Document:

Exhibit 10.1

 

DEBT SETTLEMENT AND RELEASE AGREEMENT

 

This Debt Settlement
and Release Agreement (this “Agreement”) is made and entered into on October 25, 2020 by and among TITAN
PHARMACEUTICALS, INC., a Delaware corporation (“Titan”), L. MOLTENI & C. DEI F.LLI ALITTI SOCIETÀ
DI ESERCIZIO S.P.A., a company organized and existing under the laws of Italy (“Molteni”), HORIZON CREDIT II
LLC (“Horizon” and, together with Molteni, the “Lenders”) and Molteni as collateral agent
(“Collateral Agent”) for the Lenders. Collateral Agent and Lenders are sometimes referred to herein individually
as a “Creditor Party” and collectively as the “Creditor Parties.”

 

WHEREAS, Titan and
Creditor Parties are parties to that certain Amended and Restated Venture Loan and Security Agreement dated as of March 21,
2018, as amended by agreements dated September 10, 2019 and March 12, 2020 (the “Loan Agreement”).
Capitalized terms not otherwise defined herein shall have the meanings set forth in the Loan Agreement or on Annex 1 hereto;

 

WHEREAS, pursuant to
the Loan Agreement, Titan issued in favor of (1) Horizon an Amended and Restated Secured Promissory Note dated March 21,
2018 in the principal amount of $1,600,000 (the “Horizon Note”) and (2) Molteni a Secured Promissory Note
dated March 21, 2018 in the principal amount of $2,400,000 (the “Molteni Note” and together with the Horizon
Note, each a “Note” and collectively the “Notes”);

 

WHEREAS, pursuant to
(1) Section 2.2(g)(i) of the Loan Agreement, Titan agreed to pay to Horizon a payment in the amount of Five Hundred
Seventeen Thousand Seven Hundred Thirty-Nine and 00/100 Dollars ($517,739) (the “Horizon Final Payment”) and
(ii) Section 2.2.(g)(ii) of the Loan Agreement, Titan agreed to pay to Molteni a payment in the amount of Six Hundred
Fifty Thousand Seven Hundred Sixty-One and 00/100 Dollars ($650,761) (the “Molteni Final Payment”, and together
with the Horizon Final Payment, each a “Final Payment” and collectively, the “Final Payments”).
The outstanding principal amounts under each Note, the outstanding amount of each Final Payment, all accrued and unpaid interest
payable by Titan to Horizon and Molteni, and all other Obligations (as defined in the Loan Agreement) payable or owed to any Creditor
Party are collectively referred to herein as the “Obligations”.

 

WHEREAS, Titan has
informed Creditor Parties of Titan’s inability, due to financial constraints and other obstacles, to continue its current
operations and satisfy all of its Obligations to Creditor Parties under the Loan Agreement and the other Loan Documents (other
than the Warrant); and

 

WHEREAS, Titan and
Creditor Parties believe it is in their mutual best interests to settle all of Titan’s Obligations to Creditor Parties under
the Loan Agreement and the other Loan Documents (other than the Warrant) on the terms and subject to the conditions set forth in
this Agreement in order, among other things, to spare Creditor Parties the time, expense and uncertainty of exercising their rights
and remedies under the Loan Agreement, the other Loan Documents and applicable law; and

 

WHEREAS, Titan intends
to issue equity in a financing (the “Equity Financing”), a portion of the proceeds of which shall be used to
make the payments and deliver the assets expressly set forth in Section 1(a) below (such payments and assets collectively,
the “Settlement Consideration”) in exchange for Creditor Parties’ release of their security interests
in and liens on all of the Collateral.

    

     

    

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which is hereby expressly acknowledged with the intent to be legally
bound hereby, it is hereby agreed in full and final settlement of all Obligations under the Loan Agreement and the other Loan Documents
(other than the Warrant):

 

1.            Delivery
of Settlement Consideration.

 

(a)           On
the date that the Equity Financing is consummated (the “Closing Date”) and effective immediately following the
consummation of the Equity Financing:

 

(i)            Titan
shall pay Horizon One Million Four Hundred Thousand Dollars ($1,400,000) if the Closing Date is prior to November 1, 2020
or One Million Four Hundred Twelve Thousand Six Hundred Sixty-Seven Dollars ($1,412,667) if the Closing Date is on or after November 1,
2020 via wire transfer or ACH as per instructions provided by Horizon to the Company at least two business days prior to the Closing
Date.

 

(ii)           Titan
shall pay Molteni Two Hundred Thousand Dollars ($200,000) if the Closing Date is prior to November 1, 2020 or Two Hundred
Nineteen Thousand Dollars ($219,000) if the Closing Date is on or after to November 1, 2020 via wire transfer or ACH as per
instructions provided by Molteni to the Company at least two business days prior to the Closing Date.

 

(iii)           With
the exception of payment of the invoice in respect of products to be delivered to Molteni pursuant to purchase order number 4500007147
(the “Pending Invoice”), Titan hereby disclaims any and all of its rights and entitlements under the Asset Purchase,
Supply and Support Agreement by and between Titan and Molteni dated March 21, 2018, as amended by agreements dated August 3,
2018 September 10, 2019 and July 13, 2020, including any and all invoices issued or to be issued in connection with the
Molteni APA (collectively, the “Molteni APA”), and hereby discharges and releases Molteni from any further payment
obligations under the Molteni APA (including pursuant to Sections 7.1(b) and 7.2 therein) that have accrued prior to the Closing
Date or may accrue in the future;

 

(iv)          Titan
shall deliver to Molteni an invoice setting forth the value of and a bill of sale, substantially in the form attached hereto as
Exhibit A transferring all of Titan’s right, title and interest in and to the following assets:

 

(1)            All
fixtures, equipment and other assets owned by Titan, which are located at facilities owned or leased by DPT Laboratories, Inc.
(“DPT”), including, but not limited to all fixtures, equipment and other assets listed on Exhibit B
hereto (collectively, the “Product Equipment”);

 

(2)            All
inventory of EVA (as defined in the Molteni APA) and active pharmaceutical ingredients, in each case that are unexpired, wherever
located, each at the fair value of such inventory component;

 

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(3)            All
Know-how, Regulatory Documents, Data and Intellectual Property Related Documentation related to the Product and the Product Intellectual
Property (as defined below), in each case, in the Product Territory; and

 

(4)            the
Facilities and Equipment Agreement, dated January 10, 2014, by and between Titan and DPT (the “Equipment Agreement”);
provided, that (I) Titan represents and warrants to Molteni that the Project (as defined in the Equipment Agreement)
has been completed and no further payments are due to DPT other than the Maintenance Fees when accrued (as defined under the Equipment
Agreement) and (II) the assignment of the Equipment Agreement shall expressly exclude, and Molteni will not assume and will
not be obligated to assume or be obliged to pay, perform or otherwise discharge or in any other way be liable or responsible for,
any liabilities under the Equipment Agreement arising prior to the Closing Date, including any payment obligations to DPT.

 

(v)          Titan
shall deliver to Molteni intellectual property assignment agreements in the forms set forth on Exhibit C transferring
all of Titan’s right, title and interest in and to the following assets (the “Product Intellectual Property”):

 

(1)            All
patents and patent applications for the Product in the Product Territory, including those listed on Exhibit D hereto,
together any and all divisions, continuations, continuations in part, extensions, substitutions, renewals, registrations, revalidations,
reversions, reexaminations, reissues, additions or supplementary protection certificates and the like, of or to any of the foregoing
items, and all rights and priorities afforded under any applicable law with respect thereto;

 

(2)            All
right, title and interest in and to the “PROBUPHINE” trademark in the Product Territory, together with all goodwill
associated therewith, including (I) any trademark registrations and applications therefor in the Product Territory, including
those listed on Exhibit E, and (II) the exclusive right to register the “PROBUPHINE” trademark in
any jurisdiction or territory in the Product Territory; and

 

(3)            Any
other intellectual property rights and ancillary rights embodied in, or appurtenant to, the Product in the Product Territory, including
(I) the right to file a registration dossier for the Product in any jurisdiction or territory in the Product Territory, and
(II) any and all royalties, fees, income, payments, and other proceeds now or hereafter due or payable, and any and all claims
and causes of action with respect to any of the foregoing against a third party, whether accruing before, on, or after the date
hereof, including for past, present, and future infringement, dilution, misappropriation, violation, misuse, breach or default,
in each case, with respect to any and all of the foregoing.

 

(vi)         Subject
to receipt of the Ordered Products in accordance with the applicable purchase order and terms thereof, Molteni shall make payment
to Titan the amount set forth in the Pending Invoice.

 

(vii)        Titan
shall (x) pay all reasonable fees and expenses, including expenses incurred by Collateral Agent (“Lenders’ Expenses”)
prior to the Closing Date up to $25,000 in the aggregate and (y) pay all Lender’s Expenses incurred in connection with
the enforcement or attempt to enforce any of the obligations hereunder not performed by Titan when due.

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(viii)       Titan
shall provide each Lender with a solvency certificate, in form and substance reasonably satisfactory to the Collateral Agent, dated
as of the Closing Date, as to the solvency of Titan as of the Closing.

 

(b)           Subject
to Section 6 below, each Creditor Party acknowledges and agrees that effective on the Closing Date, but only after and subject
to the receipt by Molteni and Horizon of the full amount of all Settlement Consideration set forth in Section 1(a), all Obligations
of Titan to Creditor Parties under the Loan Agreement and the other Loan Documents (other than the Warrant) shall be deemed satisfied
and paid in full and no further amount or obligation will be owed, due or payable by Titan to any Creditor Party thereunder (other
than the indemnity obligations set forth in Section 10.3 of the Loan Agreement). Each Creditor Party represents and warrants
to Titan that no other person or entity has or has had any interests in the claims, demands, obligations, causes of action or matters
referenced in this Agreement; that it has the sole right and exclusive authority to execute this Agreement and to deliver and receive
the consideration specified herein and that it has not assigned or transferred or purported to assign or transfer to any person
or entity all or any part of or interest in any claim, actions, demands, causes of action, damages, fees, costs and liabilities
of any kind whatsoever, which is or which purports to be released or discharged herein.

 

2.            Release
of Security Interest and Lien. Subject to Section 6 below, each Creditor Party, effective on the Closing Date, but only
after and subject to the receipt by Molteni and Horizon of the full amount of all Settlement Consideration set forth in Section 1(a),
hereby (a) releases all security interests and liens which Titan may have granted to Creditor Parties under the Loan Agreement
and the other Loan Documents (other than the Warrant), (b) acknowledges that the Loan Agreement and the other Loan Documents
(other than the Warrant) are terminated and that Titan has no further Obligations to any Creditor Party thereunder (other than
the indemnity obligations set forth in Section 10.3 of the Loan Agreement), (c) authorizes Titan (or its agents, designees
or representatives), at Titan’s sole expense (including, but not limited to, fees and expenses of counsel to each of the
Lenders and the Collateral Agent), to file or register, as applicable, in the appropriate filing office UCC-3 termination statements
terminating all UCC-1 financing statements filed by one or more of the Creditor Parties in connection with the Loan Agreement and
the other Loan Documents (other than the Warrant), (d) acknowledges that it shall deliver to Titan all such executed documentation
as shall be reasonably requested by Titan and necessary to terminate all intellectual property security interest filings made by
one or more of the Creditor Parties with respect to Titan’s patents, trademarks and other intellectual property, if any,
each in a form approved by Titan for filing in the United States Patent and Trademark Office or similar recording office, including
without limitation the forms of releases attached hereto as Exhibit F, (e) acknowledges that it shall deliver
to Silicon Valley Bank, 3003 Tasman Drive, Santa Clara, California 95054 all such documentation as shall be reasonably requested
by Titan and necessary to terminate any and all deposit account control agreements to which Titan and any Creditor Party are a
party and (f) acknowledges that it shall, at Titan’s sole expense, take all such additional actions which are reasonably
requested by Titan and necessary to evidence the release of Creditor Party’s security interest and liens in the Collateral.
The provisions of this paragraph shall remain in full force and effect regardless of any termination of the Obligations owing under
the Loan Agreement and the other Loan Documents.

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3.            General
Release.

 

(a)           Effective
on the Closing Date, but only after and subject to the receipt by Molteni and Horizon of the full amount of all Settlement Consideration
set forth in Section 1(a), and in consideration of the parties agreements contained in this Agreement and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, (w) subject to Section 6 below,
Titan fully and forever releases and discharges each Lender, and each of their respective (where applicable) agents, employees,
predecessors, representatives, subsidiaries, affiliates, parents, divisions, owners, officers, directors, attorneys, heirs, executors,
administrators, successors and assigns from and against all actions, proceedings, causes of action, claims for relief, demands,
rights, titles, interests, damages, losses, costs, expenses, disbursements (including attorneys’ fees), obligations, liabilities
and other claims of every nature whatsoever, made or asserted, known, unknown or suspect as of the date of this Agreement arising
out of or related to the Loan Agreement and the other Loan Documents (other than the Warrant), including any actions, proceedings,
causes of action, claims for relief, demands, rights, titles, interests, damages, losses, costs, expenses, disbursements (including
attorneys’ fees), obligations, liabilities and other claims of every nature whatsoever arising out of or related to the Loan
Agreement and the other Loan Documents (other than the Warrant), (x) subject to Section 6 below, each of Creditor Parties
fully and forever releases and discharges Titan and its agents, employees, predecessors, representatives, subsidiaries, affiliates,
parents, divisions, owners, officers, directors, attorneys, heirs, executors, administrators, successors and assigns from and against
all actions, proceedings, causes of action, claims for relief, demands, rights, titles, interests, damages, losses, costs, expenses,
disbursements (including attorneys’ fees), obligations, liabilities and other claims of every nature whatsoever, made or
asserted, known, unknown or suspect as of the date of this Agreement arising out of or related to the Loan Agreement and the other
Loan Documents (other than the Warrant), including any actions, proceedings, causes of action, claims for relief, demands, rights,
titles, interests, damages, losses, costs, expenses, disbursements (including attorneys’ fees), obligations, liabilities
and other claims of every nature whatsoever arising out of or related to the Loan Agreement and the other Loan Documents (other
than the Warrant), provided that the foregoing releases do not release (1) any Creditor Party or Titan from enforcing its
respective rights under this Agreement, (2) Titan from its obligations under Section 10.3 of the Loan Agreement to the
extent such obligations survive termination of the Loan Agreement or (3) Titan or Molteni from its obligations under the Warrant
and (y) subject to Section 6 below, the Lenders fully and forever release and discharge each other, and each of their
respective (where applicable) agents, employees, predecessors, representatives, subsidiaries, affiliates, parents, divisions, owners,
officers, directors, attorneys, heirs, executors, administrators, successors and assigns from and against all actions, proceedings,
causes of action, claims for relief, demands, rights, titles, interests, damages, losses, costs, expenses, disbursements (including
attorneys’ fees), obligations, liabilities and other claims of every nature whatsoever, made or asserted, known, unknown
or suspect as of the date of this Agreement arising out of or related to the Loan Agreement and the other Loan Documents (other
than the Warrant), including any actions, proceedings, causes of action, claims for relief, demands, rights, titles, interests,
damages, losses, costs, expenses, disbursements (including attorneys’ fees), obligations, liabilities and other claims of
every nature whatsoever arising out of or related to the Loan Agreement and the other Loan Documents (other than the Warrant) and
(z) each Lender fully and forever releases and discharges the Collateral Agent and its (where applicable) agents, employees,
predecessors, representatives, subsidiaries, affiliates, parents, divisions, owners, officers, directors, attorneys, heirs, executors,
administrators, successors and assigns from and against all actions, proceedings, causes of action, claims for relief, demands,
rights, titles, interests, damages, losses, costs, expenses, disbursements (including attorneys’ fees), obligations, liabilities
and other claims of every nature whatsoever, made or asserted, known, unknown or suspect as of the date of this Agreement arising
out of or related to the Loan Agreement and the other Loan Documents (other than the Warrant) or such Lender’s relationship
with Titan, including any actions, proceedings, causes of action, claims for relief, demands, rights, titles, interests, damages,
losses, costs, expenses, disbursements (including attorneys’ fees), obligations, liabilities and other claims of every nature
whatsoever pursuant to the Loan Agreement and the other Loan Documents (other than the Warrant) or such Lender’s relationship
with Titan.

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(b)           Except
as otherwise set forth herein, (x) Titan fully and forever releases and discharges Molteni and its (where applicable) agents,
employees, predecessors, representatives, subsidiaries, affiliates, parents, divisions, owners, officers, directors, attorneys,
heirs, executors, administrators, successors and assigns from and against all actions, proceedings, causes of action, claims for
relief, demands, rights, titles, interests, damages, losses, costs, expenses, disbursements (including attorneys’ fees),
obligations, liabilities and other claims of every nature whatsoever, made or asserted, known, unknown or suspect as of the date
of this Agreement arising out of or related to the Molteni APA and (y) Molteni fully and forever releases and discharges Titan
and its (where applicable) agents, employees, predecessors, representatives, subsidiaries, affiliates, parents, divisions, owners,
officers, directors, attorneys, heirs, executors, administrators, successors and assigns from and against all actions, proceedings,
causes of action, claims for relief, demands, rights, titles, interests, damages, losses, costs, expenses, disbursements (including
attorneys’ fees), obligations, liabilities and other claims of every nature whatsoever, made or asserted, known, unknown
or suspect as of the date of this Agreement arising out of or related to the Molteni APA.

 

(c)           It
is expressly agreed that the claims released pursuant to this Agreement include all claims against individual employees, management
consultants, directors and officers of the parties whether or not such employees were acting within the course or scope of their
employment. For the avoidance of doubt, nothing set forth in this Agreement shall affect Molteni’s rights as an equityholder
of Titan. The provisions of this paragraph shall remain in full force and effect regardless of any termination of the Obligations
owing under the Loan Agreement and the other Loan Documents.

 

4.            Additional
Covenants

 

(a)           Effective
as of the date hereof, Titan hereby acknowledges and agrees that (i) Titan no longer holds the exclusive right to manufacture
and supply the Semi-Finished Product in the Territory for Molteni (in each case, as defined in the Molteni APA), (ii) Molteni
is hereby entitled to exercise any of its rights and remedies under Section 6.2 of the Molteni APA, and (iii) a “Conversion
Event” has occurred for the purposes of Section 2.13 of the Manufacturing Agreement, by and among Titan, DPT and Molteni,
dated August 2, 2013 and as amended on July 13, 2020 (the “DPT Agreement”). Titan shall not contest
Molteni’s delivery of a Conversion Notice (as defined in the DPT Amendment) to DPT.

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(b)          Titan
hereby represents, warrants and covenants that it has not granted, and shall not grant prior to the Closing Date, any right to
any person to use the Product Equipment. Titan acknowledges and agrees that Molteni shall have no obligation to allow any other
person to use the Product Equipment (other than DPT for the benefit of Molteni, and, subject to this Section 4(b), for the
benefit of Knight Therapeutics Inc. (“Knight”) on behalf of Titan), and Molteni shall have no obligation to
use the Product Equipment on behalf of, or for the benefit for, any other person other than Titan on behalf of Knight, subject
to this Section 4(b). The Product Equipment may be used by DPT on behalf of Knight solely as necessary for Titan to fulfill
its obligations under the Distribution and Sublicense Agreement by and between Titan (as assignee of Braeburn Pharmaceuticals, Inc.)
and Knight, dated February 1, 2016 as amended by agreement dated August 2, 2018 (the “Knight Agreement”);
provided, that (i) any such use of the Product Equipment does not affect DPT’s ability to perform its obligations
for Molteni under the DPT Agreement following the “Conversion Event” thereunder, (ii) neither Knight nor Titan
shall be permitted to have DPT use the Product Equipment to produce more than one batch of the Product for Knight per calendar
year; provided, further, that if Titan wishes to have DPT use the Product Equipment to produce more than one batch
of the Product for Knight in any one year period, Molteni and Titan shall discuss a separate agreement for such purchase on a case-by-case
basis, (iii) nothing in this Agreement shall obligate Molteni to maintain the upkeep of, or continue to own or control, the
Product Equipment, and Molteni shall be permitted to sell, abandon or fail to maintain the Product Equipment with no liability
in any respect to Titan or Knight, (iv) THE PRODUCT EQUIPMENT IS MADE AVAILABLE TO KNIGHT AND TITAN ON AN “AS IS”
BASIS, MOLTENI MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND WHATSOEVER, EXPRESS OR IMPLIED, IN CONNECTION WITH THE PRODUCT
EQUIPMENT AND MOLTENI EXPRESSLY DISCLAIMS ANY IMPLIED WARRANTIES OF TITLE, NON-INFRINGEMENT, MERCHANTABILITY, AND FITNESS FOR A
PARTICULAR PURPOSE WITH RESPECT THERETO, AND WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MOLTENI MAKES NO GUARANTY THAT THE
PRODUCT EQUIPMENT SHALL MEET TITAN’S OR KNIGHT’S REQUIREMENTS, OR THAT THE PRODUCT EQUIPMENT SHALL BE ERROR FREE, and
(v) Titan hereby forever releases and discharges Molteni from any liability to DPT, Titan, Knight or any third party arising
from the use of the Product Equipment to perform Titan’s obligations under the Knight Agreement or Knight’s use of
any proceeds from the Product Equipment, and Titan shall defend, indemnify and hold Molteni harmless from any claims, damages,
liabilities, penalties, fees, costs and expenses (including reasonable attorneys’ fees) arising from any claim made in connection
with the foregoing.

 

(c)           Titan
hereby acknowledges and agrees that (i) Molteni, on January 20, 2020 has delivered the purchase order nr. 4500007147
to Titan in accordance with the terms of the DPT Agreement and (ii) Titan has accepted such purchase order delivered by Molteni
in accordance with the terms of the DPT Agreement and shall, or shall cause DPT, to perform its obligations under such purchase
orders as specified therein (the “Ordered Products”).

 

(d)           Titan
shall provide Molteni prior written notice of any sale, assignment, transfer, granting or licensing of the right to make, have
made, sell, commercialize, market, manufacture or develop the Product, or any intellectual property associated therewith, in the
United States or Canada, to a third party.

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(e)            Except
with respect to the Knight Agreement, any agreement with a third party relating to the sale, assignment, transfer, granting or
licensing of the right to make, have made, sell, commercialize, market, manufacture or develop the Product, or any intellectual
property associated therewith in any jurisdiction outside of the Product Territory shall expressly require that such third party
(i) acknowledge and agree that it has no right to use the Product Equipment, or to cause DPT or Molteni to use the Product
Equipment for its benefit, and (ii) covenant that it shall not (A) challenge the validity or enforceability of any of
the Product Intellectual Property in the Product Territory, (B) otherwise interfere with or dispute Molteni’s rights
in any of the Product Intellectual Property, or Molteni’s right to make, have made, sell, commercialize, market, manufacture
or develop the Product, in the Product Territory, or (C) file, apply for or seek to register any intellectual property rights
or other rights in the Product in the Product Territory or that otherwise conflict with the Product Intellectual Property. Effective
upon the Closing Date, Titan shall not (W) make, have made, sell, commercialize, market, manufacture or develop the Product
anywhere in the Product Territory, (X) challenge the validity or enforceability of any of the Product Intellectual Property
in the Product Territory, (Y) otherwise interfere with or dispute Molteni’s rights in any of the Product Intellectual
Property, or Molteni’s right to make, have made, sell, commercialize, market, manufacture or develop the Product, in the
Product Territory, or (Z) file, apply for or seek to register any intellectual property rights or other rights in the Product
in the Product Territory or that otherwise conflict with the Product Intellectual Property.

 

(f)            Each
of Titan and Molteni shall use its best efforts to take all such action as may be necessary or appropriate to effectuate the transactions
contemplated by this Agreement, including the delivery of the Conversion Notice. If, at any time after the date hereof, any further
action is necessary or desirable to carry out the purposes of this Agreement, including effectuating the “Conversion Event”
under the DPT Agreement or the assignment of the Product Intellectual Property, upon the request of Molteni, Titan shall promptly
execute any documents, and take any actions reasonably required to give Molteni or its designee or assignee the full benefit of
this Agreement, and the transactions and assignments contemplated by this Agreement, including the execution and delivery of any
affidavits, declarations, oaths, exhibits, assignments, powers of attorney, or other documents, as may be necessary to effect,
evidence, perfect or record the assignment of the Product Intellectual Property in any applicable filing jurisdictions in the Product
Territory to Molteni or its designees or assignees. Titan hereby irrevocably grants Molteni power of attorney to execute and deliver
any of the documents referenced in this Agreement on Titan’s behalf in its name and to do all other lawfully permitted acts
necessary to exercise the “Conversion Event” under the DPT Agreement or transfer the Product Intellectual Property
to Molteni or its designee or assignee, to further the transfer, issuance, prosecution, and maintenance of all intellectual property
rights therein, and to perfect the transfer of the Product Intellectual Property in the Product Territory, in each case to the
fullest extent permitted by law. The power of attorney is coupled with an interest and shall not be impacted by a Titan’s
subsequent incapacity.

 

5.            As
of the date hereof, the aggregate liabilities of Titan (excluding any liabilities for Obligations owing under the Loan Agreement
and the other Loan Documents) do not exceed Three Million Dollars ($3,000,000).

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6.            Reinstatement.
Notwithstanding anything to the contrary contained herein, Titan acknowledges and agrees that if, at any time on or after the date
hereof, all or any portion of the Settlement Consideration is avoided, rescinded, set aside or otherwise must be returned or repaid
by any recipient whether in any bankruptcy, reorganization, insolvency or similar proceeding involving Titan (a) the Obligations
and indebtedness of Titan to the Collateral Agent and the Lenders (net of the amount of the Settlement Consideration which is not
so avoided, rescinded, set aside or otherwise returned or repaid by any such recipient), and any such liens in respect thereof
released pursuant to this Agreement, shall be reinstated and shall be enforceable against Titan and any of its successors and assigns
and (b) Sections 3(a)(w), 3(a)(x) and 3(a)(y) above shall be deemed ineffective. In such event, Titan shall remain
liable to such recipient for the amount so repaid or recovered to the same extent as if such amount had never originally been received
by the recipient, with interest accruing thereon from and after the date such amount is so repaid or recovered. The provisions
of this paragraph shall remain in full force and effect regardless of any termination of the Obligations owing under the Loan Agreement
and the other Loan Documents.

 

7.            This
Agreement may be executed in separate counterparts, which, together, shall constitute one and the same agreement. Any signature
delivered by a party electronically or by facsimile shall be deemed to be an original signature hereto.

 

8.            This
Agreement sets forth the entire understanding of the parties with respect to the subject matter of this Agreement. Neither of the
Creditor Parties nor Titan has made to the other party, with respect to the subject matter of this Agreement, any promise, representation
or warranty, oral or written, express or implied in fact or by law except as set forth in this Agreement. No party is entering
into this Agreement in reliance upon, or is concerned with the accuracy or completeness of anything, oral or written, expressed
or given to it by any other party, except as set forth in this Agreement.

 

9.            If,
at any time after the date of the execution of this Agreement, any provision of this Agreement shall be held to be illegal, void,
or unenforceable by a court of competent jurisdiction, such provision shall be of no force and effect. However, the illegality
or unenforceability of such provision shall have no effect upon, and shall not impair the enforceability of, any other provision
of this Agreement.

 

10.          This
Agreement shall inure to the benefit of and be binding upon the parties to this Agreement and their respective successors, assigns,
licensees, heirs, executors, administrators and legal representatives.

 

11.          Notwithstanding
any other terms herein, in the event that Titan has not completed the Equity Financing and delivered the Settlement Consideration
to Lenders as provided herein prior to December 31, 2020 (the “Outside Date”), this Agreement, except for
Section 4(a) and Section 4(c) hereof which shall survive and remain in full force and effect regardless of
whether or not the Equity Financing or the delivery of the Settlement Consideration occurs, shall terminate void ab initio
and such failure to complete the Equity Financing and deliver the Settlement Consideration to Lenders as provided herein shall
immediately constitute a Specified Breach under the Loan Agreement. In such case, all Obligations owed by Titan to Creditor
Parties under the Loan Agreement and the other Loan Documents (including, for the avoidance of doubt, all accrued and unpaid interest
from the date of this Agreement to and including the Outside Date), all security interest granted to the Collateral Agent or any
Lender and all liens with respect to any Collateral, in each case, under the Loan Agreement and the other Loan Documents shall
remain unaffected and shall immediately become enforceable against Titan in accordance with the terms of the Loan Agreement and
the other Loan Documents.

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12.          This
Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York. THE PARTIES HERETO
CONSENT TO THE JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE STATE OF NEW YORK, SITTING IN THE CITY OF NEW YORK AND
BOROUGH OF MANHATTAN AND FURTHER CONSENT THAT ANY PROCESSOR NOTICE OR OTHER APPLICATION TO ANY COURT OR A JUDGE THEREOF MAY BE
SERVED WITHIN OR WITHOUT THE STATE OF NEW YORK BY CERTIFIED MAIL OR BY PERSONAL SERVICE, PROVIDED A REASONABLE TIME FOR APPEARANCE
IS ALLOWED. EACH PARTY HERETO HEREBY WAIVES ITS RIGHT TO TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT
OF ANY OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF
DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS.

 

13.          No
amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed by Titan and Molteni;
provided, however, that notwithstanding the foregoing, any amendment to the rights or obligations of Horizon shall
require the consent of Horizon. No waiver by any party hereto of any default, misrepresentation or breach of warranty or covenant
hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation or breach
of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.

 

14.          It
is acknowledged and agreed that this document constitutes a “Loan Document” for purposes of Section 10.3 (Indemnification
and Waiver of the Loan Agreement).

 

[Signature pages follow]

    10

     

    

 

IN WITNESS WHEREOF,
and intending to be legally bound hereby, the parties have executed this Agreement as of the date set forth below.

 

	 	TITAN PHARMACEUTICALS, INC.
	 	 
	 	 
	 	By:	/s/ Marc Rubin
	 	 	Name: Marc Rubin
	 	 	Title: Executive Chairman
	 	 	 
	 	 	 
	 	HORIZON CREDIT II LLC
	 	 	 
	 	 	 
	 	By:	/s/ Robert D. Pomeroy, Jr.
	 	 	Name: Robert D. Pomeroy, Jr.
	 	 	Title: CEO
	 	 	 
	 	L. MOLTENI & C. DEI F.LLI ALITTI SOCIETÀ DI ESERCIZIO S.P.A.
	 	 	 
	 	By:	
	 	 	Name: Bruno De Bortoli
	 	 	Title: Managing Director

    11

     

    

 

ANNEX 1

 

DEFINITIONS

 

“Data”
means any and all research data, pharmacology data, preclinical data, clinical data, medical chemistry, commercial, marketing,
process development, manufacturing and other data or information, including investigator reports (both preliminary and final),
statistical analyses, expert opinions and reports, and safety data, in each case generated from clinical or non-clinical studies,
research or testing specifically related or directed to the Compound, Semi-Finished Product and/or the Final Product(s) (in
each case, as defined in the Molteni APA), in each case, in the Product Territory, together with all documentation submitted, or
required to be submitted, to any regulatory or governmental authority in the Product Territory.

 

“Intellectual
Property Related Documentation” means each of the following in paper, digital or other form: (a) all letters patent
relating to the patents and patent applications included in the Product Intellectual Property; (b) all assignment agreements
relating to the Product Intellectual Property; (c) the prosecution files and dockets relating to any of the Product Intellectual
Property, including all written communications provided to or received from any governmental authority, original granted patents,
trademark certificates of registration, and patent or trademark prosecution files held by prosecuting attorneys, in each case relating
thereto; (d) all documents and materials evidencing dates of invention, including dates of conception and reduction to practice,
in respect of the patents and patent applications included in the Product Intellectual Property, (e) litigation files to the
extent relating to actions, suits or proceedings brought or considered to be brought for infringement or misappropriation of the
Product Intellectual Property; (f) infringement claim charts for the patents and patent applications included in the Product
Intellectual Property prepared by or for the Titan (if any); and (g) all books, records, files, ledgers or similar documents
used by Titan to track, organize or maintain the Product Intellectual Property, including any dossier, in each case in the Product
Territory.

 

“Know-How”
means any non-public information, ideas, inventions, works of authorship, trade secrets, technology, or materials, including formulations,
molecules, assays, reagents, compounds, compositions, human or animal tissue, samples or specimens, and combinations or components
thereof, whether or not proprietary or patentable, and whether stored or transmitted in oral, documentary, electronic or other
form, in each case, in the Product Territory.

 

“Product”
means, collectively, the Product, Compound, Semi-Finished Product and/or the Final Product(s) (each as defined in the Molteni
APA).

 

“Product Territory”
means anywhere in the world, excluding the United States and Canada.

 

“Regulatory
Documents” means all dossiers, filings, applications, modifications, amendments, notifications, supplements, revisions,
reports, submissions, authorizations, registrations, and approvals, including any IND or NDA, and any reports or amendments necessary
to maintain Regulatory Approvals (in each case, as defined in the Molteni APA) in the Product Territory.

    12

     

    

 

EXHIBIT A

 

FORM OF BILL OF SALE

 

    13

     

    

 

EXHIBIT B

 

LIST OF FIXTURES, EQUIPMENT
AND OTHER ASSETS HELD BY DPT

 

    14

     

    

 

EXHIBIT C

 

[FORMS OF IP ASSIGNMENTS]

 

    15

     

    

 

EXHIBIT D

 

LIST OF PATENTS AND PATENT APPLICATIONS

 

    16

     

    

 

EXHIBIT E

 

LIST OF TRADEMARKS AND TRADEMARK APPLICATIONS

 

    17

     

    

 

EXHIBIT F

 

[FORMS OF IP RELEASES]

    18EX-10.1

 Exhibit 10.1 

Execution Version 
 SETTLEMENT
AGREEMENT 
 This Settlement Agreement (the “Agreement”), dated as of September 23, 2020 (the “Agreement
Date”), is made between and among the Paragon Litigation Trust and Noble Corporation plc, Noble Corporation Holdings Ltd, Noble Corporation, Noble FDR Holdings Limited, Noble Holding International Limited, Noble Holding (U.S.) LLC, and
Noble International Finance Company (collectively, the “Noble Defendants”). These entities will be referred to collectively as “Parties,” and individually as a “Party.” 

WHEREAS, on July 31, 2020, the Noble Defendants and certain of their affiliates (the “Debtors”) filed voluntary petitions under chapter
11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”); 

WHEREAS, the Paragon Litigation Trust brought claims in the United States Bankruptcy Court for the District of Delaware (the “Delaware
Court”) in an action styled Paragon Litigation Trust v. Noble Corporation plc, et al., Adv. Proc. No. 17-51882 (the “Action”), asserting (i) claims against the Noble
Defendants and two other Noble affiliates for actual and constructive fraudulent transfer, debt recharacterization and unjust enrichment, and (ii) claims against certain current and former directors and/or officers of either Noble Corporation
plc or Paragon Offshore plc (the “D&O Defendants”) for breach of fiduciary duty and aiding and abetting breach of fiduciary duty, all of which are subject to indemnification agreements with Noble; 

WHEREAS, the Noble Defendants and the D&O Defendants deny the allegations asserted against them in the Action; 

WHEREAS, this Agreement is the result of the Parties’ good faith efforts to mediate their disputes with were led by former bankruptcy judge Kevin Gross
serving as mediator; 
 WHEREAS, the Parties desire to fully and finally settle the disputes among them in the Action on the terms set forth in this
Agreement and allow the Paragon Litigation Trust’s claims to proceed against the D&O Defendants in the Delaware Court; 
 WHEREAS, the Debtors will
seek approval by the Bankruptcy Court of their entry into this Agreement; 
 NOW THEREFORE, in exchange for certain consideration, the receipt and
sufficiency of which is hereby acknowledged, the Parties agree as follows: 
  

	1.	 Definitions. 

  

	 	1.1.	 “Allowed Paragon Claim” shall have the meaning ascribed to it in
Section 2.1 of the Agreement. 

  

	 	1.2.	 “Approval Motion” shall mean the motion filed with the Bankruptcy Court pursuant to Rule 9019
of the Federal Rules of Bankruptcy Procedure seeking approval of the Noble Defendants’ entry into the Agreement and the specific findings of fact and conclusions of law identified below in Section 6.1. 

	 	1.3.	 “Approval Order” shall mean the order entered by the Bankruptcy Court approving the Noble
Defendants’ entry into the Agreement. For the avoidance of doubt, the Approval Order need not include the specific findings of fact and conclusions of law identified in the second sentence of Section 6.1. 

 

	 	1.4.	 “Claims” shall mean any and all claims, cross-claims, causes of action, counterclaims,
actions, demands, damages, losses, attorneys’ fees, costs, expenses, and liabilities, of whatever nature, whether known or unknown, accrued or unaccrued, direct or indirect, at law or in equity, now existing or that might arise hereafter,
including, without limitation, any “claim” as defined in section 101 of the Bankruptcy Code. 

  

	 	1.5.	 “Covenant” shall have the meaning ascribed to it in Section 8.1.2 of
the Agreement. 

  

	 	1.6.	 “Delaware Dismissal Order” shall mean a joint motion and proposed order seeking the dismissal
of all Claims against all parties other than the D&O Defendants with prejudice, with each party to bear its own costs, expenses and attorneys’ fees. 

  

	 	1.7.	 “Dollar” shall mean United States Dollar. 

 

	 	1.8.	 “Effective Date” shall mean the date that the Bankruptcy Court enters the Approval Order (as
defined above) and such order becomes a final non-appealable order. 

  

	 	1.9.	 “Global Resolution” shall mean the full settlement and release of all claims brought by the
Paragon Litigation Trust against all of the defendants in the Action (including the Noble Defendants and the D&O Defendants), the Noble Defense Cost Claim (as defined below) and the Noble Indemnity Claim (as defined below).

  

	 	1.10.	 “Initial Payment” shall mean the payment made by Noble pursuant to
Section 2.2(a) or Section 2.2(b)(i) of this Agreement. 

  

	 	1.11.	 “Insurers” shall mean the insurers who issued the Insurance Policies. 

 

	 	1.12.	 “Insurance Policies” shall mean all of the D&O liability insurance policies issued by
various Insurers to Noble Corporation plc, as the named insured, for the policy period August 1, 2014 to August 1, 2024, which are listed on Appendix 1.  

 

	 	1.13.	 “Noble” shall mean Noble Corporation plc and its direct and indirect subsidiaries.

  

	 	1.14.	 “Noble Bankruptcy Proceedings” shall refer to the jointly administered Chapter 11 cases
associated with the lead case styled In re: Noble Corporation PLC, et al., Bankruptcy Case No. 20-33826 (DRJ), in the Bankruptcy Court. 

 

	 	1.15.	 “Noble Defense Cost Claim” shall mean any Claim against the Insurers for any amounts paid by
or on behalf of the Noble Defendants that are or may be covered under the Insurance Policies, in each case, relating to reasonable costs, expenses, 

  
 2 

	 	
charges and fees incurred in defending or investigating the Paragon Litigation Trust’s Claims against the Noble Defendants and/or the D&O Defendants, including but not limited to
(a) legal fees and expenses; (b) expert, forensic auditor, consultant or witness fees and expenses; (c) mediator or arbitrator fees and expenses; (d) costs of attachment or similar bonds incurred in the investigation of or
defense of or appeal of any claim; (e) fees and expenses of any vendor or service provider, including, without limitation, any document vendor, electronic discovery vendor, database vendor, document review vendor, data recovery vendor, court
reporter or investigative service; or (f) other costs, charges, fees and expenses incurred in the defense, investigation, settlement or appeal of any of the Paragon Litigation Trust’s Claims. 

 

	 	1.16.	 “Noble Indemnity Claim” shall mean any Claim held by the Noble Defendants against the Insurers
or which may be paid under the Insurance Policies with respect to reimbursement of the Allowed Paragon Claim. 

  

	 	1.17.	 “Paragon Defense Cost Recovery” shall mean any amounts payable to the Paragon Litigation Trust
pursuant to Section 3.1 of the Agreement. 

  

	 	1.18.	 “Paragon Indemnity Recovery” shall mean any gross proceeds recovered by Noble from the
Insurers pursuant to the Noble Indemnity Claim that shall be paid to the Paragon Litigation Trust. 

  

	 	1.19.	 “Paragon Recovery Cap” shall mean eighty-five million Dollars (USD $85,000,000).

  

	 	1.20.	 “Plan” shall mean the Joint Plan of Reorganization of Noble Corporation plc and its Debtor
Affiliates, filed in the Bankruptcy Court on September 4, 2020 as Docket No. 259, as amended, modified, or supplemented from time to time. 

  

	 	1.21.	 “Subsequent Payments” shall mean any payments made by Noble to the Paragon Litigation Trust
pursuant to Section 2.2(b)(ii)
 and 2.2(b)(iii). 

  

	2.	 Allowed Paragon Claim. 

 

	 	2.1.	 The Claims asserted by the Paragon Litigation Trust against each of the Noble Defendants in the Action shall be
allowed as a prepetition unsecured claim in the Noble Bankruptcy Proceedings in the aggregate amount of $85 million (the “Allowed Paragon Claim”). The Allowed Paragon Claim shall not be subject to reconsideration under 11
U.S.C. § 502(j) or otherwise. 

  

	 	2.2.	 The Plan shall provide that the Allowed Paragon Claim shall be placed into its own class, which shall receive
the following treatment: (a) if a Global Resolution is reached on or before October 1, 2020, cash in the amount of ten million Dollars (USD $10,000,000); or, alternatively, (b) if a Global Resolution is not reached on or before
October 1, 2020, (i) cash in the amount of seven million five hundred thousand Dollars (USD $7,500,000), (ii) the Paragon Defense Cost Recovery, and (iii) the Paragon Indemnity Recovery. 

  
 3 

	 	2.3.	 Notwithstanding anything to the contrary in this Agreement or in the Plan, aggregate payments from and/or on
behalf of the Noble Defendants to the Paragon Litigation Trust in respect of the Allowed Paragon Claim pursuant to this Agreement shall not exceed the Paragon Recovery Cap. For the avoidance of doubt, all recoveries from the Noble Defense Cost Claim
and the Noble Indemnity Claim in excess of the Paragon Recovery Cap shall be retained by Noble. 

  

	3.	 The Noble Defense Cost Claim. 

 

	 	3.1.	 Any recovery in respect of the Noble Defense Cost Claim shall be paid in accordance with the below waterfall:

  

	 	3.1.1.	 The first ten million Dollars (USD $10,000,000) in gross proceeds recovered from the Insurers shall be paid to
the Paragon Litigation Trust. 

  

	 	3.1.2.	 The next one million Dollars (USD $1,000,000) in gross proceeds recovered from the Insurers shall be retained
by Noble for reimbursement of Noble’s attorney’s fees, costs, and expenses incurred in connection with the prosecution of the Noble Defense Cost Claim and the Noble Indemnity Claim. To the extent that such fees, costs, and expenses do not
total one million Dollars (USD $1,000,000) at the conclusion of Noble Defense Cost Claim and the Noble Indemnity Claim, the excess shall flow through the waterfall pursuant to Section 3.1.3 and 3.1.4.

  

	 	3.1.3.	 The next fifteen million Dollars (USD $15,000,000) in gross proceeds recovered from the Insurers shall be paid
to Noble. 

  

	 	3.1.4.	 All recovery from the Insurers in respect of the Noble Defense Cost Claim in excess of the amounts set forth in
Section 3.1.1 through Section 3.1.3 shall be divided evenly between the Paragon Litigation Trust and Noble. 

 

	4.	 The Noble Indemnity Claim. Any gross proceeds recovered from the Insurers in respect of the Noble
Indemnity Claim (the Paragon Indemnity Recovery) shall be paid to the Paragon Litigation Trust. 

  

	5.	 Pursuit of Claims. Noble shall use commercially reasonable efforts to pursue and/or settle on
commercially reasonable terms the Noble Defense Cost Claim and the Noble Indemnity Claim, taking into consideration input from the Paragon Litigation Trust, the costs of continuing the litigation, the likelihood of success, and such other factors as
determined by the Parties. In no event shall the breach of this Section 5 (a) subject Noble to money damages, or (b) excuse the Paragon Litigation Trust’s performance pursuant to
Section 8.1 (which shall remain subject to the satisfaction of the Condition Precedent). The Bankruptcy Court shall retain jurisdiction to determine Noble’s compliance with this Section 5.
 

  

	6.	 Bankruptcy Court Approval / Timing of Payments. 

 

	 	6.1.	 As soon as reasonably practicable, and no later than fourteen (14) days after the Agreement Date, Noble
shall seek approval of its entry into this Agreement by 

  
 4 

	 	
filing the Approval Motion with the Bankruptcy Court. The Approval Motion, or, if required, a separate adversary proceeding, shall seek a finding by the Bankruptcy Court that
Section 8.1 does not eliminate, relieve, or otherwise limit the Insurers’ obligations to Noble or the D&O Defendants or prejudice the rights of Noble or the D&O Defendants with respect to the Insurance
Policies. 

  

	 	6.2.	 If, pursuant to the Approval Order, the Bankruptcy Court determines that the payments in connection with this
Agreement may be made immediately, the Noble Defendants shall pay or cause to be paid to the Paragon Litigation Trust (a) the Initial Payment no later than ten (10) business days after the Effective Date, and (b) the Subsequent
Payments no later than ten (10) business days after such amounts are received by the Noble Defendants. 

  

	 	6.3.	 If, pursuant to the Approval Order, the Bankruptcy Court determines that all payments made pursuant to this
Agreement may be made only pursuant to a Plan, the Noble Defendants shall pay or cause to be paid to the Paragon Litigation Trust (a) the Initial Payment on or about the effective date of the Plan, and (b) the Subsequent Payments no later
than ten (10) business days after such amounts are received by the Noble Defendants. 

  

	7.	 Taxes. All taxes imposed as a result of this Agreement or the performance hereunder shall be paid by the
Party required to do so under applicable law. 

  

	8.	 Covenants of the Paragon Litigation Trust. 

 

	 	8.1.	 If the Paragon Litigation Trust receives, in aggregate, at least seventeen million and five hundred thousand
Dollars (USD $17,500,000) in respect of the Initial Payment, the Subsequent Payments, and/or from any other source excluding any insurance recoveries from the Action against the D&O Defendants (the “Condition Precedent”):

  

	 	8.1.1.	 the Paragon Litigation Trust shall limit its damages claim against the D&O Defendants to, and shall not
seek to recover from the D&O Defendants in excess of, two hundred million Dollars (USD $200,000,000) less (a) any amounts paid by the Insurers in connection with the Noble Defense Cost Claim and Noble Indemnity Claim, (b) fees, costs
and expenses incurred by the D&O Defendants in connection with the Action from and after the execution date of this Agreement, and (c) any other depletion of the insurance policy limits only to the extent any such depletion is expressly
permitted under the Insurance Policies. 

  

	 	8.1.2.	 the Paragon Litigation Trust covenants that any liability on account of Claims held against the D&O
Defendants shall be satisfied solely by and to the extent of any recovery from the Insurance Policies (the “Covenant”); provided that to the extent such Covenant is determined by the Bankruptcy Court or any other court or tribunal
of competent jurisdiction to in any way eliminate, relieve or otherwise limit the Insurers’ obligations to the Noble Defendants or the D&O Defendants or to prejudice the rights of the Noble Defendants or the D&O Defendants under the
Insurance Policies, the Covenant shall be null and void ab initio. 

  
 5 

	 	8.2.	 In addition to, and without limiting Section 8.1, if Noble is actively pursuing in
good faith the Noble Defense Cost Claim or the Noble Indemnity Claim: (a) the Paragon Litigation Trust will not seek to collect any damages from the D&O Defendants individually, and (b) any judgment obtained by the Paragon Litigation
Trust shall provide that it is expressly subject to Section 8.1.1.  

  

	9.	 Actions in the Delaware Court 

 

	 	9.1.	 As soon as practicable after the Initial Payment is paid, and not later than five (5) business days thereafter,
the Parties shall direct their respective counsel to file with the Delaware Court in the Action the Delaware Dismissal Order, substantially in the form attached hereto as Exhibit A.  

 

	 	9.2.	 In accordance with the instructions delivered at the pre-trial
conference held on September 3, 2020, the trial in the Delaware Court against the D&O Defendants shall commence no earlier than November 30, 2020. 

 

	 	10.	 The Noble Bankruptcy Proceedings. 

 

	 	10.1.	 The Paragon Litigation Trust may file proofs of claim in the Noble Bankruptcy Proceedings, which the Paragon
Litigation Trust agrees shall be resolved in accordance with this Agreement. 

  

	 	10.2.	 The Paragon Litigation Trust shall not object to, delay, impede, or take any other action to interfere with,
delay, or postpone acceptance, confirmation, or implementation of the Plan, provided that such Plan is consistent with this Agreement in all respects, it being understood that the Plan filed by the Debtors in the Bankruptcy Court on
September 4, 2020 is consistent with this Agreement (subject to any modifications required by this Agreement and any other modifications that are not inconsistent with this Agreement). 

 

	 	10.3.	 As long as votes have been solicited in a manner that complies with the requirements of sections 1125 and 1126
of the Bankruptcy Code, the Paragon Litigation Trust shall vote its claim with respect to the Initial Payment and Subsequent Payments in favor of the Plan, and shall not change or withdraw such vote. 

 

	11.	 Mutual Releases. 

 

	 	11.1.	 The Paragon Litigation Trust, on behalf of itself and its current and former beneficiaries, representatives,
litigation trust management, attorneys, agents, partners, employees, trustees, representatives, predecessors, successors, and assigns, forever unconditionally and irrevocably releases, discharges, and holds harmless Noble, its current and former
direct and indirect subsidiaries and 

  
 6 

	 	
divisions, and their respective representatives, advisors, investment banks, attorneys, agents, partners, officers, shareholders, directors, employees, customers, representatives, predecessors,
successors, assigns, and Affiliates – past, present, and future – from any and all Claims arising out of or based on any act or omission occurring from the beginning of time up to and including the Effective Date. Notwithstanding the
foregoing, nothing herein shall release (a) a Party from any obligation, promise, covenant, act, or agreement set forth in this Agreement; (b) any Claim that has been asserted against the D&O Defendants in the Action; and (c) the
Insurers. 

  

	 	11.2.	 Noble, on behalf of itself and its current and former beneficiaries, representatives, attorneys, agents,
partners, employees, trustees, representatives, predecessors, successors, and assigns, forever unconditionally and irrevocably releases, discharges, and holds harmless the Paragon Litigation Trust, its current and former direct and indirect
subsidiaries and divisions, and their respective representatives, advisors, investment banks, attorneys, agents, partners, officers, shareholders, directors, employees, customers, representatives, predecessors, successors, assigns, and Affiliates
– past, present, and future – from any and all Claims arising out of or based on any act or omission occurring from the beginning of time up to and including the Effective Date. Notwithstanding the foregoing, nothing herein shall release
(a) a Party from any obligation, promise, covenant, act, or agreement set forth in this Agreement; (b) any Claim that has been asserted against the D&O Defendants in the Action; and (c) the Insurers. 

 

	 	11.3.	 Each Party acknowledges and agrees that it intends to release and discharge the Claims set forth above,
irrespective of whether such Claims are known or unknown to any or all Parties, and irrespective of whether such Claims, if actually unknown to a Party, could or could not have been discovered by that Party through the exercise of reasonable
diligence. The Parties knowingly, voluntarily, intentionally, and expressly waive any and all rights and benefits under any and all laws (including but not limited to statutes, ordinances, administrative regulations, and principles of common law) of
any federal, state, province, territory, county, city, municipality, or any other political subdivision of the United States or any foreign country, that would restrict in any fashion the full scope of enforceability of the releases set forth in
this Section 11.  

  

	 	11.4.	 All rights under Section 1542 of the California Civil Code, or any analogous state or federal law, are
hereby expressly WAIVED by the Parties, if applicable, with respect to any of the claims, injuries, or damages described in the releases set forth in Section 11. Section 1542 of the California Civil Code reads as
follows: 

 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT
TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.” 

  
 7 

	12.	 Condition Precedent. The occurrence of the Effective Date shall be a condition precedent to the
effectiveness of this Agreement. 

  

	13.	 No Admission of Liability. Each Party acknowledges and agrees that this Agreement is a compromise
settlement that is not in any respect, for any purpose, to be deemed or construed to be an express or implied admission of any liability or wrongdoing in the Action or otherwise. 

 

	14.	 Representations and Warranties. 

 

	 	14.1.	 Noble represents and warrants that it is not aware of any Claims other than those related to or arising out of
the Action that have been or could be made under the Insurance Policies. 

  

	 	14.2.	 The Parties represent and warrant that they have the full right and power to grant the releases set forth in
this Agreement and have not sold, assigned, transferred, hypothecated, pledged, or encumbered, or otherwise disposed of, in whole or in part, voluntarily or involuntarily, any Claim released pursuant to this Agreement. 

 

	15.	 Further Assurances. The Parties agree to cooperate as reasonably necessary and to take all reasonable
steps to effectuate this Agreement and the termination of the Claims against the Noble Defendants in the Action in accordance with this Agreement. 

  

	16.	 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties,
their successors-in-interest, heirs and permitted assigns. For the avoidance of doubt, upon the effective date of the Plan, all of Noble Corporation plc’s rights
and obligations under this Agreement shall be assumed by Reorganized Parent (as defined in the Plan). 

  

	17.	 Integrated Agreement. This Agreement constitutes the entire understanding and contract between the
Parties with respect to the subject matter referred to herein. Any and all other representations, understandings, covenants, or agreements, whether oral, written, or implied, are merged into and superseded by the terms of this Agreement.

  

	18.	 No Oral Modifications. No provision of this Agreement can be waived, modified, amended, or supplemented
except in a writing that expressly references this Agreement and is signed by an authorized representative of each Party to be bound. 

  

	19.	 Notice. All notices that are required or that may be permitted to be given pursuant to the terms of this
Agreement shall be in writing and shall be sufficient in all respects if given in writing and delivered by courier, by facsimile, by email, by registered mail, and/or by certified mail, return receipt requested, as follows: 

If to the Paragon Litigation Trust: 

Tim Daileader 
 Chief Operating
Officer 
 Drivetrain, LLC 
 410
Park Avenue 
 Suite 900 
 New
York, NY 10022 
 E-mail: tdaileader@drivetrainllc.com 

  
 8 

 With copy to: 

Kirkland & Ellis LLP 

300 North LaSalle 
 Chicago, IL
60654 
 Attention: Jeffrey J. Zeiger 

Facsimile: (312) 862-2200 

E-mail: jzeiger@kirkland.com 

If to Noble: 
 Noble Corporation
plc 
 13135 Dairy Ashford, Suite 800 

Sugar Land, TX 77478 
 Attention:
William Turcotte, General Counsel 
 With copies to: 

Skadden, Arps, Slate, Meagher & Flom LLP 

155 N. Wacker Drive 
 Chicago, IL
60606 
 Attention: George Panagakis 

Facsimile: (312) 407-8586 

E-mail: george.panagakis@skadden.com 

and 
 Skadden, Arps, Slate,
Meagher & Flom LLP 
 One Manhattan West 

New York, NY 10001 
 Attention:
George Zimmerman 
 Facsimile: (917) 777-2047 

E-mail: george.zimmerman@skadden.com 

Any such notices shall be effective upon receipt by the listed addressees. The Parties may change their addresses for notice purposes by
sending a notice of such changes to the other Parties in accordance with the terms of this Section. 
  

	20.	 Independent Advice. Each Party warrants and represents that it has received independent legal advice
from such Party’s attorney with respect to the rights and obligations arising from, and the advisability of executing, this Agreement. 

  
 9 

	21.	 Construction of Ambiguities. Because all Parties have participated in drafting, reviewing and editing
the language of this Agreement, no presumption for or against any Party arising out of drafting all or any part of this contract shall be applied in any action whatsoever. 

 

	22.	 Headings. The subject headings used in this Agreement are included for purposes of convenience only and
shall not affect the construction or interpretation of any provisions of this document. 

  

	23.	 Execution. This Agreement may be executed and delivered in any number of counterparts. When each Party
has signed and delivered at least one counterpart to all other Parties, each counterpart shall be deemed an original and all counterparts, taken together, shall constitute one and the same agreement, which shall be binding and effective on the
Parties hereto in accordance with the terms of this Agreement as of the date the counterparts are delivered; electronic delivery is acceptable to all Parties. This Agreement may be executed using electronic signatures and exchanged via electronic
means, with the same force and effect as original signatures for all purposes. 

  

	24.	 Enforceability. When effective under the conditions and other terms of this Agreement, this Agreement
shall be valid and binding upon the Parties, and shall be fully enforceable against each of them, in accordance with its terms. Any person executing this Agreement on behalf of any Party hereto does hereby personally represent and warrant to the
other Party or Parties that he/she has the authority to execute this Agreement on behalf of, and fully bind, such Party or, in the case of the Noble Defendants, will have such authority upon entry of the Approval Order. 

 

	25.	 Governing Law. This Agreement shall be governed by, and interpreted, construed, and enforced in
accordance with, the laws of the State of New York. 

  

	26.	 Third-Party Beneficiaries. The D&O Defendants, Noble Holding International (Luxembourg) S.à
r.l., and Noble Holding International (Luxembourg NHIL) S.à r.l. are third-party beneficiaries of this Agreement. Other than the persons and entities referred to in the immediately preceding sentence, there are no third-party beneficiaries of
this Agreement, and, for the avoidance of doubt, this Agreement is not intended to benefit, or discharge any duties and obligations otherwise binding upon the Insurers by the terms and conditions of the Insurance Policies. 

 

	27.	 Retention of Jurisdiction and Choice of Venue. Any dispute arising from or related to this Agreement
shall be decided solely and exclusively by the Bankruptcy Court, which shall retain exclusive jurisdiction to hear and determine such dispute. To the extent the Bankruptcy Court determines that it is unable or unwilling to exercise jurisdiction over
any such dispute, such dispute shall be decided by the United States District Court for the Southern District of Texas, or if such court determines that it is unable or unwilling to exercise jurisdiction over any such dispute, such dispute shall be
brought to a state court located in the Borough of Manhattan, New York and the Parties shall endeavor to have this matter heard by and/or transferred to the Supreme Court, Commercial Division. The Parties consent to the entry of a final judgment by
the Bankruptcy Court in any dispute with respect to the interpretation or enforcement of this Agreement and waive any objections thereto under Article III of the United States Constitution and section 157 of title 28 of the United State Code. The
Parties waive their right to a jury trial in connection with any dispute related to or arising out of this Agreement. 

  
 10 

	 	28.	 Severability. If any provision of this Agreement is unenforceable, such provision will be changed and
interpreted to accomplish the objectives of such provision to the greatest extent possible under applicable law and the remaining provisions will continue in full force and effect. To the extent that any provision of this Agreement is held
unenforceable and is not so reformed, the Parties agree to negotiate in good faith an enforceable substitute provision for any invalid or unenforceable provision that most nearly achieves the intent of such provision. 

[Remainder of Page Intentionally Left Blank] 

  
 11 

 Each of the Parties hereby agrees to this Agreement on the date set forth below: 

 

									
	Paragon Litigation Trust	 		 	Noble Corporation Holdings Ltd
			
	/s/ Alan J. Carr	 		 	/s/ Brad A. Baldwin
	By:	 	Alan J. Carr	 		 	By:	 	Brad A. Baldwin
	Title:	 	Litigation Trust Management	 		 	Title:	 	Director
	Date:	 	September 23, 2020	 		 	Date:	 	22 September 2020
			
	Noble Corporation plc	 		 	Noble Holding International Limited
			
	/s/ Robert W. Eifler	 		 	/s/ Brad A. Baldwin
	By:	 	Robert W. Eifler	 		 	By:	 	Brad A. Baldwin
	Title:	 	President & CEO	 		 	Title:	 	Director
	Date:	 	9/22/2020	 		 	Date:	 	22 September 2020
			
	Noble Corporation	 		 	Noble International Finance Company
			
	/s/ Brad A. Baldwin	 		 	/s/ Brad A. Baldwin
	By:	 	Brad A. Baldwin	 		 	By:	 	Brad A. Baldwin
	Title:	 	Director	 		 	Title:	 	Director
	Date:	 	22 September 2020	 		 	Date:	 	22 September 2020
				
	Noble FDR Holdings Limited	 		 		 	
				
	/s/ Brad A. Baldwin	 		 		 	
	By:	 	Brad A. Baldwin	 		 		 	
	Title:	 	Director	 		 		 	
	Date:	 	22 September 2020	 		 		 	
				
	Noble Holding (U.S.) LLC	 		 		 	
				
	/s/ Laura D. Campbell	 		 		 	
	By:	 	Laura D. Campbell	 		 		 	
	Title:	 	President	 		 		 	
	Date:	 	September 22, 2020	 		 		 	

  
 12 

 Exhibit A 

IN THE UNITED STATES BANKRUPTCY COURT 

FOR THE DISTRICT OF DELAWARE 
  

			
	 In re

 
 PARAGON OFFSHORE PLC,

 
 Debtor.
	  	 Chapter 11
  

Bankr. Case No. 16-10386 (CSS)

	 	
	 PARAGON LITIGATION TRUST,

 
 Plaintiff,

 
 v.

 
 NOBLE CORPORATION PLC, NOBLE CORPORATION HOLDINGS LTD, NOBLE CORPORATION, NOBLE HOLDING
INTERNATIONAL (LUXEMBOURG) S.à r.l., NOBLE HOLDING INTERNATIONAL (LUXEMBOURG NHIL) S.à r.l., NOBLE FDR HOLDINGS LIMITED, NOBLE HOLDING INTERNATIONAL LIMITED, NOBLE HOLDING (U.S.) LLC, NOBLE INTERNATIONAL FINANCE COMPANY, MICHAEL A. CAWLEY,
JULIE H. EDWARDS, GORDON T. HALL, JON A. MARSHALL, JAMES A. MACLENNAN, MARY P. RICCIARDELLO, JULIE J. ROBERTSON, and DAVID WILLIAMS,
  

Defendants.
	  	Adv. Proc. No. 17-51882 (CSS)

 ORDER 

Upon consideration of the Settlement Agreement between the Paragon Litigation Trust (the “Trust”) and Noble Corporation plc
(“Noble”), Noble Corporation Holdings Ltd. (“Noble Holdings Cayman”), Noble Corporation (“Noble Cayman”), Noble FDR Holdings Limited (“FDR”), Noble Holding International Limited (“NHIL Cayman”),
Noble Holding U.S. 

 
LLC (“Noble Holding U.S.”), and Noble International Finance Company (“Noble International,”), it is hereby ordered that the Trust’s claims against Noble, Noble Holdings
Cayman, Noble Cayman, FDR, NHIL Cayman, Noble Holding U.S., Noble International, Noble Holding International (Luxembourg) S.à.r.l. (“NHIL 1”), and Noble Holding International (Luxembourg NHIL) S.à.r.l. (“NHIL 2”,
together with Noble, Noble Holdings Cayman, Noble Cayman, FDR, NHIL Cayman, Noble Holding U.S., Noble International, and NHIL 1, the “Corporate Defendants”) asserted in Counts I – V and VIII of the First Amended Complaint are
dismissed with prejudice. The Trust and the Corporate Defendants shall bear their own attorneys’ fees and costs. 

  
 2

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