Document:

Lease Agreement, dated December 8, 1994

  
 Exhibit 10.20

 TORREY PINES SCIENCE CENTER 
 Industrial Real Estate Lease 
 BETWEEN 

LANKFORD & ASSOCIATES, INC., A 
 COLORADO CORPORATION 
 as LANDLORD 

and 
 DEPOTECH
CORPORATION, A 
 CALIFORNIA CORPORATION 
 as TENANT 
 December 8, 1994 

  
 TORREY PINES SCIENCE
CENTER 
 Industrial Real Estate Lease 
 TABLE OF CONTENTS 
  

											
	I	  	BASIC TERMS	 		  	 	1	  
		  	1.1	 	Date of Lease	 		  	 	1	  
		  	1.2	 	Landlord	 		  	 	1	  
		  	1.3	 	Tenant	 		  	 	1	  
		  	1.4	 	Real Property	 		  	 	1	  
		  		 	1.4.1 Lot Line Adjustment	  	 	2	  
		  		 	1.4.2 Termination of Lease	  	 	2	  
		  	1.5	 	Premises	 		  	 	3	  
		  		 	1.5.1 Phases	  	 	4	  
		  		 	1.5.2 Completion of Premises	  	 	5	  
		  	1.6	 	Lease Term	 		  	 	5	  
		  		 	1.6.1 Delivery of Premises	  	 	5	  
		  		 	1.6.2 Punch List Items	  	 	6	  
		  	1.7	 	Permitted Uses	 		  	 	6	  
		  	1.8	 	Rent and Other Charges Payable by Tenant	 		  	 	7	  
		  		 	1.8.1 Basic Monthly Rent	  	 	7	  
		  		 	1.8.2 Intentionally Deleted	  	 	7	  
		  		 	1.8.3 Tenant’s Share of Charges under the Declaration	  	 	7	  
		  	1.9	 	Condition Subsequent	 		  	 	7	  
		  	1.10	 	Rider and Exhibits	 		  	 	8	  
				
	II	  	LEASE TERM	 		  	 	8	  
		  	2.1	 	Commencement Date	 		  	 	8	  
		  	2.2	 	Lease of Premises for Lease Term	 		  	 	8	  
		  	2.3	 	Holding Over	 		  	 	8	  
		  	2.4	 	Surrender of Premises	 		  	 	9	  
		  	2.5	 	Option to Extend or Renew	 		  	 	9	  
		  		 	2.5.1 Notice	  	 	9	  
		  		 	2.5.2 Conditions	  	 	9	  
		  	2.6	 	Personal Options	  	 	10	  
				
	III	  	BASIC MONTHLY RENT	 		  	 	10	  
		  	3.1	 	Time and Manner of Payment	 		  	 	10	  
		  	3.2	 	Rental Adjustments	 		  	 	10	  
		  		 	3.2.1 Rent Increases	 		  	 	10	  
		  	3.3	 	Basic Monthly Rent During Extension	 		  	 	10	  
		  		 	3.3.1 Notice of Intent	  	 	11	  
		  		 	3.3.2 Appraisal Procedure	  	 	11	  
		  		 	3.3.3 Selection	  	 	11	  
		  		 	3.3.4 Costs and Qualification	  	 	11	  
		  		 	3.3.5 Fair Rental Value Defined	  	 	11	  
		  		 	3.3.6 Determination of Value	  	 	12	  
		  		 	3.3.7 Exercise of Option	  	 	12	  
		  		 	3.3.8 Extension	  	 	12	  
		  		 	3.3.9 Cost of Living Increases	  	 	13	  

  
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 TORREY PINES SCIENCE
CENTER 
 Industrial Real Estate Lease 
  

									
		  		  	3.3.10 Effective Date	  	 	13	  
		  		  	3.3.11 Index	  	 	13	  
		  		  	3.3.12 Delay in Determination of New Basic Monthly Rent	  	 	13	  
		  	3.4	  	Grant of Warrants	  	 	13	  
			
	IV	  	ADDITIONAL RENT	  	 	14	  
		  	4.1	  	Additional Rent	  	 	14	  
		  	4.2	  	Real Property Taxes	  	 	14	  
		  		  	 4.2.1Payment of Taxes
	  	 	14	  
		  		  	 4.2.2Definition of Real Property Tax
	  	 	15	  
		  		  	 4.2.3Personal Property Taxes
	  	 	16	  
		  	4.3	  	Utilities	  	 	16	  
		  	4.4	  	Common Area	  	 	16	  
		  		  	 4.4.1Definition; Location
	  	 	16	  
		  		  	 4.4.2Use of Common Areas
	  	 	17	  
		  		  	 4.4.3Expenses under the Declaration
	  	 	17	  
		  	4.5	  	Late Charges	  	 	18	  
			
	V	  	USE OF PREMISES	  	 	18	  
		  	5.1	  	Permitted Uses	  	 	18	  
		  	5.2	  	Manner of Use	  	 	18	  
		  		  	 5.2.1Objectionable Uses
	  	 	18	  
		  		  	 5.2.2Non-permitted Uses
	  	 	18	  
		  		  	 5.2.3Prohibited Uses
	  	 	19	  
		  		  	 5.2.4Permit
	  	 	19	  
		  	5.3	  	Signs	  	 	19	  
		  		  	 5.3.1Permitted Signs
	  	 	19	  
		  		  	 5.3.2Sign Criteria
	  	 	20	  
		  	5.4	  	Hazardous Materials	  	 	20	  
		  		  	 5.4.lProhibition of Storage
	  	 	20	  
		  		  	 5.4.1.1 Clean-up
	  	 	20	  
		  		  	 5.4.1.2 Business
	  	 	21	  
		  		  	 5.4.2Termination of Lease
	  	 	21	  
		  		  	 5.4.3Assignment and Subletting
	  	 	22	  
		  		  	 5.4.4Condition
	  	 	22	  
		  		  	 5.4.5Landlord’s Right to Perform Tests
	  	 	23	  
		  		  	 5.4.6Definition of “Hazardous Materials”
	  	 	23	  
		  	5.5	  	Landlord’s Access	  	 	24	  
		  	5.6	  	Quiet Possession	  	 	24	  
			
	VI	  	CONDITION OF PREMISES; MAINTENANCE, REPAIRS AND ALTERATIONS	  	 	25	  
		  	6.1	  	Condition of the Premises	  	 	25	  
		  	6.2	  	Landlord’s Provision of Services	  	 	25	  
		  		  	 6.2.1Services
	  	 	25	  
		  		  	 6.2.2Maintenance and Repair Service
	  	 	25	  
		  		  	 6.2.3Landlord’s Expense
	  	 	26	  
		  	6.3	  	Tenant’s Obligations	  	 	26	  
		  		  	 6.3.1Maintenance and Repair
	  	 	26	  
		  		  	 6.3.2Tenant Expense
	  	 	26	  
		  	6.4	  	Alterations, Additions, and Improvements	  	 	27	  

  
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 TORREY PINES SCIENCE
CENTER 
 Industrial Real Estate Lease 
  

									
		  		  	 6.4.1Procedure for Making Alterations
	  	 	27	  
		  		  	 6.4.2Conditions of Landlord’s Approval
	  	 	28	  
		  		  	 6.4.3Payment by Tenant
	  	 	28	  
		  		  	 6.4.4Freedom From Liens
	  	 	28	  
		  	6.5	  	Condition Upon Termination	  	 	29	  
		  		  	6.5.1 Tenant Equipment That Remains on the Premises	  	 	29	  
		  		  	6.5.2 Removal of Tenant Equipment	  	 	29	  
			
	VII	  	INSURANCE AND INDEMNITY	  	 	30	  
		  	7.1	  	Insurance Premiums	  	 	30	  
		  		  	 7.1.1Liability Insurance
	  	 	30	  
		  		  	 7.1.2Hazard Insurance
	  	 	30	  
		  		  	 7.1.3Other Insurance
	  	 	31	  
		  		  	 7.1.4Form of Policies
	  	 	31	  
		  		  	 7.1.5Increase in Fire Insurance Premium
	  	 	32	  
		  		  	 7.1.6Waiver of Subrogation
	  	 	32	  
		  	7.2	  	Indemnification of Landlord	  	 	32	  
		  	7.3	  	Limitation of Landlord’s Liability	  	 	33	  
		  	7.4	  	Commissions	  	 	33	  
			
	VIII	  	DAMAGE OR DESTRUCTION	  	 	33	  
		  	8.1	  	Partial Damage to Premises	  	 	33	  
		  	8.2	  	Total or Substantial Destruction	  	 	34	  
		  		  	 8.2.1Rebuilding the Premises
	  	 	34	  
		  	8.3	  	Uninsured Casualty	  	 	35	  
		  	8.4	  	Landlord’s Obligations	  	 	35	  
		  	8.5	  	Temporary Reduction of Rent	  	 	35	  
		  	8.6	  	Waiver	  	 	35	  
			
	IX	  	EMINENT DOMAIN	  	 	35	  
		  	9.1	  	Total Condemnation	  	 	36	  
		  	9.2	  	Partial Condemnation	  	 	36	  
		  	9.3	  	Landlord’s Award	  	 	36	  
		  	9.4	  	Tenant’s Award	  	 	36	  
		  	9.5	  	Temporary Condemnation	  	 	36	  
		  	9.6	  	Notice and Execution	  	 	37	  
			
	X	  	ASSIGNMENT AND SUBLETTING	  	 	37	  
		  	10.1	  	Landlord’s Consent Required	  	 	37	  
		  		  	10.1.1 Permitted Transfers	  	 	37	  
		  	10.2	  	No Release of Tenant	  	 	37	  
		  	10.3	  	Landlord’s Election	  	 	38	  
		  	10.4	  	No Merger	  	 	38	  
		  	10.5	  	Involuntary Transfers	  	 	38	  
			
	XI	  	DEFAULTS; REMEDIES	  	 	39	  
		  	11.1	  	Covenants and Conditions	  	 	39	  
		  	11.2	  	Default by Tenant	  	 	39	  
		  		  	11.2.1 Abandonment	  	 	39	  
		  		  	11.2.2 Failure to Pay	  	 	39	  
		  	11.2.3	  	Failure to Perform	  	 	39	  

  
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 TORREY PINES SCIENCE
CENTER 
 Industrial Real Estate Lease 
  

							
		  		  	11.2.4 Other Defaults	  	39
		  	11.3	  	Default by Landlord	  	40
		  		  	11.3.1 Monetary Default	  	40
		  		  	11.3.2 Non-Monetary	  	40
		  	11.4	  	Remedies	  	40
		  		  	11.4.1 Termination of Possession	  	40
		  		  	11.4.2 Maintenance of Possession	  	41
		  		  	11.4.3 Other Remedies	  	41
		  	11.5	  	The Right to Relet the Premises	  	41
		  	11.6	  	Waiver of Rights of Redemption	  	42
		  	11.7	  	Cumulative Remedies	  	42
		  	11.8	  	No Waiver	  	42
			
	XXI	  	ESTOPPEL CERTIFICATE, ATTORNMENT AND SUBORDINATION	  	42
		  	12.1	  	Subordination	  	42
		  		  	12.1.1 Landlord’s Election	  	42
		  		  	12.1.2 Execution of Documents	  	43
		  		  	12.1.3 Modification of Lender	  	43
		  	12.2	  	Attornment	  	43
		  		  	12.2.1 Non-Disturbance	  	43
		  	12.3	  	Signing of Documents	  	44
		  	12.4	  	Estoppel Certificates	  	44
		  		  	12.4.1 Landlord’s Request	  	44
		  		  	12.4.2 Failure to Deliver	  	44
		  	12.5	  	Tenant’s Financial Condition	  	45
			
	XIII	  	LIABILITY	  	45
		  	13.1	  	Landlord’s Liability	  	45
		  		  	13.1.1 Landlord	  	45
		  		  	13.1.2 Transfers	  	45
		  		  	13.1.3 Written Notice	  	45
		  	13.2	  	Tenant’s Liability	  	46
			
	XIV	  	LEGAL COSTS	  	46
		  	14.1	  	Legal Proceedings	  	46
		  		  	14.1.1 Costs	  	46
		  		  	14.1.2 Indemnification	  	46
			
	XV	  	OPTION TO LEASE	  	47
		  	15.1	  	Option to Lease	  	47
		  	15.2	  	Grant of Option	  	47
		  	15.3	  	Exercise of Option	  	47
		  	15.4	  	Landlord’s Purchase	  	48
		  	15.5	  	Additional Premises Lease	  	48
		  	15.6	  	Memorandum of Option and Option Assignment	  	48
			
	XVI	  	RIGHT OF FIRST REFUSAL TO PURCHASE	  	48
		  	16.1	  	Right of First Refusal	  	48
		  	16.2	  	Effect of Transfer Notice	  	49
		  	16.3	  	Acceptance of Offer	  	49
		  	16.4	  	Closing	  	49
		  	16.5	  	Release of Seal Property	  	49

  
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 TORREY PINES SCIENCE
CENTER 
 Industrial Real Estate Lease 
  

							
		  	16.6	  	Failure to Sell	  	50
		  	16.7	  	Landlord’s Successors	  	50
			
	XVII	  	RIGHT OF FIRST OFFER TO PURCHASE	  	50
		  	17.1	  	Landlord’s Offer	  	50
		  	17.2	  	Letter of Intent	  	50
		  	17.3	  	Termination of Right	  	51
		  	17.4	  	Offer to Tenant	  	51
		  	17.5	  	Failure to Sell	  	51
		  	17.6	  	Landlord’s Successors	  	51
			
	XVIII	  	MISCELLANEOUS PROVISIONS	  	51
		  	18.1	  	Severability	  	51
		  	18.2	  	Interpretation	  	52
		  	18.3	  	Incorporation of Prior Leases; Modifications	  	52
		  	18.4	  	Notices	  	52
		  	18.5	  	Waivers	  	52
		  	18.6	  	No Recordation	  	52
		  	18.7	  	Binding Effect; Choice of Law	  	52
		  	18.8	  	Corporation Authority; Partnership Authority	  	53
		  	18.9	  	Force Majeure	  	53
		  	18.10	  	 No Option
	  	53
		  	18.11	  	 Standards of Measurement
	  	53
		  	18.12	  	 Time of the Essence
	  	53

  
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 TORREY PINES SCIENCE
CENTER 
 Industrial Real Estate Lease 
 I 
 BASIC TERMS 

This Article One contains the Basic Terms of this lease agreement between the Landlord and Tenant named below (“Lease”). Other
Articles, Sections and Subsections of the Lease referred to in this Article One explain and define the Basic Terms and are to be read in conjunction with the Basic Terms. 
 1.1 Date of Lease. This Lease is entered into as of December 8, 1994 (“Effective Date”), by and between Landlord and Tenant named below. 

1.2 Landlord. LANKFORD & ASSOCIATES, INC., a Colorado corporation. 

 

					
		 	 Address of Landlord:        
	  	4250 Executive Square
		 		  	 Suite 650
 La
Jolla,

		 		  	California 92037.

 1.3 Tenant. DEPOTECH
CORPORATION, a California corporation. 
  

					
		 	 Address of Tenant:        
	  	11025 North Torrey Pines Road
		 		  	Suite 100
		 		  	La Jolla, California 92037.

 1.4 Real
Property. Landlord has the option to purchase Lots 18, 19 and 20 of Subdivision Map No. 12845 filed in the Office of the County Recorder of San Diego County on July 23, 1991, from Chevron Land and Development Company
(“Chevron”) pursuant to that certain letter of intent from Iliff Thorn & Company to Robert Lankford (“Letter of Intent”) dated May 16, 1994, countersigned by Landlord on May 23, 1994 and by Chevron on
June 10, 1994. Chevron and Landlord have executed that certain Purchase and Sale Agreement and Escrow Instructions (“Contract”) dated November 23, 1994 (“Contract Date”) whereby Landlord has the right to purchase Lot 19
of Subdivision Map No. 12845 filed in the Office of the County Recorder of San Diego County on July 23, 1991 (the “Real Property”). The Real Property is part of a planned science research, business and industrial complex known as
Torrey Pines Science Center 2 (“Project”). Landlord shall purchase the Real Property and close escrow thereon on or before January 15, 1995 (“Acquisition Date”). 

  
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 1.4.1 Lot Line
Adjustment. In order for the Real Property to be configured as desired by Landlord and Tenant, a Lot Line Adjustment (“Lot Line Adjustment”) adjusting the lot lines of the Real Property was processed by Landlord and approved by the
City of San Diego as evidenced by that certain Parcel Map No. 17448 (the “Parcel Map”) , recorded among the Real property Records of San Diego County on November 17, 1994. Exhibit “A” attached hereto and
incorporated herein is a copy of the Parcel Map, showing the Real Property as Parcel 3 thereon. 
 1.4.2 Termination of
Lease. 
 1.4.2.1 This Lease shall be terminable by Tenant, upon notice to Landlord, within ten (10) days after the
Acquisition Date if Landlord does not close the escrow for the purchase of the Real Property by the Acquisition Date pursuant to the Contract, in which case this Lease will be of no further force or effect. 

1.4.2.2 This Lease shall be terminable by Landlord, upon notice to Tenant, within ten (10) days after the Acquisition Date if
Landlord does not close the escrow for the purchase of the Real Property by the Acquisition Date pursuant to the Contract due solely to Chevron’s non-performance under the Contract, in which case this Lease will be of no further force or
effect. 
 1.4.2.3 Tenant may (but shall not be obligated to) terminate this Lease if Landlord does not obtain a permit to
construct the foundation of the building to be located on the Real Property (the “Foundation Permit”) from the City of San Diego on or before January 15, 1995 (“Permit Date”). Notwithstanding the foregoing, if Tenant has not
adhered to the time schedule set forth in the Work Letter Agreement attached hereto and made a part hereof as Exhibit “C” (“Work Letter”) for approval of the Preliminary Shell Plans and Final Drawings (as defined in the
Work Letter) , then the Permit Date will be extended one (1) day for each day of delay in Tenant’s approval of such Plans and/or Drawings. 
 1.4.2.4 Tenant may (but shall not be obligated to) terminate this Lease if Landlord does not deliver to Tenant, on or before December 15, 1994, evidence reasonably satisfactory to Tenant that
Landlord has obtained an irrevocable commitment for construction financing (the “Construction Financing”) from an institutional lender, for construction of the Building. Tenant agrees to cooperate with Landlord in obtaining the
Construction Financing and making any reasonable changes to this Lease required by the construction lender for the Construction Financing, provided such changes do not materially alter Landlord’s and Tenant’s obligations hereunder and do
not materially reduce Tenant’s benefits hereunder. Tenant agrees that Landlord shall be entitled 

  
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 to fulfill its obligations under this Section 1.4.2.4 by delivering to Tenant, on or before
December 15, 1994, a letter from Slough Parks Incorporated or SDK Incorporated (or one of their affiliated entities), which states that such entity has committed to provide or has obtained an irrevocable third-party commitment to provide the
Construction Financing. 
 1.4.2.5 Tenant may (but shall not be obligated to) terminate this Lease if the entire Premises and
all improvements to be constructed thereon in accordance with the terms of this Lease are not substantially complete by September 1, 1996. 
 1.4.2.6 If either party elects to terminate this Lease as provided in this Section 1.4.2.6 this Lease will be of no further force or effect. Notwithstanding any such termination, the obligations
under this Section 1.4.2.6 and Sections 5.4 and 7.2 below shall survive the termination of this Lease. If the Lease is terminated pursuant to Sections 1.4.2.1, 1.4.2.2, 1.4.2.3, or 1.4.2.4, Landlord shall reimburse Tenant for all direct, out of
pocket costs incurred by Tenant in connection with this Lease prior to the termination, which in no event shall exceed Eighty Thousand and No/100 Dollars ($80,000), for the period of time before December 15, 1994, and shall not exceed One
Hundred Fifty-five Thousand and No/100 Dollars ($155,000) if termination occurs thereafter. Notwithstanding the foregoing, if the termination occurs because either (i) Landlord does not close escrow for the purchase of the Real Property by the
Acquisition Date due solely to Chevron’s nonperformance under the Contract; or (ii) Landlord is unable to obtain the Foundation Permit by the Permit Date because Tenant’s intended use of the Premises is deemed by the City of San Diego
(or any other government agency having or asserting jurisdiction over the permitting process) to be a non-conforming use, then Landlord shall not be obligated to reimburse Tenant for all costs incurred by Tenant in connection with this Lease.

 1.5 Premises. As used herein, the term “Premises” shall mean the Real Property, all easements,
rights-of-way, rights, privileges, benefits and appurtenances belonging to the Real Property, and all improvements located on the Real Property, including, without limitation, a building to be constructed consisting of approximately eighty-two
thousand three hundred ninety (82,390) gross square feet (the “Building”) and related parking facilities and peripheral structures as shown on the preliminary plans and specifications for the Building Shell and Landlord’s Work
(as such terms are defined in the Work Letter attached hereto as Exhibit “C”) prepared by Davis Architects and dated November 21, 1994, which have been mutually approved by the parties (the “Preliminary Shell Plans”),
a copy of which shall be attached hereto as Exhibit “D” and incorporated herein. The general space plan, drawings and specifications for the Tenant Improvements (as such term is defined 

  
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 in the Work Letter) prepared by Ehrlich Rominger dated November 23, 1994, (the “Preliminary
Plans”) have also been mutually approved by the parties. The final plans for the Building Shell and Landlord’s Work, and for the Tenant Improvements (for both Phase I and Phase II) shall be agreed to by the parties in accordance with the
Work Letter. 
 1.5.1 Phases. The Premises will be constructed in two phases, with the first phase (“Phase I”)
to include the Building Shell, Landlord’s Improvements and the Tenant Improvements for all of the office space, research and development space, manufacturing support space and all other areas of the Building which must be constructed in order
for Tenant to occupy the foregoing, which Phase shall consist of approximately fifty thousand (50,000) gross square feet located primarily on the second floor of the Building (but with a portion located on the first floor of the Building). The
second phase (“Phase II”) shall include all the remaining Tenant Improvements, including, without limitation, the manufacturing space, and shall consist of approximately thirty-two thousand three hundred ninety (32,390) gross square
feet located on the first floor of the Building, all as depicted on the Preliminary Shell Plans attached as Exhibit “D”. 
 As soon as reasonably possible after substantial completion of the Building and Tenant Improvements described herein for each phase, Landlord and Tenant shall confirm the measurements of the Gross Area of
that phase of the Premises by Landlord measuring the Building in accordance with BOMA standards ANSIZ65.1 - 1980. If Tenant fails to dispute Landlord’s measurements within fifteen (15) days after Tenant receives the Landlord’s
measurements, Tenant shall have waived any right to dispute Landlord’s measurement and Landlord’s measurements of Gross Area shall be conclusively deemed to be correct. If Tenant disputes the Landlord’s measurements, Tenant shall,
pending resolution thereof, nevertheless tender Rent hereunder based on the square footage specified by Landlord and Tenant shall submit Tenant’s measurements and their dispute to Landlord within thirty (30) days after Tenant receives
Landlord’s measurements. Landlord and Tenant shall thereafter attempt to resolve any dispute within ten (10) days. If Landlord and Tenant fail to agree on the measurement of Gross Area within said ten (10) days, Landlord and Tenant
shall submit their dispute to a third party acceptable the Landlord and Tenant and familiar with BOMA standards, who shall measure the applicable phase of the Premises and submit the calculation of Gross Area to Landlord and Tenant within ten
(10) days. The determination of the Gross Area by said third person shall be binding upon the parties. The square footage of each phase of the Premises shall be confirmed by the parties by executing the confirmation of Gross Area in form of
Exhibit “B” attached hereto and made a part hereof for all purposes, within five (5) days after determination of the Gross 

  
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 Area by either Landlord and Tenant or a third party or within twenty (20) days following receipt of
Landlord’s measurements by Tenant is Tenant does not dispute such measurements. If Tenant has paid Rent based on Landlord’s measurements and the Gross Area is less than Landlord’s measurement, any excess Rent paid by Tenant shall be
credited to the next Rent due and owing. 
 1.5.2 Completion of Premises. Tenant has entered into this Lease in
expectation that Phase I of the Premises will be substantially completed by August 1, 1995 (“Phase I Outside Date”) and that Phase II of the Premises will be substantially completed by March 1, 1996 (“Phase II Outside
Date”). 
 1.6 Lease Term. Except as otherwise provided in Paragraph 1.6.1 below, the term of the Lease for the
portion of the Premises leased as Phase I (the “Phase I Premises”) shall commence (the “Phase I Commencement Date”) on the later of: (a) occupancy of the Phase I Premises by Tenant following substantial completion, of the
Building Shell, Landlord’s Work and the Tenant Improvements for the Phase I Premises (which occupancy shall occur no later than five (5) days after substantial completion thereof), or (b) August 1, 1995. The term of the Lease for
the portion of the Premises leased as Phase II (the “Phase II Premises”) shall commence (the “Phase II Commencement Date”); on the later of: (a) occupancy of the Phase II Premises by Tenant following substantial completion
of the Tenant Improvements for the Phase II Premises (which occupancy shall occur no later than five (5) days after substantial completion thereof), or (b) January 1, 1996. The term of the Lease for all of the Premises shall end
twenty (20) years following the Phase I Commencement Date, or approximately August 1, 2015 (“Lease Term”) unless extended pursuant to Section 2.5 below. Landlord acknowledges that substantial completion of the Phase I
Premises by August 1, 1995 and the Phase II Premises by March 1, 1996, is crucial to the operation of Tenant’s business. Subject to delays caused by Tenant and delays outside the control of Landlord, as described in the Work Letter,
if Landlord shall fail to substantially complete the Tenant Improvements for the applicable phase by August 1, 1995 and March 1, 1996, respectively, Tenant’s obligation to pay Rent (as defined in Section 4.1 below) as to that
particular phase, after the Phase I Commencement Date or the Phase II Commencement Date, as applicable, shall be postponed one (1) day for each day after August 1, 1995 or March 1, 1996, respectively, that substantial completion of
the applicable portion of the Premises is delayed. 
 1.6.1 Delivery of Premises. If the Tenant Improvements for a
portion of the Phase I Premises or the Phase II Premises are substantially complete prior to August 1, 1995, or March 1, 1996, as applicable, Tenant, with the consent of Landlord, may, but is not obligated to, occupy the portions of the
Phase I Premises or the Phase II Premises for which the Tenant Improvements 

  
 5 

 have been substantially completed. In such event, the Commencement Date for the Phase I Premises or the
Phase II Premises, as applicable, shall be the date of occupancy of the substantially completed portion of the Tenant Improvements first occupied by Tenant, but Tenant shall pay the Basic Monthly Rent only on the gross square feet of those portions
of the Phase I Premises or Phase II Premises, as applicable, which have been substantially completed and which are actually occupied until such time as the remaining Phase I Premises or Phase II Premises have been substantially completed and
occupied pursuant to Section 1.6 above. 
 1.6.2 Punch List Items. Prior to Tenant taking occupancy of any portion
of the Premises pursuant to Section 1.6 above, Landlord shall notify Tenant in writing when Landlord considers the Tenant Improvements (as defined in the Work Letter) to be substantially complete and Tenant shall, as soon as possible but not
later than three (3) days after notice of substantial completion is received by Tenant from Landlord, conduct a walk-through inspection of the applicable phase of the Premises (or portion thereof) with Landlord. Tenant shall notify Landlord in
writing within two (2) days of completing said walk-through inspection of all learns of Tenant Improvements which Tenant reasonably determines must be completed or corrected (“Punch List Items”). Following preparation of the Punch
List Items, Tenant shall take occupancy. Landlord shall complete repairs of the Punch List Items within forty-five (45) days of receipt of Tenant’s notice of Punch List Items. If Landlord fails to complete repairs of the Punch List items
within said 45 days, neither the Commencement Date nor the Lease Term shall be extended, but Tenant shall be entitled to complete the repairs at Landlord’s cost and may offset the cost of such repairs from any Rent thereafter due and owing to
Landlord. Any dispute regarding the completion of the Punch List Items shall be subject to arbitration under the American Arbitration Association rules. 
 1.7 Permitted Uses. The Premises shall be used as a medical research lab with light production and manufacturing of drug formulations, together with incidental office and storage uses and all other
uses permitted by law. Notwithstanding the foregoing, all uses of the Premises shall be in accordance with (i) the City of San Diego’s Scientific Research Zoning Ordinance, (ii) the Torrey Pines Science Center Planned Industrial
Development (“PID”), (iii) any covenants, conditions and restrictions for the Project recorded as of the Effective Date together with all amendments thereto (so long as such amendments do not materially adversely impair Tenant’s
ability to use the Premises in accordance with the permitted uses described in the first sentence of this Section 1.7), and (iv) applicable governmental rules and regulations. In no event shall any use of the Premises involve any activity
not covered by forms of insurance required to be maintained under this 

  
 6 

 Lease. Tenant shall obtain and maintain at its sole cost and expense, all governmental approvals and/or
permits required for operation of Tenant’s business as described in this Section 1.7, including but not limited to those needed in connection with the presence of Hazardous Materials (as defined in Section 5.4.6 hereof) in, on or
about the Premises. 
 1.8 Rent and Other Charges Payable by Tenant. 

1.8.1 Basic Monthly Rent. The basic monthly rent for the Premises (“Basic Monthly Rent”) shall be the sum of TWO AND
25/100 DOLLARS ($2.25) per gross square foot of the Building per month for the first twelve (12) months of the Lease Term, and shall thereafter be adjusted as set forth in Section 3.2 below. The obligation of Tenant to pay Basic Monthly
Rent shall commence on the Commencement Date for the applicable phase and shall continue uninterrupted throughout the remainder of the Lease Term. When Tenant’s obligation to pay Rent commences for the Phase II Premises, the Basic Monthly Rent
for the Phase II Premises shall be calculated at the same rate per square foot of Gross Area as used in calculating the Phase I Premises, and it shall be adjusted at the same time and in the same manner as the Rent is adjusted for the Phase I
Premises, regardless of when Tenant’s obligation to pay Rent commences for the Phase II Premises. 
 1.8.2 INTENTIONALLY
DELETED. 
 1.8.3 Tenant’s Share of Charges under the Declaration. The Building will contain approximately
eighty-two thousand three hundred ninety (82,390) total gross square feet. The Project contains approximately one million two hundred ninety-nine thousand nine hundred ninety (1,299,990) gross square feet. Tenant’s share of
Assessments (as defined in Section 4.4.3) (based upon the gross square footage of the Building divided by the gross square footage of the Project) shall be Three and 85/100 percent (3.85%) after the Phase I Commencement Date and Six and
34/100 percent (6.34%) after the Phase II Commencement Date. 
 1.9 Condition Subsequent. Landlord agrees that it
shall use its best efforts to obtain, within sixty (60) days after the date hereof, Chevron’s execution of the following: 
 The Assignment Of Option And Consent To Assignment 
 by and among Landlord, Tenant
and Chevron, as provided 
 in Section 15.6 below. 
 Tenant agrees to execute the Assignment described above once it is in reasonably satisfactory form. 

  
 7 

  
 1.10 Rider and
Exhibits. The following exhibits are attached and made a part of this Lease: 
  

					
	Exhibit A:	  		  	Parcel Map
			
	Exhibit B:	  		  	Confirmation of Gross Area
			
	Exhibit C:	  		  	Work Letter Agreement
			
	Exhibit D:	  		  	Preliminary Shell Plans showing Phase I and Phase II
			
	Exhibit E:	  		  	Memorandum of Lease
			
	Exhibit F:	  		  	Memorandum of Option
			
	Exhibit G:	  		  	Assignment of Option and Consent to Assignment

 II 
 LEASE TERM 

2.1 Commencement Date. The Commencement Date shall be the date specified in Section 1.6 above for the beginning of the term
of the Lease, unless advanced or delayed under any provision of this Lease. 
 2.2 Lease of Premises for Lease Term.
Landlord leases the Premises to Tenant and Tenant leases the Premises from Landlord, in phases as described above, for the Lease Term. The Lease Term is for the period stated in Section 1.6 above, unless the beginning or end of the Lease Term
is changed under any provision of this Lease. 
 2.3 Holding Over. Tenant shall vacate the Premises upon the expiration
or earlier termination of this Lease, unless Tenant has exercised its Extension Option (as defined in section 2.5 below) or Landlord and Tenant have otherwise agreed in writing to extend the Lease Term. If Tenant, remains in possession of all or any
part of the Premises after the expiration of the Lease Term and Extension thereof (as defined in Section 2.5 below), such tenancy shall be from month-to-month only and not a renewal hereof or an extension for any further term, and in such case,
Basic Monthly Rent then in effect shall be increased to an amount equal to 125% of the Basic Monthly Rent then in effect and other monetary sums due hereunder shall be payable in the amount and at the time specified in this Lease; and such
month-to-month tenancy shall be subject to every other term, covenant and agreement contained herein, except that the month-to-month tenancy will be terminable upon thirty (30) days written notice given at any time by either party. In the event
of any holding over without Landlord’s prior consent, Tenant shall 

  
 8 

 indemnify Landlord against all claims for damages by any other tenant to whom Landlord may have leased all
or any portion of the Premises commencing upon or after the expiration of the Lease Term and Tenant shall reimburse Landlord for and indemnify Landlord against all costs, expenses (including reasonable attorneys’ fees), damages and losses
incurred by Landlord as a result of Tenant’s delay in vacating the Premises. 
 2.4 Surrender of Premises. Upon the
termination of the Lease, Tenant shall surrender the Premises to Landlord in the condition specified in Section 6.5 below. 

2.5 Option to Extend or Renew. Landlord hereby grants to Tenant two (2) consecutive five (5) year options (each, an
“Extension Option”) to extend the Lease Term (each, an “Extension”) after the initial Lease Term expires. Each Extension shall be on the same terms and conditions as set forth in this Lease, but at an increased Base Monthly Rent
as set forth in Section 3.3 below. 
 2.5.1 Notice. Each Extension Option shall be exercised only by written notice
(“Notice of Exercise”) delivered to Landlord at least six (6) months before the expiration of the Lease Term with respect to the first Extension Option, or, if the first Extension Option has been exercised, at least six
(6) months before the expiration of the Lease Term as extended by the first Extension Option. If Tenant fails to deliver to Landlord its Notice of Exercise of the Extension Option within the prescribed time period, such Extension Option and any
further Extension Option shall lapse, and there shall be no further right to extend the Lease Term. In addition, Tenant may deliver to Landlord a Notice of Intent pursuant to Section 3.3.1 below. Tenant’s failure to timely deliver a Notice
of Intent shall not affect Tenant’s right to exercise the Extension Option; provided, however, that if the Notice of Intent was not timely delivered but the Notice of Exercise was timely delivered, Tenant shall be obligated to pay an increased
Basic Monthly Rent based on the fair market value of the Premises determined in the manner described in Section 3.3 below. In the event that Tenant fails to deliver or fails to timely deliver a Notice of Intent, but timely delivers a Notice of
Exercise, then, for purposes of determining the time periods set forth in Section 3.3, the term “Notice of Exercise” shall be substituted for the term “Notice of Intent” in the second and third sentences of
Section 3.3.1, Section 3.3.2 and Section 3.3.7. 
 2.5.2 Conditions. Each Option shall be exercisable by
Tenant on the express condition that at the time of the exercise, and at all times prior to the commencement of the Extension, Tenant shall not be in default under any of the provisions of the Lease after any applicable grace period, nor 

  
 9 

 shall there be a condition which, after notice or passage of time (or both), shall constitute a default.

 2.6 Personal Options. Each Extension Option is personal to the Tenant named in Section 1.3 of the Lease and
cannot be transferred without Landlord’s consent. Notwithstanding the foregoing, if Landlord consents to a sublease of the Premises or an assignment of this Lease, each Extension Option may be transferred to Tenant’s sublessee or assignee,
at Tenant’s election. The foregoing notwithstanding, at Landlord’s election, Landlord may require that the applicable Extension Option be exercised for the entire Premises or none of the Premises. 

III 
 BASIC
MONTHLY RENT 
 3.1 Time and Manner of Payment. Upon the Commencement Date and each month thereafter Tenant shall pay
Landlord the Basic Monthly Rent in the amount stated in Subsection 1.8.1 above (prorated for any partial month at the beginning or end of the Lease Term) in United States currency, in advance, on or before the first day of each month without offset,
deduction or prior demand. The Basic Monthly Rent shall be payable at Landlord’s address or at such other place as Landlord may designate in writing. 
 3.2 Rental Adjustments. The Basic Monthly Rent during the term of this Lease shall be adjusted as set forth below. 
 3.2.1 Rent Increases. The Basic Monthly Rent shall be increased on the first day of each Lease Year (as defined below) commencing with the second (2nd) Lease Year by three and five/tenths
percent (3.5%) of the previous Lease Year’s Basic Monthly Rent. As used herein, “Lease Year” is defined to mean (i) the fractional calendar month, if any, at the commencement of the Lease Term and the next succeeding twelve
(12) full calendar months, and (ii) each period of twelve (12) full calendar months thereafter during the Lease Term. For the purpose of calculating Basic Monthly Rent increase, when Basic Monthly Rent commences for the Phase II
Premises, itshall be calculated as if the Phase II Commencement Date were the same as the Phase I Commencement Date. 
 3.3
Basic Monthly Rent During Extension. If and when Tenant exercises its Extension Option to extend the Lease Term, the Basic Monthly Rent on the first day of such Extension shall be the “fair rental value” (as defined in
Section 3.3.5 below) of the Premises, which fair rental value is to be determined as set forth in this Section 3.3, but in no event less than the Basic Monthly Rent then being paid at the end of the Lease Term or Extension then in effect,
as appropriate. 

  
 10 

  
 3.3.1 Notice of
Intent. Not sooner than one hundred twenty (120) days nor later than eighty-five (85) days prior to the date upon which a Notice of Exercise for an Option may be delivered (“Exercise Date”), Tenant shall deliver a written
notice to Landlord of Tenant’s intension to exercise the Option (“Notice of Intent”). Within ten (10) days after Landlord’s receipt of the Notice of Intent, Landlord and Tenant shall meet in an effort to negotiate, in good
faith, the fair rental value of the Premises as of the date when the Extension would commence (“Rental Adjustment Date”) . If Landlord and Tenant have not agreed upon the fair rental value of the Premises within ten (10) days of the
Landlord’s receipt of a Notice of Intent, the fair rental value shall be determined by appraisal in the manner described below. 
 3.3.2 Appraisal Procedure. Landlord and Tenant shall attempt to agree in good faith upon a single appraiser within fifteen (15) days after Landlord’s receipt of a Notice of Intent. If
Landlord and Tenant are unable to agree upon a single appraiser within such time period, then Landlord and Tenant shall each appoint one appraiser within twenty (20) days after Landlord’s receipt of a Notice of Intent. If, within the ten
(10) days thereafter, the two appointed appraisers cannot agree upon selection of a third appraiser, then Landlord shall submit the appointment of a third appraiser to the American Arbitration Association, who shall appoint an appraiser meeting
the requirements of Section 3.3.4 below, as the third appraiser. Notwithstanding any delays caused by the appraisal process or the selection of the appraiser(s) (including, without limitation, the time period, required to appoint a third
appraiser), no extension of the final date upon which Tenant may deliver a Notice of Exercise shall be permitted. 
 3.3.3
Selection. If either Landlord or Tenant fails to appoint its appraiser within the prescribed time period, the single appraiser appointed shall determine the fair rental value of the Premises. If both parties fail to appoint appraisers within
the prescribed time periods, then the first appraiser thereafter selected by a party shall determine the fair rental value of the Premises. 
 3.3.4 Costs and Qualifications. Each party shall bear the cost of its own appraiser and the parties shall share equally the cost of the single or third appraiser, if applicable. All appraisers so
designated herein shall have at least five (5) years experience in the appraisal of commercial/industrial real property in the San Diego area in the SR zone and shall be members of professional organizations such as MAI or an equivalent.

 3.3.5 Fair Rental Value Defined. The term “fair rental value” shall mean the price that a ready and willing

  
 11 

 
comparable, new non-renewal, non-equity tenant would pay, as of the applicable Rental Adjustment Date, as Basic Monthly Rent (giving appropriate consideration to the annual rental rate per gross
square foot of buildable area and the allocation of expenses between Landlord and Tenant) to a ready and willing landlord of property comparable to the Premises in both class and location for a term comparable to the applicable Extension period if
such property were exposed for lease on the open market for a reasonable period of time, taking into account all of the purposes for which such property may be used, including free rent, tenant improvement costs or similar leasing expenses being
offered in the market as of the applicable Rental Adjustment Date (for previously leased space), including, without limitation, commissions which a landlord would typically incur, and considering other generally applicable terms and conditions such
as length of term, size of premises, level and quality of services to the Premises, the allocation of expenses therefor between Landlord and Tenant, tenant improvement allowances and building standard items, for a comparable previously leased space.

 3.3.6 Determination of Value. If a single appraiser is chosen, then such appraiser shall determine the fair rental
value of the Premises. Otherwise, the fair rental value of the Premises shall be the arithmetic average of the two (2) of the three (3) appraisals which are closest in amount, and the third appraisal shall be disregarded. 

3.3.7 Exercise of Option. Landlord and Tenant shall instruct the appraiser(s) to complete their determination of the fair rental
value not later than fifty-five (55) days after Landlord’s receipt of a Notice of Intent. When the fair rental value of the Premises is determined, Landlord shall deliver notice thereof to Tenant. Thereafter, Tenant may, but is not
obligated to, in its sole and absolute discretion, considering the fair rental value determined as aforesaid, deliver its Notice of Exercise as described in Section 2.5 above. If the Notice of Intent was not timely delivered but the Notice of
Exercise was timely delivered, Tenant shall be obligated to pay an increased Basic Monthly Rent based on the fair market value of the Premises determined in the manner described in this Section 3.3. 

3.3.8 Extension. During an Extension, after the Basic Monthly Rent is determined as set forth above, the Basic Monthly Rent during
the remainder of the Extension shall be increased on the first day of the first month following the twelve (12) month anniversary date of the applicable Extension and on every twelve (12) month anniversary thereafter during the Extension
(“Adjustment Date”) pursuant to Section 3.3.9 below. 

  
 12 

  
 3.3.9 Cost or
Living Increases. The Basic Monthly Rent during any Extension shall be increased on the Adjustment Date in proportion to the increase in the Index (defined below) which has occurred between the month in which the previous Lease Year’s
adjustment was made and the Adjustment Date; provided, however, that the first such adjustment shall be in proportion to the increase in the Index which has occurred between the first month of the Extension and the month in which the Basic Monthly
Rent is to be increased. The foregoing notwithstanding, in no event shall the increase in the Basic Monthly Rent on each Adjustment Date be less than three percent (3%) or greater than eight percent (8%) in any Lease Year regardless of the
change in the Index. Landlord shall notify Tenant of each increase by delivering a written statement setting forth the Index for the previous year’s adjustment month or for the first month of the Extension, whichever is appropriate, the Index
for the month in which the Basic Monthly Rent is to be increased, the percentage increase between those two Indices, and the new amount of the Basic Monthly Rent. 
 3.3.10 Effective Date. Tenant shall pay the new Basic Monthly Rent from the Adjustment Date until the next Adjustment Date. Landlord’s notice described in Section 3.3.9 above may be given
after the Adjustment Date since the Index for the appropriate month may be unavailable on the Adjustment Date. In such event, Tenant shall pay Landlord the necessary rental adjustment for the months elapsed between the Adjustment Date of the
increase and Landlord’s notice of such increase within ten (10) business days after Landlord’s notice. 
 3.3.11
Index. Adjustments shall be made utilizing the United States Department of Labor, Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers, Subgroup “All Items” for the Los Angeles-Anaheim-Riverside Statistical Area
on the basis of 1982-84 = 100 (the “Index”). If the format or components of the Index are materially changed after the Effective Date, Landlord shall substitute an index which is published by the Bureau of Labor Statistics or similar
agency and which iss most nearly equivalent to the Index in effect on the Effective Date. Landlord shall notify Tenant of the substituted index. 
 3.3.12 Delay in Determination of New Basic Monthly Rent. If the new Basic Monthly Rent cannot be determined on the Adjustment Date, Tenant shall continue paying the Basic Monthly Rent payable
during the preceding 12-month period until such time as the new Basic Monthly Rent is determined. When the new Basic Monthly Rent is determined, Tenant shall pay the new Basic Monthly Rent retroactive to the applicable Adjustment Date. 

3.4 Grant of Warrants. Upon the Closing of the first to occur of a) Tenant’s Series “D” preferred financing or b)
other 

  
 13 

 equity financing, Tenant will, at landlord’s option, issue to Landlord that number of warrants to
purchase shares of Tenant’s capital stock issued in the financing equal to an amount determined by dividing (1) ONE MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($1,500,000.00) by (2) the lesser of (i) the price at which
Tenant’s capital stock is issued and sold to investors in the such financing, or (ii) Seven and 50/100 Dollars ($7.50). The terms and conditions of the warrants so issued shall be identical to any warrants issued in the financing;
provided, however, that (a) the exercise price shall be equal to the lesser of (i) the price paid by investors in the financing and (ii) Seven and 50/100 Dollars ($7.50); and (b) in no event shall the issuer of such
warrants be permitted to call the same before the expiration of seven (7) years after the issue date. Such warrants shall only be issued to Landlord if the following conditions are satisfied: a) Landlord has purchased the Real Property pursuant
to the Contract; and b) the Lease has not been terminated as provided in Section 1.4.2 above. Once such warrants have been issued, a default by Landlord under the terms of this Lease shall have no impact on the validity or enforceability of
such warrants, as the rights and obligations of the parties thereunder are intended to be separate and distinct from this Lease. 

IV 
 ADDITIONAL
RENT 
 4.1 Additional Rent. All charges payable by Tenant hereunder other than Basic Monthly Rent are called
“Additional Rent” and shall be paid in United States currency. Unless this Lease provides otherwise, all Additional Rent shall be paid with the next monthly installment of Basic Monthly Rent. As used herein, the term “Rent” shall
mean Basic Monthly Rent and Additional Rent. 
 4.2 Real Property Taxes. 

4.2.1 Payment of Taxes. Tenant shall pay all Real Property Taxes (as defined below) applicable to the Premises (“Tax
Payments”) during the Lease Term and any Extension. Payment shall be made directly to the appropriate taxing authority. The parties hereby acknowledge that the Real Property is presently assessed as a separate tax parcel. If the Real Property
is at any future date not assessed as a separate parcel, Tenant shall pay its proportionate share of the Real Property Taxes (as defined below) levied and assessed against the tax parcel (“Parcel”) of which the Premises are a part.
Tenant’s proportionate share of Real Property Taxes shall be the ratio that the gross square footage of the Premises bears to the total number of gross square feet in the Parcel. Each Lease Year Landlord shall notify Tenant of Landlord’s
calculation of Tenant’s proportionate share of the Real Property Taxes and, together with such notice, shall furnish Tenant with a copy of the 

  
 14 

 tax bill. If any supplemental tax bills are delivered with respect to the Parcel, Landlord may notify Tenant
of Landlord’s new calculation of Tenant’s proportionate share of Real Property Taxes as soon as such supplemental tax bills are received. Provided the notices set forth in this Section 4.2.1 are delivered, Tenant shall reimburse
Landlord for Tenant’s proportionate share of the Real Property Taxes semiannually no later than fifteen (15) days before the taxing authority’s delinquency date. For purposes of calculating the Tax Payments tor the partial year
periods (“Partial Year”) between (i) the Commencement Date and the following December 31, (ii) the date of the end of the Lease Term or early termination and the immediately preceding January 1, Tax Payments for the
calendar year in which the Partial Year occurs shall be reduced by multiplying such amounts by a fraction, the numerator of which is the number of days in the applicable Partial Year and the denominator of which is 365. The resulting amount shall be
the Tax Payments payable during such Partial Year. 
 4.2.2 Definition of Real Property Tax. As used herein, “Real
Property Tax” means: (i) any fee, license fee, license tax, business license fee, commercial rental tax, levy, charge, improvement bond or bonds, assessment, penalty or tax, general or special, ordinary or extraordinary, imposed by any
authority having the direct or indirect power to tax, including any city, county, state or federal government, or any school, agriculture, lighting, drainage or other improvement district thereof, as against any legal or equitable interest of
Landlord in the Real Property, (ii) any tax on the Landlord’s right to receive, or the receipt of, rent or income from the Real Property or against Landlord’s business of leasing the Real Property, (iii) any tax or charge for
fire protection, streets, sidewalks, road maintenance, refuse or other services provided to the Real Property by any governmental agency, and (iv) any charge or fee replacing any tax previously included within the definition of Real Property
Tax. “Real Property Tax” does not, however, include (i) Landlord’s federal or state income, franchise, inheritance or estate taxes, or (ii) interest on taxes or penalties resulting from Landlord’s failure to pay taxes
unless such failure was the result of Tenant’s failure to timely pay taxes as hereinabove provided. Tenant shall have the right, at any time and at its expense, to contest in good faith by judicial proceedings or otherwise any real or personal
property assessment, valuation, or tax deemed excessive by Tenant, and, if necessary, to do so in the name of Landlord, and in such event Tenant shall not be obligated to pay such assessment, valuation or tax until a final judicial determination of
such contest, but shall post such bonds as required by law and otherwise take all steps required to protect Landlord throughout any such contest. 

  
 15 

  
 4.2.3 Personal
Property Taxes. 
 (a) Tenant shall pay prior to delinquency, all taxes charged against trade fixtures, furnishings,
equipment or any other personal property belonging to Tenant. Tenant shall attempt to have such personal property taxed separately from the Premises. 
 (b) If any such taxes on Tenant’s personal property are levied against Landlord, or if the assessed value of the Project is increased by the inclusion therein of a value placed upon such personal
property or trade fixtures of Tenant, then Landlord, after written notice to Tenant, shall have the right to pay the taxes based upon such increased assessments, regardless of the validity thereof, but only under proper protest if required by Tenant
in writing. If Landlord shall do so, then Tenant shall, upon demand, repay to Landlord the taxes levied against Landlord, or the proportion of such taxes resulting from such increase in the assessment. In any such event, however, Tenant, at
Tenant’s sole cost and expense, shall have the right, in the name of Landlord and with Landlord’s full cooperation, to bring suit in any court of competent jurisdiction to recover the amount of any such taxes so paid under protest; any
amount so recovered to belong to Tenant. 
 (c) If any of Tenant’s personal property is taxed with the Real Property,
Tenant shall pay Landlord the taxes for the personal property within fifteen (15) days after Tenant receives a written statement from Landlord for such personal property taxes. 

4.3 Utilities. The parties acknowledge that a separate metering system shall be installed in the Building as a part of the Tenant
Improvements which will separately meter gas, electricity and water for, but not limited to, light, heat, ventilation, air conditioning services and water supplied to the Premises. Tenant shall arrange for and pay, directly to the appropriate
supplier, the cost of all of such services and all other utilities, if any, supplied to the Premises, including sewer and waste removal. In addition, Tenant shall arrange for and pay directly to the appropriate supplier the cost of any and all
telephone installation and service supplied to the Premises. 
 4.4 Common Area 

4.4.1 Definition; Location. As used in this Lease, “Project Common Areas” shall mean all areas within the Project which
are available for the common use of tenants of the Project as provided in that certain Declaration of Covenants and Restrictions for Torrey Pines Science Center [Unit 2] recorded on June 27, 1994 as Document No. 1994-0405385
(“Declaration”). The Project Common Areas will be maintained in accordance with the Declaration. 

  
 16 

  
 4.4.2 Use of Common
Areas. Tenant shall have non-exclusive right to use the Project Common Areas as provided in the Declaration. Landlord hereby assigns to Tenant Landlord’s rights under Section 12.2.3 of the Declaration to enforce the Declaration on a
non-exclusive basis, as and when Tenant’s interests are affected. Landlord shall provide to Tenant a copy of the Budget provided to Landlord pursuant to Section 10.4 of the Declaration within two (2) days after Landlord receives the
Budget. 
 4.4.3 Expenses under the Declaration. Tenant shall pay Tenant’s pro rata share of the Assessments (as
defined in the Declaration) due under the Declaration for which Landlord is responsible as provided below. Tenant’s pro rata share of the Assessments will be based on the Maximum Building Area (as defined in the Declaration) provided for the
Real Property under the Declaration. Tenant shall pay all of any Assessments relative to the Real Property based on (a) the Transportation Demand Management Program described in Sections 2.2.6 and 10.5(6) of the Declaration, and (b) the
use of the telecommunication facilities if Tenant utilizes such facilities as provided in Section 8.1(i) of the Declaration. Tenant shall pay to Landlord its pro rata share of the Regular Assessments (as defined in the Declaration) quarterly
within ten (10) days after receipt of an invoice from Landlord specifying the amount of the Regular Assessments and Tenant’s pro rata share thereof. If Landlord is notified that a Special Assessment is being considered under the
Declaration and Landlord has a right to vote on such Special Assessment as provided in the Declaration, Landlord shall notify Tenant of the reason for the Special Assessment and shall consult with Tenant as to how Landlord should vote as an Owner
under the Declaration. Landlord must obtain Tenant’s consent as to how Landlord will vote with respect to any proposed Special Assessment, which consent will not be unreasonably withheld or delayed. If the Special Assessment is not to defray
the actual Common Expenses of the Association as set forth in Section 10.7.1 of the Declaration, Tenant shall not be responsible for the payment of any portion of the Special Assessment. If the Special Assessment is to defray actual Common
Expenses of the Association (as defined in the Declaration), Tenant shall pay its pro rata share of the Special Assessment within ten (10) days after receipt of an invoice from Landlord specifying the amount of the Special Assessment and
Tenant’s pro rata share thereof. Tenant shall pay its pro rata share of any Reimbursement Assessment (as defined in the Declaration) within ten (10) days after receipt of an invoice from Landlord specifying the amount of the Reimbursement
Assessment and Tenant’s pro rata share thereof. Except as expressly described in this Section 4.4.3, all other costs under the Declaration shall be paid exclusively by Landlord including, without limitation, the Lagoon Enhancement fees
payable under Section 6.16 of the Declaration. 

  
 17 

  
 4.5 Late
Charges. Rent not paid when due shall be subject to a late charge equal to three percent (3%) per month, but not greater than that rate permitted under applicable law prohibiting the charging of usurious interest. Tenant acknowledges that
late payment of Rent shall cause Landlord to incur costs not contemplated by this Lease, the exact amount of which is extremely difficult and impractical to ascertain at this time. Accordingly, the parties agree that the foregoing late charge
represents a reasonable estimate of the loss and expense to be suffered by Landlord by reason of Tenant’s late payment. 
 V

 USE OF PREMISES 
 5.1 Permitted Uses. Tenant may use the Premises only for the Permitted Uses set forth in Section 1.7 above. 
 5.2 Manner of Use. 
 5.2.1 Objectionable Uses. Tenant shall not do
or permit anything to be done in or about the Premises which will in any way obstruct or interfere with or infringe on the rights of other occupants of the Project, or injure or annoy them, or use or allow the Premises to be used, for any improper,
immoral, or objectionable purposes; nor shall Tenant cause, maintain or permit any nuisance in, on or about the Premises or commit or suffer to be committed any waste in, on or about the Premises. Landlord shall not be liable to Tenant for any ether
tenant’s, occupant’s or owner’s failure to so conduct itself. 
 5.2.2 Non-permitted Uses. Tenant shall
net do or permit to be done in or about the Premises, nor bring, keep or permit to be brought or kept therein, anything which is prohibited by or will in any way conflict with any law, statute, ordinance or governmental rule or regulation now in
force or which may hereafter be enacted or promulgated, or which is prohibited by any standard form of fire insurance policy or which will in any way increase the existing rate of or affect any fire or other insurance upon the Building or any part
thereof or any of its contents, or cause a cancellation of any insurance policy covering the Building or any part thereof or any of its contents. Tenant shall comply with all governmental laws, ordinances and regulations applicable to the Premises,
the Declaration and the requirements of any Board of Fire Underwriters or other similar body now or hereafter instituted; with any order, directive or certificate of occupancy issued pursuant to any law, ordinance or regulation by any public officer
insofar as the same relates to or affects the condition, use or occupancy of the Premises, including but not limited to, requirements of registration, utilization and other fees and structural 

  
 18 

 changes related to or affected by Tenant’s acts, particular manner of occupancy or manner of use of the
Premises, all at Tenant’s sole expense; provided, however, Landlord shall be responsible for making alterations or repairs to the Premises at Landlord’s sole cost in accordance with the conditions described in Section 6.2.2 below.

 5.2.3 Prohibited Uses. Except as allowed pursuant to San Diego’s Scientific Research Zoning Ordinance and the
PID, Tenant shall not use, keep or permit to be used or kept any foul or noxious gas or substance in the Premises, or permit or suffer the Premises to be occupied or used in a manner unreasonably offensive or objectionable to the Landlord or other
occupants of the Project by reason of noise, odors and/or vibrations, or unreasonably interfere in any way with other tenants or those having business therein. Additionally, Tenant shall not use the Premises for: 

(a) Any use or operation that results in air emissions of pollutants or contaminants, unless such emissions are in full compliance with
all applicable laws relating to Hazardous Materials (as defined in Section 5.4.6 below); 
 (b) Any use that produces
intense glare or heat, unless such use is performed only within an enclosed or screened area in a manner such that the glare or heat emitted will not be discernable from the property line of the Real Property; 

(c) Any use that creates a sound pressure level in violation of any applicable laws; and 

(d) Any use that creates a ground vibration that is perceptible, without, instruments, at any point along the property lines of the Real
Property. 
 5.2.4 Permit. Tenant shall obtain and pay for all permits required for Tenant’s particular manner of
use and occupancy of the Premises and shall promptly take all actions necessary to comply with all applicable statutes, ordinances, rules, regulations, orders and requirements regulating the use by Tenant of the Premises, including the federal and
California Occupational Health and Safety Acts. 
 5.3 Signs. 

5.3.1 Permitted Signs. Tenant shall comply with the Torrey Pines Science Center Signage Guidelines and Criteria (“Sign
Guidelines”). Landlord hereby assigns to Tenant all rights to any building and monument signs permitted under the Declaration and Sign Guidelines for the Real Property. 

  
 19 

  
 5.3.2 Sign
Criteria. Tenant shall be permitted to install all signs allowed under the Declaration and Sign Guidelines provided that (i) Tenant obtains Landlord’s prior consent to any proposed signs, which consent shall not be unreasonably
withheld, (ii) Tenant obtains all permits and governmental consents required for the signs, (iii) the location and design have been reasonably approved by Landlord, and (iv) Tenant contracts for the construction of the signs with a
contractor reasonably approved by Landlord. All costs and expenses associated with the design, construction and installation of the signs shall be paid as part of the Tenant Improvements Allowance (as defined in the Work Letter). 

5.4 Hazardous Materials 
 5.4.1 Prohibition of Storage. Tenant shall not cause or permit any Hazardous Material (as hereinafter defined) to be brought upon, kept or used in or about the Premises or the Project by Tenant,
its agents, employees, contractors or invitees in a manner or for a purpose prohibited by any governmental agency or authority. If Tenant breaches the obligation stated in the preceding sentence, or if the presence of Hazardous Materials on the
Premises caused or permitted by Tenant (including Hazardous Materials specifically permitted and identified below) results in contamination of the Premises, or if contamination of the Premises by Hazardous Material otherwise occurs for which Tenant
is legally liable to Landlord for damage resulting therefrom, then, in addition to the obligations of Tenant set forth in Section 7.2 below, Tenant shall indemnify, defend and hold Landlord, its agents, contractors and lenders harmless from any
and all claims, judgments, damages, penalties, fines, costs, liabilities, or losses (including without limitation diminution in value of the Premises, damages for the loss or restriction on use of rentable or usable space or of any amenity of the
Premises, damages arising from any adverse impact on marketing of space in the Premises, and sums paid in settlement of claims, attorneys’ fees, consultant fees and expert fees) which arise during or after the Lease Term as a result of such
contamination. 
 5.4.1.1 Clean-up. This indemnification of Landlord, its agents, contractors and lenders, by Tenant
relating to the causing or permitting of any Hazardous Material to be brought upon, kept or used in or about the Premises or the Project by Tenant, its agents, employees, contractors or invitees, in a manner or for a purpose prohibited by any
governmental agency or authority, pursuant to Subsection 5.4.1 above includes, without limitation, costs incurred in connection with any investigation of site conditions or any cleanup, remedial removal, or restoration work required by any federal,
state or local governmental agency or political subdivision because of Hazardous Material present in the 

  
 20 

 soil or groundwater on or under the Premises. Without limiting the foregoing, if the presence of any
Hazardous Material on the Premises caused or permitted by Tenant results in any contamination of the Premises, Tenant shall promptly take all actions at its sole expense as are necessary to return the Premises to the condition existing prior to the
introduction of any such Hazardous Material to the Premises, provided that Landlord’s approval of such action shall first be obtained, which approval shall not be unreasonably withheld, so long as such actions would not potentially have any
material adverse long-term or short-term effect on the Premises or the Project. 
 5.4.1.2 Business. Landlord
acknowledges that it is not the intent of this Section 5.4 to prohibit Tenant from operating its business as described in Section 1.7 above. Tenant may operate its business according to the custom of the industry so long as the use or
presence of Hazardous Materials is strictly and properly monitored and accomplished according to all applicable governmental requirements. As a material inducement to Landlord to allow Tenant to use Hazardous Materials in connection with its
business, Tenant agrees to deliver to Landlord, prior to the Commencement Date, a list identifying each type of Hazardous Material to be present on the Premises and setting forth any and all governmental approvals or permits required in connection
with the presence of Hazardous Materials on the Premises (“Hazardous Materials List”). Tenant shall deliver to Landlord an updated Hazardous Materials List at least once a year during the Lease Term and any Extension, and shall deliver to
Landlord an updated Hazardous Materials List before any new Hazardous Materials are brought onto the Premises which identifies all additional permits and approvals issued in conjunction with the new Hazardous Materials and the dates on which such
permits and approvals were issued. 
 5.4.2 Termination of Lease. Notwithstanding the provisions of Subsection 5.4.1
above, Landlord shall have the right to terminate the Lease in Landlord’s sole and absolute discretion in the event that (i) any anticipated use of the Premises by Tenant involves the generation or storage, use, treatment or disposal of
Hazardous Material in a manner or for a purpose prohibited by any governmental agency or authority, (ii) Tenant has been required by any lender or governmental authority to take remedial action in connection with Hazardous Material
contaminating the Premises if the contamination resulted from Tenant’s action or use of the Premises (unless Tenant is diligently seeking compliance with such remedial action), or (iii) Tenant is subject to an enforcement order issued by
any governmental authority in connection with the use, disposal or storage of a Hazardous Material on the Premises (unless Tenant is diligently seeking compliance with such enforcement order). 

  
 21 

 5.4.3 Assignment and Subletting. Notwithstanding the provisions of Subsection 5.4.1
above, if (i) any anticipated use of the Premises by any proposed assignee or sublessee involves the generation or storage, use, treatment or disposal of Hazardous Material in a manner or for a purpose prohibited by any governmental agency or
authority, (ii) the proposed assignee or sublessee has been required by any prior landlord, lender or governmental authority to take remedial action in connection with Hazardous Material contaminating a property if the contamination resulted
from such party’s action or use of the property in question, or (iii) the proposed assignee or sublessee is subject to an enforcement order issued by any governmental authority in connection with the use, disposal or storage of a Hazardous
Material, it shall not be unreasonable for Landlord to withhold its consent to an assignment or subletting to such proposed assignee or sublessee. 
 5.4.4 Condition. Landlord represents and warrants that except as to those matters disclosed in the Phase I Environmental Site Assessment prepared by Harding Lawson Associates dated October 19,
1988, the Phase II Environmental Site Assessment prepared by Harding Lawson Associates dated April 17, 1989, and the Updated Phase I Environmental Site Assessment prepared by Harding Lawson Associates dated April 29, 1994 (collectively,
the “Environmental Studies”) the Premises and, to the best of Landlord’s knowledge, the Project and the Project Common Areas, as of the Effective Date (i) do not contain any Hazardous Material which is being used or stored in a
manner prohibited by any applicable governmental law, ordinance, rule or regulation relating to the use or storage of Hazardous Materials (“Hazardous Materials Laws”), and (ii) have never been used for the treatment, storage or
disposal of Hazardous Materials. Landlord is making no representations and warranties as to environmental matters except for the matters set forth in the Environmental Studies. If Landlord discovers that any violation of any Hazardous Materials Laws
has occurred within the Project which Landlord reasonably determines affects or may affect the Premises or interferes with Tenant’s business operations (other than a violation caused by Tenant, its agents, contractors, officers and/or
employees) and is not being corrected, then Landlord shall promptly give Tenant written notice of such violation and shall use its best efforts to cause the offending party to have such violation corrected in compliance with applicable Hazardous
Materials Laws. If the presence of Hazardous Materials on the Premises is caused or permitted by Landlord during Landlord’s ownership of the Real Property which results in contamination of the Premises, or there is a breach of the
representations and warranties of Landlord contained in this Section 5.4.4, then Landlord shall indemnify, defend and hold Tenant, its agents and contractors, harmless from any and all claims, judgments, damages, penalties, fines, costs,
liabilities, or losses which arise during or after the Lease Term as a result of such contamination or breach 

  
 22 

 of the representations and warranties contained in this Section 5.4.4. Landlord shall indemnify, defend
and hold Tenant harmless from any and all claims, judgments, damages, penalties, fines, costs, liabilities or losses which arise from the contamination of the Premises by Hazardous Materials occurring prior to the Commencement Date and during
Landlord’s ownership of the Real Property. 
 5.4.5 Landlord’s Right to Perform Tests. At any time prior to the
expiration of the Lease Term and upon Landlord’s reasonable belief that certain water, soil and/or other environmental tests are advisable, or if reasonably required in connection with Landlord’s attempt to obtain financing for the Real
Property, Landlord shall have the right following notice (except in the event of an emergency) to enter upon the Premises at all reasonable times in order to conduct appropriate tests of water and soil and to deliver to Tenant the results of such
tests to attempt to demonstrate that contamination in excess of permissible levels has occurred as a result of Tenant’s use of the Premises. Without limiting the foregoing sentence, Landlord shall have the right to have an environmental audit
of the Premises conducted within one hundred eighty (180) days prior to the scheduled expiration date or earlier termination of this Lease (if the Lease is terminated on a date other than the scheduled termination date). Tenant shall promptly
perform any remedial action recommended by such environmental audit unless the audit reveals that the Hazardous Materials resulted from the activities of a person other than Tenant its agents, contractors, officers and/or employees. The costs of
such audits shall be borne by Landlord unless the audit discloses the existence of Hazardous Materials in excess of action levels or governmental standards, in which case the costs of the audit shall be borne by Tenant. Notwithstanding the
foregoing, if the audit reveals that the Hazardous Materials resulted from the activities of a person other than Tenant, its agents, contractors, officers and/or employees, Tenant shall not be responsible for any portion of the cost of the audit.
Tenant shall further be solely responsible for and shall defend, indemnify and hold the Landlord, its agents, contractors and lenders harmless from and against all claims, costs and liabilities including actual attorneys’ fees and costs,
arising out of or in connection with, any removal, cleanup, restoration and materials required hereunder to return the Premises and any other property of whatever nature to their condition existing prior to the appearance of the Hazardous Materials.
The foregoing indemnity shall not apply, however, if Tenant establishes that the Hazardous Materials were present prior to the Commencement Date or attributable to the actions of a person other than Tenant. 

5.4.6 Definition of “Hazardous Materials.” As used herein, the term “Hazardous Material” means any hazardous
or toxic substance, material or waste which is or becomes regulated by any 

  
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 local governmental authority, the State of California or the United States Government. The term
“Hazardous Material” includes, without limitation, any material or substance which is (i) defined as a “hazardous waste,” “extremely hazardous waste” or “restricted hazardous waste” under Sections 25115,
25117 or 25122.7, or listed pursuant to Section 25140, of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as a “hazardous substance” under Section 25316 of the
California Health and Safety Code, Division 2, Chapter 6.8 (Carpenter-Presly-Tanner Hazardous Substance Account Act), (iii) defined as a “hazardous material,” “hazardous substance” or “hazardous waste” under
Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Substances), (v) petroleum; (vi) asbestos, (vii) listed under Article 9 and defined as hazardous or extremely hazardous pursuant to
Article 11 of Title 22 of the California Administrative Code, Division 4, Chapter 20, (viii) designated as a “hazardous substance” pursuant to Section 311 of the Federal Water Pollution Control Act” (33 U.S.C.
Section 1317) , (ix) defined as a “hazardous waste” pursuant to Section 1004 of the Federal Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq. (42 U.S.C. Section 6903), or (x) defined as a
“hazardous substance” pursuant to Section 101 of the Comprehensive Environmental Response Compensation and Liability Act, 42 U.S.C. Section 9601 et seq. (42 U.S.C. Section 9601). 

5.5 Landlord’s Access. Landlord and its agents may enter the Premises at all reasonable times to show the Premises to
potential buyers, investors or other parties, or for any other purpose Landlord deems necessary. Landlord shall give Tenant twenty-four (24) hours prior notice (which may be verbal) of such entry, except in the case of an emergency. Landlord
acknowledges that access to clean rooms and other areas may be restricted to protect Tenant’s product, health and safety. In the event access to these areas by Landlord is necessary, Tenant will reasonably cooperate in performing those
activities necessary to make the areas safe. Subject to the above, Landlord may place customary “For Sale” signs on the Premises. Landlord or its agents may enter the Premises at all reasonable times during the final year of the Lease Term
or any Extension (as applicable) to show the Premises to potential tenants. During the last year of the Lease Term or any Extension (as applicable), Landlord may place customary “For Lease” signs on the Premises. 

5.6 Quiet Possession. If Tenant pays the Rent and complies with all other terms of this Lease, Tenant may occupy and enjoy the
Premises for the full Lease Term, and any Extension, subject to the provisions of this Lease. 

  
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 VI 

CONDITION OF PREMISES.; MAINTENANCE, REPAIRS AND ALTERATIONS 

6.1 Condition of the Premises. Tenant accepts the Premises in accordance with the terms and conditions of this Lease, and in their
condition as of Tenant’s occupancy, subject to all laws, ordinances, and governmental regulations and orders. 
 6.2
Landlord’s Provision of Services. 
 6.2.1 Services. Landlord agrees to make available, in the manner
provided in the Work Letter (that is, either up to the Building or within a specified distance to the Building) throughout the Lease Term and any Extension (as applicable) facilities for delivery to the Premises of necessary utilities, including
electric, water, telephone and other necessary utility lines, and sewerage lines all sufficient to service Tenant’s operations upon substantial completion of the Phase II portion of the Premises. Tenant shall be responsible for paying the cost
of any such services which are supplied to the Premises. At all times, Tenant’s use of electric current shall not exceed the capacity of the feeders to the Building or the risers or wiring installed therein. 

6.2.2 Maintenance and Repair Service. Landlord shall be responsible for the maintenance, repair and replacement of all structural
portions of the Building. As used herein, “structural portions of the Building” shall mean all structural aspects of the Building, including the foundation and slabs, exterior walls, all roofing and exterior glass of the Building. Landlord
shall also be responsible for making alterations to the structural portion of the Building which Landlord is required to maintain or repair hereunder if such alterations are required by changes in the law after the Commencement Date, and are not
required as the result of Tenant’s particular manner of occupancy or use of the Premises. Landlord shall promptly make and pay for all repairs and replacements of a structural nature to the Building which are not made necessary by any
intentional act or negligent use of the Premises by Tenant, its agents, contractors, officers and/or employees or any failure by Tenant to perform its obligations hereunder, and shall make such other repairs and replacements, structural or
otherwise, as may be necessary by reason of Landlord’s defective workmanship, or failure to construct the Landlord’s Improvements (as defined in the Work Letter) as required. Landlord shall keep the structural portion of the Building in
good order, condition and repair during the Lease Term and any Extension (as applicable). Landlord shall have no obligation to provide repair or maintenance services to any area which Tenant may designate as a restricted area. Landlord shall use
Landlord’s best efforts to conduct such repairs and maintenance in a manner which does not unreasonably impact Tenant’s business operations. 

  
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 6.2.3
Landlord’s Expense. If Landlord refuses or neglects to repair the Premises as required hereunder to the reasonable satisfaction of Tenant, Tenant may, upon, thirty (30) days’ prior notice (except that no notice shall be
required in the case of emergency) perform such repair and maintenance on behalf of Landlord and upon completion thereof, Landlord shall pay Tenant’s cost for making such repairs upon presentation of a bill relating thereto. Said bill shall
include interest at ten percent (10%) per annum on said cost from the date of completion of repairs by Tenant until reimbursed in full by Landlord. If Landlord does not pay Tenant the full amounts owing within ten (10) days after receipt
of a bill, Tenant may offset the cost of such repair and maintenance, and interest accrued thereon, against Rent. 
 6.3
Tenant’s Obligations. 
 6.3.1 Maintenance and Repair. Tenant shall be responsible for the maintenance,
repair and replacement of all portions of the Premises for which Landlord is not expressly obligated hereunder to maintain and repair including, but not limited to, the Tenant Improvements. Tenant shall keep all Tenant Improvements installed on the
Premises in good order, condition and repair during the Lease Term and any Extension (as applicable). It is the intention of Landlord and Tenant that, at all times during the Lease Term and any Extension (as applicable), Tenant shall maintain all
Tenant Improvements in an attractive, first-class and fully operative condition. Notwithstanding the foregoing, Tenant shall have no obligation to repair any damage or defects caused by any intentional act or negligence of Landlord, its agents or
contractors or which may be caused by or result from any repairs, alterations, replacements or other improvements or installations made by Landlord, its agents or contractors, and the cost of any such repairs effected by Tenant (provided that,
except in the case of emergencies, prior to undertaking any such repairs Tenant provides to Landlord written notice and an opportunity to perform such repairs for a 20-day period, which 20-day period shall be extended for any additional time
reasonably required by Landlord to complete such repairs, if Landlord has commenced within such 20-day period and is diligently processing such repairs to completion) shall be promptly reimbursed by Landlord within ten (10) days following
billing thereof from Tenant. 
 6.3.2 Tenant Expense. All of Tenant’s obligations to maintain and repair shall be
accomplished at Tenant’s sole expense. If Tenant refuses or neglects to repair properly as required hereunder and to the reasonable satisfaction of Landlord, Landlord may on ten (10) days’ prior notice (except that no notice shall be
required in case of emergency) enter the Premises and perform such repair and maintenance on behalf of Tenant without liability to Tenant for any loss or damage that may accrue to Tenant’s merchandise, fixtures, or other property or to
Tenant’s business by reasons; 

  
 26 

 thereof, and upon completion thereof, Tenant shall pay Landlord’s costs of making such repairs plus ten
percent (10%) per annum for overhead, upon presentation of a bill therefore, as Additional Rent. Said bill shall include interest at ten percent (10%) per annum on said costs from the date of completion of repairs by Landlord until paid in
full by Tenant. Landlord may deduct all such amounts from any monies Landlord owes to Tenant. 
 6.4 Alterations, Additions,
and Improvements. 
 6.4.1 Procedure for Making Alterations. Tenant shall not make any alterations, additions or
improvements to the Premises without Landlord’s prior written consent, except for non-structural alterations costing less than $10,000 for a single alteration or $50,000 in the aggregate (collectively, the “Nonconsent Amounts”). The
Nonconsent Amounts shall be subject to periodic changes if reasonably required by Landlord’s lender; provided that landlord agrees to use its best efforts to negotiate with the lender the largest dollar amount possible for the Nonconsent
Amounts. Tenant shall give Landlord notice of all alterations, additions or improvements not requiring Landlord’s advance written consent. Landlord shall give written notification to Tenant of Landlord’s reasonable approval or disapproval
of alterations, additions or improvements which affect the structural components of the Building within ten (10) working days of Landlord’s receipt of reasonably detailed plans thereof. If Landlord does not respond to Tenant within ten
(10) working days after receipt of plans, Landlord shall be deemed to have approved such alterations. Tenant shall promptly remove any alterations, additions, or improvements constructed in violation of this Subsection upon Landlord’s
written request. All alterations, additions, and improvements will be accomplished in good and workmanlike manner, in conformity with all applicable laws and regulations, and by a contractor reasonably approved by Landlord. Upon completion of any
such work, Tenant shall provide Landlord with marked up shop drawings, copies of all construction contracts, and proof of payment for all labor and materials. Any additions to, or alterations of, the Premises shall become at once a part of the
Premises and belong to Landlord, except (i) moveable furniture, (ii) trade fixtures, (iii) process and process support equipment (except for any materials or items designated in Section 6.5.1 below as not to be removed by Tenant)
and (iv) any items listed in the Final Plans (as defined in the Work Letter) for the Tenant Improvements which Landlord has agreed to in writing, may be removed upon the termination of this Lease (or any items listed in the final plans for any
subsequent alterations, additions or improvements which Landlord has agreed to in writing may be so removed), provided the Premises are not damaged by any such removal, such removal is otherwise conducted in accordance with Section 6.5.2 below,
and Tenant shall not then be in default beyond 

  
 27 

 any applicable grace period under the terms and conditions of this Lease (that is, should Tenant be in
default, it shall have no right to remove any alterations, additions or improvements (including equipment) from the Premises. The foregoing notwithstanding, Landlord hereby agrees to subordinate its interest in any of Tenant’s equipment which
is, at the time of any such default, subject to an equipment lease/financing encumbrance (the “Equipment Lien”) to the interest of the holder of the Equipment Lien; provided that Tenant shall use its best efforts to obtain from the holder
of the Equipment Lien, at the time of origination thereof, a written agreement to first offer to Landlord the option to purchase the equipment if Tenant is in default under the terms of this Lease before exercising any rights it may have “under
the documents evidencing the Equipment Lien. 
 6.4.2 Condition of Landlord’s Approval. Any alterations,
improvements, or additions in or about the Premises that Tenant shall desire to make and which requires the consent of Landlord shall be presented to Landlord in written form, with detailed plans for the proposed work. If Landlord shall give its
consent thereto, the consent shall be deemed conditioned upon Tenant’s (i) acquiring a permit to complete such work from appropriate governmental agencies, (ii) furnishing of a copy thereof to Landlord prior to the commencement of the
work, and (iii) complying with all conditions of said permit in a prompt and expeditious manner. 
 6.4.3 Payment by
Tenant. Tenant shall pay when due all claims for labor and material furnished to the Premises. Tenant shall give Landlord at least fifteen (15) days’ prior written notice of the commencement of any work on the Premises whether or not
Landlord’s consent to such work is required. Landlord may elect to record and post notices of nonresponsibility on the Premises. 
 6.4.4 Freedom From Liens. Tenant shall keep the Premises, all other property therein and the Building free from any liens arising out of any work performed, materials furnished or obligations
incurred by Tenant, and shall indemnify, hold harmless and defend Landlord and Landlord’s lender from any liens and encumbrances arising out of any work performed or materials furnished by or at the direction of Tenant. In the event that Tenant
shall not, within thirty (30) days following the imposition of any such lien, cause such lien to be released of record by payment or, if Tenant has a good faith dispute with regard to such lien, by posting of a proper bond, Landlord shall have,
in addition to all other remedies provided herein and by law, the right, but not the obligation, to cause the same to be released by such means as it shall deem proper, including payment of the claim giving rise to such lien. All such sums paid by
Landlord and all expenses incurred by it in connection therewith, including attorneys’ fees and costs, shall be payable to Landlord by Tenant on demand with interest at the maximum rate allowed by law. 

  
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 6.5 Condition Upon
Termination. Upon the termination of the Lease, (whether by default or otherwise) Tenant shall surrender the Premises and all Tenant Improvements to Landlord broom clean and in the same condition, as received, except ordinary wear and tear which
Tenant was not otherwise obligated to remedy under any provision of this Lease. However, Tenant shall not be obligated to repair any damage which Landlord is required to repair under Article Eight (Damage or Destruction). 

6.5.1 Tenant Equipment That Remains on the Premises. In no event shall Tenant remove from the Premises any of the initial Tenant
Improvements constructed pursuant to the Work Letter. Notwithstanding the foregoing, upon termination of this Lease (at expiration of the Term or for any other reason), Tenant shall offer Landlord the right to purchase Tenant’s equipment which
is part of the Building Systems (but not process equipment) including, for example, DI water system, WFI still, clean steam generator, emergency generator, and any other items agreed to by Landlord in writing on the Final Plans and/or on any plans
approved by Landlord in connection with any subsequent alterations, additions or improvements. The price of said equipment will be the residual value at the time of the purchase based upon agreement or a mutually agreed upon appraisal method.
Landlord and Tenant shall designate a mutually agreed upon company as the appraiser to conduct the appraisal in the event that Landlord and Tenant are unable to agree with respect to the residual value of the equipment. If Landlord does not elect to
purchase the equipment, Tenant shall, at its sole cost, remove any of the equipment which Landlord elects not to purchase and shall restore the Premises as described in Section 6.5.2 below. The foregoing notwithstanding, Landlord hereby agrees
to subordinate its rights under this Section 6.5.1 to any equipment which is subject to an equipment lease/financing encumbrance (the “Equipment Lien”) to the holder of the Equipment Lien; provided that Tenant shall use its best
efforts to obtain from the holder of the Equipment Lien, at the time of origination thereof, a written agreement to first offer to Landlord the option to purchase the equipment if Tenant is in default under the terms of the equipment lease or this
Lease before exercising any rights its rights under the documents evidencing the Equipment Lien. 
 6.5.2 Removal of Tenant
Equipment. All equipment which Tenant is permitted to remove pursuant to Section 6.5.1 above must be removed promptly after the termination of the Lease and Tenant shall repair, at Tenant’s expense, any damage to the Building or the
Premises caused by such removal. If Tenant fails to repair the Premises, Landlord may complete such repairs and 

  
 29 

 Tenant shall reimburse Landlord for such repair and restoration. If Tenant fails to remove such property as
required under this Lease, Landlord may dispose of such property in its sole discretion without liability to Landlord, and further may charge the cost of any such disposition to Tenant. 

VII 
 INSURANCE
AND INDEMNITY 
 7.1 Insurance Premiums. 
 7.1.1 Liability Insurance. Tenant shall, at its sole expense, maintain during the Lease Term and any Extension (as applicable) comprehensive general or commercial liability insurance, including
contractual liability insurance covering Tenant’s indemnification of Landlord and personal injury coverage, with limits of not less than $2,000,000 per occurrence combined single limit for bodily injury and property damage, and $3,000,000
annual aggregate for personal injury and contractual liability. The amount of liability insurance shall be subject to periodic insurance based on lender requirements provided such increase is reasonable and customarily required of other tenants with
businesses similar to Tenant’s. Tenant’s insurance shall be written under policies issued by insurers acceptable to Landlord, shall name Landlord, its agents, servants and employees as additional insureds, and shall contain a provision
that said insurance shall not be canceled without thirty (30) days written notice to Landlord. Tenant shall, upon execution of this Lease, deliver to Landlord a certificate of insurance evidencing the insurance required to be carried by Tenant
and shall provide to Landlord renewal certificates of insurance not less than ten (10) days prior to the expiration date of any policy. If Tenant fails to provide proper verification of insurance, upon receipt of Landlord’s written notice
thereof, Tenant shall have ten (10) days to cure such default. Tenant’s failure to cure such default shall be a material default under this Lease. Tenant may, at Tenant’s expense, maintain such other insurance as Tenant deems
necessary to protect Tenant. 
 7.1.2 Hazard Insurance. During the Lease Term and any Extension (as applicable), Tenant
shall, maintain policies of insurance covering loss of or damage to the Building and the structural portions of the Premises and the Tenant Improvements to the extent of at least one hundred percent (100%) of its replacement value, including a
loss of rents clause. Tenant shall not do or permit to be done anything which invalidates any such insurance policies. Such policies shall generally be on an “all-risk” form and provide protection against all perils included within the
classification of fire, extended coverage, vandalism, malicious mischief, earthquake, and any other perils which Landlord deems necessary, and shall be payable to Landlord. In addition, Tenant 

  
 30 

 shall, at Tenant’s expense, maintain an “all-risk” insurance policy in the amount of one
hundred percent (100%) of replacement value on its fixtures, equipment, personal property and building improvements (including the Tenant Improvements) and all alterations and additions to the Premises. 

7.1.3 Other Insurance. Tenant shall maintain, during the term of this Lease, (i) statutory amounts of workers’
compensation insurance as required by the State of California covering all persons employed by Tenant, and (ii) environmental remediation, business interruption, loss of rents, and products liability (and/or clinical trial coverage, as
appropriate) insurance in amounts reasonably determined by Tenant but in no event less than the amount required by Landlord’s lender if such amount is reasonable and customarily required of tenants with businesses similar to Tenant’s. The
parties specifically acknowledge and agree that (i) Tenant’s earthquake coverage shall be in the amounts and for the scope of coverage as is customarily purchased by reasonably prudent tenants similarly situated in the geographic region of
the Premises at the time the coverage is evaluated; (ii) Tenant shall have the right, at its option, to satisfy the requirement for earthquake insurance by utilizing Landlord’s blanket policy and remitting to Landlord its pro rata share of
the cost therefor; and (iii) Tenant’s obligation to provide earthquake coverage shall commence upon substantial completion of the Phase II Premises. 
 7.1.4 Form of Policies. All insurance policies required to be carried by Tenant under this Lease shall (i) be written by companies rated A-10 or better in “Best’s Insurance
Guide” and authorized to do business in California, (ii) name Landlord, and any other parties designated by Landlord as additional insureds, (iii) as to liability coverages, be written on an “Occurrence” basis,
(iv) provide that Landlord shall receive at least thirty (30) days notice from the insurer before any cancellation or change in coverage, and (v) contain a provision that no act or omission, by Tenant shall effect or limit the
obligation of the insured to pay the amount of loss sustained. Each such policy shall contain a provision that such policy and the coverage evidenced thereby shall be primary and non-contributing with respect to any policies carried by Landlord and
that any coverage carried by Landlord shall be excess insurance. Any deductible amounts under any insurance policies required hereunder shall be subject to Landlord’s prior written approval (which shall not be unreasonably withheld) and in any
event Tenant shall be liable for payment of same in the event of any casualty. Tenant shall deliver reasonably satisfactory evidence of such insurance to Landlord, and Tenant shall attempt to incorporate Landlord’s reasonable requests as to
such policies. 

  
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 7.1.5 Increase in Fire Insurance Premium. Tenant agrees that it will not keep, use,
manufacture, assemble, sell or offer for sale in or upon the Premises any article which may be prohibited by the standard form of fire insurance policy. Tenant shall be solely responsible for and shall pay to Landlord upon demand any increase in
insurance premiums that may be charged during the term of this Lease on the amount of such insurance which may be carried by Landlord on said Premises, resulting from the acts or omissions of the Tenant, its agents, servants or employees, or the use
or occupancy of the Premises by the Tenant or from the type of materials or products stored, manufactured, assembled sold by Tenant in the Premises, whether or not Landlord has consented to the same. In determining whether increased premiums are the
result of Tenant’s use of the Premises, a schedule, issued by the organization making the insurance rate on the Premises, showing the various components of such rate, shall be conclusive evidence of the several items and charges which make up
the fire insurance rate on the Premises. 
 7.1.6 Waiver of Subrogation. Landlord and Tenant each hereby waive any and
all rights of recovery against each other and the officers, employees, agents and representatives of the other, on account of loss or damage occasioned to such waiving party or its property or the property of others under its control, to the extent
that such loss or damage is insured against under the insurance required to be carried by such waiving party under Subsection 7.1.2 of this Lease, or under any other policy or policies of property insurance carried by such waiving party. Each policy
of insurance shall contain a provision waiving subrogation against the other party to this Lease. 
 7.2 Indemnification of
Landlord. Tenant shall protect and indemnity Landlord and its partners, directors, officers, agents, employees and lenders (collectively, “Agents”) and save them harmless from and against any and all claims, actions, loss, damages,
liability, cost and expense (including, without limitation, court costs and attorneys’ fees) in connection with loss of life, personal injury and/or damage to property arising from or out of any occurrence in, upon or about the Premises, or the
occupancy or use by Tenant of the Premises or any part thereof, or occasioned, wholly or in part by any act or omission of Tenant, its agents, contractors employees servants, tenants or concessionaires. Tenant shall further indemnify, protect and
hold Landlord and its Agents harmless from and against any and all claims arising from any breach or default in performance of any obligation on Tenant’s part to be performed under the terms of this Lease, or arising from any act, neglect,
fault or omission of Tenant by its agents, contractors, employees, servants, tenants or concessionaires, and from and against all costs, attorneys’ fees, expenses and liabilities incurred in connection with such claim or any action or

  
 32 

 proceeding brought thereon. In case any action or proceeding shall be brought against Landlord and/or any of
its Agents by reason of any such claim, Tenant upon notice from Landlord or its Agents, shall defend the same at Tenant’s expense by counsel reasonably approved in writing by Landlord or its Agents, or, at Landlord’s election, Tenant shall
reimburse Landlord for any legal fees or costs incurred by Landlord in any such action or proceeding. The provisions of this Section 7.2 shall survive the expiration or sooner termination of this Lease with respect to any claims or liability
occurring prior to such expiration or termination and shall not be limited by reason of any insurance carried by Landlord, its Agents or Tenant. 
 7.3 Limitation of Landlord’s Liability. The obligations of Landlord under this Lease do not constitute personal obligations of the individual partners, shareholders, directors, officers,
employees, or agents of Landlord, and Tenant shall look solely to Landlord’s interest in the Premises and to no other assets of Landlord, for satisfaction of any liability in respect of this Lease. Tenant will not seek recourse against the
individual partners, shareholders, directors, officers, employees or agents of Landlord or any of their personal assets for such satisfaction. Notwithstanding any other provisions contained herein, except as expressly provided herein, Landlord shall
not be liable to Tenant, its contractors, agents or employees, for any consequential damages or damages for loss of profits. 

7.4 Commissions. The parties mutually warrant and covenant that no brokerage commissions shall be due and payable on account of
this transaction other than to Colliers Iliff, Thorn, and each party shall hold the other harmless from claims for such commissions arising from the actions of such party. Landlord shall be wholly liable for payment of the commission owing to
Colliers Iliff, Thorn and Company. 
 VIII 
 DAMAGE OR DESTRUCTION 
 8.1 Partial Damage to Premises. Tenant shall
notify Landlord in writing immediately upon the occurrence of any damage to the Premises. If the Premises are only partially damaged and if the proceeds received by Tenant from the insurance policies describe in Subsection 7.1.2 are sufficient to
pay for the necessary repairs (including Landlord’s overhead and other customary indirect costs), this Lease shall remain in effect and Landlord shall repair the damage as soon as reasonably possible provided, however, that if Landlord cannot
repair the Premises within one hundred eighty (180) days after the damage occurs, then Tenant shall have the right to terminate the Lease as of the date the damage occurred by delivering notice to Landlord within twenty (20) days of
Landlord’s notice 

  
 33 

 of the amount of time it will take Landlord to repair the damage. If Tenant fails to deliver its notice of
election to terminate within such twenty (20) day period, then Tenant shall have waived its right to terminate this Lease. “Partially damaged” shall mean that the damage to the Premises does not exceed fifty percent (50%) of the
replacement value of the Building. Landlord may elect to repair any damage to Tenant’s fixtures, equipment, or improvements. If the insurance proceeds are not sufficient to pay the entire cost of repair, or if the cause of the damage is not
covered by the insurance policies which Tenant maintains under Subsection 7.1.2, Landlord may elect either to (a) repair the damage as soon as reasonably possible, in which case this Lease shall remain in full force and effect, or
(b) terminate this Lease as of the date the damage occurred. Landlord shall notify Tenant within thirty (30) days after receipt of notice of the occurrence of the damage whether Landlord elects to repair the damage or terminate the Lease.
If Landlord elects to terminate this Lease, Tenant may elect to continue this Lease in full force and effect by giving Landlord written notice of such election within ten (10) days after receiving Landlord’s termination notice, in which
case Tenant shall repair any damage to the Premises at Tenant’s sole cost and expense. If the damage to the Premises occurs during the last year of the Lease Term or any Extension (as applicable), Landlord or Tenant may elect to terminate this
Lease as of the date the damage occurred, regardless of the sufficiency of any insurance proceeds. In such event, Landlord shall not be obligated to repair or restore the Premises and Tenant shall have no right to continue this Lease. Landlord or
Tenant shall notify the other party of its election within thirty (30) days after the occurrence of the damage. 
 8.2
Total or Substantial Destruction. If the Premises are totally or substantially destroyed by any cause whatsoever, this Lease shall, at the election of the Landlord, terminate as of the date the destruction occurred (the “Date of
Destruction”) regardless of whether Landlord receives any insurance proceeds. 
 8.2.1 Rebuilding the Premises. If,
in Landlord’s determination, the Premises can be rebuilt within one hundred eighty (180) days after the Date of Destruction, Landlord may elect to rebuild the Premises at Landlord’s own expense (with all insurance proceeds being made
available to the Landlord to apply against such costs), in which case, this Lease shall remain in full force and effect. Landlord shall notify Tenant of such election within twenty (20) days after the Date of Destruction. If the Date of
Destruction occurs during the last year of the Lease Term or any Extension (as applicable), Tenant has the right to terminate the Lease within twenty (20) days of the Date of Destruction regardless of whether or not Landlord elects to rebuild
the Premises. 

  
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 8.3 Uninsured Casualty. In the event the Premises are fully or partially destroyed by
any casualty not covered under the fire and extended coverage insurance carried by Landlord and Tenant, then Landlord may elect to terminate this Lease. In the event of such termination, the rights and obligations of the parties hereunder shall
cease. If the Landlord does not elect to so terminate, then the Landlord shall promptly commence repairing such damage at the Landlord’s sole cost and expense. 
 8.4 Landlord’s Obligations. Landlord shall not be required to repair any injury or damage by fire or other cause, or to make restoration or replacement of any paneling, decorations,
partitions, railings, floor coverings, office fixtures or any other improvements or property installed in the Premises. Tenant shall be required to restore or replace the same in the event of damage. Tenant shall have no claim against Landlord for
any damage suffered by reason of any such damage, destruction, repair or restoration, except where due to Landlord’s intentional misconduct or gross negligence and where (and only to the extent that) it is the case that insurance proceeds are
available, nor shall Tenant have the right to terminate this Lease as the result of any statutory provision now or hereafter in effect pertaining to the damage and destruction of the Premises. 

8.5 Temporary Reduction of Rent. If the Premises are made untenantable in whole or in part by fire or by other casualty insured
against by policies of insurance carried by the Landlord, any rent payable as Basic Monthly Rent or Additional Rent shall be reduced in proportion to the part of the Premises which is unusable by the Tenant, as determined by Tenant, until repairs
can be made or the Lease terminated as provided herein provided that Landlord shall be entitled to that portion of Tenant’s business interruption insurance which covers the Rent payable hereunder. Except for such reduction in Rent, Tenant shall
not be entitled to any compensation, reduction, or reimbursement from Landlord as a result of any damage, destruction, repair or restoration of or to the Premises. 
 8.6 Waiver. Tenant waives the protection of any statute, code or judicial decision which grants a tenant the right to terminate a lease in the event of damage or destruction of the Premises
(including but not limited to California Civil Code Sections 1932 and 1933. Tenant agrees that the provisions of this Article Eight shall govern the rights and obligations of Landlord and Tenant in the event of any damage or destruction of the
Premises. 
 IX 
 EMINENT DOMAIN 
 9.1 Total Condemnation. If the whole of the
Premises is acquired or condemned by eminent domain, inversely condemned or 

  
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 sold in lieu of condemnation, for any public or quasi-public use or purpose (“condemned”), then
the Lease Term shall terminate as of the date of title vesting in such proceeding and the Rent shall be adjusted to the date of termination. Tenant shall immediately notify Landlord of any such occurrence. 

9.2 Partial Condemnation. If any part of the Premises is condemned, and such partial condemnation renders the Premises unusable
for the business of the Tenant in Tenant’s opinion, then the term of this Lease shall terminate as of the date of title vesting in such proceeding and Rent shall be adjusted to the date of termination. If such condemnation is not extensive
enough to render the Premises unusable for the business of Tenant, then Landlord shall promptly restore the Premises to a condition comparable to its condition immediately prior to such condemnation less the portion thereof lost in such
condemnation, using proceeds recovered by Landlord. In such event this Lease shall continue in full force and effect, except that after the date of such title vesting, the Basic Monthly Rent shall be reduced as reasonably determined by Landlord.
Tenant waives the provisions of Code of Civil Procedure Section 1265.130 allowing Tenant to petition the Superior Court to terminate this Lease in the event of a partial taking of the Premises. 

9.3 Landlord’s Award. If the Premises are wholly or partially condemned, then, subject to the provisions of Section 9.4
below, Landlord shall be entitled to the entire award paid for such condemnation, and Tenant waives any right or claim in any part thereof from the Landlord or the condemning authority. 

9.4 Tenant’s Award. Tenant shall have the right to claim and recover from the condemning authority, but not from Landlord,
such compensation as may be separately awarded or recoverable by Tenant in its own right on account of any and all costs or loss (including loss of business) to which Tenant might incur in moving Tenant’s merchandise, furniture, fixtures,
leasehold improvements and equipment to a new location, provided that Tenant’s award shall in no event reduce the amount of the award paid to Landlord. 
 9.5 Temporary Condemnation. If the whole or any part of the Premises shall be condemned for any temporary public or quasi-public use or purpose, this Lease shall remain in effect and Tenant shall
be entitled to receive for itself such portion or portions of any award made for such use with respect to the period of the taking which is within the term. If a temporary condemnation remains in force at the expiration or earlier termination of
this Lease, Tenant shall pay to Landlord a sum equal to the reasonable cost of performing any obligations required of Tenant by this Lease with respect to the surrender of the Premises, including, without 

  
 36 

 limitation, repairs and maintenance required, and upon such payment Tenant shall be excused from any such
obligations. 
 9.6 Notice and Execution. Landlord shall within ten (10) days of service of process in connection
with any condemnation, or potential condemnation, give Tenant notice in writing thereof. Tenant shall immediately execute and deliver to the Landlord all instruments that may be required to effect the provisions of this Article. 

X 
 ASSIGNMENT
AND SUBLETTING 
 10.1 Landlord’s Consent Required. Except as provided below, no portion of the Premises or of
Tenant’s interest in this Lease may be acquired by any other person or entity, whether by assignment mortgage, sublease, transfer, operation of law, or act of Tenant, without Landlord’s prior written consent, which consent shall not be
unreasonably withheld or delayed. Except as provided below, any attempted transfer without consent shall be void and shall constitute a non-curable breach of this Lease. If Tenant is a partnership, (i) any cumulative transfer of more than fifty
percent (50%) of the partnership interests, or (ii) the admission of a new general partner, or (iii) the transfer of any interest of any general partner in the partnership shall require Landlord’s consent. If Tenant is a
corporation, any change in a controlling interest of the voting stock of the corporation shall require Landlord’s consent if such change results in a material adverse change to Tenant’s financial condition or prospective ability to perform
under this Lease. 
 10.1.1 Permitted Transfers. Tenant shall have the right, without the prior consent of Landlord, to
assign its interest in the Lease (i) to any corporation which is a successor to Tenant either by merger or consolidation, (ii) to a purchaser of all or substantially all of Tenant’s assets (provided such purchaser shall have also
assumed substantially all of Tenant’s liabilities), or (iii) to a corporation or other entity which shall (1) control, (2) be under the control of, or (3) be under common control with, Tenant (the term
“control” as used herein shall be deemed to mean ownership, directly or indirectly, of at least thirty percent (30%) of the outstanding voting stock of a corporation, or at least a thirty percent (30%) equity and control
interest if Tenant is not a corporation) (any such entity being a “Related Entity”). Tenant may also sublease all or any portion of the Premises to a Related Entity without the consent of Landlord. 

10.2 No Release of Tenant. No transfer permitted by this Article Ten, whether with or without Landlord’s consent, shall
release Tenant or change Tenant’s primary liability to pay the Rent 

  
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 and to perform all other obligations of Tenant under this Lease. Landlord’s acceptance of Rent from any
other person is not a waiver of any provision of this Article Ten. Consent to one transfer is not a consent to any subsequent transfer. If Tenant’s transferee defaults under this Lease, Landlord may proceed directly against Tenant without
pursuing remedies against the transferee. Landlord may consent to subsequent assignments or modifications of this Lease by Tenant’s transferee without notifying Tenant or obtaining its consent. Such action shall not relieve Tenant’s
liability under this Lease. 
 10.3 Landlord’s Election. Tenant’s request for consent to any transfer described
in Section 10.1 above shall be accompanied by a written statement setting forth the details of the proposed transfer, including the name, business and financial condition of the prospective transferee, financial details of the proposed transfer
(e.g., the term of and rent and security deposit payable under, any assignment or sublease), and any other information Landlord deems relevant. Landlord shall have the right to (i) withhold consent, if reasonable; or (ii) grant consent to
a transfer. 
 10.4 No Merger. No merger shall result from Tenant’s sublease of the Premises under this Article Ten,
Tenant’s surrender of this Lease or the termination of this Lease in any either manner. In any such event, Landlord may terminate any or all subtenancies or succeed to the Interest of Tenant as sublandlord thereunder. 

10.5 Involuntary Transfers. If this Lease is assigned to any person or entity pursuant to the provisions of the Bankruptcy Code,
11 U.S.C. §101 et seq. (the “Bankruptcy Code”), any and all monies or other consideration payable or otherwise to be delivered in connection with such assignment shall be paid or delivered to Landlord, shall be the exclusive property
of Landlord and shall not constitute property of Tenant or of the estate of Tenant within the meaning of the Bankruptcy Code. Any and all monies or other consideration constituting Landlord’s property under the preceding sentence not paid or
delivered to Landlord under the preceding sentence shall be held in trust for the benefit of Landlord and be promptly paid or delivered to Landlord. Any person or entity to which this Lease is assigned pursuant to the provisions of the Bankruptcy
Code shall be deemed without further act or deed to have assumed all of the obligations arising under this Lease on and after the date of such assignment. Any such assignee shall upon demand execute and deliver to Landlord an instrument confirming
such assumption. 

  
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 XI 

DEFAULTS; REMEDIES 
 11.1 Covenants and Conditions. Time is of the essence in the performance of all covenants and conditions by both Landlord and Tenant. 

11.2 Default by Tenant. Tenant shall be in material default under this Lease: 

11.2.1 Abandonment. If Tenant abandons the Premises or if such abandonment of the Premises results in the cancellation of any
insurance described in Article Seven; or 
 11.2.2 Failure to Pay. If Tenant fails to pay Rent or any other charge
required to be paid by Tenant, as and when due, and Tenant has received written notice from Landlord as to such failure to pay and does not cure such default within five (5) days after notice, Such notice shall satisfy, and not be in addition
to, the notice requirement in Section 791 of the California Civil Code; or 
 11.2.3 Failure to Perform. if Tenant
fails to perform any of Tenant’s non-monetary obligations under this Lease for a period of thirty (30) days after written notice from Landlord; provided that if more time is required to complete such performance, Tenant shall not be in
default if Tenant commences such performance within the thirty (30) day period and thereafter diligently pursues its completion, but in no event shall Tenant have longer than one hundred twenty (120) days to cure such default. However,
Landlord shall not be required to give such notice if Tenant’s failure to perform constitutes a non-curable breach of this Lease. The notice required by this Subsection is intended to satisfy any and all notice requirements imposed by law on
Landlord and is not in addition to any such requirement; or 
 11.2.4 Other Defaults. (i) If Tenant makes a general
assignment or general arrangement for the benefit of creditors; (ii) if a petition for adjudication of bankruptcy or for reorganization or rearrangement is filed by or against Tenant and is not dismissed within thirty (30) days;
(iii) if a trustee or receiver is appointed to take possession of substantially all of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease and possession is not restored to Tenant within thirty
(30) days; or (iv) if substantially all of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease is subjected to attachment, execution or other judicial seizure which is not discharged within thirty
(30) days. If a court of competent jurisdiction determines that any of the acts described in this Subsection 11.2.4 is not a default under this Lease, and a trustee 

  
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 is appointed to take possession (or if Tenant remains a debtor in possession) and such trustee or Tenant
transfers Tenant’s interest hereunder, then Landlord shall receive, as Additional Rent, the difference between the rent (or any other consideration,) paid in connection with such assignment or sublease and the rent payable by Tenant hereunder.

 11.3 Default by Landlord. Landlord shall be in material default under this Lease: 

11.3.1 Monetary Default. If Landlord fails to perform any of Landlord’s monetary obligations under this Lease for a period of
ten (10) days after written notice from Tenant; or 
 11.3.2 Non-Monetary. If Landlord fails to perform any of
Landlord’s material non-monetary obligations under this Lease for a period of thirty (30) days after written, notice from Tenant; provided that if more time is required to complete such performance Landlord shall not be in default if
Landlord commences such performance within the thirty (30) day period and thereafter diligently pursues its completion, but in no event shall Landlord have longer than one hundred twenty (120) days to cure such default. 

11.4 Remedies. On the occurrence of any material default by Tenant, Landlord may, at any time thereafter with or without notice or
demand and without limiting Landlord in the exercise of any right or remedy which Landlord may have, pursue any of the following remedies: 
 11.4.1 Termination of Possession. Terminate Tenant’s right to possession of the Premises by any lawful means, in which case this Lease shall terminate and Tenant shall immediately surrender
possession of the Premises to Landlord. In such event Landlord shall have the immediate right to re-enter and remove all persons and property and such property may be removed and stored in a public warehouse or elsewhere at the cost, and for the
account, of Tenant, all without service of notice or resort to legal process and without being deemed guilty of trespass, or becoming liable for any loss or damage which may be occasioned thereby; and Landlord shall be entitled to recover from
Tenant all damages incurred by Landlord by reason of Tenant’s default, including (i) the worth at the time of the award of all Basic Monthly Rent, Additional Rent and other charges which were earned or were payable at the time of the
termination; (ii) the worth at the time of the award of the amount by which the unpaid Basic Monthly Rent, Additional Rent and other charges which would have been earned or were payable after termination until the time of the award exceeds the
amount of such rental loss that Tenant proves could have been reasonably avoided; (iii) the worth at the time of the award of the amount by which the 

  
 40 

 unpaid Basic Monthly Rent, Additional Rent and other charges which would have been payable for the balance
of the term after the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; and (iv) any other amount necessary to compensate Landlord for all the detriment proximately caused by
Tenant’s failure to perform its obligations under the Lease or which in the ordinary course of things would be likely to result therefrom, including, but not limited to, any costs or expenses incurred by Landlord in maintaining or preserving
the Premises after such default, the cost of recovering possession of the Premises, expenses of reletting, including necessary renovation or alteration of the Premises, Landlord’s reasonable attorneys’ fees incurred in connection
therewith, and any real estate commissions or other such fees paid or payable. As used in subparts (i) and (ii) above, the “worth at the time of the award” is computed by allowing interest on unpaid amounts at the rate of fifteen
percent (15%) per annum, or such lesser amount as may then be the maximum lawful rate. As used in subpart (iii) above, the “worth at the time of the award” is computed by discounting such amount at the discount rate of the
Federal Reserve Bank of San Francisco at the time of the award, plus one percent (1%). If Tenant shall have abandoned the Premises, Landlord shall have the option of (i) retaking possession of the Premises and recovering from Tenant the amount
specified in this Subsection 11.4.1, or (ii) proceeding under Subsection 11.4.2; or 
 11.4.2 Maintenance of
Possession. Maintain Tenant’s right to possession, in which case this Lease shall continue in effect whether or not Tenant shall have abandoned the Premises. In such event, Landlord shall be entitled to enforce all of Landlord’s rights
and remedies under this Lease, including the right to recover the Rent as it becomes due hereunder; or 
 11.4.3 Other
Remedies. Pursue any other remedy now or hereafter available to Landlord under the laws or judicial decisions of the state in which the Premises is located. 
 11.5 The Right to Relet the Premises. Should Landlord elect to re-enter, as herein provided, or should it take possession pursuant to legal proceedings or pursuant to any notice provided for by
law, it may either terminate this Lease or it may from time without terminating this Lease, make such alterations and relet said Premises or any part thereof for such term or terms (which may be for a term extending beyond the term of this Lease)
and at such rental or rentals and upon such other terms and conditions as Landlord in its sole discretion may deem advisable; upon each such reletting all rentals received by the Landlord from such reletting shall be applied, first, to the repayment
of any indebtedness other than Rent due hereunder from Tenant to landlord; 

  
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 second, to the payment of any costs and expenses of such reletting, including brokerage fees and
attorneys’ fees and of costs of such alterations and repairs; third, to the payment of Rent due and unpaid hereunder, and the residue, if any, shall be held by Landlord and applied in payment, of future Rent as the same may became due and
payable hereunder. If such rentals received from such reletting during any month are less than that to be paid during that month by Tenant hereunder, Tenant shall pay any such deficiency to Landlord. Such deficiency shall be calculated and paid
monthly. No such re-entry or taking possession of the Premises by Landlord shall be construed as an election on its part to terminate this Lease unless a written notice of such intention be given to Tenant or unless the termination thereof be
decreed by a court of competent jurisdiction. 
 11.6 Waiver of Rights of Redemption. Tenant hereby expressly waives any
and all right of redemption, granted by or under any present or future laws in the event of Tenant being evicted or dispossessed for any cause, or in the event of Landlord obtaining possession, of the Premises, by reason of the violation by Tenant
of any of the covenants or conditions of this Lease, or otherwise. 
 11.7 Cumulative Remedies. Landlord’s exercise
of any right or remedy shall not prevent it from exercising any other right or remedy. 
 11.8 No Waiver. No failure by
Landlord to insist upon the strict performance of any term hereof or to exercise any right or remedy consequent upon a breach thereof, and no acceptance of full or partial payment of Rent during the continuance of any such breach, shall constitute a
waiver of any such breach or of any such term. Efforts by Landlord to mitigate the damages caused by Tenant’s breach of this Lease shall not be construed to be a waiver of Landlord’s right to recover damages under this Section 11.8.
Nothing in this Section 11.8 affects the right of Landlord to indemnification by Tenant in accordance with Section 7.2 for liability arising prior to the termination of this Lease for personal injuries or property damage. 

XII 
 ESTOPPEL,
CERTIFICATE, ATTORNMENT AHD SUBORDINATION 
 12.1 Subordination. 

12.1.1 Landlord’s Election. Landlord shall have the right to require Tenant to subordinate this Lease to any other ground
lease, deed of trust or mortgage encumbering the Premises, any advances made on the security thereof and any renewals, modifications, consolidations, replacements or extensions thereof, whenever made or recorded if the ground lessee, deed of trust

  
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 beneficiary or mortgagee agrees that Tenant’s right to quiet possession of the Premises during the
Lease Term and any Extension (as applicable) shall not be disturbed if Tenant pays the Rent and performs all of Tenant’s obligations under this Lease and is not otherwise in default. If any ground lessor, beneficiary or mortgagee elects to have
this Lease prior to the lien of its ground lease, deed of trust or mortgage and gives written notice thereof to Tenant, this Lease shall be deemed prior to such ground lease, deed of trust or mortgage whether this Lease is dated prior or subsequent
to the date of said ground lease, deed of trust or mortgage or the date of recording thereof. 
 12.1.2 Execution of
Documents. Tenant agrees to execute any documents required to effectuate such subordination or to make this Lease prior to the lien of any ground lease, mortgage or deed of trust, as the case may be, and failing to do so within ten
(10) business days after written demand, does hereby make, constitute and irrevocably appoint Landlord as Tenant’s attorney-in-fact and in Tenant’s name, place and stead, to do so. 

Modification for Lender. If, in connection with (i) obtaining any construction, interim or permanent financing, or (ii) any sale of the
Premises or the Real Property or any portion thereof, the lender, purchaser or ground lessor shall request reasonable modifications to this Lease as a condition to such sale, financing or refinancing, Tenant will not unreasonably withhold, delay or
defer its consent thereto, provided that such modifications do not materially increase the obligations of Tenant hereunder or materially adversely affect the leasehold interest hereby created or Tenant’s rights hereunder. 

12.2 Attornment. If Landlord’s interest in the Premises is acquired by any ground lessor, beneficiary under a deed of trust,
mortgagee, or purchaser at a foreclosure sale, Tenant shall attorn to the transferee of or successor to Landlord’s interest in the Premises and recognize such transferee or successor as Landlord under this Lease. Tenant waives the protection of
any statute or rule of law which gives or purports to give Tenant any right to terminate this Lease or surrender possession, of the Premises upon the transfer of Landlord’s interest. 

12.2.1 Non-Disturbance. Tenant’s obligation to subordinate its interest under this Lease and to attorn to and become the
tenant of a successor-in-interest to Landlord as described in Section 12.2 above shall be conditioned upon the receipt of Tenant of a written agreement executed by said successor stating that Tenant’s interest in the Premises under this
Lease shall not be interrupted or terminated due to such foreclosure or conveyance in lieu thereof as long as Tenant is not in default under this Lease. Landlord shall deliver to Tenant a non-disturbance agreement in form acceptable, 

  
 43 

 to Tenant; executed by the mortgagee beneficiary, or ground lesser, as the case may be, whose ground lease,
deed of trust or mortgage (i) now encumbers the Premises, within sixty (60) days of the date hereof, or (ii) hereafter encumbers the Premises if such mortgagee, beneficiary or ground lessor requires that the Lease be subordinate to
its mortgage, deed of trust or ground lease, simultaneously with recordation of the ground lease, mortgage or deed of trust encumbering the Premises. 
 12.3 Signing of Documents. Tenant shall sign and deliver any instrument or documents necessary or appropriate to evidence any such attornment or subordination. If Tenant fails to do so within ten
(10) business days after written request. Tenant hereby makes, constitutes and irrevocably appoints Landlord, or any transferee or successor of Landlord; the attorney-in-fact of Tenant to execute and deliver any such instrument or document.

 12.4 Estoppel Certificates. 
 12.4.1 Landlord’s Request. Upon Landlord’s written request, Tenant shall execute, acknowledge and deliver to Landlord a written statement certifying if true (or if not, stating why):
(i) that none of the terms or provisions of this Lease have been changed (or if they have been changed, stating how they have been changed); (ii) that this Lease has not been cancelled or terminated; (iii) the last date of payment of
the Basic Monthly Rent and other charges and the time period covered by such payment; (iv) that Landlord is not in default under this Lease (or, if Landlord is claimed to be in default, stating why); and (v) such other reasonable
statements as may be required by Landlord or any prospective purchasers or encumbrancers including, if required, a specific description of the use being made of the Premises. Tenant shall deliver such statement to Landlord within ten
(10) business days after Landlord’s request. Any such statement by Tenant may be given by Landlord to any prospective purchaser or encumbrancer of the Premises. Such purchaser or encumbrancer may rely conclusively upon such statement as
true and correct. 
 12.4.2 Failure to Deliver. If Tenant does not deliver such statement to Landlord within such ten
(10) business day period, Landlord and any prospective purchaser or encumbrancer, may conclusively presume and rely upon the following facts: (i) that the terms and provisions of the Lease have not been changed except as otherwise
represented by Landlord; (ii) that this Lease has not been cancelled or terminated except as otherwise represented by Landlord; (iii) that not more than one month’s Basic Monthly Rent or other charges have been paid in advance; and
(iv) that Landlord is not in default under the Lease. 

  
 44 

  
 12.5 Tenant’s
Financial Condition. Within ten (10) business days after written request from Landlord, Tenant shall deliver to Landlord such financial statements as are reasonably required by Landlord to verify the net worth of Tenant, and/or any assignee
or subtenant of Tenant. In addition, Tenant shall deliver to Landlord and/or any lender or prospective purchaser of the Premises designated by Landlord, any financial statements reasonably required by such lender or purchaser to facilitate the sale,
financing or refinancing of the Premises. Tenant represents and warrants to Landlord that each such financial statement is a true, accurate and complete statement as of the date of such statement. All statements shall be confidential and shall be
used only for the purpose set forth herein. 
 XIII 
 LIABILITY 
 13.1 Landlord’s Liability. 

13.1.1 Landlord. As used in this Lease, the term “Landlord” means only the current owner or owners of the Real Property
at the time in question. Each Landlord is obligated to perform the obligations of Landlord under this Lease only during the time such Landlord owns such interest or title. Any Landlord who transfers its title or interest is relieved of all liability
with respect to the obligations of Landlord under this Lease to be performed on or after the date of transfer. However, each Landlord shall deliver to its transferee all funds previously paid by Tenant if such funds have not yet been applied under
the terms of this Lease. 
 13.1.2 Transfers. Tenant acknowledges that Landlord intends to transfer the Real Property and
all the rights and obligations associated therewith, including, without limitation, this Lease, to a limited partnership in which Lankford & Associates Inc. is the general partner (“Limited Partnership”) (the
“Transfer”). Tenant consents to the Transfer. 
 13.1.3 Written Notice. Tenant shall give written notice of any
failure by Landlord to perform any of its obligations under this Lease to Landlord and to any ground lessor, mortgagee or beneficiary under any deed of trust encumbering the Premises whose name and address have been, furnished to Tenant in writing.
Landlord shall not be in default under this Lease unless Landlord (or such ground lessor, mortgagee or beneficiary) fails to cure such non-performance within thirty (30) days after receipt of Tenant’s notice. However, if such
non-performance reasonably requires more than thirty (30) days to cure, Landlord shall not be in default if such cure is commenced within such thirty (30) day period and is thereafter diligently pursued to completion. 

  
 45 

  
 13.2 Tenant’s
Liability. Notwithstanding anything to the contrary contained herein, the officers and/or directors of Tenant shall not be personally liable for Tenant’s obligations under this Lease and shall not be sued or named as a party in any suit or
action related to Tenant’s obligations under this Lease (except as may be necessary to secure jurisdiction of Tenant). 

XIV 
 LEGAL COSTS

 14.1 Legal Proceedings. 
 14.1.1 Costs. Tenant shall reimburse Landlord, upon demand, for any costs or expenses incurred by Landlord in connection with any breach or default of Tenant under this Lease, whether or not suit
is commenced or judgment entered. Such costs shall include legal fees and costs incurred for the negotiation of a settlement, enforcement of rights or otherwise. Furthermore, if any action for breach of or to enforce the provisions of this Lease is
commenced, the court in such action shall award to the party in whose favor a judgment is entered, a reasonable sum as attorneys’ fees and costs. Such attorneys’ fees and costs shall be paid by the losing party in such action. 

14.1.2 Indemnification. Tenant shall also indemnify Landlord against and hold Landlord harmless from all costs, expenses, demands
and liability incurred by Landlord if Landlord becomes or is made a party to any claim or action (i) instituted by Tenant, or by any third party against Tenant (except if the claim against Tenant arises solely out of acts of Landlord), or by or
against any person holding any interest under or using the Premises by license of or lease with Tenant, (ii) for foreclosure of any lien for labor or material furnished to or for Tenant or such other person, (iii) otherwise arising out of
or resulting from any act or transaction of Tenant or such other person, or (iv) necessary to protect Landlord’s interest under this Lease in a bankruptcy proceedings, or other proceeding under Title 11 of the United States Code, as
amended. Tenant shall defend Landlord against any such claim or action at Tenant’s expense with counsel reasonably acceptable to Landlord or, at Landlord’s election, Tenant shall reimburse Landlord for any legal fees or costs incurred by
Landlord in any such claim or action. Notwithstanding anything to the contrary contained in this Section 14.1.2, the foregoing indemnity shall not apply to any cost, expenses, demands or liabilities incurred by Landlord and Tenant in which
Tenant is the prevailing party. 

  
 46 

  
 XV 

OPTION TO LEASE 

15.1 Option to Lease. Landlord currently has the option to purchase the real property located in the City of San Diego, County of
San Diego, State of California, more particularly described as Lots 18 and 20 of Subdivision Map No. 12485 filed in the Office of the County Recorder of San Diego County on July 23, 1991, and now known as Parcels 5 and 4, respectively, of
the Parcel Map defined in Section 1.4.1 above (“Option Property”), from Chevron, under the terms of two separate certain Option Agreements (one as to Parcel 5/Lot 18, and one as to Parcel 4/Lot 20) between Chevron, as optionor, and
Landlord, as optionee, each dated as of December 23, 1994. 
 15.2 Grant of Option. Tenant shall have the option to
lease (“Lease Option”) all or a portion of the Option Property on substantially the same terms and conditions of the Lease including, without limitation, (i) the rental rate per gross square foot of building area in effect under the
Lease as of the commencement date of the Lease Option (provide, however, that the rental rate shall be adjusted upward after giving appropriate consideration to the economic variables effecting rent, including, for example, the prevailing interest
rate at the time of exercise of the Lease Option, and the prevailing purchase price under the Option Agreements) (ii) Landlord’s obligation to construct the Building Shell and Landlord’s Improvements on the Option Property at
Landlord’s sole cost and expense (in accordance with the Work Letter), and (iii) Landlord’s obligation to construct the Tenant Improvements and provide the Tenant Improvement Allowance (in accordance with the formula described in the
Work Letter). 
 15.3 Exercise of Option. Tenant may elect to exercise the Lease Option by delivering to Landlord written
notice of its exercise of the Lease Option (“Notice of Exercise”) on or before October 15, 1997. As a condition of the effectiveness of the Notice of Exercise, Tenant shall, no later than August 15, 1997, deliver a written notice
to Landlord of Tenant’s intention, to exercise the Lease Option (“Notice of Intent”). The Notice of Intent shall set forth the amount of gross square feet of the Option Property that Tenant intends to lease (“Additional
Premises”) the proposed configuration of the buildings and other improvements to be constructed on the Additional Premises, and the outside date by when the Additional Premises, with the improvements substantially completed thereon, must be
delivered to Tenant for occupancy (“additional Premises Delivery Date”). Within ten (10) days after Landlord’s receipt of the Notice of Intent, Landlord and Tenant shall meet in a good faith effort to negotiate and execute within
thirty (30) days thereafter a letter of intent (“Letter of Intent”) containing all of the material terms and conditions of a 

  
 47 

 lease for the Additional Premises (“Additional Premises Lease”) including, without limitation, the
rental rate for the Additional Premises, the configuration of the Additional Premises, and the Additional Premises Delivery Date. Thereafter, Tenant may, but is not obligated to, in its sole and absolute discretion, deliver its Notice of Exercise to
Landlord as described above. 
 15.4 Landlord’s Purchase. If Tenant delivers the Notice of Exercise as described in
Section 15.2 above, Landlord shall exercise its option to purchase all or a portion of the Option Property, as the case may be, from Chevron such that Landlord is able to deliver the Additional Premises to Tenant with the improvements thereon
substantially completed on or before the Additional Premises Delivery Date, or such other date mutually agreed to in writing by Landlord and Tenant. 
 15.5 Additional Premises Lease. If Tenant delivers the Notice of Exercise, Landlord and Tenant shall, within sixty (60) days after execution of the Letter of Intent, execute and deliver to
each other the Additional Premises Lease which shall reflect the terms and conditions of the Letter of Intent. In addition, the Additional Premises Lease shall contain substantially the same terms and conditions as provided in this Lease, including
without limitation, the representations and warranties as to environmenta1 matters. If Tenant fails to timely deliver the Notice of Exercise, Landlord shall have the right to lease the Option Property to another party. 

15.6 Memorandum of Option and Option Assignment. Concurrently with the execution of this Lease, the parties shall execute and
acknowledge, in recordable form a Memorandum of Lease Option in the form attached hereto as Exhibit “F”. Landlord shall use its best efforts to have Chevron execute the Assignment of Option and Consent to Assignment (the “Option
Assignment”) covering Landlord’s option to purchase from Chevron, in the form attached hereto as Exhibit “G” within sixty (60) days of the Effective Date. Landlord and Tenant shall execute the Option Assignment after Chevron
executes the same. Tenant shall, at its option, immediately thereafter cause the Memorandum and the Option Assignment to be recorded in the Official Records of San Diego County at Tenant’s sole cost and expense. 

XVI 
 RIGHT OF
FIRST REFUSAL TO PURCHASE 
 16.1 Right of First Refusal. If at any time after the Transfer (defined in
Section 13.1.2), a bona fide offer for the purchase of the Real Property is made to Landlord, which offer Landlord in good faith intends to accept, then, provided Tenant is not then in default hereunder, landlord shall send Tenant notice

  
 48 

 (“Transfer Notice”) of such offer. The Transfer Notice shall state the price, terms and conditions
of the proposed transaction, and the identity of the proposed purchaser. 
 16.2 Effect of Transfer Notice. Delivery of
the Transfer Notice to Tenant shall be deemed to be an offer by Landlord to sell the Real Property to Tenant. The offer contained in the Transfer Notice may be accepted within five (5) working days following the date of delivery of the Transfer
Notice to Tenant (“Offer Period”) and may not be withdrawn by Landlord within the Offer period. Pursuant to the offer, Tenant shall have the right to purchase the Real Property on the terms and conditions stated in the Transfer Notice.

 16.3 Acceptance of Offer. On or before the last day of the Offer Period, Tenant shall deliver to Landlord notice of
its acceptance or rejection of the offer. Delivery of a notice of acceptance to Landlord by Tenant shall create a binding contract between Landlord and Tenant, Tenant’s failure to timely deliver such notice shall be deemed a rejection of
Landlord’s offer. 
 16.4 Closing. The closing of the transfer of the Real Property from Landlord to Tenant shall be
at such time and place as may be agreed to in writing by Landlord and Tenant. If Landlord and Tenant are not able to agree, the closing shall occur offices of Landlord at 10:00 a.m. on the sixtieth (60th) business day following the expiration
of the Offer Period or such later date as set forth in the Transfer Notice. At the closing, Landlord shall deliver to Tenant all documents reasonably requested by Tenant to evidence transfer of the Real Property, and Tenant shall deliver to Landlord
cash (or certified or cashier’s check for the amount of the cash consideration) and any promissory notes to be paid by Tenant for the Real Property. Landlord and Tenant each shall execute and deliver such other documents as may reasonably be
requested by the other in connection with the transaction contemplated by this Article XVI. 
 16.5 Release of Real
Property. In the event that Tenant shall not elect to purchase the Real Property pursuant to the provisions of Section 16.1 through 16.3 above, Landlord may sell the Real Property to the proposed transferee on the terms and conditions
contained in the Transfer Notice. During the period commencing with substantial completion of the Phase II Premises and ending on the third anniversary thereof (the “Ongoing Rights Period”), if such transfer is not consummated, the
provisions of Sections 16.1 through 16.3 shall again apply to any proposed sale of the Real Property. After the Ongoing Rights Period, once Landlord has delivered a Transfer Notice, then if Tenant shall not elect to purchase the Real Property
pursuant to this Article XVI, then Tenant’s rights under this Article XVI shall terminate. If Tenant 

  
 49 

 exercises its rights hereunder and delivers a notice of acceptance but fails to complete the purchase of the
Real Property solely due to Tenant’s default, then Tenant’s rights under this Article XVI shall terminate. 
 16.6
Failure to Sell. During the Ongoing Rights Period, If Landlord fails to sell the Real Property within six (6) months after having delivered the Transfer Notice to Tenant, then, prior to any sale thereof, Landlord shall once again notify
Tenant of any bona fide offer to purchase the Real Property and the aforesaid procedure shall be repeated. 
 16.7
Landlord’s Successors. Upon any sale of the Real Property as provided herein, the rights of Tenant under this Article shall continue as restricted herein so that any Landlord shall be bound hereby; that is, so long as such sale has
occurred during the Ongoing Rights Period. Upon any transfer of the Real Property by trustee’s sale, judicial foreclosure, or deed in lieu thereof, Tenant’s rights under this Section 16 shall terminate. 

XVII 
 RIGHT OF
FIRST OFFER TO PURCHASE 
 17.1 Landlord’s Offer. If at any time during the Lease Term, Landlord shall desire to
sell the Real Property, then, provided that Depotech Corporation shall be the Tenant hereunder and provided Tenant is not then in default hereunder, Landlord shall offer (“Landlord’s Offer”) to sell the Real Property to Tenant prior
to offering the same to any other individual or entity other than a subsidiary or affiliate of Landlord. Landlord’s Offer shall be in writing and shall set forth the terms and conditions upon which the Real Property is to be sold. The foregoing
notwithstanding if Landlord notifies Tenant that Landlord intends to sell the Real Property as provided in this Section 17.1 and Tenant does not express the desire to purchase the Real Property by written notice within ten (10) days of
Landlord’s notice, in accordance with the terms hereof, Tenant shall not have the right of first refusal provided in Article XVI on any subsequent offer resulting from Landlord’s desire to sell the Real Property within a nine
(9) month period following Tenant’s receipt of Landlord’s Offer except as provided in Section 17.4 below. 

17.2 Letter of Intent. Within thirty (30) days after delivery by Landlord to Tenant of Landlord’s Offer, if Tenant
desires to purchase the Real Property in accordance with the terms of Landlord’s Offer, Landlord and Tenant shall endeavor in good faith to draft, execute and deliver to each other a mutually satisfactory letter (“Letter of Intent”)
setting forth Tenant’s intention to purchase the Real Property. 

  
 50 

  
 17.3 Termination of
Right. If (i) the Letter of Intent is not drafted, executed and delivered as aforesaid, or (ii) the Letter of Intent is drafted, executed and delivered as aforesaid, but a contract of sale for the Real Property which is mutually
satisfactory to both Landlord and Tenant, is not executed and delivered (together with any payment required to be made thereunder by Tenant to Landlord) to each other within thirty (30) days after execution and delivery of the Letter of Intent,
or (iii) Tenant advises Landlord that it does not desire to purchase the Real Property, then Landlord shall be free to sell the Real Property to any other individual or entity, except as provided herein. 

17.4 Offer to Tenant. If, after the occurrence of any of the events set forth in clauses (i), (ii), or (iii) of
Section 17.3 above, Landlord proposes to sell the Real Property for a purchase price less than ninety-five percent (95%) of the purchase price set forth in Landlord’s Offer, then, subject to the provisions of Section 17.5 hereof,
Landlord shall deliver to Tenant any letter of intent or contract proposed to be entered into by Landlord with any such prospective purchaser, and Tenant shall thereupon have ten (10) days in which to agree to purchase the Real Property on the
terms and conditions of any such letter of intent or contract and consummate the sale of the Real Property in accordance with the terms thereof. 
 17.5 Failure to Sell. If Landlord fails to sell the Real Property within nine (9) months after having delivered Landlord’s Offer to Tenants then, prior to any sale thereof, Landlord shall
once again offer the Real Property to Tenant and the aforesaid procedure shall be repeated. 
 17.6 Landlord’s
Successors. Upon any sale of the Real Property as provided herein, the rights of Tenant under this Article shall continue as restricted herein, so that any Landlord hereunder shall be bound hereby; provided, however, that Tenant’s
rights under this Section 17 shall automatically terminate upon any trustee’s sale, judicial foreclosure, or deed in lieu thereof. 
 XVIII 
 MISCELLANEOUS PROVISIONS 

18.1 Severability. A determination by a court of competent jurisdiction that any provision of this Lease or any part thereof is
illegal or unenforceable shall not cancel or invalidate the remainder of such provision or this Lease, which shall remain in full force and effect. 

  
 51 

  
 18.2
Interpretation. The captions of the Articles or Sections of this Lease are to assist the parties in reading this Lease and are not a part of the terms or provisions of this Lease, whenever required by the context of this Lease, the singular
shall include the plural and the plural shall include the singular. The masculine, feminine and neuter genders shall each include the other. In any provision relating to the conduct, acts or omissions of Tenant, the terms “Tenant” shall
include Tenant’s agents, employees, contractors, invitees, successors or others using the Premises with Tenant’s expressed or implied permission. 
 18.3 Incorporation of Prior Leases; Modifications. This Lease is the only lease between the parties pertaining to the lease of the Premises and no other Leases are effective. All amendments to this
Lease shall be in writing and signed by all parties. Any other attempted amendment shall be void. 
 18.4 Notices. All
notices required or permitted under this Lease shall be in writing and shall be personally delivered or sent by certified mail, return receipt requested, postage prepaid. Notices to Tenant shall be delivered to the address specified in
Section 1.3 above, except that upon Tenant’s caking possession of the Premises, the Premises shall be Tenant’s address for notice purposes. Notices to Landlord shall be delivered to the address specified in Section 1.2 above. All
notices shall be effective upon personal delivery or three (3) days after deposit in the U.S. Mail, certified. Either party may change its notice address upon written notice to the other party. 

18.5 Waivers. All waivers must be in writing and signed by the waiving party. Landlord’s failure to enforce any provision of
this Lease or its acceptance of rent shall not be a waiver and shall not prevent Landlord from enforcing that provision or any ether provision of this Lease in the future. No statement on a payment check frown Tenant or in a letter accompanying a
payment check shall be binding on Landlord. Landlord may, with or without notice to Tenant, negotiate such check without being bound to the conditions of such statement. 
 18.6 No Recordation. Tenant shall not record this Lease without prior written consent from Landlord. However, Tenant may require that a memorandum of this Lease in the form of Exhibit
“G” be executed by both parties and recorded. 
 18.7 Binding Effect; Choice of Law. This Lease binds any
party who legally acquires any rights or interest in this Lease from Landlord or Tenant. However, Landlord shall have no obligation to Tenant’s successor unless the rights or interests of Tenant’s successor are acquired in accordance with
the terms of this Lease. The laws of the state of California shall govern this Lease. 

  
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 18.8 Corporation
Authority; Partnership Authority. If Tenant is a corporation, each, person signing this Lease en behalf of Tenant represents and warrants that he has full authority to do so and that this Lease binds the corporation. Upon execution of this
Lease, Tenant shall deliver to Landlord a certified copy of a resolution of Tenant’s Board of Directors authorizing the execution of this Lease or other evidence of such authority reasonably acceptable to Landlord. If Tenant is a partnership,
each person signing this Lease for Tenant represents and warrants that he is a general partner of the partnership, that he has full authority to sign for the partnership and that this Lease binds the partnership and all general partners of the
partnership. Tenant shall give written notice to Landlord of any general partner’s withdrawal or addition. Within five (5) days after this Lease is signed, Tenant shall deliver to Landlord a copy of Tenant’s recorded statement of
partnership or certificate of limited partnership. 
 18.9 Force Majeure. If Landlord cannot perform any of its
obligations due to events beyond Landlord’s control, the time provided for performing such obligations shall be extended by a period of time equal to the duration of such events. If Tenant cannot perform any of its non-monetary obligations due
to events beyond Tenant’s control, the time provided for performing such obligations shall be extended for a period of time equal to the duration of such events, provided that Tenant gives notice of the occurrence of such events within ten
(10) days of the date upon which Tenant has or reasonably should have had notice of such an event. Events beyond a party’s control include, but are not limited to, acts of God, war, civil commotion, labor disputes, strikes, fire, flood or
other casualty, shortages of labor or material, government regulation or restriction and weather conditions. 
 18.10 No
Option. The submission of this Lease for examination does not constitute a reservation, of or option to lease the Premises and this Lease becomes effective only upon execution and delivery thereof by Landlord and Tenant. 

18.11 Standards of Measurement. Any reference in this Lease to “rentable square feet” shall mean and refer to the
standards for measurement promulgated by the Building Office Management Association (“BOMA”). 
 18.12 Time of the
Essence. Time is of the essence in each and every term and provision in this Lease. 
 [SIGNATURES ON THE FOLLOWING PAGE]

  
 53 

  
 [SIGNATURE PAGE TO

 TORREY PINES SCIENCE CENTER 
 Industrial Real Estate Lease] 
  

					
	 LANDLORD:

	
	 LANKFORD & ASSOCIATES, INC. a
 Colorado corporation

		
	By:	 	 /s/ (illegible)

		 	Its:	 	 (illegible) /CEO

 Signed on Dec. 8, 1994 
 at San Diego. 

 

					
	TENANT:
	
	DEPOTECH CORPORATION, a California corporation
		
	By:	 	 /s/ (illegible)

		 	Its	 	 Pres/CEO

 Signed on Dec. 8, 1994 
 at San Diego. 

  
 54 

 

 

  
 55 

  
 EXHIBIT
“B” 
 Confirmation of Gross Area 
 This Confirmation of Gross Area is made by and between the Landlord and Tenant named below, who agree as follows: 
 1. Landlord and Tenant entered into an Industrial Real Estate Lease dated December             , 1994, in which Tenant agreed to lease
from Landlord and Landlord agreed to lease to Tenant the premises described in Section 1.5 of the Lease (the “Premises”). 
 2. Pursuant to Section 1.5.1 of the Lease, the parties hereby confirm that the Gross Area of Phase I/Phase II of the Premises is
            square feet. 
 3. Tenant confirms that it has
accepted possession of Phase I/Phase II of the Premises and the Lease is in full force and effect. 
  

					
	 LANDLORD:

	
	 LANKFORD & ASSOCIATES, INC. a
 Colorado corporation

		
	By:	 	  

		 	Its:	 	  

 Signed on             , 199     
 at                     . 

 

					
	TENANT:
	
	DEPOTECH CORPORATION, a California corporation
		
	By:	 	  

		 	Its:	 	  

 Signed on             , 199     
 at                     . 

  
 56 

  
 EXHIBIT
“C” 
 WORK LETTERS AGREEMENT 
 Simultaneously with execution of this Work Letter Agreement (“Agreement”), the parties hereto, LANKFORD & ASSOCIATES, INC., a Colorado corporation, as “Landlord,” and DEPOTECH
CORPORATION, a California corporation, as “Tenant,” are entering into that certain Torrey Pines Science Center Industrial Real Estate Lease (hereinafter called the “Lease”) to which this Agreement is attached. The purpose of this
Agreement is to delineate the responsibilities of the Landlord and Tenant with respect to the design and construction of the Premises. Except as otherwise provided herein, the capitalized terms used in this Agreement shall have the same meaning as
given to them in the Lease. 
 1. Construction of Building Shell and Other Improvements by Landlord. Landlord, at Landlord’s sole
cost and expense, and not as part of the Tenant Improvement Allowance (as defined below) , shall: 
 1.1 Construct or cause to
be constructed on the Real Property, a building shell consisting of a slab, exterior walls, roof and plumbing rough-ins (“Building Shell”). The Building Shell shall be precast concrete panels on a structural steel frame designed for one
hundred (100) pounds per square foot floor live load; 
 1.2 Construct or cause to be constructed on the Real Property,
service pads exterior to the Building Shell to be utilized for cryogenic tanks, DI water systems, trash enclosures, Hazardous Materials staging, HVAC equipment enclosures and other related services (collectively, “Peripheral Pads”);

 1.3 Construct or cause to be constructed within the Building Shell the following improvements; (i) a fire sprinkler
system and loop adaptable for the ceiling drops, (ii) a passenger/freight elevator, and (iii) two (2) dock high loading areas offering convenient access for truck delivery; 

1.4 Construct or cause to be constructed all improvements and perform all work on and off the Real Property required under the
Declaration; 
 1.5 Construct or cause to be constructed a one hundred three (103) car parking structure and a surface
parking lot consisting of one hundred thirty-two (132) parking spaces (collectively, “Parking Structures”); 

  
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 1.6 Provide and
install all landscaping within the Real Property; 
 1.7 Provide and install (a) stubouts for natural gas and plumbing to
within five (5) feet of the exterior of the Building at final connection points reasonably agreed to by Landlord and Tenant, and (b) telephone conduits to the central telephone room in the interior of the Building; and 

1.8 Provide and install electrical capacity to the Premises of up to four thousand (4,000) amps, and install and connect said
electrical capacity to main service disconnect in-house switch gear, including four hundred eighty (480) volt three (3) phase electrical service, in Tenant’s central electrical room in the location shown on the Plans (as hereinafter
defined). 
 The work described in Sections 1.2 - 1.8 above is hereinafter collectively referred to as “Landlord’s
Work”. 
 2. Shell Plans. Landlord shall contract with an architect reasonably approved by Tenant (“Landlord’s
Architect”) for preparation of the plans and specifications for the construction of the Building Shell and Landlord’s Work. As noted in Section 1.5 of the Lease, Landlord and Tenant have mutually approved the preliminary plans and
specifications for the construction of the Building Shell and Landlord’s Work prepared by Davis Architects, dated November 21, 1994, which are referred to herein as the Preliminary Shell Plans._Landlord shall deliver to Tenant the final
detailed working drawings and specifications (the “Final Drawings”) for Landlord’s Work and the Building Shell by December 21, 1994. On or before December 27, 1994, Tenant shall deliver notice of approval or reasonable
disapproval of the Final Drawings to Landlord. If Tenant disapproves such Final Drawings, Tenant shall specify the reasons for its disapproval. Thereafter, the parties shall meet on or before December 30, 1994, in an effort to reach an
agreement on the Final Drawings. The Preliminary Shell Plans and Final Drawings are hereinafter referred to as the “Shell Plans.” 

3. Tenant Improvements. All work to be performed pursuant to the Final Plans described in Section 5 below shall be referred to as the
“Tenant Improvements.” The Tenant Improvements shall be completed by Landlord, at Landlord’s sole cost and expense, subject to Tenants obligation to pay all amounts in excess of the Tenant Improvements Allowance described in
Section 8 below in accordance with the terms and conditions of this Agreement and the Tenant’s Plans described below. 
 4. Tenant
Preliminary Plans. Tenant shall contract with an architect reasonably approved by Landlord (“Tenant’s Architect”) for preparation of the space planning, architectural and engineering drawings, and plans and specifications for the
construction of 

  
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 the Tenant Improvements. Tenant shall also contract with a “process engineer” reasonably approved
by Landlord (“Engineer”) for preparation of the plans for Tenant’s manufacturing component of the Tenant Improvements. Tenant shall cause Tenant’s Architect to develop general space plans showing Tenant’s proposed layout for
the Building. As noted in Section 1.5 of the Lease, all of the plans, drawings and specifications referenced in the foregoing sentence have been mutually approved by Landlord and Tenant as evidenced in chose plans prepared by Ehrlich Rominger
dated November 23, 1994, and are referred to as the “Preliminary Plans”. 
 5. Final Plans. Tenant shall submit to
Landlord for its review and approval complete detailed marking drawings and specifications for the Tenant Improvements prepared or caused to be prepared by Tenant’s Architect and/or Engineer by January 25, 1995, for the Phase I Premises
and by May 15, 1995 for the Phase II Premises, which shall reflect partitions, doors, electrical and telephone outlets, light fixture locations, wall finishes, cabinet and other carpentry work, floor and ceiling coverings and any ether
requirements of Tenant with respect to the interior improvements to the Building, and shall include a list of additions to, or alterations of the Building which Tenant wishes to remove upon the termination of the Lease (the “Final Plans”).
The Final Plans shall be designated as “Final Plans” and initialed by Tenant. The Preliminary Plans and Final Plans are sometimes collectively referred to herein as “Tenant’s Plans.” Landlord acknowledges that Tenant shall
phase the construction of the Tenant Improvements (in two (2) phases only, one for the Phase I Premises and one for the Phase II Premises), and that Tenant shall submit Preliminary Plans and Final Plans for each phase, Landlord shall deliver to
Tenant written notice either approving or reasonably disapproving the Final Plans on or before January 30, 1995 for the Phase I Premises and by May 19, 1995 for the Phase II Premises. If Landlord disapproves of such Final Plans, Landlord
shall specify the reasons for its disapproval. Thereafter, the parties shall meet on or before February 2, 1995 for the Phase I Premises and on or before May 24, 1995 for the Phase II Premises in an effort to reach an agreement on the
Final Plans. 
 6. Project Schedule. Schedule 1 attached hereto and made a part hereof is a schedule of certain dates and time frames
relating to construction and development of the Premises, including the dates set forth in this Work Letter for Landlord’s and Tenant’s respective obligations concerning construction of the Premises (“the “Project
Schedule”). The purpose of the Project Schedule is to evidence the parties intention to be obligated to pursue and complete construction of the Premises in accordance with said schedule. 

  
 59 

  

	7.	Landlord’s Construction. 

 7.1 Landlord shall furnish all labor and materials to construct and complete in a good, expeditious and workmanlike manner to the reasonable satisfaction and approval of Tenant the work described in the
Shell Plans (“Landlord’s Improvements”) and in Tenant’s Plans (“Tenant Improvements”) (Landlord’s Improvements and Tenant Improvements are referred to herein collectively as the “Improvements”). Landlord
will enter into a cost plus/guaranteed maximum price contract consistent with the parties determination of Final Cost in accordance with Section 8.1 below, with a general contractor reasonably approved by Tenant (the “Contractor”) as
the general contractor for the construction, of the Improvements. Tenant hereby consents to Hensel Phelps Construction Company as the Contractor. Following execution of the construction contract with the Contractor, Landlord shall cause the
Contractor to file with the appropriate departments of all governmental authorities with jurisdiction over the Real Property, the Shell Plans and Tenant’s Plans (collectively, the “Plans”) and to submit such other information and
materials as may be required by such governmental authorities for their approval of the Improvements. Upon, receipt of all necessary governmental approvals for the construction of Improvements, Landlord shall cause the Contractor to commence and
diligently proceed with the construction of the Improvements in accordance with the Plans and all applicable governmental laws, regulations and requirements. Landlord and Tenant will meet on at least a weekly basis to discuss the progress of the
Improvements. Tenant’s Architect shall have access to the Premises during construction of Improvements at all times during normal business hours for purposes of inspection. Landlord also agrees that Tenant shall be granted periodic access for
the purpose of inspecting construction progress. In connection with such periodic access, Tenant agrees that, to the extent permitted by law, Landlord and its principals shall not be liable in any way for injury or death to any person or persons or
loss or damage to property located in the Premises. Tenant expressly agrees that none of its agents, contractors, workmen, mechanics, suppliers or invitees shall enter the Premises prior to the Commencement Date unless and until each of them shall
furnish to Landlord reasonably satisfactory evidence of insurance coverage, financial responsibility and other appropriate information. 
 7.2 Landlord shall use its best efforts to substantially complete the Improvements as expeditiously as possible. The parties agree that the Building Shell, Landlord’s Work and the Tenant Improvements
for the Phase I Premises shall be substantially complete by August 1, 1995, and the Tenant Improvements for the Phase II Premises shall be substantially complete by March 1, 1996. 

7.3 If at any time prior to issuance of a certificate of occupancy or similar entitlement for use of the Premises, Tenant shall determine
that the Improvements are not being constructed substantially in accordance with the Plans, Tenant may deliver 

  
 60 

 written notice to Landlord specifying in detail the particular deficiency, omission, or other manner in
which construction has not been substantially completed in accordance with the Plans. Upon receipt of any such notice, Landlord shall notify Tenant if it disagrees with Tenant’s determination and if so the parties shall meet within two
(2) days in a good faith effort to resolve the disagreement. If Landlord and Tenant cannot come to an agreement the dispute will be determined by arbitration, conducted under the rules of the American Arbitration Association. If Landlord does
not disagree with Tenant or the above meeting results in resolution of the disagreement, Landlord shall take all steps necessary at Landlord’s sole cost and expense to correct any deficiencies, omissions or defects. 

7.4 Upon substantial completion of the Improvements (or the two phases of Tenant Improvements thereof), Tenant shall conduct a “walk
through” with Landlord in order to ascertain if such Improvements comply with the Plans and this Agreement. If Tenant reasonably determines that the Improvements do not comply with the Plans and this Agreement, then a “punch list”
will be prepared by Tenant indicating such deviations, and Landlord shall correct at its sole cost those items noted on the punch list which are not in compliance with the Plans and this Agreement. Landlord shall complete (“final
completion” or finally complete) the finishing details of construction and the punch list items for the Improvements according to the Plans and this Agreement within thirty (30) days after substantial completion of Landlord’s
Improvements and the Tenant Improvements for Phase I, and within forty-five (45) days after substantial completion of the Phase II Tenant Improvements. If Tenant and Landlord cannot agree upon whether or not the items of the punch list reflect
compliance or noncompliance with the Plans and this Agreement; then the compliance or noncompliance of the Improvements shall be determined by a neutral arbitrator who shall be an architect in accordance with the Commercial Rules of the American
Arbitration Association. 
 7.5 If Landlord shall be delayed in substantially completing the Improvements, and such delay shall
be caused by, or result from any of the following (“Tenant’s Delays”); 
  

	 	1.	any Tenant requested change to the approved Plans to the extent any delay is not caused by Landlord’s failure to act upon or process any such request in a
reasonably diligent manner. Landlord’s failure to adhere to applicable law in existence at the time of entering into this Lease or Landlord’s defective work; 

 

	 	2.	any errors or omissions in the Tenant’s Plans; 

  
 61 

  

	 	3.	Tenant’s failure to adhere to the dates for delivery, response or other actions as set forth in this Work Letter; and 

 

	 	4.	Tenant’s failure to provide in a timely fashion the long-lead items integral to Landlord’s performance of the construction contemplated by Tenant’s
Plans, for which Tenant bears responsibility for ordering and/or supplying the same, including, for example, Tenant’s equipment that is being installed by Landlord, 

 then the Commencement Date shall be deemed to be the date upon which the Commencement Date would have occurred but for such Tenant’s Delay, and the dates for substantial completion of the two phases
of Tenant Improvements set forth in Section 7.2 hereof, shall be extended one day for each day of Delay caused by Tenant’s Delays. The parties hereby agree that the foregoing adjustments as to the Commencement Date and the dates for
substantial completion shall only be made to the extent that any of the foregoing Tenant’s Delays shall actually delay completion of the Premises in accordance with, the Project Schedule on a net basis. That is, for example, if an error in the
Tenant’s Plans does not delay Landlord’s progress, or if such error does delay progress but such delay is recouped by earlier completion on another aspect of the Project, then the adjustments to the Commencement Date and the dates for
substantial completion shall be unnecessary. If the parties are unable to agree on whether or not the Tenant’s Delay resulted in an actual delay of the anticipated Commencement Date, then the matter shall be resolved by neutral arbitrator in
accordance with Section 7.4 above. 
 7.6 Landlord covenants to comply with all terms of any financing obtained to pay for
the Landlord’s Improvements (provided that Tenant performs all obligations hereunder necessary for Landlord to comply with such financing) and to service all debt associated therewith. 
 8. Landlord’s Contribution to the Tenant Improvements Costs. 
 8.1
Tenant Improvement Allowance. Landlord and Tenant reasonably anticipate that the total cost of the Tenant Improvements will not exceed Nine Million One Hundred Thousand and No/100 Dollars ($9,100,000). The parties acknowledge that such figure
is an estimate only. Within ten (10) business days after the parties’ agreement as to the form of the drawings, plans and specifications, which shall constitute the Final Plans, Landlord shall prepare an analysis in its sole judgment of
the cost of construction of the Tenant Improvements according to the Final Plans, including payment of a fee to the Contractor (the “Final Cost”). Within three (3) business days after receipt of the statement of Final Cost, Tenant

  
 62 

 shall deliver to Landlord written notice of approval or disapproval of the same; however, if Tenant requires
additional information regarding the Final Cost, Landlord shall promptly supply same and Tenant shall have a reasonable additional time period, not to exceed an additional two (2) business days to either approve or disapprove the Final Cost. If
Tenant disapproves such Final Cost, Tenant shall specify the reasons for its disapproval. Thereafter, the parties shall meet on or before two (2) business days after Tenant’s notice of disapproval, in an effort to reach an agreement on the
Final Cost. If the parties are unable to agree on the Final Cost, then Landlord’s sole obligation shall be to provide the Landlord’s Improvements and the Tenant Improvement Allowance specified below. Landlord shall provide Tenant with a
sum equal to EIGHTY-NINE AND 64/100 DOLLARS ($89.64) per gross square foot of the Building, but not to exceed SEVEN MILLION THREE HUNDRED EIGHTY-FIVE THOUSAND TWO HUNDRED TWENTY-FIVE AND NO/100 DOLLARS ($7,385,225) for the Tenant Improvements
(“Tenant Improvement Allowance”). The Tenant Improvement Allowance shall be used by Tenant to pay all Tenant Improvement costs including, but not limited to, fees payable to the the Contractor (as defined below), and all costs and expenses
incurred in planning, preparing, constructing and installing the Tenant Improvements, including permits, fees, utility meters, and fees and costs paid to the Tenant’s Architect and Engineer (collectively, “Tenant Improvement Costs”).
Tenant shall pay any excess Tenant Improvement Costs over the Tenant Improvement Allowance (“Tenant’s Share”), as follows: eighty-five percent (85%) of Tenant’s Share shall be payable on or before January 1, 1996, and
the remaining fifteen percent (15%) upon completion of the punch-list items for the Phase II Premises. 
 8.2 Tenant shall
provide Landlord, on January 15, 1995, and on or before the first day of each, month thereafter, commencing February 1, 1995, and continuing until the later of (i) January 1, 1996, or (ii) that date on which the first 85% of
Tenant’s Share has been paid as provided in Section 8.1 above, documentation (the “Cash Evidence”) reasonably satisfactory to Landlord evidencing Tenant’s cash, (meaning cash on deposit at its depository institution) of not
less than Five Million and No/100 Dollars ($5,000,000) (the “Cash Threshhold”) . Should Tenant’s Cash Evidence for any one month indicate a value less than the Cash Threshhold, then Tenant shall, within three (3) business days
following written demand therefore by Landlord, deposit with Landlord, at Tenant’s sole cost and expense, an irrevocable, unconditional letter of credit issued by an institution reasonably satisfactory to landlord, in favor of Landlord (the
“Letter of Credit”) in the amount of One Million and No/100 Dollars ($1,000,000), and valid for a period of one (1) year, but having an automatic renewal. The form of sight draft to be utilized by Landlord in connection with the
Letter of Credit shall be subject to the approval of Landlord, which shall not be unreasonably withheld. Upon Tenant’s failure to deliver all or any 

  
 63 

 portion of Tenant’s Share as and when provided in Section 8.1 above, Landlord shall be entitled to
unconditionally draw upon the Letter of Credit up to the full stated amount thereof and apply the proceeds of such draw to the obligations for Tenant’s Share provided in Section 8.1 above, and the remainder, if any, to Landlord’s
actual out of pocket costs and expenses and any ether damages or penalties incurred as a result of Tenant’s failure to so pay Tenant’s Share. If at any time following delivery of the Letter of Credit Tenant’s monthly Cash Evidence
evidences an amount equal to or greater than the Cash Threshhold, then Tenant shall be entitled to request, by written notice to Landlord, the surrender of the Letter of Credit; provided, however, that any such surrender shall not waive,
diminish or abrogate Landlord’s right to require delivery of the Letter of Credit at any future time at which the Cash Evidence shall again evidence less than the Cash Threshhold. 
 9. Changes or Additions to the Plans. 
 9.1 Any changes to the Plans
desired by Tenant subsequent to the approval of the Plans by both parties shall be requested of Landlord in writing by Tenant. Provided such changes are generally harmonious with the Plans and are in conformance with governmental regulations and
requirements, Landlord agrees to use commercially reasonable efforts to incorporate plan changes requested in writing by Tenant and to notify Tenant immediately of any cost increase or potential delay caused by such changes. Tenant shall be
responsible for any increase in cost due to Tenant’s requested changes. If the proposed changes will increase the cost of the Improvements, Landlord shall notify Tenant of any such increase and Tenant may choose to cancel its requested changes.
Any delay in substantial completion of the Improvements resulting from material changes requested by Tenant shall, to the extent such delay is not caused by Landlord’s failure to act upon or process any such request in a reasonably diligent
manner, automatically extend on a per day basis the completion and delivery deadline described in Section 7.2 hereof, and the Commencement Date shall remain as that date which would otherwise have been the Commencement Date but for said change
in the Plans. All disputes as to the effect of any such changes shall be resolved by arbitration in accordance with Sections 7.4 and 7.5 above. 
 9.2 Landlord shall notify Tenant in writing of any material modifications to the Plans and the Improvements required by any governmental department with the authority to approve the Plans and such
required modifications. In addition, Landlord shall inform Tenant of any changes to the Plans that it requests following the approval of the Plans in accordance with Section 2 hereof. Tenant shall have the right to approve any changes to the
Plans requested by Landlord after approval of the Plans. If any changes are required by either the governmental department or Landlord, the 

  
 64 

 cost of such change or changes shall be paid by Landlord unless the changes are required due to laws that
went into effect after approval of the Plans in which case the cost thereof shall be paid in accordance with Section 8.1 above. The foregoing notwithstanding, the parties acknowledge and agree that during the course of construction of a
commercial project such as the Premises, minor changes to the Plans are made on a routine basis, and so long as such minor changes do not materially or detrimentally alter the Plans as approved by Tenant, it shall be unnecessary for Landlord to
obtain Tenant’s approval before making and implementing such changes. 
 9.3 If either during or after construction of the
Improvements, changes are required to be made to the Improvements either to bring them into compliance which code requirements or because all necessary permits were not properly obtained, upon notice from the appropriate governing authority.
Landlord shall, at its sole cost and expense, make all such required changes and complete all actions necessary to satisfy the requirements of the governing authority unless the changes are required due to laws that want into effect after the
approval of the Plans, in which case the cost thereof shall be paid in accordance with Section 8.1 above. 
 9.4 Whenever
possible, disputed issues shall be resolved by prompt communication between the representatives of Landlord and Tenant who are directly involved in the disputes. No materials may be substituted by Landlord in the Improvements without the prior
written approval of Tenant. Tenant’s employees shall have the right to participate in all meetings regarding the construction of the Improvements. 
 10. Failure to Complete Landlord’s Improvements. If Landlord fails, within thirty (30) days following written notice from Tenant, to comply with Landlord’s obligation to complete the
Improvements, including without limitation, correction of all deficiencies, emissions and defects, or to fund the Tenant Improvement Allowance, Tenant shall be entitled to complete the Improvements, and Rent shall be abated in an amount equal to the
amount that Tenant is required to pay in order to complete and pay for the Improvements and to fund the Tenant Improvement Allowance. 
 11.
Substantial Completion. 
 11.1 As used in the Lease and this Agreement, the terms “substantial completion” or
“substantially complete” (or any other variant of such terms) with respect to the Improvements shall mean that (i) the party responsible for construction has procured a temporary or final certificate of occupancy for such work, and
(ii) such work has performed substantially in accordance with the provisions of any agreement, including this Agreement, entered into 

  
 65 

 by Landlord and Tenant with respect to such work, except for finishing details of construction, decoration,
mechanical and other adjustments and other items of the type commonly found on an architectural punch list, none of which materially interfere with Tenant’s use or occupancy of the Premises for normal business operations. Evidence of
substantial completion of the Improvements shall be the delivery to Landlord and Tenant of counterpart copies of certificates to that effect signed by the Contractor and Tenant’s Architect. Upon substantial completion of the Landlord’s
Improvements, Landlord shall obtain a certificate, as provided in Section 5.12 of the Declaration, stating that all Landlord’s Improvements comply with the provisions of the Declaration, Landlord shall deliver such certificate to Tenant
within two (2) days of receipt of same and Landlord shall record such certificate in the Office of the County Recorder of San Diego County. 

  
 66 

  
 This Agreement shall
be effective as of the Effective Date of Lease set forth in Section 1.1 of the Lease. 
  

					
	 LANDLORD:

	
	 LANKFORD & ASSOCIATES, INC., a

Colorado corporation

		
	By	 	  

		 	Its:	 	  

 Signed on             , 1994 
  

					
	 TENANT:

	
	 DEPOTECH CORPORATION, a California

corporation

		
	By:	 	  

		 	Its:	 	  

 Signed on             , 1994 

  
 67 

  
 SCHEDULE I TO

 WORK LETTER AGREEMENT 
 [to be replaced with project schedule] 
  

					
	 ACTION
	  	 DUE DATE
	  	 RESPONSIBLE PARTY

			
	 A. Final Shell Drawings Delivery Date
	  	12/21/94	  	Landlord
			
	 B. Final Shell Drawings Review
	  	12/27/94	  	Tenant
			
	 C. Final Shell Drawings Revision Date
	  	12/30/94	  	Landlord & Tenant
			
	 D. Phase I Tenant Improvements Final Plans Delivery Date
	  	1/25/95	  	Tenant
			
	 E. Phase I Tenant Improvements Final Plan – Review/Comments
	  	1/30/95	  	Landlord
			
	 F. Phase I Tenant Improvements Final Plan Revision Date
	  	2/2/95	  	Landlord & Tenant
			
	 G. Phase II Tenant Improvements Final Plans Delivery Date
	  	5/15/95	  	Tenant
			
	 H. Phase II Tenant Improvements Final Plan – Review/Comments
	  	5/19/95	  	Landlord
			
	 I. Phase II Tenant Improvements Final Plan Revision Date
	  	5/24/95	  	Landlord & Tenant

  
 68 

  
 EXHIBIT
“D” 
 Plat of Premises Showing Phase I and Phase II 

[TO BE INSERTED] 

  
 69 

  
 EXHIBIT
“E” 
 When Recorded, Mail to: 
 Amy L. Corton, Esq. 
 Alvarado, Smith, Wolff & Sanchez 

350 West Ash Street, Suite 701 
 San Diego,
California 92101 
 MEMORANDUM OF LEASE 
 This Memorandum of Lease (“Memorandum”) is made as of December             , 1994, between LANKFORD & ASSOCIATES,
INC., a Colorado corporation (“Landlord”), and DEPOTECH CORPORATION, a California corporation (“Tenant”). 

1. Lease. Pursuant to that certain Torrey Pines Science Center Industrial Real Estate Lease, dated as of December
            , 1994 (“Lease”), Landlord has leased to Tenant and Tenant has leased front Landlord, those certain leased premises which are described on Exhibit A,
attached hereto and incorporated herein by this reference (“Leased Premises”). The provisions and conditions of the Lease are incorporated into this Memorandum by reference and made a part hereof as though fully set forth herein, and
unless expressly defined herein, all capitalized terms shall have the meanings ascribed to them in the Lease. 
 2. Term.
The Lease commences on the Commencement Date as defined is the Lease and terminates twenty (20) years thereafter, or approximately July 31, 2015. 
 3. Option to Extend. Tenant, at its option, may extend the Lease Term for two (2) separate, additional successive terms of five (5) years each. 

4. Right of First Refusal to Purchase Real Property. Tenant has the right of first refusal to purchase the Real Property.

 5. Right of First Offer to Purchase Real Property. Tenant has the right of first offer to purchase the Real Property.

 6. Option to Lease. Tenant has the option to lease space in improvements to be constructed on land adjacent to the
Real Property and designated as the Option Property on Exhibit A. 
 7. Recordation. This Memorandum is prepared
for the purpose of recordation only, and in no way modifies the provisions and conditions of the Lease. 
 [SIGNATURES OF THE
FOLLOWING PAGE] 

  
 70 

  
 [SIGNATURE PAGE TO
MEMORANDUM OF LEASE] 
  

					
	 LANDLORD:

	
	 LANKFORD & ASSOCIATES, INC., a

Colorado corporation_

		
	By:	 	  

		 	Name:	 	  

		 	Its:	 	  

	
	 TENANT:

	
	 DEPOTECH CORPORATION, a California

corporation

		
	By:	 	  

		 	Name:	 	  

		 	Its:	 	  

 

							
	STATE OF CALIFORNIA	 	)	  		  	
		 	)	  	            SS	  	
	
COUNTY OF                     

	 	)	  		  	

 On this              day of
            , 1994, before me the undersigned, a Notary Public in and for said State, personally appeared
                     personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument. 
  

					
	WITNESS MY HAND AND OFFICIAL SEAL.	  		 	
			
	  
	  		 	
	Notary Public in and for said County	  	(SEAL)	 	

  
 71 

  

									
	STATE OF CALIFORNIA	 	)	  		  		  	
		 	)	  		  	SS	  	
	COUNTY OF                     	 	)	  		  		  	

 On this              day of
            , 1994, before me the undersigned, a Notary Public in and for said State, personally appeared
                     personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument. 
  

							
	WITNESS MY HAND AND OFFICIAL SEAL.	  		  		  	
				
	  
	  		  		  	
	Notary Public in and for said County	  		  	(SEAL)	  	

  
 72 

 EXHIBIT “A” 

TO MEMORANDUM OF LEASE 
 LEGAL DESCRIPTION OF REAL PROPERTY 
 THAT CERTAIN REAL PROPERTY LOCATED IN THE CITY OF SAN
DIEGO, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, MORE PARTICULARLY DESCRIBED AS PARCEL 3 OF PARCEL MAP NO. 17448 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY ON NOVEMBER 17, 1994. 

LEGAL DESCRIPTION OF THE OPTION PROPERTY 
 THAT CERTAIN REAL PROPERTY LOCATED IN THE CITY OF SAN DIEGO, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, MORE PARTICULARLY DESCRIBED AS PARCELS 4 AND 5 OF PARCEL MAP NO. 17448 FILED IN THE OFFICE OF THE
COUNTY RECORDER OF SAN DIEGO COUNTY ON NOVEMBER 17, 1994. 

  
 73 

  
 EXHIBIT
“F” 
 When Recorded, Mail to: 
 Amy L. Corton, Esq. 
 Alvarado, Smith, Wolff & Sanchez 

350 West Ash Street, Suite 701 
 San Diego,
California 92101 
 MEMORANDUM OF LEASE OPTION 
 This Memorandum of Lease Option (“Memorandum”) is made as of December             , 1994, between LANKFORD &
ASSOCIATES, INC, a Colorado corporation (“Lankford”) and DEPOTECH CORPORATION, a California corporation (“DepoTech”). 
 1. Grant of Option. Pursuant to Article XV of that certain Torrey Pines Science Center Industrial Real Estate Lease dated December
            , 1994 (“Lease”), Lankford has granted to DepoTech the right to lease (“Option”) the real property located in the City of San Diego, County of San
Diego, State of California, more particularly described on Exhibit “A” attached hereto and made a part hereof. 
 2.
Option Term. DepoTech has the right to exercise the Option at any time prior to October 15, 1997, on the terms and conditions set forth in the Lease. 
 3. Recordation. This Memorandum is prepared for the purpose of recordation only, and in no way modifies the provisions and conditions of the Lease. This Memorandum is not a complete summary of the
terms and conditions of the Lease and it is subject to, and shall not be used to interpret or modify, the Lease. 

[SIGNATURES ON THE FOLLOWING PAGE] 

  
 74 

  
 SIGNATURE PAGE TO

 MEMORANDUM OF LEASE OPTION 
  

					
	LANKFORD & ASSOCIATES, a Colorado corporation
		
	By:	 	  

		 	Name:	 	  

		 	Its:	 	  

	
	 DEPOTECH CORPORATION,
 a California corporation

		
	By:	 	  

		 	Name:	 	  

		 	Its:	 	  

 

									
	STATE OF CALIFORNIA	 	)	  		  		  	
		 	)	  		  	SS	  	
	COUNTY OF                     	 	)	  		  		  	

 On this              day of
            , 1994, before me the undersigned, a Notary Public in and for said State, personally appeared
                     personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument. 
  

					
	WITNESS MY HAND AND OFFICIAL SEAL.	  		 	
			
	  
	  		 	
	Notary Public in and for said County	  	(SEAL)	 	

 [NOTARY ACKNOWLEDGEMENTS CONTINUED ON FOLLOWING PAGE] 

  
 75 

  
 NOTARY PAGE TO

 MEMORANDUM OF LEASE OPTION 
  

									
	STATE OF CALIFORNIA	 	)	  		  		  	
		 	)	  		  	SS	  	
	COUNTY OF                     	 	)	  		  		  	

 On this              day of
            , 1994, before me the undersigned, a Notary Public in and for said State, personally appeared
                     personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument. 
  

					
	WITNESS MY HAND AND OFFICIAL SEAL.	  		 	
			
	  
	  		 	
	Notary Public in and for said County	  	(SEAL)	 	

  
 76 

  
 EXHIBIT “A”

 TO 

MEMORANDUM OF LEASE OPTION 
 LEGAL DESCRIPTION OF REAL PROPERTY 
 LOTS 18 AND 20 OF MAP NO. 12485 FILED IN THE OFFICE OF
THE COUNTY RECORDER OF SAN DIEGO COUNTY ON JULY 23, 1991. 

  
 77 

 EXHIBIT “G” 

 

							
	 WHEN RECORDED, MAIL TO:
	  	 	)	  	  	
		  	 	)	  	  	
	 Amy L. Corton, Esq.
	  	 	)	  	  	
	 Alvarado, Smith, Wolff & Sanchez
	  	 	)	  	  	
	 350 West Ash Street, Suite 701
	  	 	)	  	  	
	 San Diego, California 92101
	  	 	)	  	  	

 (Space Above this Line for Recorder’s Use) 

ASSIGNMENT OF OPTION AND CONSENT TO ASSIGNMENT 
 This Assignment of Option and Consent to Assignment: (“Assignment”) is made as of this              day of December, 1994, by
and among LANKFORD & ASSOCIATES, INC., a Colorado corporation (“Assignor”), DEPOTECH CORPORATION, a California corporation (“Assignee”), and CHEVRON LAND AND DEVELOPMENT COMPANY, a California corporation
(“Chevron”) with reference to the following facts: 
 11.2 Assignor currently has the option to purchase
(“Purchase Option”) the real property located in the City of San Diego, County of San Diego, State of California, more particularly described as Lots 18 and 20 of Subdivision Map No. 12485 filed in the Office of the County Recorder of
San Diego County on July 23, 1991 (“Option Property”) , from Chevron under the terms of that certain Option Agreement (“Option Agreement”) between Chevron, as optionor, and Assignor, as optionee dated
            , 1994. The Option Agreement expressly provides that Assignor may assign the Option Agreement to Assignee. 

11.3 Assignor and Assignee have entered into that certain Torrey Pines Science Center Industrial Real Estate Lease dated
            , 1994 (“Lease”) between Assignor, as landlord, and Assignee, as tenant. Under the terms of the Lease, Assignee is leasing from Assignor the real property
located in the City of San Diego, County of San Diego, State of California, more particularly described as Lot 19 of Subdivision Map No. 12485 filed in the Office of the County Recorder of San Diego County on July 23, 1991.

 11.4 Article XV of the Lease gives Assignee the option to lease from Assignor (“Lease Option”) up to eighty
thousand (80,000) square feet of rental space within the Option Property (“Option Premises”). 
 11.5 Assignee
would not have entered into the Lease if Assignor cound not exercise its rights under the Option Agreement, purchase the Option Property and grant the Lease Option to 

  
 78 

  
 Assignee. Because the ability of
Assignee to lease the Option Premises was a material inducement to Assignee in its decision to execute the Lease, and because Assignee must protect its right to occupy the Option Premises, Assignor has agreed to assign the Purchase Option and the
Option Agreement to Assignee in accordance with the terms and conditions of this Assignment. 
 NOW, THEREFORE, for and in
consideration of TEN AND NO/100 DOLLARS ($10.00) and other good and valuable consideration, including Assignee entering into the Lease, the receipt and sufficiency of which is hereby acknowledged, and to secure the obligations of Assignor to
Assignee under Article XV of the Lease, Assignor hereby transfers, assigns and sets over to Assignee all of Assignor’s right, title and interest in and to the Purchase Option and the Option Agreement. 

In connection with and as part of the foregoing assignment, Assignor hereby makes the following grants, covenants, agreements,
representations and warranties: 
 11.5.1 Assignee, shall have the right, power and authority to take any and all actions which
Assignee deems necessary or appropriate in connection with enforcing the Purchase Option and the Option Agreement. 
 11.5.2
Assignor shall have a revocable license to exercise the Purchase Option in accordance with the terms of the Option Agreement. Such license may be revoked by Assignee, without notice to Assignor, upon occurrence of the following events: 

11.5.2.1 A material default by Assignor under the Lease as provided in Section 11.3 of the Lease; or 

11.5.2.2 Any one of the following: 
  

					
		  	11.5.2.2.0.0.1	  	If Assignor makes a general assignment or general arrangement for the benefit of creditors;
			
		  	11.5.2.2.0.0.2	  	If a petition, for adjudication of bankruptcy or for reorganization or rearrangement is filed by or against Assignor and is not dismissed within thirty
(60) days;
			
		  	11.5.2.2.0.0.3	  	If a trustee or receiver is appointed to take possession of substantially all of Assignor’s assets and possession is not restored to Assignor within sixty (60) days;
or

  
 79 

					
			
		  	11.5.2.2.0.0.4	  	If substantially all of Assignor’s assets are subjected to attachment; execution, or other judicial seizure which is not discharged within sixty
(60) days.

 11.5.3 Unless and until such, license is so revoked, Assignor may exercise the Purchase Option
in accordance with the terms and conditions of the Option Agreement. Additionally, Assignor shall: 
 11.5.3.1 observe and
perform faithfully every obligation which Assignor is required to perform under the Option Agreement; 
 11.5.3.2 at its sole
cost and expense, enforce, or secure the performance of, every obligation to be performed by Chevron under the Option Agreement; 
 11.5.3.3 promptly give written notice to Assignee of any notice of default received by Assignor from Chevron; 
 11.5.3.4 Not further assign the Purchase Option or the Option Agreement; 

11.5.3.5 except with Assignee’s prior written consent, not cancel the Purchase Option or the Option Agreement; and 

11.5.3.6 except with Assignee’s prior written consent, not materially modify or amend, by sufferance or otherwise, the Purchase
Option or the Option Agreement. 
 11.5.4 Except for a wrongful revocation of the license as described in Paragraph 2 hereof,
Assignee shall not in any way be liable to Assignor or to Chevron for any act or omission done, or anything admitted to be done, in connection with the Purchase Option or the Option Agreement. 

11.5.5 This Assignment shall continue in full force and effect until the earlier to occur of i) the Option Notice (as defined in the
Lease) is delivered by Assignee to Assignor, ii) the Option Term (as defined in the Lease) terminated or iii) Assignee is in material default under the terms and conditions of the lease after the expiration of any applicable grace period. At such
time, this Assignment and the authority and powers herein granted by Assignor to Assignee shall cease and terminate. 

  
 80 

  
 11.5.6 Upon revocation
of Assignor’s license provided in Paragraph 2 hereof, Assignor hereby irrevocably constitutes and appoints Assignee its true and lawful attorney in fact, to undertake and execute any and all of the rights or powers described herein with the
same force and effect as if undertaken or executed by Assignor. 
 11.5.7 By execution of this Assignment, Chevron consents to
this Assignment and agrees that if this Assignment is not enforceable for any reason, including, without limitation, due to the filing of a petition under Title 11 United States Code Sections 101 et seq. (“Bankruptcy Code”) by or against
Assignor, and Assignor cannot exercise the Purchase Option for any reason, including, without limitation, due to the rejection of the Option Agreement under the Bankruptcy Code, Chevron shall grant to Assignee the Purchase Option on substantially
the same terms and conditions as contained in the Option Agreement. 
 11.5.8 If Assignee is prevented from exercising any of
its rights hereunder without first obtaining leave of the bankruptcy court, then Assignor will, within thirty (30) days of filing of a petition under the Bankruptcy Code, arrange for the filing of a motion, to assume or reject the Option
Agreement and this Assignment. Any costs, damages or expenses incurred by Assignee due to any post petition default(s) will be treated as administrative claims under the Bankruptcy Code. 

11.5.9 Assignor hereby agrees that in the event Assignor files, or there is filed against Assignor, a petition under the Bankruptcy Code,
Assignee shall thereupon immediately be entitled, and Assignor shall consent, to relief fro en any automatic stay imposed by Section 362 of the Bankruptcy Code. Assignor further agrees that Assignor shall, immediately following request by
Assignee, take all actions necessary to afford Assignee relief from any such automatic stay, including without limitation, the execution of such documents, and the filing of such motions,, pleadings, documents and other papers as Assignee may deem
necessary or appropriate to obtain such relief. Assignor hereby acknowledges that Assignee is relying upon the foregoing in agreeing to enter into the Lease. 
 11.5.10 All of the covenants, agreements and provisions of this Assignment by or for the benefit of the parties hereto shall bind and inure to the benefit of the successors and assigns of Assignor,
Assignee and Chevron. 
 11.5.11 This Assignment shall be governed by, and construed and enforced in accordance with, the laws
of the State of California. 

  
 81 

  
 IN WITNESS WHEREOF,
Assignor, Assignee and Chevron have caused this Assignment to be duly executed on the date first above written. 
  

					
	 LANKFORD & ASSOCIATES INC., a
 Colorado corporation

		
	By:	 	  

		 	Name:	 	  

		 	Its:	 	  

	
	 DEPOTECH CORPORATION,
 a California corporation

		
	By:	 	  

		 	Name:	 	  

		 	Its:	 	  

	
	 CHEVRON LAND AND DEVELOPMENT
 COMPANY, a California corporation

		
	By:	 	  

		 	Name:	 	  

		 	Its:	 	  

  
 82 

  

									
	STATE OF CALIFORNIA	 	)	  		  		  	
		 	)	  		  	SS	  	
	COUNTY OF                     	 	)	  		  		  	

 On this              day of
            , 1994, before me the undersigned, a Notary Public in and for said State, personally appeared
                    , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument. 
  

					
	WITNESS MY HAND AND OFFICIAL SEAL.	  		 	
			
	  
	  		 	
	Notary Public in and for said County	  	(SEAL)	 	

  

									
	STATE OF CALIFORNIA	 	)	  		  		  	
		 	)	  		  	SS	  	
	COUNTY OF                     	 	)	  		  		  	

 On this              day of
            , 1994, before me the undersigned, a Notary Public in and for said State, personally appeared
                    , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument. 
  

					
	WITNESS MY HAND AND OFFICIAL SEAL.	  		 	
			
	  
	  		 	
	Notary Public in and for said County	  	(SEAL)	 	

  
 83 

  

									
	STATE OF CALIFORNIA	 	)	  		  		  	
		 	)	  		  	SS	  	
	COUNTY OF                     	 	)	  		  		  	

 On this              day of
            , 1994, before me the undersigned, a Notary Public in and for said State, personally appeared
                    , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument. 
  

					
	WITNESS MY HAND AND OFFICIAL SEAL.	  		 	
			
	  
	  		 	
	Notary Public in and for said County	  	(SEAL)	 	

  
 84 

  
 AMENDMENT NO. 1

 TO 

INDUSTRIAL REAL ESTATE LEASE 
 DATED DECEMBER 8, 1994 
 by and between 

LANKFORD & ASSOCIATES, INC. 
 A Colorado Corporation as Landlord 
 and 

DEPOTECH CORPORATION 
 a California corporation, as Tenant, 
 THIS AMENDMENT NO. 1 TO LEASE
(“Amendment”) is made and entered into as of this 26 day of October, 1995, by and between LANKFORD & ASSOCIATES, INC., a Colorado corporation (“Landlord”), and DEPOTECH CORPORATION, a California corporation
(“Tenant”) upon the basis of the following facts, understandings and intentions. 
 RECITALS 

A. Landlord and Tenant entered on that certain Torrey Pines Science Center Industrial Real Estate Lease, dated December 8, 1994
(“Lease”), pursuant to which Landlord is leasing to Tenant certain Real property and the improvements to be constructed thereon (“Premises”), as more particularly described in the Lease. Any capitalized terms used but not defined
in this First Amendment which are defined in the Lease shall have the meaning ascribed In the Lease. 
 B. Landlord and Tenant
now desire to amend the terms of the Lease, as more particularly described in this Amendment. 
 NOW THEREFORE, the parties
hereto agree as follows: 
 1. Alteration, Additions and Improvements. Section 6.4.2 of the Lease is hereby amended
by adding the following language to the end of the Section: 
 All alterations, additions or improvements (including, but not
limited to, telecommunications systems and cabling, data communications systems and cabling, electrical hoop up in relation to systems furniture installation, security systems and piping but excluding pre-manufactured systems or sub-systems) which
are to be performed by contractors or subcontractors as a result of competitive bid proposals requested by Tenant (i.e. work which is not performed by Tenant’s employees or change orders occurring in the normal course of business to existing

 
contracts implemented under this process), and requiring Landlord’s approval, shall be performed only by contractors and subcontractors approved by Landlord in its reasonable discretion in a
process by which the Tenant shall solicit bids from any source and will select a contractor and/or subcontractor preferred by the 

  
 Landlord unless in
Tenant’s reasonable discretion such preferred contractor and/or subcontractor does not meet Tenant’s reasonable standards as to reliability, reputation, responsiveness, directly relevant experience, knowledge, financial and/or personnel
qualifications. Any excess costs of such work Incurred by Tenant as a result of Landlord’s rejection of any reputable and responsible contractor and/or subcontractor reasonably proposed by Tenant, or resulting from only Landlord’s
preferred contractors making bids for such work as a result or the foregoing requirement, shall be paid by Landlord. The amount of such excess costs of the work shall be determined by comparison of Landlord’s preferred contractor bids to
Tenant’s bids, or in the event comparable bids are not available, then as reasonably determined by Tenant. If Landlord fails to reimburse Tenant’s request for such excess costs within thirty (30) days after Landlord’s receipt of
Tenant’s request for such reimbursement, Tenant may deduct such amount (and interest accrued thereon) from any monies which Tenant owes Landlord. 
 2. Non-Disturbance. Section 12.2.1 of the Lease is hereby amended by adding the following language to the end of the Section. 

In addition to the foregoing requirements, Tenant’s obligation to subordinate its interest under the Lease and to attorn and become
the successor-in-interest to Landlord as described in 12.2 above shall be conditioned upon receipt by Tenant of a written agreement executed by said successor that said successor agrees to be bound by Landlord’s obligation under this Amendment.

 3. Is all other respects, the aforesaid Lease is hereby ratified and confirmed in all respects. 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by its respective, and duly authorized and directed
officers, on the 26 day of October, 1995. 
  

											
	 LANDLORD:
	 		 	TENANT:	 	
				
	 LANKFORD & ASSOCIATES, INC. a

Colorado corporation
	 		 	 DEPOTECH CORPORATION, a
 California corporation
	 	
						
	 By:
	 	 /s/ (illegible)
	 		 	By:	 	 /s/ (illegible)
	 	
	 Its:
	 	 President
	 		 	Its:	 	 President
	 	

  
 SECOND AMENDMENT
TO INDUSTRIAL REAL ESTATE LEASE 
 This SECOND AMENDMENT TO INDUSTRIAL REAL ESTATE LEASE (referred to herein as this
“Second Amendment” or this “Amendment”) is made and entered into as of the 2nd day of July, 2009, by and between LASDK LIMITED PARTNERSHIP, a Delaware limited partnership (“Landlord”), and PACIRA
PHARMACEUTICALS, INC., a California corporation (“Tenant”). 
 R E C I T
A L S : 
 A.    Landlord (as successor-in-interest to Lankford & Associates,
Inc., a Colorado corporation) and Tenant (as successor-in-interest to Depotech Corporation, a California corporation) are parties to that certain Industrial Real Estate Lease dated December 8, 1994 (the “Original Lease”), as
amended by that certain Amendment No. 1 to Industrial Real Estate Lease dated October 26, 1995 (the “First Amendment”), whereby Landlord leases to Tenant and Tenant leases from Landlord the “Premises,” as that
term is defined in Section 1.5 of the Original Lease, which Premises includes, without limitation, the entirety of that certain building (the “Building”) located at 10450 Science Center Drive, La Jolla, California 92037.
The Original Lease and the First Amendment shall hereafter be referred to, collectively, as the “Lease.” 

B.    As an accommodation to Tenant, Landlord and Tenant have agreed to defer a portion of Tenant’s monthly
installments of Basic Monthly Rent for the Premises during the period commencing retroactively as of February 1, 2009 and ending on March 31, 2010. Therefore, Landlord and Tenant desire to enter into this Second Amendment to define
Tenant’s deferred rent amount and deferred rent period, to state the applicable terms and conditions relating thereto (including, without limitation, the applicable return and repayment terms) and to make other modifications to the Lease, and
in connection therewith, Landlord and Tenant desire to amend the Lease as hereinafter provided. 

C.    Concurrent with Landlord’s and Tenant’s execution of this Second Amendment, HCP TPSP, LLC, a Delaware
limited liability company (“HCP”), an affiliate of Landlord, and Tenant are entering into that certain Fourth Amendment to Industrial Real Estate Triple Net Lease dated as of even date herewith (the “TPSP Fourth
Amendment”) amending that certain Industrial Real Estate Triple Net Lease dated August 17, 1993, as amended (the “TPSP Lease”). 
 A G R E E M E N T : 

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 

  

1.     Capitalized Terms. All capitalized terms when used herein shall have the same respective meanings
as are given such terms in the Lease unless expressly provided otherwise in this Second Amendment. 

2.    Condition of the Premises. Landlord and Tenant acknowledge that Tenant has been occupying the
Premises pursuant to the Lease, has had full opportunity to review the condition thereof and has done so, and therefore, Tenant shall continue to accept the Premises in its presently existing, “as is” condition. Landlord shall not be
obligated to provide or pay for any build-out of, or alteration to, the Premises. 
 3.    Basic
Monthly Rent Deferment. As an accommodation to Tenant, the parties hereby agree that, so long as Tenant is not then and has not previously (but subsequent to the date hereof) been in “Monetary Default,” as that term is defined
below, fifty percent (50%) of each installment of the Basic Monthly Rent payable by Tenant under the Lease in connection with the Premises (the “Deferred Basic Rent”), for each month during the period commencing retroactively
as of February 1, 2009 and ending on March 31, 2010 (the “Deferment Period”), shall be conditionally deferred (in accordance with the deferment schedule set forth below) and shall, except as otherwise provided herein, not
be due by Tenant until the applicable time period specified in Section 5 below. Landlord and Tenant acknowledge and agree that the Deferred Basic Rent for the entire Deferment Period is equal to a total of Two Million One Hundred Nine
Thousand One Hundred One and 20/100 Dollars ($2,109,101.20) (excluding Landlord’s return, as described below). The Deferred Basic Rent shall accrue during the Deferment Period as follows: 

 

									
	 Month During
 Deferment Period
	  	Applicable Monthly
Deferment
Amount	 	  	Deferred Basic Rent	 
	 February 2009
	  	$	148,423.73	  	  	$	148,423.73	  
	 March 2009
	  	$	148,423.73	  	  	$	296,847.46	  
	 April 2009
	  	$	148,423.73	  	  	$	445,271.19	  
	 May 2009
	  	$	148,423.73	  	  	$	593,694.92	  
	 June 2009
	  	$	148,423.73	  	  	$	742,118.65	  
	 July 2009
	  	$	148,423.73	  	  	$	890,542.38	  
	 August 2009
	  	$	148,423.73	  	  	$	1,038,966.11	  
	 September 2009
	  	$	148,423.73	  	  	$	1,187,389.84	  
	 October 2009
	  	$	153,618.56	  	  	$	1,341,008.40	  
	 November 2009
	  	$	153,618.56	  	  	$	1,494,626.96	  
	 December 2009
	  	$	153,618.56	  	  	$	1,648,245.52	  
	 January 2010
	  	$	153,618.56	  	  	$	1,801,864.08	  
	 February 2010
	  	$	153,618.56	  	  	$	1,955,482.64	  
	 March 2010
	  	$	153,618.56	  	  	$	2,109,101.20	  

  
 The rent deferment
arrangement contained in this Section 3 is personal to the Tenant named in this Second Amendment (the “Original Tenant”) and any “Affiliate,” as such term is defined below, to whom Original Tenant’s entire
interest in the Lease, as hereby amended, has been assigned (the “Affiliate Assignee”) and shall only apply to the extent that the Original Tenant or its Affiliate Assignee (if applicable) remains the tenant under the Lease, as
amended hereby. For purposes of this Second Amendment, an “Affiliate” of Tenant is an entity which is controlled by, controls, or is under common control with, Tenant. “Control,” as used in this Second Amendment,
shall mean the ownership, directly or indirectly, of at least fifty-one percent (51%) of the voting securities of, or possession of the right to vote, in the ordinary direction of its affairs, of at least fifty-one percent (51%) of the
voting interest in, any person or entity. Landlord and Tenant hereby acknowledge that, as of the date of this Second Amendment, for the period commencing on February 1, 2009 and ending on June 31, 2009, Tenant has previously paid to
Landlord the monthly installments of Basic Monthly Rent attributable to the Premises less the applicable monthly deferment amounts set forth in the schedule above. For purposes of this Second Amendment, Tenant shall be in “Monetary
Default” of the Lease, as hereby amended, if Tenant fails to pay to Landlord any regularly scheduled payment when due under the Lease, as hereby amended, and such failure continues for five (5) business days after Tenant’s receipt
of written notice from Landlord that the same is past due. 
 4.    Landlord’s Return on Deferred
Basic Rent. In consideration of Landlord’s execution of this Second Amendment and agreement to defer payments of rent under the Lease, as hereby amended, Tenant shall pay to Landlord a return on the accrued and outstanding Deferred
Basic Rent at a rate of ten percent (10%) per annum (the “Deferred Basic Rent Return”), which Deferred Basic Rent Return shall (i) accrue monthly on a cumulative, compounded basis over the Deferment Period and the
“Repayment Period,” as that term is defined in Section 5 below, and (ii) be paid by Tenant, along with Tenant’s payment of the Deferred Basic Rent, in accordance with the terms of Section 5, below. As used
herein, the term “The Balance” shall mean the sum of the accrued, outstanding Deferred Basic Rent and the accrued, outstanding Deferred Basic Rent Return at the time identified. 

5.    Repayment of Deferred Basic Rent and Deferred Basic Rent Return. The accrued,
outstanding Deferred Basic Rent and the accrued, outstanding Deferred Basic Rent Return shall be paid in full to Landlord in accordance with the terms of this Section 5. Not later than April 1, 2010, Tenant shall pay to Landlord a
lump sum of Four Hundred Forty-Eight Thousand Nine Hundred Forty and 60/100 Dollars ($448,940.60) (i.e., twenty percent (20%) of The Balance as of April 1, 2010) (the “Initial Lump Sum Payment”). Thereafter,
commencing on or prior to the first (1st) day of each
calendar month occurring during the period commencing on April 1, 2010 and ending on September 30, 2011, (the “Repayment Period”), along with and in addition to all other regularly scheduled Rent otherwise due and payable
by Tenant for the Premises under the terms of the Lease, as amended hereby, Tenant shall pay to Landlord the 

 
remainder of the accrued, outstanding Deferred Basic Rent and the accrued, outstanding Deferred Basic Rent Return (i.e., the accrued, outstanding Deferred Basic Rent and the accrued,
outstanding Deferred Basic Rent Return less the Initial Lump Sum Payment) as follows: 
  

					
	 Payment Due Date
	  	Applicable
Repayment 
Amount	 
	 On or prior to April 1,2010
	  	$	106,956.94	  
	 On or prior to May 1, 2010
	  	$	106,956.94	  
	 On or prior to June 1, 2010
	  	$	106,956.94	  
	 On or prior to July 1, 2010
	  	$	106,956.94	  
	 On or prior to August 1, 2010
	  	$	106,956.94	  
	 On or prior to September 1, 2010
	  	$	106,956.94	  
	 On or prior to October 1, 2010
	  	$	106,956.94	  
	 On or prior to November 1,2010
	  	$	106,956.94	  
	 On or prior to December 1, 2010
	  	$	106,956.94	  
	 On or prior to January 1,2011
	  	$	106,956.94	  
	 On or prior to February 1, 2011
	  	$	106,956.94	  
	 On or prior to March 1, 2011
	  	$	106,956.94	  
	 On or prior to April 1, 2011
	  	$	106,956.94	  
	 On or prior to May 1, 2011
	  	$	106,956.94	  
	 On or prior to June 1,2011
	  	$	106,956.94	  
	 On or prior to July 1,2011
	  	$	106,956.94	  
	 On or prior to August 1, 2011
	  	$	106,956.94	  
	 On or prior to September 1, 2011
	  	$	106,956.94	  

 Further,
notwithstanding any contrary provision of the Lease, as amended, the Deferred Basic Rent, Deferred Basic Rent Return and the “Reimbursement Amount,” as that term is defined in Section 6 below, payable hereunder shall constitute
a part of the “Rent” (as that term is defined in the Lease) payable by Tenant in connection with the Premises. 

  

6.    Reimbursement of Landlord’s Costs. Landlord and Tenant hereby agree that in consideration of
Landlord’s execution of this Second Amendment and granting Tenant the concessions set forth herein, Tenant shall reimburse Landlord (up to a cap in the amount of the “Reimbursement Amount,” as that term is defined below) for
(i) Landlord’s legal fees and costs incurred in connection with any of the matters set forth in this Second Amendment (including, without limitation, the liens and encumbrances relating to the Premises identified in Section 18,
below, and the “Settlement Agreement,” as that term is defined in Section 18, below) and any of the matters set forth in the TPSP Fourth Amendment (collectively, the “Legal Costs”), and (ii) all fees and
costs incurred by Landlord in connection with Landlord’s lender’s review of this Second Amendment and the TPSP Fourth Amendment (if applicable) (the “Lender Review Costs”) (the Legal Costs and the Lender Review Costs are,
collectively, “Landlord’s Costs”). Tenant shall reimburse Landlord’s Costs to Landlord in an amount not to exceed Fifty Thousand and No/100 Dollars ($50,000.00) (the “Reimbursement Amount”); provided,
however, the foregoing Reimbursement Amount cap shall not apply to any and all “Excluded Costs,” as that term is defined below. Following Landlord’s determination of Landlord’s Costs, Landlord shall provide reasonable
documentation thereof to Tenant. Tenant shall pay to Landlord a return on the outstanding amount of the Reimbursement Amount accruing at a rate of ten percent (10%) per annum over the Deferment Period and the Repayment Period. The Reimbursement
Amount (plus the return) will be deferred during the Deferment Period, and, thereafter, the Reimbursement Amount (plus the return) shall be payable by Tenant to Landlord in equal monthly installments over the Repayment Period in addition to all
regularly scheduled Rent due and payable by Tenant for the Premises under the terms of the Lease, as amended hereby, and payments of the accrued, outstanding Deferred Basic Rent and the accrued, outstanding Deferred Basic Rent Return, as set forth
in Section 5 above. The Reimbursement Amount shall represent the full satisfaction of any reimbursements or costs that are or might come due under the Lease, as hereby amended, and the TPSP Lease in connection with the matters addressed
in this Second Amendment and the TPSP Fourth Amendment, including the Legal Costs and the Lender Review Costs, but excluding the Excluded Costs. The term “Excluded Costs” shall mean any and all costs (including, without limitation,
all legal fees and costs) incurred by Landlord for which Tenant may be liable under the Lease, as hereby amended, (i) in the event that the “Effective Date,” as that term is defined in the Settlement Agreement, does not occur,
(ii) relating to any default under the Settlement Agreement, and (iii) relating to any default by Tenant under this Second Amendment or the TPSP Fourth Amendment. 
 7.    Acceleration of Deferred Basic Rent and Deferred Basic Rent Return for Tenant Default, Assignment of Lease or Bankruptcy. Notwithstanding any contrary provision of
the Lease, as amended hereby, Landlord shall have the right, at its option, to accelerate the repayment of The Balance accrued and unpaid as of such date and to make the same immediately payable in full by Tenant, upon (i) any Monetary Default
(as defined in Section 3 above) by Tenant; (ii) any assignment or attempted assignment of the Lease, as amended hereby, by the Original Tenant to any third party (other than to an Affiliate Assignee); (iii) a general assignment
by Tenant for the benefit of creditors, or the taking of any corporate action in furtherance of bankruptcy or dissolution (whether or not there exists any proceeding under an insolvency or bankruptcy law), or the filing by or against Tenant or any
guarantor of any proceeding under an insolvency or bankruptcy law; or (iv) the sale of Tenant’s business through a merger or sale of stock which, in either case, results in a more than fifty percent (50%) change in control of
Tenant’s stock, or a sale of all of the assets of Tenant’s business during the Deferment Period or 

 
the Repayment Period or prior to the full repayment of the Deferred Basic Rent and Deferred Basic Rent Return; provided, however, the issuance of equity securities of Tenant or securities
exercisable or convertible for equity securities of Tenant for financing purposes that results in a change of Control of Tenant shall not be prohibited by the Lease, as hereby amended, or result in such an acceleration as otherwise set forth in this
Section 7. In accordance with the foregoing, if any acceleration occurs prior to the end of the Deferment Period, then there shall be no further deferment of Basic Monthly Rent and, in addition to the repayment described in this
Section 7, Tenant shall immediately become obligated to pay to Landlord the full amount of Tenant’s regularly scheduled payments and amounts of Basic Monthly Rent thereafter coming due, as and when the same come due, in accordance
with the terms of the Lease. 
 8.    Basic Monthly Rent During Remainder of Term. Effective
as of April 1, 2010, and continuing throughout the remainder of the Lease Term, in addition to the payment of the accrued, outstanding Deferred Basic Rent, the accrued, outstanding Deferred Basic Rent Return and the Reimbursement Amount, as
applicable, as and when the same come due pursuant to the provisions of this Second Amendment, Tenant shall pay to Landlord the full amount of Tenant’s regularly scheduled payments and amounts of Basic Monthly Rent, as and when the same come
due, in accordance with the terms of the Lease. 
 9.    Additional Rent. Notwithstanding the
deferment of Basic Monthly Rent set forth in this Second Amendment, during the Deferment Period and throughout the remainder of the Lease Term, Tenant shall remain obligated to pay to Landlord the full amount of all other monetary obligations of
Tenant to Landlord under the terms of the Lease (including, without limitation, all costs of real property taxes, utilities, insurance premiums, and Project Operating Expenses as and to the extent set forth in the Lease). 

10.    Warrants for Purchase of Stock. In consideration of Landlord’s execution of this Second
Amendment and granting Tenant the concessions set forth herein and as a condition precedent to the effectiveness of this Second Amendment, Tenant shall, as required by the TPSP Fourth Amendment, concurrent with the execution and delivery of this
Second Amendment and the TPSP Fourth Amendment, execute and deliver to HCP the two (2) warrant agreements attached to the Fourth Amendment as Exhibit A (it being understood by the parties hereto that only such two (2) warrant
agreements shall be executed and delivered by Tenant notwithstanding that the warrant agreements are referenced in both this Second Amendment and the TPSP Fourth Amendment). 
 11.    Deletions and Modifications. Landlord and Tenant hereby agree and acknowledge that, effective as of the date of this Second Amendment, the following deletions
and/or modifications are made to the Lease. 
 11.1    Sections 1.4.2 and 1.9 of the Original
Lease have expired, and, therefore, Sections 1.4.2 and 1.9 of the Original Lease are hereby deleted in their entirety and are of no further force or effect. 
 11.2    In addition to the insurance that Tenant is required to carry in accordance with the terms of the Lease, Tenant, at Tenant’s sole cost and expense, shall obtain and keep
in force throughout the Lease Term, umbrella/excess liability insurance in the amount of 

 
$5,000,000 with respect to the risks referred to in Section 7.1.1 of the Original Lease, which shall apply specifically to the Premises. These limits shall be in addition to and not
including those stated for the underlying commercial general liability, business automobile liability, and employers liability insurance required under the Lease. Except as set forth herein, such policy shall be in accordance with the terms of
Section 7 of the Original Lease. 
 11.3    Section 15 of the Original Lease has
expired, and, therefore, Section 15 of the Original Lease is hereby deleted in its entirety and is of no further force or effect. 
 12.    Remedies. For the purpose of clarifying Section 11.4.2 of the Original Lease, Landlord and Tenant hereby acknowledge and agree that the remedy provided
to Landlord thereunder is intended to be, and shall be deemed to provide to Landlord, the remedy described in California Civil Code Section 1951.4. 
 13.    Notices. Notwithstanding any contrary provision contained in the Lease, as of the date of this Second Amendment, any notices to Landlord must be delivered to the
following addresses (and otherwise in accordance with the terms of Section 18.4 of the Original Lease) or to such other places as Landlord may from time to time designate in a notice to Tenant: 

HCP, Inc. 

3760 Kilroy Airport Center, Suite 300 
 Long Beach, California 90806 
 Attention: Legal Department 

and 
 HCP,
Inc. 
 444 North Michigan Avenue, Suite 3230 
 Chicago, Illinois 60611 
 Attention: Randall W Rohner, Senior Vice President

 and 
 Allen Matkins Leek Gamble Mallory & Natsis LLP 
 1901 Avenue of the
Stars, Suite 1800 
 Los Angeles, California 90067 
 Attention: Anton N. Natsis, Esq. 
 14.    No
Broker. Landlord and Tenant hereby warrant to each other that they have had no dealings with any real estate broker or agent in connection with the negotiation of this Second Amendment, and that they know of no real estate broker or agent
who is entitled to a commission in connection with this Second Amendment. Each party agrees to indemnify and defend the other party against and hold the other party harmless from any and all claims, demands, losses, liabilities, lawsuits, judgments,
costs and expenses (including, without limitation, reasonable attorneys’ fees) with respect to any leasing commission or equivalent compensation alleged to be owing on account of any dealings with any real estate broker or agent occurring by,
through, or 

 
under the indemnifying party. The terms of this Section 14 shall survive the expiration or earlier termination of the term of the Lease, as hereby amended. 

15.    No Default; Tolling of Cure Period. To Tenant’s knowledge, as of the date of this Second
Amendment, Landlord is not in default (nor does a situation exist which, with the passage of time, the giving of notice, or both, would constitute a default) under any of the terms or provisions of the Lease. So long as sub-item
(iii) set forth in Section 18 below, is satisfied, (i) to Landlord’s knowledge, as of the date of this Second Amendment, Tenant is not in default (nor does a situation exist which, with the passage of time, the giving
of notice, or both, would constitute a default) and there are no Monetary Defaults under any of the terms or provisions of the Lease, as hereby amended, and (ii) Tenant’s cure period with respect to the imposition of any liens and
encumbrances shall be tolled. 
 16.    Conflict; No Further Modification. In the event of any
conflict between the Lease and this Second Amendment, the terms of this Second Amendment shall prevail. Except as specifically set forth in this Second Amendment, all of the terms and provisions of the Lease shall remain unmodified and in full force
and effect. 
 17.    Counterparts/Facsimile or .PDF Signatures. This Second Amendment may be
executed in any number of counterparts, each of which shall be deemed an original, and all of which, together, shall constitute one and the same instrument. Additionally, the parties hereto acknowledge and agree that signatures transmitted via
facsimile or .pdf shall be considered fully binding under this Second Amendment. 

18.    Effectiveness of this Second Amendment. Landlord and Tenant hereby acknowledge and agree that,
notwithstanding the full execution and delivery of this Second Amendment by Landlord and Tenant, this Second Amendment is expressly conditioned upon the occurrence of all of the following: (i) approval of this Second Amendment by
Landlord’s partner, the National Electric Benefit Fund; (ii) approval of this Second Amendment by Landlord’s lenders; and (iii) the occurrence of the “Effective Date,” as that term is defined in that certain Settlement
Agreement dated June 17, 2009 by and between Tenant and DPR Construction, Inc. (“DPR”) as amended by that certain Amendment dated June 26, 2009 (collectively, the “Settlement Agreement”) (of which Landlord
is a third party beneficiary) and the full payment by Tenant to DPR of the “Aggregate Payment Amount” (i.e., $2,000,000), as that term is defined in, and pursuant to the terms of, the Settlement Agreement (collectively, the
“Conditions Precedent”). To the extent that the Conditions Precedent are not satisfied on or before September 1, 2009, then Landlord may terminate this Second Amendment upon delivery of written notice thereof to Tenant, in
which event this Second Amendment shall automatically terminate and the Lease shall continue in full force and effect as if unmodified by this Second Amendment. So long as the Conditions Precedent are satisfied, Landlord and Tenant each represent
and warrant to the other that the execution and performance of this Second Amendment by such party has been authorized and approved by all requisite corporate, limited liability company, partnership and third party action. 

[Continued on the following page.] 

  
 IN WITNESS WHEREOF,
this Amendment has been executed as of the day and year first above written. 
  

									
	“LANDLORD”	 		 	 LASDK LIMITED PARTNERSHIP,
 a Delaware limited partnership

				
	 	 		 	By:	 	 HCP-Torrey Pines I, Inc.,
 a Delaware corporation,
 its Managing General Partner

				
		 		 	 By:
	 	 /s/ R.W. Rohmer

		 		 		 	Name:	 	 Randall W. Rohmer

		 		 		 	Its:	 	 Senior V.P.

 [Signatures continue on the following page.] 

  
 IN WITNESS WHEREOF,
this Amendment has been executed as of the day and year first above written. 
  

									
	“TENANT”	 		 	 PACIRA PHARMACEUTICALS, INC.,
 a California corporation

				
	 	 	 	 	By:	 	 /s/ James Scibetta

	 	 	 	 		 	Name:	  	  
	 	 	 	 		 	Its:	  	  
				
		 		 	By:	 	  

		 		 		 	Name:	  	 
		 		 		 	Its:Loan and Security Agreement, dated April 30, 2010

  
 Execution Copy

 Exhibit 10.28 
 LOAN AND SECURITY AGREEMENT 
 THIS LOAN AND SECURITY AGREEMENT,
dated as of April 30, 2010 (as amended, restated, supplemented or otherwise modified from time to time, this “Agreement”) is among GENERAL ELECTRIC CAPITAL CORPORATION (“GECC”), in its capacity as agent for
Lenders (as defined below) (together with its successors and assigns in such capacity, “Agent”), the financial institutions who are or hereafter become parties to this Agreement as lenders (together with GECC, collectively the
“Lenders”, and each individually, a “Lender”). PACIRA PHARMACEUTICALS INC., a California corporation (“Borrower”), and the other entities or persons, if any, who are or hereafter become parties to
this Agreement as guarantors (each a “Guarantor” and collectively, the “Guarantors”, and together with Borrower, each a “Loan Party” and collectively, “Loan Parties”: provided that,
for clarity, the foregoing terms do not include any VC Guarantor, as defined below). 
 RECITALS 

Borrower wishes to borrow funds from time to time from Lenders, and Lenders desire to make loans, advances and other extensions of
credit, severally and not jointly, to Borrower from time to time pursuant to the terms and conditions of this Agreement. 

AGREEMENT 
 Loan Parties,
Agent and Lenders agree as follows: 
 1. DEFINITIONS. 
 As used in this Agreement, all capitalized terms shall have the definitions as provided herein. Any accounting term used but not defined herein shall be construed in accordance with generally accepted
accounting principles in the United States of America, as in effect from time to time (“GAAP”) and all calculations shall be made in accordance with GAAP. The term “financial statements” shall include the accompanying
notes and schedules. All other terms used but not defined herein shall have the meaning given to such terms in the Uniform Commercial Code as adopted in the State of New York, as amended and supplemented from time to time (the
“UCC”). 
 2. LOANS AND TERMS OF PAYMENT. 
 2.1. Promise to Pay. Borrower promises to pay Agent, for the ratable accounts of Lenders, when due pursuant to the terms hereof, the aggregate unpaid principal amount of all loans, advances and
other extensions of credit made severally by the Lenders to Borrower under this Agreement, together with interest on the unpaid principal amount of such loans, advances and other extensions of credit at the interest rates set forth herein.

 2.2. Term Loans. 
 (a) Commitment. Subject to the terms and conditions hereof, each Lender, severally, but not jointly, agrees to make term loans (each a “Term Loan” and collectively, the
“Term Loans”) to Borrower from time to time on any Business Day (as defined below) during the period from the Closing Date (as defined below) until September 15, 2010 (the “Commitment Termination Date”) in an
aggregate principal amount not to exceed such Lender’s commitment as 

 
identified on Schedule A hereto (such commitment of each Lender as it may be amended to reflect assignments made in accordance with this Agreement or terminated or reduced in accordance
with this Agreement, its “Commitment”, and the aggregate of all such commitments, the “Commitments”‘). Notwithstanding the foregoing, the aggregate principal amount of the Term Loans made hereunder shall not
exceed $11,250,000 (the “Total Commitment”). Each Lender’s obligation to fund a Term Loan shall be limited to such Lender’s Pro Rata Share (as defined below) of such Term Loan. Subject to the terms and conditions hereof,
the initial Term Loan shall be made on the Closing Date in an aggregate principal amount equal to $5,625,000 (the “Initial Term Loan”). After the Initial Term Loan, Borrower may request no more than two (2) additional Term
Loans (each a “Subsequent Term Loan”), and each Subsequent Term Loan must be in an amount equal to at least $1,000,000; provided, however, that (1) all conditions set forth in Section 4.2(c) must be satisfied before
any Subsequent Term Loan is advanced, (2) the aggregate principal amount of a particular Subsequent Term Loan cannot exceed the amount specified pursuant to the calculations set forth in Section 4.2(c), and (3) the aggregate principal
amount of all Subsequent Term Loans cannot exceed $5,625,000. 
 (b) Method of Borrowing. When Borrower
desires a Term Loan (other than the Initial Term Loan), Borrower will notify Agent (which notice shall be irrevocable) by facsimile (or by telephone, provided that such telephonic notice shall be promptly confirmed in writing, but in any event on or
before the following Business Day) on the date that is ten (10) Business Days prior to the day the Term Loan is to be made (or such shorter period of time as Agent may agree). Agent and Lenders may act without liability upon the basis of such
written or telephonic notice believed by Agent to be from any authorized officer of Borrower. Agent and Lenders shall have no duty to verify the authenticity of the signature appearing on any such written notice. 

(c) Funding of Term Loans. Promptly after receiving a request for a Term Loan, Agent shall notify each Lender of
the contents of such request and such Lender’s Pro Rata Share of the requested Term Loan. Upon the terms and subject to the conditions set forth herein, each Lender, severally and not jointly, shall make available to Agent its Pro Rata Share of
the requested Term Loan, in lawful money of the United States of America in immediately available funds, to the Collection Account (as defined below) prior to 11:00 a.m. (New York time) on the specified date. Agent shall, unless it shall have
determined that one of the conditions set forth in Section 4.1 or 4.2, as applicable, has not been satisfied, by 4:00 p.m. (New York time) on such day, credit the amounts received by it in like funds to Borrower by wire transfer to, unless
otherwise specified in a Disbursement Letter (as defined below), the following deposit account of Borrower (or such other deposit account as specified in writing by an authorized officer of Borrower and acceptable to Agent) (the “Designated
Deposit Account”): 
 Bank Name: Silicon Valley Bank SJ 

Bank Address: 3003 Tasman Dr, Santa Clara, CA 95054 

ABA#: 121140399 
 Account#: 3300161686 
 Account Name: Pacira Pharmaceuticals, Inc.

 Ref: GE Capital Term Loan Funding 

(d) Notes. The Term Loans of each Lender shall be evidenced by a promissory note substantially in the form of
Exhibit A hereto (each a “Note” and, collectively, the “Notes”), and Borrower shall execute and deliver a Note to each Lender. Each Note shall represent the obligation of Borrower to pay to such Lender the
lesser of (a) the aggregate unpaid principal amount of all Term Loans made by such Lender to or on behalf of Borrower under this Agreement or (b) the amount of such Lender’s Commitment, in each case together with interest thereon as
prescribed in Section 2.3(a). 

  
 2 

  
 (e)
Agent May Assume Funding. Unless Agent shall have received notice from a Lender prior to the date of any particular Term Loan that such Lender will not make available to Agent such Lender’s Pro Rata Share of such Term Loan, Agent may
assume that such Lender has made such amount available to it on the date of such Term Loan in accordance with subsection (c) of this Section 2.2, and may (but shall not be obligated to), in reliance upon such assumption, make available a
corresponding amount for the account of Borrower on such date. If and to the extent that such Lender shall not have so made such amount available to Agent, such Lender and Borrower severally agree to repay to Agent forthwith on demand such
corresponding amount together with interest thereon, for each day from the day such amount is made available to Borrower until the day such amount is repaid to Agent, at (i) in the case of Borrower, a rate per annum equal to the interest rate
applicable thereto pursuant to Section 2.3(a), and (ii) in the case of such Lender, a floating rate per annum equal to, for each day from the day such amount is made available to Borrower until such amount is reimbursed to Agent, the
weighted average of the rates on overnight federal funds transactions among members of the Federal Reserve System, as determined by Agent in its sole discretion (the “Federal Funds Rate”) for the first Business Day and thereafter,
at the interest rate applicable to such Term Loan. If such Lender shall repay such corresponding amount to Agent, the amount so repaid shall constitute such Lender’s loan included in such Term Loan for purposes of this Agreement. 

2.3. Interest and Repayment. 
 (a) Interest. Each Term Loan shall accrue interest in arrears from the date made until such Term Loan is fully repaid at a fixed per annum rate of interest equal to the sum of (i) the greater
of (A) the Treasury Rate (as defined below) in effect on the day that is three (3) Business Days prior to the making of such Term Loan as determined by Agent and (B) 1.36% plus (ii) 7.69%. All computations of interest and
fees calculated on a per annum basis shall be made by Agent on the basis of a 360-day year, in each case for the actual number of days occurring in the period for which such interest and fees are payable. Each determination of an interest rate or
the amount of a fee hereunder shall be made by Agent and shall be conclusive, binding and final for all purposes, absent manifest error. As used herein, the term “Treasury Rate” means a per annum rate of interest equal to the rate
published by the Board of Governors of the Federal Reserve System in Federal Reserve Statistical Release H.15 entitled “Selected Interest Rates” under the heading “U.S. Government Securities/Treasury Constant Maturities” as the
three year treasuries constant maturities rate. In the event Release H.15 is no longer published, Agent shall select a comparable publication to determine the U.S. Treasury note yield to maturity. 

(b) Payments of Principal and Interest. 
 (i) Interest. For each Term Loan, Borrower shall pay interest to the Agent, for the ratable benefit of the Lenders, at the rate of interest for such Term Loan determined in accordance with
Section 2.3(a) in arrears on the first day of each calendar month (a “Scheduled Payment Date”) commencing on the first day of the calendar month occurring after the month during which such Term Loan was made. 

(ii) Principal. For the Initial Term Loan, Borrower shall pay principal to the Agent, for the ratable benefit of the Lenders, in
equal consecutive payments of $234,375 on each Scheduled Payment Date, commencing on May 1, 2011. For each Subsequent 

  
 3 

 
Term Loan, Borrower shall pay principal to the Agent, for the ratable benefit of the Lenders, in equal consecutive payments on each Scheduled Payment Date, commencing on the first day of the
thirteenth calendar month occurring after the month during which such Term Loan was made, with each such payment of principal in an amount equal to (a) the original principal amount of such Term Loan, divided by (b) 24. 

(iii) Payments Generally. Notwithstanding the foregoing provisions of this Section 2.3(b), all unpaid principal and accrued
interest with respect to any Term Loan is due and payable in full to Agent, for the ratable benefit of Lenders, on the earlier of (A) the first day of the thirty-seventh month following the date such Term Loan was made or (B) the date that
such Term Loan otherwise becomes due and payable hereunder, whether by acceleration of the Obligations pursuant to Section 8.2 or otherwise (the earlier of (A) or (B), the “Applicable Term Loan Maturity Date”). Each
scheduled payment of interest or principal hereunder is referred to herein as a “Scheduled Payment.” Each Scheduled Payment, when paid, shall be applied first to the payment of accrued and unpaid interest on the applicable Term Loan
and then to unpaid principal balance of such Term Loan. Without limiting the foregoing, all Obligations shall be due and payable on the Applicable Term Loan Maturity Date for the last Term Loan made. 

(c) No Reborrowing. Once a Term Loan is repaid or prepaid, it cannot be reborrowed. 

(d) Payments. All payments (including prepayments) to be made by any Loan Party under any Debt Document shall be
made by wire transfer or ACH transfer in immediately available funds (which shall be the exclusive means of payment hereunder) in U.S. dollars, without setoff or counterclaim to the Collection Account (as defined below) before 11:00 a.m. (New York
time) on the date when due. All payments received by Agent after 11:00 a.m. (New York time) on any Business Day or at any time on a day that is not a Business Day may, in Agent’s sole discretion, be deemed to be received on the next Business
Day. Whenever any payment required under this Agreement would otherwise be due on a date that is not a Business Day, such payment shall instead be due on the next Business Day, and additional fees or interest, as the case may be, shall accrue and be
payable for the period of such extension. All Scheduled Payments due to Agent and Lenders under Section 2.3(b) shall be effected by automatic debit of the appropriate funds from Borrower’s operating account specified on the EPS Setup Form
(as defined below). As used herein, the term “Collection Account” means the following account of Agent (or such other account as Agent shall identify to Borrower in writing): 

Bank Name: Deutsche Bank 
 Bank Address: New York, NY 
 ABA Number: 021 001 033 

Account Number: 50271079 
 Account Name: GECC HH Cash Flow Collections 
 Ref: Pacira/CFN #
HFS2845 
 (e) Withholdings and Increased Costs. All payments shall be made free and clear of any taxes,
withholdings, duties, impositions or other charges (other than taxes on the overall net income of any Lender and comparable taxes), such that Agent and Lenders will receive the entire amount of any Obligations (as defined below), regardless of
source of payment. If Agent or any Lender shall have determined that the introduction of or any change in, after the date hereof, any law, treaty, governmental (or quasi-governmental) rule, regulation, guideline or order reduces the rate of return
on Agent or such Lender’s capital as a consequence of its obligations hereunder or increases the cost to Agent or such Lender of agreeing to make or making, funding or maintaining 

  
 4 

 
any Term Loan, then Borrower shall from time to time upon demand by Agent or such Lender (with a copy of such demand to Agent) promptly pay to Agent for its own account or for the account of such
Lender, as the case may be, additional amounts sufficient to compensate Agent or such Lender for such reduction or for such increased cost. A certificate as to the amount of such reduction or such increased cost submitted by Agent or such Lender
(with a copy to Agent) to Borrower shall be conclusive and binding on Borrower, absent manifest error, provided that, neither Agent nor any Lender shall be entitled to payment of any amounts under this Section 2.3(e) unless it has delivered
such certificate to Borrower within 180 days after the occurrence of the changes or events giving rise to the increased costs to, or reduction in the amounts received by, Agent or such Lender. This provision shall survive the termination of this
Agreement. 
 (f) Loan Records. Each Lender shall maintain in accordance with its usual practice accounts
evidencing the Obligations of Borrower to such Lender resulting from such Lender’s Pro Rata Share of each Term Loan, including the amounts of principal and interest payable and paid to such Lender from time to time under this Agreement. Agent
shall maintain in accordance with its usual practice a loan account on its books to record the Term Loans and any other extensions of credit made by Lenders hereunder, and all payments thereon made by Borrower. The entries made in such accounts
shall, to the extent permitted by applicable law, be prima facie evidence of the existence and amounts of the Obligations recorded therein; provided, however, that no error in such account and no failure of any Lender or Agent to
maintain any such account shall affect the obligations of Borrower to repay the Obligations in accordance with their terms. 
 (g) Payment of Expenses and other Obligations. Agent is authorized to, and at its sole election may, debit funds from Borrower’s operating account specified on the EPS Setup Form (as defined
below) to pay all Obligations under this Agreement or any of the other Debt Documents if and to the extent Borrower fails to promptly pay any such amounts as and when due. 
 2.4. Prepayments. Borrower can voluntarily prepay, upon five (5) Business Days’ prior written notice to Agent, any Term Loan in full, but not in part. Upon the date of (a) any
voluntary prepayment of a Term Loan in accordance with the immediately preceding sentence or (b) any mandatory prepayment of a Term Loan required under this Agreement (whether by acceleration of the Obligations pursuant to Section 8.2 or
otherwise), Borrower shall pay to Agent, for the ratable benefit of the Lenders, a sum equal to (i) all outstanding principal plus accrued interest with respect to such Term Loan and (ii) the Final Payment Fee (as such term is defined in
Section 2.7(b)) for such Term Loan. 
 2.5. Late Fees. If Agent does not receive any Scheduled Payment or other
payment under any Debt Document from any Loan Party within 3 days after its due date, then, at Agent’s election, such Loan Party agrees to pay to Agent for the ratable benefit of all Lenders, a late fee equal to (a) 5% of the amount of
such unpaid payment or (b) such lesser amount that, if paid, would not cause the interest and fees paid by such Loan Party under this Agreement to exceed the Maximum Lawful Rate (as defined below) (the “Late Fee”). 

2.6. Default Rate. All Term Loans and other Obligations shall bear interest, at the option of Agent or upon the request of the
Requisite Lenders (as defined below), from and after the occurrence and during the continuation of an Event of Default (as defined below), at a rate equal to the lesser of (a) 5% above the rate of interest applicable to such Obligations as set
forth in Section 2.3(a) immediately prior to the occurrence of the Event of Default and (b) the Maximum Lawful Rate (the “Default Rate”). The application of the Default Rate shall not be interpreted or deemed to extend any
cure period or waive any Default or Event of Default or otherwise limit the Agent’s or any Lender’s right or remedies hereunder. All interest payable at the Default Rate shall be payable on demand. 

  
 5 

  
 2.7. Lender
Fees. 
 (a) Closing Fee. On the Closing Date, Borrower shall pay to Agent, for the benefit of Lenders
in accordance with their Pro Rata Shares, a non-refundable closing fee in an amount equal to $48,750, which fee shall be fully earned when paid. 
 (b) Final Payment Fee. On the date upon which the outstanding principal amount of any Term Loan is repaid in full, or if earlier, is required to be repaid in full (whether by scheduled payment,
voluntary prepayment, acceleration of the Obligations pursuant to Section 8.2 or otherwise), Borrower shall pay to Agent, for the ratable accounts of Lenders, a fee (such fee with respect to any Term Loan, the “Final Payment
Fee”) equal to (i) 0.45% of the original principal amount of such Term Loan, if such repayment is made or required to be made before the one year anniversary of such Term Loan, (ii) 2.25% of the original principal amount of such
Term Loan, if such repayment is made or required to be made on or after the one year anniversary of such Term Loan but before the two year anniversary of such Term Loan, and (iii) 3.50% of the original principal amount of such Term Loan, if
such repayment is made or required to be made on or after the two year anniversary of such Term Loan. Each Final Payment Fee shall be deemed to be fully-earned on the Closing Date. 

2.8. Maximum Lawful Rate. Anything herein, any Note or any other Debt Document (as defined below) to the contrary notwithstanding,
the obligations of Loan Parties hereunder and thereunder shall be subject to the limitation that payments of interest shall not be required, for any period for which interest is computed hereunder, to the extent (but only to the extent) that
contracting for or receiving such payment by Agent and Lenders would be contrary to the provisions of any law applicable to Agent and Lenders limiting the highest rate of interest which may be lawfully contracted for, charged or received by Agent
and Lenders, and in such event Loan Parties shall pay Agent and Lenders interest at the highest rate permitted by applicable law (“Maximum Lawful Rate”); provided, however, that if at any time thereafter the rate of
interest payable hereunder or thereunder is less than the Maximum Lawful Rate, Loan Parties shall continue to pay interest hereunder at the Maximum Lawful Rate until such time as the total interest received by Agent and Lenders is equal to the total
interest that would have been received had the interest payable hereunder been (but for the operation of this paragraph) the interest rate payable since the making of the Initial Term Loan as otherwise provided in this Agreement, any Note or any
other Debt Document. 
 3. CREATION OF SECURITY INTEREST. 
 3.1. Grant of Security Interest. As security for the prompt payment and performance, whether at the stated maturity, by acceleration or otherwise, of all Term Loans and other debt, obligations and
liabilities of any kind whatsoever of Borrower to Agent and Lenders under the Debt Documents (whether for principal, interest, fees, expenses, prepayment premiums, indemnities, reimbursements or other sums, and whether or not such amounts accrue
after the filing of any petition in bankruptcy or after the commencement of any insolvency, reorganization or similar proceeding, and whether or not allowed in such case or proceeding), absolute or contingent, now existing or arising in the future,
including but not limited to the payment and performance of any outstanding Notes, and any renewals, extensions and modifications of such Term Loans (such indebtedness under the Notes, Term Loans and other debt, obligations and liabilities in
connection with the Debt Documents are collectively called the “Obligations”), and as security for the prompt payment and performance by each Guarantor of the Guaranteed Obligations as defined in the Guaranty (as defined below),
each Loan Party does hereby grant to Agent, for the benefit of Agent and Lenders, a security interest in the property listed below (all hereinafter collectively called the “Collateral”‘): 

All of such Loan Party’s personal property of every kind and nature whether now owned or hereafter acquired by, or arising in favor
of, such Loan Party, and regardless of where located, including, without limitation, all accounts, chattel paper (whether tangible or electronic), commercial tort claims, deposit accounts, documents, equipment, financial assets, fixtures, goods,
instruments, investment property (including, without limitation, all securities accounts), inventory, letter-of-credit rights, letters of credit, securities, supporting obligations, cash, cash equivalents, any other contract rights (including,
without limitation, rights under any license agreements), or rights to the payment of money, and general intangibles (including Intellectual Property, as defined in Section 3.3 below), and all books and records of such Loan Party relating
thereto, and in and against all additions, attachments, accessories and accessions to such property, all substitutions, replacements or exchanges therefor, all proceeds, insurance claims, products, profits and other rights to payments not otherwise
included in the foregoing (with each of the foregoing terms that are defined in the UCC having the meaning set forth in the UCC). 

  
 6 

  
 The Borrower hereby
acknowledges that it is a party to (a) that certain Amended and Restated Royalty Interests Assignment Agreement, dated as of March 23, 2007 (as in existence on the date hereof and as certified to Agent and Lenders pursuant to
Section 4.1(x), or as amended after the date hereof in accordance with Section 7.11 (a), the “Royalty Assignment Agreement”), by and between Borrower, as seller, and Royalty Securitization Trust I (the
“Trust”), as purchaser, pursuant to which Borrower has sold and assigned to Trust the “Assigned Interests” (as defined in the Royalty Assignment Agreement), (b) that certain Amended and Restated Security Agreement,
dated as of March 23, 2007 (as in existence on the date hereof and as certified to Agent and Lenders pursuant to Section 4.1(x), or as amended in accordance with Section 7.11(a), the “Royalty Security Agreement”), by
and between Borrower and Trust, pursuant to which the Borrower has granted to the Trust a security interest in the “Collateral” (as the term “Collateral” is defined in the Royalty Security Agreement; the “Collateral”
under and as defined in the Royalty Security Agreement is referred to herein as the “Royalty Collateral”), and (c) that certain Amended and Restated Lockbox Agreement, dated as of March 23, 2007 (as in existence on the
date hereof and as certified to Agent and Lenders pursuant to Section 4.1(x), or as amended in accordance with Section 7.11(a), the “Royalty Lockbox Agreement”), by and among Borrower, Deutsche Bank Trust Company in its
capacity as custodian and JPMorgan Chase Bank, N.A. (collectively, the Royalty Assignment Agreement, the Royalty Security Agreement and the Royalty Lockbox Agreement as hereafter referred to as the “Royalty Agreements”).
Notwithstanding any provision in this Agreement to the contrary, so long as and to the extent that the terms and conditions of the Royalty Agreements prohibit Borrower from granting a security interest in the Royalty Collateral to Agent or any
Lender (or so long as a default under any Royalty Agreement would result from such grant to the Agent or any Lender), the grant of security interest under this Agreement shall not extend to and the term “Collateral” shall not include
(i) the Royalty Collateral and (ii) any deposit accounts of Borrower that are subject to the Royalty Lockbox Agreement and are dedicated exclusively to the receipt of royalty payments resulting from the license of the DepoDur and DepoCyt
products (such deposit accounts, the “Royalty Deposit Accounts”); provided, however, that if (x) the Royalty Agreements are terminated or (y) the Royalty Agreements are amended to permit Borrower to grant a security
interest in the Royalty Collateral to Agent, then the grant of security interest under this Agreement shall automatically extend to, and the term “Collateral” shall automatically include, the Royalty Collateral and the Royalty Deposit
Accounts. 
 Further, notwithstanding any provision in this Agreement to the contrary, the grant of security interest herein
shall not extend to and the term “Collateral” shall not include (all of following, together with the Royalty Collateral and the Royalty Deposit Accounts, the “Excluded Assets”): (i) more than 65% of the issued and
outstanding voting capital stock of any Subsidiary of the Borrower that is incorporated or organized in a jurisdiction other than the United States or any state or territory thereof, (ii) any “intent-to-use” trademarks at all times
prior to the first use thereof, whether by the actual use thereof in 

  
 7 

 
commerce, the recording of a statement of use with the United States Patent and Trademark Office or otherwise, and (iii) any license or contract to the extent and only to the extent that the
granting of a security interest in such license or contract is expressly prohibited by any applicable statute, law or regulation, or would constitute a default under or a breach of such license or contract, as applicable, but only to the extent that
such prohibition or default is enforceable under applicable law (including without limitation Sections 9-406, 9-407 and 9-408 of the UCC); provided that upon the termination or expiration of any such prohibition, such license or contract, as
applicable, shall automatically be subject to the security interest granted in favor of the Agent hereunder and become part of the “Collateral.” 
 Each Loan Party hereby represents and covenants that such security interest constitutes a valid, first priority security interest in the presently existing Collateral, and will constitute a valid, first
priority security interest in Collateral acquired after the date hereof. Each Loan Party hereby covenants that it shall give written notice to Agent promptly upon the acquisition by such Loan Party or creation in favor of such Loan Party of any
commercial tort claim after the Closing Date. 
 3.2. Financing Statements. Each Loan Party hereby authorizes Agent to
file UCC financing statements with all appropriate jurisdictions to perfect Agent’s security interest (for the benefit of itself and the Lenders) granted hereby. 
 3.3. Grant of Intellectual Property Security Interest. The Collateral shall include all intellectual property of each Loan Party, which shall be defined as any and all copyright, trademark,
tradename, servicemark, patent, invention, design, design right, software and databases, license, trade secret, customer lists, know-how, and intangible rights of each Loan Party, any marketing rights of each Loan Party, and any goodwill,
applications, registrations, claims, products, awards, judgments, amendments, renewals, extensions, improvements and insurance claims related thereto (collectively, “Intellectual Property”) now or hereafter owned or licensed by a
Loan Party, together with all accessions and additions thereto, proceeds and products thereof (including, without limitation, any proceeds resulting under insurance policies); provided, however, that for the avoidance of doubt the Collateral
shall not include any Excluded Assets to the extent excluded at any time under the provisions of Section 3.1 hereof. In order to perfect or protect Agent’s security interest and other rights in Loan Party’s Intellectual Property, each
Loan Party hereby authorizes Agent to file a patent security agreement, substantially in the form provided by Agent (“Patent Security Agreement”) and/or a trademark security agreement, substantially in the form provided by Agent
(“Trademark Security Agreement”) with the United States Patent and Trademark Office and a copyright security agreement, substantially in the form provided by Agent (“Copyright Security Agreement” and together with
the Patent Security Agreement and the Trademark Security Agreement, the “Intellectual Property Security Agreements”‘) with the United States Copyright Office as each are applicable and required by Agent; provided that
such Intellectual Property Security Agreements shall be consistent with the terms and conditions of this Article 3. 
 4. CONDITIONS OF
CREDIT EXTENSIONS 
 4.1. Conditions Precedent to Initial Term Loan. No Lender shall be obligated to make the Initial
Term Loan, or to take, fulfill, or perform any other action hereunder, until the following have been delivered to the Agent (the date on which the Lenders make the Initial Term Loan after all such conditions shall have been satisfied in a manner
satisfactory to Agent or waived in accordance with this Agreement, the “Closing Date”): 
 (a) a
counterpart of this Agreement duly executed by each Loan Party; 
 (b) a certificate executed by the Secretary of
each Loan Party, the form of which is attached hereto as Exhibit B (the “Secretary’s Certificate”), providing verification of incumbency and attaching (i) such Loan Party’s board resolutions approving the
transactions contemplated by this Agreement and the other Debt Documents and (ii) such Loan Party’s governing documents; 

  
 8 

  
 (c)
Notes duly executed by Borrower in favor of each applicable Lender; 
 (d) filed copies of UCC financing
statements, collateral assignments, and terminations statements, with respect to the Collateral, as Agent shall request; 
 (e) certificates of insurance evidencing the insurance coverage, and satisfactory additional insured and lender loss payable endorsements, in each case as required pursuant to Section 6.4 herein;

 (f) current UCC lien, judgment, bankruptcy and tax lien search results demonstrating that there are no other
security interests or liens on the Collateral, other than Permitted Liens (as defined below); 
 (g) the
applicable Intellectual Property Security Agreements required by Section 3.3 above, duly executed by each Loan Party; 
 (h) a certificate of good standing of each Loan Party from the jurisdiction of such Loan Party’s organization and a certificate of foreign qualification from each jurisdiction where such Loan
Party’s failure to be so qualified would reasonably be expected to have a Material Adverse Effect (as defined below), in each case as of a recent date acceptable to Agent; 

(i) a landlord consent and/or bailee letter in favor of Agent executed by the landlord or bailee, as applicable, for any
third party location where (a) any Loan Party’s principal place of business, (b) any Loan Party’s books or records or (c) Collateral with an aggregate value in excess of $50,000 is located, a form of which is attached hereto
as Exhibit C-l and Exhibit C-2, as applicable (each an “Access Agreement”‘), to the extent required pursuant to Section 6.6; 

(j) a completed EPS set-up form, a form of which is attached hereto as Exhibit E (the “EPS Setup
Form”). 
 (k) a completed perfection certificate, duly executed by each Loan Party (the
“Perfection Certificate”), a form of which Agent previously delivered to Borrower; 
 (l) one or
more Account Control Agreements (as defined below), in form and substance reasonably acceptable to Agent, duly executed by the applicable Loan Parties and the applicable depository or financial institution, for each deposit and securities account to
the extent required pursuant to Section 7.10; 
 (m) a pledge agreement (which pledge agreement shall be
governed by the laws of the state of New York), in form and substance satisfactory to Agent, executed by each Loan Party and pledging to Agent, for the benefit of itself and the Lenders, a security interest in (a) 100% of the shares of the
outstanding capital stock, of any class, of each Subsidiary (as defined below) of each Loan Party that is incorporated under the laws of any State of the United States or the District of Columbia, (b) to the extent that the Borrower would incur
adverse tax consequences resulting from a pledge of 100% of the shares of the outstanding capital stock of any Subsidiary that is not incorporated under the laws of any State of the United States or the District of Columbia, 65% of the shares of the
outstanding voting capital stock and 100% of the shares of the outstanding non-voting capital stock of each such foreign Subsidiary and (c) any and all Indebtedness (as defined in Section 7.2 below) owing to Loan Parties (the
“Pledge Agreement”); 

  
 9 

  
 (n) a
guaranty agreement (together with any other guaranty that purports to provide for a guaranty of the Obligation, the “Guaranty”; provided that, for the avoidance of doubt, the term “Guaranty” shall not include the VC
Guaranty, as defined below), in form and substance satisfactory to Agent, executed by each Guarantor; 
 (o) a
limited guaranty agreement (the “VC Guaranty”), in form and substance satisfactory to Agent, executed by each of MPM BioVentures IV-QP, L.P., MPM BioVentures IV GmbH & Co. Beteiligungs KG, MPM Asset Management Investors BV4
LLC, Caduceus Private Investments III, LP, Orbimed Associates III, LP, Sanderling Venture Partners VI, L.P., Sanderling Venture Partners VI Co-Investment, L.P., Sanderling VI Beteiligungs GmbH & Co. KG, and Sanderling VI Limited Partnership
(each of the foregoing entities a “VC Guarantor” and, collectively, the “VC Guarantors”); 
 (p) a certificate executed by the Secretary of each VC Guarantor, in the same form as Exhibit B hereto, providing verification of incumbency and attaching (i) such VC Guarantor’s board
resolutions approving the transactions contemplated by the VC Guaranty and (ii) such VC Guarantor’s governing documents 
 (q) a legal opinion of Loan Parties’ counsel, in form and substance satisfactory to Agent; 
 (r) [Reserved]; 
 (s) a disbursement instruction letter, in
form and substance satisfactory to Agent, executed by each Loan Party, Agent and each Lender (the “Disbursement Letter”); 
 (t) Agent shall have received evidence that on or before the Closing Date (1) Pacira, Inc. (the “Parent”) shall have received unrestricted gross cash proceeds of not less than
$7,500,000 (resulting in net cash proceeds of not less than $7,400,000) from the issuance of secured or unsecured subordinated Indebtedness to each of the VC Guarantors and HBM BioVentures (Cayman) Ltd. (“HBM”) (such entities,
collectively, the “Specified Equityholders”) pursuant to that certain Secured Note Purchase Agreement, dated March 10 2010, by and among the Parent and the Specified Equityholders (such Indebtedness, the “Closing Date
Subordinated Indebtedness”), and (2) the Parent has contributed all net cash proceeds of such Closing Date Subordinated Indebtedness to Borrower; 
 (u) Agent shall have received, in form and substance satisfactory to Agent, a global amendment and consent to all agreements and other documents relating to or evidencing Indebtedness (other than the
Indebtedness described in Section 4.1(t)) of the Parent or the Borrower issued prior to the Closing Date to any equityholders of Parent (such Indebtedness issued prior to the Closing Date, the “Pre-Closing Subordinated
Indebtedness”), which amendment and consent shall (i) reference, acknowledge and agree to the debt and collateral subordination provisions of the Specified Equityholder Subordination Agreement (as defined below), (ii) provide that
the maturity date of all such Pre-Closing Subordinated Indebtedness may be made until the earliest of (1) a Corporate Transaction (as defined in such amendment and consent), (2) December 16, 2013, and (3) the date that is at
least 91 days after the date on which all of the Obligations are paid in full in cash, all of the Commitments hereunder are terminated, and this Agreement shall have been terminated (such date, the “Termination Date”),
(iii) provide 

  
 10 

 
that, notwithstanding the maturity date of such Pre-Closing Subordinated Indebtedness, no payments may be made with respect thereto other than in accordance with the terms and conditions of the
Specified Equityholder Subordination Agreement, and (iv) make such other modifications thereto as Agent shall require, and Agent shall have received evidence that such holders have terminated all UCC financing statements naming such holders as
secured party and any Loan Party as debtor (provided, however, that such holders may refile UCC financing statements after the Closing Date with a description of collateral that is identical to the UCC financing statements filed by Agent);

 (v) a Subordination Agreement, in form and substance satisfactory to Agent, executed by Agent and each holder
of Closing Date Subordinated Indebtedness, Pre-Closing Subordinated Indebtedness and HBM Subordinated Indebtedness (as defined in Section 7.2 below), and providing that (1) all Closing Date Subordinated Indebtedness, Pre-Closing
Subordinated Indebtedness and HBM Subordinated Indebtedness is subordinated to the prior payment in full in cash of all Obligations and (2) any liens on the Collateral or any other assets of any Loan Party securing any Closing Date Subordinated
Indebtedness, Pre-Closing Subordinated Indebtedness or HBM Subordinated Indebtedness are subordinated to all liens granted to Agent to secure the Obligations (the “Specified Equityholder Subordination Agreement”); 

(w) all other documents and instruments as Agent may reasonably deem necessary or appropriate to effectuate the intent and
purpose of this Agreement (together with the Agreement, the Notes, the Intellectual Property Security Agreements, the Account Control Agreements, the Access Agreements, the Perfection Certificate, the Pledge Agreement, the Guaranty, the VC Guaranty,
the Secretary’s Certificate, the Specified Equityholder Subordination Agreement, any Other Subordination Agreement (as defined in Section 7.2 below) and the Disbursement Letter, and all other agreements, instruments, documents and
certificates executed and/or delivered to or in favor of Agent from time to time in connection with this Agreement or the transactions contemplated hereby, the “Debt Documents”); 

(x) Agent shall have received copies of the fully-executed Royalty Agreements (including any amendments thereto),
accompanied by a certificate from an authorized officer of Borrower attesting to that such copies are true and correct; and 
 (y) Agent and Lenders shall have received the fees required to be paid by Borrower, if any, in the respective amounts specified in Section 2.7, and Borrower shall have reimbursed Agent and Lenders
for all fees, costs and expenses of closing presented as of the date of this Agreement. 
 4.2. Conditions Precedent to AH
Term Loans. No Lender shall be obligated to make any Term Loan, including the Initial Term Loan, unless the following additional conditions have been satisfied: 

(a) (i) all representations and warranties in Section 5 below shall be true as of the date of such Term Loan;
(ii) no Event of Default or any other event, which with the giving of notice or the passage of time, or both, would constitute an Event of Default (such event, a “Default”) has occurred and is continuing or will result from the
making of any Term Loan, and (iii) Agent shall have received a certificate from an authorized officer of each Loan Party confirming each of the foregoing; 
 (b) Agent shall have received the redelivery or supplemental delivery of the items set forth in the following sections to the extent circumstances have changed since the Initial Term Loan: Sections
4.1(b), (e), (f), (h), (k) and (q); 

  
 11 

  
 (c)
with respect to each Subsequent Term Loan, 
 (i) Agent shall have received evidence satisfactory to Agent that immediately prior
to the making of such Subsequent Term Loan (1) the Parent shall have received unrestricted net cash proceeds from the issuance after the Closing Date of secured or unsecured subordinated Indebtedness to each of the Specified Equityholders (but
not any HBM Subordinated Indebtedness (as defined in Section 7.2 below) issued exclusively to HBM) on terms and conditions identical to the terms and conditions applicable to the Closing Date Subordinated Indebtedness (any such subordinated
Indebtedness so issued to each of the Specified Equityholders immediately prior to the advance of a corresponding Subsequent Term Loan, “Post-Closing Specified Equityholder Subordinated Indebtedness”), and (2) the Parent has
contributed all net cash proceeds of such Post-Closing Specified Equityholder Subordinated Indebtedness to Borrower; 
 (ii) The
principal amount of such Subsequent Term Loan shall not exceed an amount equal to (1) (A) the aggregate amount of unrestricted net cash proceeds received by Parent and Borrower from the issuance of the Post-Closing Specified Equityholder
Subordinated Indebtedness corresponding to such Subsequent Term Loan, divided by (B) $7,400,000, multiplied by (2) $5,625,000; 
 (iii) the Specified Equityholders and Agent shall have executed a joinder or amendment to the Specified Equityholder Subordination Agreement, in form and substance reasonably satisfactory to the Agent,
providing that (1) all such Post-Closing Specified Equityholder Subordinated Indebtedness is subordinated to the prior payment in full in cash of all Obligations and (2) any liens on the Collateral or any other assets of any Loan Party
securing any such Post-Closing Specified Equityholder Subordinated Indebtedness are subordinated to all liens granted to Agent to secure the Obligations, in each case pursuant to the terms and conditions of the Specified Equityholder Subordination
Agreement; and 
 (iv) all Account Control Agreements required pursuant to Section 7.10 shall have been executed and
delivered to Agent (notwithstanding the 30-day post closing period set forth in Section 7.10); and 
 (d)
Agent shall have received such other documents, agreements, instruments or information as Agent shall reasonably request. 
 5.
REPRESENTATIONS AND WARRANTIES OF LOAN PARTIES. 
 Each Loan Party, jointly and severally, represents, warrants and covenants
to Agent and each Lender that: 
 5.1. Due Organization and Authorization. Each Loan Party’s exact legal name is as
set forth in the Perfection Certificate and each Loan Party is, and will remain, duly organized, existing and in good standing under the laws of the State of its organization as specified in the Perfection Certificate, has its chief executive office
at the location specified in the Perfection Certificate, and is, and will remain, duly qualified and licensed in every jurisdiction wherever necessary to carry on its business and operations, except where the failure to be so qualified and licensed
would not reasonably be expected to have a Material Adverse Effect. This Agreement and the other Debt Documents have been duly authorized, executed and delivered by each Loan Party and constitute legal, valid and binding agreements enforceable in
accordance with their terms. The execution, delivery and performance by each Loan Party of each Debt Document executed or to be executed by it is in each case within such Loan Party’s powers. 

  
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 5.2. Required
Consents. No filing, registration, qualification with, or approval, consent or withholding of objections from, any governmental authority or instrumentality or any other entity or person is required with respect to the entry into, or performance
by any Loan Party of, any of the Debt Documents, except any already obtained. 
 5.3. No Conflicts. The entry into, and
performance by each Loan Party of, the Debt Documents will not (a) violate any of the organizational documents of such Loan Party, (b) violate any law, rule, regulation, order, award or judgment applicable to such Loan Party, or
(c) result in any breach of or constitute a default under, or result in the creation of any lien, claim or encumbrance on any of such Loan Party’s property (except for liens in favor of Agent, on behalf of itself and Lenders) pursuant to,
any indenture, mortgage, deed of trust, bank loan, credit agreement, or other Material Agreement (as defined below) to which such Loan Party is a party. As used herein, “Material Agreement” means (i) each agreement relating to
any of the Closing Date Subordinated Indebtedness, the Pre-Closing Subordinated Indebtedness, the HBM Subordinated Indebtedness (as defined in Section 7.2 below), the Other Subordinated Indebtedness (as defined in Section 7.2 below) and
the Post-Closing Specified Equityholder Subordinated Indebtedness (collectively, the “Subordinated Indebtedness”), (ii) the Royalty Agreements and any other agreement executed in connection therewith, (iii) any agreement
or contract to which such Loan Party is a party and involving the receipt or payment of amounts in the aggregate exceeding $500,000 per year and (iv) any agreement or contract to which such Loan Party is a party the termination of which would
reasonably be expected to have a Material Adverse Effect. A description of all Material Agreements as of the Closing Date is set forth on Schedule B hereto. 
 5.4. Litigation. There are no actions, suits, proceedings or investigations pending against or affecting any Loan Party before any court, federal, state, provincial, municipal or other governmental
department, commission, board, bureau, agency or instrumentality, domestic or foreign, or any basis thereof, which involves the possibility of any judgment or liability that would reasonably be expected to have a Material Adverse Effect, or which
questions the validity of the Debt Documents, or the other documents required thereby or any action to be taken pursuant to any of the foregoing, nor does any Loan Party have reason to believe that any such actions, suits, proceedings or
investigations are threatened. As used in this Agreement, the term “Material Adverse Effect” means a material adverse effect on any of (a) the operations, business, assets, properties, or condition (financial or otherwise) of
Borrower, individually, or the Loan Parties, collectively, (b) the ability of a Loan Party to perform any of its obligations under any Debt Document to which it is a party, (c) the legality, validity or enforceability of any Debt Document,
(d) the rights and remedies of Agent or Lenders under any Debt Document or (e) the validity, perfection or priority of any lien in favor of Agent, on behalf of itself and Lenders, on any of the Collateral; provided, however, that
for the avoidance of doubt, any actual cash burn of the Loan Parties that is consistent with the cash burn for the Loan Parties described in the most recent annual operating plan of Parent and its Subsidiaries delivered to Agent and Lenders in
accordance with Section 6.3 will not constitute a “Material Adverse Effect.” 
 5.5. Financial Statements.
All financial statements delivered to Agent and Lenders pursuant to Section 6.3 fairly present in all material respects the financial condition and operating results of the Parent as of the dates, and for the periods, indicated therein, subject
in each case to normal quarter-end adjustments. There has been no material adverse deviation from the most recent annual operating plan of Parent and its Subsidiaries delivered to Agent and Lenders in accordance with Section 6.3. 

5.6. Use of Proceeds. The proceeds of the Term Loans shall be used for working capital and general corporate purposes. 

  
 13 

  
 5.7.
Collateral. Each Loan Party is, and will remain, the sole and lawful owner, and in possession of, the Collateral, and has the sole right and lawful authority to grant the security interest described in this Agreement. The Collateral is, and
will remain, free and clear of all liens, claims and encumbrances of any kind whatsoever, except for (a) liens in favor of Agent, on behalf of itself and Lenders, to secure the Obligations, (b) liens (i) with respect to the payment of
taxes, assessments or other governmental charges or (ii) of suppliers, carriers, materialmen, warehousemen, workmen or mechanics and other similar liens, in each case imposed by law and arising in the ordinary course of business, and securing
amounts that are not yet due or that are being contested in good faith by appropriate proceedings diligently conducted and with respect to which adequate reserves or other appropriate provisions are maintained on the books of the applicable Loan
Party in accordance with GAAP and which do not involve, in the judgment of Agent, any risk of the sale, forfeiture or loss of any of the Collateral (a “Permitted Contest”‘), (c) liens existing on the date hereof and set
forth on Schedule B hereto, (d) liens securing Indebtedness (as defined in Section 7.2 below) permitted under Section 7.2(c) below, provided that (i) such liens exist prior to the acquisition of, or attach substantially
simultaneous with, or within 20 days after the, acquisition, repair, improvement or construction of, such property financed by such Indebtedness and (ii) such liens do not extend to any property of a Loan Party other than the property (and
proceeds thereof) acquired or built, or the improvements or repairs, financed by such Indebtedness, (e) licenses described in Section 7.3(d) below, (f) liens securing the Subordinated Indebtedness, but only to the extent that such
liens are subordinated to the liens in favor of Agent securing the Obligations pursuant to the terms and conditions of the Specified Equityholder Subordination Agreement or any Other Subordination Agreement, as applicable, and (g) the lien of
Silicon Valley Bank in that certain Certificate of Deposit No. 8800063623 issued by Silicon Valley Bank to Borrower or any subsequent certificates of deposit issued in replacement or continuation thereof, in all cases in an amount not to exceed
$15,000 at any time (the “Certificate of Deposit”‘), which lien in such Certificate of Deposit secures the repayment of Borrower’s obligations to Silicon Valley from time to time associated with the use by Borrower’s
employees of certain business credit cards issued by Silicon Valley Bank (the “Credit Card Obligations”); provided that the Certificate of Deposit shall be terminated promptly if the Borrower ceases to use business credit
cards issued by Silicon Valley Bank, and the proceeds of such terminated Certificate of Deposit shall be transferred promptly to a deposit account subject to Section 7.10 (all of such liens described in the foregoing clauses (a) through
(g) are called “Permitted Liens”). 
 5.8. Compliance with Laws. 

(a) Each Loan Party is and will remain in compliance in all respects with all laws, statutes, ordinances, rules and
regulations applicable to it, except to the extent that any such non-compliance, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect. 

(b) Without limiting the generality of the immediately preceding clause (a), each Loan Party further agrees that it and
each of its subsidiaries is and will remain in compliance in all material respects with all U.S. economic sanctions laws, Executive Orders and implementing regulations as promulgated by the U.S. Treasury Department’s Office of Foreign Assets
Control (“OFAC”), and all applicable anti-money laundering and counter-terrorism financing provisions of the Bank Secrecy Act and all regulations issued pursuant to it. No Loan Party nor any of its subsidiaries, affiliates or joint
ventures (i) is a person or entity designated by the U.S. Government on the list of the Specially Designated Nationals and Blocked Persons (the “SDN List”) with which a U.S. person or entity cannot deal with or otherwise engage
in business transactions, (ii) is a person or entity who is otherwise the target of U.S. economic sanctions laws such that a U.S. person or entity cannot deal or otherwise engage in business transactions with such person or entity, or
(iii) is controlled by (including without limitation by virtue of such person being a director or owning voting shares or interests), or acts, directly or indirectly, for or 

  
 14 

 
on behalf of, any person or entity on the SDN List or a foreign government that is the target of U.S. economic sanctions prohibitions such that the entry into, or performance under, this
Agreement or any other Debt Document would be prohibited under U.S. law. 
 (c) Each Loan Party and each of its
subsidiaries is in compliance with (i) the Trading with the Enemy Act of 1917, Ch. 106, 40 Stat. 411, as amended, and each of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B Chapter V, as
amended) and any other enabling legislation or executive order relating thereto, (i) the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, P.L. 107-56, as amended, and
(iii) other federal or state laws relating to “know your customer” and anti-money laundering rules and regulations. No part of the proceeds of any Loan will be used directly or indirectly for any payments to any government official or
employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United
States Foreign Corrupt Practices Act of 1977. 
 (d) Each Loan Party has met the minimum funding requirements of
the United States Employee Retirement Income Security Act of 1974 (as amended, “ERISA”) with respect to any employee benefit plans subject to ERISA. No Loan Party is an “investment company” or a company
“controlled” by an “investment company” within the meaning of the Investment Company Act of 1940. No Loan Party is engaged principally, or as one of the important activities, in the business of extending credit for the purpose of
purchasing or carrying margin stock (within the meaning of Regulations T, U and X of the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”). 

5.9. Intellectual Property. The Intellectual Property is and will remain free and clear of all liens, claims and encumbrances of
any kind whatsoever, except for Permitted Liens described in clauses (b)(i), (e) and (f) of Section 5.7 and any liens of the Trust in the Royalty Collateral. No Loan Party has nor will it enter into any other agreement or financing
arrangement (other than the Royalty Agreements) in which a negative pledge in such Loan Party’s Intellectual Property (other than any Royalty Collateral) is granted to any other party. As of the Closing Date and each date a Term Loan is
advanced to Borrower, no Loan Party has any interest in, or title to any registered Intellectual Property except as disclosed in the Perfection Certificate and as disclosed to the Agent in writing after the Closing Date in accordance with
Section 6.2. Upon filing of the Intellectual Property Security Agreements with the United States Patent and Trademark Office and the United States Copyright Office, as applicable, and the filing of appropriate financing statements, all action
necessary or desirable to protect and perfect Agent’s lien on each Loan Party’s Intellectual Property (to the extent not constituting Excluded Assets) shall have been duly taken. Each Loan Party owns or has rights to use all Intellectual
Property material to the conduct of its business as now or heretofore conducted by it or presently proposed to be conducted by it, without any actual or claimed infringement upon the rights of third parties. 

5.10. Solvency. Both before and after giving effect to each Term Loan, the transactions contemplated herein, and the payment and
accrual of all transaction costs in connection with the foregoing, each Loan Party is and will be Solvent. As used herein, “Solvent” means, with respect to a Loan Party on a particular date, that on such date (a) the fair value
of the property of such Loan Party is greater than the total amount of liabilities, including contingent liabilities, of such Loan Party; (b) the present fair salable value of the assets of such Loan Party is not less than the amount that will
be required to pay the probable liability of such Loan Party on its debts as they become absolute and matured; (c) such Loan Party does not intend to, and does not believe that it will, incur debts or liabilities beyond such Loan Party’s
ability to pay as such debts and liabilities mature; (d) such Loan Party is not engaged in a business or transaction, and is not about to engage in a business or transaction, for which such Loan

  
 15 

 
Party’s property would constitute an unreasonably small capital; and (e) such Loan Party is not “insolvent” within the meaning of Section 101(32) of the United States
Bankruptcy Code (11 U.S.C. § 101, et. seq), as amended from time to time. The amount of contingent liabilities (such as litigation, guaranties and pension plan liabilities) at any time shall be computed as the amount that, in light of all the
facts and circumstances existing at the time, represents the amount that can be reasonably be expected to become an actual or matured liability. 
 5.11. Taxes; Pension. All federal (and all material state and local) tax returns, reports and statements, including information returns, required by any governmental authority to be filed by each
Loan Party and its Subsidiaries have been filed with the appropriate governmental authority and all federal (and all material state and local) taxes, levies, assessments and similar charges have been paid prior to the date on which any fine,
penalty, interest or late charge may be added thereto for nonpayment thereof (or any such fine, penalty, interest, late charge or loss has been paid), excluding taxes, levies, assessments and similar charges or other amounts which are the subject of
a Permitted Contest. Proper and accurate amounts have been withheld by each Loan Party from its respective employees for all periods in compliance with applicable laws and such withholdings have been timely paid to the respective governmental
authorities. Each Loan Party has paid all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms, and no Loan Party has withdrawn from participation in, or has permitted partial
or complete termination of, or permitted the occurrence of any other event with respect to, any such plan, in each case which would reasonably be expected to result in any liability of a Loan Party, including any liability to the Pension Benefit
Guaranty Corporation or its successors or any other governmental authority. 
 5.12. Full Disclosure. Loan Parties hereby
confirm that all of the information disclosed on the Perfection Certificate is true, correct and complete as of the date of this Agreement and as of the date of each Term Loan. No representation, warranty or other statement made by or on behalf of a
Loan Party contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained therein not misleading, it being recognized by Agent and Lenders that the projections and forecasts provided by
Loan Parties in good faith and based upon reasonable and stated assumptions are not to be viewed as facts and that actual results during the period or periods covered by any such projections and forecasts may differ from the projected or forecasted
results. 
 6. AFFIRMATIVE COVENANTS. 
 6.1. Good Standing. Each Loan Party shall maintain its and each of its Subsidiaries’ existence and good standing in its jurisdiction of organization and maintain qualification in each
jurisdiction in which the failure to so qualify would reasonably be expected to have a Material Adverse Effect. Each Loan Party shall maintain, and shall cause each of its Subsidiaries to maintain, in full force all licenses, approvals and
agreements, the loss of which would reasonably be expected to have a Material Adverse Effect. “Subsidiary” means, with respect to a Loan Party, any entity the management of which is, directly or indirectly controlled by, or of which
an aggregate of more than 50% of the outstanding voting capital stock (or other voting equity interest) is, at the time, owned or controlled, directly or indirectly by, such Loan Party or one or more Subsidiaries of such Loan Party, and, unless the
context otherwise requires each reference to a Subsidiary herein shall be a reference to a Subsidiary of Borrower. 
 6.2.
Notice to Agent. Loan Parties shall provide Agent with (a) notice of the occurrence of any Default or Event of Default, promptly (but in any event within 3 days) after the date on which any officer of a Loan Party obtains knowledge of
the occurrence of any such event, (b) copies of all statements, reports and notices made available generally by any Loan Party to its securityholders or to any holders of Subordinated Indebtedness (in their capacity as holders of such
Subordinated Indebtedness), all notices sent to any Loan Party by the holders of any Subordinated Indebtedness, and all documents filed with the 

  
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Securities and Exchange Commission (“SEC”) or any securities exchange or governmental authority exercising a similar function, promptly, but in any event within 3 days of
delivering or receiving such information to or from such persons, (c) a report of any legal actions pending or threatened against any Loan Party or any Subsidiary that would reasonably be expected to result in damages or costs to any Loan Party
or any Subsidiary of $250,000 or more promptly, but in any event within 3 days, upon receipt of notice thereof, (d) at the time of the delivery of the monthly financial reporting for the months of March, June, September and December of each
calendar year as required pursuant to Section 6.3, a summary of any new applications or registrations that any Loan Party has made or filed in respect of any Intellectual Property or a change in status of any outstanding application or
registration, in each case since the prior such summary was delivered pursuant to this clause (d), and (e) notice of any amendments to, and copies of all material statements, reports and notices delivered to or by a Loan Party in connection
with, any Material Agreement promptly (but in any event within 3 Business Days) upon execution or receipt thereof. 
 6.3.
Financial Statements. Borrower shall deliver to Agent and Lenders (a) unaudited consolidated and, if available, consolidating balance sheets, statements of operations and cash flow statements with respect to the Parent and its
Subsidiaries within 45 days of each month end, in a form consistent with the form historically prepared by the Parent (and which is reasonably acceptable to Agent) and certified by Parent’s president, chief executive officer or chief financial
officer as fairly presenting in all material respects the financial condition and operating results of the Parent and its Subsidiaries as of the dates, and for the periods, indicated therein, subject in each case to normal quarter-end adjustments,
and (b) complete annual unaudited consolidated and, if available, consolidating financial statements with respect to the Parent and its Subsidiaries prepared under GAAP within 120 days after the end of each fiscal year ending on or after
December 31, 2010 (provided that such annual unaudited financial statements for the fiscal year ending December 31, 2010 shall be delivered 150 days after the end of such fiscal year). All financial statements delivered pursuant to this
Section 6.3 shall be accompanied by a compliance certificate, signed by the chief financial officer of Borrower, in the form attached hereto as Exhibit D, and a management discussion and analysis that includes a comparison to budget for
the respective fiscal period and a comparison of performance for such fiscal period to the corresponding period in the prior year. Borrower shall deliver to Agent and Lenders (i) as soon as available and in any event not later than 60 days
after the end of each fiscal year of Borrower, an annual operating plan for Borrower, on a consolidated and, if available, consolidating basis, approved by the Board of Directors of Borrower, for the current fiscal year, in form and substance
reasonably satisfactory to Agent and (ii) such budgets, sales projections, or other business, financial, corporate affairs and other information as Agent or any Lender may reasonably request from time to time. 

6.4. Insurance. Each Loan Party, at its expense, shall maintain, and shall cause each Subsidiary to maintain, insurance
(including, without limitation, comprehensive general liability, hazard, and business interruption insurance) with respect to all of its properties and businesses (including, the Collateral), in such amounts and covering such risks as is carried
generally in accordance with sound business practice by companies in similar businesses similarly situated and in any event with deductible amounts, insurers and policies that shall be reasonably acceptable to Agent. Borrower shall deliver to Agent
certificates of insurance evidencing such coverage, together with endorsements to such policies naming Agent as a lender loss payee or additional insured, as appropriate, in form and substance satisfactory to Agent. Each policy shall provide that
coverage may not be canceled or altered by the insurer except upon 30 days (or, in the case of non-payment of premiums, 10 days) prior written notice to Agent and shall not be subject to co-insurance. Each Loan Party appoints Agent as its
attorney-in-fact to make, settle and adjust all claims under and decisions with respect to such Loan Party’s policies of insurance, and to receive payment of and execute or endorse all documents, checks or drafts in connection with insurance
payments. Agent shall not act as such Loan Party’s attorney-in-fact unless an Event of Default has occurred and is continuing. The appointment of Agent as any Loan Party’s attorney in fact is

  
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a power coupled with an interest and is irrevocable until all of the Obligations are indefeasibly paid in full. Proceeds of insurance shall be applied, at the option of Agent, to repair or
replace the Collateral or to reduce any of the Obligations. 
 6.5. Taxes. Each Loan Party shall, and shall cause each
Subsidiary to, timely file all federal (and all material state and local) tax reports and pay and discharge all federal (and all material state and local) taxes, assessments and governmental charges or levies imposed upon it, or its income or
profits or upon its properties or any part thereof, before the same shall be in default and before the date on which penalties attach thereto, except to the extent such taxes, assessments and governmental charges or levies are the subject of a
Permitted Contest. 
 6.6. Agreement with Landlord/Bailee. Unless otherwise agreed to by the Agent in writing, each Loan
Party shall use reasonable best efforts to obtain and maintain Access Agreement(s) with respect to any real property on which (a) a Loan Party’s principal place of business, (b) a Loan Party’s books or records or
(c) Collateral with an aggregate value in excess of $50,000 is located (other than real property owned by such Loan Party). With respect to any real property described in the immediately preceding sentence where the Loan Parties have not
obtained an Access Agreement, each compliance certificate issued pursuant to Section 6.3 shall contain a certificate that no default or event of default exists under any lease applicable to such real property, and upon the request of Agent, the
Loan Parties shall deliver to Agent evidence in form reasonably satisfactory to Agent that the applicable Loan Party has made rental payments with respect to any such lease. 
 6.7. Protection of Intellectual Property. Each Loan Party shall take all necessary actions to: (a) protect, defend and maintain the validity and enforceability of its Intellectual Property to
the extent material to the conduct of its business now or heretofore conducted by it or proposed to be conducted by it, in each case as the applicable Loan Party in its reasonable discretion determines is appropriate, (b) promptly advise Agent
in writing of material infringements of its Intellectual Property and, should the Intellectual Property be material to such Loan Party’s business, take all appropriate actions to enforce its rights in its Intellectual Property against
infringement, misappropriation or dilution and to recover any and all damages for such infringement, misappropriation or dilution, (c) not allow any Intellectual Property material to such Loan Party’s business to be abandoned, forfeited or
dedicated to the public, and (d) notify Agent promptly, but in any event within 3 Business Days, if it knows or has reason to know that any application or registration relating to any patent, trademark or copyright (now or hereafter existing)
material to its business may become abandoned or dedicated, or if any adverse determination or development (including the institution of, or any such determination or development in, any proceeding in the United States Patent and Trademark Office,
the United States Copyright Office or any court) regarding such Loan Party’s ownership of any Intellectual Property material to its business, its right to register the same, or to keep and maintain the same. Each Loan Party shall remain liable
under each of its Intellectual Property licenses pursuant to which it is a licensee (“Licenses”) to observe and perform all of the conditions and obligations to be observed and performed by it thereunder. None of Agent or any Lender
shall have any obligation or liability under any such License by reason of or arising out of this Agreement, the granting of a lien, if any, in such License or the receipt by Agent (on behalf of itself and Lenders) of any payment relating to any
such License. None of Agent or any Lender shall be required or obligated in any manner to perform or fulfill any of the obligations of any Loan Party under or pursuant to any License, or to make any payment, or to make any inquiry as to the nature
or the sufficiency of any payment received by it or the sufficiency of any performance by any party under any License, or to present or file any claims, or to take any action to collect or enforce any performance or the payment of any amounts which
may have been assigned to it or which it may be entitled at any time or times. 

  
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 6.8. Special
Collateral Covenants. 
 (a) Each Loan Party shall remain in possession of its respective Collateral solely
at the location(s) specified on the Perfection Certificate; except that Agent, on behalf of itself and Lenders, shall have the right to possess (i) any chattel paper or instrument that constitutes a part of the Collateral, (ii) any other
Collateral in which Agent’s security interest (on behalf of itself and Lenders) may be perfected only by possession and (iii) any Collateral after the occurrence of an Event of Default in accordance with this Agreement and the other Debt
Documents. 
 (b) Each Loan Party shall (i) use the Collateral only in its trade or business,
(ii) maintain all of the Collateral in good operating order and repair, normal wear and tear excepted, and (iii) use and maintain the Collateral only in compliance with manufacturers’ recommendations and all applicable laws.

 (c) Agent and Lenders do not authorize and each Loan Party agrees it shall not (i) part with possession
of any of the Collateral (except to Agent (on behalf of itself and Lenders), for maintenance and repair or for a Permitted Disposition), or (ii) remove any of the Collateral from the continental United States. 

(d) Each Loan Party shall pay promptly when due all taxes, license fees, assessments and public and private charges levied
or assessed on any of the Collateral, on its use, or on this Agreement or any of the other Debt Documents. At its option, Agent may discharge taxes, liens, security interests or other encumbrances at any time levied or placed on the Collateral and
may pay for the maintenance, insurance and preservation of the Collateral and effect compliance with the terms of this Agreement or any of the other Debt Documents. Each Loan Party agrees to reimburse Agent, on demand, all costs and expenses
incurred by Agent in connection with such payment or performance and agrees that such reimbursement obligation shall constitute Obligations. 
 (e) Each Loan Party shall, at all times, keep accurate and complete records of the Collateral. 
 (f) Each Loan Party agrees and acknowledges that any third person who may at any time possess all or any portion of the Collateral shall be deemed to hold, and shall hold, the Collateral as the agent of,
and as pledge holder for, Agent (on behalf of itself and Lenders). Agent may at any time give notice to any third person described in the preceding sentence that such third person is holding the Collateral as the agent of, and as pledge holder for,
Agent (on behalf of itself and Lenders). 
 (g) Each Loan Party shall, during normal business hours, and in the
absence of a Default or an Event of Default, upon one Business Day’s prior notice, as frequently as Agent determines to be appropriate: (i) provide Agent (who may be accompanied by representatives of any Lender) and any of its officers,
employees and agents access to the properties, facilities, advisors and employees (including officers) of each Loan Party and to the Collateral, (ii) permit Agent (who may be accompanied by representatives of any Lender), and any of its
officers, employees and agents, to inspect, audit and make extracts from any Loan Party’s books and records (or at the request of Agent, deliver true and correct copies of such books and records to Agent), and (iii) permit Agent (who may
be accompanied by representatives of any Lender), and its officers, employees and agents, to inspect, audit, appraise, review, evaluate and make test verifications and counts of the Collateral of any Loan Party. Upon Agent’s request, each Loan
Party will promptly notify Agent in writing of the location of any Collateral. If a Default or 

  
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Event of Default has occurred and is continuing or if access is necessary to preserve or protect the Collateral as determined by Agent, each such Loan Party shall provide such access to Agent and
to each Lender at all times and without advance notice. Each Loan Party shall make available to Agent and its auditors or counsel, as quickly as is possible under the circumstances, originals or copies of all books and records that Agent may
reasonably request. 
 6.9. Further Assurances. Each Loan Party shall, upon request of Agent, furnish to Agent such
further information, execute and deliver to Agent such documents and instruments (including, without limitation, UCC financing statements) and shall do such other acts and things as Agent may at any time reasonably request relating to the perfection
or protection of the security interest created by this Agreement or for the purpose of carrying out the intent of this Agreement and the other Debt Documents. 
 6.10. Compliance with Law. Each Loan Party shall comply with all applicable statutes, rules, regulations, standards, guidelines, policies and orders administered or issued by any governmental
authority having jurisdiction over it or its business, except where the failure to comply would not reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect. 

7. NEGATIVE COVENANTS 

7.1. Liens. No Loan Party shall, and no Loan Party shall permit any of its Subsidiaries to, create, incur, assume or permit to
exist any lien, security interest, claim or encumbrance or grant any negative pledges on any Collateral, except for Permitted Liens and Permitted Dispositions. After the Royalty Agreements have been terminated, no Loan Party shall, and no Loan Party
shall permit any of its Subsidiaries to, (1) create, incur, assume or permit to exist any lien, security interest, claim or encumbrance on any assets that formerly constituted Royalty Collateral (other than Permitted Liens) or (2) grant
any negative pledges on any assets that formerly constituted Royalty Collateral. 
 7.2. Indebtedness. No Loan Party
shall, and no Loan Party shall permit any of its Subsidiaries to, directly or indirectly create, incur, assume, permit to exist, guarantee or otherwise become or remain directly or indirectly liable with respect to, any Indebtedness (as hereinafter
defined), except for (a) the Obligations, (b) Indebtedness existing on the date hereof and set forth on Schedule B to this Agreement, and any refinancings of such Indebtedness (other than any Subordinated Indebtedness) that do not increase
the principal amount of such Indebtedness, do not shorten the maturity thereof and are otherwise on terms no less favorable to the Loan Parties than those of the Indebtedness being refinanced, (c) Indebtedness consisting of capitalized lease
obligations and purchase money Indebtedness, in each case incurred by Borrower or any of its Subsidiaries to finance the acquisition, repair, improvement or construction of fixed or capital assets of such person, provided that (i) the aggregate
outstanding principal amount of all such Indebtedness does not exceed $1,000,000 at any time and (ii) the principal amount of such Indebtedness does not exceed the lower of the cost or fair market value of the property so acquired or built or
of such repairs or improvements financed with such Indebtedness (each measured at the time of such acquisition, repair, improvement or construction is made), (d) any Post-Closing Specified Equityholder Subordinated Indebtedness issued prior to
the advance of a Subsequent Term Loan in accordance with Section 4.2(c), provided that (i) such Post-Closing Specified Equityholder Subordinated Indebtedness is subject to the terms and conditions of the Specified Equityholder
Subordination Agreement and (ii) the documents governing such Post-Closing Specified Equityholder Subordinated Indebtedness provide that no payments may be made with respect thereto other than in accordance with the terms and conditions of the
Specified Equityholder Subordination Agreement, (e) additional secured or unsecured subordinated Indebtedness issued by Parent exclusively to HBM (or a fund or company controlled by HBM) on terms and conditions substantially similar to the
Post-Closing Specified Equityholder Subordinated Indebtedness (the “HBM Subordinated Indebtedness”), provided that (i) all such HBM Subordinated Indebtedness is subject to the terms and conditions of the Specified

  
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Equityholder Subordination Agreement and (ii) the documents governing such HBM Subordinated Indebtedness provide that no payments may be made with respect thereto other than in accordance
with the terms and conditions of the Specified Equityholder Subordination Agreement, (f) additional secured or unsecured subordinated Indebtedness issued by Parent to any holder on terms and conditions substantially similar to the Post-Closing
Specified Equityholder Subordinated Indebtedness (the “Other Subordinated Indebtedness”), provided that (i) on or before the date of the issuance of such Other Subordinated Indebtedness, the holders of such Indebtedness and
Agent shall have executed a Subordination Agreement substantially identical to the Specified Equityholder Subordination Agreement pursuant to which (1) all Other Subordinated Indebtedness is subordinated to the prior payment in full in cash of
all Obligations and (2) any liens on the Collateral or any other assets of any Loan Party securing any Other Subordinated Indebtedness are subordinated to all liens granted to Agent to secure the Obligations (the “Other Subordination
Agreement”) and (ii) the documents governing such Other Subordinated Indebtedness provide that no payments may be made with respect thereto other than in accordance with the terms and conditions of the Other Subordination Agreement,
and (g) Indebtedness owing by any Loan Party to another Loan Party, provided that (i) each Loan Party shall have executed and delivered to each other Loan Party a demand note (each, an “Intercompany Note”) to evidence such
intercompany loans or advances owing at any time by each Loan Party to the other Loan Parties, which Intercompany Note shall be in form and substance reasonably satisfactory to Agent and shall be pledged and delivered to Agent pursuant to the Pledge
Agreement as additional Collateral for the Obligations, (ii) any and all Indebtedness of any Loan Party to another Loan Party shall be subordinated to the Obligations pursuant to the subordination terms set forth in each Intercompany Note, and
(iii) no Default or Event of Default would occur either before or after giving effect to any such Indebtedness. The term “Indebtedness” means, with respect to any person, at any date, without duplication, (i) all
obligations of such person for borrowed money, (ii) all obligations of such person evidenced by bonds, debentures, notes or other similar instruments, or upon which interest payments are customarily made, (iii) all obligations of such
person to pay the deferred purchase price of property or services, but excluding obligations to trade creditors incurred in the ordinary course of business and not past due by more than 90 days, (iv) all capital lease obligations of such
person, (v) the principal balance outstanding under any synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet financing product, (vi) all obligations of such person to purchase securities (or
other property) which arise out of or in connection with the issuance or sale of the same or substantially similar securities (or property), (vii) all contingent or non-contingent obligations of such person to reimburse any bank or other person
in respect of amounts paid under a letter of credit or similar instrument, (viii) all equity securities of such person subject to repurchase or redemption otherwise than at the sole option of such person, (ix) all “earnouts” and
similar payment obligations of such person, (x) all indebtedness secured by a lien on any asset of such person, whether or not such indebtedness is otherwise an obligation of such person, (xi) all obligations of such person under any
foreign exchange contract, currency swap agreement, interest rate swap, cap or collar agreement or other similar agreement or arrangement designed to alter the risks of that person arising from fluctuations in currency values or interest rates, in
each case whether contingent or matured, and (xii) all obligations or liabilities of others guaranteed by such person. 

7.3. Dispositions. No Loan Party shall, and no Loan Party shall permit any of its Subsidiaries to, convey, sell, rent, lease,
sublease, mortgage, license, transfer or otherwise dispose of (collectively, “Transfer”) any of the Collateral or any Intellectual Property, except for the following (collectively, “Permitted Dispositions”):
(a) sales of inventory in the ordinary course of business, (b) dispositions by a Loan Party or any of its Subsidiaries of tangible assets for cash and fair value so long as (i) no Default or Event of Default exists at the time of such
disposition or would be caused after giving effect thereto and (ii) the fair market value of all such assets disposed of does not exceed $150,000 in any calendar year, (c) the Transfer of the “Assigned Interests” (as such term is
defined in the Royalty Assignment Agreement) pursuant to the terms and conditions of the Royalty Assignment Agreement, and (d) non-exclusive and exclusive licenses for the use of any Loan Party’s Intellectual Property in the course of such
Loan Party’s 

  
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business, so long as, with respect to each such license, (i) no Event of Default has occurred or is continuing at the time of such Transfer, (ii) the license constitutes an arms-length
transaction in the course of such Loan Party’s business (and in the case of an exclusive license, made in connection with a bona fide transaction and approved by the board of directors of the applicable Loan Party) and the terms of which do not
describe such license as a sale or assignment of any Loan Party’s Intellectual Property and do not restrict such Loan Party’s ability to pledge, grant a security interest in or lien on, or assign or otherwise Transfer any Intellectual
Property, (iii) in the case of an exclusive license or a non-exclusive license that must be approved by the board of directors of the applicable Loan Party, the applicable Loan Party delivers ten (10) days prior written notice and a brief
summary of the terms of the license to Agent, (iv) in the case of an exclusive license or a non-exclusive license that must be approved by the board of directors of the applicable Loan Party, the applicable Loan Party delivers to Agent copies
of the final executed licensing documents in connection with the license promptly upon consummation of the license and (v) all royalties, milestone payments or other proceeds arising from the licensing agreement are paid to a deposit account
that is governed by an Account Control Agreement. If requested by any Loan Party, Agent will promptly execute and deliver to such Loan Party a non-disturbance and attornment agreement in a form acceptable to Agent with respect to any license
described in clause (d) above after such Loan Party delivers a copy of such final draft or fully-executed license to Lender. 
 7.4. Change in Name, Location or Executive Office; Change in Business; Change in Fiscal Year. No Loan Party shall, and no Loan Party shall permit any of its Subsidiaries to, (a) change its
name or its state of organization without the prior written consent of Agent (such consent not to be unreasonably withheld), (b) relocate its chief executive office without 30 days prior written notification to Agent, (c) engage in any
business other than or reasonably related or incidental to the businesses currently engaged in by such Loan Party or Subsidiary, (d) cease to conduct business substantially in the manner conducted by such Loan Party or Subsidiary as of the date
of this Agreement or (e) change its fiscal year end. 
 7.5. Mergers or Acquisitions. No Loan Party shall merge or
consolidate, and no Loan Party shall permit any of its Subsidiaries to merge or consolidate, with or into any other person or entity (other than mergers of a Subsidiary into Borrower in which Borrower is the surviving entity) or acquire, or permit
any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another person or entity or all or substantially all of the assets constituting any line of business, division, branch, operating division or other unit
operation of another person or entity. 
 7.6. Restricted Payments. No Loan Party shall, and no Loan Party shall permit
any of its Subsidiaries to, (a) declare or pay any dividends or make any other distribution or payment on account of or redeem, retire, defease or purchase any capital stock (other than (1) the payment of dividends to Borrower and
(2) repurchases of Parent’s stock from former employees of Parent and Borrower resulting from the death, disability or retirement of such employees in an amount not to exceed $200,000 in any fiscal year for all such former employees),
(b) purchase, redeem, defease or prepay any principal of, premium, if any, interest or other amount payable in respect of any Indebtedness prior to its scheduled maturity (except for prepayments of Indebtedness not constituting Subordinated
Debt, so long as (1) the aggregate principal amount of such prepaid Indebtedness does not exceed $500,000 in any calendar year and (2) no Default or Event of Default has occurred and is continuing at the time of any such prepayment or
would result from such prepayment), (c) purchase or make any payment on or with respect to any Subordinated Indebtedness (except to the extent expressly permitted in the Specified Equityholder Subordination Agreement or the Other Subordination
Agreement, as applicable), (d) make any payment in respect of management fees or consulting fees (or similar fees) to any equityholder or other affiliate of Borrower or Parent, (e) make any payments to the Trust other than scheduled
periodic payments required to be made pursuant to the terms and conditions of the Royalty Assignment Agreement, (f) be a party to or bound by an agreement that restricts a Subsidiary from paying dividends or otherwise distributing

  
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property to Borrower, or (g) make any payments on account of intercompany Indebtedness permitted under Section 7.2(g) (except in accordance with the terms of the applicable Intercompany
Note then in effect with respect to such intercompany Indebtedness). 
 7.7. Investments. No Loan Party shall, and no
Loan Party shall permit any of its Subsidiaries to, directly or indirectly (a) acquire or own, or make any loan, advance or capital contribution (an “Investment”) in or to any person or entity (including without limitation to
any Subsidiary of the Borrower that is not a Loan Party, but excluding any loan permitted under the terms and conditions set forth in Section 7.2(g)), (b) acquire or create any Subsidiary, or (c) engage in any joint venture or
partnership with any other person or entity, other than: (i) Investments existing on the date hereof and set forth on Schedule B to this Agreement, (ii) Investments in cash and Cash Equivalents (as defined below), (iii) Investments by
the Parent in or to the Borrower, (iv) Investments pursuant to any investment policy adopted by the Borrower after the Closing Date and approved by the Agent, (v) Investments in the form of joint ventures, partnerships or equity
investments in other persons so long as such Investments (A) shall not exceed, with respect to the portion of such Investment payable in cash, $500,000 in the aggregate for all such Investments during the term hereof, (B) shall be
businesses substantially of the type ‘(or related to the type) engaged in by such Loan Parties as of the Closing Date and (C) no Default or Event of Default shall have occurred and be continuing at the time of any such Investment,
(vi) Investments of funds held exclusively in the Royalty Accounts, to the extent such Investments are made in accordance with the terms and conditions of the Royalty Lockbox Agreement, and (vii) loans or advances to employees of Borrower
or any of its Subsidiaries to finance travel, entertainment and relocation expenses and other ordinary business purposes in the ordinary course of business as presently conducted, provided that the aggregate outstanding principal amount of all loans
and advances permitted pursuant to this clause (v) shall not exceed $25,000 at any time (collectively, the “Permitted Investments”). The term “Cash Equivalents” means (v) any readily-marketable securities
(i) issued by, or directly, unconditionally and fully guaranteed or insured by the United States federal government or (ii) issued by any agency of the United States federal government the obligations of which are fully backed by the full
faith and credit of the United States federal government, (w) any readily-marketable direct obligations issued by any other agency of the United States federal government, any state of the United States or any political subdivision of any such
state or any public instrumentality thereof, in each case having a rating of at least “A-1” from S&P or at least “P-l” from Moody’s, (x) any commercial paper rated at least “A-1” by S&P or
“P-1” by Moody’s and issued by any entity organized under the laws of any state of the United States, (y) any U.S. dollar-denominated time deposit, insured certificate of deposit, overnight bank deposit or bankers’
acceptance issued or accepted by (i) Agent or (ii) any commercial bank that is (A) organized under the laws of the United States, any state thereof or the District of Columbia, (B) “adequately capitalized” (as defined
in the regulations of its primary federal banking regulators) and (C) has Tier 1 capital (as defined in such regulations) in excess of $250,000,000 or (z) shares of any United States money market fund that (i) has substantially all of
its assets invested continuously in the types of investments referred to in clause (v), (w), (x) or (y) above with maturities as set forth in the proviso below, (ii) has net assets in excess of $500,000,000
and (iii) has obtained from either S&P or Moody’s the highest rating obtainable for money market funds in the United States; provided, however, that the maturities of all obligations specified in any of clauses
(v), (w), (x) and (y) above shall not exceed 365 days. For the avoidance of doubt, “Cash Equivalents” does not include (and each Loan Party is prohibited from purchasing or purchasing participations in)
any auction rate securities or other corporate or municipal bonds with a long-term nominal maturity for which the interest rate is reset through a Dutch auction. 
 7.8. Transactions with Affiliates. No Loan Party shall, and no Loan Party shall permit any of its Subsidiaries to, directly or indirectly enter into or permit to exist any transaction with any
Affiliate (as defined below) of a Loan Party or any Subsidiary of a Loan Party except for (1) Subordinated Indebtedness and equity transactions with the Specified Equityholders (or any funds or companies

  
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controlled by the Specified Equityholders) that are not prohibited under the terms and conditions of this Agreement and (2) transaction that are in the ordinary course of such Loan
Party’s or such Subsidiary’s business, upon fair and reasonable terms that are no more favorable to such Affiliate than would be obtained in an arm’s length transaction. As used herein, “Affiliate” means, with respect
to a Loan Party or any Subsidiary of a Loan Party, (a) each person that, directly or indirectly, owns or controls 5% or more of the stock or membership interests having ordinary voting power in the election of directors or managers of such Loan
Party or such Subsidiary, and (b) each person that controls, is controlled by or is under common control with such Loan Party or such Subsidiary. 
 7.9. Compliance. No Loan Party shall, and no Loan Party shall permit any of its Subsidiaries to, (a) fail to comply with the laws and regulations described in clauses (b) or (c) of
Section 5.8 herein, (b) use any portion of the Term Loans to purchase or carry margin stock (within the meaning of Regulation U of the Federal Reserve Board) or (c) fail to comply in any material respect with, or violate in any
material respect any other law or regulation applicable to it. 
 7.10. Deposit Accounts and Securities Accounts. No Loan
Party shall directly or indirectly maintain or establish any deposit account or securities account (other than the Royalty Deposit Accounts, but subject to the last sentence of this Section 7.10, and other than any deposit accounts used
exclusively for payroll or withholding tax purposes), unless Agent, the applicable Loan Party or Loan Parties and the depository institution or securities intermediary at which the account is or will be maintained enter into a deposit account
control agreement or securities account control agreement, as the case may be, in form and substance satisfactory to Agent (an “Account Control Agreement”) (which agreement shall provide, among other things, that (i) such
depository institution or securities intermediary has no rights of setoff or recoupment or any other claim against such deposit or securities account (except as agreed to by Agent), other than for payment of its service fees and other charges
directly related to the administration of such account and for returned checks or other items of payment, and (ii) such depository institution or securities intermediary shall comply with all instructions of Agent without further consent of
such Loan Party or Loan Parties, as applicable, including, without limitation, an instruction by Agent to comply exclusively with instructions of the Agent with respect to such account (such notice, a “Notice of Exclusive
Control”)), prior to or concurrently with the establishment of such deposit account or securities account (or in the case of any such deposit account or securities account maintained as of the date hereof, within 30 days after the Closing
Date). Agent may only give a Notice of Exclusive Control with respect to any deposit account or securities account at any time at which an Event of Default has occurred and is continuing. Borrower shall create or maintain a dedicated deposit account
or accounts to be used exclusively for payroll or withholding tax purposes. The Royalty Deposit Accounts shall be dedicated exclusively to the receipt of royalty payments resulting from the license of the DepoDur and DepoCyt products. Borrower will
not permit any funds to remain on deposit in any Royalty Deposit Account except to the extent required pursuant to the Royalty Lockbox Agreement. If at any time (x) the Royalty Agreements are terminated or (y) the Royalty Agreements are
amended to permit Agent to obtain control of the Royalty Deposit Accounts, then the Borrower shall immediately cause such Royalty Deposit Accounts to become subject to an Account Control Agreement. 

7.11. Amendments to Other Agreements. No Loan Party shall amend, modify or waive any provision of (a) any Royalty Agreement
to modify (i) the scope of the Royalty Collateral or (ii) Section 5.11(c)(iv) of the Royalty Assignment Agreement, (b) any of such Loan Party’s organizational documents, unless the net effect of such amendment, modification
or waiver is not adverse in any material respect to any Loan Party, Agent or Lenders (it being agreed for the avoidance of doubt that any amendment or modification to the organizational documents of the Parent to permit the issuance of equity on
terms and conditions that are not prohibited under this Agreement shall not be considered adverse to any Loan Party, Agent or Lenders), or (c) any document relating to any of the Subordinated Indebtedness, in each case, without the prior
written consent of Agent. 

  
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 8. DEFAULT AND REMEDIES.

 8.1. Events of Default. Loan Parties shall be in default under this Agreement and each of the other Debt Documents
if (each of the following, an “Event of Default”): 
 (a) Borrower shall fail to pay
(i) any principal when due, or (ii) any interest, fees or other Obligations (other than as specified in clause (i)) within a period of 3 days after the due date thereof (other than on any Applicable Term Loan Maturity Date); 

(b) any Loan Party breaches any of its obligations under Section 6.1 (solely as it relates to maintaining its
existence), Section 6.2, Section 6.3, Section 6.4, or Article 7; 
 (c) any Loan Party breaches
any of its other obligations under any of the Debt Documents and fails to cure such breach within 30 days after the earlier of (i) the date on which an officer of such Loan Party becomes aware, or through the exercise of reasonable diligence
should have become aware, of such failure and (ii) the date on which notice shall have been given to such Loan Party from Agent; 
 (d) any warranty, representation or statement made or deemed made by or on behalf of any Loan Party in any of the Debt Documents or otherwise in connection with any of the Obligations shall be false or
misleading in any material respect, or any warranty, representation or statement made or deemed made by or on behalf of any VC Guarantor in the VC Guaranty shall be false or misleading in any material respect; 

(e) any of the Collateral with a value, individually or in the aggregate, in excess of $250,000 is subjected to
attachment, execution, levy, seizure or confiscation in any legal proceeding or otherwise, or if any legal or administrative proceeding is commenced against any Loan Party or any of the Collateral, which in the good faith judgment of Agent subjects
any of the Collateral to a material risk of attachment, execution, levy, seizure or confiscation, and such attachment, execution, levy, seizure or confiscation is not removed, discharged or rescinded, or no bond is posted or protective order
obtained to negate such risk, in each case within 20 days of the same; 
 (f) one or more judgments, orders or
decrees shall be rendered against any Loan Party or any Subsidiary of a Loan Party that exceeds by more than $500,000 any insurance coverage applicable thereto (to the extent the relevant insurer has been notified of such claim and has not denied
coverage therefor) and either (i) enforcement proceedings shall have been commenced by any creditor upon any such judgment, order or decree or (ii) such judgment, order or decree shall not have been vacated or discharged for a period of 10
consecutive days and there shall not be in effect (by reason of a pending appeal or otherwise) any stay of enforcement thereof; 
 (g) (i) any Loan Party, any Subsidiary of a Loan Party or any VC Guarantor shall generally not pay its debts as such debts become due, shall admit in writing its inability to pay its debts generally,
shall make a general assignment for the benefit of creditors, or shall cease doing business as a going concern, (ii) any proceeding shall be instituted by or against any Loan Party, any Subsidiary of a Loan Party or any VC Guarantor seeking to
adjudicate it a bankrupt or insolvent or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, composition of it or its debts or any similar order, in each case under any law relating to bankruptcy, insolvency
or reorganization or relief of debtors or seeking the entry of an order for relief or the appointment of a custodian, receiver, trustee, conservator, liquidating agent, liquidator, other similar official or other official with similar powers, in
each case for it or for any 

  
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substantial part of its property and, in the case of any such proceedings instituted against (but not by or with the consent of) such Loan Party, such Subsidiary or such VC Guarantor, either such
proceedings shall remain undismissed or unstayed for a period of 45 days or more or any action sought in such proceedings shall occur or (iii) any Loan Party, any Subsidiary of a Loan Party or any VC Guarantor shall take any corporate or
similar action or any other action to authorize any action described in clause (i) or (ii) above; 
 (h) a Material Adverse Effect has occurred; 
 (i) any VC Guarantor
breaches any of its obligations under the VC Guaranty; 
 (j) (i) any provision of any Debt Document shall
fail to be valid and binding on, or enforceable against, a Loan Party or VC Guarantor party thereto, or (ii) any Debt Document purporting to grant a security interest to secure any Obligation shall fail to create a valid and enforceable
security interest on any Collateral purported to be covered thereby or such security interest shall fail or cease to be a perfected lien with the priority required in the relevant Debt Document or (iii) any subordination provision set forth in
the Specified Equityholder Subordination Agreement, the Other Subordination Agreement or any other document evidencing or relating to the Subordinated Indebtedness shall, in whole or in part, terminate or otherwise fail or cease to be valid and
binding on, or enforceable against, any agent for or holder of the Subordinated Indebtedness (or such person shall so state in writing), or any Loan Party shall state in writing that any of the events described in clause (i),
(ii) or (iii) above shall have occurred; 
 (k) (i) any Loan Party or any Subsidiary
of a Loan Party defaults under any agreement related to or evidencing the Subordinated Indebtedness or any other Material Agreement (after any applicable grace period contained therein), (ii) (A) any Loan Party or any Subsidiary of a Loan
Party fails to make (after any applicable grace period) any payment when due (whether due because of scheduled maturity, required prepayment provisions, acceleration, demand or otherwise) on any Indebtedness (other than the Obligations) of such Loan
Party or such Subsidiary having an aggregate principal amount (including undrawn committed or available amounts and including amounts owing to all creditors under any combined or syndicated credit arrangement) of more than $500,000
(“Material Indebtedness”), (B) any other event shall occur or condition shall exist under any contractual obligation relating to any such Material Indebtedness, if the effect of such event or condition is to accelerate, or to
permit the acceleration of (without regard to any subordination terms with respect thereto), the maturity of such Material Indebtedness or (C) any such Material Indebtedness shall become or be declared to be due and payable, or be required to
be prepaid, redeemed, defeased or repurchased (other than by a regularly scheduled required prepayment), prior to the stated maturity thereof, or (iii) Borrower or any Subsidiary defaults (beyond any applicable grace period) under any
obligation for payments due or otherwise under any lease agreement that meets the criteria for the requirement of an Access Agreement under Section 6.6; 
 (l) A “Purchase Option Event” (as such term is defined in the Royalty Assignment Agreement) shall have occurred and the Trust shall have commenced the exercise of the purchase option pursuant to
Section 5.07 of the Royalty Assignment Agreement (or the Trust shall have given written notice to any Loan Party of its intention to exercise such purchase option), or any “Event of Default” (as such term is defined in the Royalty
Security Agreement) shall have occurred and the Trust shall have commenced the exercise of remedies under the Royalty Security Agreement (or the Trust shall have given written notice to any Loan Party of its intention to exercise such remedies); or

  
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 (m) (i)
either the chief executive officer or the chief financial officer of Borrower as of the date hereof shall cease to be involved in the day to day operations (including research development) or management of the business of Borrower, and a successor
of such officer reasonably acceptable to Agent is not appointed on terms reasonably acceptable to Agent within 180 days of such cessation or involvement, (ii) the Specified Equityholders (or any fund or company controlled by any of them) shall
cease to own and control all of the economic and voting rights associated with ownership of at least fifty-one percent (51%) of the outstanding capital stock of all classes of the Parent on a fully-diluted basis, (iii) Parent ceases to
directly own and control all of the economic and voting rights associated with the outstanding voting capital stock (or other voting equity interest) of Borrower, or (iv) Borrower ceases to own and control, directly or indirectly, all of the
economic and voting rights associated with the outstanding voting capital stock (or other voting equity interest) of each of its Subsidiaries. 
 8.2. Lender Remedies. Upon the occurrence and during the continuance of any Event of Default, Agent may, and at the written request of the Requisite Lenders shall, terminate the Commitments with
respect to further Term Loans and declare any or all of the Obligations to be immediately due and payable, without demand or notice to any Loan Party and the accelerated Obligations shall bear interest at the Default Rate pursuant to
Section 2.6, provided that, upon the occurrence of any Event of Default specified in Section 8.1(g) above, the Obligations shall be automatically accelerated. After the occurrence of an Event of Default, Agent shall have (on behalf of
itself and Lenders) all of the rights and remedies of a secured party under the UCC, and under any other applicable law. Without limiting the foregoing, Agent shall have the right to, and at the written request of the Requisite Lenders shall,
(a) notify any account debtor of any Loan Party or any obligor on any instrument which constitutes part of the Collateral to make payments to Agent (for the benefit of itself and Lenders), (b) with or without legal process, enter any
premises where the Collateral may be and take possession of and remove the Collateral from the premises or store it on the premises, (c) sell the Collateral at public or private sale, in whole or in part, and have the right to bid and purchase
at such sale, or (d) lease or otherwise dispose of all or part of the Collateral, applying proceeds from such disposition to the Obligations in accordance with Section 8.4. If requested by Agent, Loan Parties shall promptly assemble the
Collateral and make it available to Agent at a place to be designated by Agent. Agent may also render any or all of the Collateral unusable at a Loan Party’s premises and may dispose of such Collateral on such premises without liability for
rent or costs. Any notice that Agent is required to give to a Loan Party under the UCC of the time and place of any public sale or the time after which any private sale or other intended disposition of the Collateral is to be made shall be deemed to
constitute reasonable notice if such notice is given in accordance with this Agreement at least 5 days prior to such action. Effective only upon the occurrence and during the continuance of an Event of Default, each Loan Party hereby irrevocably
appoints Agent (and any of Agent’s designated officers or employees) as such Loan Party’s true and lawful attorney to: (i) take any of the actions specified above in this paragraph; (ii) endorse such Loan Party’s name on any
checks or other forms of payment or security that may come into Agent’s possession; (iii) settle and adjust disputes and claims respecting the accounts directly with account debtors, for amounts and upon terms which Agent determines to be
reasonable; and (iv) do such other and further acts and deeds in the name of such Loan Party that Agent may deem necessary or desirable to enforce its rights in or to any of the Collateral or to perfect or better perfect Agent’s security
interest (on behalf of itself and Lenders) in any of the Collateral. The appointment of Agent as each Loan Party’s attorney in fact is a power coupled with an interest and is irrevocable until the Termination Date. 

8.3. Additional Remedies. In addition to the remedies provided in Section 8.2 above, each Loan Party hereby grants to Agent
(on behalf of itself and Lenders) and any transferee of Collateral, for purposes of exercising its remedies as provided herein, an irrevocable, nonexclusive license (exercisable without payment of royalty or other compensation to any Loan Party) to
use, license or sublicense any Intellectual Property now owned or hereafter acquired by such Loan Party, and wherever the same may be 

  
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located, and including in such license access to all media in which any of the licensed items may be recorded or stored and to all computer software and programs used for the compilation or
printout thereof. Notwithstanding anything to the contrary in this Section 8.3, in no event shall Agent or Lenders have the right to license, sublicense or otherwise transfer any patents, trademarks or trade secrets of Borrower unless and until
an Event of Default shall have occurred and be continuing. 
 8.4. Application of Proceeds. Proceeds from any Transfer of
the Collateral, including, without limitation, the Intellectual Property (other than Permitted Dispositions), and all payments made to or proceeds of Collateral received by Agent during the continuance of an Event of Default may be applied to the
Obligations in Agent’s sole and absolute discretion. Borrower shall remain fully liable for any deficiency. 
 9. THE AGENT.

 9.1. Appointment of Agent. 
 (a) Each Lender hereby appoints GECC (together with any successor Agent pursuant to Section 9.9) as Agent under the Debt Documents and authorizes the Agent to (a) execute and deliver the
Debt Documents and accept delivery thereof on its behalf from Loan Parties, (b) take such action on its behalf and to exercise all rights, powers and remedies and perform the duties as are expressly delegated to the Agent under such Debt
Documents and (c) exercise such powers as are reasonably incidental thereto. The provisions of this Article 9 are solely for the benefit of Agent and Lenders and none of Loan Parties nor any other person shall have any rights as a third party
beneficiary of any of the provisions hereof. In performing its functions and duties under this Agreement and the other Debt Documents, Agent shall act solely as an agent of Lenders and does not assume and shall not be deemed to have assumed any
obligation toward or relationship of agency or trust with or for any Loan Party or any other person. Agent shall have no duties or responsibilities except for those expressly set forth in this Agreement and the other Debt Documents. The duties of
Agent shall be mechanical and administrative in nature and Agent shall not have, or be deemed to have, by reason of this Agreement, any other Debt Document or otherwise a fiduciary or trustee relationship in respect of any Lender. Except as
expressly set forth in this Agreement and the other Debt Documents, Agent shall not have any duty to disclose, and shall not be liable for failure to disclose, any information relating to Borrower or any of its Subsidiaries that is communicated to
or obtained by GECC or any of its affiliates in any capacity. 
 (b) Without limiting the generality of clause
(a) above, Agent shall have the sole and exclusive right and authority (to the exclusion of the Lenders), and is hereby authorized, to (i) act as the disbursing and collecting agent for the Lenders with respect to all payments and
collections arising in connection with the Debt Documents (including in any other bankruptcy, insolvency or similar proceeding), and each person making any payment in connection with any Debt Document to any Lender is hereby authorized to make such
payment to Agent, (ii) file and prove claims and file other documents necessary or desirable to allow the claims of Agent and Lenders with respect to any Obligation in any proceeding described in any bankruptcy, insolvency or similar proceeding
(but not to vote, consent or otherwise act on behalf of such Lender), (iii) act as collateral agent for Agent and each Lender for purposes of the perfection of all liens created by the Debt Documents and all other purposes stated therein,
(iv) manage, supervise and otherwise deal with the Collateral, (v) take such other action as is necessary or desirable to maintain the perfection and priority of the liens created or purported to be created by the Debt Documents,
(vi) except as may be otherwise specified in any Debt Document, exercise all remedies given to Agent and the other Lenders with respect to the Collateral, whether under the Debt Documents, applicable law or otherwise and (vii) execute any
amendment, consent or waiver under the Debt 

  
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Documents on behalf of any Lender that has consented in writing to such amendment, consent or waiver; provided, however, that Agent hereby appoints, authorizes and directs each
Lender to act as collateral sub-agent for Agent and the Lenders for purposes of the perfection of all liens with respect to the Collateral, including any deposit account maintained by a Loan Party with, and cash and cash equivalents held by, such
Lender, and may further authorize and direct the Lenders to take further actions as collateral sub-agents for purposes of enforcing such liens or otherwise to transfer the Collateral subject thereto to Agent, and each Lender hereby agrees to take
such further actions to the extent, and only to the extent, so authorized and directed. Agent may, upon any term or condition it specifies, delegate or exercise any of its rights, powers and remedies under, and delegate or perform any of its duties
or any other action with respect to, any Debt Document by or through any trustee, co-agent, employee, attorney-in-fact and any other person (including any Lender). Any such person shall benefit from this Article 9 to the extent provided by Agent.

 (c) If Agent shall request instructions from Requisite Lenders or all affected Lenders with respect to any act
or action (including failure to act) in connection with this Agreement or any other Debt Document, then Agent shall be entitled to refrain from such act or taking such action unless and until Agent shall have received instructions from Requisite
Lenders or all affected Lenders, as the case may be, and Agent shall not incur liability to any person by reason of so refraining. Agent shall be fully justified in failing or refusing to take any action hereunder or under any other Debt Document
(a) if such action would, in the opinion of Agent, be contrary to law or any Debt Document, (b) if such action would, in the opinion of Agent, expose Agent to any potential liability under any law, statute or regulation or (c) if
Agent shall not first be indemnified to its satisfaction against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action. Without limiting the foregoing, no Lender shall have any right
of action whatsoever against Agent as a result of Agent acting or refraining from acting hereunder or under any other Debt Document in accordance with the instructions of Requisite Lenders or all affected Lenders, as applicable. 

9.2. Agent’s Reliance, Etc. Neither Agent nor any of its affiliates nor any of their respective directors, officers, agents,
employees or representatives shall be liable for any action taken or omitted to be taken by it or them hereunder or under any other Debt Documents, or in connection herewith or therewith, except for damages caused by its or their own gross
negligence or willful misconduct as finally determined by a court of competent jurisdiction. Without limiting the generality of the foregoing, Agent: (a) may treat the payee of any Note as the holder thereof until such Note has been assigned in
accordance with Section 10.1; (b) may consult with legal counsel, independent public accountants and other experts, whether or not selected by it, and shall not be liable for any action taken or omitted to be taken by it in good faith in
accordance with the advice of such counsel, accountants or experts; (c) shall not be responsible or otherwise incur liability for any action or omission taken in reliance upon the instructions of the Requisite Lenders, (d) makes no
warranty or representation to any Lender and shall not be responsible to any Lender for any statements, warranties or representations made in or in connection with this Agreement or the other Debt Documents; (e) shall not have any duty to
inspect the Collateral (including the books and records) or to ascertain or to inquire as to the performance or observance of any provision of any Debt Document, whether any condition set forth in any Debt Document is satisfied or waived, as to the
financial condition of any Loan Party or as to the existence or continuation or possible occurrence or continuation of any Default or Event of Default and shall not be deemed to have notice or knowledge of such occurrence or continuation unless it
has received a notice from Borrower or any Lender describing such Default or Event of Default clearly labeled “notice of default”; (f) shall not be responsible to any Lender for the due execution, legality, validity, enforceability,
effectiveness, genuineness, sufficiency or value of, or the attachment, perfection or priority of any lien created or purported to be created under or in connection with, any Debt Document or any other instrument or

  
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document furnished pursuant hereto or thereto; and (g) shall incur no liability under or in respect of this Agreement or the other Debt Documents by acting upon any notice, consent,
certificate or other instrument or writing (which may be by telecopy, telegram, cable or telex) believed by it to be genuine and signed or sent or otherwise authenticated by the proper party or parties. 

9.3. GECC and Affiliates. GECC shall have the same rights and powers under this Agreement and the other Debt Documents as any
other Lender and may exercise the same as though it were not Agent; and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated, include GECC in its individual capacity. GECC and its affiliates may lend money
to, invest in, and generally engage in any kind of business with, Borrower, any of Borrower’s Subsidiaries, any of their Affiliates and any person who may do business with or own securities of Borrower, any of Borrower’s Subsidiaries or
any such Affiliate, all as if GECC were not Agent and without any duty to account therefor to Lenders. GECC and its affiliates may accept fees and other consideration from Borrower for services in connection with this Agreement or otherwise without
having to account for the same to Lenders. Each Lender acknowledges the potential conflict of interest between GECC as a Lender holding disproportionate interests in the Term Loans and GECC as Agent, and expressly consents to, and waives, any claim
based upon, such conflict of interest. 
 9.4. Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon Agent or any other Lender and based on the financial statements referred to in Section 6.3 and such other documents and information as it has deemed appropriate, made its own credit and financial analysis
of each Loan Party and its own decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon Agent or any other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement. Each Lender acknowledges the potential conflict of interest of each other Lender as a result of Lenders holding disproportionate
interests in the Term Loans, and expressly consents to, and waives, any claim based upon, such conflict of interest. 
 9.5.
Indemnification. Lenders shall and do hereby indemnify Agent (to the extent not reimbursed by Loan Parties and without limiting the obligations of Loan Parties hereunder), ratably according to their respective Pro Rata Shares from and against
any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever that may be imposed on, incurred by, or asserted against Agent in any way relating to or
arising out of this Agreement or any other Debt Document or any action taken or omitted to be taken by Agent in connection therewith; provided that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements resulting from Agent’s gross negligence or willful misconduct as finally determined by a court of competent jurisdiction. Without limiting the foregoing, each Lender agrees
to reimburse Agent promptly upon demand for its Pro Rata Share of any out-of-pocket expenses (including reasonable counsel fees) incurred by Agent in connection with the preparation, execution, delivery, administration, modification, amendment or
enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement and each other Debt Document, to the extent that Agent is not reimbursed for such expenses
by Loan Parties. The provisions of this Section 9.5 shall survive the termination of this Agreement. 
 9.6. Successor
Agent. Agent may resign at any time by delivering notice of such resignation to the Lenders and the Borrower, effective on the date set forth in such notice. Upon any such resignation, the Requisite Lenders shall have the right to appoint a
successor Agent. If no successor Agent shall have been so appointed by the Requisite Lenders and shall have accepted such appointment within 30 days after the resigning Agent’s giving notice of resignation, then the resigning Agent may, on
behalf of Lenders, appoint a successor Agent, which shall be a Lender, if a Lender is willing to accept such 

  
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appointment, or otherwise shall be a commercial bank or financial institution or a subsidiary of a commercial bank or financial institution if such commercial bank or financial institution is
organized under the laws of the United States of America or of any State thereof and has a combined capital and surplus of at least $300,000,000. If no successor Agent has been appointed pursuant to the foregoing, within 30 days after the date such
notice of resignation was given by the resigning Agent, the Requisite Lenders shall thereafter perform all the duties of Agent hereunder until such time, if any, as the Requisite Lenders appoint a successor Agent as provided above. Upon the
acceptance of any appointment as Agent hereunder by a successor Agent, such successor Agent shall succeed to and become vested with all the rights, powers, privileges and duties of the resigning Agent. Upon the earlier of the acceptance of any
appointment as Agent hereunder by a successor Agent or the effective date of the resigning Agent’s resignation, the resigning Agent shall be discharged from its duties and obligations under this Agreement and the other Debt Documents, except
that any indemnity rights or other rights in favor of such resigning Agent shall continue. After any resigning Agent’s resignation hereunder, the provisions of this Section 9 shall inure to its benefit as to any actions taken or omitted to
be taken by it while it was acting as Agent under this Agreement and the other Debt Documents. 
 9.7. Setoff and Sharing of
Payments. In addition to any rights now or hereafter granted under applicable law and not by way of limitation of any such rights, upon the occurrence and during the continuance of any Event of Default and subject to Section 9.8(e), each
Lender is hereby authorized at any time or from time to time upon the direction of Agent, without notice to Borrower or any other person, any such notice being hereby expressly waived, to offset and to appropriate and to apply any and all balances
held by it at any of its offices for the account of Borrower (regardless of whether such balances are then due to Borrower) and any other properties or assets at any time held or owing by that Lender or that holder to or for the credit or for the
account of Borrower against and on account of any of the Obligations that are not paid when due. Any Lender exercising a right of setoff or otherwise receiving any payment on account of the Obligations in excess of its Pro Rata Share thereof shall
purchase for cash (and the other Lenders or holders shall sell) such participations in each such other Lender’s or holder’s Pro Rata Share of the Obligations as would be necessary to cause such Lender to share the amount so offset or
otherwise received with each other Lender or holder in accordance with their respective Pro Rata Shares of the Obligations. Borrower agrees, to the fullest extent permitted by law, that (a) any Lender may exercise its right to offset with
respect to amounts in excess of its Pro Rata Share of the Obligations and may sell participations in such amounts so offset to other Lenders and holders and (b) any Lender so purchasing a participation in the Term Loans made or other
Obligations held by other Lenders or holders may exercise all rights of offset, bankers’ lien, counterclaim or similar rights with respect to such participation as fully as if such Lender or holder were a direct holder of the Term Loans and the
other Obligations in the amount of such participation. Notwithstanding the foregoing, if all or any portion of the offset amount or payment otherwise received is thereafter recovered from the Lender that has exercised the right of offset, the
purchase of participations by that Lender shall be rescinded and the purchase price restored without interest. The term “Pro Rata Share” means, with respect to any Lender at any time, the percentage obtained by dividing (x) the
Commitment of such Lender then in effect (or, if such Commitment is terminated, the aggregate outstanding principal amount of the Term Loans owing to such Lender) by (y) the Total Commitment then in effect (or, if the Total Commitment is
terminated, the outstanding principal amount of the Term Loans owing to all Lenders). 
 9.8. Advances; Payments; Non-Funding
Lenders; Information; Actions in Concert. 
 (a) Advances; Payments. If Agent receives any payment for
the account of Lenders on or prior to 11:00 a.m. (New York time) on any Business Day, Agent shall pay to each applicable Lender such Lender’s Pro Rata Share of such payment on such Business Day. If Agent receives any payment for the account of
Lenders after 11:00 a.m. (New York time) on any Business Day, Agent shall pay to each applicable Lender such Lender’s Pro Rata Share of such payment on the 

  
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next Business Day. To the extent that any Lender has failed to fund any such payments and Term Loans (a “Non-Funding Lender”), Agent shall be entitled to set off the funding
short-fall against that Non-Funding Lender’s Pro Rata Share of all payments received from Borrower. 
 (b)
Return of Payments. 
 (i) If Agent pays an amount to a Lender under this Agreement in the belief or expectation that a
related payment has been or will be received by Agent from a Loan Party and such related payment is not received by Agent, then Agent will be entitled to recover such amount (including interest accruing on such amount at the Federal Funds Rate for
the first Business Day and thereafter, at the rate otherwise applicable to such Obligation) from such Lender on demand without setoff, counterclaim or deduction of any kind. 
 (ii) If Agent determines at any time that any amount received by Agent under this Agreement must be returned to a Loan Party or paid to any other person pursuant to any insolvency law or otherwise, then,
notwithstanding any other term or condition of this Agreement or any other Debt Document, Agent will not be required to distribute any portion thereof to any Lender. In addition, each Lender will repay to Agent on demand any portion of such amount
that Agent has distributed to such Lender, together with interest at such rate, if any, as Agent is required to pay to a Loan Party or such other person, without setoff, counterclaim or deduction of any kind. 

(c) Non-Funding Lenders. The failure of any Non-Funding Lender to make any Term Loan or any payment required by it
hereunder shall not relieve any other Lender (each such other Lender, an “Other Lender”) of its obligations to make such Term Loan, but neither any Other Lender nor Agent shall be responsible for the failure of any Non-Funding
Lender to make a Term Loan or make any other payment required hereunder. Notwithstanding anything set forth herein to the contrary, a Non-Funding Lender shall not have any voting or consent rights under or with respect to any Debt Document or
constitute a “Lender” (or be included in the calculation of “Requisite Lender” hereunder) for any voting or consent rights under or with respect to any Debt Document. At Borrower’s request, Agent or a person reasonably
acceptable to Agent shall have the right with Agent’s consent and in Agent’s sole discretion (but shall have no obligation) to purchase from any Non-Funding Lender, and each Non-Funding Lender agrees that it shall, at Agent’s request,
sell and assign to Agent or such person, all of the Commitments and all of the outstanding Term Loans of that Non-Funding Lender for an amount equal to the principal balance of all Term Loans held by such Non-Funding Lender and all accrued interest
and fees with respect thereto through the date of sale, such purchase and sale to be consummated pursuant to an executed Assignment Agreement (as defined below). 

(d) Dissemination of Information. Agent shall use reasonable efforts to provide Lenders with any notice of Default
or Event of Default received by Agent from, or delivered by Agent to Borrower, with notice of any Event of Default of which Agent has actually become aware and with notice of any action taken by Agent following any Event of Default; provided
that Agent shall not be liable to any Lender for any failure to do so, except to the extent that such failure is attributable to Agent’s gross negligence or willful misconduct as finally determined by a court of competent jurisdiction. Lenders
acknowledge that Borrower is required to provide financial statements to Lenders in accordance with Section 6.3 hereto and agree that Agent shall have no duty to provide the same to Lenders. 

  
 32 

  
 (e)
Actions in Concert. Anything in this Agreement to the contrary notwithstanding, each Lender hereby agrees with each other Lender that no Lender shall take any action to protect or enforce its rights arising out of this Agreement, the Notes or
any other Debt Documents (including exercising any rights of setoff) without first obtaining the prior written consent of Agent and Requisite Lenders, it being the intent of Lenders that any such action to protect or enforce rights under this
Agreement and the Notes shall be taken in concert and at the direction or with the consent of Agent and Requisite Lenders. 
 10.
MISCELLANEOUS. 
 10.1. Assignment. Subject to the terms of this Section 10.1, any Lender may make an assignment
to an assignee of, or sell participations in, at any time or times, the Debt Documents, its Commitment, Term Loans or any portion thereof or interest therein, including any Lender’s rights, title, interests, remedies, powers or duties
thereunder. Any assignment by a Lender shall: (i) except in the case of an assignment to a Qualified Assignee (as defined below), require the consent of each Lender (which consent shall not be unreasonably withheld, conditioned or delayed),
(ii) require the execution of an assignment agreement in form and substance reasonably satisfactory to, and acknowledged by, Agent (an “Assignment Agreement”); (iii) be conditioned on such assignee Lender representing to
the assigning Lender and Agent that it is purchasing the applicable Commitment and/or Term Loans to be assigned to it for its own account, for investment purposes and not with a view to the distribution thereof; (iv) be in an aggregate amount
of not less than $1,000,000, unless such assignment is made to an existing Lender or an affiliate of an existing Lender or is of the assignor’s (together with its affiliates’) entire interest of the Term Loans or is made with the prior
written consent of Agent; and (v) include a payment to Agent of an assignment fee of $3,500 (unless otherwise agreed by Agent). In the case of an assignment by a Lender under this Section 10.1, the assignee shall have, to the extent of
such assignment, the same rights, benefits and obligations as all other Lenders hereunder. The assigning Lender shall be relieved of its obligations hereunder with respect to its Commitment and Term Loans, as applicable, or assigned portion thereof
from and after the date of such assignment. Borrower hereby acknowledges and agrees that any assignment shall give rise to a direct obligation of Borrower to the assignee and that the assignee shall be considered to be a “Lender”. In the
event any Lender assigns or otherwise transfers all or any part of the Commitments and Obligations, upon the assignee’s or the assignor’s request, Agent shall request that Borrower execute new Notes in exchange for the Notes, if any, being
assigned. Agent may amend Schedule A to this Agreement to reflect assignments made in accordance with this Section. 
 As used
herein, “Qualified Assignee” means (a) any Lender and any affiliate of any Lender and (b) any commercial bank, savings and loan association or savings bank or any other entity which is an “accredited investor”
(as defined in Regulation D under the Securities Act) which extends credit or buys loans as one of its businesses, including insurance companies, mutual funds, lease financing companies and commercial finance companies, in each case, which has a
rating of BBB or higher from S&P and a rating of Baa2 or higher from Moody’s at the date that it becomes a Lender and in each case of clauses (a) and (b), which, through its applicable lending office, is capable of lending to Borrower
without the imposition of any withholding or similar taxes; provided that no person proposed to become a Lender after the Closing Date and determined by Agent to be acting in the capacity of a vulture fund or distressed debt purchaser shall
be a Qualified Assignee, and no person or Affiliate of such person proposed to become a Lender after the Closing Date and that holds any subordinated debt or stock issued by any Loan Party or its Affiliates shall be a Qualified Assignee. 

10.2. Notices. All notices, requests or other communications given in connection with this Agreement shall be in writing, shall be
addressed to the parties at their respective addresses set forth on the signature pages hereto below such parties’ name or in the most recent Assignment Agreement executed by any Lender (unless and until a different address may be specified in
a written notice to the 

  
 33 

 
other party delivered in accordance with this Section), and shall be deemed given (a) on the date of receipt if delivered by hand, (b) on the date of sender’s receipt of
confirmation of proper transmission if sent by facsimile transmission, (c) on the next Business Day after being sent by a nationally-recognized overnight courier, and (d) on the fourth Business Day after being sent by registered or
certified mail, postage prepaid. As used herein, the term “Business Day” means and includes any day other than Saturdays, Sundays, or other days on which commercial banks in New York, New York are required or authorized to be
closed. 
 10.3. Correction of Debt Documents. Agent may correct patent errors and fill in all blanks in this Agreement
or the Debt Documents consistent with the agreement of the parties. 
 10.4. Performance. Time is of the essence of this
Agreement. This Agreement shall be binding, jointly and severally, upon all parties described as the “Borrower” and their respective successors and assigns, and shall inure to the benefit of Agent, Lenders, and their respective successors
and assigns. 
 10.5. Payment of Fees and Expenses. Loan Parties agree, jointly and severally, to pay or reimburse upon
demand for all reasonable fees, costs and expenses incurred by Agent and Lenders in connection with (a) the investigation, preparation, negotiation, execution, administration of, or any amendment, modification, waiver or termination of, this
Agreement or any other Debt Document, (b) any legal advice relating to Agent’s rights or responsibilities under any Debt Document, (c) the administration of the Loans and the facilities hereunder and any other transaction contemplated
hereby or under the Debt Documents and (d) the enforcement, assertion, defense or preservation of Agent’s and Lenders’ rights and remedies under this Agreement or any other Debt Document, in each case of clauses (a) through (d),
including, without limitation, reasonable attorney’s fees and expenses, the allocated cost of in-house legal counsel, reasonable fees and expenses of consultants, auditors (including internal auditors) and appraisers and UCC and other corporate
search and filing fees and wire transfer fees. Borrower further agrees that such fees, costs and expenses shall constitute Obligations. This provision shall survive the termination of this Agreement. 

10.6. Indemnity. Each Loan Party shall and does hereby jointly and severally indemnify and defend Agent, Lenders, and their
respective successors and assigns, and their respective directors, officers, employees, consultants, attorneys, agents and affiliates (each an “Indemnitee”) from and against all liabilities, losses, damages, expenses, penalties,
claims, actions and suits (including, without limitation, related reasonable attorneys’ fees and the allocated costs of in-house legal counsel) of any kind whatsoever arising, directly or indirectly, which may be imposed on, incurred by or
asserted against such Indemnitee as a result of or in connection with this Agreement, the other Debt Documents or any of the transactions contemplated hereby or thereby (the “Indemnified Liabilities”); provided that, no Loan Party
shall have any obligation to any Indemnitee with respect to any Indemnified Liabilities to the extent such Indemnified Liabilities arise from the gross negligence or willful misconduct of such Indemnitee as determined by a final non-appealable
judgment of a court of competent jurisdiction. In no event shall any Indemnitee be liable on any theory of liability for any special, indirect, consequential or punitive damages (including, without limitation, any loss of profits, business or
anticipated savings). Each Loan Party waives, releases and agrees (and shall cause each other Loan Party to waive, release and agree) not to sue upon any such claim for any special, indirect, consequential or punitive damages, whether or not accrued
and whether or not known or suspected to exist in its favor. This provision shall survive the termination of this Agreement. 

10.7. Rights Cumulative. Agent’s and Lenders’ rights and remedies under this Agreement or otherwise arising are
cumulative and may be exercised singularly or concurrently. Neither the failure nor any delay on the part of Agent or any Lender to exercise any right, power or privilege under this Agreement shall operate as a waiver, nor shall any single or
partial exercise of any right, power or 

  
 34 

 
privilege preclude any other or further exercise of that or any other right, power or privilege. NONE OF AGENT OR ANY LENDER SHALL BE DEEMED TO HAVE WAIVED ANY OF ITS RESPECTIVE RIGHTS UNDER THIS
AGREEMENT OR UNDER ANY OTHER AGREEMENT, INSTRUMENT OR PAPER SIGNED BY BORROWER UNLESS SUCH WAIVER IS EXPRESSED IN WRITING AND SIGNED BY AGENT, REQUISITE LENDERS OR ALL LENDERS, AS APPLICABLE. A waiver on any one occasion shall not be construed as a
bar to or waiver of any right or remedy on any future occasion. 
 10.8. Entire Agreement; Amendments, Waivers.

 (a) This Agreement and the other Debt Documents constitute the entire agreement between the parties with
respect to the subject matter hereof and thereof and supersede all prior understandings (whether written, verbal or implied) with respect to such subject matter. Section headings contained in this Agreement have been included for convenience only,
and shall not affect the construction or interpretation of this Agreement. 
 (b) Except for actions expressly
permitted to be taken by Agent, no amendment, modification, termination or waiver of any provision of this Agreement or any other Debt Document, or any consent to any departure by Borrower therefrom, shall in any event be effective unless the same
shall be in writing and signed by Agent, Borrower and Lenders having more than (x) 50% of the aggregate Commitments of all Lenders or (y) if such Commitments have expired or been terminated, 50% of the aggregate outstanding principal
amount of the Term Loans (the “Requisite Lenders”). Except as set forth in clause (c) below, all such amendments, modifications, terminations or waivers requiring the consent of any Lenders shall require the written consent of
Requisite Lenders. 
 (c) No amendment, modification, termination or waiver of any provision of this Agreement or
any other Debt Document shall, unless in writing and signed by Agent and each Lender directly affected thereby: (i) increase or decrease any Commitment of any Lender or increase or decrease the Total Commitment (which shall be deemed to affect
all Lenders), (ii) reduce the principal of or rate of interest on any Obligation or the amount of any fees payable hereunder (other than waiving the imposition of the Default Rate), (iii) postpone the date fixed for or waive any payment of
principal of or interest on any Term Loan, or any fees hereunder, (iv) release all or substantially all of the Collateral, except as otherwise expressly permitted in the Debt Documents (which shall be deemed to affect all Lenders),
(v) subordinate the lien on all or substantially all of the Collateral granted in favor of the Agent securing the Obligations (which shall be deemed to affect all Lenders), (vi) release a Loan Party from, or consent to a Loan Party’s
assignment or delegation of, such Loan Party’s obligations hereunder and under the other Debt Documents, or any Guarantor from its guaranty of the Obligations or any VC Guarantor from its obligations under the VC Guaranty (which shall be deemed
to affect all Lenders) or (vii) amend, modify, terminate or waive Section 8.4, 9.7 or 10.8(b) or (c). 

(d) Notwithstanding any provision in this Section 10.8 to the contrary, no amendment, modification, termination or
waiver affecting or modifying the rights or obligations of Agent hereunder shall be effective unless signed by Borrower, Agent and Requisite Lenders. 
 (e) Each Lender hereby consents to the release by Agent of any Lien held by the Agent for the benefit of itself and the Lenders in any or all of the Collateral to secure the Obligations upon (i) the
occurrence of any Permitted Disposition pursuant to Section 7.3 and (ii) the termination of the Commitments and the payment and satisfaction in full of the Obligations. 

  
 35 

  
 10.9. Binding
Effect. This Agreement shall continue in full force and effect until the Termination Date; provided, however, that the provisions of this Section and Sections 2.3(e), 9.5, 10.5 and 10.6 and the other indemnities contained in the Debt
Documents shall survive the Termination Date. The surrender, upon payment or otherwise, of any Note or any of the other Debt Documents evidencing any of the Obligations shall not affect the right of Agent to retain the Collateral for such other
Obligations as may then exist or as it may be reasonably contemplated will exist in the future. This Agreement and the grant of the security interest in the Collateral pursuant to Section 3.1 shall automatically be reinstated if Agent or any
Lender is ever required to return or restore the payment of all or any portion of the Obligations (all as though such payment had never been made). 
 10.10. Use of Logo. Each Loan Party authorizes Agent to use its name, logo and/or trademark without notice to or consent by such Loan Party, in connection with certain promotional materials that
Agent may disseminate to the public. Agent shall provide a draft of any such promotional materials to Borrower for review and comment prior to the publication thereof. The promotional materials may include, but are not limited to, brochures, video
tape, internet website, press releases, advertising in newspaper and/or other periodicals, lucites, and any other materials relating the fact that Agent has a financing relationship with Borrower. Nothing herein obligates Agent to use a Loan
Party’s name, logo and/or trademark, in any promotional materials of Agent. Loan Parties shall not, and shall not permit any of its respective Affiliates to, issue any press release or other public disclosure (other than any document filed with
any governmental authority relating to a public offering of the securities of Borrower) using the name, logo or otherwise referring to General Electric Capital Corporation, GE Healthcare Financial Services, Inc. or of any of their affiliates, the
Debt Documents or any transaction contemplated herein or therein without at least two (2) Business Days prior written notice to and the prior written consent of Agent unless, and only to the extent that, Loan Parties or such Affiliate is
required to do so under applicable law and then, only after consulting with Agent prior thereto. 
 10.11. Waiver of Jury
Trial. EACH OF LOAN PARTIES, AGENT AND LENDERS UNCONDITIONALLY WAIVE ANY AND ALL RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, ANY OF THE OTHER DEBT DOCUMENTS, ANY OF THE INDEBTEDNESS SECURED
HEREBY, ANY DEALINGS AMONG LOAN PARTIES, AGENT AND/OR LENDERS RELATING TO THE SUBJECT MATTER OF THIS TRANSACTION OR ANY RELATED TRANSACTIONS, AND/OR THE RELATIONSHIP THAT IS BEING ESTABLISHED AMONG LOAN PARTIES, AGENT AND/OR LENDERS. THE SCOPE OF
THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT. THIS WAIVER IS IRREVOCABLE. THIS WAIVER MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING. THE WAIVER ALSO SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT, ANY OTHER DEBT DOCUMENTS, OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THIS TRANSACTION OR ANY RELATED TRANSACTION. THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE
COURT. 
 10.12. Governing Law. THIS AGREEMENT, THE OTHER DEBT DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER AND THEREUNDER SHALL IN ALL RESPECTS BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES OF SUCH STATE), INCLUDING ALL MATTERS OF CONSTRUCTION,
VALIDITY AND PERFORMANCE, REGARDLESS OF THE LOCATION OF THE COLLATERAL; PROVIDED, HOWEVER, THAT IF THE LAWS OF ANY JURISDICTION OTHER THAN NEW YORK SHALL GOVERN IN REGARD TO THE VALIDITY, PERFECTION OR EFFECT OF PERFECTION OF ANY LIEN OR IN REGARD
TO PROCEDURAL MATTERS AFFECTING 

  
 36 

 
ENFORCEMENT OF ANY LIENS IN COLLATERAL, SUCH LAWS OF SUCH OTHER JURISDICTIONS SHALL CONTINUE TO APPLY TO THAT EXTENT. IF ANY ACTION ARISING OUT OF THIS AGREEMENT OR ANY OTHER DEBT DOCUMENT IS
COMMENCED BY AGENT IN THE STATE COURTS OF THE STATE OF NEW YORK IN THE COUNTY OF NEW YORK OR IN THE U.S. DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, EACH LOAN PARTY HEREBY CONSENTS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUCH ACTION
AND TO THE LAYING OF VENUE IN THE STATE OF NEW YORK. NOTWITHSTANDING THE FOREGOING, THE AGENT AND LENDERS SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST ANY LOAN PARTY (OR ANY PROPERTY) IN THE COURT OF ANY OTHER JURISDICTION THE
AGENT OR THE LENDERS DEEM NECESSARY OR APPROPRIATE IN ORDER TO REALIZE ON THE COLLATERAL OR OTHER SECURITY FOR THE OBLIGATIONS. ANY PROCESS IN ANY SUCH ACTION SHALL BE DULY SERVED IF MAILED BY REGISTERED MAIL, POSTAGE PREPAID, TO LOAN PARTIES AT
THEIR ADDRESS DESCRIBED IN SECTION 10.2, OR IF SERVED BY ANY OTHER MEANS PERMITTED BY APPLICABLE LAW. 
 10.13.
Confidentiality. Each Lender and Agent agrees to use all reasonable efforts to maintain, in accordance with its customary practices, the confidentiality of information obtained by it pursuant to or in connection with any Debt Document and
designated in writing by any Loan Party as confidential, except that such information may be disclosed (a) with the Borrower’s consent, (b) to such Lender’s or Agent’s Related Persons (as defined below), as the case may be,
that are advised of the confidential nature of such information and are instructed to keep such information confidential in accordance with the terms hereof, (c) to the extent such information presently is or hereafter becomes (i) publicly
available other than as a result of a breach of this Section 10.13 or (ii) available to such Lender or Agent or any of their Related Persons, as the case may be, from a source (other than any Loan Party) not known by them to be subject to
disclosure restrictions, (d) to the extent disclosure is required by any applicable law, rule, regulation, court decree, subpoena or other legal, administrative, governmental or regulatory request, order or proceeding or otherwise requested or
demanded by any governmental authority, (e) to the extent necessary or customary for inclusion in league table measurements, (f) (i) to the National Association of Insurance Commissioners or any similar organization, any examiner or
any nationally recognized rating agency or (ii) otherwise to the extent consisting of general portfolio information that does not identify Loan Parties, (g) to current or prospective assignees or participants and to their respective
Related Persons, in each case to the extent such assignees, participants or Related Persons agree to be bound by provisions substantially similar to the provisions of this Section 10.13 (and such persons or entities may disclose information to
their respective Related Persons in accordance with clause (b) above), (h) to any other party hereto, and (i) in connection with the exercise or enforcement of any right or remedy under any Debt Document, in connection with any
litigation or other proceeding to which such Lender or Agent or any of their Related Persons is a party or bound, or to the extent necessary to respond to public statements or disclosures by Loan Parties or their Related Persons referring to a
Lender or Agent or any of their Related Persons. In the event of any conflict between the terms of this Section 10.13 and those of any other contractual obligation entered into with any Loan Party (whether or not a Debt Document), the terms of
this Section 10.13 shall govern. "Related Persons” means, with respect to any person or entity, each affiliate of such person or entity and each director, officer, employee, agent, trustee, representative, attorney, accountant and each
insurance, environmental, legal, financial and other advisor and other consultants and agents of or to such person or entity or any of its affiliates. 
 10.14. Counterparts. This Agreement may be executed in any number of counterparts and by different parties in separate counterparts, each of which when so executed shall be deemed to be an original
and all of which when taken together shall constitute one and the same agreement. Delivery of an executed signature page of this Agreement by facsimile transmission or electronic transmission shall be as effective as delivery of a manually executed
counterpart hereof. 
 [Signature Page Follows] 

  
 37 

  
 IN WITNESS WHEREOF, each Loan Parry,
Agent and Lenders, intending to be legally bound hereby, have duly executed this Agreement in one or more counterparts, each of which shall be deemed to be an original, as of the day and year first aforesaid. 

BORROWER: 
 PACIRA PHARMACEUTICALS
INC. 
  

					
	By:	 	 /s/ James Scibetta

		 	Name:	 	 James Scibetta

		 	Title:	 	 Chief Financial Officer

	
	GUARANTOR:
	
	PACIRA, INC.
		
	By:	 	 /s/ James Scibetta

		 	Name:	 	 James Scibetta

		 	Title:	 	 Chief Financial Officer

 Address For Notices For All Loan Parties: 
 c/o Pacira Pharmaceuticals Inc. 

10450 Science Center Drive 
 San Diego,
California 92121 
 Attention: Sandra Hargis  
 Phone: 858-625-2424 x. 3130  
 Facsimile: 858-625-2439 

LOAN AND SECURITY AGREEMENT 
 SIGNATURE PAGE 

  
 AGENT AND LENDER: 

GENERAL ELECTRIC CAPITAL CORPORATION 
  

					
	By:	 	 /s/ R. Hanes Whiteley

		 	Name:	 	 R. Hanes Whiteley

		 	Title:	 	Duly Authorized Signatory

 Address For Notices: 

General Electric Capital Corporation 
 c/o GE
Healthcare Financial Services, Inc. 
 Two Bethesda Metro Center, Suite 600 
 Bethesda, Maryland 20814 
 Attention: Senior Vice President of Risk - Life Science Finance

 Phone: (301) 961-1640 

Facsimile: (301) 664-9891 
 With a copy to:

 General Electric Capital Corporation 

c/o GE Healthcare Financial Services, Inc. 
 Two
Bethesda Metro Center, Suite 600 
 Bethesda, Maryland 20814 
 Attention: General Counsel 
 Phone: (301) 961-1640 

Facsimile: (301) 664-9866 

LOAN AND SECURITY AGREEMENT 
 SIGNATURE PAGE 

  
 SCHEDULE A

 COMMITMENTS 
  

									
	 Name of Lender
	  	Commitment of such Lender	 	  	Pro Rata Share	 
	 General Electric Capital Corporation
	  	$	11,250,000	  	  	 	100	% 
		  	 	 	 	  	 	 	 
	 TOTAL
	  	$	11,250,000	  	  	 	100	% 
		  	 	 	 	  	 	 	 

  
 SCHEDULE B

 DISCLOSURES 
 Existing Indebtedness 
 1. Obligations under and in connection with (i) that certain
Securities Purchase Agreement, dated January 22, 2009, by and among Pacira, Inc. and the investors party thereto, as amended, and (ii) the related transaction documents 
 2. Obligations under and in connection with (i) that certain Secured Note Purchase Agreement, dated June 1, 2009, by and among Pacira, Inc. and the investors party thereto, as amended, and
(ii) the related transaction documents 
 3. Obligations under and in connection with (i) that certain Secured Note Purchase
Agreement, dated March 10, 2010, by and among Pacira, Inc. and the investors party thereto and (ii) the related transaction documents 

4. Obligations under and in connection with (a) that certain Amended and Restated Royalty Interests Assignment Agreement, dated as of March 23,
2007 (the “Royalty Assignment Agreement”), by and between Pacira Pharmaceuticals, Inc. (formerly known as SkyePharma, Inc.), as seller, and Royalty Securitization Trust I (the “Trust”), as purchaser, (b) that certain Amended
and Restated Security Agreement, dated as of March 23, 2007 (the “Royalty Security Agreement”), by and between Pacira Pharmaceuticals, Inc. (formerly known as SkyePharma, Inc.) and Trust, and (c) that certain Amended and Restated
Lockbox Agreement, dated as of March 23, 2007 (the “Royalty Lockbox Agreement”), by and among Pacira Pharmaceuticals, Inc. (formerly known as SkyePharma, Inc.), Deutsche Bank Trust Pacira, Inc. in its capacity as custodian and
JPMorgan Chase Bank, N.A. 
 5. Obligations under and in connection with certain promissory notes issued to creditors of Pacira, Inc. and/or
Pacira Pharmaceuticals, Inc., including, without limitation, those set forth on Exhibit 6 to the Perfection Certificate 
 6. Obligations under
and in connection with (i) that certain Subordinated Secured Note Purchase Agreement, dated as of the closing date of the loan and security agreement with GECC, by and among Pacira, Inc. and Pacira Pharmaceuticals, Inc., and the investors party
thereto and (ii) the related transaction documents 
 7. (To the extent constituting “Indebtedness”) Obligations to Silicon
Valley from time to time associated with the use by Pacira, Inc.’s and Pacira Pharmaceuticals, Inc.’s employees of certain business credit cards issued by Silicon Valley Bank (the “Credit Card Obligations”) 

Existing Liens: 
  

					
	 Name of Holder of

Lien/Encumbrance
	 	 Description of Property

Encumbered
	 	 Entity

	Liens in favor of the holder of the obligations described in item 4 in “Existing Indebtedness” above	 	the Collateral as described in the Royalty Security Agreement (the “Royalty Collateral”)	 	 Pacira
 Pharmaceuticals,
Inc.

  
 - 1 -

					
	Liens in favor of the holders of the obligations described in item 2 in “Existing Indebtedness” above	 	Substantially all of the assets of Pacira, Inc. and Pacira Pharmaceuticals, Inc., except for the Royalty Collateral.	 	 Pacira, Inc. and Pacira

Pharmaceuticals, Inc.

			
	Liens in favor of the holders of the obligations described in item 3 in “Existing Indebtedness” above	 	Substantially all of the assets of Pacira, Inc. and Pacira Pharmaceuticals, Inc., except for the Royalty Collateral.	 	 Pacira, Inc. and Pacira

Pharmaceuticals, Inc.

			
	Liens in favor of the holders of the obligations described in item 6 in “Existing Indebtedness” above	 	Substantially all of the assets of Pacira, Inc. and Pacira Pharmaceuticals, Inc., except for the Royalty Collateral.	 	 Pacira, Inc. and Pacira

Pharmaceuticals, Inc.

			
	Lien of Silicon Valley Bank in that certain Certificate of Deposit No. 8800063623 (the “Certificate of Deposit”) issued by Silicon Valley Bank to Borrower which
secures the Credit Card Obligations	 	The Certificate of Deposit	 	 Pacira Pharmaceuticals,

Inc.

 Existing
Investments 
 1. Investments by Pacira, Inc. in Pacira Pharmaceuticals, Inc. 
 Material Agreements 
  

	1.	Assignment Agreement, dated February 9, 1994, amended April 15, 2004, by and between Pacira, Inc. and Research Development Foundation.

  

	2.	Acquisition Agreements dated March 30, 2007, between SkyePharma, Inc. and Pacira, Inc. (Blue Acquisition Corp), including Schedule 1.7 of Disclosure Schedules
identifying obligations of Pacira Pharmaceuticals, Inc. to SkyePharma PLC. 

  

	3.	(a) that certain Amended and Restated Royalty Interests Assignment Agreement, dated as of March 23, 2007, as amended by and between Borrower, as seller, and
Royalty Securitization Trust I (the “Trust”), as purchaser, (b) that certain Amended and Restated Security Agreement, dated as of March 23, 2007 (as amended), by and between Borrower and Trust, and (c) that certain Amended
and Restated Lockbox Agreement, dated as of March 23, 2007 (as amended), by and among Borrower, Deutsche Bank Trust Pacira, Inc. in its capacity as custodian and JPMorgan Chase Bank, N.A. 

 

	4.	Supply Agreement, dated June 30, 2003, between SkyePharma Inc. and MundiPharma Medical Pacira, Inc.. 

 

	5.	Distribution Agreement, dated June 30, 2003, between SkyePharma Inc. and MundiPharma Medical Pacira, Inc.. 

 

	6.	Distribution Agreement, dated July 27, 2005, between SkyePharma Inc. and MundiPharma International Holdings Limited.  

  
 - 2 -

  

	7.	Co-development, Collaboration and License Agreement, dated as of January 2, 2003, by and among Enzon Pharmaceuticals, Inc., Jagotec, AG, SkyePharma, Inc.
and SkyePharma PLC. 

  

	8.	Supply and Distribution Agreement, dated as of December 31, 2002, by and between Enzon Pharmaceuticals, Inc. and SkyePharma, Inc. 

 

	9.	Amended and Restated Strategic Licensing, Distribution and Marketing Agreement, dated October 15,2009, by and between Pacira, Inc. and EKR Therapeutics,
Inc. 

  

	10.	Amended and Restated Supply Agreement, dated October 15, 2009, by and between Pacira, Inc. and EKR Therapeutics, Inc. 

 

	11.	Strategic Marketing Agreement, dated September 27, 2007, by and between Pacira, Inc. and Flynn Pharma Limited. 

 

	12.	Supply Agreement, December 5, 2007, by and between Pacira, Inc. and Flynn Pharma Limited. 

 

	13.	Development and Marketing Agreement, dated October 31, 2005, by and between Pacira, Inc. and Maruho Co., LTD 

 

	14.	Development and License Agreement, dated March 31, 2008, by and between Amylin Pharmaceuticals, Inc. and Pacira, Inc.. 

 

	15.	Lease Agreement, dated August 17, 1993, amended July 2, 2009, by and between Pacira, Inc. and Health Care Properties, Inc. (HCP).

  

	16.	Lease Agreement, dated December 8, 1994, amended July 2, 2009, by and between Pacira, Inc. and LASDK, an affiliate of HCP. 

 

	17.	Services Agreement, dated June 30, 2009, amended February 26, 2010, by and between Pacira, Inc. and Almac Pharma Services. 

 

	18.	Services Agreement, dated June 30, 2009, by and between Pacira, Inc. and Almac Pharma Services. 

 

	19.	Services Agreement dated September 25, 2009, by and between Pacira, Inc. and Synteract. 

 

	20.	Services Agreement dated December 10, 2007 to August 21, 2008, by and between Pacira, Inc. and Synteract. 

 

	21.	Services Agreement dated March 1, 2009, amended March 5, 2010, by and between Pacira, Inc. and MPM Capital. 

 

	22.	Services Agreement, dated October 11, 2009, amended March 17, 2009, by and between Pacira, Inc. and Aquilo Partners. 

 

	23.	Professional Services Agreement dated June 21, 2007, by and between Pacira, Inc. and WilmerHale. 

 

	24.	Professional Services Agreement dated May 3, 2007, by and between Pacira, Inc. and Knobbe, Martens, Olsen & Bear. 

 

	25.	Insurance through various providers paid through insurance agent Barney & Barney. 

  
 - 3 -

  

	26.	Subordinated Indebtedness: 

  

	 	A.	June 1, 2009 

 Secured Note Purchase
Agreement, dated as of June 1, 2009 Amendment No. 1 to Secured Note Purchase Agreement, dated January 29, 2010 
 Security
Agreement, dated as of June 1,2009 
 Secured Promissory Notes issued pursuant to the foregoing Secured Note Purchase Agreement 

 

	 	B.	March 10, 2010 

 Secured Note
Purchase Agreement, dated as of March 10, 2010 
 Guaranty and Security Agreement, dated as of March 10 2010 

Intellectual Property Security Agreement, dated as of March 10, 2010 
 Secured Promissory Notes issued pursuant to the foregoing Secured Note Purchase Agreement 
  

	 	C.	January 22, 2009 

 Securities
Purchase Agreement, dated as of January 22, 2009 Amendment No. 1 to Securities Purchase Agreement, dated December 31, 2009 

Convertible Promissory Notes issued pursuant to the foregoing Securities Purchase Agreement 

 

	 	D.	April 30, 2010 - HBM Documents 

Subordinated Secured Note Purchase Agreement, dated as of April 30, 2010 
 Subordinated Guaranty and Security Agreement, dated as of April 30, 2010 
 Subordinated
Intellectual Property Security Agreement, dated as of April 30, 2010 
 Subordinated Secured Promissory Note, dated April 30, 2010, in
the aggregate principal amount of $1,875,000.00 issued to HBM Bio Ventures (Cayman) Ltd., and other Subordinated Secured Promissory Notes subsequently issued pursuant to such Subordinated Secured Note Purchase Agreement 

  
 - 4 -

  
 EXHIBIT A 

FORM OF PROMISSORY NOTE 
 April 30, 2010 
 FOR VALUE RECEIVED, PACIRA PHARMACEUTICALS, INC., a California corporation
located at the address stated below (“Borrower”), promises to pay to the order of GENERAL ELECTRIC CAPITAL CORPORATION or any subsequent holder hereof (each, a “Lender”), the principal sum of Eleven Million Two
Hundred Fifty Thousand and No/100 Dollars ($11,250,000) or, if less, the aggregate unpaid principal amount of all Term Loans made by Lender to or on behalf of Borrower pursuant to the Agreement (as hereinafter defined). All capitalized terms, unless
otherwise defined herein, shall have the respective meanings assigned to such terms in the Agreement. 
 This Promissory Note is issued pursuant
to that certain Loan and Security Agreement, dated as of April 30, 2010, among Borrower, the guarantors from time to time party thereto, General Electric Capital Corporation, as agent, and Lender (as amended, restated, supplemented or otherwise
modified from time to time, the “Agreement”), is one of the Notes referred to therein, and is entitled to the benefit and security of the Debt Documents referred to therein, to which Agreement reference is hereby made for a
statement of all of the terms and conditions under which the loans evidenced hereby were made. 
 The principal amount of the indebtedness
evidenced hereby shall be payable in the amounts and on the dates specified in the Agreement. Interest thereon shall be paid until such principal amount is paid in full at such interest rates and at such times as are specified in the Agreement. The
terms of the Agreement are hereby incorporated herein by reference. 
 All payments shall be applied in accordance with the Agreement. The
acceptance by Lender of any payment which is less than payment in full of all amounts due and owing at such time shall not constitute a waiver of Lender’s right to receive payment in full at such time or at any prior or subsequent time.

 AH amounts due hereunder and under the other Debt Documents are payable in the lawful currency of the United States of America. Borrower
hereby expressly authorizes Lender to insert the date value as is actually given in the blank space on the face hereof and on all related documents pertaining hereto. 
 This Note is secured as provided in the Agreement and the other Debt Documents. Reference is hereby made to the Agreement and the other Debt Documents for a description of the properties and assets in
which a security interest has been granted, the nature and extent of the security interest, the terms and conditions upon which the security interest was granted and the rights of the holder of the Note in respect thereof. 

Time is of the essence hereof. If Lender does not receive from Borrower payment in full of any Scheduled Payment or any other sum due under this Note or
any other Debt Document within 3 days after its due date, Borrower agrees to pay the Late Fee in accordance with the Agreement. Such Late Fee will be immediately due and payable, and is in addition to any other costs, fees and expenses that Borrower
may owe as a result of such late payment. 
 This Note may be voluntarily prepaid only as permitted under Section 2.4 of the Agreement.
After an Event of Default, this Note shall bear interest at a rate per annum equal to the Default Rate pursuant to Section 2.6 of the Agreement. 

  
 Borrower and all parties now or
hereafter liable with respect to this Note, hereby waive presentment, demand for payment, notice of nonpayment, protest, notice of protest, notice of dishonor, and all other notices in connection herewith, as well as filing of suit (if permitted by
law) and diligence in collecting this Note or enforcing any of the security hereof, and agree to pay (if permitted by law) all expenses incurred in collection, including reasonable attorneys’ fees and expenses, including without limitation, the
allocated costs of in-house counsel. 
 THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

 No variation or modification of this Note, or any waiver of any of its provisions or conditions, shall be valid unless such variation or
modification is made in accordance with Section 10.8 of the Agreement. Any such waiver, consent, modification or change shall be effective only in the specific instance and for the specific purpose given. 

IN WITNESS WHEREOF, Borrower has duly executed this Note as of the date first above written. 

 

			
	PACIRA PHARMACEUTICALS, INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

			
	Federal Tax ID #:	 	  

	Address: 10450 Science Center Drive
	San Diego, California 92121

  
 EXHIBIT B

 SECRETARY’S CERTIFICATE OF AUTHORITY 

[DATE] 

Reference is made to the Loan and Security Agreement, dated as of April 30, 2010 (as amended, restated, supplemented or otherwise
modified from time to time, the “Agreement”), among [Borrower Name], a [                    ] [corporation/limited liability
company/limited liability partnership/limited partnership] (the “Borrower”), the guarantors from time to time party thereto, General Electric Capital Corporation, a Delaware corporation (“GECC”), as a lender and as
agent (in such capacity, together with its successors and assigns in such capacity, “Agent”), and the other lenders signatory thereto from time to time (GECC and such other lenders, the “Lenders”). Capitalized terms
used but not defined herein are used with the meanings assigned to such terms in the Agreement. 
 I,
[                                        
], do hereby certify that: 
 (i) I am the duly elected, qualified and acting [Assistant] Secretary of [INSERT NAME OF LOAN PARTY]
(the “Company”); 
 (ii) attached hereto as Exhibit A is a true, complete and correct copies of the Company’s
[Certificate/Articles of Incorporation or Articles of Organization/Certificate of Formation] and the [Bylaws/LLC Agreement/Partnership Agreement], each of which is in full force and effect on and as of the date hereof; 

(iii) each of the following named individuals is a duly elected or appointed, qualified and acting officer of the Company who holds the offices set
opposite such individual’s name, and such individual is authorized to sign the Debt Documents to which the Company is a party and all other notices, documents, instruments and certificates to be delivered pursuant thereto, and the signature
written opposite the name and title of such officer is such officer’s genuine signature: 
  

					
	 Name
	 	 Title
	 	 Signature

	  
 	 	  
 	 	  
 
	  
 	 	  
 	 	  
 
	  
 	 	  
 	 	  
 

(iv) attached hereto as Exhibit B are true, complete and correct copies of resolutions adopted by the Board of Directors/Members of the Company
(the “Board”) authorizing the execution, delivery and performance of the Debt Documents to which the Company is a party, which resolutions were duly adopted by the Board on [DATE] and all such resolutions are in full force and
effect on the date hereof in the form in which adopted without amendment, modification, rescission or revocation; and 
 (v) the foregoing
authority shall remain in full force and effect, and Agent and each Lender shall be entitled to rely upon same, until written notice of the modification, rescission or revocation of same, in whole or in part, has been delivered to Agent and each
Lender, but no such modification, rescission or revocation shall, in any event, be effective with respect to any documents executed or actions taken in reliance upon the foregoing authority before said written notice is delivered to Agent and each
Lender. 
 [Signature Page Follows] 

  
 IN WITNESS WHEREOF, I have
hereunto set my hand as of the first date written above 
  

			
	  

	Name:	 	  

	Title:	 	[Assistant] Secretary

 The
undersigned does hereby certify on behalf of the Company that he/she is the duly elected or appointed, qualified and acting [TITLE] of the Company and that [NAME FROM ABOVE] is the duly elected or appointed, qualified and acting [Assistant]
Secretary of the Company, and that the signature set forth immediately above is his/her genuine signature. 
  

			
	  

	Name:	 	  

	Title:	 	  

  
 EXHIBIT B TO
SECRETARY’S CERTIFICATE OF AUTHORITY 
 FORM OF RESOLUTIONS 

BOARD RESOLUTIONS 
                     , 200     

WHEREAS, [            ], a
                                        
(“Borrower”) has requested that General Electric Capital Corporation, a Delaware corporation (“GECC”), as agent (in such capacity, the “Agent”) and lender, and certain other lenders (GECC and such
other lenders, collectively, the “Lenders”) provide a credit facility in an original principal amount not to exceed
$[                    ] (the “Credit Facility”); and 
 WHEREAS, the terms of the Credit Facility are set forth in a loan and security agreement by and among Borrower, the guarantors from time to time party thereto, Agent, and the Lenders and certain
related agreements, documents and instruments described in detail below; and 
 [WHEREAS, as a subsidiary of Borrower,
                    , the “Company”) will benefit from the making of the loan(s) to Borrower under the Credit Facility; and]

 WHEREAS, the Board of Directors of [Borrower] [Company] (the “Directors”) deems it advisable and in
the best interests of [Borrower] [Company] to execute, deliver and perform its obligations under those transaction documents described and referred to below. 
 NOW, THEREFORE, be it 
 RESOLVED, that the Credit Facility be, and it hereby is,
approved; and further 
 RESOLVED, that the form of Loan and Security Agreement (the “Loan and Security Agreement”), by
and among [Borrower], [Company,] the [other] guarantors from time to time party thereto, Agent and the Lenders, as presented to the Directors, be and it hereby is, approved and the [President, the Chief Executive Officer, Chief Financial Officer,
the Vice President or Treasurer] of [Borrower] [Company] (collectively, the “Proper Officers”) be, and each of them hereby is, authorized and directed on behalf of [Borrower] [Company] to execute and deliver to Agent the Loan and
Security Agreement, in substantially the form as presented to the Directors, with such changes as the Proper Officers may approve, such approval to be conclusively evidenced by execution and delivery thereof; and further 

[RESOLVED, that the form of Promissory Note (the “Note”), as presented to the Directors, be, and it hereby is, approved and the
Proper Officers be, and each of them hereby is, authorized and directed on behalf of Borrower to execute and deliver to Lender one or more promissory Notes, in substantially the form as presented to the Directors, with such changes as the Proper
Officers may approve, such approval to be conclusively evidenced by execution and delivery thereof; and further] 
 [RESOLVED, that the
form(s) of [Intellectual Property Security Agreement] [Pledge Agreement] [and] [Account Control Agreement] [(collectively, the “Security Documents”)] [Disbursement Letter,] [Guaranty,] [INCLUDE OTHER DOCUMENTS AS APPROPRIATE]
(together with the Security Documents, the “Ancillary Documents”), each as presented to the Directors, be, and each of them hereby is, approved and the Proper Officers be, and each of them hereby is, authorized and directed on
behalf of Borrower to execute and deliver to Agent each of the Ancillary Documents, in substantially the form as presented to the Directors, with such changes as the Proper Officers may approve, such approval to be conclusively evidenced by
execution and delivery thereof; and further] 

  
 RESOLVED, that the Proper
Officers be, and each of them hereby is, authorized and directed to execute and deliver any and all other agreements, certificates, security agreements, financing statements, indemnification agreements, instruments and documents (together with the
Loan and Security Agreement, [and] the Notes [, and the Ancillary Documents], the “Debt Documents”) and take any and all other further action, in each case, as may be required or which they may deem appropriate, on behalf of
[Borrower] [Company], in connection with the Credit Facility and carrying into effect the foregoing resolutions, transactions and matters contemplated thereby; and further 
 RESOLVED, that [Borrower] [Company] is hereby authorized to perform its obligations under the Debt Documents, [including, without limitation, the borrowing of any advances made under the Credit
Facility and] the granting of any security interest in [Borrower’s] [Company’s] assets contemplated thereby to secure [Borrower’s] [Company’s] obligations in connection therewith; and further 

RESOLVED, that in addition to executing any documents approved in the preceding resolutions, the Secretary or any Assistant Secretary of
[Borrower] [Company] may attest to such Debt Documents, the signature thereon or the corporate seal of [Borrower] [Company] thereon; and further 
 RESOLVED, that any actions taken by the Proper Officers prior to the date of these resolutions in connection with the transactions contemplated by these resolutions are hereby ratified and
approved; and further 
 RESOLVED, that these resolutions shall be valid and binding upon [Borrower] [Company]. 

  
 EXHIBIT C-l

 FORM OF LANDLORD CONSENT 
 [Landlord] 
 [Address] 
 [                    ,         ] 

Ladies and Gentlemen: 
 General
Electric Capital Corporation (together with its successors and assigns, if any, “Agent”) and certain other lenders (the “Lenders”) have entered into, or is about to enter into, a Loan and Security Agreement, dated
as of April 30, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “Agreement”) with [CUSTOMER NAME] (“Borrower”) [and
                    (“Company”)], pursuant to which [Borrower] [Company] has granted, or will grant, to Agent, on behalf of
itself and the Lenders, a security interest in certain assets of [Borrower] [Company], including, without limitation, all of [Borrower’s] [Company’s] cash, cash equivalents, accounts, books and records, goods, inventory, machinery,
equipment, furniture and trade fixtures (such as equipment bolted to floors), together with all addition, substitutions, replacements and improvements to, and proceeds, including, insurance proceeds, of the foregoing, but excluding building fixtures
(such as plumbing, lighting and HVAC systems (collectively, the “Collateral”). Some or all of the Collateral is, or will be, located at certain premises known as
[                    ] in the City or Town of
[                                        ,
County of
                                        
and State of                     ] (“Premises”), and [Borrower] [Company] occupies the Premises pursuant to a lease, dated as
of [DATE], between [Borrower] [Company], as tenant, and you, [NAME], as [owner/landlord/mortgagee/realty manager] (as amended, restated, supplemented or otherwise modified from time to time, the “Lease”). 

By your signature below, you hereby agree (and we shall rely on your agreement) that: (i) the Lease is in full force and effect and
you are not aware of any existing defaults thereunder, (ii) the Collateral is, and shall remain, personal property regardless of the method by which it may be, or become, affixed to the Premises; (iii) you agree to use your best efforts to
provide Agent with written notice of any default by [Borrower] [Company] under the Lease resulting in a termination of the Lease (“Default Notice”) and Agent shall have the right, but not the obligation to cure such default within
15 days following Agent’s receipt of such Default Notice, (iv) your interest in the Collateral and any proceeds thereof (including, without limitation, proceeds of any insurance therefor) shall be, and remain, subject and subordinate to
the interests of Agent and you agree not to levy upon any Collateral or to assert any landlord lien, right of distraint or other claim against the Collateral for any reason; (v) Agent, and its employees and agents, shall have the right, from
time to time, to enter into the Premises for the purpose of inspecting the Collateral; and (vi) Agent, and its employees and agents, shall have the right, upon any default by [Borrower] [Company] under the Agreement, to enter into the Premises
and to remove or otherwise deal with the Collateral, including, without limitation, by way of public auction or private sale (provided that, if Agent conducts a public auction or private sale of the Collateral at the Premises, Agent shall use
reasonable efforts to notify Landlord first and to hold such auction or sale in a manner that would not unduly disrupt Landlord’s or any other tenant’s use of the Premises). Agent agrees to repair or reimburse you for any physical damage
actually caused to the Premises by Agent, or its employees or agents, during any such removal or inspection (other than ordinary wear and tear), provided that it is understood by the parties hereto that Agent shall not be liable for any diminution
in value of the Premises caused by the removal or absence of the Collateral therefrom. You hereby acknowledge that Agent shall have no obligation to remove or dispose of the Collateral from the Premises and no action by Agent pursuant to this
Consent shall be deemed to be an assumption by Agent of any obligation under the Lease and, except as provided in the immediately preceding sentence, Agent shall not have any obligation to you. 

  
 You hereby acknowledge
and agree that [Borrower’s] [Company’s] granting of a security interest in the Collateral in favor of Agent, on behalf of itself and the Lenders, shall not constitute a default under the Lease nor permit you to terminate the Lease or
re-enter or repossess the Premises or otherwise be the basis for the exercise of any remedy available to you. 
 This Consent
and the agreements contained herein shall be binding upon, and shall inure to the benefit of, any successors and assigns of the parties hereto (including any transferees of the Premises). This Consent shall terminate upon the indefeasible payment of
Borrower’s indebtedness in full in immediately available funds and the satisfaction in full of Borrower’s [and Company’s] performance of its obligations under the Agreement and the related documents. 

This Consent and any amendments, waivers, consents or supplements hereto or in connection herewith may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument; signature pages may
be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document. Delivery of an executed signature page of this Consent or any delivery contemplated hereby
by facsimile or electronic transmission shall be as effective as delivery of a manually executed counterpart thereof. 

  
 We appreciate your
cooperation in this matter of mutual interest. 
  

			
	GENERAL ELECTRIC CAPITAL CORPORATION, as Agent
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	 General Electric Capital Corporation
 c/o GE Healthcare Financial Services, Inc.

	Two Bethesda Metro Center, Suite 600
	Bethesda, Maryland 20814
	Attention: Senior Vice President of Risk - Life Science Finance
	Phone: (301) 961-1640
	Facsimile: (301) 664-9891
	
	With a copy to:
	
	 General Electric Capital Corporation
 c/o GE Healthcare Financial Services, Inc.

	Two Bethesda Metro Center, Suite 600
	Bethesda, Maryland 20814
	Attention: General Counsel
	Phone: (301) 961-1640
	Facsimile: (301) 664-9866

 AGREED TO
AND ACCEPTED BY: 
  

			
	[NAME], as [owner/landlord/mortgagee/realty manager]
		
	By:	 	  

	Name:	 	  

	Title:	 	  

		
	Address:	 	
	
	AGREED TO AND ACCEPTED BY:
	
	[NAME OF LOAN PARTY]
		
	By:	 	  

	Name:	 	  

	Title:	 	  

Interest in the Premises (check applicable box) 
  

	 	 ̈	Owner 

  

	 	 ̈	Mortgagee 

  

	 	 ̈	Landlord 

  

	 	 ̈	Realty Manager 

 Address: 

  
 EXHIBIT C-2

 FORM OF BAILEE CONSENT 
 [Letterhead of GE Capital] 

            , 200     

 

	
	[NAME OF BAILEE].
	  

	  

 Dear Sirs: 
 Re: [Name of the Loan Party] (the “Company”)

 Please accept this letter as notice that we have entered into or may enter into financing arrangements with the Company
under which the Company has granted to us continuing security interests in substantially all personal property and assets of the Company and the proceeds thereof, including, without limitation, certain equipment owned by the Company held by you at
the manufacturing facility (the “Premises”) owned by you and located at [                    ] (the “Personal
Property”). 
 Please acknowledge that as a result of such arrangements, you are holding all of the Personal Property
solely for our benefit and subject only to the terms of this letter and our instructions; provided, however, that until further written notice from us, you are authorized to use and/or release any and all of the Personal Property in your
possession as directed by the Company in the ordinary course of business. The foregoing instructions shall continue in effect until we modify them in writing, which we may unilaterally do without any consent or approval from the Company. Upon
receipt of our instructions, you agree that (a) you will release the Personal Property only to us or our designee; (b) you will cooperate with us in our efforts to assemble, sell (whether by public or private sale), take possession of, and
remove all of the Personal Property located at the Premises; (c) you will permit the Personal Property to remain on the Premises for forty-five (45) days after your receipt of our instructions or at our option, to have the Personal
Property removed from the Premises within a reasonable time, not to exceed forty-five (45) days after your receipt of our instructions; (d) you will not hinder our actions in enforcing our liens on the Personal Property; and (e) after
receipt of our instructions, you will abide solely by our instructions with respect to the Personal Property, and not those of the Company. 
 You hereby waive and release in our favor: (a) any contractual lien, security interest, charge or interest and any other lien which you may be entitled to whether by contract, or arising at law or in
equity against any Personal Property; (b) any and all rights granted under any present or future laws to levy or distrain for rent or any other charges which may be due to you against the Personal Property; and (c) any and all other
claims, liens, rights of offset, deduction, counterclaim and demands of every kind which you have or may hereafter have against the Personal Property. 
 You agree that (i) you have not and will not commingle the Personal Property with any other property of a similar kind owned or held by you in any manner such that the Personal Properly is not
readily identifiable, (ii) you have not and will not issue any negotiable or non-negotiable documents or instruments relating to the Personal Property, and (iii) the Personal Property is not and will not be deemed to be fixtures.

  
 Notwithstanding the
foregoing, all of your charges of any nature whatsoever shall continue to be charged to and paid by the Company and we shall not be liable for such charges. 
 You hereby authorize us to file at any time such financing statements naming you as the debtor/bailee, Company as the secured party/bailor, and us as the Company’s assignee, indicating as the
collateral goods of the Company now or hereafter in your custody, control or possession and proceeds thereof, and including any other information with respect to the Company required under the Uniform Commercial Code for the sufficiency of such
financing statement or for it to be accepted by the filing office of any applicable jurisdiction (and any amendments or continuations with respect thereto). 
 The arrangement as outlined herein is to continue without modification, until we have given you written notice to the contrary. 
 EACH OF THE PARTIES HERETO HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS LETTER. 

Any notice(s) required or desired to be given hereunder shall be directed to the party to be notified at the address stated herein.

 The terms and conditions contained herein are to be construed and enforced in accordance with the laws of the State of New
York. 
 This terms and conditions contained herein shall inure to the benefit of and be binding upon the parties hereto and
their respective successors and permitted assigns. 

  
 The Company has signed below to
indicate its consent to and agreement with the foregoing arrangements, terms and conditions. By your signature below, you hereby agree to be bound by the terms and conditions of this letter. 

 

			
	Very truly yours,
	
	GENERAL ELECTRIC CAPITAL CORPORATION
		
	By:	 	  

	Name:	 	  

	Title: Duly Authorized Signatory
	
	 General Electric Capital Corporation
 c/o GE Healthcare Financial Services, Inc.

	Two Bethesda Metro Center, Suite 600
	Bethesda, Maryland 20814
	Attention: Senior Vice President of Risk - Life Science Finance
	Phone: (301) 961-1640
	Facsimile: (301) 664-9891
	
	With a copy to:
	
	 General Electric Capital Corporation
 c/o GE Healthcare Financial Services, Inc.

	Two Bethesda Metro Center, Suite 600
	Bethesda, Maryland 20814
	Attention: General Counsel
	Phone: (301) 961-1640
	Facsimile: (301) 664-9866

 Agreed to:

  

			
	[NAME OF LOAN PARTY]
		
	By:	 	  

	Name:	 	  

	Title:	 	  

			
	 Address:

	  

	  

	
	[NAME OF LOAN PARTY]
		
	By:	 	  

	Name:	 	  

	Title:	 	  

			
	 Address:

	  

	  

  
 EXHIBIT D

 COMPLIANCE CERTIFICATE 
 [DATE] 
 Reference is made to the Loan and Security Agreement, dated as of
April 30, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “Agreement”), among Pacira Pharmaceuticals, Inc., a
[            ] corporation (the “Borrower”), the guarantors from time to time party thereto, General Electric Capital Corporation, a Delaware corporation
(“GECC”), in its capacity as agent (in such capacity, together with its successors and assigns, in such capacity, the “Agent”) and lender, and the other lenders signatory thereto (GECC and such other lenders, the
“Lenders”). Capitalized terms used but not defined herein are used with the meanings assigned to such terms in the Agreement. 

I,
[                                        
], do hereby certify in my capacity as an officer of Borrower that: 
 (i) I am the duly elected, qualified and acting [TITLE] of Borrower;

 (ii) attached hereto as Exhibit A are [the monthly financial statements]/[annual audited financial statements]/[quarterly financial
statements] as required under Section 6.3 of the Agreement and that such financial statements are prepared in accordance with GAAP and are consistently applied from one period to the next except as explained in an accompanying letter or
footnotes; 
 (iii) with respect to any real property described in Section 6.6 of the Loan Agreement where the Loan Parties have not
obtained an Access Agreement, no default or event of default exists under any lease applicable to such real property; 
 (iv) no Default or
Event of Default has occurred under the Agreement which has not been previously disclosed, in writing, to Agent; and 
 (v) all representations
and warranties of the Loan Parties stated in the Debt Documents are true and correct in all material respects (without duplication of any materiality qualifier contained therein) on and as of the date hereof, except to the extent such
representations and warranties expressly relate to an earlier date, in which case such representations and warranties were true and correct in all material respects (without duplication of any materiality qualifier contained therein) on and as of
such earlier date. 
 IN WITNESS WHEREOF, I have hereunto set my hand as of the first date written above 

 

			
		 	  

	Name:	 	  

	Title:	 	  

  
 EXHIBIT E

 EPS Setup Form 

  
 EXHIBIT E

  

							
	EPS Setup Form	  	 Submit Via Fax:

ATTN: EPS Facilitator
 (203)
205-2193
	  		  	 GE Healthcare Financial Services

Phone: (800) 426-6346
 Fax: Fax: (203)
205-2193

	1. Sender Information:	  	Instructions To Enroll In EPS Plan:
	 Sender Name:

Pacira Pharmaceuticals, Inc.
  
	  	 A.
	  	 Complete sections 1-7

(signature and all other information is required)

	 Sender Phone Number:
 (858) 625-2424 x 3130
	  	 B.
	  	Include a copy of a voided check, on which is noted your bank, branch and account number
		  		  	 C.
	  	Please submit via Fax to: (203) 205-2193

 2.
Authorization Agreement for Pre-Arranged Payment Plan: 
  

	 	(a)	Pacira Pharmaceuticals, Inc. (“Borrower”) authorizes General Electric Capital Corporation (“Agent”) to initiate debit entries for
payment becoming due pursuant to the terms and conditions set forth in the Loan and Security Agreement, dated as of April 30, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “Agreement”),
among Borrower, the guarantors form time to time party thereto, Agent and the lenders signatory thereto. 

  

	 	(b)	Borrower understands that the basic term loan payment and all applicable taxes are solely its responsibility. If payment is not satisfied due to account closure,
insufficient funds, or cancellation of any required automated payment services, Borrower agrees to remit payment plus any applicable late charges, as set forth in the Agreement. 

 

	 	(c)	It is incumbent upon Borrower to give written notice to Agent of any changes to this authorization or the below referenced bank account information 10 days prior to
payment date; Borrower may revoke this authorization by giving 10 days written notice to Agent unless otherwise stipulated in the Agreement. 

  

	 	(d)	If a deduction is made in error, Borrower has the right to be paid within five business days by Agent the amount of the erroneous deduction, provided Agent is notified
in writing of such error. 

  

	 	(e)	Cosigner must also sign if the account is a joint account. 

  

							
	3. Agent Account Number(s): (Invoice Billing ID, 10-digit number formatted: 1234567-001)
				
	Account:	 	Account:	 	Account:	 	Account:
	Account:	 	Account:	 	Account:	 	Account:
			
	4. First Payment Debit Date (mm/dd/yy)	 	First Payment:	 	

  

							
	5. Complete ALL Bank and Borrower Information:
				
	BANK	  	Name of Bank or Financial Institution:	  	Bank Account Number:	  	 ABA Routing Number

(9-digit number)

				
	INFO	  	Address of Bank or Financial Institution:	  	City:	  	State:            Zip Code:

 

									
	 BORROWER
  

INFO
	  	 Signatures
	  	 Company
	  	 Contact

	  	 Signature of Authorized Signer: Date:

 
	  	 Company Name:
  
	  	 Contact Name:
  

	  	  
 Name of Joint Account Holder: (Please Print)

 
	  	  
 Company Address:

 
	  	  
 Contact Phone Number:

 

	  	  
 Signature of Joint Account Holder: Date:

 
	  	  
 City:

 
	  	  
 Contact Fax Number:

 

	  	  
 Name of Authorized Signer: (Please Print)

 
	  	  
 State:

 
	  	  
 Zip Code:

 
	  	  
 Contact email address:

 

 39. Would you like to have property taxes
paid via EPS on above accounts? 
 Check (X):
YES:   ̈        NO:   ̈ 

40. Would you like to receive a complimentary invoice?  
 Check (X):
YES:   ̈        NO:   ̈

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00180-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00180-of-00352.parquet"}]]