Execution
Copy


 


LOAN
AND SECURITY AGREEMENT


 


Dated
as of November 30, 2021


 


between


 


BIOVIE
INC.


a
Nevada corporation,


 


as
“Borrower”,


 


and


 


AVENUE
VENTURE OPPORTUNITIES FUND II, L.P.,


a
Delaware limited partnership (“AVOF 2”),


as
a lender


 


and


 


AVENUE
VENTURE OPPORTUNITIES FUND, L.P.,


a
Delaware limited partnership (“Avenue“)


as
administrative agent and collateral agent (in such capacity “Agent”)


and
as a lender (in such capacity, together with AVOF 2, a “Lender” and collectively, the “Lenders”)




     


     


    

LOAN
AND SECURITY AGREEMENT


 


This
Loan and Security Agreement dated as of November 30, 2021 is by and between Borrower (as defined in the Supplement (as defined below)),
Agent (as defined in the Supplement (as defined below)) and Lender (as defined in the Supplement (as defined below)) (as amended, amended
and restated, supplemented, or otherwise modified from time to time, the “Loan Agreement”) pursuant to which
Lender agrees to make available to Borrower a loan facility governed by the terms and conditions set forth in this Loan Agreement and
one or more Supplements executed by Borrower and Lender which incorporate this Loan Agreement by reference. Each Supplement constitutes
a supplement to and forms part of this Loan Agreement, and will be read and construed as one with this Loan Agreement, so that this Loan
Agreement and any Supplement constitute a single agreement between the parties (this Loan Agreement and the Supplement, each as amended,
amended and restated, supplemented, or otherwise modified from time to time are collectively referred to as this “Agreement”).


 


Accordingly,
the parties agree as follows:


 





ARTICLE
1 - INTERPRETATION


 


1.1       Definitions.
The terms defined in Article 11 and in the Supplement will have the meanings therein specified for purposes of this Agreement.


 


1.2       Inconsistency.
In the event of any inconsistency between the provisions of any Supplement and this Loan Agreement, the provisions of the Supplement
will be controlling for the purpose of all relevant transactions.


 


ARTICLE
2 - THE COMMITMENT AND LOANS


 


2.1       The
Commitment. Subject to the terms and conditions of this Agreement, each Lender agrees to make term loans to Borrower from time to
time from the Closing Date and to and including the Termination Date in an aggregate principal amount not exceeding the Commitment. The
Commitment is not a revolving credit commitment, and Borrower does not have the right to reborrow Loans repaid hereunder. Each Loan requested
by Borrower to be made on a single Business Day shall be for a minimum principal amount set forth in the Supplement, except to the extent
the remaining Commitment is a lesser amount.


 


2.2       Notes
Evidencing Loans; Repayment. Each Loan shall be evidenced by a separate Note payable to the order of each Lender, in the total principal
amount of such Lender’s pro rata share of the Loan. Principal and interest of each Loan shall be payable at the times and in the
manner set forth in the Note and regularly scheduled payments thereof shall be effected by automatic debit of the appropriate funds from
Borrower’s Primary Operating Account as specified in the Supplement hereto. Repayment of the Loans and payment of all other amounts
owed to each Lender will be paid by Borrower in the currency in which the same has been provided (i.e., United States Dollars).






2.3       Procedures
for Borrowing.


 


(a)       At
least five (5) Business Days prior to a proposed Borrowing Date following the Closing Date (or such lesser period of time as may be agreed
upon by Lender in its sole discretion), each Lender participating in the Loan shall have received from Borrower a written request for
a borrowing hereunder (a “Borrowing Request”). Each Borrowing Request shall be in substantially the form of
Exhibit “B” to the Supplement, shall be executed by a responsible executive or financial officer of Borrower, and
shall state how much is requested, and shall be accompanied by such other information and documentation as Lenders may reasonably request,
including the executed Note(s) for the Loan(s) covered by the Borrowing Request. Notwithstanding the foregoing, the Borrowing Request
with respect to the initial borrowing on the Closing Date shall be due no later than 1:00 p.m. Pacific Standard Time one (1) Business
Day prior to the Closing Date.


 


(b)       No
later than 1:00 p.m. Pacific Standard Time on the Borrowing Date, if Borrower has satisfied the conditions precedent in Article 4 by
9:00 a.m. Pacific Standard Time on such Borrowing Date, each Lender shall make its pro rata share of the Loan available to Borrower in
immediately available funds.


 


2.4       Interest.
Except as otherwise specified in the applicable Note and/or Supplement, Basic Interest on the outstanding principal balance of each Loan
shall accrue daily at the Designated Rate from the Borrowing Date. If the outstanding principal balance of such Loan is not paid at maturity,
interest shall accrue at the Default Rate until paid in full, as further set forth herein.


 


2.5       Intentionally
Omitted.


 

2.6       Interest
Rate Calculation. Basic Interest, along with charges and fees under this Agreement and any 









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Loan Document, shall be calculated for
actual days elapsed on the basis of a 360-day year, which results in higher interest, charge or fee payments than if a 365-day year were
used. In no event shall Borrower be obligated to pay Lenders interest, charges or fees at a rate in excess of the highest rate permitted
by applicable law from time to time in effect.


 


2.7       Default
Interest. Any Obligations that are not paid when due and payable hereunder (after giving effect to any applicable grace periods)
shall bear interest from their respective maturities, whether scheduled or accelerated, at the Default Rate, compounded monthly. Borrower
shall pay such interest on demand.


 


2.8       Late
Charges. If Borrower is late in making any scheduled payment in respect of the Obligations by more than five (5) days, then Borrower
agrees to pay a late charge of five percent (5%) of the payment due, but not less than $50.00 for any one such delinquent payment. This
late charge may be charged by Lenders for the purpose of defraying the expenses incidental to the handling of such delinquent amounts.
Borrower acknowledges that such late charge represents a reasonable sum considering all of the circumstances existing on the date of
this Agreement and represents a fair and reasonable estimate of the costs that will be sustained by Lenders due to the failure of Borrower
to make timely payments. Borrower further agrees that proof of actual damages would be costly and inconvenient. Such late charge shall
be paid without prejudice to the right of Lenders and Agent to collect any other amounts provided to be paid or to declare a default
under this Agreement or any of the other Loan Documents or from exercising any other rights and remedies of Agent or Lenders.


 


2.9       Lender’s
Records. Principal, Basic Interest and all other sums owed under any Loan Document shall be evidenced by entries in records maintained
by each Lender for such purpose. Each payment on and any other credits with respect to principal, Basic Interest and all other sums outstanding
under any Loan Document shall be evidenced by entries in such records. Absent manifest error, Lenders’ records shall be conclusive
evidence thereof.


 


2.10       Grant
of Security Interests; Filing of Financing Statements. 


 


(a)       To
secure the timely payment and performance of all of Borrower’s Obligations, Borrower hereby grants Agent, for the ratable benefit
of Lenders. continuing security interests in all of the Collateral. In connection with the foregoing, Borrower authorizes Agent to prepare
and file any financing statements describing
the Collateral






 without otherwise obtaining Borrower’s signature or consent with respect to the filing of such financing statements.
Such financing statements may indicate the Collateral as “all assets of the Debtor” or words of similar effect.


 


(b)       In
furtherance of Borrower’s grant of the security interests in the Collateral pursuant to Section 2.10(a) above, Borrower hereby
pledges and grants to Agent, for the ratable benefit of 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 Closing Date or at any time thereafter following Agent’s request, the certificate or certificates for the Shares will be
delivered to Agent, accompanied by an instrument of assignment duly executed in blank by Borrower, unless such Shares have not been certificated.
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, Agent may effect the transfer of any securities included in the Collateral (including but not limited
to the Shares) into the name of Agent and cause new certificates representing such securities to be issued in the name of Agent or its
transferee(s). Borrower will execute and deliver such documents, and take or cause to be taken such actions, as Agent may reasonably
request to perfect or continue the perfection of Agent’s security interest in the Shares. Except as provided in the following sentence,
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 constitute
a violation of any of the terms of this Agreement. All such rights to vote and give consents, waivers and ratifications shall terminate
upon the occurrence and continuance of an Event of Default and Agent’s written notice to Borrower of Agent’s intent to exercise
its rights and remedies under this Agreement, including this Section 2.10(b).


 


(c)       Borrower
is and shall remain absolutely and unconditionally liable for the performance of its Obligations, including, without limitation, any
deficiency by reason of the failure of the Collateral to satisfy all amounts due to each Lender under any of the Loan Documents.


 


(d)       All
Collateral pledged by Borrower under this Agreement and any Supplement shall secure the timely









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timely payment and performance of all Obligations.
Except as expressly provided in this Agreement, no Collateral pledged under this Agreement or any Supplement shall be released (other
than the sale or distribution of Collateral in the ordinary course of business and as otherwise permitted hereunder) until such time
as all Obligations have been satisfied and paid in full (other than inchoate indemnity obligations).


 


ARTICLE
3 - REPRESENTATIONS AND WARRANTIES


 


Borrower
represents and warrants as of the Closing Date and each Borrowing Date, that, except as set forth in any Supplement or the Disclosure
Letter, if any:


 


3.1       Due
Organization. Borrower is a corporation duly organized and validly existing in good standing under the laws of the jurisdiction of
its incorporation, and is duly qualified to conduct business and is in good standing in each other jurisdiction in which its business
is conducted or its properties are located, except where the failure to be so qualified would not reasonably be expected to have a Material
Adverse Effect.


 


3.2       Authorization,
Validity and Enforceability. The execution, delivery and performance of all Loan Documents executed by Borrower are within Borrower’s
powers, have been duly authorized, and are not in conflict with Borrower’s certificate of incorporation or by-laws, or the terms
of any charter or other organizational document of Borrower, as amended from time to time; and all such Loan Documents constitute valid
and binding obligations of Borrower, enforceable in accordance with their terms (except as may be limited by bankruptcy, insolvency and
similar laws affecting the enforcement of creditors’ rights in general, and subject to general principles of equity).


 


3.3       Compliance
with Applicable Laws. Borrower has complied with all applicable licensing, permit and fictitious name requirements necessary to lawfully
conduct the business in which it is engaged, and to any sales, leases or the furnishing of services by Borrower, including without limitation
those requiring consumer or other disclosures, the noncompliance with which would have a Material Adverse Effect.


 


3.4       No
Conflict. The execution, delivery, and performance by Borrower of all Loan Documents are not in conflict with any applicable law, rule, regulation, order or directive, or any indenture, agreement, or undertaking to which Borrower is a party or by which Borrower may be bound or affected and to the extent that such conflict would reasonably be expected to have a Material Adverse Effect.  Without limiting the generality of the foregoing, 






the issuance of the Warrant and the grant of registration
rights in connection therewith do not violate any agreement or instrument by which Borrower is bound or require the consent of any holders
of Borrower’s securities other than consents which have been obtained prior to the Closing Date.


 


3.5       No
Litigation, Claims or Proceedings. There is no litigation, tax claim, proceeding or dispute pending, or, to the knowledge of Borrower,
threatened against or affecting Borrower, its property or the conduct of its business that, individually or in the aggregate, would reasonably
be expected to result in liability or damages to Borrower in excess of the Threshold Amount.


 


3.6       Correctness
of Financial Statements. Borrower’s financial statements (other than any projections which are subject to significant uncertainties
and contingencies) which have been delivered to Agent for distribution to Lenders fairly and accurately, in all material respects, reflect
Borrower’s financial condition in accordance with GAAP as of the latest date of such financial statements; and, since that date
there has been no Material Adverse Effect.


 


3.7       No
Subsidiaries. As of the Closing Date, Borrower is not a majority owner of any Subsidiary or in a control relationship with any other
business entity.


 


3.8       Environmental
Matters. To its knowledge after reasonable inquiry, Borrower has concluded that Borrower is in compliance with Environmental Laws,
except to the extent a failure to be in such compliance would not reasonably be expected to have a Material Adverse Effect.


 


3.9       No
Event of Default. No Default or Event of Default has occurred and is continuing.


 


3.10       Full
Disclosure. None of the representations or warranties made by Borrower in the Loan Documents as of the date such representations
and warranties are made or deemed made, and none of the written statements contained in any exhibit, report, statement or certificate
furnished by or on behalf of Borrower in connection with the Loan Documents (including disclosure materials delivered by or on behalf
of Borrower to Agent prior to the Closing Date or pursuant to Section 5.2 hereof, other than projections which are subject to significant
uncertainties and contingencies), taken as a whole and together with any supplements thereto, contains any untrue statement of a material
fact or omits any material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances
under which they are made, not misleading as of the time when made or delivered.









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3.11       Specific
Representations Regarding Collateral. 


 


(a)       Title.
Except for the security interests created by this Agreement and Permitted Liens, (i) Borrower is the legal and beneficial owner of
the Collateral, and (ii) the Collateral is subject to no Liens. Except as disclosed in the Disclosure Letter, there exist no prior assignments
or encumbrances of record with the U.S. Patent and Trademark Office or U.S. Copyright Office affecting any Collateral in favor of any
third party, other than Permitted Liens.


 


(b)       Rights
to Payment. The names of the obligors, amount owing to Borrower, due dates and all other information with respect to the Rights to
Payment are and will be correctly stated in all material respects in all Records applicable to such Rights to Payment. Borrower further
represents and warrants, to its knowledge, that each Person appearing to be obligated on a Right to Payment in excess of the Threshold
Amount has authority and capacity to contract and is bound as it appears to be.


 


(c)       Location
of Collateral. As of the Closing Date, Borrower’s chief executive office, Inventory, Records, Equipment, and any other offices
or places of business are located at the address(es) shown on the Supplement or the Perfection Certificate.


 


(d)       Business
Names. Other than its full corporate name, Borrower has not conducted business using any trade names or fictitious business names
except as shown on the Supplement or the Perfection Certificate.


 


3.12       Copyrights,
Patents, Trademarks and Licenses.


 


(a)       Borrower
owns or is licensed or otherwise has the right to use all of the patents, trademarks, service marks, trade names, copyrights, contractual
franchises, authorizations and other similar rights that are reasonably necessary for the operation of its business, without known conflict
with the rights of any other Person.


 


(b)       To
Borrower’s knowledge, no slogan or other advertising device, product, process, method, substance, part or other material now employed,
or now contemplated
to be employed, by Borrower infringes upon any rights held by any other Person.


 


(c)       No
claim or litigation regarding any of the foregoing is pending or, to Borrower’s knowledge, threatened, and, to Borrower’s
knowledge, no patent, invention, device, application, principle or any statute, law, rule, regulation, standard or code is pending or






proposed which, in either case, would reasonably be expected to have a Material Adverse Effect.


 


3.13       Regulatory
Compliance. Borrower has met the minimum funding requirements of ERISA with respect to any employee benefit plans subject to ERISA.
No event has occurred resulting from Borrower’s failure to comply with ERISA that is reasonably likely to result in Borrower’s
incurring any liability that would have a Material Adverse Effect. Borrower is not required to be registered as an “investment
company” or a company “controlled” by an “investment company” within the meaning of the Investment Company
Act of 1940. Borrower is not engaged principally, or as one of its important activities, in the business of extending credit for the
purpose of purchasing or carrying margin stock (within the meaning of Regulations T and U of the Board of Governors of the Federal Reserve
System). Borrower has complied in all material respects with all the provisions of the Federal Fair Labor Standards Act except to the
extent the failure to comply would reasonably be expected to have a Material Adverse Effect.


 


3.14       Shares.
Borrower has full power and authority to create a first priority 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 other
than the Warrant. The Shares have been and will be duly authorized and validly issued, and are fully paid and non-assessable other than
the Warrant. To Borrower’s knowledge, the Shares are not the subject of any present or threatened (in writing) suit, action, arbitration,
administrative or other proceeding, and Borrower knows of no reasonable grounds for the institution of any such proceedings.


 


3.15       Compliance
with Anti-Corruption Laws. Borrower has not taken any action that would cause a violation of any anti-corruption law, including but
not limited to, the Foreign Corrupt Practices Act, the United Kingdom Bribery Act, and all other applicable anti-corruption laws in each
case, in any material respects. Borrower, its employees, agents and representatives have not, directly or indirectly, offered, paid,
given, promised or authorized the payment of any money, gift or anything of value to any person acting in an official capacity for any
government department, agency or instrumentality, including state-owned or controlled companies or entities, and public international
organizations, as well as a political party or official thereof or candidate for political office except in compliance with applicable
law. None of Borrower’s principals or staff are officers, employees or 









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representatives of governments, government agencies, or
government-owned or controlled enterprises.


 


3.16       Survival.
The representations and warranties of Borrower as set forth in this Loan Agreement survive the execution and delivery of this Loan
Agreement.


 


ARTICLE
4 - CONDITIONS PRECEDENT


 


4.1       Conditions
to First Loan. The obligation of each Lender to make its first Loan hereunder is, in addition to the conditions precedent specified
in Section 4.2 and in any Supplement, subject to the fulfillment of the following conditions and to the receipt by Lenders of the documents
described below, duly executed and in form and substance satisfactory to each Lender and its counsel:


 


(a)       Resolutions.
A certified copy of the resolutions of the Board of Directors of Borrower authorizing the execution, delivery and performance by Borrower
of the Loan Documents.


 


(b)       Incumbency
and Signatures. A certificate of the secretary of Borrower certifying the names of the officer or officers of Borrower authorized
to sign the Loan Documents, together with a sample copy of the true signature of each such officer.


 


(c)       Legal
Opinion. The opinion of Reed Smith LLP and Sherman & Howard L.L.C., as legal counsel for Borrower, as to such matters as Agent
or any Lender may reasonably request, in form and substance satisfactory to Agent and Lenders.


 


(d)       Charter
Documents. Copies of the organizational and charter documents of Borrower (e.g., Articles or Certificate of Incorporation and Bylaws),
as amended through the Closing Date, certified by an officer of Borrower as being true, correct and complete as of such date.


 


(e)       This
Agreement. Counterparts of this Loan Agreement, the Supplement and the Disclosure Letter, with all schedules completed and attached
thereto, and disclosing such information as is reasonably acceptable to Lenders therein.


 



(f)       Financing
Statements. Filing copies (or other evidence of filing satisfactory to Agent and its counsel) of such UCC financing statements, collateral
assignments, account control agreements, and termination statements, with respect to the Collateral as Agent shall request.


 






(g)       Intellectual
Property Security Agreement. An Intellectual Property Security Agreement executed by Borrower in form and substance satisfactory
to Agent.


 


(h)       Lien
Searches. UCC lien, judgment, bankruptcy and tax lien searches of Borrower from such jurisdictions or offices as Agent may reasonably
request, all as of a date reasonably satisfactory to Agent and its counsel.


 


(i)       Good
Standing Certificate. A certificate of status or good standing of Borrower as of a date acceptable to Agent from the jurisdiction
of Borrower’s organization and any foreign jurisdictions, as applicable, where Borrower is qualified to do business.


 


(j)       Warrant.
The Warrant issued by Borrower to each Lender exercisable for such number, type and class of shares of Borrower’s capital stock,
and for an initial exercise price as is specified therein.


 


(k)       Insurance
Certificates. Insurance certificates showing Borrower’s insurance coverage provided by Medmarc Insurance Group and Evanston
Insurance Company.


 


(l)       Other
Documents. Such other documents and instruments as Agent or Lenders may reasonably request to effectuate the intents and purposes
of this Agreement.


 


4.2       Conditions
to All Loans. The obligation of each Lender to make its initial Loan and any subsequent Loan is subject to the following further
conditions precedent that:


 


(a)       No
Default. No Default or Event of Default has occurred and is continuing or will result from the making of any such Loan, and the representations
and warranties of Borrower contained in Article 3 of this Loan Agreement and the Disclosure Letter are true and correct in all material
respects as of the Borrowing Date of such Loan (unless such representation or warranty relates to a different date, in which case such
representation or warranty will be true and correct in all material respects as of such date).


 


(b)       No
Material Adverse Change. No event has occurred that has had or could reasonably be expected to have a Material Adverse Change.


 


(c)       Borrowing
Request. Borrower shall have delivered to Agent a Borrowing Request for such Loan.


 










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(d)       Note.
Borrower shall have delivered an executed Note evidencing such Loan, substantially in the form attached to the Supplement as an exhibit
thereto.


 


(e)       Supplemental
Lien Filings. Borrower shall have executed and delivered such amendments or supplements to this Agreement and additional Security
Documents, financing statements and third party waivers as Agent may reasonably request in connection with the proposed Loan, in order
to create, protect or perfect or to maintain the perfection of Lender’s Liens on the Collateral.


 


(f)       Financial
Projections. Borrower shall have delivered to Agent, for distribution to Lenders, Borrower’s business plan and/or financial
projections or forecasts as most recently approved by Borrower’s Board of Directors.


 


ARTICLE
5 - AFFIRMATIVE COVENANTS


 


During
the term of this Agreement and until its performance of all Obligations (other than inchoate indemnity obligations), Borrower will:


 


5.1       Notice
to Lenders. Promptly give written notice to Lenders of:


 


(a)       Any
litigation or administrative or regulatory proceeding affecting Borrower where the amount claimed against Borrower is at the Threshold
Amount or more, or where the granting of the relief requested would reasonably be expected to have a Material Adverse Effect; or of the
acquisition by Borrower of any commercial tort claim, including brief details of such claim and such other information as Agent may reasonably
request to enable Agent to better perfect its Lien in such commercial tort claim as Collateral.


 


(b)       Any
dispute which may exist between Borrower and any governmental or regulatory authority that would reasonably be expected to have a Material
Adverse Effect.


 


(c)       The
occurrence of any Default or any Event of Default.


 



(d)       Any
change in the location of any of Borrower’s places of business or Collateral at least ten (10) days (or such later date as agreed
by Lender) in advance of such change, or of the establishment of any new, or the discontinuance of any existing, place of business.


 






(e)       Any
dispute or default by Borrower or any other party under any joint venture, partnering, distribution, cross-licensing, strategic alliance,
collaborative research or manufacturing, license or similar agreement which would reasonably be expected to have a Material Adverse Effect.


 


(f)       Any
other matter which has resulted or would reasonably be expected to result in a Material Adverse Effect.


 


(g)       Any
Subsidiary Borrower intends to acquire or create.


 


5.2       Financial
Statements. Deliver to Agent for distribution to the Lenders, or cause to be delivered to Agent for distribution to the Lenders,
in form and detail reasonably satisfactory to Lenders the following financial and other information; provided that Borrower will be deemed
to have delivered such information to the extent Borrower posts the relevant documents to its website, to www.sec.gov, or to such other
website and delivers a link thereto to Agent as notified to Lenders in lieu of delivering hard copies thereof to Agent:


 


(a)       Interim
Financial Statements. To the extent Borrower has the capacity to prepare monthly financial statements or undertakes the obligation
to do so for any party other than Lenders, as soon as available but no later than thirty (30) days after the end of each month, Borrower’s
unaudited balance sheet as of the end of such period, and Borrower’s unaudited income statement and cash flow statement for such
period and for that portion of Borrower’s financial reporting year ending with such period, prepared in accordance with GAAP and
attested by a responsible financial officer of Borrower as being complete and correct in all material respects and fairly presenting
Borrower’s financial condition and the results of Borrower’s operations as of the date(s) and for the period(s) covered thereby.
At all other times, the foregoing quarterly interim financial statements shall be delivered no later than forty-five (45) days after
the end of each fiscal quarter, (and for the avoidance of doubt, no monthly financial statements shall be required during such time).


 


(b)       Year-End
Financial Statements. As soon as available but no later than one hundred twenty (120) days after the end of each financial reporting
year, a complete copy of Borrower’s audit report, which shall include balance sheet, income statement, statement of changes in
equity and statement of cash flows for such year, prepared in accordance with GAAP and certified by EisnerAmper LLP or another independent
certified public accountant selected by Borrower and reasonably satisfactory to Lenders (the “Accountant”).
The Accountant’s 









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certification shall not be qualified or limited due to a restricted or limited examination by the Accountant of
any material portion of Borrower’s records. Notwithstanding the foregoing, if Borrower’s Board of Directors does not require
Borrower’s financial statements to be audited for a particular reporting year, then Borrower shall deliver to Agent unaudited financial
statements for such year, including the items described in, and in the timeframe specified in, this Section 5.2(b) (other than the
Accountant’s certification).


 


(c)       Compliance
Certificates. No later than thirty (30) days after the end of each month, a certificate of the chief financial officer of Borrower
(or other executive officer) substantially in the form of Exhibit “C” to the Supplement (a “Compliance
Certificate”) stating, among other things, whether any Default or Event of Default exists on the date of such certificate,
and if so, setting forth the details thereof and the action which Borrower is taking or proposes to take with respect thereto, and, prior
to such time as Borrower’ has the capacity to deliver monthly financial statements, setting forth Borrower’s cash balance
and remaining months liquidity. If requested by any Lender, a Compliance Certificate also shall be delivered to Agent on the Closing
Date.


 


(d)       Government
Required Reports. Promptly after sending, issuing, making available, or filing, copies of all reports, proxy statements, and financial
statements that Borrower sends or makes available generally to its stockholders, and, not later than five (5) Business Days after actual
filing or the date such filing was first due, all registration statements and reports that Borrower files or is required to file with
the Securities and Exchange Commission, or any other governmental or regulatory authority having similar authority.


 


(e)       Other
Information. Such other information as any Lenders may from time to time reasonably request.


 


(f)       Board
Packages. In addition to the information described in Section 5.2(e), Borrower will promptly provide Agent, for distribution to the
Lenders, with copies of information and notices it supplies to its shareholders, and copies of all information, notices, minutes, consents
and other materials, financial or otherwise, which Borrower provides to its Board of Directors
(collectively, “Board Packages”); provided, however, that Borrower need not provide Lenders with copies
of routine Board actions, such as option and stock grants under Borrower’s equity incentive plan in the normal course of business;
and provided, further, however, that such Board Packages may be redacted to the extent that (i) based on the advice
of counsel, Borrower’s Board of Directors determines such redaction 






is reasonably necessary to preserve the attorney-client privilege,
to protect highly confidential proprietary information, or to comply with its fiduciary duty or any applicable law or regulation, (ii)
such redacted material relates to Lenders (or Borrower’s strategy regarding the Loans or Lenders), or (iii) such redacted material
relates to “closed door” executive sessions of the Borrower’s Board of Directors.


 


5.3       [Reserved.]


 


5.4       Existence.
Maintain and preserve Borrower’s existence, present form of business, and all rights and permits to the extent necessary to the
normal course operation of its business; and maintain, or caused to be maintained, all Borrower’s property in good working order
and condition, ordinary wear and tear excepted.


 


5.5       Insurance.
Obtain and keep in force insurance in such amounts and types as is customary in the industry in which the Borrower operates, with insurance
carriers having a policyholder rating of not less than “A” and financial category rating of Class VII in “Best’s
Insurance Guide,” unless otherwise approved by Lenders (it being understood that Medmarc Insurance Group and Evanston Insurance
Company are acceptable to Lenders). Such insurance policies shall be in form and substance reasonably satisfactory to Lenders, and shall
list Agent as an additional insured or loss payee, as applicable, on endorsement(s) in form reasonably acceptable to Agent. Borrower
shall furnish to Agent such endorsements, and upon Lender’s request, copies of any or all such policies.


 


5.6       Accounting
Records. Maintain adequate books, accounts and records, and prepare all financial statements in accordance with GAAP, and in compliance
with the regulations of any governmental or regulatory authority having jurisdiction over Borrower or Borrower’s business; and
permit employees or agents of Agent at such reasonable times as Agent may request, at Borrower’s expense (not to exceed one (1)
such inspection and no more than $2,500 in any 12-month period unless an Event of Default has occurred and is continuing), to inspect
Borrower’s properties, and to examine, review and audit, and make copies and memoranda of Borrower’s books, accounts and
records.


 



5.7       Compliance
with Laws. Comply with all laws (including Environmental Laws), rules, regulations applicable to, and all orders and directives of
any governmental or regulatory authority having jurisdiction over, Borrower or Borrower’s business, and with all material agreements
to which Borrower is a party, except where the failure to so comply would not have a Material Adverse Effect.


 









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5.8       Taxes
and Other Liabilities. Pay all Borrower’s Indebtedness when due; pay all material taxes and other governmental or regulatory
assessments before delinquency or before any penalty attaches thereto, except as may be contested in good faith by the appropriate procedures
and for which Borrower shall maintain appropriate reserves; and timely file all required material tax returns (subject to any applicable
extensions).


 


5.9       Special
Collateral Covenants. 


 


(a)       Maintenance
of Collateral; Inspection. Do all things reasonably necessary to maintain, preserve, protect and keep all Collateral in good working
order and salable condition, ordinary wear and tear excepted, deal with the Collateral in all commercially reasonable ways as are considered
good practice by owners of like property, and use the Collateral lawfully and, to the extent applicable, only as permitted by Borrower’s
insurance policies. Maintain, or cause to be maintained, complete and accurate Records, in all material respects, relating to the Collateral.
Upon reasonable prior notice at reasonable times during normal business hours, Borrower hereby authorizes Agent’s and Lenders’
officers, employees, representatives and agents to inspect the Collateral and to discuss the Collateral and the Records relating thereto
with Borrower’s officers and employees, and, in the case of any Right to Payment, after consultation with Borrower, with any Person
which is or may be obligated thereon (not to exceed one (1) such inspection and no more than $2,500 in any 12-month period unless an
Event of Default has occurred and is continuing).


 


(b)       Documents
of Title. Not sign or authorize the signing of any financing statement or other document naming Borrower as debtor or obligor, or
acquiesce or cooperate in the issuance of any bill of lading, warehouse receipt or other document or instrument of title with respect
to any Collateral, except those negotiated to Agent, or those naming Agent as secured party, or if solely to create, perfect or maintain
a Permitted Lien.


 


(c)       Change
in Location or Name. Without at least 30 days’ prior written notice to Lenders: (a) not relocate
any Collateral or Records, its chief executive office, or establish a place of business at a location other than as specified in the
Disclosure Letter; and (b) not change its name, mailing address, location of Collateral (other than (i) movable property such as laptop
computers, and (ii) other Collateral with a book value less than $50,000), jurisdiction of incorporation or its legal structure.


 


(d)       Decals,
Markings. At the request of Lender, firmly affix a decal, stencil or other marking to designated





items of Equipment valued in excess
of $50,000, indicating thereon the security interest of Lender.


 


(e)       Agreement
with Persons in Possession of Collateral. Use its commercially reasonable efforts to obtain and maintain such acknowledgments, consents,
waivers and agreements (each a “Waiver”) from the owner, operator, lienholder, mortgagee, landlord or any Person
in possession of tangible Collateral (other than movable property such as laptop computers) in excess of $100,000 per location as Lenders
may require, all in form and substance reasonably satisfactory to Lenders. Notwithstanding anything to the contrary in this Section 5.9(e),
Borrower and Lenders acknowledge and agree that all material Intellectual Property and Records that are maintained on items of Collateral
for which Borrower is unable to provide a Waiver also shall be maintained or backed up in a manner sufficient that Agent shall be able
to have reasonable access to such Intellectual Property and Records in accordance with the exercise of Agent’s rights hereunder.


 


(f)       Certain
Agreements on Rights to Payment. Other than in the ordinary course of business, not make any material discount, credit, rebate or
other reduction in the original amount owing on a material Right to Payment or accept in satisfaction of such Right to Payment less than
the original amount thereof.


 


5.10       Authorization
for Automated Clearinghouse Funds Transfer. (i) Authorize each Lender to initiate debit entries to Borrower’s Primary Operating
Account, specified in the Disclosure Letter, through Automated Clearinghouse (“ACH”) transfers, in order to
satisfy the regularly scheduled payments of principal and interest; (ii) provide each Lender at least thirty (30) days’ notice
of any change in Borrower’s Primary Operating Account; and (iii) grant each Lender any additional authorizations necessary to begin
ACH debits from a new account which becomes the Primary Operating Account.


 

5.11       Anti-Corruption
Laws. Provide, to the knowledge of the Borrower, true, accurate and complete information, in all material respects, in all product
orders, reimbursement requests and other communications relating to Borrower and its products.


 


ARTICLE
6 - NEGATIVE COVENANTS


 


During
the term of this Agreement and until the performance of all Obligations (other than inchoate indemnity obligations), Borrower will not:


 


6.1       Indebtedness.
Incur Indebtedness for borrowed money, or the deferred purchase price of 








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property, or capital or equipment leases which would be
capitalized in accordance with GAAP; or become liable as a surety, guarantor, accommodation party or otherwise for or upon the obligation
of any other Person, except:


 


(a)       Indebtedness
incurred for the acquisition of supplies, inventory or other property or services on normal trade credit;


 


(b)       Indebtedness
incurred pursuant to one or more transactions permitted under Section 6.4;


 


(c)       Indebtedness
of Borrower under this Agreement and the other Loan Documents;


 


(d)       Subordinated
Debt;


 


(e)       any
Indebtedness approved by Lenders prior to the Closing Date as set forth in the Disclosure Letter;


 


(f)       Indebtedness
secured by a lien described in clause (c) of the defined term “Permitted Liens” not to exceed $100,000 in aggregate principal
amount outstanding at any time;


 


(g)       Indebtedness
incurred under corporate credit cards not to exceed $150,000 in aggregate principal amount outstanding at any time;


 


(h)       guaranties
and similar surety obligations in respect of Indebtedness permitted under this Section 6.1;


 


(i)       Indebtedness
to finance insurance premiums;


 


(j)       Letters
of credit securing performance of real property leases, provided that such Indebtedness does not exceed ($25,000) outstanding at any
time; and


 


(k)       extensions,
refinancings and renewals of any of the foregoing; provided that the principal amount thereof is not increased.


 


6.2       Liens.
Create, incur, assume or permit to exist any Lien, or grant any other Person a negative pledge, on any of Borrower’s property,
except Permitted Liens and any negative pledge in respect of any asset subject to a Lien permitted by clause (c) of the definition of
Permitted Liens. Borrower, Lenders and Agent agree that this covenant is not intended to constitute a lien, deed of trust, equitable
mortgage, or security interest of any kind on any of Borrower’s real property, and this Agreement shall not be recorded or recordable.
Notwithstanding the foregoing, however, violation of this covenant by Borrower shall constitute an Event of Default.


 








6.3       Dividends.
Pay any dividends or purchase, redeem or otherwise acquire or make any other distribution with respect to any of Borrower’s capital
stock, except (a) dividends or other distributions solely of the equity interests of Borrower, (b) so long as no Event of Default has
occurred and is continuing, repurchases of stock from employees or contractors (or any spouses, successors, administrators, heirs or
legatees of any of the foregoing) upon the death, disability or termination of employment or services of such individual not to exceed
$100,000 in any calendar year, (c) the conversion of Borrower’s convertible securities into other securities pursuant to the terms
of such convertible securities or otherwise in exchange thereof, (d) the purchase, redemption or other acquisition of shares of Borrower’s
capital stock with the proceeds received from a substantially concurrent issue of new shares of its capital stock, (e) cash payments
in lieu of issuing fractional shares in connection with the exercise of warrants, options, or other securities convertible into or exchangeable
for equity interests in another Person and (f) non-cash repurchases of equity interest of Borrower deemed to occur upon exercise of stock
options or warrants (or equivalent) if such equity interests represent a portion of the exercise price and/or related tax liability in
respect of such options or warrants.


 


6.4       Fundamental
Changes. (a) Liquidate or dissolve; (b) enter into, or permit any of Borrower’s Subsidiaries to enter into, any Change of Control;
or (c) acquire, or permit any of Borrower’s Subsidiaries to acquire, all or substantially all of the capital stock or property
of another Person except as permitted by Section 6.6 or Section 6.14. Notwithstanding anything to the contrary in this Section 6.4, Borrower
may enter into a transaction that will constitute a Change of Control so long as: (i) the Person that results from such Change of Control
(the “Surviving Entity”) shall have executed and delivered to Lenders an agreement in form and substance reasonably
satisfactory to each Lender, containing an assumption by the Surviving Entity of the due and punctual payment and performance of all
Obligations and performance and observance of each covenant and condition of Borrower in the Loan Documents; (ii) all such obligations
of the Surviving Entity to s shall be guaranteed by any Person that directly or indirectly owns or controls 50% or more of the voting
stock of the Surviving Entity; (iii) immediately after giving effect to such Change of Control, no Event of Default or, event which with
the lapse of time or giving of notice or both, would result in an Event of Default shall have occurred and be continuing; and (iv) the
credit risk to Lenders in each Lender’s sole discretion, with respect to the Obligations and the Collateral shall not be increased.
In determining whether the proposed Change of Control would result in an increased credit risk, each Lender may 








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consider, among other
things, changes in Borrower’s management team, employee base, access to equity markets, venture capital support, financial position
and/or disposition of intellectual property rights which may reasonably be anticipated as a result of the Change of Control. In addition,
(i) a Subsidiary may merge or consolidate into another Subsidiary and (ii) Borrower may consolidate or merge with any of Borrower’s
Subsidiaries provided that Borrower is the continuing or surviving Person.


 


6.5       Sales
of Assets. Sell, transfer, lease, license, allow to lapse, terminate, or otherwise dispose of (a “Transfer”)
any of Borrower’s assets except (a) non-exclusive licenses and sublicenses of Intellectual Property in the ordinary course of
business consistent with industry practice, provided that such licenses of Intellectual Property neither result in a legal transfer
of title of the licensed Intellectual Property nor have the same effect as a sale of such Intellectual Property; (b) Transfers and
abandonments of worn-out, obsolete or surplus property (each as determined by Borrower in its reasonable judgment); (c) Transfers of
Inventory in the ordinary course of business; (d) Transfers constituting Permitted Liens; (e) Transfers permitted in Section 6.3,
6.4, 6.6 or 6.7 hereunder; (f) Transfers of assets (other than Intellectual Property) for fair consideration and in the ordinary
course of its business; and (g) asset sales or other Transfers consisting of non-exclusive licenses, sublicenses or contributions of
Intellectual Property, or licenses, sublicenses or contributions of Intellectual Property that may be exclusive in respects other
than territory and that may be exclusive as to territory only as to a specific geographical territory outside the United States,
pursuant to licensing, manufacturing, joint marketing, distribution or research and development, collaboration, consortium, or joint
development agreements or other arrangements in the ordinary course of business or consistent with past practice, or where no past
practice exists, consistent with market practice and on customary terms for the life sciences and pharmaceuticals
industry.


 


6.6       Loans/Investments.
Make or suffer to exist any Investments, except:


 


(a)       accounts
receivable in the ordinary course of Borrower’s business;


 


(b)       Investments
in domestic certificates of deposit issued by, and other domestic investments with, financial institutions organized under the laws of
the United States or a state thereof, having at least $100,000,000 in capital and a rating of at least “investment grade”
or “A” by Moody’s or any successor rating agency;


 







(c)       Investments
in marketable obligations of the United States of America and in open market commercial paper given the highest credit rating by a national
credit agency and maturing not more than one year from the creation thereof;

 


(d)       temporary
advances to cover incidental expenses to be incurred in the ordinary course of business;


 


(e)       Investments
in joint ventures, strategic alliances, licensing and similar arrangements customary in Borrower’s industry and which do not require
Borrower to assume or otherwise become liable for the obligations of any third party not directly related to or arising out of such arrangement
or, without the prior written consent of Required Lenders, require Borrower to transfer ownership of non-cash assets to such joint venture
or other entity;


 


(f)       Investments
in and acquisitions of (i) one or more wholly-owned domestic Subsidiaries of Borrower, so long as in accordance with Section 6.14(a)
of this Loan Agreement, each such Person has been made a co-borrower hereunder or has executed and delivered to Agent an agreement, in
form and substance reasonably satisfactory to Required Lenders, containing a guaranty of the Obligations, and (ii) one or more wholly-owned
foreign Subsidiaries of Borrower with the prior written consent of Required Lenders;


 


(g)       Investments
approved by Lenders prior to the Closing Date as set forth in the Disclosure Letter;


 


(h)       Investments
accepted in connection with Transfers permitted by Section 6.5;


 

(i)       non-cash
loans approved by Borrower’s Board of Directors to employees, officers or directors relating to the purchase of equity securities
of Borrower pursuant to employee stock purchase plans or agreements approved by Borrower’s Board of Directors, limited to an aggregate
total of $100,000 at any time outstanding;


 


(j)       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 Borrower’s business;


 


(k)     Investments
permitted under Section 6.11 and 6.14;


 


(l)       Investments
consisting of notes receivable of, or prepaid royalties and other loans or credit extensions 








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to, customers, suppliers and distributors
in the ordinary course of business;

 


(m)     Investments
by wholly owned Subsidiaries in other wholly owned Subsidiaries or in Borrower; and


 


(n)      Investments
consisting of deposit accounts; provided Lender has a perfected security interest therein to the extent required by Section 6.11.


 


6.7       Transactions
with Related Persons. Directly or indirectly enter into any transaction with or for the benefit of a Related Person on terms more
favorable to the Related Person than would have been obtainable in an “arms’ length” dealing, except (a) sales of equity
securities by Borrower and incurrence of Subordinated Debt for capital raising purposes, (b) Investments permitted under clauses (d),
(f), (i) or (m) of Section 6.6, (c) employment and consulting arrangements, including stock options, employee compensation, and severance
arrangements in the ordinary course of business, and (d) customary reimbursement and indemnity arrangements in the ordinary course of
business.


 


6.8       Other
Business. Engage in any material line of business other than the business Borrower conducts as of the Closing Date and any business
substantially similar, related or incidental thereto.


 


6.9       Financing
Statements and Other Actions. Fail to execute and deliver to Agent all financing statements, notices and other documents
(including, without limitation, any filings with the United States Patent and Trademark Office and the United States Copyright
Office) from time to time reasonably requested by Agent to maintain a perfected first priority security interest in the Collateral
in favor of Agent, subject to Permitted Liens; perform such other acts, and execute and deliver to Agent such additional
conveyances, assignments, agreements and instruments, as Agent may at any time reasonably request in connection with the
administration and enforcement of this Agreement or Agent’s rights, powers and remedies hereunder.


 

6.10       Compliance.
Become required to be registered as an “investment company” or controlled by an “investment company,” within
the meaning of the Investment Company Act of 1940, or become principally engaged in, or undertake as one of its important activities,
the business of extending credit for the purpose of purchasing or carrying margin stock, or use the proceeds of any Loan for such 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 law or regulation, in each 






each case, which violation would
reasonably be expected to have a Material Adverse Effect or a material adverse effect on the Collateral or the priority of Agent’s
Lien on the Collateral, or permit any of its subsidiaries to do any of the foregoing.


 


6.11       Other
Deposit and Securities Accounts. Maintain any Deposit Accounts or accounts holding securities owned by Borrower except (a) Deposit
Accounts and investment/securities accounts as set forth in the Disclosure Letter with respect to which an account control agreement
has been executed and delivered to Agent, and (b) other Deposit Accounts and securities/investment accounts, in each case, with respect
to which Borrower and Agent shall have taken such action as Agent reasonably deems necessary to obtain a perfected first priority security
interest therein, including without limitation the execution and delivery of an account control agreement, subject to Permitted Liens.
Notwithstanding anything to the contrary, the provisions of this Section 6.11 shall not apply to Excluded Accounts.


 


6.12       Prepayment
of Indebtedness. Prepay, redeem or otherwise satisfy in any manner prior to the scheduled repayment thereof any Indebtedness (other
than the Loans and Indebtedness permitted by Section 6.1 hereof). Notwithstanding the foregoing, the parties agree that the conversion
or exchange into Borrower’s equity securities of any Indebtedness (other than the Loans) shall not be prohibited by this Section
6.12.


 


6.13       Repayment
of Subordinated Debt. Repay, prepay, redeem or otherwise satisfy in any manner any Subordinated Debt, except in accordance with the
terms of any subordination agreement among Borrower, Agent and the holder(s) of such Subordinated Debt. Notwithstanding the foregoing,
each Lender agrees that the conversion or exchange into Borrower’s equity securities of any Subordinated Debt and the payment of
cash in lieu of fractional shares shall not be prohibited by this Section 6.13.


 


6.14       Subsidiaries.


 


(a)       Acquire
or create any Subsidiary, unless such Subsidiary becomes, at Lender’s option, either a co-borrower hereunder or executes and delivers
to Agent one or more agreements, in form and substance reasonably satisfactory to Required Lenders, containing a guaranty of the Obligations
that is secured by first priority Liens on such Person’s assets, subject to Permitted Liens. For clarity, the parties acknowledge
and agree that Required Lenders shall have the exclusive right to determine whether any such Person will be made a co-borrower hereunder
or a guarantor of the Obligations. Prior to the acquisition or creation of any such Subsidiary, Borrower 








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shall have the exclusive right to determine whether any such Person will be made a co-borrower hereunder
or a guarantor of the Obligations. Prior to the acquisition or creation of any such Subsidiary, Borrower shall notify Lenders thereof
in writing, which notice shall contain the jurisdiction of such Person’s formation and include a description of such Person’s
fully diluted capitalization and Borrower’s purpose for its acquisition or creation of such Subsidiary.


 


(b)       Sell,
transfer, encumber or otherwise dispose of Borrower’s ownership interest in any Subsidiary other than Permitted Liens.


 


(c)       Cause
or permit a Subsidiary to do any of the following: (i) grant Liens on such Subsidiary’s assets, except for Liens that would constitute
Permitted Liens if incurred by Borrower and Liens on any property held or acquired by such Subsidiary in the ordinary course of its business
securing Indebtedness incurred or assumed for the purpose of financing all or any part of the cost of acquiring such property; provided,
that such Lien attaches solely to the property acquired with such Indebtedness and that the principal amount of such Indebtedness does
not exceed one hundred percent (100%) of the cost of such property; and (ii) issue any additional Shares, except to Borrower or a wholly
owned Subsidiary of Borrower.


 


6.15       Leases.
Create, incur, assume, or suffer to exist any obligation as lessee for the rental or hire of any personal property
(“Personal Property Leases”), except for Personal Property Leases of Equipment in the ordinary course of business
that do not in the aggregate require Borrower to make payments (including taxes, insurance, maintenance and similar expenses which
Borrower is required to pay under the terms of any such lease) in any calendar year in excess of $150,000 in aggregate amount. For
the avoidance of doubt, this Section 6.15 will not be applicable to Indebtedness otherwise permitted under Section 6.1(f) of this
Loan Agreement or leases of real property.


 


6.16       Anti-Corruption
Laws. 


 


(a)       Take
any action that would cause a violation of any anti-corruption law, including but not limited to, the Foreign Corrupt Practices Act,
the United Kingdom Bribery Act, and all other applicable anti-corruption laws.

 


(b)       Directly
or indirectly, offer, pay, give, promise or authorize the payment of any money, gift, or anything of value to any person acting in an
official capacity for any government department, agency, or instrumentality, including state-owned or controlled companies or entities,
and public international organizations, as well as a political party or official thereof or candidates for political office, except in
compliance with applicable law.


 






ARTICLE
7 - EVENTS OF DEFAULT


 


7.1       Events
of Default; Acceleration. Upon the occurrence and during the continuation of any Event of Default, the obligation of each Lender
to make any additional Loan shall be suspended. The occurrence and continuation of any of the following (each, an “Event
of Default”) shall at the option of Agent, at the direction of Required Lenders (1) make all sums of Basic Interest and
principal, as well as any other Obligations and amounts owing under any Loan Documents, immediately due and payable without notice of
default, presentment or demand for payment, protest or notice of nonpayment or dishonor or any other notices or demands, and (2) give
Agent the right to exercise any other right or remedy provided by contract or applicable law:


 


(a)       Borrower
shall fail to pay any principal or interest under this Agreement or any Note, or fail to pay any fees or other charges when due under
any Loan Document, and such failure continues for three (3) Business Days or more after the same first becomes due; or an Event of Default
as defined in any other Loan Document shall have occurred.


 


(b)       Any
representation or warranty made, or financial statement, certificate or other document provided, by Borrower under any Loan Document
shall prove to have been false or misleading in any material respect when made or deemed made herein.



(c)       If
there occurs any circumstance or circumstances that could reasonably be expected to have a Material Adverse Effect.


 


(d)       (i)
Borrower shall fail to pay its debts generally as they become due; or (ii) Borrower shall commence any Insolvency Proceeding with respect
to itself, an involuntary Insolvency Proceeding shall be filed against Borrower, or a custodian, receiver, trustee, assignee for the
benefit of creditors, or other similar official, shall be appointed to take possession, custody or control of the properties of Borrower,
and such involuntary Insolvency Proceeding, petition or appointment is acquiesced to by Borrower or is not dismissed within forty five
(45) days; or (iii) the dissolution, winding up, or termination of the business or cessation of operations of Borrower (including any
transaction or series of related transactions deemed to be a liquidation, dissolution or winding up of Borrower pursuant to the provisions
of Borrower’s charter documents); or (iv) Borrower shall take any corporate action for the purpose of effecting, approving, or
consenting to any of the foregoing.


 


(e)       Borrower
shall be in default beyond any applicable period of grace or cure under any other 








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agreement
involving the borrowing of money, the purchase of property, the advance of credit or any other monetary liability of any kind to any
Lender or to any Person in an amount in excess of the Threshold Amount.

 


(f)       Any
governmental or regulatory authority shall take any judicial or administrative action, or any defined benefit pension plan maintained
by Borrower shall have any unfunded liabilities, any of which, in the reasonable judgment of Required Lenders, would reasonably be expected
to have a Material Adverse Effect.


 


(g)       Any
sale, transfer or other disposition of all or a substantial or material part of the assets of Borrower, including without limitation
to any trust or similar entity, shall occur.


 


(h)       Any
judgment(s) singly or in the aggregate in excess of the Threshold Amount (excluding amounts covered by insurance to the extent the relevant
independent third-party insurer has accepted coverage therefor) shall be entered against Borrower which remain unsatisfied, unvacated
or unstayed pending appeal for fifteen (15) or more days after entry thereof.


 


(i)       Borrower
shall fail to perform or observe any covenant contained in Article 6 of this Loan Agreement.


(j)       Borrower
shall fail to perform or observe any covenant contained in Article 5 or elsewhere in this Loan Agreement or any other Loan Document (other
than a covenant which is dealt with specifically elsewhere in this Article 7) and, if capable of being cured, the breach of such covenant
is not cured within 10 days after the sooner to occur of Borrower’s receipt of notice of such breach from Agent or any Lender or
the date on which such breach first becomes known to any officer of Borrower (the “Notice Date”); provided,
however that if such breach is not capable of being cured within such 10-day period and Borrower timely notifies Lenders of such
fact and Borrower diligently pursues such cure, then the cure period shall be extended to the date requested in Borrower’s notice
but in no event more than 30 days from the Notice Date; provided, further, that such 30-day opportunity to cure shall not
apply in the case of any failure to perform or observe any covenant which has been the subject of a prior failure within the preceding
180 days or which is a willful and knowing breach by Borrower.


 


7.2       Remedies
upon Default. Upon the occurrence and during the continuance of an Event of Default, Agent shall be entitled to, at its option, exercise
any or all of the rights and remedies available to a secured party under the UCC or any other applicable law, and exercise any or all
of its rights and remedies provided for in this Agreement 






and in any other Loan Document. The obligations of Borrower under this Agreement
shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any Obligations is rescinded or must
otherwise be returned by any Lender or Agent upon, on account of, or in connection with, the insolvency, bankruptcy or reorganization
of Borrower or otherwise, all as though such payment had not been made.


 



7.3       Sale
of Collateral. Upon the occurrence and during the continuance of an Event of Default, Agent may, at the direction of Required Lenders,
sell all or any part of the Collateral, at public or private sales, to the Lenders or a designee of Lenders, a wholesaler, retailer or
investor, for cash, upon credit or for future delivery, and at such price or prices as Required Lenders may deem commercially reasonable.
To the extent permitted by law, each Borrower hereby specifically waives all rights of redemption and any rights of stay or appraisal
which it has or may have under any applicable law in effect from time to time. Any such public or private sales shall be held at such
times and at such place(s) as Required Lenders may determine. In case of the sale of all or any part of the Collateral on credit or for
future delivery, the Collateral so sold may be retained by Agent until the selling price is paid by the purchaser, but neither Agent
nor any Lender shall incur any liability in case of the failure of such purchaser to pay for the Collateral and, in case of any such
failure, such Collateral may be resold. Agent may, at the direction of Required Lenders, instead of exercising its power of sale, proceed
to enforce its security interest in the Collateral by seeking a judgment or decree of a court of competent jurisdiction. Without limiting
the generality of the foregoing, if an Event of Default is in existence, in each case, at the direction of Required Lenders:


 


(1)       Subject
to the rights of any third parties, Agent may license, or sublicense, whether general, special or otherwise, and whether on an exclusive
or non-exclusive basis, any Copyrights, Patents or Trademarks included in the Collateral throughout the world for such term or terms,
on such conditions and in such manner as Required Lenders shall in their sole discretion determine;


 


(2)       Agent
may (without assuming any obligations or liability thereunder), at any time and from time to time, enforce (and shall have the exclusive
right to enforce) against any licensee or sublicensee all rights and remedies of Borrower in, to and under any Copyright Licenses, Patent
Licenses or Trademark Licenses and take or refrain from taking any action under any thereof, and Borrower hereby releases Agent and each
Lender from, and agrees to hold Agent and each Lender free and harmless from and against any claims arising out of, any lawful action
so taken or omitted to be taken with respect thereto other than, with respect to Agent or any Lender, claims arising 









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out of the gross
negligence or willful misconduct of Agent or such Lender, respectively; and


 


(3)       Upon
request by Agent, Borrower will execute and deliver to Agent a power of attorney, in form and substance reasonably satisfactory to Agent,
for the implementation of any lease, assignment, license, sublicense, grant of option, sale or other disposition of a Copyright, Patent
or Trademark. In the event of any such disposition pursuant to this clause 3, Borrower shall supply its know-how and expertise
relating to the products or services made or rendered in connection with Patents, the manufacture and sale of the products bearing Trademarks,
and its customer lists and other records relating to such Copyrights, Patents or Trademarks and to the distribution of said products,
to Agent.


 


(4)       If,
at any time when Required Lenders shall determine to exercise its right to sell the whole or any part of the Shares hereunder, such
Shares or the part thereof to be sold shall not, for any reason whatsoever, be effectively registered under the Securities Act (or
any similar statute), then Agent may, at the direction of Required Lenders in their sole discretion (subject only to applicable
requirements of law), sell such Shares or part thereof by private sale in such manner and under such circumstances as Required
Lenders may deem necessary or advisable, but subject to the other requirements of this Article 7, and shall not be required
to effect such registration or to cause the same to be effected. Without limiting the generality of the foregoing, in any such
event, Agent may, at the direction of Required Lenders in their discretion, (i) in accordance with applicable securities laws
proceed to make such private sale notwithstanding that a registration statement for the purpose of registering such Shares or part
thereof could be or shall have been filed under the Securities Act (or similar statute), (ii) approach and negotiate with a single
possible purchaser to effect such sale, and (iii) restrict such sale to a purchaser who is an accredited investor under the
Securities Act and who will represent and agree that such purchaser is purchasing for its own account, for investment and not with a
view to the distribution or sale of such Shares or any part thereof. In addition to a private sale as provided above in this Article
7, if any of the Shares shall not be freely distributable to the public without registration under the Securities Act (or
similar statute) at the time of any proposed sale pursuant to this Article 7, then Agent shall not be required to effect such
registration or cause the same to be effected but, in its discretion (subject only to applicable requirements of law), may require
that any sale hereunder (including a sale at auction) be conducted subject to restrictions:


 





(A)       as
to the financial sophistication and ability of any Person permitted to bid or purchase at any such sale;


 


(B)       as
to the content of legends to be placed upon any certificates representing the Shares sold in such sale, including restrictions on future
transfer thereof;


 


(C)       as
to the representations required to be made by each Person bidding or purchasing at such sale relating to such Person’s access to
financial information about Borrower or any of its Subsidiaries and such Person’s intentions as to the holding of the Shares so
sold for investment for its own account and not with a view to the distribution thereof; and


 


(D)       as
to such other matters as Agent may, in its discretion, deem necessary or appropriate in order that such sale (notwithstanding any failure
so to register) may be effected in compliance with the Bankruptcy Code and other laws affecting the enforcement of creditors’ rights
and the Securities Act and all applicable state securities laws.


 


(5)       Borrower
recognizes that Agent may be unable to effect a public sale of any or all the Shares and may be compelled to resort to one or more private
sales thereof in accordance with clause (4) above. Borrower also acknowledges that any such private sale may result in prices
and other terms less favorable to the seller than if such sale were a public sale and, notwithstanding such circumstances, agrees that
any such private sale shall not be deemed to have been made in a commercially unreasonable manner solely by virtue of such sale being
private. Agent shall be under no obligation to delay a sale of any of the Shares for the period of time necessary to permit the applicable
Subsidiary to register such securities for public sale under the Securities Act, or under applicable state securities laws, even if Borrower
and/or the Subsidiary would agree to do so.


 


7.4       Borrower’s
Obligations upon Default. Upon the request of Agent, at the direction of Required Lenders, after the occurrence and during the continuance
of an Event of Default, Borrower will:


 


(a)       Assemble
and make available to Agent the Collateral at such place(s) as Agent shall reasonably designate, segregating all Collateral so that each
item is capable of identification; and


 


(b)       Subject
to the rights of any lessor, permit Agent, by Agent’s officers, employees, agents and 








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representatives, to enter any premises where
any Collateral is located, to take possession of the Collateral, to complete the processing, manufacture or repair of any Collateral,
and to remove the Collateral, or to conduct any public or private sale of the Collateral, all without any liability of Agent or any Lender
for rent or other compensation for the use of Borrower’s premises.


 


ARTICLE
8 - SPECIAL COLLATERAL PROVISIONS


 


8.1       Compromise
and Collection. Borrower and Agent recognize that setoffs, counterclaims, defenses and other claims may be asserted by obligors
with respect to certain of the Rights to Payment; that certain of the Rights to Payment may be or become uncollectible in whole or
in part; and that the expense and probability of success of litigating a disputed Right to Payment may exceed the amount that
reasonably may be expected to be recovered with respect to such Right to Payment. Borrower hereby authorizes Agent, after and during
the continuance of an Event of Default, to compromise with the obligor, accept in full payment of any Right to Payment such amount
as Agent shall negotiate with the obligor, or abandon any Right to Payment, in each case, as directed by Required Lenders. Any such
action by Agent shall be considered commercially reasonable so long as Required Lenders have made the determination in good faith
based on information known to them at the time Agent takes any such action.


 


8.2       Performance
of Borrower’s Obligations. Without having any obligation to do so, upon reasonable prior notice to Borrowers, Agent may, at
the direction of Required Lenders, perform or pay any obligation which Borrowers have agreed to perform or pay under this Agreement,
including, without limitation, the payment or discharge of taxes or Liens levied or placed on or threatened against the Collateral, provided
that the Lenders shall fund amounts necessary to make such payments ratably in accordance with the principal amount of the Loans held
by each Lender. In so performing or paying, Agent and Required Lenders shall determine the action to be taken and the amount necessary
to discharge such obligations. Borrower shall reimburse Agent on demand for any amounts paid by Agent or any Lender pursuant to this
Section, whereupon, Agent shall promptly deliver to Lenders such payments, which amounts shall constitute Obligations secured by the
Collateral and shall bear interest from the date of demand at the Default Rate.


 


8.3       Power
of Attorney. For the purpose of protecting and preserving the Collateral and Agent’s and Lenders’ rights under this Agreement,
each Borrower hereby irrevocably appoints Agent, with full power of substitution, as its attorney-in-fact with full power and






 authority,
after the occurrence and during the continuance of an Event of Default, to do any act which the applicable Borrower is obligated to do
hereunder, as directed by Required Lenders; to exercise such rights with respect to the Collateral as the applicable Borrower might exercise,
as directed by Required Lenders; to use such Inventory, Equipment, Fixtures or other property as the applicable Borrower might use, as
directed by Required Lenders; to enter any Borrower’s premises; to give notice of Agent’s security interest in, and to collect
the Collateral, as directed by Required Lenders; and before or after Default, to execute and file in the applicable Borrower’s
name any financing statements, amendments and continuation statements, account control agreements or other Security Documents necessary
or desirable to create, maintain, perfect or continue the perfection of Agent’s security interests in the Collateral. Each Borrower
hereby ratifies all that Agent shall lawfully do or cause to be done by virtue of this appointment.


 


8.4       Authorization
for Lender to Take Certain Action. The power of attorney created in Section 8.3 is a power coupled with an interest and shall be
irrevocable. The powers conferred on Agent hereunder and thereunder are solely to protect its interests in the Collateral and shall not
impose any duty upon Agent to exercise such powers. Agent shall be accountable only for amounts that it actually receives as a result
of the exercise of such powers and in no event shall Agent or any of its directors, officers, employees, agents or representatives be
responsible to any Borrower for any act or failure to act, except for gross negligence or willful misconduct. After the occurrence and
during the continuance of an Event of Default, Agent may exercise this power of attorney without notice to or assent of any Borrower,
in the name of the applicable Borrower, or in Agent’s own name, from time to time in Agent’s sole discretion and at Borrowers’
expense. To further carry out the terms of this Agreement, after the occurrence and during the continuance of an Event of Default, Agent
may, at the direction of Required Lenders:


 


(a)       Execute
any statements or documents or take possession of, and endorse and collect and receive delivery or payment of, any checks, drafts, notes,
acceptances or other instruments and documents constituting Collateral, or constituting the payment of amounts due and to become due
or any performance to be rendered with respect to the Collateral.


 


(b)       Sign
and endorse any invoices, freight or express bills, bills of lading, storage or warehouse receipts; drafts, certificates and statements
under any commercial or standby letter of credit relating to Collateral; assignments, verifications and notices in connection with Accounts;
or any other documents 








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relating to the Collateral, including without limitation the Records.



 


(c)       Use
or operate Collateral or any other property of Borrower for the purpose of preserving or liquidating Collateral.


 


(d)       File
any claim or take any other action or proceeding in any court of law or equity or as otherwise deemed appropriate by Agent for the purpose
of collecting any and all monies due or securing any performance to be rendered with respect to the Collateral.


 


(e)       Commence,
prosecute or defend any suits, actions or proceedings or as otherwise deemed appropriate by Agent for the purpose of protecting or collecting
the Collateral. In furtherance of this right, upon the occurrence and during the continuance of an Event of Default, Agent may apply
for the appointment



of
a receiver or similar official to operate Borrower’s business.


 


(f)       Prepare,
adjust, execute, deliver and receive payment under insurance claims, and collect and receive payment of and endorse any instrument in
payment of loss or returned premiums or any other insurance refund or return, and apply such amounts at Agent’s sole discretion,
toward repayment of the Obligations or replacement of the Collateral.


 


8.5       Application
of Proceeds. Any Proceeds and other monies or property received by Agent pursuant to the terms of this Agreement or any Loan Document
may be applied as follows.


 


First,
to Agent, the aggregate amount of all costs, expenses, indemnities and other amounts required to be reimbursed to Agent, in its capacity
as such, until paid in full;


 


Second,
to Agent, for the ratable benefit of Lenders (in accordance with the portion funded by each Lender), the aggregate amount of all Obligations
arising on account of payments made by Agent in accordance with Section 8.2, until repaid in full;


 


Third,
to Lenders, ratably in accordance with principal amount of the Loans held by each Lender, an amount equal to the aggregate costs, expenses,
indemnities or other amounts then required to be reimbursed to such Lender, until paid in full;


 


Fourth,
to Lenders, ratably in accordance with aggregate amount of any fees, premiums or similar payments due to each Lender in respect of the
Loans held by such Lender, an amount equal to the aggregate fees, 






premiums or other similar such payments due to such Lender in respect
of the Loans, until paid in full;

 


Fifth,
to Lenders, ratably in accordance with accrued and unpaid interest in respect of the Loans and the other Obligations due to each Lender,
an amount equal to the aggregate accrued and unpaid interest on the Loans and other Obligations then due, until paid in full;


 


Sixth,
to Lenders, ratably in accordance outstanding principal due to each Lender in respect of the Loans, an amount equal to the aggregate
principal outstanding in respect of the Loans then due, until paid in full;


 


Seventh,
to Agent and each Lender, ratably in accordance with the any other Obligations due to such Lender, an amount equal to all other Obligations
due and payable to Agent and each Lender, until paid in full; and


 


Last,
the balance, if any, to Borrowers or as otherwise required by applicable law.



8.6       Deficiency.
If the Proceeds of any disposition of the Collateral are insufficient to cover all costs and expenses of such sale and the payment
in full of all the Obligations, plus all other sums required to be expended or distributed by Agent or any Lender, then Borrower shall
be liable for any such deficiency.


 


8.7       Agent
Transfer. Upon the transfer of all or any part of the Obligations in accordance with the provisions of this Agreement, Agent may
transfer all or part of the Collateral and shall be fully discharged thereafter from all liability and responsibility with respect to
such Collateral so transferred, and the transferee shall be vested with all the rights and powers of Agent hereunder with respect to
such Collateral so transferred, but with respect to any Collateral not so transferred, Agent shall retain all rights and powers hereby
given.


 


8.8       Agent’s
Duties.


 


(a)       Agent
shall use reasonable care in the custody and preservation of any Collateral in its possession. Without limitation on other conduct which
may be considered the exercise of reasonable care, Agent shall be deemed to have exercised reasonable care in the custody and preservation
of such Collateral if such Collateral is accorded treatment substantially equal to that which Agent accords its own property, it being
understood that Agent shall not have any responsibility for ascertaining or taking action with respect to calls, conversions, exchanges,
maturities, declining value, tenders or other matters relative to any Collateral, regardless of whether Agent has or is deemed to have
knowledge of such matters; or taking any necessary steps to preserve any 








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rights against any Person with respect to any Collateral. Under
no circumstances shall Agent be responsible for any injury or loss to the Collateral, or any part thereof, arising from any cause beyond
the reasonable control of Agent.

 


(b)       Agent
may at any time deliver the Collateral or any part thereof to Borrower and the receipt of Borrower shall be a complete and full acquittance
for the Collateral so delivered, and Agent shall thereafter be discharged from any liability or responsibility therefor.


 


(c)       Neither
Agent, nor any of its directors, officers, employees, agents, attorneys or any other person affiliated with or representing Agent
shall be liable for any claims, demands, losses or damages, of any kind whatsoever, made, claimed, incurred or suffered by Borrower
or any other party through the ordinary negligence of Agent, or any of its directors, officers, employees, agents, attorneys or any
other person affiliated with or representing Agent.


 


8.9       Termination
of Security Interests and Loan Documents. Upon the payment in full of the Obligations (other than inchoate indemnity obligations)
and satisfaction of all Borrower’s obligations under this Agreement and the other Loan Documents, and if Lenders have no further
obligations under the Commitment, the security interest granted hereby shall terminate, all rights to the Collateral shall revert to
Borrower and this Agreement and the other Loan Documents shall terminate; provided that (i) those obligations, liabilities, covenants
and terms that are expressly specified herein and in any other Loan Document as surviving that respective agreement’s termination,
including without limitation, Borrower’s indemnity obligations set forth in this Agreement, shall continue to survive notwithstanding
anything to the contrary set forth herein, and (ii) nothing set forth herein shall affect or be deemed to affect those obligations, liabilities,
covenants and terms set forth in any warrant instrument issued to a Lender or set forth in any other equity securities or convertible
debt securities of Borrower acquired by Lenders in connection with this Agreement. Upon any such termination, Agent shall return all
Collateral in its possession or control to Borrower and, at Borrower’s expense, execute and deliver to Borrower such documents
as Borrower shall reasonably request to evidence such termination. In connection therewith, Borrower agrees to provide each Lender with
such information as may be reasonably requested by such Lender as to whether the securities issuable upon the exercise of any Warrant
issued in connection with this Agreement constitute “qualified small business stock” for purposes of Section 1202(c) of the
Internal Revenue Code and Section 18152.5 of the California Revenue and Taxation Code.


 







ARTICLE
9 - GENERAL PROVISIONS


 


9.1       Notices.
Any notice given by any party under any Loan Document shall be in writing and personally delivered, sent by overnight courier, or United
States mail, postage prepaid, or sent by facsimile, or other authenticated message, charges prepaid, to the other party’s or parties’
addresses shown on the Supplement. Each party may change the address or facsimile number to which notices, requests and other communications
are to be sent by giving written notice of such change to each other party. Notice given by hand delivery shall be deemed received on
the date delivered; if sent by overnight courier, on the next Business Day after delivery to the courier service; if by first class mail,
on the third Business Day after deposit in the U.S. Mail; and if by facsimile, on the date of transmission.


 



9.2       Binding
Effect; Successors and Assigns. The Loan Documents shall be binding upon and inure to the benefit of Borrower, Lenders, Agent and
their respective successors and assigns; provided, however, that Borrower may not assign or transfer Borrower’s rights or obligations
under any Loan Document. Each Lender reserves the right to sell, assign, transfer, negotiate or grant participations in all or any part
of, or any interest in, such Lender’s rights and obligations under the Loan Documents provided that, so long as no Event of Default
has occurred and is continuing, no Lender shall not assign any of such rights or obligations to any competitor of Borrower or to any
party that is not a financial institution. In connection with any of the foregoing, Lenders and Agent may disclose all documents and
information which Lenders and Agent now or hereafter may have relating to the Loans, Borrower, or its business, provided that any Person
who receives such information shall have agreed in writing in advance to maintain the confidentiality of such information on terms no
less favorable to Borrower than are set forth in Section 9.13 hereof.


 


9.3       No
Waiver. Any waiver, consent or approval by Lenders of any Event of Default or breach of any provision, condition, or covenant of
any Loan Document must be in writing and shall be effective only to the extent set forth in writing. No waiver of any breach or default
shall be deemed a waiver of any later breach or default of the same or any other provision of any Loan Document. No failure or delay
on the part of Agent or any Lender in exercising any power, right, or privilege under any Loan Document shall operate as a waiver thereof,
and no single or partial exercise of any such power, right, or privilege shall preclude any further exercise thereof or the exercise
of any other power, right or privilege. Lenders have the right at their sole option to continue to accept interest and/or principal payments
due under the Loan Documents after default, and such acceptance shall not constitute a 








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waiver of said default or an extension of the
maturity of any Loan unless Lenders agree otherwise in writing.

 


9.4       Rights
Cumulative. All rights and remedies existing under the Loan Documents are cumulative to, and not exclusive of, any other rights or
remedies available under contract or applicable law.


 


9.5       Unenforceable
Provisions. Any provision of any Loan Document executed by Borrower which is prohibited or unenforceable in any jurisdiction,
shall be so only as to such jurisdiction and only to the extent of such prohibition or unenforceability, but all the remaining
provisions of any such Loan Document shall remain valid and enforceable.



 


9.6       Accounting
Terms. Except as otherwise provided in this Agreement, accounting terms and financial covenants and information shall be determined
and prepared in accordance with GAAP.


 


9.7       Indemnification;
Exculpation. Borrower shall pay and protect, defend and indemnify each Lender, Agent and each Lender’s and Agent’s employees,
officers, directors, shareholders, affiliates, correspondents, agents and representatives (other than Lender, collectively “Agents”)
against, and hold each Lender, Agent and each of such Agents harmless from, all claims, actions, proceedings, liabilities, damages, losses,
expenses (including, without limitation, attorneys’ fees and costs) and other amounts incurred by each Lender, Agent and each of
such Agents, arising from (i) the matters contemplated by this Agreement or any other Loan Documents, (ii) any dispute between Borrower
and a third party, or (iii) any contention that Borrower has failed to comply with any law, rule, regulation, order or directive applicable
to Borrower’s business; provided, however, that this indemnification shall not apply to any of the foregoing to the extent
incurred as the result of any Lender’s, Agent’s or any of such Agents’ employees or representatives gross negligence
or willful misconduct or in connection with any dispute or matter not involving an act or omission by Borrower. This indemnification
shall survive the payment and satisfaction of all of Borrower’s Obligations to Lenders.


 


9.8       Reimbursement.
Borrower shall reimburse each Lender and Agent for all costs and expenses, including without limitation reasonable attorneys’ fees
and disbursements expended or incurred by each Lender and Agent in any arbitration, mediation, judicial reference, legal action or otherwise
in connection with (a) the preparation and negotiation of the Loan Documents, (b) the amendment and enforcement of the Loan Documents,
including with






the rendering of legal advice as to each
Lender’s and Agent’s rights, remedies and obligations under the Loan Documents, (c) collecting any sum which becomes due
to each Lender under any Loan Document, (d) any proceeding for declaratory relief, any counterclaim to any proceeding, or any appeal,
or (e) the protection, preservation or enforcement of any rights of Lenders or Agent under the Loan Documents. For the purposes of this
section, attorneys’ fees shall include, without limitation, fees incurred in connection with the following: (1) contempt proceedings;
(2) discovery; (3) any motion, proceeding or other activity of any kind in connection with an Insolvency Proceeding; (4) garnishment,
levy, and debtor and third party examinations; and (5) post-judgment motions and proceedings of any kind, including without limitation
any activity taken to collect or enforce any judgment. All of the foregoing costs and expenses shall be payable upon demand by any Lender
or Agent, and if not paid within forty-five (45) days of presentation of invoices shall bear interest at the Default Rate.


 

9.9       Execution
in Counterparts; Electronic Signatures. This Loan Agreement and the other Loan Documents may be executed in any number of counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the same agreement. This Loan Agreement
and each of the other Loan Documents may be executed by electronic signatures. Borrower, Lenders and Agent expressly agree to conduct
the transactions contemplated by this Loan Agreement and the other Loan Documents by electronic means (including, without limitation,
with respect to the execution, delivery, storage and transfer of this Loan Agreement and each of the other Loan Documents by electronic
means and to the enforceability of electronic Loan Documents). Delivery of an executed signature page to this Loan Agreement and each
of the other Loan Documents by facsimile or other electronic mail transmission (including pdf or any electronic signature complying with
the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) shall be effective as delivery of a manually executed counterpart hereof
and thereof, as applicable. The words “execution,” “signed,” “signature” and words of like import
herein shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same
legal effect, validity and enforceability as a manually executed signature or the use of a paper-based recordkeeping systems, as the
case may be, to the extent and as provided for in any applicable law, including, without limitation, any state law based on the Uniform
Electronic Transactions Act.


 


9.10       Entire
Agreement. The Loan Documents are intended by the parties as the final expression of their agreement and therefore contain the entire
agreement 








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between the parties and supersede all prior understandings or agreements concerning the subject matter hereof. This Agreement
may be amended only in a writing signed by Borrower, each Lender and Agent.

 


9.11       Governing
Law and Jurisdiction.


 


(a)       THIS
LOAN AGREEMENT AND THE LOAN DOCUMENTS SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
CALIFORNIA.


 


(b)       ANY
LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS LOAN AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF
CALIFORNIA OR OF THE UNITED STATES FOR THE NORTHERN DISTRICT OF CALIFORNIA, AND BY EXECUTION AND DELIVERY OF THIS LOAN AGREEMENT, EACH
OF BORROWER, LENDERS AND AGENT CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS.
EACH OF BORROWER, LENDERS AND AGENT IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE
GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION
IN RESPECT OF THIS LOAN AGREEMENT OR ANY DOCUMENT RELATED HERETO. BORROWER, LENDERS AND AGENT EACH WAIVE PERSONAL SERVICE OF ANY SUMMONS,
COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY CALIFORNIA LAW.


 


9.12       Waiver
of Jury Trial. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW, BORROWER, LENDERS AND AGENT EACH WAIVES ITS RESPECTIVE RIGHTS TO A
TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS LOAN AGREEMENT, THE OTHER LOAN DOCUMENTS,
OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES
AGAINST ANY OTHER PARTY OR ANY PARTICIPANT OR ASSIGNEE, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. BORROWER,
LENDERS AND AGENT EACH AGREES THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT 






LIMITING
THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO
ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEMS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS LOAN
AGREEMENT OR THE OTHER LOAN DOCUMENTS OR ANY PROVISION HEREOF OR THEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS,
SUPPLEMENTS OR MODIFICATIONS TO THIS LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS. 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,
including to the extent any Lender or Agent seeks to enforce any judgment or takes any legal action in any other jurisdiction to realize
upon the Collateral, the parties hereto agree that, with respect to any actions and proceedings with respect to which the above jury
trial waiver is not enforceable, such disputes shall be decided by a reference to a private judge, mutually selected by the parties,
including, if applicable, in accordance with the provisions of California Code of Civil Procedure §§ 638 through 645.1, inclusive.
This Section 9.12 shall survive the termination of this Loan Agreement.


 

9.13       Confidentiality.
Each Lender agrees to hold in confidence all confidential information that it receives from Borrower pursuant to the Loan Documents,
except for disclosure as shall be reasonably required: (a) to legal counsel and accountants for each Lender and Agent (to
the extent that such professional advisors are subject to the same obligations of confidentiality as set forth herein); (b) to
other professional advisors to each Lender and Agent (to the extent that such professional advisors
are subject to the same obligations of confidentiality as set forth herein); (c) to regulatory officials having jurisdiction over
each Lender and Agent to the extent required by law; (d) to each Lender’s and Agent’s investors and prospective investors
(subject to the same confidentiality obligation set forth herein), and in each Lender’s and Agent’s SEC filings as required
by law, but only to the extent such disclosure is required under applicable law; (e) as required by law or legal process or in connection
with any legal proceeding to which Lenders, Agent and Borrower are adverse parties; (f) in connection with a disposition or proposed
disposition of any or all of each Lender’s rights hereunder to any assignee or participant (subject to the same confidentiality
obligation set forth herein); (g) to each Lender’s and Agent’s subsidiaries or Affiliates in connection with their business
with Borrower (subject to the same confidentiality obligation set forth herein); (h) as 








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required
by valid order of a court of competent jurisdiction, administrative agency or governmental body, or by any applicable law, rule,
regulation, subpoena, or any other administrative or legal process, or by applicable regulatory or professional standards, including
in connection with any judicial or other proceeding involving any Lender or Agent relating to this Agreement and the transactions
contemplated hereby; and (i) as required in connection with each Lender’s and Agent’s examination or audit. For purposes
of this section, each Lender, Agent and Borrower agree that “confidential information” shall mean any information
regarding or relating to Borrower other than: (i) information which is or becomes generally available to the public other than as
result of a disclosure by such Lender or Agent in violation of this section, (ii) information which becomes available to any Lender
or Agent from any other source (other than Borrower) which such Lender or Agent does not know is bound by a confidentiality
agreement with respect to the information made available, and (iii) information that such Lender or Agent knows on a
non-confidential basis prior to Borrower disclosing it to such Lender or Agent. In addition, Borrower agrees that each Lender and
Agent may use Borrower’s name, logo and/or trademark in connection with certain promotional materials that each Lender and
Agent may disseminate to the public, including, but are not limited to, brochures, internet website, press releases and any other
materials relating to the fact that each Lender and Agent has a financing relationship with Borrower.



 


9.14       Lender’s
Receipt of Confidential Information. Lenders and Agent acknowledge that pursuant to the terms of this Agreement, Lenders and Agent
may receive information deemed confidential or “insider” information under the Exchange Act and other applicable law. Lenders
and Agent shall hold such information in confidence, and not disclose such information to any Person (other than pursuant to Section
9.13 above) until such information has been approved for release by Borrower and is released to the general public. Lenders and Agent
shall not use such information to purchase, sell, or otherwise arrange for the purchase or sale of shares of Borrower until such information
has been approved for release by Borrower and is released to the general public.


 


ARTICLE
10 - AGENCY


 


10.1       Appointment.
Each Lender hereby irrevocably appoints Avenue Venture Opportunities Fund, L.P. to act on its behalf as the administrative agent
hereunder and under the other Loan Documents and authorizes the Agent to take such actions on its behalf and to exercise such powers
as are delegated to the Agent by 





the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto.


 



10.2       Indemnity.
Each Lender agrees to indemnify the Agent in its capacity as such (to the extent not reimbursed by Borrowers and without limiting
the obligation of Borrowers to do so), according to its respective Commitment percentage in effect on the date on which indemnification
is sought under this Section 10.2, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind whatsoever that may at any time be imposed on, incurred by or asserted against the
Agent in any way relating to or arising out of, this Loan Agreement, a Supplement, any of the other Loan Documents or any documents contemplated
by or referred to herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted by the Agent under
or in connection with any of the foregoing; The agreements in this Section shall survive the payment of each Loan and all other amounts
payable hereunder. Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of any Lender
or as Agent shall believe in good faith shall be necessary, under the circumstances or (ii) in the absence of its own gross negligence
or willful misconduct.


 


10.3       Agent
in Its Individual Capacity. The Person serving as the Agent hereunder shall have the same rights and powers in its capacity as a
Lender as any other Lender and may exercise the same as though it were not the Agent and the term “Lender” shall, unless
otherwise expressly indicated or unless the context otherwise requires, include each such Person serving as Agent hereunder in its individual
capacity.


 


10.4       Exculpatory
Provisions. The Agent shall have no duties or obligations except those expressly set forth herein and in the other Loan Documents.
Without limiting the generality of the foregoing, the Agent shall not:


 


		(a)	be
                                            subject to any fiduciary or other implied duties, regardless of whether any default or any
                                            Event of Default has occurred and is continuing;



 


		(b)	have
                                            any duty to take any discretionary action or exercise any discretionary powers, except discretionary
                                            rights and powers expressly contemplated hereby or by the other Loan Documents that Agent
                                            is required to exercise as directed in writing by both Lenders, provided that the Agent shall
                                            not be required to take any action that, in its opinion or the opinion of its counsel, may
                                            expose the Agent to 









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		 	liability or that is contrary to any Loan Document or applicable law;
                                            and


 


		(c)	except
as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and the Agent shall not be liable for the failure
to disclose, any information relating to the Borrowers or any of its Affiliates that is communicated to or obtained by



any
Person serving as Agent or any of its Affiliates in any capacity.


 


10.5       Duties.
Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made
in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered
hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements
or other terms or conditions set forth herein or therein or the occurrence of any default or Event of Default, (iv) the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document or (v) the satisfaction
of any condition set forth in Section 4 or elsewhere herein, other than to confirm receipt of items expressly required to be delivered
to the Agent.


 


10.6       Reliance
by Agent. Agent may rely, and shall be fully protected in acting, or refraining to act, upon, any resolution, statement, certificate,
instrument, opinion, report, notice, request, consent, order, bond or other paper or document that it has no reason to believe to be
other than genuine and to have been signed or presented by the proper party or parties or, in the case of cables, telecopies and telexes,
to have been sent by the proper party or parties. In the absence of its gross negligence or willful misconduct, Agent may conclusively
rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished
to Agent and conforming to the requirements of the Loan Agreement or any of the other Loan Documents. Agent may consult with counsel,
and any opinion or legal advice of such counsel shall be full and complete authorization and protection in respect of any action taken,
not taken or suffered by Agent hereunder or under any Loan Documents in accordance therewith. Agent shall have the right at any time
to seek instructions concerning the administration of the Collateral from any court of competent jurisdiction. Agent shall not be under
any obligation to exercise any of the rights or powers granted to Agent by this Agreement and the other Loan Documents at the request
or direction of Lenders unless Agent shall have been provided by Lenders with adequate security and indemnity against the costs, expenses
and 







liabilities that may be incurred by it in compliance with such request or direction.


 


10.7       Collateral
Agent. The Agent shall also act as the “collateral agent” under the Loan Documents, and each of the Lenders hereby irrevocably
appoints and authorizes the Agent to act as the agent of such Lender for purposes of acquiring, holding and enforcing any and all Liens
on Collateral granted by Borrowers to secure any of the Obligations. Each Lender hereby authorizes Agent, on behalf of and for the ratable
benefit of Lenders, in its capacity as collateral agent, to enter into any of the Loan Documents as secured party for purposes of acquiring,
holding and enforcing all Liens on Collateral (and any other collateral from time to time securing the Obligations), and as Agent for
and representative of Lender thereunder, and each Lender agrees to be bound by the terms of each such document. All powers, rights and
remedies under the Loan Documents may be exercised solely by Agent for the benefit of Lenders and Agent in accordance with the terms
thereof. In the event of a foreclosure on any of the Collateral pursuant to a public or private sale, either Agent or any Lender may
be the purchaser of any or all of such Collateral at any such sale and Agent, as agent for and representative of Lenders (but not any
Lender or Lenders in its or their respective individual capacities unless Required Lenders shall otherwise agree in writing) shall be
entitled (subject to the proviso at the end of this sentence), for the purpose of bidding and making settlement or payment of the purchase
price for all or any portion of the Collateral sold at any such public sale, to use and apply any of the Obligations as a credit on account
of the purchase price for any Collateral payable by Agent at such sale; provided however, that neither Agent nor any Lender shall “credit
bid” at any foreclosure and/or other public or private sale absent the consent of the Required Lenders. Without limiting the generality
of the foregoing, Agent is hereby expressly authorized to execute any and all documents (including releases) that bind Lenders with respect
to (i) the Collateral and the rights of Lenders with respect thereto, as contemplated by and in accordance with the provisions of the
Loan Documents, and (ii) any other subordination agreement with respect to any Subordinated Debt.


 


10.8       Successor
Agents. Agent may resign upon thirty (30) days’ notice to the Lenders and Borrowers. If Agent shall resign in its capacity
under this Loan Agreement and the other Loan Documents, then the Required Lenders shall appoint a successor agent, whereupon such successor
agent shall succeed to the rights, powers and duties of Agent in its capacity, and the term “Agent” shall mean such successor
agent effective upon such appointment and approval, and the former Agent’s rights, powers and duties as Agent in its capacity 








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shall
be terminated, without any other or further act or deed on the part of such former Agent or any of the parties to this Agreement or any
Lender. If no applicable successor agent has accepted appointment as such Agent in its capacity by the date that is twenty (20) days
following such retiring Agent’s notice of resignation, such retiring Agent’s resignation shall nevertheless
thereupon become effective and the Lenders shall assume and perform all of the duties of such Agent hereunder until such time, if any,
as the Required Lenders appoint a successor agent as provided for above. After any retiring Agent’s resignation as Agent, the provisions
of this Section 10 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was an Agent under this Agreement
and the other Loan Documents.


 


ARTICLE
11 - DEFINITIONS


 


The
definitions appearing in this Loan Agreement or any Supplement shall be applicable to both the singular and plural forms of the defined
terms:


 


“Account”
means any “account,” as such term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower
now holds or hereafter acquires any interest and, in any event, shall include, without limitation, all accounts receivable, book debts
and other forms of obligations (other than forms of obligations evidenced by Chattel Paper, Documents or Instruments) now owned or hereafter
received or acquired by or belonging or owing to Borrower (including, without limitation, under any trade name, style or division thereof)
whether arising out of goods sold or services rendered by Borrower or from any other transaction, whether or not the same involves the
sale of goods or services by Borrower (including, without limitation, any such obligation that may be characterized as an account or
contract right under the UCC) and all of Borrower’s rights in, to and under all purchase orders or receipts now owned or hereafter
acquired by it for goods or services, and all of Borrower’s rights to any goods represented by any of the foregoing (including,
without limitation, unpaid seller’s rights of rescission, replevin, reclamation and stoppage in transit and rights to returned,
reclaimed or repossessed goods), and all monies due or to become due to Borrower under all purchase orders and contracts for the sale
of goods or the performance of services or both by Borrower or in connection with any other transaction (whether or not yet earned by
performance on the part of Borrower), now in existence or hereafter occurring, including, without limitation, the right to receive the
proceeds of said purchase orders and contracts, and all collateral security and guarantees of any kind given by any Person with respect
to any of the foregoing.


 







“Affiliate”
means any Person which directly or indirectly controls, is controlled by, or is under common control with Borrower. “Control,”
“controlled by” and “under common control with” mean direct or indirect possession of the power to direct or
cause the direction of management or policies (whether through ownership of voting securities, by contract or otherwise); provided, that
control shall be conclusively presumed when any Person or affiliated group directly or indirectly owns ten percent (10%) or more of the
securities having ordinary voting power for the election of directors of a corporation.


“Agreement”
has the meaning as set forth in the introductory paragraph hereto.


 


“Bankruptcy
Code” means the Federal Bankruptcy Reform Act of 1978 (11 U.S.C. §101, et seq.), as amended.


 


“Basic
Interest” means the rate of interest payable on the outstanding balance of each Loan at the applicable Designated Rate.


 


“Borrowing
Date” means the Business Day on which the proceeds of a Loan are disbursed by Lender.


 


“Borrowing
Request” means a written request from Borrower in substantially the form of Exhibit “B” to the Supplement,
requesting the funding of one or more Loans on a particular Borrowing Date.


 


“Business
Day” means any day other than a Saturday, Sunday or other day on which commercial banks in New York City or San Francisco
are authorized or required by law to close.


 


“Change
of Control” means: (a) any sale, license, or other disposition of all or substantially all of the assets of Borrower, other
than as permitted by Section 6.5; (b) any reorganization, consolidation, merger or other transaction in which Borrower is not the surviving
entity; or (c) any transaction or series of related transactions in which any Person or two or more Persons acting in concert (other
than Permitted Holders) shall have acquired, by contract or otherwise, the power to control the management of Borrower, or to control
the equity interests of Borrower entitled to vote for members of the Board of Directors or equivalent governing body of Borrower on a
fully-diluted basis (and taking into account all such securities that such Person or Persons have the right to acquire pursuant to any
option right) representing 50% or more of the combined voting power of such securities (other than in connection with a sale to recognized
venture capital investors in a transaction or series of transactions effected by Borrower for financing purposes, so long as Borrower
identifies to Lenders the venture capital investors prior to the closing of 









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the transaction and provides Lenders with a description of
the material terms of such transaction).


 


“Chattel
Paper” means any “chattel paper,” as such term is defined in the UCC, now owned or hereafter acquired by Borrower
or in which Borrower now holds or hereafter acquires any interest.


 


 


“Closing
Date” means the date of this Loan Agreement.


 


“Collateral”
means all of Borrower’s right, title and interest in and to the following property, whether now owned or hereafter acquired
and wherever located: (a) all Receivables; (b) all Equipment; (c) all Fixtures; (d) all General Intangibles; (e) all Inventory; (f) all
Investment Property; (g) all Deposit Accounts; (h) all Shares; (i) all other Goods and personal property of Borrower, whether tangible
or intangible and whether now or hereafter owned or existing, leased, consigned by or to, or acquired by, Borrower and wherever located;
(j) all Records; and (k) all Proceeds of each of the foregoing and all accessions to, substitutions and replacements for, and rents,
profits and products of each of the foregoing.


 


Notwithstanding
the foregoing the term “Collateral” shall not include: (i) more than sixty-five percent (65%) of the issued and outstanding
capital stock, membership units or other securities entitled to vote owned or held of record by Borrower in any Subsidiary that is a
controlled foreign corporation (as defined in the Internal Revenue Code), provided that the Collateral shall include one hundred percent
(100%) of the issued and outstanding non-voting capital stock of such Subsidiary; (ii) “intent-to-use” trademarks at all
times prior to the first use thereof, whether by the actual use thereof in commerce, the recording of a statement of use with the United
States Patent and Trademark Office or otherwise, but only to the extent the granting of a security interest in such “intent to
use” trademarks would be contrary to applicable law; (iii) any contract, Instrument or Chattel Paper in which Borrower has any
right, title or interest if and to the extent such contract, Instrument or Chattel Paper includes a provision containing a restriction
on assignment such that the creation of a security interest in the right, title or interest of Borrower therein would be prohibited and
would, in and of itself, cause or result in a default thereunder enabling another person party to such contract, Instrument or Chattel
Paper to enforce any remedy with respect thereto or (iv) Excluded Accounts; provided, however, that the foregoing exclusion shall
not apply if (A) such prohibition has been waived or such other person has otherwise consented to the creation hereunder of a security
interest in such contract, Instrument or Chattel Paper, or (B) such prohibition would be rendered ineffective pursuant to Sections 9-407(a)
or 9-408(a) of the UCC, as applicable and as then in effect in any 




relevant jurisdiction, or any other applicable law (including the
Bankruptcy Code or principles of equity); provided, further, that immediately upon the ineffectiveness, lapse or termination of
any such provision, the term “Collateral” shall include, and Borrower shall be deemed to have granted a security interest
in, all its rights, title and interests in and to such contract, Instrument or Chattel Paper as if such provision had never been in effect;
and provided further that the foregoing exclusion shall in no way be construed so as to limit, impair or otherwise affect Agent’s
unconditional continuing security interest in and to all rights, title and interests of Borrower in or to any payment obligations or
other rights to receive monies due or to become due under any such contract, Instrument or Chattel Paper and in any such monies and other
proceeds of such contract, Instrument or Chattel Paper.


 


“Commitment”
means the obligation of each Lender to make Loans to Borrower up to the aggregate principal amount set forth in the Supplement.


 


“Copyright
License” means any written agreement granting any right to use any Copyright or Copyright registration now owned or hereafter
acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.


 


“Copyrights”
means all of the following now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest:
(i) all copyrights, whether registered or unregistered, held pursuant to the laws of the United States, any State thereof or of any other
country; (ii) all registrations, applications and recordings in the United States Copyright Office or in any similar office or agency
of the United States, any State thereof or any other country; (iii) all continuations, renewals or extensions thereof; and (iv) any registrations
to be issued under any pending applications.


 


“Default”
means an event which with the giving of notice, passage of time, or both would constitute an Event of Default.


 


“Default
Rate” means the applicable Designated Rate plus five percent (5%) per annum.


 


“Deposit
Accounts” means any “deposit accounts,” as such term is defined in the UCC, now owned or hereafter acquired
by Borrower or in which Borrower now holds or hereafter acquires any interest.


 


“Designated
Rate” means the rate of interest per annum described in the Supplement as being applicable to an outstanding Loan from
time to time.








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“Disclosure
Letter” means that certain Confidential Disclosure Letter delivered by the Borrower to the Lender of even date herewith.


 


“Documents”
means any “documents,” as such term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower
now holds or hereafter acquires any interest.


 


“Dollars”
or “$” means lawful currency of the United States.


 


“Environmental
Laws” means all federal, state or local laws, statutes, common law duties, rules, regulations, ordinances and codes, together
with all administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any governmental
authorities, in each case relating to environmental, health, or safety matters.


 


“Equipment”
means any “equipment,” as such term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower
now holds or hereafter acquires any interest and any and all additions, substitutions and replacements of any of the foregoing, wherever
located, together with all attachments, components, parts, equipment and accessories installed thereon or affixed thereto.


 


“Event
of Default” means any event described in Section 7.1.


 


“Exchange
Act” means, at any time, the Securities Exchange Act of 1934, as amended from time to time, and any successor statute,
and the rules and regulations promulgated thereunder.


 


“Excluded
Account” means any account that is (i) exclusively used for payroll, payroll taxes or other employee wage or benefit payments
to or for the benefit of Borrower’s employees and identified to Lender as such, and (ii) other accounts with a monthly average
balance of less than $10,000 in the aggregate.


 


“Fixtures”
means any “fixtures,” as such term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower
now holds or hereafter acquires any interest.


 


“GAAP”
means generally accepted accounting principles and practices consistent with those principles and practices promulgated or adopted
by the Financial Accounting Standards Board and the Board of the American Institute of Certified Public Accountants, their respective
predecessors and successors, as in effect from time to time. Each 






accounting term used but not otherwise expressly defined herein shall
have the meaning given it by GAAP.


 


“General
Intangibles” means any “general intangibles,” as such term is defined in the UCC, now owned or hereafter acquired
by Borrower or in which Borrower now holds or hereafter acquires any interest and, in any event, shall include, without limitation, all
right, title and interest that Borrower may now or hereafter have in or under any contract, all customer lists, Copyrights, Trademarks,
Patents, websites, domain names, and all applications therefor and reissues, extensions, or renewals thereof, other items of, and rights
to, Intellectual Property, interests in partnerships, joint ventures and other business associations, Licenses, permits, trade secrets,
proprietary or confidential information, inventions (whether or not patented or patentable), technical information, procedures, designs,
knowledge, know-how, software, data bases, data, skill, expertise, recipes, experience, processes, models, drawings, materials and records,
goodwill (including, without limitation, the goodwill associated with any Trademark, Trademark registration or Trademark licensed under
any Trademark License), claims in or under insurance policies, including unearned premiums, uncertificated securities, money, cash or
cash equivalents, deposit, checking and other bank accounts, rights to sue for past, present and future infringement of Copyrights, Trademarks
and Patents, rights to receive tax refunds and other payments and rights of indemnification.


 


“Goods”
means any “goods,” as such term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower
now holds or hereafter acquires any interest.


 


“Indebtedness”
of any Person means at any date, without duplication and without regard to whether matured or unmatured, absolute or contingent:
(i) all obligations of such Person for borrowed money; (ii) all obligations of such Person evidenced by bonds, debentures, notes, or
other similar instruments; (iii) all obligations of such Person to pay the deferred purchase price of property or services, except trade
accounts payable arising in the ordinary course of business and accounts payable and other liabilities incurred in the ordinary course
of business that are not overdue by more than one-hundred twenty (120) days; (iv) all obligations of such Person as lessee under capital
leases that is properly classified and accounted for as a liability on a balance sheet in accordance with GAAP and attributable to such
Person; (v) all obligations of such Person to reimburse or prepay any bank or other Person in respect of amounts paid under a letter
of credit, banker’s acceptance, or similar instrument, whether drawn or undrawn; (vi) all obligations of such Person to purchase
securities which arise out of or in connection with the sale of the same or substantially similar securities; (vii) all 









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obligations of such Person to purchase, redeem, exchange, convert or otherwise acquire for value any capital stock of such Person or any warrants, rights or options to acquire such capital stock, now or hereafter outstanding, except to the extent that such obligations remain performable solely at the option of such Person; (viii) all obligations to repurchase assets previously sold (including any obligation to repurchase any accounts or chattel paper under any factoring, receivables purchase, or similar arrangement); (ix) obligations of such Person under interest rate swap, cap, collar or similar hedging arrangements; and (x) all obligations of others of any type described in clause (i) through clause (ix) above guaranteed by such Person.


 


 


“Insolvency
Proceeding” means with respect to a Person (a) any case, action or proceeding before any court or other governmental authority
relating to bankruptcy, reorganization, insolvency, liquidation, receivership, dissolution, winding-up or relief of debtors with respect
to such Person, or (b) any general assignment for the benefit of creditors, composition, marshalling of assets for creditors, or other,
similar arrangement in respect of such Person’s creditors generally or any substantial portion of its creditors, undertaken under
U.S. Federal, state or foreign law, including the Bankruptcy Code, but in each case, excluding any avoidance or similar action against
such Person commenced by an assignee for the benefit of creditors, bankruptcy trustee, debtor in possession, or other representative
of another Person or such other Person’s estate.


 


“Instruments”
means any “instrument,” as such term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower
now holds or hereafter acquires any interest.


 


“Intellectual
Property” means all of Borrower’s Copyrights, Trademarks, Patents, Licenses, trade secrets, source codes, customer
lists, proprietary or confidential information, inventions (whether or not patented or patentable), technical information, procedures,
designs, knowledge, know-how, software, data bases, skill, expertise, experience, processes, models, drawings, materials, records and
goodwill associated with the foregoing.


 


“Intellectual
Property Security Agreement” means any Intellectual Property Security Agreement executed and delivered by Borrower in favor
of Agent, as the same may be amended, amended and restated, supplemented, or otherwise modified from time to time.


 

“Inventory”
means any “inventory,” as such term is defined in the UCC, wherever located, now owned or hereafter acquired by Borrower
or in which Borrower now holds or hereafter acquires any interest, and, in any event, 






shall include, without limitation, all inventory,
goods and other personal property that are held by or on behalf of Borrower for sale or lease or are furnished or are to be furnished
under a contract of service or that constitute raw materials, work in process or materials used or consumed or to be used or consumed
in Borrower’s business, or the processing, packaging, promotion, delivery or shipping of the same, and all finished goods, whether
or not the same is in transit or in the constructive, actual or exclusive possession of Borrower or is held by others for Borrower’s
account, including, without limitation, all goods covered by purchase orders and contracts with suppliers and all goods billed and held
by suppliers and all such property that may be in the possession or custody of any carriers, forwarding agents, truckers, warehousemen,
vendors, selling agents or other Persons.


 


“Investment”
means, as to any Person, any loans to any other Person, guaranties of the obligations of, advances to, or capital contributions to
any other Person.


 


“Investment
Property” means any “investment property,” as such term is defined in the UCC, now owned or hereafter acquired
by Borrower or in which Borrower now holds or hereafter acquires any interest.


 


“Letter-of-Credit
Rights” means any “letter-of-credit rights,” as such term is defined in the UCC, now owned or hereafter acquired
by Borrower or in which Borrower now holds or hereafter acquires any interest, including any right to payment under any letter of credit.


 


“License”
means any Copyright License, Patent License, Trademark License or other license of rights or interests now held or hereafter acquired
by Borrower or in which Borrower now holds or hereafter acquires any interest and any renewals or extensions thereof.


 


“Lien”
means any mortgage, deed of trust, pledge, hypothecation, assignment for security, security interest, encumbrance, levy, lien or
charge of any kind, whether voluntarily incurred or arising by operation of law or otherwise, against any property, any conditional sale
or other title retention agreement, any lease in the nature of a security interest, and the filing of any financing statement (other
than a precautionary financing statement with respect to a lease that is not in the nature of a security interest) under the UCC or comparable
law of any jurisdiction.


 


“Loan”
means an extension of credit by Lender under this Agreement.


 


“Loan
Agreement” has the meaning as set forth in the introductory paragraph.


 








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“Loan
Documents” means, individually and collectively, this Loan Agreement, each Supplement, the Disclosure Letter, each Note,
the Intellectual Property Security Agreement, and any other security or pledge agreement(s), any Warrant issued by Borrower in connection
with this Agreement, and all other contracts, instruments, addenda and documents executed in connection with this Agreement or the extensions
of credit which are the subject of this Agreement.


 


“Material
Adverse Effect” means (a) a material adverse change in, or a material adverse effect upon, the operations, business, properties,
or condition (financial or otherwise) of Borrower; (b) a material impairment of the ability of Borrower to perform under any Loan Document;
or (c) a material adverse effect upon the legality, validity, binding effect or enforceability against Borrower of any Loan Document.


 


“Note”
means a promissory note substantially in the form attached to the Supplement as Exhibit “A”, executed by Borrower
evidencing each Loan.


 


“Obligations”
means all debts, obligations and liabilities of Borrower to each Lender or Agent now or hereafter made, incurred or created under,
pursuant to or in connection with this Agreement or any other Loan Document (other than the Warrant), whether voluntary or involuntary
and however arising or evidenced, whether direct or acquired by such Lender or Agent by assignment or succession, whether due or not
due, absolute or contingent, liquidated or unliquidated, determined or undetermined, and whether Borrower may be liable individually
or jointly, or whether recovery upon such debt may be or become barred by any statute of limitations or otherwise unenforceable; and
all renewals, extensions and modifications thereof; and all attorneys’ fees and costs incurred by each Lender and Agent in connection
with the collection and enforcement thereof as provided for in any such Loan Document.


 


“Patent
License” means any written agreement granting any right with respect to any invention on which a Patent is in existence
now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.


 


“Patents”
means all of the following property now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires
any interest: (a) all letters patent of, or rights corresponding thereto in, the United States or any other country, all registrations
and recordings thereof, and all applications for letters patent of, or rights corresponding thereto in, the United States or any other
country, including, without limitation, registrations, recordings and applications in the United States Patent and 









Trademark Office or
in any similar office or agency of the United States, any State thereof or any other country; (b) all reissues, continuations, continuations-in-part
or extensions thereof; (c) all petty patents, divisionals, and patents of addition; and (d) all patents to be issued under any such applications.


 


“Perfection
Certificate” means that certain Perfection Certificate dated October 25, 2021 by Borrower to Lender as amended, amended
and restated, supplemented, or otherwise modified from time to time.


 


“Permitted
Holders” means Terren Peizer and Cuong Do.


 


“Permitted
Lien” means:


 


(a)       involuntary
Liens which, in the aggregate, would not have a Material Adverse Effect and which in any event would not exceed, in the aggregate, the
Threshold Amount;


 


(b)       Liens
for current taxes or other governmental or regulatory assessments which are not delinquent, or which are contested in good faith by the
appropriate procedures and for which appropriate reserves are maintained;


 


(c)       security
interests on any property held or acquired by Borrower in the ordinary course of business securing Indebtedness incurred or assumed for
the purpose of financing all or any part of the cost of acquiring such property; provided, that such Lien attaches solely to the
property acquired with such Indebtedness and that the principal amount of such Indebtedness does not exceed one hundred percent (100%)
of the cost of such property;


 


(d)       Liens
in favor of Agent;


 


(e)       bankers’
liens, rights of setoff and similar Liens incurred on deposits made in the ordinary course of business as long as an account control
agreement (or equivalent) for each account in which such deposits are held in a form acceptable to Agent has been executed and delivered
to Agent to the extent required under Section 6.11;


 


(f)       materialmen’s,
mechanics’, repairmen’s, warehousemen’s, carriers’, landlord’s (subject to Section 5.9(e) hereof), employees’
or other like Liens arising in the ordinary course of business and which are not delinquent for more than 45 days or are being contested
in good faith by appropriate proceedings;


 


(g)       any
judgment, attachment or similar Lien, unless the judgment it secures exceeds the Threshold 








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Amount and has not been discharged or execution thereof effectively stayed and bonded against pending appeal within 30 days of the entry thereof;


 


 


(h)       licenses
or sublicenses of Intellectual Property in accordance with the terms of Section 6.5 hereof;


 


(i)       Liens
securing Subordinated Debt;


 


(j)       Liens
acceptable to Lenders, which are listed in the Disclosure Letter and any renewals or extensions thereof;


 


(k)       the
interests of licensors under inbound licenses to Borrower;


 


(l)       the
interests of sub-lessees under subleases of real property;


 


(m)       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);


 


(n)       deposits
to secure the performance of bids, trade contracts (other than for Indebtedness), leases (other than capital lease obligations), statutory
obligations, surety and appeal bonds, performance bonds and other obligations of a like nature arising as a matter of law and incurred
in the ordinary course of business; and


 


(o)       zoning
restrictions, easements, rights of way, restrictions on use of real property and other similar encumbrances incurred in the ordinary
course of business which, in the aggregate, are not substantial in amount and do not materially detract from the value of the property
subject thereto or interfere with the ordinary conduct of the business of the Borrower or any of its Subsidiaries.


 


“Person”
means any individual, sole proprietorship, partnership, joint venture, trust, unincorporated organization, association, corporation,
limited liability company, institution, public benefit corporation, other entity or government (whether federal, state, county, city,
municipal, local, foreign, or otherwise, including any instrumentality, division, agency, body or department thereof).


 

“Proceeds”
means “proceeds,” as such term is defined in the UCC and, in any event, shall include, without limitation, (a) any and
all Accounts, Chattel Paper, Instruments, cash or other forms of money or currency or other proceeds payable to Borrower from time to
time in respect of the Collateral, (b) any and all proceeds of any 





insurance, indemnity, warranty or guaranty payable to Borrower from
time to time with respect to any of the Collateral, (c) any and all payments (in any form whatsoever) made or due and payable to Borrower
from time to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral
by any governmental authority (or any Person acting under color of governmental authority), (d) any claim of Borrower against third parties
(i) for past, present or future infringement of any Copyright, Patent or Patent License or (ii) for past, present or future infringement
or dilution of any Trademark or Trademark License or for injury to the goodwill associated with any Trademark, Trademark registration
or Trademark licensed under any Trademark License and (e) any and all other amounts from time to time paid or payable under or in connection
with any of the Collateral.


 


 


“Receivables”
means all of Borrower’s Accounts, Instruments, Documents, Chattel Paper, Supporting Obligations, and letters of credit and
Letter-of-Credit Rights.


 


“Records”
means all Borrower’s computer programs, software, hardware, source codes and data processing information, all written documents,
books, invoices, ledger sheets, financial information and statements, and all other writings concerning Borrower’s business.


 


“Related
Person” means any Affiliate of Borrower, or any officer, employee, director or equity security holder of Borrower or any
Affiliate.


 


“Required
Lenders” (and each a “Required Lender”) means, as of any date of determination, Lenders holding at least
51% of the outstanding principal balance of the total principal amount of Loans then outstanding.


 


“Rights
to Payment” means all Borrower’s accounts, instruments, contract rights, documents, chattel paper and all other rights
to payment, including, without limitation, the Accounts, all negotiable certificates of deposit and all rights to payment under any Patent
License, any Trademark License, or any commercial or standby letter of credit.


 


“Security
Documents” means this Loan Agreement, the Supplement hereto, the Intellectual Property Security Agreement, and any and
all account control agreements, collateral assignments, chattel mortgages, financing statements, amendments to any of the foregoing
and other documents from time to time executed or filed to create, perfect or maintain the perfection of Agent’s Liens on the
Collateral.


 


“Shares”
means: (a) one hundred percent (100%) of the issued and outstanding capital stock, membership units or 








    -27-


     


    


other securities owned or
held of record by Borrower in any Subsidiary that is not a controlled foreign corporation (as defined in the Internal Revenue Code),
and (b) 65% of the issued and outstanding capital stock, membership units or other securities entitled to vote owned or held of record
by Borrower in any Subsidiary that is a controlled foreign corporation (as defined in the Internal Revenue Code).



 


“Subordinated
Debt” means Indebtedness (i) approved by Required Lenders; and (ii) where the holder’s right to payment of such Indebtedness,
the priority of any Lien securing the same, and the rights of the holder thereof to enforce remedies against Borrower following default
have been made subordinate to the Liens of Agent and to the prior payment to each Lender of the Obligations, either (A) pursuant to a
written subordination agreement approved by Required Lenders in their sole but reasonable discretion or (B) on terms otherwise approved
by Required Lenders in their sole but reasonable discretion.


 


“Subsidiary”
means any Person a majority of the equity ownership or voting stock of which is directly or indirectly now owned or hereafter acquired
by Borrower or by one or more other Subsidiaries.


 


“Supplement”
means that certain supplement to the Loan and Security Agreement, as the same may be amended or restated from time to time, and any
other supplements entered into between Borrower and each Lender, as the same may be amended or restated from time to time.


 


“Supporting
Obligations” means any “supporting obligations,” as such term is defined in the UCC, now owned or hereafter
acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.


 


“Termination
Date” has the meaning specified in the Supplement.


 


“Threshold
Amount” has the meaning specified in the Supplement.


 


“Trademark
License” means any written agreement granting any right to use any Trademark or Trademark registration now owned or hereafter
acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.


 

“Trademarks”
means all of the following property now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires
any interest: (a) all trademarks, tradenames, corporate names, business names, trade styles, service marks, logos, other source
or business identifiers, prints and labels on which any of the foregoing have appeared or appear, designs and general 





intangibles of
like nature, now existing or hereafter adopted or acquired, all registrations and recordings thereof, and any applications in connection
therewith, including, without limitation, registrations, recordings and applications in the United States Patent and Trademark Office
or in any similar office or agency of the United States, any State thereof or any other country or any political subdivision thereof
and (b) reissues, extensions or renewals thereof.


 



“UCC”
means the Uniform Commercial Code as the same may, from time to time, be in effect in the State of California; provided, 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, Agent’s Lien on any Collateral is governed by the Uniform Commercial Code as enacted and in effect in a jurisdiction
other than the State of California, the term “UCC” 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 related to such provisions. Unless otherwise defined herein, terms that are defined in the UCC and used herein
shall have the meanings given to them in the UCC.


 


“Warrant”
has the meaning specified in the Supplement.


 


[Signature
pages follow]










    -28-


     


    

[Signature
page to Loan and Security Agreement]


 


IN
WITNESS WHEREOF, the parties have executed this Loan Agreement as of the date first above written.


 


BORROWER:


 


BIOVIE
INC.,


a
Nevada corporation


 


	By:	/s/ Cuong Do
	Name: 	Cuong Do
	Title:	President and Chief Executive Officer




     


     


    

[Signature
page to Loan and Security Agreement]


 


LENDERS:


 


AVENUE
VENTURE OPPORTUNITIES FUND, L.P.


 


	By:	Avenue
    Venture Opportunities Partners, LLC
	Its:	General
    Partner
	 	 
	By:	/s/ Sonia Gardner	 
	Name: 	Sonia
    Gardner
	Title:	Authorized
    Signatory


 


AVENUE
VENTURE OPPORTUNITIES FUND II, L.P.


 


	By:	Avenue
    Venture Opportunities Partners II, LLC
	Its:	General
    Partner
	 	 
	By:	/s/ Sonia Gardner	 
	Name: 	Sonia
    Gardner
	Title:	Authorized
    Signatory


 


AGENT:


 


AVENUE
VENTURE OPPORTUNITIES FUND, L.P.


 


	By:	Avenue
    Venture Opportunities Partners, LLC
	Its:	General
    Partner
	 	 
	By:	/s/ Sonia Gardner	 
	Name: 	Sonia
    Gardner
	Title:	Authorized
    Signatory