Document:

Registration Rights Agreement

 Exhibit 4.2 
 REGISTRATION RIGHTS AGREEMENT 
 REGISTRATION RIGHTS AGREEMENT (this “Agreement”),
dated as of March 15, 2011, by and among TITAN PHARMACEUTICALS, INC., a Delaware corporation (the “Company”), and those lenders set forth on Schedule 1 to the Facility Agreement (as defined below) (each individually, a
“Lender” and together, the “Lenders”). 
 WHEREAS: 

A. In connection with the Facility Agreement by and among the parties hereto of even date herewith (the “Facility Agreement”), the Company has
agreed, upon the terms and subject to the conditions contained therein, to issue and sell to the Lenders Warrants (as defined below) in the amount described in the Facility Agreement, where each of the Warrants is exercisable into shares of the
Company’s common stock, $0.001 value per share (the “Common Stock”), each upon the terms and conditions and subject to the limitations and conditions set forth in the Warrants, all subject to the terms and conditions of the Facility
Agreement; and 
 B. To induce the Lenders to execute and deliver the Facility Agreement, the Company has agreed to provide certain registration
rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively, the “Securities Act”), and applicable state securities laws, 

NOW, THEREFORE, In consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and the Lenders hereby agree as follows: 
 1. DEFINITIONS. 

a. As used in this Agreement, the following terms shall have the following meanings: 

(i) “Additional Filing Deadline” means, with respect to any Registration Statements that may be required pursuant to
Section 2(a)(ii), (a) the first date or time that such Registrable Securities may then be included in a Registration Statement if such Registration Statement is required because the SEC shall have notified the Company in writing that
certain Registrable Securities were not eligible for inclusion on a previously filed Registration Statement, or (b) if such additional Registration Statement is required for a reason other than as described in (a) above, the tenth
(10th) day following the date on which the Company
first knows, or reasonably should have known, that such additional Registration Statement is required. 
 (ii)
“Additional Registration Deadline” means, with respect to any additional Registration Statement(s) that may be required to be filed pursuant to Section 2(a)(ii), the thirtieth
(30th) day following (a) the first date or time
that such Registrable Securities may then be included in a Registration Statement if such Registration Statement is required because the SEC shall have notified the Company in writing that certain Registrable Securities were not eligible for
inclusion on a previously filed Registration Statement, or (b) if such additional Registration Statement is required for a reason other than as described in (a) above, the fortieth
(40th) day following the date on which the Company
first knows, or reasonably should have known, that such additional Registration Statement(s) is required. 
 (iii) “Buyer” means any
Lender and any transferee or assignee who agrees to become bound by the provisions of this Agreement in accordance with Section 10 hereof. 

(iv) “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder, and any
successor statute. 
 (v) “Filing Deadline,” for each Registration Statement required to be filed hereunder other than
Section 2(a)(ii), shall mean a date that is thirty (30) calendar days following the date the applicable Warrant is issued and, in the case of Section 2(a)(ii) shall mean the Additional Filing Deadline. 

 (vi) “Person” means and includes any natural person, partnership, joint venture, corporation,
trust, limited liability company, limited company, joint stock company, unincorporated organization, government entity or any political subdivision or agency thereof, or any other entity. 
 (vii) “Registration Deadline” shall mean, other than for purposes of the Registration Statements required under Section 2(a)(ii), the earlier of (i) the date that is sixty
(60) days after the date that the applicable Registration Statement is actually filed and (ii) the date that is sixty (60) days after the applicable Filing Deadline and, with respect to any Registration Statements required to be filed
under Section 2(a)(ii), the Additional Registration Deadline; provided, however, in the event the Company receives comments made by the SEC in respect of any such Registration Statement, the Registration Deadline for such Registration Statement
shall automatically be extended to the date that is 90 days after the date that the applicable Registration Statement is actually filed. 

(viii) “Warrant(s)” means the warrants issued by the Company pursuant to the Facility Agreement. 

(ix) “Register,” “Registered,” and “Registration” refer to a registration effected by preparing and filing a Registration
Statement or Statements in compliance with the Securities Act and pursuant to Rule 415 under the Securities Act or any successor rule providing for offering securities on a continuous basis, and the declaration or ordering of effectiveness of such
Registration Statement by the United States Securities and Exchange Commission (the “SEC”). 
 (x) “Registrable Securities,”
for a given Registration, means (a) any shares of Common Stock (the “Warrant Shares”) issued or issuable upon exercise of or otherwise pursuant to the Warrants (without giving effect to any limitations on exercise set forth in the
Warrants), (b) any shares of capital stock issued or issuable as a dividend on or in exchange for or otherwise with respect to any of the foregoing, (c) any additional shares of Common Stock issuable in connection with any anti-dilution
provisions in the Warrants, (d) any other warrants or shares of Common Stock issuable pursuant to the terms of the Facility Agreement, the Warrants or this Registration Rights Agreement, and (d) any securities issued or issuable upon any
stock split, dividend or other distribution, recapitalization or similar event with respect to the foregoing; provided, however, that any such Registrable Securities shall cease to be Registrable Securities upon the earliest to occur
of the following: (A) sale pursuant to a Registration Statement or Rule 144 under the Securities Act (in which case, only such securities sold shall cease to be Registrable Securities); or (B) becoming eligible for sale without volume
limitations by the Holder pursuant to Rule 144(b). 
 (xi) “Registration Statement(s)” means a registration statement(s) of the
Company under the Securities Act required to be filed hereunder. 
 2. REGISTRATION. 

a. MANDATORY REGISTRATION. (i) Following the date on which any Warrants are issued pursuant to the Facility Agreement (each, an
“Issuance Date”), the Company shall prepare, and, on or prior to the applicable Filing Deadline (as defined above) file with the SEC a Registration Statement (the “Mandatory Registration Statement”) on Form S-3 (or, if Form S-3
is not then available, on such form of Registration Statement as is then available to effect a registration of the Registrable Securities, subject to the consent of the Buyers, which consent will not be unreasonably withheld) covering the resale of
the Registrable Securities issued on the applicable Issuance Date (as defined below) which Registration Statement, to the extent allowable under the Securities Act and the rules and regulations promulgated thereunder (including Rule 416), shall
state that such Registration Statement also covers such indeterminate number of additional shares of Common Stock as may become issuable upon exercise of or otherwise pursuant to the Warrants to prevent dilution resulting from stock splits, stock
dividends, stock issuances or similar transactions. The number of shares of Common Stock initially included in such Registration Statement shall be no less than the aggregate number of Warrant Shares that are then issuable upon exercise of or
otherwise pursuant to the Warrants issued on the Issuance Date, without regard to any limitation on the Buyers’ ability to exercise the Warrants, respectively. Each Registration Statement (and each amendment or supplement thereto, and each
request for acceleration of effectiveness thereof) shall be provided to (and subject to the approval of) the Buyers and their counsel prior to its filing or other submission. 
 (ii) If for any reason the SEC does not permit all of the Registrable Securities to be included in the Registration 

  
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Statement filed pursuant to Section 2(a)(i) above, or for any other reason any Registrable Securities are not then included in a Registration Statement filed under this Agreement, then the
Company shall prepare, and, as soon as practicable but in no event later than the Additional Filing Deadline, file with the SEC an additional Registration Statement covering the resale of all Registrable Securities not already covered by an existing
and effective Registration Statement for an offering to be made on a continuous basis pursuant to Rule 415. 
 b. PIGGY-BACK
REGISTRATIONS. If at any time prior to the expiration of the Registration Period (as hereinafter defined) the Company shall determine to file with the SEC a registration statement relating to an offering for its own account or the
account of others under the Securities Act of any of its securities (other than debt securities or securities being registered on Form S-4 or Form S-8 or their then equivalents relating to equity securities to be issued solely in connection with any
acquisition of any entity or business or equity securities issuable in connection with stock option or other employee benefit plans), the Company shall send to each Buyer written notice of such determination and, if within ten (10) days after
the effective date of such notice, the Buyer shall so request in writing, the Company shall include in such Registration Statement all or any part of such Buyer’s Registrable Securities the requests to be registered, except that if, in
connection with any underwritten public offering for the account of the Company, the managing underwriter(s) thereof shall impose a limitation on the number of Registrable Securities which may be included in the Registration Statement because, in
such underwriter(s)’ judgment, marketing or other factors dictate such limitation is necessary to facilitate public distribution, then the Company shall be obligated to include in such Registration Statement only such limited portion of the
Registrable Securities with respect to which the Buyer has requested inclusion hereunder as the underwriter shall permit; 
 PROVIDED,
HOWEVER, that the Company shall not exclude any Registrable Securities unless the Company has first excluded all outstanding securities, the holders of which are not entitled by contract to inclusion of such securities in such Registration
Statement or are not entitled to pro rata inclusion with the Registrable Securities; and 
 PROVIDED, FURTHER, HOWEVER, that, after
giving effect to the immediately preceding proviso, any exclusion of Registrable Securities shall be made pro rata with holders of other securities having the contractual right to include such securities in the Registration Statement other than
holders of securities entitled to inclusion of their securities in such Registration Statement by reason of demand registration rights. No right to registration of Registrable Securities under this Section 2(b) shall be construed to limit any
registration required under Section 2(a) hereof. If an offering in connection with which a Buyer is entitled to registration under this Section 2(b) is an underwritten offering, then such Buyer shall, unless otherwise agreed by the
Company, offer and sell such Registrable Securities in an underwritten offering using the same underwriter or underwriters and, subject to the provisions of this Agreement, on the same terms and conditions as other shares of Common Stock included in
such underwritten offering. Notwithstanding anything to the contrary set forth herein, the registration rights of the Buyer pursuant to this Section 2(b) shall only be available in the event the Company fails to timely file, obtain
effectiveness or maintain effectiveness of any Registration Statement to be filed pursuant to Section 2(a) in accordance with the terms of this Agreement. 
 3. OBLIGATIONS OF THE COMPANY. In connection with the registration of the Registrable Securities, the Company shall have the following obligations: 

a. The Company shall prepare promptly, and file with the SEC as soon as practicable after each Issuance Date (but no later than the Filing Deadline), a
Registration Statement with respect to the number of Registrable Securities provided in Section 2(a), and thereafter use its best efforts to cause each such Registration Statement relating to Registrable Securities to become effective as soon
as possible after such filing, but in any event shall cause each such Registration Statement relating to Registrable Securities to become effective no later than the Registration Deadline, and shall keep the Registration Statement current and
effective pursuant to Rule 415 at all times until such date as is the earlier of (i) the date on which all of the Registrable Securities for such Registration Statement have been sold and (ii) the date on which all of the Registrable
Securities for such Registration Statement (in the opinion of counsel to the Buyers) may be immediately sold to the public without registration or restriction (including without limitation as to volume by each holder thereof) under the Securities
Act (the “Registration Period”), which Registration Statement (including any amendments or supplements thereto and prospectuses contained therein), except for information provided by a Buyer or any transferee of a Buyer pursuant to
Section 4(a), shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to 

  
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make the statements therein not misleading. 
 b. The Company shall prepare and file with
the SEC such amendments (including post-effective amendments) and supplements to each Registration Statement and the prospectus used in connection with each Registration Statement as may be necessary to keep each Registration Statement current and
effective at all times during the Registration Period, and, during such period, comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities of the Company covered by each Registration Statement
until such time as all of such Registrable Securities have been disposed of in accordance with the intended methods of disposition by the seller or sellers thereof as set forth in each Registration Statement. In the event that on any Trading Day (as
defined below) (the “Registration Trigger Date”) the number of shares available under the Registration Statements filed pursuant to this Agreement is insufficient to cover all of the Registrable Securities issued or issuable upon exercise
of or otherwise pursuant to the Warrants, including, without limitation, any additional shares of Common Stock issued in connection with any anti-dilution provisions contained in the Warrants, without giving effect to any limitations on the
Buyers’ ability to exercise the Warrants, the Company shall amend the Registration Statements, or file a new Registration Statement (on the short form available therefore, if applicable), or both, so as to cover the total number of Registrable
Securities so issued or issuable (without giving effect to any limitations on exercise contained in the Warrants or limitations on conversion or exercise) as of the Registration Trigger Date as soon as practicable, but in any event within twenty
(20) days after the Registration Trigger Date (based on the Exercise Price (as defined in the Warrants) of the Warrants, and other relevant factors on which the Company reasonably elects to rely). The Company shall use its best efforts to cause
such amendment and/or new Registration Statement to become effective as soon as practicable following the filing thereof, but in any event the Company shall use its best efforts to cause such amendment and/or new Registration Statement to become
effective within sixty (60) days of the Registration Trigger Date or as promptly as practicable in the event the Company is required to increase its authorized shares. “Trading Day” shall mean any day on which the Common Sock is
traded for any period on the OTC Bulletin Board, or on the principal securities exchange or other securities market on which the Common Stock is then being traded. 
 c. The Company shall furnish to each Buyer and its legal counsel (i) promptly after the same is prepared and publicly distributed, filed with the SEC, or received by the Company, one copy of each
Registration Statement and any amendment thereto, each preliminary prospectus and prospectus and each amendment or supplement thereto, and, in the case of a Registration Statement referred to in Section 2(a), each letter written by or on behalf
of the Company to the SEC or the staff of the SEC, and each item of correspondence from the SEC or the staff of the SEC, in each case relating to such Registration Statement (other than any portion of any thereof which contains information for which
the Company has sought confidential treatment), and (ii) such number of copies of a prospectus, including a preliminary prospectus, and all amendments and supplements thereto and such other documents as a Buyer may reasonably request in order
to facilitate the disposition of the Registrable Securities owned by such Buyer. The Company will immediately notify the Buyers by facsimile of the effectiveness of each Registration Statement or any post-effective amendment. The Company will
promptly respond to any and all comments received from the SEC, with a view towards causing each Registration Statement or any amendment thereto to be declared effective by the SEC as soon as practicable and shall file an acceleration request as
soon as practicable, but no later than three (3) business days, following the resolution or clearance of all SEC comments or, if applicable, following notification by the SEC that any such Registration Statement or any amendment thereto will
not be subject to review. 
 d. The Company shall use its best efforts to (i) register and qualify, in any jurisdiction where registration
and/or qualification is required, the Registrable Securities covered by the Registration Statements under such other securities or “blue sky” laws of such jurisdictions in the United States as the Buyers shall reasonably request,
(ii) prepare and file in those jurisdictions such amendments (including post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration
Period, (iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify
the Registrable Securities for sale in such jurisdictions; provided that such actions, shall not by themselves require the Company to register as a foreign corporation in any such jurisdictions. 

e. As promptly as practicable after becoming aware of such event, the Company shall notify each Buyer of the happening of any event, of which the Company
has knowledge, as a result of which the prospectus included in any Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material 

  
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fact required to be stated therein or necessary to make the statements therein not misleading, and use its best efforts promptly to prepare a supplement or amendment to any Registration Statement
to correct such untrue statement or omission, and deliver such number of copies of such supplement or amendment to each Buyer as such Buyer may reasonably request. 
 f. The Company shall use its best efforts to prevent the issuance of any stop order or other suspension of effectiveness of any Registration Statement, and, if such an order is issued, to obtain the
withdrawal of such order at the earliest possible moment and to notify each Buyer who holds Registrable Securities being sold (or, in the event of an underwritten offering, the managing underwriters) of the issuance of such order and the resolution
thereof. 
 g. The Company shall permit a single firm of counsel designated by the Buyers (the “Buyer’s Counsel”) to review such
Registration Statement and all amendments and supplements thereto (as well as all requests for acceleration or effectiveness thereof), at Buyers’ own cost, a reasonable period of time prior to their filing with the SEC (not less than five
(5) business days but not more than eight (8) business days) and not file any documents in a form to which Buyer’s Counsel reasonably objects and will not request acceleration of such Registration Statement without prior notice to
such counsel; provided, however, so long as the Company has complied with this Section 3(g), any failure to file any acceleration request or meet any Filing Deadline, Additional Filing Deadline, Registration Deadline or Additional
Registration Deadline due to a delay on the part of Buyer’s Counsel shall not be deemed a failure by the Company to meet the applicable deadline for any purpose under this agreement or any other agreement. 

h. The Company shall hold in confidence and not make any disclosure of information concerning a Buyer provided to the Company unless (i) disclosure
of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release of such
information is ordered pursuant to a subpoena or other order from a court or governmental body of competent jurisdiction, or (iv) such information has been made generally available to the public other than by disclosure in violation of this or
any other agreement. The Company agrees that it shall, upon learning that disclosure of such information concerning such Buyer is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt notice to
the Buyer prior to making such disclosure, and allow such Buyer, at its expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, such information. 

i. The Company shall use its best efforts to cause all the Registrable Securities covered by each Registration Statement to be listed on each securities
exchange on which securities of the same class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange. 

j. The Company shall provide a transfer agent and registrar, which may be a single entity, for the Registrable Securities not later than the effective
date of the initial Registration Statement. 
 k. The Company shall cooperate with each Buyer who holds Registrable Securities being offered and
the managing underwriter or underwriters with respect to an applicable Registration Statement, if any, to facilitate the timely preparation and delivery of certificates (not bearing any restrictive legends) representing Registrable Securities to be
offered pursuant to such Registration Statement and enable such certificates to be in such denominations or amounts, as the case may be, as the managing underwriter or underwriters, if any, or the Buyer may reasonably request and registered in such
names as the managing underwriter or underwriters, if any, or the Buyer may request, and, within three (3) business days after a Registration Statement which includes Registrable Securities is ordered effective by the SEC, the Company shall
deliver, and shall cause legal counsel selected by the Company to deliver, to the transfer agent for the Registrable Securities (with copies to each Buyer) an appropriate instruction and an opinion of such counsel in the form required by the
transfer agent in order to issue the Registrable Securities free of restrictive legends. 
 l. At the request of a Buyer, the Company shall
prepare and file with the SEC such amendments (including post-effective amendments) and supplements to a Registration Statement and any prospectus used in connection with the Registration Statement as may be necessary in order to change the plan of
distribution set forth in such Registration Statement. 

  
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 m. The Company shall not, and shall not agree to, allow the holders of any securities of the Company to
include any of their securities in any Registration Statement under Section 2(a) hereof or any amendment or supplement thereto under Section 3(b) hereof without the consent of the Buyers. In addition, the Company shall not offer any
securities for its own account or the account of others in any Registration Statement under Section 2(a) hereof or any amendment or supplement thereto under Section 3(b) hereof without the consent of the Buyers. 

n. The Company shall take all other reasonable actions necessary to expedite and facilitate disposition by the Buyers of Registrable Securities pursuant
to a Registration Statement. 
 o. The Company shall comply with all applicable laws related to a Registration Statement and offering and sale
of securities and all applicable rules and regulations of governmental authorities in connection therewith (including, without limitation, the Securities Act and the Exchange Act and the rules and regulations promulgated by the SEC). 

p. If required by the Financial Industry Regulatory Authority, Inc. Corporate Financing Department, the Company shall promptly effect a filing with FINRA
pursuant to FINRA Rule 5110 with respect to the public offering contemplated by resales of securities under the Registration Statement (an “Issuer Filing”), and pay the filing fee required by such Issuer Filing. The Company shall use
commercially reasonable efforts to pursue the Issuer Filing until FINRA issues a letter confirming that it does not object to the terms of the offering contemplated by the Registration Statement. 

4. OBLIGATIONS OF THE BUYER. In connection with the registration of the Registrable Securities, each Buyer shall have the following obligations:

 a. It shall be a condition precedent to the obligations of the Company to complete the registration pursuant to this Agreement with respect
to the Registrable Securities of a Buyer that such Buyer shall furnish to the Company such information regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by it as shall
be reasonably required to effect the registration of such Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably request. At least five (5) business days prior to the first
anticipated filing date of a Registration Statement, the Company shall notify each Buyer of the information the Company requires from such Buyer. Any such information shall not contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein, or necessary to make the statements therein not misleading. 
 b. Each Buyer, by such Buyer’s
acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of a Registration Statement hereunder, unless such Buyer has notified the Company in
writing of the Buyer’s election to exclude all of the Buyer’s Registrable Securities from such Registration Statement. 
 c. In the
event of an underwritten offering pursuant to Section 2(b) in which any Registrable Securities are to be included, the Buyer agrees to enter into and perform the Buyer’s obligations under an underwriting agreement, in usual and customary
form, including, without limitation, customary indemnification and contribution obligations, with the managing underwriter of such offering and take such other actions as are reasonably required in order to expedite or facilitate the disposition of
the Registrable Securities, unless the Buyer has notified the Company in writing of the Buyer’s election to exclude all of the Buyer’s Registrable Securities from such Registration Statement. 

d. Each Buyer agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 3(e) or 3(f),
the Buyer will immediately discontinue disposition of Registrable Securities pursuant to the Registration Statement covering such Registrable Securities until the Buyer’s receipt of the copies of the supplemented or amended prospectus
contemplated by Section 3(e) or 3(f) and, if so directed by the Company, the Buyer shall deliver to the Company (at the expense of the Company) or destroy (and deliver to the Company a certificate of destruction) all copies in the Buyer’s
possession, of the prospectus covering such Registrable Securities current at the time of receipt of such notice. 
 5. REGISTRATION
FAILURE. In the event of a Registration Failure (as defined in the Warrants), the Buyers shall be entitled to Failure Payments (as defined in the Warrants) and such other rights as set forth in the Warrants, subject to all limitations set forth
in the Warrants. 

  
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 6. EXPENSES OF REGISTRATION. All reasonable expenses, other than underwriting discounts and
commissions, incurred in connection with registrations, filings or qualifications pursuant to Sections 2 and 3, including, without limitation, all registration, listing and qualification fees, printers and accounting fees, and the fees and
disbursements of counsel for the Company shall be borne by the Company. 
 7. INDEMNIFICATION. In the event any Registrable Securities
are included in a Registration Statement under this Agreement: 
 a. The Company will indemnify, hold harmless and defend (i) each Buyer,
(ii) the directors, officers, partners, managers, members, employees, agents and each Person who controls any Buyer within the meaning of the Securities Act or the Exchange Act, if any, (iii) any underwriter (as defined in the Securities
Act) for each Buyer in connection with an underwritten offering pursuant to Section 2(b) hereof, and (iv) the directors, officers, partners, employees and each Person who controls any such underwriter within the meaning of the Securities
Act or the Exchange Act, if any (each, an “Indemnified Person”), against any joint or several losses, claims, damages, liabilities or expenses (collectively, together with actions, proceedings or inquiries by any regulatory or
self-regulatory organization, whether commenced or threatened, in respect thereof, “Claims”) to which any of them may become subject insofar as such Claims arise out of or are based upon: (i) any untrue statement or alleged untrue
statement of a material fact in a Registration Statement or the omission or alleged omission to state therein a material fact required to be stated or necessary to make the statements therein not misleading; (ii) any untrue statement or alleged
untrue statement of a material fact contained in any preliminary prospectus if used prior to the effective date of such Registration Statement, or contained in the final prospectus (as amended or supplemented, if the Company files any amendment
thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any material fact necessary to make the statements made therein, in light of the circumstances under which the statements therein were made, not
misleading; or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder relating to the offer
or sale of the Registrable Securities (the matters in the foregoing clauses (i) through (iii) being, collectively, “Violations”). The Company shall reimburse the Indemnified Person, promptly as such expenses are incurred and are
due and payable, for any reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary contained herein, the indemnification agreement
contained in this Section 7(a) shall not apply to a Claim arising out of or based upon a Violation to the extent that such Violation occurs in reliance upon and in conformity with information furnished in writing to the Company by any
Indemnified Person for use in connection with the preparation of such Registration Statement or any such amendment thereof or supplement thereto. Such indemnity shall remain in full force and effect regardless of any investigation made by or on
behalf of the Indemnified Person and shall survive the transfer of the Registrable Securities by the Buyer pursuant to Section 10. 
 b.
Promptly after receipt by an Indemnified Person under this Section 7 of notice of the commencement of any action (including any governmental action), such Indemnified Person shall, if a Claim in respect thereof is to be made against the Company
under this Section 7, deliver to the Company a written notice of the commencement thereof, and the Company shall have the right to participate in, and, to the extent the Company so desires, to assume control of the defense thereof with counsel
mutually satisfactory to the Company and the Indemnified Person, as the case may be. 
 PROVIDED, HOWEVER, that an Indemnified Person
shall have the right to retain its own counsel with the reasonable fees and expenses to be paid by the Company, if, in the reasonable opinion of counsel for the Buyer, the representation by such counsel of the Indemnified Person and the Company
would be inappropriate due to actual or potential differing interests between such Indemnified Person and any other party represented by such counsel in such proceeding. The Company shall pay for only one separate legal counsel for the Indemnified
Persons, and such legal counsel shall be selected by Buyers. The failure to deliver written notice to the Company within a reasonable time of the commencement of any such action shall not relieve the Company of any liability to the Indemnified
Person under this Section 7, except to the extent that the Company is actually prejudiced in its ability to defend such action. The indemnification required by this Section 7 shall be made by periodic payments of the amount thereof during
the course of the investigation or defense, as such expense, loss, damage or liability is incurred and is due and payable. 

  
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 c. Each Buyer will indemnify, hold harmless and defend (i) the Company, and (ii) the directors,
officers, partners, managers, members, employees, or agents of the Company, if any (each, a “Company Indemnified Person”), against any joint or several losses, claims, damages, liabilities or expenses (collectively, together with actions,
proceedings or inquiries by any regulatory or self-regulatory organization, whether commenced or threatened, in respect thereof, “Indemnity Claims”) to which any of them may become subject insofar as such Claims arise out of or are based
upon any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of the
Registrable Securities, which occurs due to the inclusion by the Company in a Registration Statement of false or misleading information about a Buyer, where such information was furnished in writing to the Company by such Buyer for the purpose of
inclusion in such Registration Statement. Notwithstanding anything herein to the contrary, the indemnity agreement contained in this Section 7(c) shall not apply to amounts paid in settlement of any Indemnity Claim if such settlement is
effected without the prior written consent of the Buyers which consent shall not be unreasonably withheld or delayed; and provided, further, however, that a Buyer shall be liable under this Section 7(c) for only that amount of an Indemnity
Claim as does not exceed the net amount of proceeds received by such Buyer as a result of the sale of Registrable Securities pursuant to such Registration Statement. 
 d. Promptly after receipt by a Company Indemnified Person under this Section 7 of notice of the commencement of any action (including any governmental action), such Company Indemnified Person shall,
if an Indemnity Claim in respect thereof is to be made against a Buyer under this Section 7, deliver to such Buyer a written notice of the commencement thereof, and such Buyer shall have the right to participate in, and, to the extent such
Buyer so desires, to assume control of the defense thereof with counsel mutually satisfactory to such Buyer and the Company Indemnified Person, as the case may be. 
 8. CONTRIBUTION. To the extent any indemnification by the Company is prohibited or limited by law, the Company agrees to make the maximum contribution with respect to any amounts for which it would
otherwise be liable under Section 7 to the fullest extent permitted by law, based upon a comparative fault standard. 
 9. REPORTS UNDER
THE 1934 ACT. With a view to making available to the Buyers the benefits of Rule 144 promulgated under the Securities Act or any other similar rule or regulation of the SEC that may at any time permit the Buyers to sell securities of the
Company to the public without registration the Company agrees to: 
 a. make and keep public information available, as those terms are
understood and defined in Rule 144; 
 b. file with the SEC in a timely manner all reports and other documents required of the Company
under the Securities Act and the Exchange Act so long as the Company remains subject to such requirements and the filing of such reports and other documents is required for the applicable provisions of Rule 144; and 

c. so long as the Buyers own Registrable Securities, promptly upon request, furnish to the Buyers (i) a written statement by the Company that it has
complied with the reporting requirements of the Securities Act and the Exchange Act as required for applicable provisions of Rule 144, (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and
documents so filed by the Company and (iii) such other information as may be reasonably requested to permit the Buyers to sell such securities pursuant to Rule 144 without registration. 

10. ASSIGNMENT OF REGISTRATION RIGHTS. The rights under this Agreement shall be automatically assignable by each Buyer to any transferee of all or
any portion of the Registrable Securities if: (i) the Buyer agrees in writing with the transferee or assignee to assign such rights, and a copy of such agreement is furnished to the Company within a reasonable time after such assignment,
(ii) the Company is, within a reasonable time after such transfer or assignment, furnished with written notice of (a) the name and address of such transferee or assignee, and (b) the securities with respect to which such registration
rights are being transferred or assigned, and (iii) at or before the time the Company receives the written notice contemplated by clause (ii) of this sentence, the transferee or assignee agrees in writing with the Company to be bound by
all of the provisions contained herein. In the event that a Buyer transfers all or any portion of its Registrable Securities pursuant to this Section, the Company shall have at least ten (10) days to file any amendments or supplements necessary
to keep a Registration Statement current and 

  
 8 

 
effective pursuant to Rule 415, and the commencement date of any Event of Failure (as defined in the Warrants) or Event of Default (as defined in the Warrants) under the Warrants caused
thereby will be extended by ten (10) days. 
 11. AMENDMENT OF REGISTRATION RIGHTS. Provisions of this Agreement may be amended and
the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively), only with written consent of the Company and the holders of a majority in interest of then-outstanding Registrable
Securities. Any amendment or waiver effected in accordance with this Section 11 shall be binding upon each of the Buyers and the Company. 

12. MISCELLANEOUS. 
 a. A Person is
deemed to be a holder of Registrable Securities whenever such Person owns of record or beneficially through a “street name” holder such Registrable Securities. If the Company receives conflicting instructions, notices or elections from two
or more Persons with respect to the same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from the registered owner of such Registrable Securities. 

b. Any notices required or permitted to be given under the terms hereof shall be sent by certified or registered mail (return receipt requested) or
delivered personally or by courier (including a recognized overnight delivery service) or by facsimile and shall be effective five days after being placed in the mail, if mailed by regular United States mail, or upon receipt, if delivered personally
or by courier (including a recognized overnight delivery service) or by facsimile, in each case addressed to a party. The addresses for such communications shall be: 
 If to the Company: 
 Titan Pharmaceuticals, Inc. 

400 Oyster Point Blvd., Suite 505 
 South San
Francisco, CA 94080 
 Fax: 
 Attn:

 With copy to: 
 Loeb & Loeb
LLP 
 345 Park Avenue 
 New York, 10154

 Fax: (212) 214-0706 
 Attn: Fran
Stoller, Esq. 
 If to a Buyer: 
 c/o
Deerfield Capital, L.P. 
 780 Third Avenue, 37th Floor 
 New
York, New York 10017 
 Fax: (212) 599-1248 
 Attn: James E. Flynn 
 With a copy to: 
 Katten Muchin Rosenman LLP 
 575 Madison Avenue 

New York, New York 10022 
 Fax:
(212) 940-8776 
 Attn: Mark I. Fisher, Esq. 
          Elliot Press, Esq. 
 Each party shall
provide notice to the other party of any change in address. 

  
 9 

 c. Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a
party in exercising such right or remedy, shall not operate as a waiver thereof. 
 d. Governing Law. All questions concerning the construction,
validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees
that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees
or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, borough
of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any
claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this
Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. The
parties hereby waive all rights to a trial by jury. If either party shall commence an action or proceeding to enforce any provision of this Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the other party for
its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding. 
 e. This Agreement, the Warrants and the Facility Agreement (including all schedules and exhibits thereto) constitute the entire agreement among the parties hereto with respect to the subject matter hereof
and thereof. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and therein. This Agreement, the Warrants and the Facility Agreement supersede all prior agreements and understandings
among the parties hereto with respect to the subject matter hereof and thereof. 
 f. Subject to the requirements of Section 10 hereof,
this Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties hereto. 
 g. The headings in
this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. 
 h. This Agreement may be
executed in two or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile
transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement. 
 i. Each party shall do and perform,
or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby. 
 j. The Company acknowledges that a
breach by it of its obligations hereunder will cause irreparable harm to the Buyers by vitiating the intent and purpose of the transactions contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for breach of its
obligations hereunder will be inadequate and agrees, in the event of a breach or threatened breach by the Company of any of the provisions hereunder, that the Buyers shall be entitled, in addition to all other available remedies in law or in equity,
to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof, without the necessity of showing economic loss and without any bond or other security being
required. 
 k. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and
no rules of strict construction will be applied against any party. 

  
 10 

 l. In the event that any provision of this Agreement is invalid or unenforceable under any applicable
statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any provision hereof which may prove invalid or
unenforceable under any law shall not affect the validity or enforceability of any other provision hereof. 
 m. In the event a Buyer shall sell
or otherwise transfer any of such holder’s Registrable Securities, each transferee shall be allocated a pro rata portion of the number of Registrable Securities included in a Registration Statement for such transferor. 

n. There shall be no oral modifications or amendments to this Agreement. This Agreement may be modified or amended only in writing. 

[Remainder of page left intentionally blank] 
 [Signature page follows] 

  
 11 

 IN WITNESS WHEREOF, the undersigned Buyers and the Company have caused this Registration
Rights Agreement to be duly executed as of the date first written above. 
  

							
	COMPANY:	  	BUYERS:
		
	TITAN PHARMACEUTICALS, INC.	  	DEERFIELD PRIVATE DESIGN FUND II, L.P.
				
		 		  	By:	 	Deerfield Capital, L.P., General Partner
	By: 	 	 /s/ Sunil Bhonsle
	  	By:	 	J. E. Flynn Capital LLC, General Partner
	Name:	 	Sunil Bhonsle	  		 	
	Title:	 	President	  	By:	 	 /s/ David Clark

		 		  	Name:	 	David Clark
		 		  	Title:	 	Authorized Signatory
			
		 		  	DEERFIELD PRIVATE DESIGN INTERNATIONAL II, L.P.
				
		 		  	By:	 	Deerfield Capital, L.P., General Partner
		 		  	By:	 	J. E. Flynn Capital LLC, General Partner
				
		 		  	By:	 	 /s/ David Clark

		 		  	Name:	 	David Clark
		 		  	Title:	 	Authorized Signatory
			
		 		  	DEERFIELD SPECIAL SITUATIONS FUND, L.P.
				
		 		  	By:	 	Deerfield Capital, L.P., General Partner
		 		  	By:	 	J. E. Flynn Capital LLC, General Partner
				
		 		  	By:	 	 /s/ David Clark

		 		  	Name:	 	David Clark
		 		  	Title:	 	Authorized Signatory
			
		 		  	DEERFIELD SPECIAL SITUATIONS FUND INTERNATIONAL LIMITED
				
		 		  	By:	 	 /s/ David Clark

		 		  	Name:	 	David Clark
		 		  	Title:	 	Authorized Signatory

 [Signature Page
to Registration Rights AgreementFacility Agreement

 Exhibit 10.1 
 FACILITY AGREEMENT 
 FACILITY AGREEMENT (this
“Agreement”), dated as of March 15, 2011, between Titan Pharmaceuticals, Inc., a Delaware corporation (the “Borrower”), Deerfield Private Design Fund II, L.P., a Delaware limited partnership, Deerfield Private
Design International II, L.P., a limited partnership organized under the laws of the British Virgin Islands, Deerfield Special Situations Fund, L.P., a Delaware limited partnership and Deerfield Special Situations Fund International Limited, a
company organized under the laws of the British Virgin Islands (individually, a “Lender” and together, the “Lenders” and, together with the Borrower, the “Parties”). 

W I T N E S S E T H 
 WHEREAS, the Borrower wishes to borrow from the Lenders funds for general corporate purposes; and 
 WHEREAS, the Lenders desire to make a loan to the Borrower for such purpose (the “Loan”), 
 NOW, THEREFORE, in consideration of the mutual agreements set forth herein, the Parties agree as follows: 
 ARTICLE I 
 DEFINITIONS 

Section 1.1 General Definitions. Wherever used in this Agreement, the Exhibits or the Schedules attached hereto, unless the
context otherwise requires, the following terms have the following meanings: 
 “Additional Amounts” has the
meaning given to it in Section 2.4(b). 
 “Affiliate” means, with respect to any Person, (a) any
other Person directly or indirectly controlling, controlled by, or under common control with that Person; (b) any other Person owning beneficially or controlling ten percent (10%) or more of the equity interest in such Person; (c) any
officer, director, partner, member, or shareholder of such Person; or (d) any spouse, parent, sibling (natural born or adopted) or child (natural born or adopted) of such Person. As used in this definition of “Affiliate,” the term
“control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities or partnership or other ownership interest, by
contract, or otherwise. 
 “Aggregate Deferred Payments” has the meaning given to it in Section 2.2(b).

 “Business Day” means a day on which banks are open for business in The City of New York and Los Angeles.

 “Common Stock” means the common stock, par value $0.001 per share, of the
Borrower. 
 “Default” means any event which, at the giving of notice, lapse of time or fulfillment of any
other applicable condition (or any combination of the foregoing), would constitute an Event of Default. 

“Dollars” and the “$” sign mean the lawful currency of the United States of America. 

“Event of Default” has the meaning given to it in Section 4.5. 

“Excluded Taxes” means, with respect to any Lender (a) income or franchise taxes imposed on (or measured by) such
Person’s net income, or any taxes (other than Other Taxes) imposed on its net capital or net worth, by any jurisdiction under the laws of which such recipient is organized or in which its principal office is located or in which it is doing
business (other than solely by reason of the execution, delivery or enforcement of, or the transactions otherwise contemplated by, this Agreement or any other Financing Document), (b) any branch profits taxes or any similar tax imposed by any
jurisdiction described in clause (a) of this sentence, and (c) any taxes imposed pursuant to FATCA because such Lender failed to comply with the applicable requirements under Section 1471(b) or Section 1472(b) of the IRC
(including any agreements or requests entered into or issued pursuant to Section 1471(b) or 1472(b) of the IRC) or elects to be withheld upon pursuant to Section 1471(b)(3) of the IRC. 

“FATCA” means Sections 1471 through 1474 of the IRC, as in effect on the date hereof, and any applicable Treasury
regulations promulgated thereunder or published administrative guidance implementing such Sections. 
 “Final
Payment” means such amount as may be necessary to repay the outstanding principal amount and accrued and unpaid interest of the Notes in full and any other amounts owing by the Borrower to the Lenders pursuant to the Financing Documents;
provided however, that if the Final Payment is made pursuant to Section 4.4, such principal amount shall be calculated at 110% thereof. 
 “Final Payment Date” means the earlier of (i) the date on which the Borrower makes the Final Payment and (ii) the Maturity Date. 

“Financing Documents” means this Agreement, the Notes, the Warrants, the Security Agreement, the Registration Rights
Agreement dated as of the date hereof, by and among the Borrower and the Lenders and any other document or instrument delivered in connection with any of the foregoing whether or not specifically mentioned herein or therein. 

“Foreign Person” has the meaning given to such term in Section 2.4. 

“GAAP” means generally accepted accounting principles, practices and procedures in effect from time to time in the
United States of America. 
 “Government Authority” means any government, governmental department, ministry,
cabinet, commission, board, bureau, agency, tribunal, regulatory authority, instrumentality, judicial, legislative, fiscal, or administrative body or entity, domestic or foreign, federal, state or

  
 2 

 
local having jurisdiction over the matter or matters and Person or Persons in question, including, without limitation, the SEC. 

“Indebtedness” means the following, whether direct or contingent, of the Borrower: 

1. all indebtedness for borrowed money; 
 2. the deferred purchase price of assets or services which in accordance with GAAP would be shown to be a liability (or on the liability side of a balance sheet); 

3. all guaranty obligations; 
 4. the maximum amount of all letters of credit issued or acceptance facilities established for the account of the Borrower and, without duplication, all drafts drawn thereunder (other than letters of
credit supporting other indebtedness of Borrower and which are otherwise permitted hereunder); 
 5. all capitalized lease
obligations; 
 6. all indebtedness of another Person secured by any Lien on any property of the Borrower, whether or not such
indebtedness has been assumed or is recourse; 
 7. all obligations under take-or-pay or similar arrangements or under any
interest rate swaps, caps, floors, collars and other interest hedge or protection agreements, treasury locks, equity forward contracts, currency agreements or commodity purchase or option agreements or other interest or exchange rate or commodity
price hedging agreements and any other derivative instruments, in each case, whether the Borrower is liable contingently or otherwise, as obligor, guarantor or otherwise, or in respect of which obligations the Borrower otherwise assures a creditor
against loss; 
 8. indebtedness created or arising under any conditional sale or title retention agreement; and 

9. obligations of the Borrower with respect to withdrawal liability to or on behalf of any “multi employer plan” as defined in
Section 4001(a) of ERISA. 
 “Indemnified Person” has the meaning given to it in Section 5.11.

 “Indemnified Taxes” means Taxes (other than Excluded Taxes) and Other Taxes. 

“Indemnity” has the meaning given to it in Section 5.11. 

“Interest Rate” means 8.5% per annum. 
 “IRC” means the Internal Revenue Code of 1986, as amended, and all regulations promulgated thereunder. 
 “Liabilities” means all claims, actions, suits, judgments, damages, losses, liability, obligations, responsibilities, fines, penalties, sanctions, costs, fees, taxes, commissions,
charges, 

  
 3 

 
disbursements and expenses, in each case of any kind or nature (including interest accrued thereon or as a result thereto and reasonable fees, charges and disbursements of financial, legal and
other advisors and consultants), whether joint or several, whether or not indirect, contingent, consequential, actual, punitive, treble or otherwise. 
 “Lien” means any lien, pledge, preferential arrangement, mortgage, security interest, deed of trust, charge, assignment, hypothecation, title retention, privilege or other encumbrance on
or with respect to property or interest in property having the practical effect of constituting a security interest, in each case with respect to the payment of any obligation with, or from the proceeds of, any asset or revenue of any kind.

 “Loss” has the meaning given to it in Section 5.11. 

“Major Transaction” has the meaning given to it in the Warrants. 

“Material Adverse Effect” means a material adverse effect on (a) the business, operations, condition (financial or
otherwise) or property of the Borrower, (b) the validity or enforceability of any provision of any Financing Document, (c) the ability of the Borrower to timely perform the Obligations or (d) the rights and remedies of the Lenders
under any Financing Document. 
 “Maturity Date” means the fifth anniversary of the issue date of the Notes.

 “Notes” means the notes issued to the Lenders evidencing the Loan in the forms attached hereto as Exhibits
A-1, A-2, A-3 and A-4. 
 “Novartis Event” means the termination by Novartis Pharma A.G.
(“Novartis”) of the entire Territory pursuant to Section 10.1 of the Sublicense Agreement effective as of November 20, 1997 between the Borrower and Novartis. 

“Obligations” means all obligations (monetary or otherwise) of the Borrower arising under or in connection with the
Financing Documents. 
 “Organizational Documents” means the Certificate of Incorporation and By-laws of the
Borrower. 
 “Other Taxes” means any and all present or future stamp or documentary taxes or any other excise
or property taxes, charges or similar levies, together with any interest, fees, additions to tax or penalties applicable thereto (including by reason of any delay in payment) arising from any payment made hereunder or from the execution, delivery,
registration or enforcement of, or otherwise with respect to, this Agreement or any other Financing Document. 

“Permitted Distributions” means (a) purchases of capital stock from former employees, consultants and directors
pursuant to repurchase agreements or other similar agreements in an aggregate amount not to exceed $100,000 in any fiscal year, provided that at the time of such purchase no Event of Default has occurred and is continuing; (b) purchases for
value of any rights distributed in connection with any stockholder rights plan; (c) purchases of capital stock or options to acquire such capital stock with the proceeds received from a substantially concurrent

  
 4 

 
issuance of capital stock or convertible securities; (d) purchases of capital stock pledged as collateral for loans to employees; and (e) purchases of capital stock in connection with
the exercise of stock options or stock appreciation rights by way of cashless exercise or in connection with the satisfaction of withholding tax obligations 
 “Permitted Indebtedness” means: (a) indebtedness of Borrower in favor of the Lenders arising under this Agreement and the other Financing Documents; (b) indebtedness existing as
of the date hereof and disclosed on Exhibit B hereof; (c) Subordinated Debt, provided that the aggregate outstanding principal amount of all such Subordinated Debt shall not exceed $10,000,000 at any time; (d) unsecured Indebtedness to
trade creditors incurred in the ordinary course of business; (e) capitalized leases and Purchase Money Indebtedness not to exceed $100,000 in the aggregate in any fiscal year; (f) Indebtedness for deferred compensation to employees of the
Borrower; and (g) refinanced Permitted Indebtedness, provided that (i) such refinanced Indebtedness has an aggregate outstanding principal amount not greater than the aggregate principal amount of such Permitted Indebtedness outstanding at
the time of such refinancing, (ii) such refinanced Indebtedness has a maturity of no shorter than that of such Permitted Indebtedness, (iii) such refinanced Indebtedness does not accelerate the amortization of such Permitted Indebtedness.

 “Permitted Liens” means (a) Liens existing on the date hereof in favor of Oxford Finance Corporation
which shall be released simultaneously with the funding of the Loan hereunder; (b) Liens in favor of the Lenders; (c) Liens for taxes, fees, assessments or other government charges or levies, either not delinquent or being contested in
good faith by appropriate proceedings diligently prosecuted that stay the enforcement of any Lien and for which Borrower maintains adequate reserves on its books in accordance with GAAP; (d) Purchase Money Liens; (e) Liens incurred in the
extension, renewal or refinancing of the indebtedness secured by Liens described in (a) through (d), but any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the
indebtedness it secures may not increase; (f) leases or subleases of real property granted in the ordinary course of the Borrower’s business, and leases, subleases, non-exclusive licenses or sublicenses of personal property (other than
intellectual property) granted in the ordinary course of the Borrower’s business; (g) (i) non-exclusive licenses of intellectual property granted to third parties in the ordinary course of business, and (ii) licenses of
intellectual property that could not result in a legal transfer of title of the licensed property that may be exclusive other than as to territory and that may be exclusive as to territory only as to discreet geographical areas outside of the United
States; (h) leases or subleases granted in the ordinary course of Borrower’s business, including in connection with Borrower’s leased premises or leased property; (i) Liens in favor of financial institutions arising in connection
with Borrower’s deposit or securities accounts held at such institutions; (j) Liens of carriers, warehousemen, artisans, bailees, mechanics and materialmen incurred in the ordinary course of business securing sums not overdue;
(k) Liens incurred in the ordinary course of business in connection with workmen’s compensation, unemployment insurance or other forms of governmental insurance or benefits relating to employees securing sums (i) not overdue or
(ii) being contested in good faith provided that adequate reserves with respect thereto are maintained on the books of the Borrower in conformity with GAAP; and (l) Liens other than those described above which do not at any time exceed
$25,000 in the aggregate. 

  
 5 

 “Person” means and includes any natural person, individual, partnership,
joint venture, corporation, trust, limited liability company, limited company, joint stock company, unincorporated organization, government entity or any political subdivision or agency thereof, or any other entity. 

“Prepayment Date” has the meaning given to it in Section 2.2(b). 

“Prepayment Revenue” means the net cash consideration received by the Borrower from the sale, licensing and/or marketing
of Probuphine. 
 “Purchase Money Indebtedness” means (a) any indebtedness incurred for the payment of all
or any part of the purchase price of any fixed asset, (b) any indebtedness incurred for the sole purpose of financing or refinancing all or any part of the purchase price of any fixed asset, and (c) any renewals, extensions or refinancings
thereof (subject to the limitations set forth in clause (g) of the definition of Permitted Indebtedness). 

“Purchase Money Lien” means any Lien upon any fixed assets that secures the Purchase Money Indebtedness related thereto
but only if such Lien shall at all times be confined solely to the asset the purchase price of which was financed or refinanced through the incurrence of the Purchase Money Indebtedness secured by such Lien and only if such Lien secures only such
Purchase Money Indebtedness. 
 “Put Notice” has the meaning given to it in Section 4.4. 

“SEC” means the United States Securities and Exchange Commission. 

“Securities Act” means the Securities Act of 1933, including the rules and regulations promulgated thereunder.

 “Security Agreement” means the Security Agreement, dated as of the date of this Agreement, between the
Borrower and the Lenders. 
 “Securities Exchange Act” means the Securities Exchange Act of 1934, including the
rules and regulations promulgated thereunder. 
 “Subordinated Debt” means (a) Indebtedness incurred by
Borrower subordinated to Borrower’s Indebtedness owed to Lenders and which is reflected in a written agreement in a manner and form acceptable to Lenders in their sole and absolute discretion and (b) to the extent the terms of
subordination do not change adversely to Lenders, refinancings, refundings, renewals, amendments or extensions of any of the foregoing. 
 “Subsidiary or Subsidiaries” means any entity of which securities or other ownership interests having ordinary voting power to elect a majority of the board of directors or other Persons
performing similar functions are at the time directly or indirectly owned by the Borrower. 
 “Taxes” means all
deductions or withholdings for any and all present and future taxes, levies, imposts, stamp or other duties, fees, assessments, deductions, withholdings, all other 

  
 6 

 
governmental charges, and all liabilities with respect thereto, including without limitation interest, additions to tax and penalties. 

“Trading Days” has the meaning set forth in the Warrants. 

“Warrants” means the Warrants issued pursuant to Section 2.7. 

Section 1.2 Interpretation. In this Agreement, unless the context otherwise requires, all words and personal pronouns
relating thereto shall be read and construed as the number and gender of the party or parties requires and the verb shall be read and construed as agreeing with the required word and pronoun; the division of this Agreement into Articles and Sections
and the use of headings and captions is for convenience of reference only and shall not modify or affect the interpretation or construction of this Agreement or any of its provisions; the words “herein,” “hereof,”
“hereunder,” “hereinafter” and “hereto” and words of similar import refer to this Agreement as a whole and not to any particular Article or Section hereof; the words “include,” “including,” and
derivations thereof shall be deemed to have the phrase “without limitation” attached thereto unless otherwise expressly stated; references to a specified Article, Exhibit or Section shall be construed as a reference to that specified
Article, Exhibit or Section of this Agreement; and any reference to any of the Financing Documents means such agreement or document as the same shall be amended, supplemented or modified and from time to time in effect. 

ARTICLE II 

AGREEMENT FOR THE LOAN 
 Section 2.1 Disbursements. Within 15 Business Days after the date hereof, the Lenders shall disburse Seventeen Million Dollars ($17,000,000) to a deposit account in the name of the Borrower.

 Section 2.2 Repayment. (a) Subject to the provisions of Section 2.2(b), the Borrower shall prepay the
Notes on the first, second, third and fourth anniversaries of their issue date in an amount equal to 10%, 15%, 25% and 25%, respectively, of their initial principal amount. 

(b) Upon the occurrence of a Novartis Event and thereafter to and including September 30, 2012, the Borrower
may, in lieu of making payments of principal and interest on the Notes required thereunder, elect by 10 days’ notice to the Lenders to increase the principal amounts of the Notes, pro rata, by an amount equal to such payments (the
“Aggregate Deferred Payments”). If the Borrower makes any such election, on the 10th Business Day of each month thereafter until the 10th Business Day of October, 2012 (a “Prepayment Date”), the Borrower shall prepay the Notes pursuant to the procedures set forth in the
Security Agreement in an amount equal to 75% of the Prepayment Revenue actually received by Borrower during the immediately preceding month. The Borrower shall provide to the Lenders at least five Business Days’ notice prior to each Prepayment
Date the calculation of the Prepayment Revenue actually received by Borrower for the preceding month, together with the basis for such calculation. The Borrower shall promptly provide to the Lenders such information as the Lenders shall reasonably
request to permit the Lenders to verify each such calculation. On October 12, 2012, the 

  
 7 

 
Borrower shall pay to the Lenders the amount, if any, by which the Aggregate Deferred Payments exceed the aggregate Prepayment Revenues theretofore received by the Lenders. 

(c) The Borrower shall remit the Final Payment to the Lenders on the Final Payment Date. 

(d) The Borrower may prepay each of the Notes at any time with a premium equal to 110% of its outstanding principal amount. 

(e) The proceeds of any prepayment made hereunder shall be applied, pro rata, first to accrued and unpaid interest and second, to
the outstanding principal amount. Each prepayment shall be allocated 37.28% to Deerfield Private Design Fund II, L.P., 42.72% to Deerfield Private Design International II, L.P., 7.8% to Deerfield Special Situations Fund, L.P. and 12.2% to Deerfield
Special Situations Fund International Limited. 
 Section 2.3 Payments Payments of any amounts due to the Lenders
under any Financing Document shall be made in Dollars in immediately available funds prior to 2:30 p.m. New York City time on such date that any such payment is due, at such bank or places as the Lenders shall from time to time designate in writing.
The Borrower shall pay all and any costs (administrative or otherwise) imposed by Borrower’s banks, clearing houses, or any other financial institution in connection with making any such payments. 

Section 2.4 Taxes, Duties and Fees 
 (a) Any and all payments hereunder or under any other Financing Document shall be made, in accordance with this Section 2.4, free and clear of and without deduction for any and all present or future
Indemnified Taxes except as required by applicable law. If Borrower shall be required by law to deduct any Indemnified Taxes from or in respect of any sum payable hereunder or under any other Financing Document, (i) the sum payable shall be
increased by as much as shall be necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section 2.4) the Lenders shall receive an amount equal to the sum they would have
received had no such deductions been made (any and all such additional amounts payable to Lenders shall hereafter be referred to as the “Additional Amounts”), (ii) Borrower shall make such deductions, and (iii) Borrower shall pay
the full amount deducted to the relevant taxing or other authority in accordance with applicable law. Within thirty (30) days after the date of any payment of such Taxes, Borrower shall furnish to the applicable Lender the original or a
certified copy of a receipt evidencing payment thereof or other evidence of such payment reasonably satisfactory to such Lender. 
 (b) Borrower shall, within ten (10) days of demand therefor, pay to each applicable Lender the full amount of Indemnified Taxes (including any Taxes, other than Excluded Taxes, imposed by any
jurisdiction on amounts payable under this Section 2.4) paid by such Lender, as appropriate, and any Liabilities relating thereto. 
 (c) Each Lender (other than a Foreign Person (as hereafter defined)) on or before the Closing Date shall provide to Borrower a properly completed and executed IRS Form W-9 certifying that such Lender is
organized under the laws of the United States. Each Lender organized under the laws of a jurisdiction outside the United States (a “Foreign Person”) 

  
 8 

 
shall provide to Borrower a properly completed and executed IRS Form W-8ECI, W-8BEN, W-8IMY or other applicable form, or any other certificate or document reasonably requested by the Borrower
certifying that such Foreign Person is entitled to an exemption from United States withholding tax on payments hereunder and under each other Financing Document (a “Certificate of Exemption”). Any Foreign Person that seeks to become a
Lender or participant under this Agreement (including by way of assignment from a Lender) shall provide a Certificate of Exemption to Borrower prior to becoming a Lender or participant hereunder. No Foreign Person may become a Lender or participant
hereunder if such Person fails to deliver a Certificate of Exemption in advance of becoming a Lender or participant. In addition, a Foreign Person shall deliver a Certificate of Exemption to Borrower promptly upon the obsolescence, expiration or
invalidity of any Certificate of Exemption previously delivered by such Person. A Foreign Person shall promptly notify Borrower at any time it determines that it is no longer in a position to provide any previously delivered Certificate of Exemption
to Borrower. Notwithstanding anything to the contrary contained herein, a Foreign Person shall not be required to deliver any form, certificate or document pursuant to this Section 2.4 that such Foreign Person is not legally able to deliver;
provided, however, that if a Foreign Person does not deliver a Certificate of Exemption or has previously delivered a Certificate of Exemption pursuant to this Section 2.4 but is no longer legally able to or otherwise does not provide a
Certificate of Exemption in accordance with the terms hereof (other than by reason of a change in the applicable statutes or treaties or other law), then such Foreign Person shall not be entitled to any payment pursuant to Section 2.4 with
respect to any Indemnified Taxes that are attributable to such Foreign Person’s inability or failure to deliver a Certificate of Exemption in accordance with the terms hereof. 

(d) If a payment made to a Foreign Person hereunder or under any other Financing Document would be subject to withholding tax imposed by
FATCA if such Foreign Person were to fail to comply with the applicable requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the IRC, as applicable, or in any agreement or request entered into or issued pursuant to
such Sections), such Foreign Person shall deliver to Borrower, at the time or times prescribed by law and at such time or times reasonably requested by Borrower, such documentation prescribed by applicable law (including as prescribed by
Section 1471(b)(3)(C)(i) of the IRC) and such additional documentation reasonably requested by Borrower as may be necessary for Borrower to comply with its obligations under FATCA, to determine that such Foreign Person has complied with such
Foreign Person’s obligations under FATCA or to determine the amount to deduct and withhold from such payment. 
 (e) If a
Lender determines in its sole discretion that it has received a refund from a Government Authority relating to Taxes in respect of which the Borrower paid Additional Amounts, such Lender shall promptly pay such refund to the Borrower, net of all
reasonable and allocable out-of-pocket expense (including any Taxes imposed thereon) of such Lender incurred in obtaining such refund, provided that the Borrower, upon the request of such Lender, agrees to repay the amount paid over to the Borrower
(plus any penalties, interest or other charges imposed by the relevant Governmental Authority), net of any reasonable incremental additional costs, to such Lender if such Lender is required to repay such refund to such Governmental Authority.
Nothing in this Section shall require any Lender to disclose any information it deems confidential (including, without limitation, its tax returns) to any Person, including Borrower. 

  
 9 

 Section 2.5 Interest. The outstanding principal amount of the Loan shall bear
interest at the Interest Rate (calculated on the basis of the actual number of days elapsed) and subject to the provisions of Section 2.2(b), shall be paid in arrears quarterly commencing on July 1, 2011 and on the first day of each
October, January, April and July thereafter, and if any such day is not a Business Day, on the immediately preceding Business Day. 
 Section 2.6 Interest on Late Payments. Without limiting the remedies available to the Lenders under the Financing Documents or otherwise, to the maximum extent permitted by applicable law, if
the Borrower fails to make any payment of principal or interest when due (other than Aggregate Deferred Payments), the Borrower shall pay, in respect of the outstanding principal amount and interest of the Note, interest at the rate per annum equal
to the Interest Rate plus 8% for so long as such payments remain outstanding. Such interest shall be payable on demand. 

Section 2.7 Delivery of Warrants. 
 (a) On the date hereof, the Borrower shall issue to the Lenders Warrants to purchase an aggregate of 6,000,000 shares of Common Stock at an initial Exercise Price (as defined in the Warrants) of $1.57.

 (b) All Warrants issued pursuant to this Section 2.7 shall be substantially in the form attached hereto as Exhibit A-5
and shall be allocated among the Lenders as set forth on Schedule 1. 
 Section 2.8 Facility Fee. On the
issue date of the Notes, the Borrower shall pay to the Lenders a facility fee of $500,000. 
 ARTICLE IIIA 

REPRESENTATIONS AND WARRANTIES 
 Section 3.1A Representations and Warranties of the Borrower The Borrower represents and warrants as of the date hereof as follows: 

(a) The Borrower is a corporation duly organized and validly existing under the laws of the State of Delaware. 

(b) The Borrower is conducting its business in compliance with the Organizational Documents. The Organizational Documents as currently
in effect have been made available to the Lenders and remain in full force and effect. 
 (c) The Borrower has full power and
authority to enter into each of the Financing Documents and to effect the transactions contemplated thereby. 
 (d) All
authorizations, consents, approvals, registrations, exemptions and licenses necessary for the execution and delivery of the Financing Documents and the performance by the Borrower of its obligations thereunder, have been obtained and are in full

  
 10 

 
force and effect, except for filings necessary to comply with laws, rules, regulations and orders required in the ordinary course of business. 

(e) All authorizations, consents, approvals, registrations, exemptions and licenses with or from Government Authorities that are
necessary for the conduct of its business as currently conducted and as proposed to be conducted have been obtained and are in full force and effect, except to the extent any failure to so obtain would not reasonably be expected to have a Material
Adverse Effect. 
 (f) No Default or Event of Default (or any other default or event of default, however described) has
occurred under any of the Financing Documents. 
 (g) Neither the entering into any Financing Document nor the compliance with
any of its terms conflicts with, violates, or results in a breach of any of the terms of, or constitutes a default or event of default (however described) or requires any consent under, to the extent applicable, (i) any agreement to which the
Borrower is a party or by which it or any of its property is bound, (ii) any of the terms of the Organizational Documents or (iii) any judgment, decree, resolution, award or order or any statute, rule or regulation applicable to the
Borrower or its assets, in each case. 
 (h) The Borrower is not engaged in or the subject of any litigation, arbitration,
administrative proceeding, or investigation, nor is there any litigation, arbitration, administrative proceeding or investigation pending or, to the knowledge of the Borrower, threatened before or by any Government Authority against the Borrower,
and the Borrower is not aware of any facts reasonably likely to give rise to any such proceeding or investigation. 
 (i) The
Borrower (i) is capable of paying its debts as they fall due, (ii) is not bankrupt or, after giving effect to the transactions contemplated hereby, insolvent and (iii) has not taken action, and no such action has been taken by a third
party, for the Borrower’s winding up, dissolution, or liquidation or similar executory or judicial proceeding or for the appointment of a liquidator, custodian, receiver, trustee, administrator or other similar officer for the Borrower or any
or all of its assets or revenues. 
 (j) No Lien exists on the Borrower’s assets except for Permitted Liens. 

(k) No Indebtedness exists except for Permitted Indebtedness. 
 (l) The obligation of the Borrower to make any payment under this Agreement (together with all charges in connection therewith) is absolute and unconditional, and there exists no right of setoff or
recoupment, counterclaim, cross-claim or defense of any nature whatsoever to any such payment. 
 Section 3.2 Borrower
Acknowledgment. The Borrower acknowledges that it has made the representations and warranties referred to in Section 3.1A to persuade the Lenders to enter into the Financing Documents and that the Lenders have entered into the Financing
Documents on the basis of, and in full reliance on, each of such representations and warranties. 

  
 11 

 ARTICLE IIIB 
 CONDITIONS OF DISBURSEMENT 
 Section 3.1B Conditions to
Disbursement of the Loan. The obligation of the Lenders to make the Loan shall be subject to the fulfillment of the following conditions on the date the Loan is made: 
 (a) The Lenders shall have received evidence reasonably satisfactory to them of the Borrower’s authority to execute, deliver and perform each of the Financing Documents and to engage in the
transactions contemplated thereby and an opinion of Borrower’s counsel satisfactory to the Lenders; 
 (b) No Default or
Event of Default has occurred; 
 (c) No Liens will exist on the Borrower’s assets other than Permitted Liens; and

 (d) No Indebtedness will exist except for the Loan and Permitted Indebtedness. 

ARTICLE IV 

PARTICULAR COVENANTS AND EVENTS OF DEFAULT 
 Section 4.1 Affirmative Covenants. Unless the Lenders shall otherwise agree: 
 (a) The Borrower shall (i) maintain its existence and qualification to do business in such jurisdictions as may be required to conduct its business, except where the failure to so maintain such
qualification would not reasonably be expected to have a Material Adverse Effect, (ii) maintain all approvals necessary for the Financing Documents to be in effect, and (iii) operate its business with due diligence, efficiency and in
conformity with sound business practices. 
 (b) The Borrower shall comply in all material respects with all applicable laws
and rules, regulations and orders of any Government Authority, except where the necessity of compliance therewith is contested in good faith by appropriate proceedings or where the failure to so comply, individually or in the aggregate, would not
reasonably be expected to have a Material Adverse Effect. 
 (c) The Borrower shall obtain, make and keep in full force and
effect all licenses, contracts, consents, approvals and authorizations from and registrations with Government Authorities that are necessary to conduct its business, except to the extent that the failure to do so would not reasonably be expected to
have a Material Adverse Effect. 
 (d) The Borrower shall promptly notify the Lenders of the occurrence of (i) any Default
or Event of Default; or (ii) any claims, litigation, arbitration, mediation or administrative or regulatory proceedings that are instituted against the Borrower. 

  
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 (e) (i) The Borrower will timely file with the SEC (subject to appropriate extensions made
under Rule 12b-25 of the Securities Exchange Act) any annual, quarterly and other reports required pursuant to Section 13 or 15(d) of the Securities Exchange Act prepared by the Borrower; and (ii) the Borrower will provide to the Lenders
copies of all documents, reports, financial data and other information as the Lenders may reasonably request, and upon reasonable prior notice to the Borrower, permit the Lenders to visit and inspect any of the properties of the Borrower, and to
discuss its affairs, finances and accounts with its officers, all at such times during regular business hours as the Lenders may reasonably request. 
 (f) In the event the closing price of the Common Stock on the principal securities exchange or other securities market on which the Common Stock is then being traded or quoted is greater than $2.50 for
ten (10) consecutive Trading Days (the “Ten Day Period”), then following such Ten Day Period, the Borrower shall use its best efforts to cause the shares of Common Stock to be listed, traded or publicly quoted on an Eligible Market as
soon thereafter as reasonably practicable but in no event more than one hundred and twenty (120) days thereafter. For purposes of this Section 4.1(f), “Eligible Market” means the New York Stock Exchange, Inc., the NYSE Area, the
NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select Market or the NYSE Alternext U.S. 

Section 4.2 Negative Covenants. Unless the Lenders shall otherwise agree: 

(a) The Borrower shall not (i) liquidate or dissolve, or (ii) enter into any consolidation, merger or reorganization, unless
the Borrower is the surviving corporation. 
 (b) The Borrower shall not (i) enter into any partnership, joint venture,
syndicate, pool, profit-sharing or royalty agreement or other combination, or engage in any transaction, in each case, with an Affiliate, whereby its income or profits are, or might be, shared with such Affiliate, (ii) enter into any management
contract or similar arrangement with any Person (other than an officer or employee of the Borrower) whereby a substantial part of its business is managed by such Person, (iii) enter into any partnering arrangement with any Affiliate with
respect to and/or license and/or sell all or any portion of Borrower’s interest in Probuphine to any Affiliate; and (iv) other than in connection with Permitted Distributions, distribute, or permit the distribution, of any assets of the
Borrower or its Subsidiaries, including its intangibles, to any shareholders of the Borrower or the holder of any equity interest in any Subsidiary of the Borrower or any of the Borrower’s Affiliates (other than the Borrower or a Subsidiary of
the Borrower). 
 (c) The Borrower shall not create, incur assume, guarantee or become liable with respect to any Indebtedness,
other than Permitted Indebtedness, or voluntarily prepay any Indebtedness, except prepayments of the Notes. Nothing contained herein or in any other Financing Document shall prohibit or be deemed to prohibit in any manner whatsoever Borrower’s
right to pay deferred compensation to employees. 
 (d) The Borrower shall not incur any Liens other than Permitted Liens.

  
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 Section 4.3 Reimbursement of Other Taxes. The Borrower shall pay all Other Taxes
and shall, upon notice from the Lenders, reimburse the Lenders for any such Other Taxes, in accordance with the terms of Section 2.4 hereof. 
 Section 4.4 Major Transaction Put. The Borrower shall give the Lenders notice of the consummation of a Major Transaction on the shorter of 30 days prior to such consummation or 2 days
following the public announcement thereof. Within 5 days after the receipt of such notice, the Lenders, in the exercise of their sole discretion, may deliver a notice to the Borrower (the “Put Notice”), that the Final Payment shall
be due and payable. If the Lenders deliver a Put Notice, then simultaneously with consummation of any such Major Transaction, the Borrower shall make the Final Payment to the Lenders and the Obligations shall terminate. The Borrower shall not
consummate any Major Transaction without complying with the provisions of this Section 4.4. 
 Section 4.5 General
Acceleration Provision upon Events of Default. If one or more of the events specified in this Section 4.5 (each an “Event of Default”) shall have happened and shall be continuing, the Lenders, by written notice to the
Borrower, (any such notice, an “Acceleration Notice”), may declare the principal of, accrued interest on, the Loan or any part thereof (together with any other amounts accrued or payable under this Agreement) to be, and the same
shall thereupon become, immediately due and payable, without any further notice and without any presentment, demand, or protest of any kind, all of which are hereby expressly waived by the Borrower, and take any further action available at law or in
equity, including, without limitation, the sale of the Loan and all other rights acquired in connection with the Loan, subject, however, to the assignment provisions in Section 5.5 hereof; provided, however, that an Acceleration Notice shall be
deemed to have been sent to Borrower immediately upon the occurrence of any event described in Section 4.5(d) and, in the case of a proceeding of the type described in Section 4.5(d)(iv), shall be deemed to have been withdrawn if such
proceeding is dismissed or discontinued within the 90-day period provided for therein (absent the occurrence of any other Event of Default during such 90-day period): 
 (a) A Lender shall have failed to receive payment of principal and interest when due under the Notes. 
 (b) The Borrower shall have failed to comply with the due observance or performance of any covenant contained in any Financing Document and such failure to comply has not been cured by Borrower within ten
(10) days after the occurrence thereof; provided, however, that if the such non-compliance cannot by its nature be cured within such ten (10) day period or cannot after diligent attempts by Borrower be cured within such ten (10) day
period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional period (which shall not in any case exceed thirty (30) days) to attempt to cure such non-compliance, and within such reasonable time
period the failure to cure such non-compliance shall not be deemed an Event of Default. 
 (c) Any representation or warranty
made by the Borrower in any Financing Document shall have been incorrect, false or misleading in any material respect as of the date it was made. 

  
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 (d) (i) The Borrower shall generally be unable to pay its debts as such debts become due,
or shall admit in writing its inability to pay its debts as they come due or shall make a general assignment for the benefit of creditors; (ii) the Borrower shall declare a moratorium on the payment of its debts; (iii) the commencement by
the Borrower of proceedings to be adjudicated bankrupt or insolvent, or the consent by it to the commencement of bankruptcy or insolvency proceedings against it, or the filing by it of a petition or answer or consent seeking reorganization,
intervention or other similar relief under any applicable law, or the consent by it to the filing of any such petition or to the appointment of an intervenor, receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of any
substantial part of its assets; (iv) the commencement against the Borrower or any substantial part of its assets of a proceeding in any court of competent jurisdiction under any bankruptcy or other applicable law (as now or hereafter in effect)
seeking its liquidation, winding up, dissolution, reorganization, arrangement, adjustment, or the appointment of an intervenor, receiver, liquidator, assignee, trustee, sequestrator (or other similar official), and any such proceeding shall continue
undismissed, or any order, judgment or decree approving or ordering any of the foregoing shall continue unstayed or otherwise in effect, in each case, for a period of ninety (90) days; (v) the making by the Borrower of an assignment for
the benefit of creditors, or the admission by it in writing of its inability to pay its debt generally as they become due; or (vi) any other event shall have occurred which under any applicable law would have an effect analogous to any of those
events listed above in this subsection. 
 (e) One or more judgments against the Borrower taken as a whole or attachments
against any of its property, which in the aggregate amount exceeds $100,000, and such judgment(s) remain unstayed on appeal, undischarged, unbonded or undismissed for a period of thirty (30) days from the date of entry of such judgment(s).

 (f) The Borrower repudiates any Financing Document or challenges the validity or enforceability of any Financing Document.

 (g) The validity of any Financing Document shall be contested by any legislative, executive or judicial body of any
jurisdiction, or any treaty, law, regulation, communiqué, decree, ordinance or policy of any jurisdiction shall render any provision of any Financing Document unenforceable or shall prevent or materially delay the performance or observance by
the Borrower of the Obligations. 
 (h) There is a failure to perform in any agreement to which the Borrower is a party
resulting in the acceleration of the maturity of any Indebtedness in an amount in excess of $100,000. 
 (i) The occurrence of
an Event of Default under the Warrants (as such item is defined in the Warrants). 
 (j) The Borrower breaches any of its
agreements contained in the Royalty Agreement dated the date hereof between the Borrower, Deerfield TTNP Corp. and Deerfield Private Design Fund II, L.P. and such breach is not cured within thirty (30) days following written notice thereof from
Lenders. 

  
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 (k) The director (the “Director”) of the United States Patent and
Trademark Office (the “USPTO”) does not issue a certificate of extension extending the term of the Patent #RE39,198 (the “Fanapt Patent”) prior to the expiration thereof by not less than four years from its current
expiration date of November 15, 2011. Notwithstanding the foregoing, if the Director does issue a certificate of extension extending the Fanapt Patent by not less than four years from its current expiration date of November 15, 2011, but
such certificate does not issue prior to November 15, 2011, and the Director and/or the USPTO has granted an interim extension(s) maintaining the Fanapt Patent pending the issuance of the certificate of extension, no Event of Default shall be
deemed to have occurred unless and until the Fanapt Patent expires without the issuance of a certificate of extension extending the Fanapt Patent by not less than four years from its current expiration date of November 15, 2011. 

Section 4.6 Automatic Acceleration on Dissolution or Bankruptcy. Notwithstanding any other provisions of this Agreement, if
an Event of Default under Section 4.5(d) shall occur, the Final Payment shall thereupon become immediately due and payable without any presentment, demand, protest or notice of any kind, all of which are hereby expressly waived by the Borrower.

 Section 4.7 Recovery of Amounts Due If any amount payable hereunder is not paid within ten (10) Business
Days of its due date, the Borrower hereby authorizes the Lenders to proceed, to the fullest extent permitted by applicable law, without prior notice, by right of set-off, banker’s lien or counterclaim, against any moneys or other assets of the
Borrower to the full extent of all amounts payable to the Lenders. 
 ARTICLE V 

MISCELLANEOUS 
 Section 5.1 Notices. Any communication required or permitted pursuant to this Agreement shall be deemed given (a) when personally delivered to any officer of the party to whom it is
addressed, (b) on the earlier of actual receipt thereof or five (5) days following posting thereof by certified or registered mail, postage prepaid, return receipt requested, (c) upon actual receipt thereof when sent by a recognized
overnight delivery service, or (d) upon actual receipt thereof when sent by telecopier to the number set forth below with telephone communication confirming receipt and subsequently confirmed by registered or certified mail, return receipt
requested, or by recognized overnight delivery service to the address set forth below, in each case addressed to the applicable party at its address set forth below or at such other address as has been furnished in writing by such party to the other
by like notice: 
 For the Borrower: 
 400 Oyster Point Blvd. 
 Suite 505 

South San Francisco, CA 94080 
 Attention: Chief Executive Officer 
 Facsimile: (650) 244-4956 

  
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 With a copy to: 
 Loeb & Loeb LLP 
 345 Park Avenue 

New York, NY 10154 
 Attention: Fran Stoller 
 Facsimile: (212) 214-0706 

For the Lenders c/o: 
 Deerfield Private Design Fund II, L.P. 
 780 Third Avenue,
37th Floor 

New York, New York 10017 
 Attention: Structured Products 
 Facsimile: (212) 599-3075 

With a copy to: 
 Katten Muchin Rosenman LLP 
 575 Madison Avenue 

New York, NY 10022 
 Attention: Mark I. Fisher and Elliot Press 
 Facsimile: (212) 940-6621

 Section 5.2 Waiver of Notice. Whenever any notice is required to be given to the Lenders or the Borrower under
any Financing Document, a waiver thereof in writing signed by the Person(s) entitled to such notice, whether before or after the time stated therein, shall be deemed equivalent to the giving of such notice. 

Section 5.3 Reimbursement of Legal and Other Expenses. If any amount owing to the Lenders under any Financing Document shall
be collected through enforcement of such Financing Document, any refinancing or restructuring of the Loan in the nature of a work-out, settlement, negotiation, or any process of law, or shall be placed in the hands of third Persons for collection,
the Borrower shall pay (in addition to all monies then due in respect of the Loan or otherwise payable under any Financing Document) reasonable attorneys’ and other reasonable fees and expenses incurred in respect of such enforcement,
refinancing, restructuring, process of law on collection. 
 Section 5.4 Applicable Law and Consent to Non-Exclusive New
York Jurisdiction. This Agreement shall be construed in accordance with the laws of the State of New York, without giving effect to the conflicts of laws principles thereof other than Sections 5-1401 and 5-1402 of the General Obligations Law of
such State. 
 (a) Each party hereby irrevocably submits to the jurisdiction of the state and federal courts sitting in The
City of New York or the city of Los Angeles for the adjudication of any dispute in connection herewith or any transaction contemplated hereby, and hereby irrevocably waives and agrees not to assert in any suit, action or other proceeding (a
“Proceeding”), any claim that it is not personally subject to the jurisdiction of any such court or 

  
 17 

 
that such Proceeding is improper such court. Final non-appealable judgment against any party in any such Proceeding shall be conclusive and may be enforced in any jurisdiction by suit on the
judgment. Nothing contained in any Financing Document shall affect the right of the Lenders to commence a Proceeding in any court having jurisdiction, or concurrently in more than one jurisdiction, or to serve process, pleadings and other legal
papers upon the Borrower in any manner authorized by the laws of any such jurisdiction. The Borrower irrevocably waives, to the fullest extent permitted by applicable law, any objection which it may now or hereafter have to the laying of venue of
any Proceeding brought in the courts of the State of New York or in the United States District Court for the Southern District of New York, and any claim that any such Proceeding brought in any such court has been brought in an inconvenient forum.

 (b) The Borrower hereby waives any and all rights to demand a trial by jury in any Proceeding described above. 

(c) To the extent that the Parties may, in any Proceeding, be entitled to the benefit of any provision of law requiring the Borrower or
the Lenders, as applicable, in such Proceeding to post security for the costs of the Borrower or the Lenders, as applicable, or to post a bond or to take similar action, the Parties hereby irrevocably waive such benefit, in each case to the fullest
extent now or hereafter permitted under any applicable laws. 
 Section 5.5 Successor and Assigns. This Agreement
shall bind and inure to the respective successors and assigns of the Parties, except that the Borrower may not assign or otherwise transfer all or any part of its rights under this Agreement or the Obligations without the prior written consent of
the Lenders. Notwithstanding the foregoing, nothing in this Section 5.5 shall be deemed to limit or otherwise restrict a merger, reorganization or sale of substantially all of the assets of the Borrower otherwise permitted hereunder.

 Section 5.6 Entire Agreement. The Financing Documents contain the entire understanding of the Parties with
respect to the matters covered thereby and supersede any and all other written and oral communications, negotiations, commitments and writings with respect thereto. The provisions of this Agreement may be waived, modified, supplemented or amended
only by an instrument in writing signed by the authorized officer of each Party. 
 Section 5.7 Severability. If any
provision contained herein shall be unenforceable under any law, the enforceability of the remaining provisions shall not be affected or impaired thereby. The Parties shall endeavor in good faith negotiations to replace the unenforceable provision
with an enforceable provision the economic effect of which comes as close as possible to that of the unenforceable provision. 

Section 5.8 Counterparts. This Agreement may be executed in several counterparts, and by each Party on separate counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the same agreement. 

Section 5.9 Survival 
 (a) This Agreement and all agreements, representations and warranties made in the other Financing Documents, and in any document, certificate or statement delivered in connection therewith shall be
considered to have been relied upon by the Parties and shall 

  
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survive the execution and delivery of this Agreement and the making of the Loan regardless of any investigation made by any Party or on its behalf, and shall continue in force until the
Obligations shall have been fully paid, and the Lenders shall not be deemed to have waived, by reason of making the Loan, any Default that may arise by reason of such representation or warranty proving to have been false or misleading,
notwithstanding that the Lenders may have had notice or knowledge that such representation or warranty was false or misleading on the date hereof. 
 (b) The obligations of the Borrower under Section 2.4 and the obligations of the Borrower and the Lenders under this Section 5.9 hereof shall remain in full force and effect regardless of the
consummation of the transactions contemplated hereby, the repayment of the Loan, or the termination of this Agreement or any provision hereof. 
 Section 5.10 Waiver Neither the failure of, nor any delay on the part of, any Party in exercising any right, power or privilege hereunder, or under any agreement, document or instrument
mentioned herein, shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege hereunder, or under any agreement, document or instrument mentioned herein, preclude other or further exercise thereof or
the exercise of any other right, power or privilege; nor shall any waiver of any right, power, privilege or default hereunder, or under any agreement, document or instrument mentioned herein, constitute a waiver of any other right, power, privilege
or default or constitute a waiver of any default of the same or of any other term or provision. No course of dealing and no delay in exercising, or omission to exercise, any right, power or remedy accruing to the Lenders upon any default under this
Agreement, or any other agreement shall impair any such right, power or remedy or be construed to be a waiver thereof or an acquiescence therein; nor shall the action of the Lenders in respect of any such default, or any acquiescence by it therein,
affect or impair any right, power or remedy of the Lenders in respect of any other default. All rights and remedies herein provided are cumulative and not exclusive of any rights or remedies otherwise provided by law. 

Section 5.11 Indemnity 
 (a) The Parties shall, at all times, indemnify and hold each other (the “Indemnity”) and each of their respective directors, partners, officers, employees, agents, counsel and advisors
(each, an “Indemnified Person”) harmless in connection with any losses, claims (including the cost of defending against such claims), damages, liabilities, penalties, or other expenses which may be incurred by or asserted against an
Indemnified Person arising out of, any investigation, litigation or proceeding, relating to the Financing Documents (together, a “Loss”) the extension of credit hereunder or the Loan or the use or intended use of the Loan, which an
Indemnified Person may incur or to which an Indemnified Person may become subject. The Indemnity shall not apply to the extent that a court or arbitral tribunal with jurisdiction over the subject matter of the Loss, and over the Lenders or the
Borrower, as applicable, and such other Indemnified Person that had an adequate opportunity to defend its interests, determines that such Loss resulted from the gross negligence or willful misconduct of the Indemnified Person, which determination
results in a final, non-appealable judgment or decision of a court or tribunal of competent jurisdiction. The Indemnity is independent of and in addition to any other agreement of any Party under any Financing Document to pay any amount to the
Lenders or the Borrower, as applicable, and any exclusion of any obligation to pay any amount under this subsection shall 

  
 19 

 
not affect the requirement to pay such amount under any other section hereof or under any other agreement. The indemnification provisions of this Section 5.11(a) shall be subject to
Section 2.4 hereof. 
 (b) Without prejudice to the survival of any other agreement of any of the Parties hereunder, the
agreements and the obligations of the Parties contained in this Section 5.11 shall survive the termination of each other provision hereof and the payment of all amounts payable to the Lenders hereunder. 

Section 5.12 No Usury. The Financing Documents are hereby expressly limited so that in no contingency or event whatsoever,
whether by reason of acceleration or otherwise, shall the amount paid or agreed to be paid to the Lenders for the Loan exceed the maximum amount permissible under applicable law. If from any circumstance whatsoever fulfillment of any provision
hereof, at the time performance of such provision shall be due, shall involve transcending the limit of validity prescribed by law, then, ipso facto, the obligation to be fulfilled shall be reduced to the limit of such validity, and if from any such
circumstance the Lenders shall ever receive anything which might be deemed interest under applicable law, that would exceed the highest lawful rate, such amount that would be deemed excessive interest shall be applied to the reduction of the
principal amount owing on account of the Loan, or if such deemed excessive interest exceeds the unpaid balance of principal of the Loan, such deemed excess shall be refunded to the Borrower. All sums paid or agreed to be paid to the Lenders for the
Loan shall, to the extent permitted by applicable law, be deemed to be amortized, prorated, allocated and spread throughout the full term of the Loan until payment in full so that the deemed rate of interest on account of the Loan is uniform
throughout the term thereof. The terms and provisions of this paragraph shall control and supersede every other provision of this Agreement and the Notes. 
 Section 5.13 Further Assurances. From time to time, the Borrower shall perform any and all acts and execute and deliver to the Lenders such additional documents as may be necessary or as
requested by the Lenders in each case as determined by the Lenders in the good faith exercise of their reasonable discretion to carry out the purposes of any Financing Document or any or to preserve and protect the Lenders’ rights as
contemplated therein. 
 Section 5.14 Termination. The Borrower may by notice to the Lenders terminate the Agreement
upon repayment of the Obligations whereupon the Obligations shall terminate subject to the provisions of Section 5.9(b). 

[SIGNATURE PAGE FOLLOWS] 

  
 20 

 IN WITNESS WHEREOF, the Parties, acting through their duly authorized representatives, have
caused this Agreement to be signed in their respective names as of the date first above written. 
  

			
	BORROWER:
	
	TITAN PHARMACEUTICALS, INC.
		
	By:	 	 /s/ Sunil Bhonsle

		 	Name: Sunil Bhonsle
		 	Title:   President
	
	LENDER:
	
	DEERFIELD PRIVATE DESIGN FUND II, L.P.
		
	By:	 	Deerfield Capital, L.P., General Partner
	By:	 	J. E. Flynn Capital LLC, General Partner
		
	By:	 	 /s/ David Clark

		 	Name: David Clark
		 	Title:   Authorized Signatory
	
	LENDER:
	
	DEERFIELD PRIVATE DESIGN INTERNATIONAL II, L.P.
		
	By:	 	Deerfield Capital, L.P., General Partner
	By:	 	J. E. Flynn Capital LLC, General Partner
		
	By:	 	 /s/ David Clark

		 	Name: David Clark
		 	Title: Authorized Signatory

			
	LENDER:
	
	DEERFIELD SPECIAL SITUATIONS FUND, L.P.
		
	By:	 	Deerfield Capital, L.P., General Partner
	By:	 	J. E. Flynn Capital LLC, General Partner
		
	By:	 	 /s/ David Clark

		 	Name: David Clark
		 	Title:   Authorized Signatory
	
	LENDER:
	
	DEERFIELD SPECIAL SITUATIONS FUND INTERNATIONAL LIMITED
		
	By:	 	 /s/ David Clark

		 	Name: David Clark
		 	Title:   Authorized Signatory

  
 22 

 SCHEDULE 1 

LENDERS 
  

									
	 Lender
	  	Principal Amount of Note	 	  	Number of Shares of Common
Stock Underlying Warrants	 
	 Deerfield Private Design Fund II, L.P.
	  	$	7,456,000	  	  	 	2,236,800	  
	 Deerfield Private Design International II, L.P.
	  	$	8,544,000	  	  	 	2,563,200	  
	 Deerfield Special Situations Fund, L.P.
	  	$	1,560,000	  	  	 	468,000	  
	 Deerfield Special Situations Fund International Limited
	  	$	2,440,000	  	  	 	732,000	  
	 Total
	  	$	20,000,000	  	  	 	6,000,000	  

  
 1 

 EXHIBIT A-1 
 FORM OF NOTE 
 PROMISSORY NOTE 

THIS NOTE IS BEING ISSUED WITH ORIGINAL ISSUE DISCOUNT (“OID”). THE FOLLOWING INFORMATION IS BEING PROVIDED PURSUANT TO TREASURY REGULATION
SECTION 1.1275-3: 
  

	
	ISSUE PRICE:
	
	AMOUNT OF OID:
	
	ISSUE DATE:
	
	YIELD TO MATURITY:

 March
    , 2011 
 FOR VALUE RECEIVED, TITAN PHARMACEUTICALS, INC., a Delaware corporation (the
“Maker”), by means of this Promissory Note (this “Note”), hereby unconditionally promises to pay to Deerfield Private Design International II, L.P. (the “Payee”), a principal amount equal to
$8,544,000, in lawful money of the United States of America and in immediately available funds, on the dates provided in the Facility Agreement. 
 This Note is a “Note” referred to in the Facility Agreement dated as of March 15, 2011 among the Maker, the Payee and the other parties thereto (as modified and supplemented and in effect
from time to time, the “Facility Agreement”), with respect to the Loan made by the Payee thereunder. Capitalized terms used herein and not expressly defined in this Note shall have the respective meanings assigned to them in the
Facility Agreement. 
 This Note shall bear interest on the principal amount hereof pursuant to the provisions of the Facility
Agreement. 
 The Maker shall make all payments to the Payee of interest and principal under this Note in the manner provided in
and otherwise in accordance with the Facility Agreement. The outstanding principal amount of this Note shall be due and payable in full on the Maturity Date. 
 If default is made in the punctual payment of principal or any other amount under this Note in accordance with the Facility Agreement, or if any other Event of Default has occurred and is continuing, this
Note shall, at the Payee’s option exercised at any time upon or after the occurrence and during the continuance of any such payment default or other Event of Default and in accordance with the applicable provisions of the Facility Agreement,
become immediately due and payable. 

  
 2 

 All payments of any kind due to the Payee from the Maker pursuant to this Note shall be made
in the full face amount thereof. Subject to the terms of the Facility Agreement, all such payments will be free and clear of, and without deduction or withholding for, any present or future taxes. The Maker shall pay all and any costs
(administrative or otherwise) imposed by the Maker’s banks, clearing houses, or any other financial institution, in connection with making any payments hereunder. 
 The Maker shall pay all costs of collection, including, without limitation, all reasonable, documented legal expenses and attorneys’ fees, paid or incurred by the Payee in collecting and enforcing
this Note. 
 Other than those notices required to be provided by Payee to Maker under the terms of the Facility Agreement, the
Maker and every endorser of this Note, or the obligations represented hereby, expressly waives presentment, protest, demand, notice of dishonor or default, and notice of any kind with respect to this Note and the Facility Agreement or the
performance of the obligations under this Note and/or the Facility Agreement. No renewal or extension of this Note or the Facility Agreement, no release of any Person primarily or secondarily liable on this Note or the Facility Agreement, including
the Maker and any endorser, no delay in the enforcement of payment of this Note or the Facility Agreement, and no delay or omission in exercising any right or power under this Note or the Facility Agreement shall affect the liability of the Maker or
any endorser of this Note. 
 No delay or omission by the Payee in exercising any power or right hereunder shall impair such
right or power or be construed to be a waiver of any default, nor shall any single or partial exercise of any power or right hereunder preclude the full exercise thereof or the exercise of any other power or right. The provisions of this Note may be
waived or amended only in a writing signed by the Maker and the Payee. This Note may be prepaid in whole or in part in accordance with the provisions of the Facility Agreement. 

This Note, and any rights of the PAYEE arising out of or relating to this Note, may, at the option of the Payee, be enforced by the Payee
in the courts of the United States of America located in the Southern District of the State of New York or in any other courts having jurisdiction. For the benefit of the Payee, the Maker hereby irrevocably agrees that any legal action, suit or
other proceeding arising out of or relating to this Note may be brought in the courts of the State of New York or of the United States of America for the Southern District of New York, and hereby consents that personal service of summons or other
legal process may be made as set forth in Section 5.1 of the FACILITY Agreement, which service the Maker agrees shall be sufficient and valid. THE MAKER HEREBY waives any and all rights to demand a trial by jury in any action, suit or OTHER
proceeding arising out of or relating to this NOTE or the transactions contemplated by this NOTE. 
 This Note shall be governed
by, and construed in accordance with, the laws of the State of New York applicable to contracts made and to be performed in such State, without giving effect to the conflicts of laws principles thereof other than Sections 5-1401 and 5-1402 of the
General Obligations Law of the State of New York. 

  
 3 

 Whenever this Note is held by a noteholder that is not a “United States person”
within the meaning of Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended (the “Code”), then it is the intention of the Maker and such noteholder that (x) all interest accrued and paid on this Note will qualify
for exemption from United States withholding tax as “portfolio interest” because this Note is an obligation which is in “registered form” within the meaning of Sections 871(h)(2)(B) and 881(c)(2)(B) of the Code and the applicable
Treasury Regulations promulgated thereunder, and (y) as such, all interest accrued and paid on this Note will be exempt from United States information reporting under Sections 6041 and 6049 of the Code and United States backup withholding under
Section 3406 of the Code. The Maker and the Payee shall cooperate with one another, and execute and file such forms or other documents, or do or refrain from doing such other acts, as may be required, to secure such exemptions from United
States withholding tax, information reporting, and backup withholding. In furtherance of the foregoing, any noteholder, transferee or assignee noteholder that is not a United States person shall represent, warrant and covenant to the Maker that
(i) neither such noteholder nor, if any IRS Form W-8IMY is provided, any of such noteholder’s members, partners, beneficiaries or owners is, or will be as long as any amounts due under this Note have not been paid in full, a person
described in Section 871(h)(3) or 881(c)(3) of the Code; (ii) on or prior to the date of transfer or assignment (and on or prior to the date the form provided pursuant to this clause (ii) is no longer valid) until all amounts due
under this Note have been paid in full, such noteholder shall provide the Maker with a properly completed and executed U.S. Internal Revenue Service (“IRS”) Form W-8IMY or W-8BEN, as applicable (or any successor form prescribed by
the IRS), certifying as to such noteholder’s status for purposes of determining exemption from United States withholding tax, information reporting and backup withholding with respect to all payments to be made to such noteholder hereunder;
(iii) if an event occurs that would require a change in the exempt status of such noteholder or any of the other information provided on the most recent IRS Form W-8IMY or W-8BEN (or successor form), as applicable, previously submitted by such
noteholder to the Maker, such noteholder will so inform the Maker in writing (or by submitting to the Maker a new IRS Form W-8IMY or W-8BEN or successor form) within 30 days after the occurrence of such event; and (iv) such noteholder will not
assign or otherwise transfer this Note or any of its rights hereunder except in accordance with the provisions hereof. 
 In
order to qualify as a “registered note” for purposes of the Code, transfer of this Note may be effected only by (i) surrender of this Note to the Maker and the re-issuance of this Note to the transferee, or the Maker’s issuance
to the Payee of a new note in the same form as this Note but with the transferee denoted as the Payee, or (ii) the recording of the identity of the transferee by the Affiliate of the Payee that is maintaining a record ownership register of this
Note as a non-fiduciary agent of, and on behalf of, the Maker for the tax purposes set forth herein. Such Affiliate in its capacity as such agent shall notify the Maker in writing immediately upon any change in such identity. The terms and
conditions of this Note shall be binding upon and inure to the benefit of the Maker and the Payee and their permitted assigns; provided, however, that if any such assignment (whether by operation of law, by way of transfer or participation, or
otherwise) is to any noteholder that is not a “United States person” within the meaning of Section 7701(a)(30) of the Code, then such noteholder shall submit to the Maker on or before the date of such assignment an IRS Form W-8IMY or
W-8BEN (or any successor form), as applicable, certifying as to such noteholder’s status for purposes of determining exemption from United States withholding tax, information reporting and backup withholding with respect to all payments to be
made to such noteholder under the new note (or other 

  
 4 

 
instrument). Any attempted transfer in violation of the relevant provisions of this Note shall be void and of no force and effect. Until there has been a valid transfer of this Note and of all of
the rights hereunder by the Payee in accordance with this Note, the Maker shall deem and treat the Payee as the absolute beneficial owner and holder of this Note and of all of the rights hereunder for all purposes (including, without limitation, for
the purpose of receiving all payments to be made under this Note). 
 It is the intention of the Maker and the Payee that this
Note is to be a registered instrument and not a bearer instrument and the provisions of this Note are to be interpreted accordingly. This Note is intended to be registered as to both principal and interest and all payments hereunder shall be made to
the named Payee or, in the event of a transfer pursuant to the Facility Agreement and this Note, to the transferee identified in the record of ownership of this Note maintained by the Affiliate of the Payee on behalf of the Maker. Transfer of this
Note may not be effected except in accordance with the provisions hereof. 
 IN WITNESS WHEREOF, an authorized representative of
the Maker has executed this Note as of the date first written above. 
  

			
	TITAN PHARMACEUTICALS, INC.
		
	By:	 	  

		 	Name:
		 	Title:

  
 5 

 EXHIBIT A-2 
 FORM OF NOTE 
 THIS NOTE IS BEING ISSUED WITH ORIGINAL ISSUE DISCOUNT (“OID”).
THE FOLLOWING INFORMATION IS BEING PROVIDED PURSUANT TO TREASURY REGULATION SECTION 1.1275-3: 
  

	
	ISSUE PRICE:
	
	AMOUNT OF OID:
	
	ISSUE DATE:
	
	YIELD TO MATURITY:

 PROMISSORY NOTE

 March     , 2011 
 FOR VALUE RECEIVED, TITAN PHARMACEUTICALS INC., a Delaware corporation (the “Maker”), by means of this Promissory Note (this “Note”), hereby unconditionally promises to
pay to Deerfield Private Design Fund II, L.P. (the “Payee”), a principal amount equal to $7,456,000, in lawful money of the United States of America and in immediately available funds, on the dates provided in the Facility
Agreement. 
 This Note is a “Note” referred to in the Facility Agreement dated as of March 15, 2011 among the
Maker, the Payee and the other parties thereto (as modified and supplemented and in effect from time to time, the “Facility Agreement”), with respect to the Loan made by the Payee thereunder. Capitalized terms used herein and not
expressly defined in this Note shall have the respective meanings assigned to them in the Facility Agreement. 
 This Note shall
bear interest on the principal amount hereof pursuant to the provisions of the Facility Agreement. 
 The Maker shall make all
payments to the Payee of interest and principal under this Note in accordance with the Facility Agreement. The outstanding principal amount of this Note shall be due and payable in full on the Maturity Date. 

If default is made in the punctual payment of principal or any other amount under this Note in accordance with the Facility Agreement, or
if any other Event of Default has occurred and is continuing, this Note shall, at the Payee’s option exercised at any time upon or after the occurrence and during the continuance of any such payment default or other Event of Default and in
accordance with the applicable provisions of the Facility Agreement, become immediately due and payable. 

  
 1 

 All payments of any kind due to the Payee from the Maker pursuant to this Note shall be made
in the full face amount thereof. Subject to the terms of the Facility Agreement, all such payments will be free and clear of, and without deduction or withholding for, any present or future taxes. The Maker shall pay all and any costs
(administrative or otherwise) imposed by the Maker’s banks, clearing houses, or any other financial institution, in connection with making any payments hereunder. 
 The Maker shall pay all costs of collection, including, without limitation, all reasonable, documented legal expenses and attorneys’ fees, paid or incurred by the Payee in collecting and enforcing
this Note. 
 Other than those notices required to be provided by the Payee to the Maker under the terms of the Facility
Agreement, the Maker and every endorser of this Note, or the obligations represented hereby, expressly waives presentment, protest, demand, notice of dishonor or default, and notice of any kind with respect to this Note and the Facility Agreement or
the performance of the obligations under this Note and/or the Facility Agreement. No renewal or extension of this Note or the Facility Agreement, no release of any Person primarily or secondarily liable on this Note or the Facility Agreement,
including the Maker and any endorser, no delay in the enforcement of payment of this Note or the Facility Agreement, and no delay or omission in exercising any right or power under this Note or the Facility Agreement shall affect the liability of
the Maker or any endorser of this Note. 
 No delay or omission by the Payee in exercising any power or right hereunder shall
impair such right or power or be construed to be a waiver of any default, nor shall any single or partial exercise of any power or right hereunder preclude the full exercise thereof or the exercise of any other power or right. The provisions of this
Note may be waived or amended only in a writing signed by the Maker and the Payee. This Note may be prepaid in whole or in part in accordance with the provisions of the Facility Agreement. 

This Note, and any rights of the PAYEE arising out of or relating to this Note, may, at the option of the Payee, be enforced by the Payee
in the courts of the United States of America located in the Southern District of the State of New York or in any other courts having jurisdiction. For the benefit of the Payee, the Maker hereby irrevocably agrees that any legal action, suit or
other proceeding arising out of or relating to this Note may be brought in the courts of the State of New York or of the United States of America for the Southern District of New York, and hereby consents that personal service of summons or other
legal process may be made as set forth in Section 5.1 of the FACILITY Agreement, which service the Maker agrees shall be sufficient and valid. THE MAKER HEREBY waives any and all rights to demand a trial by jury in any action, suit or OTHER
proceeding arising out of or relating to this NOTE or the transactions contemplated by this NOTE. 
 This Note shall be governed
by, and construed in accordance with, the laws of the State of New York applicable to contracts made and to be performed in such State, without giving effect to the conflicts of laws principles thereof other than Sections 5-1401 and 5-1402 of the
General Obligations Law of the State of New York. 

  
 2 

 Whenever this Note is held by a noteholder that is not a “United States person”
within the meaning of Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended (the “Code”), then it is the intention of the Maker and such noteholder that (x) all interest accrued and paid on this Note will qualify
for exemption from United States withholding tax as “portfolio interest” because this Note is an obligation which is in “registered form” within the meaning of Sections 871(h)(2)(B) and 881(c)(2)(B) of the Code and the applicable
Treasury Regulations promulgated thereunder, and (y) as such, all interest accrued and paid on this Note will be exempt from United States information reporting under Sections 6041 and 6049 of the Code and United States backup withholding under
Section 3406 of the Code. The Maker and the Payee shall cooperate with one another, and execute and file such forms or other documents, or do or refrain from doing such other acts, as may be required, to secure such exemptions from United
States withholding tax, information reporting, and backup withholding. In furtherance of the foregoing, any noteholder or transferee or assignee noteholder that is not a United States person shall represent, warrant and covenant to the Maker that
(i) neither such noteholder nor, if any IRS Form W-8IMY is provided, any of such noteholder’s members, partners, beneficiaries or owners is, or will be as long as any amounts due under this Note have not been paid in full, a person
described in Section 871(h)(3) or 881(c)(3) of the Code; (ii) on or prior to the date of transfer or assignment (and on or prior to the date the form provided pursuant to this clause (ii) is no longer valid) until all amounts due
under this Note have been paid in full, such noteholder shall provide the Maker with a properly completed and executed U.S. Internal Revenue Service (“IRS”) Form W-8IMY or W-8BEN, as applicable (or any successor form prescribed by
the IRS), certifying as to such noteholder’s status for purposes of determining exemption from United States withholding tax, information reporting and backup withholding with respect to all payments to be made to such noteholder hereunder;
(iii) if an event occurs that would require a change in the exempt status of such noteholder or any of the other information provided on the most recent IRS Form W-8IMY or W-8BEN (or successor form), as applicable, previously submitted by such
noteholder to the Maker, such noteholder will so inform the Maker in writing (or by submitting to the Maker a new IRS Form W-8IMY or W-8BEN or successor form) within 30 days after the occurrence of such event; and (iv) such noteholder will not
assign or otherwise transfer this Note or any of its rights hereunder except in accordance with the provisions hereof. 
 In
order to qualify as a “registered note” for purposes of the Code, transfer of this Note may be effected only by (i) surrender of this Note to the Maker and the re-issuance of this Note to the transferee, or the Maker’s issuance
to the Payee of a new note in the same form as this Note but with the transferee denoted as the Payee, or (ii) the recording of the identity of the transferee by the Affiliate of the Payee that is maintaining a record ownership register of this
Note as a non-fiduciary agent of, and on behalf of, the Maker for the tax purposes set forth herein. Such Affiliate in its capacity as such agent shall notify the Maker in writing immediately upon any change in such identity. The terms and
conditions of this Note shall be binding upon and inure to the benefit of the Maker and the Payee and their permitted assigns; provided, however, that if any such assignment (whether by operation of law, by way of transfer or participation, or
otherwise) is to any noteholder that is not a “United States person” within the meaning of Section 7701(a)(30) of the Code, then such noteholder shall submit to the Maker on or before the date of such assignment an IRS Form W-8IMY or
W-8BEN (or any successor form), as applicable, certifying as to such noteholder’s status for purposes of determining exemption from United States withholding tax, information reporting and backup withholding with respect to all payments to be
made to such noteholder under the new note (or other 

  
 3 

 
instrument). Any attempted transfer in violation of the relevant provisions of this Note shall be void and of no force and effect. Until there has been a valid transfer of this Note and of all of
the rights hereunder by the Payee in accordance with this Note, the Maker shall deem and treat the Payee as the absolute beneficial owner and holder of this Note and of all of the rights hereunder for all purposes (including, without limitation, for
the purpose of receiving all payments to be made under this Note). 
 It is the intention of the Maker and the Payee that this
Note is to be a registered instrument and not a bearer instrument and the provisions of this Note are to be interpreted accordingly. This Note is intended to be registered as to both principal and interest and all payments hereunder shall be made to
the named Payee or, in the event of a transfer pursuant to the Facility Agreement and this Note, to the transferee identified in the record of ownership of this Note maintained by the Affiliate of the Payee on behalf of the Maker. Transfer of this
Note may not be effected except in accordance with the provisions hereof. 
 IN WITNESS WHEREOF, an authorized representative of
the Maker has executed this Note as of the date first written above. 
  

			
	TITAN PHARMACEUTICALS, INC.
		
	By:	 	  

		 	Name:
		 	Title:

  
 4 

 EXHIBIT A-3 
 FORM OF NOTE 
 PROMISSORY NOTE 

THIS NOTE IS BEING ISSUED WITH ORIGINAL ISSUE DISCOUNT (“OID”). THE FOLLOWING INFORMATION IS BEING PROVIDED PURSUANT TO TREASURY REGULATION
SECTION 1.1275-3: 
 ISSUE PRICE: 

AMOUNT OF OID: 
 ISSUE DATE: 
 YIELD TO MATURITY: 

March     , 2011 
 FOR VALUE RECEIVED, TITAN PHARMACEUTICALS, INC., a Delaware corporation (the “Maker”), by means of this Promissory Note (this “Note”), hereby unconditionally promises to
pay to Deerfield Special Situations Fund International Limited (the “Payee”), a principal amount equal to $2,440,000, in lawful money of the United States of America and in immediately available funds, on the dates provided in the
Facility Agreement. 
 This Note is a “Note” referred to in the Facility Agreement dated as of March 15, 2011
among the Maker, the Payee and the other parties thereto (as modified and supplemented and in effect from time to time, the “Facility Agreement”), with respect to the Loan made by the Payee thereunder. Capitalized terms used herein
and not expressly defined in this Note shall have the respective meanings assigned to them in the Facility Agreement. 
 This
Note shall bear interest on the principal amount hereof pursuant to the provisions of the Facility Agreement. 
 The Maker shall
make all payments to the Payee of interest and principal under this Note in the manner provided in and otherwise in accordance with the Facility Agreement. The outstanding principal amount of this Note shall be due and payable in full on the
Maturity Date. 
 If default is made in the punctual payment of principal or any other amount under this Note in accordance with
the Facility Agreement, or if any other Event of Default has occurred and is continuing, this Note shall, at the Payee’s option exercised at any time upon or after the occurrence and during the continuance of any such payment default or other
Event of Default and in accordance with the applicable provisions of the Facility Agreement, become immediately due and payable. 

  
 1 

 All payments of any kind due to the Payee from the Maker pursuant to this Note shall be made
in the full face amount thereof. Subject to the terms of the Facility Agreement, all such payments will be free and clear of, and without deduction or withholding for, any present or future taxes. The Maker shall pay all and any costs
(administrative or otherwise) imposed by the Maker’s banks, clearing houses, or any other financial institution, in connection with making any payments hereunder. 
 The Maker shall pay all costs of collection, including, without limitation, all reasonable, documented legal expenses and attorneys’ fees, paid or incurred by the Payee in collecting and enforcing
this Note. 
 Other than those notices required to be provided by Payee to Maker under the terms of the Facility Agreement, the
Maker and every endorser of this Note, or the obligations represented hereby, expressly waives presentment, protest, demand, notice of dishonor or default, and notice of any kind with respect to this Note and the Facility Agreement or the
performance of the obligations under this Note and/or the Facility Agreement. No renewal or extension of this Note or the Facility Agreement, no release of any Person primarily or secondarily liable on this Note or the Facility Agreement, including
the Maker and any endorser, no delay in the enforcement of payment of this Note or the Facility Agreement, and no delay or omission in exercising any right or power under this Note or the Facility Agreement shall affect the liability of the Maker or
any endorser of this Note. 
 No delay or omission by the Payee in exercising any power or right hereunder shall impair such
right or power or be construed to be a waiver of any default, nor shall any single or partial exercise of any power or right hereunder preclude the full exercise thereof or the exercise of any other power or right. The provisions of this Note may be
waived or amended only in a writing signed by the Maker and the Payee. This Note may be prepaid in whole or in part in accordance with the provisions of the Facility Agreement. 

This Note, and any rights of the PAYEE arising out of or relating to this Note, may, at the option of the Payee, be enforced by the Payee
in the courts of the United States of America located in the Southern District of the State of New York or in any other courts having jurisdiction. For the benefit of the Payee, the Maker hereby irrevocably agrees that any legal action, suit or
other proceeding arising out of or relating to this Note may be brought in the courts of the State of New York or of the United States of America for the Southern District of New York, and hereby consents that personal service of summons or other
legal process may be made as set forth in Section 5.1 of the FACILITY Agreement, which service the Maker agrees shall be sufficient and valid. THE MAKER HEREBY waives any and all rights to demand a trial by jury in any action, suit or OTHER
proceeding arising out of or relating to this NOTE or the transactions contemplated by this NOTE. 
 This Note shall be governed
by, and construed in accordance with, the laws of the State of New York applicable to contracts made and to be performed in such State, without giving effect to the conflicts of laws principles thereof other than Sections 5-1401 and 5-1402 of the
General Obligations Law of the State of New York. 

  
 2 

 Whenever this Note is held by a noteholder that is not a “United States person”
within the meaning of Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended (the “Code”), then it is the intention of the Maker and such noteholder that (x) all interest accrued and paid on this Note will qualify
for exemption from United States withholding tax as “portfolio interest” because this Note is an obligation which is in “registered form” within the meaning of Sections 871(h)(2)(B) and 881(c)(2)(B) of the Code and the applicable
Treasury Regulations promulgated thereunder, and (y) as such, all interest accrued and paid on this Note will be exempt from United States information reporting under Sections 6041 and 6049 of the Code and United States backup withholding under
Section 3406 of the Code. The Maker and the Payee shall cooperate with one another, and execute and file such forms or other documents, or do or refrain from doing such other acts, as may be required, to secure such exemptions from United
States withholding tax, information reporting, and backup withholding. In furtherance of the foregoing, any noteholder, transferee or assignee noteholder that is not a United States person shall represent, warrant and covenant to the Maker that
(i) neither such noteholder nor, if any IRS Form W-8IMY is provided, any of such noteholder’s members, partners, beneficiaries or owners is, or will be as long as any amounts due under this Note have not been paid in full, a person
described in Section 871(h)(3) or 881(c)(3) of the Code; (ii) on or prior to the date of transfer or assignment (and on or prior to the date the form provided pursuant to this clause (ii) is no longer valid) until all amounts due
under this Note have been paid in full, such noteholder shall provide the Maker with a properly completed and executed U.S. Internal Revenue Service (“IRS”) Form W-8IMY or W-8BEN, as applicable (or any successor form prescribed by
the IRS), certifying as to such noteholder’s status for purposes of determining exemption from United States withholding tax, information reporting and backup withholding with respect to all payments to be made to such noteholder hereunder;
(iii) if an event occurs that would require a change in the exempt status of such noteholder or any of the other information provided on the most recent IRS Form W-8IMY or W-8BEN (or successor form), as applicable, previously submitted by such
noteholder to the Maker, such noteholder will so inform the Maker in writing (or by submitting to the Maker a new IRS Form W-8IMY or W-8BEN or successor form) within 30 days after the occurrence of such event; and (iv) such noteholder will not
assign or otherwise transfer this Note or any of its rights hereunder except in accordance with the provisions hereof. 
 In
order to qualify as a “registered note” for purposes of the Code, transfer of this Note may be effected only by (i) surrender of this Note to the Maker and the re-issuance of this Note to the transferee, or the Maker’s issuance
to the Payee of a new note in the same form as this Note but with the transferee denoted as the Payee, or (ii) the recording of the identity of the transferee by the Affiliate of the Payee that is maintaining a record ownership register of this
Note as a non-fiduciary agent of, and on behalf of, the Maker for the tax purposes set forth herein. Such Affiliate in its capacity as such agent shall notify the Maker in writing immediately upon any change in such identity. The terms and
conditions of this Note shall be binding upon and inure to the benefit of the Maker and the Payee and their permitted assigns; provided, however, that if any such assignment (whether by operation of law, by way of transfer or participation, or
otherwise) is to any noteholder that is not a “United States person” within the meaning of Section 7701(a)(30) of the Code, then such noteholder shall submit to the Maker on or before the date of such assignment an IRS Form W-8IMY or
W-8BEN (or any successor form), as applicable, certifying as to such noteholder’s status for purposes of determining exemption from United States withholding tax, information reporting and backup withholding with respect to all payments to be
made to such noteholder under the new note (or other 

  
 3 

 
instrument). Any attempted transfer in violation of the relevant provisions of this Note shall be void and of no force and effect. Until there has been a valid transfer of this Note and of all of
the rights hereunder by the Payee in accordance with this Note, the Maker shall deem and treat the Payee as the absolute beneficial owner and holder of this Note and of all of the rights hereunder for all purposes (including, without limitation, for
the purpose of receiving all payments to be made under this Note). 
 It is the intention of the Maker and the Payee that this
Note is to be a registered instrument and not a bearer instrument and the provisions of this Note are to be interpreted accordingly. This Note is intended to be registered as to both principal and interest and all payments hereunder shall be made to
the named Payee or, in the event of a transfer pursuant to the Facility Agreement and this Note, to the transferee identified in the record of ownership of this Note maintained by the Affiliate of the Payee on behalf of the Maker. Transfer of this
Note may not be effected except in accordance with the provisions hereof. 
 IN WITNESS WHEREOF, an authorized representative of
the Maker has executed this Note as of the date first written above. 
  

			
	TITAN PHARMACEUTICALS, INC.
		
	By:	 	  

		 	Name:
		 	Title:

  
 4 

 EXHIBIT A-4 
 FORM OF NOTE 
 PROMISSORY NOTE 

THIS NOTE IS BEING ISSUED WITH ORIGINAL ISSUE DISCOUNT (“OID”). THE FOLLOWING INFORMATION IS BEING PROVIDED PURSUANT TO TREASURY REGULATION
SECTION 1.1275-3: 
 ISSUE PRICE: 

AMOUNT OF OID: 
 ISSUE DATE: 
 YIELD TO MATURITY: 

March     , 2011 
 FOR VALUE RECEIVED, TITAN PHARMACEUTICALS, INC., a Delaware corporation (the “Maker”), by means of this Promissory Note (this “Note”), hereby unconditionally promises to
pay to Deerfield Special Situations Fund, L.P. (the “Payee”), a principal amount equal to $1,560,000, in lawful money of the United States of America and in immediately available funds, on the dates provided in the Facility
Agreement. 
 This Note is a “Note” referred to in the Facility Agreement dated as of March 15, 2011 among the
Maker, the Payee and the other parties thereto (as modified and supplemented and in effect from time to time, the “Facility Agreement”), with respect to the Loan made by the Payee thereunder. Capitalized terms used herein and not
expressly defined in this Note shall have the respective meanings assigned to them in the Facility Agreement. 
 This Note shall
bear interest on the principal amount hereof pursuant to the provisions of the Facility Agreement. 
 The Maker shall make all
payments to the Payee of interest and principal under this Note in the manner provided in and otherwise in accordance with the Facility Agreement. The outstanding principal amount of this Note shall be due and payable in full on the Maturity Date.

 If default is made in the punctual payment of principal or any other amount under this Note in accordance with the Facility
Agreement, or if any other Event of Default has occurred and is continuing, this Note shall, at the Payee’s option exercised at any time upon or after the occurrence and during the continuance of any such payment default or other Event of
Default and in accordance with the applicable provisions of the Facility Agreement, become immediately due and payable. 

  
 1 

 All payments of any kind due to the Payee from the Maker pursuant to this Note shall be made
in the full face amount thereof. Subject to the terms of the Facility Agreement, all such payments will be free and clear of, and without deduction or withholding for, any present or future taxes. The Maker shall pay all and any costs
(administrative or otherwise) imposed by the Maker’s banks, clearing houses, or any other financial institution, in connection with making any payments hereunder. 
 The Maker shall pay all costs of collection, including, without limitation, all reasonable, documented legal expenses and attorneys’ fees, paid or incurred by the Payee in collecting and enforcing
this Note. 
 Other than those notices required to be provided by Payee to Maker under the terms of the Facility Agreement, the
Maker and every endorser of this Note, or the obligations represented hereby, expressly waives presentment, protest, demand, notice of dishonor or default, and notice of any kind with respect to this Note and the Facility Agreement or the
performance of the obligations under this Note and/or the Facility Agreement. No renewal or extension of this Note or the Facility Agreement, no release of any Person primarily or secondarily liable on this Note or the Facility Agreement, including
the Maker and any endorser, no delay in the enforcement of payment of this Note or the Facility Agreement, and no delay or omission in exercising any right or power under this Note or the Facility Agreement shall affect the liability of the Maker or
any endorser of this Note. 
 No delay or omission by the Payee in exercising any power or right hereunder shall impair such
right or power or be construed to be a waiver of any default, nor shall any single or partial exercise of any power or right hereunder preclude the full exercise thereof or the exercise of any other power or right. The provisions of this Note may be
waived or amended only in a writing signed by the Maker and the Payee. This Note may be prepaid in whole or in part in accordance with the provisions of the Facility Agreement. 

This Note, and any rights of the PAYEE arising out of or relating to this Note, may, at the option of the Payee, be enforced by the Payee
in the courts of the United States of America located in the Southern District of the State of New York or in any other courts having jurisdiction. For the benefit of the Payee, the Maker hereby irrevocably agrees that any legal action, suit or
other proceeding arising out of or relating to this Note may be brought in the courts of the State of New York or of the United States of America for the Southern District of New York, and hereby consents that personal service of summons or other
legal process may be made as set forth in Section 5.1 of the FACILITY Agreement, which service the Maker agrees shall be sufficient and valid. THE MAKER HEREBY waives any and all rights to demand a trial by jury in any action, suit or OTHER
proceeding arising out of or relating to this NOTE or the transactions contemplated by this NOTE. 
 This Note shall be governed
by, and construed in accordance with, the laws of the State of New York applicable to contracts made and to be performed in such State, without giving effect to the conflicts of laws principles thereof other than Sections 5-1401 and 5-1402 of the
General Obligations Law of the State of New York. 

  
 2 

 Whenever this Note is held by a noteholder that is not a “United States person”
within the meaning of Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended (the “Code”), then it is the intention of the Maker and such noteholder that (x) all interest accrued and paid on this Note will qualify
for exemption from United States withholding tax as “portfolio interest” because this Note is an obligation which is in “registered form” within the meaning of Sections 871(h)(2)(B) and 881(c)(2)(B) of the Code and the applicable
Treasury Regulations promulgated thereunder, and (y) as such, all interest accrued and paid on this Note will be exempt from United States information reporting under Sections 6041 and 6049 of the Code and United States backup withholding under
Section 3406 of the Code. The Maker and the Payee shall cooperate with one another, and execute and file such forms or other documents, or do or refrain from doing such other acts, as may be required, to secure such exemptions from United
States withholding tax, information reporting, and backup withholding. In furtherance of the foregoing, any noteholder, transferee or assignee noteholder that is not a United States person shall represent, warrant and covenant to the Maker that
(i) neither such noteholder nor, if any IRS Form W-8IMY is provided, any of such noteholder’s members, partners, beneficiaries or owners is, or will be as long as any amounts due under this Note have not been paid in full, a person
described in Section 871(h)(3) or 881(c)(3) of the Code; (ii) on or prior to the date of transfer or assignment (and on or prior to the date the form provided pursuant to this clause (ii) is no longer valid) until all amounts due
under this Note have been paid in full, such noteholder shall provide the Maker with a properly completed and executed U.S. Internal Revenue Service (“IRS”) Form W-8IMY or W-8BEN, as applicable (or any successor form prescribed by
the IRS), certifying as to such noteholder’s status for purposes of determining exemption from United States withholding tax, information reporting and backup withholding with respect to all payments to be made to such noteholder hereunder;
(iii) if an event occurs that would require a change in the exempt status of such noteholder or any of the other information provided on the most recent IRS Form W-8IMY or W-8BEN (or successor form), as applicable, previously submitted by such
noteholder to the Maker, such noteholder will so inform the Maker in writing (or by submitting to the Maker a new IRS Form W-8IMY or W-8BEN or successor form) within 30 days after the occurrence of such event; and (iv) such noteholder will not
assign or otherwise transfer this Note or any of its rights hereunder except in accordance with the provisions hereof. 
 In
order to qualify as a “registered note” for purposes of the Code, transfer of this Note may be effected only by (i) surrender of this Note to the Maker and the re-issuance of this Note to the transferee, or the Maker’s issuance
to the Payee of a new note in the same form as this Note but with the transferee denoted as the Payee, or (ii) the recording of the identity of the transferee by the Affiliate of the Payee that is maintaining a record ownership register of this
Note as a non-fiduciary agent of, and on behalf of, the Maker for the tax purposes set forth herein. Such Affiliate in its capacity as such agent shall notify the Maker in writing immediately upon any change in such identity. The terms and
conditions of this Note shall be binding upon and inure to the benefit of the Maker and the Payee and their permitted assigns; provided, however, that if any such assignment (whether by operation of law, by way of transfer or participation, or
otherwise) is to any noteholder that is not a “United States person” within the meaning of Section 7701(a)(30) of the Code, then such noteholder shall submit to the Maker on or before the date of such assignment an IRS Form W-8IMY or
W-8BEN (or any successor form), as applicable, certifying as to such noteholder’s status for purposes of determining exemption from United States withholding tax, information reporting and backup withholding with respect to all payments to be
made to such noteholder under the new note (or other 

  
 3 

 
instrument). Any attempted transfer in violation of the relevant provisions of this Note shall be void and of no force and effect. Until there has been a valid transfer of this Note and of all of
the rights hereunder by the Payee in accordance with this Note, the Maker shall deem and treat the Payee as the absolute beneficial owner and holder of this Note and of all of the rights hereunder for all purposes (including, without limitation, for
the purpose of receiving all payments to be made under this Note). 
 It is the intention of the Maker and the Payee that this
Note is to be a registered instrument and not a bearer instrument and the provisions of this Note are to be interpreted accordingly. This Note is intended to be registered as to both principal and interest and all payments hereunder shall be made to
the named Payee or, in the event of a transfer pursuant to the Facility Agreement and this Note, to the transferee identified in the record of ownership of this Note maintained by the Affiliate of the Payee on behalf of the Maker. Transfer of this
Note may not be effected except in accordance with the provisions hereof. 
 IN WITNESS WHEREOF, an authorized representative of
the Maker has executed this Note as of the date first written above. 
  

			
	TITAN PHARMACEUTICALS, INC.
		
	By:	 	  

		 	Name:
		 	Title:

  
 4 

 EXHIBIT A-5 
 FORM OF WARRANT 

  
 5 

 EXHIBIT B 
 PERMITTED INDEBTENDESS 
 Indebtedness to Oxford Financial Corporation which
shall be paid in full with a portion of the proceeds of the Loan.

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