Document:

EX-10.1

 Exhibit 10.1 

SECURITIES PURCHASE AGREEMENT 

This SECURITIES PURCHASE AGREEMENT (this “Agreement”) is made as of October 9, 2014 by and among InSite Vision
Incorporated, a Delaware corporation having a place of business at 965 Atlantic Avenue, Alameda, California 94501 (the “Company”), Riverbank Capital Securities, Inc., broker-dealer, as placement agent (the “Placement
Agent”), and the undersigned purchasers (each, a “Purchaser” and collectively, the “Purchasers”) of 12% Senior Secured Notes of the Company, the form of which is attached hereto as Exhibit A (the
“Notes”) and recipients of warrants (“Warrants”) to purchase shares of common stock, par value $0.01 per share (the “Common Stock”), of the Company. 

W I T N E S S E T H: 
 WHEREAS,
the Company desires to sell up to $15,000,000 in aggregate principal amount of Notes (the “Maximum Commitment Amount”), and in connection therewith, issue Warrants, to persons who qualify as “accredited investors” as
defined in Rule 501(a) of Regulation D (“Regulation D”) promulgated under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to an exemption provided by Regulation D or pursuant
to Section 4(a)(2) of the Securities Act; 
 WHEREAS, each Purchaser desires to commit to purchase up to the aggregate principal amount
of Notes as set forth on the signature page hereof (such amount, with respect to each Purchaser, its “Commitment Amount”, and the aggregate of all Commitment Amounts for all Purchasers that are parties to this Agreement at any given
time, the “Aggregate Commitment Amount”) and will receive corresponding Warrants on the terms and conditions set forth in this Agreement; and 

WHEREAS, concurrently with the execution of this Agreement, (a) the Company and U.S. Bank National Association (the “Collateral
Agent”) are entering into a Security Agreement, of even date herewith (the “Security Agreement”), and (b) the Collateral Agent and the Purchasers are entering into a Collateral Agency Agreement, of even date herewith
(the “Collateral Agency Agreement”). 
 NOW, THEREFORE, in consideration of the promises and the mutual representations and
covenants hereinafter set forth, the parties hereto do hereby agree as follows: 
  

	I.	OFFERING; SUBSCRIPTION 

 1.1 The Offering. Subject to the terms and conditions of
this Agreement, the Company will offer to sell to persons who qualify as “accredited investors” as defined in Rule 501(a) of Regulation D, pursuant to an exemption provided by Regulation D or pursuant to Section 4(a)(2)
of the Securities Act (the “Offering”), Notes, which will be sold in minimum principal denominations of $250,000 (or such other principal amount determined in the mutual discretion of the Placement Agent and the Company), and in
addition, in order to induce Purchasers to purchase Notes, the Purchasers will receive Warrants to purchase the number of 

 
shares of Common Stock determined in accordance with Section 1.4(c), which will be exercisable for five years from the applicable Closing Date (as defined below) in which the Warrant is
issued, and will otherwise be in the form attached hereto as Exhibit B. The Notes, the Warrants and the shares of Common Stock issuable upon exercise of the Warrants (the “Warrant Shares”) are, individually and
collectively, referred to herein as the “Securities”. 
 1.2 Subscription; Commitment. 

(a) Subject to the terms and conditions of this Agreement, each Purchaser, severally and not jointly, hereby subscribes for and irrevocably
commits to purchase from the Company up to its Commitment Amount of aggregate principal amount of Notes and will receive corresponding Warrants (the “Subscriptions”) and the Company, subject to Section 1.3 below, agrees to sell
such Notes and issue Warrants to the Purchaser. Each Purchaser must complete and return a duly executed, unaltered, and completed Confidential Purchaser Questionnaire in the form of Schedule A attached hereto prior to or concurrently with the
execution of this Agreement. 
 (b) The Company shall have the right, at any time on or before the 60th day after the Initial Closing (as
defined below), to enter into additional Subscriptions with prospective Purchasers approved by the Company and the Placement Agent, until the Aggregate Commitment Amount equals the Maximum Commitment Amount. The Company shall have the right to
accept or reject Subscriptions after the date hereof in its sole discretion. Upon execution and delivery of the relevant signature pages to this Agreement and any other Transaction Documents to which the Purchasers are party, such prospective
Purchasers shall become parties to, and be bound by, this Agreement and the Transaction Documents, without the need for an amendment to any of this Agreement or the other Transaction Documents, and the Aggregate Commitment Amount shall be
automatically increased by the applicable Commitment Amount of each such Purchaser. 
 1.3 Tranches; Closings. The purchase and sale
of Notes and issuance of the Warrants in connection therewith shall take place in one or more tranches (each, a “Tranche”) as determined by the Company pursuant to the terms and conditions of this Agreement. The initial Tranche will
be drawn in two separate closings, the first of which (the “Initial Closing”) shall occur on the date of this Agreement, or on such other date agreed upon by the Company and the Placement Agent (the “Initial Closing
Date”), and the second of which (the “Second Closing”) shall take place on the date that Subscriptions totaling in the aggregate the Maximum Commitment Amount are received (including Subscriptions with respect to which
Notes were purchased and Warrants were issued in the Initial Closing). After the Initial Closing Date and prior to the second anniversary of the Initial Closing Date (the “Draw Termination Date”), the Company may, in its sole and
absolute discretion, schedule one or more subsequent closings for the purchase and sale of Tranches of Notes and having aggregate principal amount of not less than one third (1/3) of the Aggregate Commitment Amount per Tranche, together with
corresponding Warrants (each, a “Subsequent Closing”), until the entire Aggregate Commitment Amount of Notes has been sold. The Company shall schedule a Subsequent Closing by sending a written notice in substantially the form
attached hereto as Exhibit C to the Placement Agent and to each Purchaser (a “Tranche Request”) at least 15 calendar days prior to the date of the Subsequent Closing, or a shorter period otherwise agreed upon by the Company
and the 

  
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Placement Agent. The Initial Closing, the Second Closing and each Subsequent Closing are each sometimes referred to herein as a “Closing,” and the date on which each such Closing
occurs is sometimes referred to herein as a “Closing Date.” The Company may in its sole and absolute discretion decide not to schedule any Subsequent Closings and the Company is under no commitment to sell and issue all or any of
the Notes and Warrants available for sale and issuance pursuant to this Agreement after the Initial Closing. 
 1.4 Actions to be Taken
in Connection with the Closing of each Tranche. 
 (a) The parties hereto acknowledge and agree that an aggregate amount of one third
(1/3) of the Aggregate Commitment Amount for Subscriptions received as of the date hereof will be sold and issued in the Initial Closing, and the Placement Agent has notified each Purchaser participating in the Initial Closing prior to the
execution of this Agreement of such Purchaser’s Closing Amount (as defined below) with respect to the Initial Closing. Further, the parties hereto acknowledge and agree that an aggregate amount of one third (1/3) of the Commitment Amounts
for Subscriptions received with respect to Purchasers that did not purchase Notes and receive Warrants in the Initial Closing will be sold and issued to such Purchasers in the Second Closing, and the Placement Agent has notified each such Purchaser
prior to their execution of this Agreement of such Purchaser’s Closing Amount with respect to the Second Closing. Thereafter, promptly after receipt of any Tranche Request for any Subsequent Closing, the Placement Agent will forward the Tranche
Request to each Purchaser. For purposes of this Agreement, (i) “Closing Amount” means, with respect to each Purchaser, the Purchaser’s Pro Rata Share of the Aggregate Purchase Price applicable to such Closing,
(ii) “Aggregate Purchase Price” means the aggregate principal amount of Notes to be purchased by all Purchasers at a Closing, as determined by the Company subject to the terms and conditions of this Agreement, and
(iii) “Pro Rata Share” means, with respect to each Purchaser, the quotient obtained by dividing (A) such Purchaser’s Commitment Amount, by (B) the aggregate Commitment Amounts of all Purchasers hereunder. 

(b) At each Closing, the Company will sell to each Purchaser and each Purchaser will purchase from the Company, a Note having a principal
amount equal to the Purchaser’s Closing Amount for the applicable Tranche, and in connection therewith, will issue each Purchaser a Warrant to purchase a number of shares of Common Stock equal to the product obtained by multiplying the
Applicable Percentage (as defined below) by the quotient obtained by dividing (x) the Purchaser’s Closing Amount applicable to such Tranche, by (y) the Market Value (as defined below) applicable to such Tranche. The Warrants shall
have an exercise price equal to 115% of the Market Value applicable to the Tranche in which they are issued. 
 (c) For purposes of this
Agreement, (i) “Applicable Percentage” means (A) 25% for the first Tranche (which, for the avoidance of doubt, applies to Warrants issued in the Initial Closing and the Second Closing), (B) 25% for the second Tranche,
and (C) 20% for each subsequent Tranche, provided, however, that for any Tranche for which the Company delivers a Tranche Request to the Placement Agent after the date that is 12 months following the Initial Closing Date, the Applicable
Percentage shall be 35%; and (ii) “Market Value” means (A) for Initial Closing, the VWAP of the Common Stock for the five Trading Days immediately preceding the Initial Closing Date, (B) for Second Closing, the VWAP
of the Common Stock for the five Trading Days immediately preceding the date of the Second Closing, 

  
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and (C) for each subsequent Tranche, the lesser of (x) the VWAP of the Common Stock for the five Trading Days immediately preceding the Initial Closing Date, and (y) the VWAP of
the Common Stock for the five Trading Days immediately preceding the applicable Closing Date for such Tranche. For purposes of this Agreement, the “VWAP” of the Common Stock for any given period, shall be the volume weighted average
sale price of the Company’s Common Stock for such period, as reported by Bloomberg Financial Markets. For purposes of this Agreement, “Trading Day” means (i) a day on which the Common Stock is listed or quoted and traded
on its Principal Trading Market (other than the OTC Bulletin Board), or (ii) if the Common Stock is not listed on a Trading Market (other than the OTC Bulletin Board), a day on which the Common Stock is traded in the over-the-counter market
(including the OTC Bulletin Board), as reported by the OTC Bulletin Board, or (iii) if the Common Stock is not quoted on any Trading Market, a day on which the Common Stock is quoted in the over-the-counter market as reported by OTC Link LLC
(formerly known as Pink Sheets LLC) (or any similar organization or agency succeeding to its functions of reporting prices); provided, that in the event that the Common Stock is not listed or quoted as set forth in (i), (ii) and
(iii) hereof, then Trading Day shall mean a Business Day (as defined below). “Trading Market” means whichever of the New York Stock Exchange, the NYSE MKT (formerly the American Stock Exchange), the NASDAQ Global Select Market,
the NASDAQ Global Market, the NASDAQ Capital Market or the OTC Bulletin Board on which the Common Stock is listed or quoted for trading on the date in question. “Principal Trading Market” means the Trading Market on which the Common
Stock is primarily listed on and quoted for trading, which, as of the date of this Agreement and the Initial Closing Date, shall be the OTC Bulletin Board. 

(d) Upon compliance with all conditions to the applicable Closing, the institution designated by the Placement Agent, with notice to the
Company, shall release the proceeds of the Closing to the Company, less fees and expenses due to the Placement Agent. 
 1.5 Payment
Mechanics. No later than one Business Day prior to each Closing, each Purchaser will deposit its Closing Amount into escrow with an institution designated by the Placement Agent pursuant to the instructions in the applicable Tranche Request. The
Closing Amount is payable by wire transfer or such other method as determined by the Placement Agent. Purchasers paying by wire transfer should direct such wire transfer to the account specified on the applicable Tranche Request. 

1.6 Delivery of Documents. The documents evidencing the Notes purchased, and the Warrants issued, at the Closing will be delivered by
the Company to the Placement Agent on the applicable Closing Date. 
  

	II.	REPRESENTATIONS, WARRANTIES AND COVENANTS OF PURCHASERS 

 Each Purchaser hereby
represents, warrants and covenants to the Company, severally and not jointly, as follows: 
 2.1 The Purchaser recognizes and acknowledges
that the purchase of the Securities involves a high degree of risk including, but not limited to, the following: (i) an investment in the Company is highly speculative, and only Purchasers who can afford the loss of

  
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their entire investment should consider investing in the Company and the Securities; (ii) the Purchaser may not be able to liquidate his/her/its investment; (iii) transferability of the
Securities is extremely limited; (iv) in the event of a disposition of the Securities, the Purchaser could sustain the loss of his/her/its entire investment; and (v) the Company has not paid any dividends on its Common Stock since
inception and does not anticipate the payment of dividends in the foreseeable future. 
 2.2 The Purchaser is an “accredited
investor” as such term is defined in Rule 501(a) of Regulation D as indicated by the Purchaser’s responses to the questions contained in Schedule A hereof, which responses are true and correct as of the date hereof and
shall be true and correct as of each Closing, and the Purchaser is able to bear the economic risk of an investment in the Company for an indefinite period of time. If the Purchaser is a natural person, the Purchaser has reached the age of majority
in the state or other jurisdiction in which the Purchaser resides. 
 2.3(a) The Purchaser hereby acknowledges and represents that
(i) the Purchaser is knowledgeable, sophisticated and has experience in making, and is qualified to make, decisions with respect to investments representing an investment decision like that involved in the purchase of the Securities hereunder
and has prior investment experience, including investment in securities which are non-listed, unregistered and/or not traded on a national securities exchange; (ii) the Purchaser recognizes that the Company’s financial condition has been
and continues to be weak and the Company’s auditors have included explanatory paragraphs in the Company’s audited financial statements for the fiscal year ended 2013 indicating substantial doubt as to the Company’s ability to continue
as a going concern; and (iii) Purchaser recognizes that the market price of the Common Stock of the Company has been and continues to be volatile, and Purchaser has carefully evaluated the risks of an investment in the Securities. 

(b) The Purchaser hereby acknowledges that the Purchaser has read the Offering Materials (as defined below), including the sections titled
“Risk Factors” set forth therein, and understands that (i) an investment in the Securities is a highly speculative investment, and in the event of a liquidation, bankruptcy or insolvency of the Company, it is highly unlikely that the
Company will have sufficient assets to repay all the Notes in full; (ii) the collateral securing the Company’s obligations under the Notes consists primarily of the Company’s intellectual property, the value of which is tied to the
Company as a going concern and such collateral will generate substantially less value to secured creditors in a liquidation than the operating value of the Company; and (iii) delays, costs and expenses incurred in connection with any
enforcement of the Collateral (as defined in the Security Agreement) will further erode the amount of funds available, if any, to repay the holders of Notes. 

2.4 The Purchaser hereby acknowledges that he/she/it has received and carefully reviewed this Agreement and the offering materials provided to
the Purchasers, as amended or supplemented, including all documents attached thereto or incorporated by reference therein (the “Offering Materials”), including the following documents filed by the Company with the Securities and
Exchange Commission (the “SEC” or the “Commission”): Annual Report on Form 10-K for the year ended December 31, 2013, filed March 31, 2014; Amendment No. 1 to Annual Report on Form 10-K/A
for the year end December 31, 2013, filed April 30, 2014; 

  
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Quarterly Report on Form 10-Q for the three months ended March 31, 2014, filed May 15, 2014; Quarterly Report on Form 10-Q for the three months ended June 30, 2014, filed
August 14, 2014; Proxy Statement on Schedule 14A filed May 28, 2014; Current Reports on Form 8-K filed June 13, 2014, July 22, 2014, and July 31, 2014. Any information that the Company subsequently files with the SEC
prior to the Draw Termination Date that is incorporated by reference will automatically update and supersede any previous information that is part of, and be included in, the Offering Materials. The Purchaser further represents that the Purchaser
has been furnished by the Company during the course of this transaction with all information regarding the Company which the Purchaser, its investment advisor, attorney and/or accountant has requested or desired to know or which is otherwise
relevant to an investment decision, has been afforded the opportunity to ask questions of, and receive answers from, duly authorized officers or other representatives of the Company concerning the terms and conditions of the Offering, and has
received any additional information which the Purchaser or its advisors or agents has requested. 
 2.5 (a) The Purchaser has relied solely
upon the information in the Offering Materials or provided by the Company in making the decision to invest in the Securities. The Purchaser is familiar with and understands the terms of the Offering, including the rights to which the Purchaser is
entitled under this Agreement. In evaluating the suitability of an investment in the Company, the Purchaser has not relied upon any representation or other information (whether oral or written) from the Company, or any agent, employee or Affiliate
(as defined below) of the Company other than as set forth in the Offering Materials, in this Agreement or resulting from Purchaser’s own independent investigation. Purchaser understands and acknowledges that nothing in this Agreement, the
Offering Materials or any other materials provided to Purchaser in connection with the Subscription for the Securities constitutes investment, tax or legal advice. To the extent deemed necessary or advisable by Purchaser in his/her/its sole
discretion, the Purchaser has retained, at his/her/its sole expense, and relied upon appropriate professional advice regarding the investment, tax and legal merits and consequences of this Agreement and its purchase of the Securities hereunder. 

(b) The Purchaser is not purchasing the Securities as a result of any advertisement, article, notice or other communication regarding the
Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general advertisement. 

2.6 The Purchaser hereby acknowledges that neither the Offering nor the Offering Materials has been reviewed, recommended or endorsed by the
SEC or any state securities regulatory authority or other governmental body or agency, since the Offering is intended to be exempt from the registration requirements of Section 5 of the Securities Act pursuant to Regulation D or pursuant to
Section 4(a)(2) of the Securities Act. The Purchaser shall not sell or otherwise transfer the Securities unless such transfer is registered under the Securities Act or unless an exemption from such registration is available. The Purchaser
understands that if required by the laws or regulations or any applicable jurisdictions, the Offering contemplated hereby will be submitted to the appropriate authorities of such state(s) for registration or exemption therefrom and the Offering
contemplated hereby will be specifically subject to the receipt of such registration or exemption. 

  
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 2.7 The Purchaser understands and acknowledges that the Securities have not been registered under
the Securities Act in reliance upon a claimed exemption under the provisions of the Securities Act which depends, in part, upon the Purchaser’s investment intention and the truth and accuracy of, and the Purchaser’s compliance with, the
representations, warranties, acknowledgments and covenants of the Purchaser set forth herein. In this connection, the Purchaser hereby represents that the representations, warranties, acknowledgments and covenants of the Purchaser set forth herein
are true and accurate, the Purchaser will comply with the covenants set forth herein, and the Purchaser is purchasing the Securities for the Purchaser’s own account for investment purposes only and not with a view toward the resale or
distribution to others and has no contract, undertaking, agreement or other arrangement to sell, pledge, assign or otherwise transfer the Securities to any other person. The Purchaser, if an entity, also represents that it was not formed for the
purpose of purchasing the Securities. 
 2.8 The Purchaser understands that the Securities will not be registered or available for sale in
the public markets except as specifically provided herein, and Rule 144 promulgated under the Securities Act (“Rule 144”) requires, among other conditions, a six month holding period prior to the resale (and with respect to
Affiliates of the Company, such resales may only be in limited amounts) of securities acquired in a non-public offering without having to satisfy the registration requirements under the Securities Act. The Purchaser understands and hereby
acknowledges that the Company is under no obligation to register any of the Securities under the Securities Act or any state securities or “blue sky” laws or assist the Purchaser in obtaining an exemption from various registration
requirements, other than as set forth in Article VII herein. 
 2.9 The Purchaser consents to the placement of a legend on any Note,
certificate, warrant or other document evidencing the Securities substantially in one of the forms set forth below, that such Securities have not been registered under the Securities Act or any state securities or “blue sky” laws and
setting forth or referring to the restrictions on transferability and sale thereof contained in this Agreement. The Purchaser is aware that the Company will make a notation in its appropriate records and with its transfer agent with respect to the
restrictions on the transferability of the Securities. 
 “THIS 12% SENIOR SECURED NOTE (THIS “NOTE”) HAS NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE. THIS NOTE IS SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED (A) IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THIS NOTE UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAW, (B) IN THE ABSENCE OF AN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE REASONABLY SATISFACTORY TO INSITE VISION
INCORPORATED, THAT REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR (C) UNLESS SOLD PURSUANT TO RULE 144 UNDER THE SECURITIES ACT.” 

  
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 “NEITHER THESE SECURITIES NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES HAVE
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (A) IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT, (B) UNLESS IN ACCORDANCE WITH RULE 144 UNDER THE SECURITIES ACT OR (C) UNLESS PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY AND ITS TRANSFER AGENT.” 

2.10 The Purchaser hereby represents that the address of the Purchaser furnished by Purchaser on the signature page hereof is the
Purchaser’s principal residence if Purchaser is an individual or its principal business address if it is a corporation or other entity. 

2.11 The Purchaser represents that (i) the Purchaser has full right, power, authority and capacity (corporate, personal, statutory and
otherwise) to execute, deliver, and perform this Agreement and to purchase the Securities and has taken all action necessary to authorize the execution, delivery and performance of this Agreement; and (ii) this Agreement constitutes the legal,
valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors’ and contracting parties’ rights generally and except as enforceability may be subject to limitations of public policy and general principals of equity (regardless of whether such enforceability is considered at law or equity).

 2.12 If the Purchaser is a corporation, partnership, limited liability company, trust, employee benefit plan, individual retirement
account, Keogh Plan, or other entity (i) it is authorized and qualified to become a Purchaser and/or securityholder in the Company and the person signing this Agreement on behalf of such entity has been duly authorized by such entity to do so
and (ii) it is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization. 
 2.13
The Purchaser acknowledges that if he or she is a Registered Representative of a Financial Industry Regulatory Authority (“FINRA”) member firm, he or she must give such firm the notice required by applicable FINRA rules, receipt of
which must be acknowledged in accordance with such rules. 
 2.14 The Purchaser understands, acknowledges and agrees with the Company that,
except as otherwise set forth herein, the Subscription hereunder is irrevocable by the Purchaser, that, except as required by law, the Purchaser is not entitled to cancel, terminate or revoke this Agreement or any agreements of the Purchaser
hereunder and that this Agreement and such other agreements shall survive the death or disability of the Purchaser and shall be binding upon and inure to the benefit of the parties and their heirs, executors, administrators, successors, legal
representatives and permitted assigns. If the Purchaser is more than one person, the obligations of the Purchaser hereunder shall be joint and several and the agreements, representations, warranties and acknowledgments herein contained shall be
deemed to be made by and be binding upon each such person and his/her heirs, executors, administrators, successors, legal representatives and permitted assigns. 

  
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 2.15 The Purchaser understands, acknowledges and agrees with the Company that the Offering is
intended to be exempt from registration under the Securities Act by virtue of Section 4(a)(2) of the Securities Act and/or the provisions of Regulation D thereunder, which is in part dependent upon the truth, completeness and accuracy of
the statements made by the Purchaser. 
 2.16 The Purchaser understands, acknowledges and agrees with the Company that, there can be no
assurance that the Purchaser will be able to sell or dispose of the Securities. It is understood that in order not to jeopardize the Offering’s exempt status under Section 4(a)(2) of the Securities Act and/or Regulation D, in addition to
any other restrictions on transfer set forth herein or in the Warrants, the Company may, at a minimum, require any transferee to fulfill the Purchaser suitability requirements thereunder and make the representations, warranties and covenants of
Purchaser hereunder. 
 2.17 The Purchaser agrees that during the period from the date that Purchaser was first contacted with respect to
the Offering (the “First Date”) through the date that is 30 days following the Draw Termination Date, the Purchaser will not directly or indirectly, through related parties, affiliates or otherwise sell “short” or
“short against the box” (as those terms are generally understood) any equity security of the Company, and from the First Date through the date that is 30 days following the Draw Termination Date, will not take any action, other than any
action such Purchaser is specifically entitled to take under the Transaction Documents (as defined below), the intent or reasonably foreseeable effect of which is to reduce the trading price of the Common Stock. At no time will the Purchaser take
any action with respect to any equity security of the Company which would violate the Securities Act or the rules and regulations promulgated thereunder. 

2.18 If the Purchaser is purchasing the Securities in a fiduciary capacity for another person or entity, including without limitation a
corporation, partnership, trust or any other entity, the Purchaser has been duly authorized and empowered to execute this Agreement and all other subscription documents, and such other person or entity fulfills all the requirements for purchase of
the shares as such requirements are set forth herein, concurs in the purchase of the Securities and agrees to be bound by the obligations, representations, warranties and covenants contained herein. 

2.19 No authorization, approval, consent or license of any person is required to be obtained for the purchase of the Securities by the
Purchaser, other than as have been obtained and are in full force and effect. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated hereby will not, result in any violation of or constitute a
default under (i) any Purchaser’s charter, by-laws or other organizational documents, as applicable, (ii) any material agreement or other instrument to which the Purchaser is a party or by which the Purchaser or any of its properties
are bound, or (iii), to the best of the Purchaser’s knowledge, any permit, franchise, judgment, order, decree, statute, rule or regulation to which the Purchaser or any of its businesses or properties is subject, except in the case of clauses
(ii) and (iii) above, for such violations or defaults which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of such Purchaser to perform its obligations hereunder. 

  
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 2.20 The representations, warranties and agreements of the Purchaser contained herein, in the
Confidential Purchaser Questionnaire and in any other writing delivered in connection with the transactions contemplated hereby shall be true and correct in all respects on and as of each Closing Date as if made on and as of such date and shall
survive the execution and delivery of this Agreement and the purchase of the Securities. Purchaser agrees to notify the Company as promptly as possible of any change in any of the foregoing information until such time as the Purchaser has sold all
of its Securities. 
 2.21 The Purchaser hereby covenants with the Company not to make any sale of the Securities under any registration
statement without effectively causing the prospectus delivery requirement under the Securities Act to be satisfied, and further agrees to comply with reasonable requests of the Company or its transfer agent to provide additional information and
representations concerning such sale. 
 2.22 Purchaser acknowledges the following disclosure, which is set forth herein as required
pursuant to Section 25102(a) of the California Corporate Securities Law of 1968: 
 “THE SALE OF THE SECURITIES THAT ARE THE
SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF THE SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION THEREFOR PRIOR TO THE QUALIFICATION IS
UNLAWFUL, UNLESS THE SALE OF SECURITIES IS EXEMPT FROM THE QUALIFICATION BY SECTION 25100, 25102, OR 25105 OF THE CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON THE QUALIFICATION BEING
OBTAINED, UNLESS THE SALE IS SO EXEMPT.” 
  

	III.	REPRESENTATIONS AND WARRANTIES BY AND OF THE COMPANY 

 Except as set forth in the
schedules delivered herewith (the “Disclosure Schedules”), which Disclosure Schedules shall be deemed a part hereof and shall qualify any representation made herein to the extent of the disclosure contained in the corresponding
section of the Disclosure Schedules or other representations relating to the subject matter of such disclosures, the Company hereby represents and warrants as of the date hereof (except for the representations that speak as of a specific date, which
shall be made as of such date) to the Placement Agent and to each of the Purchasers: 
 3.1 Organization, Good Standing and
Qualification. The Company and each of its Subsidiaries (as defined below) is a corporation duly incorporated, validly existing and in good standing under the laws of its jurisdiction of incorporation and has full corporate power and authority
to conduct its business as currently conducted. The Company and each of its Subsidiaries is duly qualified as a foreign corporation to do business and is in good standing in every jurisdiction in which the property owned or leased by it or the
nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so 

  
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qualified or in good standing would not reasonably be expected to have, individually or in the aggregate, (i) a material adverse effect on the legality, validity or enforceability of any
Transaction Document, (ii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document, or (iii) a material adverse effect on the business,
prospects, operations, condition (financial or otherwise), assets, properties or results of operations of the Company and its Subsidiaries as a whole (any of (i), (ii) or (iii), a “Material Adverse Effect”). The Company owns,
directly or indirectly, all of the capital stock or comparable equity interests of each Subsidiary free and clear of any and all Liens (as defined below), and all the issued and outstanding shares of capital stock or comparable equity interests of
each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights. For purposes hereof, “Subsidiary” shall mean, with respect to any Person (as defined below), any other Person of which
more than fifty percent (50%) of the shares of stock or other interests entitled to vote in the election of directors or comparable Persons performing similar functions (excluding shares or other interests entitled to vote only upon the failure
to pay dividends thereon or other contingencies) are at the time owned or controlled, directly or indirectly through one or more Subsidiaries, by such Person. For purposes hereof, “Transaction Documents” shall mean this Agreement,
the Notes, the Security Agreement, the Collateral Agency Agreement, and the Warrants. 
 3.2 Capitalization. 

(a) The authorized, issued and outstanding capital stock of the Company is as set forth in the Offering Materials (as of the last date set
forth therein). All of the securities issued by the Company have been issued in accordance with all applicable federal and state securities laws, and all issued and outstanding shares of Common Stock of the Company are validly issued, fully paid and
non-assessable. Other than as disclosed or contemplated in the Offering Materials as of the last date set forth therein, there are no other options, warrants, calls, rights, commitments or agreements of any character to which the Company is a party
or by which either the Company is bound or obligating the Company to issue, deliver, sell, repurchase or redeem, or cause to be issued, delivered, sold, repurchased or redeemed, any shares of the capital stock of the Company or obligating the
Company to grant, extend or enter into any such option, warrant, call, right, commitment or agreement. There are no preemptive rights or rights of first refusal or similar rights which are binding on the Company permitting any person to subscribe
for or purchase from the Company shares of its capital stock pursuant to any provision of law, the Company’s Certificate of Incorporation as in effect on the applicable Closing Date (the “Certificate of Incorporation”) or the
Company’s By-laws, as in effect on the applicable Closing Date (the “By-laws”) or by agreement or otherwise. Other than as disclosed in the Offering Materials, there are no securities or instruments (including, without
limitation, any warrants or convertible debentures) containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities as described in this Agreement. Except as provided in the Offering Materials, this Agreement,
or in the engagement letter, dated September 17, 2014, between the Company and the Placement Agent (the “Placement Agent Agreement”), no stockholder of the Company has any right to request or require the Company to register the
sale of any shares owned by such stockholder under the Securities Act. The Company has made available to the Purchasers and the Placement Agent true and correct copies of the Company’s Certificate of Incorporation and the Company’s
By-laws. 

  
 11 

 (b) The Securities are duly authorized and, when issued and paid for in accordance with the
applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens (as defined below) other than Liens specific to any Purchaser and other than restrictions on transfer provided for in the
Transaction Documents or by applicable law. The Warrant Shares when issued in accordance with the terms of the Transaction Documents, will be validly issued, fully paid and nonassessable, free and clear of all Liens (other than Liens specific to any
Purchaser) and shall not be subject to preemptive or similar rights of stockholders. The Company has reserved from its duly authorized capital stock a sufficient number of shares of Common Stock for issuance of the Warrant Shares issuable under the
Warrants issued in the Initial Closing and will reserve a sufficient number of shares of Common Stock for issuance of the Warrant Shares issuable under the Warrants, if any, issued in the Second Closing and any Subsequent Closing prior to such
Second Closing or Subsequent Closing. For purposes hereof, “Liens” shall mean and include security interests, mortgages, liens, pledges, charges, easements, reservations, restrictions, rights of way, servitudes, options, rights of
first refusal, community property interests, equitable interests, restrictions of any kind and all other encumbrances, whether or not relating to the extension of credit or the borrowing of money. 

3.3 Authorization; Enforceability. The Company has all requisite corporate right, power and authority to enter into this Agreement and
the other Transaction Documents and to consummate the transactions contemplated hereby and thereby. All corporate action on the part of the Company, its directors and stockholders necessary for the authorization, execution, delivery and performance
of this Agreement and the other Transaction Documents by the Company, the authorization, sale, issuance and delivery of the Securities contemplated herein and the performance of the Company’s obligations hereunder has been taken (other than
filings as may be required to be made with the Commission, FINRA or with any state or foreign blue sky or securities regulatory authority, which filings will be made on or prior to the applicable Closing or, for those filings which by their terms
may be made after any applicable Closing, such filings will be made after such Closing within the time period prescribed for such filings). This Agreement and the Transaction Documents have been duly executed and delivered by the Company and
constitute legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their respective terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting creditors’ and contracting parties’ rights generally and except as enforceability may be subject to limitations of public policy or general principals of equity (regardless of whether such enforceability is
considered at law or equity). 
 3.4 No Conflict; Governmental and Other Consents; No Violations. 

(a) The execution, delivery and performance by the Company of the Transaction Documents and the consummation by the Company of the
transactions contemplated thereby will not (i) conflict with or result in the violation of any law, statute, rule, regulation, order, writ, injunction, judgment or decree of any court or governmental authority to or by which the Company or any
Subsidiary is bound, (ii) conflict with or violate any provision of the Certificate of Incorporation or By-laws of the Company or any Subsidiary, or (iii) conflict with, or result in a breach or violation of, any of the terms or provisions
of, or constitute (with due notice or lapse of time or both) a default under, any lease, loan agreement, mortgage, security 

  
 12 

 
agreement, trust indenture or other agreement or instrument to which the Company or any Subsidiary is a party or by which it is bound or to which any of its properties or assets is subject, nor
result in the creation or imposition of any Lien upon any of the properties or assets of the Company or any Subsidiary where, in the case of each of clauses (i) and (iii) such conflict, violation, breach, default or imposition is
reasonably likely to result in a Material Adverse Effect. 
 (b) No consent, approval, authorization or other order of, or any filing or
registration with, any governmental authority or other third-party is required to be made or obtained by the Company or any Subsidiary in connection with the authorization, execution, delivery and performance of this Agreement and the other
Transaction Documents or with the authorization, issue and sale of the Securities, except such filings as may be required to be made with the Commission, FINRA or with any state or foreign blue sky or securities regulatory authority, which filings
will be made on or prior to the Closing or, for those filings which may be made post-Closing, such filings will be made post-Closing within the time period prescribed for such filings. 

(c) Neither the Company nor any of its Subsidiaries (i) is in default under or in violation of (and no event has occurred that has not
been waived that, with notice or lapse of time or both, would result in a default by the Company or any of its Subsidiaries under), nor has the Company or any of its Subsidiaries received written notice of a claim that it is in default under or that
it is in violation of, any agreement (whether or not such default or violation has been waived), (ii) is in violation of any order of any court, arbitrator or governmental body having jurisdiction over the Company or any of its Subsidiaries or
their properties or assets, or (iii) is in violation of, or in receipt of written notice that it is in violation of, any statute, rule or regulation of any governmental authority applicable to the Company or any of its Subsidiaries, except in
each case set forth in clauses (i), (ii) and (iii) as would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect. 

3.5 Litigation. Other than as disclosed in the SEC Reports (as defined below), there is no pending or, to the knowledge of the Company,
threatened legal or governmental proceedings to which the Company is a party which is reasonably expected to result in a Material Adverse Effect. Neither the Company, nor any director or officer thereof (in connection with their service to the
Company), is the subject of any action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. To the knowledge of the Company, there is not pending or contemplated, any official
investigation by the Commission involving the Company or any current director or officer of the Company in connection with their service to the Company. The Company has not received any stop order or other order suspending the effectiveness of any
currently effective registration statement filed by the Company under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or the Securities Act. 

3.6 SEC Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required to
be filed by it under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) of the Exchange Act, for the one-year period preceding the date hereof (the foregoing materials, including the exhibits thereto and
documents incorporated by reference therein, being collectively referred to herein as 

  
 13 

 
the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension.
Except to the extent of any subsequent correction filed prior to the date hereof (and a copy of which has been heretofore provided to the Purchasers), as of their respective dates, the SEC Reports complied in all material respects with the
requirements of the Securities Act and the Exchange Act, as applicable, and the rules and regulations of the Commission promulgated thereunder, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to
state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The financial statements of the Company included in the SEC Reports,
as subsequently amended and restated (provided such amendments, if any, have been heretofore provided to the Purchasers), complied in all material respects with applicable accounting requirements and the rules and regulations of the Commission with
respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved
(“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material
respects the financial position of the Company as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 3.7 Material Changes. Since the date of the latest audited financial statements included within the SEC Reports, except as
disclosed in the SEC Reports, (i) there has been no event, occurrence or development that has had or would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, (ii) the Company has not incurred any
liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business, (B) liabilities that are not material to the Company, and that are not required to be reflected in the
Company’s financial statements pursuant to GAAP or required to be disclosed in filings made with the Commission and (C) expenses incurred in connection with the transactions contemplated hereunder, (iii) the Company has not altered
its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock
(other than the repurchase at cost of shares of unvested or restricted stock as permitted under the Company’s stock option or stock purchase plan upon termination of employment or service) and (v) the Company has not issued any equity
securities to any officer, director or Affiliate, except pursuant to existing Company stock purchase or stock option plans. Except for the issuance of the Securities contemplated by this Agreement and the transactions contemplated by the Transaction
Documents, no event, liability or development has occurred or exists with respect to the Company or its Subsidiaries or their respective business, properties, prospects, operations or financial condition, that is required to be disclosed by the
Company under applicable federal securities laws at the time this representation is made that has not been publicly disclosed at least one Trading Day prior to the date that this representation is made. 

3.8 Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities,
will not be or be an Affiliate of an “investment company” within the meaning of such term under the Investment Company Act of 1940, as amended, and the rules and regulations of the Commission thereunder. 

  
 14 

 3.9 Public Utility Holding Company. The Company is not, and after giving effect to the
offering and sale of the Securities and the application of the proceeds thereof as described in the Offering Materials, will not be, a “holding company,” or a “subsidiary company” of a “holding company,” or an
“affiliate” of a “holding company” or of a “subsidiary company” of a “holding company,” within the meaning of the Public Utility Holding Company Act of 1935, as amended. 

3.10 Use of Proceeds. The Company shall use the net proceeds of the Offering for product development and other general corporate
purposes. 
 3.11 Intellectual Property. 

(a) Section 3.11(a) of the Disclosure Schedule sets forth a list of: 

(i) all United States and foreign patents and patent applications, all United States, state and foreign trademarks, service marks and trade
names for which registrations have been issued or applied for that are owned by or to the knowledge of the Company are subject to an obligation of assignment to the Company, in each case as of the date hereof; and 

(ii) all United States and foreign patents and patent applications, all United States, state and foreign trademarks, service marks and trade
names for which registrations have been issued or applied for that are licensed to the Company as of the date hereof. 
 (b) The Company
and/or its Subsidiaries owns or possesses adequate and, to its knowledge, enforceable rights to use all material patents, patent applications, trademarks, service marks, trade names, logos, corporate names, copyrights, trade secrets, processes, mask
works, licenses, inventions, formulations, technology and know-how and other intangible property currently used in the conduct of its business as described in the Offering Materials (the “Proprietary Rights”). The Company and/or its
Subsidiaries have taken commercially reasonable measures to protect all of the Company’s and such Subsidiary’s Proprietary Rights. Except as disclosed in the SEC Reports, neither the Company nor any of its Subsidiaries has received any
notice of, and there are not any facts known to the Company or any Subsidiary which indicate the existence of (i) any infringement or misappropriation by any third party of any of the Proprietary Rights, which infringement or misappropriation
would reasonably be expected to have a Material Adverse Effect, (ii) any claim by a third party contesting the validity of any of the Proprietary Rights, other than claims that would not reasonably be expected to have a Material Adverse Effect
or (iii) any infringement, misappropriation or violation by the Company or any Subsidiary or, to the Company’s knowledge, any of their employees, of any Proprietary Rights of third parties that would be reasonably expected to have a
Material Adverse Effect. To the Company’s knowledge, no infringement, illicit copying, misappropriation or violation of any intellectual property rights of any third party has occurred by the Company or any of its Subsidiaries with respect to
any products currently being sold by the Company or any 

  
 15 

 
Subsidiary or with respect to any products currently under development by the Company or any Subsidiary or with respect to the conduct of the business of the Company or any Subsidiary as
currently conducted. To the Company’s knowledge, no infringement, illicit copying, misappropriation or violation of any intellectual property rights of any third party will occur by the Company or any of its Subsidiaries as a result of the sale
by the Company or any Subsidiary of any products currently under development by the Company should such products receive the applicable regulatory approval for commercial sale. The Company is not aware that any of its employees, including the
employees of its Subsidiaries, are obligated under any contract (including licenses, covenants or commitments of any nature) or other agreement, or subject to any judgment, decree or order of any court or administrative agency, that the Company
believes would materially interfere with the use of the employee’s best efforts to promote the interests of the Company and/or its Subsidiaries or that would conflict with the business of the Company and/or its Subsidiaries as currently
conducted. To the Company’s knowledge, neither the execution and delivery of this Agreement, nor the carrying on of the business of the Company and its Subsidiaries by the employees of the Company and its Subsidiaries, nor the conduct of the
business of the Company and its Subsidiaries, as currently conducted, will conflict with or result in a breach of the terms, conditions or provisions of, or constitute a default under, any contract, covenant or instrument under which any such
employee is now obligated. 
 3.12 Private Offering. Neither the Company nor, to the Company’s knowledge, any Person acting on
the Company’s behalf has sold, offered to sell or solicited any offer to buy the Securities by means of any form of general solicitation or advertising. Neither the Company, nor, to the Company’s knowledge, any of its Affiliates or any
Person acting on the Company’s behalf has, directly or indirectly, at any time within the past six months, made any offer or sale of any security or solicitation of any offer to buy any security under circumstances that would eliminate the
availability of the exemption from registration under Regulation D under the Securities Act in connection with the offer and sale of the Securities as contemplated hereby. 

3.13 Transactions With Officers and Directors. Except as set forth in the Offering Materials, none of the officers or directors of the
Company is presently a party to any transaction with the Company (other than for services as officers or directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of
real or personal property to or from, or otherwise requiring payments to or from any officer or director, or to the knowledge of the Company, any entity in which any officer or director has a substantial interest or is an officer, director, trustee
or partner, in each case in excess of $60,000 other than (i) for payment of salary, consulting fees, board or board committee compensation for services rendered, (ii) reimbursement for expenses incurred on behalf of the Company,
(iii) for other employee benefits, including stock option agreements under any stock option plan of the Company, and (iv) the payment of fees to the Placement Agent and the Company’s other obligations pursuant to the Placement Agent
Agreement (it being acknowledged that Timothy McInerney, a director and Chairman of the Board of the Company, is a principal of the Placement Agent and Mr. McInerney is a Purchaser hereunder and is therefore a party to this Agreement and
certain of the other Transaction Documents). 

  
 16 

 3.14 Sarbanes-Oxley; Disclosure Controls. The Company is in compliance in all material
respects with all provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it. The Company has established disclosure controls and procedures (as such term is defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) for the
Company and designed such disclosure controls and procedures to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the
time periods specified in the Commission’s rules and forms. The Company’s certifying officers have evaluated the effectiveness of the Company’s disclosure controls and procedures as of the end covered by the period for the
Company’s most recently filed periodic report under the Exchange Act (the “Evaluation Date”). The Company disclosed in its most recently filed periodic report under the Exchange Act the conclusions of the certifying officers
about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no significant changes in the Company’s disclosure controls and procedures. 

3.15 Internal Controls. The Company maintains effective “internal control over financial reporting” (as defined in Rule
13a-15 under the Exchange Act) and a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations,
(ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset and liability accountability, (iii) access to assets or incurrence of liabilities is permitted only in
accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets and liabilities is compared with the existing assets and liabilities at reasonable intervals and appropriate action is taken
with respect to any differences. Since the end of the Company’s most recent audited fiscal year, there has been no material weakness or significant deficiency in the Company’s internal control over financial reporting (whether or not
remediated) and since such date there has been no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial
reporting. 
 3.16 Certain Fees. Neither the Company nor any of its officers has retained any broker, financial advisor or
consultant, finder, placement agent, investment banker, bank or other Person (collectively, “Intermediary”) with respect to the transactions contemplated by this Agreement other than the Placement Agent, and the Company shall
indemnify and hold harmless the Purchasers from any liability for any compensation to any Intermediary (other than the Placement Agent) engaged by the Company and the fees and expenses of defending against said liability or alleged liability. 

3.17 Private Placement. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Article II and the
responses to the questions on Schedule A hereof, and compliance by the Placement Agent with its obligations, no registration under the Securities Act is required for the offer and sale of the Securities to be delivered at Closing by the
Company to the Purchasers as contemplated hereby. 
 3.18 Exchange Act Registration. The Company’s Common Stock is registered
pursuant to Section 12(g) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has the
Company received any notification that the Commission is contemplating terminating such registration. 

  
 17 

 3.19 Reasonably Equivalent Value. The board of directors of the Company has determined
that the terms of the Securities offered hereunder represent the reasonably equivalent value with respect to the sale of the Securities. The Transaction Documents and the transactions contemplated thereby were the result of arms’ length
negotiations among the parties. 
 3.20 Representations Complete. None of the representations or warranties made by the Company in
this Agreement (except as modified by the Offering Materials, the Disclosure Schedules, or the SEC Reports) and none of the statements made by the Company in the Offering Materials contains any untrue statement of a material fact, or omits to state
any material fact necessary in order to make the statements contained herein or therein, in the light of the circumstances under which made, not misleading. No event or circumstance (other than the transactions contemplated by this Agreement) has
occurred or information exists with respect to the Company or its business, properties, prospects, operations or financial condition, which, under applicable federal law, rule or regulation, requires public disclosure or announcement by the Company
but which has not been so publicly announced or disclosed. 
 3.21 Tax Status. Except for matters that would not, individually or in
the aggregate, reasonably be likely to have a Material Adverse Effect, the Company has filed all necessary federal, state and foreign income and franchise tax returns and has paid or accrued all taxes shown as due thereon, and the Company has no
knowledge of a material tax deficiency which has been asserted or threatened against the Company. 
 3.22 Foreign Corrupt Practices.
Neither the Company, nor to the knowledge of the Company, any agent or other person acting on behalf of the Company, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses
related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to
disclose fully any contribution made by the Company (or made by any person acting on its behalf of which the Company is aware) which is in violation of law or (iv) violated in any material respect any provision of the Foreign Corrupt Practices
Act of 1977, as amended. 
 3.23 Disclosure. Except as set forth on Schedule 3.23, the Company confirms that it has not provided, and
to the Company’s knowledge, none of its officers or directors nor any other Person acting on its or their behalf has provided, and it has not authorized the Placement Agent to provide, any Purchaser (other than Timothy McInerney or any of his
Affiliates) or its respective agents or counsel with any information that it believes constitutes material, non-public information except insofar as the existence, provisions and terms of the Transaction Documents and the proposed transactions
hereunder may constitute such information, all of which will be disclosed by the Company in the press release as contemplated by Section 4.2 hereof. The Company understands and confirms that the Purchasers will rely on the foregoing
representations in effecting transactions in securities of the Company. The Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those
specifically set forth in Article 2 hereto. 

  
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 3.24 Environmental Matters. To the Company’s knowledge, none of the Company or any of
its Subsidiaries (i) is in violation of any statute, rule, regulation, decision or order of any governmental agency or body or any court, domestic or foreign, relating to the use, disposal or release of hazardous or toxic substances or relating
to the protection or restoration of the environment or human exposure to hazardous or toxic substances (collectively, “Environmental Laws”), (ii) owns or operates any real property contaminated with any substance that is in
violation of any Environmental Laws, (iii) is liable for any off-site disposal or contamination pursuant to any Environmental Laws, or (iv) is subject to any claim relating to any Environmental Laws; which violation, contamination,
liability or claim has had or would be reasonably likely to have, individually or in the aggregate, a Material Adverse Effect; and there is no pending investigation or, to the Company’s knowledge, investigation threatened in writing that might
lead to such a claim. 
 3.25 Employment Matters. (i) no material labor dispute exists or, to the Company’s knowledge, is
imminent with respect to any of the employees of the Company which would have or would reasonably be expected to result in a Material Adverse Effect; (ii) none of the Company’s or any Subsidiary’s employees is a member of a labor
union that relates to such employee’s relationship with the Company, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, (iii) no executive officer of the Company (as defined in Rule 501(f)
of the Securities Act) has notified the Company or any of its Subsidiaries in writing that such officer intends to leave the Company or any such Subsidiary or otherwise terminate such officer’s employment with the Company or any such
Subsidiary; and (iv) to the Company’s knowledge, no executive officer or key employee, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information
agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant in favor of any third party, and to the Company’s knowledge, the continued employment of each such executive officer or key employee does not
subject the Company or any Subsidiary to any liability with respect to any of the foregoing matters, except, in each case, matters that, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect. The
Company is in compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance would
not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. 
 3.26 Title to Assets. The
Company and each of its Subsidiaries has good and marketable title to all tangible personal property owned by it that is material to its business, in each case free and clear of all Liens except such as do not materially affect the value of such
property and do not interfere with the use made and proposed to be made of such property by the Company. Any real property and facilities held under lease by the Company and any of its Subsidiaries are, to the Company’s knowledge, held by it
under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings by the Company and its Subsidiaries. 

3.27 Regulation M Compliance. The Company has not, and to the Company’s knowledge no one acting on its behalf has, (i) taken,
directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company 

  
 19 

 
to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of, any of the Securities in violation of
Regulation M under the Exchange Act, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company, other than, in the case of clauses (ii) and (iii), it is
acknowledged by the Purchasers that the Company will pay compensation to the Placement Agent in connection with the placement of the Securities. 

3.28 Acknowledgment Regarding Purchasers’ Purchase of Securities. The Company acknowledges and agrees that each of the Purchasers
is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby. The Company further acknowledges that no Purchaser (other than Timothy McInerney,
Chairman of the Board of the Company and a principal of the Placement Agent) is acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated
thereby and any advice given by any Purchaser or any of their respective representatives or agents (other than Mr. McInerney and the Placement Agent) in connection with the Transaction Documents and the transactions contemplated thereby is
merely incidental to the Purchasers’ purchase of the Securities. The Company further represents to each Purchaser that the Company’s decision to enter into this Agreement and the other Transaction Documents has been based solely on the
independent evaluation of the transactions contemplated hereby by the Company and its representatives. 
 3.29 Insurance. The Company
and each of its Subsidiaries is insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as the Company believes to be prudent and customary in the businesses and locations in which the Company and
the Subsidiaries are engaged. None of the Company or any of its Subsidiaries has received any written notice of cancellation of any such insurance, nor, to the Company’s knowledge, will it or any Subsidiary be unable to renew its existing
insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a material increase in cost. 

3.30 Regulatory Permits. The Company and each of its Subsidiaries possesses all certificates, authorizations and permits issued by the
appropriate federal, state, local or foreign regulatory authorities necessary to conduct its business as currently conducted, except as set forth in the SEC Reports, or where the failure to possess such permits, individually or in the aggregate, has
not and would not reasonably be expected to result in a Material Adverse Effect (“Material Permits”), and neither the Company nor any of its Subsidiaries has received any notice of Proceedings relating to the revocation or
modification of any such Material Permits. 
 3.31 Government Licenses. Except as set forth in the SEC Reports, (i) the Company
and its Subsidiaries possess such permits, certificates, licenses, approvals, consents and other authorizations (collectively, “Governmental Licenses”) issued by the appropriate federal, state, local or foreign regulatory agencies
or bodies necessary to conduct the business of the Company as described in the SEC Reports, including without limitation, all such approvals, certificates, authorizations and permits required by the United States Food and Drug Administration (the
“FDA”) and/or other federal, state, local or foreign agencies or bodies engaged in the regulation of clinical trials, pharmaceuticals, or biohazardous substances or 

  
 20 

 
materials, except where the failure so to possess would not, individually or in the aggregate, have or reasonably be expected to have a Material Adverse Effect; (ii) the Company and each of
its Subsidiaries is in compliance with the terms and conditions of all such Governmental Licenses, except where the failure so to comply would not, individually or in the aggregate, have or reasonably be expected to have a Material Adverse Effect;
(iii) all of the Governmental Licenses are valid and in full force and effect, except when the invalidity of such Governmental Licenses or the failure of such Governmental Licenses to be in full force and effect would not, individually or in
the aggregate, have or reasonably be expected to have a Material Adverse Effect; and (iv) neither the Company nor any of its Subsidiaries has received any written notice of proceedings relating to the revocation or modification of any such
Governmental Licenses which, individually or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would have or reasonably be expected to have a Material Adverse Effect. Except as set forth in the SEC Reports, where
required by applicable laws and regulations of the FDA or any foreign regulatory authority, the Company and each of its Subsidiaries has submitted to the FDA or any foreign regulatory authority an Investigational New Drug Application, or similar
application, or amendment or supplement thereto for a clinical trial it has conducted or sponsored or is conducting or sponsoring, except where such failure would not, individually or in the aggregate, have or reasonably be expected to have a
Material Adverse Effect; all such submissions were, to the Company’s knowledge, in material compliance with applicable laws and rules and regulations when submitted and no material deficiencies have been asserted by the FDA or such foreign
regulatory authority with respect to any such submissions, except any deficiencies which could not, individually or in the aggregate, have or reasonably be expected to have a Material Adverse Effect. 

3.32 No “Bad Actor” Disqualification. The Company has exercised reasonable care to determine whether any Issuer Covered
Person (as defined below) is subject to any of the “bad actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Act (“Disqualification Events”). To the Company’s knowledge, no Issuer Covered
Person is subject to a Disqualification Event, except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3) under the Act. The Company has complied, to the extent applicable, with any disclosure obligations under Rule 506(e) under the
Act. “Issuer Covered Persons” are certain of those persons specified in Rule 506(d)(1) under the Act, including the Company; any predecessor or affiliated issuer of the Company; any director, executive officer or other officer
participating in the sale of the Notes being issued hereunder; any beneficial owner of 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power; any promoter (as defined in Rule 405 under the
Act) connected with the Company in any capacity at the time of the issuance of the Securities being issued hereunder. 
  

	IV.	COVENANTS OF THE COMPANY AND THE PURCHASERS 

 4.1 No Integration. The Company
shall not, and shall use its commercially reasonable efforts to ensure that no Affiliate of the Company (other than Timothy McInerney and the Placement Agent, it being acknowledged that Timothy McInerney, a director and Chairman of the Board of the
Company, is a principal of the Placement Agent) shall, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that will be integrated with the offer or
sale of the Securities to the Purchasers in a manner that would require the registration under the Securities Act of the sale of the Securities to the Purchasers, or that will be integrated with the offer or sale of the Securities to the Purchasers
for purposes of the rules and regulations of any Trading Market. 

  
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 4.2 Securities Laws Disclosure; Publicity. By 9:00 a.m., New York City time, on the
Trading Day immediately following the date hereof, the Company shall issue a press release (the “Press Release”) reasonably acceptable to the Placement Agent disclosing all material terms of the transactions contemplated hereby. On
or before 5:30 p.m., New York City time, on the fourth Trading Day immediately following the execution of this Agreement, the Company will file a Current Report on Form 8-K with the Commission describing the terms of the Transaction Documents (and
including as exhibits to such Current Report on Form 8-K the Transaction Documents). Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Purchaser (other than Timothy McInerney or any of his Affiliates) or an
Affiliate of any Purchaser, or include the name of any Purchaser or an Affiliate of any Purchaser (other than Timothy McInerney or any of his Affiliates) in any press release or filing with the Commission (other than any registration statement
contemplated by this Agreement) or any regulatory agency or Trading Market, without the prior written consent of such Purchaser, except (i) as required by federal securities law in connection with (A) any registration statement
contemplated by this Agreement and (B) the filing of final Transaction Documents (including signature pages thereto) with the Commission and (ii) to the extent such disclosure is required by law, request of the staff of the Commission,
Trading Market regulations, or other rules, regulations or orders, in which case the Company shall provide the Purchasers with prior written notice of such disclosure permitted under this subclause (ii). From and after the issuance of the Press
Release, no Purchaser (other than Timothy McInerney or any of his Affiliates) shall be in possession of any material, non-public information received from the Company or any of its officers, directors, employees or agents, that is not disclosed in
the Press Release unless such Purchaser shall have executed a written agreement regarding the confidentiality and use of such information. Each Purchaser, severally and not jointly with the other Purchasers, covenants that it will comply with the
provisions of any confidentiality or nondisclosure agreement executed by it and, in addition, until such time as the transactions contemplated by this Agreement are required to be publicly disclosed by the Company as described in this
Section 4.2, such Purchaser will maintain the confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction). 

4.3 Non-Public Information. Except with respect to the material terms and conditions of the transactions contemplated by the
Transaction Documents, including this Agreement, or as expressly required by any applicable securities law, the Company covenants and agrees that neither it, nor any other Person acting on its behalf, will provide any Purchaser (other than Timothy
McInerney or any of his Affiliates) or its agents or counsel with any information regarding the Company that the Company believes constitutes material non-public information without the express written consent of such Purchaser, unless prior thereto
such Purchaser shall have executed a written agreement regarding the confidentiality and use of such information. The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in
securities of the Company. 
 4.4 Form D; Blue Sky. The Company agrees to timely file a Form D with respect to the Securities as
required under Regulation D and to provide a copy thereof, promptly upon the written request of any Purchaser. The Company, on or before each Closing Date, shall 

  
 22 

 
take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for or to qualify the Securities for sale to the Purchasers at each Closing pursuant to
this Agreement under applicable securities or “Blue Sky” laws of the states of the United States (or to obtain an exemption from such qualification) and shall provide evidence of such actions promptly upon the written request of any
Purchaser. 
  

	V.	TERMS OF SUBSCRIPTION; CONDITIONS TO OBLIGATIONS OF THE COMPANY 

 5.1 All funds paid
hereunder shall be deposited by each such Purchaser in escrow with an institution designated by the Placement Agent prior to each Closing, consistent with the terms of this Agreement. 

5.2 The Purchaser hereby authorizes and directs the Company, upon each Closing, to deliver the documents representing the Securities to be
issued to the Purchaser pursuant to this Agreement at such Closing to the residential or business address indicated on the signature page hereto. 

5.3 The Company’s agreement with each Purchaser is a separate agreement and each sale of the Securities to each Purchaser is a separate
sale. 
 5.4 In addition to the other requirements set forth herein, the Company’s obligation to complete the sale and issuance of the
Securities and deliver such Securities to the Purchaser at each Closing shall be subject to the following conditions, any one or more of which may be waived in writing by the Company: (a) receipt by the Company of the aggregate principal amount
of the Notes being purchased hereunder at such Closing (less the cash placement fee due to the Placement Agent as provided in the Placement Agent Agreement); (b) the representations, warranties, and acknowledgements made by the Purchasers in
this Agreement shall be true and correct when made and shall be true and correct on and as of such Closing, and all undertakings, agreements and covenants of the Purchasers required to be fulfilled prior to such Closing shall have been performed or
complied with; (c) the Purchaser shall have completed, executed and delivered to the Company the Confidential Purchaser Questionnaire set forth on Schedule A, which Questionnaire shall be true and correct as of such Closing and shall be
satisfactory to the Company in its sole discretion; (d) there shall not then be in effect any legal or other order enjoining or restraining the transactions contemplated by this Agreement; and (e) the sale of the Securities shall not be
prohibited by any applicable law, regulation or governmental order. 
  

	VI.	CONDITIONS TO OBLIGATIONS OF THE PURCHASERS 

 6.1 Each Purchaser’s obligation to
purchase the Securities at each Closing is subject to the fulfillment on or prior to such Closing of the following conditions, which conditions may be waived in writing at the option of each Purchaser to the extent permitted by law: 

  
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 (a) Representations and Warranties Correct; Survival. The representations and warranties
made by the Company in Article III hereof and Section 3 of the Security Agreement shall have been true and correct as of the date of this Agreement and the Initial Closing Date (with respect to the Initial Closing and the Second Closing), and,
with respect to each Subsequent Closing, shall be true and correct in all material respects on the Closing Date of each Subsequent Closing with the same force and effect as if they had been made on and as of said date (except for such
representations and warranties that are qualified by their terms by a reference to materiality, which representations and warranties as so qualified shall be true and correct in all respects and for any representation or warranty that speaks as of a
specific date, which shall have been true and correct in all material respects as of such date). The representations and warranties made by the Company in Article III hereof and Section 3 of the Security Agreement shall survive until the Draw
Termination Date. 
 (b) Covenants. All covenants, agreements and conditions contained in this Agreement to be performed by the
Company on or prior to the Closing shall have been performed or complied with in all material respects. 
 (c) No Legal Order
Pending. There shall not then be in effect any legal or other order enjoining or restraining the transactions contemplated by this Agreement. 

(d) No Law Prohibiting or Restricting Such Sale. There shall not be in effect any law, rule or regulation prohibiting or restricting
such sale or requiring any consent or approval of any person which shall not have been obtained to issue the Securities (except as otherwise provided in this Agreement). 

(e) No Event of Acceleration. No Event of Acceleration (as defined in the Notes) shall have occurred and be continuing on the
applicable Closing Date. 
 (f) Legal opinion. Counsel to the Company shall have delivered, as of the applicable Closing Date, an
opinion in the form attached hereto as Exhibit D, addressed to the Placement Agent and each of the Purchasers; provided that no such opinion shall be delivered in connection with the Second Closing. 

(g) Secretary’s Certificate. A certificate of the Secretary of the Company (the “Secretary’s Certificate”),
dated as of the applicable Closing Date and in substantially the form attached hereto as Exhibit E, shall have been delivered to the Placement Agent and each of the Purchasers. 

(h) Good Standing. A certificate evidencing the formation and good standing of the Company issued by the Secretary of State of the
State of Delaware as of a date within five days of the applicable Closing Date shall have been delivered to the Placement Agent and each of the Purchasers; provided that no such certificates shall be delivered in connection with the Second
Closing. 
 (i) Foreign Qualification. A certificate evidencing the Company’s qualification as a foreign corporation and good
standing issued by the Secretary of State of the State of California as of a date within five days of the applicable Closing Date shall have been delivered to the Placement Agent and each of the Purchasers; provided that no such evidence
shall be delivered in connection with the Second Closing. 

  
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 (j) Compliance Certificate. The Company shall have delivered to the Placement Agent and
each Purchaser a certificate, dated as of the applicable Closing Date and signed by its Chief Executive Officer or its Chief Financial Officer, certifying to the fulfillment of the conditions specified in Sections 6.1(a) and (b) in the form
attached hereto as Exhibit F. 
  

	VII.	REGISTRATION RIGHTS 

 7.1 As used in this Agreement, the following terms shall have the
following meanings: 
 (a) “Affiliate” shall mean, with respect to any Person (as defined below), any other Person
controlling, controlled by or under direct or indirect common control with such Person (for the purposes of this definition “control,” when used with respect to any specified Person, shall mean the power to direct the management and
policies of such person, directly or indirectly, whether through ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” shall have meanings correlative to the foregoing). 

(b) “Business Day” shall mean a day Monday through Friday on which banks are generally open for business in New York, New
York. 
 (c) “Holders” shall mean the Purchasers and any person holding Registrable Securities or any Person to whom the
rights under Article VII have been transferred in accordance with Section 7.9 hereof. 
 (d) “Person” shall mean any
person, individual, corporation, limited liability company, partnership, trust or other nongovernmental entity or any governmental agency, court, authority or other body (whether foreign, federal, state, local or otherwise). 

(e) “Prospectus” means the prospectus included in a Registration Statement (as defined below) (including, without limitation,
a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus
supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by such Registration Statement, and all other amendments and supplements to the Prospectus, including post-effective amendments, and all
material incorporated by reference or deemed to be incorporated by reference in such Prospectus. 
 (f) The terms
“register,” “registered” and “registration” refer to the registration effected by preparing and filing a registration statement in compliance with the Securities Act, and the declaration or ordering
of the effectiveness of such registration statement. 
 (g) “Registrable Securities” shall mean the Common Stock issuable
upon exercise of the Warrants issued in a Closing; provided, however, that securities shall only be treated as Registrable Securities if and only for so long as (A) they have not been disposed of pursuant to a registration statement declared
effective by the Commission; (B) they have not been sold in a transaction exempt from the registration and prospectus delivery requirements of the Securities Act so that all transfer restrictions and restrictive legends with respect thereto are
removed upon the consummation of such sale; (C) they are held by a Holder or a permitted 

  
 25 

 
transferee pursuant to Section 7.9; or (D) the Securities issued at the same Closing and held by non-Affiliates of the Company have not become freely transferable without volume
restrictions by any non-Affiliates of the Company under Rule 144 (or any successor thereto) under the Securities Act. 
 (h)
“Registration Expenses” shall mean all expenses incurred by the Company in complying with Section 7.2 hereof, including, without limitation, all registration, qualification and filing fees, printing expenses, escrow fees, fees
and expenses of counsel for the Company, blue sky fees and expenses and the expense of any special audits incident to or required by any such registration, and the reasonable fees and expenses of one legal counsel for all Holders in connection with
each Registration Statement, not to exceed $35,000 in the aggregate for all Registration Statements. 
 (i) “Selling
Expenses” shall mean all underwriting discounts and selling commissions applicable to the sale of Registrable Securities and all fees and expenses of legal counsel and other advisors for any Holder, except for the fees and expenses of the
legal counsel of the Holders as is set forth in the definition of “Registration Expenses” above. 
 7.2 Subject to the terms
herein, the Company will, not later than 90 days following each Closing Date (provided that with respect to the Initial Closing and the Second Closing, such date will be not later than 90 days following the Initial Closing Date) (the “Filing
Date”), (a) subject to receipt of necessary information from, and reasonable cooperation by, the Holders, file a registration statement with the SEC (a “Registration Statement”) on the appropriate form to allow the
resale of the Registrable Securities corresponding to the Warrants issued in the Closing occurring on such Closing Date (which for the avoidance of doubt, shall include the Registrable Securities corresponding to the Warrants issued in the Initial
Closing and the Second Closing with respect to such Closings); (b) use its reasonable best efforts, subject to receipt of necessary information from, and reasonable cooperation by, the Holders, to have such Registration Statement declared
effective by the SEC prior to the date which is 120 days after the applicable Closing Date (or 180 days after the applicable Closing Date in the event the Commission issues comments on the Registration Statement); and (c) subject to
Section 7.7 hereof, cause such Registration Statement to remain effective (as applicable, the “Registration Period”) until the earlier of (i) the first anniversary of such applicable Closing Date (which for the avoidance
of doubt shall be the Initial Closing Date with respect to the Initial Closing and Second Closing), (ii) such date as all such Registrable Securities have been sold (A) pursuant to the Registration Statement; (B) to or through a
broker, dealer or underwriter in a public distribution or a public securities transaction; and/or (C) in a transaction exempt from the registration and prospectus delivery requirements of the Securities Act under Section 4(a)(l) thereof so
that all transfer restrictions and restrictive legends with respect thereto, if any, are removed upon the consummation of such sale and (iii) at such time that such Registrable Securities held by non-Affiliates of the Company have become freely
transferable without restriction under Rule 144 (or any successor thereto) under the Securities Act. Thereafter, the Company shall be entitled to withdraw such Registration Statement and the Holders shall have no further right to offer or sell any
of the Registrable Securities pursuant to such Registration Statement. To the extent permissible, such Registration Statement also shall cover, to the extent allowable under the Securities Act and the rules promulgated thereunder (including Rule 416
under the Securities Act), such indeterminate number of additional shares of Common Stock resulting from stock splits, stock dividends or similar transactions with respect to such Registrable Securities. 

  
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 7.3 All Registration Expenses incurred in connection with any registration, qualification,
exemption or compliance pursuant to Section 7.2 shall be borne by the Company. All Selling Expenses relating to the sale of securities registered by or on behalf of Holders shall be borne by such Holders. 

7.4 In the case of the registration, qualification, exemption or compliance effected by the Company pursuant to this Agreement, the Company
shall, upon reasonable request, inform each Holder as to the status of such registration, qualification, exemption and compliance. At its expense the Company shall: 

(a) Not less than four trading days prior to the filing of a Registration Statement or any related prospectus or any amendment or supplement
thereto, which filing makes changes to (i) the “Selling Stockholders” or “Plan of Distribution” sections of a Registration Statement or any related prospectus, or (ii) the disclosure of the transactions contemplated by
this Agreement or the Holders (other than changes to risk factors included in the Company’s quarterly reports on Form 10-Q and annual reports on Form 10-K), the Company shall furnish to the Holders
copies of the “Selling Stockholders” section of such document, the “Plan of Distribution” and any disclosure contained in such document that addresses the transactions contemplated by this Agreement or the Holders, as proposed to
be filed, which documents will be subject to the review of such Holders. If the Company is required to furnish to the Holders the information set forth in the prior sentence, then the Company shall not file a Registration Statement or any such
prospectus or any amendments or supplements thereto that does not contain the disclosure listing any Holder as a “Selling Stockholder” except to the extent that such Holder has failed to provide all required information to the Company at
least two trading days prior to such filing. 
 (b) subject to Section 7.7 hereof, use its reasonable best efforts to keep such
registration, and any qualification, exemption or compliance under state or federal securities laws which the Company determines to obtain, continuously effective until the termination of the Registration Period; and 

(c) advise the Holders as soon as practicable: 

(i) when a Registration Statement or any amendment thereto has been filed with the Commission and when a Registration Statement or any
post-effective amendment thereto has become effective, when the Commission notifies the Company whether there will be a “review” of such Registration Statement and whenever the Commission comments in writing on such Registration Statement;
provided, however, that the Company is not required to advise or notify the Holders in connection with the filing of an amendment to a Registration Statement for the purpose of complying with the undertakings set forth in Item 512(a)(1)
of Regulation S-K; 

  
 27 

 (ii) of any request by the Commission or any other federal or state governmental entity for
amendments or supplements to the Registration Statement or the Prospectus or for additional information relating to the offer and sale of Registrable Securities; 

(iii) of the issuance by the Commission of any stop order suspending the effectiveness of a Registration Statement or the initiation of any
proceedings for such purpose; 
 (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification
of the Registrable Securities included therein for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; and 

(v) of the happening of any event that requires the making of any changes in a Registration Statement or the prospectus so that, as of such
date, the statements therein are not misleading and do not omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case of the prospectus, in the light of the circumstances under which they
were made) not misleading; 
 (d) make every reasonable effort to avoid the issuance of, or if issued, obtain the withdrawal of any order
suspending the effectiveness of any Registration Statement at the earliest possible time or any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, as soon as
reasonably practicable; 
 (e) at each Holder’s written request, furnish to such Holder, without charge, at least one copy of such
Registration Statement and any post-effective amendment thereto, including financial statements and schedules, and, if the Holder so requests in writing, all exhibits (including those incorporated by reference) in the form filed with the Commission;

 (f) during each applicable Registration Period, deliver to each Holder, without charge, as many copies of the Prospectus and any
amendment or supplement thereto as such Holder may reasonably request in writing in order to facilitate the public sale or other disposition of all or any of the applicable Registrable Securities by the Holder; and the Company consents to the use,
consistent with the provisions hereof and applicable laws, rules or regulations, of the Prospectus or any amendment or supplement thereto by each of the selling Holders of Registrable Securities in connection with the offering and sale of the
Registrable Securities covered by the Prospectus or any amendment or supplement thereto. In addition, upon the reasonable request of the Holder and subject in all cases to confidentiality protections reasonably acceptable to the Company, the Company
will meet with a Holder or a representative thereof at the Company’s headquarters to discuss all information relevant for disclosure in a Registration Statement covering Registrable Securities, and will otherwise cooperate with any Holder
conducting an investigation for the purpose of reducing or eliminating such Holder’s exposure to liability under the Securities Act, including the reasonable production of information at the Company’s headquarters; 

(g) prior to any public offering of Registrable Securities pursuant to any Registration Statement, register or qualify or obtain an exemption
for offer and sale under the securities or blue sky laws of such jurisdictions as any such Holders reasonably request in 

  
 28 

 
writing and do any and all other reasonable acts or things reasonably necessary or advisable to enable the offer and sale in such jurisdictions of the Registrable Securities covered by such
Registration Statement, provided, however, that the Company shall not for any such purpose be required to (i) qualify to transact business as a foreign corporation in any jurisdiction where it is not so qualified; (ii) consent to general
service of process in any such jurisdiction; (iii) subject itself to taxation in any such jurisdiction; (iv) provide any undertakings that cause material expense or burden to the Company; or (v) make any change to its organizational
documents which the board of directors of the Company determines to be contrary to the best interests of the Company and its stockholders; 

(h) cooperate with the Holders to facilitate the timely preparation and (i) delivery of certificates for the Registrable Securities, free
of restrictive legends, or (ii) an electronic delivery of the Registrable Securities at the Depository Trust Company or a similar organization representing the Registrable Securities to be sold pursuant to any Registration Statement in such
denominations and registered in such names as Holders, the managing underwriter or agent may request at least two (2) business days prior to sales of Registrable Securities pursuant to such Registration Statement, subject to the submission by
Holder to the Company’s transfer agent of the original certificate(s) representing the Registrable Securities to be sold and a separate Holder’s Certificate of Subsequent Sale, in a form reasonably satisfactory to the Company, duly
executed by the Holder and all other documentation reasonably required by the Company and the Company’s transfer agent (all of which must be provided to the Company a reasonable period of time prior to the date such Holder intends to sell such
Registrable Securities); 
 (i) subject to Section 7.7 hereof, upon the occurrence of any event contemplated by Section 7.4(b)(v)
above, the Company shall promptly prepare a post-effective amendment to the Registration Statement or a supplement to the related prospectus, or file any other required document so that, as thereafter promptly delivered to purchasers of the
Registrable Securities included therein, the prospectus will not include any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading; and 
 (j) use its best efforts to comply with all applicable rules and regulations of the Commission, and use its
reasonable best efforts to make generally available to the Holders (which may be satisfied upon filing via EDGAR) not later than 45 days (or 90 days if the fiscal quarter is the fourth fiscal quarter) after the end of its fiscal quarter in which the
first anniversary date of the effective date of any Registration Statement occurs, an earnings statement satisfying the provisions of Section 11(a) of the Securities Act. 

Notwithstanding the foregoing, it shall be a condition precedent to the obligations of the Company to take any action pursuant to paragraphs
(a) through (j) of this Section 7.4, that the Holder shall furnish to the Company such information regarding itself, the Registrable Securities to be sold by the Holder, and the intended method of disposition of such Registrable
Securities as shall be required to effect the registration of the Registrable Securities, all of which information shall be furnished to the Company in writing specifically for use in the Registration Statement. 

  
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 7.5 The Holders shall have no right to take any action to restrain, enjoin or otherwise delay any
registration pursuant to Section 7.2 hereof as a result of any controversy that may arise with respect to the interpretation or implementation of this Agreement. 

7.6 (a) To the extent permitted by law, the Company shall indemnify each Holder and Affiliate of each Holder, and their respective officers,
directors, agents, investment advisors, partners, members and employees, with respect to which any registration, qualification or compliance has been effected pursuant to this Agreement, against all claims, losses, damages and liabilities (or action
in respect thereof), including any of the foregoing incurred in settlement of any litigation, commenced or threatened (subject to Section 7.6(c) below), arising out of or based on any untrue statement (or alleged untrue statement) of a material
fact contained in any Registration Statement or any amendment or supplement thereof, or any Prospectus or any amendment or supplement thereof (including any preliminary prospectus), or based on any omission (or alleged omission) to state therein a
material fact required to be stated therein or necessary to make the statements therein not misleading, in light of the circumstances in which they were made, and will reimburse each Holder and Affiliate of each Holder, and their respective
officers, directors, agents, investment advisors, partners, members and employees, for reasonable legal and other expenses reasonably incurred by such person in connection with investigating or defending any such claim, loss, damage, liability or
action as incurred; provided that the Company will not be liable in any such case to the extent that any such claim, loss, damage, liability or action arises out of, relates to or is based upon (i) an untrue statement or omission made in
reliance upon and in conformity with written information furnished to the Company by or on behalf of such Holder or person controlling such Holder and stated to be specifically for use in preparation of such Registration Statement, Prospectus or any
supplement or amendment thereto, or (ii) the failure of the Holder to comply with the covenants and agreements contained in this Agreement respecting sales of Registrable Securities. 

(b) Each Holder will severally and not jointly, if Registrable Securities held by such Holder are included in the securities as to which such
registration, qualification or compliance is being effected, indemnify the Company, its Subsidiaries, and each of their respective directors, officers and agents and each Affiliate of the foregoing, against all claims, losses, damages, liabilities
and expenses (or actions in respect thereof), including any of the foregoing incurred in settlement of any litigation, commenced or threatened (subject to Section 7.6(c) below), arising out of or based on any untrue statement of a material fact
contained in any Registration Statement or any amendment or supplement thereof, or any Prospectus or any amendment or supplement thereof (including any preliminary prospectus), or based on any omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, in light of the circumstances in which they were made, in each case to the extent, but only to the extent, that such untrue statement or omission thereof is made in reliance
upon and in conformity with written information furnished to the Company by or on behalf of the Holder specifically for use in preparation of such Registration Statement, Prospectus or any amendment or supplement thereto or is due to the failure of
the Holder to comply with the covenants and agreements contained in the Agreement with respect to the sale of Registrable Securities, and the Holder will reimburse the Company, its directors and officers, and each person controlling the Company for
reasonable legal and any other expenses reasonably incurred in connection with investigating, defending, settling, compromising or paying any such claim, loss, damage, liability, expense or action as incurred. Notwithstanding the foregoing, in no
event shall a Holder be liable for any such claims, losses, damages or liabilities in an amount greater than the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable Securities giving rise to such Holder’s
indemnification obligation, except in the event of fraud or intentional misrepresentation. 
  

  
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 (c) Each party entitled to indemnification under this Section 7.6 (the “Indemnified
Party”) shall give notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, provided
that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Agreement, unless such failure is materially prejudicial to the Indemnifying Party in defending such
claim or litigation. Subject to provisions hereinafter stated, in case any such action is brought against any Indemnified Party and such Indemnified Party seeks or intends to seek indemnity from an Indemnifying Party, the Indemnifying Party will be
entitled to participate in, and, to the extent that it may wish, jointly with all other indemnifying parties similarly notified, to assume the defense thereof with counsel reasonably satisfactory to such Indemnified Party; provided, however, if the
defendants in any such action include both the Indemnified Party and the Indemnifying Party, and the Indemnifying Party and the Indemnified Party, based upon the advice of such Indemnified Party’s counsel, shall have reasonably concluded that
there may be a conflict of interest between the positions of the Indemnifying Party and the Indemnified Party in conducting the defense of any such action or that there may be legal defenses available to it and/or other indemnified parties which are
different from or additional to those available to the Indemnifying Party, the Indemnified Party or parties shall have the right to select separate counsel to assume such legal defenses and to otherwise participate in the defense of such action on
behalf of such Indemnified Party or parties. Upon receipt of notice from the Indemnifying Party to such Indemnified Party of its election so to assume the defense of such action and approval by the Indemnified Party of counsel, the Indemnifying
Party will not be liable to such Indemnified Party under this Section 7.6 for any legal or other expenses subsequently incurred by such Indemnified Party in connection with the defense thereof unless (i) the Indemnified Party shall have
employed such counsel in connection with the assumption of legal defenses in accordance with the proviso to the preceding sentence (it being understood, however, that the Indemnifying Party shall not be liable for the expenses of more than one
separate counsel, which counsel will be disclosed by the Indemnified Parties to the Indemnifying Party), or (ii) the Indemnifying Party shall not have employed counsel reasonably satisfactory to the Indemnified Party to represent the
Indemnified Party within a reasonable time after notice of commencement of action, in each of which cases the reasonable fees and expenses of counsel shall be at the expense of the Indemnifying Party. In no event shall any Indemnifying Party be
liable in respect of any amounts paid in settlement of any action unless the Indemnifying Party shall have approved the terms of such settlement; provided that such approval shall not be unreasonably withheld. 

(d) If the indemnification provided for in this Section 7.6 is held by a court of competent jurisdiction to be unavailable to an
Indemnified Party with respect to any loss, liability, claim, damage or expense referred to therein (other than due to the exemptions to indemnity set forth in Section 7.6(a) above), then the Indemnifying Party, in lieu of indemnifying such
Indemnified Party thereunder, shall contribute to the amount paid or payable by such Indemnified Party as a result of such loss, liability, claim, damage or expense in such proportion 

  
 31 

 
as is appropriate to reflect the relative fault of the Indemnifying Party on the one hand and of the Indemnified Party on the other in connection with the statements or omissions or inaccuracies
in the representations and warranties in this Agreement which resulted in such loss, liability, claim, damage or expense as well as any other relevant equitable considerations. The relative fault of the Indemnifying Party and of the Indemnified
Party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact or the inaccurate representation and/or warranty relates to information
supplied by the Indemnifying Party or by the Indemnified Party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. Notwithstanding the foregoing, in no event shall
a Holder be liable for any such claims, losses, damages or liabilities pursuant to this paragraph 7.6(d) in an amount greater than the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable Securities giving rise
to such Holder’s indemnification obligation, except in the event of fraud or intentional misrepresentation. 
 7.7(a) Notwithstanding
any other provision of this Agreement, each Holder agrees that, upon receipt of any notice from the Company of the happening of any event requiring the preparation of a supplement or amendment to a prospectus relating to Registrable Securities or
the filing of an appropriate report with the SEC pursuant to the Exchange Act, so that, as thereafter delivered to the Holders, such prospectus shall not contain an untrue statement of a material fact or omit to state any material fact required to
be stated therein or necessary to make the statements therein not misleading, each Holder will forthwith discontinue disposition of Registrable Securities pursuant to the Registration Statement contemplated by Section 7.2 until its receipt of
copies of the supplemented or amended prospectus from the Company or confirmation of the filing of such report with the SEC by the Company, any such prospectus to be forwarded promptly to the Purchaser by the Company, and, if so directed by the
Company, each Holder shall deliver to the Company all copies, other than permanent file copies then in such Holder’s possession, of the prospectus covering such Registrable Securities current at the time of receipt of such notice. 

(b) Notwithstanding any other provision of this Agreement, each Holder shall suspend, upon request of the Company, any disposition of
Registrable Securities pursuant to the Registration Statement and prospectus contemplated by Section 7.2 during any periods not to exceed 90 days in the aggregate within any one 12 month period when the Company reasonably determines in good
faith that offers and sales pursuant thereto should not be made by reason of the presence of material undisclosed circumstances or developments with respect to which the disclosure that would be required in such a prospectus is premature, would have
an adverse effect on the Company or is otherwise inadvisable. 
 (c) As a condition to the inclusion of its Registrable Securities, each
Holder shall furnish to the Company such information regarding such Holder and the distribution proposed by such Holder as the Company may reasonably request in writing or as shall be required in connection with any registration, qualification or
compliance referred to in this Article VII. 

  
 32 

 (d) Each Holder hereby covenants with the Company not to make any sale of any Registrable
Securities without effectively causing the prospectus delivery requirements under the Securities Act to be satisfied. 
 (e) Each Holder
acknowledges and agrees that Registrable Securities sold pursuant to any Registration Statement described in this Section are not transferable on the books of the Company unless the stock certificate submitted to the transfer agent evidencing such
Registrable Securities is accompanied by a certificate reasonably satisfactory to the Company to the effect that (i) such Registrable Securities have been sold in accordance with such Registration Statement and (ii) the requirement of
delivering a current prospectus has been satisfied. 
 (f) Each Holder agrees not to take any action with respect to any distribution deemed
to be made pursuant to such Registration Statement which would constitute a violation of Regulation M under the Exchange Act or any other applicable rule, regulation or law. 

(g) At the end of the period during which the Company is obligated to keep the Registration Statement current and effective as described
above, the Holders of Registrable Securities included in the Registration Statement shall discontinue sales of shares pursuant to such Registration Statement upon receipt of notice from the Company of its intention to remove from registration the
shares covered by such Registration Statement which remain unsold, and such Holders shall notify the Company of the number of shares registered which remain unsold immediately upon receipt of such notice from the Company. 

7.8 With a view to making available to the Holders the benefits of certain rules and regulations of the Commission which at any time permit
the sale of the Registrable Securities to the public without registration, the Company shall use its reasonable best efforts to: 
 (a) make
and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act, at all times; 
 (b)
file with the Commission in a timely manner all reports and other documents required of the Company under the Exchange Act; and 
 (c) so
long as a Holder owns any unregistered Registrable Securities, furnish to such Holder, upon any reasonable written request, a written statement by the Company as to its compliance with Rule 144 under the Securities Act, and of the Exchange Act, a
copy of the most recent annual or quarterly report of the Company, and such other reports and documents of the Company as such Holder may reasonably request in availing itself of any rule or regulation of the Commission allowing a Holder to sell any
such securities without registration. 
 7.9 Subject to Section 8.3, the rights to cause the Company to register Registrable Securities
granted to the Holders by the Company under Section 7.2 may be assigned in full by a Holder in connection with a transfer by such Holder of its Registrable Securities, but only if: (i) such transfer may otherwise be effected in accordance
with applicable securities laws; (ii) such Holder gives prior written notice of the proposed transfer to the Company including the name and address of such transferee and a copy of the transfer documents and agreements;

  
 33 

 
(iii) such transferee agrees in writing with the Company to be bound by and to comply with the terms and provisions of this Agreement; (iv) the transferee is an “accredited
investor” as that term is defined in Rule 501 of Regulation D; and (v) such transfer is otherwise in compliance with this Agreement and the applicable Warrants. Except as specifically permitted by this Section 7.9, the rights of a
Holder with respect to Registrable Securities as set forth herein shall not be transferable to any other person, the Company may impose stop transfer orders with respect to any such transfer or attempted transfer, and any such transfer or attempted
transfer shall be null and void. 
 7.10 The Company shall use reasonable best efforts to cause all Registrable Securities covered by a
Registration Statement to be listed on each securities exchange, interdealer quotation system or other market on which similar securities issued by the Company are then listed. 

7.11 With the written consent of the Company and the Holders holding at least a majority of the Registrable Securities that are then
outstanding, any provision of this Article VII may be waived (either generally or in a particular instance, either retroactively or prospectively and either for a specified period of time or indefinitely) or amended and shall be effective against
all Holders. Upon the effectuation of each such waiver or amendment, the Company shall promptly give written notice thereof to the Holders, if any, who have not previously received notice thereof or consented thereto in writing. 

7.12 The Company acknowledges and agrees that irreparable damage would occur in the event that any of the provisions of this Article VII were
not performed in accordance with its specific terms or were otherwise breached and that such damage would not be compensable in money damages and that it would be extremely difficult or impracticable to measure the resultant damages. Accordingly,
except as otherwise specifically set forth herein, any Purchaser shall be entitled to an injunction or injunctions with respect to the provisions of this Article VII and to enforce specifically the terms and provisions hereof, in addition to any
other remedy to which it may be entitled at law or in equity, and the Company expressly waives any defense that a remedy in damages would be adequate and expressly waives any requirement in an action for specific performance for the posting of a
bond by the Purchaser bringing such action. 
 7.13 If at any time during the Registration Period for a particular Registration Statement
there is not an effective Registration Statement covering all of the Registrable Securities and the Company shall determine to prepare and file with the Commission a registration statement relating to an offering for its own account or the account
of others under the Securities Act of any of its equity securities, other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) 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, then the Company shall send to each Holder written notice of such determination and, if within ten
(10) business days after receipt of such notice, any such Holder shall so request in writing, the Company shall include in such registration statement all or any part of such Registrable Securities such holder requests to be registered, subject
to customary underwriter cutbacks applicable to all holders of registration rights. 

  
 34 

	VIII.  	MISCELLANEOUS 

 8.1 Any notice or other communication given hereunder shall be deemed
sufficient if in writing and sent by facsimile, with confirmation, by registered or certified mail, return receipt requested, or delivered by hand against written receipt therefore or sent by nationally recognized overnight express courier postage
prepaid, if to the Company: addressed to InSite Vision Incorporated, 965 Atlantic Avenue, Alameda, California 94501, Attn: Chief Financial Officer, Fax: (510) 865-5700 and if to the Purchaser, at the Purchaser’s address or facsimile
number indicated on the signature page of this Agreement. Notices shall be deemed to have been given or delivered in the case of facsimile, upon receipt of confirmation of transmission by the sender, registered or certified mail, three days after so
mailed, in the case of hand delivery, when so delivered against written receipt therefore, and in the case of overnight express courier, the day after mailing, except notices of change of address, which shall be deemed to have been given or
delivered when received. 
 8.2 Any modification, amendment or waiver of any term of this Agreement must be made in writing and signed by
the Purchasers that are holders of a majority of the aggregate outstanding principal amount of the Notes then issued pursuant to this Agreement, or, if no Notes have then been issued, then by Purchasers representing a majority of the aggregate
Commitment Amounts (the “Majority Holders”), the Placement Agent, and the Company; provided that the Purchasers that do not consent to such modification, amendment or waiver will be treated the same as the Purchasers that do consent
to such modification, amendment or waiver. Any such modification, amendment or waiver shall be limited to its express terms. It is agreed that a waiver by either party of a breach of any provision of this Agreement shall not operate, or be
construed, as a waiver of any subsequent breach by that same party. 
 8.3 A Purchaser may not assign or transfer any of its rights or
obligations under any of the Transaction Documents without the prior written consent of the Company; provided that, notwithstanding the foregoing, a Purchaser may, without the prior written consent of the Company (a) assign its rights
and obligations under its issued and outstanding Warrants, Warrant Shares issuable thereunder or registration rights with respect thereto (as provided herein) to any third party, and (b) assign its rights and obligations under the Notes
(i) in the case of a Purchaser that is a natural person, to a trust for bona fide estate planning purposes, and (ii) in the case of a Purchaser that is a venture capital or private equity fund, to other funds under common investment
management with such fund. The Company may not assign or transfer any of its rights or obligations under any of the Transaction Documents (other than the Warrants) without the prior written consent of the Majority Holders. Subject to the foregoing,
this Agreement shall be binding upon and inure to the benefit of the parties hereto and to their respective heirs, legal representatives, successors and permitted assigns. This Agreement sets forth the entire agreement and understanding between the
parties as to the subject matter hereof and merges and supersedes all prior discussions, agreements and understandings of any and every nature among them. 

8.4 Upon the execution and delivery of this Agreement by the Purchaser, this Agreement shall become a binding obligation of the Purchaser with
respect to the purchase of the Securities as herein provided; subject, however, to the right hereby reserved to the Company to revoke a Purchaser’s subscription in accordance with Section 5.4. 

  
 35 

 8.5 NOTWITHSTANDING THE PLACE WHERE THIS AGREEMENT MAY BE EXECUTED BY ANY OF THE PARTIES HERETO,
THE PARTIES EXPRESSLY AGREE THAT ALL THE TERMS AND PROVISIONS HEREOF SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. IN THE EVENT THAT A JUDICIAL PROCEEDING IS
NECESSARY, THE EXCLUSIVE FORUMS FOR RESOLVING DISPUTES ARISING OUT OF OR RELATING TO THIS AGREEMENT ARE EITHER THE SUPREME COURT OF THE STATE OF NEW YORK IN AND FOR THE COUNTY OF NEW YORK OR THE FEDERAL COURTS FOR SUCH STATE AND COUNTY, AND ALL
RELATED APPELLATE COURTS, THE PARTIES HEREBY IRREVOCABLY CONSENT TO THE JURISDICTION OF SUCH COURTS AND AGREE TO SAID VENUE. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL
BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 8.6 The holding of
any provision of this Agreement to be invalid or unenforceable by a court of competent jurisdiction shall not affect any other provision of this Agreement, which shall remain in full force and effect. If any provision of this Agreement shall be
declared by a court of competent jurisdiction to be invalid, illegal or incapable of being enforced in whole or in part, such provision shall be interpreted so as to remain enforceable to the maximum extent permissible consistent with applicable law
and the remaining conditions and provisions or portions thereof shall nevertheless remain in full force and effect and enforceable to the extent they are valid, legal and enforceable, and no provisions shall be deemed dependent upon any other
covenant or provision unless so expressed herein. 
 8.7 The parties agree to execute and deliver all such further documents, agreements and
instruments and take such other and further action as may be necessary or appropriate to carry out the purposes and intent of this Agreement. 

8.8 This Agreement may be executed in two or more counterparts each of which shall be deemed an original, but all of which shall together
constitute one and the same instrument. 
 8.9 (a) The Purchasers severally agree not to issue any public statement with respect to the
Purchasers’ investment or proposed investment in the Company or the terms of any agreement or covenant between them and the Company without the Company’s prior written consent, except such disclosures as may be required under applicable
law or under any applicable order, rule or regulation. 
 (b) The Company agrees not to disclose the names, addresses or any other
information about the Purchasers, except as required by law and to satisfy its obligations under Article VII. 
 8.10 Each Purchaser
represents and warrants that it has not engaged, consented to nor authorized any broker, finder or intermediary to act on its behalf, directly or indirectly, as a broker, finder or intermediary in connection with the transactions contemplated by
this Agreement, which, for the avoidance of doubt, does not include the Placement Agent. Each Purchaser hereby severally agrees to indemnify and hold harmless the Company from and against all fees, commissions or other payments owing to any such
person or firm acting on behalf of such Purchaser hereunder. 

  
 36 

 8.11 Nothing in this Agreement shall create or be deemed to create any rights in any person or
entity not a party to this Agreement, except for the holders of Registrable Securities. 
 [The remainder of this page is intentionally
left blank.] 

  
 37 

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

			
	COMPANY:
	
	InSite Vision Incorporated
		
	By:	 	/s/ Louis Drapeau
	Name:	 	Louis Drapeau
	Title:	 	Vice President and Chief Financial Officer

  

			
	PLACEMENT AGENT:
	
	Riverbank Capital Securities, Inc.
		
	By:	 	/s/ David Taven
	Name:	 	David Taven
	Title:	 	Chief Compliance Officer

  
 38 

 Counterpart Signature Page to Securities Purchase Agreement 

 

			
	 PURCHASER (If an individual):
	 	PURCHASER (If an entity):
		
	  
	 	  

	 Signature of Investor
	 	Print name of Investor if an entity
		
	  
	 	 By:   

	 Print Name of Investor
	 	
		 	 Print Name: 

		
	  
	 	 Print Title:   

	Signature of Joint Owner (if applicable)	 	
		
	  
	 	
	Print Name of Joint Owner	 	

 Commitment Amount:
                                         
                                

Address
                                         
                                

Address                        
                                         
        
 City, State and Zip Code
                                         
                                

Telephone
                                         
                                

Facsimile
                                         
                                

Tax ID # or Social Security #
                                         
                                

Name in which securities should be issued:
                                         
                                

Dated:
                                         
    

 CERTIFICATE OF SIGNATORY 

(To be completed if Notes and Warrants are 

being subscribed for by an entity) 

I,
                                         
                       , am the
                                         
            of
                                         
                            (the “Entity”). 

I certify that I am empowered and duly authorized by the Entity to execute and carry out the terms of the Securities Purchase Agreement and to
purchase and hold the Notes and Warrants offered hereunder, and certify further that the Securities Purchase Agreement, the Confidential Purchaser Questionnaire, and the other Transaction Documents have been duly and validly executed on behalf of
the Entity and constitute legal and binding obligations of the Entity. 
 IN WITNESS WHEREOF, I have set my hand this
                     day of
                                , 2014. 

 
  

Signature) 

 SCHEDULE A 

CONFIDENTIAL PURCHASER QUESTIONNAIRE 

(attached) 

 Exhibit A 

Form of Note 
 (attached) 

 Exhibit B 

Form of Warrant 
 (attached) 

 Exhibit C 

Form of Tranche Request 
 Pursuant to the
Section 1.3 of that certain Securities Purchase Agreement by and between InSite Vision Incorporated (the “Company”) and certain signatories therein, dated as of
[            ] (the “Purchase Agreement”), the Company hereby schedules a Subsequent Closing for a Tranche as follows. Capitalized terms used but not otherwise defined
herein are as set forth in the Purchase Agreement. 
  

					
	 Aggregate Purchase Price for this Tranche:
	  	 	  	
			
	 Closing Date
	  	 	  	

 Instructions for Payment by Wire Transfer: 

[Instructions for Payment by Check:] 
 Payment must be made at
least one Business Day prior to the Closing Date. 

 Exhibit D 

Form of Legal Opinion 

(attached) 

 Exhibit E 

Form of Secretary’s Certificate 

(attached) 

 Exhibit F 

Form of Compliance Certificate 

(attached)EX-10.2

 Exhibit 10.2 

SECURITY AGREEMENT 
 This
Security Agreement dated as of October 9, 2014 (this “Agreement”), is made by InSite Vision Incorporated, a Delaware corporation (the “Company”), in favor of the Holders (as defined below) and U.S. Bank
National Association, as collateral agent (in such capacity, the “Collateral Agent”) for itself and the Holders (together with the Collateral Agent, the “Secured Parties”). 

PRELIMINARY STATEMENTS: 
 A.
Pursuant to the Securities Purchase Agreement dated as of October 9, 2014 (as amended, restated, supplemented or otherwise modified from time to time, the “Purchase Agreement”), among the Company, Riverbank Capital Securities,
Inc. and the purchasers party thereto (collectively, the “Holders”), the Company has issued or will issue its 12% Senior Secured Notes (as amended, restated, supplemented or otherwise modified from time to time, collectively, the
“Notes”). 
 B. To secure its obligations under the Notes, the Company desires to grant to the Collateral Agent, for the
benefit of the Secured Parties, a security interest in and lien on all of its assets pursuant to the terms of this Agreement. 
 AGREEMENT:

 In consideration of the foregoing and the mutual agreements contained in this Agreement, the receipt and sufficiency of which are
acknowledged, the Company and the Collateral Agent hereby agree as follows: 
 SECTION 1. INTERPRETATION. 

(a) Certain Defined Terms. As used in this Agreement, the following terms have the following meanings: 

“Account Control Agreement” means any account control agreement or other agreement with any securities intermediary or other
Person granting control with respect to any Investment Property or Deposit Account. 
 “Accounts” means any and all accounts
of the Company, whether now existing or hereafter acquired or arising, and in any event includes all accounts receivable, contract rights and rights to payment of monetary obligations owed to the Company arising out of or in connection with the sale
or lease of merchandise, goods or commodities or the rendering of services or arising from any other transaction, however evidenced, and whether or not earned by performance, all guaranties, indemnities and security with respect to the foregoing,
and all letters of credit relating thereto, in each case whether now existing or hereafter acquired or arising. 
 “Books”
means all books, records and other written, electronic or other documentation in whatever form maintained now or hereafter by or for the Company in connection with the 

 
ownership of its assets or the conduct of its business or evidencing or containing information relating to the Collateral, including (a) ledgers, (b) records indicating, summarizing, or
evidencing the Company’s assets (including Inventory and Rights to Payment), business operations or financial condition, (c) computer programs and software, (d) computer discs, tapes, files, manuals and spreadsheets, (e) computer
printouts and output of whatever kind, (f) any other computer prepared or electronically stored, collected or reported information and equipment of any kind and (g) any and all other rights now or hereafter arising out of any contract or
agreement between the Company and any service bureau, computer or data processing company or other Person charged with preparing or maintaining any of the Company’s books or records or with credit reporting, including with regard to the
Company’s Accounts. 
 “Chattel Paper” means all writings of whatever sort which evidence a monetary obligation and a
security interest in or lease of specific goods, whether now existing or hereafter arising. 
 “Collateral” has the meaning
set forth in Section 2. 
 “Collateral Agency Agreement” means the Collateral Agency Agreement dated as of the
date hereof, among the Collateral Agent, the Holders and the Company. 
 “Collateral Documents” means this Agreement, the
Collateral Agency Agreement, any Account Control Agreement, the Grant and any other agreement, instrument or other document executed or delivered in connection therewith. 

“Contracts” means all contracts (including any customer, vendor, supplier, service or maintenance contract), leases, licenses,
undertakings, purchase orders, permits, franchise agreements or other agreements (other than any right evidenced by Chattel Paper, Documents or Instruments), whether in written or electronic form, in or under which the Company now holds or hereafter
acquires any right, title or interest, including, without limitation, with respect to an Account, any agreement relating to the terms of payment or the terms of performance thereof. 

“Deposit Account” means any demand, time, savings, passbook or like account now or hereafter maintained by or for the benefit
of the Company with a bank, savings and loan association, credit union or like organization, and all funds and amounts therein, whether or not restricted or designated for a particular purpose. 

“Documents” means any and all documents of title, bills of lading, dock warrants, dock receipts, warehouse receipts and other
documents of the Company, whether or not negotiable, and includes all other documents which purport to be issued by a bailee or agent and purport to cover goods in any bailee’s or agent’s possession which are either identified or are
fungible portions of an identified mass, including such documents of title made available to the Company for the purpose of ultimate sale or exchange of goods or for the purpose of loading, unloading, storing, shipping, transshipping, manufacturing,
processing or otherwise dealing with goods in a manner preliminary to their sale or exchange, in each case whether now existing or hereafter acquired or arising. 

 “Equipment” means all now existing or hereafter acquired equipment of the
Company in all of its forms, wherever located, and in any event includes any and all machinery, furniture, equipment, furnishings and fixtures in which the Company now or hereafter acquires any right, and all other goods and tangible personal
property (other than Inventory), including tools, parts and supplies, automobiles, trucks, tractors and other vehicles, computer and other electronic data processing equipment and other office equipment, computer programs and related data processing
software, and all additions, substitutions, replacements, parts, accessories, and accessions to and for the foregoing, now owned or hereafter acquired, and including any of the foregoing which are or are to become fixtures on real property. 

“Event of Acceleration” has the meaning set forth in each Note. 

“Financing Statements” has the meaning set forth in Section 3. 

“General Intangibles” means all general intangibles of the Company, now existing or hereafter acquired or arising, and in any
event includes (a) all tax and other refunds, rebates or credits of every kind and nature to which the Company is now or hereafter may become entitled, (b) all good will, choses in action and causes of action, whether legal or equitable,
whether in contract or tort and however arising, (c) all Intellectual Property Collateral, (d) all interests in limited and general partnerships and limited liability companies, (e) all rights of stoppage in transit, replevin and
reclamation, (f) all licenses, permits, consents, indulgences and rights of whatever kind issued in favor of or otherwise recognized as belonging to the Company by any governmental authority and (g) all indemnity agreements, guaranties,
insurance policies and other contractual, equitable and legal rights of whatever kind or nature; in each case whether now existing or hereafter acquired or arising. 

“Grant” means a grant relating to Intellectual Property Collateral, substantially in the form of Exhibit A. 

“Instruments” means any and all negotiable instruments and every other writing which evidences a right to the payment of
money, wherever located and whether now existing or hereafter acquired, except (a) investment property, (b) letters of credit and (c) writings that evidence a right to payment arising out of the use of a credit or charge card or
information contained on or for use with the card. 
 “Intellectual Property Collateral” means the assets listed on Schedule
3.11(a) to the Purchase Agreement and, in addition, the following properties and assets owned or held by the Company or in which the Company otherwise has any interest, now existing or hereafter acquired or arising: 

 

	 	(a)	all patents and patent applications, domestic or foreign, all licenses relating to any of the foregoing and all income and royalties with respect to any licenses, all rights to sue for past, present or future
infringement thereof, all rights arising therefrom and pertaining thereto and all reissues, divisions, continuations, renewals, extensions and continuations-in-part thereof, and all regulatory filings related thereto; 

	 	(b)	all copyrights and applications for copyright, domestic or foreign, together with the underlying works of authorship (including titles), whether or not the underlying works of authorship have been published and whether
said copyrights are statutory or arise under the common law, and all other rights and works of authorship, all rights, claims and demands in any way relating to any such copyrights or works, including royalties and rights to sue for past, present or
future infringement, all rights of renewal and extension of copyright, and all licenses relating to any of the foregoing and all income and royalties with respect to any licenses, and all regulatory filings related thereto; 

 

	 	(c)	all state (including common law), federal and foreign trademarks, service marks and trade names, and applications for registration of such trademarks, service marks and trade names, all licenses relating to any of the
foregoing and all income and royalties with respect to any licenses, whether registered or unregistered and wherever registered, all rights to sue for past, present or future infringement or unconsented use thereof, all rights arising therefrom and
pertaining thereto and all reissues, extensions and renewals thereof, and all regulatory filings related thereto; 

  

	 	(d)	all trade secrets, trade dress, trade styles, logos, other source of business identifiers, mask-works, mask-work registrations, mask-work applications, software, confidential information, customer lists, license rights,
advertising materials, operating manuals, methods, processes, know-how, algorithms, formulae, databases, quality control procedures, product, service and technical specifications, operating, production and quality control manuals, sales literature,
drawings, specifications, blue prints, descriptions, inventions, name plates and catalogs, and all licenses relating to any of the foregoing and all income and royalties with respect to any licenses, and all regulatory filings related thereto; and

  

	 	(e)	the entire goodwill of or associated with the businesses now or hereafter conducted by the Company connected with and symbolized by any of the aforementioned properties and assets. 

“Inventory” means any and all of the Company’s inventory in all of its forms, wherever located, whether now owned or
hereafter acquired, and in any event includes all goods (including goods in transit) which are held for sale, lease or other disposition, including those held for display or demonstration or out on lease or consignment or to be furnished under
contract of service, or which are raw materials, work in process, finished goods or materials used or consumed in the Company’s business, and the resulting product or mass, and all repossessed, returned, rejected, reclaimed and replevied goods,
together with all parts, components, supplies, packing and other materials used or usable in connection with the manufacture, production, packing, shipping, advertising, selling or furnishing of such goods; and all other items hereafter acquired by
the Company by way of substitution, replacement, return, repossession or otherwise, and all additions and accessions thereto, and any Document representing or relating to any of the foregoing at any time. 

 “Investment Property” means any and all investment property of the Company,
including all securities, whether certificated or uncertificated, security entitlements, Securities Accounts, commodity contracts and Commodity Accounts, and all financial assets held in any Securities Account or otherwise, wherever located, and
whether now existing or hereafter acquired or arising. 
 “Letter of Credit Right” means a right to payment or performance
under a letter of credit, whether or not the beneficiary has demanded or is at the time entitled to demand payment or performance, and any and all proceeds of written letters of credit. 

“Lien” means any mortgage, pledge, security interest, assignment, deposit arrangement, charge or encumbrance, lien or other
type of preferential arrangement (other than a financing statement filed by a lessor in respect of an operating lease not intended as security). 

“Permitted Liens” means: 
  

	 	(a)	Liens in favor of the Collateral Agent; 

  

	 	(b)	existing Liens (including leases and subleases) existing as of the date hereof and listed on Schedule A and Liens incurred in connection with the extension, renewal or refinancing of the indebtedness or other
obligations secured by such existing Liens; 

  

	 	(c)	Liens for taxes, fees, assessments or other governmental charges or levies, either not delinquent or being contested in good faith by appropriate proceedings and which are adequately reserved for in accordance with
generally accepted accounting principles; 

  

	 	(d)	Liens of materialmen, mechanics, warehousemen, carriers or employees or other similar Liens provided for by mandatory provisions of law and securing obligations either not delinquent or being contested in good faith by
appropriate proceedings and which do not in the aggregate materially impair the use or value of the property or risk the loss or forfeiture thereof; 

  

	 	(e)	Liens consisting of deposits or pledges to secure the performance of bids, trade contracts, leases, public or statutory obligations, or other obligations of a like nature incurred in the ordinary course of business;

  

	 	(f)	Liens upon or in any property or assets and the Proceeds thereof acquired or held by the Company to secure the purchase price of such property or assets, or indebtedness or other obligations incurred solely for the
purpose of financing or refinancing the acquisition thereof; 

  

	 	(g)	easements, building restrictions and such other encumbrances or charges against real property as are of a nature generally existing with respect to properties of a similar character and that do not in any material way
affect the marketability of the same or interfere with the use thereof in the business of the Company; and 

	 	(h)	Liens arising solely by virtue of any statutory or common law provisions relating to bankers’ liens, rights of set-off of similar rights and remedies as to Deposit Accounts, Securities Accounts or other funds
maintained with a creditor depository institution. 

 “Person” means an individual, corporation, partnership,
limited liability company, joint venture, trust, unincorporated organization or any other entity of whatever nature or any governmental agency or authority. 

“Proceeds” means whatever is acquired from or upon the sale, lease, license, collection, use, exchange or other disposition,
whether voluntary or involuntary, of any Collateral or other assets of the Company, including “proceeds” as defined in the UCC, any and all proceeds of any insurance, indemnity, warranty or guaranty payable to or for the account of the
Company from time to time with respect to any of the Collateral, any and all payments (in any form whatsoever) made or due and payable to the Company from time to time in connection with any requisition, confiscation, condemnation, seizure or
forfeiture of all or any part of the Collateral by any governmental authority (or any Person acting under color of governmental authority), any and all other amounts from time to time paid or payable under or in connection with any of the Collateral
or for or on account of any damage or injury to or conversion of any Collateral by any Person, any and all other tangible or intangible property received upon the sale or disposition of Collateral, and all proceeds of proceeds. 

“Rights To Payment” means all Accounts, and any and all rights and claims to the payment or receipt of money or other forms of
consideration of any kind in, to and under all Chattel Paper, Documents, General Intangibles, Instruments, Investment Property and Proceeds. 

“Secured Obligations” means the indebtedness, liabilities and other obligations of the Company to each of the Secured Parties
evidenced by the Notes, including all unpaid principal thereunder, all interest accrued thereon (including interest that, but for the filing of a petition in bankruptcy with respect to the Company, would accrue on such obligations, whether or not a
claim is allowed against the Company for such interest in the related bankruptcy proceeding), and all other amounts payable by the Company to each thereunder or in connection therewith or under the Purchase Agreement or the Collateral Documents,
whether now existing or hereafter arising, and whether due or to become due, absolute or contingent, liquidated or unliquidated, determined or undetermined, and all obligations of every nature of the Company now or hereafter existing under the
Collateral Documents. 
 “UCC” means the Uniform Commercial Code as the same may, from time to time, be in effect in the
State of New York; provided in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of the security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a
jurisdiction other than the State of New York, the term “UCC” means the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such attachment, perfection or priority and for
purposes of definitions related to such provisions. 
 (b) Terms Defined in UCC. Where applicable and except as otherwise defined
herein, terms used in this Agreement have the meanings assigned to them in the UCC. 

 SECTION 2. SECURITY INTEREST. 

(a) Grant of Security Interest. As security for the payment and performance of the Secured Obligations, the Company hereby grants to the
Collateral Agent, for the benefit of the Secured Parties, a security interest in all of the Company’s right, title and interest in, to and under the following property, wherever located and whether now existing or owned or hereafter acquired or
arising (collectively, the “Collateral”): (i) all Accounts; (ii) all Rights to Payment; (iii) all Chattel Paper; (iv) all Deposit Accounts; (v) all Documents; (vi) all Equipment; (vii) all General
Intangibles; (viii) all Instruments; (ix) all Inventory; (x) all Investment Property; (xi) all Books; (xii) all Letter of Credit Rights; (xii) all Commercial Tort Claims; (xiii) all Contracts; (xiv) all Money;
(xv) all Supporting Obligations; (xv) all other goods and personal property, wherever located, whether tangible or intangible, and whether now owned or hereafter acquired, existing, leased or consigned by or to the Company; and
(xvi) all Proceeds of any and all of the foregoing and all accessions to, substitutions and replacements for and rents, profits and products of each of the foregoing. If the Company at any time acquires a Commercial Tort Claim in excess of
$50,000, the Company shall immediately notify the Collateral Agent in a writing signed by the Company of the brief details thereof and grant to the Collateral Agent in such writing a security interest therein and in the proceeds thereof, all upon
the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to the Collateral Agent and the Company shall file or cause to be filed an amendment to any financing statement under the UCC to include such
Commercial Tort Claim. 
 (b) Excluded Property. Notwithstanding anything herein to the contrary, the Collateral does not include, and
the Company is not deemed to have granted a security interest in, (i) any of the Company’s rights or interests in any license, contract or agreement to which the Company is a party or any of its rights or interests thereunder to the
extent, but only to the extent, that such a grant would, under the terms of such license, contract or agreement or otherwise, result in a breach of the terms of, or constitute a default under any license, contract or agreement to which the Company
is a party (other than to the extent that any such term would be rendered ineffective pursuant to the UCC or any other applicable law (including the Bankruptcy Code, 11 U.S.C. Sec. 362(a) (the “Bankruptcy Code”)) or principles of
equity); provided that immediately upon the ineffectiveness, lapse or termination of any such provision, the Collateral includes, and the Company is deemed to have granted a security interest in, all such rights and interests as if such
provision had never been in effect or (ii) any real property leasehold or fee, unless the Company has executed a mortgage or deed of trust covering such real property leasehold or fee. The Company hereby represents and warrants to the
Collateral Agent and Holders that the Company’s license agreement with respect to Azasite is included in the Collateral and is not excluded as a result of this Section 2(b). 

(c) Company Remains Liable. Anything herein to the contrary notwithstanding, (i) the Company remains liable under any contracts,
agreements and other documents included in the Collateral, to the extent set forth therein, to perform all of its duties and obligations thereunder to the same extent as if this Agreement had not been executed, (ii) the exercise by the
Collateral Agent of any of the rights hereunder does not release the Company from any of its duties or obligations under such contracts, agreements and other documents included in the Collateral and (iii) the Collateral Agent has no obligation
or liability under any contracts, agreements and other documents included in the Collateral by reason of this Agreement, nor is 

 
the Collateral Agent obligated to perform any of the obligations or duties of the Company thereunder or to take any action to collect or enforce any such contract, agreement or other document
included in the Collateral. 
 (d) Continuing Security Interest. This Agreement creates a continuing security interest in the
Collateral which remains in effect until terminated in accordance with Section 21. 
 SECTION 3. PERFECTION PROCEDURES. 

(a) Financing Statements. The Company authorizes the Collateral Agent to file one or more financing or continuation statements, and
amendments thereto, relative to all or any part of the Collateral without the signature of the Company; provided (a) it is the sole responsibility of the Company to perfect any Lien granted hereunder or under any other Collateral Document and
to maintain such perfection and (b) the Company’s failure to comply with clause (a) above constitutes an Event of Acceleration. The Company agrees that a photographic or other reproduction of this Agreement or of a financing statement
signed by the Company, as applicable, is sufficient as a financing statement and may be filed as a financing statement in any and all jurisdictions. Without limiting the foregoing, upon the request of the Collateral Agent, the Company shall execute
and deliver to the Collateral Agent concurrently with the execution of this Agreement, and at any time and from time to time thereafter, Account Control Agreements and all financing statements, continuation financing statements, termination
statements, security agreements, chattel mortgages, assignments, patent, copyright and trademark collateral assignments, fixture filings, warehouse receipts, documents of title, affidavits, reports, notices, schedules of account, letters of
authority and all other documents and instruments, in a form reasonably satisfactory to the Collateral Agent (the “Financing Statements”), and take all other action, as the Collateral Agent may reasonably request, to perfect and
continue such perfection, maintain the priority of or provide notice of, the Collateral Agent’s security interest in the Collateral and to accomplish the purposes of this Agreement. 

(b) Grants. As of the date hereof, the Company shall execute and deliver the Grant to the Collateral Agent for filing with the
applicable intellectual property filing offices evidencing the Collateral Agent’s security interest in the Intellectual Property Collateral. 

(c) Certain Agents. Any third person at any time and from time to time holding all or any portion of the Collateral is deemed to, and
shall, hold the Collateral as the agent of, and as pledge holder for, the Collateral Agent. At any time and from time to time, the Collateral Agent may give notice to any third person holding all or any portion of the Collateral that such third
person is holding the Collateral as the agent of, and as pledge holder for, the Collateral Agent. 
 SECTION 4. REPRESENTATIONS AND
WARRANTIES. In addition to the representations and warranties of the Company in the Purchase Agreement, the Company represents and warrants that: 
  

	 	(a)	its name as it appears in official filings in its jurisdiction of organization, type of organization and jurisdiction of organization are set forth on Schedule B; 

	 	(b)	it (or its predecessor by merger or otherwise) has not, within the five year period preceding the date hereof, had a different name from the name listed on Schedule B; 

 

	 	(c)	this Agreement creates a legal and valid security interest against the Collateral in which the Company now has rights and will create a legal and valid security interest which is enforceable against the Collateral in
which the Company hereafter acquires rights at the time the Company acquires any such rights, in each case securing the payment and performance of the Secured Obligations except for and subject to Permitted Liens; and 

 

	 	(d)	the Company owns its interest in the Collateral, free and clear of any Liens other than Permitted Liens. 

SECTION 5. COVENANTS. For so long as any of the Secured Obligations remain unsatisfied, the Company shall: 

 

	 	(a)	appear in and defend any action, suit or proceeding which may affect to a material extent its title to, or right or interest in, or the Secured Parties’ right or interest in, the Collateral; 

 

	 	(b)	do and perform all reasonable acts that may be necessary and appropriate to maintain, preserve and protect the Collateral in all material respects, as well as perfecting and maintaining the priority and perfection of
any Lien created or security interest granted hereunder or by any other Collateral Document; 

  

	 	(c)	pay all expenses of protecting, storing, warehousing, insuring, handling and shipping the Collateral; 

  

	 	(d)	without the written consent of the Majority Holders, not change its name as it appears in official filings in its jurisdiction of organization, type of organization and jurisdiction of organization unless, in each case,
it provides the Collateral Agent with 30 days’ advance written notice thereof setting forth such change; 

  

	 	(e)	diligently prosecute and maintain all material Intellectual Property Collateral, at its sole cost and expense, including the filing of patent and trademark applications with respect to any material Intellectual Property
Collateral that the Company determines in its commercially reasonable judgment should be made, and the defense of any infringement of, or challenge to, any material portion of the Intellectual Property Collateral; 

 

	 	(f)	provide the Collateral Agent with written notice should there be any claims of infringement with respect to any material portion of the Intellectual Property Collateral; and 

 

	 	(g)	not grant any Liens on its Collateral other than Permitted Liens. 

 SECTION 6. RIGHTS TO PAYMENT. 

(a) Collection of Rights to Payment. At the written request of the Collateral Agent, upon and after the occurrence and during the
continuance of any Event of Acceleration, all remittances received by the Company shall be, in accordance with the Collateral Agent’s instructions, remitted to the Collateral Agent or its designee or deposited to an account with the Collateral
Agent or its designee in the form received (with any necessary endorsements or instruments of assignment or transfer). 
 (b) Investment
Property and Instruments. At the written request of the Collateral Agent, upon and after the occurrence and during the continuance of any Event of Acceleration, the Collateral Agent or its designee are entitled to receive all distributions and
payments of any nature with respect to any Investment Property or Instruments, and all such distributions or payments received by the Company shall be held in trust for the Collateral Agent or its designee to the extent permitted by applicable law
and, in accordance with the Collateral Agent’s instructions, remitted to the Collateral Agent or its designee or deposited to an account with the Collateral Agent or its designee in the form received (with any necessary endorsements or
instruments of assignment or transfer). Following the occurrence and during the continuance of an Event of Acceleration, at the written request of the Collateral Agent, any such distributions and payments with respect to any Investment Property held
in any Securities Account shall be held and retained in such Securities Account, in each case as part of the Collateral. Additionally, the Collateral Agent, as agent for and representative of the Holders, has the right, upon the occurrence and
during the continuance of an Event of Acceleration, following prior written notice to the Company, to vote and to give consents, ratifications and waivers with respect to any Investment Property and Instruments, and to exercise all rights of
conversion, exchange, subscription or any other rights, privileges or options pertaining thereto to the extent permitted by applicable law as if the Collateral Agent were the absolute owner thereof; provided that the Collateral Agent has no
duty to exercise any of the foregoing rights afforded to it and is not responsible to the Company or any other Person for any failure to do so or delay in doing so to the extent permitted by applicable law. 

SECTION 7. Authorization; Collateral Agent Appointed Attorney-in-Fact. The Collateral Agent has the right to, but not the obligation,
in the name of the Company, without notice to or assent by the Company, and the Company constitutes and appoints the Collateral Agent (and any of the Collateral Agent’s agents) as the Company’s true and lawful attorney-in-fact, with full
power and authority to (a) sign any of the Financing Statements which must be executed or filed to perfect or continue perfected, maintain the priority of or provide notice of, the Collateral Agent’s security interest in the Collateral and
(b) upon the occurrence and during the continuance of an Event of Acceleration and at the direction of the Majority Holders: 
  

	 	(i)	take possession of and endorse any notes, acceptances, checks, drafts, money orders or other forms of payment or security and collect any Proceeds of any Collateral; 

 

	 	(ii)	sign and endorse any invoice or bill of lading relating to any of the Collateral, warehouse or storage receipts, drafts against customers or other obligors, assignments, notices of assignment, verifications and notices
to customers or other obligors (with respect to the Collateral); 

	 	(iii)	send requests for verification of Rights to Payment to the customers or other obligors of the Company (with respect to the Collateral); 

 

	 	(iv)	contact, or direct the Company to contact, all account debtors and other obligors on the Rights to Payment and instruct such account debtors and other obligors to make all payments directly to the Collateral Agent or
its designee; 

  

	 	(v)	assert, adjust, sue for, compromise or release any claims under any policies of insurance; 

  

	 	(vi)	exercise dominion and control over, and refuse to permit further withdrawals from, Deposit Accounts maintained with any financial institution or other Person; 

 

	 	(vii)	notify each Person maintaining lockbox or similar arrangements for the payment of the Rights to Payment to remit all amounts representing collections on the Rights to Payment directly to the Collateral Agent or its
designee; 

  

	 	(viii)	ask, demand, collect, receive and give acquittances and receipts for any and all Rights to Payment, enforce payment or any other rights in respect of the Rights to Payment and all other Collateral, grant consents, agree
to any amendments, modifications or waivers of the agreements and documents governing the Rights to Payment and all other Collateral, and otherwise file any claims, take any action or institute, defend, settle or adjust any actions, suits or
proceedings with respect to the Collateral, as the Collateral Agent may deem necessary or desirable to maintain, preserve and protect the Collateral, to collect the Collateral or to enforce the rights of the Collateral Agent with respect to the
Collateral; 

  

	 	(ix)	execute any and all applications, documents, papers and instruments necessary for the Collateral Agent to use the Intellectual Property Collateral and grant or issue any exclusive or non-exclusive license or sublicense
with respect to any Intellectual Property Collateral; 

  

	 	(x)	execute any and all endorsements, assignments or other documents and instruments necessary to sell, lease, assign, convey or otherwise transfer title in or dispose of the Collateral; 

 

	 	(xi)	execute and deliver to any securities intermediary or other Person any entitlement order, Account Control Agreement or other notice, document or instrument which the Collateral Agent may deem necessary or advisable to
maintain, protect, realize upon and preserve the Investment Property and the Collateral Agent’s security interest therein; 

  

	 	(xii)	execute any and all such other documents and instruments, and do any and all acts and things for and on behalf of the Company, that the Collateral Agent may deem necessary or advisable to maintain, protect, realize upon
and preserve the Collateral and the Collateral Agent’s security interest therein and to accomplish the purposes of this Agreement; and 

	 	(xiii)	execute any and all action necessary to prosecute, maintain or defend the Intellectual Property Collateral, except to the extent that the claims asserted against the Intellectual Property Collateral in question, if
successful, are not likely to have a material adverse affect on the assets, liabilities, business or operations of the Company. 

 The
foregoing power of attorney is coupled with an interest and irrevocable so long as the Secured Obligations have not been paid and performed in full. The Company ratifies, to the extent permitted by law, all that the Collateral Agent lawfully and in
good faith does or causes to be done by virtue of and in compliance with this Section 7. 
 SECTION 8. Collateral Agent
Performance of Company Obligations. Upon the occurrence and during the continuance of any Event of Acceleration, the Collateral Agent may, but is not obligated to, perform or pay any obligation which the Company has agreed to perform or pay
under or in connection with this Agreement, and the Company shall reimburse the Collateral Agent on demand for any reasonable amounts paid by the Collateral Agent pursuant to this Section 8 to the extent permitted by applicable law and
any such amount paid by the Collateral Agent are Secured Obligations under the Collateral Documents. 
 SECTION 9. Collateral
Agent’s Duties. Notwithstanding any provision contained in this Agreement, the Collateral Agent has no duty to exercise any of the rights, privileges or powers afforded to it and is not responsible to the Company or any other Person for any
failure to do so or delay in doing so. Beyond the exercise of reasonable care to assure the safe custody of Collateral in the Collateral Agent’s possession and the accounting for moneys actually received by the Collateral Agent hereunder, the
Collateral Agent has no duty or liability to exercise or preserve any rights, privileges or powers pertaining to the Collateral to the extent permitted by applicable law and its duties hereunder and under any other Collateral Document are subject to
the terms of the Collateral Agency Agreement. 
 SECTION 10. REMEDIES. 

(a) Remedies. Upon the occurrence and during the continuance of any Event of Acceleration, the Collateral Agent has, in addition to all
other rights and remedies granted to it in the Collateral Documents, all rights and remedies of a secured party under the UCC and other applicable laws and, without limiting the generality of the foregoing, the Company agrees that to the extent
permitted by applicable law: 
  

	 	(i)	The Collateral Agent may peaceably and without notice enter any premises of the Company, take possession of any of the Collateral, remove or dispose of all or part of the Collateral on any premises of the Company or
elsewhere, and otherwise collect, receive, appropriate and realize upon all or any part of the Collateral, and demand, give receipt for, settle, renew, extend, exchange, compromise, adjust, or sue for all or any part of the Collateral, as the
Collateral Agent may determine. 

	 	(ii)	The Collateral Agent may require the Company to assemble all or any part of the Collateral and make it available to the Collateral Agent at any place and time designated by the Collateral Agent. 

 

	 	(iii)	To the extent permitted by an applicable license, the Collateral Agent may use or transfer any of the Company’s rights and interests in any Intellectual Property Collateral, by license, by sublicense or otherwise,
on such conditions and in such manner as the Collateral Agent may determine. 

  

	 	(iv)	The Collateral Agent may secure the appointment of a receiver of the Collateral or any part there of (to the extent and in the manner provided by applicable law). 

 

	 	(v)	The Collateral Agent may withdraw (or cause to be withdrawn) any and all funds from any Deposit Accounts or Securities Accounts. 

  

	 	(vi)	The Collateral Agent may sell, resell, lease, use, assign, transfer or otherwise dispose of any or all of the Collateral in its then condition or following any commercially reasonable preparation or processing
(utilizing in connection therewith any of the Company’s assets, without charge or liability to the Collateral Agent therefor) at public or private sale, by one or more contracts, in one or more parcels, at the same or different times, for cash
or credit, or for future delivery without assumption of any credit risk, all as the Collateral Agent deems advisable; provided that the Company shall be credited with the net proceeds of sale only when such proceeds are finally collected by
the Collateral Agent. The Collateral Agent has the right, as agent for and representative of the Holders, upon any such public sale, and, to the extent permitted by law, upon any such private sale, to purchase the whole or any part of the Collateral
so sold, free of any right or equity of redemption, which right or equity of redemption the Company hereby releases, to the extent permitted by law. The Company agrees that the sending of notice by ordinary mail, postage prepaid, to the address of
the Company set forth in Section 12, of the place and time of any public sale or of the time after which any private sale or other intended disposition is to be made, is deemed reasonable notice thereof if such notice is sent ten days
prior to the date of such sale or other disposition or the date on or after which such sale or other disposition may occur. The Company recognizes that the Collateral Agent may be unable to make a public sale of any or all of the Investment
Property, by reason of prohibitions contained in applicable securities laws or otherwise, and expressly agrees that a private sale to a restricted group of purchasers for investment and not with a view to any distribution thereof is considered a
commercially reasonable sale. 

 (b) License. Effective upon the occurrence and during the continuance of an Event of
Acceleration, for the purpose of enabling the Collateral Agent to exercise its rights and remedies under this Section 10 or otherwise in connection with this Agreement, the Company grants to the Collateral Agent an irrevocable,
non-exclusive and assignable license (exercisable without payment or royalty or other compensation to the Company) to use, license or sublicense any Intellectual Property Collateral, except to the extent a grant of such license would violate the
terms of an existing agreement to which the Company is a party. 

 (c) Application of Proceeds. The cash proceeds actually received from the sale or other
disposition or collection of Collateral, and any other amounts received in respect of the Collateral the application of which is not otherwise provided for herein, shall be applied (pro rata, as applicable): (i) first, to any fees, costs,
expenses and other amounts due to the Collateral Agent; (ii) second, to any fees, costs, expenses and other amounts (other than principal and interest under the Notes) due to the Holders under the Notes on a pro rata basis; (iii) third, to
accrued and unpaid interest due to the Holders under the Notes on a pro rata basis; and (iv) fourth, to principal due to the Holders under the Notes on a pro rata basis. Any surplus thereof which exists after payment and performance in full of
the Secured Obligations shall be promptly paid over to the Company or otherwise disposed of as required by the UCC or other applicable law. The Company remains liable to each of the Secured Parties for any deficiency which exists after any sale or
other disposition or collection of Collateral to the extent permitted by applicable law. The Company shall maintain an updated registry which contains the names of each Holder and the amounts due to each Holder under the Notes and shall furnish such
registry to the Collateral Agent, as the Collateral Agent from time to time requests. 
 SECTION 11. CERTAIN WAIVERS. The Company waives, to
the fullest extent permitted by law, (a) any right of redemption with respect to the Collateral, whether before or after sale hereunder, and all rights, if any, of marshalling of the Collateral or other collateral or security for the Secured
Obligations, (b) any right to require the Collateral Agent or the Holders (i) to proceed against any Person, (ii) to exhaust any other collateral or security for any of the Secured Obligations, (iii) to pursue any remedy in the
Collateral Agent’s or Holders’ power or (iv) to make or give any presentments, demands for performance, notices of nonperformance, protests, notices of protests or notices of dishonor in connection with any of the Collateral and
(c) all claims, damages, and demands against the Collateral Agent or the Holders arising out of the repossession, retention, sale or application of the proceeds of any sale of the Collateral. 

SECTION 12. NOTICES. Except as otherwise provided herein, any notice or demand that, by the provisions hereof, is required or which may be
given to or served upon the parties hereto shall be in writing and, if by facsimile or electronic delivery, is deemed to have been validly served, given or delivered when delivery is confirmed electronically, if by personal delivery, is deemed to
have been validly served, given or delivered upon actual delivery and, if mailed, is deemed to have been validly served, given or delivered three business days after deposit in the United States mail, as registered or certified mail, with proper
postage prepaid and addressed to the party or parties to be notified, at the following addresses (or such other address(es) as a party may designate for itself by like notice): 

 

			
	If to Collateral Agent:	  	 U.S. Bank National Association
 Global
Corporate Trust Services
 100 Wall Street, Suite 1600
 New
York, New York 10005
 Facsimile: 212-951-6986
 Attention: Karen
Hall, Vice President
 Email: Karen.Hall@unionbank.com

			
	If to the Company:	  	 InSite Vision Incorporated
 965 Atlantic
Avenue
 Alameda, California 94501
 Facsimile: (510)
747-1382
 Attention: Timothy M. Ruane
 Email:
TRuane@insite.com

 SECTION 13. NO WAIVER; CUMULATIVE REMEDIES. No failure on the part of the Collateral Agent to
exercise, and no delay in exercising, any right, remedy, power or privilege hereunder operates as a waiver thereof, nor does any single or partial exercise of any such right, remedy, power or privilege preclude any other or further exercise thereof
or the exercise of any other right, remedy, power or privilege. The rights and remedies under this Agreement are cumulative and not exclusive of any rights, remedies, powers and privileges that may otherwise be available to the Collateral Agent.

 SECTION 14. COSTS, EXPENSES AND INDEMNIFICATION. 

(a) Costs and Expenses. The Company shall pay on demand all reasonable costs and expenses to the Collateral Agent, and the reasonable
fees and disbursements of the Collateral Agent’s counsel, in connection with the performance of this Agreement and the other Collateral Documents, as applicable, and the enforcement or attempted enforcement of, and preservation of any rights or
interests under, the Collateral Documents, including the protection, sale or collection of, or other realization upon, any of the Collateral, including all expenses of taking, collecting, holding, sorting, handling, preparing for sale, selling, or
the like, and other such expenses of sales and collections of Collateral. 
 (b) Indemnification. The Company shall indemnify the
Collateral Agent, its agents, counsel and other advisors (each an “Indemnified Person”) against, and hold each of them harmless from, any and all liabilities, obligations, losses, claims, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever, including the reasonable fees and disbursements of counsel to an Indemnified Person, that may be imposed on, incurred by, or asserted against any Indemnified Person, in any
way relating to or arising out of the Collateral Documents or the transactions contemplated hereby or any action taken or omitted to be taken by it hereunder (the “Indemnified Liabilities”); provided that the Company is not
liable to any Indemnified Person for any portion of such Indemnified Liabilities to the extent they are found by a final, unappealable decision of a court of competent jurisdiction to have resulted from such Indemnified Person’s gross
negligence or willful misconduct. If and to the extent that the foregoing indemnification is for any reason held unenforceable by a final, unappealable decision of a court of competent jurisdiction, the Company shall make the maximum contribution to
the payment and satisfaction of each of the Indemnified Liabilities that is permissible under applicable law. 
 (c) Other Charges.
The Company shall indemnify the Collateral Agent against and hold it harmless from any and all present and future stamp, transfer, documentary and other such taxes, levies, fees, assessments and other charges made by any jurisdiction by reason of
the execution, delivery, performance and enforcement of the Collateral Documents. 

 SECTION 15. GENDER AND NUMBER. In this Agreement the masculine includes the feminine and the
singular includes the plural and vice versa. 
 SECTION 16. GOVERNING LAW AND RELATED MATTERS. 

THIS AGREEMENT IS GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK), EXCEPT AS REQUIRED BY MANDATORY PROVISIONS OF LAW AND TO THE EXTENT THE VALIDITY OR PERFECTION OF THE SECURITY INTERESTS HEREUNDER, OR THE REMEDIES HEREUNDER, IN RESPECT OF ANY COLLATERAL ARE GOVERNED BY
THE LAW OF A JURISDICTION OTHER THAN NEW YORK. 
 ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST THE COMPANY ARISING OUT OF OR RELATING TO THIS
AGREEMENT MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE COUNTY OF NEW YORK, STATE OF NEW YORK, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT THE COMPANY ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES,
GENERALLY AND UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS AGREEMENT. The Company
agrees that service of all process in any such proceeding in any such court may be made by registered or certified mail, return receipt requested, to the Company at its address set forth in Section 12, such service being hereby
acknowledged by the Company to be sufficient for personal jurisdiction in any action against the Company in any such court and to be otherwise effective and binding service in every respect. Nothing herein affects the right to serve process in any
other manner permitted by law or shall limit the right of the Collateral Agent to bring proceedings against the Company in the courts of any other jurisdiction. 

THE COMPANY AND THE COLLATERAL AGENT IRREVOCABLY AGREE TO WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED
UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT AND THE RELATIONSHIP THAT IS BEING ESTABLISHED. The scope of this waiver is intended to be all-encompassing of any and all disputes
that may be filed in any court and that relate to the subject matter of this transaction, including without limitation contract claims, tort claims, breach of duty claims and all other common law and statutory claims. The Company and the Collateral
Agent (a) acknowledge that this waiver is a material inducement to enter into a business relationship, that each has already relied on this waiver in entering into this relationship, and that each will continue to rely on this waiver in their
related future dealings and (b) further warrants and represents that each has reviewed this waiver with its legal counsel and that each knowingly and voluntarily waives its jury trial rights following consultation with legal counsel. In the
event of litigation, this provision may be filed as a written consent to a trial by the court. 

 SECTION 17. ENTIRE AGREEMENT; AMENDMENT. This Agreement and the other Collateral Documents
contain the entire agreement of the parties with respect to the subject matter hereof and may not be amended except by the written agreement of the Company and the Collateral Agent. 

SECTION 18. SEVERABILITY. Whenever possible, each provision of this Agreement must be interpreted in such manner as to be effective and valid
under all applicable laws and regulations. If, however, any provision of this Agreement is prohibited by or invalid under any such law or regulation in any jurisdiction, it is, as to such jurisdiction, deemed modified to conform to the minimum
requirements of such law or regulation, or, if for any reason it is not deemed so modified, it is ineffective and invalid only to the extent of such prohibition or invalidity without affecting the remaining provisions of this Agreement, or the
validity or effectiveness of such provision in any other jurisdiction. 
 SECTION 19. COUNTERPARTS. This Agreement may be executed in any
number of counterparts and by different parties hereto in separate counterparts, each of which when so executed is deemed to be an original and all of which taken together constitute but one and the same agreement. 

SECTION 20. CONTINUING SECURITY INTEREST; TRANSFER OF NOTES. This Agreement creates a continuing security interest in and Lien on the
Collateral and (a) remains in full force and effect until the payment in full of all of the Secured Obligations, (b) is binding on the Company and its successors and assigns and (c) inures together with the rights of Collateral Agent
hereunder, to the benefit of Collateral Agent and its successors, transferees and assigns, as agent for and representative of the Holders. Without limiting the generality of the foregoing clause (c), any Holder may assign or otherwise transfer any
Notes held by it to any other Person in accordance with the Purchase Agreement, and such other Person thereupon becomes vested with all the benefits in respect thereof granted to such Holder. 

SECTION 21. TERMINATION. Upon payment in full of all Secured Obligations (a) the Collateral Documents and any and all security interests,
Liens or other encumbrances granted by the Company to the Collateral Agent, without any further action by the Company or the Collateral Agent, automatically terminate and are released and of no further force and effect, (b) the Collateral
Agent, at the Company’s expense, shall promptly execute and deliver to the Company such agreements, releases, satisfactions, documents and instruments reasonably requested by the Company as are necessary to evidence termination of all security
interests given by the Company to the Collateral Agent hereunder and (c) the Collateral Agent authorizes the Company to file, record and/or deliver all reasonably requested agreements, releases, satisfactions, instruments, or documents
evidencing the terminations and releases provided for herein and to file termination statements under the UCC with respect to the Collateral. Upon the receipt from the Company of written notice of a binding agreement with respect to a bona fide
sale, collaboration, partnering transaction or similar transaction between the Company and a third party involving the sale or licensing of one or more Company assets which (i) will result in all Secured Obligations being paid in full and
(ii) is anticipated to close within the ten day period 

 
subsequent to the date of delivery of such written notice, all documents and instruments to be delivered pursuant to clause (b) above shall be delivered by the Collateral Agent to counsel to
the Company within five business days of such written notice from the Company so as to enable such counsel to the Company to hold, in escrow, such documents and instruments in its possession pending the closing of such transaction and payment in
full of all Secured Obligations; provided if such transaction does not close within the ten day period described above, the Company will cause such documents and instruments so delivered pursuant to this sentence to be promptly returned to the
Collateral Agent and any releases or satisfactions so delivered are null and void. 
 (Signature Page Follows) 

 Executed and delivered as of the day and year and at the place first above written. 

 

			
	INSITE VISION INCORPORATED
		
	By:	 	/s/ Timothy M. Ruane
	Name:	 	Timothy M. Ruane
	Title:	 	Chief Executive Officer

  

			
	 U.S. BANK NATIONAL ASSOCIATION,
 as
Collateral Agent

		
	By:	 	/s/ Jean Clarke
	Name:	 	Jean Clarke
	Title:	 	Vice President

 [Signature Page to Security Agreement] 

 Exhibit A 

INTELLECTUAL PROPERTY SECURITY AGREEMENT 

This Intellectual Property Security Agreement is entered into as of October 9, 2014 by and between U.S. Bank National Association, as
collateral agent for itself and the Holders described in the Security Agreement (in such capacity, the “Collateral Agent”) and InSite Vision Incorporated, a Delaware corporation (the “Grantor”). 

RECITALS 
 A. Pursuant to
the Securities Purchase Agreement dated as of October 9, 2014 (as amended, restated, supplemented or otherwise modified from time to time, the “Purchase Agreement”), among the Grantor, Riverbank Capital Securities, Inc., and the
purchasers party thereto (collectively, the “Holders”, together with the Collateral Agent, the “Secured Parties”), the Grantor has issued or will issue its 12% Senior Secured Notes (as amended, restated, supplemented or otherwise
modified from time to time, collectively, the “Notes”). Capitalized terms used herein are used as defined in the Purchase Agreement or the Security Agreement, dated as of October 9, 2014 (the “Security Agreement”), between
the Grantor and the Collateral Agent, as applicable, unless otherwise noted. To secure its obligations under the Notes, the Collateral Agency Agreement and any other Collateral Documents, the Grantor desires to grant to the Collateral Agent, for the
benefit of the Secured Parties, a security interest in certain copyrights, trademarks, patents and patent applications. 
 B. Pursuant to
the terms of the Security Agreement, dated as of October 9, 2014 (the “Security Agreement”), between the Grantor and the Collateral Agent, the Grantor has granted to Collateral Agent, for the benefit of the Secured Parties, a security
interest in all of the Grantor’s right, title and interest, whether presently existing or hereafter acquired, in, to and under all of the Collateral. 

NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby acknowledged, and intending to be legally bound, as collateral
security for the prompt and complete payment when due of its obligations under the Notes, the Grantor hereby represents, warrants, covenants and agrees as follows: 

AGREEMENT 
 To secure its
obligations under the Notes, the Grantor grants and pledges to Collateral Agent, for the benefit of the Secured Parties, a security interest in all of the Grantor’s right, title and interest in, to and under its Intellectual Property
Collateral, including without limitation those copyrights, patents and patent applications, and trademarks listed on Exhibits A, B and C hereto, and including without limitation all proceeds thereof (such as, by way of example but not by way of
limitation, license royalties and proceeds of infringement suits), the right to sue for past, present and future infringements, all rights corresponding thereto throughout the world and all re-issues, divisions continuations, renewals, extensions
and continuations-in-part thereof. 
 This security interest is granted in conjunction with the security interest granted to Collateral
Agent, for the benefit of the Secured Parties, under the Security Agreement. The rights and remedies of Collateral Agent with respect to the security interest granted hereby are in addition to those set forth in the Security Agreement, the Notes and
other Collateral Documents, and those which are now or hereafter available to Collateral Agent, for the benefit of the Secured Parties, as a matter of law or equity. Each right, power and remedy of Collateral Agent provided for herein or in the
Security Agreement, the other Collateral Documents, the Purchase Agreement, or the Notes, or now or hereafter existing at law or in equity, shall be cumulative and concurrent and shall be in addition to every right, power or remedy provided for
herein and the exercise by Collateral Agent of any one or more of the rights, powers or remedies provided for in this Intellectual Property Security Agreement, the Security Agreement, the Purchase Agreement,the Notes or other Collateral Documents,
or now or hereafter existing at law or in equity, shall not preclude the simultaneous or later exercise by any person, including the Holders, of any or all other rights, powers or remedies. This Intellectual Property Security Agreement shall
constitute a Collateral Agreement as defined under the Security Agreement. 

 IN WITNESS WHEREOF, the parties have caused this Intellectual Property Security Agreement to be
duly executed by its officers thereunto duly authorized as of the first date written above. 
  

									
	GRANTOR: InSite Vision Incorporated	  		 		 	
			
	Address of Grantor:	  		 	InSite Vision Incorporated
	InSite Vision Incorporated	  		 		 	
	965 Atlantic Avenue	  		 		 	
	Alameda, California 94501	  		 		 	
		  		  		 	By:	 	 
					
	Attn:	  	 	  		 	Title:	 	 
				
	 COLLATERAL AGENT: US Bank National

Association
	  		 		 	
				
	Address of Collateral Agent:	  		 		 	
	U.S. Bank National Association	  		 	U.S. Bank National Association
	Global Corporate Trust Services	  		 		 	
	100 Wall Street, Suite 1600	  		 		 	
	New York, New York 10005	  		 		 	
		  		  		 	By:	 	 
					
	Attn:	  	 	  		 	Title:

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