Document:

EX-10.11

 Exhibit 10.11 

THIS WARRANT, AND THE SECURITIES ISSUABLE UPON THE EXERCISE OF THIS WARRANT, HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL (WHICH MAY BE COMPANY COUNSEL) REASONABLY
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT, OR ANY APPLICABLE STATE SECURITIES LAWS. 
 WARRANT
AGREEMENT 
 To Purchase Shares of Preferred Stock of 

DANCE BIOPHARM, INC. 

Dated as of October 30, 2013 (the “Effective Date”) 

WHEREAS, Dance Biopharm, Inc., a Delaware corporation (as more fully defined below, the “Company”), has entered into a Loan and Security
Agreement of even date herewith (as modified, amended and/or restated and in effect from time to time, the “Loan Agreement”) with Hercules Technology III, L.P., a Delaware limited partnership (the “Warrantholder”);

 WHEREAS, the Company desires to grant to Warrantholder, in consideration for, among other things, the financial accommodations provided for in the Loan
Agreement, the right to purchase shares of Preferred Stock (as defined below) pursuant to this Warrant Agreement (this “Warrant” or this “Agreement”); 

NOW, THEREFORE, in consideration of the Warrantholder executing and delivering the Loan Agreement and providing the financial accommodations contemplated
therein, and in consideration of the mutual covenants and agreements contained herein, the Company and Warrantholder agree as follows: 

SECTION 1. GRANT OF THE RIGHT TO PURCHASE PREFERRED STOCK. 

For value received, the Company hereby grants to the Warrantholder the right to subscribe for and purchase from the Company, an aggregate number of fully paid
and non-assessable shares of the Preferred Stock equal to the quotient derived by dividing (a) $170,000 by (b) the Exercise Price (defined below). As used herein, the following terms shall have the following meanings: 

“Act” means the Securities Act of 1933, as amended. 

“Company” means Dance Biopharm, Inc., a Delaware corporation, and any successor or surviving entity that assumes the
obligations of the Company under this Agreement pursuant to Section 8(a). 
 “Charter” means the Company’s
Certificate of Incorporation or other constitutional document, as may be amended and/or restated and in effect from time to time. 

“Common Stock” means the Company’s common stock, $0.0001 par value per share, and any other class, series or other
designation of security into or for which such common stock is converted, substituted or exchanged pursuant to a reorganization, reclassification, recapitalization or similar transaction. 

“Exercise Price” means the Series A Price, subject to adjustment from time to time in accordance with the provisions of this
Warrant; provided, that if the Next Equity Round Price is lower than the then-effective Exercise Price, then the Exercise Price shall be the Next Equity Round Price from and after consummation of the Next Equity Round, subject to adjustment
thereafter from time to time in accordance with the provisions of this Warrant. 
 “Initial Public Offering” means the
initial underwritten public offering of the Company’s Common Stock pursuant to a registration statement under the Act, which registration statement has been declared effective by the Securities and Exchange Commission (“SEC”).

 “Merger Event” means any transaction or series of related transactions
involving: (i) the sale, lease, exclusive license, or other disposition of all or substantially all of the assets of the Company, (ii) the merger or consolidation of the Company into or with another person or entity (other than a merger or
consolidation effected exclusively to change the Company’s domicile), or any other corporate reorganization, in which the stockholders of the Company in their capacity as such immediately prior to such merger, consolidation or reorganization,
own less than a majority of the Company’s (or the surviving or successor entity’s) outstanding voting power immediately after such merger, consolidation or reorganization (or, if such Company stockholders beneficially own a majority of the
outstanding voting power of the surviving or successor entity as of immediately after such merger, consolidation or reorganization, such surviving or successor entity is not the Company); or (iii) any sale or other transfer by the stockholders
of the Company of shares representing at least a majority of the Company’s then-total outstanding combined voting power. 

“Next Equity Round” means the first offering and sale by the Company, other than the Initial Public Offering, on or after the
date hereof, of shares of its convertible preferred stock or other equity securities to one or more investors for cash for financing purposes, in a single transaction or series of related transactions not registered under the Act, resulting in
aggregate gross cash proceeds received by the Company of at least $1,000,000. 
 “Next Equity Round Price” means the lowest
effective price per share for which shares of the Next Round Equity Series are sold and issued in the Next Equity Round. 
 “Next
Equity Round Series” means the class and/or series or other designation of the shares of convertible preferred stock or other equity securities sold and issued by the Company in the Next Equity Round. 

“Preferred Stock” means Series A Stock; provided, that if the Next Equity Round Price is lower than the then-effective
Exercise Price, then the Preferred Stock shall be the Next Equity Round Series from and after consummation of the Next Equity Round, and any other class, series or other designation of security into or for which such Next Equity Round Series is
converted, substituted or exchanged pursuant to a reorganization, reclassification, recapitalization or similar transaction; provided, further, that upon and after the occurrence of an event which results in the automatic or voluntary
conversion, redemption or retirement of all (but not less than all) of the outstanding shares of such Preferred Stock, including, without limitation, the consummation of an Initial Public Offering, then from and after the date upon which such
outstanding shares are so converted, redeemed or retired, “Preferred Stock” shall mean the Common Stock. 
 “Purchase
Price” means, with respect to any exercise of this Agreement, an amount equal to the Exercise Price as of the relevant time multiplied by the number of shares of Preferred Stock requested to be exercised under this Agreement pursuant to
such exercise. 
 “Series A Price” means $1.74 per share, as may be adjusted from time to time in accordance with the
provisions of this Warrant. 
 “Series A Stock” means the Company’s Series A Convertible Preferred Stock, $0.0001 par
value per share, containing the relative rights, powers, privileges and preferences as set forth in the Charter, and any other class, series or other designation of security into or for which such Series A Convertible Preferred Stock is converted,
substituted or exchanged pursuant to a reorganization, reclassification, recapitalization or similar transaction. 
 SECTION 2. TERM
OF THE AGREEMENT. 
 Except as otherwise provided for herein, the term of this Agreement and the right to purchase Preferred Stock as granted herein shall
commence on the Effective Date and shall be exercisable for a period ending upon the later to occur of (i) the tenth (10th) anniversary of the Effective Date, and (ii) if the
Initial Public Offering shall be consummated on or before the tenth (10th) anniversary of the Effective Date, the date that is five (5) years following the effective date of the
Company’s registration statement in connection with the Initial Public Offering. 

  
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 SECTION 3. EXERCISE OF THE PURCHASE RIGHTS. 

(a) Exercise. The purchase rights set forth in this Agreement are exercisable by the Warrantholder, in whole or in part, at any time, or
from time to time, prior to the expiration of the term set forth in Section 2, by tendering to the Company at its principal office a notice of exercise in the form attached hereto as Exhibit I (the “Notice of Exercise”),
duly completed and executed, together with payment of the Purchase Price (or election of Net Issuance) in accordance with the terms of this Agreement. Promptly upon receipt of the Notice of Exercise and the payment of the Purchase Price (or election
of Net Issuance, as defined below) in accordance with the terms set forth below, and in no event later than three (3) days thereafter, the Company shall issue to the Warrantholder a certificate for the number of shares of Preferred Stock
purchased and shall execute the acknowledgment of exercise in the form attached hereto as Exhibit II (the “Acknowledgment of Exercise”) indicating the number of shares which remain subject to future purchases, if any. 

The Purchase Price may be paid at the Warrantholder’s election either (i) by cash or check, or (ii) by surrender of all or a portion of the
Warrant for shares of Preferred Stock to be exercised under this Agreement and, if applicable, an amended Agreement representing the remaining number of shares purchasable hereunder, as determined below (“Net Issuance”). If the
Warrantholder elects the Net Issuance method, the Company will issue Preferred Stock in accordance with the following formula: 
  

					
		 		    	X = Y(A-B)
		 		    	              A
			
	Where:	 	X =	    	the number of shares of Preferred Stock to be issued to the Warrantholder.
			
		 	Y =	    	the number of shares of Preferred Stock requested to be exercised under this Agreement.
			
		 	A =	    	the fair market value of one (1) share of Preferred Stock at the time of issuance of such shares of Preferred Stock.
			
		 	B =	    	the Exercise Price.

 For purposes of the above calculation, current fair market value of Preferred Stock shall mean with respect to each share of
Preferred Stock: 
 (i) if the exercise is in connection with an Initial Public Offering, and if the Company’s
registration statement relating to such Initial Public Offering has been declared effective by the SEC, then the fair market value per share shall be the product of (x) the initial “Price to Public” of the Common Stock specified in
the final prospectus with respect to the offering and (y) the number of shares of Common Stock into which each share of Preferred Stock is convertible at the time of such exercise; 

(ii) if the exercise is after, and not in connection with, an Initial Public Offering, and: 

(A) if the Common Stock is traded on a securities exchange, the fair market value shall be deemed to be the product of
(x) the average of the closing prices over a five (5) trading day period ending three trading days before the day the current fair market value of the securities is being determined and (y) the number of shares of Common Stock into
which each share of Preferred Stock is convertible at the time of such exercise; or 
 (B) if the Common Stock is traded
over-the-counter, the fair market value shall be deemed to be the product of (x) the average of the closing bid and asked prices quoted on the NASDAQ system (or similar system) over the five (5) trading day period ending three trading days
before the day the current fair market value of the securities is being determined and (y) the number of shares of Common Stock into which each share of Preferred Stock is convertible at the time of such exercise; 

  
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 (iii) if at any time the Common Stock is not listed on any securities exchange
or quoted in the over-the-counter market, the current fair market value of Preferred Stock shall be the product of (x) the highest price per share which the Company could obtain from a willing buyer (not a current employee or director) for
shares of Common Stock sold by the Company, from authorized but unissued shares, as determined in good faith by its Board of Directors and (y) the number of shares of Common Stock into which each share of Preferred Stock is convertible at the
time of such exercise, unless the Company shall become subject to a Merger Event, in which case the fair market value of Preferred Stock shall be deemed to be the per share value received by the holders of the Company’s Preferred Stock on a
common equivalent basis pursuant to such Merger Event. 
 Upon partial exercise by either cash or Net Issuance, the Company shall promptly issue an amended
Agreement representing the remaining number of shares purchasable hereunder. All other terms and conditions of such amended Agreement shall be identical to those contained herein, including, but not limited to the Effective Date hereof. 

(b) Exercise Prior to Expiration. To the extent this Agreement is not previously exercised as to all Preferred Stock subject hereto,
and if the fair market value of one share of the Preferred Stock is greater than the Exercise Price then in effect, this Agreement shall be deemed automatically exercised pursuant to Section 3(a) (even if not surrendered) immediately before its
expiration. For purposes of such automatic exercise, the fair market value of one share of the Preferred Stock upon such expiration shall be determined pursuant to Section 3(a). To the extent this Agreement or any portion thereof is deemed
automatically exercised pursuant to this Section 3(b), the Company agrees to promptly notify the Warrantholder of the number of shares of Preferred Stock, if any, the Warrantholder is to receive by reason of such automatic exercise. 

(c) Stockholder Agreements. Upon any exercise of this Warrant, Warrantholder shall, if the Company so requests in writing, become a
party to, by prompt execution and delivery to the Company of a counterpart signature page, joinder agreement, instrument of accession or similar instrument, the Company’s then-effective investor rights agreement, stockholders’ agreement
and/or each other agreement entered into among the Company and the holders of the outstanding shares of Preferred Stock (collectively, the “Stockholder Agreements”), in each case solely with respect to the shares of Preferred Stock
issued upon such exercise (and the shares of Common Stock, if any, issued upon conversion of such shares), solely to the extent that all holders of the outstanding shares of Preferred Stock are then parties thereto, and solely to the extent such
agreement is then by its terms in force and effect. 
 SECTION 4. RESERVATION OF SHARES. 

During the term of this Agreement, the Company will at all times have authorized and reserved a sufficient number of shares of its Preferred Stock to provide
for the exercise of the rights to purchase Preferred Stock as provided for herein, and shall have authorized and reserved a sufficient number of shares of its Common Stock to provide for the conversion of the shares of Preferred Stock issuable
hereunder. 
 SECTION 5. NO FRACTIONAL SHARES OR SCRIP. 

No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Agreement, but in lieu of such fractional shares the
Company shall make a cash payment therefor upon the basis of the then-fair market value of one share of Preferred Stock. 
 SECTION 6.
NO RIGHTS AS SHAREHOLDER/STOCKHOLDER. 
 This Agreement does not entitle the Warrantholder to any voting rights or other rights as a
shareholder/stockholder of the Company prior to the exercise of this Agreement. 

  
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 SECTION 7. WARRANTHOLDER REGISTRY. 

The Company shall maintain a registry showing the name and address of the registered holder of this Agreement. Warrantholder’s initial address, for
purposes of such registry, is set forth below Warrantholder’s signature on this Agreement. Warrantholder may change such address by giving written notice of such changed address to the Company. 

SECTION 8. ADJUSTMENT RIGHTS. 
 The
Exercise Price and the number of shares of Preferred Stock purchasable hereunder are subject to adjustment, as follows: 
 (a) Merger
Event. If at any time there shall be Merger Event, then, as a part of such Merger Event, lawful provision shall be made so that the Warrantholder shall thereafter be entitled to receive, upon exercise of this Agreement, the number of shares of
preferred stock or other securities or property (collectively, “Reference Property”) that the Warrantholder would have received in connection with such Merger Event if Warrantholder had exercised this Agreement immediately prior to
the Merger Event. In any such case, appropriate adjustment (as determined in good faith by the Company’s Board of Directors) shall be made in the application of the provisions of this Agreement with respect to the rights and interests of the
Warrantholder after the Merger Event to the end that the provisions of this Agreement (including adjustments of the Exercise Price and adjustments to ensure that the provisions of this Section 8 shall thereafter be applicable, as nearly as
possible, to the purchase rights under this Agreement in relation to any Reference Property thereafter acquirable upon exercise of such purchase rights) shall continue to be applicable in their entirety, and to the greatest extent possible. Without
limiting the foregoing, in connection with any Merger Event, upon the closing thereof, the successor or surviving entity shall assume the obligations of this Agreement; provided that if the Reference Property includes shares of stock or other
securities and assets of an entity other than the successor or purchasing company, as the case may be, in such Merger Event, then such other entity shall assume the obligations under this Agreement and any such assumption shall contain such
additional provisions to protect the interests of the Warrantholder as reasonably necessary by reason of the foregoing (as determined in good faith by the Company’s Board of Directors); provided, further, that the foregoing
assumption requirement shall not apply if (i) the consideration to be paid for or in respect of the outstanding shares of Preferred Stock in such Merger Event consists solely of cash and/or readily marketable securities, and (ii) the value
of such consideration (as determined at closing in accordance with the definitive executed transaction documents) to be paid for or in respect of each outstanding share of Preferred Stock is at least two (2) times the Exercise Price in effect
as of immediately prior to the closing of such Merger Event. In connection with a Merger Event and upon Warrantholder’s written election to the Company, the Company shall cause this Warrant Agreement to be exchanged for the consideration that
Warrantholder would have received if Warrantholder had chosen to exercise its right to have shares issued pursuant to the Net Issuance provisions of this Warrant Agreement without actually exercising such right, acquiring such shares and exchanging
such shares for such consideration. The provisions of this Section 8(a) shall similarly apply to successive Merger Events. 
 (b)
Reclassification of Shares. Without duplication of any adjustment made pursuant to Section 8(a), and subject to Section 8(f), if the Company at any time shall, by combination, reclassification, reorganization, exchange or
subdivision of securities or otherwise, change any of the securities as to which purchase rights under this Agreement exist into the same or a different number of securities of any other class or classes, this Agreement shall thereafter represent
the right to acquire such number and kind of securities as would have been issuable as the result of such change with respect to the securities which were subject to the purchase rights under this Agreement immediately prior to such combination,
reclassification, exchange, subdivision or other change. The provisions of this Section 8(b) shall similarly apply to successive combination, reclassification, exchange, subdivision or other change. 

(c) Subdivision or Combination of Shares. If the Company at any time shall combine or subdivide its Preferred Stock, (i) in the
case of a subdivision, the Exercise Price shall be proportionately decreased and the number of shares of Preferred Stock issuable hereunder shall be proportionately increased, or (ii) in the case of a combination, the Exercise Price shall be
proportionately increased and the number of shares of Preferred Stock issuable hereunder shall be proportionately decreased. 

  
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 (d) Stock Dividends. If the Company at any time while this Agreement is outstanding and
unexpired shall: 
 (i) pay a dividend with respect to the Preferred Stock payable in Preferred Stock, then the Exercise
Price shall be adjusted, from and after the date of determination of stockholders entitled to receive such dividend or distribution, to that price determined by multiplying the Exercise Price in effect immediately prior to such date of determination
by a fraction (A) the numerator of which shall be the total number of shares of Preferred Stock outstanding immediately prior to such dividend or distribution, and (B) the denominator of which shall be the total number of shares of
Preferred Stock outstanding immediately after such dividend or distribution; or 
 (ii) make any other distribution with
respect to Preferred Stock (or stock into which the Preferred Stock is convertible), except any distribution specifically provided for in any other clause of this Section 8, then, in each such case, provision shall be made by the Company such
that the Warrantholder shall receive upon exercise or conversion of this Warrant a proportionate share of any such distribution as though it were the holder of the Preferred Stock (or other stock for which the Preferred Stock is convertible) as of
the record date fixed for the determination of the stockholders of the Company entitled to receive such distribution. 
 (e) Antidilution
Rights. Additional antidilution rights applicable to the Preferred Stock purchasable hereunder are as set forth in the Charter and shall be applicable with respect to the Preferred Stock issuable hereunder. The Company shall promptly provide the
Warrantholder with any restatement, amendment, modification or waiver of the Charter; provided, that no such amendment, modification or waiver shall impair or reduce the antidilution rights applicable to the Preferred Stock unless such
amendment, modification or waiver affects the rights of Warrantholder with respect to the Preferred Stock in the same manner as it affects all other holders of Preferred Stock. The Company shall provide Warrantholder with written notice of any
issuance of its stock or other equity security to occur after the Effective Date of this Agreement (other than an issuance pursuant to the Company’s Incentive Plans or in connection with the exercise of outstanding derivative securities),
either prior to or promptly following such issuance, which notice shall include (a) the price at which such stock or security is to be or was sold, (b) the number of shares issued or to be issued, and (c) such other information as
necessary for Warrantholder to determine if a dilutive event has occurred. For the avoidance of doubt, there shall be no duplicate anti-dilution adjustment pursuant to this subsection (e), the forgoing subsection (d) and the Charter. 

(f) “Pay to Play” Rights. In the event that any “pay to play” terms or conditions (i.e. terms or conditions that
require a holder of the Preferred Stock to purchase securities in a future round of equity financing or else lose the benefit of anti-dilution protections applicable to shares of Preferred Stock or have such shares of Preferred Stock automatically
convert into common stock or another class or series of capital stock) in the Charter are triggered in connection with any offer, sale or issuance by the Company of its equity securities (a “Trigger Event”), then, in each such
event, the purchase rights under this Agreement shall automatically adjust to provide the Warrantholder, upon the later exercise hereof, with the same securities and/or rights that the Warrantholder would have received had the Warrantholder
(x) exercised this Warrant prior to such Trigger Event, and (y) participated in the applicable equity financing in an amount sufficient to be deemed to have fully participated for purposes of such “pay to play” provision. 

(g) Notice of Adjustments. If: (i) the Company shall declare or pay any dividend or distribution upon the outstanding shares of
Preferred Stock (or Common Stock if shares of Preferred Stock are then convertible into Common Stock) whether in stock, cash, or other property; (ii) the Company shall offer for subscription pro rata to the holders of the Preferred Stock or
other capital stock any additional shares of stock of any class or other rights; (iii) there shall be any Merger Event; (iv) there shall be an 

  
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Initial Public Offering; (v) there shall be any voluntary or involuntary dissolution, liquidation or winding up of the Company, or (vi) there shall be an Initial Public Offering; then,
in connection with each such event, the Company shall send to the Warrantholder: (A) at least ten (10) days’ prior written notice of the date on which the books of the Company shall close or a record shall be taken for such dividend,
distribution, subscription rights (specifying the date on which the holders of Preferred Stock shall be entitled thereto) or for determining rights to vote in respect of such Merger Event, dissolution, liquidation or winding up; (B) in the case
of any such Merger Event, at least ten (10) days’ prior written notice of the date when the same shall take place (and specifying the date on which the holders of Preferred Stock shall be entitled to exchange their Preferred Stock for
securities or other property deliverable upon such Merger Event, dissolution, liquidation or winding up); and (C) in the case of an Initial Public Offering, at least ten (10) days’ written notice prior to the effective date thereof.

 Each such written notice shall set forth, in reasonable detail, (i) the event requiring the notice, and (ii) if any adjustment is required to
be made, (A) the amount of such adjustment, (B) the method by which such adjustment was calculated, (C) the adjusted Exercise Price (if the Exercise Price has been adjusted), and (D) the number of shares subject to purchase
hereunder after giving effect to such adjustment, and shall be given in accordance with Section 12(g) below. 
 (h) Timely
Notice. Failure to timely provide such notice required by subsection (g) above shall entitle Warrantholder to retain the benefit of the applicable notice period notwithstanding anything to the contrary contained in any insufficient notice
received by Warrantholder. For purposes of this subsection (h), and notwithstanding anything to the contrary in Section 12(g), the notice period shall begin on the date Warrantholder actually receives a written notice containing all the
information required to be provided in such subsection (g). 
 SECTION 9. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE
COMPANY. 
 (a) Reservation of Preferred Stock. The Preferred Stock issuable upon exercise of the Warrantholder’s rights has
been or, in the case of Preferred Stock issuable in the Next Equity Round, will be, duly and validly reserved and, when issued in accordance with the provisions of this Agreement, will be validly issued, fully paid and non-assessable, and will be
free of any taxes, liens, charges or encumbrances of any nature whatsoever; provided, that the Preferred Stock issuable pursuant to this Agreement may be subject to restrictions on transfer under state and/or federal securities laws. The
Company has made available to the Warrantholder true, correct and complete copies of its Charter and current bylaws. The issuance of certificates for shares of Preferred Stock upon exercise of this Agreement shall be made without charge to the
Warrantholder for any issuance tax in respect thereof, or other cost incurred by the Company in connection with such exercise and the related issuance of shares of Preferred Stock; provided, that the Company shall not be required to pay any
tax which may be payable in respect of any transfer and the issuance and delivery of any certificate in a name other than that of the Warrantholder. 

(b) Due Authority. The execution and delivery by the Company of this Agreement and the performance of all obligations of the Company
hereunder, including the issuance to Warrantholder of the right to acquire the shares of Preferred Stock and the Common Stock into which it may be converted, have been duly authorized by all necessary corporate action on the part of the Company.
This Agreement: (1) does not violate the Company’s Charter or current bylaws; (2) does not contravene any law or governmental rule, regulation or order applicable to it; and (3) does not and will not contravene any provision of,
or constitute a default under, any indenture, mortgage, contract or other instrument to which it is a party or by which it is bound, except to the extent that any such default does not have a material adverse effect on the Company. This Agreement
constitutes a legal, valid and binding agreement of the Company, enforceable in accordance with its terms. 
 (c) Consents and
Approvals. No consent or approval of, giving of notice to, registration with, or taking of any other action in respect of any state, federal or other governmental authority or agency is required with respect to the execution, delivery and
performance by the Company of its obligations under this Agreement, except for the filing of notices pursuant to Regulation D under the Act and any filing required by applicable state securities law, which filings will be effective by the time
required thereby. 

  
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 (d) Issued Securities. All issued and outstanding shares of Common Stock, Preferred Stock
or any other securities of the Company have been duly authorized and validly issued and are fully paid and non-assessable. All outstanding shares of Common Stock, Preferred Stock and any other securities were issued in full compliance with all
federal and state securities laws. In addition, as of the date immediately preceding the date of this Agreement: 
 (i) The
authorized capital of the Company consists of (A) 25,525,727 shares of Common Stock, of which 8,760,000 shares are issued and outstanding, and (B) 11,527,280 shares of Preferred Stock, all of which have been designated as “Series A
Convertible Preferred Stock (8,516,100 of which are issued and outstanding and are convertible into 8,516,100 shares of Common Stock at $1.74 per share.) 

(ii) The Company has reserved 3,766,800 shares of Common Stock for issuance under its Stock Option Plan(s), under which
3,366,800 options are outstanding. Other than the foregoing options and 680,008 shares of Common Stock reserved for issuance upon exercise of a certain stock purchase warrant outstanding as of the date hereof, there are no other options, warrants,
conversion privileges or other rights presently outstanding to purchase or otherwise acquire any authorized but unissued shares of the Company’s capital stock or other securities of the Company. The Company has no outstanding loans to any
employee, officer or director of the Company, and the Company agrees not to enter into any such loan or otherwise guarantee the payment of any loan made to an employee, officer or director by a third party. 

(iii) In accordance with the Company’s Charter, no shareholder of the Company has preemptive rights to purchase new
issuances of the Company’s capital stock. 
 (e) [Intentionally Omitted]. 

(f) Other Commitments to Register Securities. Except as set forth in this Agreement and one or more of the Stockholder Agreements, the
Company is not, pursuant to the terms of any other agreement currently in existence, under any obligation to register under the Act any of its presently outstanding securities or any of its securities which may hereafter be issued. 

(g) Exempt Transaction. Subject to the accuracy of the Warrantholder’s representations in Section 10, the issuance of the
Preferred Stock upon exercise of this Agreement, and the issuance of the Common Stock upon conversion of the Preferred Stock, will each constitute a transaction exempt from (i) the registration requirements of Section 5 of the Act, in
reliance upon Section 4(2) thereof, and (ii) the qualification requirements of the applicable state securities laws. 
 (h)
Compliance with Rule 144. At all times from and after consummation of the Initial Public Offering, if the Warrantholder proposes to sell Preferred Stock issuable upon the exercise of this Agreement, or the Common Stock into which it is
convertible, in compliance with Rule 144 promulgated by the SEC, then, upon Warrantholder’s written request to the Company, the Company shall furnish to the Warrantholder, within ten days after receipt of such request, a written statement
confirming the Company’s compliance with the filing requirements of the SEC as set forth in such Rule, as such Rule may be amended from time to time. 

(i) Information Rights. During the term of this Warrant, Warrantholder shall be entitled to the information rights contained in
Section 7.1 of the Loan Agreement, and Section 7.1 of the Loan Agreement is hereby incorporated into this Agreement by this reference as though fully set forth herein, provided, however, that the Company shall not be required to deliver a
Compliance Certificate once all Indebtedness (as defined in the Loan Agreement) owed by the Company to Warrantholder has been repaid. 

  
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 (j) Registration Rights. The Company agrees that the shares of Common Stock issued and
issuable upon conversion of the shares of Preferred Stock issued and issuable upon exercise of this Warrant, and, at all times (if any) when the Preferred Stock shall be Common Stock, the shares of Preferred Stock issued and issuable upon exercise
of this Warrant, shall have the “Piggyback,” and S-3 registration rights pursuant to and as set forth in the Company’s Investor Rights Agreement or similar agreement on a pari passu basis with the holders of outstanding shares
of Preferred Stock who are parties thereto. The provisions set forth in the Company’s Investor Rights Agreement or similar agreement relating to such registration rights in effect as of the Effective Date may not be amended, modified or waived
without the prior written consent of the Warrantholder unless such amendment, modification or waiver affects the rights associated with the shares of Preferred Stock issued and issuable upon exercise hereof in the same manner as such amendment,
modification, or waiver affects the rights associated with all outstanding shares of Preferred Stock whose holders are parties thereto. 

SECTION 10. REPRESENTATIONS AND COVENANTS OF THE WARRANTHOLDER. 

This Agreement has been entered into by the Company in reliance upon the following representations and covenants of the Warrantholder: 

(a) Investment Purpose. The right to acquire Preferred Stock is being, and the Preferred Stock issuable upon exercise of the
Warrantholder’s rights contained herein will be, acquired for investment and not with a view to the sale or distribution of any part thereof, and the Warrantholder has no present intention of selling or engaging in any public distribution of
such rights or the Preferred Stock except pursuant to an effective registration statement or an exemption from the registration requirements of the Act. 

(b) Private Issue. The Warrantholder understands (i) that the Preferred Stock issuable upon exercise of this Agreement is not
registered under the Act or qualified under applicable state securities laws on the ground that the issuance contemplated by this Agreement will be exempt from the registration and qualifications requirements thereof, and (ii) that the
Company’s reliance on such exemption is predicated on the representations set forth in this Section 10. 
 (c) Financial
Risk. The Warrantholder has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment, and has the ability to bear the economic risks of its investment. 

(d) Risk of No Registration. The Warrantholder understands that if the Company does not register with the SEC pursuant to
Section 12 of the Securities Exchange Act of 1934 (the “1934 Act”), or file reports pursuant to Section 15(d) of the 1934 Act, or if a registration statement covering the securities under the Act is not in effect when it
desires to sell (i) the rights to purchase Preferred Stock pursuant to this Agreement or (ii) the Preferred Stock issuable upon exercise of the right to purchase, it may be required to hold such securities for an indefinite period. The
Warrantholder also understands that any sale of (A) its rights hereunder to purchase Preferred Stock or (B) Preferred Stock issued or issuable hereunder which might be made by it in reliance upon Rule 144 under the Act may be made only in
accordance with the terms and conditions of that Rule. 
 (e) Accredited Investor. Warrantholder is an “accredited
investor” within the meaning of the Securities and Exchange Rule 501 of Regulation D, as presently in effect. 
 SECTION 11.
TRANSFERS. 
 (a) General. Subject to compliance with applicable federal and state securities laws, this Agreement and all rights
hereunder are transferable, in whole or in part, without charge to the holder 

  
 9 

 
hereof (except for transfer taxes) upon surrender of this Agreement properly endorsed. Each taker and holder of this Agreement, by taking or holding the same, consents and agrees that this
Agreement, when endorsed in blank, shall be deemed negotiable, and that the holder hereof, when this Agreement shall have been so endorsed and its transfer recorded on the Company’s books, shall be treated by the Company and all other persons
dealing with this Agreement as the absolute owner hereof for any purpose and as the person entitled to exercise the rights represented by this Agreement. The transfer of this Agreement shall be recorded on the books of the Company upon receipt by
the Company of a notice of transfer in the form attached hereto as Exhibit III (the “Transfer Notice”), at its principal offices and the payment to the Company of all transfer taxes and other governmental charges imposed on such
transfer. Until the Company receives such Transfer Notice, the Company may treat the registered owner hereof as the owner for all purposes. Notwithstanding the foregoing: (i) any sale, assignment or other transfer of any shares of Preferred
Stock issued on exercise hereof is subject to the provisions of the Stockholder Agreements to which Warrantholder is then a party or is required by the terms of Section 3(c) above to become a party; and (ii) the Warrantholder shall obtain
the prior written consent of the Company to any transfer of, or grant of security interest in, this Agreement (or the Preferred Stock or Common Stock obtainable upon exercise hereof) to any person or entity that directly competes with the Company or
that is then engaged in material litigation adverse to the Company, in either case as reasonably determined in good faith by the Company’s Board of Directors. 

(b) Market Stand-off Agreement. Warrantholder hereby agrees that it will not, without the prior written consent of the managing
underwriter, during the period commencing on the date of the final prospectus relating to the Initial Public Offering and ending on the date specified by the Company and the managing underwriter (such period not to exceed l80 days, or such other
period as may be requested by the Company or an underwriter to accommodate regulatory restrictions on (1) the publication or other distribution of research reports and (2) analyst recommendations and opinions, including, but not limited
to, the restrictions contained in FINRA Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor provisions or amendments thereto; provided, however, that such period shall not exceed one hundred eighty (180) days in the event that the
Financial Industry Regulatory Authority has amended or repealed FINRA Rule 2711(f)(4), or has otherwise provided written interpretive guidance regarding such rule, in each case, so as to eliminate the prohibition of any broker, dealer, or member of
a national securities association from publishing or distributing any research report, with respect to an emerging growth company (as defined in the Jumpstart Our Business Startups Act of 2012)), (i) lend, offer, pledge, sell, contract to sell,
sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, this Warrant or any shares of Preferred Stock issued on
exercise hereof held immediately prior to the effectiveness of the registration statement for the Initial Public Offering, or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic
consequences of ownership of this Warrant or the shares of Preferred Stock issuable or issued on exercise hereof, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of shares of Preferred Stock
or other securities, in cash or otherwise. The foregoing provisions of this Section 11(b) shall not apply to the sale of any shares of Preferred Stock to an underwriter pursuant to an underwriting agreement. The underwriters in connection with
the Initial Public Offering are intended third party beneficiaries of this Section 11(b) and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. Warrantholder further agrees to execute
such agreements as may be reasonably requested by the underwriters of the Initial Public Offering that are consistent with this Section 11(b) or that are necessary to give further effect thereto. In order to enforce the foregoing, the Company
may impose stop-transfer instructions with respect to this Warrant and the shares of Preferred Stock issuable and issued hereunder (and transferees and assignees thereof) until the end of such restricted period. The foregoing agreements of
Warrantholder in this Section 11(b) shall be effective only if all directors and officers of the Company, and all holders of one percent (1%) or more of the outstanding shares of Common Stock, (determined on a fully-diluted, as-exercised,
as-converted basis), shall have entered into and be bound by similar agreements with the Company and, if applicable, with such underwriters. 

  
 10 

 SECTION 12. MISCELLANEOUS. 

(a) Effective Date. The provisions of this Agreement shall be construed and shall be given effect in all respects as if it had been
executed and delivered by the Company on the date hereof. This Agreement shall be binding upon any successors or assigns of the Company. 

(b) Remedies. In the event of any default hereunder, the non-defaulting party may proceed to protect and enforce its rights either by
suit in equity and/or by action at law, including but not limited to an action for damages as a result of any such default, and/or an action for specific performance for any default where Warrantholder will not have an adequate remedy at law and
where damages will not be readily ascertainable. The Company expressly agrees that it shall not oppose an application by the Warrantholder or any other person entitled to the benefit of this Agreement requiring specific performance of any or all
provisions hereof or enjoining the Company from continuing to commit any such breach of this Agreement. 
 (c) No Impairment of
Rights. The Company will not, by amendment of its Charter or through any other means, avoid or seek to avoid the observance or performance of any of the terms of this Agreement, 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 in order to protect the rights of the Warrantholder against impairment. 

(d) Additional Documents. The Company shall also provide Warrantholder with such other documents and information concerning the Company
as Warrantholder may reasonably request from time to time. 
 (e) Attorneys’ Fees. In any litigation, arbitration or court
proceeding between the Company and the Warrantholder relating hereto, the prevailing party shall be entitled to attorneys’ fees and expenses and all costs of proceedings incurred in enforcing this Agreement. For the purposes of this
Section 12(e), attorneys’ fees shall include without limitation fees incurred in connection with the following: (i) contempt proceedings; (ii) discovery; (iii) any motion, proceeding or other activity of any kind in
connection with an insolvency proceeding; (iv) garnishment, levy, and debtor and third party examinations; and (v) post-judgment motions and proceedings of any kind, including without limitation any activity taken to collect or enforce any
judgment. 
 (f) Severability. In the event any one or more of the provisions of this Agreement shall for any reason be held invalid,
illegal or unenforceable, the remaining provisions of this Agreement shall be unimpaired, and the invalid, illegal or unenforceable provision shall be replaced by a mutually acceptable valid, legal and enforceable provision, which comes closest to
the intention of the parties underlying the invalid, illegal or unenforceable provision. 
 (g) Notices. Except as otherwise provided
herein, any notice, demand, request, consent, approval, declaration, service of process or other communication that is required, contemplated, or permitted under this Agreement or with respect to the subject matter hereof shall be in writing, and
shall be deemed to have been validly served, given, delivered, and received upon the earlier of: (i) the day of transmission by facsimile or hand delivery if transmission or delivery occurs on a business day at or before 5:00 pm in the time
zone of the recipient, or, if transmission or delivery occurs on a non-business day or after such time, the first business day thereafter, or the first business day after deposit with an overnight express service or overnight mail delivery service;
or (ii) the third calendar day after deposit in the United States mails, with proper first class postage prepaid, and shall be addressed to the party to be notified as follows: 

If to Warrantholder: 
 HERCULES TECHNOLOGY III,
L.P. 
 Legal Department 

Attention: Chief Legal Officer and Manuel Henriquez 

400 Hamilton Avenue, Suite 310 

Palo Alto, CA 94301 
 Facsimile:
650-473-9194 
 Telephone: 650-289-3060 

  
 11 

 If to the Company: 

Dance Biopharma, Inc. 
 Attention:
Chief Financial Officer 
 2 Mint Plaza, Suite 804 

San Francisco, CA 94103 

Facsimile: 
 Telephone: 

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

(h) Entire Agreement; Amendments. This Agreement constitute the entire agreement and understanding of the parties hereto in respect of
the subject matter hereof, and supersede and replace in their entirety any prior proposals, term sheets, letters, negotiations or other documents or agreements, whether written or oral, with respect to the subject matter hereof (including
Lender’s proposal letter dated July 15, 2013). None of the terms of this Agreement may be amended except by an instrument executed by each of the parties hereto. 

(i) Headings. The various headings in this Agreement are inserted for convenience only and shall not affect the meaning or
interpretation of this Agreement or any provisions hereof. 
 (j) [Intentionally Omitted] 

(k) No Strict Construction. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the
event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any provisions of this Agreement. 
 (l) No Waiver. No omission or delay by Warrantholder at any time to enforce any
right or remedy reserved to it, or to require performance of any of the terms, covenants or provisions hereof by the Company at any time designated, shall be a waiver of any such right or remedy to which Warrantholder is entitled, nor shall it in
any way affect the right of Warrantholder to enforce such provisions thereafter. 
 (m) Survival. All agreements, representations and
warranties contained in this Agreement or in any document delivered pursuant hereto shall be for the benefit of Warrantholder and shall survive the execution and delivery of this Agreement and the expiration or other termination of this Agreement.

 (n) Governing Law. This Agreement have been negotiated and delivered to Warrantholder in the State of California, and shall have
been accepted by Warrantholder in the State of California. Delivery of Preferred Stock to Warrantholder by the Company under this Agreement is due in the State of California. This Agreement shall be governed by, and construed and enforced in
accordance with, the laws of the State of California, excluding conflict of laws principles that would cause the application of laws of any other jurisdiction. 

(o) Consent to Jurisdiction and Venue. All judicial proceedings arising in or under or related to this Agreement may be brought in any
state or federal court of competent jurisdiction located in the State of California. By execution and delivery of this Agreement, each party hereto generally and unconditionally: (a) consents to personal jurisdiction in Santa Clara County,
State of California; (b) waives any objection as to jurisdiction or venue in Santa Clara County, State of California; (c) agrees not to assert any defense based on lack of jurisdiction or venue in the aforesaid courts; and
(d) irrevocably agrees to be bound by any judgment rendered thereby in connection with this Agreement. Service of process on any 

  
 12 

 
party hereto in any action arising out of or relating to this Agreement shall be effective if given in accordance with the requirements for notice set forth in Section 12(g), and shall be
deemed effective and received as set forth in Section 12(g). Nothing herein shall affect the right to serve process in any other manner permitted by law or shall limit the right of either party to bring proceedings in the courts of any other
jurisdiction. 
 (p) Mutual Waiver of Jury Trial. Because disputes arising in connection with complex financial transactions are most
quickly and economically resolved by an experienced and expert person and the parties wish applicable state and federal laws to apply (rather than arbitration rules), the parties desire that their disputes be resolved by a judge applying such
applicable laws. EACH OF THE COMPANY AND WARRANTHOLDER SPECIFICALLY WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY OF ANY CAUSE OF ACTION, CLAIM, CROSS-CLAIM, COUNTERCLAIM, THIRD PARTY CLAIM OR ANY OTHER CLAIM (COLLECTIVELY, “CLAIMS”)
ASSERTED BY THE COMPANY AGAINST WARRANTHOLDER OR ITS ASSIGNEE OR BY WARRANTHOLDER OR ITS ASSIGNEE AGAINST THE COMPANY. This waiver extends to all such Claims, including Claims that involve Persons other than the Company and Warrantholder; Claims
that arise out of or are in any way connected to the relationship between the Company and Warrantholder; and any Claims for damages, breach of contract, specific performance, or any equitable or legal relief of any kind, arising out of this
Agreement. 
 (q) Judicial Reference. If the waiver of jury trial set forth above is ineffective or unenforceable, the parties agree
that all Claims shall be resolved by reference to a private judge sitting without a jury, pursuant to Code of Civil Procedure Section 638, before a mutually acceptable referee or, if the parties cannot agree, a referee selected by the Presiding
Judge of Santa Clara County, California. Such proceeding shall be conducted in Santa Clara County, California, with California rules of evidence and discovery applicable to such proceeding. 

(r) Prejudgment Relief. In the event Claims are to be resolved by arbitration, either party may seek from a court of competent
jurisdiction identified in Section 12(o), any prejudgment order, writ or other relief and have such prejudgment order, writ or other relief enforced to the fullest extent permitted by law notwithstanding that all Claims are otherwise subject to
resolution by judicial reference. 
 (s) Counterparts. This Agreement and any amendments, waivers, consents or supplements hereto may
be executed in any number of counterparts, and by different parties hereto in separate counterparts, each of which when so delivered shall be deemed an original, but all of which counterparts shall constitute but one and the same instrument. 

(t) Specific Performance. The parties hereto hereby declare that it is impossible to measure in money the damages which will accrue to
Warrantholder by reason of the Company’s failure to perform any of the obligations under this Agreement and agree that the terms of this Agreement shall be specifically enforceable by Warrantholder. 

[Remainder of Page Intentionally Left Blank] 

  
 13 

 IN WITNESS WHEREOF, the parties hereto have caused this Warrant Agreement to be executed by its officers
thereunto duly authorized as of the Effective Date. 
  

									
	 COMPANY:
	 		 		 	DANCE BIOPHARM, INC.
					
		 		 		 	By:	 	 /s/ John Patton

					
		 		 		 	Name:	 	John Patton
					
		 		 		 	Title:	 	CEO and Chairman
				
	WARRANTHOLDER:	 		 		 	HERCULES TECHNOLOGY III, L.P.,
		 		 		 	a Delaware limited partnership
					
		 		 		 	By:	 	Hercules Technology SBIC Management, LLC,
		 		 		 		 	its General Partner
					
		 		 		 	By:	 	Hercules Technology Growth Capital, Inc.,
		 		 		 		 	its Manager
					
		 		 		 	By:	 	 /s/ Ben Bang

		 		 		 	Name:	 	Ben Bang
		 		 		 	Title:	 	Senior Counsel

  
 14 

 EXHIBIT I 

NOTICE OF EXERCISE 
  

	To:	[                                    
    ] 

  

	(1)	The undersigned Warrantholder hereby elects to purchase [            ] shares of the Series [    ] Preferred Stock/Common Stock of
[                    ], pursuant to the terms of the Agreement dated the [    ] day of
[        ,         ] (the “Agreement”) between
[                    ] and the Warrantholder, and [CASH PAYMENT: tenders herewith payment of the Purchase Price in full, together with all applicable
transfer taxes, if any.] [NET ISSUANCE: elects pursuant to Section 3(a) of the Agreement to effect a Net Issuance.] 

  

	(2)	Please issue a certificate or certificates representing said shares of Series [    ] Preferred Stock/Common Stock in the name of the undersigned or in such other name as is specified below.

  

									
		 		 		 		 	
		 		 		 	  
 (Name)

				
		 		 		 	  
 (Address)

				
	WARRANTHOLDER:	 		 		 	HERCULES TECHNOLOGY III, L.P.,
		 		 		 	a Delaware limited partnership
					
		 		 		 	By:	 	Hercules Technology SBIC Management, LLC,
		 		 		 		 	its General Partner
					
		 		 		 	By:	 	Hercules Technology Growth Capital, Inc.,
		 		 		 		 	its Manager
					
		 		 		 	By:	 	  

		 		 		 	Name:	 	Ben Bang
		 		 		 	Title:	 	Senior Counsel
					
		 		 		 	Date:	 	  

  
 15 

 EXHIBIT II 

ACKNOWLEDGMENT OF EXERCISE 
 The undersigned
[                                        ],
hereby acknowledge receipt of the “Notice of Exercise” from Hercules Technology III, L.P., to purchase [            ] shares of the Series [    ] Preferred
Stock/Common Stock of [                    ], pursuant to the terms of the Agreement, and further acknowledges that
[            ] shares remain subject to purchase under the terms of the Agreement. 
  

									
	 COMPANY:
	 		 		 	[                    ]
					
		 		 		 	By:	 	  

					
		 		 		 	Title:	 	  

					
		 		 		 	Date:	 	  

  
 16 

 EXHIBIT III 

TRANSFER NOTICE 
 (To transfer or assign the
foregoing Agreement execute this form and supply required information. Do not use this form to purchase shares.) 
 FOR VALUE RECEIVED, the foregoing
Agreement and all rights evidenced thereby are hereby transferred and assigned to 
  

					
	  
	  	
	(Please Print)	  		  	
			
	whose address is	  	  
	  	
		
	  
	  	

  

					
		 	Dated:	 	  

					
			
		 	Holder’s Signature:	 	  

					
			
		 	Holder’s Address:	 	  

		
		 	  

  

					
	Signature Guaranteed:	 	  
	  	

 NOTE: The signature to this Transfer Notice must correspond with the name as it appears on the face of the Agreement,
without alteration or enlargement or any change whatever. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Agreement. 

  
 17EX-10.12

 Exhibit 10.12 

LOAN AND SECURITY AGREEMENT 

THIS LOAN AND SECURITY AGREEMENT is made and dated as of October 30, 2013 and is entered into by and between DANCE BIOPHARM, INC., a
Delaware corporation, and each of its subsidiaries, (hereinafter collectively referred to as the “Borrower”), and HERCULES TECHNOLOGY III, L.P., a Delaware limited partnership (“Lender”). 

RECITALS 
 A. Borrower has
requested Lender to make available to Borrower term loans (each a “Term Loan Advance” and collectively, the “Term Loan Advances”) in an aggregate principal amount of up to Four Million Dollars ($4,000,000.00) (the
“Maximum Term Loan Amount”); and 
 B. Lender is willing to make the Term Loan Advances on the terms and conditions set
forth in this Agreement. 
 AGREEMENT 

NOW, THEREFORE, Borrower and Lender agree as follows: 
  

	 	SECTION 1.	DEFINITIONS AND RULES OF CONSTRUCTION 

 1.1 Unless otherwise defined herein, the
following capitalized terms shall have the following meanings: 
 “Account Control Agreement(s)” means any agreement
entered into by and among the Lender, Borrower and a third party Bank or other institution (including a Securities Intermediary) in which Borrower maintains a Deposit Account or an account holding Investment Property and which grants Lender a
perfected first priority security interest in the subject account or accounts. 
 “ACH Authorization” means the ACH Debit
Authorization Agreement in substantially the form of Exhibit H. 
 “ACH Failure” means (ii) the failure of the
Automated Clearing House (ACH) system to effect a transfer of funds requested by Lender to be used to satisfy all or part of Borrower’s obligations to pay principal and interest due hereunder or (ii) a failure by Lender to initiate debit
entries for the periodic payments of such principal or interest. 
 “Advance(s)” means a Term Loan Advance. 

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

“Advance Request” means a request for an Advance submitted by Borrower to Lender in substantially the form of Exhibit A.

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

“Amortization Date” means September 1, 2014; provided, however, that if the Milestone Event occurs prior to such date,
the Amortization Date shall be, unless Borrower elects in writing prior to not to extend the original Amortization Date, December 1, 2014. 

“Assignee” has the meaning given to it in Section 11.13. 

“Borrower Products” means all products, software, service offerings, technical data or technology currently being developed,
manufactured, marketed, or sold by Borrower or which Borrower intends to sell, license, 

 
or distribute in the future including any products or service offerings under development, collectively, together with all products, software, service offerings, technical data or technology that
have been sold, licensed or distributed by Borrower since its incorporation. 
 “Business Day” is any day that is not a
Saturday, Sunday or a day on which Lender is closed. 
 “Cash” means all cash and liquid funds. 

“Change in Control” means any (i) reorganization, recapitalization, consolidation or merger (or similar transaction or
series of related transactions) of Borrower or any Subsidiary, sale or exchange of outstanding shares (or similar transaction or series of related transactions) of Borrower or any Subsidiary in which the holders of Borrower or Subsidiary’s
outstanding shares immediately before consummation of such transaction or series of related transactions do not, immediately after consummation of such transaction or series of related transactions, retain shares representing more than fifty percent
(50%) of the voting power of the surviving entity of such transaction or series of related transactions (or the parent of such surviving entity if such surviving entity is wholly owned by such parent), in each case without regard to whether
Borrower or Subsidiary is the surviving entity, or (ii) sale or issuance by Borrower of new shares of Preferred Stock of Borrower to investors, none of whom are current investors in Borrower, and such new shares of Preferred Stock are senior to
all existing Preferred Stock and Common Stock with respect to liquidation preferences, and the aggregate liquidation preference of the new shares of Preferred Stock is more than fifty percent (50%) of the aggregate liquidation preference of all
shares of Preferred Stock of Borrower; provided, however, an Initial Public Offering shall not constitute a Change in Control. 

“Claims” has the meaning given to it in Section 11.10. 

“Closing Date” means the date of this Agreement. 

“Collateral” means the property described in Section 3. 

“Confidential Information” has the meaning given to it in Section 11.12. 

“Contingent Obligation” means, as applied to any Person, any direct or indirect liability, contingent or otherwise, of that
Person with respect to (i) any indebtedness, lease, dividend, letter of credit or other obligation of another, including any such obligation directly or indirectly guaranteed, endorsed, co-made or discounted or sold with recourse by that
Person, or in respect of which that Person is otherwise directly or indirectly liable; (ii) any obligations with respect to undrawn letters of credit, corporate credit cards or merchant services issued for the account of that Person; and
(iii) all obligations arising under any interest rate, currency or commodity swap agreement, interest rate cap agreement, interest rate collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in
interest rates, currency exchange rates or commodity prices; provided, however, that the term “Contingent Obligation” shall not include endorsements for collection or deposit in the ordinary course of business. The amount of any Contingent
Obligation shall be deemed to be an amount equal to the stated or determined amount of the primary obligation in respect of which such Contingent Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in
respect thereof as determined by such Person in good faith; provided, however, that such amount shall not in any event exceed the maximum amount of the obligations under the guarantee or other support arrangement. 

“Copyright License” means any written agreement granting any right to use any Copyright or Copyright registration, now owned
or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest. 
 “Copyrights” means
all copyrights, whether registered or unregistered, held pursuant to the laws of the United States, any State thereof, or of any other country. 

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

  
 2 

 “ERISA” is the Employee Retirement Income Security Act of 1974, and its
regulations. 
 “Event of Default” has the meaning given to it in Section 9. 

“Facility Charge” means three quarters of one percent (0.75%) of the Maximum Term Loan Amount. 

“Financial Statements” has the meaning given to it in Section 7.1. 

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

“Indebtedness” means indebtedness of any kind, including (a) all indebtedness for borrowed money or the deferred
purchase price of property or services (excluding trade credit entered into in the ordinary course of business due within sixty (60) days), including reimbursement and other obligations with respect to surety bonds and letters of credit,
(b) all obligations evidenced by notes, bonds, debentures or similar instruments, (c) all capital lease obligations, and (d) all Contingent Obligations. 

“Initial Public Offering” means the initial firm commitment underwritten offering of Borrower’s common stock pursuant to
a registration statement under the Securities Act of 1933 filed with and declared effective by the Securities and Exchange Commission. 

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

“Intellectual Property” means all of Borrower’s Copyrights; Trademarks; Patents; Licenses; trade secrets and inventions;
mask works; Borrower’s applications therefor and reissues, extensions, or renewals thereof; and Borrower’s goodwill associated with any of the foregoing, together with Borrower’s rights to sue for past, present and future infringement
of Intellectual Property and the goodwill associated therewith. 
 “Investment” means any beneficial ownership (including
stock, partnership or limited liability company interests) of or in any Person, or any loan, advance or capital contribution to any Person or the acquisition of all, or substantially all, of the assets of another Person. 

“Joinder Agreements” means for each Subsidiary, a completed and executed Joinder Agreement in substantially the form attached
hereto as Exhibit G. 
 “Lender” has the meaning given to it in the preamble to this Agreement. 

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

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

“Loan” means the Advances made under this Agreement. 

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

  
 3 

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

“Maximum Term Loan Amount” shall have the meaning assigned to such term in the preamble to this Agreement. 

“Maximum Rate” shall have the meaning assigned to such term in Section 2.2. 

“Milestone Event” means Borrower has delivered evidence acceptable to Lender in Lender’s sole discretion on or before
June 30, 2014, that Borrower has achieved positive clinical data from both PK/PD trials. 
 “Note(s)” means a
promissory note or promissory notes to evidence Lender’s Loans. 
 “Patent License” means any written agreement
granting any right with respect to any invention on which a Patent is in existence or a Patent application is pending, in which agreement Borrower now holds or hereafter acquires any interest. 

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

“Permitted Indebtedness” means: (i) Indebtedness of Borrower in favor of Lender arising under this Agreement or any
other Loan Document; (ii) Indebtedness existing on the Closing Date which is disclosed in Schedule 1A; (iii) Indebtedness of up to $250,000 outstanding at any time secured by a Lien described in clause (vii) of the defined term
“Permitted Liens,” provided such Indebtedness does not exceed the lesser of the cost or fair market value of the Equipment financed with such Indebtedness; (iv) Indebtedness to trade creditors incurred in the ordinary course of
business, including Indebtedness incurred in the ordinary course of business with corporate credit cards; (v) Indebtedness that also constitutes a Permitted Investment; (vi) Subordinated Indebtedness; (vii) reimbursement obligations
in connection with letters of credit that are secured by cash or cash equivalents and issued on behalf of the Borrower or a Subsidiary thereof in an amount not to exceed $200,000 at any time outstanding, (viii) other Indebtedness in an amount
not to exceed $100,000 at any time outstanding, and (ix) extensions, refinancings and renewals of any items of Permitted Indebtedness, provided that the principal amount is not increased or the terms modified to impose materially more
burdensome terms upon Borrower or its Subsidiary, as the case may be. 
 “Permitted Investment” means: (i) Investments
existing on the Closing Date which are disclosed in Schedule 1B; (ii) (a) marketable direct obligations issued or unconditionally guaranteed by the United States of America or any agency or any State thereof maturing within one year from
the date of acquisition thereof, (b) commercial paper maturing no more than one year from the date of creation thereof and currently having a rating of at least A-2 or P-2 from either Standard & Poor’s Corporation or Moody’s
Investors Service, (c) certificates of deposit issued by any bank with assets of at least $250,000,000 maturing no more than one year from the date of investment therein, and (d) money market accounts; (iii) repurchases of stock from
former employees, directors, or consultants of Borrower under the terms of applicable repurchase agreements at the original issuance price of such securities in an aggregate amount not to exceed $250,000 in any fiscal year, provided that no Event of
Default has occurred, is continuing or would exist after giving effect to the repurchases; (iv) Investments accepted in connection with Permitted Transfers; (v) Investments (including debt obligations) received in connection with the
bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of Borrower’s business; (vi) Investments consisting of
notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers who are not affiliates, in the ordinary course of business, provided that this subparagraph (vi) shall not apply to Investments of Borrower in any
Subsidiary; (vii) Investments consisting of loans not involving the net transfer on a substantially contemporaneous basis of cash proceeds to employees, officers or directors relating to the purchase of capital stock of Borrower pursuant to
employee stock purchase plans or other similar agreements approved by Borrower’s Board 

  
 4 

 
of Directors; (viii) Investments consisting of travel advances in the ordinary course of business; (ix) Investments in newly-formed Subsidiaries organized in the United States, provided
that such Subsidiaries enter into a Joinder Agreement promptly after their formation by Borrower and execute such other documents as shall be reasonably requested by Lender; (x) Investments in subsidiaries organized outside of the United States
approved in advance in writing by Lender; (xi) joint ventures or strategic alliances in the ordinary course of Borrower’s business consisting of the nonexclusive licensing of technology, the development of technology or the providing of
technical support, provided that any cash Investments by Borrower are made to finance on-going operating expenses incurred in the ordinary course of business and do not exceed (A) $300,000 in each of Borrower’s fiscal years ending
December 31, 2013 and December 31, 2014 in respect of Borrower’s joint venture in the People’s Republic of China and (B) $100,000 in the aggregate in any fiscal year with respect to all other joint ventures; and
(xii) additional Investments that do not exceed $250,000 in the aggregate. 
 “Permitted Liens” means any and all of
the following: (i) Liens in favor of Lender; (ii) Liens existing on the Closing Date which are disclosed in Schedule 1C; (iii) Liens for taxes, fees, assessments or other governmental charges or levies, either not delinquent or being
contested in good faith by appropriate proceedings; provided, that Borrower maintains adequate reserves therefor in accordance with GAAP; (iv) Liens securing claims or demands of materialmen, artisans, mechanics, carriers, warehousemen,
landlords and other like Persons arising in the ordinary course of Borrower’s business and imposed without action of such parties; provided, that the payment thereof is not yet required; and, provided further, that Borrower shall deliver to
Lender landlord’s waivers in respect of the Borrower’s leased premises located in San Francisco, California and Brisbane, California on before the date that is thirty (30) days after the Closing Date; (v) Liens arising from
judgments, decrees or attachments in circumstances which do not constitute an Event of Default hereunder; (vi) the following deposits, to the extent made in the ordinary course of business: deposits under worker’s compensation,
unemployment insurance, social security and other similar laws, or to secure the performance of bids, tenders or contracts (other than for the repayment of borrowed money) or to secure indemnity, performance or other similar bonds for the
performance of bids, tenders or contracts (other than for the repayment of borrowed money) or to secure statutory obligations (other than liens arising under ERISA or environmental liens) or surety or appeal bonds, or to secure indemnity,
performance or other similar bonds; (vii) Liens on Equipment or software or other intellectual property constituting purchase money liens and liens in connection with capital leases securing Indebtedness permitted in clause (iii) of
“Permitted Indebtedness”; (viii) Liens incurred in connection with Subordinated Indebtedness; (ix) leasehold interests in leases or subleases and licenses granted in the ordinary course of business and not interfering in any
material respect with the business of the licensor; (x) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of custom duties that are promptly paid on or before the date they become due;
(xi) Liens on insurance proceeds securing the payment of financed insurance premiums that are promptly paid on or before the date they become due (provided that such Liens extend only to such insurance proceeds and not to any other property or
assets); (xii) statutory and common law rights of set-off and other similar rights as to deposits of cash and securities in favor of banks, other depository institutions and brokerage firms; (xiii) easements, zoning restrictions,
rights-of-way and similar encumbrances on real property imposed by law or arising in the ordinary course of business so long as they do not materially impair the value or marketability of the related property; (xiv) Liens on cash or cash
equivalents securing obligations permitted under clause (vii) of the definition of Permitted Indebtedness; and (xv) Liens incurred in connection with the extension, renewal or refinancing of the indebtedness secured by Liens of the type
described in clauses (i) through (xi) above; provided, that any extension, renewal or replacement Lien shall be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness being extended, renewed or
refinanced (as may have been reduced by any payment thereon) does not increase. 
 “Permitted Transfers” means
(i) sales of Inventory in the normal course of business, (ii) non-exclusive licenses and similar arrangements for the use of Intellectual Property in the ordinary course of business and licenses that could not result in a legal transfer of
title of the licensed property but that may be exclusive in respects other than territory and that may be exclusive as to territory only as to discrete geographical areas outside of the United States in the ordinary course of business, or
(iii) dispositions of worn-out, obsolete or surplus Equipment at fair market value in the ordinary course of business, and (iv) other Transfers of assets having a fair market value of not more than $250,000 in the aggregate in any fiscal
year. 
 “Person” means any individual, sole proprietorship, partnership, joint venture, trust, unincorporated
organization, association, corporation, limited liability company, institution, other entity or government. 

  
 5 

 “Post-Closing Draw Period” means the period commencing upon the occurrence of
the Milestone Event and ending on the earlier to occur of (i) June 30, 2014, and (ii) the occurrence of an Event of Default. 

“Preferred Stock” means at any given time any equity security issued by Borrower that has any rights, preferences or
privileges senior to Borrower’s common stock. 
 “Prepayment Charge” shall have the meaning assigned to such term in
Section 2.4. 
 “Prime Rate” means the “prime rate” as reported in The Wall Street Journal, and if
not reported in The Wall Street Journal, then as made publicly available in substitution therefor as determined by Lender in its reasonable discretion. 

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

“SBA” shall have the meaning assigned to such term in Section 7.14. 

“SBIC” shall have the meaning assigned to such term in Section 7.14. 

“SBIC Act” shall have the meaning assigned to such term in Section 7.14. 

“Secured Obligations” means Borrower’s obligations under this Agreement and any Loan Document, including any obligation
to pay any amount now owing or later arising. 
 “Subordinated Indebtedness” means Indebtedness subordinated to the Secured
Obligations in amounts and on terms and conditions satisfactory to Lender in its sole discretion. 
 “Subsequent Financing”
means the first sale and issuance by Borrower following the Closing Date, in a single transaction or series of related transactions, of shares of its convertible preferred stock or other equity securities (or instruments exercisable for or
convertible into shares of convertible preferred stock or other equity securities) to one or more institutional investors for cash in a bona fide equity financing of Borrower, other than a sale pursuant to an effective registration statement under
the Securities Act of 1933, as amended. 
 “Subsidiary” means an entity, whether corporate, partnership, limited liability
company, joint venture or otherwise, in which Borrower owns or controls 50% or more of the outstanding voting securities, including each entity listed on Schedule 1 hereto. 

“Term Loan Advance” and “Term Loan Advances” are each defined in Recital A hereof. 

“Term Loan Interest Rate” means for any day, a floating per annum rate equal to the greater of either (i) ten and
sixty-five one-hundredths percent (10.65%), or (ii) the sum of (A) ten and sixty-five one-hundredths percent (10.65%), plus (B) the Prime Rate minus three and one-quarter percent (3.25%). The Term Loan Interest Rate will change from
time to time on the day the Prime Rate changes. 
 “Term Loan Maturity Date” means the date that is thirty five
(35) months after the Amortization Date. 
 “Trademark License” means any written agreement granting any right to use
any Trademark or Trademark registration, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest. 

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

  
 6 

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

“Warrant” means the warrant entered into in connection with the Loan. 

Unless otherwise specified, all references in this Agreement or any Annex or Schedule hereto to a “Section,” “subsection,”
“Exhibit,” “Annex,” or “Schedule” shall refer to the corresponding Section, subsection, Exhibit, Annex, or Schedule in or to this Agreement. Unless otherwise specifically provided herein, any accounting term used in
this Agreement or the other Loan Documents shall have the meaning customarily given such term in accordance with GAAP, and all financial computations hereunder shall be computed in accordance with GAAP, consistently applied. Unless otherwise defined
herein or in the other Loan Documents, terms that are used herein or in the other Loan Documents and defined in the UCC shall have the meanings given to them in the UCC. 
  

	 	SECTION 2.	THE LOAN 

 2.1 Term Loan. 

(a) Advances. Subject to the terms and conditions of this Agreement, Lender will make, and Borrower agrees to draw, an initial Term
Loan Advance in the amount of One Million Dollars ($1,000,000) on the Closing Date. During the Post-Closing Draw Period, Borrower may request additional Term Loan Advances in an aggregate amount of up to Three Million Dollars ($3,000,000) in minimum
increments of One Million Dollars ($1,000,000) each. The aggregate outstanding Term Loan Advances shall not exceed the Maximum Term Loan Amount. Proceeds of any Advance shall be deposited into an account that is subject to a perfected security
interest in favor of Lender perfected by a control agreement. 
 (b) Advance Request. To obtain a Term Loan Advance, Borrower shall
complete, sign and deliver to Lender an Advance Request (at least five (5) Business Days before the Advance Date). Lender shall fund the Term Loan Advance in the manner requested by the Advance Request provided that each of the conditions
precedent to such Term Loan Advance is satisfied as of the requested Advance Date. 
 (c) Interest. The principal balance of each
Term Loan Advance shall bear interest thereon from such Advance Date at the Term Loan Interest Rate based on a year consisting of 360 days, with interest computed daily based on the actual number of days elapsed. The Term Loan Interest Rate will
float and change on the day the Prime Rate changes from time to time. 
 (d) Payment. Borrower will pay interest on each Term Loan
Advance on the first (1st) Business Day of each month, beginning the month after the Advance Date. Commencing on the Amortization Date, and continuing on the first (1st) Business Day of each month thereafter, Borrower shall repay the
aggregate principal balance of Term Loan Advances that are outstanding on the Amortization Date in equal monthly installments of principal and interest (mortgage style) based upon an amortization schedule equal to thirty-six (36) consecutive
months. The entire principal balance of the Term Loan Advances and all accrued but unpaid interest hereunder, and all other Secured Obligations with respect to the Term Loan Advances, shall be due and payable on Term Loan Maturity Date. Borrower
shall make all payments under this Agreement without setoff, recoupment or deduction and regardless of any counterclaim or defense. Lender will initiate debit entries to the Borrower’s account as authorized on the ACH Authorization on each
payment date of all periodic obligations payable to Lender under each Term Loan Advance. Once repaid, a Term Loan Advance or any portion thereof may not be reborrowed. 

2.2 Maximum Interest. Notwithstanding any provision in this Agreement or any other Loan Document, it is the parties’ intent not to
contract for, charge or receive interest at a rate that is greater than the maximum rate permissible by law that a court of competent jurisdiction shall deem applicable hereto (which under 

  
 7 

 
the laws of the State of California shall be deemed to be the laws relating to permissible rates of interest on commercial loans) (the “Maximum Rate”). If a court of competent
jurisdiction shall finally determine that Borrower has actually paid to Lender an amount of interest in excess of the amount that would have been payable if all of the Secured Obligations had at all times borne interest at the Maximum Rate, then
such excess interest actually paid by Borrower shall be applied as follows: first, to the payment of the Secured Obligations consisting of the outstanding principal of the Term Loan Advances; second, after all principal is repaid, to the payment of
Lender’s accrued interest, costs, expenses, professional fees and any other Secured Obligations; and third, after all Secured Obligations are repaid, the excess (if any) shall be refunded to Borrower. 

2.3 Default Interest. In the event any payment is not paid on the scheduled payment date, an amount equal to five percent (5%) of
the past due amount shall be payable on demand. In addition, upon the occurrence and during the continuation of an Event of Default hereunder, all Secured Obligations, including principal, interest, compounded interest, and professional fees, shall
bear interest at a rate per annum equal to the rate set forth in Section 2.1(c), plus four percent (4%) per annum. In the event any interest is not paid when due hereunder, delinquent interest shall be added to principal and shall bear
interest on interest, compounded at the rate set forth in Section 2.1(c). 
 2.4 Prepayment. At its option upon at least seven
(7) Business Days prior notice to Lender, Borrower may prepay all, but not less than all, of the outstanding Advances by paying the entire principal balance of all Advances, all accrued and unpaid interest on the portion prepaid, all unpaid
Lender’s fees and expenses accrued to the date of the repayment, together with a prepayment charge on the portion prepaid equal to the following percentage of the Advances: if such Advance amounts are prepaid in any of the first twelve
(12) months following the Closing Date, three percent (3%); after twelve (12) months but prior to twenty four (24) months, two percent (2%); and after twenty four (24) months but prior to the Term Loan Maturity Date, one percent
(1.0%) (each, a “Prepayment Charge”). Borrower agrees that the Prepayment Charge is a reasonable calculation of Lender’s lost profits in view of the difficulties and impracticality of determining actual damages resulting
from an early repayment of the Advances. Upon the occurrence of a Change in Control, Borrower shall prepay the outstanding amount of all principal and accrued interest on the Advances through the prepayment date and all unpaid Lender’s fees and
expenses accrued to the date of the repayment together with a Prepayment Charge. For purposes of clarification, Borrower shall not be required to mandatorily prepay the Advances as a result of an Initial Public Offering. 

2.5 End of Term Charge. On the earliest to occur of (i) the Term Loan Maturity Date, (ii) the date that Borrower prepays the
outstanding Secured Obligations, or (iii) the date that the Secured Obligations become due and payable, Borrower shall pay Lender a fee of four percent (4.0%) of the Maximum Term Loan Amount. Notwithstanding the required payment date of
such charge, it shall be deemed earned by Lender as of the Closing Date. 
 2.6 Notes. If so requested by Lender by written notice to
Borrower, then Borrower shall execute and deliver to Lender (and/or, if applicable and if so specified in such notice, to any person who is an assignee of Lender pursuant to Section 11.13) (promptly after the Borrower’s receipt of such
notice) a Note or Notes to evidence Lender’s Loans. 
 2.7 Commitment Charge. On or prior to the Closing Date, Borrower has paid
to lender a commitment charge of Fifteen Thousand Dollars ($15,000), which commitment charge shall be deemed fully earned on the Closing Date regardless of the early termination of this Agreement. 

 

	 	SECTION 3.	SECURITY INTEREST 

 3.1 As security for the prompt, complete and indefeasible
payment when due (whether on the payment dates or otherwise) of all the Secured Obligations, Borrower grants to Lender a security interest in all of Borrower’s right, title, and interest in and to the following personal property whether now
owned or hereafter acquired (collectively, the “Collateral”): (a) Receivables; (b) Equipment; (c) Fixtures; (d) General Intangibles (other than Intellectual Property); (e) Inventory; (f) Investment
Property (but excluding thirty-five percent (35%) of the capital stock of any foreign Subsidiary that constitutes a Permitted Investment); (g) Deposit Accounts; (h) Cash; (i) Goods; and all other tangible and intangible personal
property of Borrower whether now or hereafter owned or existing, 

  
 8 

 
leased, consigned by or to, or acquired by, Borrower and wherever located, and any of Borrower’s property in the possession or under the control of Lender; and, to the extent not otherwise
included, all Proceeds of each of the foregoing and all accessions to, substitutions and replacements for, and rents, profits and products of each of the foregoing; provided, however, that the Collateral shall include all Accounts and General
Intangibles that consist of rights to payment and proceeds from the sale, licensing or disposition of all or any part, or rights in, the Intellectual Property (the “Rights to Payment”). Notwithstanding the foregoing, if a judicial
authority (including a U.S. Bankruptcy Court) holds that a security interest in the underlying Intellectual Property is necessary to have a security interest in the Rights to Payment, then the Collateral shall automatically, and effective as of the
date of this Agreement, include the Intellectual Property to the extent necessary to permit perfection of Lender’s security interest in the Rights to Payment. 
  

	 	SECTION 4.	CONDITIONS PRECEDENT TO LOAN 

 The obligation of Lender to make the Term Loan
Advances hereunder are subject to the satisfaction by Borrower of the following conditions: 
 4.1 Initial Advance. On or prior to
the Closing Date, Borrower shall have delivered to Lender the following: 
 (a) executed originals of the Loan Documents, Account Control
Agreements, and all other documents and instruments reasonably required by Lender to effectuate the transactions contemplated hereby or to create and perfect the Liens of Lender with respect to all Collateral, in all cases in form and substance
reasonably acceptable to Lender; 
 (b) certified copy of resolutions of Borrower’s board of directors evidencing approval of
(i) the Loan and other transactions evidenced by the Loan Documents; and (ii) the Warrant and transactions evidenced thereby; 

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

(d) a certificate of good standing for Borrower from its state of incorporation and similar certificates from all other jurisdictions in
which it does business and where the failure to be qualified would have a Material Adverse Effect; 
 (e) payment of the Facility Charge
and reimbursement of Lender’s current expenses reimbursable pursuant to this Agreement, which amounts may be deducted from the initial Advance; and 

(f) such other documents as Lender may reasonably request. 

4.2 All Advances. On each Advance Date: 

(a) Lender shall have received (i) an Advance Request for the relevant Advance as required by Section 2.1(b), duly executed by
Borrower’s Chief Executive Officer or Chief Financial Officer, (ii) a Compliance Certificate, and (iii) any other documents Lender may reasonably request. 

(b) The representations and warranties set forth in this Agreement and in Section 5 and in the Warrant shall be true and correct in all
material respects on and as of the Advance Date with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date. 

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

  
 9 

 (d) Each Advance Request shall be deemed to constitute a representation and warranty by Borrower
on the relevant Advance Date as to the matters specified in paragraphs (b) and (c) of this Section 4.2 and as to the matters set forth in the Advance Request. 

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

 

	 	SECTION 5.	REPRESENTATIONS AND WARRANTIES OF BORROWER 

 Borrower represents and warrants
that: 
 5.1 Corporate Status. Borrower is a corporation duly organized, legally existing and in good standing under the laws of the
State of Delaware, and is duly qualified as a foreign corporation in all jurisdictions in which the nature of its business or location of its properties require such qualifications and where the failure to be qualified could reasonably be expected
to have a Material Adverse Effect. Borrower’s present name, former names (if any), locations, place of formation, tax identification number, organizational identification number and other information are correctly set forth in Exhibit C, as may
be updated by Borrower in a written notice (including any Compliance Certificate) provided to Lender after the Closing Date. 
 5.2
Collateral. Borrower owns the Collateral and the Intellectual Property, free of all Liens, except for Permitted Liens. Borrower has the corporate power and authority to grant to Lender a Lien in the Collateral as security for the Secured
Obligations. 
 5.3 Consents. Borrower’s execution, delivery and performance of the Notes (if any), this Agreement and all other
Loan Documents, and Borrower’s execution of the Warrant, (i) have been duly authorized by all necessary corporate action of Borrower, (ii) will not result in the creation or imposition of any Lien upon the Collateral, other than
Permitted Liens and the Liens created by this Agreement and the other Loan Documents, (iii) do not violate any provisions of Borrower’s Certificate or Articles of Incorporation (as applicable), bylaws, or any law, regulation, order,
injunction, judgment, decree or writ to which Borrower is subject and (iv) except as described on Schedule 5.3, do not violate any contract or agreement or require the consent or approval of any other Person. The individual or individuals
executing the Loan Documents and the Warrant are duly authorized to do so. 
 5.4 Material Adverse Effect. No event that has had or
could reasonably be expected to have a Material Adverse Effect has occurred and is continuing. Borrower is not aware of any event likely to occur that is reasonably expected to result in a Material Adverse Effect. 

5.5 Actions Before Governmental Authorities. Except as described on Schedule 5.5, there are no actions, suits or proceedings at law or
in equity or by or before any governmental authority now pending or, to the knowledge of Borrower, threatened against or affecting Borrower or its property. 

5.6 Laws. Borrower is not in violation of any law, rule or regulation, or in default with respect to any judgment, writ, injunction or
decree of any governmental authority, where such violation or default is reasonably expected to result in a Material Adverse Effect. Borrower is not in default in any manner under any provision of any agreement or instrument evidencing indebtedness,
or any other material agreement to which it is a party or by which it is bound. 
 5.7 Information Correct and Current. No
information, report, Advance Request, financial statement, exhibit or schedule furnished by or on behalf of Borrower to Lender in connection with any Loan Document or included therein or delivered pursuant thereto contained, contains any material
misstatement of fact or omitted, omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were, and are, not misleading at the time such statement was made or deemed made.
Additionally, any and all financial or business projections provided by Borrower to Lender shall be (i) provided in good faith and based on the most current data and information available to Borrower, and (ii) the most current of such
projections provided to Borrower’s Board of Directors. 

  
 10 

 5.8 Tax Matters. Except as described on Schedule 5.8, (a) Borrower has filed all
federal, state and local tax returns that it is required to file, (b) Borrower has duly paid or fully reserved for all taxes or installments thereof (including any interest or penalties) as and when due, which have or may become due pursuant to
such returns, and (c) Borrower has paid or fully reserved for any tax assessment received by Borrower for the three (3) years preceding the Closing Date, if any (including any taxes being contested in good faith and by appropriate
proceedings). 
 5.9 Intellectual Property Claims. Borrower is the sole owner of, or otherwise has the right to use, the Intellectual
Property. Except as described on Schedule 5.9,(i) each of the material Copyrights, Trademarks and Patents is valid and enforceable, (ii) no material part of the Intellectual Property has been judged invalid or unenforceable, in whole or in
part, and (iii) no claim has been made to Borrower that any material part of the Intellectual Property violates the rights of any third party. Exhibit D is a true, correct and complete list of each of Borrower’s Patents, registered
Trademarks, registered Copyrights, and material agreements under which Borrower licenses Intellectual Property from third parties (other than shrink-wrap software licenses), together with application or registration numbers, as applicable, owned by
Borrower or any Subsidiary, in each case as of the Closing Date. Borrower is not in material breach of, nor has Borrower failed to perform any material obligations under, any of the foregoing contracts, licenses or agreements and, to Borrower’s
knowledge, no third party to any such contract, license or agreement is in material breach thereof or has failed to perform any material obligations thereunder. 

5.10 Intellectual Property. Except as described on Schedule 5.10, Borrower has, or in the case of any proposed business, will have, all
material rights with respect to Intellectual Property necessary in the operation or conduct of Borrower’s business as currently conducted and proposed to be conducted by Borrower. Without limiting the generality of the foregoing, and in the
case of Licenses, except for restrictions that are unenforceable under Division 9 of the UCC, Borrower has the right, to the extent required to operate Borrower’s business, to freely transfer, license or assign Intellectual Property without
condition, restriction or payment of any kind (other than license payments in the ordinary course of business) to any third party, and Borrower owns or has the right to use, pursuant to valid licenses, all software development tools, library
functions, compilers and all other third-party software and other items that are used in the design, development, promotion, sale, license, manufacture, import, export, use or distribution of Borrower Products. Notwithstanding the foregoing, Lender
acknowledges that Borrower’s license agreement with Aerogen may not be assigned without the consent of Aerogen, and that such anti-assigment clause will not be deemed to violate the foregoing provisions of this Section 5.10. 

5.11 Intellectual Property Claims. Except as described on Schedule 5.11, no Intellectual Property owned by Borrower or any Borrower
Product has been or is subject to any actual or, to the knowledge of Borrower, threatened litigation, proceeding (including any proceeding in the United States Patent and Trademark Office or any corresponding foreign office or agency) or outstanding
decree, order, judgment, settlement agreement or stipulation that restricts in any manner Borrower’s use, transfer or licensing thereof or that would reasonably be expected to affect the validity, use or enforceability thereof. There is no
decree, order, judgment, agreement, stipulation, arbitral award or other provision entered into in connection with any litigation or proceeding that obligates Borrower to grant licenses or ownership interest in any future Intellectual Property
related to the operation or conduct of the business of Borrower or Borrower Products. Borrower has not received any written notice or claim, or, to the knowledge of Borrower, oral notice or claim, challenging or questioning Borrower’s ownership
in any Intellectual Property (or written notice of any claim challenging or questioning the ownership in any licensed Intellectual Property of the owner thereof) or suggesting that any third party has any claim of legal or beneficial ownership with
respect thereto nor, to Borrower’s knowledge, is there a reasonable basis for any such claim. Neither Borrower’s use of its Intellectual Property nor the production and sale of Borrower Products infringes the Intellectual Property or other
rights of others in any material respect. 
 5.12 Financial Accounts. Exhibit E, as may be updated by the Borrower in a written
notice provided to Lender after the Closing Date, is a true, correct and complete list of (a) all banks and other financial institutions at which Borrower or any Subsidiary maintains Deposit Accounts and (b) all institutions at which
Borrower or any Subsidiary maintains an account holding Investment Property, and such exhibit correctly identifies the name, address and telephone number of each bank or other institution, the name in which the account is held, a description of the
purpose of the account, and the complete account number therefor. 

  
 11 

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

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

	 	SECTION 6.	INSURANCE; INDEMNIFICATION 

 6.1 Coverage. Commencing within fifteen
(15) days of the Closing Date and thereafter so long as there are any Secured Obligations outstanding, Borrower shall cause to be carried and maintained commercial general liability insurance, on an occurrence form, against risks customarily
insured against in Borrower’s line of business. Such risks shall include the risks of bodily injury, including death, property damage, personal injury, and contractual liability per the terms of the indemnification agreement found in
Section 6.3. Borrower must maintain a minimum of $1,000,000 of commercial general liability insurance for each occurrence. Borrower has and agrees to maintain a minimum of $1,000,000 of directors’ and officers’ insurance for each
occurrence and $3,000,000 in the aggregate. Commencing within fifteen (15) days of the Closing Date and thereafter so long as there are any Secured Obligations outstanding, Borrower shall also cause to be carried and maintained insurance upon
the Collateral, insuring against all risks of physical loss or damage howsoever caused, in an amount not less than the full replacement cost of the Collateral, provided that such insurance may be subject to standard exceptions and deductibles. 

6.2 Certificates. Within fifteen (15) days of the Closing Date Borrower shall deliver to Lender certificates of insurance that
evidence Borrower’s compliance with its insurance obligations in Section 6.1 and the obligations contained in this Section 6.2. Borrower’s insurance certificate shall state Lender is an additional insured for commercial general
liability and a loss payee for all property insurance. Attached to the certificates of insurance will be additional insured endorsements for liability and lender’s loss payable endorsements for all property insurance. All certificates of
insurance will provide for a minimum of thirty (30) days advance written notice to Lender of cancellation or any other change adverse to Lender’s interests. Any failure of Lender to scrutinize such insurance certificates for compliance is
not a waiver of any of Lender’s rights, all of which are reserved. 
 6.3 Indemnity. Borrower agrees to indemnify and hold
Lender and its officers, directors, employees, agents, in-house attorneys, representatives and shareholders harmless from and against any and all claims, costs, expenses, damages and liabilities (including such claims, costs, expenses, damages and
liabilities based on liability in tort, including strict liability in tort), including reasonable attorneys’ fees and disbursements and other costs of investigation or defense (including those incurred upon any appeal), that may be instituted
or asserted against or incurred by Lender or any such Person as the result of credit having been extended, suspended or terminated under this Agreement and the other Loan Documents or the administration of such credit, or in connection with or
arising out of the transactions contemplated hereunder and thereunder, or any actions or failures to act in connection therewith, or arising out of the disposition or utilization of the Collateral, excluding in all cases claims resulting solely from
Lender’s gross negligence or willful misconduct. Borrower agrees to pay, and to save Lender harmless from, any and all liabilities with respect to, or resulting from any delay in paying, any and all excise, sales or other similar taxes
(excluding taxes imposed on or measured by the net income of Lender) that may be payable or determined to be payable with respect to any of the Collateral or this Agreement. 

  
 12 

	 	SECTION 7.	COVENANTS OF BORROWER 

 Borrower agrees as follows: 

7.1 Financial Reports. Borrower shall furnish to Lender the financial statements and reports listed hereinafter (the “Financial
Statements”): 
 (a) as soon as practicable (and in any event within 30 days) after the end of each month, unaudited interim and
year-to-date financial statements as of the end of such month (prepared on a consolidated and consolidating basis, if applicable), including balance sheet and related statements of income and cash flows accompanied by a report detailing any material
contingencies (including the commencement of any material litigation by or against Borrower) or any other occurrence that would reasonably be expected to have a Material Adverse Effect, all certified by Borrower’s Chief Executive Officer or
Chief Financial Officer to the effect that they have been prepared in accordance with GAAP, except (i) for the absence of footnotes, (ii) that they are subject to normal year-end adjustments, and (iii) they do not contain certain
non-cash items that are customarily included in quarterly and annual financial statements; 
 (b) as soon as practicable (and in any event
within 45 days) after the end of each calendar quarter, unaudited interim and year-to-date financial statements as of the end of such calendar quarter (prepared on a consolidated and consolidating basis, if applicable), including balance sheet and
related statements of income and cash flows accompanied by a report detailing any material contingencies (including the commencement of any material litigation by or against Borrower) or any other occurrence that would reasonably be expected to have
a Material Adverse Effect, certified by Borrower’s Chief Executive Officer or Chief Financial Officer to the effect that they have been prepared in accordance with GAAP, except (i) for the absence of footnotes, and (ii) that they are
subject to normal year-end adjustments; as well as the most recent capitalization table for Borrower, including the weighted average exercise price of employee stock options; 

(c) as soon as practicable (and in any event within one hundred eighty (180) days) after the end of each fiscal year, unqualified
audited financial statements as of the end of such year (prepared on a consolidated and consolidating basis, if applicable), including balance sheet and related statements of income and cash flows, and setting forth in comparative form the
corresponding figures for the preceding fiscal year, certified by a firm of independent certified public accountants selected by Borrower and reasonably acceptable to Lender, accompanied by any management report from such accountants; 

(d) as soon as practicable (and in any event within 30 days) after the end of each month, a Compliance Certificate in the form of Exhibit F;

 (e) promptly after the sending or filing thereof, as the case may be, copies of any proxy statements, financial statements or reports
that Borrower has made available to holders of its Preferred Stock and copies of any regular, periodic and special reports or registration statements that Borrower files with the Securities and Exchange Commission or any governmental authority that
may be substituted therefor, or any national securities exchange; 
 (f) at the same time and in the same manner as it gives to its
directors, copies of all notices, minutes, consents and other materials that Borrower provides to its directors in connection with meetings of the Board of Directors, and within 30 days after each such meeting, minutes of such meeting; and 

(g) financial and business projections promptly following their approval by Borrower’s Board of Directors, as well as budgets, operating
plans and other financial information reasonably requested by Lender. 
 Borrower shall not make any change in its (a) accounting
policies or reporting practices, or (b) fiscal years or fiscal quarters. The fiscal year of Borrower shall end on December 31. 

The executed Compliance Certificate may be sent via facsimile to Lender at (650) 473-9194 or via e-mail to jbourque@HTGC.com. All
Financial Statements required to be delivered pursuant to clauses (a), (b) and (c) shall be sent via e-mail to financialstatements@herculestech.com with a copy to jbourque@HTGC.com and BBang@HTGC.com provided, that if e-mail is not
available or sending such Financial Statements via e-mail is not possible, they shall be sent via facsimile to Lender at: (866) 468-8916, attention Chief Credit Officer. 

  
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 7.2 Management Rights. Borrower shall permit any representative that Lender authorizes,
including its attorneys and accountants, to inspect the Collateral and examine and make copies and abstracts of the books of account and records of Borrower at reasonable times and upon reasonable notice during normal business hours. In addition,
any such representative shall have the right to meet with management and officers of Borrower to discuss such books of account and records. In addition, Lender shall be entitled at reasonable times and intervals to consult with and advise the
management and officers of Borrower concerning significant business issues affecting Borrower. Such consultations shall not unreasonably interfere with Borrower’s business operations. The parties intend that the rights granted Lender shall
constitute “management rights” within the meaning of 29 C.F.R Section 2510.3-101(d)(3)(ii), but that any advice, recommendations or participation by Lender with respect to any business issues shall not be deemed to give Lender, nor be
deemed an exercise by Lender of, control over Borrower’s management or policies. 
 7.3 Further Assurances. Borrower shall from
time to time execute, deliver and file, alone or with Lender, any financing statements, security agreements, collateral assignments, notices, control agreements, or other documents to perfect or give the highest priority to Lender’s Lien on the
Collateral. Borrower shall from time to time procure any instruments or documents as may be requested by Lender, and take all further action that may be necessary or desirable, or that Lender may reasonably request, to perfect and protect the Liens
granted hereby and thereby. In addition, and for such purposes only, Borrower hereby authorizes Lender to execute and deliver on behalf of Borrower and to file such financing statements, collateral assignments, notices, control agreements, security
agreements and other documents without the signature of Borrower either in Lender’s name or in the name of Lender as agent and attorney-in-fact for Borrower. Borrower shall protect and defend Borrower’s title to the Collateral and
Lender’s Lien thereon against all Persons claiming any interest adverse to Borrower or Lender other than Permitted Liens. 
 7.4
Indebtedness. Borrower shall not create, incur, assume, guarantee or be or remain liable with respect to any Indebtedness, or permit any Subsidiary so to do, other than Permitted Indebtedness, or prepay any Indebtedness or take any actions
which impose on Borrower an obligation to prepay any Indebtedness, except for the conversion of Indebtedness into equity securities and the payment of cash in lieu of fractional shares in connection with such conversion. 

7.5 Collateral. Borrower shall at all times keep the Collateral, the Intellectual Property and all other property and assets used in
Borrower’s business or in which Borrower now or hereafter holds any interest free and clear from any legal process or Liens whatsoever (except for Permitted Liens), and shall give Lender prompt written notice of any legal process affecting the
Collateral, the Intellectual Property, such other property and assets, or any Liens thereon. Borrower shall cause its Subsidiaries to protect and defend such Subsidiary’s title to its assets from and against all Persons claiming any interest
adverse to such Subsidiary, and Borrower shall cause its Subsidiaries at all times to keep such Subsidiary’s property and assets free and clear from any legal process or Liens whatsoever (except for Permitted Liens), and shall give Lender
prompt written notice of any legal process affecting such Subsidiary’s assets. Borrower shall not agree with any Person other than Lender not to encumber its property. 

7.6 Investments. Borrower shall not directly or indirectly acquire or own, or make any Investment in or to any Person, or permit any of
its Subsidiaries so to do, other than Permitted Investments. 
 7.7 Distributions. Borrower shall not, and shall not allow any
Subsidiary to, (a) repurchase or redeem any class of stock or other equity interest other than pursuant to employee, director or consultant repurchase plans or other similar agreements, provided, however, in each case the repurchase or
redemption price does not exceed the original consideration paid for such stock or equity interest, or (b) declare or pay any cash dividend or make a cash distribution on any class of stock or other equity interest, except that a Subsidiary may
pay dividends or make distributions to Borrower, or (c) lend money to any employees, officers or directors or guarantee the payment of any such loans granted by a third party in excess of $100,000 in the aggregate or (d) waive, release or
forgive any indebtedness owed by any employees, officers or directors in excess of $100,000 in the aggregate. 
 7.8 Transfers.
Except for Permitted Transfers, Borrower shall not voluntarily or involuntarily transfer, sell, lease, license, lend or in any other manner convey any equitable, beneficial or legal interest in any material portion of their assets. 

  
 14 

 7.9 Mergers or Acquisitions. Borrower shall not merge or consolidate, or permit any of its
Subsidiaries to merge or consolidate, with or into any other business organization (other than mergers or consolidations of a Subsidiary into another Subsidiary or into Borrower), or acquire, or permit any of its Subsidiaries to acquire, all or
substantially all of the capital stock or property of another Person. 
 7.10 Taxes. Borrower and its Subsidiaries shall pay when due
all taxes, fees or other charges of any nature whatsoever (together with any related interest or penalties) now or hereafter imposed or assessed against Borrower, Lender or the Collateral or upon Borrower’s ownership, possession, use, operation
or disposition thereof or upon Borrower’s rents, receipts or earnings arising therefrom. Borrower shall file on or before the due date therefor all personal property tax returns in respect of the Collateral. Notwithstanding the foregoing,
Borrower may contest, in good faith and by appropriate proceedings, taxes for which Borrower maintains adequate reserves therefor in accordance with GAAP. 

7.11 Corporate Changes. Neither Borrower nor any Subsidiary shall change its corporate name, legal form or jurisdiction of formation
without twenty (20) days’ prior written notice to Lender. Neither Borrower nor any Subsidiary shall relocate its chief executive office or its principal place of business unless: (i) it has provided prior written notice to Lender; and
(ii) such relocation shall be within the continental United States. Neither Borrower nor any Subsidiary shall relocate any item of Collateral (other than (x) sales of Inventory in the ordinary course of business, (y) relocations of
Equipment having an aggregate value of up to $150,000 in any fiscal year, and (z) relocations of Collateral from a location described on Exhibit C to another location described on Exhibit C) unless (i) it has provided prompt written notice
to Lender, (ii) such relocation is within the continental United States and, (iii) if such relocation is to a third party bailee, it has delivered a bailee agreement in form and substance reasonably acceptable to Lender. 

7.12 Deposit Accounts. Neither Borrower nor any Subsidiary shall maintain any Deposit Accounts, or accounts holding Investment
Property, except with respect to which Lender has an Account Control Agreement. 
 7.13 Subsidiaries. Borrower shall notify Lender of
each Subsidiary formed subsequent to the Closing Date and, within 15 days of formation, shall cause any such Subsidiary organized under the laws of any State within the United States to execute and deliver to Lender a Joinder Agreement. 

7.14 SBA. Lender has received a license from the U.S. Small Business Administration (“SBA”) to extend loans as a small
business investment company (“SBIC”) pursuant to the Small Business Investment Act of 1958, as amended, and the associated regulations (collectively, the “SBIC Act”). Portions of the loan to Borrower will be made under the SBA
license and the SBIC Act. Addendum 1 to this Agreement outlines various responsibilities of Lender and Borrower associated with an SBA loan, and such Addendum 1 is hereby incorporated in this Agreement. 

7.15 Notices of Default. Borrower shall notify Lender promptly upon becoming aware of the occurrence of an Event of Default, which
notice shall specify the nature of such Event of Default and the steps, if any, the Borrower is taking to cure such Event of Default. 
  

	 	SECTION 8.	RIGHT TO INVEST; RIGHT TO CONVERT 

 8.1 Lender or its assignee or nominee shall
have the right, in its discretion, to participate in any one or more Subsequent Financings in an aggregate amount, for all such Subsequent Financings in which Borrower and/or its assignee(s) or nominee(s) participate, of up to One Million Dollars
($1,000,000), on the same terms, conditions and pricing afforded to others participating in any such Subsequent Financing. 
 8.2 During the
term of this Agreement, Lender shall have the right, in its discretion to convert in any Subsequent Financing after the Closing Date, an amount of up to One Million Dollars ($1,000,000) of the principal amount of the Term Loan Advances on the same
terms, conditions and pricing afforded to others participating in any such Subsequent Financing. 

  
 15 

	 	SECTION 9.	EVENTS OF DEFAULT 

 The occurrence of any one or more of the following events
shall be an Event of Default: 
 9.1 Payments. Borrower fails to pay any amount due under this Agreement, the Notes or any of the
other Loan Documents on the due date (or within three (3) calendar days of when due if such failure is due to an ACH Failure); or 

9.2 Covenants. Borrower breaches or defaults in the performance of any covenant or Secured Obligation under this Agreement or any of
the other Loan Documents, and (a) with respect to a default under any covenant under this Agreement (other than under Sections 6, 7.5, 7.6, 7.7, 7.8, 7.9 or 7.14) such default continues for more than ten (10) days after the earlier of the
date on which (i) Lender has given notice of such default to Borrower and (ii) Borrower has actual knowledge of such default or (b) with respect to a default under any of Sections 6, 7.5, 7.6, 7.7, 7.8, 7.9 or 7.14, the occurrence of
such default; or 
 9.3 Material Adverse Effect. There occurs an event or circumstance that had or would reasonably be expected to
have a Material Adverse Effect; or 
 9.4 Other Loan Documents. There occurs of any default under any Loan Document or any other
agreement between Borrower and Lender and such default continues for more than ten (10) days after the earlier of (a) Lender has given notice of such default to Borrower, or (b) Borrower has actual knowledge of such default; or 

9.5 Representations. Any representation or warranty made by Borrower in any Loan Document or in the Warrant shall have been false or
misleading in any material respect when made or deemed made; or 
 9.6 Insolvency. Borrower (A) (i) shall make an
assignment for the benefit of creditors; or (ii) shall be unable to pay its debts as they become due, or be unable to pay or perform under the Loan Documents, or shall become insolvent; or (iii) shall file a voluntary petition in
bankruptcy; or (iv) shall file any petition, answer, or document seeking for itself any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation
pertinent to such circumstances; or (v) shall seek or consent to or acquiesce in the appointment of any trustee, receiver, or liquidator of Borrower or of all or any substantial part (i.e., 33-1/3% or more) of the assets or property of
Borrower; or (vi) shall cease operations of its business as its business has normally been conducted, or terminate substantially all of its employees; or (vii) Borrower or its directors or majority shareholders shall take any action
initiating any of the foregoing actions described in clauses (i) through (vi); or (B) either (i) forty-five (45) days shall have expired after the commencement of an involuntary action against Borrower seeking reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation, without such action being dismissed or all orders or proceedings thereunder affecting the operations or the
business of Borrower being stayed; or (ii) a stay of any such order or proceedings shall thereafter be set aside and the action setting it aside shall not be timely appealed; or (iii) Borrower shall file any answer admitting or not
contesting the material allegations of a petition filed against Borrower in any such proceedings; or (iv) the court in which such proceedings are pending shall enter a decree or order granting the relief sought in any such proceedings; or
(v) thirty (30) days shall have expired after the appointment, without the consent or acquiescence of Borrower, of any trustee, receiver or liquidator of Borrower or of all or any substantial part of the properties of Borrower without such
appointment being vacated; or 
 9.7 Attachments; Judgments. Any portion of Borrower’s assets is attached or seized, or a levy
is filed against any such assets, or a judgment or judgments is/are entered for the payment of money, individually or in the aggregate, of at least $250,000 not covered by insurance, or Borrower is enjoined or in any way prevented by court order
from conducting any part of its business; or 
 9.8 Other Obligations. The occurrence of any default by Borrower under any agreement
or obligation of Borrower involving any Indebtedness in excess of $250,000, or the occurrence of any default under any agreement or obligation of Borrower that could reasonably be expected to have a Material Adverse Effect. 

  
 16 

	 	SECTION 10.	REMEDIES 

 10.1 General. Upon and during the continuance of any one or more
Events of Default, (i) Lender may, at its option, accelerate and demand payment of all or any part of the Secured Obligations together with a Prepayment Charge and declare them to be immediately due and payable (provided, that upon the
occurrence of an Event of Default of the type described in Section 9.6, all of the Secured Obligations shall automatically be accelerated and made due and payable, in each case without any further notice or act), and (ii) Lender may notify
any of Borrower’s account debtors to make payment directly to Lender, compromise the amount of any such account on Borrower’s behalf and endorse Lender’s name without recourse on any such payment for deposit directly to Lender’s
account. Lender may exercise all rights and remedies with respect to the Collateral under the Loan Documents or otherwise available to it under the UCC and other applicable law, including the right to release, hold, sell, lease, liquidate, collect,
realize upon, or otherwise dispose of all or any part of the Collateral and the right to occupy, utilize, process and commingle the Collateral. All Lender’s rights and remedies shall be cumulative and not exclusive. 

10.2 Collection; Foreclosure. Upon the occurrence and during the continuance of any Event of Default, Lender may, at any time or from
time to time, apply, collect, liquidate, sell in one or more sales, lease or otherwise dispose of, any or all of the Collateral, in its then condition or following any commercially reasonable preparation or processing, in such order as Lender may
elect. Any such sale may be made either at public or private sale at its place of business or elsewhere. Borrower agrees that any such public or private sale may occur upon ten (10) calendar days’ prior written notice to Borrower. Lender
may require Borrower to assemble the Collateral and make it available to Lender at a place designated by Lender that is reasonably convenient to Lender and Borrower. The proceeds of any sale, disposition or other realization upon all or any part of
the Collateral shall be applied by Lender in the following order of priorities: 
 First, to Lender in an amount sufficient
to pay in full Lender’s costs and professionals’ and advisors’ fees and expenses as described in Section 11.11; 

Second, to Lender in an amount equal to the then unpaid amount of the Secured Obligations (including principal, interest, and
the Default Rate interest), in such order and priority as Lender may choose in its sole discretion; and 
 Finally, after the
full, final, and indefeasible payment in Cash of all of the Secured Obligations, to any creditor holding a junior Lien on the Collateral, or to Borrower or its representatives or as a court of competent jurisdiction may direct. 

Lender shall be deemed to have acted reasonably in the custody, preservation and disposition of any of the Collateral if it complies with the
obligations of a secured party under the UCC. 
 10.3 No Waiver. Lender shall be under no obligation to marshal any of the Collateral
for the benefit of Borrower or any other Person, and Borrower expressly waives all rights, if any, to require Lender to marshal any Collateral. 

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

	 	SECTION 11.	MISCELLANEOUS 

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

11.2 Notice. Except as otherwise provided herein, any notice, demand, request, consent, approval, declaration, service of process or
other communication (including the delivery of Financial Statements) that is required, contemplated, or permitted under the Loan Documents or with respect to the subject matter hereof shall be in writing, and shall be deemed to have been validly
served, given, delivered, and received upon the earlier of: (i)

  
 17 

 
the day of transmission by facsimile or hand delivery or delivery by an overnight express service or overnight mail delivery service; or (ii) the third calendar day after deposit in the
United States mails, with proper first class postage prepaid, in each case addressed to the party to be notified as follows: 
  

			
	 If to Lender:
	  	HERCULES TECHNOLOGY III, L.P.
		  	Legal Department
		  	Attention: Chief Legal Officer and Ms. Janice Bourque
		  	400 Hamilton Avenue, Suite 310
		  	Palo Alto, California 94301
		  	Facsimile: 650-473-9194
		  	Telephone: 650-289-3060
		
	 If to Borrower:
	  	DANCE BIOPHARM, INC.
		  	Attention:                     
		  	2 Mint Plaza, Suite 804
		  	San Francisco, California 94103
		  	Facsimile:
		  	Telephone:

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

11.3 Entire Agreement; Amendments. This Agreement and the other Loan Documents constitute the entire agreement and understanding of the
parties hereto in respect of the subject matter hereof and thereof, and supersede and replace in their entirety any prior proposals, term sheets, non-disclosure or confidentiality agreements, letters, negotiations or other documents or agreements,
whether written or oral, with respect to the subject matter hereof or thereof (including Lender’s revised proposal letter dated July 15, 2013). None of the terms of this Agreement or any of the other Loan Documents may be amended except by
an instrument executed by each of the parties hereto. 
 11.4 No Strict Construction. The parties hereto have participated jointly in
the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise
favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement. 
 11.5 No Waiver. The powers
conferred upon Lender by this Agreement are solely to protect its rights hereunder and under the other Loan Documents and its interest in the Collateral and shall not impose any duty upon Lender to exercise any such powers. No omission or delay by
Lender at any time to enforce any right or remedy reserved to it, or to require performance of any of the terms, covenants or provisions hereof by Borrower at any time designated, shall be a waiver of any such right or remedy to which Lender is
entitled, nor shall it in any way affect the right of Lender to enforce such provisions thereafter. 
 11.6 Survival. All agreements,
representations and warranties contained in this Agreement and the other Loan Documents or in any document delivered pursuant hereto or thereto shall be for the benefit of Lender and shall survive the execution and delivery of this Agreement and the
expiration or other termination of this Agreement. 
 11.7 Successors and Assigns. The provisions of this Agreement and the other
Loan Documents shall inure to the benefit of and be binding on Borrower and its permitted assigns (if any). Borrower shall not assign its obligations under this Agreement or any of the other Loan Documents without Lender’s express prior written
consent, and any such attempted assignment shall be void and of no effect. Lender may assign, transfer, or endorse its rights hereunder and under the other Loan Documents without prior notice to Borrower, and all of such rights shall inure to the
benefit of Lender’s successors and assigns. 
 11.8 Governing Law. This Agreement and the other Loan Documents have been
negotiated and delivered to Lender in the State of California, and shall have been accepted by Lender in the State of California. Payment to Lender by Borrower of the Secured Obligations is due in the State of California. This Agreement and

  
 18 

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

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

(b) If the waiver of jury trial set forth in Section 11.10(a) is ineffective or unenforceable, the parties agree that all Claims shall
be resolved by reference to a private judge sitting without a jury, pursuant to Code of Civil Procedure Section 638, before a mutually acceptable referee or, if the parties cannot agree, a referee selected by the Presiding Judge of the Santa
Clara County, California. Such proceeding shall be conducted in Santa Clara County, California, with California rules of evidence and discovery applicable to such proceeding. 

(c) In the event Claims are to be resolved by judicial reference, either party may seek from a court identified in Section 11.9, any
prejudgment order, writ or other relief and have such prejudgment order, writ or other relief enforced to the fullest extent permitted by law notwithstanding that all Claims are otherwise subject to resolution by judicial reference. 

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

  
 19 

 11.12 Confidentiality. Lender acknowledges that certain items of Collateral and
information provided to Lender by Borrower are confidential and proprietary information of Borrower, if and to the extent such information either (x) is marked as confidential by Borrower at the time of disclosure, or (y) should reasonably
be understood to be confidential (the “Confidential Information”). Accordingly, Lender agrees that any Confidential Information it may obtain in the course of acquiring, administering, or perfecting Lender’s security interest
in the Collateral shall not be disclosed to any other person or entity in any manner whatsoever, in whole or in part, without the prior written consent of Borrower, except that Lender may disclose any such information: (a) to its own directors,
officers, employees, accountants, counsel and other professional advisors and to its affiliates if Lender in its sole discretion determines that any such party should have access to such information in connection with such party’s
responsibilities in connection with the Loan or this Agreement and, provided that such recipient of such Confidential Information either (i) agrees to be bound by the confidentiality provisions of this paragraph or (ii) is otherwise
subject to confidentiality restrictions that reasonably protect against the disclosure of Confidential Information; (b) if such information is generally available to the public; (c) if required or appropriate in any report, statement or
testimony submitted to any governmental authority having or claiming to have jurisdiction over Lender; (d) if required or appropriate in response to any summons or subpoena or in connection with any litigation, to the extent permitted or deemed
advisable by Lender’s counsel; (e) to comply with any legal requirement or law applicable to Lender; (f) to the extent reasonably necessary in connection with the exercise of any right or remedy under any Loan Document, including
Lender’s sale, lease, or other disposition of Collateral after default; (g) to any participant or assignee of Lender or any prospective participant or assignee; provided, that such participant or assignee or prospective participant or
assignee agrees in writing to be bound by this Section prior to disclosure; or (h) otherwise with the prior consent of Borrower; provided, that any disclosure made in violation of this Agreement shall not affect the obligations of Borrower or
any of its affiliates or any guarantor under this Agreement or the other Loan Documents. 
 11.13 Assignment of Rights. Borrower
acknowledges and understands that Lender may sell and assign all or part of its interest hereunder and under the Loan Documents to any person or entity (an “Assignee”); provided that no such assignment may be made to any
“distressed debt”, “debt to own” or “vulture” fund without the prior consent of Borrower, which consent shall not be required at any time an Event of Default has occurred and is continuing. After such assignment the
term “Lender” as used in the Loan Documents shall mean and include such Assignee, and such Assignee shall be vested with all rights, powers and remedies of Lender hereunder with respect to the interest so assigned; but with respect to any
such interest not so transferred, Lender shall retain all rights, powers and remedies hereby given. No such assignment by Lender shall relieve Borrower of any of its obligations hereunder. Lender agrees that in the event of any transfer by it of the
Note(s)(if any), it will endorse thereon a notation as to the portion of the principal of the Note(s), which shall have been paid at the time of such transfer and as to the date to which interest shall have been last paid thereon. 

11.14 Revival of Secured Obligations. This Agreement and the Loan Documents shall remain in full force and effect and continue to be
effective if any petition is filed by or against Borrower for liquidation or reorganization, if Borrower becomes insolvent or makes an assignment for the benefit of creditors, if a receiver or trustee is appointed for all or any significant part of
Borrower’s assets, or if any payment or transfer of Collateral is recovered from Lender. The Loan Documents and the Secured Obligations and Collateral security shall continue to be effective, or shall be revived or reinstated, as the case may
be, if at any time payment and performance of the Secured Obligations or any transfer of Collateral to Lender, or any part thereof is rescinded, avoided or avoidable, reduced in amount, or must otherwise be restored or returned by, or is recovered
from, Lender or by any obligee of the Secured Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or otherwise, all as though such payment, performance, or transfer of Collateral had not been made. In the
event that any payment, or any part thereof, is rescinded, reduced, avoided, avoidable, restored, returned, or recovered, the Loan Documents and the Secured Obligations shall be deemed, without any further action or documentation, to have been
revived and reinstated except to the extent of the full, final, and indefeasible payment to Lender in Cash. 
 11.15 Counterparts.
This Agreement and any amendments, waivers, consents or supplements hereto may be executed in any number of counterparts, and by different parties hereto in separate counterparts, each of which when so delivered shall be deemed an original, but all
of which counterparts shall constitute but one and the same instrument. 

  
 20 

 11.16 No Third Party Beneficiaries. No provisions of the Loan Documents are intended, nor
will be interpreted, to provide or create any third-party beneficiary rights or any other rights of any kind in any person other than Lender and Borrower unless specifically provided otherwise herein, and, except as otherwise so provided, all
provisions of the Loan Documents will be personal and solely between the Lender and the Borrower. 
 11.17 Publicity. Lender may use
Borrower’s name and logo, and include a brief description of the relationship between Borrower and Lender, in Lender’s marketing materials. 

(a) Borrower consents to the publication and use by Lender and any of its member businesses and affiliates of (i) Borrower’s name
(including a brief description of the relationship between Borrower and Lender) and logo and a hyperlink to Borrower’s web site, separately or together, in written and oral presentations, advertising, promotional and marketing materials, client
lists, public relations materials or on its web site (together, the “Lender Publicity Materials”); (ii) the names of officers of Borrower in the Lender Publicity Materials; and (iii) Borrower’s name, trademarks or
servicemarks in any news release concerning Lender. 
 (b) Neither Borrower nor any of its member businesses and affiliates shall, without
Lender’s consent, publicize or use (i) Lender’s name (including a brief description of the relationship between Borrower and Lender), logo or hyperlink to Lender’s web site, separately or together, in written and oral
presentations, advertising, promotional and marketing materials, client lists, public relations materials or on its web site (together, the “Borrower Publicity Materials”); (ii) the names of officers of Lender in the Borrower
Publicity Materials; and (iii) Lender’s name, trademarks, servicemarks in any news release concerning Borrower. 
 (SIGNATURES TO
FOLLOW) 

  
 21 

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

			
	BORROWER:
	DANCE BIOPHARM, INC.
		
	Signature:	 	 /s/ John Patton

	Print Name:	 	John Patton
	Title:	 	CEO and Chairman

 Accepted in Palo Alto, California: 

 

					
	LENDER:
	 HERCULES TECHNOLOGY III, L.P.,
 a
Delaware limited partnership

		
	By:	 	Hercules Technology SBIC
		 	Management, LLC,
		 	its General Partner
		
	By:	 	Hercules Technology Growth Capital, Inc.,
		 	its Manager
			
		 	By:	 	 /s/ Ben Bang

		 	Name:	 	Ben Bang
		 	Its:	 	Senior Counsel

 [Signature page to Loan and Security Agreement – Dance BioPharma] 

 Table of Exhibits and Schedules 
  

			
	Addendum 1:	  	SBA Provisions
	Exhibit A:	  	Advance Request
		  	Attachment to Advance Request
	Exhibit B-1:	  	Term Note
	Exhibit C:	  	Name, Locations, and Other Information for Borrower
	Exhibit D:	  	Borrower’s Patents, Trademarks, Copyrights and Licenses
	Exhibit E:	  	Borrower’s Deposit Accounts and Investment Accounts
	Exhibit F:	  	Compliance Certificate
	Exhibit G:	  	Joinder Agreement
	Exhibit H:	  	ACH Debit Authorization Agreement
	Schedule 1	  	Subsidiaries
	Schedule 1A	  	Existing Permitted Indebtedness
	Schedule 1B	  	Existing Permitted Investments
	Schedule 1C	  	Existing Permitted Liens
	Schedule 5.3	  	Consents, Etc.
	Schedule 5.5	  	Actions Before Governmental Authorities
	Schedule 5.8	  	Tax Matters
	Schedule 5.9	  	Intellectual Property Claims
	Schedule 5.10	  	Intellectual Property
	Schedule 5.11	  	Borrower Products
	Schedule 5.14	  	Capitalization

 [Signature page to Loan and Security Agreement – Dance BioPharma] 

 ADDENDUM 1 TO LOAN AND SECURITY AGREEMENT 

(c) Borrower’s Business. For purposes of this Addendum 1, Borrower shall be deemed to include its “affiliates” as
defined in Title 13 Code of Federal Regulations Section 121.103. Borrower represents and warrants to Lender as of the Closing Date and covenants to Lender for a period of one year after the Closing Date with respect to subsections 2, 3, 4, 5, 6
and 7 below, as follows: 
 1. Size Status. Borrower does not have tangible net worth in excess of $18 million or average net income
after Federal income taxes (excluding any carry-over losses) for the preceding two completed fiscal years in excess of $6 million; 
 2.
No Relender. Borrower’s primary business activity does not involve, directly or indirectly, providing funds to others, purchasing debt obligations, factoring, or long-term leasing of equipment with no provision for maintenance or repair;

 3. No Passive Business. Borrower is engaged in a regular and continuous business operation (excluding the mere receipt of payments
such as dividends, rents, lease payments, or royalties). Borrower’s employees are carrying on the majority of day to day operations. Borrower will not pass through substantially all of the proceeds of the Loan to another entity; 

4. No Real Estate Business. Borrower is not classified under Major Group 65 (Real Estate) or Industry No. 1531 (Operative
Builders) of the SIC Manual. The proceeds of the Loan will not be used to acquire or refinance real property unless Borrower (x) is acquiring an existing property and will use at least 51 percent of the usable square footage for its business
purposes; (y) is building or renovating a building and will use at least 67 percent of the usable square footage for its business purposes; or (z) occupies the subject property and uses at least 67 percent of the usable square footage for
its business purposes. 
 5. No Project Finance. Borrower’s assets are not intended to be reduced or consumed, generally without
replacement, as the life of its business progresses, and the nature of Borrower’s business does not require that a stream of cash payments be made to the business’s financing sources, on a basis associated with the continuing sale of
assets (e.g., real estate development projects and oil and gas wells). The primary purpose of the Loan is not to fund production of a single item or defined limited number of items, generally over a defined production period, where such production
will constitute the majority of the activities of Borrower (e.g., motion pictures and electric generating plants). 
 6. No Farm Land
Purchases. Borrower will not use the proceeds of the Loan to acquire farm land which is or is intended to be used for agricultural or forestry purposes, such as the production of food, fiber, or wood, or is so taxed or zoned. 

7. No Foreign Investment. The proceeds of the Loan will not be used substantially for a foreign operation. At the time of the Loan,
Borrower will not have more than 49 percent of its employees or tangible assets located outside the United States. The representation in this subsection (7) is made only as of the date hereof and shall not continue for one year as contemplated
in the first sentence of this Section 1. 
 (d) Small Business Administration Documentation. Lender acknowledges that Borrower
completed, executed and delivered to Lender SBA Forms 480, 652 and 1031 (Parts A and B) together with a business plan showing Borrower’s financial projections (including balance sheets and income and cash flows statements) for the period
described therein and a written statement (whether included in the purchase agreement or pursuant to a separate statement) from Lender regarding its intended use of proceeds from the sale of securities to Lender (the “Use of Proceeds
Statement”). Borrower represents and warrants to Lender that the information regarding Borrower and its affiliates set forth in the SBA Form 480, Form 652 and Form 1031 and the Use of Proceeds Statement delivered as of the Closing Date is
accurate and complete. 

  
 Addendum 1 to Loan and
Security Agreement - 1 

 (e) Inspection. The following covenants contained in this Section (c) are intended
to supplement and not to restrict the related provisions of the Loan Documents. Subject to the preceding sentence, Borrower will permit, for so long as Lender holds any debt or equity securities of Borrower, Lender or its representative, at
Lender’ expense, and examiners of the SBA to visit and inspect the properties and assets of Borrower, to examine its books of account and records, and to discuss Borrower’s affairs, finances and accounts with Borrower’s officers,
senior management and accountants, all at such reasonable times as may be requested by Lender or the SBA. 
 (f) Annual Assessment.
Promptly after the end of each calendar year (but in any event prior to February 28 of each year) and at such other times as may be reasonably requested by Lender, Borrower will deliver to Lender a written assessment of the economic impact of
Lender’ investment in Borrower, specifying the full-time equivalent jobs created or retained in connection with the investment, the impact of the investment on the businesses of Borrower in terms of expanded revenue and taxes, other economic
benefits resulting from the investment (such as technology development or commercialization, minority business development, or expansion of exports) and such other information as may be required regarding Borrower in connection with the filing of
Lender’s SBA Form 468. Lender will assist Borrower with preparing such assessment. In addition to any other rights granted hereunder, Borrower will grant Lender and the SBA access to Borrower’s books and records for the purpose of
verifying the use of such proceeds. Borrower also will furnish or cause to be furnished to Lender such other information regarding the business, affairs and condition of Borrower as Lender may from time to time reasonably request. 

(g) Use of Proceeds. Borrower will use the proceeds from the Loan only for purposes set forth in Section 7.16. Borrower will
deliver to Lender from time to time promptly following Lender’s request, a written report, certified as correct by Borrower’s Chief Financial Officer, verifying the purposes and amounts for which proceeds from the Loan have been disbursed.
Borrower will supply to Lender such additional information and documents as Lender reasonably requests with respect to its use of proceeds and will permit Lender and the SBA to have access to any and all Borrower records and information and
personnel as Lender deems necessary to verify how such proceeds have been or are being used, and to assure that the proceeds have been used for the purposes specified in Section 7.16. 

(h) Activities and Proceeds. Neither Borrower nor any of its affiliates (if any) will engage in any activities or use directly or
indirectly the proceeds from the Loan for any purpose for which a small business investment company is prohibited from providing funds by the SBIC Act, including 13 C.F.R. §107.720. Without obtaining the prior written approval of Lender,
Borrower will not change within 1 year of the date hereof, Borrower’s current business activity to a business activity which a licensee under the SBIC Act is prohibited from providing funds by the SBIC Act. 

(i) Redemption Provisions. Notwithstanding any provision to the contrary contained in the Certificate of Incorporation of Borrower, as
amended from time to time (the “Charter”), if, pursuant to the redemption provisions contained in the Charter, Lender is entitled to a redemption of its Warrant, such redemption (in the case of Lender) will be at a price equal to the
redemption price set forth in the Charter (the “Existing Redemption Price”). If, however, Lender delivers written notice to Borrower that the then current regulations promulgated under the SBIC Act prohibit payment of the Existing
Redemption Price in the case of an SBIC (or, if applied, the Existing Redemption Price would cause the Series C Preferred Stock to lose its classification as an “equity security” and Lender has determined that such classification is
unadvisable), the amount Lender will be entitled to receive shall be the greater of (i) fair market value of the securities being redeemed taking into account the rights and preferences of such securities plus any costs and expenses of the
Lender incurred in making or maintaining the Warrant, and (ii) the Existing Redemption Price where the amount of accrued but unpaid dividends payable to the Lender is limited to Borrower’s earnings plus any costs and expenses of the Lender
incurred in making or maintaining the Warrant; provided, however, the amount calculated in subsections (i) or (ii) above shall not exceed the Existing Redemption Price. 

(j) Compliance and Resolution. Borrower agrees that a failure to comply with Borrower’s obligations under this Addendum, or any
other set of facts or circumstances where it has been asserted by any governmental regulatory agency (or Lender believes that there is a substantial risk of such assertion) that Lender and its affiliates are not entitled to hold, or exercise any
significant right with respect to, any securities issued to Lender 

  
 Addendum 1 to Loan and
Security Agreement - 2 

 
by Borrower, will constitute a breach of the obligations of Borrower under the financing agreements between Borrower and Lender. In the event of (i) a failure to comply with Borrower’s
obligations under this Addendum; or (ii) an assertion by any governmental regulatory agency (or Lender believes that there is a substantial risk of such assertion) of a failure to comply with Borrower’s obligations under this Addendum,
then (i) Lender and Borrower will meet and resolve any such issue in good faith to the satisfaction of Borrower, Lender, and any governmental regulatory agency, and (ii) upon request of Lender, Borrower will cooperate and assist with any
assignment of the financing agreements from Hercules Technology III, L.P. to Hercules Technology Growth Capital, Inc. 

  
 Addendum 1 to Loan
and Security Agreement - 3 

 EXHIBIT A 

ADVANCE REQUEST 
  

					
	To:	 	Lender:	  	Date:                     , 2013
		 	Hercules Technology III, L.P.	  	
		 	400 Hamilton Avenue, Suite 310	  	
		 	Palo Alto, CA 94301	  	
		 	Facsimile: 650-473-9194	  	
		 	Attn:	  	

 Dance Biopharm, Inc. (“Borrower”) hereby requests from Hercules Technology III, L.P.
(“Lender”) an Advance in the amount of
                                         Dollars
($        ) on                     ,      (the “Advance Date”) pursuant to the
Loan and Security Agreement between Borrower and Lender (the “Agreement”). Capitalized words and other terms used but not otherwise defined herein are used with the same meanings as defined in the Agreement. 

 

							
	Please:	  		 		  	
	(a)	  	Issue a check payable to Borrower	 	  
	  	
				
	or	  		 		  	
				
	(b)	  	Wire Funds to Borrower’s account	 	  
	  	

  

					
	Bank:	 	  
	  	
	Address:	 	  
	  	
		 	  
	  	
			
	ABA Number:	 	  
	  	
	Account Number:	 	  
	  	
	Account Name:	 	  
	  	

 Borrower represents that the conditions precedent to the Advance set forth in the Agreement are satisfied and
shall be satisfied upon the making of such Advance, including but not limited to: (i) that no event that has had or could reasonably be expected to have a Material Adverse Effect has occurred and is continuing; (ii) that the
representations and warranties set forth in the Agreement and in the Warrant are and shall be true and correct in all material respects on and as of the Advance Date with the same effect as though made on and as of such date, except to the extent
such representations and warranties expressly relate to an earlier date; (iii) that Borrower is in compliance with all the terms and provisions set forth in each Loan Document on its part to be observed or performed; and (iv) that as of
the Advance Date, no fact or condition exists that would (or would, with the passage of time, the giving of notice, or both) constitute an Event of Default under the Loan Documents. Borrower understands and acknowledges that Lender has the right to
review the financial information supporting this representation and, based upon such review in its sole discretion, Lender may decline to fund the requested Advance. 

Borrower hereby represents that Borrower’s corporate status and locations have not changed since the date of the Agreement or, if the
Attachment to this Advance Request is completed, are as set forth in the Attachment to this Advance Request. 
 Borrower agrees to notify
Lender promptly before the funding of the Loan if any of the matters which have been represented above shall not be true and correct on the Borrowing Date and if Lender has received no such notice before the Advance Date then the statements set
forth above shall be deemed to have been made and shall be deemed to be true and correct as of the Advance Date. 
 (SIGNATURE PAGE FOLLOWS)

  
 A - 1 

 Executed as of
[                    ], 20    . 
  

			
	BORROWER: DANCE BIOPHARM, INC.
		
	SIGNATURE:	 	  

	TITLE:	 	  

	PRINT NAME:	 	  

  
 A - 2 

 ATTACHMENT TO ADVANCE REQUEST 

Dated:                      

Borrower hereby represents and warrants to Lender that Borrower’s current name and organizational status is as follows: 

 

			
	Name:	  	DANCE BIOPHARM, INC.
	Type of organization:	  	Corporation
		
	State of organization:	  	[                                      
  ]
		
	Organization file number:	  	[                                      
  ]

 Borrower hereby represents and warrants to Lender that the street addresses, cities, states and postal codes
of its current locations are as follows: 

  
 A - 3 

 EXHIBIT B-1 

PROMISSORY NOTE 
  

					
	$[    ],000,000	 		  	Advance Date:                  , 20    
			
		 		  	Maturity Date:                  , 20    

 FOR VALUE RECEIVED, DANCE BIOPHARM, INC., a
                     corporation, for itself and each of its Subsidiaries (the “Borrower”) hereby promises to pay to the order of Hercules
Technology III, L.P., a Delaware limited partnership, or the holder of this Note (the “Lender”) at 400 Hamilton Avenue, Suite 310, Palo Alto, CA 94301 or such other place of payment as the holder of this Secured Term Promissory Note (this
“Promissory Note”) may specify from time to time in writing, in lawful money of the United States of America, the principal amount of [            ] Million Dollars
($[    ],000,000) or such other principal amount as Lender has advanced to Borrower, together with interest at, a floating per annum rate equal to the greater of either (i) ten and sixty-five one-hundredths percent (10.65%),
or (ii) the sum of (A) ten and sixty-five one-hundredths percent (10.65%), plus (B) the Prime Rate minus three and one-quarter percent (3.25%) based upon a year consisting of 360 days, with interest computed daily based on the actual
number of days in each month. 
 This Promissory Note is the Note referred to in, and is executed and delivered in connection with, that
certain Loan and Security Agreement dated September [    ], 2013, by and between Borrower and Lender (as the same may from time to time be amended, modified or supplemented in accordance with its terms, the “Loan
Agreement”), and is entitled to the benefit and security of the Loan Agreement and the other Loan Documents (as defined in the Loan Agreement), to which reference is made for a statement of all of the terms and conditions thereof. All payments
shall be made in accordance with the Loan Agreement. All terms defined in the Loan Agreement shall have the same definitions when used herein, unless otherwise defined herein. An Event of Default under the Loan Agreement shall constitute a default
under this Promissory Note. 
 Borrower waives presentment and demand for payment, notice of dishonor, protest and notice of protest under
the UCC or any applicable law. Borrower agrees to make all payments under this Promissory Note without setoff, recoupment or deduction and regardless of any counterclaim or defense. This Promissory Note has been negotiated and delivered to Lender
and is payable in the State of California. This Promissory Note shall be governed by and construed and enforced in accordance with, the laws of the State of California, excluding any conflicts of law rules or principles that would cause the
application of the laws of any other jurisdiction. 
  

					
	 BORROWER FOR ITSELF AND
 ON BEHALF OF ITS
SUBSIDIARIES:
	 		 	DANCE BIOPHARM, INC.
		 		 	By:
		 		 	Title:

  
 B-1 - 1 

 EXHIBIT C 

NAME, LOCATIONS, AND OTHER INFORMATION FOR BORROWER 

1. Borrower represents and warrants to Lender that Borrower’s current name and organizational status as of the Closing Date is as
follows: 
  

			
	Name:	  	DANCE BIOPHARM, INC.
		
	Type of organization:	  	Corporation
		
	State of organization:	  	[                                      
  ]
		
	Organization file number:	  	[                                      
  ]

 2. Borrower represents and warrants to Lender that for five (5) years prior to the Closing Date, Borrower
did not do business under any other name or organization or form except the following: 
 Name: 

Used during dates of: 
 Type of
Organization: 
 State of organization: 

Organization file Number: 

Borrower’s fiscal year ends on              

Borrower’s federal employer tax identification number is:
                     
 3. Borrower
represents and warrants to Lender that its chief executive office is located at                     . 

  
 C - 1 

 EXHIBIT D 

BORROWER’S PATENTS, TRADEMARKS, COPYRIGHTS AND LICENSES 

  
 D - 1 

 EXHIBIT E 

BORROWER’S DEPOSIT ACCOUNTS AND INVESTMENT ACCOUNTS 

  
 E - 1 

 EXHIBIT F 

COMPLIANCE CERTIFICATE 
 Hercules
Technology III, L.P. 
 400 Hamilton Avenue, Suite 310 
 Palo
Alto, CA 94301 
 Reference is made to that certain Loan and Security Agreement dated September [    ], 2013 and all
ancillary documents entered into in connection with such Loan and Security Agreement all as may be amended from time to time, (hereinafter referred to collectively as the “Loan Agreement”) between Hercules Technology III, L.P., a Delaware
limited partnership (“Hercules”), as Lender and Dance Biopharm, Inc. (the “Borrower”) as Borrower. All capitalized terms not defined herein shall have the same meaning as defined in the Loan Agreement. 

The undersigned is an Officer of the Borrower, knowledgeable of all Borrower financial matters, and is authorized to provide certification of
information regarding the Borrower; hereby certifies that in accordance with the terms and conditions of the Loan Agreement, the Borrower is in compliance for the period ending
                     of all covenants, conditions and terms and hereby reaffirms that all representations and warranties contained therein are true
and correct on and as of the date of this Compliance Certificate with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, after giving effect in all
cases to any standard(s) of materiality contained in the Loan Agreement as to such representations and warranties. Attached are the required documents supporting the above certification. The undersigned further certifies that these are prepared in
accordance with GAAP (except for the absence of footnotes with respect to unaudited financial statement and subject to normal year-end adjustments) and are consistent from one period to the next except as explained below. 

 

					
	REPORTING REQUIREMENT	  	REQUIRED	  	CHECK IF ATTACHED
			
	Interim Financial Statements	  	Monthly within 30 days	  	______
			
	Interim Financial Statements	  	Quarterly within 30 days	  	______
			
	Audited Financial Statements	  	FYE within 180 days	  	______

  

			
	Very Truly Yours,
	
	DANCE BIOPHARM, INC.
		
	By:	 	  

	Name:	 	  

	Its:	 	  

  
 F - 1 

 EXHIBIT G 

FORM OF JOINDER AGREEMENT 

This Joinder Agreement (the “Joinder Agreement”) is made and dated as of
[                    ], 20[    ], and is entered into by and between
                                        , a
                     corporation (“Subsidiary”), and Hercules Technology III, L.P., a Delaware limited partnership, as a Lender. 

RECITALS 
 A.
Subsidiary’s Affiliate, DANCE BIOPHARM, INC. (“Borrower”) [has entered/desires to enter] into that certain Loan and Security Agreement dated September [    ], 2013, with Lender, as such agreement may be amended
(the “Loan Agreement”), together with the other agreements executed and delivered in connection therewith; 
 B. Subsidiary
acknowledges and agrees that it will benefit both directly and indirectly from Borrower’s execution of the Loan Agreement and the other agreements executed and delivered in connection therewith; 

AGREEMENT 
 NOW THEREFORE,
Subsidiary and Lender agree as follows: 
 1. The recitals set forth above are incorporated into and made part of this Joinder Agreement.
Capitalized terms not defined herein shall have the meaning provided in the Loan Agreement. 
 2. By signing this Joinder Agreement,
Subsidiary shall be bound by the terms and conditions of the Loan Agreement the same as if it were the Borrower (as defined in the Loan Agreement) under the Loan Agreement, mutatis mutandis, provided however, that Lender shall have no duties,
responsibilities or obligations to Subsidiary arising under or related to the Loan Agreement or the other agreements executed and delivered in connection therewith. Rather, to the extent that Lender has any duties, responsibilities or obligations
arising under or related to the Loan Agreement or the other agreements executed and delivered in connection therewith, those duties, responsibilities or obligations shall flow only to Borrower and not to Subsidiary or any other person or entity. By
way of example (and not an exclusive list): (a) Lender’s providing notice to Borrower in accordance with the Loan Agreement or as otherwise agreed between Borrower and Lender shall be deemed provided to Subsidiary; (b) a Lender’s
providing an Advance to Borrower shall be deemed an Advance to Subsidiary; and (c) Subsidiary shall have no right to request an Advance or make any other demand on Lender. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 G - 1 

 [SIGNATURE PAGE TO JOINDER AGREEMENT] 

 

			
	SUBSIDIARY:
	                                    
    .
		
		 	By:
		 	Name:
		 	Title:
		 	Address:
		
		 	Telephone:                     
		 	Facsimile:                     

  

													
	HERCULES TECHNOLOGY III, L.P.,	  	
		 		  	a Delaware limited partnership	  	
					
		 		  	By:	  	 Hercules Technology SBIC Management, LLC,

its General Partner
	  	
						
		 		  		  	By:	  	Hercules Technology Growth Capital, Inc.,	  	
		 		  		  		  	its Manager	  	
							
		 		  		  		  	By:	  	  
	  	
		 		  		  		  	Name:	  	  
	  	
		 		  		  		  	Its:	  	  
	  	
			
		 	Address:	  	
		 	400 Hamilton Ave., Suite 310	  	
		 	Palo Alto, CA 94301	  	
		 	Facsimile: 650-473-9194	  	
		 	Telephone: 650-289-3060	  	

  
 G - 2 

 EXHIBIT H 

ACH DEBIT AUTHORIZATION AGREEMENT 

Hercules Technology III, L.P. 
 400 Hamilton Avenue, Suite 310

 Palo Alto, CA 94301 
 Re: Loan and Security Agreement dated
September [    ], 2013 between Dance Biopharm, Inc. (“Borrower”) and Hercules Technology III, L.P. (“Lender”) (the “Agreement”) 

In connection with the above referenced Agreement, the Borrower hereby authorizes the Lender to initiate debit entries for the periodic payments due under the
Agreement to the Borrower’s account indicated below. The Borrower authorizes the depository institution named below to debit to such account. 
  

			
	DEPOSITORY NAME	  	BRANCH
		
	CITY	  	STATE AND ZIP CODE
		
	TRANSIT/ABA NUMBER	  	ACCOUNT NUMBER

 This authority will remain in full force and effect so long as any amounts are due under the Agreement. 

 

			
	  

	(Borrower)(Please Print)
	By:	 	  

	Date:	 	  

  
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