Document:

Amended and Restated Royalty Agreement

 Exhibit 10.2 
 AMENDED AND RESTATED ROYALTY AGREEMENT 
 This AMENDED AND
RESTATED ROYALTY AGREEMENT (this “Agreement”), dated November 14, 2011, is made by and between Deerfield Private Design Fund II, L.P., a Delaware limited partnership (“Design Fund II”), Deerfield
Special Situations Fund, L.P., a Delaware limited partnership (“DSS”), Horizon Santé TTNP SARL, a Luxembourg limited company (“Horizon” and together with Design Fund II and DSS,
“Deerfield”) and Titan Pharmaceuticals, Inc., a Delaware corporation (“Titan”). 

Background Statement 
 Whereas, the Parties (including Horizon as assignee of Deerfield TTNP Corporation) previously entered into a Royalty Agreement dated March 15, 2011 (the “Original Agreement”);

 Whereas, pursuant to the Worldwide License Agreement between Hoechst Marion Roussel, Inc. (“Sanofi”) and
Titan, having an effective date of December 31, 1996, as amended by one amendment dated April 26, 2004 (as amended, the “Sanofi License”), Titan is the exclusive worldwide licensee of certain intellectual property relating
to the pharmaceutical compound Iloperidone; 
 Whereas, pursuant to the Sublicense Agreement between Titan and Novartis Pharma
A.G. (“Novartis”), having an effective date of November 20, 1997, as amended by three amendments dated November 30, 1998, April 10, 2001, and June 4, 2004 (as amended, the “Novartis
Sublicense”), Novartis is the exclusive sublicensee of certain of Titan’s rights and obligations under the Sanofi License; 
 Whereas, pursuant to the Amended and Restated Sublicense Agreement between Novartis and Vanda Pharmaceuticals Inc. (“Vanda”), having an effective date of October 12, 2009 (the
“Vanda Sublicence”), Vanda and Novartis have entered into an agreement with respect to the sublicense of certain of Novartis’ rights under the Novartis Sublicense, as well as certain other rights of each of Vanda and Novartis,
as described more fully in the Vanda Sublicense; and 
 Whereas, pursuant to the Original Agreement, Deerfield acquired the
right to receive certain payments in consideration of a one-time payment of $3,000,000 made by Deerfield to Titan; 
 Whereas,
the Parties desire to amend and restate the Original Agreement in its entirety as follows; 
 Now, therefore, in consideration
of the covenants and obligations expressed herein, and intending to be legally bound, Deerfield and Titan agree as follows: 

Statement of Agreement 

1. Definitions. Capitalized terms shall have the meaning set forth in this section. Unless the context requires otherwise, words in the singular
include the plural, words in the plural include the singular, and words importing any gender shall be applicable to all genders. If a term is defined as one part of speech (such as a noun), it shall have a corresponding meaning when used as another
part of speech (such as a verb). 

 (a) “Affiliate” means with respect to any Person, each other Person that
directly or indirectly, through one or more intermediaries, owns or controls, is controlled by or is under common control with, such Person. For the purpose of this Agreement, “control” means the possession, directly or indirectly,
of the power to direct or cause the direction of management and policies, whether through the ownership of voting securities, by contract or otherwise. 
 (b) “Agreement” has the meaning set forth in the introductory paragraph. 
 (c) “Business Day” means any day other than Saturday, Sunday or a day on which banks in the City of New York are authorized or required to be closed. 

(d) “Cash Management Agreement” means that certain Cash Management Agreement dated November 14, 2011 between
Deerfield and Titan, as the same may be amended, modified and supplemented from time to time. 
 (e) “Compound”
has the meaning given such term in the Sanofi License as of the date hereof. 
 (f) “Deerfield” has the meaning
set forth in the introductory paragraph. 
 (g) “Design Fund II” has the meaning set forth in the introductory
paragraph. 
 (h) “DSS” has the meaning set forth in the introductory paragraph. 

(i) “Earnings Report” means, during any period when Titan is obligated to file reports under the provisions of the
Securities Exchange Act of 1934, the Form 10-Q filed by Titan following each of the first three Quarters of its fiscal year and the Form 10-K filed by Titan following the fourth Quarter of its fiscal year, as long as such reports are timely filed.
If such reports are not timely filed, then the “Earnings Report” means the press release, Form 8-K or other form of public communication issued by Titan whereby it reports revenue for such period. 

(j) “Effective Date” has the meaning set forth in Section 3. 

(k) “Facility Agreement” means that Facility Agreement, dated as of March 15, 2011, between Design Fund II, DSS,
Deerfield Special Situations Fund International, Limited, Deerfield Private Design Fund International II, L.P. and Titan, as amended, supplemented and replaced from time to time. 

(l) “Fanapt Intellectual Property” means (i) all inventions, patents, patent applications, trade secrets, know-how,
technical data, laboratory results, clinical results, manufacturing methods, copyrights, trademarks and other data, know-how and intellectual property owned, licensed or controlled by Titan, whenever acquired, that are necessary to develop,
manufacture, have manufactured, use, promote, distribute, import, sell and offer for sale any Fanapt Product and (ii) any “Patents” or “Know-How” not otherwise included in subsection (i) of this definition. 

(m) “Fanapt Products” means all products, including any bulk or finished pharmaceutical composition containing the
Compound, whether as a sole active ingredient or in combination with another active ingredient, and in any formulation, such as would constitute a “Product,” “Depot Product,” or “Compound,” under any definition of such
terms in any License Agreement as of the date hereof and as of any future date, or that practices any valid claim under any unexpired Patent or incorporates any Know-How. 
 (n) “Fanapt Regulatory Rights” means any licenses, permits, approvals, codes, certifications and other authorizations or identifiers granted or required by any Governmental Authority
required to manufacture, have manufactured, use, promote, distribute, import, sell and offer for sale any Fanapt Product. 
 (o)
“Fanapt Rights” means any right, title or interest of Titan or its Affiliates in and to any Fanapt Intellectual Property, Fanapt Products or Fanapt Regulatory Rights, including, without limitation, as acquired or held by Titan
pursuant to any of the License Agreements. 

  
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 (p) “Governmental Authority” means any nation or government, any state or
other political subdivision thereof, any municipal, local, city or county government, and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 

(q) “Horizon” has the meaning set forth in the introductory paragraph. 

(r) “Know-How” means everything that would constitute Know-How as such term is defined in any of the License Agreements.

 (s) “Legal Requirement” means any statute, law, treaty, rule, regulation, guidance, approval, order, decree,
writ, injunction or determination of any Governmental Authority, court or arbitrator of competent jurisdiction; and, with respect to any Person, includes all such Legal Requirements applicable or binding upon such Person, its business or the
ownership or use of any of its assets. 
 (t) “Lien” means any reservations of title, mortgage, claim, lien,
security interest, pledge, hypothecation, escrow, charge, option or other restriction or encumbrance of any kind. 
 (u)
“License Agreements” means the Sanofi License, the Novartis Sublicense and the Vanda Sublicense, in each case as such agreement may be amended or restated from time to time 

(v) “Net Sales” shall be calculated in the manner described in the definition of Net Sales set forth in the Novartis
Sublicense; provided, however, that Net Sales shall include, in addition to sales of Products (as defined in the Novartis Sublicense) by Novartis, all sales of Fanapt Products by Titan or any its Affiliates and all sales by any direct
or indirect assignee or licensee of Titan or any of its Affiliates; provided further, however, that Net Sales shall not include (i) sales of Products in the ROW Territory by Vanda, its Affiliates, assignees or licensees pursuant
to the Vanda Sublicense and (ii) sales of Fanapt Products by Persons other than Titan, Novartis or their Affiliates from which Titan receives, after the date hereof, no economic benefit. For purposes of the preceding sentence, Titan shall be
deemed to receive an economic benefit from the sale of Fanapt Products if (i) such sale is made pursuant to any assignment, license or sublicense of any Fanapt Rights by Titan or any of its Affiliates, and (ii) Titan or any of its
Affiliates receives, after the date hereof, any consideration for such sale or from any such assignment, license or sublicense of Fanapt Rights. 
 (w) “Novartis” has the meaning set forth in the Background Statement. 
 (x) “Novartis Sublicense” has the meaning set forth in the Background Statement. 
 (y) “Party” means either Titan or Deerfield, and “Parties” means both Titan and Deerfield. 
 (z) “Patents” means everything that would constitute Patents as such term is defined in any of the License Agreements. 

(aa) “Paying Agent Agreement” means that certain Paying Agent Agreement dated November 14, 2011 between U.S. Bank,
a National Association, Deerfield Management Company, L.P. (as agent for Deerfield) and Titan, as the same may be amended, modified and supplemented from time to time. 
 (bb) “Person” means any natural person, corporation, limited liability company, partnership, association, trust, organization, Governmental Authority or other legal entity. 

(cc) “Purchase Price” has the meaning set forth in Section 3. 

(dd) “Quarter” means a fiscal quarter of Titan. 

(ee) “ROW Territory” has the meaning set forth in the Vanda Sublicense. 

(ff) “Royalty” has the meaning set forth in Section 2(a). 

  
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 (gg) “Royalty Term” means the period beginning on the Effective Date and
ending December 31, 2019. 
 (hh) “Sanofi” has the meaning set forth in the Background Statement.

 (ii) “Sanofi License” has the meaning set forth in the Background Statement. 

(jj) “Territory” means the world. 
 (kk) “Titan” has the meaning set forth in the introductory paragraph. 
 (ll) “Transfer” means any sale (or any transaction having the effect of a sale), assignment, conveyance of rights, deed of trust, Lien, license, sublicense, seizure or other transfer of
any sort and to any degree, voluntary or involuntary, including by operation of law. 
 (mm) “Vanda” has the
meaning set forth in the Background Statement. 
 (nn) “Vanda Sublicense” has the meaning set forth in the
Background Statement. 
 2. Royalty. 
 (a) Royalty Amount. In consideration of the payment of the Purchase Price by Deerfield to Titan that was made on the Effective Date, Titan shall pay to Deerfield a royalty (the “Royalty”)
equal to 2.5% of Net Sales occurring during the Royalty Term. The Parties acknowledge and agree that Titan currently has a right to receive royalties from Novartis pursuant to the Novartis Sublicense, and it is the intention of Titan and Deerfield
that the transaction contemplated by this Agreement shall constitute a sale of Titan’s right to receive royalties from Novartis pursuant to the Novartis Sublicense in an amount up to the amount of the Royalty, free and clear of all Liens and
rights of others (other than the security interest therein in favor of the Noteholders under and as defined in the Facility Agreement) and it is intended that the beneficial interest in and title to Titan’s right to receive royalties from
Novartis pursuant to the Novartis Sublicense in an amount up to the amount of the Royalty shall not be part of Titan’s bankruptcy estate if a petition by or against Titan is filed under any bankruptcy law. If, notwithstanding such intent, such
transaction is held not to be a sale, Titan hereby confirms the grant of a security interest in the royalties from Novartis pursuant to the Novartis Sublicense and the proceeds thereof pursuant to the Security Agreement, dated as of March 15,
2011, as amended, between Titan and the Noteholders (as defined in the Facility Agreement). Titan also hereby confirms the grant of a security interest in all of the collateral covered by the Security Agreement, dated as of March 15, 2011, as
amended, between Titan and the Noteholders (as defined in the Facility Agreement) to secure payment of the Royalty. 
 (b)
Payment of the Royalty. No later than two Business Days following the later of (i) the date Titan files its Earnings Report for each Quarter of its fiscal year (but in no event later than sixty days following the last day of each of the
first three Quarters and one hundred twenty days following the fourth Quarter of each fiscal year) and (ii) the date of receipt by Titan in immediately available funds of its royalty payment from Novartis for the applicable Quarter, Titan shall
pay to Deerfield the Royalty for such Quarter. On the same day it makes a Royalty payment pursuant to this Section 2(b), Titan shall deliver to Deerfield a written statement showing all Net Sales during such Quarter and Titan’s
computation of the Royalty for such Quarter. All Royalty payments shall be made by wire transfer of immediately available funds to the account previously designated in writing to Titan by Deerfield for each of Design Fund II, DSS and Horizon,
allocated pursuant to Section 2(d), or such new or additional account(s) as Deerfield shall designate in writing to Titan at least five Business Days prior to the date such Royalty payment shall be due. Titan may withhold from any
payment of Royalty withholding taxes that it is required to withhold that are levied upon the Royalty by the United States or any state thereof, provided that Titan shall deliver to Deerfield copies of the filed tax return reporting such payments
and official receipts (or such other evidence of payment reasonably acceptable to Deerfield) evidencing that such payments were in fact received by the applicable Governmental Authority. 

(c) Cash Management Agreement and Paying Agent Agreement. Notwithstanding the foregoing, for so long as Titan has the right to
receive (which right is partially being sold to Deerfield hereunder) any royalty 

  
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payments pursuant to the Novartis Sublicense, Titan shall instruct Novartis to make such payments to the account specified in the Cash Management Agreement and Paying Agent Agreement. Deerfield
(through its agent, Deerfield Management Company, L.P.) shall then be entitled to receive payment of the Royalty due hereunder from such account pursuant to the Cash Management Agreement and Paying Agent Agreement, and Titan shall remain obligated
to pay any portion of the Royalty due hereunder to Deerfield that is not paid to Deerfield pursuant to the Cash Management Agreement and Paying Agent Agreement. The Parties shall sign such joint written instructions as are required under the Cash
Management Agreement and Paying Agent Agreement to give effect to the payment provisions set forth in this Agreement. 
 (d)
Allocation between Design Fund II, DSS and Horizon. Unless otherwise agreed by all Parties, each payment of the Royalty shall be allocated and paid 37.28% to Design Fund II, 7.8% to DSS and 54.92 % to Horizon, in each case rounded to the
nearest cent ($0.01). 
 (e) Royalty Payments Following Termination. The termination of this Agreement, including
termination due to the expiration of the Royalty Term, shall not terminate the obligation of Titan, or its Affiliates, licensees or assignees, to pay any Royalty accrued prior to termination. Upon termination of this Agreement, Deerfield shall have
the right to retain any Royalty already paid by Titan under this Agreement. 
 (f) Delinquent Royalty Payments. Any
Royalty not paid when due shall bear interest at a rate equal to the lower of (i) the highest rate permitted by applicable law, and (ii) one and one-half percent (1.5%) per month, compounded monthly. 

(g) Audit Right. Upon not less than fourteen days’ written notice, Deerfield shall have the right to audit the books and
records of Titan relating to sales or other transactions included in the definition of Net Sales for the purposes of determining the correctness of Titan’s computation and payment of the Royalty. Such audit may not be conducted more than once
in any calendar year and shall be conducted during normal business hours by a national public accounting firm selected by Deerfield at its cost and reasonably acceptable to Titan, provided that such accounting firm enters into a reasonable
confidentiality agreement prior to commencing any such audit. Titan shall provide such accounting firm with access to all pertinent books and records and shall reasonably cooperate with such accounting firm’s efforts to conduct such audits. If
there has been an underpayment of the aggregate Royalty due for the period being audited of more than $25,000, Titan shall reimburse Deerfield for the reasonable out-of-pocket costs (including accountants’ fees) incurred by Deerfield in
connection with such audit. In the event Deerfield claims that any such audit reveals an underpayment of the Royalty, Deerfield will make the audit papers for the relevant period available to Titan. 

3. Purchase Price. As consideration for Titan’s sale and payment of the Royalty, Deerfield paid to Titan a one-time purchase price of
$3,000,000 (the “Purchase Price”) on April 5, 2011 (such date, the “Effective Date”). 
 4. Covenants
of Titan. 
 (a) Net Sales Records. Titan shall keep, or obtain from its sublicensees, complete, true and accurate
books and records of all Net Sales of Fanapt Products. Titan shall, as determined in its good faith business judgment or as reasonably requested by Deerfield, enforce its audit and inspection rights under all of the License Agreements and any other
agreement relating to Fanapt Products to which it is a party or a third-party beneficiary, and shall take all other commercially reasonable steps, in order to compile and maintain such books and records of Net Sales and to ensure such books and
records are reasonably capable of being audited upon Deerfield’s exercise of its rights pursuant to Section 2(g). Titan shall keep such books and records of Net Sales, or cause them to be retained and available for purposes of this
Agreement, for at least two (2) years following the Quarter to which they pertain. 
 (b) Maintenance of Fanapt
Rights. Titan shall not take any action, or fail to take any action or enforce any right, that is intended to, or would have the effect of, reducing Net Sales. 
 (c) Maintenance of Rights Under License Agreements. Without the prior written consent of Deerfield, Titan shall not take any action that would, or fail to take any action if such failure would,
(i) modify, relinquish, diminish or terminate, or provide any Person with the right to modify, relinquish, diminish or terminate, any of Titan’s rights under any of the License Agreements or (ii) modify or terminate, or provide any
Person with the right to modify or terminate, any of the License Agreements. 

  
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 (d) No Transfer Without Consent. For so long as the Facility Agreement is in effect,
Titan shall not Transfer or consent to the Transfer of any portion of its (i) Fanapt Rights or (ii) rights in, under, or to any of the License Agreements (including any right to receive all or any portion of any royalty or other payment
thereunder), without the prior written consent of Deerfield. Following termination or expiration of the Facility Agreement, Titan shall not Transfer or consent to the Transfer of any portion of its (i) Fanapt Rights or (ii) rights in,
under or to any of the License Agreement (including any right to receive all or any portion of any royalty or other payment thereunder) that Titan is obligated to pay to Deerfield, or that is necessary for Titan to receive amounts that, if received,
it would be obligated to pay to Deerfield, without the prior written consent of Deerfield. 
 (e) Liquidated Damages. If
Titan breaches any of Sections 4(c)–(d), Deerfield shall receive, as liquidated damages for such breach, forty million dollars ($40,000,000). Titan and Deerfield agree that, in the event of a breach of any of Sections 4(c)-(d),
actual damages would be impractical to compute and further agree that the damages set forth herein are a reasonable estimate of the damages Deerfield would actually suffer due to such breach. 

(f) Other Covenants. Titan shall promptly furnish to Deerfield copies of all written notices sent or actually received by a member
of senior management of Titan or any of its Affiliates relating to any alleged breach, default, amendment, waiver, or termination under any of the License Agreements. Titan shall, at no cost or expense to Deerfield, take all actions, and refrain
from taking any other actions, necessary to maintain the License Agreements in full force and effect, including, without limitation, promptly fulfilling all of its obligations and enforcing all of its rights under the License Agreements. 

5. Representations and Warranties of Titan. Titan represents and warrants to Deerfield, as of the date hereof, that: 

(a) Organization. Titan is a corporation duly organized, validly existing and in good standing under the laws of the State of
Delaware. Titan has all requisite corporate power and authority to own, lease and operate its properties and to carry on its business as is now being conducted. 
 (b) Authority; Execution; Enforceability. (i) Titan has all requisite corporate power and authority to execute, deliver and perform its obligations under this Agreement, (ii) no consent
of any party, including Sanofi, Novartis or any of their Affiliates, is required for Titan to execute, deliver and perform its obligations under this Agreement, and (iii) the execution and delivery of this Agreement and the performance of all
of its obligations hereunder have been duly authorized by Titan. This Agreement has been duly executed and delivered by Titan and constitutes the legal, valid and binding obligation of Titan, enforceable against Titan in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency, moratorium, reorganization or other laws of general application relating to or affecting creditors’ rights generally. 

(c) Current Effect. (i) The Sanofi License and Novartis Sublicense and (ii) to Titan’s knowledge, the Vanda
Sublicense, are in full force and effect and neither Titan nor, to Titan’s knowledge, any other Person is in breach or default of any obligation thereunder. Titan has not granted any license or sublicense with respect to, or entered into any
other agreement to Transfer or otherwise encumber, its Fanapt Rights other than a security interest therein in favor of Deerfield. To Titan’s knowledge, other than the License Agreements, there is no other license, sublicense or other agreement
that is, or that contains any term, condition or provision which would, if exercised, be reasonably likely to materially reduce or impair Titan’s Fanapt Rights. 
 (d) No Violation. The execution, delivery and performance of this Agreement by Titan, and Titan’s compliance with the terms and conditions hereof, is not prohibited or limited by, and do not
and will not conflict with or result in the breach of or a default under, any provision of the certificate of incorporation, bylaws or other formation documents of Titan, any contract, agreement or instrument binding on or affecting Titan, including
any of the License Agreements, or any Legal Requirement applicable to Titan. 

  
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 (e) Financial Condition. No insolvency proceeding of any character, including,
without limitation, bankruptcy, receivership, reorganization, composition or arrangement with creditors, voluntary or involuntary, has been commenced by or against Titan or any of its assets or properties, nor has any such proceeding been
threatened. Titan does not contemplate and has not taken any action in contemplation of the institution of any such proceeding. 

(f) No Known Infringement or Invalidity. Neither (i) Titan’s possession or exercise of its Fanapt Rights nor
(ii) the License Agreements, including any actions permitted or taken thereunder, violate any Legal Requirement or infringe the valid and enforceable intellectual property rights of any Person. 

6. Termination. This Agreement shall terminate upon expiration of the Royalty Term. Section 2(e) and Section 7 shall
survive the termination of this Agreement. 
 7. General Provisions. 

(a) Independent Contracting Parties. The Parties are not joint venturers, partners, principal and agent, master and servant, or
employer and employee, and have no relationship other than as independent contracting parties. Neither Party shall be a legal representative of the other or have the power to bind or obligate the other in any manner. 

(b) Amendment and Modification. This Agreement may be amended, modified or supplemented only by an instrument in writing signed by
the Party against whom such amendment, modification or supplement is sought to be enforced. 
 (c) Waiver of Compliance;
Consents. The rights and remedies of the Parties are cumulative and not alternative and may be exercised concurrently or separately. No failure or delay by any Party in exercising any right, power or privilege under this Agreement shall operate
as a waiver of such right, power or privilege, and no single or partial exercise of any such right, power or privilege shall preclude any other or further exercise of such right, power or privilege or the exercise of any other right, power or
privilege. To the maximum extent permitted by applicable law, (i) no waiver that may be given by a Party shall be applicable except in the specific instance for which it is given, and (ii) no notice to or demand on one Party shall be
deemed to be a waiver of any obligation of such Party or of the right of the Party giving such notice or demand to take further action without notice or demand as provided in this Agreement. Any consent required or permitted by this Agreement is
binding only if in writing. 
 (d) Notices. All notices, consents, waivers, acceptances, rejections and other
communications hereunder shall be in writing and shall be (i) delivered by hand, (ii) sent by facsimile transmission, or (iii) sent certified mail or by a nationally recognized overnight delivery service, charges prepaid, to the
address set forth below (or such other address for a Party as shall be specified by like notice): 
  

			
	 If to Deerfield, to
	  	Deerfield Management
		  	780 Third Avenue, 37th Floor
		  	New York, New York 10017
		  	Attention: Structured Products
		  	Facsimile: (646) 536-5662
		
	 Copy to:
	  	Robinson, Bradshaw & Hinson, P.A.
		  	101 North Tryon Street, Suite 1900
		  	Charlotte, North Carolina 28246
		  	Attention: Mark O. Henry
		  	Facsimile: (704) 339-3428

  
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	 If to Titan, to:
	  	Titan Pharmaceuticals, Inc.
		  	400 Oyster Point Blvd., Suite 505
		  	South San Francisco, CA 94080
		  	Attention: Chief Executive Officer
		  	Facsimile: (650) 244-4956
		
	 Copy to:
	  	Loeb & Loeb LLP
		  	345 Park Avenue
		  	New York, NY 10154
		  	Attention: Fran Stoller, Esquire
		  	Facsimile: (212) 214-0706

 Each such notice or other communication shall be deemed to have been duly given and to be effective (x) if delivered
by hand, immediately upon delivery if delivered on a Business Day during normal business hours and, if otherwise, on the next Business Day; (y) if sent by facsimile transmission, immediately upon confirmation that such transmission has been
successfully transmitted on a Business Day before or during normal business hours and, if otherwise, on the Business Day following such confirmation, or (z) if sent by certified mail or a nationally recognized overnight delivery service, on the
day of delivery if delivered during normal business hours on a Business Day and, if otherwise, on the first Business Day after delivery. Notices and other communications sent via facsimile must be followed by notice delivered by hand or by certified
mail or overnight delivery service as set forth herein within five Business Days. 
 (e) Publicity. No Party shall issue
any press release or any other form of public disclosure regarding the existence of this Agreement or the terms hereof, or use the name of another Party hereto in any press release or other public disclosure, without the prior written consent of the
other Party, except (i) for a press release announcing the execution of this Agreement, which will be mutually approved by the Parties, (ii) for those disclosures and notifications contemplated by this Agreement or containing information
previously approved for disclosure by the other Party, (iii) as required by any Legal Requirement and solely to the extent necessary to satisfy such Legal Requirement and (iv) as required by the rules of any securities exchange on which
any securities of a Party are traded. 
 (f) No Assignment. This Agreement shall be binding upon and inure to the benefit
of the Parties and their respective successors and permitted assigns. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned or delegated by Titan without Deerfield’s prior written consent.

 (g) Governing Law. The execution, interpretation and performance of this Agreement, and any disputes with respect to
the transactions contemplated by this Agreement, shall be governed by the internal laws and judicial decisions of the State of New York applicable to contracts made and to be performed entirely within the State of New York. 

(h) Severability. If any provision contained in this Agreement shall for any reason be held invalid, illegal or unenforceable in
any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein, unless
the invalidity of any such provision substantially deprives either Party of the practical benefits intended to be conferred by this Agreement. Notwithstanding the foregoing, any provision of this Agreement held invalid, illegal or unenforceable only
in part or degree shall remain in full force and effect to the extent not held invalid or unenforceable, and the determination that any provision of this Agreement is invalid, illegal or unenforceable as applied to particular circumstances shall not
affect the application of such provision to circumstances other than those as to which it is held invalid, illegal or unenforceable. 

  
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 (i) Construction. Each Party acknowledges that it and its attorneys have been given
an equal opportunity to negotiate the terms and conditions of this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party or any similar rule operating against the drafter of an
agreement shall not be applicable to the construction or interpretation of this Agreement. 
 (j) Counterparts. This
Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement may be executed on signature pages exchanged by facsimile, in which
event each Party shall promptly deliver to the other such number of original executed copies as the other Party may reasonably request. 
 (k) Entire Agreement. This Agreement constitutes the entire agreement and understanding of the Parties hereto in respect of the subject matter hereof. This Agreement supersedes all prior agreements
(including the Original Agreement), understandings, promises, representations and statements between the Parties and their representatives with respect to the Royalty contemplated by this Agreement. For purposes of clarification, certain of the
Parties have also entered into that certain Royalty Purchase Agreement dated as of the date hereof, which agreement also relates to royalties on the same products. 
 [Signature Page Follows] 

  
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 IN WITNESS WHEREOF, the Parties have caused this Amended and Restated Royalty
Agreement to be executed by their duly authorized representatives as of the date first set forth above. 
  

			
	DEERFIELD PRIVATE DESIGN FUND II, L.P.
		
	By:	 	Deerfield Capital, L.P., General Partner
	By:	 	J. E. Flynn Capital LLC, General Partner
		
	By:	 	 /s/ David Clark

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

	Name:	 	David J. Clark
	Title:	 	Authorized Signatory
	
	HORIZON SANTÉ TTNP SARL
		
	By:	 	 /s/ Alexis Cazé

	Name:	 	Alexis Cazé
	Title:	 	Manager
		
	By:	 	 /s/ René Beltjens

	Name:	 	René Beltjens
	Title:	 	Manager
	
	TITAN PHARMACEUTICALS, INC.
		
	By:	 	 /s/ Sunil Bhonsle

	Name:	 	Sunil Bhonsle
	Title:	 	PresidentAmended and Restated Royalty Repurchase Agreement

 Exhibit 10.3 
 AMENDED AND RESTATED ROYALTY REPURCHASE AGREEMENT 
 This Amended and Restated Royalty
Repurchase Agreement (this “Agreement”), dated November 14, 2011, is made by and between Deerfield Private Design Fund II, L.P., a Delaware limited partnership (“Design Fund II”), Deerfield Special
Situations Fund, L.P., a Delaware limited partnership (“DSS”), Horizon Santé TTNP SARL, a Luxembourg limited company (“Horizon” and together with Design Fund II and DSS,
“Deerfield”) and Titan Pharmaceuticals, Inc., a Delaware corporation (“Titan”). 

Background Statement 

Deerfield and Titan are parties to an Amended and Restated Royalty Agreement, dated as of the date hereof (the “Royalty Agreement”),
pursuant to which Titan has agreed to pay a Royalty (as defined in the Royalty Agreement) to Deerfield. The parties hereto are entering into this Agreement for the purpose of giving Titan the right to repurchase the Royalty. 

Statement of Agreement 

In consideration of the covenants and obligations expressed herein, and intending to be legally bound, the parties hereto agree as follows: 

1. Definitions. Capitalized terms shall have the meaning set forth in this section. Unless the context requires otherwise, words
in the singular include the plural, words in the plural include the singular, and words importing any gender shall be applicable to all genders. If a term is defined as one part of speech (such as a noun), it shall have a corresponding meaning when
used as another part of speech (such as a verb). 
 “Accrued Royalty” shall mean, as of the Closing Date, the
amount of accrued but unpaid Royalty and other amounts, if any, owed by Titan under the Royalty Agreement. 
 “Business
Day” means any day other than Saturday, Sunday or a day on which banks in the City of New York are authorized or required to be closed. 
 “Closing Date” means the date on which the Estimated Royalty Repurchase Price is paid. 
 “DSSI” means Deerfield Special Situations Fund International, Limited, a British Virgin Islands company limited by shares. 

“Equity Option Agreement” means that certain Equity Option Agreement dated as of the date hereof by and between Deerfield
TTNP Corporation, PDI II, DSSI and Titan. 

 “Estimated Accrued Royalty” means an estimate of the Accrued Royalty
determined as follows: 
  

	 	(i)	for all periods of time for which Titan has publicly disclosed Net Sales or such other data as may be relevant to the computation of the Royalty (“Royalty
Information”), the Estimated Accrued Royalty shall be determined based upon such publicly reported Royalty Information; 

  

	 	(ii)	for all time periods subsequent to the most recent period prior to the Closing Date for which Titan has publicly disclosed Royalty Information (the “Interim
Period”), the Royalty Information shall be deemed to be the same, on an average daily basis, as the most recent complete fiscal quarter prior to the Interim Period for which Titan has publicly disclosed Royalty Information.

 “Estimated Royalty Repurchase Price” means the Royalty Repurchase Price determined using the
Estimated Accrued Royalty. 
 “Interim Period” has the meaning set forth in the definition of Estimated Accrued
Royalty. 
 “Legal Requirement” has the meaning given such term in the Royalty Agreement. 

“Net Sales” has the meaning given such term in the Royalty Agreement. 

“Party” means any one of Design Fund II, DSS, Horizon and Titan, and “Parties” means all of them
collectively. 
 “PDI II” means Deerfield Private Design International, II, L.P., a British Virgin
Islands limited partnership. 
 “Royalty” has the meaning given such term in the Royalty Agreement. 

“Royalty Agreement” has the meaning set forth in the Background Statement. 

“Royalty Information” has the meaning set forth in the definition of Estimated Accrued Royalty. 

“Royalty Repurchase Price” means, as of the Closing Date: 

 

	 	(i)	$40,000,000 plus 

  

	 	(ii)	the Accrued Royalty. 

“Royalty Repurchase Notice” has the meaning set forth in Section 2(b). 

“Royalty Repurchase Right” has the meaning set forth in Section 2(a). 

“Royalty Term” has the meaning given such term in the Royalty Agreement. 

2. Royalty Repurchase Right. 
  

	 	(a)	Grant of Royalty Repurchase Right. At any time prior to the expiration of the Royalty Term, Titan shall have the right (the “Royalty Repurchase
Right”) to repurchase all of Deerfield’s right, title and interest in and to the Royalty under the Royalty Agreement in consideration of paying the Royalty Repurchase Price to Deerfield. 

  
 2 

	 	(b)	Exercise of Royalty Repurchase Right. Titan may exercise the Royalty Repurchase Right by delivering to Deerfield a written notice of exercise (the
“Royalty Repurchase Notice”). 

  

	 	(c)	Closing of the Royalty Repurchase Right. The closing of the Royalty Repurchase Right shall take place thirty (30) days after Deerfield has received the
Royalty Repurchase Notice, or such earlier date as may be agreed upon by Titan and Deerfield. Payment of the Estimated Royalty Repurchase Price shall be made at closing by wire transfer of immediately available funds to an account or accounts
designated by Deerfield prior to such date. Unless otherwise agreed by all Parties, payment of the Estimated Royalty Repurchase Price shall be allocated and paid 37.28% to Design Fund II, 7.8% to DSS and 54.92 % to Horizon, in each case rounded
to the nearest cent ($0.01). 

 3. Determination of Accrued Royalty; Dispute Resolution. 

(a) Determination of Accrued Royalty. Not later than the earlier of (i) seven (7) days following public disclosure of
the Royalty Information and (ii) one hundred twenty (120) days after the Closing Date, Titan shall deliver to Deerfield Titan’s calculation of the Accrued Royalty, including the Royalty Information underlying its calculation. Unless
within fifteen (15) days of the date it receives Titan’s calculation of the Accrued Royalty Deerfield shall have notified Titan in writing that it disagrees with such calculation, the Accrued Royalty calculated by Titan shall constitute
the Accrued Royalty and shall be used to determine the Royalty Repurchase Price. If Deerfield timely delivers a written notice of disagreement with Titan’s calculation of the Accrued Royalty, Deerfield and Titan shall, during the ten
(10) day period following such notice of disagreement, negotiate in good faith in an effort to agree on the amount of the Accrued Royalty. If at the end of such ten (10) day period Titan and Deerfield shall have been unable to reach
agreement, the dispute shall be resolved in accordance with Section 3(b). 
 (b) Dispute Resolution by
Independent Accounting Firm. If any dispute is referred, in accordance with this Agreement, for resolution pursuant to this Section 3(b), Titan shall promptly engage an independent accounting firm with national recognition that does
not and has not performed any services for Titan and is reasonably acceptable to Deerfield to determine, to the extent disputed, the Royalty Repurchase Price. If Titan fails to engage an accounting firm within fifteen (15) days after a dispute
has become subject to resolution under this Section 3(b) (other than due to Deerfield unreasonably rejecting an independent accounting firm selected by Titan), then Deerfield may engage an independent accounting firm with national
recognition that does not and has not performed any services for Deerfield. The accounting firm so engaged shall make its own determination of the disputed Royalty Repurchase Price and communicate such determination to each of Titan and Deerfield in
writing, together with a report describing in reasonable detail the procedures used and assumptions relied upon in making such determination. Such determination shall be binding on Titan and Deerfield. The costs of the accounting firm shall be paid
50% by Titan and 50% by Deerfield. 

  
 3 

 4. Final Payment. Within ten (10) days after the earlier to occur of
(i) Titan and Deerfield agreeing upon the amount of the Royalty Repurchase Price and (ii) the accounting firm’s determination pursuant to Section 3(b) of the Royalty Repurchase Price, (A) Deerfield shall pay to Titan
the amount by which the Estimated Royalty Repurchase Price exceeds the Royalty Repurchase Price or (B) Titan shall pay to Deerfield (in the percentages set forth in Section 2(c)) the amount by which the Royalty Repurchase Price
exceeds the Estimated Royalty Repurchase Price. Such payment shall be made by wire transfer of immediately available funds to such account(s) as the recipient of any such amounts shall notify the payer thereof in writing prior to payment.

 5. Term and Termination. This Agreement shall terminate upon expiration or termination of the Royalty Agreement.

 6. General Provisions. 
 (a) Independent Contracting Parties. The Parties are not joint venturers, partners, principal and agent, master and servant, or employer and employee, and have no relationship other than as
independent contracting parties. No Party shall be a legal representative of another Party or have the power to bind or obligate another Party in any manner. 
 (b) Amendment and Modification. This Agreement may be amended, modified or supplemented only by an instrument in writing signed by the Party against whom such amendment, modification or supplement
is sought to be enforced. 
 (c) Waiver of Compliance; Consents. The rights and remedies of the Parties are cumulative
and not alternative and may be exercised concurrently or separately. No failure or delay by any Party in exercising any right, power or privilege under this Agreement shall operate as a waiver of such right, power or privilege, and no single or
partial exercise of any such right, power or privilege shall preclude any other or further exercise of such right, power or privilege or the exercise of any other right, power or privilege. To the maximum extent permitted by applicable law,
(i) no waiver that may be given by a Party shall be applicable except in the specific instance for which it is given, and (ii) no notice to or demand on one Party shall be deemed to be a waiver of any obligation of such Party or of the
right of the Party giving such notice or demand to take further action without notice or demand as provided in this Agreement. Any consent required or permitted by this Agreement is binding only if in writing. 

(d) Notices. All notices, consents, waivers, acceptances, rejections and other communications hereunder shall be in writing and
shall be (i) delivered by hand, (ii) sent by facsimile transmission, or (iii) sent certified mail or by a nationally recognized overnight delivery service, charges prepaid, to the address set forth below (or such other address for a
Party as shall be specified by like notice): 
  

					
	                If to Deerfield, to	  	Deerfield Management	  	
		  	780 Third Avenue, 37th Floor	  	
		  	New York, New York 10017	  	
		  	Attention: Structured Products	  	
		  	Facsimile: (212) 599-3075	  	
			
	                Copy to:	  	Robinson, Bradshaw & Hinson, P.A.	  	
		  	101 North Tryon Street, Suite 1900	  	
		  	Charlotte, North Carolina 28246	  	
		  	Attention: Mark O. Henry	  	
		  	Facsimile: (704) 339-3428	  	

  
 4 

					
	                If to Titan, to:	  	Titan Pharmaceuticals, Inc.	  	
		  	400 Oyster Point Blvd., Suite 505	  	
		  	South San Francisco, CA 94080	  	
		  	Attention: Chief Executive Officer	  	
		  	Facsimile: (650) 244-4956	  	
			
	                Copy to:	  	Loeb & Loeb LLP	  	
		  	345 Park Avenue	  	
		  	New York, NY 10154	  	
		  	Attention: Fran Stoller, Esquire	  	
		  	Facsimile: (212) 214-0706	  	

 Each such notice or other communication shall be deemed to have been duly given and to be effective
(x) if delivered by hand, immediately upon delivery if delivered on a Business Day during normal business hours and, if otherwise, on the next Business Day; (y) if sent by facsimile transmission, immediately upon confirmation that such
transmission has been successfully transmitted on a Business Day before or during normal business hours and, if otherwise, on the Business Day following such confirmation, or (z) if sent by certified mail or a nationally recognized overnight
delivery service, on the day of delivery if delivered during normal business hours on a Business Day and, if otherwise, on the first Business Day after delivery. Notices and other communications sent via facsimile must be followed by notice
delivered by hand or by certified mail or overnight delivery service as set forth herein within five Business Days. 
 (e)
Publicity. No Party shall issue any press release or any other form of public disclosure regarding the existence of this Agreement or the terms hereof, or use the name of another Party hereto in any press release or other public disclosure,
without the prior written consent of the other Party, except (i) for a press release announcing the execution of this Agreement, which will be mutually approved by the Parties, (ii) for those disclosures and notifications contemplated by
this Agreement or containing information previously approved for disclosure by the other Party, (iii) as required by any Legal Requirement and solely to the extent necessary to satisfy such Legal Requirement and (iv) as required by the
rules of any securities exchange on which any securities of a Party are traded. 
 (f) No Assignment. This Agreement
shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned or delegated (i) by Titan
without Deerfield’s prior written consent or (ii) by Deerfield without Titan’s prior written consent, such consent not to be unreasonably withheld or delayed. 
 (g) Governing Law. The execution, interpretation and performance of this Agreement, and any disputes with respect to the transactions contemplated by this Agreement, shall be governed by the
internal laws and judicial decisions of the State of New York applicable to contracts made and to be performed entirely within the State of New York. 
 (h) Severability. If any provision contained in this Agreement shall for any reason be held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall
not affect any other provision of this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein, unless the invalidity of any such provision substantially deprives either
Party of the practical benefits intended to be conferred by this Agreement. Notwithstanding the foregoing, any provision of this Agreement held invalid, illegal or unenforceable only in part or degree shall remain in full force and effect to the
extent not held invalid or unenforceable, and the determination that any provision of this Agreement is invalid, illegal or unenforceable as applied to particular circumstances shall not affect the application of such provision to circumstances
other than those as to which it is held invalid, illegal or unenforceable. 

  
 5 

 (i) Construction. Each Party acknowledges that it and its attorneys have been given
an equal opportunity to negotiate the terms and conditions of this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party or any similar rule operating against the drafter of an
agreement shall not be applicable to the construction or interpretation of this Agreement. 
 (j) Counterparts. This
Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement may be executed on signature pages exchanged by facsimile, in which
event each Party shall promptly deliver to the other such number of original executed copies as the other Party may reasonably request. 
 (k) Termination of Equity Option Agreement. The Parties acknowledge and agree that the Equity Option Agreement is terminated and of no further force and effect. 

(l) Entire Agreement. This Agreement constitutes the entire agreement and understanding of the Parties hereto in respect of the
subject matter hereof. This Agreement supersedes all prior agreements, understandings, promises, representations and statements between the Parties and their representatives with respect to the subject matter hereof. 

[Signature Page Follows] 

  
 6 

 IN WITNESS WHEREOF, the Parties have caused this Amended and Restated Royalty
Repurchase Agreement to be executed by their duly authorized representatives as of the date first set forth above. 
  

			
	 DEERFIELD PRIVATE DESIGN FUND II, L.P.

		
	By:	 	Deerfield Capital, L.P., General Partner
	By:	 	J. E. Flynn Capital LLC, General Partner
		
	By:	 	 /s/ David Clark

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

	Name:	 	David J. Clark
	Title:	 	Authorized Signatory
	
	HORIZON SANTÉ TTNP SARL
		
	By:	 	 /s/ Alexis Cazé

	Name:	 	Alexis Cazé
	Title:	 	Manager
		
	By:	 	 /s/ René Beltjens

	Name:	 	René Beltjens
	Title:	 	Manager
	
	TITAN PHARMACEUTICALS, INC.
		
	By:	 	 /s/ Sunil Bhonsle

	Name:	 	Sunil Bhonsle
	Title:	 	President

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