Document:

Exhibit 4.9

 

UNDERWRITER SERIES A CONVERTIBLE PREFERRED STOCK PURCHASE WARRANT

 

ONCONOVA THERAPEUTICS, INC.

 

	
 
    	
Issue   Date:
    
	
Warrant   Shares:
    	
Initial   Exercise Date:
    

 

THIS UNDERWRITER PREFERRED STOCK PURCHASE WARRANT (this “Warrant”) certifies that, for value received,               or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the date hereof (the “Initial Exercise Date”) and on or prior to 5:00 p.m. (New York City time) on the later of  (i) the one-year anniversary of the date on which we publicly announce through the filing of a Current Report on Form 8-K that the amendment to our certificate of incorporation to sufficiently increase our authorized shares of Common Stock to cover the conversion of all outstanding shares of Preferred Stock into Common Stock has been filed with the Secretary of State of the State of Delaware (the “Charter Amendment Date”) and (ii) the earlier of (A) the one-month anniversary of the earlier of the date on which the Company (as defined below) publicly release top-line data analysis results for our Phase 3 INSPIRE pivotal trial and (B) December 31, 2019 (the “Termination Date”), provided that, if such date is not a Trading Day, the Termination Date should be the immediately following Trading Day but not thereafter and provided further that, in compliance with FINRA Rule 5110(f)(2)(G)(i), in no event shall the Termination Date will be after [       , 2023 [THE FIFTH ANNIVERSARY OF THE EFFECTIVE DATE OF THE REGISTRATION STATEMENT], to subscribe for and purchase from Onconova Therapeutics, Inc., a Delaware corporation (the “Company”), up to        shares of Preferred Stock (as subject to adjustment hereunder, the “Warrant Shares”). The purchase price of 0.1 of a share of Preferred Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

 

Section 1.     Definitions. In addition to the terms defined elsewhere in this Warrant, the following terms have the meanings indicated in this Section 1:

 

“Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Bid Price” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the bid price of the Common Stock for the time in question (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if the Common Stock is then listed on OTCQB or OTCQX and if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported in the “Pink Sheets” published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holders and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

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

 

“Common Stock” means the common stock of the Company, par value $0.01 per share, and any other class of securities into which such securities may hereafter be reclassified or changed.

 

“Common Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Preferred Stock” means the Series A Convertible Preferred Stock of the Company, par value $0.01 per share, and any other class of securities into which such securities may hereafter be reclassified or changed.

 

“Registration Statement” means the Company’s registration statement on Form S-1 (File No. 333-222374).

 

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

 

“Subsidiary” means the subsidiaries of the Company set forth on Exhibit 21.1 to the Registration Statement and shall, where applicable, also include any direct or indirect subsidiary of the Company formed or acquired after the date hereof

 

“Trading Day” means a day on which the Common Stock is traded on a Trading Market.

 

“Trading Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, or the New York Stock Exchange (or any successors to any of the foregoing.

 

“Transfer Agent” means EQ Shareowner Services, the current transfer agent of the Company, with a mailing address of 1110 Center Point Curve, Suite 101, Mendota Heights, MN 55120 and a facsimile number of (651) 450-4078, and any successor transfer agent of the Company.

 

“VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding Trading Day) on the Trading Market on which the Common Stock is then listed or quoted as

 

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reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if the Common Stock is then listed on OTCQB or OTCQX and if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding Trading Day) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported in the “Pink Sheets” published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holders) and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

“Warrants” means this Warrant and other Series A Convertible Preferred Stock purchase warrants issued by the Company pursuant to the Registration Statement.

 

Section 2.     Exercise.

 

a)     Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company of a duly executed facsimile copy (or e-mail attachment) of the Notice of Exercise in the form annexed hereto (the “Notice of Exercise”). Within the earlier of (i) two (2) Trading Days after the delivery to the Company of the Notice of Exercise, and (ii) the number of Trading Days comprising the Standard Settlement Period (as defined in Section 2(d)(i) herein) following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the Warrant Shares specified in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date on which the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within one (1) Trading Day of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

b)     Exercise Price. The exercise price per share of Preferred Stock under this Warrant shall be $      per 0.1 of a share of Preferred Stock, subject to adjustment hereunder (the “Exercise Price”).

 

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c)     Cashless Exercise. At the option of the Holder, this Warrant may also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the  Holder shall be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

(A) = as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined in Rule 600(b)(64) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the option of the Holder, either (y) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise or (z) the Bid Price of the Common Stock on the principal Trading Market as reported by Bloomberg L.P. as of the time of the Holder’s execution of the applicable Notice of Exercise if such Notice of Exercise is executed during “regular trading hours” on a Trading Day and is delivered within two (2) hours thereafter (including until two (2) hours after the close of “regular trading hours” on a Trading Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant to Section 2(a) hereof after the close of “regular trading hours” on such Trading Day;

 

(B) = the Exercise Price of this Warrant, as adjusted hereunder; and

 

(X) = the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

 

If Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9) of the Securities Act, the Warrant Shares shall take on the characteristics of the Warrants being exercised. The Company agrees not to take any position contrary to this Section 2(c).

 

Notwithstanding anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise pursuant to this Section 2(c).

 

d)     Mechanics of Exercise.

 

i.                  Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted to the Holder by physical delivery of a certificate, registered in the Company’s share register in the name of the Holder or its designee, for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise by the date that is the earliest of (i) two (2) Trading Days after the delivery to the Company of the Notice of Exercise, (ii) two (2) Trading Days after delivery of the aggregate Exercise Price to the Company and (iii) the number of Trading Days comprising the Standard Settlement Period after the delivery to the Company of the Notice of Exercise (such date, the “Warrant Share Delivery Date”). Upon delivery of the Notice of Exercise, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with

 

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respect to which this Warrant has been exercised, irrespective of the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price (other than in the case of a cashless exercise) is received within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period following delivery of the Notice of Exercise. The Company agrees to maintain a transfer agent that is a participant in the FAST program so long as this Warrant remains outstanding and exercisable. As used herein, “Standard Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the Company’s primary Trading Market with respect to the Common Stock as in effect on the date of delivery of the Notice of Exercise. Notwithstanding the foregoing, commencing on the next business day after the Charter Amendment Date, the Holder shall be entitled to deliver a notice of conversion of the Warrant Shares under the terms of the Preferred Stock and the Certificate of Designation governing the Preferred Stock at such time as such Holder delivers a Notice of Exercise pursuant to Section 2(a) hereunder and such notice of conversion shall be deemed to be delivered on the date of such Notice of Exercise.  In the event the Company fails to timely deliver the shares of Common Stock issuable upon conversion of the Warrant Shares under the terms of the Preferred Stock and the Certificate of Designation governing such Preferred Stock, the provisions covering such failure to timely deliver such shares of Common Stock in the Certificate of Designation governing the terms of such Preferred Stock shall govern the Company’s obligations therefor.

 

ii.     Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

 

iii.     Rescission Rights. If the Company fails to transmit or failed to cause the transfer agent to transmit to the Holder the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

 

iv.     Fractional Shares or Script. In the event of fractional shares, the Company shall be obligated to issue shares rounded down to the nearest tenth of a share of Preferred Stock.

 

vi.     Charges, Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event that Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise and all fees to the Depository Trust Company (or another established

 

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clearing corporation performing similar functions) required for same-day electronic delivery of the Warrant Shares.

 

vii.     Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof.

 

Section 3.     Certain Adjustments.

 

a)     Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions on shares of its Preferred Stock or any other equity or equity equivalent securities payable in shares of Preferred Stock (which, for avoidance of doubt, shall not include any shares of Preferred Stock issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Preferred Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Preferred Stock into a smaller number of shares, or (iv) issues by reclassification of shares of the Preferred Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Preferred Stock (excluding treasury shares, if any), as the case may be, outstanding immediately before such event and of which the denominator shall be the number of shares of Preferred Stock, outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

b)     [Reserved]

 

c)     Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company grants, issues or sells any Preferred Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Preferred Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Preferred Stock acquirable upon complete exercise of this Warrant [(without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation)] immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Preferred Stock, are to be determined for the grant, issue or sale of such Purchase Rights.

 

d)     Pro Rata Distributions. During such time as this Warrant is outstanding, if the Company shall declare or make any dividend (other than cash) or other distribution of its assets (or rights to acquire its assets) to holders of shares of Preferred Stock by way of return of capital or otherwise (including, without limitation, any distribution of stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the 

 

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number of shares of Preferred Stock acquirable upon complete exercise of this Warrant immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Preferred Stock are to be determined for the participation in such Distribution.

 

e)     Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each share of Common Stock that would have been issuable upon conversion of the Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder [(without regard to any limitation in Section 2(e) on the exercise of this Warrant)], the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock issuable upon conversion of the number of Warrant Shares for which this Warrant is exercisable immediately prior to such Fundamental Transaction [(without regard to any limitation in Section 2(e) on the exercise of this Warrant)]. For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance 

 

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to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon conversion of the Warrant Shares issuable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant, including failure to achieve the Charter Amendment Date) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein.

 

f)     Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 3, the number of shares of Preferred Stock or Common Stock, as the case may be, deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Preferred Stock or Common Stock (excluding treasury shares, if any), as the case may be, issued and outstanding.

 

g)     Notice to Holder.

 

i.     Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

ii.     Notice to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Preferred Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Preferred Stock, (C) the Company shall authorize the granting to all holders of the Preferred Stock, rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Preferred Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Preferred Stock, is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be delivered by facsimile or email to the Holder at its last facsimile number or email address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the 

 

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holders of the Preferred Stock, to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Preferred Stock e, shall be entitled to exchange their shares of Preferred Stock, for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice provided in this Warrant constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

Section 4.     Transfer of Warrant.

 

a)     Transferability. Pursuant to FINRA Rule 5110(g)(1), neither this Warrant nor any Warrant Shares issued upon exercise of this Warrant shall be sold, transferred, assigned, pledged or hypothecated, or be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of the securities by any person for a period of 180 days immediately following the date of effectiveness or commencement of sales of the offering pursuant to which this Warrant is being issued, except the transfer of any security:

 

(i)                               by operation of law or by reason of reorganization of the Company;

 

(ii)                            to any FINRA member firm participating in the offering and the officers and partners thereof, if all securities so transferred remain subject to the lock-up restriction in this Section 4(a) for the remainder of the time period;

 

(iii)                         if the aggregate amount of securities of the Company held by the Holder or related person do not exceed 1% of the securities being offered;

 

(iv)                        that is beneficially owned on a pro-rata basis by all equity owners of an investment fund, provided that no participating member manages or otherwise directs investments by the fund, and participating members in the aggregate do not own more than 10% of the equity in the fund; or

 

(v)                           the exercise or conversion of any security, if all securities received remain subject to the lock-up restriction in this Section 4(a) for the remainder of the time period.

 

Subject to the foregoing restriction, this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees,

 

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as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company within three (3) Trading Days of the date on which the Holder delivers an assignment form to the Company assigning this Warrant in full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

 

b)     New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the Issue Date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 

c)     Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

 

Section 5.     Miscellaneous.

 

a)     No Rights as Stockholder Until Exercise; No Settlement in Cash. This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth in Section 3. Without limiting the rights of a Holder to receive Warrant Shares on a “cashless exercise”, in no event will the Company be required to net cash settle a Warrant exercise.

 

b)     Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

 

c)     Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Trading Day, then, such action may be taken or such right may be exercised on the next succeeding Trading Day.

 

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d)     Authorized Shares.

 

The Company covenants that during the period the Warrant is outstanding, it will reserve from its authorized and unissued Preferred Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant. The Company further covenants that its  issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of issuing the necessary Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common Stock may be listed. The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue).

 

Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its Tenth Amended and Restated Certificate of Incorporation, as amended, including the Certificate of Designation governing the rights of the Preferred Stock, or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

 

Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.

 

e)     Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Warrant (whether brought against a party hereto or their respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith

 

11

 

or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably  waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Warrant and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If either party shall commence an action, suit or proceeding to enforce any provisions of this Warrant, the prevailing party in such action, suit or proceeding shall be reimbursed by the other party for their reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

 

f)     Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities laws.

 

g)     Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies, notwithstanding the fact the Holder’s right to exercise this Warrant terminates on the Termination Date. If the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

 

h)     Notices. Any notices, consents, waivers or other document or communications required or permitted to be given or delivered under the terms of this Warrant must be in writing and will be deemed to have been delivered: (i) upon receipt, if delivered personally; (ii) when sent, if sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); (iii) when sent, if sent by e-mail (provided that such sent e-mail is kept on file (whether electronically or otherwise) by the sending party and the sending party does not receive an automatically generated message from the recipient’s e-mail server that such e-mail could not be delivered to such recipient) and (iv) if sent by overnight courier service, one (1) Trading Day after deposit with an overnight courier service with next day delivery specified, in each case, properly addressed to the party to receive the same. The addresses, facsimile numbers and e-mail addresses for such communications shall be:

 

If to the Company:

 

Onconova Therapeutics, Inc.

375 Pheasant Run, Suite Newtown, PA 18954

Facsimile: (267) 759-3681

E-mail: MGuerin@onconova.us

Attention: Mark Guerin, Chief Financial Officer

 

12

 

If to a Holder, to its address, facsimile number or e-mail address set forth herein or on the books and records of the Company.

 

i)     Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

 

j)     Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

 

k)     Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.

 

l)     Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.

 

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

 

n)     Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

 

********************

 

(Signature Page Follows)

 

13

 

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

	
 
    	
ONCONOVA THERAPEUTICS, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   
    
	
 
    	
 
    	
Title:
    

 

14

 

NOTICE OF EXERCISE

 

TO:     ONCONOVA THERAPEUTICS, INC.

 

(1)     The undersigned hereby elects to purchase          Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

 

(2)     Payment shall take the form of (check applicable box):

 

o in lawful money of the United States; or

 

o if permitted the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c).

 

(3)     Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:

 

 

(4)     The time of day this Notice of Exercise is being executed is:

 

 

The Warrant Shares shall be delivered to the following DWAC Account Number:

 

 

 

[SIGNATURE OF HOLDER]

 

	
Name   of Investing Entity:
    	
 
    
	
 
    	
 
    
	
Signature of Authorized Signatory of Investing Entity:
    	
 
    
	
 
    	
 
    
	
Name   of Authorized Signatory:
    	
 
    
	
 
    	
 
    
	
Title   of Authorized Signatory:
    	
 
    	
 
    
	
 
    	
 
    
	
Date:
    	
 
    
	
 
    	
 
    
			

 

15

 

16

 

ASSIGNMENT FORM

 

(To assign the foregoing Warrant, execute this form and supply required information. Do not use this form to exercise the Warrant.)

 

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

	
Name:
    	
 
    
	
 
    	
(Please   Print)
    
	
 
    	
 
    
	
Address:
    	
 
    
	
 
    	
(Please   Print)
    
	
 
    	
 
    
	
Phone   Number: 
    	
 
    
	
 
    	
 
    
	
Email   Address:
    	
 
    
	
 
    	
 
    
	
Dated:                       ,
    	
 
    
	
 
    	
 
    
	
Holder’s   Signature:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Holder’s   Address:
    	
 
    	
 
    	
 
    

 

 

NOTE: The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant (but shall not include any ink-original document or any medallion guarantee or other type of guarantee or notarization of any document).

 

17Exhibit 10.1

 

AMENDMENT OF VENTURE LOAN AND SECURITY AGREEMENT

 

This AMENDMENT OF VENTURE LOAN AND SECURITY AGREEMENT
(this “Agreement”), dated as of February 2, 2018, is entered into by and among TITAN PHARMACEUTICALS, INC.
(“Borrower”), HORIZON CREDIT II LLC (“Lender”), as assignee of HORIZON TECHNOLOGY FINANCE
CORPORATION (“Horizon”), and Horizon as Collateral Agent.

 

RECITALS

 

A.                 
Borrower and Lender are parties to a certain Venture Loan and Security Agreement dated as of July 27, 2017 (as amended, restated,
supplemented or otherwise modified from time to time, the “Loan Agreement”) pursuant to which, among other
things, Horizon (i) provided a loan to Borrower as evidenced by a certain Secured Promissory Note (Loan A) executed by Borrower
in favor of Horizon, dated July 27, 2017, in the original principal amount of Three Million Five Hundred Thousand and 00/100 Dollars
($3,500,000.00) (“Loan A Note”), (ii) provided a loan to Borrower as evidenced by a certain Secured Promissory
Note (Loan B) executed by Borrower in favor of Horizon, dated July 27, 2017, in the original principal amount of Three Million
Five Hundred Thousand and 00/100 Dollars ($3,500,000.00) (“Loan B Note” and collectively with the Loan A Note,
the “Notes”) and (v) has been granted a security interest in all assets of Borrower, except, prior to the date
hereof, with respect to Borrower’s Intellectual Property (as defined in the Loan Agreement).

 

B.                 
Horizon has assigned all of its right, title and interest in and to the Notes to Lender pursuant to that certain Assignment of
Notes Receivable dated as of July 27, 2017.

 

C.                 
Borrower and Lender desire to amend the Loan Agreement to, among other things, grant Lender a security interest in Borrower’s
Intellectual Property, and provide for the prepayment of a portion of the Notes, but only to the extent, and in accordance with
the terms, and subject to the conditions, set forth herein.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the above recitals and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, Borrower, Lender and Collateral Agent hereby agree as follows:

 

1.                 
Definitions; Interpretation. Unless otherwise defined herein, all capitalized terms used herein and defined in the
Loan Agreement shall have the respective meanings given to those terms in the Loan Agreement. Other rules of construction set forth
in the Loan Agreement, to the extent not inconsistent with this Agreement, apply to this Agreement and are hereby incorporated
by reference.

 

2.                  Confirmation.
Borrower hereby acknowledges and agrees that: (i) the Loan Agreement sets forth the legal, valid, binding and continuing
obligations of Borrower to Lender, (ii) the Obligations to Lender under the Loan Agreement are secured by validly perfected
security interests in all assets of Borrower (except, prior to the date of this Agreement, with respect to Borrower’s
Intellectual Property), the effectiveness and validity of which are hereby confirmed and (iii) Borrower has no cause of
action, claim, defense or set-off against Lender or any of its affiliates and subsidiaries, officers, directors,
employees, shareholders, agents and representatives (“Related Parties”), arising on or prior to the date
of this Agreement, in any way regarding or relating to the Loan Agreement or Lender’s or its Related Parties’
actions thereunder and to the extent any such cause of action, claim, defense or set-off ever existed, whether foreseen or
unforeseen, it is waived and Lender and its Related Parties are released from any such causes of action, claims, defenses or
rights of set-off of Borrower.

 

     

     

    

 

		3.	Prepayment.

 

		(a)	Borrower and Lender hereby agree that in consideration of Lender’s
and Borrower’s agreements contained herein, Borrower shall, no later than two (2) Business Days following the execution of
this Agreement, prepay a portion of the outstanding principal amount of (i) Loan A in an amount equal to One Million Five Hundred
Thousand Dollars ($1,500,000) and (ii) Loan B in an amount equal to One Million Five Hundred Thousand Dollars ($1,500,000) (collectively,
the “First Prepayment”). Lender and Borrower acknowledge that after giving effect to the First Prepayment, the outstanding
principal balance of (i) Loan A shall be Two Million Dollars ($2,000,000) and (ii) Loan B shall be Two Million Dollars ($2,000,000).

 

		(b)	Borrower and Lender hereby agree that in consideration of Lender’s
and Borrower’s agreements contained herein, Borrower shall, no later than two (2) Business Days following the occurrence
of a Specified Event (as hereafter defined), prepay a portion of the outstanding principal amount of (i) Loan A in an amount equal
to Five Hundred Thousand Dollars ($500,000) and (ii) Loan B in an amount equal to Five Hundred Thousand Dollars ($500,000) (collectively,
the “Second Prepayment”). Lender and Borrower acknowledge that, assuming no additional prepayments have theretofore
been made since the date of the First Prepayment, after giving effect to the Second Prepayment, the outstanding principal balance
of (i) Loan A shall be One Million Five Hundred Thousand Dollars ($1,500,000) and (ii) Loan B shall be One Million Five Hundred
Thousand Dollars ($1,500,000). For purposes hereof, the term “Specified Event” means the earlier to occur of (a) the
receipt by Borrower of cash proceeds in an amount not less than Five Million Dollars ($5,000,000) as a result of the sale (or series
of related sales) by Borrower of its Equity Securities on or after the date of this Agreement and (b) May 14, 2018.

 

		(c)	Borrower and Lender hereby agree that notwithstanding anything contained
in Section 2.3(b) of the Loan Agreement to the contrary, each of the First Prepayment and Second Prepayment shall be made without
premium or penalty.

 

    - 2 -

     

    

 

		4.	Amendments to Loan Agreement.

 

		(a)	Borrower and Lender hereby agree that Section 4.1 of the Loan Agreement shall be deleted in its
entirety and replaced with the following:

 

“4.1 Grant of Security
Interests. Borrower grants to Collateral Agent and Lender a valid, continuing security interest in all presently existing and
hereafter acquired or arising Collateral in order to secure prompt, full and complete payment of any and all Obligations and in
order to secure prompt, full and complete performance by Borrower of each of its covenants and duties under each of the Loan Documents
(other than the Warrants). The “Collateral” shall mean and include all right, title, interest, claims and demands of
Borrower in the following:

 

(a)  
All goods (and embedded computer programs and supporting information included within the definition of “goods”
under the Code) and equipment now owned or hereafter acquired, including all laboratory equipment, computer equipment, office equipment,
machinery, fixtures, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing, and all attachments,
accessories, accessions, replacements, substitutions, additions, and improvements to any of the foregoing, wherever located;

 

(b)  
All inventory now owned or hereafter acquired, including all merchandise, raw materials, parts, supplies, packing and shipping
materials, work in process and finished products including such inventory as is temporarily out of Borrower’s custody or
possession or in transit and including any returns upon any accounts or other proceeds, including insurance proceeds, resulting
from the sale or disposition of any of the foregoing and any documents of title representing any of the above, and Borrower’s
books relating to any of the foregoing;

 

(c)  
All contract rights and general intangibles (including Intellectual Property), now owned or hereafter acquired, including
goodwill, license agreements (subject to the terms thereof), franchise agreements, blueprints, drawings, purchase orders, customer
lists, route lists, infringements, claims, software, computer programs, computer disks, computer tapes, literature, reports, catalogs,
design rights, income tax refunds, payment intangibles, commercial tort claims, payments of insurance and rights to payment of
any kind;

 

(d)  
All now existing and hereafter arising accounts, contract rights, royalties, license rights, license fees and all other
forms of obligations owing to Borrower arising out of the sale or lease of goods, the licensing of technology or the rendering
of services by Borrower (subject, in each case, to the contractual rights of third parties to require funds received by Borrower
to be expended in a particular manner), whether or not earned by performance, and any and all credit insurance, guaranties, and
other security therefor, as well as all merchandise returned to or reclaimed by Borrower and Borrower’s books relating to
any of the foregoing;

 

    - 3 -

     

    

 

(e)  
All documents, cash, deposit accounts, letters of credit and letters of credit rights (whether or not the letter of credit
is evidenced by a writing) and other supporting obligations, certificates of deposit, instruments, promissory notes, chattel paper
(whether tangible or electronic) and investment property, including all securities, whether certificated or uncertificated, security
entitlements, securities accounts, commodity contracts and commodity accounts, and all financial assets held in any securities
account or otherwise, wherever located, now owned or hereafter acquired and Borrower’s books relating to the foregoing; and

 

(f)   
To the extent not covered by clauses (a) through (e), all other personal property of the Borrower, whether tangible or intangible,
and any and all rights and interests in any of the above and the foregoing and, any and all claims, rights and interests in any
of the above and all substitutions for, additions and accessions to and proceeds thereof, including insurance, condemnation, requisition
or similar payments and proceeds of the sale or licensing of Intellectual Property.”

 

		(b)	Borrower and Lender hereby agree that Section 4.3 of the Loan Agreement shall be deleted in its
entirety and replaced with the following:

 

“4.3 Duration of
Security Interest. Collateral Agent’s and Lender’s security interest in the Collateral shall continue until the
indefeasible payment in full and the satisfaction of all Obligations, and termination of Lender’s commitment to fund the
Loans, whereupon such security interest shall terminate. Collateral Agent and Lender shall, at Borrower’s sole cost and expense,
execute such further documents and take such further actions as may be reasonably necessary to make effective the releases contemplated
by this Section 4.3 (including with respect to Collateral Agent’s and Lender’s security interest in Borrower’s
Intellectual Property as contemplated by the immediately succeeding sentence), including duly authorizing and delivering termination
statements for filing in all relevant jurisdictions under the Code and Intellectual Property security interest releases for filing
with the United States Patent and Trademark Office. Notwithstanding the foregoing, Collateral Agent’s and Lender’s
security interest in Borrower’s Intellectual Property shall automatically terminate if Borrower provides Lender with evidence
reasonably satisfactory to Lender that Borrower has, during any twelve (12) consecutive month period commencing on January 1, 2018
and continuing through December 31, 2019, received cash royalties and/or sales milestone payments in an aggregate amount of not
less than Five Hundred Thousand Dollars ($500,000) as the result of sales of Probuphine in the United States and Canada pursuant
to a license agreement with a third party.”

 

		(c)	Borrower and Lender hereby agree that the following shall be added to the Loan Agreement as new
Section 4.9:

 

“4.9 Intellectual
Property. Borrower shall promptly notify Lender within five (5) Business Days after the federal registration or filing by
Borrower of any patent or patent application, or trademark or trademark application, or copyright or copyright application and
shall promptly execute and deliver to Lender any grants of security interests in same, in form reasonably acceptable to Lender,
to file with the United States Patent and Trademark Office or the United States Copyright Office, as applicable.”

 

    - 4 -

     

    

 

		(d)	Borrower and Lender hereby agree that the following shall be added to the Loan Agreement as new
Section 6.12:

 

“6.12 Equity Financing.

 

		(a)	Borrower shall provide Lender, on or after February 1, 2018, but on or prior
to February 28, 2018, a written summary of the terms and conditions of a transaction pursuant to which Borrower shall, if such
transaction is consummated, receive, on or after February 1, 2018, cash proceeds of not less than Ten Million Dollars ($10,000,000)
as a result of the sale of Borrower’s Equity Securities (the “2018 Equity Financing”), which summary shall
be reasonably acceptable to Lender and shall set forth, in reasonable detail, the terms of such 2018 Equity Financing and, to the
extent known at the time such summary is delivered to Lender, the identity of the individuals or entities purchasing not less than
seventy-five percent (75%) of the Equity Securities being sold in such transaction in the aggregate (the “Designated Equity
Investors”). In the event all Designated Equity Investors are not known to Borrower at the time Borrower delivers the
2018 Equity Financing summary to Lender, Borrower shall, within two (2) Business Days of obtaining such information,
provide Lender in writing the names and identities of each Designated Equity Investor.”

 

		(b)	If stockholder approval of the 2018 Equity Financing is required by Borrower’s
charter or any applicable law, Borrower shall provide Lender, on or prior to March 15, 2018, with evidence reasonably satisfactory
to Lender, that Borrower has filed a preliminary proxy statement with the U.S. Securities and Exchange Commission.”

 

		(e)	Borrower and Lender hereby agree that Section 8.2 of the Loan Agreement shall
be deleted in its entirety and replaced with the following:

 

“8.2
Certain Covenant Defaults. If Borrower fails to perform any obligation arising under Sections 6.5, 6.8 or 6.12, or violates
any of the covenants contained in Section 7 of this Agreement.”

 

		5.	Amendments to Notes.

 

		(a)	Borrower and Lender agree that the fifth (5th)
sentence of the second paragraph of the Secured Promissory Note (Loan A) dated July 27, 2017 in the original principal amount of
$3,500,000 made by Borrower in favor of Lender is hereby amended and restated in its entirety to provide as follows:

 

    - 5 -

     

    

 

“Commencing on January
1, 2019, and continuing on the first day of each month thereafter (each, a “Principal and Interest Payment Date”
and, collectively with each Interest Payment Date, each, a Payment Date”), Borrower shall make to Lender thirty (30) equal
payments of principal in the amount of Sixty-Six Thousand Six Hundred Sixty-Six Dollars and Sixty-Six Cents ($66,666.66) (each,
a “Principal Amortization Amount”) plus accrued interest on the then outstanding principal amount due hereunder. On
the first day of the first month following Lender’s receipt of the Second Prepayment (as defined in the Amendment of Venture
Loan and Security Agreement dated as of January , 2018 by and among Borrower, Lender and Collateral Agent), each Principal Amortization
Amount shall be decreased to Fifty Thousand Dollars ($50,000.00).”

 

		(b)	Borrower and Lender agree that the fifth (5th)
sentence of the second paragraph of the Secured Promissory Note (Loan B) dated July 27, 2017 in the original principal amount of
$3,500,000 made by Borrower in favor of Lender is hereby amended and restated in its entirety to provide as follows:

 

“Commencing on January
1, 2019, and continuing on the first day of each month thereafter (each, a “Principal and Interest Payment Date”
and, collectively with each Interest Payment Date, each, a Payment Date”), Borrower shall make to Lender thirty (30) equal
payments of principal in the amount of Sixty-Six Thousand Six Hundred Sixty-Six Dollars and Sixty-Six Cents ($66,666.66) (each,
a “Principal Amortization Amount”) plus accrued interest on the then outstanding principal amount due hereunder. On
the first day of the first month following Lender’s receipt of the Second Prepayment (as defined in the Amendment of Venture
Loan and Security Agreement dated as of January , 2018 by and among Borrower, Lender and Collateral Agent), each Principal Amortization
Amount shall be decreased to Fifty Thousand Dollars ($50,000.00).”

 

6.              Lend
er’s and Collateral Agent’s Acknowledgments . Lender and Collateral Agent hereby acknowledge that (a) Borrower’s
grant to Collateral Agent and Lender of a security interest in Borrower’s Intellectual Property shall not constitute a breach
of Section 7.14 of the Loan Agreement and (b) during the Specified Period (as hereafter defined), none of the following shall
constitute or form the basis upon which Lender may at any time declare a Default or an Event of Default under the Loan Agreement
(including, without limitation, under Section 8.4 thereof) or under any other Loan Document: (i) the level of Probuphine sales
or royalties related thereto, (ii) the valuation of Probuphine, or (iii) the termination or amendment of the existing Probuphine
license agreement. For purposes hereof, the term “Specified Period” means the period commencing as of the date of
the Loan Agreement and ending on the date that is twelve (12) months after the date of this Agreement.

 

		7.	Representations and Warranties.

 

		(a)	At and as of the date of this Agreement and both prior to and after giving
effect to this Agreement, each of the representations and warranties contained in the Loan Agreement is true and correct in all
material respects (except where such representations and warranties
expressly relate to an earlier date, in which case such representations and warranties are true and correct in all material respects
as of such earlier date).

 

    - 6 -

     

    

 

		(b)	Borrower has all necessary power and authority to execute, deliver, and
perform in accordance with the terms thereof, this Agreement. Borrower has all requisite power and authority to own and operate
its Property and to carry on its business as now conducted.

 

		(c)	No Default or Event of Default has occurred under the Loan Agreement or
the other Loan Documents and is continuing or will exist immediately after giving effect to this Agreement.

 

8.             Covenants of Borrower. Borrower agrees that, in connection with its execution and delivery of this Agreement, Borrower
shall deliver to Lender each of the following items, and the failure by Borrower to deliver any of these items shall be a Default
under the Loan Agreement:

 

		(a)	Grants of security interest in Borrower’s Intellectual Property, in
the form attached hereto as Exhibit A, each duly executed by Borrower;

 

		(b)	Within five (5) Business Days following Borrower’s receipt thereof
from Lender, such other documents, instruments and agreements, including UCC financing statement amendments and evidence of filings
with the United States Patent and Trademark Office and the United States Copyright Office, in each case in form and substance reasonably
acceptable to Borrower, as Lender shall reasonably request to evidence the perfection and priority of the security interests granted
to Collateral Agent and Lender in Borrower’s Intellectual Property; and

 

		(c)	Borrower’s payment of Lender’s legal expenses in the amount
of Five Thousand and 00/100 Dollars ($5,000) incurred in connection with the drafting, negotiation and execution of this Agreement
and the documents, instruments, agreements and financing statements referred to in Sections 6(a) and (b) of this Agreement.

 

9.             Effect
of Agreement. On and after the date hereof, each reference to the Loan Agreement in the Loan Agreement or in any other document
shall mean the Loan Agreement as amended by this Agreement. Except as expressly provided hereunder, the execution, delivery and
effectiveness of this Agreement shall not operate as a waiver of any right, power, or remedy of Lender, nor constitute a waiver
of any provision of the Loan Agreement. Except to the limited extent expressly provided herein, nothing contained herein shall,
or shall be construed to (nor shall the Borrower ever argue to the contrary) (i) modify the Loan Agreement, any Note or any other
Loan Document (ii) modify, waive, impair, or affect any of the covenants, agreements, terms, and conditions thereof, or (iii)
waive the due keeping, observance and/or performance thereof, each of which is hereby ratified and confirmed by the Borrower.
Except as amended above, the Loan Agreement remains in full force and effect. Borrower acknowledges and agrees that the
failure to make any payment required under this Agreement shall constitute an Event of Default under the Loan Agreement.

 

    - 7 -

     

    

 

10.             Headings.
Headings in this Agreement are for convenience of reference only and are not part of the substance hereof.

 

11.             Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Connecticut
without reference to conflicts of law rules.

 

12.             Counterparts. This Agreement may be executed in any number of counterparts, including by electronic or facsimile
transmission, each of which when so delivered shall be deemed an original, but all such counterparts taken together shall constitute
but one and the same instrument.

 

13.             Integration. This Agreement and the Loan Documents constitute and contain the entire agreement of Borrower, Collateral
Agent and Lender with respect to their respective subject matters, and supersede any and all prior agreements, correspondence and
communications.

 

[Remainder of page intentionally left blank]

 

    - 8 -

     

    

 

IN WITNESS WHEREOF, Borrower,
Lender and Collateral Agent have caused this AMENDMENT OF VENTURE LOAN AND SECURITY AGREEMENT to be executed as of the day and
year first above written.

 

	BORROWER:	 	 	 
	 	 	 	 	 
	TITAN PHARMACEUTICALS, INC.	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	By:	/s/ Sunil Bhonsle 	 	 	 
	Name: 	Sunil Bhonsle	 	 	 
	Title:	President & CEO	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	LENDER:	 	COLLATERAL AGENT:
	HORIZON CREDIT II LLC	 	HORIZON TECHNOLOGY FINANCE CORPORATION
	 	 	 
	 	 	 
	By:	/s/ Robert D. Pomeroy, Jr.	 	By:	/s/ Robert D. Pomeroy, Jr.
	Robert D. Pomeroy, Jr. 	 	Robert D. Pomeroy, Jr.
	Chief Executive Officer	 	Chief Executive Officer

 

(Signature page to Amendment to Venture Loan and Security
Agreement)

  

     

     

    

 

GRANT OF SECURITY
INTEREST PATENTS

 

THIS GRANT OF SECURITY INTEREST,
dated as of February 2, 2018, is executed by TITAN PHARMACEUTICALS, INC., a Delaware corporation with an address of 400 Oyster
Point Blvd., Suite 505, South San Francisco, CA 94080 (“Debtor”), in favor of HORIZON CREDIT II LLC, as assignee
of HORIZON TECHNOLOGY FINANCE CORPORATION, a Delaware corporation with an address of 312 Farmington Avenue, Farmington, Connecticut
06032 (“Secured Party”).

 

A.                
Pursuant to a certain Venture Loan and Security Agreement, dated as of July 27, 2017 (as amended, restated, supplemented
or otherwise modified from time to time, (the “Agreement”) by and between Debtor and the Secured Party, the
Secured Party has agreed to extend credit to Debtor upon the terms and subject to the conditions set forth therein;

 

B.                
Debtor owns the patents and/or applications for patents, more particularly described on Schedules 1-A and 1-B annexed
hereto as part hereof (collectively, the “Patents”);

 

C.                
Pursuant to the Agreement, Debtor has granted to Secured Party a security interest in all right, title and interest of Debtor
in and to the Patents, together with any reissue, continuation, continuation-in-part or extension thereof, and all proceeds thereof,
including any and all causes of action which may exist by reason of infringement thereof for the full term of the Patents (the
“Collateral”), to secure the prompt payment, performance and observance of the Obligations (as defined in the
Agreement);

 

NOW, THEREFORE, for good and
valuable consideration, receipt of which is hereby acknowledged, Debtor does hereby further grant to Secured Party a security interest
in the Collateral to secure the prompt payment, performance and observance of the Obligations.

 

Debtor
does hereby further acknowledge and affirm that the rights and remedies of Secured Party with respect to the security interest
in the Collateral granted hereby are more fully set forth in the Agreement, the terms and provisions of which are hereby incorporated
herein by reference as if fully set forth herein.

 

IN WITNESS WHEREOF, Debtor
has caused this instrument to be executed as of the day and year first written above.

 

	 	TITAN PHARMACEUTICALS, INC.
	 	 	 
	 	 	 
	 	By:	/s/ Sunil Bhonsle
	 	Name: Sunil Bhonsle
	 	Title: President & CEO

 

     

     

    

 

SCHEDULE 1-A TO GRANT OF SECURITY INTEREST

PATENTS

 

	Patent	 	Title	 	Docket No.	 	Owner	 	Patent Number	 	Grant Date
	US 
United States	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF BUPRENORPHINE	 	 30414- 
20008.00	 	 Titan Pharmaceuticals, Inc.	 	 7736665	 	 06-15-2010
	AU 
Australian	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF BUPRENORPHINE	 	 30414- 
20008.41	 	 Titan Pharmaceuticals, Inc.	 	 2003240493	 	 09-25-2008
	CA 
Canadian	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF BUPRENORPHINE	 	 30414- 
20008.42	 	 Titan Pharmaceuticals, Inc.	 	 2487577	 	 11-18-2014
	IN 
Indian	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF BUPRENORPHINE	 	 30414- 
20008.43	 	 Titan Pharmaceuticals, Inc.	 	 214622	 	 02-13-2008
	JP 
Japanese	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF BUPRENORPHINE	 	30414- 
20008.44	 	 Titan Pharmaceuticals, Inc.	 	 4668611	 	 01-21-2011
	MX 
Mexican	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF BUPRENORPHINE	 	30414- 
20008.45	 	 Titan Pharmaceuticals, Inc.	 	 266637	 	 05-11-2009
	NZ 
New Zealand	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF BUPRENORPHINE	 	30414- 
20008.46	 	 Titan Pharmaceuticals, Inc.	 	 536965	 	 06-07-2007
	AU 
Australian	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF BUPRENORPHINE	 	30414- 
20008.50	 	 Titan Pharmaceuticals, Inc.	 	 2008212011	 	 09-09-2010

 

     

     

    

 

	US 
United States	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.02	 	 Titan Pharmaceuticals, Inc.	 	 8,852,623	 	 10-07-2014
	US 
United States	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.03	 	 Titan Pharmaceuticals, Inc.	 	 9,278,163	 	 03-08-2016
	AU 
Australian	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.41	 	 Titan Pharmaceuticals, Inc.	 	 2004228017	 	 05-27-2010
	CA 
Canadian	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.42	 	 Titan Pharmaceuticals, Inc.	 	 2520613	 	 12-04-2012
	IL 
Israeli	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.45	 	 Titan Pharmaceuticals, Inc.	 	 171115	 	 01-30-2016
	JP 
Japanese	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.46	 	 Titan Pharmaceuticals, Inc.	 	 5064794	 	 08-17-2012
	KR 
South Korean	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.47	 	 Titan Pharmaceuticals, Inc.	 	 101152183	 	 05-25-2012
	MX 
Mexican	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.48	 	 Titan Pharmaceuticals, Inc.	 	 284457	 	 03-08-2011

 

     

     

    

 

	NZ 
New Zealand	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.49	 	 Titan Pharmaceuticals, Inc.	 	 542548	 	 08-13-2009
	ZA 
South African	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.50	 	 Titan Pharmaceuticals, Inc.	 	 200507877	 	 10-31-2007
	EP 
European	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.51	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011
	HK 
Hong Kong	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.52	 	 Titan Pharmaceuticals, Inc.	 	 1083682	 	 08-26-2011
	MX 
Mexican	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.54	 	 Titan Pharmaceuticals, Inc.	 	 294075	 	 01-03-2012
	AT 
Austrian	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.55	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011
	BE 
Belgian	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.56	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011
	BG 
Bulgarian	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.57	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011

 

     

     

    

 

	CH 
Swiss	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.58	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011
	CY 
Cyprian	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.59	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011
	CZ 
Czech Republic	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.60	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011
	DE 
German	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.61	 	 Titan Pharmaceuticals, Inc.	 	 6020040315125	 	 02-23-2011
	DK 
Danish	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.62	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011
	EE 
Estonian	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.63	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011
	ES 
Spanish	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.64	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011
	FI 
Finnish	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.65	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011

 

     

     

    

 

	FR 
French	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.66	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011
	GB 
British	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.67	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011
	GR 
Greek	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.68	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011
	HU 
Hungarian	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.69	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011
	IE 
Irish	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.70	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011
	IT 
Italian	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.71	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011
	LU 
Luxembourg	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.72	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011
	MC 
Monaco	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.73	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011

 

     

     

    

 

	NL 
Dutch	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.74	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011
	PL 
Polish	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.75	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011
	PT 
Portuguese	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.76	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011
	RO 
Romanian	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.77	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011
	SE 
Swedish	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.78	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011
	SI 
Slovenian	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.79	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011
	SK 
Slovak Republic	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.80	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011
	TR 
Turkish	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.81	 	 Titan Pharmaceuticals, Inc.	 	 1610791	 	 02-23-2011

 

     

     

    

 

	JP 
Japanese	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.82	 	 Titan Pharmaceuticals, Inc.	 	 5608581	 	 09-05-2014
	CN 
Chinese	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.83	 	 Titan Pharmaceuticals, Inc.	 	 ZL2012101671235	 	 12-31-2014
	HK 
Hong Kong	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.84	 	 Titan Pharmaceuticals, Inc.	 	 HK1177895	 	 10-23-2015
	AU 
Australian	 	HETEROGENEOUS IMPLANTABLE DEVICES FOR DRUG DELIVERY	 	30414- 
20045.41	 	 Titan Pharmaceuticals, Inc.	 	 2011227289	 	 05-05-2016
	JP 
Japanese	 	HETEROGENEOUS IMPLANTABLE DEVICES FOR DRUG DELIVERY	 	30414- 
20045.46	 	 Titan Pharmaceuticals, Inc.	 	 5869551	 	 01-15-2016
	SG 
Singaporean	 	HETEROGENEOUS IMPLANTABLE DEVICES FOR DRUG DELIVERY	 	30414- 
20045.49	 	 Titan Pharmaceuticals, Inc.	 	 184059	 	 04-16-2015
	JP 
Japanese	 	HETEROGENEOUS IMPLANTABLE DEVICES FOR DRUG DELIVERY	 	30414- 
20045.52	 	 Titan Pharmaceuticals, Inc.	 	 6022649	 	 10-14-2016

 

     

     

    

 

SCHEDULE 1-B TO GRANT OF SECURITY INTEREST

 

PATENT APPLICATIONS

 

	Patent 

Application	 	Title	 	Docket No.	 	Owner	 	Application 

Number	 	Application 

Date
	US 
United States	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF BUPRENORPHINE	 	[at Choate, Hall 
& Stewart; no MoFo docket no.]	 	 Titan Pharmaceuticals, Inc.	 	 15/667,770	 	 08-03-2017
	EP 
European	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF BUPRENORPHINE	 	30414- 
20008.51	 	 Titan Pharmaceuticals, Inc.	 	 121934350	 	 06-02-2003
	HK 
Hong Kong	 	ADMINISTRATION OF BUPRENORPHINE IN A POLYMERIC MATRIX	 	30414- 
20008.52	 	 Titan Pharmaceuticals, Inc.	 	 131089542	 	 06-02-2003
	IN 
Indian	 	IMPLANTABLE POLYMERIC DEVICE FOR SUSTAINED RELEASE OF DOPAMINE AGONIST	 	30414- 
20009.53	 	 Titan Pharmaceuticals, Inc.	 	 1193KOLNP2008	 	 03-24-2008

 

     

     

    

 

	US 
United States	 	HETEROGENEOUS IMPLANTABLE DEVICES FOR DRUG DELIVERY	 	30414- 
20045.00	 	 Titan Pharmaceuticals, Inc.	 	 13/634,535	 	 03-16-2011
	US 
United States	 	HETEROGENEOUS IMPLANTABLE DEVICES FOR DRUG DELIVERY	 	30414- 
20045.01	 	 Titan Pharmaceuticals, Inc.	 	 13/802,504	 	 03-16-2011
	CA 
Canadian	 	HETEROGENEOUS IMPLANTABLE DEVICES FOR DRUG DELIVERY	 	30414- 
20045.42	 	 Titan Pharmaceuticals, Inc.	 	 2792179	 	 03-16-2011
	EP 
European	 	HETEROGENEOUS IMPLANTABLE DEVICES FOR DRUG DELIVERY	 	30414- 
20045.43	 	 Titan Pharmaceuticals, Inc.	 	 117569574	 	 03-16-2011
	HK 
Hong Kong	 	HETEROGENEOUS IMPLANTABLE DEVICES FOR DRUG DELIVERY	 	30414- 
20045.44	 	 Titan Pharmaceuticals, Inc.	 	 131086402	 	 03-16-2011
	IN 
Indian	 	HETEROGENEOUS IMPLANTABLE DEVICES FOR DRUG DELIVERY	 	30414- 
20045.45	 	 Titan Pharmaceuticals, Inc.	 	 8733/DELNP/2012	 	 03-16-2011
	KR 
South Korean	 	HETEROGENEOUS IMPLANTABLE DEVICES FOR DRUG DELIVERY	 	30414- 
20045.47	 	 Titan Pharmaceuticals, Inc.	 	 1020127026810	 	 03-16-2011
	MX 
Mexican	 	HETEROGENEOUS IMPLANTABLE DEVICES FOR DRUG DELIVERY	 	30414- 
20045.48	 	 Titan Pharmaceuticals, Inc.	 	 MX/a/2012/010611	 	 03-16-2011
	ZA 
South African	 	HETEROGENEOUS IMPLANTABLE DEVICES FOR DRUG DELIVERY	 	30414- 
20045.50	 	 Titan Pharmaceuticals, Inc.	 	 201206563	 	 03-16-2011
	SG 
Singaporean	 	HETEROGENEOUS IMPLANTABLE DEVICES FOR DRUG DELIVERY	 	30414- 
20045.51	 	 Titan Pharmaceuticals, Inc.	 	 10201501964Q	 	 03-16-2011
	PCT 
International (PCT)	 	IMPLANTABLE DEVICES FOR DRUG DELIVERY WITH REDUCED BURST RELEASE	 	30414- 
20046.40	 	 Titan Pharmaceuticals, Inc.	 	 PCT/US2017/055432	 	 10-05-2017
	US 
United States	 	IMPLANTABLE DEVICES FOR DRUG DELIVERY WITH REDUCED BURST RELEASE	 	30414- 
30046.00	 	 Titan Pharmaceuticals, Inc.	 	 62/404,643	 	 10-05-2016

 

     

     

    

 

GRANT OF SECURITY
INTEREST TRADEMARKS

 

THIS GRANT OF SECURITY INTEREST,
dated as February 2, 2018, is executed by TITAN PHARMACEUTICALS, INC., a Delaware corporation with an address of 400 Oyster Point
Blvd., Suite 505, South San Francisco, CA 94080 (“Debtor”), in favor of HORIZON CREDIT II LLC, as assignee of
HORIZON TECHNOLOGY FINANCE CORPORATION, a Delaware corporation with an address of 312 Farmington Avenue, Farmington, Connecticut
06032 (“Secured Party”).

 

A.                
Pursuant to a certain Venture Loan and Security Agreement, dated as of July 27, 2017 (as amended, restated, supplemented
or otherwise modified from time to time, (the “Agreement”) by and between Debtor and the Secured Party, the
Secured Party has agreed to extend certain credit facilities to Debtor upon the terms and subject to the conditions set forth therein;

 

B.                
Debtor owns the registered trademarks, service marks (and applications and registrations therefor), of the United States,
more particularly described on Schedules 1-A and 1-B annexed hereto as part hereof (collectively, the “Trademarks”);

 

C.                
Pursuant to the Agreement, Debtor has granted to Secured Party a security interest in all right, title and interest of Debtor
in and to the Trademarks, together with associated goodwill, and all proceeds thereof, including any and all causes of action which
may exist by reason of infringement thereof for the full term of the Trademarks (the “Collateral”), to secure
the prompt payment, performance and observance of the Obligations (as defined in the Agreement);

 

NOW, THEREFORE, for good
and valuable consideration, receipt of which is hereby acknowledged, Debtor does hereby further grant to Secured Party a security
interest in the Collateral to secure the prompt payment, performance and observance of the Obligations.

 

Debtor
does hereby further acknowledge and affirm that the rights and remedies of Secured Party with respect to the security interest
in the Collateral granted hereby are more fully set forth in the Agreement, the terms and provisions of which are hereby incorporated
herein by reference as if fully set forth herein.

 

IN WITNESS WHEREOF, Debtor
has caused this instrument to be executed as of the day and year first written above.

 

	 	TITAN PHARMACEUTICALS, INC.
	 	 	 
	 	 	 
	 	By:	/s/ Sunil Bhonsle
	 	Name: Sunil Bhonsle
	 	Title: President & CEO

 

     

     

    

 

SCHEDULE 1-A TO GRANT OF SECURITY INTEREST

 

TRADEMARKS

 

	
         

        Trademark
	
         

        Country
	
         

        Owner
	
         

        Registration Number
	
         

        Registration Date

	
         

        T & DESIGN

         

        
	
         

        Japan
	
         

        Titan Pharmaceuticals, Inc.
	
         

        4656286
	
         

        03/20/2003

	
         

        PROBUPHINE.
	
         

        United States of America
	
         

        Titan Pharmaceuticals, Inc.
	
         

        4,102,980
	
         

        02/21/2012

	
         

        PROBUPHINE
	
         

        European Union
	
         

        Titan Pharmaceuticals, Inc.
	
         

        002707743
	
         

        10/27/2003

	
         

        PROBUPHINE
	
         

        Japan
	
         

        Titan Pharmaceuticals, Inc.
	
         

        4707954
	
         

        09/05/2003

	
         

        PROBUPHINE
	
         

        Switzerland
	
         

        Titan Pharmaceuticals, Inc.
	
         

        502931
	
         

        05/17/2002

	
         

        PROBUPHINE
	
         

        European Union
	
         

        Titan Pharmaceuticals, Inc.
	
         

        010891646
	
         

        10/11/2012

	
         

        PROBUPHINE
	
         

        Switzerland
	
         

        Titan Pharmaceuticals, Inc.
	
         

        631889
	
         

        07/16/2012

	
         

        PROBUPHINE
	
         

        Australia
	
         

        Titan Pharmaceuticals, Inc.
	
         

        1545572
	
         

        12/16/2013

	
         

        PROBUPHINE
	
         

        Mexico
	
         

        Titan Pharmaceuticals, Inc.
	
         

        1380691
	
         

        07/03/2013

 

     

     

    

 

	
         

        TITAN PHARMACEUTICALS
	
         

        Japan
	
         

        Titan Pharmaceuticals, Inc.
	
         

        2002045667
	
         

        01/10/2003

	
         

        PRONEURA
	
         

        Japan
	
         

        Titan Pharmaceuticals, Inc.
	
         

        4821226
	
         

        11/26/2004

	
         

        PRONEURA
	
         

        Switzerland
	
         

        Titan Pharmaceuticals, Inc.
	
         

        524391
	
         

        08/17/2004

	
         

        PRONEURA
	
         

        European Union
	
         

        Titan Pharmaceuticals, Inc.
	
         

        004940359
	
         

        02/13/2007

	
         

        T LOGO PLUS INNOVATIONS IN MEDICINE

         

        
	
         

        Switzerland
	
         

        Titan Pharmaceuticals, Inc.
	
         

        532111
	
         

        02/25/2005

	
         

        T LOGO PLUS INNOVATIONS IN MEDICINE

         

        
	
         

        Japan
	
         

        Titan Pharmaceuticals, Inc.
	
         

        4933523
	
         

        03/03/2006

	
         

        T LOGO PLUS INNOVATIONS IN MEDICINE

         

        
	
         

        European Union
	
         

        Titan Pharmaceuticals, Inc.
	
         

        004591483
	
         

        08/22/2006

	
         

        BUPLANT
	
         

        Madrid Protocol
	
         

        Titan Pharmaceuticals, Inc.
	
         

        IR1320700
	
         

        08/26/2016

 

    -2-

     

    

 

	
         

        BUPLANT
	
         

        Australia
	
         

        Titan Pharmaceuticals, Inc.
	
         

        IR1320700
	
         

        08/26/2016

	
         

        BUPLANT
	
         

        European Union
	
         

        Titan Pharmaceuticals, Inc.
	
         

        IR1320700
	
         

        08/26/2016

	
         

        BUPLANT
	
         

        Mexico
	
         

        Titan Pharmaceuticals, Inc.
	
         

        IR1320700
	
         

        08/26/2016

	
         

        BUPLANT
	
         

        Switzerland
	
         

        Titan Pharmaceuticals, Inc.
	
         

        IR1320700
	
         

        08/26/2016

	
         

        T & DESIGN

         

        
	
         

        Madrid Protocol
	
         

        Titan Pharmaceuticals, Inc.
	
         

        IR1370158
	
         

        06/16/2017

	
         

        TITAN PHARMACEUTICALS & DESIGN

         

        
	
         

        Madrid Protocol
	
         

        Titan Pharmaceuticals, Inc.
	
         

        IR1366454
	
         

        06/16/2017

 

    -3-

     

    

 

SCHEDULE 1-B TO GRANT OF SECURITY INTEREST

 

TRADEMARK APPLICATIONS

 

	
         

        Trademark Application
	
         

        Country
	
         

        Owner
	
         

        Application Number
	
         

        Application Date

	
         

        PROBUPHINE
	
         

        Canada
	
         

        Titan Pharmaceuticals, Inc.
	
         

        1612370
	
         

        02/01/2013

	
         

        PROBUPHINE
	
         

        European Union
	
         

        Titan Pharmaceuticals, Inc.
	
         

        017362781
	
         

        10/18/2017

	
         

        PROBUPHINE
	
         

        Switzerland
	
         

        Titan Pharmaceuticals, Inc.
	
         

        629852017
	
         

        10/17/2017

	
         

        TITAN PHARMACEUTICALS
	
         

        United States of America
	
         

        Titan Pharmaceuticals, Inc.
	
         

        87/457,505
	
         

        05/19/2017

	
         

        PRONEURA
	
         

        United States of America
	
         

        Titan Pharmaceuticals, Inc.
	
         

        86/309,090
	
         

        06/13/2014

	
         

        PRONEURA
	
         

        Canada
	
         

        Titan Pharmaceuticals, Inc.
	
         

        1494136
	
         

        08/31/2010

	
         

        BUPLANT
	
         

        United States of America
	
         

        Titan Pharmaceuticals, Inc.
	
         

        87/009,766
	
         

        04/21/2016

	
         

        T & DESIGN

         

         
	
         

        United States of America
	
         

        Titan Pharmaceuticals, Inc.
	
         

        87/278,810
	
         

        12/22/2016

 

    -4-

     

    

 

	
         

        T & DESIGN

         

        
	
         

        Canada
	
         

        Titan Pharmaceuticals, Inc.
	
         

        1843050
	
         

        06/16/2017

	
         

        T & DESIGN

         

        
	
         

        European Union
	
         

        Titan Pharmaceuticals, Inc.
	
         

        IR1370158
	
         

        06/16/2017

	
         

        T & DESIGN

         

        
	
         

        Japan
	
         

        Titan Pharmaceuticals, Inc.
	
         

        IR1370158
	
         

        06/16/2017

	
         

        T & DESIGN

         

        
	
         

        Swtizerland
	
         

        Titan Pharmaceuticals, Inc.
	
         

        IR1370158
	
         

        06/16/2017

	
         

        TITAN PHARMACEUTICALS & DESIGN

         

        
	
         

        United States of America
	
         

        Titan Pharmaceuticals, Inc.
	
         

        87/278,812
	
         

        12/22/2016

 

    -5-

     

    

 

	
         

        TITAN PHARMACEUTICALS & DESIGN

         

        
	
         

        Canada
	
         

        Titan Pharmaceuticals, Inc.
	
         

        1843052
	
         

        06/16/2017

	
         

        TITAN PHARMACEUTICALS & DESIGN

         

        
	
         

        European Union
	
         

        Titan Pharmaceuticals, Inc.
	
         

        IR1366454
	
         

        06/16/2017

	
         

        TITAN PHARMACEUTICALS & DESIGN

         

        
	
         

        Japan
	
         

        Titan Pharmaceuticals, Inc.
	
         

        IR1366454
	
         

        06/16/2017

	
         

        TITAN PHARMACEUTICALS & DESIGN

         

        
	
         

        Switzerland
	
         

        Titan Pharmaceuticals, Inc.
	
         

        IR1366454
	
         

        06/16/2017

 

    -6-

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