Document:

EX-10.2

   

  Exhibit 10.2

  SUPPLEMENT

  to the

  Loan and Security Agreement

  dated as of August 8, 2022

  between

  Rani Therapeutics, LLC (“Borrower”)

  and 

  Rani Management Services, Inc. , as a guarantor

  and

  Rani Therapeutics Holdings, Inc., as a guarantor (together with Rani Management Services, Inc., each, individually, a “Guarantor,” and collectively, “Guarantors”))

  and

  Avenue Venture Opportunities Fund, L.P., a Delaware limited partnership,

  as a lender (together with other lenders from time to time party hereto, each, individually, a “Lender” and collectively, the “Lenders”), and as administrative agent and collateral agent (“in such capacity, “Agent”)

   

   

   

   

  This is a Supplement identified in the document entitled Loan and Security Agreement, dated as of August 8, 2022 (as amended, restated, supplemented and modified from time to time, the “Loan and Security Agreement”), by and among Borrower, Guarantor, Lenders and Agent.  All capitalized terms used in this Supplement and not otherwise defined in this Supplement have the meanings ascribed to them in Article 12 of the Loan and Security Agreement, which is incorporated in its entirety into this Supplement.  In the event of any inconsistency between the provisions of the Loan and Security Agreement and this Supplement, this Supplement is controlling.

  In addition to the provisions of the Loan and Security Agreement, the parties agree as follows:

  Part 1 - Additional Definitions:

  “Amortization Period” means the period commencing on the first day of the first full calendar month following the end of the Interest-only Period and continuing until the Maturity Date.

  “Commitment” means, subject to the terms and conditions set forth in the Loan and Security Agreement and this Supplement, Lenders’ commitment to make Growth Capital Loans to Borrower in the aggregate original principal amount of Thirty Million Dollars ($30,000,000), of which Fifteen Million Dollars ($15,000,000) shall be funded on the Closing Date (“Tranche 1A”) and, subject to the conditions in Sections 1(b) and 1(c) of Part 2, up to Fifteen Million Dollars ($15,000,000) to be funded between the Tranche 1B Start Date and on or before the Tranche 1B End Date (“Tranche 1B”). At the request of the Borrower, Lenders may make additional Growth Capital Loans to Borrower of up to an additional ($15,000,000) (the “Discretionary Tranche 2 Additional Availability Amount”), to be funded between the Discretionary Tranche 2 Start Date and on or before the Discretionary Tranche 2 End Date as Borrower and Lenders may mutually agree, subject to Borrower’s full draw-down of Tranche 1B, achievement of the Milestone Study and the Discretionary Tranche 2 Milestone and approval of Lenders’ Investment Committees, in their sole discretion, provided that, as of the Closing Date, the Discretionary Tranche 2 Additional Availability Amount shall not be considered, and is not, committed hereunder by any Lender.  Notwithstanding the above, as to any Lender, the obligation of such Lender to make Growth Capital Loans subject to the terms and conditions set forth in the Loan and Security Agreement and this Supplement shall not exceed the amount set forth under the heading Tranche 1A Commitment or Tranche 1B Commitment, as applicable, opposite such Lender’s name on Schedule 1 to this Supplement.

  “Designated Rate” means, for each Growth Capital Loan, a variable rate of interest per annum equal to the greater of (i) ten and thirty-five one hundredths percent (10.35%) and (ii) the Prime Rate plus the sum of five and 

   

  

   

  six-tenths percent (5.60%).  Changes to the Designated Rate based on changes to the Prime Rate shall be effective as of the next scheduled interest payment date immediately following such change. 

  “Discretionary Tranche 2 End Date” means the last day of the Interest-only Period.

  “Discretionary Tranche 2 Milestone” means Borrower’s receipt after the Closing Date of at least Fifty Million Dollars ($50,000,000.00) in net cash proceeds from the sale and issuance of Borrower’s equity securities and/or upfront licensing proceeds; in each case, subject to written evidence of the same, in form and content reasonably acceptable to Lenders.

  “Discretionary Tranche 2 Start Date” means the (a) the date of Borrower’s completion of the Milestone Study, (b) the date of Borrower’s achievement of the Discretionary Tranche 2 Milestone, or (c) the date Lenders’ Investment Committees, in their sole discretion, approve the issuance of Discretionary Tranche 2, whichever occurs last.

  “FDA” means the U.S. Food and Drug Administration or any successor thereto.

  “Final Payment” means a payment (in addition to and not a substitution for the regular monthly payments of principal plus accrued interest) equal to five and one-half percent (5.50 %) of the aggregate amount of funded Loans.

  “Growth Capital Loan” means any Loan requested by Borrower and funded by a Lender under its Commitment for general corporate purposes of Borrower.

  “IDE” means an investigational device exemption issued by the FDA.

  “Interest-only Milestone” means Borrower has achieved successful completion of the Milestone Study, as determined by Borrower in good faith.

  “Interest-only Period” means the period commencing on the Closing Date and continuing until the twenty-four (24) month anniversary of the Closing Date; provided, however, that such period shall be extended for six (6) months if as of the last day of the Interest-only Period then in effect, Borrower has achieved Borrower has achieved the Interest-only Milestone; provided, further, however, that the Interest-only Period shall not exceed thirty (30) months.

  “Loan” or “Loans” mean, as the context may require, individually a Growth Capital Loan, and collectively, the Growth Capital Loans.

  “Loan Commencement Date” means, with respect to each Growth Capital Loan: (a) the first day of the first full calendar month following the Borrowing Date of such Loan if such Borrowing Date is not the first day of a month; or (b) the same day as the Borrowing Date if the Borrowing Date is the first day of a month.

  “Maturity Date” means August 1, 2026.

  “Milestone Study” means the IDE study or similar repeat dose study or phase 2 clinical study with Borrower’s oral delivery technology, whether conducted by or on behalf of Borrower, an Affiliate, a third-party license or development collaborator or otherwise.

  “Prepayment Fee” means, with respect to any prepayment of the Loans: 

  (i)if the prepayment occurs during the period commencing on the Closing Date and ending on (but including) the first anniversary of the Closing Date, an amount equal to the principal amount of such Loans prepaid multiplied by three percent (3.00%); and

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  (ii)if the prepayment occurs during the period commencing on the day after the first anniversary of Closing Date and ending on (but including) the second anniversary of the Closing Date, an amount equal to the principal amount of such Loans prepaid multiplied by two percent (2.00%); and

  (iii)if the prepayment occurs during the period commencing on the day after the second anniversary of the Closing date and ending on (but excluding) the Maturity Date, an amount equal to the principal amount of the Loans prepaid multiplied by one percent (1.00%).

  “Primary Operating Account” shall be the bank account set forth in Section 6 below, unless and until such account is changed in accordance with Section 5.10 of the Loan and Security Agreement.

  “Prime Rate” is the rate of interest per annum from time to time published in the money rates section of The Wall Street Journal or any successor publication thereto as the “prime rate” then in effect; provided that, in the event such rate of interest is less than zero, such rate shall be deemed to be zero for purposes of this Supplement; and provided further that if such rate of interest, as set forth from time to time in the money rates section of The Wall Street Journal, becomes unavailable for any reason as determined by Agent, the “Prime Rate” shall mean the rate of interest per annum announced by Silicon Valley Bank as its prime rate in effect at its principal office in the State of California (such announced Prime Rate not being intended to be the lowest rate of interest charged by such institution in connection with extensions of credit to debtors); provided that, in the event such rate of interest is less than zero, such rate shall be deemed to be zero for purposes of this Supplement.

  “Termination Date” means the earlier of: (i) the date Lenders may terminate making Growth Capital Loans or extending other credit pursuant to the rights of Lenders under Article 7 of the Loan and Security Agreement; and (ii) the last day of the Interest-only Period.

  “Threshold Amount” means Five Hundred Thousand Dollars ($500,000.00).

  “Tranche 1A” means the initial Growth Capital Loan funded on the Closing Date in the amount of Fifteen Million Dollars ($15,000,000)

  “Tranche 1A Commitment” means, as to any Lender, subject to the terms and conditions set forth in the Loan and Security Agreement and this Supplement, the obligation of such Lender, if any, to make Growth Capital Loans to the Borrower on the Closing Date in a principal amount not to exceed the amount set forth under the heading Tranche 1A Commitment opposite such Lender’s name on Schedule 1 hereto.

  “Tranche 1B” means the Growth Capital Loans funded beginning on the Tranche 1B Start Date and ending on the Tranche 1B End Date in the aggregate amount of up to Fifteen Million Dollars ($15,000,000).

  “Tranche 1B Commitment” means, as to any Lender, subject to the terms and conditions set forth in the Loan and Security Agreement and this Supplement, the obligation of such Lender, if any, to make Growth Capital Loans to the Borrower beginning on the Tranche 1B Start Date to be funded on or before the Tranche 1B End Date, subject to the conditions in Section 1(b) of Part 2 in a principal amount not to exceed the amount set forth under the heading Tranche 1B opposite such Lender’s name on Schedule 1 hereto.

  “Tranche 1B End Date” means December 31, 2022.

  “Tranche 1B Start Date” means October 1, 2022.

  “Warrant” is defined in Part 2, Section 3 hereof.

  Part 2 - Additional Covenants and Conditions:

  1.Growth Capital Loan Facility.  Subject to satisfaction of the conditions precedent specified in Sections 4.1 and Section 4.2 of the Loan and Security Agreement and this Supplement, each Lender agrees to make Growth Capital Loans to Borrower under such Lender’s Commitment from time to time from and after the Closing Date up to 

  3

  

   

  and including the Termination Date in an aggregate, original principal amount up to, but not exceeding, then then-unfunded portion of Lender’s Commitment, as follows:

  (a)Tranche 1A.  Each Lender shall fund its pro rata share of the Tranche 1A Commitment in the amount of Fifteen Million Dollars ($15,000,000) on the Closing Date.

  (b)Tranche 1B. Each Lender shall fund its pro rata share of the Tranche 1B Commitment in the amount of Fifteen Million Dollars ($15,000,000) upon Borrower’s request for a Tranche 1B Loan during the period commencing on the Tranche 1B Start Date and ending on the Tranche 1B End Date in an aggregate, original principal amount up to, but not exceeding, the then-unfunded portion of Lender’s Tranche 1B Commitment.

  (c)Minimum Funding Amount; Maximum Number of Borrowing Requests.  Growth Capital Loans requested by Borrower to be made on a single Business Day shall be for a minimum aggregate, original principal amount of Five Million Dollars ($5,000,000); provided, however, that the initial Growth Capital Loan shall be funded on the Closing Date in a minimum original principal amount of Fifteen Million Dollars ($15,000,000).  Borrower shall not submit a Borrowing Request more frequently than once per calendar month; 

  (d)Repayment of Growth Capital Loans.  Principal of, and interest on, each Growth Capital Loan shall be payable as set forth in a Note evidencing such Growth Capital Loan (substantially in the form attached hereto as Exhibit “A”), which Note shall provide substantially as follows:  principal shall be fully amortized over the Amortization Period in equal, monthly principal installments plus, in each case, unpaid interest thereon at the Designated Rate, commencing after the Interest-only Period of interest-only installments at the Designated Rate.  In particular, on the Borrowing Date applicable to such Growth Capital Loan, Borrower shall pay to Agent (i) if the Borrowing Date is earlier than the Loan Commencement Date, interest only at the Designated Rate, in advance, on the outstanding principal balance of the Growth Capital Loan for the period from the Borrowing Date through the last day of the calendar month in which such Borrowing Date occurs (it being understood that this clause (i) shall not apply in the case the Borrowing Date is on the same date as the Loan Commencement Date), and (ii) the first (1st) interest-only installment at the Designated Rate, in advance, on the outstanding principal balance of the Note evidencing such Loan for the ensuing month.  Commencing on the first day of the second full month after the Borrowing Date and continuing on the first day of each month during the Interest-only Period thereafter, Borrower shall pay to Agent interest only at the Designated Rate, in advance, on the outstanding principal balance of the Loan evidenced by such Note for the ensuing month.  Commencing on the first day of the first full month after the end of the Interest-only Period, and continuing on the first day of each consecutive calendar month thereafter, Borrower shall pay to Agent equal consecutive monthly principal installments in advance in an amount sufficient to fully amortize the Loan evidenced by such Note over the Amortization Period, plus interest at the Designated Rate for such month.  On the Maturity Date, all principal and accrued interest then remaining unpaid and the Final Payment shall be due and payable.

  2.Prepayment.  Borrower may prepay all, but not less than all, outstanding Growth Capital Loans in whole, but not in part, at any time upon no less than five (5) Business Days’ prior written notice to Lenders, by tendering to each Lender a cash payment in respect of such Loans in an amount determined by such Lender equal to the sum of: (i) the aggregate outstanding principal amount of such Loans; (ii) the accrued and unpaid interest on such Loans as of the date of prepayment; (iii) the Prepayment Fee; and (iv) the Final Payment.

  3.Issuance of Warrant.  As additional consideration for the making of the Commitment, each Lender has earned and is entitled to receive immediately upon the execution of the Loan and Security Agreement and this Supplement, a warrant instrument issued by Guarantor (the “Warrant”).  The Warrant shall be in form and substance reasonably satisfactory to the applicable Lender.

  4.Commitment Fee.  Borrower shall pay to each Lender, pro-rata in accordance with each Lender’s respective Commitment, a commitment fee in the amount of one percent (1.00%) of the Thirty Million Dollars ($30,000,000.00) in total Commitment due and payable on the Closing Date, of which One Hundred Fifty Thousand Dollars ($150,000.00) has been paid by Borrower to Agent as an advance deposit prior to the date hereof.  As an additional condition precedent under Section 4.1 of the Loan and Security Agreement, each Lender shall have completed to its satisfaction its due diligence review of Borrower’s business and financial condition and prospects, and such Lender’s pro rata share of the Commitment shall have been approved by its investment committee and each 

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  Lender shall have elected to fund its pro rata share of the Commitment under the Loan and Security Agreement.  If this condition is not satisfied, the One Fifty Hundred Thousand Dollars ($150,000.00) advance deposit previously paid by Borrower shall be refunded.  Except as set forth in this Section 4, the Commitment Fee is not refundable.

  5.Documentation Fee Payment.  On the Closing Date, Borrower shall reimburse each Lender and Agent pursuant to Section 9.8(a) of the Loan and Security Agreement for (i) its reasonable out-of-pocket attorneys’ fees, costs and expenses incurred in connection with the preparation and negotiation of the Loan Documents and (ii) such Lender’s and Agent’s out-of-pocket costs and filing fees related to perfection of its Liens in the Collateral in any jurisdiction in which the same is located, recording a copy of the Intellectual Property Security Agreement with the United States Patent and Trademark Office or the United States Copyright Office, as applicable, and confirming the priority of such Liens.

  6.Borrower’s Primary Operating Account and Wire Transfer Instructions:

  		
	Institution Name:
	 

	Address:
	 

	ABA No.:
	 

	Contact Name:
	 

	Phone No.:
	 

	E-mail:
	 

	Account Title:
	 

	Account No.:
	 

   

  7.Debits to Account for ACH Transfers.  For purposes of Sections 2.2 and 5.10 of the Loan and Security Agreement, the Primary Operating Account shall be the bank account set forth in Section 6 above, unless and until such account is changed in accordance with Section 5.10 of the Loan and Security Agreement.  Borrower hereby agrees that the Growth Capital Loans will be advanced to the account specified above and regularly scheduled payments of principal, interest and fees due to each Lender will be automatically debited by each Lender from the same account.  Borrower hereby confirms that the bank at which the Primary Operating Account is maintained uses that same ABA Number for incoming wires transfers to the Primary Operating Account and outgoing ACH transfers from the Primary Operating Account.

  8.Financial Covenant.  Commencing on the first anniversary of the Closing Date and at all times thereafter when Borrower’s market capitalization is $650,000,000 or less, Borrower shall have at least two (2) drug products utilizing Borrower’s oral delivery technology in clinical development (i.e., has initiated clinical development and remains at a clinical stage of development, regardless of whether a clinical trial is then ongoing), it being understood that RT-102 and RT-109 shall be deemed different drug products.

  9.Tax Matters. 

  (a)The parties to this Agreement intend that the Loans shall be treated as indebtedness for U.S. federal income tax purposes. The “issue price” for each Loan held by each Lender shall be reduced by the fair market value of the associated Warrant acquired by such Lender pursuant to the Loan and Security Agreement in accordance with .Section 1273(c)(2) of the Internal Revenue Code of 1986, as amended (the “Code”), and Treasury Regulations Section 1.1273-2(h). Each party hereto agrees to file all required Tax Returns consistently with the foregoing. 

  (b)Any Lender (including for proposes of this Section 9(b) any successor, assign, or participant) that is entitled to an exemption from or reduction of withholding tax (including, without limitation, any withholding tax imposed under any of Sections 1441 – 1446 of the Code, Sections 1471 – 1474 of the Code, and/or Sections 3401 – 3406 of the Code) under the law of the United States, or an applicable treaty to which such jurisdiction is a party, with respect to payments under the Loans or any other Loan Document shall deliver to the Borrower and the Agent (or, in the case of a participation, to the participating Lender), at the time or times prescribed by applicable law and at 

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  any times reasonably requested by the Borrower or the Agent, such properly completed and executed documentation prescribed by applicable law or reasonably requested by the Borrower or the Agent as will permit such payments to be made without withholding or at a reduced rate. In addition, any Lender, if reasonably requested by the Borrower or the Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Agent as will enable the Borrower or the Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Without limiting the generality of the foregoing, on or prior to the Closing Date and on or prior to any other date that a Person becomes a Lender hereunder or a Loan is transferred or assigned (and from time to time thereafter upon the reasonable request of the Borrower),

  (i)Each Lender that is a “United States person” as defined in Section 7701(a)(30) of the Code shall provide the Company with a duly completed and executed United States Internal Revenue Service (“IRS”) Form W-9; and

  (ii)Each Lender that is not such a “United States person” (a “Foreign Lender”) shall provide the Company with a duly completed and executed original of the appropriate version of IRS Form W-8 (which in the case of a Foreign Lender providing an IRS Form W-8IMY, shall be accompanied by a duly completed and executed original IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, or IRS Form W-9, as applicable) from each of the Foreign Lender’s beneficial owners), and if the Foreign Lender is claiming the benefit of the exemption for portfolio interest under Section 881(c) of the Code, a customary certificate as to the Foreign Lender (or its beneficial owners) eligibility that is reasonably satisfactory to the Borrower and Agent. 

  Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Agent in writing of its legal inability to do so.

   

  (c)The Agent, acting solely for this purpose as a non-fiduciary agent of the Borrower, shall maintain at one of its offices in the United Sates, a register for the recordation of the names and addresses of the applicable Lenders, and the applicable Commitments of, and principal amounts (and stated interest) of the applicable Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Agent, and the applicable Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

   

  Part 3 - Additional Representations:

  Borrower represents and warrants that as of the Closing Date and, subject to any written updates of the information set forth below by Borrower to each Lender and Agent, each Borrowing Date: 

  a)Its chief executive office is located at: 2051 Ringwood Ave, San Jose, CA 95131

  b)Its Equipment is located at:  2051 Ringwood Ave, San Jose, CA 95131, 518 Sycamore Drive, Milpitas, CA 95035 and 12500 Network Blvd, Suite 112, San Antonio, TX 78249

  c)Its Inventory is located at:  [Borrower has no inventory]

  d)Its Records are located at: 2051 Ringwood Ave, San Jose, CA 95131

  e)In addition to its chief executive office, Borrower maintains offices or operates its business at the following locations:  518 Sycamore Drive, Milpitas, CA 95035 and 12500 Network Blvd, Suite 112, San Antonio, TX 78249

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  f)Other than its full corporate name, Borrower has conducted business using the following trade names or fictitious business names:  N/A

  g)Its state identification number is:  ___________ (CA ID)

  h)Its U.S. federal tax identification number is: ___________

  i)Including Borrower’s Primary Operating Account identified in Section 6 above, Borrower maintains the following Deposit Accounts and investment accounts:

  		
	Institution Name:
	 

	Address:
	 

	ABA No.:
	 

	Contact Name:
	 

	Phone No.:
	 

	E-mail:
	 

	Account Title:
	 

	Account No.:
	 

   

  		
	Institution Name:
	 

	Address:
	 

	ABA No.:
	 

	Contact Name:
	 

	Phone No.:
	 

	E-mail:
	 

	Account Title:
	 

	Account No.:
	 

   

  		
	Institution Name:
	 

	Address:
	 

	ABA No.:
	 

	Contact Name:
	 

	Phone No.:
	 

	E-mail:
	 

	Account Title:
	 

	Account No.:
	 

   

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	Institution Name:
	 

	Address:
	 

	ABA No.:
	 

	Contact Name:
	 

	Phone No.:
	 

	E-mail:
	 

	Account Title:
	 

	Account No.:
	 

   

  Part 4 - Additional Loan Documents:

   

  		
	Form of Promissory Note
	Exhibit “A”

	Form of Borrowing Request
	Exhibit “B”

	Form of Compliance Certificate
	Exhibit “C”

	 
	 

	Lender Commitments
	Schedule 1

   

   

   

   

  [Remainder of this page intentionally left blank; signature page follows]

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  [Signature page to Supplement to Loan and Security Agreement]

   

   

  IN WITNESS WHEREOF, the parties have executed this Supplement as of the date first above written.

   

  				
	 
	BORROWER:

	 
	 
	 
	 

	 
	RANI THERAPEUTICS, LLC

	 
	 
	 
	 

	 
	By:
	 
	/s/ Svai Sanford

	 
	Name:
	 
	Svai Sanford

	 
	Title:
	 
	Chief Financial Officer

	 
	 

	Address for Notices:
	2051 Ringwood Ave

	 
	San Jose, CA 95131

	 
	Attn:
	 
	Svai Sanford, CFO

	 
	Email:
	 
	 

	 
	Phone #
	 
	 

   

   

  				
	 
	GUARANTOR:

	 
	 
	 
	 

	 
	RANI THERAPEUTICS HOLDINGS, INC.

	 
	 
	 
	 

	 
	By:
	 
	 

	 
	Name:
	 
	Svai Sanford

	 
	Title:
	 
	Chief Financial Officer

	 
	 

	Address for Notices:
	2051 Ringwood Ave

	 
	San Jose, CA 95131

	 
	Email:
	 
	 

	 
	Phone #
	 
	 

	 
	Phone #
	 
	 

   

   

  				
	 
	RANI MANAGEMENT SERVICES, INC.

	 
	 
	 
	 

	 
	By:
	 
	/s/ Svai Sanford

	 
	Name:
	 
	Svai Sanford

	 
	Title:
	 
	Chief Financial Officer

	 
	 

	Address for Notices:
	2051 Ringwood Ave

	 
	San Jose, CA 95131

	 
	Email:
	 
	 

	 
	Phone #
	 
	 

	 
	Phone #
	 
	 

   

   

  

   

  [Signature page to Supplement to Loan and Security Agreement—continued]

   

   

  				
	 
	AGENT:

	 
	 

	 
	AVENUE VENTURE OPPORTUNITIES FUND, L.P.

	 
	 
	 
	 

	 
	By:
	 
	Avenue Venture Opportunities Partners, LLC

	 
	Its:
	 
	General Partner

	 
	 
	 
	 

	 
	By:
	 
	/s/ Sonia Gardner

	 
	Name:
	 
	Sonia Gardner

	 
	Title:
	 
	Member

	 
	 
	 
	 

	Address for Notices:
	11 West 42nd Street, 9th Floor

	 
	New York, New York 10036

	 
	Attn:
	 
	Todd Greenbarg, Senior Managing Director

	 
	Email:
	 
	 

	 
	Phone:
	 
	 

   

   

  				
	 
	LENDER:

	 
	 

	 
	AVENUE VENTURE OPPORTUNITIES FUND, L.P.

	 
	 
	 
	 

	 
	By:
	 
	Avenue Venture Opportunities Partners, LLC

	 
	Its:
	 
	General Partner

	 
	 
	 
	 

	 
	By:
	 
	/s/ Sonia Gardner

	 
	Name:
	 
	Sonia Gardner

	 
	Title:
	 
	Member

	 
	 
	 
	 

	Address for Notices:
	11 West 42nd Street, 9th Floor

	 
	New York, New York 10036

	 
	Attn:
	 
	Todd Greenbarg, Senior Managing Director

	 
	Email:
	 
	  

	 
	Phone:
	 
	 

   

   

  

   

  EXHIBIT “A”

   

  FORM OF PROMISSORY NOTE

  	 

  					
	 
	 
	 
	 
	[Note No. X‐XXX]

	$
	 
	 
	 
	 

	 
	 
	 
	 
	[________], 20__

   

  The undersigned (“Borrower”) promises to pay to ________________ (“Lender”), at such place as Lender may designate in writing, in lawful money of the United States of America, the principal sum of ______________________________ Dollars ($__________), with interest thereon from the date hereof until maturity, whether scheduled or accelerated, at a variable rate per annum equal to the greater of (i) ten and thirty-five one hundredths percent (10.35%) and (ii) the Prime Rate plus the sum of five and six-tenths percent (5.60%) (the “Designated Rate”), according to the payment schedule described herein, except as otherwise provided herein.  In addition, on the Maturity Date, the Borrower promises to pay to the order of Lender (i) all principal and accrued interest then remaining unpaid and (ii) the Final Payment (as defined in the Supplement to the Loan Agreement (as defined herein)).

  This Note is one of the Notes referred to in, and is entitled to all the benefits of, a Loan and Security Agreement, dated as of August 8, 2022, among Borrower, Lender, the other lender party(ies) thereto and Agent (as the same may be amended, restated or supplemented from time to time, the “Loan Agreement”).  Each capitalized term not otherwise defined herein shall have the meaning set forth in the Loan Agreement.  The Loan Agreement contains provisions for the acceleration of the maturity of this Note upon the happening of certain stated events.

  Principal of and interest on this Note shall be payable as provided under Section 1(d) of Part 2 of the Supplement to the Loan Agreement.

  This Note was issued with “original issue discount” within the meeting of Sections 1272, 1273 and 1275 of the Internal Revenue Code of 1986, as amended, and the rules and regulations thereunder. Please contact [Chief Financial Officer], Rani Therapeutics, LLC, 2051 Ringwood Ave., San Jose, CA 95131, [telephone number], to obtain information regarding issue price, the amount of original issue discount and the yield to maturity. 

  This Note may be prepaid only as permitted under Section 2 of Part 2 of the Supplement to the Loan Agreement.

  Any unpaid payments of principal or interest on this Note shall bear interest from their respective maturities, whether scheduled or accelerated, at a rate per annum equal to the Default Rate, compounded monthly.  Borrower shall pay such interest on demand.

  Interest, charges and fees shall be calculated for actual days elapsed on the basis of a 360‐day year, which results in higher interest, charge or fee payments than if a 365‐day year were used.  In no event shall Borrower be obligated to pay interest, charges or fees at a rate in excess of the highest rate permitted by applicable law from time to time in effect.

  If Borrower is late in making any scheduled payment under this Note by more than five (5) days, Borrower agrees to pay a “late charge” of five percent (5%) of the installment due, but not less than fifty dollars ($50) for any one such delinquent payment.  This late charge may be charged by Lender for the purpose of defraying the expenses incidental to the handling of such delinquent amounts.  Borrower acknowledges that such late charge represents a reasonable sum considering all of the circumstances existing on the date of this Note and represents a fair and reasonable estimate of the costs that will be sustained by Lender due to the failure of Borrower to make timely payments.  Borrower further agrees that proof of actual damages would be costly and inconvenient.  Such late charge shall be paid without prejudice to the right of Lender to collect any other amounts provided to be paid or to declare a default under this Note or any of the other Loan Documents or from exercising any other rights and remedies of Lender.

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  [Signature page to Promissory Note]

  This Note shall be governed by, and construed in accordance with, the laws of the State of California, excluding those laws that direct the application of the laws of another jurisdiction.

  Borrower’s execution and delivery of this Note via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) shall constitute effective execution and delivery of this Note and agreement to and acceptance of the terms hereof for all purposes.  The fact that this Note is executed, signed, stored or delivered electronically shall not prevent the assignment or transfer by Lender of this Note pursuant to the terms of the Loan Agreement or the enforcement of the terms hereof.  Physical possession of the original of this Note or any paper copy thereof shall confer no special status to the bearer thereof.  In no event shall an original ink-signed paper copy of this Note be required for any exercise of Lender’s rights hereunder.

   

  				
	RANI THERAPEUTICS, LLC

	 

	By:
	 
	 
	 

	Name:
	 
	 
	 

	Its:
	 
	 
	 

   

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  EXHIBIT “B”

   

  FORM OF BORROWING REQUEST

   

   

  [__], 202__

   

   

  		
	Avenue Venture Opportunities Fund, L.P.
11 West 42nd Street, 9th Floor
New York, New York 10036
 
	 

   

   

  		
	Re:
	RANI THERAPEUTICS, LLC

   

   

  Ladies and Gentlemen:

   

  Reference is made to the Loan and Security Agreement, dated as of August 8, 2022 (as amended, restated or supplemented from time to time, the “Loan Agreement”; the capitalized terms used herein as defined therein), among AVENUE VENTURE OPPORTUNITIES FUND, L.P., as administrative agent and collateral agent (“Agent”), and as a lender (in such capacity, and together with other lenders from time to time party to the Loan Agreement, collectively, “Lenders”, and each a “Lender”).

  The undersigned is the ____________________ of Borrower and hereby requests on behalf of Borrower a Loan under the Loan Agreement, and in that connection certifies as follows:

  1.The amount of the proposed Loan is _______________________ Dollars ($_________________).  The Borrowing Date of the proposed Loan is ___________________ (the “Borrowing Date”).

  (a)On the Borrowing Date, 

  (i) Lender will wire $[_________] less fees and expenses to be deducted on the Borrowing Date of (a) [$___] in respect to the Commitment Fee, of which [$___] has been paid to Lender prior to the date hereof, (b) $[_________] in respect to the interest fee, and (c) $[_________] in respect to the legal fees for net proceeds of $[___________].

  to Borrower pursuant to the following wire instructions: 

  1

  

   

  		
	Institution Name:
	 

	Address:
	 

	ABA No.:
	 

	Contact Name:
	 

	Phone No.:
	 

	E-mail:
	 

	Account Title:
	 

	Account No.:
	 

   

  (b)On the Borrowing Date, Lender will wire $[__________] to GCA Law Partners LLP for fees and expenses pursuant to the following wire instructions:1

  		
	Institution Name:
	 

	ABA No.:
	 

	Account Title:
	 

	Account No.:
	 

	Reference:
	 

	Confirm remittance:
	 

   

  2.As of this date, no Default or Event of Default has occurred and is continuing, or will result from the making of the proposed Loan, the representations and warranties of Borrower contained in Article 3 of the Loan Agreement and Part 3 of the Supplement are true and correct in all material respects other than those representations and warranties expressly referring to a specific date which are true and correct in all material respects as of such date, and the conditions precedent described in Sections 4.1 and/or 4.2 of the Loan Agreement and Part 2 of the Supplement, as applicable, have been met.

  3.No event has occurred that has had or could reasonably be expected to have a Material Adverse Change.

  4.Borrower’s most recent financial statements, financial projections or business plan dated ____________, as reviewed by Borrower’s Board of Directors, are enclosed herewith in the event such financial statements, financial projections or business plan have not been previously provided to Agent.

  Remainder of this page intentionally left blank; signature page follows

   

  1 To be included in the Borrowing Request on the Closing Date.  The executed Borrowing Request must be delivered 2 Business Days prior to the Closing Date.

  2

  

   

  [Signature page to Borrowing Request]

   

  Borrower shall notify you promptly before the funding of the Loan if any of the matters to which I have certified above shall not be true and correct on the Borrowing Date.

   

  		
	Very truly yours,

	 

	RANI THERAPEUTICS, LLC

	 

	By:
	 

	Its:
	 

	 

	By:
	 

	Name:
	 

	Title:*
	 

   

  * Must be executed by Borrower’s Chief Financial Officer or other executive officer.

   

  

   

  EXHIBIT “C”

   

  FORM OF

  COMPLIANCE CERTIFICATE

   

  		
	Avenue Venture Opportunities Fund, L.P.
11 West 42nd Street, 9th Floor
New York, New York 10036
 
	 

   

  		
	Re:
	RANI THERAPEUTICS, LLC

   

  Ladies and Gentlemen:

   

  Reference is made to the Loan and Security Agreement, dated as of August 8, 2022 (as the same has been and may be supplemented, amended and modified from time to time, the “Loan Agreement,” the capitalized terms used herein as defined therein), among AVENUE VENTURE OPPORTUNITIES FUND, L.P., as administrative agent and collateral agent (“Agent”), and as a lender (in such capacity, and together with other lenders from time to time party to the Loan Agreement, collectively, “Lenders”, and each a “Lender”), and RANI THERAPEUTICS, LLC (“Borrower”), RANI THERAPEUTICS HOLDINGS, INC., as a guarantor, and RANI MANAGEMENT SERVICES, INC. (collectively, with Rani Therapeutics Holdings, Inc., “Guarantors”, and each a “Guarantor”).

  The undersigned authorized representative of Borrower and Guarantors hereby certifies in such capacity that in accordance with the terms and conditions of the Loan Agreement, (i) no Default or Event of Default has occurred and is continuing, except as noted below, and (ii) Borrower is in compliance for the financial reporting period ending ____________________________ with all required financial reporting under the Loan Agreement, except as noted below.  Attached herewith are the required documents supporting the foregoing certification.  The undersigned authorized representative of Borrower further certifies in such capacity that: (a) the accompanying financial statements have been prepared in accordance with Borrower’s and Guarantors’ past practices applied on a consistent basis, or in such manner as otherwise disclosed in writing to Agent, throughout the periods indicated; and (b) the financial statements fairly present in all material respects the financial condition and operating results of Borrower, Guarantors and their Subsidiaries, if any, as of the dates, and for the periods, indicated therein, subject to the absence of footnotes and normal year-end audit adjustments (in the case of interim monthly financial statements), except as explained below.

  Please provide the following requested information and

  indicate compliance status by circling (or otherwise indicating) Yes/No/N/A under “Included/Complies”:

   

  			
	REPORTING REQUIREMENT
	REQUIRED
	INCLUDED/COMPLIES

  		 

  			
	Balance Sheet, Income Statement & Cash Flow Statement
	Monthly, within 30 days
	YES / NO / N/A

  	 

  			
	Operating Budgets, 409(A) Valuations & Updated Capitalization Tables
	As modified
	YES / NO / N/A

	 
	 
	 

	Annual Financial Statements
	Annually, within 120 day of fiscal year-end
	YES / NO / N/A

	 
	 
	 

	Board Packages
	As modified
	YES / NO / N/A

   

  1

  

   

  				
	Date of most recent Board-approved 
	 

	 
	budget/plan 
	 

    

  			
	Any change in budget/plan since version most recently delivered to Agent
	YES / NO / N/A

	 
	If Yes, please attach
	 

   

  				
	FINANCIAL COVENANT
	 
	REQUIRED  ACTUAL
	INCLUDED/COMPLIES

	Number of Drug Products in clinical development (commencing on first anniversary of Closing Date)
	2
	 
	YES / NO / N/A

   

  EQUITY & CONVERTIBLE NOTE FINANCINGS

   

  Please provide the following information (if applicable) regarding Borrower’s most-recent equity and/or convertible note financing each time this Certificate is delivered to Agent

   

  		
	Date of Last Round Raised:
	 

   

  Has there been any new financing since the last Compliance Certificate submitted?	YES / NO

  If “YES” please attach a copy of the Capitalization Table

   

  								
	Date Closed:
	 
	 
	 Series:
	 
	 
	Per Share Price: $
	 

	Amount Raised:
	 
	 
	 

   

  		
	Any stock splits since date of last report? 
	YES / NO

	If yes, please provide any information on stock splits which would affect valuation:
	 

	 

   

  		
	Any dividends since date of last report?
	YES / NO

	If yes, please provide any information on dividends which would affect valuation:
	 

	 

    

  		
	Any unusual terms?  (i.e., Anti-dilution, multiple preference, etc.)
	YES / NO

	If yes, please explain:
	 

	 

   

   ACCOUNT CONTROL AGREEMENTS

  Pursuant to Section 6.11 of the Loan Agreement, Borrower represents and warrants that: (i) as of the date hereof, it maintains only those deposit and investment accounts set forth below; and (ii) to the extent required by Section 6.11 of the Loan Agreement, a control agreement has been executed and delivered to Agent with respect to each such account [Note: If Borrower has established any new account(s) since the date of the last compliance certificate, please so indicate].

   

  Deposit Accounts2

  							
	 
	Name of Institution
	 
	Account Number
	Control Agt. 
In place?  
	Complies
	New 
Account

	1.)
	Silicon Valley Bank
	 
	3303743034 
	YES / NO
	YES / NO
	YES / NO

	2.)
	 
	 
	 
	YES / NO
	YES / NO
	YES / NO

   

   

  2 Company: Please complete with existing accounts.

  2

  

   

  Investment Accounts

  							
	 
	Name of Institution
	 
	Account Number
	Control Agt. 
In place?  
	Complies
	New 
Account

	1.)
	Silicon Valley Bank
	 
	19-SV2186
	YES / NO
	YES / NO
	YES / NO

	2.) 
	 
	 
	 
	YES / NO
	YES / NO
	YES / NO

	3.)
	 
	 
	 
	YES / NO
	YES / NO
	YES / NO

	4.)
	 
	 
	 
	YES / NO
	YES / NO
	YES / NO

   

  AGREEMENTS WITH PERSONS IN POSSESSION OF TANGIBLE COLLATERAL

   

  Pursuant to Section 5.9(e) of the Loan Agreement, Borrower represents and warrants that: (i) as of the date hereof, tangible Collateral is located at the addresses set forth below; and (ii) to the extent required by Section 5.9(e) of the Loan Agreement, a Waiver has been executed and delivered to Agent, or such Waiver has been waived by Agent, [Note: If Borrower has located Collateral at any new location since the date of the last compliance certificate, please so indicate].

   

  							
	 
	Location of Collateral
	Value of Collateral at such 
Locations
	Waiver 
In place?  
	Complies?
	New 
Location?

	1.)
	2051 Ringwood, San Jose, CA
	$
	 
	YES / NO
	YES / NO
	YES / NO

	2.) 
	518 Sycamore, Milpitas, CA
	$
	 
	YES / NO
	YES / NO
	YES / NO

	3.)
	12500 Network, Suite 112, San Antonio, TX
	$
	 
	YES / NO
	YES / NO
	YES / NO

	4.)
	 
	$
	 
	YES / NO
	YES / NO
	YES / NO

   

  SUBSIDIARIES AND OTHER PERSONS

  Pursuant to Section 6.14(a) of the Loan Agreement, Borrower represents and warrants that: (i) as of the date hereof, it has directly or indirectly acquired or created, or it intends to directly or indirectly acquire or create, each Subsidiary or other Person described below; and (ii) such Subsidiary or Person has been made a co-borrower under the Loan Agreement or a guarantor of the Obligations [Note: If Borrower has acquired or created any Subsidiary since the date of the last compliance certificate, please so indicate].

   

  							
	 
	Name: 
	 
	Jurisdiction of 
formation or organization:3
	Co-borrower 
or guarantor?  
	Complies?
	New 
Subsidiary 
or Person?

	1.)
	 
	 
	 
	YES / NO
	YES / NO
	YES / NO

	2.) 
	 
	 
	 
	YES / NO
	YES / NO
	YES / NO

	3.)
	 
	 
	 
	YES / NO
	YES / NO
	YES / NO

	4.)
	 
	 
	 
	YES / NO
	YES / NO
	YES / NO

   

  EXPLANATIONS

   

  	
	 

	 

	 

	 

   

  [Remainder of this page intentionally left blank; signature page follows]

   

  3 Under the “Explanations” heading (see below) please include a description of such Subsidiary’s or Person’s fully diluted capitalization and Borrower’s purpose for its acquisition or creation of such Subsidiary if such information has not been previously furnished to Agent.

  3

  

   

   

  [Signature page to Compliance Certificate]

   

   

  			
	Very truly yours,

	 

	RANI THERAPEUTICS, LLC

	 

	By:
	 
	 

	Its:
	 
	 

	 
	 
	 

	 
	 
	 

	By:
	 
	 

	Name:
	 
	 

	Title:*
	 
	 

   

   

   

   

   

   

   

   

   

   

   

   

  * Must be executed by Borrower’s Chief Financial Officer or other executive officer.

   

  

   

  SCHEDULE 1

  LENDER COMMITMENTS

   

   

  TRANCHE 1A COMMITMENTS

   

   

  			
	Lenders
 
	Tranche 1A Commitment
	Tranche 1A Commitment Percentage
 

	Avenue Venture Opportunities Fund, L.P.
 
	$15,000,000
	100%

	 
	 
	 

	TOTAL COMMITMENTS
	$15,000,000
	100%

   

   

  TRANCHE 1B COMMITMENTS

   

   

  			
	Lenders
 
	Tranche 1B Commitment
	Tranche 1B Commitment Percentage
 

	Avenue Venture Opportunities Fund, L.P.
 
	$___
	__%

	[Lender]
 
	$___
	__%

	[Lender]
 
	$___
	__%

	 
	 
	 

	TOTAL COMMITMENTS
	$15,000,000
	100%EX-10.3

   

  Exhibit 10.3

  THIS WARRANT AND THE UNDERLYING SECURITIES REPRESENTED BY THIS WARRANT HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE AND DISTRIBUTION THEREOF, AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF (A) REGISTRATION UNDER THE SECURITIES ACT, (B) AN OPINION OF COUNSEL IN A FORM REASONABLY ACCEPTABLE TO RANI THERAPEUTICS HOLDINGS, INC. THAT SUCH REGISTRATION IS NOT REQUIRED DUE TO AN EXEMPTION THEREFROM UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR (C) RANI THERAPEUTICS HOLDINGS, INC. OTHERWISE SATISFIES ITSELF THAT SUCH TRANSACTION IS COMPLIANT WITH SUCH LAWS.

   

  Date of Issuance:  August 8, 2022

  WARRANT TO PURCHASE

   

  SHARES OF CLASS A COMMON STOCK OF

   

  RANI THERAPEUTICS HOLDINGS, INC.

   

   

  (Void after August 8, 2027)

  This certifies that AVENUE VENTURE OPPORTUNITIES FUND, L.P., a Delaware limited partnership, or its permitted assigns (“Holder”), for value received and subject to the terms and conditions hereinafter set forth, is entitled to purchase from RANI THERAPEUTICS HOLDINGS, INC. a Delaware corporation (“Company”), the Applicable Number (hereinafter defined) of fully paid and nonassessable shares of the Company’s Class A common stock, par value $0.0001 per share (the “Common Stock”), for cash, at a purchase price per share equal to the Stock Purchase Price (hereinafter defined).  Holder may also exercise this Warrant on a cashless or “net issuance” basis as described in Section 1(b) below, and this Warrant shall be deemed to have been exercised in full on such basis on the Expiration Date (hereinafter defined), to the extent not fully exercised prior to such date and pursuant to Section 1(b) below.  For the avoidance of doubt, Company can settle the exercise of this Warrant in unregistered shares of the Common Stock.  This Warrant is issued in connection with that certain Loan and Security Agreement and Supplement thereto, both of even date herewith (as amended, restated and supplemented from time to time, the “Loan Agreement” and the “Supplement”, respectively), among Company, as a guarantor, Rani Therapeutics, LLC, a California limited liability company, as borrower, Rani Management Services, Inc., as a guarantor, Holder, as a lender, and as administrative agent and collateral agent.  Capitalized terms used herein and not otherwise defined in this Warrant shall have the meaning(s) ascribed to them in the Loan Agreement and the Supplement, unless the context would otherwise require.

  “Applicable Number” means 76,336 shares of Common Stock.

  “Stock Purchase Price” means $11.79 per share of Common Stock.  Subject to Sections 4.3 and 4.8, this Warrant may be exercised at any time or from time to time up to and including 5:00 p.m. (Pacific time) on August 8, 2027 (the “Expiration Date”), upon surrender to Company at its principal office at 2051 Ringwood Avenue, San Jose, CA 95131 (or at such other location as Company may advise Holder in writing) of this Warrant properly endorsed with the Form of Subscription attached hereto duly completed and signed and upon payment in cash or by check of the aggregate Stock Purchase Price for the number of shares for which this Warrant is being exercised determined in 

  	 

  

   

  accordance with the provisions hereof.  The Stock Purchase Price and the number of shares purchasable hereunder are subject to further adjustment as provided in Section 4 of this Warrant.

  This Warrant is subject to the following terms and conditions:

  1.Exercise; Issuance of Certificates; Payment for Shares.

  (a)Unless an election is made pursuant to clause (b) of this Section 1, this Warrant shall be exercisable at the option of Holder, at any time or from time to time, on or before the Expiration Date for all or any portion of the shares of Common Stock (but not for a fraction of a share) which may be purchased hereunder for the Stock Purchase Price multiplied by the number of shares to be purchased. Company agrees that the shares of Common Stock purchased under this Warrant shall be and are deemed to be issued to Holder as the record owner of such shares as of the close of business on the date on which the form of subscription shall have been delivered and payment made for such shares. Subject to the provisions of Section 2, shares of Common Stock so purchased shall be delivered in either book-entry or certificated form, together with any other securities or property to which Holder is entitled upon such exercise, to Holder by Company at Company’s expense within a reasonable time after the rights represented by this Warrant have been so exercised.  Except as provided in clause (b) of this Section 1, in case of a purchase of less than all the shares which may be purchased under this Warrant, Company shall cancel this Warrant and execute and deliver a new Warrant or Warrants of like tenor for the balance of the shares purchasable under this Warrant surrendered upon such purchase to Holder within a reasonable time.  If the Common Stock is delivered in certificated form, each stock certificate so delivered shall be in such denominations of Common Stock as may be requested by Holder and shall be registered in the name of such Holder or such other name as shall be designated by such Holder, subject to the limitations contained in Section 2.

  (b)Holder, in lieu of exercising this Warrant by the cash payment of the Stock Purchase Price pursuant to clause (a) of this Section 1, may elect, at any time on or before the Expiration Date, to surrender this Warrant and receive that number of shares of Common Stock computed using the following formula:

   

   

  			
	Where:  X
	=
	the number of shares of Common Stock to be issued to Holder.

	 
	 
	 

	Y
	=
	the number of shares of Common Stock that Holder would otherwise have been entitled to purchase hereunder pursuant to Section 1(a) (or such lesser number of shares as Holder may designate in the case of a partial exercise of this Warrant).

	 
	 
	 

	A
	=
	the closing price on the last trading day prior to exercise of the Warrant.

	 
	 
	 

	B
	=
	the Stock Purchase Price then in effect.

   

  Election to exercise under this Section 1(b) may be made by delivering a signed form of subscription to Company via facsimile, to be followed by delivery of this Warrant.  Notwithstanding anything to the contrary contained in this Warrant, if as of the close of business on the last business day preceding the Expiration Date this Warrant remains unexercised as to all or a portion of the shares of Common Stock purchasable hereunder, then effective as 9:00 a.m.  (Pacific time) on the Expiration Date, Holder shall be deemed, automatically and without need for notice to Company, to have elected to exercise this Warrant in full pursuant to the provisions of this Section 1(b), and upon surrender of this Warrant shall be entitled to receive that number of shares of Common Stock computed using the above formula, provided that the application of such formula as of the Expiration Date yields a positive number for “X”.

  2

  

   

  2.Limitation on Transfer.

  (a)This Warrant and the Common Stock shall not be transferable except upon the conditions specified in this Section 2, which conditions are intended to ensure compliance with the provisions of the Securities Act of 1933, as amended (the “Securities Act”).  Each holder of this Warrant or the Common Stock issuable hereunder will cause any proposed transferee of the Warrant or Common Stock to agree to take and hold such securities subject to the provisions and upon the conditions specified in this Section 2.  Notwithstanding the foregoing and any other provision of this Section 2 but subject to the last sentence of Section 2(c), Holder may freely transfer all or part of this Warrant or the shares issuable upon exercise of this Warrant (or the securities issuable, directly or indirectly, upon conversion of the shares, if any) at any time to any affiliate of a lender under the Loan Agreement, by giving Company notice of the portion of the Warrant being transferred setting forth the name, address and taxpayer identification number of the transferee and surrendering this Warrant to Company for reissuance to the transferees(s) (and Holder, if applicable).

  (b)Each certificate representing (i) this Warrant, (ii) the Common Stock (or applicable balance account at the Company’s transfer agent), and (iii) any other securities issued in respect to the Common Stock issued upon any stock split, stock dividend, recapitalization, merger, consolidation or similar event, shall (unless otherwise permitted by the provisions of this Section 2 or unless such securities have been registered under the Securities Act or sold under Rule 144) be stamped or otherwise imprinted with a legend substantially in the following form (in addition to any legend required under applicable state securities laws):

  THE SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE AND DISTRIBUTION THEREOF.  NEITHER THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH ANY OF THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS.  SUCH SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF (A) REGISTRATION UNDER THE SECURITIES ACT, (B) AN OPINION OF COUNSEL IN A FORM REASONABLY ACCEPTABLE TO COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED DUE TO AN EXEMPTION THEREFROM UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR (C) RANI THERAPEUTICS HOLDINGS, INC. OTHERWISE SATISFIES ITSELF THAT SUCH TRANSACTION IS COMPLIANT WITH SUCH LAWS.

  (c)Holder of this Warrant and each person to whom this Warrant is subsequently transferred represents and warrants to Company and agrees (by acceptance of such transfer) that it will not transfer this Warrant (or securities issuable upon exercise hereof unless a registration statement under the Securities Act was in effect with respect to such securities at the time of issuance thereof) unless (i) there is an effective registration statement under the Securities Act and applicable state securities laws covering any such transaction, (ii) pursuant to Rule 144 under the Securities Act (or any other rule under the Securities Act relating to the disposition of securities), (iii) Company receives an opinion of counsel, reasonably satisfactory to Company, that an exemption from such registration is available or (iv) the Company otherwise satisfies itself that such transaction is exempt from registration.  Notwithstanding the foregoing or any other provision of this Section 2, Holder shall not transfer this Warrant (or securities issuable upon exercise hereof, or securities issuable, directly or indirectly, upon conversion of such securities, if any) to any competitor of Company, as determined in good faith by the Board of Directors of Company (the “Board”), without the prior written consent of Company.

  3.Shares to be Fully Paid; Reservation of Shares. Company covenants and agrees that all shares of Common Stock which may be issued upon the exercise of the rights represented by this Warrant will, upon issuance, be duly authorized, validly issued, fully paid and nonassessable and free from all preemptive rights of any stockholder and free of all taxes, liens and charges with respect to the issue thereof (except that such shares of Common Stock will be subject to the transfer restrictions provided for herein and except for any tax imposed on Holder with respect to the gain on the exercise of the Warrant).  Company further covenants and agrees that during the period within which the rights represented by this Warrant may be exercised, Company will at all times have authorized and reserved, for the 

  3

  

   

  purpose of issue or transfer upon exercise of the subscription rights evidenced by this Warrant, a sufficient number of shares of authorized but unissued Common Stock, or other securities and property, when and as required to provide for the exercise of the rights represented by this Warrant.  Company will take all such action as may be necessary to assure that such shares of Common Stock may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of any domestic securities exchange upon which the Common Stock may be listed.  Company will not take any action which would result in any adjustment of the Stock Purchase Price (as described in Section 4 hereof) (i) if the total number of shares of Common Stock issuable after such action upon exercise of all outstanding warrants, together with all shares of Common Stock then outstanding and all shares of Common Stock then issuable upon exercise of all options and upon the conversion of all convertible securities then outstanding, would exceed the total number of shares of Common Stock then authorized by Company’s Certificate of Incorporation (as amended and restated from time to time, the “Charter”) or (ii) if the par value per share of the Common Stock would exceed the Stock Purchase Price.

  4.Adjustment of Stock Purchase Price and Number of Shares.  The Stock Purchase Price and the number of shares purchasable upon the exercise of this Warrant shall be subject to adjustment from time to time upon the occurrence of certain events described in this Section 4.  Upon each adjustment of the Stock Purchase Price, Holder of this Warrant shall thereafter be entitled to purchase, at the Stock Purchase Price resulting from such adjustment, the number of shares obtained by multiplying the Stock Purchase Price in effect immediately prior to such adjustment by the number of shares purchasable pursuant hereto immediately prior to such adjustment, and dividing the product thereof by the Stock Purchase Price resulting from such adjustment.

  4.1Subdivision or Combination of Stock.  In case Company shall at any time subdivide its outstanding shares of Common Stock into a greater number of shares, the Stock Purchase Price in effect immediately prior to such subdivision shall be proportionately reduced, and conversely, in case the outstanding shares of Common Stock of Company shall be combined into a smaller number of shares, the Stock Purchase Price in effect immediately prior to such combination shall be proportionately increased.

  4.2Dividends.  If at any time or from time to time the holders of Common Stock (or any shares of stock or other securities at the time receivable upon the exercise of this Warrant) shall have received or become entitled to receive,

  (a)Common Stock, or any shares of stock or other securities whether or not such securities are at any time directly or indirectly convertible into or exchangeable for Common Stock, 

  (b)any cash paid or payable including as a cash dividend, or

  (c)Common Stock or other or additional stock or other securities or property (including cash) by way of spin off, split-up, reclassification, combination of shares or similar corporate rearrangement, (other than shares of Common Stock issued as a stock split, adjustments in respect of which shall be covered by the terms of Section 4.1 above), 

  then and in each such case, Holder hereof shall, upon the exercise of this Warrant, be entitled to receive, in addition to the number of shares of Common Stock receivable thereupon, and without payment of any additional consideration therefor, the amount of stock and other securities and property (including cash in the cases referred to in clauses (b) and (c) above) which such Holder would hold on the date of such exercise had it been the holder of record of such Common Stock as of the date on which holders of Common Stock received or became entitled to receive such shares and/or all other additional stock and other securities and property.

  4.3Change of Control. In the event of a Change of Control (as hereinafter defined), this Warrant shall be automatically exchanged for a number of shares of Company’s securities, such number of shares being equal to the maximum number of shares issuable pursuant to the terms hereof (after taking into account all adjustments described herein) had Holder elected to exercise this Warrant immediately prior to the closing of such Change of 

  4

  

   

  Control and purchased all such shares pursuant to the cashless exercise provision set forth in Section 1(b) hereof.  “Change of Control” shall mean any sale, exclusive license (outside of the ordinary course), or other disposition of all or substantially all of the assets of Company, any reorganization, consolidation, merger or other transaction involving Company where the holders of Company’s securities before the transaction beneficially own less than 50% of the outstanding voting securities of the surviving entity after the transaction; provided that an issuance of equity securities for the primary purpose of raising capital shall not be considered a Change of Control under this Warrant.  This Warrant shall terminate upon Holder’s receipt of the number of shares of Company’s equity securities described in this Section 4.3.

  4.4Reserved. 

  4.5Notice of Adjustment.  Upon any adjustment of the Stock Purchase Price, and/or any increase or decrease in the number of shares purchasable upon the exercise of this Warrant, Company shall give written notice thereof to Holder pursuant to Section 12.  The notice, which may be substantially in the form of Exhibit “A” attached hereto, shall be signed by an authorized representative of Company and shall state the Stock Purchase Price resulting from such adjustment and the increase or decrease, if any, in the number of shares purchasable at such price upon the exercise of this Warrant, setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based.

  4.6Other Notices.  If at any time:

  (a)Company shall declare any cash dividend upon its Common Stock;

  (b)Company shall declare any dividend upon its Common Stock payable in stock or make any special dividend or other distribution to the holders of its Common Stock;

  (c)there shall be any capital reorganization or reclassification of the capital stock of Company, or consolidation or merger of Company with, or sale of all or substantially all of its assets to, another entity; 

  (d)there shall be a voluntary or involuntary dissolution, liquidation or winding-up of Company; or

  (e)Company shall take or propose to take any other action, notice of which is actually provided to holders of the Common Stock;

  then, in any one or more of said cases, Company shall give Holder, pursuant to Section 12, (i) at least 10 days’ prior written notice of the date on which the books of Company shall close or a record shall be taken for such dividend, distribution or for determining rights to vote in respect of any such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding-up, or other action and (ii) in the case of any such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding-up, or other action, at least 10 days’ written notice of the date when the same shall take place.  Any notice given in accordance with the foregoing clause (i) shall also specify, in the case of any such dividend or distribution rights, the date on which the holders of Common Stock shall be entitled thereto.  Any notice given in accordance with the foregoing clause (ii) shall also specify the date on which the holders of Common Stock shall be entitled to exchange their Common Stock for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding-up, or other action as the case may be.

  4.7Reserved.

  4.8Holder’s Exercise Limitations.  The Company shall not be required to effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 1 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable notice of 

  5

  

   

  exercise, the Holder (together with the Holder’s Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, the Conversion Option set forth in the Supplement) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties.  Except as set forth in the preceding sentence, for purposes of this Section 4.8, beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith.  To the extent that the limitation contained in this Section 4.8  applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a notice of exercise shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination.   In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.  For purposes of this Section 4.8, in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the SEC, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the transfer agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral request of a Holder, the Company shall within one trading day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates or Attribution Parties since the date as of which such number of outstanding shares of Common Stock was reported.  The “Beneficial Ownership Limitation” shall be 4.99% (or, upon written election by Holder which is delivered to the Company prior to the issuance of any Common Stock to such Holder, 9.99%) of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant.  The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 4.8, provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section 4.8 shall continue to apply.  Any increase in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company.  The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 4.8 to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

  5.Issue Tax.  The issuance of certificates for shares of Common Stock upon the exercise of this Warrant shall be made without charge to Holder of this Warrant for any issue tax in respect thereof; provided, however, that Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of any certificate in a name other than that of the then Holder of this Warrant being exercised, and Holder shall pay any tax imposed on holder with respect to any gain on the exercise of the Warrant.

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  6.Closing of Books.   Company will at no time close its transfer books, or instruct its transfer agent to close the Company’s transfer books, against the transfer of this Warrant or of any shares of Common Stock issued or issuable upon the exercise of this Warrant in any manner which interferes with the timely exercise of this Warrant unless Company or its transfer agent is at the same time closing the Company’s transfer books for all Common Stock.

  7.No Voting Rights; Limitation of Liability.  Nothing contained in this Warrant shall be construed as conferring upon Holder hereof the right to vote or to consent as a stockholder in respect of meetings of stockholders for the election of directors of Company or any other matters or any rights whatsoever as a stockholder of Company.  No dividends or interest shall be payable in respect of this Warrant or the interest represented hereby or the shares purchasable hereunder until, and only to the extent that, this Warrant shall have been exercised; provided, however, that if any dividends are due or paid at any time on the underlying securities for which this Warrant is exercisable, then upon exercise, the securities issued to Holder shall be deemed to have accrued dividends and be paid identical dividends from the same time as the outstanding shares for which this Warrant is exercisable were first issued (or, if later, the date of this Warrant).  No provisions hereof, in the absence of affirmative action by Holder to purchase shares of Common Stock, and no mere enumeration herein of the rights or privileges of Holder hereof, shall give rise to any liability of such Holder for the Stock Purchase Price or as a stockholder of Company, whether such liability is asserted by Company or by its creditors.

  8.Reserved.  

  9.Rights and Obligations Survive Exercise of Warrant.  The rights and obligations of Company, of Holder of this Warrant and of the holder of shares of Common Stock issued upon exercise of this Warrant, contained in Sections 6, 17.4, 17.7 and 18 shall survive the exercise of this Warrant.

  10.Modification and Waiver.  This Warrant and any provision hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by Company and the Holder.

  11.Notices.  Any notice, request or other document required or permitted to be given or delivered to Holder or Company shall be deemed to have been given (i) upon receipt if delivered personally or by courier, (ii) upon confirmation of receipt if by telecopy or (iii) three business days after deposit in the US mail, with postage prepaid and certified or registered, to each such Holder at its address as shown on the books of Company or to Company at the address indicated therefor in the opening paragraphs of this Warrant (or at such other location as Company may advise Holder in writing) and Attention: Chief Financial Officer.

  12.Survival of Certain Obligations.    All of the covenants and agreements of Company shall inure to the benefit of and be binding upon the successors and permitted assigns of Holder.  Company will, at the time of the exercise of this Warrant, in whole or in part, upon request of Holder but at Company’s expense, acknowledge in writing its continuing obligation to Holder in respect of any rights to which Holder shall continue to be entitled after such exercise in accordance with this Warrant; provided, that the failure of Holder to make any such request shall not affect the continuing obligation of Company to Holder in respect of such rights.

  13.Descriptive Headings and Governing Law.  The descriptive headings of the several sections and paragraphs of this Warrant are inserted for convenience only and do not constitute a part of this Warrant.  This Warrant shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the laws of the State of Delaware.

   

   

  14.Lost or Rejected Warrants or Stock Certificates.  Company agrees that upon receipt of evidence reasonably satisfactory to Company and its transfer agent of the loss, theft, destruction, or mutilation of any Warrant or stock certificate and, upon receipt by the Company of (i) an affidavit of that fact by the person so claiming such loss, theft, destruction or mutilation, (ii) an indemnity or surety bond in such form and amount as is reasonably 

  7

  

   

  satisfactory to Company  and its transfer agent and (iii) such other documents reasonably requested by the Company or its transfer agent, the Company at its expense will make and deliver a new Warrant or stock certificate, of like tenor, in lieu of the lost, stolen, destroyed or mutilated Warrant or stock certificate. If at any time the electronic original of this Warrant is rejected by any person (including, but not limited to, paying or escrow agents) or any person fails to comply with the terms of this Warrant based on being presented to such person as an electronic record or a printout hereof, or any signature hereto being in electronic form, Company shall, promptly upon Holder’s request and without indemnity, execute and deliver to Holder, in lieu of the electronic original version of this Warrant, a new warrant of like tenor and amount in paper form with original ink signatures; provided that the second, third, fourth, fifth and sixth sentences of Section 18 (Counterparts; Facsimile; Electronic Signatures) will be deleted from such new warrant.  

  15.Fractional Shares.  No fractional shares shall be issued upon exercise of this Warrant.  Company shall, in lieu of issuing any fractional share, pay the holder entitled to such fraction a sum in cash equal to such fraction multiplied by the then effective Stock Purchase Price.

  16.Representations of Holder.  With respect to this Warrant, Holder represents and warrants to Company as follows:

  16.1Experience.  It is experienced in evaluating and investing in companies engaged in businesses similar to that of Company;  it understands that investment in this Warrant involves substantial risks; it has made detailed inquiries concerning Company, its business and services, its officers and its personnel; the officers of Company have made available to Holder any and all written information it has requested; the officers of Company have answered to Holder’s satisfaction all inquiries made by it; in making this investment it has relied upon information made available to it by Company; and it has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of investment in Company and it is able to bear the economic risk of that investment.

  16.2Investment.  It is acquiring this Warrant for investment for its own account and not with a view to, or for resale in connection with, any distribution thereof.  It understands that this Warrant and the shares of Common Stock issuable upon exercise of this Warrant, have not been registered under the Securities Act, nor qualified under applicable state securities laws.

  16.3Rule 144.  It acknowledges that this Warrant and the Common Stock issuable upon exercise of this Warrant must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration is available.  It has been advised or is aware of the provisions of Rule 144 promulgated under the Securities Act.

  16.4Access to Data.  It has had an opportunity to discuss Company’s business, management and financial affairs with Company’s management and has had the opportunity to inspect Company’s facilities.

  16.5Accredited Investor. It is an “accredited investor” within the meaning of Regulation D promulgated under the Securities Act.

  17.Additional Representations and Covenants of Company.  Company hereby represents, warrants and agrees as follows:

  17.1Corporate Power.  Company has all requisite corporate power and corporate authority to issue this Warrant and to carry out and perform its obligations hereunder.

  17.2Authorization.  All corporate action on the part of Company, its directors and stockholders necessary for the authorization, execution, delivery and performance by Company of this Warrant has been taken.  This Warrant is a valid and binding obligation of Company, enforceable in accordance with its terms.

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  17.3Offering.  Subject in part to the truth and accuracy of Holder’s representations set forth in Section 17 hereof, the offer, issuance and sale of this Warrant is, and the Common Stock issuable upon exercise of this Warrant will be, exempt from the registration requirements of the Securities Act, and are exempt from the qualification requirements of any applicable state securities laws; and neither Company nor anyone acting on its behalf will take any action hereafter that would cause the loss of such exemptions.

  17.4Listing; Stock Issuance.  Company shall use commercially reasonable efforts to secure and maintain the listing of the Common Stock or other securities issuable upon exercise of this Warrant, upon each securities exchange or over-the-counter market upon which securities of the same class or series issued by Company are listed, if any.  Upon exercise of this Warrant, Company will use commercially reasonable efforts to cause the issuance of the shares of Common Stock purchased pursuant to the exercise to be issued in book-entry form in the names of Holder, its nominees or assignees, as appropriate at the time of such exercise.  

  17.5Charter Documents.  Company has provided Holder with true and complete copies of Company’s Charter, Bylaws, as amended, or other charter document setting, forth any rights, preferences and privileges of Company’s capital stock, each as amended and in effect on the date of issuance of this Warrant.

  17.6Reserved.  

  17.7Rule 144 Compliance.	Company shall, at all times prior to the earliest to occur of (x) the date of sale or other disposition by Holder of this Warrant or all shares of Common Stock issuable upon exercise of this Warrant, or (y) the expiration or earlier termination of this Warrant if the Warrant has not been exercised in full or in part on such date, use all commercially reasonable efforts to timely file all reports required under the Exchange Act and otherwise timely take all actions necessary to permit the Holder to sell or otherwise dispose of this Warrant and the shares of Common Stock issued on exercise hereof pursuant to Rule 144 promulgated under the Act as amended and in effect from time to time.  If the Holder proposes to sell Common Stock issuable upon the exercise of this Agreement in compliance with Rule 144, then, upon Holder’s written request to the Company, Company shall furnish to the Holder, within five (5) business days after receipt of such request, a written statement confirming Company’s compliance with the filing and other requirements of such rule.

  18.Counterparts; Facsimile; Electronic Signatures.  This Warrant may be executed in two or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, Uniform Electronic Transactions Act or other applicable law) or other transmission method and any counterpart so delivered will be deemed to have been duly and validly delivered and be valid and effective for all purposes. The fact that this Warrant is executed, signed, stored or delivered electronically shall not prevent the transfer by any Holder of this Warrant pursuant to Section 2 or the enforcement of the terms hereof.  The electronic original of this Warrant, and any copies hereof, shall NOT be deemed to be a “certificated security” within the meaning of Section 8102(a)(4) of the California Commercial Code.  Physical possession of the original of this Warrant or any paper copy thereof shall confer no special status to the bearer thereof.  In no event shall an original ink-signed paper copy of this Warrant be required for any exercise of Holder’s rights hereunder, nor shall this Warrant or any physical copy hereof be required to by physically surrendered at the time of any exercise hereof.

  [Remainder of this page intentionally left blank; signature page follows]

  9

  

   

  [Signature Page to Warrant]

   

  IN WITNESS WHEREOF, Company has caused this Warrant to be duly executed by its officer, thereunto duly authorized as of the date of issuance set forth on the first page hereof.

   

   

  		
	RANI THERAPEUTICS HOLDINGS, INC.

	 
	 

	By:
	 

	Name:
	Svai Sanford

	Title:
	Chief Financial Officer

   

   

  

   

  [Signature Page to Warrant]

   

  		
	AGREED AND ACCEPTED:

	 
	 

	HOLDER:

	 
	 

	AVENUE VENTURE OPPORTUNITIES FUND, L.P.

	 
	 

	By:
	Avenue Venture Opportunities Partners, LLC

	Its:
	General Partner

	 
	 

	 
	 

	By:
	 

	Name:
	Sonia Gardner

	Title:
	Member

   

  	 

   

   

  

   

  FORM OF SUBSCRIPTION

  (To be signed only upon exercise of Warrant)

  To:	RANI THERAPEUTICS HOLDINGS, INC.

   

  •The undersigned, the holder of the within Warrant, hereby irrevocably elects to exercise the purchase right represented by such Warrant for, and to purchase thereunder, (1) ________________ (_____) shares1 (the “Shares”) of Class A common stock, par value $0.0001 per share, of Rani Therapeutics Holdings, Inc. and herewith makes payment of _____________ Dollars ($________) therefor, and requests that the certificates for such shares be issued in the name of, and delivered to, _________, whose address is ___________.

  •The undersigned hereby elects to convert ______ percent (__%) of the value of the Warrant pursuant to the provisions of Section 1(b) of the Warrant.

  The undersigned acknowledges that it has reviewed the representations and warranties contained in Section 17 of this Warrant and by its signature below hereby makes such representations and warranties to Company. 

   

  			
	Dated
	 
	 

	Holder:
	 
	 

	By:
	 
	 

	Its:
	 
	 

   

  	
	(Address)

	 

	 

   

   

  1 Insert here the number of shares called for on the face of the Warrant (or, in the case of a partial exercise, the portion thereof as to which the Warrant is being exercised), in either case without making any adjustment for additional Common Stock or any other stock or other securities or property or cash which, pursuant to the adjustment provisions of the Warrant, may be issuable upon exercise.

   

  

   

  ASSIGNMENT

  Pursuant to the terms of this Warrant, this Warrant (or securities issuable upon exercise hereof, or securities issuable, directly or indirectly, upon conversion of such securities, if any) may not be transferred any competitor of Company, as determined in good faith by the Board, without the prior written consent of Company.

  FOR VALUE RECEIVED, the undersigned, the holder of the within Warrant, hereby sells, assigns and transfers all of the rights of the undersigned under the within Warrant, with respect to the number of shares of Common Stock covered thereby set forth herein below, unto:

   

  			
	Name of Assignee
	Address
	No. of Shares

   

   

   

   

   

   

   

  			
	Dated
	 
	 

	 
	 
	 

	Holder:
	 
	 

	 
	 
	 

	By:
	 
	 

	 
	 
	 

	Its:
	 
	 

   

   

  

   

  EXHIBIT “A”

  [On letterhead of Company]

   

  Reference is hereby made to that certain Warrant, dated August 8, 2022, issued by RANI THERAPEUTICS HOLDINGS, INC., a Delaware corporation (the “Company”), to AVENUE VENTURE OPPORTUNITIES FUND, L.P., a Delaware limited partnership (the “Holder”).  

  Notice is hereby given pursuant to Section 4.5 of the Warrant that the following adjustment(s) have been made to the Warrant:  [describe adjustments, setting forth details regarding method of calculation and facts upon which calculation is based].

  This certifies that, subject to the terms and conditions of the Warrant, the Holder is entitled to purchase from Company, at the Holder’s option,  either (i) (____________) fully paid and nonassessable shares of Company’s _________ Stock at a price of _________________________ Dollars ($__________) per share or (ii) (____________) fully paid and nonassessable shares of Company’s _________ Stock at a price of _________________________ Dollars ($__________) per share.  The applicable Stock Purchase Price and the number of shares purchasable under the Warrant remain subject to adjustment as provided in Section 4 of the Warrant.

   

  Executed this ___ day of ________________, 20___.

   

  				
	RANI THERAPEUTICS HOLDINGS, INC.
	  

	  
	  
	  
	  

	By:  
	  
	  
	  

	  
	  
	  
	  

	Name:  
	  
	  
	  

	  
	  
	  
	  

	Title:

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