liens indicated in any such financing statements either constitute Permitted Liens or have been or, in connection with the initial Credit Extension, will
be terminated or released; 
 (j)        a landlord’s consent executed in
favor of Collateral Agent in respect of all of Borrower’s and each Subsidiaries’ leased locations if either (i) the assets at such location are valued in excess of Two Hundred Thousand Dollars ($200,000.00) in the aggregate or
(ii) Borrower’s Books are maintained at any such location; 

(k)        evidence satisfactory to Collateral Agent and the Lenders that the
insurance policies required by Section 6.5 hereof are in full force and effect, together with appropriate evidence showing loss payable and/or additional insured clauses or endorsements in favor of Collateral Agent, for the ratable benefit of
the Lenders; 
 (l)        a subordination agreement, duly executed by each holder
of Subordinated Debt; and 
 (m)        payment of the fees and Lenders’
Expenses then due as specified in Section 2.5 hereof. 

3.2        Conditions Precedent to all Credit Extensions.  The
obligation of each Lender to make each Credit Extension, including the initial Credit Extension, is subject to the following conditions precedent: 

(a)        receipt by (i) the Lenders of an executed Disbursement Letter in the
form of Exhibit B-1 attached hereto; and (ii) SVB of an executed Loan Payment/Advance Request Form in the form of Exhibit B-2 attached
hereto; 
 (b)        the representations and warranties in Section 5 hereof
shall be true, accurate and complete in all material respects on the date of the Disbursement Letter (and the Loan Payment/Advance Request Form) and on the Funding Date of each Credit Extension; provided, however, that such materiality qualifier
shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be
true, accurate and complete in all material respects as of such date, and no Event of Default shall have occurred and be continuing or result from the Credit Extension. Each Credit Extension is Borrower’s representation and warranty on that
date that the representations and warranties in Section 5 hereof are true, accurate and complete in all material respects; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that
already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such
date; 
 (c)        in such Lender’s sole discretion, there has not been any
Material Adverse Change or any material adverse deviation by Borrower from the Annual Projections of Borrower presented to and accepted by Collateral Agent and each Lender; 

(d)        to the extent not delivered at the Effective Date, duly executed original
Secured Promissory Notes and Warrants, in number, form and content acceptable to each Lender, and in favor of each Lender according to its Commitment Percentage, with respect to each Credit Extension made by such Lender after the Effective Date; and

 (e)        payment of the fees and Lenders’ Expenses then due as specified
in Section 2.5 hereof. 
 3.3        Covenant to
Deliver.  Borrower agrees to deliver to Collateral Agent and the Lenders each item required to be delivered to Collateral Agent under this Agreement as a condition precedent to any Credit Extension. Borrower expressly agrees that a
Credit Extension made prior to the receipt by Collateral Agent or any Lender of any such item shall not constitute a waiver by Collateral Agent or any Lender of Borrower’s obligation to deliver such item, and any such Credit Extension in the
absence of a required item shall be made in each Lender’s sole discretion. 

3.4        Procedures for Borrowing.  Subject to the prior
satisfaction of all other applicable conditions to the making of a Term Loan set forth in this Agreement, to obtain a Term Loan, Borrower shall notify the Lenders 

  
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(which notice shall be irrevocable) by electronic mail, facsimile, or telephone by 12:00 noon Eastern time three (3) Business Days prior to the date the Term Loan is to be made. Together
with any such electronic, facsimile or telephonic notification, Borrower shall deliver to the Lenders by electronic mail or facsimile a completed Disbursement Letter (and the Loan Payment/Advance Request Form, with respect to SVB) executed by a
Responsible Officer or his or her designee. The Lenders may rely on any telephone notice given by a person whom a Lender reasonably believes is a Responsible Officer or designee. On the Funding Date, each Lender shall credit and/or transfer (as
applicable) to the Designated Deposit Account, an amount equal to its Term Loan Commitment. 
  

	4.        CREATION OF SECURITY INTEREST	 



4.1        Grant of Security Interest.   Borrower hereby
grants Collateral Agent, for the ratable benefit of the Lenders, to secure the payment and performance in full of all of the Obligations, a continuing security interest in, and pledges to Collateral Agent, for the ratable benefit of the Lenders, the
Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof. Borrower represents, warrants, and covenants that the security interest granted herein is and shall at all times continue to be
a first priority perfected security interest in the Collateral, subject only to Permitted Liens that are permitted by the terms of this Agreement to have priority to Collateral Agent’s Lien. If Borrower shall acquire a commercial tort claim (as
defined in the Code), Borrower, shall promptly notify Collateral Agent in a writing signed by Borrower, as the case may be, of the general details thereof (and further details as may be required by Collateral Agent) and grant to Collateral Agent,
for the ratable benefit of the Lenders, in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to Collateral Agent. 

Borrower acknowledges that it previously has entered, and/or may in the future enter, into Bank Services Agreements with Bank.
Regardless of the terms of any Bank Services Agreement, Borrower agrees that any amounts Borrower owes Bank thereunder shall be deemed to be Obligations hereunder and that it is the intent of Borrower and Bank to have all such Obligations secured by
the first priority perfected security interest in the Collateral granted herein (subject only to Permitted Liens that may have superior priority to Bank’s Lien in this Agreement). 

If this Agreement is terminated, Collateral Agent’s Lien in the Collateral shall continue until the Obligations (other
than inchoate indemnity obligations) are repaid in full in cash. Upon payment in full in cash of the Obligations (other than inchoate indemnity obligations) and at such time as the Lenders’ obligation to make Credit Extensions has terminated,
Collateral Agent shall and each Lender, at the sole cost and expense of Borrower, release its Liens in the Collateral and all rights therein shall revert to Borrower. In the event (x) all Obligations (other than inchoate indemnity obligations),
except for Bank Services, are satisfied in full, and (y) this Agreement is terminated, Collateral Agent and each Lender shall terminate the security interest granted herein upon Borrower providing cash collateral acceptable to Bank in its good
faith business judgment consistent with Bank’s then current practice for Bank Services, if any. In the event such Bank Services consist of outstanding Letters of Credit, Borrower shall provide to Bank cash collateral in an amount equal to
(x) if such Letters of Credit are denominated in Dollars, then one hundred five percent (105%); and (y) if such Letters of Credit are denominated in a Foreign Currency, then one hundred ten percent (110%), of the Dollar Equivalent of the
face amount of all such Letters of Credit plus all interest, fees, and costs due or to become due in connection therewith (as estimated by Bank in its good faith business judgment), to secure all of the Obligations relating to such Letters of
Credit. 
 4.2        Authorization to File Financing
Statements.  Borrower hereby authorizes Collateral Agent to file financing statements or take any other action required to perfect Collateral Agent’s security interests in the Collateral, without notice to Borrower, with all
appropriate jurisdictions to perfect or protect Collateral Agent’s interest or rights under the Loan Documents, including a notice that any disposition of the Collateral, except to the extent permitted by the terms of this Agreement, by
Borrower, or any other Person, shall be deemed to violate the rights of Collateral Agent under the Code. 

4.3        Pledge of Collateral.  Borrower hereby pledges,
assigns and grants to Collateral Agent, for the ratable benefit of the Lenders, a security interest in all the Shares, together with all proceeds and substitutions thereof, all cash, stock and other moneys and property paid thereon, all rights to
subscribe for securities declared or granted in connection therewith, and all other cash and noncash proceeds of the foregoing, as security for the performance of the Obligations. On the Effective Date, or, to the extent not certificated as of the
Effective Date, 

  
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within ten (10) days of the certification of any Shares, the certificate or certificates for the Shares will be delivered to Collateral Agent, accompanied by an instrument of assignment duly
executed in blank by Borrower. To the extent required by the terms and conditions governing the Shares, Borrower shall cause the books of each entity whose Shares are part of the Collateral and any transfer agent to reflect the pledge of the Shares.
Upon the occurrence and during the continuance of an Event of Default hereunder, Collateral Agent may effect the transfer of any securities included in the Collateral (including but not limited to the Shares) into the name of Collateral Agent and
cause new (as applicable) certificates representing such securities to be issued in the name of Collateral Agent or its transferee. Borrower will execute and deliver such documents, and take or cause to be taken such actions, as Collateral Agent may
reasonably request to perfect or continue the perfection of Collateral Agent’s security interest in the Shares. Unless an Event of Default shall have occurred and be continuing, Borrower shall be entitled to exercise any voting rights with
respect to the Shares and to give consents, waivers and ratifications in respect thereof, provided that no vote shall be cast or consent, waiver or ratification given or action taken which would be inconsistent with any of the terms of this
Agreement or which would constitute or create any violation of any of such terms. All such rights to vote and give consents, waivers and ratifications shall terminate upon the occurrence and continuance of an Event of Default. 

 

	5.        REPRESENTATIONS AND WARRANTIES	 



Borrower represents and warrants to Collateral Agent and the Lenders as follows: 

5.1        Due Organization, Authorization: Power and
Authority.  Borrower and each of its Subsidiaries is duly existing and in good standing as a Registered Organization in its jurisdictions of organization or formation and Borrower and each of its Subsidiaries is qualified and licensed
to do business and is in good standing in any jurisdiction in which the conduct of its businesses or its ownership of property requires that it be qualified except where the failure to do so could not reasonably be expected to have a Material
Adverse Change. In connection with this Agreement, Borrower and each of its Subsidiaries has delivered to Collateral Agent a completed perfection certificate, dated as of the Effective Date, signed by an officer of Borrower or such Subsidiary (each
as updated from time to time, as permitted hereunder, a “Perfection Certificate” and collectively, the “Perfection Certificates”). Borrower represents and warrants that (a) Borrower and each of its
Subsidiaries’ exact legal name is that which is indicated on its respective Perfection Certificate and on the signature page of each Loan Document to which it is a party; (b) Borrower and each of its Subsidiaries is an organization of the
type and is organized in the jurisdiction set forth on its respective Perfection Certificate; (c) each Perfection Certificate accurately sets forth each of Borrower’s and its Subsidiaries’ organizational identification number or
accurately states that Borrower or such Subsidiary has none; (d) each Perfection Certificate accurately sets forth Borrower’s and each of its Subsidiaries’ place of business, or, if more than one, its chief executive office as well as
Borrower’s and each of its Subsidiaries’ mailing address (if different than its chief executive office); (e) Borrower and each of its Subsidiaries (and each of its respective predecessors) have not, in the past five (5) years,
changed its jurisdiction of organization, organizational structure or type, or any organizational number assigned by its jurisdiction; and (f) all other information set forth on the Perfection Certificates pertaining to Borrower and each of its
Subsidiaries, is accurate and complete (it being understood and agreed that Borrower and each of its Subsidiaries may from time to time update certain information in the Perfection Certificates (including the information set forth in clause
(d) above) after the Effective Date to the extent permitted by one or more specific provisions in this Agreement); such updated Perfection Certificates subject to the review and approval of Collateral Agent. If Borrower or any of its
Subsidiaries is not now a Registered Organization but later becomes one, Borrower shall notify Collateral Agent of such occurrence and provide Collateral Agent with such Person’s organizational identification number within five
(5) Business Days of receiving such organizational identification number. 
 The execution, delivery and performance by
Borrower and each of its Subsidiaries of the Loan Documents to which it is a party have been duly authorized, and do not (i) conflict with any of Borrower’s or such Subsidiaries’ organizational documents, including its respective
Operating Documents, (ii) contravene, conflict with, constitute a default under or violate any material Requirement of Law applicable thereto, (iii) contravene, conflict or violate any applicable order, writ, judgment, injunction, decree,
determination or award of any Governmental Authority by which Borrower or such Subsidiary, or any of their property or assets may be bound or affected, (iv) require any action by, filing, registration, or qualification with, or Governmental
Approval from, any Governmental Authority (except such Governmental Approvals which have already been obtained and are in full force and effect) or are being obtained pursuant to Section 6.1(b), or (v) constitute an event of default under
any material agreement by 

  
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which Borrower or any of such Subsidiaries, or their respective properties, is bound. Neither Borrower nor any of its Subsidiaries is in default under any agreement to which it is a party or by
which it or any of its assets is bound in which such default could reasonably be expected to have a Material Adverse Change. 

5.2        Collateral. 

(a)        Borrower and each its Subsidiaries have good title to, have rights in, and
the power to transfer each item of the Collateral upon which it purports to grant a Lien under the Loan Documents, free and clear of any and all Liens except Permitted Liens, and neither Borrower nor any of its Subsidiaries have any Deposit
Accounts, Securities Accounts, Commodity Accounts or other investment accounts other than the Collateral Accounts or the other investment accounts, if any, described in the Perfection Certificates delivered to Collateral Agent in connection herewith
with respect of which Borrower or such Subsidiary has given Collateral Agent notice and taken such actions as are necessary to give Collateral Agent a perfected security interest therein. The Accounts are bona fide, existing obligations of the
Account Debtors. 
 (b)        On the Effective Date, and except as disclosed on
the Perfection Certificate (i) the Collateral is not in the possession of any third party bailee (such as a warehouse), and (ii) no such third party bailee possesses components of the Collateral in excess of One Hundred Thousand Dollars
($100,000.00). None of the components of the Collateral shall be maintained at locations other than as disclosed in the Perfection Certificates on the Effective Date or as permitted pursuant to Section 6.11 (other than movable items of personal
property including laptop computers and telephonic devices used and moved in the ordinary course of business, having an aggregate book value not exceeding One Hundred Thousand Dollars ($100,000.00)). 

(c)        All Inventory is in all material respects of good and marketable quality,
free from material defects. 
 (d)        Borrower and each of its Subsidiaries is
the sole owner of the Intellectual Property each respectively purports to own, free and clear of all Liens other than Permitted Liens. Except as noted on the Perfection Certificates, neither Borrower nor any of its Subsidiaries is a party to, nor is
bound by, any material license or other material agreement with respect to which Borrower or such Subsidiary is the licensee that (i) prohibits or otherwise restricts Borrower or its Subsidiaries from granting a security interest in
Borrower’s or such Subsidiaries’ interest in such material license or material agreement or any other property, or (ii) for which a default under or termination of could interfere with Collateral Agent’s or any Lender’s
right to sell any Collateral. Borrower shall provide written notice to Collateral Agent and each Lender within ten (10) days of Borrower or any of its Subsidiaries entering into or becoming bound by any license or agreement with respect to
which Borrower or any Subsidiary is the licensee (other than over-the-counter software that is commercially available to the public). 

5.3        Litigation.  Except as disclosed (i) on the
Perfection Certificates, or (ii) in accordance with Section 6.9 hereof, there are no actions, suits, investigations, or proceedings pending or, to the knowledge of the Responsible Officers, threatened in writing by or against Borrower or
any of its Subsidiaries involving more than Two Hundred Fifty Thousand Dollars ($250,000.00). 

5.4        No Material Deterioration in Financial Condition; Financial
Statements.  All consolidated financial statements for Borrower and its Subsidiaries, delivered to Collateral Agent fairly present, in conformity with GAAP, in all material respects the consolidated financial condition of Borrower and
its Subsidiaries, and the consolidated results of operations of Borrower and its Subsidiaries. There has not been any material deterioration in the consolidated financial condition of Borrower and its Subsidiaries since the date of the most recent
financial statements submitted to any Lender. 

5.5        Solvency.  Borrower is Solvent, and each of its
Subsidiaries, on a consolidated basis, is Solvent. 

5.6        Regulatory Compliance.  Neither Borrower nor any of
its Subsidiaries is an “investment company” or a company “controlled” by an “investment company” under the Investment Company Act of 1940, as amended. Neither Borrower nor any of its Subsidiaries is engaged as one of
its important activities in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of Governors). Borrower and 

  
 8 








 
each of its Subsidiaries has complied in all material respects with the Federal Fair Labor Standards Act. Neither Borrower nor any of its Subsidiaries is a “holding company” or an
“affiliate” of a “holding company” or a “subsidiary company” of a “holding company” as each term is defined and used in the Public Utility Holding Company Act of 2005. Neither Borrower nor any of its
Subsidiaries has violated any laws, ordinances or rules, the violation of which could reasonably be expected to have a Material Adverse Change. Neither Borrower’s nor any of its Subsidiaries’ properties or assets has been used by Borrower
or such Subsidiary or, to Borrower’s knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than in material compliance with applicable laws. Borrower and each of its
Subsidiaries has obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all Governmental Authorities that are necessary to continue their respective businesses as currently conducted.

 None of Borrower, any of its Subsidiaries, or any of Borrower’s or its Subsidiaries’ Affiliates or any of their
respective agents acting or benefiting in any capacity in connection with the transactions contemplated by this Agreement is (i) in violation of any Anti-Terrorism Law, (ii) engaging in or conspiring
to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law, or (iii) is a Blocked
Person. None of Borrower, any of its Subsidiaries, or to the knowledge of Borrower and any of their Affiliates or agents, acting or benefiting in any capacity in connection with the transactions contemplated by this Agreement, (x) conducts any
business or engages in making or receiving any contribution of funds, goods or services to or for the benefit of any Blocked Person, or (y) deals in, or otherwise engages in any transaction relating to, any property or interest in property
blocked pursuant to Executive Order No. 13224, any similar executive order or other Anti-Terrorism Law. 

5.7        Investments.  Neither Borrower nor any of its
Subsidiaries owns any stock, shares, partnership interests or other equity securities except for Permitted Investments. 

5.8        Tax Returns and Payments; Pension
Contributions.  Borrower and each of its Subsidiaries has timely filed, or timely filed for extensions, all required tax returns and reports, and Borrower and each of its Subsidiaries, has timely paid all foreign, federal, state, and
local taxes, assessments, deposits and contributions owed by Borrower and such Subsidiaries, in all jurisdictions in which Borrower or any such Subsidiary is subject to taxes, including the United States, unless such taxes are being contested in
accordance with the following sentence. Borrower and each of its Subsidiaries, may defer payment of any contested taxes, provided that Borrower or such Subsidiary, (a) in good faith contests its obligation to pay the taxes by appropriate
proceedings promptly and diligently instituted and conducted, (b) notifies Collateral Agent in writing of the commencement of, and any material development in, the proceedings, and (c) posts bonds or takes any other steps required to
prevent the Governmental Authority levying such contested taxes from obtaining a Lien upon any of the Collateral that is other than a “Permitted Lien.” Neither Borrower nor any of its Subsidiaries is aware of any claims or
adjustments proposed for any of Borrower’s or such Subsidiaries’, prior tax years which could result in additional taxes becoming due and payable by Borrower or its Subsidiaries. Borrower and each of its Subsidiaries have paid all amounts
necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms, and neither Borrower nor any of its Subsidiaries have, withdrawn from participation in, and have not permitted partial or complete
termination of, or permitted the occurrence of any other event with respect to, any such plan which could reasonably be expected to result in any liability of Borrower or its Subsidiaries, including any liability to the Pension Benefit Guaranty
Corporation or its successors or any other Governmental Authority. 

5.9        Use of Proceeds.  Borrower shall use the proceeds
of the Credit Extensions solely as working capital and to fund its general business requirements in accordance with the provisions of this Agreement, and not for personal, family, household or agricultural purposes. 

5.10        Shares.  Borrower has full power and authority to
create a first lien on the Shares and no disability or contractual obligation exists that would prohibit Borrower from pledging the Shares pursuant to this Agreement. To Borrower’s knowledge, there are no subscriptions, warrants, rights of
first refusal or other restrictions on transfer relative to, or options exercisable with respect to the Shares. The Shares have been and will be duly authorized and validly issued, and are fully paid and
non-assessable. To Borrower’s knowledge, the Shares are not the subject of any present or threatened suit, action, arbitration, administrative or other proceeding, and Borrower knows of no reasonable
grounds for the institution of any such proceedings. 

  
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 5.11        Full
Disclosure.  No written representation, warranty or other statement of Borrower or any of its Subsidiaries in any certificate or written statement given to Collateral Agent or any Lender, as of the date such representation, warranty,
or other statement was made, taken together with all such written certificates and written statements given to Collateral Agent or any Lender, contains any untrue statement of a material fact or omits to state a material fact necessary to make the
statements contained in the certificates or statements not misleading (it being recognized that the projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are not viewed as facts and that actual results
during the period or periods covered by such projections and forecasts may differ from the projected or forecasted results). 

5.12        Definition of “Knowledge.”  For purposes
of the Loan Documents, whenever a representation or warranty is made to Borrower’s knowledge or awareness, to the “best of” Borrower’s knowledge, or with a similar qualification, knowledge or awareness means the actual knowledge,
after reasonable investigation, of the Responsible Officers. 

6.            AFFIRMATIVE COVENANTS 

 Borrower shall, and shall cause each of its Subsidiaries to, do all of the following: 

6.1        Government Compliance. 

(a)        Maintain its and all its Subsidiaries’ legal existence and good
standing in their respective jurisdictions of organization and maintain qualification in each jurisdiction in which the failure to so qualify could reasonably be expected to have a Material Adverse Change. Comply with all laws, ordinances and
regulations to which Borrower or any of its Subsidiaries is subject, the noncompliance with which could reasonably be expected to have a Material Adverse Change. 

(b)        Obtain and keep in full force and effect, all of the material Governmental
Approvals necessary for the performance by Borrower and its Subsidiaries of their respective businesses and obligations under the Loan Documents and the grant of a security interest to Collateral Agent for the ratable benefit of the Lenders, in all
of the Collateral. Borrower shall promptly provide copies to Collateral Agent of any material Governmental Approvals obtained by Borrower or any of its Subsidiaries. 

6.2        Financial Statements, Reports, Certificates. 

(a)         Deliver to each Lender: 

(i)        as soon as available, but no later than thirty
(30) days after the last day of each quarter, a company prepared consolidated and consolidating balance sheet, income statement and cash flow statement covering the consolidated operations of Borrower and its Subsidiaries for such month
certified by a Responsible Officer and in a form reasonably acceptable to Collateral Agent; 

(ii)        as soon as available, but no later than one hundred
eighty (180) days after the last day of Borrower’s fiscal year or within five (5) days of filing with the SEC, audited consolidated financial statements prepared under GAAP, consistently applied, together with an unqualified opinion
on the financial statements from an independent certified public accounting firm acceptable to Collateral Agent in its reasonable discretion; 

(iii)        as soon as available (but in no event more than seven
(7) days) after approval thereof by Borrower’s Board of Directors, but no later than sixty (60) days after the last day of each of Borrower’s fiscal years, Borrower’s annual financial projections for the entire current fiscal year as
approved by Borrower’s Board of Directors, which such annual financial projections shall be set forth in a month-by-month format (such annual financial projections as originally delivered to Collateral Agent and the Lenders on or prior to the
Effective Date are referred to herein as the “Annual Projections”; provided that, any revisions of the Annual Projections approved by Borrower’s Board of Directors shall be delivered to Collateral Agent and the Lenders no later
than seven (7) days after such approval); 

  
 10 








 (iv)        within five (5) days of
delivery, copies of all statements, reports and notices made available to Borrower’s security holders or holders of Subordinated Debt; 

(v)        within five (5) days of filing, all reports on Form 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission, 

(vi)        prompt notice of any amendments of or other changes to the Operating
Documents of Borrower or any of its Subsidiaries, together with any copies reflecting such amendments or changes with respect thereto; 

(vii)        prompt notice of any event that could reasonably be expected to
materially and adversely affect the value of the Intellectual Property; 

(viii)        as soon as available, but no later than thirty (30) days after the
last day of each month, copies of the month-end account statements for each Collateral Account maintained by Borrower or its Subsidiaries (other than Sorrento HK), which statements may be provided to
Collateral Agent and each Lender by Borrower or directly from the applicable institution(s); and 

(ix)        other information as reasonably requested by Collateral Agent or any
Lender. 
 Notwithstanding the foregoing, documents required to be delivered pursuant to the terms hereof (to the extent any such documents
are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date on which Borrower posts such documents, or provides a link thereto, on Borrower’s
website on the internet at Borrower’s website address. 

(b)        Concurrently with the delivery of the financial statements specified in
Section 6.2(a)(i) above but no later than thirty (30) days after the last day of each quarter, deliver to each Lender, a duly completed Compliance Certificate signed by a Responsible Officer. 

(c)        Keep proper books of record and account in accordance with GAAP in all
material respects, in which full, true and correct entries shall be made of all dealings and transactions in relation to its business and activities. Borrower shall, and shall cause each of its Subsidiaries to, allow, at the sole reasonable cost of
Borrower, Collateral Agent or any Lender, during regular business hours upon reasonable prior notice (provided that no notice shall be required when an Event of Default has occurred and is continuing), to visit and inspect any of its properties, to
examine and make abstracts or copies from any of its books and records, and to conduct a collateral audit and analysis of its operations and the Collateral. Such audits shall be conducted no more often than once every year unless (and more
frequently if) an Event of Default has occurred and is continuing. 

6.3        Inventory; Returns.  Keep all Inventory in good and
marketable condition, free from material defects. Returns and allowances between Borrower, or any of its Subsidiaries, and their respective Account Debtors shall follow Borrower’s, or such Subsidiary’s, customary practices as they exist at
the Effective Date. Borrower must promptly notify Collateral Agent and the Lenders of all returns, recoveries, disputes and claims that involve more than One Hundred Thousand Dollars ($100,000.00) individually or in the aggregate in any calendar
year. 
 6.4        Taxes; Pensions.  Timely file and require each
of its Subsidiaries to timely file, all required tax returns and reports and timely pay, and require each of its Subsidiaries to timely file, all foreign, federal, state, and local taxes, assessments, deposits and contributions owed by Borrower or
its Subsidiaries, except for deferred payment of any taxes contested pursuant to the terms of Section 5.8 hereof, and shall deliver to Lenders, on demand, appropriate certificates attesting to such payments, and pay all amounts necessary to
fund all present pension, profit sharing and deferred compensation plans in accordance with the terms of such plans. 

6.5        Insurance.  Keep Borrower’s and its
Subsidiaries’ business and the Collateral insured for risks and in amounts standard for companies in Borrower’s and its Subsidiaries’ industry and location and as Collateral Agent may reasonably request. Insurance policies shall be in
a form, with companies, and in amounts that are reasonably satisfactory to Collateral Agent and Lenders. All property policies shall have a lender’s loss payable 

  
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endorsement showing Collateral Agent as lender loss payee and waive subrogation against Collateral Agent, and all liability policies shall show, or have endorsements showing, Collateral Agent, as
additional insured. The Collateral Agent shall be named as lender loss payee and/or additional insured with respect to any such insurance providing coverage in respect of any Collateral, and each provider of any such insurance shall agree, by
endorsement upon the policy or policies issued by it or by independent instruments furnished to the Collateral Agent, that it will give the Collateral Agent twenty (20) days prior written notice before any such policy or policies shall be
materially altered or canceled, and ten (10) days prior written notice for non-payment of premium. At Collateral Agent’s request, Borrower shall deliver certified copies of policies and evidence of all premium payments. Proceeds payable
under any policy shall, at Collateral Agent’s option, be payable to Collateral Agent, for the ratable benefit of the Lenders, on account of the Obligations. Notwithstanding the foregoing, (a) so long as no Event of Default has occurred and
is continuing, Borrower shall have the option of applying the proceeds of any casualty policy up to Two Hundred Fifty Thousand Dollars ($250,000.00) with respect to any loss, but not exceeding Five Hundred Thousand Dollars ($500,000.00), in the
aggregate for all losses under all casualty policies in any one year, toward the replacement or repair of destroyed or damaged property; provided that any such replaced or repaired property (i) shall be of equal or like value as the replaced or
repaired Collateral and (ii) shall be deemed Collateral in which Collateral Agent has been granted a first priority security interest, and (b) after the occurrence and during the continuance of an Event of Default, all proceeds payable
under such casualty policy shall, at the option of Collateral Agent, be payable to Collateral Agent, for the ratable benefit of the Lenders, on account of the Obligations. If Borrower or any of its Subsidiaries fails to obtain insurance as required
under this Section 6.5 or to pay any amount or furnish any required proof of payment to third persons, Collateral Agent and/or any Lender may make, at Borrower’s expense, all or part of such payment or obtain such insurance policies
required in this Section 6.5, and take any action under the policies Collateral Agent or such Lender deems prudent. 

6.6        Operating Accounts. 

(a)        Maintain all of Borrower’s and its domestic Subsidiaries’
primary Collateral Accounts with Bank or its Affiliates in accounts which are subject to a Control Agreement in favor of Collateral Agent, which accounts shall represent at least fifty-one percent (51.00%) of the dollar value of Borrower’s
and such Subsidiaries’ accounts at all financial institutions. 

(b)        Borrower shall provide Collateral Agent five (5) days’ prior
written notice before Borrower or any of its Subsidiaries establishes any Collateral Account at or with any Person other than Bank or its Affiliates. In addition, for each Collateral Account that Borrower or any of its Subsidiaries, at any time
maintains, Borrower or such Subsidiary shall cause the applicable bank or financial institution at or with which such Collateral Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such
Collateral Account to perfect Collateral Agent’s Lien in such Collateral Account in accordance with the terms hereunder prior to the establishment of such Collateral Account, which Control Agreement may not be terminated without prior written
consent of Collateral Agent. The provisions of the previous sentence shall not apply to (i) deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of Borrower’s, or
any of its Subsidiaries’, employees and identified to Collateral Agent by Borrower as such in the Perfection Certificates; and (ii) foreign account maintained by Borrower and its Subsidiaries (which accounts shall not, in the aggregate,
exceed One Hundred Thousand Dollars ($100,000.00) at any time). 

(c)        Neither Borrower nor any of its Subsidiaries shall maintain any Collateral
Accounts except Collateral Accounts maintained in accordance with Sections 6.6(a) and (b). 

6.7        Protection of Intellectual Property Rights.  Borrower and
each of its Subsidiaries shall: (a) use commercially reasonable efforts to protect, defend and maintain the validity and enforceability of its Intellectual Property that is material to Borrower’s business; (b) promptly advise
Collateral Agent in writing of material infringement by a third party of its Intellectual Property; and (c) not allow any Intellectual Property material to Borrower’s business to be abandoned, forfeited or dedicated to the public without
Collateral Agent’s prior written consent. 
 6.8        Litigation
Cooperation.  Commencing on the Effective Date and continuing through the termination of this Agreement, make available to Collateral Agent and the Lenders, without expense to Collateral Agent or the Lenders, Borrower and each of
Borrower’s officers, employees and agents and Borrower’s Books, to 

  
 12 








 
the extent that Collateral Agent or any Lender may reasonably deem them necessary to prosecute or defend any third-party suit or proceeding instituted by
or against Collateral Agent or any Lender with respect to any Collateral or relating to Borrower. 

6.9        Notices of Litigation and Default.  Borrower will give
prompt written notice to Collateral Agent and the Lenders of any litigation or governmental proceedings pending or threatened (in writing) against Borrower or any of its Subsidiaries, which could reasonably be expected to result in damages or costs
to Borrower or any of its Subsidiaries of Two Hundred Fifty Thousand Dollars ($250,000.00) or more or which could reasonably be expected to have a Material Adverse Change. Without limiting or contradicting any other more specific provision of this
Agreement, promptly (and in any event within three (3) Business Days) upon Borrower becoming aware of the existence of any Event of Default or event which, with the giving of notice or passage of time, or both, would constitute an Event of
Default, Borrower shall give written notice to Collateral Agent and the Lenders of such occurrence, which such notice shall include a reasonably detailed description of such Event of Default or event which, with the giving of notice or passage of
time, or both, would constitute an Event of Default. 
 6.10        Intentionally
Omitted. 
 6.11        Landlord Waivers; Bailee Waivers.  In
the event that Borrower or any of its Subsidiaries, after the Effective Date, intends to add any new offices or business locations, including warehouses, or otherwise store any portion of the Collateral with, or deliver any portion of the Collateral
to, a bailee, in each case pursuant to Section 7.2, then Borrower or such Subsidiary will provide written notice thereof to Collateral Agent and, in the event that the Collateral at any new location is valued in excess of Two Hundred Thousand
($200,000.00) in the aggregate, such bailee or landlord, as applicable, must execute and deliver a bailee waiver or landlord waiver, as applicable, in form and substance reasonably satisfactory to Collateral Agent prior to the addition of any new
offices or business locations, or any such storage with or delivery to any such bailee, as the case may be. 

6.12        Creation/Acquisition of Subsidiaries.  In the event
Borrower, or any of its Subsidiaries creates or acquires any Subsidiary, Borrower shall provide prior written notice to Collateral Agent and each Lender of the creation or acquisition of such new Subsidiary and take all such action as may be
reasonably required by Collateral Agent or any Lender to cause each such Subsidiary to become a co-Borrower hereunder or to guarantee the Obligations of Borrower under the Loan Documents and, in each case,
grant a continuing pledge and security interest in and to the assets of such Subsidiary (substantially as described on Exhibit A hereto); and Borrower (or its Subsidiary, as applicable) shall grant and pledge to Collateral Agent, for the
ratable benefit of the Lenders, a perfected security interest in the Shares. The parties acknowledge and agree that, as of the Effective Date, Sorrento HK is neither a co-Borrower nor a Guarantor under this Agreement. 

6.13        Further Assurances. 

(a)        Execute any further instruments and take further action as Collateral
Agent or any Lender reasonably requests to perfect or continue Collateral Agent’s Lien in the Collateral or to effect the purposes of this Agreement. 

(b)        Deliver to Collateral Agent and Lenders, within five (5) days after
the same are sent or received, copies of all material correspondence, reports, documents and other filings with any Governmental Authority that could reasonably be expected to have a material adverse effect on any of the Governmental Approvals
material to Borrower’s business or otherwise could reasonably be expected to have a Material Adverse Change. 
  

	7.             NEGATIVE COVENANTS	 



Borrower shall not, and shall not permit any of its Subsidiaries to, do any of the following without the prior written consent
of the Required Lenders: 
 7.1        Dispositions.  Convey, sell,
lease, transfer, assign, or otherwise dispose of (collectively, “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, except for Transfers (a) of Inventory in the
ordinary course of business; (b) of worn out or obsolete Equipment; (c) in 

  
 13 








 
connection with Permitted Liens, Permitted Investments and Permitted Licenses; and (d) in addition to those specifically enumerated above, expenditures reflected in the Annual
Projections, as such Annual Projections may be amended from time to time pursuant to the terms of Section 6.2 hereof. 

7.2        Changes in Business, Management, Ownership, or Business
Locations.  (a) Engage in or permit any of its Subsidiaries to engage in any business other than the businesses engaged in by Borrower as of the Effective Date or reasonably related thereto; (b) liquidate or dissolve; or
(c) (i) any Key Person shall cease to be actively engaged in the management of Borrower unless written notice thereof is provided to Collateral Agent within seven (7) Business Days of such change, or (ii) enter into any
transaction or series of related transactions in which the stockholders of Borrower who were not stockholders immediately prior to the first such transaction own more than forty nine percent (49%) of the voting stock of Borrower immediately
after giving effect to such transaction or related series of such transactions (other than by the sale of Borrower’s equity securities in a public offering, a private placement of public equity or to venture capital investors so long as
Borrower identifies to Collateral Agent the venture capital investors prior to the closing of the transaction). Borrower shall not, without at least fifteen (15) days’ prior written notice to Collateral Agent: (A) add any new offices
or business locations, including warehouses (unless such new offices or business locations contain less than One Hundred Thousand Dollars ($100,000.00) in assets or property of Borrower or any of its Subsidiaries); (B) change its jurisdiction
of organization, (C) change its organizational structure or type, (D) change its legal name, or (E) change any organizational number (if any) assigned by its jurisdiction of organization. 

7.3        Mergers or Acquisitions.  Merge or consolidate, or permit
any of its Subsidiaries to merge or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock, shares or property of another Person. A Subsidiary may merge or
consolidate into another Subsidiary (provided such surviving Subsidiary is a “co-Borrower” hereunder or has provided a secured Guaranty of Borrower’s Obligations hereunder) or with (or into)
Borrower provided Borrower is the surviving legal entity, and as long as no Event of Default is occurring prior thereto or arises as a result therefrom. Without limiting the foregoing, Borrower shall not, without Collateral Agent’s prior
written consent, enter into any binding contractual arrangement with any Person to attempt to facilitate a merger or acquisition of Borrower, unless (i) no Event of Default exists when such agreement is entered into by Borrower, (ii) such
agreement does not give such Person the right to claim any fees, payments or damages from Borrower in excess of Two Hundred Fifty Thousand Dollars ($250,000.00), and (iii) Borrower notifies Collateral Agent in advance of entering into such an
agreement. 
 7.4        Indebtedness.  Create, incur, assume, or
be liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness. 

7.5        Encumbrance.  Create, incur, allow, or suffer any Lien on
any of its property, or assign or convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, or permit any Collateral not to be subject to the first priority
security interest granted herein (except for Permitted Liens that are permitted by the terms of this Agreement to have priority over Collateral Agent’s Lien), or enter into any agreement, document, instrument or other arrangement (except with
or in favor of Collateral Agent, for the ratable benefit of the Lenders) with any Person which directly or indirectly prohibits or has the effect of prohibiting Borrower, or any of its Subsidiaries, from assigning, mortgaging, pledging, granting a
security interest in or upon, or encumbering any of Borrower’s or such Subsidiary’s Intellectual Property, except as is otherwise permitted in Section 7.1 hereof and the definition of “Permitted Liens” herein. 

7.6        Maintenance of Collateral Accounts.  Maintain any
Collateral Account except pursuant to the terms of Section 6.6 hereof. 

7.7        Distributions; Investments.  (a) Pay any dividends
(other than dividends payable solely in capital stock) or make any distribution or payment in respect of or redeem, retire or purchase any capital stock (other than (i) repurchases pursuant to the terms of employee stock purchase plans,
employee restricted stock agreements, stockholder rights plans, director or consultant stock option plans, or similar plans, provided such repurchases do not exceed One Hundred Thousand Dollars ($100,000.00) in the aggregate per fiscal year); and
(ii) cash payments for repurchases of common stock of Parent for cash in lieu of shares for certain sellers of IGDRASOL, Inc. with respect to post-closing milestones relating to the acquisition of IGDRASOL, Inc., not to exceed 20,000 common
stock 

  
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shares of Parent; or (b) directly or indirectly make any Investment other than Permitted Investments, or permit any of its Subsidiaries to do so. 

7.8        Transactions with Affiliates.  Directly or indirectly
enter into or permit to exist any material transaction with any Affiliate of Borrower or any of its Subsidiaries, except for (a) transactions that are in the ordinary course of Borrower’s or such Subsidiary’s business, upon fair and
reasonable terms that are no less favorable to Borrower or such Subsidiary than would be obtained in an arm’s length transaction with a non-affiliated Person, and (b) Subordinated Debt or equity
investments by Borrower’s investors in Borrower or its Subsidiaries. 

7.9        Subordinated Debt.  (a) Make or permit any payment on
any Subordinated Debt, except under the terms of the subordination, intercreditor, or other similar agreement to which such Subordinated Debt is subject, or (b) amend any provision in any document relating to the Subordinated Debt which would
increase the amount thereof or adversely affect the subordination thereof to Obligations owed to the Lenders. 

7.10        Compliance.  Become an “investment company” or
a company controlled by an “investment company”, under the Investment Company Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of the
Board of Governors of the Federal Reserve System), or use the proceeds of any Credit Extension for that purpose; fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to
occur; fail to comply with the Federal Fair Labor Standards Act or violate any other law or regulation, if the violation could reasonably be expected to have a Material Adverse Change, or permit any of its Subsidiaries to do so; withdraw or permit
any Subsidiary to withdraw from participation in, permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation plan which could reasonably be
expected to result in any liability of Borrower or any of its Subsidiaries, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other Governmental Authority. 

7.11        Compliance with Anti-Terrorism
Laws.  Collateral Agent hereby notifies Borrower and each of its Subsidiaries that pursuant to the requirements of Anti-Terrorism Laws, and Collateral Agent’s policies and practices,
Collateral Agent is required to obtain, verify and record certain information and documentation that identifies Borrower and each of its Subsidiaries and their principals, which information includes the name and address of Borrower and each of its
Subsidiaries and their principals and such other information that will allow Collateral Agent to identify such party in accordance with Anti-Terrorism Laws. Neither Borrower nor any of its Subsidiaries shall,
nor shall Borrower or any of its Subsidiaries permit any Affiliate to, directly or indirectly, knowingly enter into any documents, instruments, agreements or contracts with any Person listed on the OFAC Lists. Borrower and each of its Subsidiaries
shall immediately notify Collateral Agent if Borrower or such Subsidiary has knowledge that Borrower, or any Subsidiary or Affiliate of Borrower, is listed on the OFAC Lists or (a) is convicted on, (b) pleads nolo contendere to,
(c) is indicted on, or (d) is arraigned and held over on charges involving money laundering or predicate crimes to money laundering. Neither Borrower nor any of its Subsidiaries shall, nor shall Borrower or any of its Subsidiaries, permit
any Affiliate to, directly or indirectly, (i) conduct any business or engage in any transaction or dealing with any Blocked Person, including, without limitation, the making or receiving of any contribution of funds, goods or services to or for
the benefit of any Blocked Person, (ii) deal in, or otherwise engage in any transaction relating to, any property or interests in property blocked pursuant to Executive Order No. 13224 or any similar executive order or other Anti-Terrorism Law, or (iii) engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in
Executive Order No. 13224 or other Anti-Terrorism Law. 

7.12        Sorrento HK Assets.  Permit the aggregate value of assets
held by Sorrento HK to exceed One Hundred Thousand Dollars ($100,000.00) at any time. 
  

	8.             EVENTS OF DEFAULT	 



Any one of the following shall constitute an event of default (an “Event of Default”) under this Agreement:


  
 15 








 8.1        Payment
Default.  Borrower fails to (a) make any payment of principal or interest on any Credit Extension on its due date, or (b) pay any other Obligations within three (3) Business Days after such Obligations are due and
payable (which three (3) Business Day grace period shall not apply to payments due on the Maturity Date or the date of acceleration pursuant to Section 9.1 (a) hereof). During the cure period, the failure to cure the payment default
is not an Event of Default (but no Credit Extension will be made during the cure period); 

8.2        Covenant Default. 

(a)        Borrower or any of its Subsidiaries fails or neglects to perform any
obligation in Sections 6.2 (Financial Statements, Reports, Certificates), 6.4 (Taxes), 6.5 (Insurance), 6.6 (Operating Accounts), 6.7 (Protection of Intellectual Property Rights), 6.9 (Notice of Litigation and Default), 6.12 (Creation/Acquisition of
Subsidiaries) or 6.13 (Further Assurances) or Borrower violates any covenant in Section 7; or 

(b)        Borrower, or any of its Subsidiaries, fails or neglects to perform, keep,
or observe any other term, provision, condition, covenant or agreement contained in this Agreement or any Loan Documents, and as to any default (other than those specified in this Section 8) under such other term, provision, condition, covenant
or agreement that can be cured, has failed to cure the default within ten (10) days after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day period or cannot after diligent
attempts by Borrower be cured within such ten (10) day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional period (which shall not in any case exceed thirty (30) days) to attempt
to cure such default, and within such reasonable time period the failure to cure the default shall not be deemed an Event of Default (but no Credit Extensions shall be made during such cure period). Grace periods provided under this
Section shall not apply, among other things, to financial covenants, if any, or any other covenants set forth in subsection (a) above; 

8.3        Material Adverse Change.  A Material Adverse Change
occurs; 
 8.4        Attachment; Levy; Restraint on Business. 

(a)        (i) The service of process seeking to attach, by trustee or similar
process, any funds of Borrower or any of its Subsidiaries or of any entity under control of Borrower or its Subsidiaries on deposit with any Lender or any Lender’s Affiliate or any bank or other institution at which Borrower or any of its
Subsidiaries maintains a Collateral Account, or (ii) a notice of lien, levy, or assessment is filed against Borrower or any of its Subsidiaries or their respective assets by any government agency, and the same under subclauses (i) and
(ii) hereof are not, within ten (10) days after the occurrence thereof, discharged or stayed (whether through the posting of a bond or otherwise); provided, however, no Credit Extensions shall be made during any ten (10) day cure
period; and 
 (b)        (i) any material portion of Borrower’s or any
of its Subsidiaries’ assets is attached, seized, levied on, or comes into possession of a trustee or receiver, or (ii) any court order enjoins, restrains, or prevents Borrower or any of its Subsidiaries from conducting any part of its
business; 
 8.5        Insolvency.  (a) Borrower or any of
its Subsidiaries is or becomes Insolvent; (b) Borrower or any of its Subsidiaries begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against Borrower or any of its Subsidiaries and not dismissed or stayed within forty-five (45) days (but no Credit Extensions shall be made while Borrower or any Subsidiary is Insolvent and/or until any Insolvency Proceeding is dismissed); 

8.6        Other Agreements.  There is a default in any agreement to
which Borrower or any of its Subsidiaries is a party with a third party or parties resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in excess of Two Hundred
Fifty Thousand Dollars ($250,000.00) or that could reasonably be expected to have a Material Adverse Change; 

8.7        Judgments.  One or more judgments, orders, or decrees for
the payment of money in an amount, individually or in the aggregate, of at least Two Hundred Fifty Thousand Dollars ($250,000.00) (not covered by independent third-party insurance as to which liability has
been accepted by such insurance carrier) shall be rendered against Borrower or any of its Subsidiaries and shall remain unsatisfied, unvacated, or unstayed for a 

  
 16 








 
period of ten (10) days after the entry thereof (provided that no Credit Extensions will be made prior to the satisfaction, vacation, or stay of such judgment, order or decree); 

8.8        Misrepresentations.  Borrower or any of its Subsidiaries
or any Person acting for Borrower or any of its Subsidiaries makes any representation, warranty, or other statement now or later in this Agreement, any Loan Document or in any writing delivered to Collateral Agent and/or Lenders or to induce
Collateral Agent and/or the Lenders to enter this Agreement or any Loan Document, and such representation, warranty, or other statement is incorrect in any material respect when made; 

8.9        Subordinated Debt.  A default or breach occurs
under any agreement between Borrower or any of its Subsidiaries and any creditor of Borrower or any of its Subsidiaries that signed a subordination, intercreditor, or other similar agreement with Collateral Agent or the Lenders, or any creditor that
has signed such an agreement with Collateral Agent or the Lenders breaches any terms of such agreement; 

8.10        Guaranty.  (a) Any Guaranty terminates or ceases for
any reason to be in full force and effect; (b) any Guarantor does not perform any obligation or covenant under any Guaranty; (c) any circumstance described in Sections 8.3, 8.4, 8.5, 8.7, or 8.8 occurs with respect to any Guarantor, or
(d) the death, liquidation, winding up, or termination of existence of any Guarantor; or (e) a Material Adverse Change with respect to any Guarantor; 

8.11        Governmental Approvals.  Any Governmental Approval shall
have been revoked, rescinded, suspended, modified in an adverse manner, or not renewed in the ordinary course for a full term and such revocation, rescission, suspension, modification or non-renewal has
resulted in or could reasonably be expected to result in a Material Adverse Change; or 

8.12        Lien Priority.  Any Lien created hereunder or by any
other Loan Document shall at any time fail to constitute a valid and perfected Lien on any of the Collateral purported to be secured thereby, subject to no prior or equal Lien, other than Permitted Liens which are permitted to have priority in
accordance with the terms of this Agreement. 
  

	9.        RIGHTS AND REMEDIES	 



9.1        Rights and Remedies. 

(a)        Upon the occurrence and during the continuance of an Event of Default,
Collateral Agent may, and at the written direction of Required Lenders shall, without notice or demand, do any or all of the following: (i) deliver notice of the Event of Default to Borrower, (ii) by notice to Borrower declare all
Obligations immediately due and payable (but if an Event of Default described in Section 8.5 occurs all Obligations shall be immediately due and payable without any action by Collateral Agent or the Lenders) or (iii) by notice to Borrower
suspend or terminate the obligations, if any, of the Lenders to advance money or extend credit for Borrower’s benefit under this Agreement or under any other agreement between Borrower and Collateral Agent and/or the Lenders (but if an Event of
Default described in Section 8.5 occurs all obligations, if any, of the Lenders to advance money or extend credit for Borrower’s benefit under this Agreement or under any other agreement between Borrower and Collateral Agent and/or the
Lenders shall be immediately terminated without any action by Collateral Agent or the Lenders). 

(b)        Without limiting the rights of Collateral Agent and the Lenders set forth
in Section 9.1(a) above, upon the occurrence and during the continuance of an Event of Default, Collateral Agent shall have the right, without notice or demand, to do any or all of the following: 

(i)        foreclose upon and/or sell or otherwise liquidate, the Collateral; 

(ii)        apply to the Obligations any (a) balances and deposits of Borrower
that Collateral Agent or any Lender holds or controls, or (b) any amount held or controlled by Collateral Agent or any Lender owing to or for the credit or the account of Borrower; and/or 

  
 17 








 (iii)        commence and prosecute an
Insolvency Proceeding or consent to Borrower commencing any Insolvency Proceeding. 

(c)        Without limiting the rights of Collateral Agent and the Lenders set forth
in Sections 9.1(a) and (b) above, upon the occurrence and during the continuance of an Event of Default, Collateral Agent shall have the right, without notice or demand, to do any or all of the following: 

(i)        settle or adjust disputes and claims directly with Account Debtors for
amounts on terms and in any order that Collateral Agent considers advisable, notify any Person owing Borrower money of Collateral Agent’s security interest in such funds, and verify the amount of such account; 

(ii)        make any payments and do any acts it considers necessary or reasonable to
protect the Collateral and/or its security interest in the Collateral. Borrower shall assemble the Collateral if Collateral Agent requests and make it available in a location as Collateral Agent reasonably designates. Collateral Agent may enter
premises where the Collateral is located, take and maintain possession of any part of the Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred.
Borrower grants Collateral Agent a license to enter and occupy any of its premises, without charge, to exercise any of Collateral Agent’s rights or remedies; 

(iii)        ship, reclaim, recover, store, finish, maintain, repair, prepare for
sale, and/or advertise for sale, the Collateral. Collateral Agent is hereby granted a non-exclusive, royalty-free license or other right to use, without charge,
Borrower’s and each of its Subsidiaries’ labels, patents, copyrights, mask works, rights of use of any name, trade secrets, trade names, trademarks, service marks, and advertising matter, or any similar property as it pertains to the
Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with Collateral Agent’s exercise of its rights under this Section 9.1, Borrower’s and each of its Subsidiaries’ rights
under all licenses and all franchise agreements inure to Collateral Agent, for the benefit of the Lenders; 

(iv)        place a “hold” on any account maintained with Collateral Agent
or the Lenders and/or deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any Control Agreement or similar agreements providing control of any Collateral; 

(v)        demand and receive possession of Borrower’s Books; 

(vi)        appoint a receiver to seize, manage and realize any of the Collateral,
and such receiver shall have any right and authority as any competent court will grant or authorize in accordance with any applicable law, including any power or authority to manage the business of Borrower or any of its Subsidiaries; and 

(vii)        subject to clauses 9.1(a) and (b), exercise all rights and remedies
available to Collateral Agent and each Lender under the Loan Documents or at law or equity, including all remedies provided under the Code (including disposal of the Collateral pursuant to the terms thereof); 

(viii)        for any Letters of Credit, demand that Borrower (i) deposit cash
with Bank in an amount equal to (x) if such Letters of Credit are denominated in Dollars, then one hundred five percent (105%); and (y) if such Letters of Credit are denominated in a Foreign Currency, then one hundred ten percent (110%),
of the Dollar Equivalent of the aggregate face amount of all Letters of Credit remaining undrawn (plus all interest, fees, and costs due or to become due in connection therewith (as estimated by Bank in its good faith business judgment)), to secure
all of the Obligations relating to such Letters of Credit, as collateral security for the repayment of any future drawings under such Letters of Credit, and Borrower shall forthwith deposit and pay such amounts, and (ii) pay in advance all
letter of credit fees scheduled to be paid or payable over the remaining term of any Letters of Credit; and 

(ix)        terminate any FX Contracts. 

  
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 Notwithstanding any provision of this Section 9.1 to the contrary, upon the occurrence of
any Event of Default, Collateral Agent shall have the right to exercise any and all remedies referenced in this Section 9.1 without the written consent of Required Lenders following the occurrence of an Exigent Circumstance. As used in the
immediately preceding sentence, “Exigent Circumstance” means any event or circumstance that, in the reasonable judgment of Collateral Agent, imminently threatens the ability of Collateral Agent to realize upon all or any material
portion of the Collateral, such as, without limitation, fraudulent removal, concealment, or abscondment thereof, destruction or material waste thereof, or failure of Borrower or any of its Subsidiaries after reasonable demand to maintain or
reinstate adequate casualty insurance coverage, or which, in the judgment of Collateral Agent, could reasonably be expected to result in a material diminution in value of the Collateral. 

9.2        Power of Attorney.  Borrower hereby irrevocably appoints
Collateral Agent as its lawful attorney-in-fact, exercisable upon the occurrence and during the continuance of an Event of Default, to: (a) endorse Borrower’s
or any of its Subsidiaries’ name on any checks or other forms of payment or security; (b) sign Borrower’s or any of its Subsidiaries’ name on any invoice or bill of lading for any Account or drafts against Account Debtors;
(c) settle and adjust disputes and claims about the Accounts directly with Account Debtors, for amounts and on terms Collateral Agent determines reasonable; (d) make, settle, and adjust all claims under Borrower’s insurance policies;
(e) pay, contest or settle any Lien, charge, encumbrance, security interest, and adverse claim in or to the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; and (f) transfer the
Collateral into the name of Collateral Agent or a third party as the Code or any applicable law permits. Borrower hereby appoints Collateral Agent as its lawful
attorney-in-fact to sign Borrower’s or any of its Subsidiaries’ name on any documents necessary to perfect or continue the perfection of Collateral
Agent’s security interest in the Collateral regardless of whether an Event of Default has occurred until all Obligations (other than inchoate indemnity obligations) have been satisfied in full and Collateral Agent and the Lenders are under no
further obligation to make Credit Extensions hereunder. Collateral Agent’s foregoing appointment as Borrower’s or any of its Subsidiaries’ attorney in fact, and all of Collateral Agent’s rights and powers, coupled with an
interest, are irrevocable until all Obligations (other than inchoate indemnity obligations) have been fully repaid and performed and Collateral Agent’s and the Lenders’ obligation to provide Credit Extensions terminates. 

9.3        Protective Payments.  If Borrower or any of its
Subsidiaries fail to obtain the insurance called for by Section 6.5 or fails to pay any premium thereon or fails to pay any other amount which Borrower or any of its Subsidiaries is obligated to pay under this Agreement or any other Loan
Document, Collateral Agent may obtain such insurance or make such payment, and all amounts so paid by Collateral Agent are Lenders’ Expenses and immediately due and payable, bearing interest at the Default Rate, and secured by the Collateral.
Collateral Agent will make reasonable efforts to provide Borrower with notice of Collateral Agent obtaining such insurance or making such payment at the time it is obtained or paid or within a reasonable time thereafter. No such payments by
Collateral Agent are deemed an agreement to make similar payments in the future or Collateral Agent’s waiver of any Event of Default. 

9.4        Application of Payments and Proceeds.  Notwithstanding
anything to the contrary contained in this Agreement, upon the occurrence and during the continuance of an Event of Default, (a) Borrower irrevocably waives the right to direct the application of any and all payments at any time or times
thereafter received by Collateral Agent from or on behalf of Borrower or any of its Subsidiaries of all or any part of the Obligations, and, as between Borrower on the one hand and Collateral Agent and Lenders on the other, Collateral Agent shall
have the continuing and exclusive right to apply and to reapply any and all payments received against the Obligations in such manner as Collateral Agent may deem advisable notwithstanding any previous application by Collateral Agent, and
(b) the proceeds of any sale of, or other realization upon all or any part of the Collateral shall be applied: first, to the Lenders’ Expenses; second, to accrued and unpaid interest on the Obligations (including any interest which, but
for the provisions of the United States Bankruptcy Code, would have accrued on such amounts); third, to the principal amount of the Obligations outstanding; and fourth, to any other indebtedness or obligations of Borrower owing to Collateral Agent
or any Lender under the Loan Documents. Any balance remaining shall be delivered to Borrower or to whoever may be lawfully entitled to receive such balance or as a court of competent jurisdiction may direct. In carrying out the foregoing,
(x) amounts received shall be applied in the numerical order provided until exhausted prior to the application to the next succeeding category, and (y) each of the Persons entitled to receive a payment in any particular category shall
receive an amount equal to its pro rata share of amounts available to be applied pursuant thereto for such category. Any reference in this Agreement to an allocation between or sharing by the 

  
 19 








 
Lenders of any right, interest or obligation “ratably,” “proportionally” or in similar terms shall refer to Pro Rata Share unless expressly provided otherwise. Collateral
Agent, or if applicable, each Lender, shall promptly remit to the other Lenders such sums as may be necessary to ensure the ratable repayment of each Lender’s portion of any Term Loan and the ratable distribution of interest, fees and
reimbursements paid or made by Borrower. Notwithstanding the foregoing, a Lender receiving a scheduled payment shall not be responsible for determining whether the other Lenders also received their scheduled payment on such date; provided, however,
if it is later determined that a Lender received more than its ratable share of scheduled payments made on any date or dates, then such Lender shall remit to Collateral Agent or other Lenders such sums as may be necessary to ensure the ratable
payment of such scheduled payments, as instructed by Collateral Agent. If any payment or distribution of any kind or character, whether in cash, properties or securities, shall be received by a Lender in excess of its ratable share, then the portion
of such payment or distribution in excess of such Lender’s ratable share shall be received by such Lender in trust for and shall be promptly paid over to the other Lender for application to the payments of amounts due on the other Lenders’
claims. To the extent any payment for the account of Borrower is required to be returned as a voidable transfer or otherwise, the Lenders shall contribute to one another as is necessary to ensure that such return of payment is on a pro rata basis.
If any Lender shall obtain possession of any Collateral, it shall hold such Collateral for itself and as agent and bailee for Collateral Agent and other Lenders for purposes of perfecting Collateral Agent’s security interest therein. 

9.5        Liability for Collateral.  So long as Collateral Agent and
the Lenders comply with reasonable banking practices regarding the safekeeping of the Collateral in the possession or under the control of Collateral Agent and the Lenders, Collateral Agent and the Lenders shall not be liable or responsible for:
(a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or other Person. Borrower bears
all risk of loss, damage or destruction of the Collateral. 
 9.6        No
Waiver; Remedies Cumulative.  Failure by Collateral Agent or any Lender, at any time or times, to require strict performance by Borrower of any provision of this Agreement or any other Loan Document shall not waive, affect, or diminish
any right of Collateral Agent or any Lender thereafter to demand strict performance and compliance herewith or therewith. No waiver hereunder shall be effective unless signed by Collateral Agent and the Required Lenders and then is only effective
for the specific instance and purpose for which it is given. The rights and remedies of Collateral Agent and the Lenders under this Agreement and the other Loan Documents are cumulative. Collateral Agent and the Lenders have all rights and remedies
provided under the Code, any applicable law, by law, or in equity. The exercise by Collateral Agent or any Lender of one right or remedy is not an election, and Collateral Agent’s or any Lender’s waiver of any Event of Default is not a
continuing waiver. Collateral Agent’s or any Lender’s delay in exercising any remedy is not a waiver, election, or acquiescence. 

9.7        Demand Waiver.  Borrower waives, to the fullest extent
permitted by law, demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and
guarantees held by Collateral Agent or any Lender on which Borrower or any Subsidiary is liable. 
  

	10.          NOTICES	 



All notices, consents, requests, approvals, demands, or other communication (collectively, “Communication”)
by any party to this Agreement or any other Loan Document must be in writing and shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of actual receipt and three (3) Business Days after deposit in the U.S.
mail, first class, registered or certified mail return receipt requested, with proper postage prepaid; (b) upon transmission, when sent by electronic mail (if an email address is specified herein) or facsimile transmission; (c) one
(1) Business Day after deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be
notified and sent to the address, facsimile number, or email address indicated below. Any of Collateral Agent, Lender or Borrower may change its mailing address or facsimile number by giving the other party written notice thereof in accordance with
the terms of this Section 10. 

  
 20 









			
	If to Borrower:	    	 SORRENTO THERAPEUTICS, INC.

6042 Cornerstone Court, Suite B

San Diego, CA 92121
 Attn: Chief
Financial Officer
 Fax: (858) 210-3759

Email: rvincent@sorrentotherapeutics.com

		
	with a copy (which shall not constitute notice) to:	    	 Cooley LLP

3175 Hanover Street
 Palo Alto, CA
94304-1130
 Attn: Glen Sato

Fax: (650) 849-7400
 Email:
gsato@cooley.com

		
	If to Collateral Agent:	    	 OXFORD FINANCE LLC

133 North Fairfax Street

Alexandria, Virginia 22314

Attention: Legal Department
 Fax:
(703) 519-5225
 Email: LegalDepartment@oxfordfinance.com

		
	with a copy to	    	 SILICON VALLEY BANK

4370 La Jolla Village Drive, Suite 1050

San Diego CA 92122
 Attn: Mike
White
 Fax: (858) 622-1424

Email: mwhite@svb.com

		
	with a copy (which shall not constitute notice) to:	    	 DLA Piper LLP (US)

4365 Executive Drive, Suite 1100

San Diego, California 92121-2133

Attn: Troy Zander
 Fax: (858) 638-5086
 Email: troy.zander@dlapiper.com


  

	11.	 CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER, AND JUDICIAL REFERENCE 



California law governs the Loan Documents without regard to principles of conflicts of law. Borrower, Collateral Agent and
each Lender each submit to the exclusive jurisdiction of the State and Federal courts in Santa Clara County, California; provided, however, that nothing in this Agreement shall be deemed to operate to preclude Collateral Agent or any Lender from
bringing suit or taking other legal action in any other jurisdiction to realize on the Collateral or any other security for the Obligations, or to enforce a judgment or other court order in favor of Collateral Agent or any Lender. Borrower expressly
submits and consents in advance to such jurisdiction in any action or suit commenced in any such court, and Borrower hereby waives any objection that it may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and
hereby consents to the granting of such legal or equitable relief as is deemed appropriate by such court. Borrower hereby waives personal service of the summons, complaints, and other process issued in such action or suit and agrees that service of
such summons, complaints, and other process may be made by registered or certified mail addressed to Borrower at the address set forth in, or subsequently provided by Borrower in accordance with, Section 10 of this Agreement and that service so
made shall be deemed completed upon the earlier to occur of Borrower’s actual receipt thereof or three (3) days after deposit in the U.S. mails, proper postage prepaid. 

TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER, COLLATERAL AGENT AND EACH LENDER EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY
CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, 

  
 21 








 
BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR EACH PARTY TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL. 

WITHOUT INTENDING IN ANY WAY TO LIMIT THE PARTIES’ AGREEMENT TO WAIVE THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY, if the above waiver of
the right to a trial by jury is not enforceable, the parties hereto agree that any and all disputes or controversies of any nature between them arising at any time shall be decided by a reference to a private judge, mutually selected by the parties
(or, if they cannot agree, by the Presiding Judge of the Santa Clara County, California Superior Court) appointed in accordance with California Code of Civil Procedure Section 638 (or pursuant to comparable provisions of federal law if the
dispute falls within the exclusive jurisdiction of the federal courts), sitting without a jury, in Santa Clara County, California; and the parties hereby submit to the jurisdiction of such court. The reference proceedings shall be conducted pursuant
to and in accordance with the provisions of California Code of Civil Procedure §§ 638 through 645.1, inclusive. The private judge shall have the power, among others, to grant provisional relief, including without limitation, entering
temporary restraining orders, issuing preliminary and permanent injunctions and appointing receivers. All such proceedings shall be closed to the public and confidential and all records relating thereto shall be permanently sealed. If during the
course of any dispute, a party desires to seek provisional relief, but a judge has not been appointed at that point pursuant to the judicial reference procedures, then such party may apply to the Santa Clara County, California Superior Court for
such relief. The proceeding before the private judge shall be conducted in the same manner as it would be before a court under the rules of evidence applicable to judicial proceedings. The parties shall be entitled to discovery which shall be
conducted in the same manner as it would be before a court under the rules of discovery applicable to judicial proceedings. The private judge shall oversee discovery and may enforce all discovery rules and orders applicable to judicial proceedings
in the same manner as a trial court judge. The parties agree that the selected or appointed private judge shall have the power to decide all issues in the action or proceeding, whether of fact or of law, and shall report a statement of decision
thereon pursuant to California Code of Civil Procedure § 644(a). Nothing in this paragraph shall limit the right of any party at any time to exercise self-help remedies, foreclose against collateral, or
obtain provisional remedies. The private judge shall also determine all issues relating to the applicability, interpretation, and enforceability of this paragraph. 
  

	11.	 GENERAL PROVISIONS 



11.1        Successors and Assigns.  This Agreement binds and is for
the benefit of the successors and permitted assigns of each party. Borrower may not transfer, pledge or assign this Agreement or any rights or obligations under it without Collateral Agent’s and each Lender’s prior written consent (which
may be granted or withheld in Collateral Agent’s and each Lender’s discretion, subject to Section 11.6). The Lenders have the right, without the consent of or notice to Borrower, to sell, transfer, assign, pledge, negotiate, or grant
participation in (any such sale, transfer, assignment, negotiation, or grant of a participation, a “Lender Transfer”) all or any part of, or any interest in, the Lenders’ obligations, rights, and benefits under this
Agreement and the other Loan Documents; provided, however, that any such Lender Transfer (other than a transfer, pledge, sale or assignment to an Eligible Assignee) of its obligations, rights, and benefits under this Agreement and the
other Loan Documents shall require the prior written consent of the Required Lenders (such approved assignee, an “Approved Lender”). Borrower and Collateral Agent shall be entitled to continue to deal solely and directly with such
Lender in connection with the interests so assigned until Collateral Agent shall have received and accepted an effective assignment agreement in form satisfactory to Collateral Agent executed, delivered and fully completed by the applicable parties
thereto, and shall have received such other information regarding such Eligible Assignee or Approved Lender as Collateral Agent reasonably shall require. Notwithstanding anything to the contrary contained herein, so long as no Event of Default has
occurred and is continuing, no Lender Transfer (other than a Lender Transfer (i) in respect of the Warrants or (ii) in connection with (x) assignments by a Lender due to a forced divestiture at the request of any regulatory agency; or
(y) upon the occurrence of a default, event of default or similar occurrence with respect to a Lender’s own financing or securitization transactions) shall be permitted, without Borrower’s consent, to any Person which is an Affiliate
or Subsidiary of Borrower, a direct competitor of Borrower or a vulture hedge fund, each as determined by Collateral Agent. 

11.2        Indemnification.  Borrower agrees to indemnify, defend
and hold Collateral Agent and the Lenders and their respective directors, officers, employees, agents, attorneys, or any other Person affiliated with or representing Collateral Agent or the Lenders (each, an “Indemnified Person”)
harmless against: (a) all obligations, 

  
 22 








 
demands, claims, and liabilities (collectively, “Claims”) asserted by any other party in connection with; related to; following; or arising from, out of or under, the
transactions contemplated by the Loan Documents; and (b) all losses or Lenders’ Expenses incurred, or paid by Indemnified Person in connection with; related to; following; or arising from, out of or under, the transactions contemplated by
the Loan Documents between Collateral Agent, and/or the Lenders and Borrower (including reasonable attorneys’ fees and expenses), except for Claims and/or losses directly caused by such Indemnified Person’s gross negligence or willful
misconduct. Borrower hereby further indemnifies, defends and holds each Indemnified Person harmless from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs, expenses and
disbursements of any kind or nature whatsoever (including the fees and disbursements of counsel for such Indemnified Person) in connection with any investigative, response, remedial, administrative or judicial matter or proceeding, whether or not
such Indemnified Person shall be designated a party thereto and including any such proceeding initiated by or on behalf of Borrower, and the reasonable expenses of investigation by engineers, environmental consultants and similar technical personnel
and any commission, fee or compensation claimed by any broker (other than any broker retained by Collateral Agent or Lenders) asserting any right to payment for the transactions contemplated hereby which may be imposed on, incurred by or asserted
against such Indemnified Person as a result of or in connection with the transactions contemplated hereby and the use or intended use of the proceeds of the loan proceeds except for liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, claims, costs, expenses and disbursements directly caused by such Indemnified Person’s gross negligence or willful misconduct. 

11.3        Time of Essence.  Time is of the essence for the
performance of all Obligations in this Agreement. 
 11.4        Severability of
Provisions.  Each provision of this Agreement is severable from every other provision in determining the enforceability of any provision. 

11.5        Correction of Loan Documents.  Collateral Agent and the
Lenders may correct patent errors and fill in any blanks in this Agreement and the other Loan Documents consistent with the agreement of the parties, so long as Collateral Agent provides Borrower with written notice of such correction and allows
Borrower at least ten (10) days to object to such correction. In the event of such objection, such correction shall not be made except by an amendment signed by both Collateral Agent and Borrower. 

11.6        Amendments in Writing; Integration.  (a) No
amendment, modification, termination or waiver of any provision of this Agreement or any other Loan Document, no approval or consent thereunder, or any consent to any departure by Borrower or any of its Subsidiaries therefrom, shall in any event be
effective unless the same shall be in writing and signed by Borrower, Collateral Agent and the Required Lenders provided that: 

(i)        no such amendment, waiver or other modification that would have the effect
of increasing or reducing a Lender’s Term Loan Commitment or Commitment Percentage shall be effective as to such Lender without such Lender’s written consent; 

(ii)        no such amendment, waiver or modification that would affect the rights
and duties of Collateral Agent shall be effective without Collateral Agent’s written consent or signature; 

(iii)        no such amendment, waiver or other modification shall, unless signed by
all the Lenders directly affected thereby, (A) reduce the principal of, rate of interest on or any fees with respect to any Term Loan or forgive any principal, interest (other than default interest) or fees (other than late charges) with
respect to any Term Loan (B) postpone the date fixed for, or waive, any payment of principal of any Term Loan or of interest on any Term Loan (other than default interest) or any fees provided for hereunder (other than late charges or for any
termination of any commitment); (C) change the definition of the term “Required Lenders” or the percentage of Lenders which shall be required for the Lenders to take any action hereunder; (D) release all or substantially
all of any material portion of the Collateral, authorize Borrower to sell or otherwise dispose of all or substantially all or any material portion of the Collateral or release any Guarantor of all or any portion of the Obligations or its guaranty
obligations with respect thereto, except, in each case with respect to this clause (D), as otherwise may be expressly permitted under this Agreement or the other Loan Documents (including in connection with any disposition permitted hereunder);
(E) amend, waive or otherwise modify this Section 11.6 or the definitions of the terms used in this Section 11.6 insofar as the definitions affect the substance of this Section 11.6; (F) consent


  
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to the assignment, delegation or other transfer by Borrower of any of its rights and obligations under any Loan Document or release Borrower of its payment obligations under any Loan Document,
except, in each case with respect to this clause (F), pursuant to a merger or consolidation permitted pursuant to this Agreement; (G) amend any of the provisions of Section 9.4 or amend any of the definitions of Pro Rata Share, Term Loan
Commitment, Commitment Percentage or that provide for the Lenders to receive their Pro Rata Shares of any fees, payments, setoffs or proceeds of Collateral hereunder; (H) subordinate the Liens granted in favor of Collateral Agent securing the
Obligations; or (I) amend any of the provisions of Section 11.10. It is hereby understood and agreed that all Lenders shall be deemed directly affected by an amendment, waiver or other modification of the type described in the preceding
clauses (C), (D), (E), (F), (G) and (H) of the preceding sentence; 

(iv)        the provisions of the foregoing clauses (i), (ii) and (iii) are
subject to the provisions of any interlender or agency agreement among the Lenders and Collateral Agent pursuant to which any Lender may agree to give its consent in connection with any amendment, waiver or modification of the Loan Documents only in
the event of the unanimous agreement of all Lenders. 
 (b)        Other than
as expressly provided for in Section 11.6(a)(i)-(iii), Collateral Agent may, if requested by the Required Lenders, from time to time designate covenants in this Agreement less restrictive by
notification to a representative of Borrower. 
 (c)        This Agreement and the
Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter
of this Agreement and the Loan Documents merge into this Agreement and the Loan Documents. 

11.7        Counterparts.  This Agreement may be executed in any
number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, is an original, and all taken together, constitute one Agreement. 

11.8        Survival.  All covenants, representations and warranties
made in this Agreement continue in full force and effect until this Agreement has terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their terms, are to survive the
termination of this Agreement) have been satisfied. Without limiting the foregoing, except as otherwise provided in Section 4.1, the grant of security interest by Borrower in Section 4.1 shall survive until the termination of all Bank
Services Agreements. The obligation of Borrower in Section 11.2 to indemnify each Lender and Collateral Agent, as well as the confidentiality provisions in Section 11.9 below, shall survive until the statute of limitations with respect to
such claim or cause of action shall have run. 

11.9        Confidentiality.  In handling any confidential
information of Borrower, the Lenders and Collateral Agent shall exercise the same degree of care that it exercises for their own proprietary information, but disclosure of information may be made: (a) subject to the terms and conditions of this
Agreement, to the Lenders’ and Collateral Agent’s Subsidiaries or Affiliates, or in connection with a Lender’s own financing or securitization transactions and upon the occurrence of a default, event of default or similar occurrence
with respect to such financing or securitization transaction; (b) to prospective transferees (other than those identified in (a) above) or purchasers of any interest in the Credit Extensions (provided, however, the Lenders and Collateral
Agent shall, except upon the occurrence and during the continuance of an Event of Default, obtain such prospective transferee’s or purchaser’s agreement to the terms of this provision or to similar confidentiality terms); (c) as
required by law, regulation, subpoena, or other order; (d) to Lenders’ or Collateral Agent’s regulators or as otherwise required in connection with an examination or audit; (e) as Collateral Agent reasonably considers appropriate
in exercising remedies under the Loan Documents; and (f) to third party service providers of the Lenders and/or Collateral Agent so long as such service providers have executed a confidentiality agreement with the Lenders and Collateral Agent
with terms no less restrictive than those contained herein. Confidential information does not include information that either: (i) is in the public domain or in the Lenders’ and/or Collateral Agent’s possession when disclosed to the
Lenders and/or Collateral Agent, or becomes part of the public domain after disclosure to the Lenders and/or Collateral Agent; or (ii) is disclosed to the Lenders and/or Collateral Agent by a third party, if the Lenders and/or Collateral Agent
does not know that the third party is prohibited from disclosing the information. Collateral Agent and the Lenders may use confidential information for any purpose, including, without limitation, for the


  
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development of client databases, reporting purposes, and market analysis, in each case so long as Collateral Agent does not disclose Borrower’s identity or the identity of any person
associated with Borrower unless otherwise expressly permitted by this Agreement. The provisions of the immediately preceding sentence shall survive the termination of this Agreement. The agreements provided under this Section 11.9 supersede all
prior agreements, understanding, representations, warranties, and negotiations between the parties about the subject matter of this Section 11.9. 

11.10        Right of Set Off.  Borrower hereby grants to Collateral
Agent and to each Lender, a lien, security interest and right of set off as security for all Obligations to Collateral Agent and each Lender hereunder, whether now existing or hereafter arising upon and against all deposits, credits, collateral and
property, now or hereafter in the possession, custody, safekeeping or control of Collateral Agent or the Lenders or any entity under the control of Collateral Agent or the Lenders (including a Collateral Agent affiliate) or in transit to any of
them. At any time after the occurrence and during the continuance of an Event of Default, without demand or notice, Collateral Agent or the Lenders may set off the same or any part thereof and apply the same to any liability or obligation of
Borrower even though unmatured and regardless of the adequacy of any other collateral securing the Obligations. ANY AND ALL RIGHTS TO REQUIRE COLLATERAL AGENT TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE
OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED. 

11.11        Silicon Valley Bank as Agent.  Collateral Agent hereby
appoints Silicon Valley Bank (“SVB”) as its agent (and SVB hereby accepts such appointment) for the purpose of perfecting Collateral Agent’s Liens in assets which, in accordance with Article 8 or Article 9, as applicable, of
the Code can be perfected by possession or control, including without limitation, all deposit accounts maintained at SVB. 

11.12        Cooperation of Borrower.  If necessary, Borrower agrees
to (i) execute any documents (including new Secured Promissory Notes) reasonably required to effectuate and acknowledge each assignment of a Term Loan Commitment or Loan to an assignee in accordance with Section 11.1, (provided such
assignment is in accordance with section 11.1), (ii) make Borrower’s management available to meet with Collateral Agent and prospective participants and assignees of Term Loan Commitments or Credit Extensions (which meetings shall be
conducted no more often than twice every twelve months unless an Event of Default has occurred and is continuing), and (iii) assist Collateral Agent or the Lenders in the preparation of information relating to the financial affairs of Borrower
as any prospective participant or assignee of a Term Loan Commitment or Term Loan reasonably may request in accordance with section 11.1 and subject to Section 11.9. Subject to the provisions of Sections 11.1 and 11.9, Borrower
authorizes each Lender to disclose to any prospective participant or assignee of a Term Loan Commitment, any and all information in such Lender’s possession concerning Borrower and its financial affairs which has been delivered to such Lender
by or on behalf of Borrower pursuant to this Agreement, or which has been delivered to such Lender by or on behalf of Borrower in connection with such Lender’s credit evaluation of Borrower prior to entering into this Agreement. 

11.13        Borrower Liability.  Either Borrower may, acting singly,
request Credit Extensions hereunder. Each Borrower hereby appoints the other as agent for the other for all purposes hereunder, including with respect to requesting Credit Extensions hereunder. Each Borrower hereunder shall be jointly and severally
obligated to repay all Credit Extensions made hereunder, regardless of which Borrower actually receives said Credit Extension, as if each Borrower hereunder directly received all Credit Extensions. Each Borrower waives (a) any suretyship
defenses available to it under the Code or any other applicable law, including, without limitation, the benefit of California Civil Code Section 2815 permitting revocation as to future transactions and the benefit of California Civil Code
Sections 1432, 2809, 2810, 2819, 2839, 2845, 2847, 2848, 2849, 2850, and 2899 and 3433, and (b) any right to require Collateral Agent or any Lender to: (i) proceed against any Borrower or any other person; (ii) proceed against or
exhaust any security; or (iii) pursue any other remedy. Collateral Agent and or any Lender may exercise or not exercise any right or remedy it has against any Borrower or any security it holds (including the right to foreclose by judicial or non-judicial sale) without affecting any Borrower’s liability. Notwithstanding any other provision of this Agreement or other related document, each Borrower irrevocably waives all rights that it may have at
law or in equity (including, without limitation, any law subrogating Borrower to the rights of Collateral Agent and the Lenders under this Agreement) to seek contribution, indemnification or any other form of reimbursement from any other Borrower,
or any other Person now or hereafter primarily or secondarily liable for any of the Obligations, for 

  
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any payment made by Borrower with respect to the Obligations in connection with this Agreement or otherwise and all rights that it might have to benefit from, or to participate in, any security
for the Obligations as a result of any payment made by Borrower with respect to the Obligations in connection with this Agreement or otherwise. Any agreement providing for indemnification, reimbursement or any other arrangement prohibited under this
Section shall be null and void. If any payment is made to a Borrower in contravention of this Section, such Borrower shall hold such payment in trust for Collateral Agent and the Lenders and such payment shall be promptly delivered to
Collateral Agent for application to the Obligations, whether matured or unmatured. 

11.14        Effect of Amendment and Restatement.  Except as
otherwise set forth herein, this Agreement is intended to and does completely amend and restate, without novation, the Original Agreement. All security interests granted under the Original Agreement are hereby confirmed and ratified and shall
continue to secure all Obligations under this Agreement. 
  

	12.	 DEFINITIONS 



12.1        Definitions.  As used in this Agreement, the following
terms have the following meanings: 
 “Account” is any “account” as defined in the Code with such
additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other sums owing to Borrower. 

“Account Debtor” is any “account debtor” as defined in the Code with such additions to such term as
may hereafter be made. 
 “Affiliate” of any Person is a Person that owns or controls directly or
indirectly the Person, any Person that controls or is controlled by or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners and, for any Person that is a limited liability company,
that Person’s managers and members. 
 “Agreement” is defined in the preamble hereof. 

“Amortization Date” is, November 1, 2014; provided that, if Borrower achieves the Equity Event prior to
September 30, 2014, the Amortization Date shall be May 1, 2015. 
 “Annual Projections” is
defined in Section 6.2(a). 
 “Anti-Terrorism Laws” are any
laws relating to terrorism or money laundering, including Executive Order No. 13224 (effective September 24, 2001), the USA PATRIOT Act, the laws comprising or implementing the Bank Secrecy Act, and the laws administered by OFAC. 

“Approved Fund” is any (i) investment company, fund, trust, securitization vehicle or conduit that is
(or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business or (ii) any Person (other than a natural person) which temporarily warehouses
loans for any Lender or any entity described in the preceding clause (i) and that, with respect to each of the preceding clauses (i) and (ii), is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) a
Person (other than a natural person) or an Affiliate of a Person (other than a natural person) that administers or manages a Lender. 

“Approved Lender” is defined in Section 11.1. 

“Bank Services” are any products, credit services, and/or financial accommodations previously, now, or
hereafter provided to Borrower or any of its Subsidiaries by Bank or any Bank Affiliate, including, without limitation, any letters of credit, cash management services (including, without limitation, merchant services, direct deposit of payroll,
business credit cards, and check cashing services), interest rate swap arrangements, and foreign exchange services as any such products or services may be identified in Bank’s various agreements related thereto (each, a “Bank Services
Agreement”). 

  
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 “Bank” is defined in the preamble hereof. 

“Basic Rate” is, with respect to a Term Loan, the per annum rate of interest (based on a year of three
hundred sixty (360) days) equal to the greater of (i) seven and ninety-five hundredths percent (7.95%) and (ii) the sum of (a) the three (3) months U.S. LIBOR rate reported in the Wall Street Journal three
(3) Business Days prior to the Funding Date of such Term Loan, plus (b) seven and seventy-two hundredths percent (7.72%). 

“Blocked Person” is any Person: (a) listed in the annex to, or is otherwise subject to the provisions
of, Executive Order No. 13224, (b) a Person owned or controlled by, or acting for or on behalf of, any Person that is listed in the annex to, or is otherwise subject to the provisions of, Executive Order No. 13224, (c) a Person
with which any Lender is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism Law, (d) a Person that commits, threatens or conspires to commit or supports
“terrorism” as defined in Executive Order No. 13224, or (e) a Person that is named a “specially designated national” or “blocked person” on the most current list published by OFAC or other similar list. 

“Borrower” is defined in the preamble hereof. 

“Borrower’s Books” are Borrower’s or any of its Subsidiaries’ books and records including
ledgers, federal, and state tax returns, records regarding Borrower’s or its Subsidiaries’ assets or liabilities, the Collateral, business operations or financial condition, and all computer programs or storage or any equipment containing
such information. 
 “Business Day” is any day that is not a Saturday, Sunday or a day on which Collateral
Agent is closed. 
 “Cash Equivalents” are (a) marketable direct obligations issued or unconditionally
guaranteed by the United States or any agency or any State thereof having maturities of not more than one (1) year from the date of acquisition; (b) commercial paper maturing no more than one (1) year after its creation and having the
highest rating from either Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc., and (c) certificates of deposit maturing no more than one (1) year after issue provided that the account in which any such
certificate of deposit is maintained is subject to a Control Agreement in favor of Collateral Agent. For the avoidance of doubt, the direct purchase by Borrower or any of its Subsidiaries of any Auction Rate Securities, or purchasing participations
in, or entering into any type of swap or other derivative transaction, or otherwise holding or engaging in any ownership interest in any type of Auction Rate Security by Borrower or any of its Subsidiaries shall be conclusively determined by the
Lenders as an ineligible Cash Equivalent, and any such transaction shall expressly violate each other provision of this Agreement governing Permitted Investments. Notwithstanding the foregoing, Cash Equivalents does not include and Borrower, and
each of its Subsidiaries, are prohibited from purchasing, purchasing participations in, entering into any type of swap or other equivalent derivative transaction, or otherwise holding or engaging in any ownership interest in any type of debt
instrument, including, without limitation, any corporate or municipal bonds with a long-term nominal maturity for which the interest rate is reset through a dutch auction and more commonly referred to as an
auction rate security (each, an “Auction Rate Security”). 
 “Claims” are defined in
Section 11.2. 
 “Code” is the Uniform Commercial Code, as the same may, from time to time, be enacted and
in effect in the State of California; provided, that, to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined differently in different Articles or Divisions of the Code, the definition of such
term contained in Article or Division 9 shall govern; provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, or priority of, or remedies with respect to, Collateral Agent’s
Lien on any Collateral is governed by the Uniform Commercial Code in effect in a jurisdiction other than the State of California, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction
solely for purposes of the provisions thereof relating to such attachment, perfection, priority, or remedies and for purposes of definitions relating to such provisions. 

“Collateral” is any and all properties, rights and assets of Borrower described on Exhibit A.


  
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 “Collateral Account” is any Deposit Account, Securities Account,
or Commodity Account, or any other bank account maintained by Borrower or any Subsidiary at any time. 
 “Collateral
Agent” is, Oxford, not in its individual capacity, but solely in its capacity as agent on behalf of and for the benefit of the Lenders. 

“Commitment Percentage” is set forth in Schedule 1.1, as amended from time to time. 

“Commodity Account” is any “commodity account” as defined in the Code with such additions to such
term as may hereafter be made. 
 “Communication” is defined in Section 10. 

“Compliance Certificate” is that certain certificate in the form attached hereto as Exhibit C.

 “Contingent Obligation” is, for any Person, any direct or indirect liability, contingent or not, of that
Person for (a) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly guaranteed, endorsed, co-made, discounted or sold with
recourse by that Person, or for which that Person is directly or indirectly liable; (b) any obligations for undrawn letters of credit for the account of that Person; and (c) all obligations from any interest rate, currency or commodity
swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent Obligation” does
not include endorsements in the ordinary course of business. The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum
reasonably anticipated liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement. 

“Control Agreement” is any control agreement entered into among the depository institution at which Borrower
or any of its Subsidiaries maintains a Deposit Account or the securities intermediary or commodity intermediary at which Borrower or any of its Subsidiaries maintains a Securities Account or a Commodity Account, Borrower and such Subsidiary, and
Collateral Agent pursuant to which Collateral Agent obtains control (within the meaning of the Code) for the benefit of the Lenders over such Deposit Account, Securities Account, or Commodity Account. 

“Copyrights” are any and all copyright rights, copyright applications, copyright registrations and like
protections in each work or authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret. 

“Credit Extension” is any Term Loan or any other extension of credit by Collateral Agent or Lenders for
Borrower’s benefit. 
 “Default Rate” is defined in Section 2.3(b). 

“Deposit Account” is any “deposit account” as defined in the Code with such additions to such term
as may hereafter be made. 
 “Designated Deposit Account” is Borrower’s deposit account, account
number xxxxxxx599, maintained with Bank. 
 “Disbursement Letter” is that certain form attached hereto as
Exhibit B-1. 
 “Dollar Equivalent” is, at any time,
(a) with respect to any amount denominated in Dollars, such amount, and (b) with respect to any amount denominated in a Foreign Currency, the equivalent amount therefor in Dollars as determined by Bank at such time on the basis of the then-prevailing rate of exchange in San Francisco, California, for sales of the Foreign Currency for transfer to the country issuing such Foreign Currency. 

  
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 “Dollars,” “dollars” and “$” each
mean lawful money of the United States. 
 “Effective Date” is defined in the preamble of this Agreement.

 “Eligible Assignee” is (i) a Lender, (ii) an Affiliate of a Lender, (iii) an Approved
Fund and (iv) any commercial bank, savings and loan association or savings bank or any other entity which is an “accredited investor” (as defined in Regulation D under the Securities Act of 1933, as amended) and which extends credit
or buys loans as one of its businesses, including insurance companies, mutual funds, lease financing companies and commercial finance companies, in each case, which either (A) has a rating of BBB or higher from Standard & Poor’s
Rating Group and a rating of Baa2 or higher from Moody’s Investors Service, Inc. at the date that it becomes a Lender or (B) has total assets in excess of Five Billion Dollars ($5,000,000,000.00), and in each case of clauses
(i) through (iv), which, through its applicable lending office, is capable of lending to Borrower without the imposition of any withholding or similar taxes; provided that notwithstanding the foregoing, “Eligible Assignee” shall not
include, unless an Event of Default has occurred and is continuing, (i) Borrower or any of Borrower’s Affiliates or Subsidiaries or (ii) a direct competitor of Borrower or a vulture hedge fund, each as determined by Collateral Agent.
Notwithstanding the foregoing, (x) in connection with assignments by a Lender due to a forced divestiture at the request of any regulatory agency, the restrictions set forth herein shall not apply and Eligible Assignee shall mean any Person or
party and (y) in connection with a Lender’s own financing or securitization transactions, the restrictions set forth herein shall not apply and Eligible Assignee shall mean any Person or party providing such financing or formed to
undertake such securitization transaction and any transferee of such Person or party upon the occurrence of a default, event of default or similar occurrence with respect to such financing or securitization transaction; provided that no such sale,
transfer, pledge or assignment under this clause (y) shall release such Lender from any of its obligations hereunder or substitute any such Person or party for such Lender as a party hereto until Collateral Agent shall have received and
accepted an effective assignment agreement from such Person or party in form satisfactory to Collateral Agent executed, delivered and fully completed by the applicable parties thereto, and shall have received such other information regarding such
Eligible Assignee as Collateral Agent reasonably shall require. 
 “Equipment” is all “equipment”
as defined in the Code with such additions to such term as may hereafter be made, and includes without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing. 

“Equity Event” is the receipt by Borrower on or after the Effective Date of unrestricted net cash proceeds of
not less than Thirty Million Dollars ($30,000,000.00) from (i) the issuance and sale by Borrower of its equity securities (or the issuance of convertible promissory notes provided the same are not repayable in cash, but may only be converted
into equity securities, provided that notwithstanding the foregoing, in the event any convertible notes issued after the Effective Date convert prior to the September 30, 2014 Equity Event due date, the proceeds from such convertible notes
shall count as cash proceeds in measuring the foregoing Thirty Million Dollars ($30,000,000) minimum cash proceeds towards the Equity Event) and/or (ii) a one-time, non-refundable “up front” payment in connection with a joint venture,
collaboration or other partnering transaction. 
 “ERISA” is the Employee Retirement Income Security Act of
1974, as amended, and its regulations. 
 “Event of Default” is defined in Section 8. 

“Final Payment” is a payment (in addition to and not a substitution for the regular monthly payments of
principal plus accrued interest) due on the earliest to occur of (a) the Maturity Date, or (b) the acceleration of any Term Loan, or (c) the prepayment of a Term Loan pursuant to Section 2.2(c) or (d), equal to the original
principal amount of such Term Loan multiplied by the Final Payment Percentage, payable to Lenders in accordance with their respective Pro Rata Shares. 

“Final Payment Percentage” is six and one quarter percent (6.25%). 

“Foreign Currency” means lawful money of a country other than the United States. 

  
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 “Foreign Subsidiary” is a Subsidiary that is not an entity
organized under the laws of the United States or any territory thereof. 
 “Funding Date” is any date on
which a Credit Extension is made to or on account of Borrower which shall be a Business Day. 

“FX Contract” is any foreign exchange contract by and between Borrower and Bank under which Borrower
commits to purchase from or sell to Bank a specific amount of Foreign Currency on a specified date. 

“GAAP” is generally accepted accounting principles set forth in the opinions and pronouncements of the
Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other Person as may be approved by a significant
segment of the accounting profession in the United States, which are applicable to the circumstances as of the date of determination. 

“General Intangibles” are all “general intangibles” as defined in the Code in effect on the date
hereof with such additions to such term as may hereafter be made, and includes without limitation, all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work, whether
published or unpublished, any patents, trademarks, service marks and, to the extent permitted under applicable law, any applications therefor, whether registered or not, any trade secret rights, including any rights to unpatented inventions, payment
intangibles, royalties, contract rights, goodwill, franchise agreements, purchase orders, customer lists, route lists, telephone numbers, domain names, claims, income and other tax refunds, security and other deposits, options to purchase or sell
real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property damage, and business interruption insurance), payments of
insurance and rights to payment of any kind. 
 “Governmental Approval” is any consent, authorization,
approval, order, license, franchise, permit, certificate, accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority. 

“Governmental Authority” is any nation or government, any state or other political subdivision thereof, any
agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any self-regulatory organization. 
 “Guarantor” is any Person providing a
Guaranty in favor of Collateral Agent. 
 “Guaranty” is any guarantee of all or any part of the
Obligations, as the same may from time to time be amended, restated, modified or otherwise supplemented. 

“Indebtedness” is (a) indebtedness for borrowed money or the deferred price of property or services,
such as reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations, and (d) Contingent Obligations. 

“Indemnified Person” is defined in Section 11.2. 

“Insolvency Proceeding” is any proceeding by or against any Person under the United States Bankruptcy Code,
or any other bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief. 

“Insolvent” means not Solvent. 

“Intellectual Property” means all of Borrower’s or any Subsidiary’s right, title and interest in
and to the following: 

  
 30 








 (a)        its Copyrights, Trademarks
and Patents; 
 (b)        any and all trade secrets and trade secret rights,
including, without limitation, any rights to unpatented inventions, know-how, operating manuals; 

(c)        any and all source code; 

(d)        any and all design rights which may be available to Borrower; 

(e)        any and all claims for damages by way of past, present and future
infringement of any of the foregoing, with the right, but not the obligation, to sue for and collect such damages for said use or infringement of the Intellectual Property rights identified above; and 

(f)         all amendments, renewals and extensions of any of the Copyrights,
Trademarks or Patents. 
 “Inventory” is all “inventory” as defined in the Code in effect
on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products, including without
limitation such inventory as is temporarily out of any Person’s custody or possession or in transit and including any returned goods and any documents of title representing any of the above. 

“Investment” is any beneficial ownership interest in any Person (including stock, partnership interest
or other securities), and any loan, advance, payment or capital contribution to any Person. 
 [”Key
Person” is (A) each of Parent’s (i) President and Chief Executive Officer, who is Henry Ji as of the Effective Date and (ii) Chief Financial Officer, who is Richard Vincent as of the Effective Date and
(B) IgDraSol’s (i) Chief Science Officer, who is Vuong Trieu as of the Effective Date and (ii) Chief Commercial Officer, who is George Uy as of the Effective Date.] 

“Lender” is any one of the Lenders. 

“Lenders” are the Persons identified on Schedule 1.1 hereto and each assignee that becomes a
party to this Agreement pursuant to Section 11.1. 
 “Lenders’ Expenses” are all audit
fees and expenses, costs, and expenses (including reasonable attorneys’ fees and expenses, as well as appraisal fees, fees incurred on account of lien searches, inspection fees, and filing fees) for preparing, amending, negotiating,
administering, defending and enforcing the Loan Documents (including, without limitation, those incurred in connection with appeals or Insolvency Proceedings) or otherwise incurred by Collateral Agent and/or the Lenders in connection with the Loan
Documents. 
 “Letter of Credit” is a standby or commercial letter of credit issued by Bank
upon request of Borrower based upon an application, guarantee, indemnity, or similar agreement. 

“Lien” is a claim, mortgage, deed of trust, levy, charge, pledge, security interest, or other
encumbrance of any kind, whether voluntarily incurred or arising by operation of law or otherwise against any property. 

“Loan Documents” are, collectively, this Agreement, the Warrants, the Perfection Certificates, each
Compliance Certificate, each Disbursement Letter, each Loan Payment/Advance Request Form and any Bank Services Agreement, the Post Closing Letter, any subordination agreements, any note, or notes or guaranties executed by Borrower or any other
Person, and any other present or future agreement entered into by Borrower, any Guarantor or any other Person for the benefit of the Lenders and Collateral Agent in connection with this Agreement; all as amended, restated, or otherwise modified.

 “Loan Payment/Advance Request Form” is that certain form attached hereto as Exhibit B-2. 

  
 31 








 “Material Adverse Change” is (a) a material
impairment in the perfection or priority of Collateral Agent’s Lien in the Collateral or in the value of such Collateral; (b) a material adverse change in the business, operations or condition (financial or otherwise) of Borrower or any
Subsidiary; or (c) a material impairment of the prospect of repayment of any portion of the Obligations. 

“Maturity Date” is, for each Term Loan, the date which is (x) thirty-five (35) months after
the Amortization Date, if the Amortization Date is November 1, 2014; or (y) twenty-nine (29) months after the Amortization Date, if the Amortization Date is May 1, 2015. 

“Obligations” are all of Borrower’s obligations to pay when due any debts, principal, interest,
Lenders’ Expenses, the Prepayment Fee, the Final Payment, and other amounts Borrower owes the Lenders now or later, in connection with, related to, following, or arising from, out of or under, this Agreement or, the other Loan Documents (other
than the Warrants), or otherwise, including, without limitation, all obligations relating to letters of credit (including reimbursement obligations for drawn and undrawn letters of credit), cash management services, and foreign exchange contracts,
if any, and including interest accruing after Insolvency Proceedings begin (whether or not allowed) and debts, liabilities, or obligations of Borrower assigned to the Lenders and/or Collateral Agent, and the performance of Borrower’s duties
under the Loan Documents (other than the Warrants). 
 “OFAC” is the U.S. Department of
Treasury Office of Foreign Assets Control. 
 “OFAC Lists” are, collectively, the Specially
Designated Nationals and Blocked Persons List maintained by OFAC pursuant to Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept. 25, 2001) and/or any other list of terrorists or other restricted Persons maintained pursuant to any of the rules
and regulations of OFAC or pursuant to any other applicable Executive Orders. 
 “Operating
Documents” are, for any Person, such Person’s formation documents, as certified by the Secretary of State (or equivalent agency) of such Person’s jurisdiction of organization on a date that is no earlier than thirty (30) days
prior to the Effective Date, and, (a) if such Person is a corporation, its bylaws in current form, (b) if such Person is a limited liability company, its limited liability company agreement (or similar agreement), and (c) if such
Person is a partnership, its partnership agreement (or similar agreement), each of the foregoing with all current amendments or modifications thereto. 

“Oxford New Money Term Loan” is defined in Section 2.2(a)(iii). 

“Oxford Original Term Loan” is defined in Section 2.2(a)(i). 

“Oxford Term Loan” is defined in Section 2.2(a)(iii). 

“Patents” means all patents, patent applications and like protections including without limitation
improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same. 

“Payment Date” is the first (1st) calendar
day of each calendar month, commencing on May 1, 2014. 
 “Perfection Certificate” and
“Perfection Certificates” is defined in Section 5.1. 
 “Permitted
Indebtedness” is: 
 (a)         Borrower’s Indebtedness to
the Lenders and Collateral Agent under this Agreement and the other Loan Documents; 

(b)         Indebtedness existing on the Effective Date and disclosed on the
Perfection Certificate(s); 
 (c)         Subordinated Debt; 

(d)         unsecured Indebtedness to trade creditors incurred in the ordinary course
of business; 

  
 32 








 (e)         Indebtedness consisting of
capitalized lease obligations and purchase money Indebtedness, in each case incurred by Borrower or any of its Subsidiaries to finance the acquisition, repair, improvement or construction of fixed or capital assets of such person, provided that
(i) the aggregate outstanding principal amount of all such Indebtedness does not exceed Two Hundred Fifty Thousand Dollars ($250,000.00) at any time and (ii) the principal amount of such Indebtedness does not exceed the lower of the cost
or fair market value of the property so acquired or built or of such repairs or improvements financed with such Indebtedness (each measured at the time of such acquisition, repair, improvement or construction is made); 

(f)         Indebtedness incurred as a result of endorsing negotiable instruments
received in the ordinary course of Borrower’s business; 
 (g)        
extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness (a) through (e) above, provided that the principal amount thereof is not increased or the terms thereof are not modified to impose
materially more burdensome terms upon Borrower, or its Subsidiary, as the case may be; 

(h)         Indebtedness for any Bank Services, and 

(i)         other Indebtedness not enumerated above not to exceed Ten Thousand
Dollars ($10,000.00) at any time. 
 “Permitted Investments” are: 

(a)         Investments disclosed on the Perfection Certificate(s) and existing on
the Effective Date; 
 (b)        (i) Investments consisting of cash and Cash
Equivalents, and (ii) any other Investments permitted by Borrower’s investment policy, as amended from time to time, provided that such investment policy (and any such amendment thereto) has been approved in writing by Collateral Agent
(and Collateral Agent acknowledges the investment policy delivered on or prior to the Effective Date is hereby approved); 

(c)         Investments consisting of the endorsement of negotiable instruments for
deposit or collection or similar transactions in the ordinary course of Borrower; 

(d)         Investments consisting of deposit accounts in which Collateral Agent has
a perfected security interest; 
 (e)         Investments in connection with
Transfers permitted by Section 7.1; 
 (f)         Investments (i) by
Borrower in Sorrento HK not to exceed One Hundred Thousand Dollars ($100,000.00) in the aggregate in any fiscal year; (ii) by Borrower or any secured Guarantor in any other Borrower or secured Guarantor; (iii) by any Subsidiary in Borrower
or secured Guarantor; and (iv) by Borrower in any new Subsidiaries created after the Effective Date not to exceed One Hundred Thousand Dollars ($100,000.00) in the aggregate in any fiscal year; 

(g)         Investments consisting of (i) travel advances and employee
relocation loans and other employee loans and advances in the ordinary course of business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities of Borrower or its Subsidiaries pursuant to employee
stock purchase plans or agreements approved by Borrower’s Board of Directors; not to exceed One Hundred Thousand Dollars ($100,000.00) in the aggregate for (i) and (ii) in any fiscal year; 

(h)         Investments (including debt obligations) received in connection with the
bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of business; 

  
 33 








 (i)         Investments consisting of
notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers who are not Affiliates, in the ordinary course of business; provided that this paragraph (i) shall not apply to Investments of Borrower in any
Subsidiary; 
 (j)         non-cash Investments in joint ventures or strategic
alliances in the ordinary course of Borrower’s business consisting of the non-exclusive licensing of technology, the development of technology or the providing of technical support; and 

(k)         other Investments not enumerated above not to exceed Ten Thousand Dollars
($10,000.00) at any time. 
 “Permitted Licenses” are (A) licenses of over-the-counter software
that is commercially available to the public, and (B) non-exclusive and exclusive licenses for the use of the Intellectual Property of Borrower or any of its Subsidiaries entered into in the ordinary
course of business, provided, that, with respect to each such license described in clause (B), (i) no Event of Default has occurred or is continuing at the time of such license; (ii) the license constitutes an arms-length transaction, the terms of which, on their face, do not provide for a sale or assignment of any Intellectual Property and do not restrict the ability of Borrower or any of its Subsidiaries, as applicable,
to pledge, grant a security interest in or lien on, or assign or otherwise Transfer any Intellectual Property; (iii) in the case of any exclusive license, (x) Borrower delivers ten (10) days’ prior written notice and a brief
summary of the terms of the proposed license to Collateral Agent and the Lenders and delivers to Collateral Agent and the Lenders copies of the final executed licensing documents in connection with the exclusive license promptly upon consummation
thereof, and (y) any such license could not result in a legal transfer of title of the licensed property but may be exclusive in respects other than territory and may be exclusive as to territory only as to discrete geographical areas outside
of the United States; and (iv) all upfront payments, royalties, milestone payments or other proceeds arising from the licensing agreement that are payable to Borrower or any of its Subsidiaries are paid to a Deposit Account that is governed by
a Control Agreement. 
 “Permitted Liens” are: 

(a)         Liens existing on the Effective Date and disclosed on the Perfection
Certificates or arising under this Agreement and the other Loan Documents; 

(b)         Liens for taxes, fees, assessments or other government charges or levies,
either (i) not due and payable or (ii) being contested in good faith and for which Borrower maintains adequate reserves on its Books, provided that no notice of any such Lien has been filed or recorded under the Internal Revenue Code of
1986, as amended, and the Treasury Regulations adopted thereunder; 

(c)         liens securing Indebtedness permitted under clause (e) of the
definition of “Permitted Indebtedness,” provided that (i) such liens exist prior to the acquisition of, or attach substantially simultaneous with, or within twenty (20) days after the, acquisition, lease, repair,
improvement or construction of, such property financed or leased by such Indebtedness and (ii) such liens do not extend to any property of Borrower other than the property (and proceeds thereof) acquired, leased or built, or the improvements or
repairs, financed by such Indebtedness; 
 (d)         Liens of carriers,
warehousemen, suppliers, or other Persons that are possessory in nature arising in the ordinary course of business so long as such Liens attach only to Inventory, securing liabilities in the aggregate amount not to exceed Twenty Five Thousand
Dollars ($25,000.00), and which are not delinquent or remain payable without penalty or which are being contested in good faith and by appropriate proceedings which proceedings have the effect of preventing the forfeiture or sale of the property
subject thereto; 
 (e)         Liens to secure payment of workers’
compensation, employment insurance, old-age pensions, social security and other like obligations incurred in the ordinary course of business (other than Liens imposed by ERISA); 

  
 34 








 (f)         Liens incurred in the
extension, renewal or refinancing of the indebtedness secured by Liens described in (a) through (c), but any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount
of the indebtedness may not increase; 
 (g)         leases or subleases of real
property granted in the ordinary course of Borrower’s business (or, if referring to another Person, in the ordinary course of such Person’s business), and leases, subleases, non-exclusive licenses or
sublicenses of personal property (other than Intellectual Property) granted in the ordinary course of Borrower’s business (or, if referring to another Person, in the ordinary course of such Person’s business), if the leases, subleases,
licenses and sublicenses do not prohibit granting Collateral Agent or any Lender a security interest therein; 

(h)         banker’s liens, rights of setoff and Liens in favor of financial
institutions incurred in the ordinary course of business arising in connection with Borrower’s deposit accounts or securities accounts held at such institutions solely to secure payment of fees and similar costs and expenses and provided such
accounts are maintained in compliance with Section 6.6(b) hereof; 

(i)         Liens arising from judgments, decrees or attachments in circumstances not
constituting an Event of Default under Section 8.4 or 8.7; and 
 (j)        
Liens consisting of Permitted Licenses. 
 “Person” is any individual, sole proprietorship,
partnership, limited liability company, joint venture, company, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency. 

“Post Closing Letter” is that certain Post Closing Letter dated as of the Effective Date by and
between Collateral Agent and Borrower. 
 “Prepayment Fee” is, with respect to any Term Loan
subject to prepayment prior to the Maturity Date, whether by mandatory or voluntary prepayment, acceleration or otherwise, an additional fee payable to the Lenders in amount equal to: 

(i)         for a prepayment made on or after the Funding Date of such Term Loan
through and including the first anniversary of the Funding Date of such Term Loan, three percent (3.00%) of the principal amount of such Term Loan prepaid; 

(ii)         for a prepayment made after the date which is after the first
anniversary of the Funding Date of such Term Loan through and including the second anniversary of the Funding Date of such Term Loan, two percent (2.00%) of the principal amount of the Term Loans prepaid; and 

(iii)         for a prepayment made after the date which is after the second
anniversary of the Funding Date of such Term Loan and prior to the Maturity Date, one percent (1.00%) of the principal amount of the Term Loans prepaid. 

“Pro Rata Share” is, as of any date of determination, with respect to each Lender, a percentage
(expressed as a decimal, rounded to the ninth decimal place) determined by dividing the outstanding principal amount of Term Loans held by such Lender by the aggregate outstanding principal amount of all Term Loans. 

“Registered Organization” is any “registered organization” as defined in the Code with such
additions to such term as may hereafter be made. 
 “Required Lenders” means (i) for so
long as all of the Persons that are Lenders on the Effective Date (each an “Original Lender”) have not assigned or transferred any of their interests in their Term Loan, Lenders holding one hundred percent (100%) of the
aggregate outstanding principal balance of the Term Loan, or (ii) at any time from and after any Original Lender has assigned or transferred any interest in its Term Loan, Lenders holding 


  
 35 








 
at least sixty six percent (66%) of the aggregate outstanding principal balance of the Term Loan and, in respect of this clause (ii), (A) each Original Lender that has not assigned or
transferred any portion of its Term Loan, (B) each assignee or transferee of an Original Lender’s interest in the Term Loan, but only to the extent that such assignee or transferee is an Affiliate or Approved Fund of such Original Lender,
and (C) any Person providing financing to any Person described in clauses (A) and (B) above; provided, however, that this clause (C) shall only apply upon the occurrence of a default, event of default or similar occurrence with
respect to such financing. 
 “Requirement of Law” is as to any Person, the organizational or governing
documents of such Person, and any law (statutory or common), treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to
which such Person or any of its property is subject. 
 “Responsible Officer” is any of the
President, Chief Executive Officer, or Chief Financial Officer of Borrower acting alone. 
 “Secured
Promissory Note” is defined in Section 2.4. 
 “Secured Promissory Note Record”
is a record maintained by each Lender with respect to the outstanding Obligations owed by Borrower to Lender and credits made thereto. 

“Securities Account” is any “securities account” as defined in the Code with such additions
to such term as may hereafter be made. 
 “Shares” is one hundred percent (100%) of the
issued and outstanding capital stock, membership units or other securities owned or held of record by Borrower or Borrower’s Subsidiary, in any Subsidiary; provided that, (x) in the event Borrower demonstrates to Collateral Agent’s
reasonable satisfaction that a pledge of more than sixty five percent (65%) of the Shares of such Subsidiary which is a Foreign Subsidiary, creates a present and existing adverse tax consequence to Borrower under the U.S. Internal Revenue Code,
and (y) in any case, with respect to Sorrento HK, “Shares” shall mean sixty-five percent (65%) of the issued and outstanding capital stock, membership units or other securities owned or
held of record by Borrower or its Subsidiary in such Foreign Subsidiary.  
 “Solvent” is,
with respect to any Person: the fair salable value of such Person’s consolidated assets (including goodwill minus disposition costs) exceeds the fair value of such Person’s liabilities; such Person is not left with unreasonably small
capital after the transactions in this Agreement; and such Person is able to pay its debts (including trade debts) as they mature. 

“Sorrento HK” is Sorrento Therapeutics, Inc. Hong Kong Limited, an entity organized under the laws of
Hong Kong and a wholly-owned Subsidiary of Parent. 
 “Subordinated Debt” is indebtedness
incurred by Borrower or any of its Subsidiaries from time to time subordinated to all Indebtedness of Borrower and/or its Subsidiaries to the Lenders (pursuant to a subordination, intercreditor, or other similar agreement in form and substance
satisfactory to Collateral Agent and the Lenders entered into between Collateral Agent, Borrower, and/or any of its Subsidiaries, and the other creditor), on terms acceptable to Collateral Agent and the Lenders. 

“Subsidiary” is, with respect to any Person, any Person of which more than fifty percent (50%) of
the voting stock or other equity interests (in the case of Persons other than corporations) is owned or controlled, directly or indirectly, by such Person or through one or more intermediaries. 

“SVB Original Term Loan” is defined in Section 2.2(a)(i). 

“SVB New Money Term Loan” is defined in Section 2.2(a)(ii)(2). 

“SVB Pay Off Term Loan” is defined in Section 2.2(a)(ii)(1). 

  
 36 








 “SVB Term Loan” is defined in Section 2.2(a)(ii)(2).

 “Term Loan” is defined in Section 2.2(a) hereof. 

“Term Loan Commitment” is, for any Lender, the obligation of such Lender to make a Term Loan, up to
the principal amount shown on Schedule 1.1. “Term Loan Commitments” means the aggregate amount of such commitments of all Lenders. 

“Trademarks” means any trademark and servicemark rights, whether registered or not, applications to
register and registrations of the same and like protections, and the entire goodwill of the business of Borrower connected with and symbolized by such trademarks. 

“Transfer” is defined in Section 7.1. 

“Warrants” are those certain Warrants to Purchase Stock dated as of the Effective Date, or any date
thereafter, issued by Borrower in favor of each Lender or such Lender’s Affiliates. 
 [Balance of Page
Intentionally Left Blank] 

  
 37 








 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the Effective Date. 
 BORROWER: 
  

			
	 SORRENTO THERAPEUTICS, INC.
	  	 CONCORTIS BIOSYSTEMS, CORP.

		
	 By /s/ Richard
Vincent                                        
     
	  	 By /s/ Richard
Vincent                                        
     

	 Name: Richard Vincent
	  	 Name: Richard Vincent

	 Title: CFO    
	  	 Title: CFO

		
	 SHERRINGTON PHARMACEUTICALS, INC.
	  	 ARK ANIMAL THERAPEUTICS, INC.

		
	 By /s/ Richard
Vincent                                        
     
	  	 By /s/ Richard
Vincent                                        
     

	 Name: Richard Vincent
	  	 Name: Richard Vincent

	 Title: CFO
	  	 Title: CFO

		
	 IGDRASOL, INC.
	  	
		
	 By /s/ Richard
Vincent                                        
      
	  	
	 Name: Richard Vincent
	  	
	 Title: CFO
	  	
		
	COLLATERAL AGENT AND LENDER:	  	
		
	 OXFORD FINANCE LLC
	  	
		
	 By /s/ Hans
Houser                                        
         
	  	
	 Name: Hans Houser
	  	
	 Title: Chief Credit Officer, SVP
	  	
		
	LENDER:	  	
		
	 SILICON VALLEY BANK
	  	
		
	 By /s/ Anthony
Flores                                        
      
	  	
	 Name: Anthony Flores
	  	
	 Title: Vice President
	  	

 [Signature Page to Amended and Restated Loan and Security Agreement] 







 SCHEDULE 1.1  

Lenders and Commitments 

Term Loans 

					
	Lender	  	Term Loan Commitment	  	Commitment Percentage
	OXFORD FINANCE LLC	  	$7,500,000.00	  	60.00%
	SILICON VALLEY BANK	  	$5,000,000.00	  	40.00%
	TOTAL	  	
$12,500,000.00
	  	
100.00%









 EXHIBIT A  

Description of Collateral 

The Collateral consists of all of Borrower’s right, title and interest in and to the following personal property: 

All goods, Accounts (including health-care receivables), Equipment, Inventory,
contract rights or rights to payment of money, leases, license agreements, franchise agreements, General Intangibles (except as noted below), commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether
tangible or electronic), cash, deposit accounts and other Collateral Accounts, all certificates of deposit, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment
property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and 

All Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all
substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing. 

Notwithstanding the foregoing, the Collateral does not include (i) any Intellectual Property; provided, however, the
Collateral shall include all Accounts and all proceeds of Intellectual Property. If a judicial authority (including a U.S. Bankruptcy Court) would hold that a security interest in the underlying Intellectual Property is necessary to have a security
interest in such Accounts and such property that are proceeds of Intellectual Property, then the Collateral shall automatically, and effective as of the Effective Date, include the Intellectual Property to the extent necessary to permit perfection
of Collateral Agent’s security interest in such Accounts and such other property of Borrower that are proceeds of the Intellectual Property; and (ii) more than 65% of the total combined voting power of all classes of stock entitled to vote
the shares of capital stock (the “Shares”) of (x) Sorrento HK; and (y) any Foreign Subsidiary, if Borrower demonstrates to Collateral Agent’s reasonable satisfaction that a pledge of more than sixty five percent
(65%) of the Shares of such Subsidiary creates a present and existing adverse tax consequence to Borrower under the U.S. Internal Revenue Code. 

Pursuant to the terms of a certain negative pledge arrangement with Collateral Agent and the Lenders, Borrower has agreed not
to encumber any of its Intellectual Property. 







 EXHIBIT B-1 

Form of Disbursement Letter 

[see attached] 







 DISBURSEMENT LETTER 

March 31, 2014 
 The undersigned,
being the duly elected and acting Chief Financial Officer of SORRENTO THERAPEUTICS, INC., a Delaware corporation with offices located at 6042 Cornerstone Court, Suite B, San Diego, CA 92121 (for itself and on behalf of all borrowers,
“Borrower”), does hereby certify to OXFORD FINANCE LLC (“Oxford” and “Lender”), as collateral agent (the “Collateral Agent”) in connection with that certain Amended and
Restated Loan and Security Agreement dated as of March 31, 2014, by and among Borrower, Collateral Agent and the Lenders from time to time party thereto (the “Loan Agreement”; with other capitalized terms used below having the
meanings ascribed thereto in the Loan Agreement) that: 
 1.        The
representations and warranties made by Borrower in Section 5 of the Loan Agreement and in the other Loan Documents are true and correct in all material respects as of the date hereof. 

2.        No event or condition has occurred that would constitute an Event of Default
under the Loan Agreement or any other Loan Document. 
 3.        Borrower is in
compliance with the covenants and requirements contained in Sections 4, 6 and 7 of the Loan Agreement. 

4.        All conditions referred to in Section 3 of the Loan Agreement to the
making of the Loan to be made on or about the date hereof have been satisfied or waived by Collateral Agent. 

5.        No Material Adverse Change has occurred. 

6.        The undersigned is a Responsible Officer. 

[Balance of Page Intentionally Left Blank] 







 7.        The proceeds of the Term Loans
shall be disbursed as follows: 
  

					
	 Disbursement from Oxford:
	  			
	 Loan Amount
	  	 	$4,000,000.00	  
		
	 Less:
	  			
	 --Facility Fee
	  	 	($40,000.00)	  
	 --Accrued portion of Final Payment
	  	 	($24,900.80)	  
	 [--Interim Interest
	  	 	($                  )]	  
	 --Lender’s Legal Fees
	  	 	($                )*	  
		
	 Net Proceeds due from Oxford:
	  	 	$                            	  
		
	 Disbursement from SVB:
	  			
	 Loan Amount
	  	 	$5,000,000.00	  
		
	 Less:
	  			
	 --Facility Fee
	  	 	($35,000.00)	  
	 --Bank pay off amount
	  	 	($1,500,000.00)	  
	 --Accrued portion of Final Payment
	  	 	($11,666.29)	  
	 [--Interim Interest
	  	 	($                  )]	  
		
	 Net Proceeds due from SVB:
	  	 	$                            	  
		
	 TOTAL TERM LOAN NET PROCEEDS FROM LENDERS
	  	 	$                            	  

 8.        The Term Loan shall amortize in accordance
with the Amortization Table attached hereto. 
 9.        The aggregate net proceeds
of the Term Loans shall be transferred to the Designated Deposit Account as follows: 
  

			
	Account Name:	 	SORRENTO THERAPEUTICS, INC.
		
	Bank Name:	 	SILICON VALLEY BANK
		
	Bank Address:	 	 3003 Tasman Drive
 Santa Clara,
California 95054

		
	Account Number:	 	3300796599
		
	ABA Number:	 	121140399

 [Balance of Page Intentionally Left Blank] 

 
  

* Legal fees and costs are through the Effective Date. Post-closing legal fees and costs, payable after the Effective
Date, to be invoiced and paid post-closing. 







 Dated as of the date first set forth above. 

BORROWER: 
  

			
	 SORRENTO THERAPEUTICS, INC.
	    	 CONCORTIS BIOSYSTEMS, CORP.

		
	
By                             
                                         
          
	    	
By                             
                                         
          

	
Name:                            
                                         
     
	    	
Name:                            
                                         
     

	
Title:                            
                                         
       
	    	
Title:                            
                                         
       

		
	 SHERRINGTON PHARMACEUTICALS, INC.
	    	 ARK ANIMAL THERAPEUTICS, INC.

		
	
By                             
                                         
          
	    	
By                             
                                         
          

	
Name:                            
                                         
     
	    	
Name:                            
                                         
     

	
Title:                            
                                         
       
	    	
Title:                            
                                         
       

		
	 IGDRASOL, INC.
	    	
		
	
By                             
                                         
          
	    	
	
Name:                            
                                         
     
	    	
	
Title:                            
                                         
       
	    	
		
	COLLATERAL AGENT AND LENDER:	    	
		
	 OXFORD FINANCE LLC
	    	
		
	
By                            
                                         
           
	    	
	
Name:                            
                                         
     
	    	
	
Title:                            
                                         
       
	    	
		
	LENDER:	    	
		
	 SILICON VALLEY BANK
	    	
		
	
By                             
                                         
          
	    	
	
Name:                            
                                         
     
	    	
	
Title:                            
                                         
       
	    	

 [Signature Page to Disbursement Letter] 







 AMORTIZATION TABLE  

(Term Loan) 
 [see attached] 







 EXHIBIT B-2 

Loan Payment/Advance Request Form 

DEADLINE FOR SAME DAY PROCESSING IS
NOON PACIFIC TIME* 
 Fax To:
                                         
                                         
                                         
       Date:
                                         
        
  

	
	 LOAN PAYMENT:

SORRENTO THERAPEUTICS, INC., on behalf of each Borrower
  

From Account
#                                         
                   To Account
#                                         
                                         
          

                    
                (Deposit Account
#)                                         
                                   (Loan Account #)

Principal
$                                         
                            and/or Interest
$                                         
                                         
      
  

Authorized
Signature:                                       
                                 Phone
Number:                                        
                            

Print
Name/Title:                                       
                
  



 

	
	 LOAN ADVANCE:

 
 Complete Outgoing Wire Request section below if all or a portion of
the funds from this loan advance are for an outgoing wire.
  

From Account
#                                         
                   To Account
#                                         
                                         
                  

                        
                (Loan Account
#)                                         
                                   (Deposit Account #)

 
 Amount of Advance
$                                         
 
  
 All Borrower’s representations and warranties in the
Amended and Restated Loan and Security Agreement are true, correct and complete in all material respects on the date of the request for an advance; provided, however, that such materiality qualifier shall not be applicable to any representations and
warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material
respects as of such date:
  
 Authorized
Signature:                                       
                                 Phone
Number:                                        
                                    

Print
Name/Title:                                       
                 
  



 

	
	 OUTGOING WIRE
REQUEST:
 Complete only if all or a portion of funds from the loan advance above is to be wired.

Deadline for same day processing is noon, Pacific Time
  

Beneficiary Name:
                                         
                                         
   Amount of Wire:
$                                         
                               

Beneficiary Bank:
                                         
                                         
    Account Number:
                                         
                                

City and State:
                                         
                                         
         
  

Beneficiary Bank Transit (ABA) #:
                                         
           Beneficiary Bank Code (Swift, Sort, Chip, etc.):
                               

                        
                                         
                                         
              (For International Wire Only)
 Intermediary Bank:
                                         
                                    Transit (ABA) #:
                                         
                                        

For Further Credit to:
                                         
                                         
                                         
                                         
                   
  

Special Instruction:
                                         
                                         
                                         
                                         
                      
 By
signing below, I (we) acknowledge and agree that my (our) funds transfer request shall be processed in accordance with and subject to the terms and conditions set forth in the agreements(s) covering funds transfer service(s), which agreements(s)
were previously received and executed by me (us).
  
 Authorized
Signature:
                                         
             2nd Signature (if required):
                                         
                       

Print Name/Title:
                                         
                     Print Name/Title:
                                         
                                     

 Telephone #:
                                        
                            Telephone
#:                                        
                                         
     
  









 EXHIBIT C 

Compliance Certificate 
  

			
	 TO:
	    	 OXFORD FINANCE LLC, as Collateral Agent and Lender

SILICON VALLEY BANK, as Lender

		
	 FROM:
	    	 SORRENTO THERAPEUTICS, INC., for itself and on behalf of each Borrower


 The undersigned authorized officer (“Officer”) of SORRENTO THERAPEUTICS, INC., for itself and
on behalf of each Borrower, hereby certifies that in accordance with the terms and conditions of the Amended and Restated Loan and Security Agreement by and among Borrower, Collateral Agent, and the Lenders from time to time party thereto (the
“Loan Agreement;” capitalized terms used but not otherwise defined herein shall have the meanings given them in the Loan Agreement), 

(a)        Borrower is in complete compliance for the period ending
                     with all required covenants except as noted below; 

(b)        There are no Events of Default, except as noted below; 

(c)        Except as noted below, all representations and warranties of Borrower
stated in the Loan Documents are true and correct in all material respects on this date and for the period described in (a), above; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that
already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such
date. 
 (d)        Borrower, and each of Borrower’s Subsidiaries, has timely
filed, or filed for extensions, all required tax returns and reports, Borrower, and each of Borrower’s Subsidiaries, has timely paid all foreign, federal, state, and local taxes, assessments, deposits and contributions owed by Borrower, or
Subsidiary, except as otherwise permitted pursuant to the terms of Section 5.8 of the Loan Agreement; 

(e)        No Liens have been levied or claims made against Borrower or any of its
Subsidiaries relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Collateral Agent and the Lenders in accordance with the Loan Agreement. 

Attached are the required documents, if any, supporting our certification(s). The Officer, on behalf of Borrower, further certifies that the
attached financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and are consistently applied from one period to the next except as explained in an accompanying letter or footnotes and except, in the case
of unaudited financial statements, for the absence of footnotes and subject to year-end audit adjustments as to the interim financial statements. 

Please indicate compliance status since the last Compliance Certificate by circling Yes, No, or N/A under “Complies” column.

  

													
	 	    	Reporting Covenant	  	Requirement	  	Actual	  	Complies        
							
	 1)
	    	Financial statements	  	Quarterly within 30 days	  		  	 Yes
	  	 No
	  	 N/A

							
	 2)
	    	Annual (CPA Audited) statements	  	Within 180 days after FYE (or 5 days of filing with SEC)	  		  	 Yes
	  	 No
	  	 N/A

							
	 3)
	    	 Annual Financial

Projections/Budget (prepared on a monthly basis)
	  	Annually (within 7 days of Board approval; no later than 60 days of FYE), and when revised	  		  	 Yes
	  	 No
	  	 N/A










													
							
	 4)
	    	A/R & A/P agings	  	If applicable	  		  	 Yes
	  	 No
	  	 N/A

							
	 5)
	    	8-K, 10-K and 10-Q Filings	  	If applicable, within 5 days of filing	  		  	 Yes
	  	 No
	  	 N/A

							
	 6)
	    	Compliance Certificate	  	Quarterly within 30 days	  		  	 Yes
	  	 No
	  	 N/A

							
	 7)
	    	IP Report	  	When required	  		  	 Yes
	  	 No
	  	 N/A

							
	 8)
	    	Total amount of Borrower’s cash and cash equivalents at the last day of the measurement period	  		  	 $            
	  	 Yes
	  	 No
	  	 N/A

							
	 9)
	    	Total amount of Borrower’s Subsidiaries’ cash and cash equivalents at the last day of the measurement period	  		  	 $            
	  	 Yes
	  	 No
	  	 N/A


     Deposit and Securities Accounts 

    (Please list all accounts; attach separate sheet if additional space needed) 

 

													
	 	  	Institution Name	  	Account Number	  	New Account?	  	Account Control Agreement in place?
							
	 1)
	  		  		  	Yes	  	No	  	Yes	  	No
							
	 2)
	  		  		  	Yes	  	No	  	Yes	  	No
							
	 3)
	  		  		  	Yes	  	No	  	Yes	  	No
							
	 4)
	  		  		  	Yes	  	No	  	Yes	  	No

     Financial Covenants 

                          
      None 
     Other Matters 

 

							
	 1)
	    	 Have there been any changes in Key Persons since the last Compliance Certificate?
	  	Yes	  	No
				
	 2)
	    	 Have there been any transfers/sales/disposals/retirement of Collateral or IP prohibited by the Loan Agreement?
	  	Yes	  	No
				
	 3)
	    	 Have there been any new or pending claims or causes of action against Borrower that involve more than One Hundred Thousand Dollars ($100,000.00)?
	  	Yes	  	No
				
	 4)
	    	 Have there been any amendments of or other changes to the Operating Documents of Borrower or any of its Subsidiaries? If yes, provide copies of any such
amendments or changes with this Compliance Certificate.
	  	Yes	  	No








 Exceptions 

Please explain any exceptions with respect to the certification above: (If no exceptions exist, state “No exceptions.” Attach
separate sheet if additional space needed.) 
 SORRENTO THERAPEUTICS, INC., 

for itself and on behalf of each Borrower 
  

			
	 By
                                         
              

	 Name:
                                         
        

	 Title:
                                         
          

	
	 Date:
                                         
          


  

					
		  	LENDER USE ONLY	 	
			
		  	Received
by:                                        
        	 	Date:                      
			
		  	Verified
by:                                        
          	 	Date:                      
		
		  	Compliance Status:
              Yes                  No








 EXHIBIT D 

Form of Secured Promissory Note 

[see attached] 







 [AMENDED AND RESTATED] SECURED PROMISSORY NOTE 

(Term Loan) 

$[                         
   ] 
 Dated: March 31, 2014 

FOR VALUE RECEIVED, the undersigned, SORRENTO THERAPEUTICS, INC., a Delaware corporation, IGDRASOL, INC., a Delaware
corporation, and SHERRINGTON PHARMACEUTICALS, INC., each with offices located at 6042 Cornerstone Court, Suite B, San Diego, CA 92121, CONCORTIS BIOSYSTEMS, CORP., a Delaware corporation (“Concortis”), with offices located at 11760
Sorrento Valley Road, Suite N, San Diego, CA 92121, and ARK ANIMAL THERAPEUTICS, INC., a Delaware corporation, with offices located at [ADDRESS] (jointly and severally, collectively, “Borrower”) HEREBY PROMISE TO PAY to the order of
[OXFORD FINANCE LLC][SILICON VALLEY BANK] (“Lender”) the principal amount of [                    ] Dollars
($[                    ]) or such lesser amount as shall equal the outstanding principal balance of the Term Loan made to Borrower by Lender,
plus interest on the aggregate unpaid principal amount of such Term Loan, at the rates and in accordance with the terms of the Amended and Restated Loan and Security Agreement dated March 31, 2014 by and among Borrower, Lender, Oxford Finance
LLC, as Collateral Agent, and the other Lenders from time to time party thereto (as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”). If not sooner paid, the entire principal amount and
all accrued and unpaid interest hereunder shall be due and payable on the Maturity Date as set forth in the Loan Agreement. Any capitalized term not otherwise defined herein shall have the meaning attributed to such term in the Loan Agreement. 

Principal, interest and all other amounts due with respect to the Term Loan, are payable in lawful money of the United States of America to
Lender as set forth in the Loan Agreement and this Secured Promissory Note (this “Note”). The principal amount of this Note and the interest rate applicable thereto, and all payments made with respect thereto, shall be recorded by
Lender and, prior to any transfer hereof, endorsed on the grid attached hereto which is part of this Note. 
 The Loan Agreement, among
other things, (a) provides for the making of a secured Term Loan by Lender to Borrower, and (b) contains provisions for acceleration of the maturity hereof upon the happening of certain stated events. 

This Note may not be prepaid except as set forth in Section 2.2(c) and Section 2.2(d) of the Loan Agreement. 

This Note and the obligation of Borrower to repay the unpaid principal amount of the Term Loan, interest on the Term Loan and all other
amounts due Lender under the Loan Agreement is secured under the Loan Agreement. 
 Presentment for payment, demand, notice of protest and
all other demands and notices of any kind in connection with the execution, delivery, performance and enforcement of this Note are hereby waived. 

Borrower shall pay all reasonable fees and expenses, including, without limitation, reasonable attorneys’ fees and costs, incurred by
Lender in the enforcement or attempt to enforce any of Borrower’s obligations hereunder not performed when due. 
 This Note shall be
governed by, and construed and interpreted in accordance with, the internal laws of the State of California. 
 The ownership of an interest
in this Note shall be registered on a record of ownership maintained by Lender or its agent. Notwithstanding anything else in this Note to the contrary, the right to the principal of, and stated interest on, this Note may be transferred only if the
transfer is registered on such record of ownership and the transferee is identified as the owner of an interest in the obligation. Borrower shall be entitled to treat the registered holder of this Note (as recorded on such record of ownership) as
the owner in fact thereof for all purposes and shall not be bound to recognize any equitable or other claim to or interest in this Note on the part of any other person or entity. 







 [Except as otherwise set forth herein, this Amended and Restated Secured Promissory Note is
intended to and does completely amend and restate, without novation, that certain Secured Promissory Note issued February 3, 2014, by Sorrento Therapeutics, Inc., IgDraSol, Inc., Sherrington Pharmaceuticals, Inc. and Concortis Biosystems, Corp.
in favor of Lender.] 
 [Balance of Page Intentionally Left Blank] 







 IN WITNESS WHEREOF, Borrower has caused this Note to be duly executed by one of
its officers thereunto duly authorized on the date hereof. 
  

			
	 BORROWER:

	
	 SORRENTO THERAPEUTICS, INC.

		
	 By
	 	 


 
			
	 Name:
	 	 


 
			
	 Title:
	 	 



 

			
	 IGDRASOL, INC.

		
	 By
	 	 


 
			
	 Name:
	 	 


 
			
	 Title:
	 	 



 

			
	 SHERRINGTON PHARMACEUTICALS, INC.

		
	 By
	 	 


 
			
	 Name:
	 	 


 
			
	 Title:
	 	 



 

			
	 CONCORTIS BIOSYSTEMS, CORP.

		
	 By
	 	 


 
			
	 Name:
	 	 


 
			
	 Title:
	 	 



 

			
	 ARK ANIMAL THERAPEUTICS, INC.

		
	 By
	 	 


 
			
	 Name:
	 	 


 
			
	 Title:
	 	 









 LOAN INTEREST RATE AND PAYMENTS OF PRINCIPAL 

 

									
	 Date
	  	 Principal

Amount
	  	 Interest Rate
	  	 Scheduled

Payment Amount
	  	 Notation By









 CORPORATE BORROWING CERTIFICATE 

 

					
	 BORROWER:
	    	SORRENTO THERAPEUTICS, INC.	  	DATE: March 31, 2014
	 LENDERS:
	    	OXFORD FINANCE LLC, as Collateral Agent and Lender	  	
		    	SILICON VALLEY BANK, as Lender	  	

 I hereby certify as follows, as of the date set forth above: 

1.         I am the Secretary, Assistant Secretary or other officer of Borrower. My title is as set
forth below. 
 2.         Borrower’s exact legal name is set forth above. Borrower is a
corporation existing under the laws of the State of Delaware. 
 3.         Attached hereto as
Exhibit A and Exhibit B, respectively, are true, correct and complete copies of (i) Borrower’s Certificate of Incorporation (including amendments), as filed with the Secretary of State of the state in which Borrower
is incorporated as set forth in paragraph 2 above; and (ii) Borrower’s Bylaws, as amended. Neither such Certificate of Incorporation nor such Bylaws have been amended, annulled, rescinded, revoked or supplemented, and such Certificate of
Incorporation and such Bylaws remain in full force and effect as of the date hereof. 
 4.
        The following resolutions were duly and validly adopted by Borrower’s Board of Directors at a duly held meeting of such directors (or pursuant to a unanimous written consent or other authorized
corporate action). Such resolutions are in full force and effect as of the date hereof and have not been in any way modified, repealed, rescinded, amended or revoked, and the Lenders may rely on them until each Lender receives written notice of
revocation from Borrower. 
 [Balance of Page Intentionally Left Blank] 







 RESOLVED, that any
one of the following officers or employees of Borrower, whose names, titles and signatures are below, may act on behalf of Borrower: 
  

							
	 Name
	  	 Title
	  	 Signature
	  	 Authorized to

Add or Remove

Signatories

				
	  
	  	  
	  	  
	  	 ̈
				
	  
	  	  
	  	  
	  	 ̈
				
	  
	  	  
	  	  
	  	 ̈
				
	  
	  	  
	  	  
	  	 ̈

 RESOLVED
FURTHER, that any one of the persons designated above with a checked box beside his or her name may, from time to time, add or remove any individuals to and from the above list of persons
authorized to act on behalf of Borrower. 
 RESOLVED
FURTHER, that such individuals may, on behalf of Borrower: 

Borrow Money.    Borrow money from the Lenders pursuant to the terms of
the Amended and Restated Loan and Security Agreement dated as of March 31, 2014, by and among Borrower and Lenders. 

Execute Loan Documents.    Execute any loan documents relating to the Loan
Agreement any Lender requires. 
 Grant Security.    Grant Collateral
Agent a security interest in the Collateral under the Loan Agreement. 
 Negotiate
Items.    Negotiate or discount all drafts, trade acceptances, promissory notes, or other indebtedness in which Borrower has an interest and receive cash or otherwise use the proceeds. 

Issue Warrants.    Issue warrants for Borrower’s capital stock. 

Further Acts.    Designate other individuals to request advances, pay fees and
costs and execute other documents or agreements (including documents or agreement that waive Borrower’s right to a jury trial) they believe to be necessary to effectuate such resolutions. 

RESOLVED FURTHER, that all acts authorized by the above resolutions
and any prior acts relating thereto are ratified. 
 [Balance of Page Intentionally Left Blank] 







 5.         The persons listed above are Borrower’s
officers or employees with their titles and signatures shown next to their names. 
  

			
	By:                                   
                                         
    
	
	Name:                                   
                                       

	
	Title:                                  
                                         
 


 *** If the Secretary, Assistant Secretary or other certifying officer executing above is designated
by the resolutions set forth in paragraph 4 as one of the authorized signing officers, this Certificate must also be signed by a second authorized officer or director of Borrower. 

I, the
                                         
            of Borrower, hereby certify as to paragraphs 1 through 5 above, as of the date set forth above. 

                        
                [print title] 
  

			
	By:                                   
                                         
    
	
	Name:                                   
                                       

	
	Title:                                  
                                         
 


 [Signature Page to Corporate Borrowing Certificate] 

[Sorrento Therapeutics, Inc.] 







 EXHIBIT A 

Certificate of Incorporation (including amendments) 

[see attached] 







 EXHIBIT B 

Bylaws 
 [see
attached] 







 CORPORATE BORROWING CERTIFICATE 

 

							
	 BORROWER:
	    	IGDRASOL, INC.	  	 	DATE: March 31, 2014	  
	 LENDERS:
	    	OXFORD FINANCE LLC, as Collateral Agent and Lender	  			
		    	SILICON VALLEY BANK, as Lender	  			

 I hereby certify as follows, as of the date set forth above: 

1.          I am the Secretary, Assistant Secretary or other officer of Borrower. My title is as set
forth below. 
 2.          Borrower’s exact legal name is set forth above. Borrower is a
corporation existing under the laws of the State of Delaware. 
 3.          Attached hereto as
Exhibit A and Exhibit B, respectively, are true, correct and complete copies of (i) Borrower’s Certificate of Incorporation (including amendments), as filed with the Secretary of State of the state in which Borrower
is incorporated as set forth in paragraph 2 above; and (ii) Borrower’s Bylaws, as amended. Neither such Certificate of Incorporation nor such Bylaws have been amended, annulled, rescinded, revoked or supplemented, and such Certificate of
Incorporation and such Bylaws remain in full force and effect as of the date hereof. 
 4.         
The following resolutions were duly and validly adopted by Borrower’s Board of Directors at a duly held meeting of such directors (or pursuant to a unanimous written consent or other authorized corporate action). Such resolutions are in full
force and effect as of the date hereof and have not been in any way modified, repealed, rescinded, amended or revoked, and the Lenders may rely on them until each Lender receives written notice of revocation from Borrower. 

[Balance of Page Intentionally Left Blank] 







 RESOLVED, that any
one of the following officers or employees of Borrower, whose names, titles and signatures are below, may act on behalf of Borrower: 
  

							
	Name	  	Title	  	Signature	  	Authorized to
Add or Remove
Signatories
				
	  

 
	  	  

 
	  	  

 
	  	 ̈
				
	  

 
	  	  

 
	  	  

 
	  	 ̈
				
	  

 
	  	  

 
	  	  

 
	  	 ̈
				
	  

 
	  	  

 
	  	  

 
	  	 ̈

 RESOLVED
FURTHER, that any one of the persons designated above with a checked box beside his or her name may, from time to time, add or remove any individuals to and from the above list of persons
authorized to act on behalf of Borrower. 
 RESOLVED FURTHER, that
such individuals may, on behalf of Borrower: 
 Borrow Money.    Borrow money
from the Lenders pursuant to the terms of the Amended and Restated Loan and Security Agreement dated as of March 31, 2014, by and among Borrower and Lenders. 

Execute Loan Documents.    Execute any loan documents relating to the Loan
Agreement any Lender requires. 
 Grant Security.     Grant Collateral Agent a
security interest in the Collateral in the Loan Agreement. 
 Negotiate
Items.    Negotiate or discount all drafts, trade acceptances, promissory notes, or other indebtedness in which Borrower has an interest and receive cash or otherwise use the proceeds. 

Further Acts.    Designate other individuals to request advances, pay fees and
costs and execute other documents or agreements (including documents or agreement that waive Borrower’s right to a jury trial) they believe to be necessary to effectuate such resolutions. 

RESOLVED FURTHER, that all acts authorized by the above resolutions
and any prior acts relating thereto are ratified. 
 [Balance of Page Intentionally Left Blank] 







 5.          The persons listed above are Borrower’s
officers or employees with their titles and signatures shown next to their names. 
  

			
	By:                                   
                                         
    
	
	Name:                                   
                                       

	
	Title:                                  
                                         
 


 *** If the Secretary, Assistant Secretary or other certifying officer executing above is designated
by the resolutions set forth in paragraph 4 as one of the authorized signing officers, this Certificate must also be signed by a second authorized officer or director of Borrower. 

I, the
                                         
            of Borrower, hereby certify as to paragraphs 1 through 5 above, as of the date set forth above. 

                          
              [print title] 
  

			
	By:                                   
                                         
    
	
	Name:                                   
                                       

	
	Title:                                  
                                         
 


 [Signature Page to Corporate Borrowing Certificate]

 [IgDraSol, Inc.] 







 EXHIBIT A 

Certificate of Incorporation (including amendments) 

[see attached] 







 EXHIBIT B 

Bylaws 
 [see
attached] 







 CORPORATE BORROWING CERTIFICATE 

 

							
	 BORROWER:
	    	SHERRINGTON PHARMACEUTICALS, INC.	  	 	DATE: March 31, 2014	  
	 LENDERS:
	    	OXFORD FINANCE LLC, as Collateral Agent and Lender	  			
		    	SILICON VALLEY BANK, as Lender	  			

 I hereby certify as follows, as of the date set forth above: 

1.          I am the Secretary, Assistant Secretary or other officer of Borrower. My title is as set
forth below. 
 2.          Borrower’s exact legal name is set forth above. Borrower is a
corporation existing under the laws of the State of Delaware. 
 3.          Attached hereto as
Exhibit A and Exhibit B, respectively, are true, correct and complete copies of (i) Borrower’s Certificate of Incorporation (including amendments), as filed with the Secretary of State of the state in which Borrower
is incorporated as set forth in paragraph 2 above; and (ii) Borrower’s Bylaws, as amended. Neither such Certificate of Incorporation nor such Bylaws have been amended, annulled, rescinded, revoked or supplemented, and such Certificate of
Incorporation and such Bylaws remain in full force and effect as of the date hereof. 
 4.         
The following resolutions were duly and validly adopted by Borrower’s Board of Directors at a duly held meeting of such directors (or pursuant to a unanimous written consent or other authorized corporate action). Such resolutions are in full
force and effect as of the date hereof and have not been in any way modified, repealed, rescinded, amended or revoked, and the Lenders may rely on them until each Lender receives written notice of revocation from Borrower. 

[Balance of Page Intentionally Left Blank] 







 RESOLVED, that any
one of the following officers or employees of Borrower, whose names, titles and signatures are below, may act on behalf of Borrower: 
  

							
	Name	  	Title	  	Signature	  	Authorized to
Add or Remove
Signatories
				
	  

 
	  	  

 
	  	  

 
	  	 ̈
				
	  

 
	  	  

 
	  	  

 
	  	 ̈
				
	  

 
	  	  

 
	  	  

 
	  	 ̈
				
	  

 
	  	  

 
	  	  

 
	  	 ̈

 RESOLVED FURTHER, that any one
of the persons designated above with a checked box beside his or her name may, from time to time, add or remove any individuals to and from the above list of persons authorized to act on behalf of Borrower. 

RESOLVED FURTHER, that such individuals may, on behalf of Borrower:

 Borrow Money.    Borrow money from the Lenders pursuant to the terms of the
Amended and Restated Loan and Security Agreement dated as of March 31, 2014, by and among Borrower and Lenders. 

Execute Loan Documents.    Execute any loan documents relating to the Loan
Agreement any Lender requires. 
 Grant Security.     Grant Collateral Agent a
security interest in the Collateral in the Loan Agreement. 
 Negotiate
Items.    Negotiate or discount all drafts, trade acceptances, promissory notes, or other indebtedness in which Borrower has an interest and receive cash or otherwise use the proceeds. 

Further Acts.    Designate other individuals to request advances, pay fees and
costs and execute other documents or agreements (including documents or agreement that waive Borrower’s right to a jury trial) they believe to be necessary to effectuate such resolutions. 

RESOLVED FURTHER, that all acts authorized by the above resolutions
and any prior acts relating thereto are ratified. 
 [Balance of Page Intentionally Left Blank] 







 5.          The persons listed above are Borrower’s
officers or employees with their titles and signatures shown next to their names. 
  

			
	By:                                   
                                         
    
	
	Name:                                   
                                       

	
	Title:                                  
                                         
 


 *** If the Secretary, Assistant Secretary or other certifying officer executing above is designated
by the resolutions set forth in paragraph 4 as one of the authorized signing officers, this Certificate must also be signed by a second authorized officer or director of Borrower. 

I, the
                                         
            of Borrower, hereby certify as to paragraphs 1 through 5 above, as of the date set forth above. 

                          
              [print title] 
  

			
	By:                                   
                                         
    
	
	Name:                                   
                                       

	
	Title:                                  
                                         
 


 [Signature Page to Corporate Borrowing Certificate]

 [Sherrington Pharmaceuticals, Inc.] 







 EXHIBIT A 

Certificate of Incorporation (including amendments) 

[see attached] 







 EXHIBIT B 

Bylaws 
 [see
attached] 







 CORPORATE BORROWING CERTIFICATE 

 

							
	 BORROWER:
	    	CONCORTIS BIOSYSTEMS, CORP.	  	 	DATE: March 31, 2014	  
	 LENDERS:
	    	OXFORD FINANCE LLC, as Collateral Agent and Lender	  			
		    	SILICON VALLEY BANK, as Lender	  			

 I hereby certify as follows, as of the date set forth above: 

1.          I am the Secretary, Assistant Secretary or other officer of Borrower. My title is as set
forth below. 
 2.          Borrower’s exact legal name is set forth above. Borrower is a
corporation existing under the laws of the State of Delaware. 
 3.          Attached hereto as
Exhibit A and Exhibit B, respectively, are true, correct and complete copies of (i) Borrower’s Certificate of Incorporation (including amendments), as filed with the Secretary of State of the state in which Borrower
is incorporated as set forth in paragraph 2 above; and (ii) Borrower’s Bylaws, as amended. Neither such Certificate of Incorporation nor such Bylaws have been amended, annulled, rescinded, revoked or supplemented, and such Certificate of
Incorporation and such Bylaws remain in full force and effect as of the date hereof. 
 4.         
The following resolutions were duly and validly adopted by Borrower’s Board of Directors at a duly held meeting of such directors (or pursuant to a unanimous written consent or other authorized corporate action). Such resolutions are in full
force and effect as of the date hereof and have not been in any way modified, repealed, rescinded, amended or revoked, and the Lenders may rely on them until each Lender receives written notice of revocation from Borrower. 

[Balance of Page Intentionally Left Blank] 







 RESOLVED, that any
one of the following officers or employees of Borrower, whose names, titles and signatures are below, may act on behalf of Borrower: 
  

							
	Name	  	Title	  	Signature	  	Authorized to
Add or Remove
Signatories
				
	  

 
	  	  

 
	  	  

 
	  	 ̈
				
	  

 
	  	  

 
	  	  

 
	  	 ̈
				
	  

 
	  	  

 
	  	  

 
	  	 ̈
				
	  

 
	  	  

 
	  	  

 
	  	 ̈

 RESOLVED FURTHER, that any one
of the persons designated above with a checked box beside his or her name may, from time to time, add or remove any individuals to and from the above list of persons authorized to act on behalf of Borrower. 

RESOLVED FURTHER, that such individuals may, on behalf of Borrower:

 Borrow Money.    Borrow money from the Lenders pursuant to the terms of the
Amended and Restated Loan and Security Agreement dated as of March 31, 2014, by and among Borrower and Lenders. 

Execute Loan Documents.    Execute any loan documents relating to the Loan
Agreement any Lender requires. 
 Grant Security.     Grant Collateral Agent a
security interest in the Collateral in the Loan Agreement. 
 Negotiate
Items.    Negotiate or discount all drafts, trade acceptances, promissory notes, or other indebtedness in which Borrower has an interest and receive cash or otherwise use the proceeds. 

Further Acts.    Designate other individuals to request advances, pay fees and
costs and execute other documents or agreements (including documents or agreement that waive Borrower’s right to a jury trial) they believe to be necessary to effectuate such resolutions. 

RESOLVED FURTHER, that all acts authorized by the above resolutions
and any prior acts relating thereto are ratified. 
 [Balance of Page Intentionally Left Blank] 







 5.         The persons listed above are Borrower’s
officers or employees with their titles and signatures shown next to their names. 
  

			
	By:                                   
                                         
    
	
	Name:                                   
                                       

	
	Title:                                  
                                         
 


 *** If the Secretary, Assistant Secretary or other certifying officer executing above is designated
by the resolutions set forth in paragraph 4 as one of the authorized signing officers, this Certificate must also be signed by a second authorized officer or director of Borrower. 

I, the
                                         
            of Borrower, hereby certify as to paragraphs 1 through 5 above, as of the date set forth above. 

                        
                [print title] 
  

			
	By:                                   
                                         
    
	
	Name:                                   
                                       

	
	Title:                                  
                                         
 


 [Signature Page to Corporate Borrowing Certificate] 

[Concortis Biosystems, Corp.] 







 EXHIBIT A  

Certificate of Incorporation (including amendments) 

[see attached] 







 EXHIBIT B  

Bylaws 
 [see
attached] 







 CORPORATE BORROWING CERTIFICATE 

 

					
	 BORROWER:
	    	 ARK ANIMAL THERAPEUTICS, INC.
	  	 DATE: March 31, 2014

	 LENDERS:
	    	 OXFORD FINANCE LLC, as Collateral Agent and Lender
	  	
		    	 SILICON VALLEY BANK, as Lender
	  	

 I hereby certify as follows, as of the date set forth above: 

1.        I am the Secretary, Assistant Secretary or other officer of Borrower. My title is as set
forth below. 
 2.        Borrower’s exact legal name is set forth above. Borrower is a
corporation existing under the laws of the State of Delaware. 
 3.        Attached hereto as
Exhibit A and Exhibit B, respectively, are true, correct and complete copies of (i) Borrower’s Certificate of Incorporation (including amendments), as filed with the Secretary of State of the state in which Borrower
is incorporated as set forth in paragraph 2 above; and (ii) Borrower’s Bylaws, as amended. Neither such Certificate of Incorporation nor such Bylaws have been amended, annulled, rescinded, revoked or supplemented, and such Certificate of
Incorporation and such Bylaws remain in full force and effect as of the date hereof. 

4.        The following resolutions were duly and validly adopted by Borrower’s Board of
Directors at a duly held meeting of such directors (or pursuant to a unanimous written consent or other authorized corporate action). Such resolutions are in full force and effect as of the date hereof and have not been in any way modified,
repealed, rescinded, amended or revoked, and the Lenders may rely on them until each Lender receives written notice of revocation from Borrower. 

[Balance of Page Intentionally Left Blank] 







 RESOLVED, that any one of the
following officers or employees of Borrower, whose names, titles and signatures are below, may act on behalf of Borrower: 
  

							
	Name	  	Title	  	Signature	  	Authorized to
Add or Remove
Signatories
				
	  

 
	  	  

 
	  	  

 
	  	 ̈
				
	  

 
	  	  

 
	  	  

 
	  	 ̈
				
	  

 
	  	  

 
	  	  

 
	  	 ̈
				
	  

 
	  	  

 
	  	  

 
	  	 ̈

 RESOLVED FURTHER, that any one
of the persons designated above with a checked box beside his or her name may, from time to time, add or remove any individuals to and from the above list of persons authorized to act on behalf of Borrower. 

RESOLVED FURTHER, that such individuals may, on behalf of Borrower:

 Borrow Money.    Borrow money from the Lenders pursuant to the terms of the
Amended and Restated Loan and Security Agreement dated as of March 31, 2014, by and among Borrower and Lenders. 

Execute Loan Documents.    Execute any loan documents relating to the Loan
Agreement any Lender requires. 
 Grant Security.     Grant Collateral Agent a
security interest in the Collateral in the Loan Agreement. 
 Negotiate
Items.    Negotiate or discount all drafts, trade acceptances, promissory notes, or other indebtedness in which Borrower has an interest and receive cash or otherwise use the proceeds. 

Further Acts.    Designate other individuals to request advances, pay fees and
costs and execute other documents or agreements (including documents or agreement that waive Borrower’s right to a jury trial) they believe to be necessary to effectuate such resolutions. 

RESOLVED FURTHER, that all acts authorized by the above resolutions
and any prior acts relating thereto are ratified. 
 [Balance of Page Intentionally Left Blank] 







 5.          The persons listed above are Borrower’s
officers or employees with their titles and signatures shown next to their names. 
  

			
	By:                                   
                                         
    
	
	Name:                                   
                                       

	
	Title:                                  
                                         
 


 *** If the Secretary, Assistant Secretary or other certifying officer executing above is designated
by the resolutions set forth in paragraph 4 as one of the authorized signing officers, this Certificate must also be signed by a second authorized officer or director of Borrower. 

I, the
                                         
            of Borrower, hereby certify as to paragraphs 1 through 5 above, as of the date set forth above. 

                          
              [print title] 
  

			
	By:                                   
                                         
    
	
	Name:                                   
                                       

	
	Title:                                  
                                         
 


 [Signature Page to Corporate Borrowing Certificate]

 [Ark Animal Therapeutics, Inc.] 







 EXHIBIT A 

Certificate of Incorporation (including amendments) 

[see attached] 







 EXHIBIT B 

Bylaws 
 [see
attached] 








			
	 DEBTOR:
	    	[SORRENTO THERAPEUTICS, INC.][IGDRASOL, INC.][SHERRINGTON PHARMACEUTICALS, INC.][CONCORTIS BIOSYSTEMS, CORP.][ARK ANIMAL THERAPEUTICS, INC.]
		
	 SECURED PARTY:
	    	OXFORD FINANCE LLC, As Collateral Agent

 EXHIBIT A TO UCC FINANCING STATEMENT 

Description of Collateral 
 The
Collateral consists of all of Debtor’s right, title and interest in and to the following personal property: 
 All
goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases, license agreements, franchise agreements, General Intangibles (except as noted
below), commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts and other Collateral Accounts, all certificates of deposit, fixtures, letters of credit
rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and 

All Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all
substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing. 

Notwithstanding the foregoing, the Collateral does not include (i) any Intellectual Property; provided, however, the
Collateral shall include all Accounts and all proceeds of Intellectual Property. If a judicial authority (including a U.S. Bankruptcy Court) would hold that a security interest in the underlying Intellectual Property is necessary to have a security
interest in such Accounts and such property that are proceeds of Intellectual Property, then the Collateral shall automatically, and effective as of the Effective Date, include the Intellectual Property to the extent necessary to permit perfection
of Collateral Agent’s security interest in such Accounts and such other property of Borrower that are proceeds of the Intellectual Property; and (ii) more than 65% of the total combined voting power of all classes of stock entitled to vote
the shares of capital stock (the “Shares”) of (x) Sorrento HK; and (y) any Foreign Subsidiary, if Borrower demonstrates to Collateral Agent’s reasonable satisfaction that a pledge of more than sixty five percent
(65%) of the Shares of such Subsidiary creates a present and existing adverse tax consequence to Borrower under the U.S. Internal Revenue Code. 

Pursuant to the terms of a certain negative pledge arrangement with Collateral Agent and the Lenders, Borrower has agreed not
to encumber any of its Intellectual Property. 
 Capitalized terms used but not defined herein have the meanings ascribed in the Uniform
Commercial Code in effect in the State of California as in effect from time to time (the “Code”) or, if not defined in the Code, then in the Amended and Restated Loan and Security Agreement by and between Debtor, Secured Party and the
other Lenders party thereto (as modified, amended and/or restated from time to time).