Document:

Amendment and Waiver to the Term Loan Credit Agreement dated November 3, 2005.

 Exhibit 10.44 
  
 AMENDMENT AND WAIVER 
  
 This AMENDMENT AND WAIVER (this “Amendment”) dated as of November 3, 2005 (the “Closing Date”) with respect to the
Term Loan Agreement referenced below is entered into among NAVIGANT INTERNATIONAL, INC., a Delaware corporation (the “Borrower”), the Guarantors (as defined in the Term Loan Agreement referenced below), the financial institutions
from time to time party to the Term Loan Agreement referenced below as Lenders (the “Lenders”) and Bank of America, N.A., as Administrative Agent for the Lenders (in such capacity, the “Administrative Agent”).

  
 WITNESSETH 
  
 WHEREAS, pursuant to the Term Loan Credit Agreement (as amended, modified and
supplemented from time to time, the “Term Loan Agreement”) dated as of August 29, 2005 among the Borrower, the Guarantors, the Lenders and the Administrative Agent, the Lenders agreed to make extensions of credit to the
Borrower. 
  
 WHEREAS, the Borrower has requested that the Lenders
(a) waive certain cross-Events of Default from the Borrower’s failure to deliver the financial statements and related reports required to be delivered on or before October 28, 2005 pursuant to that certain Consent dated as of
September 30, 2005 between the Borrower, the Guarantors, the Lenders identified therein and the Administrative Agent (the “Existing Events of Default”) and (b) modify the Term Loan Agreement in certain respects.

  
 WHEREAS, the Required Lenders have agreed to do so, but only
pursuant to the terms and conditions set forth herein. 
  
 NOW,
THEREFORE, IN CONSIDERATION of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 1. Defined Terms. Capitalized terms used herein and not otherwise defined herein shall have the meanings given to
such terms in the Term Loan Agreement. 
  
 2. Limited
Waiver. The Required Lenders hereby waive the Existing Events of Default, provided that the foregoing limited waiver shall not be deemed to modify or affect the obligations of the Borrower and the Guarantors to comply with each and every other
obligation under the Term Loan Agreement and the other Loan Documents from and after the date hereof. 
  
 3. Amendments. The Term Loan Agreement is amended in the following respects: 
  
 3.1 Section 1.01 of the Term Loan Agreement is amended by restating the first full paragraph thereof as follows:

  
 Capitalized terms used in this Agreement
(including in the Incorporated Representations and the Incorporated Covenants) but not otherwise defined in this Agreement shall have the meanings assigned to such terms in the Revolver Credit Agreement as in effect on the Closing Date after giving
effect to the Amendment, Waiver and Consent dated as of the Closing Date with respect to the Revolver Credit Agreement, the Second Amendment dated as of the Closing Date with respect to the Revolver Credit Agreement and the Third Amendment and
Waiver dated as of November 3, 2005 with respect to the Revolver Credit Agreement (the “Incorporated Terms”). In 

 
the event (i) of any amendment, modification, supplement or waiver after the Closing Date of any of the defined terms in the Revolver Credit Agreement,
such amendment, modification, supplement or waiver shall be effective as to the Incorporated Terms only to the extent the Required Lenders consent to such amendment, modification, supplement or waiver in accordance with Section 11.01 or
(y) that the Revolver Credit Agreement is repaid, restated, refinanced or replaced after the date hereof, the Incorporated Terms shall be as in effect immediately prior to such repayment, restatement, refinancing or replacement. 
  
 3.2 The definition of “Applicable Rate” in Section 1.01 of the
Term Loan Agreement is amended and restated as follows: 
  
 “Applicable Rate” means (i) for Eurodollar Rate Loans, four percent (4.0%) per annum and (ii) for Base Rate Loans, three percent (3.0%) per annum. 
  
 3.3 Section 6.01 of the Term Loan Agreement is amended and restated in
its entirety to read as follows: 
  
 6.01
Incorporation of Representations and Covenants from Revolver Credit Agreement. 
  
 Each of the representations and warranties contained in Article VI of the Revolver Credit Agreement (the “Incorporated
Representations”) as in effect on the Closing Date after giving effect to the Amendment, Waiver and Consent dated as of the Closing Date with respect to the Revolver Credit Agreement, the Second Amendment dated as of the Closing Date with
respect to the Revolver Credit Agreement and the Third Amendment and Waiver dated as of November 3, 2005 with respect to the Revolver Credit Agreement (collectively the “Amendments”) and each of the covenants contained in
Articles VII (other than Section 7.11) and VIII of the Revolver Credit Agreement (the “Incorporated Covenants”) as in effect on the Closing Date after giving effect to the Amendments are incorporated herein by reference to the
same extent and with the same effect as if stated at length herein and shall inure to the benefit of the Administrative Agent and the Lenders. Each of the Loan Parties (a) represents and warrants to the Administrative Agent and each Lender that
each of the Incorporated Representations (other than the Waived Representations) is true and correct in all material respects on and as of the Closing Date and (b) covenants and agrees that, so long as any Lender shall have any Loan or any
other Obligation hereunder shall remain unpaid or unsatisfied, such Loan Party shall, and shall cause each Subsidiary to, perform and observe each of the Incorporated Covenants (for purposes of clarification, the Incorporated Covenants shall be
subject to the consents and waivers set forth in the Amendments). In the event (x) of any amendment, modification, supplement or waiver after November 3, 2005 of any of the representations and warranties contained in Article VI of the
Revolver Credit Agreement or any of the covenants contained in Article VII and VIII of the Revolver Credit Agreement, such amendment, modification, supplement or waiver shall be effective as to the Incorporated Representations or the Incorporated
Covenants only to the extent the Required Lenders consent to such amendment, modification, supplement or waiver in accordance with Section 11.01 or (y) that the Revolver Credit Agreement is repaid, restated, refinanced or replaced
after the date hereof, the Incorporated Representations and the Incorporated Covenants shall be as in effect immediately prior to such repayment, restatement, refinancing or replacement. 
  
 4. Amendment Fee. On the date hereof, the Borrower shall pay to the Administrative Agent for the ratable benefit of
the Lenders executing this Amendment an amendment fee in an amount equal to one-half of one percent (0.5%) of the outstanding Term Loans (the “Amendment Fee”). 
  

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 5. Conditions Precedent. This Amendment shall become effective upon satisfaction of each of the
following conditions: 
  
 (a) receipt by the
Administrative Agent of counterparts to this Amendment executed by the Borrower, the Guarantors, the Administrative Agent and the Required Lenders; 
  
 (b) receipt by the Administrative Agent (or any Affiliate, as applicable) of the Amendment Fee for the ratable benefit of the Lenders and
any other reasonable fees, costs and charges payable in connection with this Amendment; and 
  
 (c) receipt by the Administrative Agent of a fully executed and effective copy of that certain Third Amendment and Waiver dated as of the
Closing Date with respect to the Revolver Credit Agreement. 
  
 6.
Loan Document. This Amendment constitutes a “Loan Document” under the Term Loan Agreement. From and after the date hereof, all references to the Term Loan Agreement set forth in any other agreement or instrument shall, unless
otherwise specifically provided, be references to the Term Loan Agreement amended by this Amendment and as may be further amended, modified, restated or supplemented from time to time. This Amendment is limited as specified and shall not constitute
or be deemed to constitute an amendment, modification or waiver of any provision of the Term Loan Agreement except as expressly set forth herein. 
  
 7. Representations and Warranties. Each of the Borrowers and the Guarantors hereby represents and warrants that upon the effectiveness of this
Amendment the representations and warranties contained (or incorporated) in Section 6 of the Term Loan Agreement and in each other Loan Document, as such representations and warranties may be amended, modified, or waived in the Third Amendment
and Waiver dated as of November 3, 2005, are true and correct in all material respects on and as of the date hereof as though made on and as of such date (except those that expressly relate to an earlier period). 
  
 8. Reaffirmation of Guaranty. Each of the Guarantors
(a) acknowledges and consents to all of the terms and conditions of this Amendment, (b) affirms all of its obligations under the Loan Documents and (c) agrees that this Amendment and all documents executed in connection herewith do
not operate to reduce or discharge such Guarantor’s obligations under the Loan Documents. 
  
 9. Reaffirmation of Security Interests. Each of the Borrowers and the Guarantors (a) affirms that each of the Liens granted in or pursuant to the Loan Documents are valid and subsisting and (b) agrees
that this Amendment shall in no manner impair or otherwise adversely effect any of the Liens granted in or pursuant to the Loan Documents. 
  
 10. No Other Changes. Except as expressly modified hereby, all of the terms and provisions of the Term Loan Agreement and the Loan Documents shall
remain in full force and effect. Nothing contained in this Amendment (a) shall be construed to imply a willingness on the part of the Lenders to grant any similar or future amendment of any of the terms and conditions of the Term Loan
Agreement, and (b) shall in any way prejudice, impair or effect any rights or remedies of the Lenders under the Term Loan Agreement. 
  
 11. Counterparts. This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an
original and it shall not be necessary in making proof of this Amendment to produce or account for more than one such counterpart. 
  

 3 

 12. Fees and Expenses. Upon demand therefore, the Borrower agrees to reimburse the Administrative
Agent for all fees and expenses incurred by or otherwise payable to the Administrative Agent (including the reasonable fees and expenses of counsel to the Administrative Agent) incurred in connection with the negotiation, documentation and
preparation of this Amendment. 
  
 13. Release. In
consideration of the willingness of the Administrative Agent and the Lenders to enter into this Amendment, the Borrower and the Guarantors unconditionally release, waive and forever discharge all claims, offsets, causes of action, suits or defenses
of any kind whatsoever (if any), against the Administrative Agent, the Lenders and each of their respective directors, officers, employees or agents, with respect to any condition, act, omission or event arising in connection with the Term Loan
Agreement and this Amendment. 
  
 14. Governing Law. This
Amendment shall be deemed to be a contract made under, and for all purposes shall be construed in accordance with, the laws of the State of North Carolina. 
  
 15. Severability. To the extent any provision of this Amendment is prohibited by or invalid under the applicable law of any jurisdiction, such
provision shall be ineffective only to the extent of such prohibition or invalidity and only in such jurisdiction, without prohibiting or invalidating such provision in any other jurisdiction or the remaining provisions of this Amendment in any
jurisdiction. 
  
 16. Successors and Assigns. This
Amendment shall be binding upon, inure to the benefit of and be enforceable by the respective successors and assigns of the parties hereto. 
  
 17. Construction. The headings of the various sections and subsections of this Amendment have been inserted for convenience only and shall not in
any way affect the meaning or construction of any of the provisions hereof. 
  
 [Signature Pages Follow] 
  

 4 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their duly
authorized officers as of the date first above written. 
  

									
	 BORROWER:
	 	 	 	 NAVIGANT INTERNATIONAL, INC., a Delaware corporation

					
	 	 	 	 	 	 	By:	 	/s/    JOHN S. COFFMAN        
	 	 	 	 	 	 	 Name:
	 	John Coffman
	 	 	 	 	 	 	 Title:
	 	Senior Vice President and Chief Accounting Officer
	 	 	 	 	 	 	 	 	 
			
	 GUARANTORS:
	 	 	 	NAVIGANT INTERNATIONAL/NORTH CENTRAL, INC., an Illinois corporation
	 	 	 	 	 	 	 NAVIGANT INTERNATIONAL/SOUTHWEST, LLC,
 a
Delaware limited liability company
 CORNERSTONE ENTERPRISES, INC., a Massachusetts corporation
 ENVISION VACATIONS, INC., a Michigan corporation
 NAVIGANT INTERNATIONAL/SOUTHEAST, INC., a North Carolina
corporation
 NAVIGANT INTERNATIONAL/NORTHWEST, INC., a Washington corporation
 NAVIGANT INTERNATIONAL/NORTHEAST, INC., a Connecticut corporation
 NAVIGANT INTERNATIONAL U.K. HOLDINGS, INC., a Delaware
corporation
 NAVIGANT CRUISE CENTER, INC., a Delaware corporation
 NAVIGANT INTERNATIONAL/ROCKY MOUNTAIN, INC.,
 a Colorado corporation
 SCHEDULED AIRLINES TRAFFIC OFFICES, INC., a Delaware corporation
 PASSAGE INTERNATIONAL, INC., an Oregon
corporation
 INCENTIVE CONNECTIONS, INC., a New Jersey corporation

					
	 	 	 	 	 	 	By:	 	/s/    JOHN S. COFFMAN        
	 	 	 	 	 	 	 Name:
	 	John Coffman
	 	 	 	 	 	 	 Title:
	 	Vice President
				
	 	 	 	 	 	 	 NAVIGANT INTERNATIONAL/SOUTH CENTRAL, LP,

	 	 	 	 	 	 	 a Texas limited partnership

					
	 	 	 	 	 	 	 By:
	 	 ATLAS TRAVEL GP, INC., a Texas corporation

					
	 	 	 	 	 	 	By:	 	/s/    JOHN S. COFFMAN        
	 	 	 	 	 	 	 Name:
	 	John Coffman
	 	 	 	 	 	 	 Title:
	 	Vice President
				
	 	 	 	 	 	 	 NORTHWESTERN TRAVEL SERVICE, LP, a Minnesota limited partnership

					
	 	 	 	 	 	 	 By:
	 	 NWT Newco, Inc., an Illinois corporation, General Partner

					
	 	 	 	 	 	 	By:	 	/s/    JOHN S. COFFMAN        
	 	 	 	 	 	 	 Name:
	 	John Coffman
	 	 	 	 	 	 	 Title:
	 	Vice President

  
 [Signature Pages
Continue] 

									
	 ADMINISTRATIVE
	 	 	 	 BANK OF AMERICA, N.A.,

	 AGENT:
	 	 	 	 as Administrative Agent

					
	 	 	 	 	 	 	By:	 	/s/    MOLLIE S. CANUP        
	 	 	 	 	 	 	 Name:
	 	Mollie S. Canup
	 	 	 	 	 	 	 Title:
	 	Vice President
			
	 LENDER:
	 	 	 	 BANK OF AMERICA, N.A.,

	 	 	 	 	 as a Lender, L/C Issuer and Swing Line Lender

					
	 	 	 	 	 	 	By:	 	/s/    BRYAN A. SMITH        
	 	 	 	 	 	 	 Name:
	 	Bryan A. Smith
	 	 	 	 	 	 	 Title:
	 	Vice President
			
	 	 	 	 	 U.S. BANK NATIONAL ASSOCIATION

					
	 	 	 	 	 	 	By:	 	/s/    THOMAS
MCCARTHY        
	 	 	 	 	 	 	 Name:
	 	Thomas McCarthy
	 	 	 	 	 	 	 Title:
	 	Vice President
			
	 	 	 	 	 KEY BANK, N.A.

					
	 	 	 	 	 	 	By:	 	/s/    JEANETTE GANOUSIS        
	 	 	 	 	 	 	 Name:
	 	Jeannette Ganousis
	 	 	 	 	 	 	 Title:
	 	Senior Vice President
			
	 	 	 	 	 THE BANK OF NOVIA SCOTIA

					
	 	 	 	 	 	 	By:	 	/s/    JOHN QUICK        
	 	 	 	 	 	 	 Name:
	 	John Quick
	 	 	 	 	 	 	 Title:
	 	Managing Director
			
	 	 	 	 	 LASALLE BANK NATIONAL ASSOCIATION

					
	 	 	 	 	 	 	By:	 	/s/    NATE PALMER        
	 	 	 	 	 	 	 Name:
	 	Nate Palmer
	 	 	 	 	 	 	 Title:
	 	Vice President
			
	 	 	 	 	 WELLS FARGO BANK, NATIONAL ASSOCIATION

					
	 	 	 	 	 	 	By:	 	/s/    CATHERINE M.
JONES        
	 	 	 	 	 	 	 Name:
	 	Catherine M. Jones
	 	 	 	 	 	 	 Title:
	 	Vice President
			
	 	 	 	 	 JPMORGAN CHASE BANK, N.A. SUCCESSOR BY MERGER TO:

	 	 	 	 	 BANK ONE, NA, SUCCESSOR BY MERGER TO:

	 	 	 	 	 BANK ONE, COLORADO, N.A.

					
	 	 	 	 	 	 	By:	 	/s/    C. DIANNE WOOLEY        
	 	 	 	 	 	 	 Name:
	 	C. Diane Wooley
	 	 	 	 	 	 	 Title:
	 	Vice PresidentLoan and Security Agreement

 Exhibit 10.1 
  

  
 NEUROBIOLOGICAL TECHNOLOGIES, INC. 
  
 LOAN AND
SECURITY AGREEMENT 
  

 This LOAN AND SECURITY AGREEMENT is entered into as of August 18, 2005, by and between COMERICA BANK
(“Bank”) and NEUROBIOLOGICAL TECHNOLOGIES, INC. (“Borrower”). 
  
 RECITALS 
  
 Borrower
wishes to obtain credit from time to time from Bank, and Bank desires to extend credit to Borrower. This Agreement sets forth the terms on which Bank will advance credit to Borrower, and Borrower will repay the amounts owing to Bank. 
  
 AGREEMENT 
  
 The parties agree as follows: 
  

	 	1.	DEFINITIONS AND CONSTRUCTION. 

  
 1.1 Definitions. As used in this Agreement, the following terms shall have the following definitions: 
  
 “Accounts” means all presently existing and
hereafter arising accounts, contract rights, payment intangibles, and all other forms of obligations owing to Borrower arising out of the sale or lease of goods (including, without limitation, the licensing of software and other technology) or the
rendering of services by Borrower, whether or not earned by performance, and any and all credit insurance, guaranties, and other security therefor, as well as all merchandise returned to or reclaimed by Borrower and Borrower’s Books relating to
any of the foregoing. 
  
 “Advance” or
“Advances” means a cash advance or cash advances under the Revolving Line. 
  
 “Affiliate” means, with respect to any Person, any Person that owns or controls directly or indirectly such Person, any Person
that controls or is controlled by or is under common control with such Person, and each of such Person’s senior executive officers, directors, and partners. 
  
 “Bank Expenses” means all: reasonable costs or expenses (including reasonable attorneys’ fees
and expenses, whether generated in-house or by outside counsel) incurred in connection with the preparation, negotiation, administration, and enforcement of the Loan Documents; reasonable Collateral audit fees; and Bank’s reasonable
attorneys’ fees and expenses (whether generated in-house or by outside counsel) incurred in amending, enforcing or defending the Loan Documents (including fees and expenses of appeal), incurred before, during and after an Insolvency Proceeding,
whether or not suit is brought. 
  
 “Borrower State” means Delaware, the state under whose laws Borrower is organized. 
  
 “Borrower’s Books” means all of Borrower’s books and records including: ledgers; records concerning Borrower’s
assets or liabilities, the Collateral, business operations or financial condition; and all computer programs, or tape files, and the equipment, containing such information. 
  
 “Business Day” means any day that is not a Saturday, Sunday, or other day on which banks in the
State of California are authorized or required to close. 
  
 “Cash” means unrestricted cash, short and long term cash equivalents and available for sale securities held at Bank or at another financial institution and covered by an account control agreement in form and
substance acceptable to Bank 
  
 “Cash
Burn” means an amount equal to the prior month’s ending Cash minus the current month’s ending Cash that has been adjusted for any changes to Cash as a result of borrowings and repayments of 

  

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borrowings, proceeds from the sale of equity and the exercise of stock options or warrants, minority interest, financial debt, stock and/or paid-in-capital
and capital expenditures financed under a capital lease. 
  
 “Change in Control” shall mean a transaction in which any “person” or “group” (within the meaning of Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934) becomes the
“beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of a sufficient number of shares of all classes of stock then outstanding of Borrower ordinarily entitled to vote in the
election of directors, empowering such “person” or “group” to elect a majority of the Board of Directors of Borrower, who did not have such power before such transaction. 
  
 “Chief Executive Office State” means California,
where Borrower’s chief executive office is located. 
  
 “Closing Date” means the date of this Agreement. 
  
 “Code” means the California Uniform Commercial Code, as amended or supplemented from time to time. 
  
 “Collateral” means the property described on
Exhibit A attached hereto and all Negotiable Collateral to the extent not described on Exhibit A, except to the extent any such property (i) is nonassignable by its terms without the consent of the licensor thereof or another party (but only to
the extent such prohibition on transfer is enforceable under applicable law, including, without limitation, Sections 9406 and 9408 of the Code), or (ii) the granting of a security interest therein is contrary to applicable law, provided that
upon the cessation of any such restriction or prohibition, such property shall automatically become part of the Collateral; provided that in no case shall the definition of “Collateral” exclude any Accounts, proceeds of the disposition of
any property, or general intangibles consisting of rights to payment. 
  
 “Collateral State” means the state or states where the Collateral is located, which are California and New Jersey. 
  
 “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, without limitation, 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. 
  
 “Credit Extension” means each Advance or any other
extension of credit by Bank to or for the benefit of Borrower hereunder. 
  
 “Eligible Domestic Accounts Receivable” means those net trade billed Accounts that arise in the ordinary course of Borrower’s business from sales of Borrower’s products that comply with all of
Borrower’s representations and warranties to Bank set forth in Section 5.3 that are aged less than ninety (90) days from the invoice date but excluding royalties, license and milestone payments. 
  
 “Environmental Laws” means all laws, rules,
regulations, orders and the like issued by any federal state, local foreign or other governmental or quasi-governmental authority or any agency pertaining to 

  

 - 2 - 

 
the environment or to any hazardous materials or wastes, toxic substances, flammable, explosive or radioactive materials, asbestos or other similar
materials. 
  
 “Equipment” means all
present and future machinery, equipment, tenant improvements, furniture, fixtures, vehicles, tools, parts and attachments in which Borrower has any interest. 
  

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the regulations thereunder. 
  
 “Event of Default” has the meaning assigned in
Article 8. 
  
 “GAAP” means United
States generally accepted accounting principles, consistently applied, as in effect from time to time. 
  
 “Indebtedness” means (a) all indebtedness for borrowed money or the deferred purchase price of property or services,
including without limitation 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. 
  
 “Insolvency Proceeding” means any proceeding commenced by or against any Person or entity under any provision of the United States Bankruptcy Code, as amended, or under any other bankruptcy or insolvency law, including assignments
for the benefit of creditors, formal or informal moratoria, compositions, extension generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief. 
  
 “Inventory” means all present and future inventory in which Borrower has any interest. 

 
 “Investment” means any beneficial ownership of
(including stock, partnership or limited liability company interest other securities) any Person, or any loan, advance or capital contribution to any Person. 
  

“IRC” means the Internal Revenue Code of 1986, as amended, and the regulations thereunder. 
  
 “Lien” means any mortgage, lien, deed of trust,
charge, pledge, security interest or other encumbrance. 
  
 “Liquidity” means the sum of Cash plus fifty percent (50%) of Eligible Domestic Accounts Receivable. 
  
 “Loan Documents” means, collectively, this Agreement, any note or notes executed by Borrower, and any other document, instrument
or agreement entered into in connection with this Agreement, all as amended or extended from time to time. 
  
 “Material Adverse Effect” means a material adverse effect on (i) the business operations, condition (financial or
otherwise) or prospects of Borrower and its Subsidiaries taken as a whole, (ii) the ability of Borrower to repay the Obligations or otherwise perform its obligations under the Loan Documents, (iii) Borrower’s interest in, or the
value, perfection or priority of Bank’s security interest in the Collateral. 
  
 “Negotiable Collateral” means all of Borrower’s present and future letters of credit of which it is a beneficiary, drafts,
instruments (including promissory notes), securities, documents of title, and chattel paper, and Borrower’s Books relating to any of the foregoing. 
  
 “Obligations” means all debt, principal, interest, Bank Expenses and other amounts owed to Bank by Borrower pursuant to this
Agreement or any other agreement, whether absolute or contingent, due or to become due, now existing or hereafter arising, including any interest that accrues after the commencement of an 

  

 - 3 - 

 
Insolvency Proceeding and including any debt, liability, or obligation owing from Borrower to others that Bank may have obtained by assignment or otherwise.

  
 “Periodic Payments” means all
installments or similar recurring payments that Borrower may now or hereafter become obligated to pay to Bank pursuant to the terms and provisions of any instrument, or agreement now or hereafter in existence between Borrower and Bank. 

 
 “Permitted Indebtedness” means: 
  
 (a) Indebtedness of Borrower in favor of Bank arising under
this Agreement or any other Loan Document; 
  
 (b) Indebtedness existing on the Closing Date and disclosed in the Schedule; 
  
 (c) Indebtedness not to exceed One Hundred Thousand Dollars ($100,000) in the aggregate in any fiscal year of Borrower secured by a lien
described in clause (c) 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; 
  
 (d) Subordinated Debt; 
  
 (e) Indebtedness of Subsidiaries of Borrower who are
guarantors hereunder to Borrower as a result of Investments by Borrower in such Subsidiaries; 
  
 (f) Indebtedness to trade creditors incurred in the ordinary course of business; and 
  
 (g) Extensions, refinancings and renewals of any items of
Permitted Indebtedness, provided that the principal amount is not increased or the terms modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be. 
  
 “Permitted Investment” means: 
  
 (a) Investments existing on the Closing Date disclosed in the Schedule; and 
  
 (b) (i) Marketable direct obligations issued or
unconditionally guaranteed by the United States of America or any agency or any State thereof maturing within one (1) year from the date of acquisition thereof, (ii) commercial paper maturing no more than one (1) year from the date of
creation thereof and currently having rating of at least A-2 or P-2 from either Standard & Poor’s Corporation or Moody’s Investors Service, (iii) Bank’s certificates of deposit maturing no more than one year from the
date of investment therein, and (iv) Bank’s money market accounts; 
  
 (c) Repurchases of stock from former employees or directors of Borrower under the terms of applicable repurchase agreements (i) in an aggregate amount not to exceed One Hundred Thousand Dollars ($100,000) in any
fiscal year, provided that no Event of Default has occurred, is continuing or would exist after giving effect to the repurchases, or (ii) in any amount where the consideration for the repurchase is the cancellation of indebtedness owed by such
former employees to Borrower regardless of whether an Event of Default exists; 
  
 (d) Investments accepted in connection with Permitted Transfers; 
  
 (e) Investments of Subsidiaries who are guarantors hereunder in or to other Subsidiaries who are guarantors
hereunder or Borrower and Investments by Borrower in Subsidiaries who are guarantors hereunder; 
  
 (f) Investments not to exceed One Hundred Thousand Dollars ($100,000) in the aggregate in any fiscal year consisting of (i) travel
advances and employee relocation loans and other employee 

  

 - 4 - 

 
loans and advances in the ordinary course of business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities
of Borrower or its Subsidiaries pursuant to employee stock purchase plan agreements approved by Borrower’s Board of Directors; 
  
 (g) 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; 
  
 (h) 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 (h) shall not apply to Investments of Borrower in any Subsidiary; and 
  

(i) Joint ventures or strategic alliances in the ordinary course of Borrower’s business consisting of the non-exclusive licensing
of technology, the development of technology or the providing of technical support, provided that any cash Investments by Borrower do not exceed One Hundred Thousand Dollars ($100,000) in the aggregate in any fiscal year. 
  
 “Permitted Liens” means the following: 

 
 (a) Any Liens existing on the Closing Date and disclosed
in the Schedule (excluding Liens to be satisfied with the proceeds of the Advances) or arising under this Agreement or the other Loan Documents; 
  
 (b) Liens for taxes, fees, assessments or other governmental charges or levies, either not delinquent or being contested in good faith by
appropriate proceedings and for which Borrower maintains adequate reserves, provided the same have no priority over any of Bank’s security interests; 
  
 (c) Liens not to exceed One Hundred Thousand Dollars ($100,000) in the aggregate (i) upon or in any Equipment (other than Equipment
financed by an Equipment Advance) acquired or held by Borrower or any of its Subsidiaries to secure the purchase price of such Equipment or indebtedness incurred solely for the purpose of financing the acquisition or lease of such Equipment, or
(ii) existing on such Equipment at the time of its acquisition, provided that the Lien is confined solely to the property so acquired and improvements thereon, and the proceeds of such Equipment; 
  
 (d) Liens incurred in connection with the extension, renewal
or refinancing of the indebtedness secured by Liens of the type described in clauses (a) through (c) 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 does not increase; and 
  
 (e) Liens arising from judgments, decrees or attachments in circumstances not constituting an Event of Default under Sections 8.5 or 8.9;

  
 “Permitted Transfer” means the
conveyance, sale, lease, transfer or disposition by Borrower or any Subsidiary of: 
  
 (a) Inventory in the ordinary course of business; 
  
 (b) licenses and similar arrangements for the use of the property of Borrower or its Subsidiaries in the
ordinary course of business; 
  
 (c) assets
relating to Borrower’s XECEREPT drug in connection with the XECEREPT Asset Sale; 
  
 (d) Two Million Dollars ($2,000,000) in cash and Two Million Three Hundred Seventy Five Thousand One Hundred Seventy Six
(2,375,176) shares of Borrower’s common stock to those parties 

  

 - 5 - 

 
listed on the Schedule in connection with earn out payments required to be made pursuant to that certain Agreement and Plan of Reorganization by and among
Borrower, Empire Acquisition Corp., and Empire Pharmaceuticals, Inc., dated July 14, 2004. 
  
 (e) worn-out or obsolete Equipment not financed with the proceeds of Equipment Advances; or 
  
 (f) other assets of Borrower or its Subsidiaries that do not
in the aggregate exceed One Hundred Thousand Dollars ($100,000) during any fiscal year. 
  
 “Person” means any individual, sole proprietorship, partnership, limited liability company, joint venture, trust, unincorporated
organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or governmental agency. 
  
 “Prime Rate” means the variable rate of interest, per annum, most recently announced by Bank, as its “prime rate,”
whether or not such announced rate is the lowest rate available from Bank. 
  
 “Responsible Officer” means each of the Chief Executive Officer, the Chief Operating Officer, the Chief Financial Officer and the Controller of Borrower. 
  
 “Revolving Line” means a Credit Extension of up to
Ten Million Dollars ($10,000,000). 
  
 “Revolving Maturity Date” means August 18, 2007. 
  
 “Schedule” means the schedule of exceptions attached hereto and approved by Bank, if any. 
  
 “Shares” means (i) sixty-six and two-thirds percent (66-2/3%) of the issued and outstanding capital stock, membership units
or other securities owned or held of record by Borrower in any Subsidiary of Borrower which is not an entity organized under the laws of the United States or any territory thereof, and (ii) one hundred percent (100%) of the issued and
outstanding capital stock, membership units or other securities owned or held of record by Borrower in any Subsidiary of Borrower which is an entity organized under the laws of the United States or any territory thereof. 
  
 “SOS Reports” means the official reports from the
Secretaries of State of each Collateral State, Chief Executive Office State and the Borrower State and other applicable federal, state or local government offices identifying all current security interests filed in the Collateral and Liens of record
as of the date of such report. 
  
 “Subordinated Debt” means any debt incurred by Borrower that is subordinated in writing to the debt owing by Borrower to Bank on terms reasonably acceptable to Bank (and identified as being such by Borrower and Bank). 

 
 “Subsidiary” means any corporation, partnership
or limited liability company or joint venture in which (i) any general partnership interest or (ii) more than fifty percent (50%) of the stock, limited liability company interest or joint venture of which by the terms thereof has the
ordinary voting power to elect the Board of Directors, managers or trustees of the entity, at the time as of which any determination is being made, is owned by Borrower, either directly or through an Affiliate. 
  
 “XERECEPT Asset Sale” means the sale by Borrower
of assets relating to its XERECEPT drug to Celtic Pharma Management LP for (i) a minimum aggregate guaranteed purchase price of at least Thirty Three Million Dollars ($33,000,000) of which at least Twenty Million Dollars ($20,000,000) shall be
made in an upfront payment upon consummation of the XERECEPT Asset Sale, (ii) minimum milestones payments of at least Thirteen Million Dollars ($13,000,000), and (iii) certain additional royalty payments, all as set forth on Exhibit D
attached hereto. 
  

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 1.2 Accounting Terms. Any accounting term not specifically defined herein shall be
construed in accordance with GAAP and all calculations shall be made in accordance with GAAP. The term “financial statements” shall include the accompanying notes and schedules. 
  

	 	2.	LOAN AND TERMS OF PAYMENT. 

  
 2.1 Credit Extensions. (a) Promise to Pay. Borrower promises to pay to Bank, in lawful money of the United States of
America, the aggregate unpaid principal amount of all Credit Extensions made by Bank to Borrower, together with interest on the unpaid principal amount of such Credit Extensions at rates in accordance with the terms hereof. 
  
 (b) Advances Under Revolving Line. 
  
 (i) Amount. Subject to and upon the terms and
conditions of this Agreement (1) Borrower may request Advances in an aggregate outstanding amount not to exceed the Revolving Line and (2) amounts borrowed pursuant to this Section 2.1(b) may be repaid and reborrowed at any time prior
to the Revolving Maturity Date, at which time all Advances under this Section 2.1(b) shall be immediately due and payable. Borrower may prepay any Advances without penalty or premium. 
  
 (ii) Form of Request. Whenever Borrower desires an
Advance, Borrower will notify Bank by facsimile transmission or telephone no later than 3:00 p.m. Pacific time (1:00 p.m. Pacific time for wire transfers), on the Business Day that the Advance is to be made. Each such notification shall be promptly
confirmed by a Payment/Advance Form in substantially the form of Exhibit B hereto. Bank is authorized to make Advances under this Agreement, based upon instructions received from a Responsible Officer or a designee of a Responsible Officer, or
without instructions if in Bank’s discretion such Advances are necessary to meet Obligations which have become due and remain unpaid. Bank shall be entitled to rely on any telephonic notice given by a person who Bank reasonably believes to be a
Responsible Officer or a designee thereof, and Borrower shall indemnify and hold Bank harmless for any damages or loss suffered by Bank as a result of such reliance. Bank will credit the amount of Advances made under this Section 2.1(b) to
Borrower’s deposit account. 
  
 2.2
Intentionally Omitted. 
  
 2.3 Interest
Rates, Payments, and Calculations. 
  
 (a) Interest Rate for Advances. Except as set forth in Section 2.3(b), the Advances shall bear interest, on the outstanding daily balance thereof, at a variable rate equal to one percent (1.00%) above the Prime Rate.

  
 (b) Late Fee; Default Rate. If any
payment is not made within ten (10) days after the date such payment is due, Borrower shall pay Bank a late fee equal to the lesser of (i) five percent (5%) of the amount of such unpaid amount or (ii) the maximum amount permitted
to be charged under applicable law. All Obligations shall bear interest, from and after the occurrence and during the continuance of an Event of Default, at a rate equal to five (5) percentage points above the interest rate applicable
immediately prior to the occurrence of the Event of Default. 
  
 (c) Payments. Interest hereunder shall be due and payable on the first calendar day of each month during the term hereof. Bank shall, at its option, charge such interest, all Bank Expenses, and all Periodic
Payments against any of Borrower’s deposit accounts or against the Revolving Line, in which case those amounts shall thereafter accrue interest at the rate then applicable hereunder. Any interest not paid when due shall be compounded by
becoming a part of the Obligations, and such interest shall thereafter accrue interest at the rate then applicable hereunder. 
  
 (d) Computation. In the event the Prime Rate is changed from time to time hereafter, the applicable rate of interest hereunder
shall be increased or decreased, effective as of the day the Prime Rate is changed, by an amount equal to such change in the Prime Rate. All interest chargeable under the Loan Documents shall be computed on the basis of a three hundred sixty
(360) day year for the actual number of days elapsed. 
  

 - 7 - 

 2.4 Crediting Payments. Prior to the occurrence of an Event of Default, Bank shall
credit a wire transfer of funds, check or other item of payment to such deposit account or Obligation as Borrower specifies except that to the extent Borrower uses the Advances to purchase Collateral, Borrower’s repayment of the Advances shall
apply on a “first-in-first-out” basis so that the portion of the Advances used to purchase a particular item of Collateral shall be paid in the chronological order the Borrower purchased the Collateral. After the occurrence of an Event of
Default, Bank shall have the right, in its sole discretion, to immediately apply any wire transfer of funds, check, or other item of payment to conditionally reduce Obligations, but such applications of funds shall not be considered a payment on
account unless such payment is of immediately available federal funds or unless and until such check or other item of payment is honored when presented for payment. Notwithstanding anything to the contrary contained herein, any wire transfer or
payment received by Bank after 12:00 noon Pacific time shall be deemed to have been received by Bank as of the opening of business on the immediately following Business Day. Whenever any payment to Bank under the Loan Documents would otherwise be
due (except by reason of acceleration) on a date that is not a Business Day, such payment shall instead be due on the next Business Day, and additional fees or interest, as the case may be, shall accrue and be payable for the period of such
extension. 
  
 2.5 Fees. Borrower shall
pay to Bank the following: 
  
 (a) Facility
Fee. On the Closing Date, a fee equal to $15,000, which shall be nonrefundable; and 
  
 (b) Bank Expenses. On the Closing Date, all Bank Expenses incurred through the Closing Date, and, after the Closing Date, all Bank
Expenses as and when they become due. 
  
 2.6
Term. This Agreement shall become effective on the Closing Date and, subject to Section 13.7, shall continue in full force and effect for so long as any Obligations remain outstanding or Bank has any obligation to make Credit Extensions
under this Agreement. Notwithstanding the foregoing, Bank shall have the right to terminate its obligation to make Credit Extensions under this Agreement immediately and without notice upon the occurrence and during the continuance of an Event of
Default. 
  

	 	3.	CONDITIONS OF LOANS. 

  
 3.1 Conditions Precedent to Initial Credit Extension. The obligation of Bank to make the initial Credit Extension is subject to the
condition precedent that Bank shall have received, in form and substance satisfactory to Bank, the following: 
  
 (a) this Agreement; 
  
 (b) an officer’s certificate of Borrower with respect to incumbency and resolutions authorizing the execution and delivery of this
Agreement; 
  
 (c) UCC National Form Financing
Statement; 
  
 (d) the certificate(s) for the
Shares, together with Assignment(s) Separate from Certificate, duly executed by in blank; 
  
 (e) a guaranty and third party security agreement executed by NTI-Empire, Inc..; 
  
 (f) securities and/or deposit account control agreements
with respect to any accounts permitted hereunder to maintained outside Bank; 
  
 (g) current SOS Reports indicating that except for Permitted Liens, there are no other security interests or Liens of record in the Collateral; 
  

 - 8 - 

 (h) agreement to provide insurance; 
  
 (i) payment of the fees and Bank Expenses then due specified
in Section 2.5 hereof; 
  
 (j) current
financial statements, including audited statements for Borrower’s most recently ended fiscal year, together with an unqualified opinion, company prepared consolidated and consolidating balance sheets and income statements for the most recently
ended month in accordance with Section 6.2, and such other updated financial information as Bank may reasonably request; 
  
 (k) current Compliance Certificate in accordance with Section 6.2; 
  
 (l) such other documents or certificates, and completion of such other matters, as Bank may reasonably deem
necessary or appropriate. 
  
 3.2 Conditions
Precedent to all Credit Extensions. The obligation of Bank to make each Credit Extension, including the initial Credit Extension, is further subject to the following conditions: 
  
 (a) timely receipt by Bank of the Payment/Advance Form as provided in Section 2.1; and 
  
 (b) the representations and warranties contained in
Section 5 shall be true and correct in all material respects on and as of the date of such Payment/Advance Form and on the effective date of each Credit Extension as though made at and as of each such date, and no Event of Default shall have
occurred and be continuing, or would exist after giving effect to such Credit Extension (provided, however, that those representations and warranties expressly referring to another date shall be true, correct and complete in all material respects as
of such date). The making of each Credit Extension shall be deemed to be a representation and warranty by Borrower on the date of such Credit Extension as to the accuracy of the facts referred to in this Section 3.2. 
  

	 	4.	CREATION OF SECURITY INTEREST. 

  
 4.1 Grant of Security Interest. Borrower grants and pledges to Bank a continuing security interest in the Collateral to secure
prompt repayment of any and all Obligations and in order to secure prompt performance by Borrower of each of its covenants and duties under the Loan Documents. Except as set forth in the Schedule, such security interest constitutes a valid, first
priority security interest in the presently existing Collateral, and will constitute a valid, first priority security interest in later-acquired Collateral. Borrower also hereby agrees to not sell, transfer, assign, mortgage, pledge, lease, grant a
security interest in, or encumber any of its intellectual property. Notwithstanding any termination, Bank’s Lien on the Collateral shall remain in effect for so long as any Obligations are outstanding. 
  
 4.2 Perfection of Security Interest. Borrower
authorizes Bank to file at any time financing statements, continuation statements, and amendments thereto that (i) either specifically describe the Collateral or describe the Collateral as all assets of Borrower of the kind pledged hereunder,
and (ii) contain any other information required by the Code for the sufficiency of filing office acceptance of any financing statement, continuation statement, or amendment, including whether Borrower is an organization, the type of
organization and any organizational identification number issued to Borrower, if applicable. Any such financing statements may be signed by Bank on behalf of Borrower, as provided in the Code, and may be filed at any time in any jurisdiction whether
or not Revised Article 9 of the Code is then in effect in that jurisdiction. Borrower shall from time to time endorse and deliver to Bank, at the request of Bank, all Negotiable Collateral and other documents that Bank may reasonably request, in
form satisfactory to Bank, to perfect and continue perfected Bank’s security interests in the Collateral and in order to fully consummate all of the transactions contemplated under the Loan Documents. Borrower shall have possession of the
Collateral, except where expressly otherwise provided in this Agreement or where Bank chooses to perfect its security interest by possession in addition to the filing of a financing statement. Where Collateral is in possession of a third party
bailee, Borrower shall take such steps as Bank reasonably requests for Bank to (i) obtain an acknowledgment, in form and substance satisfactory to Bank, of the bailee that the bailee holds such Collateral for the benefit of Bank,
(ii) obtain “control” of any Collateral consisting of investment 
  

 - 9 - 

 
property, deposit accounts, letter-of-credit rights or electronic chattel paper (as such items and the term “control” are defined in Revised
Article 9 of the Code) by causing the securities intermediary or depositary institution or issuing bank to execute a control agreement in form and substance satisfactory to Bank. Borrower will not create any chattel paper without placing a legend on
the chattel paper acceptable to Bank indicating that Bank has a security interest in the chattel paper. Borrower from time to time may deposit with Bank specific cash collateral to secure specific Obligations; Borrower authorizes Bank to hold such
specific balances in pledge and to decline to honor any drafts thereon or any request by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long as the specific Obligations are outstanding. 
  
 4.3 Right to Inspect. Bank (through any of its
officers, employees, or agents) shall have the right, upon reasonable prior notice, from time to time during Borrower’s usual business hours but no more than twice a year (unless an Event of Default has occurred and is continuing), to inspect
Borrower’s Books and to make copies thereof and to check, test, and appraise the Collateral in order to verify Borrower’s financial condition or the amount, condition of, or any other matter relating to, the Collateral. 
  
 4.4 Pledge of Collateral. Borrower hereby pledges,
assigns and grants to Bank a security interest in all the Shares, together with all proceeds and substitutions thereof, all cash, stock and other moneys and property paid thereon, all rights to subscribe for securities declared or granted in
connection therewith, and all other cash and noncash proceeds of the foregoing, as security for the performance of the Obligations. On the Closing Date, the certificate or certificates for the Shares will be delivered to Bank, accompanied by an
instrument of assignment duly executed in blank by Borrower. To the extent required by the terms and conditions governing the Shares, Borrower shall cause the books of each entity whose Shares are part of the Collateral and any transfer agent to
reflect the pledge of the Shares. Upon the occurrence of an Event of Default hereunder, Bank may effect the transfer of any securities included in the Collateral (including but not limited to the Shares) into the name of Bank and cause new
certificates representing such securities to be issued in the name of Bank or its transferee. Borrower will execute and deliver such documents, and take or cause to be taken such actions, as Bank may reasonably request to perfect or continue the
perfection of Bank’s security interest in the Shares. Unless an Event of Default shall have occurred and be continuing, Borrower shall be entitled to exercise any voting rights with respect to the Shares and to give consents, waivers and
ratifications in respect thereof, provided that no vote shall be cast or consent, waiver or ratification given or action taken which would be inconsistent with any of the terms of this Agreement or which would constitute or create any violation of
any of such terms. All such rights to vote and give consents, waivers and ratifications shall terminate upon the occurrence and continuance of an Event of Default. 
  

	 	5.	REPRESENTATIONS AND WARRANTIES. 

  
 Borrower represents and warrants as follows: 
  
 5.1 Due Organization and Qualification. Borrower and each Subsidiary is duly existing under the laws of the state in which it is
organized and qualified and licensed to do business in any state in which the conduct of its business or its ownership of property requires that it be so qualified, except where the failure to do so could not reasonably be expected to cause a
Material Adverse Effect. 
  
 5.2 Due
Authorization; No Conflict. The execution, delivery, and performance of the Loan Documents are within Borrower’s powers, have been duly authorized, and are not in conflict with nor constitute a breach of any provision contained in
Borrower’s Certificate of Incorporation or Bylaws, nor will they constitute an event of default under any material agreement by which Borrower is bound. Borrower is not in default under any agreement by which it is bound, except to the extent
such default could not reasonably be expected to cause a Material Adverse Effect. 
  
 5.3 Collateral. Borrower has rights in or the power to transfer the Collateral, and its title to the Collateral is free and clear
of Liens, adverse claims, and restrictions on transfer or pledge except for Permitted Liens. Except as set forth in the Schedule, all Collateral is located solely in the Collateral States. The Eligible Domestic Accounts Receivable are bona fide
existing obligations. The property or services giving rise to such Eligible Domestic Accounts Receivable has been delivered or rendered to the account debtor or its agent for immediate shipment to and unconditional acceptance by the account debtor.
Borrower has not received notice of actual or imminent Insolvency Proceeding of any account debtor whose accounts are included in the calculation of 

  

 - 10 - 

 
Liquidity as an Eligible Domestic Account Receivable. All Inventory is in all material respects of good and merchantable quality, free from all material
defects, except for Inventory for which adequate reserves have been made. Except as set forth in the Schedule, none of the Collateral is maintained or invested with a Person other than Bank or Bank’s Affiliates. 
  
 5.4 Intellectual Property. Borrower is the sole owner
of its patents, trademarks, copyrights and other intellectual property, except for non-exclusive licenses granted by Borrower to its customers in the ordinary course of business. To the best of Borrower’s knowledge, each of Borrower’s
patents, trademarks and copyrights is valid and enforceable, and no part of its intellectual property has been judged invalid or unenforceable, in whole or in part, and no claim has been made to Borrower that any part of its intellectual property
violates the rights of any third party except to the extent such claim could not reasonably be expected to cause a Material Adverse Effect. 
  
 5.5 Name; Location of Chief Executive Office. Except as disclosed in the Schedule, Borrower has not done business under any name
other than that specified on the signature page hereof, and its exact legal name is as set forth in the first paragraph of this Agreement. The chief executive office of Borrower is located in the Chief Executive Office State at the address indicated
in Section 10 hereof. 
  
 5.6
Litigation. Except as set forth in the Schedule, there are no actions or proceedings pending by or against Borrower or any Subsidiary before any court or administrative agency in which a likely adverse decision could reasonably be expected to
have a Material Adverse Effect. 
  
 5.7 No
Material Adverse Change in Financial Statements. All consolidated and consolidating financial statements related to Borrower and any Subsidiary that are delivered by Borrower to Bank fairly present in all material respects Borrower’s
consolidated and consolidating financial condition as of the date thereof and Borrower’s consolidated and consolidating results of operations for the period then ended. There has not been a material adverse change in the consolidated or in the
consolidating financial condition of Borrower since the date of the most recent of such financial statements submitted to Bank. 
  
 5.8 Solvency, Payment of Debts. Borrower is able to pay its debts (including trade debts) as they mature; the fair saleable value
of Borrower’s assets (including goodwill minus disposition costs) exceeds the fair value of its liabilities; and Borrower is not left with unreasonably small capital after the transactions contemplated by this Agreement. 
  
 5.9 Compliance with Laws and Regulations. Borrower
and each Subsidiary have met the minimum funding requirements of ERISA with respect to any employee benefit plans subject to ERISA. No event has occurred resulting from Borrower’s failure to comply with ERISA that is reasonably likely to result
in Borrower’s incurring any liability that could have a Material Adverse Effect. Borrower is not an “investment company” or a company “controlled” by an “investment company” within the meaning of the Investment
Company Act of 1940. Borrower is not engaged principally, or as one of the important activities, in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulations T and U of the Board of
Governors of the Federal Reserve System). Borrower has complied in all material respects with all the provisions of the Federal Fair Labor Standards Act. Borrower is in compliance with all environmental laws, regulations and ordinances except where
the failure to comply is not reasonably likely to have a Material Adverse Effect. Borrower has not violated any statutes, laws, ordinances or rules applicable to it, the violation of which could reasonably be expected to have a Material Adverse
Effect. Borrower and each Subsidiary have filed or caused to be filed all tax returns required to be filed, and have paid, or have made adequate provision for the payment of, all taxes reflected therein except those being contested in good faith
with adequate reserves under GAAP or where the failure to file such returns or pay such taxes could not reasonably be expected to have a Material Adverse Effect. 
  
 5.10 Subsidiaries. Borrower does not own any stock, partnership interest or other equity securities
of any Person, except for Permitted Investments. 
  
 5.11 Government Consents. Borrower and each Subsidiary have obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all governmental 

  

 - 11 - 

 
authorities that are necessary for the continued operation of Borrower’s business as currently conducted, except where the failure to do so could not
reasonably be expected to cause a Material Adverse Effect. 
  
 5.12 Inbound Licenses. Except as disclosed on the Schedule, Borrower is not a party to, nor is bound by, any license or other agreement that prohibits or otherwise restricts Borrower from granting a security
interest in Borrower’s interest in such license or agreement or any other property. 
  
 5.13 Shares. Borrower has full power and authority to create a first lien on the Shares and no disability or contractual obligation
exists that would prohibit Borrower from pledging the Shares pursuant to this Agreement. To Borrower’s knowledge, there are no subscriptions, warrants, rights of first refusal or other restrictions on transfer relative to, or options
exercisable with respect to the Shares. The Shares have been and will be duly authorized and validly issued, and are fully paid and non-assessable. To Borrower’s knowledge, the Shares are not the subject of any present or threatened suit,
action, arbitration, administrative or other proceeding, and Borrower knows of no reasonable grounds for the institution of any such proceedings. 
  
 5.14 Full Disclosure. No representation, warranty or other statement made by Borrower in any certificate or written statement
furnished to Bank taken together with all such certificates and written statements furnished to Bank contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained in such
certificates or statements not misleading it being recognized by Bank that the projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are not to be viewed as facts and that actual results during the period
or periods covered by any such projections and forecasts may differ from the projected or forecasted results. 
  

	 	6.	AFFIRMATIVE COVENANTS. 

  
 Borrower covenants and agrees that, until payment in full of all outstanding Obligations, and for so long as Bank may have any commitment
to make a Credit Extension hereunder, Borrower shall do all of the following: 
  
 6.1 Good Standing and Government Compliance. Borrower shall maintain its and each of its Subsidiaries’ corporate existence and good standing in the Borrower State, shall maintain qualification and good
standing in each other jurisdiction in which the failure to so qualify could have a Material Adverse Effect, and shall furnish to Bank the organizational identification number issued to Borrower by the authorities of the state in which Borrower is
organized, if applicable. Borrower shall meet, and shall cause each Subsidiary to meet, the minimum funding requirements of ERISA with respect to any employee benefit plans subject to ERISA. Borrower shall comply in all material respects with all
applicable Environmental Laws, and maintain all material permits, licenses and approvals required thereunder where the failure to do so could have a Material Adverse Effect. Borrower shall comply, and shall cause each Subsidiary to comply, with all
statutes, laws, ordinances and government rules and regulations to which it is subject, and shall maintain, and shall cause each of its Subsidiaries to maintain, in force all licenses, approvals and agreements, the loss of which or failure to comply
with which could reasonably be expected to have a Material Adverse Effect. 
  
 6.2 Financial Statements, Reports, Certificates. Borrower shall deliver the following to Bank: (i) as soon as available, but in any event within thirty (30) days after the end of each calendar month,
a company prepared consolidated and consolidating balance sheet and income statement covering Borrower’s operations during such period, in a form reasonably acceptable to Bank and certified by a Responsible Officer; (ii) as soon as
available, but in any event within one hundred twenty (120) days after the end of Borrower’s fiscal year, audited consolidated and consolidating financial statements of Borrower prepared in accordance with GAAP, consistently applied,
together with an opinion which is unqualified or otherwise consented to in writing by Bank on such financial statements of an independent certified public accounting firm reasonably acceptable to Bank; (iii) if applicable, copies of all
statements, reports and notices sent or made available generally by Borrower to its security holders or to any holders of Subordinated Debt and all reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission within SEC reporting
requirements; (iv) promptly upon receipt of notice thereof, a report of any legal actions pending or threatened against Borrower or any Subsidiary that could result in damages or costs to Borrower or any Subsidiary of One Hundred Thousand
Dollars ($100,000) or more; (v) promptly upon receipt, each management letter prepared by Borrower’s independent certified public accounting firm regarding Borrower’s 

  

 - 12 - 

 
management control systems; (vi) as soon as available, but in any event no later than ninety (90) days after the end of Borrower’s fiscal
year, board of director approved financial projections; and (vii) such other budgets, sales projections, operating plans or other financial information as Bank may reasonably request from time to time. 
  
 (a) Within five (5) days after the last day of each
month when Borrower uses Eligible Domestic Accounts Receivable in calculating Liquidity hereunder, Borrower shall deliver to Bank aged listings by invoice date of accounts receivable and accounts payable. 
  
 (b) Within thirty (30) days after the last day of each
month, Borrower shall deliver to Bank with the monthly financial statements a Compliance Certificate certified as of the last day of the applicable month and signed by a Responsible Officer in substantially the form of Exhibit C hereto.

  
 (c) As soon as possible and in any event
within three (3) calendar days after becoming aware of the occurrence or existence of an Event of Default hereunder, a written statement of a Responsible Officer setting forth details of the Event of Default, and the action which Borrower has
taken or proposes to take with respect thereto. 
  
 (d) Bank shall have a right from time to time hereafter to audit Borrower’s Accounts and appraise Collateral at Borrower’s expense, provided that such audits will be conducted no more often than every six (6) months unless an
Event of Default has occurred and is continuing and provided that if at any time Liquidity is calculated using Eligible Domestic Accounts Receivable, an Accounts receivable audit shall be completed by Bank within sixty (60) days. 
  
 Borrower may deliver to Bank on an electronic basis any certificates, reports
or information required pursuant to this Section 6.2, and Bank shall be entitled to rely on the information contained in the electronic files, provided that Bank in good faith believes that the files were delivered by a Responsible Officer. If
Borrower delivers this information electronically, it shall also deliver to Bank by U.S. Mail, reputable overnight courier service, hand delivery, facsimile or .pdf file within five (5) Business Days of submission of the unsigned electronic
copy the certification of monthly financial statements, and the Compliance Certificate, each bearing the physical signature of the Responsible Officer. 
  
 6.3 Inventory; Returns. Borrower shall keep all Inventory in good and merchantable condition, free from all material defects except
for Inventory for which adequate reserves have been made. Returns and allowances, if any, as between Borrower and its account debtors shall be on the same basis and in accordance with the usual customary practices of Borrower, as they exist on the
Closing Date. Borrower shall promptly notify Bank of all returns and recoveries and of all disputes and claims involving more than One Hundred Thousand Dollars ($100,000). 
  
 6.4 Taxes. Borrower shall make, and cause each Subsidiary to make, due and timely payment or deposit
of all material federal, state, and local taxes, assessments, or contributions required of it by law, including, but not limited to, those laws concerning income taxes, F.I.C.A., F.U.T.A. and state disability, and will execute and deliver to Bank,
on demand, proof satisfactory to Bank indicating that Borrower or a Subsidiary has made such payments or deposits and any appropriate certificates attesting to the payment or deposit thereof; provided that Borrower or a Subsidiary need not make any
payment if the amount or validity of such payment is contested in good faith by appropriate proceedings and is reserved against (to the extent required by GAAP) by Borrower. 
  
 6.5 Insurance. 
  
 (a) Borrower, at its expense, shall keep the Collateral insured against loss or damage by fire, theft,
explosion, sprinklers, and all other hazards and risks, and in such amounts, as ordinarily insured against by other owners in similar businesses conducted in the locations where Borrower’s business is conducted on the date hereof. Borrower
shall also maintain liability and other insurance in amounts and of a type that are customary to businesses similar to Borrower’s. 
  

 - 13 - 

 (b) All such policies of insurance shall be in such form, with such companies, and in
such amounts as are reasonably satisfactory to Bank. All policies of property insurance shall contain a lender’s loss payable endorsement, in a form satisfactory to Bank, showing Bank as an additional loss payee, and all liability insurance
policies shall show the Bank as an additional insured and shall specify that the insurer must give at least 20 days notice to Bank before canceling its policy for any reason. Upon Bank’s request, Borrower shall deliver to Bank certified copies
of the policies of insurance and evidence of all premium payments. If no Event of Default has occurred and is continuing, proceeds payable under any casualty policy will, at Borrower’s option, be payable to Borrower to replace the property
subject to the claim, provided that any such replacement property shall be deemed Collateral in which Bank has been granted a first priority security interest. If an Event of Default has occurred and is continuing, all proceeds payable under any
such policy shall, at Bank’s option, be payable to Bank to be applied on account of the Obligations. 
  
 6.6 Accounts. No later than thirty (30) days after the Closing Date and at all time thereafter, Borrower shall maintain all
its depository and operating accounts with Bank, and its primary investment accounts with Bank or Bank’s Affiliates. Any transfers of funds from Borrower’s accounts at Comerica Securities Incorporated shall only be made to one of
Borrower’s accounts at Bank. 
  
 6.7
Financial Covenants. Borrower shall at all times, measured on a monthly basis, maintain at least one of the following financial ratios and covenants: 
  
 (a) Bank Debt Liquidity Coverage. A ratio of Liquidity to all Indebtedness to Bank of at least 1.15 to 1.00; provided however that
if at any time Liquidity is calculated using Eligible Domestic Accounts Receivable, an Accounts receivable audit shall be completed by Bank within sixty (60) days and until such time as such audit is completed to Bank’s satisfaction, the
amount of Eligible Domestic Accounts Receivable eligible for use in calculation of Liquidity shall be limited to One Million Dollars ($1,000,000); or 
  
 (b) Remaining Months Liquidity. A ratio of Liquidity to Cash Burn of at least 3.00 to 1.00. 
  
 6.8 Consent of Inbound Licensors. Prior to entering
into or becoming bound by any license or agreement, Borrower shall provide written notice to Bank of the material terms of such license or agreement with a description of its likely impact on Borrower’s business or financial condition.

  
 6.9 Creation/Acquisition of
Subsidiaries. In the event Borrower or any Subsidiary creates or acquires any Subsidiary, Borrower and such Subsidiary shall promptly notify Bank of the creation or acquisition of such new Subsidiary and take all such action as may be reasonably
required by Bank to cause such Subsidiary to guarantee the Obligations of Borrower under the Loan Documents and grant a continuing pledge and security interest in and to the collateral of such Subsidiary (substantially as described on Exhibit A
hereto), and Borrower shall grant and pledge to Bank a perfected security interest in the stock, units or other evidence of ownership of such Subsidiary. 
  
 6.10 Further Assurances. At any time and from time to time Borrower shall execute and deliver such further instruments and take
such further action as may reasonably be requested by Bank to effect the purposes of this Agreement. 
  

	 	7.	NEGATIVE COVENANTS. 

  
 Borrower covenants and agrees that, so long as any credit hereunder shall be available and until the outstanding Obligations are paid in
full or for so long as Bank may have any commitment to make any Credit Extensions, Borrower will not do any of the following without Bank’s prior written consent, which shall not be unreasonably withheld: 
  
 7.1 Dispositions. Convey, sell, lease, license,
transfer or otherwise dispose of (collectively, to “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, including its 

  

 - 14 - 

 
intellectual property, or move cash balances on deposit with Bank to accounts opened at another financial institution, other than Permitted Transfers.

  
 7.2 Change in Name, Location, Executive
Office, or Executive Management; Change in Business; Change in Fiscal Year; Change in Control. Change its name or the Borrower State or relocate its chief executive office without thirty (30) days prior written notification to Bank; replace
its chief executive officer or chief financial officer without thirty (30) days prior written notification to Bank; engage in any business, or permit any of its Subsidiaries to engage in any business, other than or reasonably related or
incidental to the businesses currently engaged in by Borrower; change its fiscal year end; suffer or permit a Change in Control. 
  
 7.3 Mergers or Acquisitions. 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 except where (i) such transactions do not in the aggregate exceed One Hundred Thousand Dollars ($100,000) during any fiscal year, (ii) no Event of Default has occurred, is continuing or would exist after giving effect to
such transactions, (iii) such transactions do not result in a Change in Control, and (iv) Borrower is the surviving entity. 
  
 7.4 Indebtedness. 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 Indebtedness to Bank. 
  
 7.5 Encumbrances. Create, incur, assume or allow any
Lien with respect to any of its property, or assign or otherwise convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries so to do, except for Permitted Liens. Agree with any Person other than Bank
not to grant a security interest in, or otherwise encumber, any of its property, or covenant to any other Person that Borrower in the future will refrain from creating, incurring, assuming or allowing any Lien with respect to any of Borrower’s
property, or permit any Subsidiary to do so. 
  
 7.6 Distributions. Pay any dividends or make any other distribution or payment on account of or in redemption, retirement or purchase of any capital stock, except that Borrower may (i) repurchase the stock of former employees
pursuant to stock repurchase agreements as long as an Event of Default does not exist prior to such repurchase or would not exist after giving effect to such repurchase, and (ii) repurchase the stock of former employees pursuant to stock
repurchase agreements by the cancellation of indebtedness owed by such former employees to Borrower regardless of whether an Event of Default exists. 
  
 7.7 Investments. 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, or maintain or invest any of its property with a Person other than Bank or Bank’s Affiliates or permit any Subsidiary to do so unless such Person has entered into a control agreement with
Bank, in form and substance satisfactory to Bank, or suffer or permit any Subsidiary to be a party to, or be bound by, an agreement that restricts such Subsidiary from paying dividends or otherwise distributing property to Borrower. 
  
 7.8 Transactions with Affiliates. Directly or
indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower except for transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable terms that are no less favorable to
Borrower than would be obtained in an arm’s length transaction with a non-affiliated Person. 
  
 7.9 Subordinated Debt. Make any payment in respect of any Subordinated Debt, or permit any of its Subsidiaries to make any such
payment, except in compliance with the terms of such Subordinated Debt, or amend any provision affecting Bank’s rights contained in any documentation relating to the Subordinated Debt without Bank’s prior written consent. 
  
 7.10 Inventory and Equipment. Store the Inventory or
the Equipment with a bailee, warehouseman, or similar third party unless the third party has been notified of Bank’s security interest and Bank (a)

  

 - 15 - 

 
has received an acknowledgment from the third party that it is holding or will hold the Inventory or Equipment for Bank’s benefit or (b) is in
possession of the warehouse receipt, where negotiable, covering such Inventory or Equipment. Except for Inventory sold in the ordinary course of business and except for such other locations as Bank may approve in writing, Borrower shall keep the
Inventory and Equipment only at the location set forth in Section 10 and such other locations of which Borrower gives Bank prior written notice and as to which Bank files a financing statement, or takes other action, where needed to perfect its
security interest. 
  
 7.11 No Investment
Company; Margin Regulation. Become or be controlled by an “investment company,” within the meaning of the Investment Company Act of 1940, or become principally engaged in, or undertake as one of its important activities, the business
of extending credit for the purpose of purchasing or carrying margin stock, or use the proceeds of any Credit Extension for such purpose. 
  

	 	8.	EVENTS OF DEFAULT. 

  
 Any one or more of the following events shall constitute an Event of Default by Borrower under this Agreement: 
  
 8.1 Payment Default. If Borrower fails to pay any of
the Obligations when due; 
  
 8.2 Covenant
Default. 
  
 (a) If Borrower fails to perform
any obligation under Article 6 or violates any of the covenants contained in Article 7 of this Agreement; or 
  
 (b) If Borrower fails or neglects to perform or observe any other material term, provision, condition, covenant contained in this
Agreement, in any of the Loan Documents, or in any other present or future agreement between Borrower and Bank and as to any default under such other term, provision, condition or covenant that can be cured, has failed to cure such default within
ten (10) days after Borrower receives notice thereof or any officer of Borrower becomes aware thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day period or cannot after diligent attempts by
Borrower be cured within such ten (10) day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional reasonable period (which shall not in any case exceed thirty (30) days) to attempt
to cure such default, and within such reasonable time period the failure to have cured such default shall not be deemed an Event of Default but no Credit Extensions will be made; 
  
 8.3 Defective Perfection. If Bank shall receive at any time following the Closing Date an SOS Report
indicating that except for Permitted Liens, Bank’s security interest in the Collateral is not prior to all other security interests or Liens of record reflected in such SOS Report; 
  
 8.4 Material Adverse Effect. If there occurs any circumstance or circumstances that could have a
Material Adverse Effect; 
  
 8.5
Attachment. If any material portion of Borrower’s assets is attached, seized, subjected to a writ or distress warrant, or is levied upon, or comes into the possession of any trustee, receiver or person acting in a similar capacity and
such attachment, seizure, writ or distress warrant or levy has not been removed, discharged or rescinded within ten (10) days, or if Borrower is enjoined, restrained, or in any way prevented by court order from continuing to conduct all or any
material part of its business affairs, or if a judgment or other claim becomes a lien or encumbrance upon any material portion of Borrower’s assets, or if a notice of lien, levy, or assessment is filed of record with respect to any of
Borrower’s assets by the United States Government, or any department, agency, or instrumentality thereof, or by any state, county, municipal, or governmental agency, and the same is not paid within ten (10) days after Borrower receives
notice thereof, provided that none of the foregoing shall constitute an Event of Default where such action or event is stayed or an adequate bond has been posted pending a good faith contest by Borrower (provided that no Credit Extensions will be
made during such cure period); 
  

 - 16 - 

 8.6 Insolvency. If Borrower becomes insolvent, or if an Insolvency Proceeding is
commenced by Borrower, or if an Insolvency Proceeding is commenced against Borrower and is not dismissed or stayed within thirty (30) days (provided that no Credit Extensions will be made prior to the dismissal of such Insolvency Proceeding);

  
 8.7 Other Agreements. If there is a
default or other failure to perform in any agreement to which Borrower is a party with a third party or parties resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an
amount in excess of One Hundred Thousand Dollars ($100,000) or that could have a Material Adverse Effect; 
  
 8.8 Subordinated Debt. If Borrower makes any payment on account of Subordinated Debt, except to the extent such payment is allowed
under any subordination agreement entered into with Bank; 
  
 8.9 Judgments. If a judgment or judgments for the payment of money in an amount, individually or in the aggregate, of at least One Hundred Thousand Dollars ($100,000) shall be rendered against Borrower and
shall remain unsatisfied and unstayed for a period of ten (10) days (provided that no Credit Extensions will be made prior to the satisfaction or stay of such judgment); or 
  
 8.10 Misrepresentations. If any material misrepresentation or material misstatement exists now or
hereafter in any warranty or representation set forth herein or in any certificate delivered to Bank by any Responsible Officer pursuant to this Agreement or to induce Bank to enter into this Agreement or any other Loan Document. 
  
 8.11 Guaranty. If any guaranty of all or a portion of
the Obligations (a “Guaranty”) ceases for any reason to be in full force and effect, or any guarantor fails to perform any obligation under any Guaranty or a security agreement securing any Guaranty (collectively, the “Guaranty
Documents”), or any event of default occurs under any Guaranty Document or any guarantor revokes or purports to revoke a Guaranty, or any material misrepresentation or material misstatement exists now or hereafter in any warranty or
representation set forth in any Guaranty Document or in any certificate delivered to Bank in connection with any Guaranty Document, or if any of the circumstances described in Sections 8.3 through 8.9 occur with respect to any guarantor. 

 

	 	9.	BANK’S RIGHTS AND REMEDIES. 

  
 9.1 Rights and Remedies. Upon the occurrence and during the continuance of an Event of Default, Bank may, at its election, without
notice of its election and without demand, do any one or more of the following, all of which are authorized by Borrower: 
  
 (a) Declare all Obligations, whether evidenced by this Agreement, by any of the other Loan Documents, or otherwise, immediately due and
payable (provided that upon the occurrence of an Event of Default described in Section 8.6, all Obligations shall become immediately due and payable without any action by Bank); 
  
 (b) Demand that Borrower (i) deposit cash with Bank in an amount equal to the amount of any Letters of
Credit remaining undrawn, as collateral security for the repayment of any future drawings under such Letters of Credit, and (ii) pay in advance all Letter of Credit fees scheduled to be paid or payable over the remaining term of the Letters of
Credit, and Borrower shall promptly deposit and pay such amounts; 
  
 (c) Cease advancing money or extending credit to or for the benefit of Borrower under this Agreement or under any other agreement between Borrower and Bank; 
  
 (d) Settle or adjust disputes and claims directly with
account debtors for amounts, upon terms and in whatever order that Bank reasonably considers advisable; 
  
 (e) Make such payments and do such acts as Bank considers necessary or reasonable to protect its security interest in the Collateral.
Borrower agrees to assemble the Collateral if Bank so 

  

 - 17 - 

 
requires, and to make the Collateral available to Bank as Bank may designate. Borrower authorizes Bank to enter the premises where the Collateral is located,
to take and maintain possession of the Collateral, or any part of it, and to pay, purchase, contest, or compromise any encumbrance, charge, or lien which in Bank’s determination appears to be prior or superior to its security interest and to
pay all expenses incurred in connection therewith. With respect to any of Borrower’s owned premises, Borrower hereby grants Bank a license to enter into possession of such premises and to occupy the same, without charge, in order to exercise
any of Bank’s rights or remedies provided herein, at law, in equity, or otherwise; 
  
 (f) Set off and apply to the Obligations any and all (i) balances and deposits of Borrower held by Bank, and (ii) indebtedness
at any time owing to or for the credit or the account of Borrower held by Bank; 
  
 (g) Ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell (in the manner provided for
herein) the Collateral. Bank is hereby granted a license or other right, solely pursuant to the provisions of this Section 9.1, to use, without charge, Borrower’s labels, patents, copyrights, rights of use of any name, trade secrets, trade
names, trademarks, service marks, and advertising matter, or any property of a similar nature, as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with Bank’s
exercise of its rights under this Section 9.1, Borrower’s rights under all licenses and all franchise agreements shall inure to Bank’s benefit; 
  

(h) Sell the Collateral at either a public or private sale, or both, by way of one or more contracts or transactions, for cash or on
terms, in such manner and at such places (including Borrower’s premises) as Bank determines is commercially reasonable, and apply any proceeds to the Obligations in whatever manner or order Bank deems appropriate. Bank may sell the Collateral
without giving any warranties as to the Collateral. Bank may specifically disclaim any warranties of title or the like. This procedure will not be considered adversely to affect the commercial reasonableness of any sale of the Collateral. If Bank
sells any of the Collateral upon credit, Borrower will be credited only with payments actually made by the purchaser, received by Bank, and applied to the indebtedness of the purchaser. If the purchaser fails to pay for the Collateral, Bank may
resell the Collateral and Borrower shall be credited with the proceeds of the sale; 
  
 (i) Bank may credit bid and purchase at any public sale; 
  
 (j) Apply for the appointment of a receiver, trustee, liquidator or conservator of the Collateral, without
notice and without regard to the adequacy of the security for the Obligations and without regard to the solvency of Borrower, any guarantor or any other Person liable for any of the Obligations; and 
  
 (k) Any deficiency that exists after disposition of the
Collateral as provided above will be paid immediately by Borrower. 
  
 Bank may
comply with any applicable state or federal law requirements in connection with a disposition of the Collateral and compliance will not be considered adversely to affect the commercial reasonableness of any sale of the Collateral. 
  
 9.2 Power of Attorney. Effective only upon the
occurrence and during the continuance of an Event of Default, Borrower hereby irrevocably appoints Bank (and any of Bank’s designated officers, or employees) as Borrower’s true and lawful attorney to: (a) send requests for
verification of Accounts or notify account debtors of Bank’s security interest in the Accounts; (b) endorse Borrower’s name on any checks or other forms of payment or security that may come into Bank’s possession; (c) sign
Borrower’s name on any invoice or bill of lading relating to any Account, drafts against account debtors, schedules and assignments of Accounts, verifications of Accounts, and notices to account debtors; (d) dispose of any Collateral;
(e) make, settle, and adjust all claims under and decisions with respect to Borrower’s policies of insurance; (f) settle and adjust disputes and claims respecting the accounts directly with account debtors, for amounts and upon terms
which Bank determines to be reasonable; and (g) to file, in its sole discretion, one or more financing or continuation statements and amendments thereto, relative to any of the Collateral without the signature of Borrower where permitted by
law; provided Bank may exercise such power of attorney to sign the name of Borrower on any of the documents described in clause (g) above, regardless of whether an Event of Default has occurred. The appointment of Bank as Borrower’s
attorney in fact, and each and 

  

 - 18 - 

 
every one of Bank’s rights and powers, being coupled with an interest, is irrevocable until all of the Obligations have been fully repaid and performed
and Bank’s obligation to provide Credit Extensions hereunder is terminated. 
  
 9.3 Accounts Collection. At any time after the occurrence and during the continuance of an Event of Default, Bank may notify any
Person owing funds to Borrower of Bank’s security interest in such funds and verify the amount of such Account. Borrower shall collect all amounts owing to Borrower for Bank, receive in trust all payments as Bank’s trustee, and immediately
deliver such payments to Bank in their original form as received from the account debtor, with proper endorsements for deposit. 
  
 9.4 Bank Expenses. If Borrower fails to pay any amounts or furnish any required proof of payment due to third persons or entities,
as required under the terms of this Agreement, then Bank may do any or all of the following after reasonable notice to Borrower: (a) make payment of the same or any part thereof; (b) set up such reserves under the Revolving Line as Bank
deems necessary to protect Bank from the exposure created by such failure; or (c) obtain and maintain insurance policies of the type discussed in Section 6.5 of this Agreement, and take any action with respect to such policies as Bank
deems prudent. Any amounts so paid or deposited by Bank shall constitute Bank Expenses, shall be immediately due and payable, and shall bear interest at the then applicable rate hereinabove provided, and shall be secured by the Collateral. Any
payments made by Bank shall not constitute an agreement by Bank to make similar payments in the future or a waiver by Bank of any Event of Default under this Agreement. 
  
 9.5 Bank’s Liability for Collateral. Bank has no obligation to clean up or otherwise prepare the
Collateral for sale. All risk of loss, damage or destruction of the Collateral shall be borne by Borrower. 
  
 9.6 No Obligation to Pursue Others. Bank has no obligation to attempt to satisfy the Obligations by collecting them from any other
Person liable for them and Bank may release, modify or waive any collateral provided by any other Person to secure any of the Obligations, all without affecting Bank’s rights against Borrower. Borrower waives any right it may have to require
Bank to pursue any other Person for any of the Obligations. 
  
 9.7 Remedies Cumulative. Bank’s rights and remedies under this Agreement, the Loan Documents, and all other agreements shall be cumulative. Bank shall have all other rights and remedies not inconsistent
herewith as provided under the Code, by law, or in equity. No exercise by Bank of one right or remedy shall be deemed an election, and no waiver by Bank of any Event of Default on Borrower’s part shall be deemed a continuing waiver. No delay by
Bank shall constitute a waiver, election, or acquiescence by it. No waiver by Bank shall be effective unless made in a written document signed on behalf of Bank and then shall be effective only in the specific instance and for the specific purpose
for which it was given. Borrower expressly agrees that this Section may not be waived or modified by Bank by course of performance, conduct, estoppel or otherwise. 
  
 9.8 Demand; Protest. Except as otherwise provided in this Agreement, Borrower waives demand, protest,
notice of protest, notice of default or dishonor, notice of payment and nonpayment and any other notices relating to the Obligations. 
  

	 	10.	NOTICES. 

  
 Unless otherwise provided in this Agreement, all notices or demands by any party relating to this Agreement or any other agreement entered
into in connection herewith shall be in writing and (except for financial statements and other informational documents which may be sent by first-class mail, postage prepaid) shall be personally delivered or sent by a recognized overnight delivery
service, certified mail, postage prepaid, return receipt requested, or by telefacsimile to Borrower or to Bank, as the case may be, at its addresses set forth below: 
  

			
	 If to Borrower:
	  	NEUROBIOLOGICAL TECHNOLOGIES, INC.
	 	  	2000 Powell Street, Suite 800
	 	  	Emoryville, CA 94608
	 	  	Attn: Treasurer
	 	  	FAX: (510) 595-6006

  

 - 19 - 

			
		
	 With a copy to:
	  	HellerEhrmanLLP
	 	  	4350 La Jolla Village Drive, 7th Floor
	 	  	San Diego, CA 92122
	 	  	Attn: Stephen C. Ferruolo, Esq.
	 	  	FAX: (858) 450-8499
		
	 If to Bank:
	  	Comerica Bank
	 	  	2321 Rosecrans Ave., Suite 5000
	 	  	El Segundo, CA 90245
	 	  	Attn: Manager
	 	  	FAX: (310) 297-2290
		
	 with a copy to:
	  	Comerica Bank
	 	  	Technology & Life Sciences Division
	 	  	5 Palo Alto Square, Suite 800
	 	  	3000 El Camino Real
	 	  	Palo Alto, CA 94306
	 	  	Attn: Rob Ways – Vice President
	 	  	FAX: (650) 213-1710

  
 The parties hereto may
change the address at which they are to receive notices hereunder, by notice in writing in the foregoing manner given to the other. 
  

	 	11.	CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER. 

  
 This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of California, without regard to
principles of conflicts of law. Each of Borrower and Bank hereby submits to the exclusive jurisdiction of the state and Federal courts located in the County of Santa Clara, State of California. BANK AND BORROWER EACH ACKNOWLEDGE THAT THE RIGHT TO
TRIAL BY JURY IS A CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED. EACH OF THEM, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT, WITH COUNSEL OF THEIR CHOICE, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT ANY OF THEM MAY HAVE
TO A TRIAL BY JURY IN ANY LITIGATION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY RELATED INSTRUMENT OR LOAN DOCUMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR ANY COURSE OF CONDUCT, DEALING, STATEMENTS (WHETHER ORAL OR
WRITTEN), OR ACTION OF ANY OF THEM. THESE PROVISIONS SHALL NOT BE DEEMED TO HAVE BEEN MODIFIED IN ANY RESPECT OR RELINQUISHED BY BANK OR BORROWER, EXCEPT BY A WRITTEN INSTRUMENT EXECUTED BY EACH OF THEM. 
  

	 	12.	REFERENCE PROVISION. 

  
 The parties prefer that any dispute between them be resolved in litigation subject to a Jury Trial Waiver as set forth in Section 11
of this Agreement, but the availability of that process is in doubt because of the opinion of the California Court of Appeal in Grafton Partners LP v. Superior Court, 9 Cal.Rptr.3d 511. This Reference Provision will be applicable until the
California Supreme Court completes its review of that case, and will continue to be applicable if either that court or a California Court of Appeal publishes a decision holding that a pre-dispute Jury Trial Waiver provision similar to that contained
in the Loan Documents is invalid or unenforceable. Delay in requesting appointment of a referee pending review of any such decision, or participation in litigation pending review, will not be deemed a waiver of this Reference Provision. 

 
 12.1 Mechanics. 
  
 (a) Other than (i) nonjudicial foreclosure of security
interests in real or personal property, (ii) the appointment of a receiver or (iii) the exercise of other provisional remedies (any of which may be 

  

 - 20 - 

 
initiated pursuant to applicable law), any controversy, dispute or claim (each, a “Claim”) between the parties arising out of or relating to this
Agreement or any other document, instrument or agreement between the Bank and the undersigned (collectively in this Section, the “Loan Documents”), will be resolved by a reference proceeding in California in accordance with the provisions
of Section 638 et seq. of the California Code of Civil Procedure (“CCP”), or their successor sections, which shall constitute the exclusive remedy for the resolution of any Claim, including whether the Claim is subject to the
reference proceeding. Except as otherwise provided in the Loan Documents, venue for the reference proceeding will be in the Superior Court or Federal District Court in the County or District where venue is otherwise appropriate under applicable law
(the “Court”). 
  
 (b) The referee
shall be a retired Judge or Justice selected by mutual written agreement of the parties. If the parties do not agree, the referee shall be selected by the Presiding Judge of the Court (or his or her representative). A request for appointment of a
referee may be heard on an ex parte or expedited basis, and the parties agree that irreparable harm would result if ex parte relief is not granted. The referee shall be appointed to sit with all the powers provided by law. Each party shall
have one peremptory challenge pursuant to CCP §170.6. Pending appointment of the referee, the Court has power to issue temporary or provisional remedies. 
  

(c) The parties agree that time is of the essence in conducting the reference proceedings. Accordingly, the referee shall be requested
to (a) set the matter for a status and trial-setting conference within fifteen (15) days after the date of selection of the referee, (b) if practicable, try all issues of law or fact within ninety (90) days after the date of the
conference and (c) report a statement of decision within twenty (20) days after the matter has been submitted for decision. Any decision rendered by the referee will be final, binding and conclusive, and judgment shall be entered pursuant
to CCP §644. 
  
 (d) The referee will have
power to expand or limit the amount and duration of discovery. The referee may set or extend discovery deadlines or cutoffs for good cause, including a party’s failure to provide requested discovery for any reason whatsoever. Unless otherwise
ordered, no party shall be entitled to “priority” in conducting discovery, depositions may be taken by either party upon seven (7) days written notice, and all other discovery shall be responded to within fifteen (15) days after
service. All disputes relating to discovery which cannot be resolved by the parties shall be submitted to the referee whose decision shall be final and binding. 
  
 12.2 Procedures. Except as expressly set forth in this Agreement, the referee shall determine the
manner in which the reference proceeding is conducted including the time and place of hearings, the order of presentation of evidence, and all other questions that arise with respect to the course of the reference proceeding. All proceedings and
hearings conducted before the referee, except for trial, shall be conducted without a court reporter, except that when any party so requests, a court reporter will be used at any hearing conducted before the referee, and the referee will be provided
a courtesy copy of the transcript. The party making such a request shall have the obligation to arrange for and pay the court reporter. Subject to the referee’s power to award costs to the prevailing party, the parties will equally share the
cost of the referee and the court reporter at trial. 
  
 12.3 Application of Law. The referee shall be required to determine all issues in accordance with existing case law and the statutory laws of the State of California. The rules of evidence applicable to proceedings at law in the
State of California will be applicable to the reference proceeding. The referee shall be empowered to enter equitable as well as legal relief, provide all temporary or provisional remedies, enter equitable orders that will be binding on the parties
and rule on any motion which would be authorized in a trial, including without limitation motions for summary judgment or summary adjudication . The referee shall issue a decision at the close of the reference proceeding which disposes of all claims
of the parties that are the subject of the reference. The referee’s decision shall be entered by the Court as a judgment or an order in the same manner as if the action had been tried by the Court. The parties reserve the right to appeal from
the final judgment or order or from any appealable decision or order entered by the referee. The parties reserve the right to findings of fact, conclusions of laws, a written statement of decision, and the right to move for a new trial or a
different judgment, which new trial, if granted, is also to be a reference proceeding under this provision. 
  
 12.4 Repeal. If the enabling legislation which provides for appointment of a referee is repealed (and no successor statute is
enacted), any dispute between the parties that would otherwise be determined by reference procedure will be resolved and determined by arbitration. The arbitration will be conducted by a retired judge or Justice, in accordance with the California
Arbitration Act §1280 through §1294.2 of the CCP as 

  

 - 21 - 

 
amended from time to time. The limitations with respect to discovery set forth above shall apply to any such arbitration proceeding. 
  
 12.5 THE PARTIES RECOGNIZE AND AGREE THAT ALL DISPUTES
RESOLVED UNDER THIS REFERENCE PROVISION WILL BE DECIDED BY A REFEREE AND NOT BY A JURY, AND THAT THEY ARE IN EFFECT WAIVING THEIR RIGHT TO TRIAL BY JURY IN AGREEING TO THIS REFERENCE PROVISION. AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO
CONSULT) WITH COUNSEL OF THEIR OWN CHOICE, EACH PARTY KNOWINGLY AND VOLUNTARILY AND FOR THEIR MUTUAL BENEFIT AGREES THAT THIS REFERENCE PROVISION WILL APPLY TO ANY DISPUTE BETWEEN THEM WHICH ARISES OUT OF OR IS RELATED TO THIS AGREEMENT OR THE LOAN
DOCUMENTS. 
  

	 	13.	GENERAL PROVISIONS. 

  
 13.1 Successors and Assigns. This Agreement shall bind and inure to the benefit of the respective successors and permitted assigns
of each of the parties and shall bind all Persons who become bound as a debtor to this Agreement; provided, however, that neither this Agreement nor any rights hereunder may be assigned by Borrower without Bank’s prior written consent, which
consent may be granted or withheld in Bank’s sole discretion. Bank shall have the right without the consent of or notice to Borrower to sell, transfer, negotiate, or grant participation in all or any part of, or any interest in, Bank’s
obligations, rights and benefits hereunder. 
  
 13.2 Indemnification. Borrower shall defend, indemnify and hold harmless Bank and its officers, employees, and agents against: (a) all obligations, demands, claims, and liabilities claimed or asserted by any other party in
connection with the transactions contemplated by this Agreement; and (b) all losses or Bank Expenses in any way suffered, incurred, or paid by Bank, its officers, employees and agents as a result of or in any way arising out of, following, or
consequential to transactions between Bank and Borrower whether under this Agreement, or otherwise (including without limitation reasonable attorneys’ fees and expenses), except for losses caused by Bank’s gross negligence or willful
misconduct. 
  
 13.3 Time of Essence. Time
is of the essence for the performance of all obligations set forth in this Agreement. 
  
 13.4 Severability of Provisions. Each provision of this Agreement shall be severable from every other provision of this Agreement
for the purpose of determining the legal enforceability of any specific provision. 
  
 13.5 Amendments in Writing, Integration. All amendments to or terminations of this Agreement or the other Loan Documents must be in
writing. All prior agreements, understandings, representations, warranties, and negotiations between the parties hereto with respect to the subject matter of this Agreement and the other Loan Documents, if any, are merged into this Agreement and the
Loan Documents. 
  
 13.6 Counterparts.
This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute
but one and the same Agreement. 
  
 13.7
Survival. All covenants, representations and warranties made in this Agreement shall continue in full force and effect so long as any Obligations remain outstanding or Bank has any obligation to make any Credit Extension to Borrower. The
obligations of Borrower to indemnify Bank with respect to the expenses, damages, losses, costs and liabilities described in Section 13.2 shall survive until all applicable statute of limitations periods with respect to actions that may be
brought against Bank have run. 
  

 - 22 - 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first
above written. 
  

			
	NEUROBIOLOGICAL TECHNOLOGIES, INC.
		
	 By:
	 	 /S/    PAUL E.
FREIMAN

		
	 Title:
	 	 President and Chief Executive Officer

	
	 COMERICA BANK

		
	 By:
	 	 /S/    ROB WAYS

		
	 Title:
	 	 Vice President

  
 [Signature
Page to Loan and Security Agreement] 

			
	 DEBTOR
	  	NEUROBIOLOGICAL TECHNOLOGIES, INC.
		
	 SECURED PARTY:
	  	COMERICA BANK

  
 EXHIBIT A

  
 COLLATERAL DESCRIPTION ATTACHMENT 
 TO LOAN AND SECURITY AGREEMENT 
  
 All personal property of Borrower (herein referred to as “Borrower” or “Debtor”) whether presently existing or hereafter created or
acquired, and wherever located, including, but not limited to: 
  
 (a) all accounts (including health-care-insurance receivables), chattel paper (including tangible and electronic chattel paper), deposit accounts, documents (including negotiable documents), equipment (including all
accessions and additions thereto), general intangibles (including payment intangibles and software), goods (including fixtures), instruments (including promissory notes), inventory (including all goods held for sale or lease or to be furnished under
a contract of service, and including returns and repossessions), investment property (including securities and securities entitlements), letter of credit rights, money, and all of Debtor’s books and records with respect to any of the foregoing,
and the computers and equipment containing said books and records; 
  
 (b) all common law and statutory copyrights and copyright registrations, applications for registration, now existing or hereafter arising, in the United States of America or in any foreign jurisdiction, obtained or to
be obtained on or in connection with any of the foregoing, or any parts thereof or any underlying or component elements of any of the foregoing, together with the right to copyright and all rights to renew or extend such copyrights and the right
(but not the obligation) of Secured Party to sue in its own name and/or in the name of the Debtor for past, present and future infringements of copyright; 
  
 (c) all trademarks, service marks, trade names and service names and the goodwill associated therewith, together with the right to
trademark and all rights to renew or extend such trademarks and the right (but not the obligation) of Secured Party to sue in its own name and/or in the name of the Debtor for past, present and future infringements of trademark; 
  
 (d) all (i) patents and patent applications filed in
the United States Patent and Trademark Office or any similar office of any foreign jurisdiction, and interests under patent license agreements, including, without limitation, the inventions and improvements described and claimed therein,
(ii) licenses pertaining to any patent whether Debtor is licensor or licensee, (iii) income, royalties, damages, payments, accounts and accounts receivable now or hereafter due and/or payable under and with respect thereto, including,
without limitation, damages and payments for past, present or future infringements thereof, (iv) right (but not the obligation) to sue in the name of Debtor and/or in the name of Secured Party for past, present and future infringements thereof,
(v) rights corresponding thereto throughout the world in all jurisdictions in which such patents have been issued or applied for, and (vi) reissues, divisions, continuations, renewals, extensions and continuations-in-part with respect to
any of the foregoing; and 
  
 (e) any and all
cash proceeds and/or noncash proceeds of any of the foregoing, including, without limitation, insurance proceeds, and all supporting obligations and the security therefor or for any right to payment. All terms above have the meanings given to them
in the California Uniform Commercial Code, as amended or supplemented from time to time, including revised Division 9 of the Uniform Commercial Code-Secured Transactions, added by Stats. 1999, c.991 (S.B. 45), Section 35, operative July 1,
2001. 
  
 Notwithstanding the foregoing, the
Collateral shall not include any copyrights, patents, trademarks, servicemarks and applications therefor, now owned or hereafter acquired, or any claims for damages by way of any past, present and future infringement of any of the foregoing
(collectively, the “Intellectual Property”); 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 foregoing (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 Closing Date, include the Intellectual Property to the extent necessary to permit perfection of Bank’s security interest in the
Rights to Payment.

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