Document:

Exhibit 10.53

 

CONTRIBUTION and
loan AGREEMENT

 

THIS CONTRIBUTION AND LOAN AGREEMENT
(this “Agreement”) is made and entered into as of March 18, 2019, by and between Scilex Holding Company, a Delaware
corporation (the “Company”), Sorrento Therapeutics, Inc., a Delaware corporation (“Sorrento”), the
stockholders of Scilex set forth on the signature pages hereto (each, a “Contributor” and, collectively, the “Contributors”),
and Scilex Pharmaceuticals Inc., a Delaware corporation (“Scilex”). Certain capitalized terms used but not defined
herein have the meanings ascribed thereto in that certain Agreement and Plan of Merger, dated as of March 18, 2019 (as may be amended,
modified or supplemented from time to time, the “Merger Agreement”), by and among the Company, Sigma Merger Sub, Inc.,
a Delaware corporation (“Merger Sub”), Semnur Pharmaceuticals, Inc., a Delaware corporation (“Semnur”),
and Fortis Advisors LLC, a Delaware limited liability company, solely in its capacity as representative of the Equityholders (the “Equityholders’
Representative”), and, for limited purposes therein, Sorrento.

 

BACKGROUND

 

WHEREAS, in connection with
the merger of Merger Sub with and into Scilex in accordance with the terms of the Merger Agreement (the “Merger”),
the parties hereto desire to enter into this Agreement to provide for the contribution by the Contributors of all outstanding equity securities
of Scilex to the Company in exchange for certain equity securities of the Company (“Contribution”), subject to the
relative rights, powers, preferences, limitations and restrictions which are set forth in the certificate of incorporation of the Company
(the “Company Shares”).

 

WHEREAS, in connection with
the Merger, Scilex desires to provide a loan to the Company for purposes of, among other things, providing funding to the Company to fulfill
its payment obligations under the Merger Agreement.

 

WHEREAS, in connection with
the Contribution, the Scilex Pharmaceuticals, Inc., Amended and Restated 2017 Equity Incentive Plan (“Scilex Equity Incentive Plan”)
shall be terminated, and each option to purchase Scilex common stock outstanding and unexercised immediately prior to the Closing (“Scilex
Options”) shall be cancelled and substituted for that number of options to acquire common stock of the Company set forth on Schedule
C (“Company Options”).

 

WHEREAS, the parties intend
that the Contribution and issuance of Company Shares constitute a single integrated exchange as described in Section 351(a) of the Internal
Revenue Code of 1986, as amended (“Code”).

 

NOW, THEREFORE, in consideration
of the mutual covenants contained herein and for good and valuable consideration set forth herein, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree:

 

1.                  
Transactions.

 

(a)               
Contribution.

 

(i)                 Immediately
following the execution of this Agreement and simultaneously with and contingent upon the Closing (as defined in the Merger
Agreement), each Contributor hereby contributes, transfers and assigns (or causes to be contributed, transferred and assigned) to
the Company, and the Company receives and accepts as a contribution, all shares of Common Stock of Scilex, par values $0. 0001 held
by such Contribitor, which amounts are set forth opposite such Contributor’s name on Schedule A (the
 “Contributed Shares”), free and clear of all mortgages, liens, pledges, claims, charges, security interests or
encumbrances of any kind (“Liens”), in exchange for which the Company hereby issues to the Contributors the
Company Shares in the amounts set forth opposite such Contributor’s name on Schedule A (the
 “Contribution”).

 

     

     

    

 

(ii)              
In order to effect the Contribution, each Contributor is delivering (or causing to be delivered) to the Company duly executed stock
power in respect of their Contributed Shares substantially in the form attached hereto as Exhibit A. The Company Shares for each
Contributor will be uncertificated.

 

(b)               
Loan.

 

(i)                
Immediately following the execution of this Agreement and simultaneously with, and contingent upon, the Closing (as defined in
the Merger Agreement), Sorrento (the “Lender”) makes a loan to the Company in the amount set forth opposite the Lender’s
name on Schedule B in accordance with instructions provided by the Company (the “Loan”).

 

(ii)              
The Loan made by the Lender has be evidenced by a promissory note substantially in the form attached hereto as Exhibit B
executed and delivered by the Company in favor of the Lender having a principal amount equal to the aggregate amount of the Loan as provided
in Section 1(b)(i).

 

(c)               
Options

 

(i)                
At the Closing, the Scilex Options set forth opposite each Silex Option holder’s name on Schedule C are hereby cancelled
and substituted for that number of Company Options set on Schedule C. Such cancellation and substitution shall be in accordance
with Treasury Regulation Section 1.424-1(a) and each such Company Option shall remain an incentive stock option to the extent such corresponding
Silex Option qualified as such prior to the Closing.

 

(ii)              
At the Closing, all Scilex Options shall no longer be outstanding and shall cease to exist and each holder of Scilex Options cease
to have any rights with respect thereto.

 

2.                  
Representations and Warranties of the Contributors. Each Contributor makes the following representations and warranties
to the Company as a material inducement to the Company’s consummation of the transactions contemplated hereby:

 

(a)               
Such Contributor is acquiring the Company Shares set forth opposite such Contributor’s name on Exhibit A hereto for
its own account and not with a view to, or intention of, distribution thereof in violation of the Securities Act of 1933, as amended (the
 “Securities Act”) or any applicable state securities laws, and will not dispose of such Company Shares in contravention
of the Securities Act or any applicable state securities laws.

 

(b)               
Such Contributor is an “accredited investor” within the meaning of Regulation D under the Securities Act.

 

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(c)               
 Such Contributor is sophisticated in financial and business matters, is able to evaluate the risks and benefits of the investment
in the Company Shares to be acquired by such Contributor pursuant to this Agreement and is able to bear the economic risk of its investment
in such Company Shares for an indefinite period of time.

 

(d)               
Such Contributor understands and agrees that the Company Shares is being acquired in a transaction not involving any public offering
within the meaning of the Securities Act, in reliance on an exemption therefrom. Such Contributor understands that the Company Shares
has not been, and will not be, approved or disapproved by the Securities and Exchange Commission or by any other federal or state agency,
and that no such agency has passed on the accuracy or adequacy of disclosures made to such Contributor by the Company. No federal or state
governmental agency has passed on or made any recommendation or endorsement of the Company Shares or an investment in the Company.

 

(e)               
Such Contributor understands and acknowledges that the Company Shares has not been registered under the Securities Act or the securities
laws of any state and, unless such Company Shares is so registered, it may not be offered, sold, transferred or otherwise disposed of
except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any
applicable securities laws of any state or foreign jurisdiction. Such Contributor acknowledges that neither the Company nor any person
acting on its behalf offered the Company Shares by any form of general solicitation or general advertising.

 

(f)                
Such Contributor acknowledges and agrees that the ability to dispose of the Company Shares will be subject to restrictions contained
in the certificate of incorporation of the Company. Such Contributor recognizes that there will not be any public trading market for the
Company Shares and, as a result, such Contributor may be unable to sell or dispose of the Company Shares. Such Contributor further acknowledges
and agrees that the Company shall have no obligation to register the Company Shares.

 

(g)               
Such Contributor acknowledges that (a) the Company has made available, a reasonable time prior to the date of this Agreement,
information concerning the Company sufficient for such Contributor to make an informed decision regarding an investment in the Company
and an opportunity to ask questions and receive answers concerning the Company Shares; (b) the Company has made available, a reasonable
time prior to the date of this Agreement, the opportunity to obtain any additional information that the Company possesses or can acquire
without unreasonable effort or expense deemed necessary by such Contributor to verify the accuracy of the information provided, and such
Contributor has received all such additional information requested; and (c) such Contributor has not relied on the Company or any
of its Affiliates, officers, employees or representatives in connection with its investigation or the accuracy of the information provided
or in making any investment decision.

 

(h)               
The execution, delivery and performance by such Contributor of this Agreement and the consummation of the transactions contemplated
herein do not and will not: (i) result in the breach of any of the terms or conditions of, or constitute a default under, or in any manner
release any party thereto from any obligation under, or otherwise affect any rights of such Contributor under, any mortgage, note, bond,
indenture, contract, agreement, license or other instrument or obligation of any kind or nature, in any case whether written or oral,
by which such Contributor may be bound or affected; (ii) violate or conflict with any Laws; (iii) result in the creation or imposition
of any Lien on the Contributed Shares; or (iv) violate any provision of such Contributor’s organizational documents (if applicable).

 

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(i)                 Such
Contributor has all requisite power and authority to execute, deliver and perform its obligations under this Agreement. The
execution and delivery of this Agreement, the performance by such Contributor hereto of its respective obligations hereunder and the
consummation by such Contributor of the transactions contemplated hereby have been duly authorized, and no other proceeding on the
part of such Contributor is necessary. Assuming the due authorization, execution and delivery hereof by the Company, this Agreement
constitutes the valid and legally binding obligation of such Contributor, enforceable against it in accordance with its terms,
except as enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium and other similar laws
affecting the rights of creditors generally, and the availability of equitable remedies.

 

(j)                
Each Contributor legally and beneficially owns the Contributed Shares set forth opposite such Contributor’s name on Exhibit
A hereto, free and clear of any Liens, and upon the delivery of such Contributed Shares, the Company shall acquire good, marketable
and valid title to the Contributed Shares, free and clear of all Liens. With respect to the Contributors that are entities, no Person
has the right, directly or indirectly, to acquire any equity securities or other securities directly or indirectly convertible into or
exchangeable or exercisable for stock or other equity securities of such Contributor.

 

(k)               
No consent, approval, order or authorization of, or registration, declaration or filing with, any Governmental Authority or other
Person is required to be made or obtained by such Contributor or in connection with the authorization, execution and delivery of this
Agreement, the performance by such Contributor of its obligations hereunder, and the consummation by such Contributor of the transactions
contemplated hereby.

 

3.                  
Representations and Warranties of Scilex: Scilex makes the following representations and warranties to the Company as a
material inducement to the Company’s consummation of the transactions contemplated hereby:

 

(a)               
The Contributors together own 100% of the issued and outstanding capital stock of Scilex. All of the Contributed Shares has been
duly authorized and validly issued, is fully paid and non-assessable, and are held free from any Liens other than any Lien arising out
of, under or in connection with the Securities Act or any other applicable securities Laws. None of the Contributed Shares was issued
in violation of (x) applicable Law, (y) Scilex’s organizational documents or (z) any preemptive right. The Contributed
Shares as set forth on Exhibit A hereto represents the only issued and outstanding shares of capital stock of Scilex, and, other
than the Scilex Options set forth on Schedule C, there are no outstanding securities convertible or exchangeable into Contributed
Shares, including any options, warrants or rights of conversion or other similar rights or agreements obligating Scilex or any other Person
to sell, issue or transfer any of its equity interests.

 

(b)               
Scilex is, and at all times since its formation has been, in compliance with all Laws. Scilex has not received notice prior to
the date hereof of any violation of any Law in connection with the conduct, ownership, use, occupancy or operation of Scilex or Scilex’s
business or assets. There are no Actions pending, or to the actual knowledge of Scilex, threatened, against Scilex. Scilex has good and
marketable title, or holds valid and enforceable leases or licenses, to all assets, property, rights and privileges used by Scilex in
the conduct of its business, free and clear of all Liens.

 

4.                  
Representations and Warranties by the Company.

 

(a)                The
execution, delivery and performance by the Company of this Agreement and the consummation of the transactions contemplated herein do
not and will not: (i) result in the breach of any of the terms or conditions of, or constitute a default under, or in any manner
release any party thereto from any obligation under, or otherwise affect any rights of Company under, any mortgage, note, bond,
indenture, contract, agreement, license or other instrument or obligation of any kind or nature, in any case whether written or
oral, by which Company may be bound or affected; (ii) violate or conflict with any Laws; or (iii) violate any provision of the
Company’s organizational documents.

 

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(b)               
The Company has all requisite power and authority to execute, deliver and perform its obligations under this Agreement. The execution
and delivery of this Agreement, the performance by the Company hereto of its respective obligations hereunder and the consummation by
the Company of the transactions contemplated hereby have been duly authorized, and no other proceeding on the part of the Company is necessary.
Assuming the due authorization, execution and delivery hereof by the Contributors, this Agreement constitutes the valid and legally binding
obligation of the Company, enforceable against it in accordance with its terms, except as enforcement may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium and other similar laws affecting the rights of creditors generally, and the availability of equitable
remedies.

 

(c)               
The Company Shares represents the only issued and outstanding equity interests of the Company, and there are no outstanding securities
convertible or exchangeable into equity interests of the Company, including any options, warrants or rights of conversion or other similar
rights or agreements obligating the Company or any other Person to sell, issue or transfer any of its equity interests.

 

(d)               
No consent, approval, order or authorization of, or registration, declaration or filing with, any Governmental Authority or other
Person is required to be made or obtained by the Company or in connection with the authorization, execution and delivery of this Agreement,
the performance by the Company of its obligations hereunder, and the consummation by the Company of the transactions contemplated hereby.

 

(e)               
The Company is, and at all times since the formation of the Company has been, in compliance with all Laws. The Company has not
received notice prior to the date hereof of any violation of any Law in connection with the conduct, ownership, use, occupancy or operation
of the Company or the Company’s business or assets. The Company has good and marketable title, or holds valid and enforceable leases
or licenses, to all assets, property, rights and privileges used by the Company in the conduct of its business, free and clear of all
Liens.

 

5.                  
Reliance by the Company. Each Contributor understands the meanings of the representations and warranties contained in this
Agreement and understands and acknowledges that the Company is relying on such representations and warranties in determining whether the
issuance contemplated hereby is eligible for exemption from the registration requirements contained in the Securities Act and applicable
state securities laws.

 

6.                  
Restrictions on Transfer. The parties hereto hereby agree that the Company Shares will be subject to the restrictions on
transfer contained in the certificate of incorporation of the Company.

 

7.                  
Irrevocable Contribution. Each Contributor understands that the Contribution is irrevocable.

 

8.                  
Survival. The representations, warranties and covenants contained in this Agreement shall survive the execution and delivery
of this Agreement and the consummation of the transactions contemplated hereby.

 

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9.                  
 Tax Treatment. The parties hereto acknowledge and agree that the Contribution will be in connection with, and pursuant
to the same plan as, the Merger and the parties intend that the Contribution and the Merger will qualify as a transaction governed by
Section 351 of the Code.

 

10.              
Certain Definitions.

 

(a)               
“Action” means any action, Order, writ, injunction, judgment or decree outstanding or any claim, complaint,
charge, suit, equitable action, litigation, proceeding, hearing, dispute, litigation, mediation, arbitration, audit, self-disclosure,
prosecution, inquiry or investigation, or any formal demand to which the Company is a party and which could reasonably be expected to
lead to any of the foregoing.

 

(b)               
“Governmental Authority” means any domestic or foreign national, state, provincial, multi-state, multinational
or municipal or other local government, any subdivision, agency, commission, instrumentality, body or authority thereof, department or
person (whether autonomous or not), or any quasi-governmental or private body exercising any regulatory authority thereunder.

 

(c)               
“Law” means any national, federal, provincial, state, local, municipal, foreign or other constitution, ordinance,
regulation, statute, code, rule or other law, and any certification standard, accreditation standard, approval, license, Order or Permit.

 

(d)               
“Order” means any award, injunction, decree, settlement, judgment, order, ruling, subpoena, or verdict or other
decision entered, issued, made, or rendered by, or any agreement with, any court, administrative agency, or other Governmental Authority
or by any arbitrator.

 

(e)               
“Permits” means any licenses, franchises, permits, permissions, consents, certificates, orders, approvals, exemptions,
registrations or authorizations from any Governmental Authority required for the lawful ownership by the Company of its properties and
assets and the lawful operation of the Business in the manner presently conducted.

 

11.              
Amendment and Waiver. Except as otherwise provided herein, no modification, amendment or waiver of any provision of this
Agreement shall be effective against the parties hereto unless such modification, amendment or waiver is approved in writing by each of
the parties hereto. The failure of any party hereto to enforce any of the provisions of this Agreement shall in no way be construed as
a waiver of such provisions and shall not affect the right of such party thereafter to enforce each and every provision of this Agreement
in accordance with its terms.

 

12.              
Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of
a signature page to this Agreement by facsimile or pdf transmission will be treated in all manner and respects as an original agreement
or instrument and will be considered to have the same binding legal effect as if it were the original signed version thereof delivered
in person. At the request of any party hereto, any party executing this Agreement by facsimile or pdf transmission shall promptly deliver
a manually executed counterpart, provided that any failure to do so shall not affect the validity of the counterpart executed by facsimile
or pdf transmission.

 

13.              
No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties hereto
to express their mutual intent, and no rule of strict construction will be applied against any party hereto.

 

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14.              
 Successors and Assigns. This Agreement will be binding upon and inure to the benefit of the parties hereto and their respective
successors and permitted assigns. Notwithstanding anything to the contrary contained herein, no Contributor may assign any of its rights
or delegate any of its responsibilities, liabilities or obligations under this Agreement without the prior written consent of the Company.

 

15.              
Entire Agreement. Except as otherwise expressly set forth herein, this Agreement embodies the complete agreement and understanding
among the parties hereto with respect to the subject matter hereof and supersedes and preempts any prior understandings, agreements or
representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way. In furtherance
of the foregoing, each of the parties hereto hereby irrevocable waives any claim or cause of action based upon, in whole or in part, any
such prior conversation, communication, understanding, agreement, or representation and agrees not to assert, whether affirmatively or
defensively, any such prior conversation, communication, understanding, agreement, or representation in any suit, action or other proceeding
arising out of or relating to this Agreement.

 

16.              
Specific Performance. The parties hereto acknowledge and agree that the failure of any party to perform its agreements and
covenants hereunder, including such party’s failure to take all actions as are necessary on such party’s part in accordance
with the terms and conditions of this Agreement to consummate the transactions contemplated hereby, will cause irreparable injury to the
other parties, for which damages, even if available, will not be an adequate remedy. Accordingly, each party hereby consents to the issuance
of injunctive relief by any court of competent jurisdiction to compel performance of such party’s obligations and to the granting
by any court of the remedy of specific performance of such party’s obligations hereunder, without the necessity of proving actual
damages, without bond or other security being required, without regard to the adequacy of any remedy at law, and in addition to any other
remedy to which it may be entitled, at law or in equity. Such remedies will not be exclusive and will be in addition to any other remedies
whatsoever which any party may otherwise have, all of which may be pled in the alternative. Each party further agrees that, in the event
of any action for specific performance in respect of such breach or violation, it will not assert the defense that a remedy at law would
be adequate or that specific performance or injunctive relief in respect of such breach or violation should not be available on the grounds
that money damages are adequate or any other grounds.

 

17.              
Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect
under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect the validity, legality
or enforceability of any other provision of this Agreement in such jurisdiction or affect the validity, legality or enforceability of
any provision in any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such
invalid, illegal or unenforceable provision had never been contained herein.

 

18.              
Governing Law. This Agreement, and all proceedings or counterclaims (whether based on contract, tort or otherwise) arising
out of or relating to this Agreement or the actions of the parties hereto in the negotiation, administration, performance and enforcement
hereof, shall be brought exclusively in the courts of the State of Delaware, or, if it has or can acquire jurisdiction, in the United
States District Court sitting in the State of Delaware, and each of the parties hereto irrevocably submits to the exclusive jurisdiction
of each such court in any such proceeding, waives any objection it may now or hereafter have to venue or to convenience of forum, agrees
that all claims in respect of such proceeding shall be heard and determined only in any such court, and agrees not to bring any proceeding
arising out of or relating to this Agreement in any other court.

 

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19.              
 Notices. All notices, demands and other communications to be given or delivered under or by reason of the provisions of
this Agreement shall be in writing and shall be sent to the address specified in writing by each such party and deemed to have been given
(a) when personally delivered or sent electronically via PDF format (with hard copy to follow); (b) one day after being sent by reputable
overnight express courier (charges prepaid), or (c) three days following mailing by certified or registered mail, postage prepaid and
return receipt requested.

 

20.              
Delivery by Facsimile or PDF. This Agreement and any amendments hereto or thereto, to the extent signed and delivered by
means of a facsimile machine or PDF, will be treated in all manner and respects as an original agreement or instrument and will be considered
to have the same binding legal effect as if it were the original signed version thereof delivered in person.

 

21.              
Descriptive Headings. The descriptive headings of this Agreement are inserted for convenience only and do not constitute
a part of this Agreement.

 

22.              
Further Assurances. The parties hereto shall execute and deliver all documents, provide all information, and take or refrain
from taking such actions as may be reasonably necessary or appropriate to achieve the purposes of this Agreement.

 

[Signature Page Follows.]

 

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

 

	 	COMPANY
	 	 	 
	 	SCILEX HOLDING COMPANY
	 	 	 
	 	 	 
	 	By:	/s/ Henry Ji, Ph.D.
	 	Name:	Henry Ji, Ph.D.
	 	Its:	Secretary and Treasurer
	 	 	 
	 	 	 
	 	SCILEX
	 	 	 
	 	SCILEX PHARMACEUTICALS INC.
	 	 	 
	 	 	 
	 	By:	/s/ Henry Ji, Ph.D.
	 	Name:	Henry Ji, Ph.D.
	 	Its:	President and Chief Executive Officer

 

     

     

    

 

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

 

	 	CONTRIBUTORS
	 	 	 
	 	SORRENTO
	 	 	 
	 	SORRENTO THERAPEUTICS, INC.
	 	 	 
	 	 	 
	 	By:	/s/ Henry Ji, Ph.D.
	 	Name:	Henry Ji, Ph.D.
	 	Its:	President and Chief Executive Officer
	 	 	 
	 	 	 
	 	ITOCHU
	 	 
	 	ITOCHU CHEMICAL FRONTIER Corporation
	 	 	 
	 	By:	/s/ Tsutomu Miyazaki
	 	Name:	Tsutomu Miyazaki
	 	Its:	President & Chief Executive Officer

 

	 	ZHENG
	 	 
	 	/s/ Huang Zheng
	 	Huang Zheng

 

     

     

    

 

SCHEDULE
A

 

cONTRIBUTED
EQUITY AND COMPANY EQUITY

 

	
Contributor
	 	
Contributed Shares 

 (Shares of Scilex

 Common Stock)
 
	 	 	Company Shares 

 (Shares of Company

 Common Stock)
	 
	Sorrento Therapeutics, Inc.	 	 	115,380,524	 	 	 	115,380,524	 
	Itochu Chemical Frontier Corporation	 	 	29,074,890	 	 	 	29,074,890	 
	Huang Zheng	 	 	5,814,978	 	 	 	5,814,978	 

 

     

     

    

 

SCHEDULE
b

 

loan
amounts 

 

	Lender	 	Loan Amount	 
	Sorrento Therapeutics, Inc.	 	$	20,024,944.59	 

 

     

     

    

 

Schedule
C

 

Options

 

 

     

     

    

 

eXHIBIT
A

 

FORM
OF sTOCK POWER

 

     

     

    

 

eXHIBIT
B

 

FORM
OF PROMISSORY NOTEExhibit 10.54

 

PROMISSORY NOTE

 

March 18, 2019

 

1.                 Principal
and Interest. For value received, as herein provided, Scilex Holding Company, a Delaware corporation (the “Borrower”),
promises to pay to Sorrento Therapeutics, Inc., a Delaware corporation (the “Lender”), in accordance with Section 2
below and in immediately available funds, the principal amount of all advances heretofore made by the Lender to the Borrower pursuant
to this Promissory Note (this “Note”) in the aggregate principal amount of $20,024,944.59.

 

2.               
Interest shall accrue on the principal amount outstanding under this Note from the date hereof until it is paid in full at a rate
equal to the lesser of (a) ten percent (10%) simple interest per annum (computed on the basis of a year of 360 days
for the actual number of days, including the first day but excluding the last day, elapsed), and (b) the maximum interest rate permitted
under law. Interest shall be due and payable annually.

 

3.               
Maturity; Payment of Loan. The Borrower shall pay to the Lender on demand (the “Maturity Date”)
all of the outstanding advances, interest thereon and any other obligation owing to the Lender pursuant to this Note. All advances and
payments of principal and interest in respect of this Note shall be made in lawful money of the United States of America in immediately
available funds to the account of the Lender located at such place as shall be designated in writing for such purpose.

 

4.                
Application of Payments. Any payment under this Note shall be applied (a) first, to pay any accrued and unpaid interest
on this Note, and (b) second, to repay any principal amount outstanding under this Note.

 

5.               
Business Days. Whenever any payment on this Note shall be declared to be due on a day which is not a Business Day, such
payment shall be made on the next succeeding Business Day and such extension of time shall be included in the computation of the payment
of interest on this Note. For the purposes of this Note, “Business Day” shall mean any day other than Saturday,
Sunday or other day on which commercial banks are authorized to close under the laws of, or are in fact closed in, the State of California.

 

6.               
Prepayment. The obligations of the Borrower arising under this Note may be prepaid in whole or in part at any time without
penalty or premium.

 

7.               
Presentment; Waivers; Counterclaims. The Borrower hereby waives presentment, demand, protest or notice of any kind in connection
with this Note. The non-exercise by the Lender of any of its rights hereunder in any particular instance shall not constitute a waiver
thereof in such particular or any subsequent instance. All payments under this Note shall be made without offset, counterclaim or deduction
of any kind.

 

8.               
Amendment and Waiver. The provisions of this Note may be amended or waived only in a writing signed by the Borrower and
the Lender.

 

     

     

    

 

9.                 Loss,
Theft, Destruction or Mutilation of this Note. In the event of the loss, theft or destruction of this Promissory Note, upon the Borrower’s
receipt of a reasonably satisfactory indemnification agreement executed in favor of the Borrower by the Lender, or in the event of the
mutilation of this Note, upon the Lender’s surrender to the Borrower of the mutilated Note, the Borrower shall execute and deliver
to the Lender a new promissory note in form and content identical to this Note in lieu of the lost, stolen, destroyed or mutilated Note.

 

10.             
Time of the Essence. Time is of the essence with respect to each and every provision hereof.

 

11.             
Severability. If any term or provision of this Note is invalid, illegal or unenforceable in any jurisdiction, such invalidity,
illegality or unenforceability shall not affect any other term or provision of this Note or invalidate or render unenforceable such term
or provision in any other jurisdiction.

 

12.             
Headings. The headings of the various sections herein are for reference only and shall not define, modify, expand or limit
any of the terms or provisions of this Note.

 

13.             
GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS
LAW).

 

[Remainder of Page Intentionally Left Blank]

 

     

     

    

 

IN WITNESS WHEREOF,
the Borrower has caused this Note to be duly executed and delivered by its duly authorized officers or authorized representatives, as
of the day and year and at the place first written above.

 

	 	SCILEX HOLDING COMPANY
	 	 
	 	By: 	/s/ Henry Ji, Ph.D.
	 	 	 
	 	Name: Henry Ji, Ph.D.
	 	 
	 	Title: Secretary and Treasurer

 

[Signature Page to Intercompany Note]

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