Document:

EX-10.1

 Exhibit 10.1 

IN THE UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF MISSISSIPPI 

ABERDEEN DIVISION 
  

			
	 UNITED STATES OF AMERICA, and CONSUMER FINANCIAL
PROTECTION BUREAU,
  
 Plaintiffs,

 
 v.

 
 BANCORPSOUTH BANK,

 
 Defendant.

 
	  	  
  

Case No.
  

CONSENT ORDER

 I. INTRODUCTION 

The parties jointly submit this Consent Order (“Order”) for the approval of and entry by the Court. The Order resolves all claims of
the United States and Consumer Financial Protection Bureau (“Bureau”) (collectively, “Plaintiffs”) simultaneously filed in a Complaint (ECF No. 1) alleging that BancorpSouth Bank violated the Equal Credit Opportunity Act
(“ECOA”), 15 U.S.C. §§ 1691-1691f, and the Fair Housing Act (“FHA”), 42 U.S.C. §§ 3601-3619, by, among other things: (1) unlawfully redlining majority-minority neighborhoods in the Memphis Metropolitan
Statistical Area (“MSA”), as defined below; (2) illegally discriminating against African-American applicants in the underwriting of certain mortgage loans; and (3) illegally discriminating against African-American borrowers in
the pricing of certain mortgage loans. 
 This Court has jurisdiction over the parties and the subject matter of this action. There has been
no factual finding or adjudication with respect to any matter alleged by Plaintiffs. Defendant neither admits nor denies any allegations in Plaintiffs’ Complaint. The parties agree 

 
that full implementation of the terms of this Order will resolve the allegations in Plaintiffs’ Complaint. 

II. BACKGROUND 

Defendant BancorpSouth Bank (the “Bank” or “BancorpSouth”) is a regional depository institution headquartered in Tupelo,
Mississippi. The Bank operates branches in eight states: Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee, and Texas. As of March 31, 2016, the Bank had total assets of $13.9 billion. BancorpSouth Bank is a wholly-owned
subsidiary of BancorpSouth, Inc., a financial holding company. 
 Plaintiffs conducted a joint investigation of BancorpSouth Bank’s
lending practices and concluded that, beginning at least on January 1, 2011, Defendant violated the ECOA and the FHA by, among other things: (1) redlining majority-minority neighborhoods in the Memphis MSA; (2) illegally
discriminating against African-American applicants in the underwriting of certain mortgage loans; and (3) illegally discriminating against African-American borrowers in the pricing of certain mortgage loans. 

The Complaint alleges, among other things, that Defendant’s policies and practices denied an equal opportunity to and discouraged the
residents of majority-minority neighborhoods in the Memphis MSA from seeking mortgage loans on account of the racial composition of those neighborhoods; discriminated against African-American applicants by denying their mortgage loan applications
more often than similarly situated non-Hispanic White (“White”) applicants; and discriminated against African-American applicants by charging them higher prices on their mortgage loans than similarly situated White applicants. In the
provisions of this Order, Defendant has committed to remedying the practices alleged in the Complaint by ensuring that the credit needs of residents located in majority-minority neighborhoods are fairly met in the

  
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future, aiding in the revitalization and stabilization of the housing market in majority-minority neighborhoods, providing redress to alleged victims of underwriting and pricing discrimination,
and ensuring that African-American applicants are treated fairly in the underwriting and pricing of mortgage loans going forward. 
 III.
POSITION OF BANCORPSOUTH 
 Defendant has recently taken a number of steps to improve its compliance management system, reduce
its fair lending risk, and increase its lending in minority areas. These steps include: (1) implementing rate sheets to price loans originated by its Community Banking Department1;
(2) transitioning to centralized underwriting in its Community Banking Department; (3) appointing a Chief Fair Lending Officer with responsibility over the Bank’s fair lending compliance program; (4) appointing a Community
Development Lending Manager with responsibility over meeting the needs of homebuyers in low-to-moderate income and minority communities, and hiring 16 community development mortgage specialists; (5) opening a full-service branch in a
majority-minority neighborhood in the Memphis MSA; (6) providing financial literacy training in the Memphis MSA; (7) implementing enhanced fair lending training; (8) introducing a low down-payment credit product; (9) monitoring
pricing and underwriting outcomes on a quarterly basis; and (10) hiring a new Chief Executive Officer, President, General Counsel, Mortgage Department President, and Chief Banking Officer and Director of Community Lending. 

 
  

1 As used in this Order, the term “Department” encompasses units that the Bank previously
referred to as “Divisions.” 

  
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 The Bank enters into this settlement solely for the purpose of avoiding contested litigation with
the United States and the Bureau, and to instead devote its resources to assisting eligible borrowers with meeting their credit needs. 

IV. DEFINITIONS 

1.        The following definitions apply to this Order: 

a.         “Affected Consumers” means all alleged victims of underwriting
and/or pricing discrimination that occurred between January 1, 2011 and December 31, 2015, who Plaintiffs determine may be entitled to monetary relief from the Settlement Fund to remedy Defendant’s alleged underwriting and/or pricing
discrimination. 
 b.         “Covered Employees” means all of
Defendant’s employees who participate in Defendant’s Mortgage Lending; marketing; or opening, relocating, or closing branches or loan production offices, as well as any manager or senior manager over such employees. 

c.         “Defendant” means BancorpSouth Bank and its successors and
assigns. 
 d.         “Denied Applicants” means African-American
applicants (and any co-applicants) whose Mortgage Loan applications to Defendant’s Community Banking Department were denied between January 1, 2011 and December 31, 2015. 

e.         “Effective Date” is the date on which the Court enters this
Order. 
 f.         “High-minority neighborhood” means a census tract
with a minority population of 80 percent or greater based on 2010 U.S. census data. 

g.         “Majority-minority neighborhood” means a census tract with a
minority population of 50 percent or greater based on 2010 U.S. census data. 

  
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 h.         “Memphis MSA” means
the Memphis, TN-MS-AR Metropolitan Statistical Area. 
 i.         “Mortgage
Loans” means all loans that Defendant is required to report under the Home Mortgage Disclosure Act, 12 U.S.C. §§ 2801-2810. 

j.         “Mortgage Lending” means the provision of Mortgage Loans. 

k.         “Non-objection” means written notification to Defendant that
there is no objection to a proposal by Defendant for a course of action.2 Plaintiffs will endeavor to direct revisions or provide a Non-objection within 30 days of the submission of a proposal by
Defendant. In the event of an objection to a proposal, Defendant will make all revisions directed by Plaintiffs and resubmit the proposal for Non-objection within 14 days. Unless otherwise specified below, Defendant will begin implementation of the
course of action and follow any steps, recommendations, deadlines, and timeframes within 14 days of notification to Defendant of Non-objection. Any material changes to any course of action that is subject to non-objection cannot be made without
Defendant obtaining written notification that there is not an objection to Defendant’s proposed change. 

l.         “Qualified Applicant” means any applicant for a Mortgage Loan who
is qualified for a Mortgage Loan under Defendant’s underwriting standards, and who applies for a Mortgage Loan for a property located in a majority-minority neighborhood in the Memphis MSA that will serve as the borrower’s principal
dwelling. 
  
  

2     Actions taken by the Bureau under this Order, including but not limited to
Non-Objections, will be carried out by the Bureau’s Fair Lending Director, or his/her delegate. 

  
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 m.         “Related Action”
means a private action by or on behalf of one or more plaintiffs or an enforcement action by another governmental agency brought against Defendant based on substantially the same facts alleged in the Plaintiffs’ Complaint. 

V. TERMS OF ORDER 
  

	A.	Nondiscrimination Injunction 

2.        Defendant, including its officers, employees, agents, representatives, assignees, and
successors in interest, and all those in active concert or participation with any of them, is hereby enjoined from engaging in any act or practice that discriminates in any aspect of a residential real estate-related transaction, in violation of the
Fair Housing Act, 42 U.S.C. §§ 3604 and 3605, or in any aspect of a credit transaction, in violation of the Equal Credit Opportunity Act, 15 U.S.C. § 1691(a)(1). 

B.        Fair Lending Compliance Management System (“CMS”) 

CMS Consultant 

3.        Within 30 days of the Effective Date, Defendant must identify an independent third-party
compliance-management-system consultant to assist in the review and revision as necessary of Defendant’s fair lending compliance management system relating to Mortgage Lending (“CMS Consultant”).3 Defendant’s selection of the CMS Consultant will be subject to Plaintiffs’ Non-objection. Within 20 days of Non-objection to the selection of the CMS 

 
  

3 All material required by this Order to be sent to Plaintiffs must be sent by commercial overnight
delivery service addressed as follows: Fair Lending Director, c/o Jeffrey Blumberg, Consumer Financial Protection Bureau, 1700 G Street, NW, Washington, DC 20552; and Sameena Shina Majeed, Chief, Housing and Civil Enforcement Section, Civil Rights
Division, U.S. Department of Justice, 1800 G Street, NW, Suite 7200, Washington, DC 20006, Attn. DJ #188-40-7. The parties may also agree to delivery either electronically or by hand-delivery to the above addresses by courier.

  
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Consultant, Defendant must enter into a contract with the CMS Consultant, subject to Plaintiffs’ Non-objection, requiring the CMS Consultant to conduct a detailed assessment of
Defendant’s fair lending compliance management system relating to Mortgage Lending. The assessment required by this Paragraph must include, at a minimum, a review of: whether any Mortgage Lending-related policies or procedures consider a
prohibited basis under the ECOA or FHA; the underwriting and pricing policies and practices of Defendant’s Community Banking Department relating to Mortgage Lending; Defendant’s policies and practices governing the provision of information
to prospective applicants for mortgages; practices that may pose mortgage redlining risk in the Memphis MSA; and the diversity policies and practices of Defendant in the Memphis MSA. 

4.         Within 75 days of notification of Plaintiffs’ Non-objection to Defendant’s
contract with the CMS Consultant, Defendant must submit to Plaintiffs a detailed written report by the CMS Consultant describing Defendant’s fair lending compliance management system, weaknesses in the system, and recommendations to strengthen
it to ensure that Defendant does not engage in discrimination in violation of the ECOA or the FHA. 
 CMS Plan 

5.         Within 45 days of Defendant’s submission of the CMS Consultant’s written report
pursuant to Paragraph 4, Defendant must submit a written compliance plan (“CMS Plan”) to Plaintiffs, subject to Non-objection by Plaintiffs, the purpose of which is to ensure that Defendant does not engage in discrimination in violation of
the ECOA or the FHA in connection with its Mortgage Lending. The CMS Plan must include, at a minimum, the following components, as necessary informed by findings by the CMS Consultant: 

  
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 a.         steps to effectively and
promptly review and revise Defendant’s current Mortgage Lending policies and practices to ensure compliance with the ECOA and the FHA; 

b.         adoption or revision of diversity policies and practices; 

c.         implementation or revision of fair lending training as set forth in
Paragraph 7; 
 d.         adoption or revision of written policies and procedures
regarding the provision of information and assistance to individuals who apply for mortgage credit or inquire about the possibility of applying for mortgage credit. A primary purpose of these policies and procedures will be to ensure that Defendant
provides equal information and assistance regardless of race or other prohibited characteristics; 

e.         adoption or revision of a formal process for ongoing monitoring of
Defendant’s Mortgage Lending for compliance with the ECOA and the FHA and for taking appropriate corrective action when necessary, including but not limited to the statistical analyses described in Paragraphs 14 and 19; 

f.         implementation or revision of regular audits of Defendant’s Mortgage
Lending, to occur at least annually, internally by Defendant’s audit department or by an independent party, to assess compliance with the ECOA and the FHA. Defendant must provide the written findings of these audits to Plaintiffs as part of the
Annual Reports referenced in Paragraph 77; and 
 g.         implementation or
revision of a consumer complaint resolution program to address consumer complaints alleging discrimination in Mortgage Lending. Defendant must provide to Plaintiffs documentation from this complaint resolution program,

  
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including documentation of any individual complaints alleging discrimination and any resolution, as part of the Annual Reports referenced in Paragraph 77. 

Training 

6.         Within 21 days of the Effective Date, Defendant will provide to all Covered Employees and
members of its Board of Directors (“Board”) an explanation and copies of this Order and the Complaint in this matter, and allow an opportunity for such employees and members to have any questions concerning this Order and the Complaint
answered. 
 7.         Defendant has provided fair lending training on an annual basis to all
lending personnel, including senior management. Defendant will hire an independent, qualified third party to provide the fair lending training that is required by this Paragraph to all Covered Employees to ensure that their activities are conducted
in a nondiscriminatory manner. This training will address at a minimum Defendant’s obligations under the ECOA and FHA, the subject of implicit racial bias, and Defendant’s responsibilities under this Order. In addition to receiving the
training for Covered Employees described in this Paragraph, Defendant’s senior management, as defined from time to time by Defendant’s Board, and Defendant’s Board will receive specialized training targeted to their oversight function
on conduct that could constitute redlining, underwriting discrimination, or pricing discrimination, and how to detect, prevent, and remedy such discrimination. During the training, the Defendant will provide to each participant a copy of this Order.
The training must require participants to verify participation and demonstrate proficiency. The training may be provided either electronically or in-person. 

8.         Defendant shall submit the proposed independent qualified third party and proposed training
curriculum to Plaintiffs within 30 days after the Effective Date, and Defendant shall provide the training within 30 days following Non-objection by Plaintiffs. 

9.         Defendant will bear all costs associated with the training(s). 

  
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 10.       Defendant will secure from each individual required to
have training pursuant to Paragraph 7 a signed statement acknowledging that s/he has received a copy of this Order and the Complaint and has completed the fair lending training(s). These statements will be substantially in the form of Appendix A
(Acknowledgment) and Appendix B (Fair Lending Training). The signatures required by Paragraphs 7 and 10 may be made electronically. 

11.       Defendant will also provide each new Covered Employee or Board member a copy of this Order and the
Complaint, provide an opportunity to have any questions answered, and secure an acknowledgement no later than 30 business days after beginning in his or her employment in that position. Defendant will further provide each such individual with the
training referenced in Paragraph 7 and secure an acknowledgment within 60 days of the date the individual begins his or her employment in that position. 
  

	C.	Pricing and Underwriting Compliance Plan 

 12.      
Within 60 days of the Effective Date, Defendant must submit to Plaintiffs for Non-objection a plan setting forth the actions Defendant has already taken and plans to take to comply with Paragraphs 13 – 42 of this Order (“Pricing and
Underwriting Compliance Plan”). The Pricing and Underwriting Compliance Plan must include, at a minimum: 

a.         The Community Banking Department pricing and underwriting policies and
procedures and monitoring programs required by Paragraphs 13, 17 and 18; 

b.         Proposed methodologies for the semi-annual analyses required by Paragraphs
14 and 19; 
 c.         Proposed plans for remuneration of affected consumers and
additional corrective action if statistically significant disparities are found, as required by Paragraphs 15 and 20; and 

  
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 d.         A proposed plan for offering
credit to denied African-American applicants, as required by Paragraphs 37 and 39. 
  

	D.	Pricing Policies and Monitoring 

 13.       Defendant will
implement policies and procedures for the pricing of all Mortgage Loans to natural persons originated by its Community Banking Department. Defendant will utilize rate sheets to price all Mortgage Loans to natural persons originated by its Community
Banking Department that exclusively base pricing on objective credit and borrower characteristics supported by a legitimate business need. Defendant must maintain a policy that describes its use of rate sheets. The policy must contain requirements
to retain a copy of the rate sheet in effect at the time the Mortgage Loan price was set and a list of the borrower and loan characteristics relied on in setting the loan price. To the extent Defendant makes exceptions to these rate sheets,
Defendant must maintain policies and procedures that: (1) specifically define the circumstances when Defendant allows exceptions; (2) require documentation appropriate for each exception that is sufficient to effectively monitor compliance
with the exception policies and procedures, including providing the basis for granting the exception and details and/or documentation of the particular circumstances supporting the use of the exception; and (3) require document retention that,
at a minimum, complies with the requirements of Regulation B, 12 C.F.R. pt. 1002. Defendant will submit the policies and procedures described in this Paragraph to Plaintiffs for Non-objection. In the event Defendant seeks to alter the policies and
procedures required by this Paragraph during the term of the Order, it must submit the proposed changes to Plaintiffs for Non-objection. 

14.       Defendant conducts periodic fair lending statistical analyses of loan pricing. Defendant must conduct
semi-annual portfolio-wide statistical analysis of the note rates of Mortgage Loans to natural persons originated by its Community Banking Department for 

  
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disparities based on, at a minimum, race. The controls in this regression analysis will be limited to the factors considered in pricing loans set forth in Defendant’s rate sheets, unless
Plaintiffs Non-object to the use of additional controls. Defendant will complete the first semi-annual analysis by August 15, 2017. The first semi-annual analysis will analyze all Mortgage Loans to natural persons originated by the Community
Banking Department since implementation of the pricing policies and procedures set forth in Paragraph 13 through June 30, 2017, and each subsequent semi-annual analysis will review data for every six-month period thereafter. The methodology for
this statistical analysis shall be provided to Plaintiffs no later than 60 days after the Effective Date and will be subject to Non-objection by Plaintiffs. 

15.       If any statistical analysis required by Paragraph 14 discloses statistically significant disparities
in the pricing of Mortgage Loans from natural persons in its Community Banking Department on the basis of race, Defendant will within 45 days of the analysis: (a) remunerate affected consumers using a method subject to Plaintiffs’
Non-objection; and (b) take additional corrective action, such as proposing steps to modify its pricing policies and procedures as necessary to prevent such disparities going forward, subject to Non-objection by Plaintiffs, and education,
discipline, or termination of employee(s), as deemed appropriate. 
 16.       Within 90 days of the end of
each six-month period, Defendant must provide to Plaintiffs the results of the most recent semi-annual analysis, the data used in the analysis, and documentation of any corrective action taken. 

 

	E.	Underwriting Policies and Monitoring 

 17.       Subject
to Plaintiffs’ Non-objection, Defendant must maintain specific race-neutral underwriting guidelines, policies, and procedures for Mortgage Loans to natural persons originated by its Community Banking Department that are designed to ensure
consistent application of legitimate underwriting criteria and avoid unlawful discrimination. To the extent 

  
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Defendant makes exceptions to these guidelines, Defendant must maintain policies and procedures that: (1) specifically define the circumstances when Defendant allows exceptions;
(2) require documentation appropriate for each exception that is sufficient to effectively monitor compliance with the exceptions policies, including providing the basis for granting the exception and details and/or documentation of the
particular circumstances supporting the use of the exception; and (3) require document retention that, at a minimum, complies with the requirements of Regulation B, 12 C.F.R. pt. 1002. 

18.       Defendant has implemented a program of controls and monitoring for compliance with its Community
Banking Department underwriting policies and procedures, including but not limited to its current practice of second reviews of all Mortgage Loan application denials. The program shall be modified as necessary to ensure that any loan that satisfies
the Bank’s underwriting criteria and is otherwise in compliance with the Bank’s underwriting policies and procedures will be funded, and that any loan that is not in compliance with the policies and procedures will not be funded. This
program of controls and monitoring shall be subject to Plaintiffs’ Non-objection. 
 19.       Defendant
conducts periodic fair lending statistical analyses of underwriting outcomes. Defendant must conduct a semi-annual analysis of the underwriting of Mortgage Loan applications from natural persons in its Community Banking Department for disparities
based on, at a minimum, race. The controls in this regression analysis will be limited to the legitimate and consistently applied underwriting criteria described in Defendant’s underwriting guidelines, unless Plaintiffs Non-object to the use of
additional controls. Defendant will complete the first semi-annual analysis by August 15, 2017. The first semi-annual analysis will analyze all Mortgage Loan applications from natural persons in its Community Banking Department since

  
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implementation of the underwriting policies and procedures set forth in Paragraph 17 through June 30, 2017, and each subsequent semi-annual analysis will review data for every six-month
period thereafter. The methodology for this semi-annual analysis shall be provided to Plaintiffs no later than 60 days after the Effective Date and will be subject to Non-objection by Plaintiffs. 

20.       If any analysis required by Paragraph 19 discloses statistically significant disparities in the
underwriting of Mortgage Loan applications to natural persons in the Community Banking Department based on race, Defendant must within 45 days of the analysis: (a) remunerate affected consumers using a method subject to Plaintiffs’
Non-objection; and (b) take additional corrective action, such as proposing steps to modify its underwriting policies and procedures as necessary to prevent such disparities going forward, subject to Non-objection by Plaintiffs, and education,
discipline, or termination of employee(s), as deemed appropriate. 
 21.       Within 90 days of the end of
each six-month period, Defendant must provide to Plaintiffs the results of the most recent statistical analysis, the data used in the analysis, and documentation of any corrective action taken. 

 

	F.	Settlement Administrator 

 22.       Within 30 days of the
Effective Date, Defendant must propose a Settlement Administrator (“Administrator”) to Plaintiffs. The selection of the Administrator will be subject to Plaintiffs’ Non-objection. Within 30 days of Plaintiffs’ Non-objection,
Defendant must execute a contract with the Administrator to conduct the activities set forth in the following paragraphs. The terms of the Administrator’s contract, statement of work, and/or business rules or similar documents related to the
Administrator’s duties pursuant to this Order will be subject to Plaintiffs’ Non-objection. Defendant must bear all costs and expenses of the Administrator. The Administrator’s contract must require the Administrator to comply with
the provisions of this Order as applicable to it and must require it to work cooperatively with Plaintiffs in the 

  
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conduct of its activities, including reporting regularly to and providing all reasonably requested information to Plaintiffs. The contract must further require the Administrator to comply with
all confidentiality and privacy restrictions applicable to the party who supplies information and data to it. 

23.       In the event Plaintiffs have reason to believe that the Administrator is not materially complying with
the terms of its contract with Defendant, the parties must meet and confer for the purpose of mutually agreeing upon a course of action to effect the Administrator’s material compliance with its contract or to replace the Administrator. In the
event that the parties are unable to reach agreement, any party may present the matter to this Court for resolution. 

24.       Defendant must allow the Administrator access to relevant Mortgage Loan files, borrower information,
and any other information necessary for the purpose of accomplishing its duties under this Order. 
 25.      
The Administrator’s contract must require the Administrator, as part of its operations, to establish cost-free means for individuals eligible for relief pursuant to this Order to contact it, including an email address, a website, a toll-free
telephone number, and means for persons with disabilities to communicate effectively, including TTY. 
  

	G.	Settlement Fund 

 26.       Defendant must deposit in an
interest-bearing escrow account $2,776,890 for the purpose of providing redress to Affected Consumers for harm they may have suffered as a result of Defendant’s alleged pricing and underwriting discrimination (“Settlement Fund”).
Title to this account must be in the name of “BancorpSouth Bank for the benefit of Affected Consumers pursuant to Order of the Court in Civil Action No.
                    .” Defendant must provide to Plaintiffs written verification of the deposit within five days of the Effective Date.
Any interest that accrues will become part of the Settlement Fund and must be utilized and disposed of as set forth 

  
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herein. Any taxes, fees or other costs incurred by the Settlement Fund must be paid by Defendant. 

27.       Plaintiffs will request from Defendant information and data Plaintiffs reasonably believe will assist
in identifying Denied Applicants and Affected Consumers to be contacted by the Administrator (“Identified Consumers”) and determining any monetary and other damages, including but not limited to a database of all Mortgage Loan applications
received by Defendant’s Community Banking Department from January 1, 2011 through December 31, 2015; the name; Social Security number or Tax Identification Number; property address; and mailing address for the primary applicant and
each co-applicant(s) (if any) for each listed loan application. This information and data will be used by Plaintiffs only for the purposes of enforcing and implementing this Order. Within 30 days of the request, Defendant will supply the requested
information and data that is within its control. 
 28.       Plaintiffs and the Administrator may request
from Defendant any additional information they reasonably believe will assist them in identifying Affected Consumers. Within 15 days of any such request, Defendant must provide to Plaintiffs and the Administrator all requested information that is
within its control, and for information not within its control, identify other parties that may have the information. Upon reasonable notice, Defendant must allow Plaintiffs access to Defendant’s records and files to verify the accuracy of the
information provided or to otherwise identify Affected Consumers. 
 29.       After receipt of all the
information required to be provided by Paragraph 27, Plaintiffs will provide the Administrator with the initial estimate of the amount each Identified Consumer will receive from the Settlement Fund (“Initial Payment List”). The total
amount of the Settlement Fund shall not be altered based on the number of Identified Consumers or the 

  
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initial estimates of the amounts they will receive. No individual may request a review by the Court, the Administrator, or any party of the payment amounts. 

30.       The contract with the Administrator must require the Administrator to adopt effective methods, as
requested by Plaintiffs, to identify up-to-date addresses and other contact information; to locate each Identified Consumer; obtain such information as Plaintiffs reasonably consider necessary to confirm their identities and eligibility; and to
provide to Plaintiffs a list of Identified Consumers whose identities and eligibility have been confirmed (“Confirmed Consumers”) within six months from the date Plaintiffs provide the Initial Payment List. 

31.       After the Administrator provides to Plaintiffs a list of Confirmed Consumers, Plaintiffs will provide
to the Administrator a list with the final amount each Confirmed Consumer will receive from the Settlement Fund (“Final Payment List”). Within 30 days after its receipt of the Final Payment List from Plaintiffs, the Administrator shall
deliver payments to Confirmed Consumers in the amounts on the Final Payment List. 
 32.       The
Administrator’s contract must also require it to distribute funds from the Settlement Fund to Confirmed Consumers that may not be on the Final Payment List, as directed by Plaintiffs. The total amount paid to Confirmed Consumers will not exceed
the total amount of the Settlement Fund, including accrued interest. The total amount of the Settlement Fund will not be altered based on the number of Confirmed Consumers or the amounts they receive. No individual, agency, or entity may request
that any court, the Administrator, Plaintiffs, or Defendant review final payment amounts. 
 33.       Payment
of redress to any individual under this Order may not be conditioned on that person waiving any right. Defendant will not be entitled to a set-off, or any other reduction, of the amount of payments to Confirmed Consumers because of any debts owed by
the 

  
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Confirmed Consumers. Defendant also will not refuse to make a payment based on a release of legal claims or account modification previously signed by any Confirmed Consumers. 

34.       The Administrator’s responsibility to make payments to Confirmed Consumers may be discharged on a
rolling basis with approval from Plaintiffs. Any checks that are returned with a forwarding address shall promptly be re-sent to that new forwarding address. The Administrator’s contract shall also require it to further conduct a reasonable
search and attempt to redeliver any payment that is returned to the Administrator as undeliverable, or not deposited, within 60 days. The contract with the Administrator must require the Administrator to adopt effective methods, as requested by
Plaintiffs, to maximize the number of Confirmed Consumers who cash or negotiate their checks. 
 35.      
Once Plaintiffs determine that distributing any remaining money in the Settlement Fund to Confirmed Consumers, including accrued interest, is impracticable, the Administrator must distribute those funds, following the process described below, to
organization(s) that provide services including credit and housing counseling (including assistance in obtaining loan modification and preventing foreclosure); legal representation of borrowers seeking to obtain a loan modification or to prevent
foreclosure; and financial literacy, and other related educational programs targeted at African-American individuals in communities where Defendant operates (“Qualified Organization”). Recipient(s) of such funds must not be related to
Defendant or any entity owned by Defendant. Before making a final selection of the Qualified Organization(s), Defendant must obtain a proposal from each organization on how it will use the funds consistent with the above-stated purposes and submit
such proposal(s) to the United States. Within 30 days after the Payment Expiration Date, Defendant will submit the proposals from the Qualified Organizations, and the proposed amount of funds each Organization would receive, to the United

  
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States. Defendant shall consult with and obtain the Non-objection of the United States to the proposals. Within 30 days of Non-objection by the United States to the proposals, the Defendant and
the United States shall seek the Court’s approval of the selection of the Qualified Organizations and the amount to be distributed to each Qualified Organization prior to distribution of the remaining funds. The United States and the Defendant
shall provide the Court with information regarding how the Qualified Organizations will use the funds consistent with the above-stated purposes. Defendant must require that fund recipients submit to the United States a detailed report on how these
funds are utilized within one year after the funds are distributed, and every year thereafter until the funds are exhausted. Defendant must also require that Qualified Organization(s) return the full amount of funds received for redistribution to
other Qualified Organization(s) approved to receive funds in the event that they fail to submit such report(s). 

36.       The contract with the Administrator must require the Administrator to maintain the cost free means for
consumers to contact it described in Paragraph 25 and finalize distribution of the payments described in Paragraphs 31-32 and 34 within 13 months of the date the Plaintiffs provide the Final Payment List to the Administrator in accordance with
Paragraph 31 (“Payment Expiration Date”). Confirmed Consumers shall have until the Payment Expiration Date to request reissuance of payments that have not been deposited. 

 

	H.	Credit Offers 

 37.       Defendant must make credit
offers as defined in Paragraph 39 to Denied Applicants as outlined below. 
 38.       Plaintiffs will provide
the Administrator a list of Denied Applicants. The Administrator’s contract must require it to adopt effective methods, as requested by Plaintiffs, to identify up-to-date addresses and other contact information for Denied Applicants and to
provide 

  
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this information to Plaintiffs within 60 days of the date Plaintiffs provide the list of Denied Applicants pursuant to this Paragraph. 

39.       Within 90 days of the date that the Administrator has identified up-to-date addresses and contact
information as set forth in Paragraph 38, Defendant must extend to each Denied Applicant an offer to apply for a Mortgage Loan product of the Denied Applicant’s choosing under Defendant’s underwriting guidelines required by Paragraph 17 of
this Order with the following: (a) an interest rate that is the lower of the interest rate available at the time the initial application was denied or the current interest rate less 100 basis points; or (b) the subsidies identified in
Paragraph 57(a), (b), (c), and (e) in an amount that is comparable to the value of the difference between the current interest rate and the interest rate reduction required in subparagraph (a) (“credit offer”). Defendant’s
correspondence with Denied Applicants will be subject to Plaintiffs’ Non-objection, and will include the minimum objective underwriting criteria for each Mortgage Loan product offered by Defendant’s Community Banking Department. Defendant
will pay and/or waive all required application costs and fees for applications that result from offers made pursuant to this Paragraph. 

40.       Acceptance of the credit offer described in Paragraph 39 may not be conditioned on the waiver of any
right. 
 41.       For all Denied Applicants who accept the offer to re-apply for credit and are denied by
Defendant, Defendant must provide to Plaintiffs the specific reason(s) for the denial and, if requested by Plaintiffs, a copy of the loan application file. 

42.       No provision of this Order requires Defendant to make any unsafe or unsound loan or to make a loan to
a person who is not qualified for the loan based upon lawful, nondiscriminatory terms; however, Defendant may choose to apply more flexible underwriting 

  
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standards in connection with these credit offers, so long as those standards comport with safe and sound lending practices. 

 

	I.	Community Reinvestment Act Assessment Area 

 43.       In
January 2013, Defendant amended its Community Reinvestment Act (“CRA”) assessment area in the Memphis MSA to include all of Tipton, Shelby, Fayette, DeSoto, and Tate counties. Defendant must continue to include all of these counties in its
CRA assessment area during the term of this Order. 
 44.       Defendant must not eliminate majority-minority
neighborhoods from its CRA assessment area within the Memphis MSA throughout the term of this Order. Nothing in this Order precludes Defendant from further expanding its CRA assessment area within the Memphis MSA in a manner consistent with the
provisions of the CRA and its implementing regulations. Defendant will provide written notice to Plaintiffs of any changes in its CRA assessment area within the Memphis MSA at the same time such notice is provided to its CRA regulator. Plaintiffs
will raise any concerns with such proposed changes to its CRA assessment area with Defendant and its CRA regulator within 30 days. 

45.       Defendant will ensure that all of its policies, publications, and marketing materials that refer to
the geographic area in which it lends in the Memphis MSA describe an area no smaller than the assessment area described in Paragraph 43. 
  

	J.	Credit Needs Assessment and Redlining Remedial Plan 

46.       Within 30 days of the Effective Date, Defendant must propose an independent third-party consultant
(“CNA Consultant”) to conduct an assessment of the Mortgage Loan needs in majority-minority neighborhoods within its CRA assessment area in the Memphis MSA. The selection of the CNA Consultant will be subject to Non-objection by
Plaintiffs. This credit needs assessment must include: (a) an analysis of the most recent available demographic and 

  
 21 

 
socioeconomic data about the majority-minority neighborhoods; (b) an evaluation of the Mortgage Loan needs of, and corresponding lending opportunities in, these neighborhoods, including but
not limited to the need for and feasibility of alternative mortgage and other credit products; (c) consideration of how Defendant’s lending operations can be expanded to serve the remedial goals of providing increased Mortgage Lending in
majority-minority neighborhoods in the Memphis MSA and promoting the revitalization and stabilization of the housing market in those neighborhoods; (d) a thorough review of the availability and feasibility of relevant federal, state, and local
governmental programs and evaluation of how participation in each of them would assist in achieving the remedial goals of this Order; and (e) meetings with representatives of community organizations significantly involved in promoting fair
lending, home ownership, or residential development in affected majority-minority neighborhoods. 
 47.      
Within 60 days of Plaintiffs’ Non-objection to the selection of the CNA Consultant, Defendant must submit to Plaintiffs a written report by the CNA Consultant (“CNA Consultant Report”) of this credit needs assessment containing
recommendations that address how each requirement of this Order set forth in Paragraphs 50 - 70 should be carried out to best achieve the remedial goals of this Order. 

48.       Within 60 days of the submission of the CNA Consultant’s Report, Defendant must submit to
Plaintiffs a Redlining Remedial Plan. The Redlining Remedial Plan must specify, in light of the recommendation made by the CNA Consultant, the actions Defendant proposes to take to comply with the requirements in Paragraphs 50 - 70 of this Order to
best achieve the remedial goals of this Order. The Redlining Remedial Plan must also specify timeframes and deadlines for implementation of these actions. As specified below, the proposals within the Remedial Plan will be subject to Plaintiffs’
Non-objection. 

  
 22 

 49.       Within 90 days of the Effective Date, Defendant must hire
or designate and retain a full-time Director of Community Lending. The Director of Community Lending must have primary responsibility for overseeing the continued development of Defendant’s Mortgage Lending in majority-minority neighborhoods in
the Memphis MSA consistent with the action steps contained in the Remedial Plan; coordinating Defendant’s involvement in community lending initiatives and outreach programs; serving as a resource to lending staff to encourage and develop more
Mortgage Lending within majority-minority neighborhoods in the Memphis MSA; promoting financial education and counseling; and building relationships with community groups. The Director of Community Lending must be a member of management and will
report directly to the Board (or the Special Compliance Committee). 
  

	K.	Physical Expansion to Serve Minority Neighborhoods 

50.       On November 16, 2015, Defendant opened a full service branch in a majority-minority neighborhood
in the Memphis MSA. Subject to any applicable approval of the appropriate regulator, Defendant must open or acquire one additional branch or Mortgage Loan production office (“LPO”) in the Memphis MSA. The branch or LPO must be in a
retail-oriented space in a visible location accessible to concentrations of owner-occupied residential properties and located in a high-minority neighborhood. 

51.       Defendant must propose a location of this branch or LPO based on the high-minority neighborhoods that
are in need of credit and, as applicable, banking services, and provide Plaintiffs with its rationale for choosing the particular location. The specific site of the branch or LPO will be subject to the Non-objection of Plaintiffs. Defendant may
choose whether to satisfy the requirements of Paragraph 50 with either a branch or an LPO, at its sole discretion. 

52.       Defendant must make all reasonable efforts to open the additional branch or LPO required by Paragraph
50 within 12 months of the Effective Date. 

  
 23 

 53.       The additional branch or LPO must provide, at a minimum,
the full range of hours of operation typically offered at Defendant’s branches. There must be at least one full-time Mortgage Department loan originator and one full-time Community Banking Department loan officer at the branch or LPO. 

54.       Nothing in this Order precludes Defendant from opening or acquiring additional branch offices or LPOs,
and nothing contained in the report provided by the CNA Consultant would require Defendant to open more than the one additional branch or LPO required by Paragraph 50. Defendant must evaluate any future opportunities for expansion in the Memphis MSA
not required by this Order, whether by acquisition or opening new offices, in a manner consistent with achieving the remedial goals of this Order and must notify Plaintiffs of any plans to open or acquire any new branches or other offices in the
Memphis MSA during the term of this Order at the same time that it notifies its prudential regulator(s), so that Plaintiffs may raise any concerns with Defendant and its prudential regulator(s) before regulatory approval is granted. However,
Plaintiffs acknowledge that their opportunity to review any application by Defendant to open or acquire new branches is not intended to prevent the application from receiving expedited processing pursuant to 12 C.F.R. § 303.43, or any similar
regulation. 
 55.       Defendant must propose in the Redlining Remedial Plan how it has and will comply with
the requirements of Paragraphs 50 -54. This proposal will be subject to Non-objection by Plaintiffs. 
  

	L.	Loan Subsidy Program 

 56.       Defendant must invest
$4,000,000 in a program to extend Mortgage Loans to Qualified Applicants in the Memphis MSA on a more affordable basis than Defendant otherwise makes available to remedy its alleged redlining (“Loan Subsidy Program”). 

  
 24 

 57.       The subsidies under the Loan Subsidy Program will be
provided by the following means: 
 a.         originating a Mortgage Loan at an
interest rate below Defendant’s otherwise prevailing interest rate; 

b.         a direct grant for down payment assistance; 

c.         a direct grant for closing cost assistance; 

d.         payment of the initial mortgage insurance premium; and/or 

e.         other means subject to advance Non-objection by Plaintiffs. 

58.       Defendant retains the discretion to offer more than one, or all, of the forms of financial assistance
set forth in Paragraph 57 to Qualified Applicants on an individual basis as it deems appropriate under the factual circumstances of a particular application. Defendant will exercise this discretion in a manner that enhances the likelihood that it
will originate a loan to a Qualified Applicant consistent with applicable underwriting guidelines and safety and soundness standards, and will have discretion to provide the loan subsidy among its Mortgage Loan products. In no case will the combined
forms of financial assistance set forth in Paragraph 57 exceed $7,250. 
 59.       No provision of this Order
requires Defendant to make any unsafe or unsound loan, or to make a loan to a person who is not qualified for the loan based upon lawful, nondiscriminatory terms; however, Defendant may choose to apply more flexible underwriting standards in
connection with the Loan Subsidy Program, so long as those standards comport with safe and sound lending practices. Defendant’s underwriting standards applied to properties in majority-minority neighborhoods in the Memphis MSA must be no less
favorable than the standards that are applied in other neighborhoods. At the same time, no provision of this Order 

  
 25 

 
imposes an obligation on Defendant to apply underwriting standards to applicants that qualify for the Loan Subsidy Program that are more favorable than the standards otherwise applied by
Defendant. 
 60.       The investment of Defendant under the Loan Subsidy Program will consist of the cost to
Defendant of providing the subsidies to consumers described in Paragraph 57 and not the cost of implementation of the Loan Subsidy Program. 

61.       The methodology used to calculate the total cost to Defendant of the Loan Subsidy Program will be
submitted to Plaintiffs for Non-objection in the Remedial Plan. 
 62.       Defendant must propose in the
Remedial Plan how it will implement the requirements of Paragraphs 56 - 61. This proposal will be subject to Non-objection by Plaintiffs. 
  

	M.	Advertising and Outreach 

 63.       Defendant must spend
a minimum of $100,000 per year during the term of this Order on the targeted advertising and outreach campaign described in Paragraphs 64 - 65. 

64.       The advertising and outreach campaign must consider the results of the credit needs assessment
required in Paragraph 46, must advertise the Loan Subsidy Program, and must be targeted to generate applications for Mortgage Loans from qualified residents in majority-minority neighborhoods in the Memphis MSA. The campaign must include the
following components: 
 a.         Direct mailings in majority-minority
neighborhoods. These mailings must not be targeted exclusively or primarily at existing customers. 

b.         At least two print media specifically directed to African-American readers.

 c.         Radio advertisements on at least two radio stations whose programming
is directed toward African-American listeners. 

  
 26 

 d.         Point-of-distribution
materials, such as posters and brochures. Defendant must place these promotional materials in its branch offices in and near majority-minority neighborhoods. 

e.         All of Defendant’s direct mailings, print advertising and
point-of-distribution materials must contain an equal housing opportunity logo, slogan, or statement. All of Defendant’s radio advertisements must include the audible statement “Equal Opportunity Lender.” 

65.       Defendant must conduct or sponsor at least four outreach programs per year to real estate brokers and
agents, developers, and public or private entities engaged in mortgage-loan-related business in majority-minority neighborhoods in the Memphis MSA. Through the programs, Defendant must inform the attendees of its products and services, including the
Loan Subsidy Program described in this Order, and otherwise develop business relationships with them. Defendant will offer these programs at locations reasonably convenient to the business operations of the attendees. 

66.       Defendant must propose in the Redlining Remedial Plan how it will implement the requirements of
Paragraphs 63 - 65. This proposal will be subject to Non-objection by Plaintiffs. 
  

	N.	Community Development and Financial Education Partnership Program 

67.       During 2015, Defendant provided financial literacy training to more than 5,000 residents of the
Memphis MSA. The agencies take no position regarding the effectiveness of Defendant’s training program or materials; the parties however do acknowledge that financially-educated consumers are essential to the remedial goal of sustained
increases in Defendant’s residential lending in majority-minority neighborhoods within the Memphis MSA. The parties 

  
 27 

 
also acknowledge that assisting residents of these neighborhoods in maintaining and improving their consumer credit ratings is essential to the remedial goals of this Order. 

68.       Defendant or its designee, as agreed to by Defendant and the United States, must partner with one or
more community-based organizations or governmental organizations that provide credit, financial education, homeownership counseling, credit repair, and/or foreclosure-prevention services to the residents of majority-minority neighborhoods in the
Memphis MSA. Defendant must consider organizations that will aid it in achieving the remedial goals of the Order; specifically, the partnerships should aid BancorpSouth in establishing a physical presence in majority-minority neighborhoods;
marketing its residential loan products in majority-minority neighborhoods; extending credit to qualified borrowers in majority-minority neighborhoods; providing credit counseling, credit establishment and credit repair services in majority-minority
neighborhoods; providing financial education seminars; and assisting with the revitalization and stabilization of the housing market in majority-minority neighborhoods. Defendant must spend a minimum of $500,000 on these partnerships during the term
of this Order. 
 69.       Defendant must propose in the Redlining Remedial Plan how it will implement the
requirements of Paragraph 68. Defendant’s proposal must include a thorough review of all relevant organizations; a summary of meetings with these organizations; an examination of any relevant federal, state, or local governmental programs that
may assist Defendant and the organization(s) in serving the affected areas; and the basis for the selection of the proposed partner(s). The proposal should also describe in detail how Defendant or its designee, as agreed to by Defendant and the
United States, intends to implement the partnership(s) over the term of this Order. This proposal will be subject to Non-objection by the United States. 

  
 28 

 70.       Defendant must annually evaluate its partnership(s), in
order to identify any required changes to the program to better meet the residential credit needs of the majority-minority neighborhoods in the Memphis MSA. Defendant must present its evaluation and proposed changes, if any, to the United States for
Non-objection. 
 VI. CIVIL MONEY PENALTY 

71.       Pursuant to Section 1055(c) of the CFPA, 12 U.S.C. § 5565(c), by reason of the ECOA
violations described in the Complaint, and taking into account the factors in 12 U.S.C. § 5565(c)(3), Defendant must pay a civil money penalty of $3,030,756 to the Bureau. 

72.       Within 10 days of the Effective Date, Defendant must pay the civil money penalty by wire transfer to
the Bureau or the Bureau’s agent in compliance with the Bureau’s wiring instructions. 
 73.      
The Bureau will deposit the civil money penalty paid under this Order in the Civil Penalty Fund of the Bureau as required by Section 1017(d) of the CFPA, 12 U.S.C. § 5497(d). 

74.       Defendant must treat the civil money penalty paid under this Order as a penalty paid to the government
for all purposes. Regardless of how the Bureau ultimately uses those funds, Defendant may not: 

a.         Claim, assert, or apply for any tax benefit for any amount of the civil
money penalty paid under this Order; or 
 b.         Seek or accept, directly or
indirectly, reimbursement or indemnification from any source, including but not limited to payment made under any insurance policy, with regard to any amount of the civil money penalty paid under this Order. 

75.       To preserve the deterrent effect of the civil money penalty in any Related Action, Defendant may not
argue that Defendant is entitled to, nor may Defendant benefit by, any offset 

  
 29 

 
or reduction of any compensatory monetary remedies imposed in the Related Action because of the civil money penalty paid in this action (“Penalty Offset”). If the court in any Related
Action grants such a Penalty Offset, Defendant must, within 30 days after entry of a final order granting the Penalty Offset, notify the Bureau, and pay the amount of the Penalty Offset to the U.S. Treasury. Such a payment will not be considered an
additional civil money penalty and will not change the amount of the civil money penalty imposed in this action. 
 VII. RECORD KEEPING
AND REPORTING 
 76.       For the duration of this Order, Defendant must retain all records relating
to its obligations under this Order and its compliance activities as set forth herein. Defendant must provide records to Plaintiffs upon request. Within 15 days of any such request under this Paragraph, Defendant must provide to Plaintiffs all
requested information that is within its control, and for information not within its control, identify other parties that may have that information. Upon reasonable notice, Defendant must allow Plaintiffs access to Defendant’s records and files
to verify the accuracy of the information provided or to otherwise evaluate compliance with this Order. 

77.       In addition to the submission of any other plans or reports specified in this Order, Defendant must
submit a report to Plaintiffs within 45 days of each anniversary of the Effective Date detailing its progress in fulfilling the requirements of this Order (“Annual Report”). Each Annual Report must be approved by Defendant’s Board and
must include an objective assessment of the extent to which each obligation was met, an explanation of why any particular component fell short of meeting the goal for that year, and any recommendations for additional actions to achieve the goals of
this Order. If applicable, Defendant must attach to the Annual Reports representative copies of training materials and marketing materials disseminated pursuant to this Order. Plaintiffs will review each report submitted by Defendant and will have

  
 30 

 
30 days to raise any objections to it, and if it raises any, the parties must confer to resolve their differences. In the event they are unable to do so, either party may bring the dispute to the
Court for resolution. 
 VIII. ROLE OF THE BOARD 

78.       Defendant’s Board must establish a Special Compliance Committee of at least three members of the
Board, no more than one of whom may be an officer or employee of Defendant. Defendant must maintain this Committee during the term of this Order. The Special Compliance Committee will also include the Director of Community Lending described in
Paragraph 49, who will report to the Board (or the Special Compliance Committee). Within 20 days of the Effective Date, the Board must provide in writing to Plaintiffs the name of each member of the Special Compliance Committee. In the event of any
change of membership, the Board must submit the name of the new member to Plaintiffs within 30 days of the selection of the new member. 

79.       The Special Compliance Committee will be responsible for monitoring and coordinating Defendant’s
adherence to the provisions of this Order. The Special Compliance Committee will meet at least every other month and will maintain minutes of its meetings. 

80.       The Board (or the Special Compliance Committee) must review all submissions (including plans, reports,
programs, policies, and procedures) required by this Order prior to submission to Plaintiffs. 
 81.      
Although this Order requires Defendant to submit certain documents for review or Non-objection to the Bureau and/or the United States, the Board will have the ultimate responsibility for proper and sound oversight of Defendant and for ensuring that
Defendant complies with federal consumer financial law, including the ECOA, the FHA, and this Order. 

  
 31 

 IX. ADMINISTRATION 

82.       Calculation of time limitations will be based on calendar days, unless otherwise noted. 

83.       Defendant must notify Plaintiffs of any development that may affect compliance obligations arising
under this Order, including but not limited to, a dissolution, assignment, sale, merger, or other action that would result in the emergence of a successor company; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any
acts or practices subject to this Order; the filing of any bankruptcy or insolvency proceeding by or against Defendant; or a change in Defendant’s name or address. Defendant must provide this notice, if practicable, at least 30 days before the
development, but in any case no later than 14 days after the development. Until the termination of this Order, Defendant must deliver a copy of this Order to any business entity resulting from any change in structure referred to in this Paragraph.

 84.       This Order is binding on Defendant, including all of its officers, employees, agents,
representatives, assignees, successors in interest, and all those in active concert or participation with any of them. In the event Defendant seeks to transfer or assign all or part of its Mortgage Lending operations during the term of this Order,
and the successor or assign intends to carry on the same or similar business practices, as a condition of sale, Defendant must obtain the written agreement of the successor or assign to any obligations remaining under the Order for its remaining
term. 
 85.       This Order will be in effect until the later of: (a) Plaintiffs’ Non-objection to
Defendant’s fourth Annual Report; (b) three months after Defendant submits a report to Plaintiffs demonstrating fulfillment of its obligation to invest all money required by this Order; or (c) the date on which the branch or LPO
required by Paragraph 50 of this Order has been operated by Defendant for three years. Notwithstanding this provision, the term of this Order 

  
 32 

 
may be extended by agreement of the parties or upon motion to the Court by the Plaintiffs, for good cause shown. At any time after the Order has been in effect for three years, the parties may
file a joint motion to terminate this Order, which motion may be proposed by Defendant if Defendant has fully complied with all its terms, including, but not limited to, the disbursement of all funds in the Loan Subsidy Program, and accomplished the
remedial goals of the Order, as determined by Plaintiffs. 
 86.       Plaintiffs and Defendant acknowledge
that the timeframes set forth in this Order constitute material terms of this Order. 
 87.       Any time
limits for performance fixed by this Order may be extended by mutual written agreement of the parties without further Court approval. Additionally, details related to administration of the Settlement Fund as set forth in Paragraphs 26-36 may be
modified by written agreement of the parties without further Court approval. Any other modifications to this Order may be made only upon approval of the Court, upon motion by any party. 

88.       In the event that any disputes arise about the interpretation of or compliance with the terms of this
Order, the parties must endeavor in good faith to resolve any such dispute between themselves before bringing it to this Court for resolution. The parties agree that if any party reasonably believes that another party failed to comply with any
obligation under this Order, it will provide written notice thereof and allow a period of at least 30 days to discuss a voluntary resolution of the alleged violation before presenting the matter to this Court. In the event of either a failure by
Defendant to perform in a timely manner any act required by this Order or an act by Defendant in violation of any provision hereof, Plaintiffs may move this Court to impose any remedy authorized by law or equity, including attorneys’ fees and
costs. 

  
 33 

 89.       Nothing in this Order excuses Defendant’s compliance
with any currently or subsequently effective provision of law or order of a regulator with authority over Defendant that imposes additional obligations on Defendant. 

90.       The parties agree that, as of the Effective Date, litigation is not “reasonably foreseeable”
concerning the matters described above. To the extent that any party previously implemented a litigation hold to preserve documents, electronically stored information (ESI), or things related to the matters described above, the party is no longer
required to maintain such litigation hold. Nothing in this Paragraph relieves any party of any other obligations imposed by this Order or any record retention obligations imposed by statute or regulation. 

91.       Defendant’s compliance with the terms of this Order, including any modifications agreed to by the
parties or ordered by the Court, will fully and finally resolve all claims of Plaintiffs arising prior to the Effective Date relating to the alleged violations of the fair lending laws alleged in the Complaint in this action, including all claims
for equitable relief and monetary damages and penalties; Plaintiffs’ claims, as alleged in the Complaint, that the Bank discriminated in the underwriting and pricing of Mortgage Loans are limited to Mortgage Loans applications submitted by, and
Mortgage Loans originated to, natural persons. This Order does not release claims for practices not addressed in the Complaint’s allegations, including claims that may be held or are currently under investigation by any federal agency, or any
claims that may be pursued for actions that may be taken by the appropriate Federal Banking Agency, as defined in 12 U.S.C. § 1813(q), against Defendant, any of its affiliated entities, and/or any institution-affiliated party of Defendant, as
defined in 12 U.S.C. § 1813(u), pursuant to 12 U.S.C. § 1818 or any other statute or regulation. This Order does not resolve and does not release claims other than claims for discrimination. 

  
 34 

 92.       Each party to this Order must bear its own costs and
attorney’s fees associated with this litigation. 
 93.       The Court retains jurisdiction for the
duration of this Order to enforce the terms of the Order, after which time the case will be dismissed with prejudice. 
 SO ORDERED, this
        day of
                                         
           , 2016. 
  

	
	UNITED STATES DISTRICT JUDGE

 The undersigned hereby consent to the entry of this Order: 

 

	
	 For the Plaintiffs:
  

Consumer Financial Protection Bureau:
  

PATRICE ALEXANDER FICKLIN
 Fair Lending Director

 
 REBECCA J.K. GELFOND

Deputy Fair Lending Director
  

/s/ Michael Posner
 MICHAEL
POSNER
 Fair Lending Enforcement Attorney
 Email:
Michael.Posner@cfpb.gov
 JEFFREY BLUMBERG
 Senior Fair Lending
Enforcement Attorney
 Email: Jeffrey.Blumberg@cfpb.gov
 JOSHUA
ORENSTEIN
 Enforcement Attorney
 Email:
Joshua.Orenstein@cfpb.gov
 JESSE D. STEWART
 Fair Lending
Enforcement Attorney
 Email: Jesse.Stewart@cfpb.gov
  

Consumer Financial Protection Bureau
 1700 G Street NW

Washington, DC 20552
 Tel: (202) 435-7866

  
 35 

 United States of America: 
  

					
		 		  	LORETTA E. LYNCH
		 		  	Attorney General
		 		  	
		 		  	
		 		  	
	 /s/ Felicia C. Adams
	 		  	
	FELICIA C. ADAMS	 		  	VANITA GUPTA
	United States Attorney	 		  	Principal Assistant Attorney General
	Northern District of Mississippi	 		  	Civil Rights Division
	900 Jefferson Ave.	 		  	
	Oxford, MS 38655	 		  	
	Tel: (662) 234-3351	 		  	
		 		  	SAMEENA SHINA MAJEED
		 		  	 Chief
 Civil Rights Division

Housing and Civil Enforcement Division

			
		 		  	
		 		  	JON S. SEWARD
		 		  	Deputy Chief
			
		 		  	 /s/ Oneshia S. Herring

		 		  	 PATRICIA L. O’BEIRNE
 Trial
Attorney

		 		  	 Patricia.O’Beirne@usdoj.gov
 DC Bar #
437018
 ONESHIA S. HERRING
 Trial Attorney

Oneshia.Herring@usdoj.gov
 NC Bar # 41308

 
 United States Department of Justice

Civil Rights Division
 Housing and Civil Enforcement Section

950 Pennsylvania Avenue, N.W. – NWB
 Washington, DC 20530

Phone: (202) 514-4733
 Fax: (202) 514-1116

  
 36 

	
	 For the Defendant:
  

	/s/ Anand S. Raman
                                        

	 ANAND S. RAMAN
 Email:
Anand.Raman@Skadden.com
 AUSTIN K. BROWN
 Email:
Austin.Brown@Skadden.com
  
 Skadden, Arps, Slate, Meagher & Flom LLP

1440 New York Avenue, NW
 Washington, DC 20005

Tel: (202) 371-7019

  
 37 

 Appendix A 

I hereby acknowledge that I have received and read a copy of the Consent Order and the Complaint entered in United States and Consumer
Financial Protection Bureau v. BancorpSouth Bank. I have had the opportunity to ask questions and obtain answers to them and I understand my fair lending obligations under this Consent Order. 

 

			
		  	  

		  	[Signature]
		
		  	  

		  	[Print Name]
		
		  	  

		  	[Job Title]
		
		  	  

		  	[Date]

  
 38 

 Appendix B 

I hereby acknowledge that on
                                         I
attended the fair lending training program provided to BancorpSouth Bank employees by
                                    . During the training, I
received information about implicit racial bias and my fair lending obligations under the Fair Housing Act, the Equal Credit Opportunity Act, and the terms of the Consent Order entered by the court in United States and Consumer Financial
Protection Bureau v. BancorpSouth Bank. I had the opportunity to ask questions and to receive answers to them. I understand my fair lending obligations under this Consent Order and those laws. 

 

			
		  	  

		  	[Signature]
		
		  	  

		  	[Print Name]
		
		  	  

		  	[Job Title]
		
		  	  

		  	[Date]

  
 39EX-4.5

 Exhibit 4.5 

SECURITIES PURCHASE AGREEMENT 

THIS SECURITIES PURCHASE AGREEMENT (the “Agreement”) is dated this 3rd day of April, 2016, by and among SORRENTO
THERAPEUTICS, INC., a Delaware corporation (the “Company”), and ABG SRNE LIMITED, a British Virgin Islands company limited by shares (“ABG”), and ALLY BRIDGE LB HEALTHCARE MASTER FUND LIMITED, a Cayman
company limited by shares (“ABG LB”) (and together with ABG, the “Purchaser”). 
 WHEREAS,
the Purchaser desires to purchase common stock, US$0.0001 par value (the “Common Stock”), of the Company (the “Shares”) and a warrant to purchase 30% of the Common Stock to be purchased by the
Purchaser pursuant to this Agreement, in substantially the form attached hereto as EXHIBIT A (the “Warrant” and, together with the Shares, the “Securities”), at a purchase price
of US$5.55 per share, for an aggregate purchase price of up to US$50,000,000 (provided that the Purchaser and its Affiliates (but not including the Additional Purchasers) shall not be a “beneficial owner” of more than 9.99% of the Common
Stock (as defined for purposes of Rule 13d-3 of the Exchange Act) immediately following the Closing), but in no event less than US$10,000,000 (the “Purchase Price”) and the Company desires to sell the Securities to the
Purchaser (the “Sale”), all on the terms and conditions set forth in this Agreement; and 
 WHEREAS, in reliance
upon the representations made by each of the Purchaser and the Company in this Agreement, the transactions contemplated by this Agreement are such that the offer and sale of securities by the Company under this Agreement will be exempt from
registration under applicable United States securities laws as a result of the Sale being undertaken pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and/or Regulation S
promulgated thereunder. 
 NOW, THEREFORE, in consideration of the terms and conditions contained herein, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and the Purchaser hereby agree as follows: 

Section 1. Sale. Subject to and upon the terms and conditions set forth in this Agreement, the Purchaser agrees to purchase the
Securities and the Company agrees to sell the Securities to the Purchaser. The Purchaser shall have the right, but not the obligation, to purchase Securities for an aggregate purchase price of up to US$50,000,000. 

1.1 Closing. On the Closing Date (as defined below), upon the terms and subject to the conditions set forth herein, substantially
concurrent with the execution and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchaser agrees to purchase, the Securities at the Purchase Price. The closing of the Sale (the
“Closing”) shall occur on the second (2nd) business day following the day on which the last to be satisfied or waived of the conditions set forth in Section 4 and Section 5 shall be satisfied or
waived in accordance with this Agreement (other than those conditions that by their terms are to be satisfied at the 

 
Closing, it being understood that the occurrence of the Closing shall remain subject to the satisfaction or waiver of such conditions at the Closing), or on such other date as the parties may
mutually agree in writing, but in no event earlier than April 30, 2016 (the “Closing Date”). The Securities issuable upon the Closing shall bear a restrictive legend as follows: 

THE SECURITIES REPRESENTED HEREBY [AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF] HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS AND MAY BE OFFERED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED, TRANSFERRED OR OTHERWISE DISPOSED OF (EACH, A “TRANSFER”) ONLY IF SUCH
SECURITIES ARE REGISTERED UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR IF SUCH TRANSFER IS MADE PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND SUCH STATE SECURITIES LAWS AFTER PROVIDING AN OPINION OF
COUNSEL TO SUCH EFFECT. 
 1.2 Section 4(a)(2). Assuming the accuracy of the representations and warranties of each of the
Company and the Purchaser set forth in Section 2 and Section 3, respectively, the parties acknowledge and agree that the purpose of such representations and warranties is, among other things, to ensure that the Sale qualifies
as a sale of securities under Section 4(a)(2) of the Securities Act. 
 1.3 Allocation. At any time and from time to time after
the date of this Agreement, the Purchaser may (a) allocate the Securities to be held between ABG and ABG LB freely; and (b) allocate or transfer, on the same terms and conditions as those contained in this Agreement, the Securities (the
“Allocated Securities”), to one or more of its Affiliates or third party purchasers (the “Additional Purchasers”), provided that each Additional Purchaser shall become a party to the Transaction
Documents (as defined below), by executing and delivering (i) a counterpart signature page to each of the Transaction Documents, or (ii) entering into separate Transaction Documents with the Company. EXHIBIT C to this
Agreement shall be updated to reflect the number of Allocated Securities to be transferred or allocated to the Additional Purchasers, and the identity of the Additional Purchasers. Following the date of this Agreement, the Purchaser may identify
potential Additional Purchasers, and shall provide to the Company such information regarding such Additional Purchasers, as the Company may reasonably request. 

1.4 Deliveries. 
 (a) On
or prior to the Closing Date, the Company shall deliver or cause to be delivered to the Purchaser the following: 
 (i) the
Shares, registered in the name of the Purchaser; 
 (ii) the Warrant, registered in the name of the Purchaser; and 

(iii) a certificate executed by the principal executive officer and the principal financial or accounting officer of the
Company (solely in their capacities as such), dated the Closing Date, in form and substance reasonably satisfactory to the Purchaser, to the effect that: (A) the representations and warranties of the Company set forth in Section 2
are true and correct in all material respects (other than representations and warranties 

  
 - 2 - 

 
which are already qualified as to materiality, which shall be true and correct in all respects) as of the date when made and as of the Closing Date, as though made on and as of such date, except
for such representations and warranties that speak as of a specific date, which shall be true and correct as of such specified date, and (B) the Company has complied with all the agreements and satisfied all the conditions herein on its part to
be performed or satisfied by the Company on or prior to the Closing Date (the “Officer’s Certificate”). 
 (b)
On or prior to the Closing Date, the Purchaser shall deliver or cause to be delivered to the Company the following: 
 (i)
the Purchase Price by wire transfer in immediately available funds to the account specified by the Company (such account details to be specified at least three days in advance of the Closing Date); and 

(ii) a completed Selling Stockholder Questionnaire in substantially the form attached hereto as EXHIBIT
B. 
 1.5 Allocation of Purchase Price. The Company and the Purchaser, as a result of arm’s length bargaining, agree that
(a) neither the Purchaser nor any of its Affiliates (as defined below) have rendered services to the Company in connection with this Agreement, and (b) except as otherwise required by a final “determination” within the meaning of
Section 1313(a)(1) of the U.S. Internal Revenue Code of 1986, as amended, all tax returns and other information returns of each party relative to this Agreement, the Securities issued pursuant hereto shall consistently reflect the matters
agreed to in clause (a) of this Section 1.5. 
 Section 2. Representations and Warranties of the Company. The
Company hereby represents and warrants to the Purchaser, as of the date of this Agreement and as of the Closing Date, that: 
 2.1
Organization and Qualification. The Company and each controlled subsidiary of the Company (collectively, the “Subsidiaries”) is an entity duly incorporated or otherwise organized, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company, nor any Subsidiary is
in violation or default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business and is
in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing,
as the case may be, would not reasonably be expected to result in: (a) a material adverse effect on the legality, validity or enforceability of this Agreement, the Warrant or the Officer’s Certificate (collectively, the
“Transaction Documents”), (b) a material adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (c) a
material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (a), (b) or (c), a 

  
 - 3 - 

 
“Material Adverse Effect”) and no proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such
power and authority or qualification. For purposes of this Agreement, a “controlled subsidiary of the Company” is a subsidiary of the Company for which the Company has the power to vote or direct the voting of a majority of
the outstanding voting power, or for which the Company has the power to elect a majority of the members of the board of directors or similar governing body, in either case as of the date of this Agreement. The controlled subsidiaries of the Company
are set forth in Schedule 2.1. 
 2.2 Authorization; Enforcement. The Company has the requisite corporate power and authority
to enter into and to consummate the transactions contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement and each of
the other Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the
Company, its Board of Directors or the Company’s stockholders in connection herewith or therewith other than in connection with the Required Approvals (as defined below). This Agreement and each other Transaction Document to which it is a party
has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against the Company in
accordance with its terms, except: (a) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally,
(b) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies, and (c) insofar as indemnification and contribution provisions may be limited by applicable law. 

2.3 Issuance of Securities and Warrant Shares. The issuance of the Securities is duly authorized and, upon issuance in accordance with
the terms hereof, the Shares shall be validly issued, fully paid and non-assessable shares of the common stock of the Company. The issuance of the shares of Common Stock issuable upon exercise of the Warrant (the “Warrant
Shares”) is duly authorized, the Warrant Shares have been reserved for issuance upon exercise of the Warrant and, upon issuance in accordance with the terms of the Warrant, the Warrant Shares will be validly issued, fully paid and
non-assessable shares of the common stock of the Company. Assuming the truth and accuracy of each of the representations and warranties of the Purchaser contained in Section 3, the issuance by the Company of the Securities and, upon
exercise of the Warrant, the Warrant Shares, is exempt from registration under the Securities Act, and the Securities will be free of any Liens (as defined below). The authorized capital stock of the Company consists of 750,000,000 shares of common
stock, US$0.0001 par value, and 100,000,000 shares of preferred stock, US$0.0001 par value. As of the date of this Agreement, 38,385,326 shares of the Common Stock and no shares of Preferred Stock were issued and outstanding. Except for the
transactions contemplated hereby and except as set forth in the SEC Reports (as defined below), the Company has not granted any option (except for stock options granted under the Company’s stock option plans), warrants, rights (including
conversion or preemptive rights, except for stock purchases under the Company’s employee stock purchase plan), or similar rights to any person or entity to purchase or acquire any rights with respect to any shares of capital stock of the
Company. The Common Stock is currently listed on the 

  
 - 4 - 

 
Nasdaq Capital Market and the Company knows of no reason or set of facts which is likely to result in the termination of listing of the Common Stock on the Nasdaq Capital Market or the inability
of such stock to continue to be listed on the Nasdaq Capital Market. The Company shall, so long as the Warrant is outstanding, take all action necessary to reserve and keep available out of its authorized and unissued capital stock, solely for the
purpose of effecting the exercise of the Warrant, the number of shares of Common Stock issuable upon exercise of the Warrant. 
 2.4 No
Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to which it is a party, the issuance of the Securities and the consummation by it of the transactions contemplated hereby and
thereby do not and will not: (a) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, (b) conflict with, or
constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any options, contracts, agreements, liens, security interests, or other encumbrances
(“Liens”) upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any
agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary
is bound or affected, or (c) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the
Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (b) and (c), such as
would not have or reasonably be expected to result in a Material Adverse Effect. 
 2.5 Acknowledgment Regarding the Sale. The
Company acknowledges and agrees that the Purchaser is acting solely in the capacity of an arm’s length third party with respect to this Agreement and the transactions contemplated hereby. The Company further acknowledges the Purchaser is not
acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to this Agreement and the transactions contemplated hereby, and any advice given by the Purchaser or any of their representatives or agents in
connection with this Agreement is merely incidental to the Sale. None of the Company, any of its Affiliates or any person acting on its or their behalf has (i) conducted any general solicitation (as that term is used in Rule 502(c) of
Regulation D) or general advertising with respect to any of the Securities, (ii) engaged in any direct selling efforts (as that term is defined in Regulation S) with respect to any of the Securities, or (iii) made any offers or sales of
any security or solicited any offers to buy any security under any circumstances that would require registration of the Securities under the Securities Act. 

2.6 SEC Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents
required to be filed by the Company under the Securities Act and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including pursuant to Section 13(a) or 15(d) of the Exchange Act, for the two years
preceding the date of this Agreement (the foregoing materials, including the exhibits thereto and documents 

  
 - 5 - 

 
incorporated by reference therein, being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing
and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable,
and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading. The financial statements of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Securities Exchange
Commission (the “SEC”) with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with generally accepted accounting principles in the United States applied on a
consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes
required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject,
in the case of unaudited statements, to normal, immaterial, year-end audit adjustments. As of the date of this Agreement and as of the Closing Date, there are no outstanding or unresolved comments received from the staff of the SEC with respect to
the SEC Reports, and to the Company’s knowledge, none of the SEC Reports is the subject of any ongoing SEC review or investigation. 

2.7 Subsidiaries. All of the direct and indirect subsidiaries of the Company are set forth in the SEC Reports. The capital
stock or other equity interests of each Subsidiary that are owned by the Company are owned by the Company free and clear of any Liens, and all of the issued and outstanding shares of capital stock of each Subsidiary that is wholly-owned by the
Company are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities.

2.8 Filings, Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give
any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents,
other than the notice and/or application(s) to each applicable Trading Market for the issuance and the listing of the Shares and the Warrant Shares for trading thereon in the time and manner required thereby (collectively, the “Required
Approvals”). For purposes of this Agreement, “Person” shall mean any individual, corporation (including any non-profit corporation), general partnership, limited
partnership, limited liability partnership, joint venture, estate, trust, company (including any limited liability company or joint stock company), firm or other enterprise, association, organization, entity, domestic or foreign multinational,
federal, state, provincial, municipal or local government (or any political subdivision thereof) or any domestic or foreign governmental, regulatory or administrative authority or any department, commission, board, agency, court, tribunal, judicial
body or instrumentality thereof, or any other body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power of any nature (including any arbitral body). For purposes
of this Agreement, “Trading Market” shall mean any market or exchange of The NASDAQ Stock Market LLC or the New York Stock Exchange. 

  
 - 6 - 

 2.9 Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of
the latest audited financial statements included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date of this Agreement: (a) there has been no event, occurrence or development that has had
or that would reasonably be expected to result in a Material Adverse Effect, (b) the Company has not incurred any liabilities (contingent or otherwise) other than (i) trade payables and accrued expenses incurred in the ordinary course of
business consistent with past practice, and (ii) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or disclosed in filings made with the SEC and that are not expected to result in a Material
Adverse Effect, (c) the Company has not altered its method of accounting, (d) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to
purchase or redeem any shares of its capital stock, and (e) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company stock option plans. Except for the issuance of the
Securities contemplated by this Agreement, no event, liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company or its Subsidiaries or their respective
businesses, properties, operations, assets or financial condition, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed
prior to the date that this representation is made. 
 2.10 Litigation. There is no action, suit, inquiry, notice of violation,
proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or
regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”) which (a) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the
Shares, or (b) would, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. None of the Company, any Subsidiary, or any director or officer thereof, is or has been the subject of any
Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. To the knowledge of the Company, there is no pending or contemplated investigation by the SEC involving the Company
or any current or former director or officer of the Company. The SEC has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the
Securities Act. 
 2.11 Compliance. Except as disclosed in the SEC Reports, neither the Company nor any Subsidiary: (a) is
in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received
notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such
default or violation has been waived), (b) is in violation of any judgment, decree or order of any court, arbitrator or other governmental authority, or (c) is or has been in violation of any statute, rule, ordinance or regulation of any
governmental authority, including without limitation all foreign, federal, state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and

  
 - 7 - 

 
employment and labor matters (collectively, “Laws”), except in each case as would not have, or reasonably be expected to result in, a Material Adverse Effect. The Company
holds all material licenses, franchises, permits, certificates, approvals and authorizations from each governmental body, or required by any governmental body to be obtained, in each case necessary for the lawful conduct of its business and
operations as currently conducted (collectively, “Permits”). The Company is in compliance in all material respects with the terms of all Permits. To the Company’s knowledge, it has not received written notice since
January 2016 to the effect that a governmental body (i) claimed or alleged that the Company was not in compliance with all Laws applicable to the Company, any of its properties or other assets or any of its business or operations other than as
previously disclosed to the Purchaser in writing, or (ii) was considering the amendment, termination, revocation or cancellation of any Permit. The consummation of the transactions contemplated hereby, in and of itself, will not cause the
revocation or cancellation of any Permit. 
 2.12 Certain Fees. No brokerage or finder’s fees or commissions are or will be
payable by the Company or any Subsidiaries to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. 

2.13 Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities,
will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. The Company shall conduct its business in a manner so that it will not become an “investment
company” subject to registration under the Investment Company Act of 1940, as amended. 
 2.14 Disclosure. Except with respect
to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company confirms that neither it nor any other Person acting on its behalf has provided the Purchaser or its agents or counsel with any
information that it believes constitutes or might constitute material, non-public information. The Company understands and confirms that the Purchaser will rely on the foregoing representation in effecting transactions in securities of the
Company. All of the disclosure furnished by or on behalf of the Company to the Purchaser regarding the Company and its Subsidiaries, their respective businesses and the transactions contemplated hereby, including the Schedule to this Agreement,
is true and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading.
The press releases disseminated by the Company during the twelve months preceding the date of this Agreement, taken as a whole, do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or
necessary in order to make the statements therein, in the light of the circumstances under which they were made and when made, not misleading. The Company acknowledges and agrees that the Purchaser makes no nor has made any representations or
warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3. 

  
 - 8 - 

 2.15 No Integrated Offering. Assuming the accuracy of the Purchaser’s representations
and warranties set forth in Section 3, none of the Company, any of its Affiliates, or any Person acting on their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security,
under circumstances that would cause the Sale to be integrated with prior offerings by the Company for purposes of (a) the Securities Act, which would require the registration of any such securities under the Securities Act, or (b) any
applicable stockholder approval provisions of any Trading Market on which any of the securities of the Company are listed or designated. 

2.16 Regulation M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (a) taken, directly or
indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the issuance or resale of any of the Securities, (b) sold, bid for, purchased or paid any
compensation for soliciting purchases of, any of the Securities, or (c) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company. 

2.17 Taxes. The Company and the Subsidiaries have filed all federal, state, local and foreign tax returns that have been required to be
filed and paid all taxes shown thereon through the date of this Agreement, to the extent that such taxes have become due and are not being contested in good faith, except where the failure to do so would not reasonably be expected to have a Material
Adverse Effect. Except as disclosed in the SEC Reports, no tax deficiency has been determined adversely to the Company or any Subsidiary which has had, or would reasonably be expected to have, individually or in the aggregate, a Material Adverse
Effect. The Company has no knowledge of any federal, state or other governmental tax deficiency, penalty or assessment which has been or might be asserted or threatened against it which would reasonably be expected to have a Material Adverse Effect.

 2.18 Intellectual Property. The Company and the Subsidiaries own or possess adequate enforceable rights to use all patents, patent
applications, trademarks (both registered and unregistered), service marks, trade names, trademark registrations, service mark registrations, copyrights, licenses and know-how (including trade secrets and other unpatented and/or unpatentable
proprietary or confidential information, systems or procedures) (collectively, the “Intellectual Property”), necessary for the conduct of their respective businesses as conducted as of the date of this Agreement and as of the
Closing Date, except to the extent that the failure to own or possess adequate rights to use such Intellectual Property would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; the Company and the
Subsidiaries have not received any written notice of any claim of infringement or conflict which asserted Intellectual Property rights of others, which infringement or conflict, if the subject of an unfavorable decision, would reasonably be expected
to result in a Material Adverse Effect; there are no pending, or to the Company’s knowledge, threatened judicial proceedings or interference proceedings against the Company or its Subsidiaries challenging the Company’s or any of its
Subsidiary’s rights in or to or the validity of the scope of any of the Company’s or any Subsidiary’s patents, patent applications or proprietary information, except for such right or claim that would not, individually or in the
aggregate, reasonably be expected to result in a Material Adverse Effect; to the Company’s knowledge no other entity or individual has any right or claim in any of the Company’s or any of its Subsidiary’s patents, patent applications
or any patent to be issued therefrom by virtue of any contract, license or other agreement entered into between such entity or individual and the Company or any Subsidiary or by any non-contractual obligation, other than by written licenses granted
by the Company or any Subsidiary, except for 

  
 - 9 - 

 
such right or claim that would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect; the Company and the Subsidiaries have not received any written
notice of any claim challenging the rights of the Company or its Subsidiaries in or to any Intellectual Property owned, licensed or optioned by the Company or any Subsidiary which claim, if the subject of an unfavorable decision, would reasonably be
expected to result in a Material Adverse Effect. 
 2.19 Disclosure Controls. The Company maintains systems of internal accounting
controls designed to provide reasonable assurance that (a) transactions are executed in accordance with management’s general or specific authorizations; (b) transactions are recorded as necessary to permit preparation of financial
statements in conformity with GAAP and to maintain asset accountability; (c) access to assets is permitted only in accordance with management’s general or specific authorization; and (d) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company is not aware of any material weaknesses in its internal control over financial reporting. Since the date of the
latest audited financial statements of the Company included within the SEC Reports, there has been no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect,
the Company’s internal control over financial reporting. The Company has established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 and 15d-15) for the Company and designed such disclosure controls and procedures to
ensure that material information relating to the Company and the Subsidiaries is made known to the certifying officers by others within those entities, particularly during the period in which the Company’s Annual Report on Form 10-K or
Quarterly Report on Form 10-Q, as the case may be, is being prepared. The Company’s certifying officers have evaluated the effectiveness of the Company’s controls and procedures as of a date within 90 days prior to the filing date of the
Annual Report on Form 10-K for the fiscal year most recently ended (such date, the “Evaluation Date”). The Company presented in its Annual Report on Form 10-K for the fiscal year most recently ended the conclusions of the
certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the most recent Evaluation Date. Since the most recent Evaluation Date, there have been no significant changes in the
Company’s internal controls (as such term is defined in Item 307(b) of Regulation S-K under the Securities Act) or, to the Company’s knowledge, in other factors that would significantly adversely affect the Company’s internal
controls. To the knowledge of the Company, the Company’s “internal control over financial reporting” and “disclosure controls and procedures” (as such terms are defined under the Exchange Act) are effective. 

Section 3. Representations and Warranties of the Purchaser. The Purchaser represents and warrants to the Company, as of the date
of this Agreement and as of the Closing Date, that: 
 3.1 No Public Sale or Distribution. The Purchaser is acquiring the Securities
and, upon exercise of the Warrant, will acquire the Warrant Shares, in the ordinary course of business for its own account and not with a view toward, or for resale in connection with, the public sale or distribution thereof. 

  
 - 10 - 

 3.2 Accredited Investor and Affiliate Status. The Purchaser is an “accredited
investor” as that term is defined in Rule 501 of Regulation D under the Securities Act. The Purchaser is not, and has not been, for a period of at least three months prior to the date of this Agreement (a) an officer or director of the
Company, (b) an “affiliate” of the Company (as defined in Rule 144) (an “Affiliate”), or (c) a “beneficial owner” of more than 10% of the common stock of the Company (as defined for purposes of
Rule 13d-3 of the Exchange Act). 
 3.3 Reliance on Exemptions. The Purchaser understands that the Sale is being made in reliance on
specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon the truth and accuracy of, and the Purchaser’s compliance with, the representations,
warranties, agreements, acknowledgments and understandings of the Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility of the Purchaser to complete the Sale and to acquire the Securities. 

3.4 Information. The Purchaser has been furnished with all materials relating to the business, finances and operations of the Company
and materials relating to the Sale which have been requested by the Purchaser. The Purchaser has been afforded the opportunity to ask questions of the Company. Neither such inquiries nor any other due diligence investigations conducted by the
Purchaser or its representatives shall modify, amend or affect the Purchaser’s right to rely on the Company’s representations and warranties contained herein. The Purchaser acknowledges that all of the documents filed by the Company with
the SEC under Sections 13(a), 14(a) or 15(d) of the Exchange Act that have been posted on the SEC’s EDGAR site are available to the Purchaser, and the Purchaser has not relied on any statement of the Company not contained in such documents in
connection with the Purchaser’s decision to enter into this Agreement and the Sale. 
 3.5 Risk. The Purchaser understands that
its investment in the Securities involves a high degree of risk. The Purchaser is able to bear the risk of an investment in the Securities including, without limitation, the risk of total loss of its investment. The Purchaser has sought such
accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to the Sale. The Purchaser understands that there is no assurance that the Shares or the Warrant Shares will continue to be quoted,
traded or listed for trading or quotation on the Nasdaq Capital Market or on any other organized market or quotation system. 
 3.6 No
Governmental Review. The Purchaser understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement in connection with the Sale or the fairness or
suitability of the investment in the Securities. 
 3.7 Organization; Authorization. ABG is duly organized, validly existing and in
good standing under the laws of the British Virgin Islands and ABG LB is duly organized, validly existing and in good standing under the laws of the Cayman Islands and has the requisite organizational power and authority to enter into and perform
its obligations under this Agreement. 
 3.8 Validity; Enforcement. This Agreement has been duly and validly authorized, executed and
delivered on behalf of the Purchaser and, when delivered, constitutes the legal, valid and binding obligations of the Purchaser enforceable against the Purchaser in accordance with its terms. The execution, delivery and performance of this Agreement
by the Purchaser and the consummation by the Purchaser of the transactions contemplated hereby will not result in a violation of the organizational documents of the Purchaser. 

  
 - 11 - 

 3.9 Prior Investment Experience. The Purchaser acknowledges that it has prior investment
experience, including investment in securities of the type being sold, including the Securities, and has read all of the documents furnished or made available by the Company to it and is able to evaluate the merits and risks of such an investment on
its behalf, and that it recognizes the highly speculative nature of this investment. 
 3.10 Tax Consequences. The Purchaser
acknowledges that the Company has made no representation regarding the potential or actual tax consequences for the Purchaser that will result from entering into this Agreement and from consummation of the Sale. The Purchaser acknowledges that it
bears complete responsibility for obtaining adequate tax advice regarding this Agreement and the Sale. 
 3.11 No Registration, Review or
Approval; Restricted Securities. The Purchaser acknowledges, understands and agrees that the Securities are being sold hereunder pursuant to an offer exemption under Section 4(a)(2) of the Securities Act and/or the safe harbor provided
under Regulation S promulgated thereunder. The Purchaser understands that the Securities and the Warrant Shares constitute “restricted securities” within the meaning of Rule 144 under the Securities Act and may not be sold, pledged or
otherwise disposed of unless they are subsequently registered under the Securities Act and applicable state securities laws or unless an exemption from registration thereunder is available. 

Section 4. Conditions Precedent to Obligations of the Company. The obligation of the Company to consummate the transactions
contemplated by this Agreement is subject to the satisfaction of each of the following conditions; provided that these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion by
providing the Purchaser with prior written notice thereof: 
 4.1 Delivery. The Purchaser shall have delivered to the Company the
Purchase Price against delivery by the Company of the Shares to the Purchaser; 
 4.2 No Prohibition. No order of any court,
arbitrator or governmental or regulatory authority shall be in effect which purports to enjoin or restrain any of the transactions contemplated by this Agreement; 

4.3 Representations. The representations and warranties of the Purchaser contained in Section 3 shall be true and
correct in all material respects (other than representations and warranties which are already qualified as to materiality, which shall be true and correct in all respects) as of the date when made and as of the Closing Date, as though made on and as
of such date, except for such representations and warranties that speak as of a specific date, which shall be true and correct as of such specified date; and 

4.4 Nasdaq Approval. The Company shall have received evidence reasonably satisfactory to the Company that: (a) the Shares,
(b) the Warrant Shares, (c) all shares of Common Stock to be issued to other investors by the Company pursuant to other Securities Purchase Agreements dated on or about the date hereof (the “Other Purchase
Agreements”), and 

  
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(d) all shares of Common Stock issuable upon exercise of warrants to purchase shares of Common Stock to be issued to other investors by the Company pursuant to the Other Purchase Agreements have
been approved for listing on the Nasdaq Capital Market, subject to official notice of issuance. 
 Section 5. Conditions Precedent
to Obligations of the Purchaser. The obligation of the Purchaser to consummate the transactions contemplated by this Agreement is subject to the satisfaction of each of the following conditions; provided that these conditions are for the
Purchaser’s sole benefit and may be waived by the Purchaser at any time in its sole discretion by providing the Company with prior written notice thereof: 

5.1 Delivery. The Company shall have delivered to the Purchaser the items set forth in Section 1.4(a); 

5.2 No Prohibition. No order of any court, arbitrator, or governmental or regulatory authority shall be in effect which purports to
enjoin or restrain any of the transactions contemplated by this Agreement; 
 5.3 Representations. The representations and warranties
of the Company contained in Section 2 shall be true and correct in all material respects (other than representations and warranties which are already qualified as to materiality, which shall be true and correct in all respects) as
of the date when made and as of the Closing Date, as though made on and as of such date, except for such representations and warranties that speak as of a specific date, which shall be true and correct as of such specified date; 

5.4 No Material Adverse Effect. There shall not have occurred a Material Adverse Effect, and no event shall have occurred or
circumstance exist that, in combination with any other events or circumstances, would reasonably be expected to result in a Material Adverse Effect; 

5.5 Satisfactory Completion of Due Diligence. The financial, business, legal and intellectual property due diligence shall have been
completed, and the results are, to the Purchaser’s commercially reasonable satisfaction; 
 5.6 Concurrent Completion. There
shall be a minimum investment amount of US$100,000,000 in the aggregate, from the Other Purchase Agreements and the Purchaser, funding concurrently on the Closing Date; 

5.7 Nasdaq Approval. The Company shall have received evidence reasonably satisfactory to the Company that: (a) the Shares,
(b) the Warrant Shares, (c) all shares of Common Stock to be issued to other investors by the Company pursuant to the Other Purchase Agreements, and (d) all shares of Common Stock issuable upon exercise of warrants to purchase shares
of Common Stock to be issued to other investors by the Company pursuant to the Other Purchase Agreements have been approved for listing on the Nasdaq Capital Market, subject to official notice of issuance; and 

  
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 5.8 Trading. From the date of this Agreement to the relevant Closing Date, trading in the
Company’s Common Stock shall not have been suspended by the SEC or any Trading Market and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg L.P. shall not have been suspended or limited, or minimum
prices shall not have been established on securities whose trades are reported by such service, or on any trading market, nor shall a banking moratorium have been declared either by the United States or California authorities nor shall there have
occurred any material outbreak or escalation of hostilities or other national or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment of
the Purchaser makes it impracticable or inadvisable to purchase the Securities at the Closing. 
 Section 6. [Reserved] 

Section 7. Listing of Common Stock. The Company hereby agrees to use best efforts to maintain the listing or quotation (as the
case may be) of the Common Stock on the Trading Market on which it is currently listed or designated for quotation (as the case may be). The Company further agrees, if the Company applies to have the Common Stock traded on any other Trading Market,
it will then include in such application all of the Shares and the Warrant Shares, and will take such other action as is necessary to cause all of the Shares and the Warrant Shares to be listed or quoted on such other Trading Market as promptly as
possible. The Company will then take all action necessary to continue the listing and trading of its Common Stock on a Trading Market and will comply in all respects with the Company’s reporting, filing and other obligations under the
bylaws or rules of the Trading Market. The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 7. 

Section 8. Use of Proceeds. The Company will use the proceeds from the sale of the Securities to the Purchaser to fund incremental
investment in growth and research and development initiatives by the Company; provided that the Company may not expend more than US$5,000,000 on biosimilars programs without the prior written consent of ABG or ABG LB (which consent shall not
be unreasonably withheld, conditioned or delayed) until the earlier of: (a) one year following the Closing Date, and (b) such date as the Purchaser ceases to own at least 50% of the Shares (including for this purpose any shares of Common
Stock issued to the Purchaser upon exercise of the Warrant). Notwithstanding the foregoing, the Purchaser’s consent shall not be required if the Company uses funds other than the proceeds from the sale of the Securities to the Purchaser for
biosimilars programs, such as proceeds from corporate funding or investments in the Company by investors other than the Purchaser. 

Section 9. Resale Registration Statement. 

9.1 Within 30 days following the Closing Date, the Company shall (a) file with the SEC, or (b) have filed with the SEC, a Resale
Registration Statement (the “Resale Registration Statement”) pursuant to Rule 415 under the Securities Act pursuant to which all of the Shares and Warrant Shares (the “Registrable Securities”) shall be
included (on the initial filing or by supplement thereto) to enable the public resale on a delayed or continuous basis of the Registrable Securities by the Purchaser. The Company shall file the Resale Registration Statement on such form as the
Company may then utilize under the rules of the SEC and use its commercially reasonable efforts to have the Resale Registration Statement declared effective under the Securities Act as soon as practicable, but in no event more than sixty
(60) days following the initial filing of the Registration Statement. The Company agrees to use its 

  
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commercially reasonable efforts to maintain the effectiveness of the Resale Registration Statement, including by filing any necessary post-effective amendments and prospectus supplements, or,
alternatively, by filing new registration statements relating to the Registrable Securities as required by Rule 415 under the Securities Act, continuously until the date (the “Resale Registration Expiration Date”) that is the
earlier of (i) five (5) years following the date of effectiveness of the Resale Registration Statement, or (ii) the date on which the Purchaser no longer holds any Registrable Securities covered by such Resale Registration Statement.

 9.2 Upon the effectiveness of the Resale Registration Statement, the Company shall, within 5 Business Days of such date, issue to the
Purchaser (and Allocated Purchasers, if any) Securities free from any restrictive legends, or cause appropriate book entry or other electronic changes to be made to the Securities to reflect that they are free of restrictive legends. 

Section 10. Piggyback Registration Rights. 

10.1 Following the Resale Registration Expiration Date, the Company shall notify the Purchaser in writing at least 15 days prior to the filing
of any registration statement under the Securities Act for purposes of a public offering of securities of the Company (including, but not limited to, registration statements relating to secondary offerings of securities of the Company, but excluding
(a) a registration statement relating to any employee benefit plan, (b) with respect to any corporate reorganization or transaction under Rule 145 of the Securities Act, any registration statement related to the issuance or resale of
securities issued in such a transaction, (c) a registration statement related to stock issued upon conversion of debt securities, (d) a registration on any registration form that does not permit secondary sales, or (e) a registration
on any form that does not include substantially the same information as would need to be included in a registration statement covering the sale of the Registrable Securities, and use its commercially reasonable efforts to include in such
registration statement all or part of such Registrable Securities requested to be included in such registration statement by the Purchaser. If the Purchaser desires to include in any such registration statement all or any part of the Registrable
Securities, the Purchaser shall, within ten days after the above-described notice from the Company, so notify the Company in writing. Such notice shall state the intended method of disposition of the Registrable Securities. If the Purchaser decides
not to include all of its Registrable Securities in any registration statement thereafter filed by the Company, the Purchaser shall nevertheless continue to have the right to include any Registrable Securities in any subsequent registration
statement or registration statements as may be filed by the Company with respect to offerings of its securities, all upon the terms and conditions set forth herein. 

10.2 If the registration statement of which the Company gives notice under this Section 10 is for an underwritten offering, the
Company shall so advise the Purchaser. In such event, the right of the Purchaser to include any Registrable Securities in a registration pursuant to this Section 10 shall be conditioned upon the Purchaser’s participation in such
underwriting and the inclusion of such Registrable Securities in the underwriting to the extent provided herein. The Purchaser shall enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such
underwriting by the Company. Notwithstanding any other provision of this Agreement, if the Company determines in good faith, based on consultation with the underwriter, that marketing factors require a limitation of the number of shares to be
underwritten, the number of shares that may be included in the underwriting shall be allocated, 

  
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first, to the Company for securities being sold for its own account; second, to the Purchaser and any other stockholder of the Company on a pro rata basis; provided, however,
that in no event shall (i) the Purchaser be excluded from such offering unless all other stockholders’ securities have been excluded from the offering on a pro rata basis, or (ii) the amount of securities of the Purchaser
included in the offering be reduced below 15% of the total amount of securities included in such offering, unless such offering does not include shares of any other selling stockholders, in which event any or all of the Registrable Securities may be
excluded in accordance with the immediately preceding clause. If the Purchaser disapproves of the terms of any such underwriting, the Purchaser may elect to withdraw therefrom by written notice to the Company and the underwriter, delivered at least
10 business days prior to the effective date of the registration statement. Any Registrable Securities excluded or withdrawn from such underwriting shall be excluded and withdrawn from the registration. 

10.3 The Company shall have the right to terminate or withdraw any registration initiated by it under this Section 10 whether or
not the Purchaser has elected to include securities in such registration. 
 10.4 The Company agrees to use its commercially reasonable
efforts to maintain the effectiveness of each registration statement that includes Registrable Securities pursuant to this Section 10 (each, a “Piggyback Registration Statement”), including by filing any necessary
post-effective amendments and prospectus supplements, or, alternatively, by filing new registration statements relating to the Registrable Securities as required by Rule 415 under the Securities Act, continuously for a period of up to forty-five
(45) consecutive days from the date that the Purchaser is first given the opportunity to sell all of the Registrable Securities covered by such Piggyback Registration Statement or, if earlier, until the Purchaser has completed the distribution
related thereto; provided that if such registration statement is a “shelf” registration statement filed pursuant to Rule 415 under the Securities Act, the Company shall use its commercially reasonable efforts to maintain the
effectiveness of such Piggyback Registration Statement until the date that is the earlier of (a) five (5) years following the date of effectiveness of such Piggyback Registration Statement, or (b) the date on which the Purchaser no
longer holds any Registrable Securities covered by such Piggyback Registration Statement. 
 Section 11. Additional Provisions
Relating to Registration. 
 11.1 Notwithstanding any other provisions of this Agreement to the contrary, the Company shall cause
(a) the Resale Registration Statement or Piggyback Registration Statement, as applicable (as of the effective date of the Resale Registration Statement or Piggyback Registration Statement, as applicable), any amendment thereof (as of the
effective date thereof) or supplement thereto (as of its date), (i) to comply in all material respects with the applicable requirements of the Securities Act and the rules and regulations of the SEC, and (ii) not to contain any untrue
statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein not misleading, and (b) any related prospectus, preliminary prospectus and any amendment thereof or
supplement thereto, as of its date, (i) to comply in all material respects with the applicable requirements of the Securities Act and the rules and regulations of the SEC, and (ii) not to contain any untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which 

  
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they were made, not misleading; provided, however, the Company shall have no such obligations or liabilities with respect to any written information pertaining to the Purchaser and
furnished to the Company by or on behalf of the Purchaser specifically for inclusion therein. 
 11.2 The Company shall notify the
Purchaser: (a) when the Resale Registration Statement or Piggyback Registration Statement, as applicable, or any amendment thereto has been filed with the SEC and when the Resale Registration Statement or Piggyback Registration Statement, as
applicable, or any post-effective amendment thereto has become effective; (b) of any request by the SEC for amendments or supplements to the Resale Registration Statement or Piggyback Registration Statement, as applicable, or the prospectus
included therein or for additional information; (c) of the issuance by the SEC of any stop order suspending the effectiveness of the Resale Registration Statement or Piggyback Registration Statement, as applicable, or the initiation of any
proceedings for that purpose and of any other action, event or failure to act that would cause the Resale Registration Statement or Piggyback Registration Statement, as applicable, not to remain effective; and (d) of the receipt by the Company
of any notification with respect to the suspension of the qualification or exemption from qualification of any Registrable Securities for sale in any jurisdiction or the initiation of any proceeding for such purpose. 

11.3 As promptly as practicable after becoming aware of such event, the Company shall notify the Purchaser of the happening of any event (a
“Suspension Event”), of which the Company has knowledge, as a result of which the prospectus included in the Resale Registration Statement or any Piggyback Registration Statement, as applicable, as then in effect, includes an
untrue statement of a material fact or omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, and use its best efforts promptly to prepare a supplement or amendment to the Resale
Registration Statement or any Piggyback Registration Statement, as applicable, to correct such untrue statement or omission, and deliver such number of copies of such supplement or amendment to the Purchaser as the Purchaser may reasonably request;
provided, however, that, for not more than fifteen (15) consecutive trading days (or a total of not more than thirty (30) trading days in any twelve (12) month period), the Company may delay the disclosure of material
non-public information concerning the Company (as well as prospectus or Resale Registration Statement or Piggyback Registration Statement, as applicable, updating), the disclosure of which at the time is not, in the good faith opinion of the
Company, in the best interests of the Company; provided, further, that, if the Resale Registration Statement or Piggyback Registration Statement, as applicable, was not filed on Form S-3, such number of days shall not include the
fifteen (15) calendar days following the filing of any Current Report on Form 8-K, Quarterly Report on Form 10-Q or Annual Report on Form 10-K, or other comparable form, for purposes of filing a post-effective amendment to the Resale
Registration Statement or Piggyback Registration Statement, as applicable. 
 11.4 Upon a Suspension Event, the Company shall give written
notice (a “Suspension Notice”) to the Purchaser to suspend sales of the Registrable Securities, and such notice shall state that such suspension shall continue only for so long as the Suspension Event or its effect is
continuing and the Company is pursuing with reasonable diligence the completion of the matter giving rise to the Suspension Event or otherwise taking all reasonable steps to terminate suspension of the effectiveness or use of the Resale Registration
Statement or Piggyback Registration Statement, as applicable. In no event shall the Company, without the prior written 

  
 - 17 - 

 
consent of the Purchaser, disclose to the Purchaser any of the facts or circumstances giving rise to the Suspension Event. The Purchaser shall not effect any sales of the Registrable Securities
pursuant to such Resale Registration Statement or Piggyback Registration Statement, as applicable (or such filings), at any time after it has received a Suspension Notice and prior to receipt of an End of Suspension Notice. The Purchaser may resume
effecting sales of the Registrable Securities under the Resale Registration Statement or Piggyback Registration Statement, as applicable (or such filings), following further notice to such effect (an “End of Suspension
Notice”) from the Company. This End of Suspension Notice shall be given by the Company to the Purchaser in the manner described above promptly following the conclusion of any Suspension Event and its effect. 

11.5 Notwithstanding any provision herein to the contrary, if the Company gives a Suspension Notice pursuant to this Section 11
with respect to the Resale Registration Statement or Piggyback Registration Statement, as applicable, the Company shall extend the period during which such Resale Registration Statement or Piggyback Registration Statement, as applicable, shall be
maintained effective under this Agreement by the number of days during the period from the date of the giving of the Suspension Notice to and including the date when Purchaser shall have received the End of Suspension Notice and copies of the
supplemented or amended prospectus necessary to resume sales. 
 11.6 The Company shall bear all Registration Expenses incurred in
connection with the registration of the Registrable Securities pursuant to this Agreement. “Registration Expenses” shall mean any and all expenses incident to the performance of or compliance with this Agreement, including
without limitation: (a) all registration and filing fees; (b) all fees and expenses associated with a required listing of the Registrable Securities on any securities exchange; (c) fees and expenses with respect to filings required to
be made with an exchange or any securities industry self-regulatory body; (d) fees and expenses of compliance with securities or “blue sky” laws (including reasonable fees and disbursements of counsel for the underwriters or holders
of securities in connection with blue sky qualifications of the securities and determination of their eligibility for investment under the laws of such jurisdictions); (e) printing, messenger, telephone and delivery expenses of the Company;
(f) fees and disbursements of counsel for the Company and customary fees and expenses for independent certified public accountants retained by the Company (including the expenses of any comfort letters, or costs associated with the delivery by
independent certified public accountants of a comfort letter or comfort letters, if such comfort letter or comfort letters is required by the managing underwriter); (g) securities acts liability insurance, if the Company so desires;
(h) all internal expenses of the Company (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties); (i) the expense of any annual audit; and (j) the fees and
expenses of any Person, including special experts, retained by the Company; provided, however that “Registration Expenses” shall not include underwriting fees, discounts or commissions attributable to the sale of such
Registrable Securities or any legal fees and expenses of counsel to the Purchaser. 

  
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 Section 12. Indemnification.  

12.1 In the event of the offer and sale of the Registrable Securities held by the Purchaser under the Securities Act, the Company agrees to
indemnify and hold harmless the Purchaser and its directors, officers, employees, Affiliates and agents and each person who controls Purchaser within the meaning of the Securities Act or the Exchange Act (collectively, the “Purchaser
Indemnified Parties”) from and against any losses, claims, damages or liabilities, joint or several, or any actions in respect thereof to which each Purchaser Indemnified Party may become subject under the Securities Act or the Exchange
Act, insofar as such losses, claims, damages, liabilities or actions arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Resale Registration Statement or Piggyback Registration
Statement, as applicable, or in any amendment thereof, in each case at the time such became effective under the Securities Act, or in any the preliminary prospectus or other information that is deemed, under Rule 159 promulgated under the Securities
Act to have been conveyed to purchasers of securities at the time of sale of such securities (“Disclosure Package”), prospectus or in any amendment thereof or supplement thereto, or (ii) the omission or alleged omission
to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a Disclosure Package or any prospectus, in the light of the circumstances under which they were made) not misleading, and
shall reimburse, as incurred, the Purchaser Indemnified Parties for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action in respect thereof;
provided, however, that the Company shall not be liable in any such case to the extent that such loss, claim, damage or liability arises out of or is based upon any untrue statement or omission made in the Resale Registration Statement
or Piggyback Registration Statement, as applicable, the Disclosure Package, any prospectus or in any amendment thereof or supplement thereto in reliance upon and in conformity with written information pertaining to the Purchaser and furnished to the
Company by or on behalf of such Purchaser Indemnified Party specifically for inclusion therein; provided further, however, that the Company shall not be liable in any such case to the extent that such loss, claim, damage or liability arises
out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission made in the Disclosure Package, where (A) such statement or omission had been eliminated or remedied in any subsequently filed amended
prospectus or prospectus supplement (the Disclosure Package, together with such updated documents, the “Updated Disclosure Package”), the filing of which the Purchaser had been notified in accordance with the terms of this
Agreement, (B) such Updated Disclosure Package was available at the time the Purchaser sold Registrable Securities under the Resale Registration Statement or Piggyback Registration Statement, as applicable, (C) such Updated Disclosure
Package was not furnished by the Purchaser to the person or entity asserting the loss, liability, claim, damage or liability, or an underwriter involved in the distribution of such Securities, at or prior to the time such furnishing is required by
the Securities Act, and (D) the Updated Disclosure Package would have cured the defect giving rise to such loss, liability, claim, damage or action; and provided further, however, that this indemnity agreement will be in addition
to any liability that the Company may otherwise have to such Purchaser Indemnified Party. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any Purchaser Indemnified Parties and shall
survive the transfer of the Registrable Securities by any Purchaser. 
 12.2 As a condition to including any Registrable Securities to be
offered by the Purchaser in any registration statement filed pursuant to this Agreement, the Purchaser agrees to indemnify and hold harmless the Company, each of its directors, each of its officers who signs the Resale Registration Statement or
Piggyback Registration Statement, as applicable, as well as 

  
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any officers, employees, Affiliates and agents of the Company, and each person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act (a
“Company Indemnified Party”) from and against any losses, claims, damages or liabilities or any actions in respect thereof, to which a Company Indemnified Party may become subject under the Securities Act or the Exchange Act,
insofar as such losses, claims, damages, liabilities or actions arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Resale Registration Statement or Piggyback Registration
Statement, as applicable, or in any amendment thereof, in each case at the time such became effective under the Securities Act, or in any Disclosure Package, prospectus or in any amendment thereof or supplement thereto, or (ii) the omission or
alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of the Disclosure Package or any prospectus, in the light of the circumstances under which they were made) not
misleading, but in each case only to the extent that the untrue statement or omission or alleged untrue statement or omission was made in reliance upon and in conformity with written information pertaining to the Purchaser and furnished to the
Company by or on behalf of the Purchaser specifically for inclusion therein; and, subject to the limitation immediately preceding this clause, shall reimburse, as incurred, the Company Indemnified Parties for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any loss, claim, damage, liability or action in respect thereof. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the
Purchaser, or any such director, officer, employees, Affiliates and agents and shall survive the transfer of such Registrable Securities by the Purchaser, and the Purchaser shall reimburse the Company, and each such director, officer, employees,
Affiliates and agents for any legal or other expenses reasonably incurred by them in connection with investigating, defending, or settling and such loss, claim, damage, liability, action, or proceeding; provided, however, that the indemnity
agreement contained in this Section 12.2 shall in no event exceed the gross proceeds from the offering received by the Purchaser. Such indemnity shall remain in full force and effect, regardless of any investigation made by or on behalf
of the Company or any such director, officer, employees, Affiliates and agents and shall survive the transfer by the Purchaser of such Registrable Securities. 

12.3 Promptly after receipt by a Purchaser Indemnified Party or a Company Indemnified Party (each, an “Indemnified
Party”) of notice of the commencement of any action or proceeding (including a governmental investigation), such Indemnified Party will, if a claim in respect thereof is to be made against the indemnifying party under this
Section 12, notify the indemnifying party of the commencement thereof; but the omission to so notify the indemnifying party will not relieve the indemnifying party from liability under Sections 12.1 or 12.2 unless and
to the extent it did not otherwise learn of such action and the indemnifying party has been materially prejudiced by such failure. In case any such action is brought against any Indemnified Party, and it notifies the indemnifying party of the
commencement thereof, the indemnifying party will be entitled to participate therein and, to the extent that it may wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably
satisfactory to such Indemnified Party (who shall not, except with the consent of the Indemnified Party, be counsel to the indemnifying party), and after notice from the indemnifying party to such Indemnified Party of its election so to assume the
defense thereof the indemnifying party will not be liable to such Indemnified Party under this Section 12 for any legal or other expenses, other than reasonable costs of investigation, subsequently incurred by such

  
 - 20 - 

 
Indemnified Party in connection with the defense thereof; provided, however, if such Indemnified Party shall have been advised by counsel that there are one or more defenses
available to it that are in conflict with those available to the indemnifying party (in which case the indemnifying party shall not have the right to direct the defense of such action on behalf of the Indemnified Party), the reasonable fees and
expenses of such Indemnified Party’s counsel shall be borne by the indemnifying party. In no event shall the indemnifying party be liable for the fees and expenses of more than one counsel (together with appropriate local counsel) at any time
for any Indemnified Party in connection with any one action or separate but substantially similar or related actions arising in the same jurisdiction out of the same general allegations or circumstances. No indemnifying party shall, without the
prior written consent of the Indemnified Party (not to be unreasonably withheld or delayed), effect any settlement of any pending or threatened action in respect of which any Indemnified Party is or could have been a party and indemnity could have
been sought hereunder by such Indemnified Party unless such settlement (i) includes an unconditional release of such Indemnified Party from all liability on any claims that are the subject matter of such action and (ii) does not include a
statement as to or an admission of fault, culpability or a failure to act by or on behalf of any Indemnified Party. If the indemnification provided for in this Section 12 is unavailable or insufficient to hold harmless an Indemnified
Party under Sections 12.1 or 12.2, then each indemnifying party shall contribute to the amount paid or payable by such Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred
to in Sections 12.1 or 12.2 in such proportion as is appropriate to reflect the relative fault of the indemnifying party or parties on the one hand and the Indemnified Party on the other in connection with the statements or omissions
that resulted in such losses, claims, damages or liabilities (or actions in respect thereof) as well as any other relevant equitable considerations. The relative fault of the parties shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company on the one hand or the Purchaser or Purchaser Indemnified Party, as the case may
be, on the other, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid by an Indemnified Party as a result of the losses, claims, damages or
liabilities referred to in the first sentence of this Section 12.3 shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any action or claim
that is the subject of this Section 12.3. The parties agree that it would not be just and equitable if contributions were determined by pro rata allocation (even if the Purchaser was treated as one entity for such purpose) or any
other method of allocation that does not take account of the equitable considerations referred to above. Notwithstanding any other provision of this Section 12.3, the Purchaser shall not be required to contribute any amount in excess of
the amount by which the net proceeds received by the Purchaser from the sale of the Registrable Securities pursuant to the Resale Registration Statement or Piggyback Registration Statement, as applicable, exceeds the amount of damages that Purchaser
has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. 

  
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 12.4 The agreements contained in this Section 12 shall survive the sale of the
Registrable Securities pursuant to the Resale Registration Statement and any Piggyback Registration Statement, and shall remain in full force and effect, regardless of any termination or cancellation of this Agreement or any investigation made by or
on behalf of any Indemnified Party. 
 Section 13. Furnishing of Information. As long as the Purchaser owns the Securities
or any Warrant Shares, the Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date of this Agreement pursuant to the
Exchange Act. As long as the Purchaser owns Securities or Warrant Shares, if the Company is not required to file reports pursuant to the Exchange Act, the Company will prepare and furnish to the Purchaser and make publicly available in
accordance with Rule 144(c) such information as is required for the Purchaser to sell the Shares or the Warrant Shares under Rule 144. The Company further covenants that it will take such further action as the Purchaser may reasonably request, all
to the extent required from time to time to enable the Purchaser to sell the Shares or the Warrant Shares without registration under the Securities Act within the limitation of the exemptions provided by Rule 144. 

Section 14. Indemnification. In addition to any other indemnity provided in the Transaction Documents, the Company will
indemnify and hold the Purchaser and its directors, officers, stockholders, partners, employees, advisers, affiliates and agents (each, a “Purchaser Party”) harmless from any and all losses, liabilities, obligations,
claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation (collectively, “Losses”) that any such
Purchaser Party may suffer or incur as a result of or relating to (a) any misrepresentation, breach or inaccuracy of any representation, warranty, covenant or agreement made by the Company in any Transaction Document, and (b) any action
instituted against a Purchaser Party in any capacity, or any of them or their respective affiliates, by any stockholder of the Company who is not an affiliate of such Purchaser Party, with respect to any of the transactions contemplated by this
Agreement. In addition to the indemnity contained herein, the Company will reimburse each Purchaser Party for its reasonable legal and other expenses (including the cost of any investigation, preparation and travel in connection therewith)
incurred in connection therewith, as such expenses are incurred. 
 Section 15. Governing Law; Jurisdiction; Waiver of Jury
Trial. This Agreement shall be construed under the laws of the state of California, without regard to principles of conflicts of law or choice of law that would permit or require the application of the laws of another jurisdiction. The Company
and the Purchaser each hereby agrees that all actions or proceedings arising directly or indirectly from or in connection with this Agreement shall be litigated only in the Superior Court of the State of California or the United States District
Court for the Southern District of California located in San Diego County, California. The Company and the Purchaser each consents to the exclusive jurisdiction and venue of the foregoing courts and consents that any process or notice of motion or
other application to either of said courts or a judge thereof may be served inside or outside the State of California or the Southern District of California by generally recognized overnight courier or certified or registered mail, return receipt
requested, directed to such party at its or his address set forth below (and service so made shall be deemed “personal service”) or by personal service or in such other manner as may be permissible under the rules of said courts. THE
COMPANY AND THE PURCHASER EACH HEREBY WAIVES ANY RIGHT TO A JURY TRIAL IN CONNECTION WITH ANY LITIGATION PURSUANT TO THIS AGREEMENT. 

  
 - 22 - 

 Section 16. Counterparts. This Agreement may be executed in two or more identical
counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile signature shall be considered
due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original, not a facsimile signature. 

Section 17. Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the
interpretation of, this Agreement. 
 Section 18. Fees and Expenses. Except as otherwise provided in this Agreement, all
expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such expenses; provided, however, that the Company shall reimburse at, and contingent upon, the Closing,
the actual, reasonable and documented fees and expenses of Debevoise & Plimpton LLP, counsel to the Purchaser, not to exceed US$80,000 and provided further that the Purchaser shall be entitled, in its discretion upon written notice
to the Company, to set-off such reimbursement amount against the Purchase Price to be delivered by the Purchaser to the Company at the Closing. 

Section 19. Severability. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such
invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction. 

Section 20. Entire Agreement; Amendments. This Agreement supersedes all other prior oral or written agreements between the
Purchaser, the Company, their Affiliates and persons acting on their behalf with respect to the matters discussed herein, and this Agreement and the instruments referenced herein contain the entire understanding of the parties with respect to the
matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor the Purchaser makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this
Agreement may be amended other than by an instrument in writing signed by the Company and the Purchaser. No provision hereof may be waived other than by an instrument in writing signed by the party against whom enforcement is sought. 

Section 21. Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of
this Agreement must be in writing and will be deemed to have been delivered: (a) upon receipt, when delivered personally; (b) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically
generated and kept on file by the sending party); or (c) one calendar day (excluding Saturdays, Sundays, and national banking holidays in the United States) after deposit with an overnight courier service, in each case properly addressed to the
party to receive the same. 

  
 - 23 - 

 The addresses and facsimile numbers for such communications shall be: 

If to the Company: 
 Sorrento
Therapeutics Inc. 
 9380 Judicial Drive 

San Diego, California 92121 

Facsimile: (858) 210-3759 

Attn: Henry Ji, Ph.D. 
 With a
copy (which shall not constitute notice) to: 
 Paul Hastings LLP 

4747 Executive Drive, 12th Floor 

San Diego, CA 92121 
 Facsimile:
858-458-3122 
 Attn: Jeffrey Hartlin, Esq. 

If to the Purchaser: 
 ABG SRNE
Limited 
 Ally Bridge LB Healthcare Master Fund Limited 

30th floor, Gloucester Tower, The Landmark 

Central, Hong Kong 
 Facsimile:
+852 2562 2026 
 Attn: Ken Law 

With a copy (which shall not constitute notice) to: 

Debevoise & Plimpton 

21/F, AIA Central 
 One Connaught
Road Central 
 Central, Hong Kong 

Facsimile: +852-2810-9828 
 Attn:
William Y. Chua 
 or to such other address and/or facsimile number and/or to the attention of such other person as the recipient party has specified by
written notice given to each other party five (5) days prior to the effectiveness of such change. 
 Section 22. Successors and
Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns, including any purchasers of the Securities or the Warrant Shares. For the avoidance of doubt, nothing in this
Agreement shall prohibit, after the Closing, a Purchaser from assigning its rights hereunder. 
 Section 23. No Third Party
Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, including any purchasers of the Securities or the Warrant Shares, and is not for the benefit of, nor may any
provision hereof be enforced by, any other person. 

  
 - 24 - 

 Section 24. Survival of Representations. The representations, warranties and
covenants of the Company and the Purchaser contained in this Agreement shall survive the Closing and shall in no way be affected by any investigation of the subject matter thereof made by or on behalf of the Purchaser or the Company. The Company
shall indemnify and hold harmless the Purchaser for any and all losses suffered by the Purchaser as a result of, in connection with, or relating to, any breach by the Company of any representation, warranty and/or covenant of the Company in this
Agreement or in any certificate, document or other writing delivered by the Company to the Purchaser pursuant to this Agreement. 

Section 25. Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and
things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation
of the transactions contemplated hereby. 
 Section 26. Termination. This Agreement may be terminated and the sale and purchase
of the Securities abandoned at any time prior to the Closing Date by either the Company or the Purchaser upon written notice to the other, if the Sale has not been consummated on or prior to 5:00 p.m., Pacific Time, on May 31,
2016; provided, however, that the right to terminate this Agreement under this Section 26 shall not be available to any Person whose failure to comply with its obligations under this Agreement has been the cause of or
resulted in the failure of the Sale to occur on or before such time. Nothing in this Section 26 shall be deemed to release any party from any liability for any breach by such party of the terms and provisions of this Agreement or the
other Transaction Documents or to impair the right of any party to compel specific performance by any other party of its obligations under this Agreement or the other Transaction Documents. Upon a termination in accordance with this Section
26, the Company and Purchaser shall not have any further obligation or liability (including arising from such termination) to the other. The Company and the Purchaser may extend the term of this Agreement in accordance with the amendment
provisions of Section 20. 
 Section 27. Language. This Agreement has been prepared in the English language and the
English language shall control its interpretation. In addition, all notices required or permitted to be given hereunder, and all written, electronic, oral or other communications between the parties regarding this Agreement, shall be in the English
language. 
 [Signature Page Follows] 

  
 - 25 - 

 IN WITNESS WHEREOF, the parties have executed this Securities Purchase Agreement as of the date
first written above. 
 SORRENTO THERAPEUTICS, INC. 

			
		
	By:	 	/s/ Henry Ji, Ph.D.

			
	Name:	 	Henry Ji, Ph.D.
	Title:	 	President & Chief Executive Officer

 ALLY BRIDGE LB HEALTHCARE MASTER FUND LIMITED 

			
		
	By:	 	/s/ Li Bin

			
	Name:	 	Li Bin
	Title:	 	Director

 ABG SRNE LIMITED 

			
		
	By:	 	/s/ Shan-Ju Yeh

			
	Name:	 	Shan-Ju Yeh
	Title:	 	Director

 By execution and delivery of this signature page, the undersigned executes and becomes a party
to, and bound by, the terms and conditions of the enclosed Securities Purchase Agreement entered into between Sorrento Therapeutics, Inc., ABG SRNE Limited and Ally Bridge LB Healthcare Master Fund Limited dated 3 April 2016 (the
“SPA”) as a “Purchaser” thereunder pursuant to Section 1.3 therein, and authorizes this signature page to be attached to the SPA, or counterparts thereof. 

The undersigned hereby agrees to unconditionally waive Section 5.6 of the SPA. 

Executed, in counterpart, as of 31 May, 2016 
 BOCOM
INTERNATIONAL ASSET MANAGEMENT LIMITED 

			
		
	By:	 	/s/ Lu Xiangrong

			
	Name:	 	Lu Xiangrong
	Title:	 	General Manager

  

			
		
	By:	 	/s/ Li Wu

			
	Name:	 	Li Wu
	Title:	 	Deputy General Manager

 By execution and delivery of this signature page, the undersigned executes and becomes a party
to, and bound by, the terms and conditions of the enclosed Securities Purchase Agreement entered into between Sorrento Therapeutics, Inc., ABG SRNE Limited and Ally Bridge LB Healthcare Master Fund Limited dated 3 April 2016 (the
“SPA”) as a “Purchaser” thereunder pursuant to Section 1.3 therein, and authorizes this signature page to be attached to the SPA, or counterparts thereof. 

The undersigned hereby agrees to unconditionally waive Section 5.6 of the SPA. 

Executed, in counterpart, as of 6 June, 2016 
 NANJING
SIMCERE DONGYUAN PHARMACEUTICAL CO., LTD. 

			
		
	By:	 	/s/ Jinsheng Ren

			
	Name:	 	Jinsheng Ren
	Title:	 	Chairman

 By execution and delivery of this signature page, the undersigned executes and becomes a party
to, and bound by, the terms and conditions of the enclosed Securities Purchase Agreement entered into between Sorrento Therapeutics, Inc., ABG SRNE Limited and Ally Bridge LB Healthcare Master Fund Limited dated 3 April 2016 (the
“SPA”) as a “Purchaser” thereunder pursuant to Section 1.3 therein, and authorizes this signature page to be attached to the SPA, or counterparts thereof. 

The undersigned hereby agrees to unconditionally waive Section 5.6 of the SPA. 

Executed, in counterpart, as of June 7, 2016 

AUSPICIOUS LOTUS LIMITED 

			
		
	By:	 	/s/ Zheng Huang

			
	Name:	 	Zheng Huang
	Title:	 	Executive Director

 EXHIBIT C 

ALLOCATION OF PURCHASERS AND ADDITIONAL PURCHASERS

  

					
	ABG SRNE Limited
			
	Address:	  		 	30th floor, Gloucester Tower
		  		 	The Landmark, Central
		  		 	Hong Kong
	Facscimile:	  		 	+852 2562 2026
	Attention:	  		 	Ken Law
	
	Number of Securities purchased May 31, 2016: 1,441,441 Shares and Warrant to Purchase 432,432 Shares
	
	Investment amount: $8,000,000
	
	Number of Securities to be purchased June 7, 2016: 1,801,801 Shares and Warrant to Purchase 540,540 Shares
	
	Investment amount: US$10,000,000

  

					
	Ally Bridge LB HealthCare Master Fund Limited
			
	Address:	  		 	30th floor, Gloucester Tower
		  		 	The Landmark, Central
		  		 	Hong Kong
	Facscimile:	  		 	+852 2562 2026
	Attention:	  		 	Ken Law
	
	Number of Securities purchased May 31, 2016: 1,441,441 Shares and Warrant to Purchase 432,432 Shares
	
	Investment amount: $8,000,000

  

					
	Bocom International Asset Management Limited
			
	Address:	  		 	11th Floor, Man Yee Building
		  		 	68 Des Voeux Road, Central
		  		 	Hong Kong
	Facscimile:	  		 	+852 2259 9283
	Attention:	  		 	Chen, Yilian & Chen, Yujie
	
	Number of Allocated Securities purchased May 31, 2016: 1,801,801 Shares and Warrant to Purchase 540,540 Shares
	
	Investment amount: $10,000,000

					
	Nanjing Simcere Dongyuan Pharmaceutical Co., Ltd.
			
	Address:	  		 	8 Xinglong Road,
		  		 	Pukou Economic Development Zone
		  		 	Nanjing, Jiangsu
		  		 	China
	Email:	  		 	renwin@simcere.com
	Attention:	  		 	Jinsheng Ren
	
	Number of Allocated Securities purchased June 6, 2016: 1,801,801 Shares and Warrant to Purchase 540,540 Shares
	
	Investment amount: $10,000,000

  

					
	Auspicious Lotus Limited
			
	Address:	  		 	NovaSage Chambers
		  		 	Wickham’s Cay II
		  		 	Road Town, Tortola
		  		 	British Virgin Islands
	Attention:	  		 	Ms. Zheng Huang
	
	Number of Allocated Securities to be purchased June 7, 2016: 720,720 Shares and Warrant to Purchase 216,216 Shares
	
	Investment amount: $4,000,000

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