Document:

EXHIBIT 10.3

 

LOAN
AND SECURITY AGREEMENT

 

THIS LOAN AND SECURITY AGREEMENT is made and dated
as of March 10, 2021 and is entered into by and among HUMANIGEN, INC., a Delaware corporation, and each of the Qualified Subsidiaries
(hereinafter collectively referred to as the “Borrower”), the several banks and other financial institutions or entities from
time to time parties to this Agreement (collectively, referred to as the “Lenders”) and HERCULES CAPITAL, INC., a Maryland
corporation, in its capacity as administrative agent and collateral agent for itself and the Lenders (in such capacity, the “Agent”).

 

RECITALS

 

A.          Borrower
has requested the Lenders make available to Borrower a loan in an aggregate principal amount of up to Eighty Million Dollars ($80,000,000)
(the “Term Loan”); and

 

B.           The
Lenders are willing to make the Term Loan on the terms and conditions set forth in this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, Borrower, Agent and the Lenders
agree as follows:

 

SECTION
1. DEFINITIONS AND RULES OF CONSTRUCTION

 

1.1       Unless
otherwise defined herein, the following capitalized terms shall have the following meanings:

 

“Account Control Agreement(s)” means
any agreement entered into by and among the Agent, Borrower and a third party bank or other institution (including a Securities Intermediary)
in which Borrower maintains a Deposit Account or an account holding Investment Property and which perfects Agent’s first priority
security interest in the subject account or accounts.

 

“ACH Authorization” means the ACH Debit
Authorization Agreement in substantially the form of Exhibit H, which account numbers shall be redacted for security purposes if and when
filed publicly by the Borrower.

 

“Acquired Assets” has the meaning set
forth in the MDC Agreement.

 

“Acquisition” means any transaction or
series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the acquisition of all or substantially
all of the assets of a Person, or of any business, line of business or division or other unit of operation of a Person, (b) the acquisition
of fifty percent (50%) or more of the Equity Interests of any Person, whether or not involving a merger, consolidation or similar transaction
with such other Person, or otherwise causing any Person to become a Subsidiary of Borrower, or (c) the acquisition of, or the right to
use, develop or sell (in each case, including through licensing), any product, product line or Intellectual Property of or from any other
Person.

 

“Advance(s)” means a Term Loan Advance.

 

“Advance Date” means the funding date
of any Advance.

 

    	 		 

    	 

    

 

“Advance Request” means a request for
an Advance submitted by Borrower to Agent in substantially the form of Exhibit A, which account numbers shall be redacted for security
purposes if and when filed publicly by the Borrower.

 

“Affiliate” means (a) any Person that
directly or indirectly controls, is controlled by, or is under common control with the Person in question, (b) any Person directly or
indirectly owning, controlling or holding with power to vote twenty percent (20%) or more of the outstanding voting securities of another
Person, (c) any Person twenty percent (20%) or more of whose outstanding voting securities are directly or indirectly owned, controlled
or held by another Person with power to vote such securities, or (d) any Person related by blood or marriage to any Person described in
subsection (a), (b) or (c) of this paragraph. As used in the definition of “Affiliate,” the term “control” means
the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether
through ownership of voting securities, by contract or otherwise.

 

“Agreement” means this Loan and Security
Agreement, as amended from time to time.

 

“Amortization Date” means April 1, 2023;
provided, however, that (i) if the Interest Only Extension Conditions 1 are satisfied, then April 1, 2024 and (ii) if the Interest Only
Extension Conditions 2 are satisfied, then October 1, 2024.

 

“Anti-Corruption Laws” means all laws,
rules, and regulations of any jurisdiction applicable to Borrower or any of its Affiliates from time to time concerning or relating to
bribery or corruption, including without limitation the United States Foreign Corrupt Practices Act of 1977, as amended, the UK Bribery
Act 2010 and other similar legislation in any other jurisdictions.

 

“Anti-Terrorism Laws” means any laws,
rules, regulations or orders relating to terrorism or money laundering, including without limitation Executive Order No. 13224 (effective
September 24, 2001), the USA PATRIOT Act, the laws comprising or implementing the Bank Secrecy Act, and the laws administered by OFAC.

 

“Biologics License Application” means
an application for licensure of a biological product submitted to the FDA under 42 U.S.C. § 262(k) for permission to introduce, or
deliver for introduction, a biologic product into interstate commerce.

 

“BLA Milestone” means that Borrower shall
have received written notice from the FDA indicating that: (a) the FDA has approved Borrower’s Biologics License Application for
the use of lenzilumab for the treatment of hospitalized patients with severe or critical COVID-19 pneumonia, and (b) the FDA-authorized
label for lenzilumab is generally consistent with the label sought in the Borrower’s initial Biologics License Application submission
for the use of lenzilumab in hospitalized COVID-19 patients.

 

“Blocked Person” means any Person: (a)
listed in the annex to, or is otherwise subject to the provisions of, Executive Order No. 13224, (b) a Person owned or controlled by,
or acting for or on behalf of, any Person that is listed in the annex to, or is otherwise subject to the provisions of, Executive Order
No. 13224, (c) a Person with which any Lender is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism
Law, (d) a Person that commits, threatens or conspires to commit or supports “terrorism” as defined in Executive Order No.
13224, or (e) a Person that is named a “specially designated national” or “blocked person” on the most current
list published by OFAC or other similar list.

 

    	 		 

    	 

    

 

“Borrower Products” means all products,
software, service offerings, technical data or technology currently being designed, manufactured or sold by Borrower or which Borrower
intends to sell, license, or distribute in the future including any products or service offerings under development, collectively, together
with all products, software, service offerings, technical data or technology that have been sold, licensed or distributed by Borrower
since its incorporation.

 

“Borrower’s Books” means Borrower’s
or any of its Subsidiaries’ books and records including ledgers, federal, state, local and foreign tax returns, records regarding
Borrower’s or its Subsidiaries’ assets or liabilities, the Collateral, business operations or financial condition, and all
computer programs or storage or any equipment containing such information.

 

“Business Day” means any day other than
Saturday, Sunday and any other day on which banking institutions in the State of California are closed for business.

 

“Capital Raise Milestone” means Borrower
has raised and received at least an amount equal to One Hundred Million Dollars ($100,000,000) in unrestricted (including not subject
to any redemption, clawback, escrow or similar encumbrance or restriction, other than in the case of any Permitted Convertible Debt financing)
net cash proceeds from one or more bona fide equity financings, in each case after the Effective Date and prior to March 31, 2022, subject
to verification by Agent (including supporting documentation reasonably requested by Agent).

 

“Cash” means all cash, cash equivalents
and liquid funds.

 

“CFC” means a “controlled foreign
corporation” as defined in Section 957 of the Code.

 

“Change in Control” means any (x) reorganization,
recapitalization, consolidation or merger (or similar transaction or series of related transactions) of Borrower, sale or exchange of
outstanding shares (or similar transaction or series of related transactions) of Borrower in which the holders of Borrower’s outstanding
shares immediately before consummation of such transaction or series of related transactions do not, immediately after consummation of
such transaction or series of related transactions, retain shares representing more than fifty percent (50%) of the voting power of the
surviving entity of such transaction or series of related transactions (or the parent of such surviving entity if such surviving entity
is wholly owned by such parent), in each case without regard to whether Borrower is the surviving entity or (y) “change of control”,
“fundamental change”, “make-whole fundamental change” or any comparable term under and as defined in any indenture
governing any Permitted Convertible Debt has occurred.

 

“Code” means the United States Internal
Revenue Code of 1986, as amended.

 

“Common Stock” means the Common Stock,
$0.001 par value per share, of the Borrower.

 

“Contingent Obligation” means, as applied
to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to (i) any Indebtedness, lease,
dividend, letter of credit or other obligation of another, including any such obligation directly or indirectly guaranteed, endorsed,
co-made or discounted or sold with recourse by that Person, or in respect of which that Person is otherwise directly or indirectly liable;
(ii) any obligations with respect to undrawn letters of credit, corporate credit cards or merchant services issued for the account of
that Person; and (iii) all obligations arising under any interest rate, currency or commodity swap agreement, interest rate cap agreement,
interest rate collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates,
currency exchange rates or commodity prices; provided, however, that the term “Contingent Obligation” shall not include endorsements
for collection or deposit in the ordinary course of business. The amount of any Contingent Obligation shall be deemed to be an amount
equal to the stated or determined amount of the primary obligation in respect of which such Contingent Obligation is made or, if not stated
or determinable, the maximum reasonably anticipated liability in respect thereof as determined by such Person in good faith; provided,
however, that such amount shall not in any event exceed the maximum amount of the obligations under the guarantee or other support arrangement.
For the avoidance of doubt, no Permitted Bond Hedge Transaction or Permitted Warrant Transaction will be considered a Contingent Obligation
of Borrower.

 

    	 		 

    	 

    

 

“Conversion Election Notice” means a
notice in the form attached hereto as Exhibit G.

 

“Conversion Election Period” means the
period commencing on the Initial Advance Date and ending on the earlier of (a) the three (3) year anniversary of the Initial Advance Date
and (b) the payment in full of the Loans.

 

“Conversion Price” means $19.57, provided
that in the event that on or after the Effective Date, a stock split, stock combination, reclassification, payment of stock dividend,
recapitalization or other similar transaction of such character that the shares of Common Stock shall be changed into or become exchangeable
for a larger or small number of shares is consummated (each, a “Stock Event”), the Conversion Price shall be proportionately
increased or decreased as necessary to reflect the proportionate change in shares of Common Stock issued and outstanding as a result of
such Stock Event.

 

“Copyright License” means any written
agreement granting any right to use any Copyright or Copyright registration, now owned or hereafter acquired by Borrower or in which Borrower
now holds or hereafter acquires any interest.

 

“Copyrights” means all copyrights,
whether registered or unregistered, held pursuant to the laws of the United States of America, any State thereof, or of any other country.

 

“Cross-Default Reference Obligation”
has the meaning assigned to such term in the definition of “Permitted Convertible Debt.”

 

“Deposit Accounts” means any “deposit
accounts,” as such term is defined in the UCC, and includes any checking account, savings account, or certificate of deposit.

 

“Designated Holder” means a Lender or
any Affiliate designated by a Lender in the Conversion Election Notice.

 

“Domestic Subsidiary” means any Subsidiary
organized under the laws of the United States of America, any State thereof, the District of Columbia, or any other jurisdiction within
the United States of America.

 

“Due Diligence Fee” means $45,000, which
fee has been paid to the Lenders prior to the Effective Date, and shall be deemed fully earned on such date regardless of the early termination
of this Agreement.

 

“Effective Date” means the date of this
Agreement.

 

“Equity Interests” means, with respect
to any Person, the capital stock, partnership or limited liability company interest, or other equity securities or equity ownership interests
of such Person.

 

“ERISA” means the Employee Retirement
Income Security Act of 1974, as amended, and the regulations promulgated thereunder.

 

    	 		 

    	 

    

 

“EUA” means emergency use authorization,
granted by the FDA pursuant to 21 U.S.C. § 360bbb-3 to temporarily authorize the marketing of a medical product in the United States.

 

“EUA Milestone 1” means that Borrower
shall have received EUA authorizing the use of lenzilumab for the treatment of hospitalized patients with severe or critical COVID-19
pneumonia.

 

“EUA Milestone 2” means that (a) Borrower
shall have achieved the protocol-specified primary efficacy endpoint for the pivotal Phase 3 study of lenzilumab for COVID-19, clinicaltrials.gov
identifier NCT04351152, and (b) the EUA Milestone 1 shall have been (and shall at the time of the achievement of clause (a) continue to
be) achieved.

 

“Excluded Subsidiary” means any Foreign
Subsidiary (including any dormant Foreign Subsidiary) that (i) has no more than $250,000 in net assets in the aggregate for such Excluded
Subsidiary and, combined with all other Excluded Subsidiaries, has no more than $1,000,000 in net assets in the aggregate and (ii) has
no rights to, and holds no, Intellectual Property other than in connection with licenses to any such Foreign Subsidiary permitted by clause
(ii) of the definition of Permitted Transfers.

 

“Excluded Trade Payables” means trade
credit of Borrower disclosed in Schedule 1A in an aggregate amount not to exceed $2,400,000.

 

“Exploit” and “Exploitation”
have the respective meanings set forth in the MDC Agreement.

 

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

 

“Foreign Subsidiary” means any Subsidiary
other than a Domestic Subsidiary.

 

“Future Assets” has the meaning set forth
in the MDC Agreement.

 

“GAAP” means generally accepted accounting
principles in the United States of America, as in effect from time to time.

 

“Indebtedness” means indebtedness of
any kind, including (a) all indebtedness for borrowed money or the deferred purchase price of property or services (excluding trade credit
entered into in the ordinary course of business (i) due within one hundred twenty (120) days or (ii) in respect of the Excluded Trade
Payables), including reimbursement and other obligations with respect to surety bonds and letters of credit, (b) all obligations evidenced
by notes, bonds, debentures or similar instruments, (c) all capital lease obligations, (d) equity securities of any Person subject to
repurchase or redemption other than at the sole option of such Person, (e) “earnouts”, purchase price adjustments (other than
customary post-closing working capital adjustments), profit sharing arrangements, deferred purchase money amounts and similar payment
obligations or continuing obligations of any nature arising out of purchase and sale contracts, (f) non-contingent obligations to reimburse
any bank or Person in respect of amounts paid under a letter of credit, banker’s acceptance or similar instrument, and (g) all Contingent
Obligations. For the avoidance of doubt no Permitted Warrant Transaction shall be considered Indebtedness of the Borrower.

 

“Initial Advance Date”
means the Advance Date of the Tranche 1 Advance.

 

“Initial Facility Charge”
means Two Hundred Twelve Thousand Five Hundred Dollars ($212,500), which is payable to the Lenders in accordance with Section 4.1(f).

 

    	 		 

    	 

    

 

“Insolvency Proceeding” means any proceeding
by or against any Person under the United States Bankruptcy Code, or any other bankruptcy or insolvency law, including assignments for
the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or
other similar relief.

 

“Intellectual Property” means all of
Borrower’s Copyrights; Trademarks; Patents; Licenses; trade secrets and inventions; mask works; Borrower’s applications therefor
and reissues, extensions, or renewals thereof; and Borrower’s goodwill associated with any of the foregoing, together with Borrower’s
rights to sue for past, present and future infringement of Intellectual Property and the goodwill associated therewith.

 

“Interest Only Extension Conditions 1”
shall mean satisfaction of each of the following events: (a) no default or Event of Default shall have occurred; and (b) the Tranche 2
Advance has been fully drawn.

 

“Interest Only Extension Conditions 2”
shall mean satisfaction of each of the following events: (a) no default or Event of Default shall have occurred; (b) the Tranche 2 Advance
has been fully drawn; and (c) achievement of the BLA Milestone.

 

“Interest Rate Reduction Conditions 1”
shall mean satisfaction of each of the following events: (a) no default or Event of Default shall have occurred; and (b) achievement of
EUA Milestone 2.

 

“Interest Rate Reduction Conditions 2”
shall mean satisfaction of each of the following events: (a) no default or Event of Default shall have occurred; and (b) Net Lenzilumab
Product Revenue of at least $100,000,000.

 

“Interest Rate Reduction Conditions 3”
shall mean satisfaction of each of the following events: (a) no default or Event of Default shall have occurred; and (b) Net Lenzilumab
Product Revenue of at least $250,000,000.

 

“Interest Rate Reduction Conditions 4”
shall mean satisfaction of each of the following events: (a) no default or Event of Default shall have occurred; and (b) Net Lenzilumab
Product Revenue of at least $350,000,000.

 

“Investment” means (a) any beneficial
ownership (including stock, partnership, limited liability company interests, or other securities) of or in any Person, (b) any loan,
advance or capital contribution to any Person or (c) any Acquisition.

 

“IRS” means the United States Internal
Revenue Service.

 

“Joinder Agreement” means for each Subsidiary,
a completed and executed Joinder Agreement in substantially the form attached hereto as Exhibit F.

 

“License” means any Copyright License,
Patent License, Trademark License or other license of rights or interests.

 

“Lien” means any mortgage, deed of trust,
pledge, hypothecation, assignment for security, security interest, encumbrance, levy, lien or charge of any kind, whether voluntarily
incurred or arising by operation of law or otherwise, against any property, any conditional sale or other title retention agreement, and
any lease in the nature of a security interest.

 

    	 		 

    	 

    

 

“Loan” means the Advances made under
this Agreement.

 

“Loan Documents” means this Agreement,
the promissory notes (if any), the ACH Authorization, the Account Control Agreements, the Joinder Agreements, all UCC Financing Statements,
the Pledge Agreement and any other documents executed in connection with the Secured Obligations or the transactions contemplated hereby,
as the same may from time to time be amended, modified, supplemented or restated.

 

“Madison” means Madison Joint Venture
LLC, a Delaware limited liability company.

 

“Market Capitalization” means, as of
any date of determination, the product of (a) number of outstanding shares of Common Stock publicly disclosed in the most recent filing
of Borrower with the United States Securities Exchange Commission as outstanding as of such date and (b) the volume-weighted average price
over the three consecutive trading days prior to (and including) such date.

 

“Material Adverse Effect” means a material
adverse effect upon: (i) the business, operations, properties, assets or financial condition of Borrower and its Subsidiaries taken
as a whole; or (ii) the ability of Borrower to perform or pay the Secured Obligations in accordance with the terms of the Loan Documents,
or the ability of Agent or the Lenders to enforce any of its rights or remedies with respect to the Secured Obligations; or (iii) the
Collateral or Agent’s Liens on the Collateral or the priority of such Liens.

 

“Maximum Term Loan Amount” means Eighty
Million Dollars ($80,000,000).

 

“MDC Agreement” means that certain Agreement
for the Manufacture, Development and Commercialization of Benznidazole for Human Use, dated as of June 30, 2016 between Savant Neglected
Diseases, LLC and KaloBios Pharmaceuticals, Inc.

 

“Net Lenzilumab Product Revenue” means
Borrower’s product revenue from lenzilumab that is invoiced and/or recognized as revenue (as determined in accordance with GAAP)
solely from the sale of lenzilumab, calculated in a manner consistent with Borrower’s audited financial statements delivered pursuant
to Section 7.1(c); provided that Net Lenzilumab Product Revenue shall exclude all revenue arising from royalties (including pursuant to
any Permitted Royalty Transactions), profit sharing arrangements and milestone payments.

 

“Non-Core Intellectual Property” means
any Intellectual Property (a) in connection with a Non-Core Indication or (b) that is not material to Borrower’s business in Agent’s
discretion.

 

“Non-Core Therapeutic Indications” means
(a) any indication not including any of the following: (i) for lenzilumab, (1) prevention or treatment of COVID-19, (2) combination treatment
with CAR-T therapies, (3) prevention or treatment of acute GvHD and (4) hematologic malignancies and (ii) for Ifabotuzumab, any indications
covering solid tumors and (b) any other indication that Agent determines, in consultation with Borrower, to not be “core”
to Borrower.

 

“Non-Disclosure Agreement” means that
certain Non-Disclosure Agreement by and between the Agent and the Borrower, dated as of January 20, 2021.

 

“OFAC” is the U.S. Department of Treasury
Office of Foreign Assets Control.

 

“OFAC Lists” are, collectively, the Specially
Designated Nationals and Blocked Persons List maintained by OFAC pursuant to Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept. 25,
2001) and/or any other list of terrorists or other restricted Persons maintained pursuant to any of the rules and regulations of OFAC
or pursuant to any other applicable Executive Orders.

 

    	 		 

    	 

    

 

“Patent License” means any written agreement
granting any right with respect to any invention on which a Patent is in existence or a Patent application is pending, in which agreement
Borrower now holds or hereafter acquires any interest.

 

“Patents” means all letters patent of,
or rights corresponding thereto, in the United States of America or in any other country, all registrations and recordings thereof, and
all applications for letters patent of, or rights corresponding thereto, in the United States of America or any other country.

 

“Permitted Acquisition” means any Acquisition
which is conducted in accordance with the following requirements:

 

(a)       of a
business or Person or product engaged in a line of business related to that of the Borrower or its Subsidiaries;

 

(b)       if such
Acquisition is structured as a stock acquisition, then the Person so acquired shall either (i) become a wholly-owned Subsidiary of Borrower
or of a Subsidiary and the Borrower shall comply, or cause such Subsidiary to comply, with 7.13 hereof or (ii) such Person shall be merged
with and into Borrower (with the Borrower being the surviving entity);

 

(c)       if such
Acquisition is structured as the acquisition or in-licensing of assets, such assets shall be acquired by Borrower or a Qualified Subsidiary
that has executed and delivered to Agent a Joinder Agreement pursuant to Section 7.13, and shall be free and clear of Liens other than
Permitted Liens;

 

(d)       the
Borrower shall have delivered to the Lenders not less than fifteen (15) nor more than forty five (45) days prior to the date of consummation
of such Acquisition, notice of such Acquisition together with pro forma projected financial information, copies of all material documents
relating to such acquisition, and historical financial statements for such acquired entity, division or line of business, in each case
in form and substance satisfactory to the Lenders and demonstrating compliance with the covenants set forth in Section 7.20 hereof on
a pro forma basis as if the Acquisition occurred on the first day of the most recent measurement period;

 

(e)        both
immediately before and after such Acquisition no Default or Event of Default shall have occurred and be continuing; and

 

(f)        the
sum of the purchase price of such proposed new Acquisition, computed on the basis of total acquisition consideration paid or incurred,
or to be paid or incurred, by Borrower with respect thereto, including the amount of Permitted Indebtedness assumed or to which such assets,
businesses or business or ownership interest or shares, or any Person so acquired, is subject, shall not be greater than (i) $25,000,000
in any fiscal year or (ii) $100,000,000 for all acquisitions during the term of this Agreement; provided that the cash consideration for
all such Acquisitions cannot exceed (x) prior to the achievement of the Capital Raise Milestone, (A) $5,000,000 in any fiscal year or
(B) $15,000,000 for all such Acquisitions during the term of this Agreement and (y) at all times following the achievement of the Capital
Raise Milestone, (A) $10,000,000 in any fiscal year or (B) $30,000,000 for all such Acquisitions during the term of this Agreement; provided
further that, for any Acquisition that is not located entirely within the United States of America, the cash consideration for such Acquisitions
cannot exceed (x) prior to the achievement of the Capital Raise Milestone, (A) $2,000,000 in any fiscal year or (B) $10,000,000 for all
such Acquisitions during the term of this Agreement and (y) at all times following the achievement of the Capital Raise Milestone, (A)
$4,000,000 in any fiscal year or (B) $20,000,000 for all such Acquisitions during the term of this Agreement.

 

    	 		 

    	 

    

 

“Permitted Bond Hedge Transaction” means
any call or capped call option (or substantively equivalent derivative transaction) relating to the Common Stock (or other securities
or property following a merger event or other change of the Common Stock) purchased by Borrower in connection with the issuance of any
Permitted Convertible Debt and as may be amended in accordance with its terms; provided that, the net purchase price of any such call
option transaction less the amount received by Borrower in respect of any Permitted Warrant Transaction in connection with such issuance
of Permitted Convertible Debt shall not exceed 20% of the gross proceeds to Borrower from such issuance of Permitted Convertible Debt;
provided further that the terms, conditions and covenants of each such call option transaction are customary for agreements of such type,
as determined in good faith by the board of directors of the Borrower or a committee thereof.

 

“Permitted Convertible Debt” means Indebtedness
of the Borrower that is convertible into a fixed number (subject to customary anti-dilution adjustments, “make-whole” increases
and other customary changes thereto) of shares of Common Stock (or other securities or property following a merger event or other change
of the Common Stock), cash or any combination thereof (with the amount of such cash or such combination determined by reference to the
market price of such Common Stock or such other securities); provided that such Indebtedness shall (a) not require any scheduled amortization
or otherwise require payment of principal prior to, or have a scheduled maturity date, earlier than, one hundred eighty (180) days after
the Term Loan Maturity Date, (b) (x) be unsecured and/or (y) (i) contain usual and customary subordination terms for offerings of senior
subordinated convertible notes and (ii) specifically designate this Agreement and all Secured Obligations as “designated senior
indebtedness” or similar term so that the subordination terms referred to in the preceding clause (i) specifically refer to such
notes as being subordinated to the Secured Obligations pursuant to such subordination terms, (c) not be guaranteed by any Subsidiary of
Borrower, and (d) be on terms and conditions customary for Indebtedness of such type, as determined in good faith by the board of directors
of the Borrower or a committee thereof; provided further, that any cross-default or cross-acceleration event of default (each howsoever
defined) provision contained therein that relates to indebtedness or other payment obligations of Borrower (or any of its Subsidiaries)
(such indebtedness or other payment obligations, a “Cross-Default Reference Obligation”) contains a cure period of at least
fifteen (15) calendar days (after written notice to the issuer of such Indebtedness by the trustee or to such issuer and such trustee
by holders of at least 25% in aggregate principal amount of such Indebtedness then outstanding) before a default, event of default, acceleration
or other event or condition under such Cross-Default Reference Obligation results in an event of default under such cross-default or cross-acceleration
provision.

 

“Permitted Indebtedness” means:

 

(i)            Indebtedness
of Borrower in favor of the Lenders or Agent arising under this Agreement or any other Loan Document;

 

(ii)           Indebtedness
existing on the Effective Date which is disclosed in Schedule 1B;

 

(iii)          Indebtedness
of up to (x) prior to the achievement of the Capital Raise Milestone, $1,000,000 and (y) at all times following the achievement of the
Capital Raise Milestone, $2,000,000, in each case outstanding at any time secured by a Lien described in clause (vii) of the defined term
“Permitted Liens”; provided that such Indebtedness does not exceed the cost of the Equipment financed with such Indebtedness;

 

    	 		 

    	 

    

 

(iv)         (x)
Indebtedness to trade creditors incurred in the ordinary course of business (1) that is due within 120 days or (2) in respect of the Excluded
Trade Payables and (y) Indebtedness incurred in the ordinary course of business with corporate credit cards in an amount not to exceed
at any time outstanding (1) prior to the achievement of the Capital Raise Milestone, $250,000 and (2) at all times following the achievement
of the Capital Raise Milestone, $500,000;

 

(v)          Indebtedness
that also constitutes a Permitted Investment;

 

(vi)         Subordinated
Indebtedness;

 

(vii)     
  Permitted Convertible Debt not to exceed $250,000,000 in aggregate principal amount at any one time outstanding;

 

(viii)       Indebtedness
with respect to a Permitted Royalty Transaction that (a) is subordinated to the Secured Obligations pursuant to a subordination or intercreditor
agreement on terms and conditions satisfactory to Agent, (b) does not have a scheduled maturity date earlier than one hundred eighty (180)
days after the Term Loan Maturity Date, (c) is in an aggregate amount not to exceed $250,000,000 and (d) shall specifically designate
this Agreement and all Secured Obligations as “designated senior indebtedness” or similar term so that the subordination terms
referred to in clause (a) of this clause specifically refer to such notes as being subordinated to the Secured Obligations pursuant to
such subordination terms;

 

(ix)          reimbursement
obligations in connection with (x) standby letters of credit that are secured by Cash and issued on behalf of the Borrower or a Subsidiary
thereof in an amount not to exceed (1) prior to the achievement of the Capital Raise Milestone, $500,000 and (2) at all times following
the achievement of the Capital Raise Milestone, $1,000,000, in each case at any time outstanding and (y) documentary letters of credit
entered into in the ordinary course of the Borrower’s business in connection with the shipment of raw materials, Inventory and other
goods;

 

(x)           other
unsecured Indebtedness in an amount not to exceed (x) prior to the achievement of the Capital Raise Milestone, $500,000 and (y) at all
times following the achievement of the Capital Raise Milestone, $1,000,000, in each case at any time outstanding;

 

(xi)          intercompany
Indebtedness as long as either (A) each of the Subsidiary obligor and the Subsidiary obligee under such Indebtedness is a Subsidiary that
has executed a Joinder Agreement; and

 

(xii)         extensions,
refinancings and renewals of any items of Permitted Indebtedness; provided that the principal amount is not increased or the terms modified
to impose materially more burdensome terms upon Borrower or its Subsidiary, as the case may be.

 

“Permitted Investment” means:

 

(i)            Investments
existing on the Effective Date which are disclosed in Schedule 1C;

 

(ii)           (a)
marketable direct obligations issued or unconditionally guaranteed by the United States of America or any agency or any State thereof
maturing within one year from the date of acquisition thereof currently having a rating of at least A-2 or P-2 from either Standard &
Poor’s Corporation or Moody’s Investors Services, (b) commercial paper maturing no more than one year from the date of creation
thereof and currently having a rating of at least A-2 or P-2 from either Standard & Poor’s Corporation or Moody’s Investors
Service, (c) certificates of deposit issued by any bank with assets of at least $500,000,000 maturing no more than one year from the date
of investment therein, and (d) money market accounts;

 

    	 		 

    	 

    

 

(iii)          repurchases
of stock from former employees, directors, or consultants of Borrower under the terms of applicable repurchase agreements at the original
issuance price of such securities in an aggregate amount not to exceed (x) prior to the achievement of the Capital Raise Milestone, $250,000
and (y) at all times following the achievement of the Capital Raise Milestone, $500,000, in each case in any fiscal year; provided that
no Event of Default has occurred, is continuing or could exist after giving effect to the repurchases; provided further that the exercise
(including the net exercise) of employee stock options (including the issuance of Borrower’s stock upon the exercise thereof) and
the awarding of other reasonable and customary equity-based incentive compensation to officers, directors and employees shall not be deemed
to constitute an Investment hereunder;

 

(iv)         Investments
accepted in connection with Permitted Transfers;

 

(v)          Investments
(including debt obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement
of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of Borrower’s business;

 

(vi)         Investments
consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers who are not Affiliates,
in the ordinary course of business; provided that this subparagraph (vi) shall not apply to Investments of Borrower in any Subsidiary;

 

(vii)        Investments
consisting of loans not involving the net transfer on a substantially contemporaneous basis of cash proceeds to employees, officers or
directors relating to the purchase of capital stock of Borrower pursuant to employee stock purchase plans or other similar agreements
approved by Borrower’s Board of Directors;

 

(viii)       Investments
consisting of travel advances in the ordinary course of business;

 

(ix)          Investments
in newly-formed Subsidiaries; provided that each such Subsidiary enters into a Joinder Agreement promptly after its formation by Borrower
and execute such other documents as shall be reasonably requested by Agent;

 

(x)           Investments
in Foreign Subsidiaries (1) constituting Excluded Subsidiaries not to exceed $250,000 in the aggregate for any such Foreign Subsidiary
or $1,000,000 in the aggregate for all such Foreign Subsidiaries and (2) otherwise approved in advance in writing by Agent;

 

(xi)          joint
ventures or strategic alliances in the ordinary course of Borrower’s business consisting of the nonexclusive licensing of technology,
the development of technology or the providing of technical support; provided that any cash Investments by Borrower do not exceed (x)
prior to the achievement of the Capital Raise Milestone, $100,000 and (y) at all times following the achievement of the Capital Raise
Milestone, $200,000, in each case in the aggregate in any fiscal year;

 

(xii)         Permitted
Acquisitions;

 

    	 		 

    	 

    

 

(xiii)        Investments
in the manufacturing facilities of any contract manufacturing organization of Borrower required to be made pursuant to agreements between
such contract manufacturing organization and Borrower, in an aggregate amount not to exceed (x) prior to the achievement of the Capital
Raise Milestone, $10,000,000 and (y) at all times following the achievement of the Capital Raise Milestone, $25,000,000;

 

(xiv)        Borrower’s
entry into (including payments of premiums in connection therewith), and the performance of obligations under, any Permitted Bond Hedge
Transactions and Permitted Warrant Transactions in accordance with their terms; and

 

(xv)         additional
Investments that do not exceed in the aggregate (x) prior to the achievement of the Capital Raise Milestone, $1,000,000 and (y) at all
times following the achievement of the Capital Raise Milestone, $2,000,000.

 

“Permitted Liens” means:

 

(i)            Liens
in favor of Agent or the Lenders;

 

(ii)           Liens
existing on the Effective Date which are disclosed in Schedule 1D;

 

(iii)          Liens
for taxes, fees, assessments or other governmental charges or levies, either not yet due or being contested in good faith by appropriate
proceedings diligently conducted; provided that Borrower maintains adequate reserves therefor on Borrower’s Books in accordance
with GAAP;

 

(iv) 
        Liens securing claims or demands of materialmen, artisans, mechanics, carriers,
warehousemen, landlords and other like Persons arising in the ordinary course of Borrower’s business and imposed without
action of such parties; provided that the payment thereof is not yet required;

 

(v)           Liens
arising from judgments, decrees or attachments in circumstances which do not constitute an Event of Default hereunder;

 

(vi)          the
following deposits, to the extent made in the ordinary course of business: deposits under worker’s compensation, unemployment insurance,
social security and other similar laws, or to secure the performance of bids, tenders or contracts (other than for the repayment of borrowed
money) or to secure indemnity, performance or other similar bonds for the performance of bids, tenders or contracts (other than for the
repayment of borrowed money) or to secure statutory obligations (other than Liens arising under ERISA or environmental Liens) or surety
or appeal bonds, or to secure indemnity, performance or other similar bonds;

 

(vii)         Liens
on Equipment or software or other intellectual property constituting purchase money Liens and Liens in connection with capital leases
securing Indebtedness permitted in clause (iii) of “Permitted Indebtedness”;

 

(viii)        Liens
incurred in connection with Subordinated Indebtedness;

 

(ix)           leasehold
interests in leases or subleases and licenses granted in the ordinary course of business and not interfering in any material respect with
the business of the licensor;

 

    	 		 

    	 

    

 

(x)           Liens
in favor of customs and revenue authorities arising as a matter of law to secure payment of custom duties that are promptly paid on or
before the date they become due;

 

(xi)          Liens
on insurance proceeds securing the payment of financed insurance premiums that are promptly paid on or before the date they become due
(provided that such Liens extend only to such insurance proceeds and not to any other property or assets);

 

(xii)        statutory
and common law rights of set-off and other similar rights as to deposits of cash and securities in favor of banks, other depository institutions
and brokerage firms;

 

(xiii)        easements,
zoning restrictions, rights-of-way and similar encumbrances on real property imposed by law or arising in the ordinary course of business
so long as they do not materially impair the value or marketability of the related property;

 

(xiv)       (A)
Liens on Cash securing obligations permitted under clause (ix) of the definition of Permitted Indebtedness and (B) security deposits in
connection with real property leases, the combination of (A) and (B) in an aggregate amount not to exceed at any time (1) prior to the
achievement of the Capital Raise Milestone, $250,000 and (2) at all times following the achievement of the Capital Raise Milestone, $500,000;

 

(xv)         Liens
solely on the royalty interests purchased pursuant to a Permitted Royalty Transaction and proceeds thereon; provided that no Liens shall
be granted with respect to any Intellectual Property of Borrower or its Subsidiaries; and

 

(xvi)        Liens
incurred in connection with the extension, renewal or refinancing of the Indebtedness secured by Liens of the type described in clauses (i)
through (xi) and (xv) above; provided that any extension, renewal or replacement Lien shall be limited to the property encumbered by the
existing Lien and the principal amount of the Indebtedness being extended, renewed or refinanced (as may have been reduced by any payment
thereon) does not increase.

 

“Permitted Royalty Transaction” means
any synthetic royalty participation (and not royalty purchases or buyouts) in the ordinary course of business and on terms (including,
without limitation, that any security granted in connection with such Permitted Royalty Transaction is limited solely to the respective
Intellectual Property being financed by such facility), and with a purchaser, in each case, satisfactory to Agent, as long as (i) such
transaction does not result in a transfer of any Intellectual Property, (ii) such transaction does not result in a transfer of any Rights
to Payment of any Intellectual Property, (iii) the beneficiary is Borrower or a Qualified Subsidiary that has executed and delivered to
Agent a Joinder Agreement pursuant to Section 7.13 and (iv) all fees and payments with respect to such transaction (including, without
limitation, with respect to the underlying Intellectual Property and Rights to Payment) are payable to Borrower or such Qualified Subsidiary,
as applicable, and made to an Account subject to an Account Control Agreement.

 

“Permitted Transfers” means:

 

(i)           sales
of Inventory in the ordinary course of business and transfers of raw materials, work in process or finished Inventory to, between or among
the Borrower’s contract manufacturing counterparties, without duplication of Investments permitted by clause (xiii) of the definition
of Permitted Investments,

 

    	 		 

    	 

    

 

(ii)           licenses
and similar arrangements for the use of Intellectual Property in the ordinary course of business, including in connection with business
development transactions, that could not result in a legal transfer of title of the licensed property and that (A) may be exclusive in
respects other than territory or (B) may be exclusive as to territory but only (x) as to discreet geographical areas outside of the United
States of America in the ordinary course of business or (y) for Non-Core Intellectual Property or Non-Core Therapeutic Indications,

 

(iii)          co-development,
co-promotion and/or co-commercialization agreements for territories including the United States of America; provided that (A) any such
arrangement is on arm’s length and commercially reasonable terms in Lender’s reasonable discretion and (B) each counterparty
to any such arrangement is an established pharmaceutical company,

 

(iv)         dispositions
of worn-out, obsolete or surplus Equipment at fair market value in the ordinary course of business,

 

(v)          Permitted
Royalty Transactions,

 

(vi)         to
the extent constituting a transfer, any other transaction that is expressly permitted by this Agreement (excluding Section 7.8), including,
but not limited to, the granting of Permitted Liens and the making of Permitted Investments; and

 

(vii)        other
dispositions of assets having a fair market value of not more than (x) prior to the achievement of the Capital Raise Milestone, $2,500,000
and (y) at all times following the achievement of the Capital Raise Milestone, $5,000,000, in each case in the aggregate in any fiscal
year.

 

“Permitted Warrant Transaction” means
any call option, warrant or right to purchase (or substantively equivalent derivative transaction) relating to Common Stock (or other
securities or property following a merger event or other change of the Common Stock) and/or cash (in an amount determined by reference
to the price of such Common Stock) sold by Borrower substantially concurrently with any purchase by Borrower of a related Permitted Bond
Hedge Transaction and as may be amended in accordance with its terms; provided that (x) that the terms, conditions and covenants of each
such call option transaction are customary for agreements of such type, as determined in good faith by the board of directors of the Borrower
or a committee thereof and (y) such call option transaction would be classified as an equity instrument in accordance with GAAP.

 

“Person” means any individual, sole proprietorship,
partnership, joint venture, trust, unincorporated organization, association, corporation, limited liability company, institution, other
entity or government.

 

“Pledge Agreement” means the Pledge Agreement
dated as of the Effective Date between Borrower and Agent, as the same may from time to time be amended, restated, modified or otherwise
supplemented.

 

“Qualified Cash” means the amount of
Borrower’s Cash held in accounts subject to an Account Control Agreement in favor of Agent.

 

“Qualified Cash A/P Amount” means the
amount of Borrower’s accounts payable that have not been paid within one hundred twenty (120) days from the invoice date of the
relevant account payable (other than Excluded Trade Payables).

 

    	 		 

    	 

    

 

“Qualified Subsidiary” means any direct
or indirect Subsidiary other than an Excluded Subsidiary.

 

“Receivables” means (i) all of Borrower’s
Accounts, Instruments, Documents, Chattel Paper, Supporting Obligations, letters of credit, proceeds of any letter of credit, and Letter
of Credit Rights, and (ii) all customer lists, software, and business records related thereto.

 

“Redemption Conditions” means, with respect
to any payment of cash in respect of the principal amount of any Permitted Convertible Debt, satisfaction of each of the following events:
(a) no Default or Event of Default shall exist or result therefrom, and (b) both immediately before and at all times after such redemption,
Borrower’s Qualified Cash shall be no less than 125% of the outstanding Secured Obligations.

 

“Register” has the meaning specified
in Section 11.7.

 

“Required Lenders” means at any time,
the holders of more than 50% of the sum of the aggregate unpaid principal amount of the Term Loans then outstanding.

 

“Restricted License” means any material
License or other agreement with respect to which Borrower is the licensee (a) that prohibits or otherwise restricts Borrower from
granting a security interest in Borrower’s interest in such License or agreement or any other property, or (b) for which a
default under or termination of could interfere with the Agent’s right to sell any Collateral.

 

“Royalty Transaction” means any royalty
or asset level financing entered into by Borrower and one or more third party investors or lenders acceptable to Agent in its sole discretion
and on terms and conditions acceptable to Agent in its sole discretion.

 

“Sanctioned Country” means, at any time,
a country or territory which is the subject or target of any Sanctions.

 

“Sanctioned Person” means, at any time,
(a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S.
Department of the Treasury or the U.S. Department of State, or by the United Nations Security Council, the European Union or any EU member
state, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person controlled by any such Person.

 

“Sanctions” means economic or financial
sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered
by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, or (b) the United Nations
Security Council, the European Union or Her Majesty’s Treasury of the United Kingdom.

 

“Savant Litigation” means KaloBios Pharmaceuticals,
Inc. v. Savant Neglected Diseases, LLC, No. N17C-07-068 PRW-CCLD and all claims, counterclaims and crossclaims thereunder or related thereto
whether now existing or hereafter arising.

 

“Secured Obligations” means Borrower’s
obligations under this Agreement and any Loan Document, including any obligation to pay any amount now owing or later arising.

 

    	 		 

    	 

    

 

“Subordinated Indebtedness” means Indebtedness
subordinated to the Secured Obligations in amounts and on terms and conditions satisfactory to Agent in its sole discretion and subject
to a subordination agreement in form and substance satisfactory to Agent in its sole discretion.

 

“Subsequent Financing” means any firm
commitment underwritten public offering by Borrower of Common Stock occurring after the Effective Date.

 

“Subsidiary” means an entity, whether
a corporation, partnership, limited liability company, joint venture or otherwise, in which Borrower owns or controls, either directly
or indirectly, 50% or more of the outstanding voting securities, including each entity listed on Schedule 1 hereto.

 

“Taxes” means all present or future taxes,
levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any governmental
authority, including any interest, additions to tax or penalties applicable thereto.

 

“Term Commitment” means as to any Lender,
the obligation of such Lender, if any, to make a Term Loan Advance to the Borrower in a principal amount not to exceed the amount set
forth under the heading “Term Commitment” opposite such Lender’s name on Schedule 1.1.

 

“Term Loan Advance”
means each Tranche 1 Advance, Tranche 2 Advance, Tranche 3 Advance and any other Term Loan funds advanced under this Agreement.

 

“Term Loan Interest Rate” means for any
day a per annum rate of interest equal to the greater of either (i) 8.75% plus the prime rate as reported in The Wall Street Journal minus
3.25% and (ii) 8.75% (such greater amount, the “Base Interest Rate”); provided that the Base Interest Rate shall be permanently
reduced by an aggregate amount not to exceed 75 basis points upon the occurrence of each of the first three of the four following events
to occur: (w) if the Interest Rate Reduction Conditions 1 are satisfied, then the Base Interest Rate shall be reduced by 25 basis points;
(x) if the Interest Rate Reduction Conditions 2 are satisfied, then the Base Interest Rate shall be reduced by 25 basis points; (y) if
the Interest Rate Reduction Conditions 3 are satisfied, then the Base Interest Rate shall be reduced by 25 basis points; and (z) if the
Interest Rate Reduction Conditions 4 are satisfied, then the Base Interest Rate shall be reduced by 25 basis points.

 

“Term Loan Maturity Date” means March
1, 2025; provided that, if the Term Loan Maturity Extension Conditions are satisfied, then March 1, 2026; provided further, in each case,
that, if such day is not a Business Day, the Term Loan Maturity Date shall be the immediately preceding Business Day.

 

“Term Loan Maturity Extension Conditions”
shall mean satisfaction of each of the following events: (a) no default or Event of Default shall have occurred; and (b) achievement of
the BLA Milestone.

 

“Trademark License” means any written
agreement granting any right to use any Trademark or Trademark registration, now owned or hereafter acquired by Borrower or in which Borrower
now holds or hereafter acquires any interest.

 

“Trademarks” means all trademarks (registered,
common law or otherwise) and any applications in connection therewith, including registrations, recordings and applications in the United
States Patent and Trademark Office or in any similar office or agency of the United States of America, any State thereof or any other
country or any political subdivision thereof.

 

    	 		 

    	 

    

 

“Tranche 2 Availability Conditions” means
(a) (x) in respect of clause (i) of Section 2.2(a), achievement of the EUA Milestone 1 or (y) in respect of clause (ii) of Section 2.2(a),
achievement of the EUA Milestone 2, (b) no Event of Default shall have occurred and be continuing and (c) the occurrence of the Initial
Advance Date.

 

“Tranche 2 Facility Charge”
means (a) following the achievement of EUA Milestone 1, Sixty-Two Thousand Five Hundred Dollars ($62,500), or (b) following the achievement
of EUA Milestone 2, Eighty-Seven Thousand Five Hundred Dollars ($87,500), which, in each case, is payable to the Lenders in accordance
with Section 4.3(d)(i).

 

“Tranche 3 Facility Charge”
means One Hundred Thousand Dollars ($100,000), which is payable to the Lenders in accordance with Section 4.3(d)(ii).

 

“UCC” means the Uniform Commercial Code
as the same is, from time to time, in effect in the State of California; provided that, in the event that, by reason of mandatory provisions
of law, any or all of the attachment, perfection or priority of, or remedies with respect to, Agent’s Lien on any Collateral is
governed by the Uniform Commercial Code as the same is, from time to time, in effect in a jurisdiction other than the State of California,
then the term “UCC” shall mean the Uniform Commercial Code as in effect, from time to time, in such other jurisdiction solely
for purposes of the provisions thereof relating to such attachment, perfection, priority or remedies and for purposes of definitions related
to such provisions.

 

“U.S. Person” means any Person that is
a “United States person” as defined in Section 7701(a)(30) of the Code.

 

1.2            The
following terms are defined in the Sections or subsections referenced opposite such terms:

 

	Defined
    Term	Section
	Agent	Preamble
	Assignee	11.14
	Borrower	Preamble
	Claims	11.11
	Collateral	3.1
	Confidential Information	11.13
	Conversion Amount	8.2(a)
	Conversion Shares	8.2(a)
	End of Term Charge	2.6
	Event of Default	9
	Financial Statements	7.1
	Indemnified Person	6.3
	Lenders	Preamble
	Liabilities	6.3
	Maximum Rate	2.3
	Minimum Cash Reduction Amount	7.20(b)
	Open Source License	5.10
	Participant Register	11.8
	Prepayment Charge	2.5
	Publicity Materials	11.19
	Register	11.7
	Rights to Payment	3.1
	Rights to Payment	3.1
	Tranche 1 Advance	2.2(a)
	Tranche 2 Advance	2.2(a)
	Tranche 3 Advance	2.2(a)

 

 

    	 		 

    	 

    

 

1.3       Unless
otherwise specified, all references in this Agreement or any Annex or Schedule hereto to a “Section,” “subsection,”
“Exhibit,” “Annex,” or “Schedule” shall refer to the corresponding Section, subsection, Exhibit, Annex,
or Schedule in or to this Agreement. Unless otherwise specifically provided herein, any accounting term used in this Agreement or the
other Loan Documents shall have the meaning customarily given such term in accordance with GAAP, and all financial computations hereunder
shall be computed in accordance with GAAP, consistently applied. Unless otherwise defined herein or in the other Loan Documents, terms
that are used herein or in the other Loan Documents and defined in the UCC shall have the meanings given to them in the UCC. For all purposes
under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different
jurisdiction’s laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability
of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person and (b) if any
new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders
of its Equity Interests at such time.

 

1.4       Notwithstanding
anything to the contrary in this Agreement or any other Loan Document, all terms of an accounting or financial nature used herein shall
be construed, and all computations of amounts and ratios referred to herein shall be made without giving effect to any treatment of Indebtedness
in respect of convertible debt instruments under Accounting Standards Codification 470-20 (or any other Accounting Standards Codification
or Financial Accounting Standard having a similar result or effect) to value any such Indebtedness in a reduced or bifurcated manner as
described therein, and such Indebtedness shall at all times be valued at the full stated principal amount thereof. For the avoidance of
doubt, and without limitation of the foregoing, Permitted Convertible Debt shall at all times be valued at the full stated principal amount
thereof and shall not include any reduction or appreciation in value of the shares deliverable upon conversion thereof. Additionally,
all leases of any Person that are or would be characterized as operating leases in accordance with GAAP in effect prior to December 15,
2018 (whether or not such operating leases were in effect on such date) shall be accounted for as operating leases (and not as capital
leases) for purposes of this Agreement and the other Loan Documents regardless of any change in GAAP following such date that would otherwise
require such leases to be recharacterized as capital leases. In addition, for all purposes of this Agreement and the other Loan Documents,
capital leases shall not include embedded leases deemed to arise in connection with contract management organizations or under any other
service contract due to the application of ASC 840 and/or 842.

 

SECTION
2. THE LOAN

 

2.1       [Reserved].

 

2.2       Term
Loan.

 

    	 		 

    	 

    

 

(a)       Advances.
Subject to the terms and conditions of this Agreement, the Lenders will severally (and not jointly) make in an amount not to exceed its
respective Term Commitment, and Borrower agrees to draw, a Term Loan Advance of Twenty Five Million Dollars ($25,000,000) during the period
beginning on the Effective Date and continuing through March 23, 2021 (or such later date as Borrower and Agent may mutually agree) (the
“Tranche 1 Advance”). Subject to the terms and conditions of this Agreement and satisfaction of the applicable Tranche 2 Availability
Conditions, (i) beginning on the Initial Advance Date and continuing through September 15, 2021, Borrower may request and the Lenders
shall severally (and not jointly) make an additional Term Loan Advance in a principal amount of Twenty Five Million Dollars ($25,000,000)
or (ii) beginning on the Initial Advance Date and continuing through September 15, 2021, Borrower may request and the Lenders shall severally
(and not jointly) make an additional Term Loan Advance in a principal amount of Thirty Five Million Dollars ($35,000,000) (in either case,
the “Tranche 2 Advance”). Subject to the terms and conditions of this Agreement and approval by the Lenders’ investment
committee in its sole discretion, beginning on the Initial Advance Date and continuing through June 15, 2022, Borrower may request and
the Lenders shall severally (and not jointly) make an additional Term Loan Advance in a principal amount of Twenty Million Dollars ($20,000,000)
(the “Tranche 3 Advance”). The aggregate outstanding Term Loan Advances may be up to the Maximum Term Loan Amount.

 

(b)       
Advance Request. To obtain a Term Loan Advance, Borrower shall complete, sign and deliver an Advance Request at least five (5) Business
Days (or, with respect to the Term Loan Advance on the Initial Advance Date, such shorter period as Agent may agree) before each Advance
Date to Agent. The Lenders shall fund the Term Loan Advance in the manner requested by the Advance Request provided that each of the conditions
precedent to such Term Loan Advance is satisfied as of the requested Advance Date.

 

(c)       Interest.
The principal balance shall bear interest thereon from such Advance Date at the Term Loan Interest Rate based on a year consisting of
360 days, with interest computed daily based on the actual number of days elapsed. The Term Loan Interest Rate will float and change on
the day the prime rate changes from time to time.

 

(d)       Payment.
Borrower will pay interest on each Term Loan Advance on the first Business Day of each month, beginning the month after the Advance Date.
Borrower shall repay the aggregate Term Loan principal balance that is outstanding on the day immediately preceding the Amortization Date,
in equal monthly installments of principal and interest (mortgage style) beginning on the Amortization Date and continuing on the first
Business Day of each month thereafter until the Secured Obligations (other than inchoate indemnity obligations) are repaid. The entire
Term Loan principal balance and all accrued but unpaid interest hereunder, shall be due and payable on the Term Loan Maturity Date. Borrower
shall make all payments under this Agreement without setoff, recoupment or deduction and regardless of any counterclaim or defense. If
a payment hereunder becomes due and payable on a day that is not a Business Day, the due date thereof shall be the immediately preceding
Business Day. The Lenders will initiate debit entries to the Borrower’s account as authorized on the ACH Authorization (i) on each
payment date of all periodic obligations payable to the Lenders under each Term Loan Advance and (ii) out-of-pocket legal fees and costs
incurred by Agent or the Lenders in connection with Section 11.12 of this Agreement; provided that, with respect to clause (i) above,
in the event that the Lenders or Agent informs Borrower that the Lenders will not initiate a debit entry to Borrower’s account for
a certain amount of the periodic obligations due on a specific payment date, Borrower shall pay to the Lenders such amount of periodic
obligations in full in immediately available funds on such payment date; provided, further, that, with respect to clause (i) above, if
the Lenders or Agent informs Borrower that the Lenders will not initiate a debit entry as described above later than the date that is
three (3) Business Days prior to such payment date, Borrower shall pay to the Lenders such amount of periodic obligations in full in immediately
available funds on the date that is three (3) Business Days after the date on which the Lenders or Agent notifies Borrower of such; provided,
further, that, with respect to clause (ii) above, in the event that the Lenders or Agent informs Borrower that the Lenders will not initiate
a debit entry to Borrower’s account for certain amount of such out-of-pocket legal fees and costs incurred by Agent or the Lenders,
Borrower shall pay to the Lenders such amount in full in immediately available funds within three (3) Business Days.

 

    	 		 

    	 

    

 

2.3       Maximum
Interest. Notwithstanding any provision in this Agreement or any other Loan Document, it is the parties’ intent not to contract
for, charge or receive interest at a rate that is greater than the maximum rate permissible by law that a court of competent jurisdiction
shall deem applicable hereto (which under the laws of the State of California shall be deemed to be the laws relating to permissible rates
of interest on commercial loans) (the “Maximum Rate”). If a court of competent jurisdiction shall finally determine that Borrower
has actually paid to the Lenders an amount of interest in excess of the amount that would have been payable if all of the Secured Obligations
had at all times borne interest at the Maximum Rate, then such excess interest actually paid by Borrower shall be applied as follows:
first, to the payment of the Secured Obligations consisting of the outstanding principal; second, after all principal is repaid, to the
payment of the Lenders’ accrued interest, costs, expenses, professional fees and any other Secured Obligations; and third, after
all Secured Obligations are repaid, the excess (if any) shall be refunded to Borrower.

 

2.4       Default
Interest. In the event any payment is not paid on the scheduled payment date, an amount equal to five percent (5%) of the past due amount
shall be payable on demand. In addition, at the election of the Required Lenders, upon the occurrence and during the continuation of an
Event of Default hereunder, all Secured Obligations, including principal, interest, compounded interest, and professional fees, shall
bear interest at a rate per annum equal to the rate set forth in Section 2.2(c) plus five percent (5%) per annum. In the event any interest
is not paid when due hereunder, delinquent interest shall be added to principal and shall bear interest on interest, compounded at the
rate set forth in Section 2.2(c) or Section 2.4, as applicable.

 

2.5       Prepayment.
At its option upon at least seven (7) Business Days’ prior written notice to Agent, Borrower may prepay all, but not less than all,
of the outstanding Advances by paying the entire principal balance, all accrued and unpaid interest thereon, together with a prepayment
charge equal to the following percentage of the Advance amount being prepaid: with respect to each Advance, if such Advance amounts are
prepaid in any of the first twelve (12) months following the Initial Advance Date, 2.00%; after twelve (12) months but prior to twenty
four (24) months, 1.50%; and after twenty four (24) months but prior to thirty six (36) months, 1.00% (each, a “Prepayment Charge”).
Borrower agrees that the Prepayment Charge is a reasonable calculation of the Lenders’ lost profits in view of the difficulties
and impracticality of determining actual damages resulting from an early repayment of the Advances. Borrower shall prepay the outstanding
amount of all principal and accrued interest through the prepayment date and the Prepayment Charge upon the occurrence of a Change in
Control or any other prepayment hereunder. Notwithstanding the foregoing, Agent and the Lenders agree to waive the Prepayment Charge if
Agent and the Lenders (in their sole and absolute discretion) agree in writing to refinance the Advances prior to the Term Loan Maturity
Date. Any amounts paid under this Section shall be applied by Agent to the then unpaid amount of any Secured Obligations (including principal
and interest) in such order and priority as Agent may choose in its sole discretion. For the avoidance of doubt, if a payment hereunder
becomes due and payable on a day that is not a Business Day, the due date thereof shall be the immediately preceding Business Day.

 

    	 		 

    	 

    

 

2.6       End
of Term Charge. On the earliest to occur of (i) the Term Loan Maturity Date, (ii) the date that Borrower prepays the outstanding Secured
Obligations (other than any inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination
of this Agreement) in full, or (iii) the date that the Secured Obligations become due and payable, Borrower shall pay the Lenders a charge
equal to 6.75% of the aggregate principal amount of the Loan funded during the term of this Agreement (the “End of Term Charge”).
Notwithstanding the required payment date of such End of Term Charge, the applicable pro rata portion of the End of Term Charge shall
be deemed earned by the Lenders as of each date a Term Loan Advance is made. For the avoidance of doubt, if a payment hereunder becomes
due and payable on a day that is not a Business Day, the due date thereof shall be the immediately preceding Business Day.

 

2.7       Pro
Rata Treatment. Each payment (including prepayment) on account of any fee and any reduction of the Term Loans shall be made pro rata according
to the Term Commitments of the relevant Lender.

 

2.8       Taxes;
Increased Costs. The Borrower, the Agent and the Lenders each hereby agree to the terms and conditions set forth on Addendum 1 attached
hereto.

 

2.9       Treatment
of Prepayment Charge and End of Term Charge. Borrower agrees that any Prepayment Charge and any End of Term Charge payable shall be presumed
to be the liquidated damages sustained by each Lender as the result of the early termination, and Borrower agrees that it is reasonable
under the circumstances currently existing and existing as of the Effective Date. The Prepayment Charge and the End of Term Charge shall
also be payable in the event the Secured Obligations (and/or this Agreement) are satisfied or released by foreclosure (whether by power
of judicial proceeding), deed in lieu of foreclosure, or by any other means. Borrower expressly waives (to the fullest extent it may lawfully
do so) the provisions of any present or future statute or law that prohibits or may prohibit the collection of the foregoing Prepayment
Charge and End of Term Charge in connection with any such acceleration. Borrower agrees (to the fullest extent that each may lawfully
do so): (a) each of the Prepayment Charge and the End of Term Charge is reasonable and is the product of an arm’s length transaction
between sophisticated business people, ably represented by counsel; (b) each of the Prepayment Charge and the End of Term Charge shall
be payable notwithstanding the then prevailing market rates at the time payment is made; (c) there has been a course of conduct between
the Lenders and Borrower giving specific consideration in this transaction for such agreement to pay the Prepayment Charge and the End
of Term Charge as a charge (and not interest) in the event of prepayment or acceleration; (d) Borrower shall be estopped from claiming
differently than as agreed to in this paragraph. Borrower expressly acknowledges that their agreement to pay each of the Prepayment Charge
and the End of Term Charge to the Lenders as herein described was on the Effective Date and continues to be a material inducement to the
Lenders to provide the Term Loans.

 

SECTION
3. SECURITY INTEREST

 

3.1       As
security for the prompt and complete payment when due (whether on the payment dates or otherwise) of all the Secured Obligations, Borrower
grants to Agent a security interest in all of Borrower’s right, title, and interest in, to and under all of Borrower’s personal
property and other assets including without limitation the following (except as set forth herein) whether now owned or hereafter acquired
(collectively, the “Collateral”): (a) Receivables; (b) Equipment; (c) Fixtures; (d) General Intangibles (other than Intellectual
Property); (e) Inventory; (f) Investment Property; (g) Deposit Accounts; (h) Cash; (i) Goods; (j) all Commercial Tort Claims; and all
other tangible and intangible personal property of Borrower whether now or hereafter owned or existing, leased, consigned by or to, or
acquired by, Borrower and wherever located, and any of Borrower’s property in the possession or under the control of Agent; and,
to the extent not otherwise included, all Proceeds of each of the foregoing and all accessions to, substitutions and replacements for,
and rents, profits and products of each of the foregoing; provided, however, that the Collateral shall include all Accounts and General
Intangibles that consist of rights to payment and proceeds from the sale, licensing or disposition of all or any part, or rights in, the
Intellectual Property (the “Rights to Payment”).

 

    	 		 

    	 

    

 

3.2       Notwithstanding
the broad grant of the security interest set forth in Section 3.1, above, the Collateral shall not include (a) nonassignable licenses
or contracts, which by their terms require the consent of the licensor thereof or another party (but only to the extent such prohibition
on transfer is enforceable under applicable law, including, without limitation, Sections 9406, 9407 and 9408 of the UCC), (b) more than
65% of the voting Equity Interests of any Excluded Subsidiary for which the pledge of all of the Equity Interests of such Subsidiary as
Collateral would result in demonstrable material adverse tax consequences to the Borrower (provided, however, that, immediately upon any
change in the U.S. tax laws that would allow the pledge of a greater percentage of such voting Equity Interests without material adverse
tax consequences to the Borrower, the Collateral shall automatically and without further action required by, and without notice to, any
Person include such greater percentage of voting Equity Interests of such Excluded Subsidiary from that time forward), (c) any Acquired
Assets and Future Assets and any related assets or items, in each pursuant to the terms of the MDC Agreement as in effect on the Effective
Date, (d) any Equity Interests in Madison and (e) the Savant Litigation including any Commercial Tort Claim of Borrower in respect thereof;
provided that any proceeds of the Savant Litigation actually received by Borrower in connection with the final disposition and discharge
thereof (whether as a result of the final binding determination or ruling of a court of law, settlement or otherwise) shall constitute
Collateral except and to the extent such proceeds would otherwise be excluded from the Collateral pursuant to this Section 3.2.

 

SECTION
4. CONDITIONS PRECEDENT TO LOAN

 

The obligations of the Lenders to make the Loan
hereunder are subject to the satisfaction by Borrower of the following conditions:

 

4.1       Effectiveness.
On or prior to the Effective Date, Borrower shall have delivered to Agent the following:

 

(a)       executed
copies of the Loan Documents and all other documents and instruments reasonably required by Agent to effectuate the transactions contemplated
hereby or to create and perfect the Liens of Agent with respect to all Collateral, in all cases in form and substance reasonably acceptable
to Agent;

 

(b)       a
legal opinion of Borrower’s counsel in form and substance reasonably acceptable to Agent;

 

(c)       certified
copy of resolutions of Borrower’s board of directors evidencing approval of (i) the Loan and other transactions evidenced by
the Loan Documents;

 

(d)       certified
copies of the Certificate of Incorporation and the Bylaws, as amended through the Effective Date, of Borrower;

 

    	 		 

    	 

    

 

(e)       a
certificate of good standing for Borrower from its state of incorporation and similar certificates from all other jurisdictions in which
it does business and where the failure to be qualified could have a Material Adverse Effect;

 

(f)       payment
of the Due Diligence Fee;

 

(g)       all
certificates of insurance and copies of each insurance policy required hereunder; and

 

(h)       such
other documents as Agent may reasonably request.

 

4.2       Initial
Advance. On or prior to the Initial Advance Date, Borrower shall have delivered to Agent:

 

(a)       valid,
enforceable and effective Account Control Agreements, in form and substance satisfactory to Agent, over each Deposit Account and each
account holding Investment Property (other than Excluded Accounts);

 

(b)       payment
of the Initial Facility Charge and reimbursement of Agent’s and the Lenders’ current expenses reimbursable pursuant to this
Agreement, which amounts may be deducted from the initial Advance; and

 

(c)       such
other documents as Agent may reasonably request.

 

4.3       All
Advances. On each Advance Date:

 

(a)       Agent
shall have received (i) an Advance Request for the relevant Advance as required by Section 2.2(b), each duly executed by Borrower’s
Chief Executive Officer or Chief Financial Officer, and (ii) any other documents Agent may reasonably request.

 

(b)       The
representations and warranties set forth in this Agreement shall be true and correct in all material respects on and as of the Advance
Date with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate
to an earlier date.

 

(c)       Borrower
shall be in compliance with all the terms and provisions set forth herein and in each other Loan Document on its part to be observed or
performed, and at the time of and immediately after such Advance no Event of Default shall have occurred and be continuing.

 

(d)       (i)
With respect to the Tranche 2 Advance, Borrower shall concurrently with such Advance pay the Tranche 2 Facility Charge and (ii) with respect
to the Tranche 3 Advance, Borrower shall concurrently with such Advance pay the Tranche 3 Facility Charge.

 

(e)       Each
Advance Request shall be deemed to constitute a representation and warranty by Borrower on the relevant Advance Date as to the matters
specified in paragraphs (b) and (c) of this Section 4.3 and as to the matters set forth in the Advance Request.

 

4.4       No
Default. As of the Effective Date and each Advance Date, (i) no fact or condition exists that could (or could, with the passage of time,
the giving of notice, or both) constitute an Event of Default and (ii) no event that has had or could reasonably be expected to have a
Material Adverse Effect has occurred and is continuing.

 

    	 		 

    	 

    

 

4.5       Post-Close
Obligations. Borrower shall deliver to Agent, within fourteen (14) days of the Effective Date, additional insured endorsements for liability
and lender’s loss payable endorsements for all risk property damage insurance, in each case in form and substance reasonably satisfactory
to Agent.

 

SECTION
5. REPRESENTATIONS AND WARRANTIES OF BORROWER

 

Borrower represents and warrants that:

 

5.1       Corporate
Status. Borrower is a corporation duly organized, legally existing and in good standing under the laws its state of incorporation, and
is duly qualified as a foreign corporation in all jurisdictions in which the nature of its business or location of its properties require
such qualifications and where the failure to be qualified could reasonably be expected to have a Material Adverse Effect. Borrower’s
present name, former names (if any), locations, place of formation, Tax identification number, organizational identification number and
other information are correctly set forth in Exhibit B, as may be updated by Borrower in a written notice (including any Compliance Certificate)
provided to Agent after the Effective Date.

 

5.2       Collateral.
Borrower owns the Collateral and the Intellectual Property, free of all Liens, except for Permitted Liens (except that there are no Liens
whatsoever on the Intellectual Property). Borrower has the corporate power and authority to grant to Agent a Lien in the Collateral as
security for the Secured Obligations.

 

5.3       Consents.
Borrower’s execution, delivery and performance of this Agreement and all other Loan Documents (i) have been duly authorized
by all necessary corporate action of Borrower, (ii) will not result in the creation or imposition of any Lien upon the Collateral,
other than Permitted Liens and the Liens created by this Agreement and the other Loan Documents, (iii) do not violate any provisions of
Borrower’s Certificate of Incorporation, bylaws, or any, law, regulation, order, injunction, judgment, decree or writ to which Borrower
is subject and (iv) except as described on Schedule 5.3, do not violate any material contract or agreement or require the consent
or approval of any other Person which has not already been obtained. The individual or individuals executing the Loan Documents are duly
authorized to do so.

 

5.4       Material
Adverse Effect. No event that has had or could reasonably be expected to have a Material Adverse Effect has occurred and is continuing.
Borrower is not aware of any event likely to occur that is reasonably expected to result in a Material Adverse Effect.

 

5.5       Actions
Before Governmental Authorities. There is no action, suit or proceeding at law or in equity or by or before any governmental authority
now pending or, to the knowledge of Borrower, threatened against or affecting Borrower or its property, that is reasonably expected to
result in a Material Adverse Effect.

 

5.6       Laws.
Neither Borrower nor any of its Subsidiaries is in violation of any law, rule or regulation, or in default with respect to any judgment,
writ, injunction or decree of any governmental authority, where such violation or default is reasonably expected to result in a Material
Adverse Effect. Borrower is not in default in any manner under any provision of any agreement or instrument evidencing material Indebtedness,
or any other material agreement to which it is a party or by which it is bound.

 

    	 		 

    	 

    

 

Neither Borrower nor any of its Subsidiaries
is an “investment company” or a company “controlled” by an “investment company” under the Investment
Company Act of 1940, as amended. Neither Borrower nor any of its Subsidiaries is engaged as one of its important activities in extending
credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of Governors). Borrower and each of its Subsidiaries
has complied in all material respects with the Federal Fair Labor Standards Act. Neither Borrower nor any of its Subsidiaries is a “holding
company” or an “affiliate” of a “holding company” or a “subsidiary company” of a “holding
company” as each term is defined and used in the Public Utility Holding Company Act of 2005. Neither Borrower’s nor any of
its Subsidiaries’ properties or assets has been used by Borrower or such Subsidiary or, to Borrower’s Knowledge, by previous
Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than in material compliance with applicable
laws. Borrower and each of its Subsidiaries has obtained all material consents, approvals and authorizations of, made all declarations
or filings with, and given all notices to, all Governmental Authorities that are necessary to continue their respective businesses as
currently conducted.

 

None of Borrower, any of its Subsidiaries,
or, to Borrower’s knowledge, any of Borrower’s or its Subsidiaries’ Affiliates or any of their respective agents acting
or benefiting in any capacity in connection with the transactions contemplated by this Agreement is (i) in violation of any Anti-Terrorism
Law, (ii) engaging in or conspiring to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding or attempts
to violate, any of the prohibitions set forth in any Anti-Terrorism Law, or (iii) is a Blocked Person. None of Borrower, any of its Subsidiaries,
or to the knowledge of Borrower and any of their Affiliates or agents, acting or benefiting in any capacity in connection with the transactions
contemplated by this Agreement, (x) conducts any business or engages in making or receiving any contribution of funds, goods or services
to or for the benefit of any Blocked Person, or (y) deals in, or otherwise engages in any transaction relating to, any property or interest
in property blocked pursuant to Executive Order No. 13224, any similar executive order or other Anti-Terrorism Law. None of the funds
to be provided under this Agreement will be used, directly or indirectly, (a) for any activities in violation of any applicable anti-money
laundering, economic sanctions and anti-bribery laws and regulations laws and regulations or (b) for any payment to any governmental official
or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity,
in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices
Act of 1977, as amended.

 

5.7       Information
Correct and Current. No information, report, Advance Request, financial statement, exhibit or schedule furnished, by or on behalf of Borrower
to Agent in connection with any Loan Document or included therein or delivered pursuant thereto contained, or, when taken as a whole,
contains or will contain any material misstatement of fact or, when taken together with all other such information or documents, omitted,
omits or will omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which
they were, are or will be made, not materially misleading at the time such statement was made or deemed made. Additionally, any and all
financial or business projections provided by Borrower to Agent, whether prior to or after the Effective Date, shall be (i) provided in
good faith and based on the most current data and information available to Borrower, and (ii) the most current of such projections provided
to Borrower’s Board of Directors, in each case, as such projections may be updated in accordance with this Agreement.

 

5.8       Tax
Matters. Except as described on Schedule 5.8, (a) Borrower and its Subsidiaries have filed all federal and state income Tax returns and
other material Tax returns that they are required to file, (b) Borrower and its Subsidiaries have duly paid all federal and state income
Taxes and other material Taxes or installments thereof that they are required to pay, except Taxes being contested in good faith by appropriate
proceedings and for which Borrower and its Subsidiaries maintain adequate reserves in accordance with GAAP, and (c) to Borrower’s
knowledge, no proposed or pending Tax assessments, deficiencies, audits or other proceedings with respect to Borrower or any Subsidiary
have had, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

    	 		 

    	 

    

 

5.9       Intellectual
Property Claims. Borrower is the sole owner of, or otherwise has the right to use, the Intellectual Property material to Borrower’s
business. Except as described on Schedule 5.9, (i) each of the material Copyrights, Trademarks and Patents is valid and enforceable, (ii)
no material part of the Intellectual Property has been judged invalid or unenforceable, in whole or in part, and (iii) no claim has been
made to Borrower that any material part of the Intellectual Property violates the rights of any third party. Exhibit C is a true,
correct and complete list of each of Borrower’s Patents, registered Trademarks, registered Copyrights, and material agreements under
which Borrower licenses Intellectual Property from third parties (other than shrink-wrap software licenses), together with application
or registration numbers, as applicable, owned by Borrower or any Subsidiary, in each case as of the Effective Date. Borrower is not in
material breach of, nor has Borrower failed to perform any material obligations under, any of the foregoing contracts, licenses or agreements
and, to Borrower’s knowledge, no third party to any such contract, license or agreement is in material breach thereof or has failed
to perform any material obligations thereunder.

 

5.10       Intellectual
Property. Except as described on Schedule 5.10, Borrower has all material rights with respect to Intellectual Property necessary or material
in the operation or conduct of Borrower’s business as currently conducted and proposed to be conducted by Borrower. Without limiting
the generality of the foregoing, and in the case of Licenses, except for restrictions that are unenforceable under Division 9 of the UCC,
Borrower has the right, to the extent required to operate Borrower’s business, to freely transfer, license or assign Intellectual
Property necessary or material in the operation or conduct of Borrower’s business as currently conducted and proposed to be conducted
by Borrower, without condition, restriction or payment of any kind (other than license payments in the ordinary course of business) to
any third party, and Borrower owns or has the right to use, pursuant to valid licenses, all software development tools, library functions,
compilers and all other third-party software and other items that are material to Borrower’s business and used in the design, development,
promotion, sale, license, manufacture, import, export, use or distribution of Borrower Products except customary covenants in inbound
license agreements and equipment leases where Borrower is the licensee or lessee. Borrower is not a party to, nor is it bound by, any
Restricted License.

 

No material software or other materials
used by Borrower or any of its Subsidiaries (or used in any Borrower Products or any Subsidiaries’ products) are subject to an open-source
or similar license (including but not limited to the General Public License, Lesser General Public License, Mozilla Public License, or
Affero License) (collectively, “Open Source Licenses”) in a manner that would cause such software or other materials to have
to be (i) distributed to third parties at no charge or a minimal charge (royalty-free basis); (ii) licensed to third parties to modify,
make derivative works based on, decompile, disassemble, or reverse engineer; or (iii) used in a manner that does could require disclosure
or distribution in source code form.

 

    	 		 

    	 

    

 

5.11       Borrower
Products. Except as described on Schedule 5.11, no Intellectual Property owned by Borrower or Borrower Product has been or is subject
to any actual or, to the knowledge of Borrower, threatened litigation, proceeding (including any proceeding in the United States Patent
and Trademark Office or any corresponding foreign office or agency) or outstanding decree, order, judgment, settlement agreement or stipulation
that restricts in any manner Borrower’s use, transfer or licensing thereof or that may affect the validity, use or enforceability
thereof. There is no decree, order, judgment, agreement, stipulation, arbitral award or other provision entered into in connection with
any litigation or proceeding that obligates Borrower to grant licenses or ownership interest in any future Intellectual Property related
to the operation or conduct of the business of Borrower or Borrower Products. Borrower has not received any written notice or claim, or,
to the knowledge of Borrower, oral notice or claim, challenging or questioning Borrower’s ownership in any Intellectual Property
(or written notice of any claim challenging or questioning the ownership in any licensed Intellectual Property of the owner thereof) or
suggesting that any third party has any claim of legal or beneficial ownership with respect thereto nor, to Borrower’s knowledge,
is there a reasonable basis for any such claim. Neither Borrower’s use of its Intellectual Property nor the production and sale
of Borrower Products infringes the Intellectual Property or other rights of others.

 

5.12       Financial
Accounts. Exhibit D, as may be updated by the Borrower in a written notice provided to Agent after the Effective Date, is a true, correct
and complete list of (a) all banks and other financial institutions at which Borrower or any Subsidiary maintains Deposit Accounts
and (b) all institutions at which Borrower or any Subsidiary maintains an account holding Investment Property, and such exhibit correctly
identifies the name, address and telephone number of each bank or other institution, the name in which the account is held, a description
of the purpose of the account, and the complete account number therefor.

 

5.13       Employee
Loans. Borrower has no outstanding loans to any employee, officer or director of the Borrower nor has Borrower guaranteed the payment
of any loan made to an employee, officer or director of the Borrower by a third party.

 

5.14       Subsidiaries.
Borrower does not own any stock, partnership interest or other securities of any Person, except as shown on Schedule 5.14 and except for
Permitted Investments. Attached as Schedule 5.14, as may be updated by Borrower in a written notice provided after the Effective Date,
is a true, correct and complete list of each Subsidiary.

 

5.15       Benznidazole
Matters. As of the Effective Date:

 

(a)       the
MDC Agreement has not been as amended, modified or restated in any manner; and

 

(b)       Borrower
and its Affiliates have ceased all Exploitation of all Acquired Assets and all Future Assets.

 

SECTION
6. INSURANCE; INDEMNIFICATION

 

6.1       Coverage.
Borrower shall cause to be carried and maintained commercial general liability insurance, on an occurrence form, against risks customarily
insured against in Borrower’s line of business and appropriate for Borrower’s organizational structure and business practices.
Borrower must maintain a minimum of $1,000,000 of commercial general liability insurance and coverage under an umbrella policy in the
minimum amount of $4,000,000 for each occurrence. Borrower has and agrees to maintain a minimum of $2,000,000 of directors’ and
officers’ insurance for each occurrence and $5,000,000 in the aggregate, subject, in each case, to customary retentions for such
insurance policies. So long as there are any Secured Obligations outstanding, Borrower shall also cause to be carried and maintained insurance
upon the Collateral, insuring against all risks of physical loss or damage howsoever caused, in an amount not less than the full replacement
cost of the Collateral; provided that such insurance may be subject to standard exceptions and deductibles. If Borrower fails to obtain
the insurance called for by this Section 6.1 or fails to pay any premium thereon or fails to pay any other amount which Borrower is obligated
to pay under this Agreement or any other Loan Document or which may be required to preserve the Collateral, Agent may obtain such insurance
or make such payment, and all amounts so paid by Agent are immediately due and payable, bearing interest at the then highest rate applicable
to the Secured Obligations, and secured by the Collateral.  Agent will make reasonable efforts to provide Borrower with notice of
Agent obtaining such insurance at the time it is obtained or within a reasonable time thereafter.  No payments by Agent are deemed
an agreement to make similar payments in the future or Agent’s waiver of any Event of Default.

 

    	 		 

    	 

    

 

6.2       Certificates.
Borrower shall deliver to Agent certificates of insurance that evidence Borrower’s compliance with its insurance obligations in
Section 6.1 and the obligations contained in this Section 6.2. Borrower’s insurance certificate shall state Agent (shown
as “Hercules Capital, Inc., as Agent”) is an additional insured for commercial general liability, a lenders loss payable for
all risk property damage insurance, subject to the insurer’s approval, and a lenders loss payable for property insurance and additional
insured for liability insurance for any future insurance that Borrower may acquire from such insurer. Subject to Section 4.5, attached
to the certificates of insurance will be additional insured endorsements for liability and lender’s loss payable endorsements for
all risk property damage insurance. All certificates of insurance will provide for a minimum of thirty (30) days advance written notice
to Agent of cancellation (other than cancellation for non-payment of premiums, for which ten (10) days’ advance written notice shall
be sufficient). Any failure of Agent to scrutinize such insurance certificates for compliance is not a waiver of any of Agent’s
rights, all of which are reserved. Borrower shall provide Agent with copies of each insurance policy, and upon entering or amending any
insurance policy required hereunder, Borrower shall provide Agent with copies of such policies and shall promptly deliver to Agent updated
insurance certificates with respect to such policies.

 

6.3       Indemnity.
Borrower agrees to indemnify and hold Agent, the Lenders and their officers, directors, employees, agents, in-house attorneys, representatives
and shareholders (each, an “Indemnified Person”) harmless from and against any and all claims, costs, expenses, damages and
liabilities (including such claims, costs, expenses, damages and liabilities based on liability in tort, including strict liability in
tort), including reasonable attorneys’ fees and disbursements (for a single firm of outside counsel to all similarly situated Indemnified
Persons, other than in the case of (x) local counsel and bankruptcy counsel and (y) an actual or potential conflict of interest among
Indemnified Persons) and other costs of investigation or defense (including those incurred upon any appeal) (collectively, “Liabilities”),
that may be instituted or asserted against or incurred by such Indemnified Person as the result of credit having been extended, suspended
or terminated under this Agreement and the other Loan Documents or the administration of such credit, or in connection with or arising
out of the transactions contemplated hereunder and thereunder, or any actions or failures to act in connection therewith, or arising out
of the disposition or utilization of the Collateral, excluding in all cases Liabilities to the extent resulting solely from any Indemnified
Person’s gross negligence or willful misconduct. This Section 6.3 shall not apply with respect to Taxes other than any Taxes that
represent losses, claims, damages, etc. arising from any non-Tax claim. In no event shall any Indemnified Person be liable on any theory
of liability for any special, indirect, consequential or punitive damages (including any loss of profits, business or anticipated savings).
This Section 6.3 shall survive the repayment of indebtedness under, and otherwise shall survive the expiration or other termination of,
this Agreement.

 

    	 		 

    	 

    

 

SECTION
7. COVENANTS OF BORROWER

 

Borrower agrees as follows:

 

7.1       Financial
Reports. Borrower shall furnish to Agent the financial statements and reports listed hereinafter (the “Financial Statements”):

 

(a)       if
Borrower’s Market Capitalization determined as of the last trading day of any month is less than $500,000,000, as soon as practicable
(and in any event within thirty (30) days) after the end of each such month, unaudited interim and year-to-date financial statements as
of the end of such month (prepared on a consolidated and consolidating basis, if applicable), including balance sheet and related statements
of income and cash flows accompanied by a report detailing any material contingencies (including the commencement of any material litigation
by or against Borrower) or any other occurrence that could reasonably be expected to have a Material Adverse Effect, all certified by
Borrower’s Chief Executive Officer or Chief Financial Officer to the effect that they have been prepared in accordance with GAAP,
except (i) for the absence of footnotes, (ii) that they are subject to normal year end adjustments, and (iii) they do not contain certain
non-cash items that are customarily included in quarterly and annual financial statements;

 

(b)       as
soon as practicable (and in any event within forty-five (45) days) after the end of each calendar quarter, unaudited interim and year-to-date
financial statements as of the end of such calendar quarter (prepared on a consolidated and consolidating basis, if applicable), including
balance sheet and related statements of income and cash flows accompanied by a report detailing any material contingencies (including
the commencement of any material litigation by or against Borrower) or any other occurrence that could reasonably be expected to have
a Material Adverse Effect, certified by Borrower’s Chief Executive Officer or Chief Financial Officer to the effect that they have
been prepared in accordance with GAAP, except (i) for the absence of footnotes, and (ii) that they are subject to normal year end adjustments;

 

(c)       as
soon as practicable (and in any event within ninety (90) days) after the end of each fiscal year, unqualified (other than a going concern
qualification) audited financial statements as of the end of such year (prepared on a consolidated and consolidating basis, if applicable),
including balance sheet and related statements of income and cash flows, and setting forth in comparative form the corresponding figures
for the preceding fiscal year, certified by a firm of independent certified public accountants selected by Borrower and reasonably acceptable
to Agent, accompanied by any management report from such accountants;

 

(d)       (i)
if Borrower’s Market Capitalization determined as of the last trading day of any month is less than $500,000,000, as soon as practicable
(and in any event within 30 days) after the end of each such month, a Compliance Certificate in the form of Exhibit E; (ii) if Borrower’s
Market Capitalization determined as of the last trading day of any month is equal to or greater than $500,000,000, a Compliance Certificate
in the form of Exhibit E solely with respect to Qualified Cash certifications for each month as well as other information regarding verification
and certification of compliance with the financial covenants set forth in Section 7.20; and (iii) as soon as practicable (and in any event
within 45 days) after the end of each quarter, a Compliance Certificate in the form of Exhibit E;

 

(e)       [reserved];

 

(f)       promptly
after the sending or filing thereof, as the case may be, copies of any proxy statements, financial statements or reports that Borrower
has made available to holders of its preferred stock and copies of any regular, periodic and special reports or registration statements
that Borrower files with the Securities and Exchange Commission or any governmental authority that may be substituted therefor, or any
national securities exchange;

 

    	 		 

    	 

    

 

(g)       [reserved];

 

(h)       an
annual budget and financial and business projections promptly following their approval by Borrower’s Board of Directors, and in
any event, within 45 days after the end of Borrower’s fiscal year; and

 

(i)       immediate
notice if Borrower or any Subsidiary has knowledge that Borrower, or any Subsidiary or Affiliate of Borrower, is listed on the OFAC Lists
or (a) is convicted on, (b) pleads nolo contendere to, (c) is indicted on, or (d) is arraigned and held over
on charges involving money laundering or predicate crimes to money laundering.

 

The executed Compliance Certificate and
all Financial Statements required to be delivered pursuant to clauses (a), (b), (c) and (d) shall be sent via e-mail to financialstatements@htgc.com
with a copy to legal@htgc.com and hbhalla@htgc.com; provided that, if e-mail is not available or sending such Financial Statements via
e-mail is not possible, they shall be faxed to Agent at: (650) 473-9194, attention Account Manager: Humanigen, Inc.

 

Notwithstanding the foregoing, documents
required to be delivered under Sections 7.1(a), (b), (c) or (f) (to the extent any such documents are included in materials otherwise
filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date so filed with
the SEC.

 

7.2       Management
Rights. Borrower shall make available to Agent and the Lenders, and their respective attorneys and accountants, the books of account and
records, including records regarding the Collateral, of Borrower by providing access to an electronic data room containing such information
or otherwise electronically delivering such information to Agent upon not less than five (5) days’ prior written notice from Agent;
provided that, to the extent Borrower has physical records of any of the foregoing, Borrower shall permit Agent and the Lenders, and their
respective attorneys and accountants, to inspect the Collateral and examine and make copies and abstracts of the books of account and
records of Borrower at reasonable times and upon reasonable notice during normal business hours; provided, however, that so long as no
Event of Default has occurred and is continuing, such requests and examinations shall be limited to no more often than once per fiscal
year. In addition, Agent and the Lenders, and their respective attorneys and accountants, shall have the right to meet with management
and officers of Borrower at a mutually acceptable location to discuss such books of account and records; provided that, solely to the
extent that Agent and Borrower mutually and reasonably agree that meeting in person is not practical due to the COVID-19 pandemic, such
meetings may be by teleconference. In addition, Agent or the Lenders shall be entitled at reasonable times and intervals to consult with
and advise the management and officers of Borrower concerning significant business issues affecting Borrower. Such consultations shall
not unreasonably interfere with Borrower’s business operations. The parties intend that the rights granted Agent and the Lenders
shall constitute “management rights” within the meaning of 29 C.F.R. Section 2510.3-101(d)(3)(ii), but that any advice, recommendations
or participation by Agent or the Lenders with respect to any business issues shall not be deemed to give Agent or the Lenders, nor be
deemed an exercise by Agent or the Lenders of, control over Borrower’s management or policies.

 

    	 		 

    	 

    

 

7.3       Further
Assurances. Borrower shall from time to time execute, deliver and file, alone or with Agent, any financing statements, security agreements,
collateral assignments, notices, control agreements, promissory notes or other documents to perfect, give the highest priority to Agent’s
Lien on the Collateral (subject to any Permitted Liens permitted by this Agreement to have superior priority to Agent’s Lien on
the Collateral) or otherwise evidence Agent’s rights herein. Borrower shall from time to time procure any instruments or documents
as may be reasonably requested by Agent, and take all further action that may be necessary, or that Agent may reasonably request, to perfect
and protect the Liens granted hereby and thereby. In addition, and for such purposes only, Borrower hereby authorizes Agent to execute
and deliver on behalf of Borrower and to file such financing statements (including an indication that the financing statement covers “all
assets or all personal property” of Borrower in accordance with Section 9-504 of the UCC), collateral assignments, notices, control
agreements, security agreements and other documents without the signature of Borrower either in Agent’s name or in the name of Agent
as agent and attorney-in-fact for Borrower. Borrower shall protect and defend Borrower’s title to the Collateral and Agent’s
Lien thereon against all Persons claiming any interest adverse to Borrower or Agent other than Permitted Liens.

 

7.4       Indebtedness.
Borrower shall not create, incur, assume, guarantee or be or remain liable with respect to any Indebtedness, or permit any Subsidiary
so to do, other than Permitted Indebtedness, or prepay any Indebtedness or take any actions which impose on Borrower an obligation to
prepay any Indebtedness, except for (a) the conversion of Indebtedness into equity securities and the payment of cash in lieu of fractional
shares in connection with such conversion, (b) purchase money Indebtedness pursuant to its then applicable payment schedule, (c) prepayment
by any Subsidiary of (i) intercompany Indebtedness owed by such Subsidiary to any Borrower, or (ii) if such Subsidiary is not a Borrower,
intercompany Indebtedness owed by such Subsidiary to another Subsidiary that is not a Borrower or (d) as otherwise permitted hereunder
or approved in writing by Agent.

 

Notwithstanding anything to the contrary in the foregoing,
the issuance of, performance of obligations under (including any payments of interest), and conversion, exercise, repurchase, redemption
(including, for the avoidance of doubt, a required repurchase in connection with the redemption of Permitted Convertible Debt upon satisfaction
of a condition related to the stock price of the Common Stock), settlement or early termination or cancellation of (whether in whole or
in part and including by netting or set-off) (in each case, whether in cash, Common Stock, following a merger event or other change of
the Common Stock, other securities or property), or the satisfaction of any condition that would permit or require any of the foregoing,
any Permitted Convertible Debt shall not constitute a prepayment of Indebtedness by Borrower for the purposes of this Section 7.4; provided
that principal payments in cash (other than cash in lieu of fractional shares) shall only be allowed if the Redemption Conditions are
satisfied in respect of such payment and at all times after such payment; provided further that, to the extent both (a) the aggregate
amount of cash payable upon conversion or payment of any Permitted Convertible Debt (excluding any required payment of interest with respect
to such Permitted Convertible Debt and excluding any payment of cash in lieu of a fractional share due upon conversion thereof) exceeds
the aggregate principal amount thereof and (b) such conversion or payment does not trigger or correspond to an exercise or early unwind
or settlement of a corresponding portion of the Permitted Bond Hedge Transactions relating to such Permitted Convertible Debt (including,
for the avoidance of doubt, the case where there is no Bond Hedge Transaction relating to such Permitted Convertible Debt), the payment
of such excess cash shall not be permitted by the preceding sentence.

 

    	 		 

    	 

    

 

Notwithstanding the foregoing, Borrower may repurchase,
exchange or induce the conversion of Permitted Convertible Debt by delivery of shares of Common Stock and/or a different series of Permitted
Convertible Debt and/or by payment of cash (in an amount that does not exceed the proceeds received by Borrower from the substantially
concurrent issuance of Common Stock and/or Permitted Convertible Debt plus the net cash proceeds, if any, received by Borrower pursuant
to the related exercise or early unwind or termination of the related Permitted Bond Hedge Transactions and Permitted Warrant Transactions,
if any, pursuant to the immediately following proviso); provided that, substantially concurrently with, or a commercially reasonable period
of time before or after, the related settlement date for the Permitted Convertible Debt that is so repurchased, exchanged or converted,
Borrower shall exercise or unwind or terminate early (whether in cash, shares or any combination thereof) the portion of the Permitted
Bond Hedge Transactions and Permitted Warrant Transactions, if any, corresponding to such Permitted Convertible Debt that are so repurchased,
exchanged or converted.

 

7.5       Collateral.
Borrower shall at all times keep the Collateral, the Intellectual Property and all other property and assets used in Borrower’s
business or in which Borrower now or hereafter holds any interest free and clear from any legal process or Liens whatsoever (except for
Permitted Liens), and shall give Agent prompt written notice of any legal process affecting the Collateral, the Intellectual Property
and such other property and assets, or any Liens thereon; provided, however, that the Collateral and such other property and assets may
be subject to Permitted Liens, except that there shall be no Liens whatsoever on Intellectual Property. Borrower shall not agree with
any Person other than Agent or the Lenders not to encumber its property (including the Intellectual Property). Borrower shall not enter
into or suffer to exist or become effective any agreement that prohibits or limits the ability of any Borrower to create, incur, assume
or suffer to exist any Lien upon any of its property (including Intellectual Property), whether now owned or hereafter acquired, to secure
its obligations under the Loan Documents to which it is a party other than (a) this Agreement and the other Loan Documents, (b) any agreements
governing any purchase money Liens or capital lease obligations otherwise permitted hereby (in which case, any prohibition or limitation
shall only be effective against the assets financed thereby) and (c) customary restrictions on the assignment of leases, licenses and
other agreements. Borrower shall cause its Subsidiaries to protect and defend such Subsidiary’s title to its assets from and against
all Persons claiming any interest adverse to such Subsidiary, and Borrower shall cause its Subsidiaries at all times to keep such Subsidiary’s
property and assets free and clear from any legal process or Liens whatsoever (except for Permitted Liens; provided, however, that there
shall be no Liens whatsoever on Intellectual Property), and shall give Agent prompt written notice of any legal process affecting such
Subsidiary’s assets.

 

7.6       Investments.
Borrower shall not directly or indirectly acquire or own, or make any Investment in or to any Person, or permit any of its Subsidiaries
to do so, other than Permitted Investments.

 

7.7       Distributions.
Borrower shall not, and shall not allow any Subsidiary to, (a) repurchase or redeem any class of stock or other Equity Interest other
than pursuant to employee, director or consultant repurchase plans or other similar agreements; provided, however, in each case the repurchase
or redemption price does not exceed the original consideration paid for such stock or Equity Interest, or (b) declare or pay any cash
dividend or make any other cash distribution on any class of stock or other Equity Interest, except that a Subsidiary may pay dividends
or make other distributions to Borrower or any Subsidiary of Borrower, or (c) lend money to any employees, officers or directors or guarantee
the payment of any such loans granted by a third party in excess of (i) prior to the achievement of the Capital Raise Milestone, $250,000
and (ii) at all times following the achievement of the Capital Raise Milestone, $500,000, in each case in the aggregate or (d) waive,
release or forgive any Indebtedness owed by any employees, officers or directors in excess of (i) prior to the achievement of the Capital
Raise Milestone, $250,000 and (ii) at all times following the achievement of the Capital Raise Milestone, $500,000, in each case in the
aggregate.

 

    	 		 

    	 

    

 

Notwithstanding the foregoing, and for the avoidance
of doubt, this Section 7.7 shall not prohibit the conversion by holders of (including any payment upon conversion, whether in cash, Common
Stock or a combination thereof), or required payment of any principal or premium on (including, for the avoidance of doubt, in respect
of a required repurchase in connection with the redemption of Permitted Convertible Debt upon satisfaction of a condition related to the
stock price of the Common Stock) or required payment of any interest with respect to, any Permitted Convertible Debt in each case, in
accordance with the terms of the indenture governing such Permitted Convertible Debt; provided that principal payments in cash (other
than cash in lieu of fractional shares) shall only be allowed if the Redemption Conditions are satisfied in respect of such payment and
at all times after such payment; provided further that, to the extent both (a) the aggregate amount of cash payable upon conversion or
payment of any Permitted Convertible Debt (excluding any required payment of interest with respect to such Permitted Convertible Debt
and excluding any payment of cash in lieu of a fractional share due upon conversion thereof) exceeds the aggregate principal amount thereof
and (b) such conversion or payment is not offset by an exercise or early unwind or settlement of a corresponding portion of the Bond Hedge
Transactions relating to such Permitted Convertible Debt (including, for the avoidance of doubt, the case where there is no Bond Hedge
Transaction relating to such Permitted Convertible Debt), the payment of such excess cash shall not be permitted by the preceding sentence.

 

Notwithstanding the foregoing, Borrower may repurchase,
exchange or induce the conversion of Permitted Convertible Debt by delivery of Common Stock and/or a different series of Permitted Convertible
Debt and/or by payment of cash (in an amount that does not exceed the proceeds received by Borrower from the substantially concurrent
issuance of Common Stock and/or Permitted Convertible Debt plus the net cash proceeds, if any, received by Borrower pursuant to the related
exercise or early unwind or termination of the related Permitted Bond Hedge Transactions and Permitted Warrant Transactions, if any, pursuant
to the immediately following proviso); provided that, substantially concurrently with, or a commercially reasonable period of time before
or after, the related settlement date for the Permitted Convertible Debt that is so repurchased, exchanged or converted, Borrower shall
exercise or unwind or terminate early (whether in cash, shares or any combination thereof) the portion of the Permitted Bond Hedge Transactions
and Permitted Warrant Transactions, if any, corresponding to such Permitted Convertible Debt that are so repurchased, exchanged or converted.

 

7.8       Transfers.
Except for Permitted Transfers, Borrower shall not, and shall not allow any Subsidiary to, voluntarily or involuntarily transfer, sell,
lease, license, lend or in any other manner convey any equitable, beneficial or legal interest in any material portion of its assets.

 

7.9       Mergers
and Consolidations. Borrower shall not merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with or into any
other business organization (other than (i) Permitted Acquisitions and (ii) mergers or consolidations of (a) a Subsidiary which is not
a Borrower into another Subsidiary or into Borrower or (b) a Borrower into another Borrower).

 

7.10       Taxes.
Borrower shall, and shall cause each of its Subsidiaries to, pay when due all material Taxes of any nature whatsoever now or hereafter
imposed or assessed against Borrower or the Collateral or upon Borrower’s ownership, possession, use, operation or disposition thereof
or upon Borrower’s rents, receipts or earnings arising therefrom. Borrower shall, and shall cause each of its Subsidiaries to, accurately
file on or before the due date therefor (taking into account proper extensions) all federal and state income Tax returns and other material
Tax returns required to be filed. Notwithstanding the foregoing, Borrower and its Subsidiaries may contest, in good faith and by appropriate
proceedings diligently conducted, Taxes for which Borrower and its Subsidiaries maintain adequate reserves in accordance with GAAP.

 

7.11       Corporate
Changes. Neither Borrower nor any Subsidiary shall change its corporate name, legal form or jurisdiction of formation without twenty (20)
days’ prior written notice to Agent. Neither Borrower nor any Subsidiary shall suffer a Change in Control. Neither Borrower nor
any Subsidiary shall relocate its chief executive office or its principal place of business unless: (i) it has provided prior written
notice to Agent; and (ii) such relocation shall be within the continental United States of America. Neither Borrower nor any Subsidiary
shall relocate any item of Collateral (other than (x) sales of Inventory in the ordinary course of business, (y) relocations of Equipment
having an aggregate value of up to (1) prior to the achievement of the Capital Raise Milestone, $150,000 and (2) at all times following
the achievement of the Capital Raise Milestone, $300,000, in each case in any fiscal year, and (z) relocations of Collateral from a location
described on Exhibit B to another location described on Exhibit B) unless (i) it has provided prompt written notice to Agent, (ii) such
relocation is within the continental United States of America and, (iii) if such relocation is to a third party bailee, it has delivered
a bailee agreement in form and substance reasonably acceptable to Agent. Notwithstanding the foregoing, it is understood and agreed that
(1) Permitted Transfers and (2) the possession and use by employees, including remote employees, of mobile equipment, including phones,
tablets and computers, and other similar items necessary for such employees to perform their respective jobs, in each case, in the ordinary
course of Borrower’s business and not otherwise prohibited by this Agreement shall not constitute a violation of this Section 7.11.

 

    	 		 

    	 

    

 

7.12       Deposit
Accounts. Neither Borrower nor any Subsidiary shall maintain any Deposit Accounts, or accounts holding Investment Property, except with
respect to which Agent has an Account Control Agreement; provided that no Account Control Agreement shall be required with respect to
Deposit Accounts (a) used solely to fund payroll or employee benefits maintained in the ordinary course of business, so long as such Deposit
Accounts do not have more than the amount required to fund the next two payroll cycles on deposit therein or (b) which at no time have
more than $250,000 on deposit therein (such Deposit Accounts in clauses (a) and (b), “Excluded Accounts”).

 

7.13       Additional
Qualified Subsidiaries. Borrower shall notify Agent of each Subsidiary formed subsequent to the Effective Date and, within 15 Business
Days of formation, shall cause any such Subsidiary that is a Qualified Subsidiary to execute and deliver to Agent a Joinder Agreement.
With respect to any Subsidiary that is not a Qualified Subsidiary at such time, immediately upon any change in the U.S. tax laws that
would result in such Subsidiary ceasing to be an Excluded Subsidiary, Borrower shall cause such Subsidiary to execute and deliver to Agent
a Joinder Agreement.

 

7.14       Benznidazole
Matters.

 

(a)       Borrower
shall not and shall not permit any Affiliate to amend, modify or restate the MDC Agreement in any manner without the prior written consent
of Agent or as required by applicable law or court order (including, without limitation, in connection with any settlement of the Savant
Litigation or any other litigation related thereto).

 

(b)       Borrower
shall not and shall not permit any Affiliate to Exploit any Acquired Assets or any Future Assets without the prior written consent of
Agent or as required by applicable law or court order (including, without limitation, in connection with any settlement of the Savant
Litigation or any other litigation related to the MDC Agreement).

 

7.15       Notification
of Event of Default. Borrower shall notify Agent promptly upon, and in any event within three Business Days of, Borrower obtaining knowledge
of the occurrence of any Event of Default.

 

7.16       [Reserved].

 

    	 		 

    	 

    

 

7.17       Use
of Proceeds. Borrower agrees that the proceeds of the Loans shall be used solely to pay related fees and expenses in connection with this
Agreement and for working capital and general corporate purposes. The proceeds of the Loans Credit will not be used in violation of Anti-Corruption
Laws or applicable Sanctions.

 

7.18       [Reserved].

 

7.19       Compliance
with Laws.

 

Borrower shall maintain, and shall cause
its Subsidiaries to maintain, compliance in all material respects with all applicable laws, rules or regulations (including any law, rule
or regulation with respect to the making or brokering of loans or financial accommodations), and shall, or cause its Subsidiaries to,
obtain and maintain all required governmental authorizations, approvals, licenses, franchises, permits or registrations reasonably necessary
in connection with the conduct of Borrower’s business.

 

Neither Borrower nor any of its Subsidiaries
shall, nor shall Borrower or any of its Subsidiaries permit any Affiliate to, directly or indirectly, knowingly enter into any documents,
instruments, agreements or contracts with any Person listed on the OFAC Lists. Neither Borrower nor any of its Subsidiaries shall, nor
shall Borrower or any of its Subsidiaries, permit any Affiliate to, directly or indirectly, (i) conduct any business or engage in
any transaction or dealing with any Blocked Person, including, without limitation, the making or receiving of any contribution of funds,
goods or services to or for the benefit of any Blocked Person, (ii) deal in, or otherwise engage in any transaction relating to,
any property or interests in property blocked pursuant to Executive Order No. 13224 or any similar executive order or other Anti-Terrorism
Law, or (iii) engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding,
or attempts to violate, any of the prohibitions set forth in Executive Order No. 13224 or other Anti-Terrorism Law.

 

Borrower has implemented and maintains in
effect policies and procedures designed to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers,
employees and agents with Anti-Corruption Laws and applicable Sanctions, and Borrower, its Subsidiaries and their respective officers
and employees and to the knowledge of Borrower its directors and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions
in all material respects.

 

None of Borrower, any of its Subsidiaries
or any of their respective directors, officers or employees, or to the knowledge of Borrower, any agent for Borrower or its Subsidiaries
that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person. No Loan,
use of proceeds or other transaction contemplated by this Agreement will violate Anti-Corruption Laws or applicable Sanctions.

 

7.20       Financial
Covenants.

 

(a)       Minimum
Cash.

 

(i)       Borrower
shall maintain, at all times, Qualified Cash in an amount greater than or equal to, subject to clause (b) below, (A) after the Initial
Advance Date and until the achievement of the EUA Milestone 1, $10,000,000 plus the Qualified Cash A/P Amount and (B) on and after
the Advance Date for any Tranche 2 Advance and until achievement of the BLA Milestone, $20,000,000 plus the Qualified Cash A/P
Amount. The requirements in this Section 7.20(a)(i) shall be waived for any date that Borrower’s Market Capitalization exceeds $700,000,000
on such date.

 

    	 		 

    	 

    

 

(ii)       If
Borrower makes a cash payment in respect of Permitted Convertible Debt subject to satisfaction of the Redemption Conditions, Borrower
shall, at all times thereafter, maintain Qualified Cash in the amount required by the defined term “Redemption Conditions”.

 

(b)       If
Lenders have converted a portion of the Loan into shares of Common Stock pursuant to Section 8.2, the minimum amounts of Qualified Cash
required by Section 7.20(a)(i)(A) and (B) shall be permanently reduced by the amount equal to (such amount, the “Minimum Cash Reduction
Amount”) 50% of the Loan that has so been converted into Common Stock pursuant to Section 8.2.

 

7.21       Intellectual
Property. Each Borrower shall (i) protect, defend and maintain the validity and enforceability of its material Intellectual Property;
(ii) promptly advise Agent in writing of material infringements of its Intellectual Property; and (iii) not allow any Intellectual Property
material to Borrowers’ business to be abandoned, forfeited or dedicated to the public without Agent’s written consent.

 

7.22       Transactions
with Affiliates. Borrower shall not and shall not permit any Subsidiary to, directly or indirectly, enter into or permit to exist any
transaction of any kind with any Affiliate of Borrower or such Subsidiary on terms that are less favorable to Borrower or such Subsidiary,
as the case may be, than those that might be obtained in an arm’s length transaction from a Person who is not an Affiliate of Borrower
or such Subsidiary.

 

SECTION
8. RIGHT TO invest; RIGHT TO CONVERT

 

8.1       Borrower
shall use commercially reasonable efforts to cause the managing underwriters of any Subsequent Offering conducted on or prior to the thirty
six (36) month anniversary of the Initial Advance Date to offer Hercules Capital, Inc. the right, in its respective sole discretion, to
participate in such Subsequent Financing in an amount of up to $2,000,000 on the same terms, conditions and pricing afforded to other
unaffiliated prospective investors participating in any such Subsequent Financing. This Section 8.1, and all rights and obligations hereunder,
shall survive the repayment of indebtedness under, and otherwise shall survive the expiration or other termination of, this Agreement.

 

8.2       Conversion
at Lenders’ Election.

 

(a)       Conversion
Election. Lenders may jointly elect at any time and from time to time during the Conversion Election Period to convert any portion of
the principal amount of the Loans then outstanding (the “Conversion Amount”) into shares of Common Stock (“Conversion
Shares”) at the Conversion Price pursuant to a Conversion Election Notice, to be delivered at the direction of Lenders by Agent
to Borrower, provided that the aggregate principal amount converted to Common Stock in accordance with this Section 8.2 shall not exceed
$5,000,000 (if the Conversion Election Notice is delivered after achievement of the BLA Milestone) or $10,000,000 (if the Conversion Election
Notice is delivered by or before achievement of the BLA Milestone), as applicable. A Conversion Election Notice, once delivered, shall
be irrevocable unless otherwise agreed in writing by Borrower. Not later than the third trading day after a Conversion Election Notice
has been duly delivered in accordance with the foregoing, Borrower shall credit to each Designated Holder a number of Conversion Shares
equal to (x) the Conversion Amount indicated in the applicable Conversion Election Notice divided by (y) Conversion Price. For the avoidance
of doubt, no premium or penalty shall apply to principal amounts converted pursuant to this Section 8.2.

 

    	 		 

    	 

    

 

(b)       Reservation
of Shares. Borrower shall reserve from its duly authorized capital stock not less than the number of shares of Common Stock that may be
issuable pursuant to this Section 8.2. Upon issuance of Conversion Shares pursuant to this Section 8.2, such shares shall be validly issued,
fully paid and non-assessable and free from all preemptive or similar rights, taxes, liens and charges with respect to the issue thereof.

 

(c)       Rule
144. With a view to making available to Designated Holders the benefits of Rule 144 (or its successor rule) and any other rule or regulation
of the Securities and Exchange Commission (the “SEC”) that may at any time permit Designated Holders to sell shares of Common
Stock issued pursuant to a Conversion Election Notice to the public without registration, Borrower covenants and agrees to: (i) use commercially
reasonable efforts to make and keep public information available, as those terms are understood and defined in Rule 144, until six (6)
months after such date as all of Conversion Shares issued may be sold without restriction by Designated Holders pursuant to Rule 144 or
any other rule of similar effect; (ii) use commercially reasonable efforts to file with the SEC in a timely manner (or obtain extensions
in respect thereof and file within the applicable grace period) all reports and other documents required of Borrower under the 1934 Act;
and (iii) furnish to Designated Holders, upon request, as long as Designated Holders own any shares of Common Stock issued pursuant to
a Conversion Election Notice, such information as may be reasonably requested in order to avail Designated Holders of any rule or regulation
of the SEC that permits the selling of any Conversion Shares issued without registration.

 

(d)       [Reserved].

 

(e)       [Reserved].

 

(f)       Limitations
on Conversion.

 

(i)        Beneficial
Ownership. Notwithstanding anything herein to the contrary, Borrower shall not issue a number of Conversion Shares pursuant to this Section
8.2 to the extent that, upon such issuance, the number of shares of Common Stock then beneficially owned by each Designated Holder and
its Affiliates and any group of other Persons whose beneficial ownership of Common Stock would be aggregated with such Designated Holder’s
for purposes of Section 13(d) of the Exchange Act would exceed 9.985% of the total number of shares of Common Stock then issued and outstanding
(the “9.985% Cap”); provided that the 9.985% Cap shall only apply to the extent that the Common Stock is deemed to constitute
an “equity security” pursuant to Rule 13d-1(i) promulgated under the Exchange Act, provided further that Lenders shall have
the right, upon 61 days’ prior written notice to Borrower, to waive the 9.985% Cap.

 

(ii)       Principal
Market Regulation. Borrower shall not issue a number of Conversion Shares pursuant to this Section 8.2, if the issuance of such shares
together with any previously issued Conversion Shares, would result in (A) the issuance of more than 19.99% of the Common Stock outstanding
as of the date of this Agreement or (B) Lenders, together with their Affiliates and any group of other Persons whose beneficial ownership
of Common Stock would be aggregated with such Designated Holder’s for purposes of Section 13(d) of the Exchange Act, beneficially
owning in excess of 19.99% of the then outstanding Common Stock.

 

    	 		 

    	 

    

 

(iii)       Beneficial
Ownership Determination. For purposes of this Section 8.2, “group” has the meaning set forth in Section 13(d) of the Exchange
Act and applicable regulations of the SEC, and the percentage held by each Designated Holder shall be determined in a manner consistent
with the provisions of Section 13(d) of the Exchange Act. Upon the written request of Agent, Borrower shall, within two (2) trading days,
confirm to Agent the number of Shares then outstanding. As used herein, beneficial ownership shall be determined in accordance with Section
13(d) of the Exchange Act.

 

SECTION
9. EVENTS OF DEFAULT

 

The occurrence of any one or more of the following
events shall be an Event of Default:

 

9.1       Payments.
Borrower fails to pay any amount (i) of principal or interest due under this Agreement or any of the other Loan Documents on the due date
or (ii) fees and other amounts due under this Agreement or any of the other Loan Documents within three (3) Business Days following the
due date thereof; provided, however, that an Event of Default shall not occur on account of a failure to pay due solely to an administrative
or operational error of Agent or the Lenders or Borrower’s bank if Borrower had the funds to make the payment when due and makes
the payment within three (3) Business Days following Borrower’s knowledge of such failure to pay; or

 

9.2       Covenants.
Borrower breaches or defaults in the performance of any covenant or Secured Obligation under this Agreement, or any of the other Loan
Documents or any other agreement among Borrower, Agent and the Lenders, and (a) with respect to a default under any covenant under
this Agreement (other than under Sections 4.5, 6 and 7), any other Loan Document, or any other agreement among Borrower, Agent and the
Lenders, such default continues for more than twenty (20) days after the earlier of the date on which (i) Agent or the Lenders has given
notice of such default to Borrower and (ii) Borrower has actual knowledge of such default or (b) with respect to a default under any of
Sections 4.5, 6 and 7, the occurrence of such default; or

 

9.3       Material
Adverse Effect. A circumstance has occurred that could reasonably be expected to have a Material Adverse Effect; provided that, solely
for purposes of this Section 9.3, the occurrence of any of the following, in and of itself, shall not constitute a Material Adverse Effect:
(i) adverse results or delays in any nonclinical or clinical trial, including, without limitation, the failure to demonstrate the desired
safety or efficacy of any drug or companion diagnostic; (ii) the denial, delay or limitation of approval of, or taking of any other regulatory
action by, the United States Food and Drug Administration or any other governmental entity with respect to any drug or companion diagnostic;
or (iii) any failure to achieve the BLA Milestone, the Capital Raise Milestone, the EUA Milestone 1 or the EUA Milestone 2, so long as
in each case the same does not affect the ability of Borrower to perform the Secured Obligations; or

 

9.4       Representations.
Any representation or warranty made by Borrower in any Loan Document shall have been false or misleading in any material respect when
made or when deemed made; or

 

    	 		 

    	 

    

 

9.5       Insolvency.
Borrower (A) (i) shall make an assignment for the benefit of creditors; or (ii) shall be unable to pay its debts as they become
due, or be unable to pay or perform under the Loan Documents, or shall become insolvent; or (iii) shall file a voluntary petition
in bankruptcy; or (iv) shall file any petition, answer, or document seeking for itself any reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation pertinent to such circumstances;
or (v) shall seek or consent to or acquiesce in the appointment of any trustee, receiver, or liquidator of Borrower or of all or
any substantial part (i.e., 33-1/3% or more) of the assets or property of Borrower; or (vi) shall cease operations of its business
as its business has normally been conducted, or terminate substantially all of its employees; or (vii) Borrower or its directors
or majority shareholders shall take any action initiating any of the foregoing actions described in clauses (i) through (vi); or
(B) either (i) forty five (45) days shall have expired after the commencement of an involuntary action against Borrower seeking reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation,
without such action being dismissed or all orders or proceedings thereunder affecting the operations or the business of Borrower being
stayed; or (ii) a stay of any such order or proceedings shall thereafter be set aside and the action setting it aside shall not be
timely appealed; or (iii) Borrower shall file any answer admitting or not contesting the material allegations of a petition filed
against Borrower in any such proceedings; or (iv) the court in which such proceedings are pending shall enter a decree or order granting
the relief sought in any such proceedings; or (v) forty five (45) days shall have expired after the appointment, without the consent or
acquiescence of Borrower, of any trustee, receiver or liquidator of Borrower or of all or any substantial part of the properties of Borrower
without such appointment being vacated; or

 

9.6       Attachments;
Judgments. Any portion of Borrower’s assets is attached or seized, or a levy is filed against any such assets with a fair market
value in excess of, or a judgment or judgments is/are entered for the payment of money (not covered by independent third party insurance
as to which liability has not been rejected by such insurance carrier), individually or in the aggregate, of at least $5,000,000, or Borrower
is enjoined or in any way prevented by court order from conducting any part of its business; or

 

9.7       Other
Obligations. The occurrence of any default under any agreement or obligation of Borrower involving any Indebtedness in excess of (a) prior
to the achievement of the Capital Raise Milestone, $2,500,000 and (b) at all times following the achievement of the Capital Raise Milestone,
$5,000,000, or any other material agreement or obligation, or any early payment is required or unwinding or termination occurs with respect
to any Permitted Bond Hedge Transaction or Permitted Warrant Transaction, or any condition giving rise to the foregoing is met, in each
case, with respect to which Borrower or its Affiliate is the “affected party” or “defaulting party” under the
terms of such Permitted Bond Hedge Transaction or Permitted Warrant Transaction, if a Material Adverse Effect could reasonably be expected
to result from such default, early payment, unwinding or termination.

 

SECTION
10. REMEDIES

 

10.1       General.
Upon the occurrence of any one or more Events of Default, Agent may, and at the direction of the Required Lenders shall, accelerate and
demand payment of all or any part of the Secured Obligations together with a Prepayment Charge and declare them to be immediately due
and payable (provided that, upon the occurrence of an Event of Default of the type described in Section 9.5, all of the Secured Obligations
(including, without limitation, the Prepayment Charge and the End of Term Charge) shall automatically be accelerated and made due and
payable, in each case without any further notice or act). Borrower hereby irrevocably appoints Agent as its lawful attorney-in-fact to: 
(a) exercisable following the occurrence of an Event of Default, (i) sign Borrower’s name on any invoice or bill of lading for any
account or drafts against account debtors; (ii) demand, collect, sue, and give releases to any account debtor for monies due, settle and
adjust disputes and claims about the accounts directly with account debtors, and compromise, prosecute, or defend any action, claim, case,
or proceeding about any Collateral (including filing a claim or voting a claim in any bankruptcy case in Agent’s or Borrower’s
name, as Agent may elect); (iii) make, settle, and adjust all claims under Borrower’s insurance policies; (iv) pay, contest or settle
any Lien, charge, encumbrance, security interest, or other claim in or to the Collateral, or any judgment based thereon, or otherwise
take any action to terminate or discharge the same; (v) transfer the Collateral into the name of Agent or a third party as the UCC permits;
and (vi) receive, open and dispose of mail addressed to Borrower; and (b) regardless of whether an Event of Default has occurred, (i)
endorse Borrower’s name on any checks, payment instruments, or other forms of payment or security; and (ii) notify all account debtors
to pay Agent directly.  Borrower hereby appoints Agent as its lawful attorney-in-fact to sign Borrower’s name on any documents
necessary to perfect or continue the perfection of Agent’s security interest in the Collateral regardless of whether an Event of
Default has occurred until all Secured Obligations have been satisfied in full and the Loan Documents have been terminated.  Agent’s
foregoing appointment as Borrower’s attorney in fact, and all of Agent’s rights and powers, coupled with an interest, are
irrevocable until all Secured Obligations have been fully repaid and performed and the Loan Documents have been terminated. Agent may,
and at the direction of the Required Lenders shall, exercise all rights and remedies with respect to the Collateral under the Loan Documents
or otherwise available to it under the UCC and other applicable law, including the right to release, hold, sell, lease, liquidate, collect,
realize upon, or otherwise dispose of all or any part of the Collateral and the right to occupy, utilize, process and commingle the Collateral.
All Agent’s rights and remedies shall be cumulative and not exclusive.

 

    	 		 

    	 

    

 

10.2       Collection;
Foreclosure. Upon the occurrence and during the continuance of any Event of Default, Agent may, and at the direction of the Required Lenders
shall, at any time or from time to time, apply, collect, liquidate, sell in one or more sales, lease or otherwise dispose of, any or all
of the Collateral, in its then condition or following any commercially reasonable preparation or processing, in such order as Agent may
elect. Any such sale may be made either at public or private sale at its place of business or elsewhere. Borrower agrees that any such
public or private sale may occur upon ten (10) calendar days’ prior written notice to Borrower. Agent may require Borrower to assemble
the Collateral and make it available to Agent at a place designated by Agent that is reasonably convenient to Agent and Borrower. The
proceeds of any sale, disposition or other realization upon all or any part of the Collateral shall be applied by Agent in the following
order of priorities:

 

First, to Agent and the Lenders in an amount
sufficient to pay in full Agent’s and the Lenders’ reasonable costs and professionals’ and advisors’ fees and
expenses as described in Section 11.12;

 

Second, to the Lenders in an amount equal
to the then unpaid amount of the Secured Obligations (including principal, interest, and the Default Rate interest), in such order and
priority as Agent may choose in its sole discretion; and

 

Finally, after the full and final payment
in Cash of all of the Secured Obligations (other than inchoate obligations), to any creditor holding a junior Lien on the Collateral,
or to Borrower or its representatives or as a court of competent jurisdiction may direct.

 

Agent shall be deemed to have acted reasonably in the custody, preservation
and disposition of any of the Collateral if it complies with the obligations of a secured party under the UCC.

 

10.3       No
Waiver. Agent shall be under no obligation to marshal any of the Collateral for the benefit of Borrower or any other Person, and Borrower
expressly waives all rights, if any, to require Agent to marshal any Collateral.

 

10.4       Cumulative
Remedies. The rights, powers and remedies of Agent hereunder shall be in addition to all rights, powers and remedies given by statute
or rule of law and are cumulative. The exercise of any one or more of the rights, powers and remedies provided herein shall not be construed
as a waiver of or election of remedies with respect to any other rights, powers and remedies of Agent.

 

SECTION
11. MISCELLANEOUS

 

11.1       Severability.
Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement shall be prohibited by or invalid under such law, such provision shall be ineffective only
to the extent and duration of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions
of this Agreement.

 

11.2       Notice.
Except as otherwise provided herein, any notice, demand, request, consent, approval, declaration, service of process or other communication
(including the delivery of Financial Statements) that is required, contemplated, or permitted under the Loan Documents or with respect
to the subject matter hereof shall be in writing, and shall be deemed to have been validly served, given, delivered, and received upon
the earlier of: (i) the day of transmission by electronic mail or hand delivery or delivery by an overnight express service or overnight
mail delivery service; or (ii) the third calendar day after deposit in the United States of America mails, with proper first class
postage prepaid, in each case addressed to the party to be notified as follows; provided that any such written communication to Borrower
shall be provided by electronic mail to the address noted below:

 

(a)            If
to Agent:

 

HERCULES CAPITAL, INC.

Legal Department

Attention: Chief Legal Officer and Himani Bhalla

400 Hamilton Avenue, Suite 310

Palo Alto, CA 94301

email: legal@htgc.com and hbhalla@htgc.com

Telephone: 650-289-3060

 

(b)            If
to the Lenders:

 

HERCULES CAPITAL, INC.

Legal Department

Attention: Chief Legal Officer and Himani Bhalla

400 Hamilton Avenue, Suite 310

Palo Alto, CA 94301

email: legal@htgc.com and hbhalla@htgc.com

Telephone: 650-289-3060

 

    	 		 

    	 

    

 

(c)            If
to Borrower:

 

HUMANIGEN, INC.

Attention: Chief Operating Officer/Chief Financial Officer

533 Airport Blvd. Suite 400

Burlingame, CA 94010

email: tmorris@humanigen.com and info@humanigen.com

 

or to such other address as each party may designate
for itself by like notice.

 

11.3       Entire
Agreement; Amendments.

 

(a)       This
Agreement and the other Loan Documents constitute the entire agreement and understanding of the parties hereto in respect of the subject
matter hereof and thereof, and supersede and replace in their entirety any prior proposals, term sheets, non-disclosure or confidentiality
agreements, letters, negotiations or other documents or agreements, whether written or oral, with respect to the subject matter hereof
or thereof (including Agent’s revised proposal letter dated February 7, 2021 and the Non-Disclosure Agreement).

 

(b)       Neither
this Agreement, any other Loan Document, nor any terms hereof or thereof may be amended, supplemented or modified except in accordance
with the provisions of this Section 11.3(b). The Required Lenders and Borrower party to the relevant Loan Document may, or, with the written
consent of the Required Lenders, the Agent and the Borrower party to the relevant Loan Document may, from time to time, (i) enter into
written amendments, supplements or modifications hereto and to the other Loan Documents for the purpose of adding any provisions to this
Agreement or the other Loan Documents or changing in any manner the rights of the Lenders or of the Borrower hereunder or thereunder or
(ii) waive, on such terms and conditions as the Required Lenders or the Agent, as the case may be, may specify in such instrument, any
of the requirements of this Agreement or the other Loan Documents or any default or Event of Default and its consequences; provided, however,
that no such waiver and no such amendment, supplement or modification shall (A) forgive the principal amount or extend the final scheduled
date of maturity of any Loan, extend the scheduled date of any amortization payment in respect of any Term Loan, reduce the stated rate
of any interest (or fee payable hereunder) or extend the scheduled date of any payment thereof, in each case without the written consent
of each Lender directly affected thereby; (B) eliminate or reduce the voting rights of any Lender under this Section 11.3(b) without the
written consent of such Lender; (C) reduce any percentage specified in the definition of Required Lenders, consent to the assignment or
transfer by the Borrower of any of its rights and obligations under this Agreement and the other Loan Documents, release all or substantially
all of the Collateral or release a Borrower from its obligations under the Loan Documents, in each case without the written consent of
all Lenders; or (D) amend, modify or waive any provision of Section 11.18 or Addendum 2 without the written consent of the Agent. Any
such waiver and any such amendment, supplement or modification shall apply equally to each Lender and shall be binding upon Borrower,
the Lender, the Agent and all future holders of the Loans.

 

11.4       No
Strict Construction. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity
or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto and no presumption
or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement.

 

11.5       No
Waiver. The powers conferred upon Agent and the Lenders by this Agreement are solely to protect its rights hereunder and under the other
Loan Documents and its interest in the Collateral and shall not impose any duty upon Agent or the Lenders to exercise any such powers.
No omission or delay by Agent or the Lenders at any time to enforce any right or remedy reserved to it, or to require performance of any
of the terms, covenants or provisions hereof by Borrower at any time designated, shall be a waiver of any such right or remedy to which
Agent or the Lenders is entitled, nor shall it in any way affect the right of Agent or the Lenders to enforce such provisions thereafter.

 

    	 		 

    	 

    

 

11.6       Survival.
All agreements, representations and warranties contained in this Agreement and the other Loan Documents or in any document delivered pursuant
hereto or thereto shall be for the benefit of Agent and the Lenders and shall survive the execution and delivery of this Agreement. Sections
6.3, 8.1, 11.14, 11.15 and 11.17 shall survive the termination of this Agreement.

 

11.7       Successors
and Assigns. The provisions of this Agreement and the other Loan Documents shall inure to the benefit of and be binding on Borrower and
its permitted assigns (if any). Borrower shall not assign its obligations under this Agreement or any of the other Loan Documents without
Agent’s express prior written consent, and any such attempted assignment shall be void and of no effect. Agent and the Lenders may
assign, transfer, or endorse its rights hereunder and under the other Loan Documents without prior notice to Borrower, and all of such
rights shall inure to the benefit of Agent’s and the Lenders’ successors and assigns; provided that, as long as no Event of
Default has occurred and is continuing, (a) neither Agent nor any Lender shall sell or assign all or any part of its interest hereunder
to a non-Affiliate without the consent of Borrower (not to be unreasonably withheld, delayed or conditioned); provided that Borrower shall
be deemed to have consented to any such sale or assignment if such sale or assignment is not rejected within ten (10) Business Days of
the request for consent therefor and (b) neither Agent nor any Lender may assign, transfer or endorse its rights hereunder or under the
Loan Documents to any party that is a direct competitor of Borrower (as reasonably determined by Agent), it being acknowledged that in
all cases, any transfer to an Affiliate of any Lender or Agent shall be allowed. Notwithstanding the foregoing, (x) in connection with
any assignment by a Lender as a result of a forced divestiture at the request of any regulatory agency, the restrictions set forth herein
shall not apply and Agent and the Lenders may assign, transfer or indorse its rights hereunder and under the other Loan Documents to any
Person or party and (y) in connection with a Lender’s own financing or securitization transactions, the restrictions set forth herein
shall not apply and Agent and the Lenders may assign, transfer or indorse its rights hereunder and under the other Loan Documents to any
Person or party providing such financing or formed to undertake such securitization transaction and any transferee of such Person or party
upon the occurrence of a default, event of default or similar occurrence with respect to such financing or securitization transaction;
provided that no such sale, transfer, pledge or assignment under this clause (y) shall release such Lender from any of its obligations
hereunder or substitute any such Person or party for such Lender as a party hereto until Agent shall have received and accepted an effective
assignment agreement from such Person or party in form satisfactory to Agent executed, delivered and fully completed by the applicable
parties thereto, and shall have received such other information regarding such assignee as Agent reasonably shall require. The Agent,
acting solely for this purpose as an agent of the Borrower, shall maintain at one of its offices in the United States a register for the
recordation of the names and addresses of the Lender(s), and the Term Commitments of, and principal amounts (and stated interest) of the
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 Lender(s) 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.

 

    	 		 

    	 

    

 

11.8          Participations.
Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register
on which it enters the name and address of each participant and the principal amounts (and stated interest) of each participant’s
interest in the Loans or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender
shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any participant or any
information relating to a participant’s interest in any commitments, loans, its other obligations under any Loan Document) to any
Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation
is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall
be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the
owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt,
the Agent (in its capacity as Agent) shall have no responsibility for maintaining a Participant Register. Borrower agrees that each participant
shall be entitled to the benefits of the provisions in Addendum 1 attached hereto (subject to the requirements and limitations therein,
including the requirements under Section 7 of Addendum 1 attached hereto (it being understood that the documentation required under Section
7 of Addendum 1 attached hereto shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired
its interest by assignment pursuant to Section 11.7; provided that such participant shall not be entitled to receive any greater payment
under Addendum 1 attached hereto, with respect to any participation, than its participating Lender would have been entitled to receive,
except to the extent such entitlement to receive a greater payment results from a change in law that occurs after the participant acquired
the applicable participation.

 

11.9          Governing
Law. This Agreement and the other Loan Documents have been negotiated and delivered to Agent and the Lenders in the State of California,
and shall have been accepted by Agent and the Lenders in the State of California. Payment to Agent and the Lenders by Borrower of the
Secured Obligations is due in the State of California. This Agreement and the other Loan Documents shall be governed by, and construed
and enforced in accordance with, the laws of the State of California, excluding conflict of laws principles that would cause the application
of laws of any other jurisdiction.

 

11.10        Consent
to Jurisdiction and Venue. All judicial proceedings (to the extent that the reference requirement of Section 11.11 is not applicable)
arising in or under or related to this Agreement or any of the other Loan Documents may be brought in any state or federal court located
in the State of California. By execution and delivery of this Agreement, each party hereto generally and unconditionally: (a) consents
to nonexclusive personal jurisdiction in Santa Clara County, State of California; (b) waives any objection as to jurisdiction or
venue in Santa Clara County, State of California; (c) agrees not to assert any defense based on lack of jurisdiction or venue in
the aforesaid courts; and (d) irrevocably agrees to be bound by any judgment rendered thereby in connection with this Agreement or
the other Loan Documents. Service of process on any party hereto in any action arising out of or relating to this Agreement shall be effective
if given in accordance with the requirements for notice set forth in Section 11.2, and shall be deemed effective and received as
set forth in Section 11.2. Nothing herein shall affect the right to serve process in any other manner permitted by law or shall limit
the right of either party to bring proceedings in the courts of any other jurisdiction.

 

    	 		 

    	 

    

 

11.11        Mutual
Waiver of Jury Trial / Judicial Reference.

 

(a)       Because
disputes arising in connection with complex financial transactions are most quickly and economically resolved by an experienced and expert
Person and the parties wish applicable state and federal laws to apply (rather than arbitration rules), the parties desire that their
disputes be resolved by a judge applying such applicable laws. EACH OF BORROWER, AGENT AND THE LENDERS SPECIFICALLY WAIVES ANY RIGHT IT
MAY HAVE TO TRIAL BY JURY OF ANY CAUSE OF ACTION, CLAIM, CROSS-CLAIM, COUNTERCLAIM, THIRD PARTY CLAIM OR ANY OTHER CLAIM (COLLECTIVELY,
“CLAIMS”) ASSERTED BY BORROWER AGAINST AGENT, THE LENDERS OR THEIR RESPECTIVE ASSIGNEE OR BY AGENT, THE LENDERS OR THEIR RESPECTIVE
ASSIGNEE AGAINST BORROWER. This waiver extends to all such Claims, including Claims that involve Persons other than Agent, Borrower and
the Lenders; Claims that arise out of or are in any way connected to the relationship among Borrower, Agent and the Lenders; and any Claims
for damages, breach of contract, tort, specific performance, or any equitable or legal relief of any kind, arising out of this Agreement,
any other Loan Document.

 

(b)       If
the waiver of jury trial set forth in Section 11.11(a) is ineffective or unenforceable, the parties agree that all Claims shall be resolved
by reference to a private judge sitting without a jury, pursuant to Code of Civil Procedure Section 638, before a mutually acceptable
referee or, if the parties cannot agree, a referee selected by the Presiding Judge of the Santa Clara County, California. Such proceeding
shall be conducted in Santa Clara County, California, with California rules of evidence and discovery applicable to such proceeding.

 

(c)       In
the event Claims are to be resolved by judicial reference, either party may seek from a court identified in Section 11.10, any prejudgment
order, writ or other relief and have such prejudgment order, writ or other relief enforced to the fullest extent permitted by law notwithstanding
that all Claims are otherwise subject to resolution by judicial reference.

 

11.12       Professional
Fees. Borrower promises to pay Agent’s and the Lenders’ fees and expenses necessary to finalize the loan documentation, including
but not limited to reasonable attorneys’ fees, UCC searches, filing costs, and other miscellaneous expenses. In addition, Borrower
promises to pay any and all reasonable attorneys’ and other professionals’ fees and expenses incurred by Agent and the Lenders
after the Effective Date in connection with or related to: (a) the Loan; (b) the administration, collection, or enforcement
of the Loan; (c) the amendment or modification of the Loan Documents; (d) any waiver, consent, release, or termination under
the Loan Documents; (e) the protection, preservation, audit, field exam, sale, lease, liquidation, or disposition of Collateral or
the exercise of remedies with respect to the Collateral; (f) any legal, litigation, administrative, arbitration, or out of court
proceeding in connection with or related to Borrower or the Collateral, and any appeal or review thereof; and (g) any bankruptcy,
restructuring, reorganization, assignment for the benefit of creditors, workout, foreclosure, or other action related to Borrower, the
Collateral, the Loan Documents, including representing Agent or the Lenders in any adversary proceeding or contested matter commenced
or continued by or on behalf of Borrower’s estate, and any appeal or review thereof.

 

11.13       Confidentiality.
Agent and the Lenders acknowledge that certain items of Collateral and information provided to Agent and the Lenders by Borrower are confidential
and proprietary information of Borrower, if and to the extent such information either (x) is marked as confidential by Borrower at the
time of disclosure, or (y) should reasonably be understood to be confidential (the “Confidential Information”). Accordingly,
Agent and the Lenders agree that any Confidential Information it may obtain in the course of acquiring, administering, or perfecting Agent’s
security interest in the Collateral shall not be disclosed to any other Person or entity in any manner whatsoever, in whole or in part,
without the prior written consent of Borrower, except that Agent and the Lenders may disclose any such information: (a) to its Affiliates
and its partners, investors, lenders, directors, officers, employees, agents, advisors, counsel, accountants, counsel,

 

    	 		 

    	 

    

 

representative
and other professional advisors if Agent or the Lenders in their sole discretion determines that any such party should have access to
such information in connection with such party’s responsibilities in connection with the Loan or this Agreement and; provided that
such recipient of such Confidential Information either (i) agrees to be bound by the confidentiality provisions of this paragraph or (ii)
is otherwise subject to confidentiality restrictions that reasonably protect against the disclosure of Confidential Information; (b) if
such information is generally available to the public or to the extent such information becomes publicly available other than as a result
of a breach of this Section or becomes available to Agent or any Lender, or any of their respective Affiliates on a non-confidential basis
from a source other than the Borrower; (c) if required or appropriate in any report, statement or testimony submitted to any governmental
authority having or claiming to have jurisdiction over Agent or the Lenders and any rating agency; (d) if required or appropriate
in response to any summons or subpoena or in connection with any litigation, to the extent permitted or deemed advisable by Agent’s
or the Lenders’ counsel; (e) to comply with any legal requirement or law applicable to Agent or the Lenders or demanded by
any governmental authority; (f) to the extent reasonably necessary in connection with the exercise of, or preparing to exercise,
or the enforcement of, or preparing to enforce, any right or remedy under any Loan Document (including Agent’s sale, lease, or other
disposition of Collateral after default), or any action or proceeding relating to any Loan Document; (g) to any participant or assignee
of Agent or the Lenders or any prospective participant or assignee; provided that such participant or assignee or prospective participant
or assignee is subject to confidentiality restrictions that reasonably protect against the disclosure of Confidential Information; (h)
to any investor or potential investor (and each of their respective Affiliates or clients) in the Agent or Lender (or each of their respective
Affiliates); provided that such investor, potential investor, Affiliate or client is subject to confidentiality obligations with respect
to the Confidential Information; (i) otherwise to the extent consisting of general portfolio information that does not identify Borrower;
or (j) otherwise with the prior consent of Borrower; provided that any disclosure made in violation of this Agreement shall not affect
the obligations of Borrower or any of its Affiliates or any guarantor under this Agreement or the other Loan Documents. Agent’s
and the Lenders’ obligations under this Section 11.13 shall supersede all of their respective obligations under the Non-Disclosure
Agreement.

 

11.14       Assignment
of Rights. Borrower acknowledges and understands that Agent or the Lenders may, subject to Section 11.7, sell and assign all or part of
its interest hereunder and under the Loan Documents to any Person or entity (an “Assignee”). After such assignment the term
“Agent” or “Lender” as used in the Loan Documents shall mean and include such Assignee, and such Assignee shall
be vested with all rights, powers and remedies of Agent and the Lenders hereunder with respect to the interest so assigned; but with respect
to any such interest not so transferred, Agent and the Lenders shall retain all rights, powers and remedies hereby given. No such assignment
by Agent or the Lenders shall relieve Borrower of any of its obligations hereunder. the Lenders agrees that in the event of any transfer
by it of the promissory note(s) (if any), it will endorse thereon a notation as to the portion of the principal of the promissory note(s),
which shall have been paid at the time of such transfer and as to the date to which interest shall have been last paid thereon.

 

11.15       Revival
of Secured Obligations. This Agreement and the Loan Documents shall remain in full force and effect and continue to be effective if any
petition is filed by or against Borrower for liquidation or reorganization, if Borrower becomes insolvent or makes an assignment for the
benefit of creditors, if a receiver or trustee is appointed for all or any significant part of Borrower’s assets, or if any payment
or transfer of Collateral is recovered from Agent or the Lenders. The Loan Documents and the Secured Obligations and Collateral security
shall continue to be effective, or shall be revived or reinstated, as the case may be, if at any time payment and performance of the Secured
Obligations or any transfer of Collateral to Agent, or any part thereof is rescinded, avoided or avoidable, reduced in amount, or must
otherwise be restored or returned by, or is recovered from, Agent, the Lenders or by any obligee of the Secured Obligations, whether as
a “voidable preference,” “fraudulent conveyance,” or otherwise, all as though such payment, performance, or transfer
of Collateral had not been made. In the event that any payment, or any part thereof, is rescinded, reduced, avoided, avoidable, restored,
returned, or recovered, the Loan Documents and the Secured Obligations shall be deemed, without any further action or documentation, to
have been revived and reinstated except to the extent of the full, final, and indefeasible payment to Agent or the Lenders in Cash.

 

    	 		 

    	 

    

 

11.16       Counterparts.
This Agreement and any amendments, waivers, consents or supplements hereto may be executed in any number of counterparts, and by different
parties hereto in separate counterparts, each of which when so delivered shall be deemed an original, but all of which counterparts shall
constitute but one and the same instrument.

 

11.17       No
Third Party Beneficiaries. No provisions of the Loan Documents are intended, nor will be interpreted, to provide or create any third-party
beneficiary rights or any other rights of any kind in any Person other than Agent, the Lenders and Borrower unless specifically provided
otherwise herein, and, except as otherwise so provided, all provisions of the Loan Documents will be personal and solely among Agent,
the Lenders and the Borrower.

 

11.18       Agency.
Agent and each Lender hereby agree to the terms and conditions set forth on Addendum 2 attached hereto. Borrower acknowledges and agrees
to the terms and conditions set forth on Addendum 2 attached hereto.

 

11.19       Publicity.
None of the parties hereto nor any of its respective member businesses and Affiliates shall, without the other parties’ prior written
consent (which shall not be unreasonably withheld or delayed), publicize or use (a) the other party’s name (including a brief description
of the relationship among the parties hereto), logo or hyperlink to such other parties’ web site, separately or together, in written
and oral presentations, advertising, promotional and marketing materials, client lists, public relations materials or on its web site
(together, the “Publicity Materials”); (b) the names of officers of such other parties in the Publicity Materials; and (c)
such other parties’ name, trademarks, servicemarks in any news or press release concerning such party; provided however, notwithstanding
anything to the contrary herein, no such consent shall be required (i) to the extent necessary to comply with the requests of any regulators,
legal requirements or laws applicable to such party, pursuant to any listing agreement with any national securities exchange (so long
as such party provides prior notice to the other party hereto to the extent reasonably practicable) and (ii) to comply with Section 11.13.

 

11.20       Initial
Advance. This Agreement shall terminate, and all amounts owed by Borrower pursuant to Section 11.12 shall become immediately due and payable,
if the Initial Advance Date has not occurred on or prior to March 23, 2021 (or such later date as Borrower and Agent may mutually agree).

 

    	 		 

    	 

    

 

11.21       Electronic
Execution of Certain Other Documents. The words “execution,” “execute”, “signed,” “signature,”
and words of like import in or related to any document to be signed in connection with this Agreement and the transactions contemplated
hereby (including without limitation assignments, assumptions, amendments, waivers and consents) shall be deemed to include electronic
signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Agent, or the
keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed
signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law,
including the Federal Electronic Signatures in Global and National Commerce Act, the California Uniform Electronic Transaction Act, or
any other similar state laws based on the Uniform Electronic Transactions Act.

 

(SIGNATURES TO FOLLOW)

 

    	 		 

    	 

    

 

IN WITNESS WHEREOF, Borrower, Agent and the Lenders
have duly executed and delivered this Loan and Security Agreement as of the day and year first above written.

 

	 	BORROWER:
	 	 	 
	 	HUMANIGEN, INC.
	 	 	 
	 	Signature:	/s/ Timothy Morris
	 	 	 
	 	Print Name:	Timothy Morris
	 	 	 
	 	Title:	Chief Operating Officer and 

Chief Financial Officer  

 

Accepted in Palo Alto, California:

 

	 	AGENT:
	 	 	 
	 	HERCULES CAPITAL, INC.
	 	 	 
	 	Signature:	/s/ Zhuo Huang
	 	 	 
	 	Print Name:	Zhuo Huang
	 	 	 
	 	Title:	Associate General Counsel

 

	 	LENDERS:
	 	 
	 	HERCULES CAPITAL, INC.
	 	 	 
	 	Signature:	/s/ Zhuo Huang
	 	 	 
	 	Print Name:	Zhuo Huang
	 	 	 
	 	Title:	Associate General Counsel

 

    	 		 

    	 

    

 

Table of Addenda, Exhibits and Schedules

 

 

 

	Addendum 1:	Taxes; Increased Costs
	Addendum 2:	Agent and Lender Terms
	 	 
	Exhibit A:	Advance Request 

Attachment to Advance Request
	Exhibit B:	Name, Locations, and Other Information for Borrower
	Exhibit C:	Borrower’s Patents, Trademarks, Copyrights and Licenses
	Exhibit D:	Borrower’s Deposit Accounts and Investment Accounts
	Exhibit E:	Compliance Certificate
	Exhibit F:	Joinder Agreement
	Exhibit G:	Conversion Election Notice
	Exhibit H:	ACH Debit Authorization Agreement
	Exhibit I:	[Reserved]
	Exhibit J-1:	Form of U.S. Tax Compliance Certificate (For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)
	Exhibit J-2:	Form of U.S. Tax Compliance Certificate (For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)
	Exhibit J-3:	Form of U.S. Tax Compliance Certificate (For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)
	Exhibit J-4:	Form of U.S. Tax Compliance Certificate (For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)
	 	 
	Schedule 1.1	Commitments
	Schedule 1	Subsidiaries
	Schedule 1A	Excluded Trade Payables
	Schedule 1B	Existing Permitted Indebtedness
	Schedule 1C	Existing Permitted Investments
	Schedule 1D	Existing Permitted Liens
	Schedule 5.3	Consents, Etc.
	Schedule 5.8	Tax Matters
	Schedule 5.9	Intellectual Property Claims
	Schedule 5.10	Intellectual Property
	Schedule 5.11	Borrower Products
	Schedule 5.14	SubsidiariesDocument

Exhibit 10.1

FOURTH AMENDMENT TO
LOAN AND SECURITY AGREEMENT

This Fourth Amendment to Loan and Security Agreement (this “Amendment”) is made and entered into as of March 16, 2021 by and between PACIFIC WESTERN BANK, a California state chartered bank (“Bank”), and CIDARA THERAPEUTICS, INC. (“Borrower”).

RECITALS

Borrower and Bank are parties to that certain Loan and Security Agreement dated as of October 3, 2016 (as amended from time to time, the “Agreement”). The parties desire to amend the Agreement in accordance with the terms of this Amendment.

NOW, THEREFORE, the parties agree as follows:

1)Pursuant to Section 6.2(iii) of the Agreement (as such section is in effect immediately prior to the effectiveness of this Amendment), Borrower is required to deliver to Bank an annual budget approved by Borrower’s Board of Directors no later than February 28th of each fiscal year (the “Annual Budget”). As of the date of this Amendment, Borrower has not delivered to Bank the Annual Budget for Borrower’s 2021 fiscal year (the “2021 Annual Budget”), resulting in a violation of the Agreement (the “2021 Annual Budget Violation”).

Bank hereby: (i) waives the 2021 Annual Budget Violation, (ii) waives the requirement for Borrower to provide Bank with the 2021 Annual Budget, and (iii) acknowledges receipt of a quarterly budget approved by Borrower’s Board of Directors for the fiscal quarter beginning January 1, 2021. For the avoidance of doubt, the foregoing waivers shall apply solely to Borrower’s 2021 fiscal year.

2)Section 6.2(iii) of the Agreement is hereby amended and restated, as follows:

(iii) annual budget approved by Borrower’s Board of Directors as soon as available but not later than February 28th of each year during the term of this Agreement; provided, however, that for the 2021 calendar year, Borrower shall instead deliver to Bank a quarterly budget approved by Borrower’s Board of Directors within 30 days after each fiscal quarter beginning April 1, 2021, July 1, 2021, and October 1, 2021;

3)Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement. The Agreement, as amended hereby, shall be and remain in full force and effect in accordance with its respective terms and hereby is ratified and confirmed in all respects. Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date hereof. Borrower ratifies and reaffirms the continuing effectiveness of all agreements entered into in connection with the Agreement.

4)Borrower represents and warrants that the representations and warranties contained in the Agreement are true and correct as of the date of this Amendment.

Cidara Therapeutics, Inc. – 4th Amendment to LSA

5)This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument.

6)As a condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the following:

a.this Amendment, duly executed by Borrower;

b.payment of all Bank Expenses, including Bank’s reasonable expenses for the documentation of this Amendment, and any UCC, good standing and intellectual property search or filing fees, which may be debited from any of Borrower’s accounts with Bank; and

c.such other documents and completion of such other matters, as Bank may reasonably deem necessary or appropriate.

[Signature Page Follows]
Cidara Therapeutics, Inc. – 4th Amendment to LSA

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

						
	CIDARA THERAPEUTICS, INC.	PACIFIC WESTERN Bank
	

By: _______________________________
	

By: _______________________________

	By: _______________________________	By: _______________________________
	Name:_____________________________	Name:_____________________________
	Title:  _____________________________	Title:  _____________________________

[Signature Page to Fourth Amendment to Loan and Security Agreement]
Cidara Therapeutics, Inc. – 4th Amendment to LSA

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