Document:

Contingent Value Rights Agreement

 Exhibit 10.2 
 CONTINGENT VALUE RIGHTS AGREEMENT 
 THIS CONTINGENT
VALUE RIGHTS AGREEMENT, dated as of January 14, 2011 (this “Agreement”), is entered into by and among Ligand Pharmaceuticals Incorporated, a Delaware corporation (“Parent”), CyDex
Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and Allen K. Roberson and David Poltack, acting jointly as Shareholders’ Representative (collectively the “Shareholders’
Representative”). 
 Preamble 

Parent, Caymus Acquisition, Inc., a Delaware corporation and wholly-owned subsidiary of Parent
(“Sub”), and the Company entered into an Agreement and Plan of Merger dated as of January 14, 2011 (the “Merger Agreement”), pursuant to which Sub will merge with and into the Company (the
“Merger”), with the Company surviving the Merger as a subsidiary of Parent (the “Surviving Corporation”). 
 Pursuant to the Merger Agreement, Parent agreed to (subject to certain prerequisites as stated in the Merger Agreement) create and issue to the Company’s stockholders of record immediately before the
Effective Time, contingent value rights as hereinafter described. 
 The parties have done all things necessary
to make the contingent value rights, when issued pursuant to the Merger Agreement and hereunder, the valid obligations of Parent and to make this Agreement a valid and binding agreement of Parent, in accordance with its terms. 

NOW, THEREFORE, for and in consideration of the premises and the consummation of the transactions referred to above, it
is mutually covenanted and agreed, for the benefit of the Holders (as hereinafter defined), as follows: 
 ARTICLE I

 DEFINITIONS 
 Section 1.1. Definitions. 
 (a) For all
purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires: 
 (i) the terms defined in this Article have the meanings assigned to them in this Article, and include the plural as well as the singular; 

(ii) all accounting terms used herein and not expressly defined herein shall have the meanings assigned to
such terms in accordance with United States generally accepted accounting principles, as in effect on the date hereof; 
 (iii) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or other
subdivision; 
 (iv) unless the context otherwise requires, words describing the singular number
shall include the plural and vice versa, words denoting any gender shall include all genders and words denoting natural Persons shall include corporations, partnerships and other Persons and vice versa; and 

  
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 (v) all references to “including” shall be deemed
to mean including without limitation. 
 (b) Capitalized terms used but not otherwise defined
herein shall have the meanings ascribed thereto in the Merger Agreement. The following terms shall have the meanings ascribed to them as follows: 
 “Accountant” has the meaning set forth in Section 2.9. 
 “Adjustment” has the meaning set forth in Section 2.4(e)(v). 
 “Adjustment Date” has the meaning set forth in Section 2.4(e)(v). 
 “Affiliate” means, with respect to any Person, any Person that controls, is controlled by, or is under common control with such Person. 

“Board of Directors” means the board of directors of Parent. 

“Board Resolution” means a copy of a resolution certified by the secretary or an assistant secretary of
Parent to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification. 
 “Business Day” means any day other than a Saturday, Sunday or a day on which the banks in San Diego, California are authorized or obligated by law or executive order to close. 

“Clopidogrel License” means any license agreement with a third party with respect to rapid onset
intravenous Clopidogrel that may be executed by the Company after the Effective Time and before December 31, 2016. 
 “Clopidogrel Payment” means a payment to be made on a Clopidogrel Payment Date in the applicable Clopidogrel Payment Amount. 

“Clopidogrel Payment Amount” (a) if the Clopidogrel License is executed with
The Medicines Company on or before the ninetieth
(90th) day after the Closing Date, then (i) 100%
of the upfront fee received by the Company pursuant thereto, but excluding any portion of such upfront fee exceeding $1,750,000; plus (ii) 50% of the cumulative amount of Clopidogrel Revenue received (excluding from Clopidogrel Revenue for the
purposes of this clause the amounts payable under clause (a)(i)) (the “Subsequent Clopidogrel Payment Amounts”) less the cumulative Subsequent Clopidogrel Payment Amounts previously paid to the Shareholders’ Account; or (b) if
the Clopidogrel License is not executed with The Medicines Company on or before the ninetieth (90th) day after the Closing Date or is executed with a company other than The Medicines Company, then 50% of the cumulative amount of Clopidogrel Revenue received less the cumulative Clopidogrel
Payment Amounts previously paid to the Shareholders’ Account. 
 “Clopidogrel Payment
Date” means the tenth Business Day following the receipt of any Clopidogrel Revenue that will result in a Clopidogrel Payment. (There can be more than one such Clopidogrel Payment Date, i.e., if Clopidogrel Revenue is received on more than
one date.) 

  
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 “Clopidogrel Revenue” means the excess of (a) any and
all upfront fees or milestone fees ever received by Parent under the Clopidogrel License, if any, over (b) any and all payments required to be made to Prism in respect of such upfront fees or milestone fees. (For the avoidance of doubt:
Clopidogrel Revenue does not include running royalty payments.) The determination of Clopidogrel Revenue shall be consistent with the factual and GAAP determinations with respect to same made in Parent’s audited financial statements for the
applicable Year and the payments made with respect to Clopidogrel Revenue received in any Quarter during any Year shall be subject to adjustment based on the results of the audit following such Year, with any such adjustment to be reflected in the
Clopidogrel Payment and/or Revenue Sharing Payment to be made for the next-following Quarter(s) until satisfied or, in the case of the last payment, by a payment to or from (as appropriate to reflect the adjustment) the Shareholders’ Account
within 30 Business Days after the delivery of such audit to the Shareholders’ Representative. 

“Company Assets” means any non-financial assets of the Company acquired by Parent as a result of the
Merger, including, without limitation, the Company Technology. 
 “Company Business” means the
business conducted before the Merger by the Company with respect to the Company Technology, and any business that may be conducted after the Merger by Parent or any affiliate of Parent (including, without limitation, the Surviving Corporation)
utilizing the Company Technology in whole or in part. 
 “Company Technology” means any Company
technology, including, without limitation, the Company’s Captisol technology and other Cyclodextrin derivatives, together with any derivations, improvements and modifications thereto. 

“CVR Payment Amount” means an applicable respective amount payable pursuant to Onyx Drug Application
Payment, Onyx Drug Approval Payment, any Clopidogrel Payment, Payment A and the Revenue Sharing Payments. 

“CVR Payment Date” means the Onyx Drug Application Payment Date, the Onyx Drug Approval Payment Date,
any Clopidogrel Payment Date, the Payment A Date, and any Revenue Sharing Payment Date, as applicable. 

“CVR Register” has the meaning set forth in Section 2.3(b). 

“CVR Registrar” has the meaning set forth in Section 2.3(b). 

“CVRs” means the Contingent Value Rights issued by Parent pursuant to the Merger Agreement and this
Agreement, whether Postclosing CVRs or CVRs issued at Closing of the Merger (Closing having the meaning set forth in the Merger Agreement). Certain CVRs will be designated as Series B CVRs, Series A CVRs, Series A-1 CVRs and Common CVRs, as set
forth in the Shareholders’ Representative Agreement. Unless otherwise specified herein, all the CVRs shall be considered as part of and shall act as one class only for purposes of this Agreement. 

“Default” shall mean that any of the following has occurred and has not been cured by Parent within five
Business Days after written notice by the Shareholders’ Representative to Parent thereof: (a) Parent fails to pay to the Shareholders’ Account any amount as and when required hereunder, (b) at any time Parent is obligated for
more than $35,000,000 of financial indebtedness (other than financial indebtedness which is expressly subordinated to all obligations of Parent hereunder 

  
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pursuant to a written subordination agreement signed by and reasonably acceptable to the Shareholder Representative), (c) at any time after March 15, 2011 Parent’s cash, cash
equivalents and short-term investments (minus any restricted cash) is less than $10,000,000, (d) Parent fails to notify the Shareholder Representative promptly if either of the events set forth in clauses (b) or (c) occur,
(e) Parent commits any material breach of this Agreement, including but not limited to any breach of clauses (a) or (d) above or failure to deliver any Quarterly Report or Interim Certificate complying with Section 2.4(e)(i)
below. It is understood that in the event of a good faith dispute regarding item “(a)” (e.g., as to Indemnification Offset), no amount subject to a bona fide dispute shall be due until the Dispute is resolved in favor of the
Shareholders’ Representative pursuant to Section 6.10 hereof. 
 “Dispute” has the
meaning set forth in Section 6.10. 
 “Effective Time” has the meaning set forth in the
Merger Agreement. 
 “Entitlement Certificate” has the meaning set forth in
Section 2.4(d). 
 “Escrow Agent” means a financial institution chosen as Escrow Agent by
mutual agreement of Shareholders’ Representative and Parent prior to the Effective Time, or its successor, determined in accordance with the Escrow Agreement. 

“Escrow Agreement” means the agreement among the Shareholders’ Representative, the Parent, and the
Escrow Agent providing the terms and conditions by which the Escrow Agent will hold the Escrow Amount, of even date herewith. 
 “Escrow Amount” means the amounts, if any, to be held in the escrow account established and funded as contemplated by the Merger Agreement and this Agreement and held in accordance with
the terms and conditions of the Escrow Agreement, the interest on which shall be paid to the Parent. 

“FTE” means the full time equivalent effort of one employee with a B.A., B.Sc., M.S., or Ph.D. or
equivalent degree or one employee without such degree but with a minimum of five years senior management experience in the biotech or pharmaceutical industry consisting of 1,875 hours per Year of business development, operational, technical, legal
or scientific work. 
 “GAAP” means United States generally accepted accounting principles, as
consistently applied by Parent. 
 “Holder” means a Person in whose name a CVR is registered in
the CVR Register. 
 “Indemnification Amount” means (on a cumulative basis) 100% of the
monetary value of any Losses (subject to a cumulative cap of $2,500,000 of Losses, and further subject to Section 2.7(a) below) directly or indirectly arising out of, relating to or resulting from any of the following, and incurred or suffered
by Parent, any of Parent’s Affiliates, the Surviving Corporation or any of their respective directors, officers, employees, agents, consultants, advisors, representatives and equity holders (individually the “Indemnified Party” and
collectively, the “Indemnified Parties”): 
 (i) any inaccuracy in or breach of any
representation or warranty of the Company contained in the Merger Agreement, any Ancillary Agreement or in any certificate, instrument or document delivered by the Company in connection with the Merger Agreement; 

  
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 (ii) the nonfulfillment, nonperformance or other breach of
any covenant or agreement of the Company contained in the Merger Agreement, any Ancillary Agreement or in any certificate, instrument or document delivered pursuant thereto; and 

(iii) any claim by any actual or purported stockholder or former stockholder of the Company, or any other
Person, seeking to assert, or based upon (i) ownership or rights to ownership of any equity securities, (ii) any rights of a stockholder (other than the right to receive such stockholder’s portion of the Merger Consideration pursuant
to the Merger Agreement), including any option, preemptive rights or rights to notice or to vote, (iii) any rights under the Company Charter Documents, in effect as of immediately before the Effective Time, or (iv) any claim that his, her
or its equity securities were wrongfully repurchased by the Company. 
 Provided, however, that the
Indemnification Amount shall be deemed to be zero unless and until the aggregate such Losses exceed $250,000 (the “Basket”), in which case the Indemnification Amount shall include all such Losses, including those constituting the Basket.

 If an Indemnified Party determines to seek indemnification under this Agreement with respect to one or more
indemnifiable claims resulting from the assertion of liability by any third party (an “Indemnifiable Claim”), it shall give notice to the Shareholders’ Representative within 20 calendar days of the Indemnified Party becoming aware of
such claim (a “Claim Notice”), which notice shall set forth such material information with respect to such Indemnifiable Claim as is then reasonably available to the Indemnified Party. If any such liability is asserted against the
Indemnified Party and the Indemnified Party notifies the Shareholders’ Representative of such liability, the Shareholders’ Representative shall be entitled, if it so elects by written notice delivered to the Indemnified Party within 20
calendar days after receiving the Claim Notice, to assume the defense of such asserted liability with counsel reasonably satisfactory to the Indemnified Party. If the Shareholders’ Representative elects to assume the defense of such asserted
liability, the claims made by such third party shall be conclusively established as being within the scope of and subject to the indemnification provisions of this Agreement. Notwithstanding the foregoing, the Indemnified Party shall have the right
to employ its own counsel in any such case, but the fees and expenses of such counsel shall be payable by the Indemnified Party. With respect to any assertion of liability by a third party that results in an Indemnifiable Claim, the parties shall
make reasonably available to each other all relevant information in their possession that is material to any such assertion and otherwise cooperate in the defense of the Indemnifiable Claim subject to their respective attorney-client privileges and
work product doctrine protections. 
 If the Shareholders’ Representative disputes its liability with
respect to such Indemnifiable Claim, it shall, within 20 calendar days after receiving the Claim Notice with respect to such Indemnifiable Claim, give written notice of such dispute to the Indemnified Party in which event the parties will negotiate
in good faith to mutually agree to resolve such dispute. If the parties are unable to resolve the indemnifiability of the Indemnifiable Claim within 60 calendar days after the Shareholders’ Representative delivers such notice, then pending
resolution of any such dispute, the Indemnified Party shall have the right to defend, compromise, or settle such Indemnifiable Claim at the risk of the Shareholders’ Representative, subject to the cumulative cap on Indemnifiable Losses provided
herein. 
 “Indemnification Offset” means the cumulative Indemnification Amount (to the extent
not recovered by subtraction from previous Revenue Sharing Payments) as of the date of a Revenue Sharing Payment. 

  
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 “Loss” means any loss, Legal Proceeding, judgment,
settlement, order, injunction, decree, ruling, assessment, arbitration award, damage, fine, penalty, expense (including reasonable attorneys’ or other professional fees and expenses and court costs), injury, diminution of value, Tax,
Encumbrance, liability, debts or other obligations of any nature, whether known or unknown, absolute, accrued, contingent, liquidated, unliquidated or otherwise, due or to become due or otherwise, and whether or not required to be reflected on a
balance sheet prepared in accordance with GAAP, or other cost, expense or adverse effect whatsoever, whether or not involving the claim of another Person. 
 “Nontendering Shareholders” means holders of Company Shares who have not properly tendered those Company Shares and the related Company Stock Certificates, Transmittal Letters (such
capitalized terms not defined herein having the meaning set forth in the Merger Agreement), and signature pages to the Shareholders’ Representative Agreement pursuant to section 2.08 of the Merger Agreement as of the Effective Time. 

“Onyx Drug” means Carfilzomib, formulated with Captisol, as currently in development by Onyx
Pharmaceuticals, Inc. as a drug in multiple myeloma and solid tumors. 
 “Onyx Drug Application
Payment” means $2,000,000. 
 “Onyx Drug Application Payment Date” means the fifth
Business Day following the filing of a bona fide New Drug Application for the Onyx Drug with the FDA. 

“Onyx Drug Approval Payment” means $3,500,000. 

“Onyx Drug Approval Payment Date” means the fifth Business Day following FDA approval of the Onyx
Drug’s New Drug Application. 
 “Paid Annual Revenue Sharing Amount” has the meaning set
forth in Section 2.4(e)(v). 
 “Payment A” means a payment to be made on the first
anniversary of the Effective Time (or such sooner date as Parent may in its sole discretion designate) equal to $4,300,000. 
 “Payment A Date” means the first anniversary of the Effective Time (or such sooner date as Parent may in its sole discretion designate). 

“Permitted Transfer” means any transfer which is not in violation of applicable securities laws and in
connection with which the transferee has executed and delivered a joinder signature page as to the Shareholders’ Representative Agreement; provided, that in the case of a transfer of Series B CVRs, Series A-1 CVRs or Common CVRs, the transfer
must also be in at least one of the following categories for the transfer to be a Permitted Transfer: (i) the transfer of any or all of the CVRs (upon the death of the Holder) by will or intestacy; (ii) transfer by instrument to an inter
vivos or testamentary trust in which the CVRs are to be passed to beneficiaries upon the death of the trustee; (iii) transfers made pursuant to a court order of a court of competent jurisdiction (such as in connection with divorce, bankruptcy
or liquidation); (iv) if the Holder is a partnership or limited liability company, a distribution by the transferring partnership or limited liability company to its partners or members, as applicable; (v) a transfer made by operation of
law (including a consolidation or merger) or in connection with the dissolution, liquidation or termination of any corporation, limited liability company, partnership or other entity; (vi) a transfer from a participant’s

  
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account in a tax-qualified employee benefit plan to the participant or to such participant’s account in a different tax-qualified employee benefit plan or to a tax-qualified individual
retirement account for the benefit of such participant; (vii) a transfer from a participant in a tax-qualified employee benefit plan, who received the CVRs from such participant’s account in such tax-qualified employee benefit plan, to
such participant’s account in a different tax-qualified employee benefit plan or to a tax-qualified individual retirement account for the benefit of such participant; or (viii) any transfer of a CVR by a venture capital firm, private
equity firm, or other similarly-situated type of institutional investor that (a) provides to Parent an opinion of legal counsel that such transfer can be effected pursuant to an applicable exemption from the registration requirements of the
Securities Act of 1933 and other applicable securities laws that is reasonably acceptable to Parent; and (b) certifies to Parent that it has not received a Quarterly Report dated within six (6) months prior to such transfer. 

“Person” means any individual, firm, corporation, limited liability company, partnership, trust or other
entity, and shall include any successor (by merger or otherwise) thereof or thereto. 
 “Postclosing
CVRs” means the CVRs issuable to Nontendering Shareholders who comply with the provisions of Section 2.08(a) of the Merger Agreement after the Effective Time. 

“Quarter” means any full or partial calendar quarter during any Year. 

“Quarterly Report” has the meaning set forth in Section 2.4(e). 

“Required Funding” has the meaning set forth in Section 2.6. 

“Revenue” means all revenues and other assets received during any Quarter during any Year during the
Term, by Parent or any Affiliate of Parent from any non-Affiliate of Parent, from the sale of products involving the Company Assets or the Company Technology (including products combining the Company Technology with other products or services and
products containing any product derived from the Company Technology as a component part), the licensing of the Company Technology (whether upfront fees, royalty fees or milestone fees), materials sales, contract development and grants, but excluding
the Clopidogrel Payment Amounts. The determination of Revenue shall be consistent with the factual and GAAP determinations with respect to same made in Parent’s audited financial statements for the applicable Year and the payments made with
respect to Revenue received in any Quarter during any Year shall be subject to adjustment based on the results of the audit following such Year, with any such adjustment to be reflected in the Revenue Sharing Payment to be made for the
next-following Quarter or, in the case of the last payment, by a payment to or from (as appropriate to reflect the adjustment) the Shareholders’ Account within 30 Business Days after the delivery of such audit to the Shareholders’
Representative. In the event that a product involving the Company Technology is sold as a single product, component, or service, or in the event that the sale is of a pharmaceutical product that is enhanced or enabled by integration with the
Captisol technology, then Revenue shall include 100% of the revenues or other assets received from such sale or other transaction. “Revenue” for any Quarter during the Term shall additionally include the present value (discounted at an
annual rate of 10%) of all revenues and other assets unconditionally guaranteed to be received after such Quarter (including, without limitation, future minimum guaranteed royalty or milestone payments) pursuant to written agreements entered into
during such Quarter during the Term by Parent or any Affiliate of Parent (including, without limitation, the Surviving Corporation) from such sale, licensing, materials sales, contract development and grants; but thereafter the actual receipt of
such unconditionally guaranteed revenues and other assets shall not be included within “Revenue.” The preceding sentence shall not apply to 

  
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any portion of such revenues and other assets unconditionally guaranteed to be received after a Quarter which pertain to bona fide agreements for payment for or funding of the provision of
services (e.g., drug research/development services) over an extended period; in such a case, the guaranteed payments shall be prorated over the period in which the services would be provided and deemed to be received on a daily basis in accordance
with such proration (by way of example: on November 1, 2016 Parent enters into such a bona fide agreement to provide drug research/development services over 36 months, with payment of a guaranteed fixed $1,000,000 to come at the end of the 36
months—2016 Revenue would include 2/36 of $1,000,000). 
 “Revenue Sharing Amount” means
20% of all Revenue recognized during any Quarter in each applicable Year, but only to the extent that and beginning only when aggregate Revenues for such Year exceed $15,000,000; plus an additional 10% of all Revenue recognized during any Quarter in
each applicable Year, but only to the extent that and beginning only when aggregate Revenues for such Year exceed $35,000,000. 
 “Revenue Sharing Payment” means the excess, if any, of (a) the Revenue Sharing Amount for an applicable Quarter; over (b) an amount equal to the Indemnification Offset as of the
applicable Revenue Sharing Payment Date. Provided, that in no event may any further reductions be made from Revenue Sharing Payments on account of a quantity “(b)” after a cumulative total of $2,500,000 of such reductions have been made
from Revenue Sharing Payments. It is understood that such reductions from Revenue Sharing Payments shall be Parent’s sole remedy for claims arising from the Indemnification Amount. 

“Revenue Sharing Payment Date” means 45 Business Days after the end of the Quarter during which a
Revenue Sharing Payment is earned. 
 “Shareholders’ Account” means a bank account
designated by the Shareholders’ Representative to Parent in writing. 
 “Shareholders’
Representative Agreement” shall mean that certain Shareholders’ Representative Agreement by and among the Company and the Shareholders’ Representative and some or all of the Holders, dated as of January 14, 2011, and which
has been executed by Theron Odlaug and Allen Roberson in their individual capacities solely for the purpose of agreeing to Sections 2.4(c) and 4.2 thereof. 
 “Surviving Person” has the meaning set forth in Section 5.1(a)(i). 
 “Term” means the period beginning at the Effective Time and ending at the close of business on December 31, 2016. 

“Year” means each full or partial calendar year during the Term. 

ARTICLE II 

CONTINGENT VALUE RIGHTS 
 Section 2.1. Issuance of CVRs. 
 The CVRs shall be issued
pursuant to the Merger Agreement at the time and in the manner set forth in the Merger Agreement. Distribution of any CVR Payment Amount to the Holders shall be governed by the Shareholders’ Representative Agreement. 

  
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 Section 2.2. Nontransferable. 

The CVRs shall not be sold, assigned, transferred, pledged, encumbered or in any other manner transferred or disposed of,
in whole or in part, other than through a Permitted Transfer. 
 Section 2.3. No Certificate; Registration;
Registration of Transfer; Change of Address. 
 (a) The CVRs shall be issued in book-entry
form only and shall not be evidenced by a certificate or other instrument. 
 (b) The
Shareholders’ Representative shall keep a register (the “CVR Register”) for the registration of CVRs. The Shareholders’ Representative shall be the initial CVR registrar and transfer agent (“CVR
Registrar”) for the purpose of registering CVRs and transfers of CVRs as herein provided. 
 (c) Subject to the restriction on transferability set forth in Section 2.2, every request made to transfer a CVR must be in writing and accompanied by a written instrument or instruments of transfer
and any other reasonably requested documentation in a form reasonably satisfactory to the CVR Registrar, duly executed by the registered Holder or Holders thereof or by the duly appointed legal representative thereof or by a duly authorized
attorney. Upon receipt of such written request and materials, the CVR Registrar shall register the transfer of the CVRs in the CVR Register, any such registration not to be unreasonably withheld or delayed. All duly transferred CVRs registered in
the CVR Register shall be the valid obligations of Parent, evidencing the same right and shall entitle the transferee to the same benefits and rights under this Agreement and the Shareholders’ Representative Agreement, as those previously held
by the transferor. No transfer of a CVR shall be valid until registered in the CVR Register, and any transfer not duly registered in the CVR Register will be void ab initio. Any transfer or assignment of the CVRs shall be without charge (other than
the cost of any transfer tax which shall be the responsibility of the transferor) to the Holder. 

(d) A Holder may make a written request to the CVR Registrar to change such Holder’s address of
record in the CVR Register. The written request must be duly executed by the Holder and conform to such other reasonable requirements as the CVR Registrar may from time to time establish. Upon receipt of such proper written request, the CVR
Registrar shall promptly record the change of address in the CVR Register. 
 Section 2.4. Payment
Procedures. 
 (a) Payment A 

On the Payment A Date, Parent shall deliver by wire transfer to the Shareholders’ Account the amount of Payment A in
immediately available funds. Provided, that if before the Payment A Date, Parent has delivered the amount of Payment A to the Escrow Agent pursuant to Section 2.8, then instead, on the Payment A Date and pursuant to the Escrow Agreement, the
Escrow Agent shall deliver by wire transfer to the Shareholders’ Account the amount of Payment A in immediately available funds out of the Escrow Amount. 

(b) Clopidogrel Payments 

  
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 After the execution of the Clopidogrel License, on each Clopidogrel Payment
Date, Parent shall deliver to the Shareholders’ Account the applicable Clopidogrel Payment in immediately available funds. 
 (c) Onyx Drug Application Payment 
 On the Onyx Drug Application
Payment Date, Parent shall deliver by wire transfer to the Shareholders’ Account the amount of the Onyx Drug Application Payment in immediately available funds. Provided, that if before the Onyx Drug Application Payment Date, Parent has
delivered the amount of the Onyx Drug Application Payment to the Escrow Agent pursuant to Section 2.8, then instead, on the Onyx Drug Application Payment Date and pursuant to the Escrow Agreement, the Escrow Agent shall deliver by wire transfer
to the Shareholders’ Account the amount of the Onyx Drug Application Payment in immediately available funds out of the Escrow Amount. 
 (d) Onyx Drug Approval Payment 
 On the Onyx Drug Approval Payment
Date, Parent shall deliver by wire transfer to the Shareholders’ Account the amount of the Onyx Drug Approval Payment in immediately available funds. Provided, that if before the Onyx Drug Approval Payment Date, Parent has delivered the amount
of the Onyx Drug Approval Payment to the Escrow Agent pursuant to Section 2.8, then instead, on the Onyx Drug Approval Payment Date and pursuant to the Escrow Agreement, the Escrow Agent shall deliver by wire transfer to the Shareholders’
Account the amount of the Onyx Drug Approval Payment in immediately available funds out of the Escrow Amount. 
 (e) Revenue Sharing Payments 
 (i) Within 45
calendar days after the end of each Quarter of each Year during the Term, Parent shall deliver to the Shareholders’ Representative a report (a “Quarterly Report”) setting forth: (A) the Revenue recognized during
such Quarter and cumulatively during such Year, (B) the calculation of such Revenue in reasonable detail, (C) the cumulative amount of Revenue Sharing Payments paid by Parent during such Year, (D) a 4-Quarter rolling forecast of
future Revenues for the subsequent four Quarters (each, a “Forecast”), (E) a management discussion and analysis of the Company Business conducted during such Quarter and expected to be conducted during the period covered
by the Forecast, including, without limitation, a description of the types and general terms of all license and supply agreements and limited clinical use agreements entered into during such Quarter, (F) an accurate accounting and summary of
all FTEs working on the Company Business and Company Technology during such Quarter and Year, and Required Funding invested by Parent both during such Quarter and cumulatively during such Year (including sufficient back-up to allow the
Shareholders’ Representative to understand the general nature and purpose of such Required Funding Payments), and (G) a certificate of Parent’s Chief Financial Officer stating (i) the amount of Parent’s cash, cash
equivalents and short-term investments (minus any restricted cash) as of the end of such Quarter and the lowest amount of Parent’s cash, cash equivalents and short-term investments (minus any restricted cash) at any time during such Quarter and
(ii) the highest amount of Parent’s obligations for financial indebtedness (other than financial indebtedness which is expressly subordinated to all obligations of Parent hereunder pursuant to a written subordination agreement signed by
that creditor and by Shareholders’ Representative and that is reasonably acceptable to the Shareholders’ Representative) at any time during the Quarter. In addition, upon reasonable request by the Shareholder Representative Parent will
provide to the Shareholder Representative a certificate of Parent’s Chief Financial Officer (the “Interim Certificate”) stating (i)

  
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whether or not the amount of Parent’s cash, cash equivalents and short-term investments (minus any restricted cash) exceeds $10,000,000 as of the date of such request or any date since the
date of the last Quarterly Report; and (ii) whether or not Parent is or has been obligated for more than $35,000,000 of financial indebtedness (other than financial indebtedness which is expressly subordinated to all obligations of Parent
hereunder pursuant to a written subordination agreement signed by that creditor and by Shareholders’ Representative and that is reasonably acceptable to the Shareholder Representative) as of the date of such request or any date since the date
of the last Quarterly Report. The Quarterly Reports and any Interim Certificates and the contents thereof shall be subject in all respects to the terms of a confidentiality/nonuse agreement, to be entered into between Shareholders’
Representative and Parent, substantially as protective as the Mutual Confidentiality Agreement dated July 14, 2010, between Parent and the Company, executed contemporaneously herewith. If there is a successor Shareholders’ Representative,
no Quarterly Reports need be provided to that successor unless and until the successor Shareholders’ Representative executes and delivers to Parent a confidentiality/nonuse agreement substantially as protective as such confidentiality/nonuse
agreement. 
 (ii) On the applicable Revenue Sharing Payment Date, Parent shall deliver to the
Shareholders’ Representative a certificate (the “Entitlement Certificate”), certifying that the Holders are entitled to have a Revenue Sharing Payment delivered to the Shareholders’ Account (and setting forth the
calculation of such Revenue Sharing Payment), and shall together therewith deliver the indicated Revenue Sharing Payment to the Shareholders’ Account in immediately available funds, unless the indicated Revenue Sharing Payment is zero. No
transaction described in Section 5.1(a) hereof shall give the Holders the right to have a CVR Payment Amount delivered to the Shareholders’ Account. 

(iii) Within 150 calendar days after delivery by Parent of an Entitlement Certificate or a Quarterly
Report (the “Objection Period”), the Shareholders’ Representative may deliver a written notice to Parent specifying that the Shareholders’ Representative objects to (i) the determination of Parent that no
Revenue Sharing Payment is due and payable, (ii) the calculation of the Revenue Sharing Payment, or (iii) the calculation of the amount of Revenue recognized during the applicable Quarter (a “Notice of Objection”),
and stating the reason upon which the Shareholders’ Representative has determined that (A) a Revenue Sharing Payment is due and payable, (B) the calculation of the Revenue Sharing Payment is in error, or (C) the amount of Revenue
recognized during the applicable Quarter is in error. Any dispute arising from a Notice of Objection shall be resolved in accordance with the procedure set forth in Section 6.10, which decision shall be binding on the parties hereto and every
Holder. 
 (iv) Parent shall be entitled to deduct and withhold, or cause to be deducted or
withheld, from each CVR Payment Amount otherwise payable pursuant to this Agreement, such amounts as Parent or the applicable subsidiary of Parent is required to deduct and withhold with respect to the making of such payment under the Internal
Revenue Code, or any provision of state, local or foreign tax law. To the extent that amounts are so withheld or paid over to or deposited with the relevant governmental entity, such withheld amounts shall be treated for all purposes of this
Agreement as having been paid to the Holder in respect of which such deduction and withholding was made. 
 (v) No later than 60 days following the conclusion of each Year (the “Adjustment Date”), the aggregate amount of Revenue Sharing Payments actually paid to the Shareholders’ Account by
Parent in such Year (for each such year, the “Paid Annual Revenue 

  
 11 

 
Sharing Amount”) shall be adjusted on a dollar-for-dollar basis by the negative or positive amount equal to (i) the Paid Annual Revenue Sharing Amount minus (ii) the
aggregate amount of Revenue Sharing Payments owed by Parent for such Year as indicated by determinations reflected in Parent’s annual audited financial statements (the “Adjustment”). If the Adjustment is a negative
amount (i.e., if Parent underpaid), Parent shall pay such amount to the Shareholders’ Account by wire transfer of immediately available funds within five Business Days of the Adjustment Date. If the Adjustment is a positive amount (i.e., if
Parent overpaid), the Shareholders’ Representative shall pay such amount to Parent by wire transfer of immediately available funds out of the Shareholders’ Account to an account designated by Parent within five Business Days of the
Adjustment Date. 
 Section 2.5. No Voting, Dividends or Interest; No Equity or Ownership Interest in Parent.

 (a) The CVRs shall not have any voting or dividend rights, and interest shall not accrue
on any amounts payable on the CVRs. 
 (b) The CVRs shall not represent any equity or ownership
interest in Parent (or in any constituent company to the Merger) or in any Company Business or the Company Technology or other asset. The rights of the holders of CVRs are limited to those expressly set forth in this Agreement and the
Shareholders’ Representative Agreement, and such Holders’ sole right to receive property hereunder is the right to receive cash indirectly from Parent through the Shareholders’ Account in accordance with the terms hereof and the terms
of the Shareholders’ Representative Agreement. No CVRs or Postclosing CVRs shall be issued to a Nontendering Shareholder unless and until such Nontendering Shareholder complies with the provisions of Section 2.08(a) of the Merger Agreement
after the Effective Time. Any holders of Company Shares before the Effective Time who are Nontendering Shareholders as of any date of payment by Parent or the Escrow Agent to the Shareholders’ Account pursuant to this Agreement shall not be
entitled to receive any portion of such payment when distributed pursuant to the Shareholders’ Representative Agreement, and the Shareholders’ Representative shall redistribute such portion of any such payment to all holders of Company
Shares who are not Nontendering Shareholders as of the date of such distribution. 
 Section 2.6. Sole
Discretion and Decision Making Authority; No Fiduciary Duty. 
 Parent shall have sole discretion and
decision making authority (a) over any continued operation of, development of or investment in the Company Business, and (b) over when (if ever) and whether to pursue, or enter into, an agreement to dispose of and/or to commercialize or
monetize in any particular manner the Company Business, and upon what terms and conditions. Parent shall conduct the Company Business in good faith and with commercial reasonableness during the Term, which, without limitation, means that
(A) Parent shall dedicate to the Company Business through December 31, 2015 a minimum of five FTEs per Year ̧ one of which shall be a manager dedicated at least 50% to the Company Business during each Year during the Term, the others
representing a mix (as Parent shall from time to time determine) of technical, scientific, operational, legal and business development functions with the objective to operate the existing business and to seek to expand the business and revenues, and
(B) Parent shall invest at least $1,500,000 per Year directly related to and in support of the research, development, licensing and commercialization of the Company Business and the Company Technology including cost of compensation and benefits
of the dedicated FTEs (the “Required Funding”) into the Company Business during each Year thru December 31, 2015. Parent’s obligation to dedicate such FTEs or invest the Required Funding shall terminate at any time
if (1) Revenue in the prior Year is less than $10,000,000 (when such “prior year” is 2011 or 2012) or 

  
 12 

 
less than $15,000,000 (when such “prior year” is 2013 or 2014); and (2) objective evidence causes Parent to reasonably conclude that the potential for the Company Business and the
Company Technology does not reasonably justify continued investment in the Company Business at those levels due to negative competitive conditions, the evidence and detailed justification for which shall be provided in writing to the
Shareholders’ Representative on or before March 31 of any year, which the Shareholders’ Representative shall have the right to dispute pursuant to Section 6.10 below. 

Section 2.7. Indemnification. 

(a) For purposes of determining the Indemnification Amount and Indemnification Offset, all representations
and warranties contained in the Merger Agreement, any Ancillary Agreement or any certificate, instrument or document delivered by the Company in connection with the Merger Agreement (and all claims based upon preclosing covenants and agreements
therein) will survive the Closing, irrespective of any facts known to Parent at or before the Closing or any investigation at any time made by or on behalf of Parent, for a period of 365 days from the Effective Time and no longer; provided, that if
Parent delivers to the Shareholders’ Representative, before expiration of such 365 days, either a notice asserting a Loss that would constitute an Indemnification Amount, or a notice that, as a result of a Legal Proceeding instituted or claim
made by a Person not a party to this Agreement, Parent reasonably expects that Parent, any of Parent’s Affiliates, the Surviving Corporation or any of their respective directors, officers, employees, agents, consultants, advisors,
representatives and equity holders may incur Losses, then the applicable representation, warranty covenant or agreement will survive until, but only for purposes of, the resolution of the matter covered by such notice and the final determination of
the actual Loss, if any. This Section 2.7 and the determination of the Indemnification Amount and Indemnification Offset will not be affected by any investigation conducted with respect to, or any knowledge acquired (or capable of being
acquired) at any time, whether before or after the execution and delivery of the Merger Agreement or this Agreement or the Closing Date, by or on behalf of Parent. 

(b) No Holder, as a former stockholder of the Company or otherwise, has (and each Holder, as a former
stockholder of the Company or otherwise, waives) any right of indemnification or contribution against the Company with respect to any breach by any Holder, as a former stockholder of the Company or otherwise, or the Company of any of their
respective representations, warranties, covenants or agreements in the Merger Agreement or any Ancillary Agreement or otherwise, whether by virtue of any contractual or statutory right of indemnity or otherwise, and all claims to the contrary are
hereby waived and released. In addition, each Holder, as a former stockholder of the Company or otherwise, hereby agrees that such Holder, as a former stockholder of the Company or otherwise, will not make any claim for indemnification against the
Company by reason of the fact that such Holder was a director, officer, employee, or agent of the Company or was serving at the request of the Company as a partner, trustee, director, officer, employee, or agent of another entity (whether such claim
is for judgments, damages, penalties, fines, costs, amounts paid in settlement, losses, expenses, or otherwise and whether such claim is pursuant to any statute, charter document, bylaw, agreement, or otherwise) to the extent that any action, suit,
proceeding, complaint, claim, or demand brought against such Holder relates to a Loss described herein (whether such action, suit, proceeding, complaint, claim, or demand is pursuant to this Agreement, applicable law, or otherwise). 

  
 13 

 Section 2.8. Effect of Default. 

In the event of a Default occurring before payment of Payment A by Parent to the Shareholders’ Account, Parent shall
immediately pay Payment A, the Onyx Drug Application Payment amount and the Onyx Drug Approval Payment amount to the Escrow Agent, and such amounts shall thereupon become part of the Escrow Amount and shall be distributed by the Escrow Agent on the
Payment A Date, the Onyx Drug Application Payment Date and the Onyx Drug Approval Payment Date, as applicable, to the Shareholders’ Account as set forth herein. In the event of a Default occurring after payment of Payment A by Parent to the
Shareholders’ Account but before payment of the Onyx Drug Application Payment amount by Parent to the Shareholders’ Account, Parent shall immediately pay the Onyx Drug Application Payment amount and the Onyx Drug Approval Payment amount to
the Escrow Agent, and such amounts shall thereupon become part of the Escrow Amount and shall be distributed by the Escrow Agent on the Onyx Drug Application Payment Date and the Onyx Drug Approval Payment Date, as applicable, to the
Shareholders’ Account as set forth herein. In the event of a Default occurring after payment of Payment A and the Onyx Drug Application Payment amount by Parent to the Shareholders’ Account but before payment of the Onyx Drug Approval
Payment amount by Parent to the Shareholders’ Account, Parent shall immediately pay the Onyx Drug Approval Payment amount to the Escrow Agent, and such amount shall thereupon become part of the Escrow Amount and shall be distributed by the
Escrow Agent on the Onyx Drug Approval Payment Date to the Shareholders’ Account as set forth herein. If the Onyx Drug Application Payment amount has been paid to the Escrow Agent and has become part of the Escrow Amount, but the Onyx Drug
Application Payment Date has not occurred by December 31, 2016, the Escrow Agent shall (in accordance with the terms of the Escrow Agreement) deliver the Onyx Drug Application Payment amount to Parent. If the Onyx Drug Approval Payment amount
has been paid to the Escrow Agent and has become part of the Escrow Amount, but (a) the Onyx Drug Approval Payment Date has not occurred by December 31, 2016, or (b) an event occurs which renders it substantially unlikely that the
Onyx Drug Approval will occur by December 31, 2016 (e.g., a nonapproval letter from the FDA), then the Escrow Agent shall (in accordance with the terms of the Escrow Agreement) deliver the Onyx Drug Approval Payment amount to Parent.
Notwithstanding the foregoing, if the Default was caused by Parent’s cash, cash equivalents and short-term investments (minus any restricted cash) falling below $10,000,000, and if within 30 days thereafter Parent has increased its cash, cash
equivalents and short-term investments (minus any restricted cash) to above $14,000,000 and Parent delivers an Interim Certificate to the Escrow Agent and the Shareholders’ Representative so stating, the Default shall be deemed cured and the
Escrow Agent shall forthwith return the Escrow Amount to Parent. 
 Section 2.9. Audit Right. 

Upon the prior written request by the Shareholders’ Representative, Parent shall meet at reasonable times during
normal business hours with the Shareholders’ Representative to discuss the content of any Quarterly Report or any Entitlement Certificate. Parent agrees to maintain, for at least the applicable Objection Period, all books and records relevant
to the calculation of a CVR Payment Amount and the amount of Revenue recognized during the applicable Quarter. Subject to reasonable advance written notice from the Shareholders’ Representative and prior execution and delivery by it and an
independent accounting firm of national reputation chosen by the Shareholders’ Representative (the “Accountant”) of a reasonable and customary confidentiality/nonuse agreement, Parent shall permit the Shareholders’
Representative and the Accountant, acting as agent of the Shareholders’ Representative, at the Shareholders’ Representative’s cost, to have access during normal business hours to the books and records of Parent and its affiliates
(including, without limitation, the Surviving Corporation) as may be reasonably necessary to audit the calculation of such CVR Payment Amount or the calculation of the amount of Revenue recognized in the applicable Quarter, as applicable.

  
 14 

 ARTICLE III 
 COVENANTS 
 Section 3.1. Payment of CVR Payment Amount.

 Parent shall duly and promptly pay, or the Escrow Agent shall pay, as applicable, each CVR Payment Amount,
if any, to the Shareholders’ Account in the manner provided for in Section 2.4 and Section 6.10 and in accordance with the terms of this Agreement. 

Section 3.2. Assignments. 
 Parent shall not, in whole or in part, assign any of its obligations under this Agreement other than in accordance with the terms of Section 5.1 hereof. 

ARTICLE IV 

AMENDMENTS 
 Section 4.1. Amendments Without Consent of Holders. 

Without the consent of any Holders or of the Shareholders’ Representative, Parent, when authorized by a Board
Resolution, at any time and from time to time, may enter into one or more amendments hereto to evidence the succession of another Person to Parent and the assumption by any such successor of the covenants of Parent herein in a transaction
contemplated by Section 5.1 hereof. Promptly after the execution by Parent of any amendment pursuant to the provisions of this Section 4.1, Parent shall provide a copy of such amendment to the Shareholders’ Representative. 

Section 4.2. Amendments With Consent of Holders. 

Subject to Section 4.1 (which amendments pursuant to Section 4.1 may be made without the consent of the Holders
or of the Shareholders’ Representative), with the consent of the Shareholders’ Representative, Parent, when authorized by a Board Resolution, and the Shareholders’ Representative may enter into one or more amendments hereto for the
purpose of adding, eliminating or changing any provisions of this Agreement, even if such addition, elimination or change is in any way adverse to the interests of the Holders; provided that if such addition, elimination or change is in any way
adverse to the interests of the holders of Series B CVRs, of Series A CVRs, of Series A-1 CVRs or of Common CVRs, it shall additionally require the consent, whether evidenced in writing or taken at a meeting of the applicable Holders, of the Holders
of not less than a majority of the outstanding Series B CVRs, Series A CVRs, Series A-1 CVRs or Common CVRs, as applicable. 
 Section 4.3. Effect of Amendments. 
 Upon the execution of
any amendment under this Article IV, this Agreement shall be modified in accordance therewith, such amendment shall form a part of this Agreement for all purposes and every Holder shall be bound thereby. 

  
 15 

 ARTICLE V 
 CONSOLIDATION, MERGER, SALE OR CONVEYANCE 
 Section 5.1. Parent
May Consolidate, Etc. 
 (a) Parent shall not consolidate with or merge into any other
Person, convey, transfer or lease its properties and assets substantially as an entirety to any Person or convey, transfer, lease or license all or substantially all of the Company Business to any Person, unless: 

(i) the Person formed by such consolidation or into which Parent is merged, the Person that acquires by
conveyance or transfer, or that leases, the properties and assets of Parent substantially as an entirety or the Person that acquires by conveyance or transfer, or that leases or licenses, all or substantially all of the Company Business (the
“Surviving Person”) shall expressly assume payment (if and to the extent required hereunder) of amounts on all the CVRs and the performance of every duty and covenant of this Agreement on the part of Parent to be performed or
observed, including without limitation, those set forth in Section 2.6; and 
 (ii) Parent
has delivered to the Shareholders’ Representative an Officer’s Certificate, stating that such consolidation, merger, conveyance, transfer, lease or license complies with this Article V and that all conditions precedent herein provided for
relating to such transaction have been complied with. 
 (b) In the event Parent conveys,
transfers or leases its properties and assets substantially as an entirety in accordance with the terms and conditions of this Section 5.1, Parent and the Surviving Person shall be jointly and severally liable for the payment of the CVR Payment
Amount and the performance of every duty and covenant of this Agreement on the part of Parent to be performed or observed. 
 Section 5.2. Successor Substituted. 
 Upon any consolidation
of or merger by Parent with or into any other Person, or any conveyance, transfer or lease of the properties and assets substantially as an entirety to any Person in accordance with Section 5.1, the Surviving Person shall succeed to, and be
substituted for, and may exercise every right and power of, Parent under this Agreement with the same effect as if the Surviving Person had been named as Parent herein. 
 ARTICLE VI 
 OTHER PROVISIONS OF GENERAL APPLICATION 

Section 6.1. Notices. 
 Any request, demand, authorization, direction, notice, consent, waiver or other document provided or permitted by this Agreement shall be sufficient for every purpose hereunder if in writing and delivered
personally, or sent by email or sent by certified or registered mail (return receipt requested and first-class postage prepaid) or sent by a nationally recognized overnight courier (with proof of service), addressed as follows, and shall be deemed
to have been given upon receipt: 
 (a) if to a Holder or any or all Holders or the
Shareholders’ Representative, addressed to the Shareholders’ Representative at 10513 West 84th Terrace, Lenexa, KS 66214, or to the Shareholders’ Representative at any other address previously furnished in writing to Parent in
accordance with this Section 6.1. 

  
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 (b) if to Parent, addressed to it at 11085 North Torrey
Pines Road, Suite 300, La Jolla, CA 92037, Attention: Charles Berkman, email at cberkman@ligand.com, or at any other address previously furnished in writing to the Holders or the Shareholders’ Representative by Parent in accordance with this
Section 6.1. 
 Section 6.2. Successors and Assigns. 

All covenants and agreements in this Agreement by Parent shall bind its successors and assigns, whether so expressed or
not. 
 Section 6.3. Benefits of Agreement. 

Nothing in this Agreement, express or implied, shall give to any Person (other than the parties hereto, and their
permitted successors and assigns hereunder) any benefit or any legal or equitable right, remedy or claim under this Agreement or under any covenant or provision herein contained, all such covenants and provisions being for the sole benefit of the
parties hereto and their permitted successors and assigns. The Holders shall have no rights or remedies hereunder except as are expressly set forth herein. To the extent permitted by applicable Legal Requirements, it is expressly agreed that in no
event shall any Holders (as opposed to the Shareholders’ Representative) or any former stockholders of the Company (as opposed to the Shareholders’ Representative) have, after the Effective Time, any power or right to commence or join in
any Legal Proceeding against Parent or the Company or any Affiliate of either of them based on or arising out of this Agreement or the Merger Agreement. 
 Section 6.4. Governing Law. 
 This Agreement and the CVRs
shall be governed by and construed in accordance with the laws of the State of Delaware without regards to its rules of conflicts of laws. 
 Section 6.5. Legal Holidays. 
 In the event that a CVR
Payment Date shall not be a Business Day, then, notwithstanding any provision of this Agreement to the contrary, any payment required to be made in respect of the CVRs on such date need not be made on such date, but may be made on the next
succeeding Business Day with the same force and effect as if made on the CVR Payment Date. 
 Section 6.6.
Severability Clause. 
 In case any one or more of the provisions contained in this Agreement shall for any
reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement, but this Agreement shall be construed as if such invalid or illegal or
unenforceable provision had never been contained herein. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the court or other tribunal making such determination is authorized and instructed to modify this
Agreement so as to effect the original intent of the parties as closely as possible so that the transactions and agreements contemplated herein are consummated as originally contemplated to the fullest extent possible. 

  
 17 

 Section 6.7. Counterparts. 

This Agreement may be signed in counterparts (which may be effectively delivered by scan/email or other electronic means),
each of which shall be deemed to constitute but one and the same instrument. 
 Section 6.8. Termination.

 This Agreement shall terminate and be of no further force or effect, and the parties hereto shall have no
liability hereunder, on the first day after December 31, 2016 on which no further dispute is possible. A dispute shall be considered possible if an Objection Period is in progress, or if a Section 6.10 process is in progress, or if any
payment or other obligation required pursuant to a final determination made in accordance with Section 6.10 has not yet occurred. 
 Section 6.9. Entire Agreement. 
 This Agreement, the
Shareholders’ Representative Agreement, the Merger Agreement, and the Escrow Agreement represent the entire understanding of the parties hereto and thereto with reference to the CVRs and this Agreement supersedes any and all other oral or
written agreements made with respect to the CVRs, except for the Shareholders’ Representative Agreement, the Merger Agreement, and the Escrow Agreement. If and to the extent that any provision of this Agreement is inconsistent or conflicts with
the Shareholders’ Representative Agreement, the Merger Agreement, and the Escrow Agreement, or any of them, this Agreement shall govern and be controlling. 

Section 6.10. Arbitration. 

(a) Parent, the Company, and the Shareholders’ Representative shall attempt to resolve any dispute,
controversy or claim arising out of or relating to this Agreement or the breach thereof (each, a “Dispute”) promptly by good faith negotiation among representatives who have authority to resolve the controversy. 

(b) Any Dispute which is not amicably settled pursuant to Section 6.10(a) above shall be settled by
arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. Parent and/or the
Shareholders’ Representative may initiate an arbitration for any matter relating to this Agreement that is not settled pursuant to Section 6.10(a) above. However, in the event of a Dispute arising from the delivery of a Notice of
Objection, the sole matter to be settled by arbitration shall be whether a CVR Payment Amount is payable, the calculation of the CVR Payment Amount, or whether the calculation of the amount of Revenue recognized in the applicable Quarter or Year is
in error, and (if so) the proper corresponding calculation of the CVR Payment Amount. 
 (c) The
number of arbitrators shall be three. Within 15 days after the commencement of arbitration, each party (Parent and the Company together being one party) shall select one person to act as arbitrator, and the two selected shall select a third
arbitrator within 15 days of their appointment. If the arbitrators selected by the parties are unable or fail to agree upon the third arbitrator, the third arbitrator shall be selected by the American Arbitration Association. The place of the
arbitration shall be San Diego, California. The arbitrators shall be lawyers or retired judges with experience in the life sciences industry and with mergers and acquisitions. Except as may be required by law, neither a party nor an arbitrator may
disclose the existence, content or results of any arbitration hereunder without the prior written consent of both parties. 

  
 18 

 (d) Any award payable in favor of the Shareholders’
Representative as a result of arbitration shall be paid by Parent to the Shareholders’ Account, in the manner provided for in Section 2.4 and in accordance with the terms of this Agreement. Parent and the Shareholders’ Representative
shall pay in equal halves all fees and expenses of the arbitration forum, including the costs and expenses billed by the arbitrators in connection with the performance of their duties described herein; provided, however, that if the arbitrators rule
in favor of Parent, the Shareholders’ Representative shall cause an amount equal to the half of the arbitrators’ fees and expenses paid by Parent to be paid to Parent out of the Shareholders’ Account, and if the arbitrators rule in
favor of the Shareholders’ Representative, an amount equal to the half of the arbitrators’ fees and expenses paid by the Shareholders’ Representative shall be paid by Parent to the Shareholders’ Account, in the manner provided
for in Section 2.4 and in accordance with the terms of this Agreement. Each party to the arbitration shall be responsible for its own attorney fees, expenses and costs of investigation. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 19 

 IN WITNESS WHEREOF, each of the parties has caused this Contingent
Value Rights Agreement to be executed on its behalf by its duly authorized officers as of the day and year first above written. 
  

			
	 LIGAND PHARMACEUTICALS INCORPORATED

		
	 By:
	 	 /s/ John L. Higgins

	 Name:
 Title:
	 	 John L. Higgins
 President and Chief Executive Officer

	
	 CYDEX PHARMACEUTICALS, INC.

		
	 By:
	 	 /s/ Theron Odlaug

	 Name:
 Title:
	 	 Theron Odlaug
 President and Chief Executive Officer

	
	
	 /s/ Allen K. Roberson

	 Allen K. Roberson, as Shareholders’ Representative

	
	 /s/ David Poltack

	 David Poltack, as Shareholders’ Representative

  
 [Signature
Page to Contingent Value Rights Agreement]Loan and Security Agreement

 Exhibit 10.3 
 LOAN AND SECURITY AGREEMENT 
 THIS LOAN AND SECURITY
AGREEMENT (this “Agreement”) dated as of January 24, 2011 (the “Effective Date”) among OXFORD FINANCE CORPORATION, a Delaware corporation with an office located at 133 North Fairfax Street,
Alexandria, Virginia 22314 (“Oxford”), as collateral agent (in such capacity, the “Collateral Agent”), Lenders listed on Schedule 1.1 hereof or otherwise a party hereto from time to time including Oxford in its
capacity as a Lender (each a “Lender” and collectively, the “Lenders”), and LIGAND PHARMACEUTICALS INCORPORATED, a Delaware corporation with offices located at 11085 N. Torrey Pines Road, Suite 300, La Jolla, CA
92037 and the additional Persons signing this Agreement as Borrowers (individually, a “Borrower, and collectively, the “Borrowers”) provides the terms on which Lenders shall lend to Borrowers and Borrowers shall repay
Lenders. The parties agree as follows: 
  

	 	1.	 ACCOUNTING AND OTHER TERMS 

1.1 Accounting terms not defined in this Agreement shall be construed in accordance with
GAAP. Calculations and determinations must be made in accordance with GAAP. Capitalized terms not otherwise defined in this Agreement shall have the meanings set forth in Section 14. All other terms contained in this Agreement, unless
otherwise indicated, shall have the meaning provided by the Code to the extent such terms are defined therein. All references to “Dollars” or “$” are United States Dollars, unless otherwise noted. 

 

	 	2.	 LOANS AND TERMS OF PAYMENT 

2.1 Promise to Pay. Borrowers jointly and severally unconditionally promise to pay each
Lender, the outstanding principal amount of the Term Loan advanced to Borrowers by such Lender and accrued and unpaid interest thereon and any other amounts due hereunder as and when due in accordance with this Agreement. 

2.2 Term Loan. 

(a) Availability. Subject to the terms and conditions of this Agreement, Lenders agree,
severally and not jointly, to make a term loan to Borrowers in an aggregate amount up to Twenty Million Dollars ($20,000,000) (the “Term Loan”) according to each Lender’s Term Loan Commitment as set forth on Schedule 1.1
hereto, on or before January 31, 2011, simultaneously with the closing of the CyDex Acquisition, and shall be used solely to fund a portion of the costs of the CyDex Acquisition. After repayment, the Term Loan may not be re-borrowed.

 (b) Repayment. Borrowers shall make monthly payments of
interest only commencing on the first (1st) Payment
Date following the Funding Date of the Term Loan, and continuing on the Payment Date of each successive month thereafter through and including the Payment Date immediately preceding the Amortization Date. The Amortization Date initially is
March 1, 2012, provided that, at the written election of a Borrower made on or before January 24, 2012, as long as an Event of Default is not then continuing, the Amortization Date shall be March 1, 2013. Commencing on the
Amortization Date, and continuing on the Payment Date of each month thereafter, Borrowers shall make consecutive equal monthly payments of principal and interest, in arrears, to each Lender, as calculated by Collateral Agent (which calculations
shall be deemed correct absent manifest error) based upon: (1) the amount of such Lender’s Term Loan, (2) the effective rate of interest, as determined in Section 2.3(a), and (3) a repayment schedule equal to thirty
(30) months from the Amortization Date (if the Amortization Date is March 1, 2012) or equal to eighteen (18) months from the Amortization Date (if the Amortization Date is March 1, 2013). All unpaid principal and accrued and
unpaid interest with respect to the Term Loan is due and payable in full on the Maturity Date. The Term Loan may only be prepaid in accordance with Sections 2.2(c) and 2.2(d). 

(c) Mandatory Prepayments. If the Term Loan is accelerated following the occurrence of an
Event of Default, Borrowers shall immediately pay to Lenders, payable to each Lender in accordance with its respective Pro Rata Share, an amount equal to the sum of: (i) all outstanding principal of the Term Loan plus accrued interest thereon
through the prepayment date, (ii) the Final Payment, (iii) the Prepayment 

 
Fee, plus (iv) all other sums, that shall have become due and payable, including Lenders’ Expenses and interest at the Default Rate with respect to any past due amounts. Notwithstanding
(but without duplication with) the foregoing, on the Maturity Date, if the Final Payment had not previously been paid in full in connection with the prepayment of the Term Loan in full, Borrowers shall pay to Collateral Agent, for payment to each
Lender in accordance with its respective Pro Rata Share, the Final Payment in respect of the Term Loan. If the CyDex Acquisition does not close on or prior to February 15, 2011, Collateral Agent may, in its sole discretion, demand the immediate
repayment of all outstanding principal, accrued interest, and any other amounts then outstanding under this Agreement and the Notes, and Borrower shall make such payment to Lenders within 15 days of such demand, provided in such case that Borrower
shall not be required to pay the Prepayment Fee or the Final Payment. 
 (d) Permitted
Prepayment of Term Loan. Borrowers shall have the option to prepay all, but not less than all, of the Term Loan advanced by Lenders under this Agreement, provided Borrowers (i) provide written notice to Collateral Agent of its election to
prepay the Term Loan at least fourteen (14) days prior to such prepayment, and (ii) pay to Lenders on the date of such prepayment, payable to each Lender in accordance with its respective Pro Rata Share, an amount equal to the sum of
(A) all outstanding principal of the Term Loan plus accrued interest thereon through the prepayment date, (B) the Final Payment, (C) the Prepayment Fee, plus (D) all other sums, that shall have become due and payable, including
Lenders’ Expenses, if any, and interest at the Default Rate with respect to any past due amounts. 
 2.3 Payment of Interest on the Credit Extensions. 
 (a) Interest Rate. Subject to Section 2.3(b), the principal amount outstanding under the Term Loan shall accrue interest at a fixed per annum rate (which rate shall be fixed for the
duration of the Term Loan) equal to the Basic Rate, determined by Collateral Agent on the Funding Date of the Term Loan, which interest shall be payable monthly in accordance with Sections 2.2(b) and 2.3(e). Interest shall accrue on the Term Loan
commencing on, and including, the day on which the Term Loan is made, and shall accrue, or any portion thereof, for the day on which the Term Loan or such portion is paid. 

(b) Default Rate. Immediately upon the occurrence and during the continuance of an Event of
Default, Obligations shall bear interest at a rate per annum which is five percentage points (5.00%) above the rate that is otherwise applicable thereto (the “Default Rate”). Payment or acceptance of the increased interest rate
provided in this Section 2.3(b) is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of Collateral Agent. 

(c) 360-Day Year. Interest shall be computed on the basis of a 360-day year consisting of
twelve (12) months of thirty (30) days. 
 (d) Debit of Accounts.
Collateral Agent and each Lender may debit any of a Borrower’s deposit accounts, including the Designated Deposit Account, for principal and interest payments or any other amounts a Borrower owes Lenders under the Loan Documents when due. These
debits shall not constitute a set-off. 
 (e) Payments. Except as otherwise expressly
provided herein, all loan payments by a Borrower hereunder shall be made to the respective Lender to which such payments are owed, at such Lender’s office in immediately available funds on the date specified herein. Unless otherwise provided,
interest is payable monthly on the Payment Date of each month. Payments of principal and/or interest received after 3:00 p.m. Eastern time are considered received at the opening of business on the next Business Day. When a payment is due on a day
that is not a Business Day, the payment is due the next Business Day and additional fees or interest, as applicable, shall continue to accrue until paid. All payments to be made by a Borrower hereunder or under any other Loan Document, including
payments of principal and interest made hereunder and pursuant to any other Loan Document, and all fees, expenses, indemnities and reimbursements, shall be made without set-off, recoupment or counterclaim, in lawful money of the United States and in
immediately available funds. 
 2.4 Secured Promissory Notes. The Term Loan shall
be evidenced by a Secured Promissory Note in the form attached as Exhibit D hereto (the “Secured Promissory Note”), and shall be repayable as set forth herein. Each Borrower irrevocably authorizes each Lender to make
or cause to be made, on or about the 

  
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Funding Date of the Term Loan or at the time of receipt of any payment of principal on such Lender’s Secured Promissory Note, an appropriate notation on such Lender’s Secured Promissory
Note Record reflecting the making of the Term Loan or (as the case may be) the receipt of such payment. The outstanding amount of the Term Loan set forth on such Lender’s Secured Promissory Note Record shall be prima facie evidence of the
principal amount thereof owing and unpaid to such Lender, but the failure to record, or any error in so recording, any such amount on such Lender’s Secured Promissory Note Record shall not limit or otherwise affect the obligations of a Borrower
hereunder or under any Secured Promissory Note to make payments of principal of or interest on any Secured Promissory Note when due. Upon receipt of an affidavit/indemnification agreement of an officer of a Lender as to the loss, theft, destruction,
or mutilation of its Secured Promissory Note, Borrowers shall issue, in lieu thereof, a replacement Secured Promissory Note in the same principal amount thereof and of like tenor. 

2.5 Fees. Borrowers shall pay to Collateral Agent: 

(a) Facility Fee. A fully earned, non-refundable facility fee of $100,000, which fee has
already been fully paid before the date of this Agreement; 
 (b) Final Payment.
The Final Payment, when due hereunder, to be shared among Lenders in accordance with their respective Pro Rata Shares; 
 (c) Prepayment Fee. The Prepayment Fee, when due hereunder, to be shared among Lenders in accordance with their respective Pro Rata Shares; 

(d) Lenders’ Expenses. All Lenders’ Expenses (including reasonable attorneys’
fees and expenses for documentation and negotiation of this Agreement) incurred through and after the Effective Date, when due. 
 2.6 Withholding. Payments received by Lenders from a Borrower hereunder will be made free and clear of any withholding taxes. If at any time any Governmental Authority, applicable law,
regulation or international agreement requires a Borrower to make any such withholding or deduction from any such payment or other sum payable hereunder to Lenders, such the amount due from Borrower with respect to such payment or other sum payable
hereunder will be increased to the extent necessary to ensure that, after the making of such required withholding or deduction, each Lender receives a net sum equal to the sum which it would have received had no withholding or deduction been
required and such Borrower shall pay the full amount withheld or deducted to the relevant Governmental Authority. Each Borrower will, upon request, furnish Lenders with proof reasonably satisfactory to Lenders indicating that such Borrower has made
such withholding payment provided, however, that Borrower need not make any withholding payment if the amount or validity of such withholding payment is contested in good faith by appropriate and timely proceedings and as to which payment in full is
bonded or reserved against by such Borrower. The agreements and obligations of each Borrower contained in this Section 2.6 shall survive the termination of this Agreement. 

 

	 	3.	 CONDITIONS OF LOANS 

3.1 Conditions Precedent to Initial Credit Extension. Each Lender’s obligation to make
the Term Loan is subject to the condition precedent that Collateral Agent shall consent to or shall have received, in form and substance satisfactory to Collateral Agent, such documents, and completion of such other matters, as Collateral Agent may
reasonably deem necessary or appropriate, including, without limitation: 
 (a) duly
executed original signatures to the Loan Documents to which a Borrower is a party; 
 (b)
duly executed original signatures to Control Agreements with any Persons with whom a Borrower maintains a depository or securities account; 
 (c) duly executed original Secured Promissory Notes in favor of each Lender according to its Term Loan Commitment Percentage; 

  
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 (d) the Operating Documents of each Borrower and good
standing certificates of each Borrower certified by the Secretary of State of the State of its incorporation and each state in which Borrower is qualified to conduct business, each as of a date no earlier than thirty (30) days prior to the
Effective Date; 
 (e) the Perfection Certificate; 

(f) duly executed original signatures to an officer’s certificate for each Borrower;

 (g) Collateral Agent shall have received certified copies, dated as of a recent date,
of financing statement searches, as Collateral Agent shall request, accompanied by written evidence (including any UCC termination statements) that the Liens indicated in any such financing statements either constitute Permitted Liens or have been
or, in connection with the initial Credit Extension, will be terminated or released; 

(h) a landlord’s consent executed in favor of Collateral Agent; 

(i) a legal opinion of Borrowers’ counsel dated as of the Effective Date together with the
duly executed original signatures thereto; 
 (j) evidence satisfactory to Collateral
Agent that the insurance policies required by Section 6.5 are in full force and effect, together with appropriate evidence showing loss payable and/or additional insured clauses or endorsements in favor of Collateral Agent, for the ratable
benefit of Lenders; 
 (k) the agreements executed in connection with the CyDex
Acquisition; and 
 (l) payment of the fees and Lenders’ Expenses then due as
specified in Section 2.5 hereof. 
 3.2 Conditions Precedent to all Credit
Extensions. The obligation of each Lender to make each Credit Extension, including the initial Credit Extension, is subject to the following conditions precedent: 

(a) receipt by Collateral Agent of an executed Payment/Advance Form in the form of Exhibit B
attached hereto; 
 (b) the representations and warranties in Section 5 hereof shall
be true, in all material respects on the date of the Payment/Advance Form and on the Funding Date of each Credit Extension; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already
are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, and
no Event of Default shall have occurred and be continuing or result from the Credit Extension. Each Credit Extension is each Borrower’s representation and warranty on that date that the representations and warranties in Section 5 hereof
are true, accurate and complete in all material respects; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and
provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date; 

(c) in such Lender’s sole discretion, there has not been any Material Adverse Change or any
material adverse deviation by any Borrower from the most recent business plan of Borrowers presented to and accepted by Collateral Agent; and 
 (d) payment of the fees and Lenders’ Expenses then due as specified in Section 2.5 hereof. 

3.3 Covenant to Deliver. Each Borrower shall deliver to Collateral Agent each item required
to be delivered to Collateral Agent under this Agreement as a condition precedent to any Credit Extension. Borrowers acknowledge that a Credit Extension made prior to the receipt by Collateral Agent of any such item shall not constitute a waiver by
Lenders of Borrowers’ obligation to deliver such item, and any such Credit Extension in the absence of a required item shall be made in each Lender’s sole discretion. 

  
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 3.4 Procedures for Borrowing. Subject to the
prior satisfaction of all other applicable conditions to the making of the Term Loan set forth in this Agreement, to obtain the Term Loan, a Borrower shall notify Collateral Agent (which notice shall be irrevocable) by electronic mail, facsimile, or
telephone by 12:00 noon Eastern time two (2) Business Days prior to the date the Term Loan is to be made. Together with any such electronic or facsimile notification, such Borrower shall deliver to Collateral Agent by electronic mail or
facsimile a completed Payment/Advance Form executed by a Responsible Officer or his or her designee. Upon receipt of a Payment/Advance Form, Collateral Agent shall promptly provide a copy of that Payment/Advance Form to each Lender. Collateral Agent
may rely on any telephone notice given by a person whom Collateral Agent reasonably believes is a Responsible Officer or designee. On the Funding Date, each Lender shall credit and/or transfer (as applicable) to Borrower’s Designated Deposit
Account, an amount equal to its Term Loan Commitment. 
  

	 	4.	 CREATION OF SECURITY INTEREST 

4.1 Grant of Security Interest. Each Borrower grants Collateral Agent, for the ratable
benefit of Lenders, to secure the payment and performance in full of all of the Obligations, a continuing security interest in, and pledges to Collateral Agent, for the ratable benefit of Lenders, the Collateral, wherever located, whether now owned
or hereafter acquired or arising, and all proceeds and products thereof. Each Borrower represents, warrants, and covenants that the security interest granted herein is and shall at all times continue to be a first priority perfected security
interest in the Collateral, subject only to Permitted Liens that are permitted by the terms of this agreement to have priority to Collateral Agent’s Lien. If a Borrower shall acquire a commercial tort claim (as defined in the Code), such
Borrower shall promptly notify Collateral Agent in a writing signed by such Borrower of the general details thereof (and further details as may be required by Collateral Agent) and grant to Collateral Agent, for the ratable benefit of Lenders, in
such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to Collateral Agent. If this Agreement is terminated, Collateral
Agent’s Lien in the Collateral shall continue until the Obligations (other than inchoate indemnity obligations) are repaid in full in cash. Upon payment in full in cash of the Obligations and at such time as Lenders’ obligation to make
Credit Extensions has terminated, Collateral Agent shall, at Borrower’s sole cost and expense, release its Liens in the Collateral and all rights therein shall revert to Borrower or Guarantor, as applicable. 

4.2 Authorization to File Financing Statements. Each Borrower authorizes Collateral Agent to
file financing statements or take any other action required to prefect Collateral Agent’s security interests in the Collateral with all jurisdictions to perfect or protect Collateral Agent’s and each Lender’s interest or rights
hereunder, including a notice that any disposition of the Collateral, except to the extent permitted by the terms of this Agreement, shall be deemed to violate the rights of Collateral Agent and Lenders under the Code. Such financing statements may
indicate the Collateral as “all assets of the Debtor or words of similar effect, or as being of an equal or lesser scope, or with greater detail, all in Collateral Agent’s discretion. 

 

	 	5.	 REPRESENTATIONS AND WARRANTIES 

 Each Borrower represents and warrants to Collateral Agent and Lenders as follows at all times: 
 5.1 Due Organization, Authorization: Power and Authority. Each Borrower and each of its Subsidiaries is duly existing and in good standing as Registered Organizations in its jurisdiction of
organization. Each Borrower and each of its Subsidiaries is qualified and licensed to do business and is in good standing in any jurisdiction in which the conduct of its business or its ownership of property requires that it be qualified except
where the failure to do so could not reasonably be expected to have a material adverse effect on Borrower’s business. In connection with this Agreement, Ligand Pharmaceuticals Incorporated (“Ligand”) has delivered to Collateral Agent
a perfection certificate (the “Perfection Certificate”). Ligand warrants that (a) Ligand’s exact legal name is that indicated on the Perfection Certificate and on the signature page hereof; (b) Ligand is an
organization of the type and is organized in the jurisdiction set forth in the Perfection Certificate; (c) the Perfection Certificate accurately sets forth Ligand’s organizational identification number or accurately states that Ligand has
none; (d) the Perfection Certificate accurately sets forth Ligand’s place of business, or, if more than one, its chief 

  
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executive office as well as Ligand’s mailing address (if different than its chief executive office); (e) subject to exceptions disclosed in writing by Ligand to Collateral Agent before
the Effective Date, no Borrower (and each of their respective predecessors) has, in the past five (5) years, changed its jurisdiction of organization, organizational structure or type, or any organizational number assigned by its jurisdiction;
and (f) all other information set forth on the Perfection Certificate pertaining to Ligand and each of its Subsidiaries is accurate and complete (it being understood and agreed that Ligand may from time to time update certain information in the
Perfection Certificate (including the information set forth in clause (d) above) after the Effective Date to the extent permitted by one or more specific provisions in this Agreement). If a Borrower or any Subsidiary is not now a Registered
Organization but later becomes one, such Borrower shall notify Collateral Agent of such occurrence and provide Collateral Agent with such Person’s organizational identification number within five (5) Business Days of receiving such
organizational identification number. 
 The execution, delivery and performance by a Borrower of
the Loan Documents to which it is a party have been duly authorized, and do not (i) conflict with any of such Borrower’s organizational documents, including the Operating Documents, (ii) contravene, conflict with, constitute a default
under or violate any material Requirement of Law, (iii) contravene, conflict or violate any applicable order, writ, judgment, injunction, decree, determination or award of any Governmental Authority by which such Borrower or any of its
Subsidiaries or any of their assets may be bound or affected, (iv) require any action by, filing, registration, or qualification with, or Governmental Approval from, any Governmental Authority (except such Governmental Approvals that have
already been obtained and are in full force and effect) or are being obtained pursuant to Section 6.1(b), or (v) constitute an event of default under any material agreement by which a Borrower or any of its Subsidiaries or their respective
properties is bound. No Borrower is in default under any agreement to which it is a party or by which it or any of its assets is bound in which such default could reasonably be expected to have a material adverse effect on Borrower’s business.

 5.2 Collateral. 

(a) Each Borrower has good title to, has rights in, and the power to transfer each item of the
Collateral upon which it purports to grant a Lien under the Loan Documents, free and clear of any and all Liens except Permitted Liens, and no Borrower has any Deposit Accounts, Securities Accounts, Commodity Accounts or other investment accounts
other than the Collateral Accounts or the other investment accounts, if any, described in the Perfection Certificate delivered to Collateral Agent in connection herewith with respect of which a Borrower has given Collateral Agent notice and taken
such actions as are necessary to give Collateral Agent a perfected security interest therein. The Accounts are bona fide, existing obligations of the Account Debtors. 

(b) On the Effective Date, the Collateral is not in the possession of any third party bailee (such
as a warehouse) except as disclosed in the Perfection Certificate, and, as of the Effective Date, no such third party bailee possesses components of the Collateral in excess of Fifty Thousand Dollars ($50,000). None of the components of the
Collateral shall be maintained at locations other than as disclosed in the Perfection Certificate on the Effective Date or as permitted pursuant to Section 7.2. In the event that a Borrower intends to store or otherwise deliver any portion of
the Collateral to a bailee in excess of Fifty Thousand Dollars ($50,000), then such Borrower will first receive the written consent of Collateral Agent and such bailee must execute and deliver a bailee agreement in form and substance reasonably
satisfactory to Collateral Agent. 
 (c) All Inventory is in all material respects of good
and marketable quality, free from material defects. 
 (d) Subject to contested matters
disclosed in the SEC Filings, each Borrower is the sole owner of the material items of Intellectual Property it purports to own, except for non-exclusive licenses granted to its customers in the ordinary course of business and licenses to strategic
partners. Except as noted on the Perfection Certificate, as supplemented from time to time (but subject to Section 6.7 at all times, and further subject to the expiration of Patents at the conclusion of their statutory term), each
Borrower’s Patents are valid and enforceable and no part of a Borrower’s Intellectual Property has been judged invalid or unenforceable, in whole or in part, and (ii) to the best of each Borrower’s knowledge, no claim has been
made that any part of the Intellectual Property or any practice by a Borrower violates the rights of any third party except to the extent such claim could not reasonably be expected to have a material adverse effect on such Borrower’s business.
Except as noted on the Perfection Certificate, no Borrower is a party to, nor is bound by, any material license or other agreement with 

  
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respect to which such Borrower is the licensee that (i) prohibits or otherwise restricts such Borrower from granting a security interest in its interest in such license or agreement or any
other property, or (ii) for which a default under or termination of could interfere with Collateral Agent’s right to sell any Collateral. A Borrower shall provide written notice to Collateral Agent within ten (10) days of entering
into or becoming bound by any such license or agreement (other than over-the-counter software that is commercially available to the public). Each Borrower shall take such commercially reasonable steps as Collateral Agent requests to obtain the
consent of, or waiver by, any Person whose consent or waiver is necessary for (i) all such licenses or agreements to be deemed “Collateral” and for Collateral Agent to have a security interest in it that might otherwise be restricted
or prohibited by law or by the terms of any such license or agreement, whether now existing or entered into in the future, and (ii) Collateral Agent shall have the ability in the event of a liquidation of any Collateral to dispose of such
Collateral in accordance with Collateral Agent’s rights and remedies under this Agreement and the other Loan Documents. 
 5.3 Litigation. Except as disclosed on the Perfection Certificate, there are as of the date of this Agreement no actions, suits, investigations, or proceedings pending or, to the knowledge
of the Responsible Officers, threatened in writing by or against any Borrower, or any of its Subsidiaries involving more than One Hundred Thousand Dollars ($100,000). 

5.4 No Material Deterioration in Financial Condition; Financial Statements. All consolidated
financial statements for each Borrower and its Subsidiaries delivered to Collateral Agent fairly present, in all material respects the consolidated financial condition of such Borrower and its Subsidiaries and the consolidated results of operations
of Borrowers and their Subsidiaries. There has not been any material deterioration in the consolidated financial condition of a Borrower or its Subsidiaries since the date of the most recent financial statements submitted to Collateral Agent.

 5.5 Solvency. The fair salable value of each Borrower’s assets (including
goodwill minus disposition costs) exceeds the fair value of its liabilities; Borrower is not left with unreasonably small capital after the transactions in this Agreement; and Borrower is able to pay its debts (including trade debts) as they mature.

 5.6 Regulatory Compliance. No Borrower is an “investment company” or a
company “controlled” by an “investment company” under the Investment Company Act of 1940, as amended. No Borrower is engaged as one of its important activities in extending credit for margin stock (under Regulations X, T and U of
the Federal Reserve Board of Governors). No Borrower or any of its Subsidiaries is a “holding company” or an “affiliate” of a “holding company” or a “subsidiary company” of a “holding company” as
each term is defined and used in the Public Utility Holding Company Act of 2005. No Borrower has violated any laws, ordinances or rules, the violation of which could reasonably be expected to have a material adverse effect on its business. None of a
Borrower’s or any of its Subsidiaries’ properties or assets has been used by Borrower or any Subsidiary or, to Borrower’s knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous
substance other than in material compliance with applicable laws. Each Borrower and each of its Subsidiaries have obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all
Governmental Authorities that are necessary to continue their respective businesses as currently conducted. None of Borrower or its Affiliates or any of their respective agents acting or benefiting in any capacity in connection with the transactions
contemplated by this Agreement is (i) in violation of any Anti-Terrorism Law, (ii) engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding or attempts to violate, any of the
prohibitions set forth in any Anti-Terrorism Law, or (iii) is a Blocked Person. Neither Borrower, nor, to the knowledge of Borrower, any of its Affiliates or agents acting or benefiting in any capacity in connection with the transactions
contemplated by this Agreement, (x) conducts any business or engages in making or receiving any contribution of funds, goods or services to or for the benefit of any Blocked Person, or (y) deals in, or otherwise engages in any transaction
relating to, any property or interest in property blocked pursuant to Executive Order No. 13224, any similar executive order or other Anti-Terrorism Law. 

5.7 Subsidiaries; Investments. No Borrower owns any stock, shares, partnership interests or
other equity securities except for Permitted Investments. 
 5.8 Tax Returns and
Payments; Pension Contributions. Each Borrower and its Subsidiaries have timely filed all required tax returns and reports, and Borrower and its Subsidiaries have timely paid all foreign, federal, state, and local taxes, assessments, deposits
and contributions owed by Borrower and its 

  
 7 

 
Subsidiaries in all jurisdictions in which such Borrower or its Subsidiaries are subject to taxes, including the United States, unless such taxes are being contested in accordance with the
following sentence. Each Borrower and its Subsidiaries may defer payment of any contested taxes, provided that a Borrower or such Subsidiary (a) in good faith contests its obligation to pay the taxes by appropriate proceedings promptly and
diligently instituted and conducted, (b) notifies Collateral Agent in writing of the commencement of, and any material development in, the proceedings, and (c) posts bonds or takes any other steps required to prevent the governmental
authority levying such contested taxes from obtaining a Lien upon any of the Collateral that is other than a “Permitted Lien”. No Borrower is aware of any claims or adjustments proposed for any of Borrower or its Subsidiaries prior tax
years that could result in material additional taxes becoming due and payable by such Borrower or its Subsidiaries. Each Borrower and its Subsidiaries have paid all amounts necessary to fund all present pension, profit sharing and deferred
compensation plans in accordance with their terms, and such Borrower and its Subsidiaries have not withdrawn from participation in, and has not permitted partial or complete termination of, or permitted the occurrence of any other event with respect
to, any such plan which could reasonably be expected to result in any liability of Borrower or its Subsidiaries, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 

5.9 Use of Proceeds. Borrowers shall use the proceeds of the Credit Extensions solely as
working capital and to fund its general business requirements in accordance with the provisions of this Agreement, and not for personal, family, household or agricultural purposes. 

5.10 Full Disclosure. No written representation, warranty or other statement of a Borrower
in any certificate or written statement given to Collateral Agent or any Lender, as of the date such representation, warranty, or other statement was made, taken together with all such written certificates and written statements given to Collateral
Agent or any Lender, contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained in the certificates or statements not misleading (it being recognized that the projections and
forecasts provided by a Borrower in good faith and based upon reasonable assumptions are not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected or forecasted
results). 
  

	 	6.	 AFFIRMATIVE COVENANTS 

 Each Borrower shall, and shall cause each of its Subsidiaries to, do all of the following: 
 6.1 Government Compliance. 
 (a)
Maintain its and all its Subsidiaries’ legal existence and good standing in their respective jurisdictions of organization and maintain qualification in each jurisdiction in which the failure to so qualify could reasonably be expected to have a
material adverse effect on Borrower’s business or operations. Borrower shall comply, and have each Subsidiary comply, with all laws, ordinances and regulations to which it is subject, the noncompliance with which could reasonably be expected to
have a material adverse effect on Borrower’s business. 
 (b) Obtain and keep in full
force and effect, all of the Governmental Approvals necessary for the performance by Borrower of its obligations under the Loan Documents and the grant of a security interest to Collateral Agent for the ratable benefit of Lenders, in all of the
Collateral. Each Borrower shall promptly provide copies to Collateral Agent of any material Governmental Approvals obtained by Borrower. 
 6.2 Financial Statements, Reports, Certificates. 
 (a) Deliver to Collateral Agent: (i) as soon as available, but no later than thirty (30) days after the last day of each month, a company prepared consolidated and consolidating balance
sheet and income statement covering the consolidated operations of Borrower and its Subsidiaries for such month certified by a Responsible Officer and in a form reasonably acceptable to Collateral Agent; (ii) as soon as available, but no later
than one hundred twenty (120) days after the last day of Borrower’s fiscal year, audited consolidated financial statements prepared under GAAP, consistently applied, together with an unqualified opinion on the financial

  
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statements from an independent certified public accounting firm acceptable to Collateral Agent in its reasonable discretion; (iii) as soon as available after approval thereof by
Borrower’s Board of Directors, but no later than January 31 of each of Borrower’s fiscal years, Borrower’s financial projections for the entire current fiscal year as approved by Borrower’s Board of Directors, which
such annual projections shall be set forth in a month-by-month format (such annual financial projections as originally delivered to Collateral Agent and Lenders are referred to herein as the “Annual Projections”); (iv) within
five (5) days of delivery, copies of all statements, reports and notices made available to Borrower’s security holders or holders of Subordinated Debt; (v) in the event that Borrower becomes subject to the reporting requirements under
the Securities Exchange Act of 1934, as amended, within five (5) days of filing, all reports on Form 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission, (vi) prompt notice of (A) any material change in the
composition of the Intellectual Property, (B) notice of the registration of any copyright, including any subsequent ownership right of Borrower in or to any copyright, patent or trademark, and (C) prompt notice of Borrower’s knowledge
of any event that could reasonably be expected to materially and adversely affect the value of the Intellectual Property; (vii) as soon as available, but no later than thirty (30) days after the last day of each month, copies of the
month-end bank statements for each deposit account or securities account maintained by Borrower or any Subsidiary, which bank statements may be provided to Collateral Agent by Borrower or directly from the applicable bank(s), and (viii) other
financial information as reasonably requested by Collateral Agent. 
 (b) Concurrently
with the delivery of the financial statements specified in Section 6.2(a)(i) above but no later than thirty (30) days after the last day of each month, deliver to Collateral Agent, a duly completed Compliance Certificate signed by a
Responsible Officer. 
 (c) Keep proper books of record and account in accordance with
GAAP in all material respects, in which full, true and correct entries shall be made of all dealings and transactions in relation to its business and activities. At the sole cost of Borrower, Borrower shall allow Collateral Agent and Lenders to
visit and inspect any of its properties, to examine and make abstracts or copies from any of its books and records, and to conduct a collateral audit and analysis of its operations and the Collateral. 

6.3 Inventory; Returns. Keep substantially all Inventory in good and marketable condition,
free from material defects. Returns and allowances between Borrower and its Account Debtors shall follow Borrower’s customary practices as they exist at the Effective Date. Borrower shall promptly notify Collateral Agent of all returns,
recoveries, disputes and claims that involve more than One Hundred Thousand Dollars ($100,000) individually or in the aggregate in any calendar year. 

6.4 Taxes; Pensions. Timely file and require each of its Subsidiaries to timely file, all
required tax returns and reports and timely pay, and require each of its Subsidiaries to timely file, all foreign, federal, state, and local taxes, assessments, deposits and contributions owed by Borrower and each of its Subsidiaries, except for
deferred payment of any taxes contested pursuant to the terms of Section 5.8 hereof, and shall deliver to Collateral Agent, on demand, appropriate certificates attesting to such payments, and pay all amounts necessary to fund all present
pension, profit sharing and deferred compensation plans in accordance with their terms. 

6.5 Insurance. Keep its business and the Collateral insured for risks and in amounts
standard for similarly situated companies in Borrower’s industry and location and as Collateral Agent may reasonably request. Insurance policies shall be in a form, with companies, and in amounts that are reasonably satisfactory to Collateral
Agent. All property policies shall have a lender’s loss payable endorsement showing Collateral Agent as lender loss payee and waive subrogation against Collateral Agent, and all liability policies shall show, or have endorsements showing,
Collateral Agent, as an additional insured. All policies (or the loss payable and additional insured endorsements) shall provide that the insurer shall endeavor to give Collateral Agent at least thirty (30) days notice before canceling,
amending, or declining to renew its policy. At Collateral Agent’s request, a Borrower shall deliver certified copies of policies and evidence of all premium payments. Proceeds payable under any policy shall, at Collateral Agent’s option,
be payable to Collateral Agent on behalf of Lenders on account of the Obligations. Notwithstanding the foregoing, (a) so long as no Event of Default has occurred and is continuing, a Borrower shall have the option of applying the proceeds of
any casualty policy up to $50,000 with respect to any loss, but not exceeding $100,000, in the aggregate for all losses under all casualty policies in any one year, toward the replacement or repair of destroyed or damaged property; provided that any
such replaced or repaired property (i) shall be of equal or like value as the replaced or repaired Collateral and (ii) shall be deemed Collateral in which 

  
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Collateral Agent has been granted a first priority security interest, and (b) after the occurrence and during the continuance of an Event of Default, all proceeds payable under such casualty
policy shall, at the option of Collateral Agent, be payable to Collateral Agent, for the ratable benefit of Lenders, on account of the Obligations. If a Borrower fails to obtain insurance as required under this Section 6.5 or to pay any amount
or furnish any required proof of payment to third persons and Collateral Agent, Collateral Agent may make all or part of such payment or obtain such insurance policies required in this Section 6.5, and take any action under the policies
Collateral Agent deems prudent. 
 6.6 Operating Accounts. 

(a) Maintain all of such Borrower’s and all of their Subsidiaries’ operating and other
deposit accounts and securities accounts in accounts that are subject to a Control Agreement in favor of Collateral Agent, other than Certificate of Deposit account No. 60100378 maintained with Square 1 Bank (the “Cash Collateral
Account”), which shall be subject to a Control Agreement only (i) until Borrower enters into a Loan and Security Agreement between Borrower and Square 1 Bank, as amended from time to time (the “Square 1 Agreement”) and
(ii) after Borrower has repaid any amounts that remain owing thereunder or Square 1 Bank no longer has any obligation to make any credit extensions to Borrower under the Square 1 Agreement. Borrower shall cause the Cash Collateral Account to be
closed or made subject to a Control Agreement at all other times. Borrower shall not permit the balance in the Cash Collateral Account to exceed $5,000,000, nor permit the Collateral Account to secure any obligations other than those arising under
the Square 1 Agreement. 
 (b) Such Borrower shall, and shall cause its Subsidiaries to,
provide Collateral Agent five (5) days’ prior written notice before establishing any Collateral Account. In addition, for each Collateral Account that Borrower or Guarantor or any of their Subsidiaries any time maintains, such Borrower
shall cause the applicable bank or financial institution at or with which such Collateral Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Collateral
Agent’s Lien in such Collateral Account in accordance with the terms hereunder, which Control Agreement may not be terminated without prior written consent of Collateral Agent. 

(c) No Borrower or its Subsidiaries shall maintain any Collateral Accounts except Collateral
Accounts located in the United States in accordance with Sections 6.6(a) and (b). 
 6.7
Protection of Intellectual Property Rights. Such Borrower shall: (a) protect, defend and maintain the validity and enforceability of its Intellectual Property that is material to its business; (b) promptly advise Collateral Agent in
writing of material infringement by a third party of its Intellectual Property; and (c) not allow any Intellectual Property material to its business to be abandoned, forfeited or dedicated to the public without Collateral Agent’s written
consent. If a Borrower (i) obtains any patent, registered trademark or servicemark, registered copyright, registered mask work, or any pending application for any of the foregoing, whether as owner, licensee or otherwise, or (ii) applies
for any patent or the registration of any trademark or servicemark, then Borrower or Guarantor shall provide written notice thereof to Collateral Agent and each Lender. 

6.8 Evidence of Recording. Each Borrower shall promptly provide to Collateral Agent evidence
of the recording of any agreement necessary for Collateral Agent to perfect and maintain a first priority perfected security interest in the Collateral. 

6.9 Litigation Cooperation. From the date hereof and continuing through the termination of
this Agreement, make available to Collateral Agent, without expense to Collateral Agent or Lenders, such Borrower and its officers, employees and agents and Borrower’s Books, to the extent that Collateral Agent may reasonably deem them
necessary to prosecute or defend any third-party suit or proceeding instituted by or against Collateral Agent or Lenders with respect to any Collateral or relating to such Borrower. 

6.10 Notices of Litigation and Default. Such Borrower will give prompt written notice to Collateral
Agent of any litigation or governmental proceedings pending or threatened (in writing) against such Borrower or any of its Subsidiaries that could reasonably be expected to result in damages or costs to Borrower or any of its Subsidiaries of One
Hundred Thousand Dollars ($100,000) or more or which could reasonably be expected to have a material adverse effect with respect to Borrower’s business. Without limiting or contradicting 

  
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any other more specific provision of this Agreement, promptly (and in any event within three (3) Business Days) upon Borrower becoming aware of the existence of any Event of Default or event
which, with the giving of notice or passage of time, or both, would constitute an Event of Default, Borrower shall give written notice to Collateral Agent of such occurrence, which such notice shall include a reasonably detailed description of such
Event of Default or event which, with the giving of notice or passage of time, or both, would constitute an Event of Default. 
 6.11 Creation/Acquisition of Subsidiaries. In the event such Borrower or any Subsidiary creates or acquires any Subsidiary, such Borrower and such Subsidiary shall promptly notify Collateral
Agent of the creation or acquisition of such new Subsidiary and take all such action as may be reasonably required by Collateral Agent to cause each such Subsidiary to become a Borrower hereunder and, in each case, grant a continuing pledge and
security interest in and to the assets of such Subsidiary (substantially as described on Exhibit A hereto); and such Borrower, as applicable, shall grant and pledge to Collateral Agent, for the ratable benefit of Lenders, a
perfected security interest in the stock, units or other evidence of ownership of each Subsidiary. 
 6.12 Further Assurances. 
 (a)
Execute any further instruments and take further action as Collateral Agent reasonably requests to perfect or continue Collateral Agent’s Lien in the Collateral or to effect the purposes of this Agreement. 

(b) Deliver to Collateral Agent, within five (5) days after the same are sent or received,
copies of all material correspondence, reports, documents and other filings with any Governmental Authority that could reasonably be expected to have a material adverse effect on any of the Governmental Approvals material to Borrower’s business
or otherwise on the operations of Borrower or any of its Subsidiaries. 
 6.13 Post
Closing Requirements. Such Borrower shall complete each of the post-closing obligations and/or provide to Collateral Agent each of the documents, instruments, agreements and information listed on a Post-Closing Letter signed by Borrowers and
Collateral Agent on or before the date set forth for each such item thereon, each of which shall be completed or provided in form and substance reasonably satisfactory to Collateral Agent. Failure of a Borrower to deliver the post-closing items
within the time periods set forth in the Post-Closing Letter shall constitute an Event of Default. 
  

	 	7.	 NEGATIVE COVENANTS 

 No Borrower shall, nor permit any of its Subsidiaries to, do any of the following: 
 7.1 Dispositions. Convey, sell, lease, transfer, assign, or otherwise dispose of (collectively, “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part
of its business or property, except for Transfers (a) of Inventory in the ordinary course of business; (b) of worn-out or obsolete Equipment; (c) in connection with Permitted Liens and Permitted Investments; (d) of non-exclusive
licenses (or exclusive field-of-use licenses) for the use of the Intellectual Property in the ordinary course of business in connection with joint ventures and corporate collaborations which could not result in a legal transfer of title of the
licensed property and with respect to which Borrower expressly retains the first right to prosecute any patents and patent applications as well as the first right to enforce any potential infringement of any such exclusively licensed patents and
patent applications but that may be exclusive in respects other than territory and that may be exclusive as to territory only as to discreet geographical areas outside of the United States; or (e) of Intellectual Property that is both
(i) nonmaterial and (ii) nonstrategic. 
 7.2 Changes in Business,
Management, Ownership, or Business Locations. (a) Engage in or permit any of its Subsidiaries to engage in any business other than the businesses engaged in as of the Effective Date or reasonably related thereto; (b) liquidate or
dissolve; or (c) (i) any Key Person shall cease to be actively engaged in the management of such Borrower unless a replacement for such Key Person, reasonably satisfactory to Lenders holding at least a majority of the aggregate outstanding
principal balance of the Term Loan, is approved by such Borrower’s Board of Directors and engaged by such Borrower within ninety (90) days, or (ii) enter into any transaction or series of related transactions in which the stockholders
of such Borrower who were not stockholders 

  
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immediately prior to the first such transaction own more than 40% of the voting stock of such Borrower immediately after giving effect to such transaction or related series of such transactions.
No Borrower shall, without at least thirty (30) days prior written notice to Collateral Agent: (A) add any new offices or business locations, including warehouses (unless such new offices or business locations contain less than Fifty
Thousand Dollars ($50,000) in such Borrower’s assets or property), (B) change its jurisdiction of organization, (C) change its organizational structure or type, (D) change its legal name, or (E) change any organizational
number (if any) assigned by its jurisdiction of organization. 
 7.3 Mergers or
Acquisitions. Except for the CyDex Acquisition, merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the
capital stock, shares or property of another Person. A Subsidiary may merge or consolidate into another Subsidiary as long as the surviving Subsidiary is a Borrower hereunder or into Borrower as long as Borrower is the surviving legal entity, and as
long as no Event of Default is occurring prior thereto or arises as a result therefrom. Borrower and its Subsidiaries may enter into any of the foregoing transactions provided (i) the aggregate net cash consideration given (cash paid and
mandatory funding obligations undertaken, less Cash Equivalents acquired) in such transactions does not exceed $5,000,000 in any calendar year and the aggregate Indebtedness assumed in connection with such transactions is (a) unsecured and
(b) does not exceed $5,000,000 in any calendar year, (ii) such Borrower is the surviving entity or the surviving entity becomes a Borrower hereunder, and (iii) no Event of Default is occurring prior thereto or exists after giving
effect thereto. Collateral Agent shall respond within ten (10) days to the request by a Borrower to waive this Section 7.3 or permit a transaction to occur that, without such permission, would violate this Section 7.3. 

7.4 Indebtedness. Create, incur, assume, or be liable for any Indebtedness, or permit any
Subsidiary to do so, other than Permitted Indebtedness. 
 7.5 Encumbrance. Create,
incur, allow, or suffer any Lien on any of its property, or assign or convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, or permit any Collateral not to be
subject to the first priority security interest granted herein (except for Permitted Liens that are permitted by the terms of this agreement to have priority to Collateral Agent’s Lien), or enter into any agreement, document, instrument or
other arrangement (except with or in favor of Collateral Agent) with any Person that directly or indirectly prohibits or has the effect of prohibiting Borrower or any Subsidiary from assigning or encumbering its or any Subsidiary’s property,
except as is otherwise permitted in Section 7.1 and the definition of “Permitted Liens”. 
 7.6 Maintenance of Collateral Accounts. Maintain any Collateral Account except pursuant to the terms of Section 6.6. 

7.7 Distributions; Investments. (a) Pay any dividends (other than dividends payable
solely in capital stock) or make any distribution or payment or redeem, retire or purchase any capital stock (other (i) than repurchases pursuant to the terms of employee stock purchase plans, employee restricted stock agreements, stockholder
rights plans, director or consultant stock option plans, or similar plans, provided such repurchases do not exceed Fifty Thousand Dollars ($50,000) in the aggregate per fiscal year and (ii) repurchases of its common stock from time to time in
privately negotiated and open market transactions in an aggregate repurchase amount not to exceed Seven Hundred Fifty Thousand Dollars ($750,000) in any fiscal year, provided such repurchases are on commercially reasonable terms and not executed at
a premium to fair market value) or (b) directly or indirectly make any Investment other than Permitted Investments, or permit any of its Subsidiaries to do so. 

7.8 Transactions with Affiliates. Directly or indirectly enter into or permit to exist any
material transaction with any Affiliate of Borrower or Guarantor, except for transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an
arm’s length transaction with a non-affiliated Person. 
 7.9 Subordinated
Debt. (a) Make or permit any payment on any Subordinated Debt, except under the terms of the subordination, intercreditor, or other similar agreement to which such Subordinated Debt is subject, or (b) amend any provision in any
document relating to the Subordinated Debt which would increase the amount thereof or adversely affect the subordination thereof to Obligations owed to Lenders. 

  
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 7.10 Compliance. Become an “investment
company” or a company controlled by an “investment company”, under the Investment Company Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in
Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds of any Credit Extension for that purpose; fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as
defined in ERISA, to occur; fail to comply with any law or regulation, if the violation could reasonably be expected to have a material adverse effect on Borrower’s business, or permit any of its Subsidiaries to do so; withdraw or permit any
Subsidiary to withdraw from participation in, permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation plan which could reasonably be
expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 

7.11 Compliance with Anti-Terrorism Laws. Collateral Agent notifies each Borrower that pursuant to
the requirements of Anti-Terrorism Laws, and Collateral Agent’s policies and practices, Collateral Agent is required to obtain, verify and record certain information and documentation that identifies Borrower and Guarantor and their principals,
which information includes the name and address of such Borrower and its principals and such other information that will allow Collateral Agent to identify such party in accordance with Anti-Terrorism Laws. No Borrower will, nor will such Borrower
permit any Subsidiary or Affiliate to, directly or indirectly, knowingly enter into any documents, instruments, agreements or contracts with any Person listed on the OFAC Lists. A Borrower shall immediately notify Collateral Agent if such Borrower
has knowledge that a Borrower or any Subsidiary or Affiliate is listed on the OFAC Lists or (a) is convicted on, (b) pleads nolo contendere to, (c) is indicted on, or (d) is arraigned and held over on charges involving
money laundering or predicate crimes to money laundering. No Borrower will, nor will any Borrower permit, any Subsidiary or Affiliate to, directly or indirectly, (i) conduct any business or engage in any transaction or dealing with any Blocked
Person, including, without limitation, the making or receiving of any contribution of funds, goods or services to or for the benefit of any Blocked Person, (ii) deal in, or otherwise engage in any transaction relating to, any property or
interests in property blocked pursuant to Executive Order No. 13224, any similar executive order or other Anti-Terrorism Law, or (iii) engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading
or avoiding, or attempts to violate, any of the prohibitions set forth in Executive Order No. 13224 or other Anti-Terrorism Law. 
  

	 	8.	 EVENTS OF DEFAULT 

 Any one of the following shall constitute an event of default (an “Event of Default”) under this Agreement: 

8.1 Payment Default. A Borrower fails to (a) make any payment of principal or interest
on any Credit Extension on its due date, or (b) pay any other Obligations within three (3) Business Days after such Obligations are due and payable (which three (3) Business Day grace period shall not apply to payments due on the
Maturity Date or the date of acceleration pursuant to Section 9.1 (a) hereof). During the cure period, the failure to cure the payment default is not an Event of Default (but no Credit Extension will be made during the cure period);

 8.2 Covenant Default. 

(a) A Borrower fails or neglects to perform any obligation in Sections 6 or Borrower or violates
any covenant in Section 7; or 
 (b) A Borrower or any of its Subsidiaries fails or
neglects to perform, keep, or observe any other term, provision, condition, covenant or agreement contained in this Agreement or any Loan Documents, and as to any default (other than those specified in this Section 8) under such other term,
provision, condition, covenant or agreement that can be cured, has failed to cure the default within ten (10) days after the date that Borrower knew, or reasonably should have known, of the occurrence of such default; provided, however, that if
the default cannot by its nature be cured within the ten (10) day period or cannot after diligent attempts by such Borrower be cured within such ten (10) day period, and such default is likely to be cured within a reasonable time, then
Borrower shall have an additional period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, and within such reasonable time period the failure to cure the default shall not be deemed an Event of Default (but
no Credit Extensions shall be made during such cure period); 

  
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 8.3 Material Adverse Change. A Material
Adverse Change occurs; 
 8.4 Attachment; Levy; Restraint on Business. 

(a) (i) The service of process seeking to attach, by trustee or similar process, any funds of a
Borrower or of any entity under control of a Borrower (including a Subsidiary) on deposit with any Lender or any Lender’s Affiliate or any bank or other institution at which a Borrower maintains a Collateral Account, or (ii) a notice of
lien, levy, or assessment is filed against any of a Borrower’s assets by any government agency, and the same under subclauses (i) and (ii) hereof are not, within ten (10) days after the occurrence thereof, discharged or stayed
(whether through the posting of a bond or otherwise); provided, however, no Credit Extensions shall be made during any ten (10) day cure period; and 

(b) (i) any of a Borrower’s assets is attached, seized, levied on, or comes into possession of
a trustee or receiver, or (ii) any court order enjoins, restrains, or prevents a Borrower from conducting any substantial part of its business; 

8.5 Insolvency. (a) A Borrower is unable generally to pay its debts (including trade
debts) as they become due or otherwise becomes insolvent; (b) a Borrower begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against a Borrower and not dismissed or stayed within thirty (30) days (but no Credit
Extensions shall be made while any of the conditions described in clause (a) exist and/or until any Insolvency Proceeding is dismissed); 
 8.6 Other Agreements. There is a default in any agreement to which a Borrower is a party with a third party or parties resulting in a right by such third party or parties, whether or not
exercised, to accelerate the maturity of any Indebtedness in an amount in excess of One Hundred Thousand Dollars ($100,000) or that could have a material adverse effect on such Borrower’s business. 

8.7 Judgments. One or more judgments, orders, or decrees for the payment of money in an
amount, individually or in the aggregate, of at least Fifty Thousand Dollars ($50,000) (not covered by independent third-party insurance as to which liability has been accepted by such insurance carrier) shall be rendered against a Borrower and
shall remain unsatisfied, unvacated, or unstayed for a period of ten (10) days after the entry thereof (provided that no Credit Extensions will be made prior to the satisfaction, vacation, or stay of such judgment, order or decree); 

8.8 Subordinated Debt. A default or breach occurs under any agreement between a Borrower and
any creditor that signed a subordination, intercreditor, or other similar agreement with Collateral Agent or Lenders, or any creditor that has signed such an agreement with Collateral Agent or Lenders breaches any terms of such agreement;

 8.9 Governmental Approvals. Any Governmental Approval shall have been
(a) revoked, rescinded, suspended, modified in an adverse manner or not renewed in the ordinary course for a full term or (b) subject to any decision by a Governmental Authority that designates a hearing with respect to any applications
for renewal of any of such Governmental Approval or that could result in the Governmental Authority taking any of the actions described in clause (a) above, and such decision or such revocation, rescission, suspension, modification or
non-renewal (i) has, or could reasonably be expected to have, a Material Adverse Change, or (ii) adversely affects the legal qualifications of a Borrower or any of its Subsidiaries to hold such Governmental Approval in any applicable
jurisdiction and such revocation, rescission, suspension, modification or non-renewal could reasonably be expected to affect the status of or legal qualifications of a Borrower or any of its Subsidiaries to hold any Governmental Approval in any
other jurisdiction that could reasonably be expected to have a material adverse effect on such Borrower’s business. 

  
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 8.10 Lien Priority. Any Lien created hereunder or by
any other Loan Document shall at any time fail to constitute a valid and perfected Lien on any of the Collateral purported to be secured thereby, subject to no prior or equal Lien, other than Permitted Liens; or 

8.11 Misrepresentations. A Borrower or any Person acting for such Borrower makes any
representation, warranty, or other statement now or later in this Agreement, any Loan Document or in any writing delivered to Collateral Agent and/or Lenders or to induce Collateral Agent and/or Lenders to enter this Agreement or any Loan Document,
and such representation, warranty, or other statement is incorrect in any material respect when made. 
  

	 	9.	 RIGHTS AND REMEDIES 

9.1 Rights and Remedies. 

(a) Upon the occurrence and during the continuance of an Event of Default, Collateral Agent may,
and at the written direction of any Lender shall, without notice or demand, do any or all of the following: (i) deliver notice of the Event of Default to a Borrower, (ii) by notice to a Borrower declare all Obligations immediately due and
payable (but if an Event of Default described in Section 8.5 occurs all Obligations shall be immediately due and payable without any action by Collateral Agent or Lenders) or (iii) by notice to a Borrower suspend or terminate the
obligations, if any, of Lenders to advance money or extend credit for any Borrower’s benefit under this Agreement or under any other agreement between a Borrower and Collateral Agent and/or Lenders (but if an Event of Default described in
Section 8.5 occurs all obligations, if any, of Lenders to advance money or extend credit for any Borrower’s benefit under this Agreement or under any other agreement between a Borrower and Collateral Agent and/or Lenders shall be
immediately terminated without any action by Collateral Agent or Lenders). 
 (b) Without
limiting the rights of the Collateral Agent and Lenders set forth in Section 9.1(a) above, upon the occurrence and during the continuance of an Event of Default Collateral Agent shall have the right, at the written direction of the Required
Lenders, without notice or demand, to do any or all of the following: 
 (i) foreclose
upon and/or sell or otherwise liquidate, the Collateral; 
 (ii) apply to the Obligations
any (a) balances and deposits of any Borrower that Collateral Agent or any Lender holds or controls, or (b) any amount held or controlled by Collateral Agent or any Lender owing to or for the credit or the account of any Borrower; and/or

 (iii) commence and prosecute an Insolvency Proceeding or consent to a Borrower
commencing any Insolvency Proceeding. 
 (c) Without limiting the rights of the Collateral
Agent and Lenders set forth in Sections 9.1(a) and (b) above, upon the occurrence and during the continuance of an Event of Default Collateral Agent shall have the right, without notice or demand, to do any or all of the following: 

(i) settle or adjust disputes and claims directly with Account Debtors for amounts on terms and in
any order that Collateral Agent considers advisable, notify any Person owing a Borrower money of Collateral Agent’s security interest in such funds, and verify the amount of such account; 

(ii) make any payments and do any acts it considers necessary or reasonable to protect the
Collateral and/or its security interest in the Collateral. Each Borrower shall assemble the Collateral if Collateral Agent requests and make it available in a location as Collateral Agent reasonably designates. Collateral Agent may enter premises
where the Collateral is located, take and maintain possession of any part of the Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Each
Borrower grants Collateral Agent a license to enter and occupy any of its premises, without charge, to exercise any of Collateral Agent’s rights or remedies; 

  
 15 

 (iii) ship, reclaim, recover, store, finish,
maintain, repair, prepare for sale, and/or advertise for sale, the Collateral. Collateral Agent is hereby granted a non-exclusive, royalty-free license or other right to use, without charge, a Borrower’s labels, patents, copyrights, mask works,
rights of use of any name, trade secrets, trade names, trademarks, service marks, and advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in
connection with Collateral Agent’s exercise of its rights under this Section 9.1, such Borrower’s rights under all licenses and all franchise agreements inure to Collateral Agent for the benefit of Lenders; 

(iv) place a “hold” on any account maintained with Collateral Agent or Lenders and/or
deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any Control Agreement or similar agreements providing control of any Collateral; 

(v) demand and receive possession of all of a Borrower’s Books; 

(vi) appoint a receiver to cease, manage and realize any of the Collateral, and such receiver
shall have any right and authority as any competent court will grant or authorize in accordance with any applicable law, including any power or authority to manage the business of a Borrower; and 

(vii) Subject to clauses 9.1(a) and (b), exercise all rights and remedies available to Collateral
Agent under the Loan Documents or at law or equity, including all remedies provided under the Code (including disposal of the Collateral pursuant to the terms thereof). 
 Notwithstanding any provision of this Section 9.1 to the contrary, upon the occurrence of any Event of Default, Collateral Agent shall have the right to exercise any and all remedies referenced in
this Section 9.1 without the written consent of Required Lenders following the occurrence of an Exigent Circumstance. As used in the immediately preceding sentence, “Exigent Circumstance” means any event or circumstance that, in the
reasonable judgment of Collateral Agent, imminently threatens the ability of Collateral Agent to realize upon all or any material portion of the Collateral, such as, without limitation, fraudulent removal, concealment, or abscondment thereof,
destruction or material waste thereof, or failure of Borrower after reasonable demand to maintain or reinstate adequate casualty insurance coverage, or which, in the judgment of Collateral Agent, could reasonably be expected to result in a material
diminution in value of the Collateral. 
 9.2 Power of Attorney. Each Borrower
irrevocably appoints Collateral Agent as its lawful attorney-in-fact, exercisable upon the occurrence and during the continuance of an Event of Default, to: (a) endorse such Borrower’s name on any checks or other forms of payment or
security; (b) sign such Borrower’s name on any invoice or bill of lading for any Account or drafts against Account Debtors; (c) settle and adjust disputes and claims about the Accounts directly with Account Debtors, for amounts and on
terms Collateral Agent determines reasonable; (d) make, settle, and adjust all claims under such Borrower’s insurance policies; (e) pay, contest or settle any Lien, charge, encumbrance, security interest, and adverse claim in or to
the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; and (f) transfer the Collateral into the name of Collateral Agent or a third party as the Code or any applicable law permits. Such
Borrower appoints Collateral Agent as its lawful attorney-in-fact to sign such Borrower’s name on any documents necessary to perfect or continue the perfection of Collateral Agent’s security interest in the Collateral regardless of whether
an Event of Default has occurred until all Obligations have been satisfied in full and Collateral Agent and Lenders are under no further obligation to make Credit Extensions hereunder. Collateral Agent’s foregoing appointment as such
Borrower’s attorney in fact, and all of Collateral Agent’s rights and powers, coupled with an interest, are irrevocable until all Obligations have been fully repaid and performed and Collateral Agent’s and Lenders’ obligation to
provide Credit Extensions terminates. 
 9.3 Protective Payments. If a Borrower
fails to obtain the insurance called for by Section 6.5 or fails to pay any premium thereon or fails to pay any other amount that such Borrower is obligated to pay under this Agreement or any other Loan Document, Collateral Agent may obtain
such insurance or make such payment, and all amounts so paid by Collateral Agent are Lenders’ Expenses and immediately due and payable, bearing interest at the Default Rate, and secured by the Collateral. Collateral Agent will make reasonable
efforts to provide a Borrower with notice of Collateral Agent obtaining such insurance or making such payment at the time it is obtained or paid or within a reasonable time thereafter. No such payments by Collateral Agent are deemed an agreement to
make similar payments in the future or Collateral Agent’s waiver of any Event of Default. 

  
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 9.4 Application of Payments and Proceeds.
Notwithstanding anything to the contrary contained in this Agreement, upon the occurrence and during the continuance of an Event of Default, (a) each Borrower irrevocably waives the right to direct the application of any and all payments at any
time or times thereafter received by Collateral Agent from or on behalf of such Borrower of all or any part of the Obligations, and, as between such Borrower on the one hand and Collateral Agent and Lenders on the other, Collateral Agent shall have
the continuing and exclusive right to apply and to reapply any and all payments received against the Obligations in such manner as Collateral Agent may deem advisable notwithstanding any previous application by Collateral Agent, and (b) the
proceeds of any sale of, or other realization upon all or any part of the Collateral shall be applied: first, to Lenders’ Expenses; second, to accrued and unpaid interest on the Obligations (including any interest which, but for the provisions
of the United States Bankruptcy Code, would have accrued on such amounts); third, to the principal amount of the Obligations outstanding; and fourth, to any other indebtedness or obligations of a Borrower owing to Collateral Agent or any Lender
under the Loan Documents. Any balance remaining shall be delivered to such Borrower or to whoever may be lawfully entitled to receive such balance or as a court of competent jurisdiction may direct. In carrying out the foregoing, (x) amounts
received shall be applied in the numerical order provided until exhausted prior to the application to the next succeeding category, and (y) each of the Persons entitled to receive a payment in any particular category shall receive an amount
equal to its pro rata share of amounts available to be applied pursuant thereto for such category. Any reference in this Agreement to an allocation between or sharing by Lenders of any right, interest or obligation “ratably,”
“proportionally” or in similar terms shall refer to Pro Rata Share unless expressly provided otherwise. Collateral Agent, or if applicable, each Lender, shall promptly remit to the other Lenders such sums as may be necessary to ensure the
ratable repayment of each Lender’s portion of the Term Loan and the ratable distribution of interest, fees and reimbursements paid or made by a Borrower. Notwithstanding the foregoing, a Lender receiving a scheduled payment shall not be
responsible for determining whether the other Lenders also received their scheduled payment on such date; provided, however, if it is later determined that a Lender received more than its ratable share of scheduled payments made on any date or
dates, then such Lender shall remit to Collateral Agent or other Lenders such sums as may be necessary to ensure the ratable payment of such scheduled payments, as instructed by Collateral Agent. If any payment or distribution of any kind or
character, whether in cash, properties or securities, shall be received by a Lender in excess of its ratable share, then the portion of such payment or distribution in excess of such Lender’s ratable share shall be received by such Lender in
trust for and shall be promptly paid over to the other Lender for application to the payments of amounts due on the other Lenders’ claims. To the extent any payment for the account of a Borrower is required to be returned as a voidable transfer
or otherwise, Lenders shall contribute to one another as is necessary to ensure that such return of payment is on a pro rata basis. If any Lender shall obtain possession of any Collateral, it shall hold such Collateral for itself and as agent and
bailee for Collateral Agent and other Lenders for purposes of perfecting Collateral Agent’s security interest therein. 
 9.5 Liability for Collateral. So long as Collateral Agent and Lenders comply with reasonable banking practices regarding the safekeeping of the Collateral in the possession or under the
control of Collateral Agent and Lenders, Collateral Agent and Lenders shall not be liable or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the
Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or other Person. Borrowers bear all risk of loss, damage or destruction of the Collateral. 

9.6 No Waiver; Remedies Cumulative. Collateral Agent’s failure, at any time or times,
to require strict performance by a Borrower of any provision of this Agreement or any other Loan Document shall not waive, affect, or diminish any right of Collateral Agent thereafter to demand strict performance and compliance herewith or
therewith. No waiver hereunder shall be effective unless signed by Collateral Agent and then is only effective for the specific instance and purpose for which it is given. Collateral Agent’s rights and remedies under this Agreement and the
other Loan Documents are cumulative. Collateral Agent has all rights and remedies provided under the Code, any applicable law, by law, or in equity. Collateral Agent’s exercise of one right or remedy is not an election, and Collateral
Agent’s waiver of any Event of Default is not a continuing waiver. Collateral Agent’s delay in exercising any remedy is not a waiver, election, or acquiescence. 

  
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 9.7 Waiver. Each Borrower waives, to the
fullest extent permitted by law, demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments,
chattel paper, and guarantees held by Collateral Agent on which a Borrower is liable. 
  

	 	10.	 NOTICES 

 All notices, consents, requests, approvals, demands, or other communication (collectively, “Communication”) by any party to this Agreement or any other Loan Document must be in writing
and shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of actual receipt and three (3) Business Days after deposit in the U.S. mail, first class, registered or certified mail return receipt requested,
with proper postage prepaid; (b) upon transmission, when sent by electronic mail (if an email address is specified herein) or facsimile transmission; (c) one (1) Business Day after deposit with a reputable overnight courier with all
charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be notified and sent to the address, facsimile number, or email address indicated below. Any of Collateral Agent, Lender or
Borrower may change its mailing or electronic mail address or facsimile number by giving the other party written notice thereof in accordance with the terms of this Section 10. 

 

			
	 If to Borrower:
	  	 LIGAND PHARMACEUTICALS INCORPORATED
 11085 N. Torrey Pines Road, Suite 300
 La Jolla, CA 92037

Attn: John P. Sharp, Vice President and Chief Financial Officer
 Fax: (858) 550-5608
 Email:jsharp@ligand.com

		
	 If to Collateral Agent:
	  	 Oxford Finance Corporation
 133 North Fairfax Street
 Alexandria, Virginia 22314

Attention: General Counsel
 Fax: (703) 519-5225

  

	 	11.	 CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER 

California law governs the Loan Documents without regard to principles of conflicts of law. Each Borrower, Lenders and
Collateral Agent each submit to the exclusive jurisdiction of the State and Federal courts in San Diego County, California. NOTWITHSTANDING THE FOREGOING, COLLATERAL AGENT AND LENDERS SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST A
BORROWER OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION WHICH COLLATERAL AGENT AND LENDERS (IN ACCORDANCE WITH THE PROVISIONS OF SECTION 9.1) DEEM NECESSARY OR APPROPRIATE TO REALIZE ON THE COLLATERAL OR TO OTHERWISE ENFORCE COLLATERAL
AGENT’S AND LENDERS’ RIGHTS AGAINST A BORROWER OR ITS PROPERTY. Each Borrower expressly submits and consents in advance to such jurisdiction in any action or suit commenced in any such court, and such Borrower hereby waives any objection
that it may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate by such court. Each Borrower waives personal service of
the summons, complaints, and other process issued in such action or suit and agrees that service of such summons, complaints, and other process may be made by registered or certified mail addressed to a Borrower at the address set forth in
Section 10 of this Agreement and that service so made shall be deemed completed upon the earlier to occur of Borrower’s actual receipt thereof or three (3) days after deposit in the U.S. mails, first class, registered or certified
mail return receipt requested, proper postage prepaid. 
 TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH BORROWER, COLLATERAL AGENT,
AND LENDERS EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS
WAIVER IS A MATERIAL INDUCEMENT FOR THE PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL. 

  
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 WITHOUT INTENDING IN ANY WAY TO LIMIT THE PARTIES’ AGREEMENT TO WAIVE
THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY, if the above waiver of the right to a trial by jury is not enforceable, the parties hereto agree that any and all disputes or controversies of any nature between them arising at any time shall be decided by
a reference to a private judge, mutually selected by the parties (or, if they cannot agree, by the Presiding Judge of the San Diego County, California Superior Court) appointed in accordance with California Code of Civil Procedure Section 638
(or pursuant to comparable provisions of federal law if the dispute falls within the exclusive jurisdiction of the federal courts), sitting without a jury, in San Diego County, California; and the parties hereby submit to the jurisdiction of such
court. The reference proceedings shall be conducted pursuant to and in accordance with the provisions of California Code of Civil Procedure §§ 638 through 645.1, inclusive. The private judge shall have the power, among others, to grant
provisional relief, including without limitation, entering temporary restraining orders, issuing preliminary and permanent injunctions and appointing receivers. All such proceedings shall be closed to the public and confidential and all records
relating thereto shall be permanently sealed. If during the course of any dispute, a party desires to seek provisional relief, but a judge has not been appointed at that point pursuant to the judicial reference procedures, then such party may apply
to the San Diego County, California Superior Court for such relief. The proceeding before the private judge shall be conducted in the same manner as it would be before a court under the rules of evidence applicable to judicial proceedings. The
parties shall be entitled to discovery which shall be conducted in the same manner as it would be before a court under the rules of discovery applicable to judicial proceedings. The private judge shall oversee discovery and may enforce all discovery
rules and orders applicable to judicial proceedings in the same manner as a trial court judge. The parties agree that the selected or appointed private judge shall have the power to decide all issues in the action or proceeding, whether of fact or
of law, and shall report a statement of decision thereon pursuant to California Code of Civil Procedure § 644(a). Nothing in this paragraph shall limit the right of any party at any time to exercise self-help remedies, foreclose against
collateral, or obtain provisional remedies. The private judge shall also determine all issues relating to the applicability, interpretation, and enforceability of this paragraph. 

 

	 	12.	 GENERAL PROVISIONS 

 12.1 Successors and Assigns. This Agreement binds and is for the benefit of the successors and permitted assigns of each party. No Borrower may assign this Agreement or any rights or
obligations under it without Collateral Agent’s prior written consent (which may be granted or withheld in Collateral Agent’s discretion, subject to Section 12.6). Lenders have the right, without the consent of or notice to Borrower,
to sell, transfer, assign, negotiate, or grant participation in (any such sale, transfer, assignment, negotiation, or grant of a participation, a “Lender Transfer”) all or any part of, or any interest in, Lenders’ obligations, rights,
and benefits under this Agreement and the other Loan Documents provided, however, that any such Lender Transfer (other than a sale or assignment to an Eligible Assignee) of its obligations, rights, and benefits under this Agreement and
the other Loan Documents shall require the prior written consent of the Required Lenders (such approved assignee, an “Approved Lender”). Borrower and Collateral Agent shall be entitled to continue to deal solely and directly with
such Lender in connection with the interests so assigned until Collateral Agent shall have received and accepted an effective assignment agreement in form satisfactory to Collateral Agent executed, delivered and fully completed by the applicable
parties thereto, and shall have received such other information regarding such Eligible Assignee or Approved Lender as Collateral Agent reasonably shall require. 

12.2 Indemnification. Each Borrower shall indemnify, defend and hold Collateral Agent and
Lenders and their respective directors, officers, employees, agents, attorneys, or any other Person affiliated with or representing Collateral Agent or Lenders (each, an “Indemnified Person”) harmless against: (a) all
obligations, demands, claims, and liabilities (collectively, “Claims”) asserted by any other party in connection with the transactions contemplated by the Loan Documents; and (b) all losses or Lenders’ Expenses incurred,
or paid by Indemnified Person from, following, or arising from transactions between Collateral Agent, and/or Lenders and any Borrower (including reasonable attorneys’ fees and expenses), except for Claims and/or losses directly caused by such
Indemnified Person’s gross negligence or willful misconduct. Each Borrower hereby further indemnifies, defends and holds each Indemnified Person harmless from and against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, claims, costs, expenses and disbursements of any kind or nature 

  
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whatsoever (including the fees and disbursements of counsel for such Indemnified Person) in connection with any investigative, response, remedial, administrative or judicial matter or proceeding,
whether or not such Indemnified Person shall be designated a party thereto and including any such proceeding initiated by or on behalf of such Borrower, and the reasonable expenses of investigation by engineers, environmental consultants and similar
technical personnel and any commission, fee or compensation claimed by any broker (other than any broker retained by Collateral Agent or Lenders) asserting any right to payment for the transactions contemplated hereby which may be imposed on,
incurred by or asserted against such Indemnified Person as a result of or in connection with the transactions contemplated hereby and the use or intended use of the proceeds of the loan proceeds. 

12.3 Time of Essence. Time is of the essence for the performance of all Obligations in this
Agreement. 
 12.4 Severability of Provisions. Each provision of this Agreement is
severable from every other provision in determining the enforceability of any provision. 

12.5 Correction of Loan Documents. Collateral Agent and Lenders may correct patent errors
and fill in any blanks in this Agreement and the other Loan Documents consistent with the agreement of the parties. 
 12.6 Amendments in Writing; Integration. (a) No amendment, modification, termination or waiver of any provision of this Agreement or any other Loan Document, no approval or
consent thereunder, or any consent to any departure by a Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by such Borrower, Collateral Agent and the Required Lenders provided that 

(i) no such amendment, waiver or other modification that would have the effect of increasing or
reducing a Lender’s Term Loan Commitment or Commitment Percentage shall be effective as to such Lender without such Lender’s written consent; 

(ii) no such amendment, waiver or modification that would affect the rights and duties of
Collateral Agent shall be effective without Collateral Agent’s written consent or signature; 
 (iii) no such amendment, waiver or other modification shall, unless signed by all Lenders directly affected thereby, (A) reduce the principal of, rate of interest on or any fees with respect
to the Term Loan or forgive any principal, interest (other than default interest) or fees (other than late charges) with respect to the Term Loan (B) postpone the date fixed for, or waive, any payment of principal of the Term Loan or of
interest on the Term Loan (other than default interest) or any fees provided for hereunder (other than late charges or for any termination of any commitment); (C) change the definition of the term “Required Lenders” or the percentage
of Lenders which shall be required for Lenders to take any action hereunder; (D) release all or substantially all or any material portion of the Collateral, authorize a Borrower to sell or otherwise dispose of all or substantially all or any
material portion of the Collateral or release any Guarantor of all or any portion of the Obligations or its guaranty obligations with respect thereto, except, in each case with respect to this clause (D), as otherwise may be expressly permitted
under this Agreement or the other Loan Documents (including in connection with any disposition permitted hereunder); (E) amend, waive or otherwise modify this Section 12.6 or the definitions of the terms used in this Section 12.6
insofar as the definitions affect the substance of this Section 12.6; (F) consent to the assignment, delegation or other transfer by a Borrower of any of its rights and obligations under any Loan Document or release a Borrower of its
payment obligations under any Loan Document, except, in each case with respect to this clause (F), pursuant to a merger or consolidation permitted pursuant to this Agreement; (G) amend any of the provisions of Section 9.4 or amend any of
the definitions Pro Rata Share, Term Loan Commitment, Commitment Percentage or that provide for Lenders to receive their Pro Rata Shares of any fees, payments, setoffs or proceeds of Collateral hereunder; (H) subordinate the Liens granted in
favor of Collateral Agent securing the Obligations; or (I) amend any of the provisions of Section 12.10. It is hereby understood and agreed that all Lenders shall be deemed directly affected by an amendment, waiver or other modification of
the type described in the preceding clauses (C), (D), (E), (F), (G) and (H) of the preceding sentence; 

  
 20 

 (iv) the provisions of the foregoing clauses (i),
(ii) and (iii) are subject to the provisions of any interlender or agency agreement among Lenders and Collateral Agent pursuant to which any Lender may agree to give its consent in connection with any amendment, waiver or modification of
the Loan Documents only in the event of the unanimous agreement of all Lenders. 
 (b)
Other than as expressly provided for in Section 12.6(a)(i)-(iii), Collateral Agent may, if requested by the Required Lenders, from time to time designate covenants in this Agreement less restrictive by notification to a representative
of a Borrower. 
 (c) This Agreement and the Loan Documents represent the entire agreement
about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Agreement and the Loan Documents merge
into this Agreement and the Loan Documents. 
 12.7 Counterparts. This Agreement
may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, is an original, and all taken together, constitute one Agreement. 

12.8 Survival. All covenants, representations and warranties made in this Agreement continue
in full force until this Agreement has terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) have been
satisfied. The obligation of Borrowers in Section 12.2 to indemnify each Lender and Collateral Agent, as well as the confidentiality provisions in Section 12.9 below, shall survive until the statute of limitations with respect to such
claim or cause of action shall have run. 
 12.9 Confidentiality. In handling any
confidential information of a Borrower, Lenders and Collateral Agent shall exercise the same degree of care that it exercises for their own proprietary information, but disclosure of information may be made: (a) confidentially to Lenders’
and Collateral Agent’s Subsidiaries or Affiliates; (b) confidentially to prospective transferees or purchasers of any interest in the Credit Extensions; (c) as required by law, regulation, subpoena, or other order; (d) in
connection with the securitization of certain of Lenders’ assets or a loan by a senior lender to any of Lenders; (e) to Lenders’ or Collateral Agent’s regulators or as otherwise required in connection with an examination or
audit; (f) as Collateral Agent considers appropriate in exercising remedies under the Loan Documents; and (g) to third party service providers of Lenders and/or Collateral Agent so long as such service providers have executed a
confidentiality agreement with Lenders and Collateral Agent with terms no less restrictive than those contained herein. Confidential information does not include information that either: (i) is in the public domain or in Lenders’ and/or
Collateral Agent’s possession when disclosed to Lenders and/or Collateral Agent, or becomes part of the public domain after disclosure to Lenders and/or Collateral Agent; or (ii) is disclosed to Lenders and/or Collateral Agent by a third
party, if Lenders and/or Collateral Agent does not know that the third party is prohibited from disclosing the information. Collateral Agent and Lenders may use non-scientific confidential information for any purpose, including, without limitation,
for the development of client databases, reporting purposes, and market analysis, so long as neither Collateral Agent nor any Lender discloses a Borrower’s identity or the identity of any person associated with Borrower unless otherwise
expressly permitted by this Agreement. The provisions of the immediately preceding sentence shall survive the termination of this Agreement. 
 12.10 Right of Set Off. Each Borrower grants to Collateral Agent and to each Lender, a lien, security interest and right of set off as security for all Obligations to Collateral Agent and
each Lender hereunder, whether now existing or hereafter arising upon and against all deposits, credits, collateral and property, now or hereafter in the possession, custody, safekeeping or control of Collateral Agent or Lenders or any entity under
the control of Collateral Agent or Lenders (including a Collateral Agent affiliate) or in transit to any of them. At any time after the occurrence and during the continuance of an Event of Default, without demand or notice, Collateral Agent or
Lenders may set off the same or any part thereof and apply the same to any liability or obligation of a Borrower even though unmatured and regardless of the adequacy of any other collateral securing the Obligations. ANY AND ALL RIGHTS TO REQUIRE
COLLATERAL AGENT TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER ARE HEREBY
KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED. 

  
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 12.11 Coborrowers. Only Ligand Pharmaceuticals
Incorporated may request Advances hereunder. Each Borrower appoints the other as agent for the other for all purposes hereunder, including with respect to requesting Advances hereunder. Each Borrower shall be jointly and severally obligated to
repay all Advances made hereunder, regardless of which Borrower actually receives said Advance, as if each Borrower hereunder directly received all Advances. Each Borrower waives (a) any suretyship defenses available to it under the Code
or any other applicable law, including, without limitation, the benefit of California Civil Code Section 2815 permitting revocation as to future transactions and the benefit of California Civil Code Sections 1432, 2809, 2810, 2819, 2839, 2845,
2847, 2848, 2849, 2850, and 2899 and 3433, and (b) any right to require Bank to: (i) proceed against any Borrower or any other person; (ii) proceed against or exhaust any security; or (iii) pursue any other remedy. Bank may
exercise or not exercise any right or remedy it has against any Borrower or any security it holds (including the right to foreclose by judicial or non-judicial sale) without affecting any Borrower’s liability. Notwithstanding any other
provision of this Agreement or other related document, each Borrower irrevocably waives all rights that it may have at law or in equity (including, without limitation, any law subrogating Borrower to the rights of Bank under this Agreement) to seek
contribution, indemnification or any other form of reimbursement from any other Borrower, or any other Person now or hereafter primarily or secondarily liable for any of the Obligations, for any payment made by Borrower with respect to the
Obligations in connection with this Agreement or otherwise and all rights that it might have to benefit from, or to participate in, any security for the Obligations as a result of any payment made by Borrower with respect to the Obligations in
connection with this Agreement or otherwise. Any agreement providing for indemnification, reimbursement or any other arrangement prohibited under this Section shall be null and void. If any payment is made to a Borrower in contravention of
this Section, such Borrower shall hold such payment in trust for Bank and such payment shall be promptly delivered to Bank for application to the Obligations, whether matured or unmatured. 

 

	 	13.	 COLLATERAL AGENT 

 13.1 Appointment and Authorization of Collateral Agent. Each Lender irrevocably appoints, designates and authorizes Collateral Agent to take such action on its behalf under the provisions of
this Agreement and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to it by the terms of this Agreement or any other Loan Document, together with such powers as are reasonably incidental
thereto. Notwithstanding any provision to the contrary contained elsewhere herein or in any other Loan Document, Collateral Agent shall not have any duties or responsibilities, except those expressly set forth herein, nor shall Collateral Agent have
or be deemed to have any fiduciary relationship with any Lender or participant, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist
against Collateral Agent. Without limiting the generality of the foregoing sentence, the use of the term “agent” herein and in the other Loan Documents with reference to Collateral Agent is not intended to connote any fiduciary or other
implied (or express) obligations arising under agency doctrine of any applicable law. Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent
contracting parties. 
 13.2 Delegation of Duties. Collateral Agent may execute any
of its duties under this Agreement or any other Loan Document by or through its, or its Affiliates’, agents, employees or attorneys-in-fact and shall be entitled to obtain and rely upon the advice of counsel and other consultants or experts
concerning all matters pertaining to such duties. Collateral Agent shall not be responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects in the absence of gross negligence or willful misconduct. 

13.3 Liability of Collateral Agent. Except as otherwise provided herein, no Collateral
Agent-Related Person shall (a) be liable for any action taken or omitted to be taken by any of them under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except for its own gross
negligence or willful misconduct in connection with its duties expressly set forth herein), or (b) be responsible in any manner to any Lender or participant for any recital, statement, representation or warranty made by Borrower or any officer
thereof, contained herein or in any other Loan Document, or in any certificate, report, statement or other document referred to or provided for in, or received by Collateral Agent under or in connection with, this Agreement or any other Loan
Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document, or for any failure of Borrower or any other party to any Loan Document to perform its obligations hereunder or
thereunder. No Collateral Agent-Related Person shall be under any obligation to any Lender or participant to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any
other Loan Document, or to inspect the properties, books or records of Borrower or any Affiliate thereof. 

  
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 13.4 Reliance by Collateral Agent. Collateral
Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, communication, signature, resolution, representation, notice, consent, certificate, affidavit, letter, facsimile, or telephone message, electronic mail
message, statement or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons, and upon advice and statements of legal counsel (including counsel to a Borrower),
independent accountants and other experts selected by Collateral Agent. Collateral Agent shall be fully justified in failing or refusing to take any action under any Loan Document unless it shall first receive such advice or concurrence of all
Lenders as it deems appropriate and, if it so requests, it shall first be indemnified to its satisfaction by Lenders against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action.
Collateral Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a request or consent of all Lenders and such request and any action taken or failure
to act pursuant thereto shall be binding upon all Lenders. 
 13.5 Notice of
Default. Collateral Agent shall not be deemed to have knowledge or notice of the occurrence of any default and/or Event of Default, unless Collateral Agent shall have received written notice from a Lender or a Borrower, describing such default
or Event of Default. Collateral Agent will notify Lenders of its receipt of any such notice. Collateral Agent shall take such action with respect to an Event of Default as may be directed in writing by the Required Lenders in accordance with Article
9(a); provided, however, that while an Event of Default has occurred and is continuing, Collateral Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Event of Default as
Collateral Agent shall deem advisable or in the best interest of Lenders, including without limitation, satisfaction of other security interests, liens or encumbrances on the Collateral not permitted under the Loan Documents, payment of taxes on
behalf of a Borrower, payments to landlords, warehouseman, bailees and other persons in possession of the Collateral and other actions to protect and safeguard the Collateral, and actions with respect to insurance claims for casualty events
affecting a Borrower and/or the Collateral. 
 13.6 Credit Decision; Disclosure of
Information by Collateral Agent. Each Lender acknowledges that no Collateral Agent-Related Person has made any representation or warranty to it, and that no act by Collateral Agent hereafter taken, including any consent to and acceptance of any
assignment or review of the affairs of Borrower or any Affiliate thereof, shall be deemed to constitute any representation or warranty by any Collateral Agent-Related Person to any Lender as to any matter, including whether Collateral Agent-Related
Persons have disclosed material information in their possession. Each Lender represents to Collateral Agent that it has, independently and without reliance upon any Collateral Agent-Related Person and based on such documents and information as it
has deemed appropriate, made its own appraisal of, and investigation into, the business, prospects, operations, property, financial and other condition and creditworthiness of a Borrower and its Subsidiaries, and all applicable bank or other
regulatory laws relating to the transactions contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to Borrower hereunder. Each Lender also represents that it will, independently and without reliance upon
any Collateral Agent-Related Person and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the
other Loan Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of a Borrower. Except for notices, reports and other
documents expressly required to be furnished to Lenders by Collateral Agent herein, Collateral Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, prospects, operations,
property, financial and other condition or creditworthiness of a Borrower or any of its Affiliates which may come into the possession of any Collateral Agent-Related Person. 

13.7 Indemnification of Collateral Agent. Whether or not the transactions contemplated
hereby are consummated, each Lender shall, severally and pro rata based on its respective Pro Rata Share, indemnify upon demand each Collateral Agent-Related Person (to the extent not reimbursed by or on behalf of a Borrower and without limiting the
obligation of Borrower to do so), and hold harmless each Collateral Agent-Related Person from and against any and all Claims (which shall not include legal expenses of Collateral Agent incurred in connection with the closing of the transactions
contemplated by this Agreement) incurred by it; provided, 

  
 23 

 
however, that no Lender shall be liable for the payment to any Collateral Agent-Related Person of any portion of such Indemnified Liabilities to the extent determined in a judgment by a court of
competent jurisdiction to have resulted from such Collateral Agent-Related Person’s own gross negligence or willful misconduct; provided, however, that no action taken in accordance with the directions of the Required Lenders shall be deemed to
constitute gross negligence or willful misconduct for purposes of this Section 13.7. Without limitation of the foregoing, each Lender shall, severally and pro rata based on its respective Pro Rata Share, reimburse Collateral Agent upon demand
for its ratable share of any costs or out-of-pocket expenses (including Lenders’ Expenses incurred after the closing of the transactions contemplated by this Agreement) incurred by Collateral Agent (in its capacity as Collateral Agent, and not
as a Lender) in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities
under, this Agreement, any other Loan Document, or any document contemplated by or referred to herein, to the extent that Collateral Agent is not reimbursed for such expenses by or on behalf of a Borrower. The undertaking in this Section 13.7
shall survive the payment in full of the Obligations, the termination of this Agreement and the resignation of Collateral Agent. 
 13.8 Collateral Agent in its Individual Capacity. With respect to its Credit Extensions, Oxford shall have the same rights and powers under this Agreement as any other Lender and may
exercise such rights and powers as though it were not Collateral Agent, and the terms “Lender” and “Lenders” include Oxford in its individual capacity. 

13.9 Successor Collateral Agent. Collateral Agent may resign as Collateral Agent upon ten
(10) days’ notice to Lenders. If Collateral Agent resigns under this Agreement, all Lenders shall appoint from among Lenders (or the affiliates thereof) a successor Collateral Agent for Lenders, which successor Collateral Agent shall
(unless an Event of Default has occurred and is continuing) be subject to the approval of Borrower (which approval shall not be unreasonably withheld or delayed). If no successor Collateral Agent is appointed prior to the effective date of the
resignation of Collateral Agent, Collateral Agent may appoint, after consulting with Lenders, a successor Collateral Agent from among Lenders (or the affiliates thereof). Upon the acceptance of its appointment as successor Collateral Agent
hereunder, the Person acting as such successor Collateral Agent shall succeed to all the rights, powers and duties of the retiring Collateral Agent and the respective term “Collateral Agent” means such successor Collateral Agent and the
retiring Collateral Agent’s appointment, powers and duties in such capacities shall be terminated without any other further act or deed on its behalf. After any retiring Collateral Agent’s resignation hereunder as Collateral Agent, the
provisions of this Article 13 and Sections 2.3(d) and 12.2 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Collateral Agent under this Agreement. If no successor Collateral Agent has accepted appointment
as Collateral Agent by the date ten (10) days following a retiring Collateral Agent’s notice of resignation, the retiring Collateral Agent’s resignation shall nevertheless thereupon become effective and Lenders shall perform all of
the duties of Collateral Agent hereunder until such time, if any, as Lenders appoint a successor agent as provided for above. 
 13.10 Collateral Agent May File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or
other judicial proceeding relative to a Borrower, Collateral Agent (irrespective of whether the principal of any Loan, shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether Collateral Agent
shall have made any demand on a Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise: 
 (a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Credit Extensions and all other Obligations that are owing and unpaid and to file
such other documents as may be necessary or advisable in order to have the claims of Lenders and Collateral Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of Lenders and Collateral Agent and their
respective agents and counsel and all other amounts due Lenders and Collateral Agent allowed in such judicial proceeding); and 
 (b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same; 

  
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 and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to Collateral Agent and, in the event that Collateral Agent shall consent to the making of such payments directly to Lenders, to pay to
Collateral Agent any amount due for the reasonable compensation, expenses, disbursements and advances of Collateral Agent and its agents and counsel, and any other amounts due Collateral Agent under Section 2.3(d). To the extent that Collateral
Agent fails timely to do so, each Lender may file a claim relating to such Lender’s claim. 

13.11 Collateral and Guaranty Matters. Lenders irrevocably authorize Collateral Agent, at
its option and in its discretion, to release any Guarantor and any Lien on any Collateral granted to or held by Collateral Agent under any Loan Document (i) upon the date that all Obligations due hereunder (other than inchoate indemnity
obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) have been fully and indefeasibly paid in full and no Term Loan Commitments or other obligations of any Lender to provide funds to a
Borrower under this Agreement remain outstanding, (ii) that is transferred or to be transferred as part of or in connection with any Transfer permitted hereunder or under any other Loan Document, or (iii) as approved in accordance with
Section 12.6. Upon request by Collateral Agent at any time, all Lenders will confirm in writing Collateral Agent’s authority to release its interest in particular types or items of Property, pursuant to this Section 13.11. 

13.12 Cooperation of Borrower. At the request of Collateral Agent, each Borrower shall
(i) execute any documents (including new Secured Promissory Notes) reasonably required to effectuate and acknowledge each assignment of a Term Loan Commitment or Loan to an assignee in accordance with Section 12.1, (ii) make such
Borrower’s management available to meet with Collateral Agent and prospective participants and assignees of Term Loan Commitments or Credit Extensions (which meetings shall be conducted no more often than twice every twelve months unless an
Event of Default has occurred and is continuing) and (iii) assist Collateral Agent or Lenders in the preparation of information relating to the financial affairs of such Borrower as any prospective participant or assignee of a Term Loan
Commitment or Term Loan reasonably may request. Subject to the provisions of Section 12.9 such Borrower authorizes each Lender to disclose confidentially to any prospective participant or assignee of a Term Loan Commitment, any and all
information in such Lender’s possession concerning such Borrower and its financial affairs which has been delivered to such Lender by or on behalf of such Borrower pursuant to this Agreement, or which has been delivered to such Lender by or on
behalf of Borrower in connection with such Lender’s credit evaluation of Borrower prior to entering into this Agreement. 
  

	 	14.	 DEFINITIONS 

 14.1 Definitions. As used in this Agreement, the following terms have the following meanings: 
 “Account” is any “account” as defined in the Code with such additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other
sums owing to Borrower. 
 “Account Debtor” is any “account debtor” as defined in the
Code with such additions to such term as may hereafter be made. 
 “Affiliate” of any Person is
a Person that owns or controls directly or indirectly the Person, any Person that controls or is controlled by or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners and, for any
Person that is a limited liability company, that Person’s managers and members. 

“Agreement” is defined in the preamble hereof. 

“Amortization Date” is specified in Section 2.2(b). 

“Anti-Terrorism Laws” means any laws relating to terrorism or money laundering, including Executive
Order No. 13224 (effective September 24, 2001), the USA PATRIOT Act, the laws comprising or implementing the Bank Secrecy Act, and the laws administered by OFAC. 

  
 25 

 “Approved Fund” means any (i) investment company,
fund, trust, securitization vehicle or conduit that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business or (ii) any Person
(other than a natural person) which temporarily warehouses loans for any Lender or any entity described in the preceding clause (i) and that, with respect to each of the preceding clauses (i) and (ii), is administered or managed by
(a) a Lender, (b) an Affiliate of a Lender or (c) a Person (other than a natural person) or an Affiliate of a Person (other than a natural person) that administers or manages a Lender. 

“Approved Lender” has the meaning given it in Section 12.1. 

“Basic Rate” means with respect to the Term Loan, the per annum rate of interest (based on a year of 360
days) equal to the greater of (a) 8.63% per annum and (b) the sum of (i) 8.34% plus (ii) the 3-month LIBOR rate reported in The Wall Street Journal three (3) Business Days prior to the Funding Date of the Term
Loan. 
 “Blocked Person” means any Person: (a) listed in the annex to, or is otherwise
subject to the provisions of, Executive Order No. 13224, (b) a Person owned or controlled by, or acting for or on behalf of, any Person that is listed in the annex to, or is otherwise subject to the provisions of, Executive Order
No. 13224, (c) a Person with which any Lender is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism Law, (d) a Person that commits, threatens or conspires to commit or supports “terrorism”
as defined in Executive Order No. 13224, or (e) a Person that is named a “specially designated national” or “blocked person” on the most current list published by OFAC or other similar list. 

“Borrower” is defined in the preamble hereof. 

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

“Business Day” is any day that is not a Saturday, Sunday or a day on which Collateral Agent is closed.

 “Cash Equivalents” are (a) marketable direct obligations issued or unconditionally
guaranteed by the United States or any agency or any State thereof having maturities of not more than two (2) years from the date of acquisition; (b) commercial paper maturing no more than one (1) year after its creation and having
the highest rating from either Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc., and (c) certificates of deposit maturing no more than two (2) years after issue provided that the account in which any
such certificate of deposit is maintained is subject to a Control Agreement in favor of Collateral Agent. For the avoidance of doubt, the direct purchase by Borrower, Guarantor, co-borrower, or any subsidiary of a Borrower of any Auction Rate
Securities, or purchasing participations in, or entering into any type of swap or other derivative transaction, or otherwise holding or engaging in any ownership interest in any type of Auction Rate Security by Borrower, Guarantor, co-borrower, or
any subsidiary of a Borrower shall be conclusively determined by Lenders as an ineligible Cash Equivalent, and any such transaction shall expressly violate each other provision of this agreement governing Permitted Investments. Notwithstanding the
foregoing, Cash Equivalents does not include and each Borrower and its Subsidiaries are prohibited from purchasing, purchasing participations in, entering into any type of swap or other equivalent derivative transaction, or otherwise holding or
engaging in any ownership interest in any type of debt instrument, including, without limitation, any corporate or municipal bonds with a long-term nominal maturity for which the interest rate is reset through a dutch auction and more commonly
referred to as an auction rate security. 
 “Claims” are defined in Section 12.2.

 “Code” is the Uniform Commercial Code, as the same may, from time to time, be enacted and in
effect in the State of California; provided, that, to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined differently in different Articles or Divisions of the Code, the definition of such term
contained in Article or Division 9 shall govern; provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, or priority of, or remedies with respect to, Collateral Agent’s Lien
on any Collateral is governed by the Uniform Commercial Code in effect in a jurisdiction other than 

  
 26 

 
the State of California, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the provisions thereof
relating to such attachment, perfection, priority, or remedies and for purposes of definitions relating to such provisions. 
 “Collateral” is any and all properties, rights and assets of a Borrower described on Exhibit A and any and all other properties, rights and assets of such Borrower granted
by such Borrower to Collateral Agent for the ratable benefit of Lenders or arising under the Code or other applicable law, now, or in the future. 
 “Collateral Account” is any Deposit Account, Securities Account, or Commodity Account. 
 “Collateral Agent” means, Oxford, not in its individual capacity, but solely in its capacity as agent on behalf of and for the benefit of Lenders. 

“Collateral Agent-Related Person” means the Collateral Agent, together with its Affiliates, and the
officers, directors, employees, agents, advisors, auditors and attorneys-in-fact of such Persons; provided, however, that no Collateral Agent-Related Person shall be an Affiliate of Borrower or Guarantor . 

“Commitment Percentage” is set forth in Schedule 1.1, as amended from time to time. 

“Commodity Account” is any “commodity account” as defined in the Code with such additions to
such term as may hereafter be made. 
 “Communication” is defined in Section 10.

 “Compliance Certificate” is that certain certificate in the form attached hereto as
Exhibit C. 
 “Contingent Obligation” is, for any Person, any direct or indirect
liability, contingent or not, of that Person for (a) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly guaranteed, endorsed, co-made, discounted or sold with recourse
by that Person, or for which that Person is directly or indirectly liable; (b) any obligations for undrawn letters of credit for the account of that Person; and (c) all obligations from any interest rate, currency or commodity swap
agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent Obligation” does not
include endorsements in the ordinary course of business. The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably
anticipated liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement. 

“Control Agreement” is any control agreement entered into among the depository institution at which a
Borrower or Guarantor maintains a Deposit Account or the securities intermediary or commodity intermediary at which Borrower or Guarantor maintains a Securities Account or a Commodity Account, Borrower or Guarantor, and Collateral Agent pursuant to
which Collateral Agent obtains control (within the meaning of the Code) for the benefit of Lenders over such Deposit Account, Securities Account, or Commodity Account. 

“Credit Extension” is the Term Loan or any other extension of credit by Collateral Agent or Lenders for
Borrower’s benefit. 
 “CyDex Acquisition” is the acquisition by Borrower of the capital
stock and/or assets of CyDex Pharmaceuticals, Inc. 
 “Default Rate” is defined in Section
2.3(b). 
 “Deposit Account” is any “deposit account” as defined in the Code with
such additions to such term as may hereafter be made. 

  
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 “Designated Deposit Account” is Borrower’s deposit
account, account number             , maintained with             . 

“Dollars,” “dollars” and “$” each mean lawful money of the
United States. 
 “Effective Date” is defined in the preamble of this Agreement. 

“Eligible Assignee” means (i) a Lender, (ii) an Affiliate of a Lender, (iii) an Approved
Fund and (iv) any commercial bank, savings and loan association or savings bank or any other entity which is an “accredited investor” (as defined in Regulation D under the Securities Act of 1933, as amended) and which extends credit
or buys loans as one of its businesses, including insurance companies, mutual funds, lease financing companies and commercial finance companies, in each case, which either (A) has a rating of BBB or higher from Standard & Poor’s
Rating Group and a rating of Baa2 or higher from Moody’s Investors Service, Inc. at the date that it becomes a Lender or (B) has total assets in excess of $5,000,000,000, and in each case of clauses (i) through (iv), which, through
its applicable lending office, is capable of lending to Borrower without the imposition of any withholding or similar taxes; provided that notwithstanding the foregoing, “Eligible Assignee” shall not include (i) Borrower or any of
Borrower’s Affiliates or Subsidiaries or (ii) unless Collateral Agent has declared all amounts outstanding under this Agreement immediately due and payable, a direct competitor of Borrower or Guarantor or a vulture hedge fund, each as
determined by Collateral Agent. Notwithstanding the foregoing, in connection with assignments by a Lender due to a forced divestiture at the request of any regulatory agency, the restrictions set forth herein shall not apply and Eligible Assignee
shall mean any Person or party. 
 “Equipment” is all “equipment” as defined in the
Code with such additions to such term as may hereafter be made, and includes without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing. 

“ERISA” is the Employee Retirement Income Security Act of 1974, as amended, and its regulations.

 “Event of Default” is defined in Section 8. 

“Final Payment” is a payment (in addition to and not a substitution for the regular monthly payments of
principal plus accrued interest) due on the earliest to occur of (a) the Maturity Date, or (b) the acceleration of the Term Loan, or (c) the prepayment of the Term Loan pursuant to Section 2.2(c) or 2.2(d), equal to the original
principal amount of the Term Loan multiplied by the Final Payment Percentage, payable to Lenders in accordance with their respective Pro Rata Shares. 
 “Final Payment Percentage” is six percent (6.0%). 

“Funding Date” is any date on which a Credit Extension is made to or on account of a Borrower which
shall be a Business Day. 
 “GAAP” is generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other Person
as may be approved by a significant segment of the accounting profession in the United States, which are applicable to the circumstances as of the date of determination. 

“General Intangibles” is all “general intangibles” as defined in the Code in effect on the
date hereof with such additions to such term as may hereafter be made, and includes without limitation, all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work,
whether published or unpublished, any patents, trademarks, service marks and, to the extent permitted under applicable law, any applications therefor, whether registered or not, any trade secret rights, including any rights to unpatented inventions,
payment intangibles, royalties, contract rights, goodwill, franchise agreements, purchase orders, customer lists, route lists, telephone numbers, domain names, claims, income and other tax refunds, security and other deposits, options to purchase or
sell real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property damage, and business interruption insurance),
payments of insurance and rights to payment of any kind. 

  
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 “Governmental Approval” is any consent, authorization,
approval, order, license, franchise, permit, certificate, accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority. 

“Governmental Authority” is any nation or government, any state or other political subdivision thereof,
any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any
self-regulatory organization. 
 “Guarantor” is each Person who guarantees satisfaction of the
Obligations. 
 “Indebtedness” is (a) indebtedness for borrowed money or the deferred
price of property or services, such as reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations, and
(d) Contingent Obligations. 
 “Indemnified Person” is defined in Section 12.2.

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

“Intellectual Property” consists of the copyright rights, copyright applications, copyright
registrations and like protections in each work of authorship and derivative work, whether published or unpublished, any patents, patent applications and like protections, including improvements, divisions, continuations, renewals, reissues,
extensions, and continuations-in-part of the same, trademarks, trade names, service marks, mask works, rights of use of any name, domain names, or any other similar rights, any applications therefor, whether registered or not, and the goodwill of
the business of any Person connected with and symbolized thereby, know-how, operating manuals, trade secret rights, clinical and non-clinical data, rights to unpatented inventions, and any claims for damage by way of any past, present, or future
infringement of any of the foregoing. 
 “Inventory” is all “inventory” as defined in
the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products,
including without limitation such inventory as is temporarily out of any Person’s custody or possession or in transit and including any returned goods and any documents of title representing any of the above. 

“Investment” is any beneficial ownership interest in any Person (including stock, partnership interest
or other securities), and any loan, advance or capital contribution to any Person. 
 “Key
Person” means each of Borrower’s (i) Chief Executive Officer, who is John L. Higgins as of the Effective Date, and (ii) Chief Financial Officer, who is John P. Sharp as of the Effective Date. 

“Lender” is any one of Lenders. 

“Lenders” shall mean the Persons identified on Schedule 1.1 hereto and each assignee that becomes a
party to this Agreement pursuant to Section 12.1. 
 “Lenders’ Expenses” are all
audit fees and expenses, costs, and expenses (including reasonable attorneys’ fees and expenses, as well as appraisal fees, fees incurred on account of lien searches, inspection fees, and filing fees) for preparing, amending, negotiating,
administering, defending and enforcing the Loan Documents (including, without limitation, those incurred in connection with appeals or Insolvency Proceedings) or otherwise incurred by Collateral Agent and/or Lenders in connection with the Loan
Documents. 

  
 29 

 “Lien” is a claim, mortgage, deed of trust, levy, charge,
pledge, security interest, or other encumbrance of any kind, whether voluntarily incurred or arising by operation of law or otherwise against any property. 
 “Loan Documents” are, collectively, this Agreement, the Perfection Certificate, each Compliance Certificate, any subordination agreements, any note, or notes or guaranties executed by
Borrower, and any other present or future agreement between Borrower and/or Guarantor for the benefit of Lenders and Collateral Agent in connection with this Agreement, all as amended, restated, or otherwise modified. 

“Material Adverse Change” is (a) a material impairment in the perfection or priority of Collateral
Agent’s Lien in the Collateral or in the value of such Collateral; (b) a material adverse change in the business, operations, or condition (financial or otherwise) or prospects of Borrower or Guarantor; or (c) a material impairment of
the prospect of repayment of any portion of the Obligations. 
 “Maturity Date” is
August 1, 2014. 
 “Obligations” are Borrower’s obligation to pay when due any debts,
principal, interest, Lenders’ Expenses, the Prepayment Fee, the Final Payment, and other amounts Borrower owes Lenders now or later, whether under this Agreement, the Loan Documents, or otherwise, including, without limitation, all obligations
relating to letters of credit (including reimbursement obligations for drawn and undrawn letters of credit), cash management services, and foreign exchange contracts, if any, and including interest accruing after Insolvency Proceedings begin
(whether or not allowed) and debts, liabilities, or obligations of Borrower assigned to Lenders and/or Collateral Agent, and the performance of Borrower’s duties under the Loan Documents. 

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

“OFAC Lists” are, collectively, the Specially Designated Nationals and Blocked Persons List maintained
by OFAC pursuant to Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept. 25, 2001) and/or any other list of terrorists or other restricted Persons maintained pursuant to any of the rules and regulations of OFAC or pursuant to any other
applicable Executive Orders. 
 “Operating Documents” are, for any Person, such Person’s
formation documents, as certified by the Secretary of State of such Person’s jurisdiction of organization on a date that is no earlier than 30 days prior to the Effective Date, and, (a) if such Person is a corporation, its bylaws in
current form, (b) if such Person is a limited liability company, its limited liability company agreement (or similar agreement), and (c) if such Person is a partnership, its partnership agreement (or similar agreement), each of the
foregoing with all current amendments or modifications thereto. 
 “Payment/Advance Form” is
that certain form attached hereto as Exhibit B. 
 “Payment
Date” is the first (1st) calendar day of
each calendar month. 
 “Perfection Certificate” is defined in Section 5.1. 

“Permitted Indebtedness” is: 

(a) Borrower’s and Guarantor’s Indebtedness to Lenders and Collateral Agent under this Agreement and the
other Loan Documents; 
 (b) Indebtedness existing on the Effective Date and shown on the Perfection
Certificate; 
 (c) Subordinated Debt; 

(d) unsecured Indebtedness to trade creditors incurred in the ordinary course of business; 

  
 30 

 (e) Indebtedness secured by liens specified in clause (c) of the
definition of “Permitted Liens” provided such Indebtedness shall not exceed One Hundred Thousand Dollars ($100,000) in the aggregate principal amount outstanding at any one time; 

(f) Indebtedness of up to Five Million Dollars ($5,000,000) secured exclusively by a security interest in a
Deposit Account held with, or Certificate of Deposit issued by, the holder of such Indebtedness, and on terms reasonably acceptable to Agent; 
 (g) Indebtedness incurred as a result of endorsing negotiable instruments received in the ordinary course of Borrower’s business; and 

(h) extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness
(a) through (f) above, provided that the principal amount thereof is not increased or the terms thereof are not modified to impose materially more burdensome terms upon Borrower, Guarantor or its Subsidiary, as the case may be. 

“Permitted Investments” are: 

(a) Investments shown on the Perfection Certificate and existing on the Effective Date; 

(b) Investments in cash and Cash Equivalents; and 

(c) Investments in the stock of CyDex Pharmaceuticals, Inc. and any stock or equity in any company acquired in a
future permitted acquisition pursuant to Section 7.3. 
 “Permitted Liens” are:

 (a) Liens existing on the Effective Date and shown on the Perfection Certificate or arising under this
Agreement and the other Loan Documents; 
 (b) Liens for taxes, fees, assessments or other government
charges or levies, either not delinquent or being contested in good faith and for which Borrower or Guarantor maintains adequate reserves on its Books, provided that no notice of any such Lien has been filed or recorded under the Internal Revenue
Code of 1986, as amended , and the Treasury Regulations adopted thereunder; 
 (c) purchase money Liens
(i) on Equipment or other assets subject to capital leases acquired or held by Borrower or Guarantor incurred for financing the acquisition of the Equipment or such assets subject to capital leases, or (ii) on existing Equipment or such
assets subject to capital leases when acquired, in each case if the Lien is confined to the property and improvements and the proceeds of the Equipment or other assets subject to capital leases; provided that such Liens under this clause
(c) (A) may have priority over liens granted to Collateral Agent hereunder to the extent provided under the Code so long as the Indebtedness secured by the Liens remain outstanding and (B) may secure Indebtedness of no more than One
Hundred Thousand Dollars ($100,000) in the aggregate principal amount outstanding at any one time; 
 (d)
statutory Liens securing claims or demands of materialmen, mechanics, carriers, warehousemen, landlords and other Persons imposed without action of such parties, provided they have no priority over any of Collateral Agent’s Lien and the
aggregate amount of the obligations secured by such Liens does not any time exceed Twenty-Five Thousand Dollars ($25,000); 
 (e) leases or subleases of real property granted in the ordinary course of business, and leases, subleases, non-exclusive licenses or sublicenses of property (other than real property or
Intellectual Property) granted in the ordinary course of Borrower’s or Guarantor’s business, if the leases, subleases, licenses and sublicenses do not prohibit granting Collateral Agent a security interest; and 

  
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 (f) banker’s liens, rights of setoff and Liens in favor of
financial institutions incurred made in the ordinary course of business arising in connection with Borrower’s or Guarantor’s deposit accounts or securities accounts held at such institutions to secure solely payment of fees and similar
costs and expenses and provided such accounts are maintained in compliance with Section 6.6(b) hereof; 

(g) Liens to secure payment of workers’ compensation, employment insurance, social security and other like
obligations incurred in the ordinary course of business (other than Liens imposed by ERISA); 
 (h) Liens
arising from judgments, decrees or attachments in circumstances not constituting an Event of Default under Section 8.4 or 8.7; 
 (i) licenses of Intellectual Property permitted by Section 7.1 hereof; 
 (j) Lien on the Deposit Account and/or Certificate of Deposit securing the Indebtedness described in clause (f) of the defined term “Permitted Indebtedness”, but only to the extent
of such Permitted Indebtedness; and 
 (k) Liens incurred in the extension, renewal or refinancing of the
indebtedness secured by Liens described in (a), (c) and (j) above, but any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the Indebtedness may not
increase. 
 “Person” is any individual, sole proprietorship, partnership, limited liability
company, joint venture, company, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency. 

“Prepayment Fee” means with respect to the Term Loan subject to prepayment prior to the Maturity Date,
whether by mandatory or voluntary prepayment, acceleration or otherwise, an additional fee payable to Lenders in amount equal to: 
 (a) for a prepayment made on or after the Funding Date of the Term Loan through and including the first anniversary of the Funding Date of the Term Loan, two percent (2.0%) of the principal
amount of the Term Loan prepaid; and 
 (b) for a prepayment made after the date which is after the first
anniversary of the Funding Date of the Term Loan, one percent (1.0%) of the principal amount of the Term Loan prepaid. 
 “Pro Rata Share” means, as of any date of determination, with respect to each Lender, a percentage (expressed as a decimal, rounded to the ninth decimal place) determined by dividing the
outstanding principal amount of the Term Loan held by such Lender by the aggregate outstanding principal amount of the Term Loan. 
 “Registered Organization” is any “registered organization” as defined in the Code with such additions to such term as may hereafter be made 

“Required Lenders” means (i) for so long as all of the Persons that are Lenders on the Effective
Date (each an “Original Lender”) have not assigned or transferred any of their interests in their respective Term Loan, Lenders holding one hundred percent (100%) of the aggregate outstanding principal balance of the Term Loan,
or (ii) at any time from and after any Original Lender has assigned or transferred any interest in its Term Loan, Lenders holding, sixty-six percent (66%) or more of the aggregate outstanding principal balance of the Term Loan,
plus, in respect of this clause (ii), (A) each Original Lender that has not assigned or transferred any portion of its respective Term Loan and (B) each assignee of an Original Lender provided such assignee was assigned or
transferred and continues to hold 100% of the assigning Original Lender’s interest in the Term Loan (in each case in respect of clauses (A) and (B) of this clause (ii), whether or not such Lender is included within Lenders holding
sixty-six percent (66%) of the Terms Loan); provided, however, that notwithstanding the foregoing, for purposes of Section 9.1(b) hereof, “Required Lenders” means (i) for so long as all Original Lenders retain
100% of their interests in their respective Term Loan, Lenders holding one hundred percent (100%) of the aggregate outstanding principal balance of the Term Loan, or (ii) at any time from and after any Original Lender has assigned or
transferred any interest in 

  
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its Term Loan, Lenders holding, sixty-six percent (66%) or more of the aggregate outstanding principal balance of the Term Loan, plus, in respect of this clause (ii), each Original Lender
that has not assigned or transferred any portion of its respective Term Loan (in each case in respect of this clause (ii), whether or not such Original Lender is included within Lenders holding sixty-six percent (66%) of the Term Loan). For
purposes of this definition only, a Lender shall be deemed to include itself, and any Lender that is an Affiliate or Approved Fund of such Lender. 
 “Requirement of Law” is as to any Person, the organizational or governing documents of such Person, and any law (statutory or common), treaty, rule or regulation or determination of an
arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject. 

“Responsible Officer” is any of the President, Chief Executive Officer, or Chief Financial Officer of a
Borrower. 
 “SEC Filing” is a report filed by Ligand Pharmaceuticals Incorporated with the
Securities and Exchange Commission on any of Forms 8-K, 10-Q or 10-K. 
 “Secured Promissory
Note” is defined in Section 2.4. 
 “Secured Promissory Note Record” is a record
maintained by each Lender with respect to the outstanding Obligations owed by Borrower to Lender and credits made thereto. 
 “Securities Account” is any “securities account” as defined in the Code with such additions to such term as may hereafter be made. 

“Subordinated Debt” is indebtedness incurred by a Borrower subordinated to all of Borrower’s now or
hereafter incurred Indebtedness to Lenders (pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Collateral Agent and Lenders executed among Collateral Agent, Borrower, and the other creditor),
on terms acceptable to Collateral Agent and Lenders. 
 “Subsidiary” means, with respect to any
Person, any Person of which more than 50.0% of the voting stock or other equity interests (in the case of Persons other than corporations) is owned or controlled, directly or indirectly, by such Person or one or more of Affiliates of such Person.

 “Term Loan” is the cash advance made pursuant to Section 2.2(a) hereof. 

“Term Loan Commitment” means, for any Lender, the obligation of such Lender to make Term Loan, up to the
principal amount shown on Schedule 1.1. “Term Loan Commitments” means the aggregate amount of such commitments of all Lenders. 
 [Signature Page to Follow] 

  
 33 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed as of the Effective Date. 
  

			
	BORROWERS
	
	LIGAND PHARMACEUTICALS INCORPORATED
		
	 By
	 	 /s/ John L.Higgins

	 Name:
	 	 John L.Higgins

	 Title:
	 	 President and Chief Executive Officer

	
	SERAGEN, INC.
		
	 By
	 	 /s/ John L.Higgins

	 Name:
	 	 John L.Higgins

	 Title:
	 	 Chief Executive Officer

	
	METABASIS THERAPEUTICS, INC.
		
	 By
	 	 /s/ John L.Higgins

	 Name:
	 	 John L.Higgins

	 Title:
	 	 President and Chief Executive Officer

	
	PHARMACOPEIA, LLC
	
	By: Ligand Pharmaceuticals Incorporated,
	Its Sole and Managing Member
		
	 By
	 	 /s/ John L.Higgins

	 Name:
	 	 John L.Higgins

	 Title:
	 	 President and Chief Executive Officer

	
	NEUROGEN CORPORATION
		
	 By
	 	 /s/ John L.Higgins

	 Name:
	 	 John L.Higgins

	 Title:
	 	 President and Chief Executive Officer

	
	ALLERGAN LIGAND RETINOID THERAPEUTICS, INC.
		
	 By
	 	 /s/ John L.Higgins

	 Name:
	 	 John L.Higgins

	 Title:
	 	 Chief Executive Officer

  
 [Signature
Page to Loan and Security Agreement] 

			
	LIGAND JVR, INC.
		
	 By
	 	 /s/ John L.Higgins

	 Name:
	 	 John L.Higgins

	 Title:
	 	 Chief Executive Officer

	
	COLLATERAL AGENT AND LENDER:
	
	OXFORD FINANCE CORPORATION, as Collateral Agent and as a Lender
		
	 By
	 	 /s/ John G. Henderson

	 Name:
	 	 John G. Henderson

	 Title:
	 	 Vice President and General Counsel

  
 [Signature
Page to Loan and Security Agreement] 

 SCHEDULE 1.1 

LENDERS AND COMMITMENTS 
 Term Loan 
  

									
	 Lender
	  	Term Loan Commitment	 	  	Commitment Percentage	 
	 Oxford Finance Corporation
	  	$	20,000,000	  	  	 	100.00	% 
	 TOTAL
	  	$	20,000,000	  	  	 	100.00	% 

  
 1. 

 EXHIBIT A 

All goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases,
license agreements, franchise agreements, General Intangibles (except as provided below), commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts, all
certificates of deposit, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter
acquired, wherever located; and 
 All Borrower’s Books relating to the foregoing, and any and all claims, rights and
interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing. 

The Collateral does not include Certificate of Deposit, account No. 60100378 maintained with Square 1 Bank (the “Cash
Collateral Account”) at any time that (i) obligations of Borrower owing to Square 1 Bank in connection with the loan facility secured by the Cash Collateral Account are outstanding or (ii) Square 1 Bank has any obligation to make any
credit extensions to Borrower under such loan facility. The Collateral includes the Cash Collateral Account at all other times. 

Notwithstanding the foregoing, the Collateral does not include any of the following, whether now owned or hereafter acquired except to
the extent that it is necessary under applicable law to have a security interest in any of the following in order to have a perfected lien and security interest in and to the “IP Proceeds” defined below: any copyright rights, copyright
applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished; any patents, patent applications and like protections, including improvements, divisions, continuations,
renewals, reissues, extensions, and continuations-in-part of the same; trademarks, trade names, service marks, mask works, rights of use of any name or domain names and, to the extent permitted under applicable law, any applications therefor,
whether registered or not; and the goodwill of the business of Borrower connected with and symbolized by such trademarks and service marks, know-how, operating manuals, trade secret rights, clinical and non-clinical data, rights to unpatented
inventions; provided, however, the Collateral shall include all Accounts, license and royalty fees and other revenues, proceeds, or income arising out of or relating to any of the foregoing and any claims for damage by way of any past, present, or
future infringement of any of the foregoing (collectively, the “IP Proceeds”). 
 Pursuant to the terms of a certain
negative pledge arrangement with Lender, Borrower has agreed not to encumber any of its copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or
unpublished, any patents, patent applications and like protections, including improvements, divisions, continuations, renewals, reissues, extensions, and continuations-in-part of the same, trademarks, service marks and, to the extent permitted under
applicable law, any applications therefor, whether registered or not, and the goodwill of the business of Borrower connected with and symbolized thereby, know-how, operating manuals, trade secret rights, rights to unpatented inventions, and any
claims for damage by way of any past, present, or future infringement of any of the foregoing, without Lender’s prior written consent. For avoidance of doubt: the foregoing sentence is subject to certain exceptions set forth in such negative
pledge arrangement with Lender, including without limitation the granting of non-exclusive licenses (or exclusive field-of-use licenses) for the use of the Intellectual Property in the ordinary course of business in connection with joint ventures
and corporate collaborations to the extent permitted, and subject to the terms of, such arrangement. 

  
 2. 

 EXHIBIT B 
 Loan Payment/Advance Request Form 
 DISBURSEMENT LETTER

 The undersigned, being the duly elected and acting of LIGAND PHARMACEUTICALS INCORPORATED (“Borrower”),
certifies on behalf of all Borrowers to OXFORD FINANCE CORPORATION, (“Oxford” and “Lender”), as collateral agent (the “Collateral Agent”) in connection with that certain Loan and Security
Agreement dated on or about the date hereof by and between Borrowers and Collateral Agent (the “Loan Agreement”; with other capitalized terms used below having the meanings ascribed thereto in the Loan Agreement) that: 

1. The representations and warranties made by each Borrower in Section 5 of the Loan Agreement and in the
other Loan Documents are true and correct in all material respects as of the date hereof. 
 2. No event
or condition has occurred that would constitute an Event of Default under the Loan Agreement or any other Loan Document. 
 3. Borrowers are in compliance with the covenants and requirements contained in Sections 4, 6 and 7 of the Loan Agreement. 

4. All conditions referred to in Section 3 of the Loan Agreement to the making of the Loan to be made on or
about the date hereof have been satisfied or waived by Collateral Agent. 
 5. No Material Adverse Change
has occurred. 
 6. The undersigned is a Responsible Officer. 

7. The proceeds for the Term Loan shall be disbursed as follows: 

 

					
	Disbursement from Collateral Agent:	  			
	 Loan Amount
	  	$	    	  
	 Plus:
	  			
	 —Deposit Received
	  	($	    	) 
	Less:	  			
	 —Existing Debt Payoff to be remitted
to            
	  			
	 per the Payoff Letter dated             
	  	($	    	) 
	 —Lender’s Legal Fees
	  	($	    	) 
	 — Facility Fee
	  	($	    	) 
	 Net Proceeds due from Collateral Agent:
	  	$	    	  

  
 3. 

 The aggregate net proceeds of the Term Loan in the amount of
$            shall be transferred to Borrower’s account as follows: 
  

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

  

			
	BORROWER:
	
	LIGAND PHARMACEUTICALS INCORPORATED
		
	 By
	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	AS COLLATERAL AGENT AND AS A LENDER:
	
	OXFORD FINANCE CORPORATION
		
	 By
	 	 
	 Name:
	 	 
	 Title:
	 	 

  
 4. 

 EXHIBIT C - COMPLIANCE CERTIFICATE 

TO: Oxford Finance Corporation, as Collateral Agent 
 FROM: LIGAND PHARMACEUTICALS INCORPORATED 
 The undersigned
authorized officer of Ligand Pharmaceuticals Incorporated (“Borrower”) on behalf of itself and all Borrowers, certifies that in accordance with the terms and conditions of the Loan and Security Agreement among Borrowers, Collateral Agent,
and Lenders (the “Loan Agreement”), 
 (i) Borrowers are in compliance for the period ending
            with all provisions of the Loan Agreement except as noted below; 
 (ii) There are no Events of Default, except as noted below; 

(iii) Except as noted below, all representations and warranties contained in the Loan Agreement are true and correct in
all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and
provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date. 

(iv) Each Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and each
Borrower has timely paid all foreign, federal, state, and local taxes, assessments, deposits and contributions owed by such Borrower except as otherwise permitted pursuant to the terms of Section 5.8 of the Agreement; 

(v) No Liens have been levied or claims made against a Borrower or any of its Subsidiaries relating to unpaid employee
payroll or benefits of which a Borrower has not previously provided written notification to Collateral Agent 

Attached are the required documents, if any, supporting our certification(s). The Officer on behalf of Borrower further
certifies that the attached financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and are consistently applied from one period to the next except as explained in an accompanying letter or footnotes and
except, in the case of unaudited financial statements, for the absence of footnotes and subject to year-end audit adjustments as to the interim financial statements. Capitalized terms used but not otherwise defined herein shall have the meanings
given them in the Agreement. 
  

  
 5. 

 Please indicate compliance status since the last Compliance Certificate by circling Yes,
No, or N/A under “Complies” column. 
  

																			
	 Reporting Covenant
	  	 Requirement
	  	 	 	  	Complies	 
	 Financial statements
	  	 Monthly within 30 days
	  				  	 	Yes	  	  	 	No	  	  	 	N/A	  
						
	 Annual (CPA Audited) statements
	  	 Within 120 days after Fiscal Year End
	  				  	 	Yes	  	  	 	No	  	  	 	N/A	  
						
	 Annual Financial Projections/Budget
 (prepared on a monthly basis)
	  	 Annually (1/31) and when Board
 approves revisions
	  				  	 	Yes	  	  	 	No	  	  	 	N/A	  
						
	 8-K, 10-K and 10-Q Filings
	  	 If applicable
	  				  	 	Yes	  	  	 	No	  	  	 	N/A	  
						
	 Total amount of Borrower’s cash and cash
 equivalents at the last day of the
 measurement period
	  		  	 	
$                        
	  	  				  				  			
		  	 Month
	  	 	QTD	  	  	 	YTD	  	  				  			
					
		  		  	 	
$                        
	  	  				  			
		
	Deposit and Securities Accounts	  	(Please list all accounts; attach separate sheet if additional space needed)	  
				
	 Bank
	  	 Account Number
	  	New Account?	 	  	Acct Control Agmt
in
place?	 
						
		  		  	 	Yes	  	  	 	No	  	  	 	Yes	  	  	 	No	  
						
		  		  	 	Yes	  	  	 	No	  	  	 	Yes	  	  	 	No	  
						
		  		  	 	Yes	  	  	 	No	  	  	 	Yes	  	  	 	No	  
						
		  		  	 	Yes	  	  	 	No	  	  	 	Yes	  	  	 	No	  
						
		  		  	 	Yes	  	  	 	No	  	  	 	Yes	  	  	 	No	  
						
		  		  	 	Yes	  	  	 	No	  	  	 	Yes	  	  	 	No	  
						
	Financial Covenants	  	Requirement	  	 	Actual	  	  				  	 	Compliance	  	  			
						
	 None
	  		  				  				  				  			
						
	Other Matters	  		  				  				  				  			
					
	 Have there been any changes in management since the last Compliance Certificate?
	  				  	 	Yes	  	  	 	No	  	  			
				
	 Have there been any transfers/sales/disposals/retirement of Collateral or IP prohibited by the
Agreement?
	    
	  	 	Yes	  	  	 	No	  	  			
				
	 Have there been any new or pending claims or causes of action against Borrower that involve more than
$100,000?
	    
	  	 	Yes	  	  	 	No	  	  			
				
	Exceptions	  	  				  				  			
	
	 Please explain any exceptions with respect to the certification above: (If no exceptions exist, state “No exceptions.” Attach separate
sheet if additional space needed.)
	   
	
	 	 
	
	 	 
	
	 	 

  
 6. 

									
	 LIGAND PHARMACEUTICALS INCORPORATED
	 		 	LENDERS USE ONLY
				
	 By:
	 	 	 		 	 Received by:                 Verified
by:                

	 Name:
	 	 	 		 	Date:                           
  Date:                             
	 Title:
	 	 	 		 	
				
		 		 		 	 Compliance
Status                        Yes    No    

  
 7. 

 EXHIBIT D 

SECURED PROMISSORY NOTE 
  

			
	$20,000,000	  	January 24, 2011

 FOR VALUE RECEIVED, LIGAND PHARMACEUTICALS INCORPORATED , a Delaware corporation, and each of the other Persons signing below as a Borrower (individually, a “Borrower” and, collectively,
the “Borrowers”) jointly and severally PROMISE TO PAY to the order of OXFORD FINANCE CORPORATION (“Lender”) the principal amount of TWENTY MILLION DOLLARS ($20,000,000) or such lesser amount as shall equal
the outstanding principal balance of the Term Loan made to Borrowers by Lender, plus interest on the aggregate unpaid principal amount of Term Loan, at the rates and in accordance with the terms of the Loan and Security Agreement dated as of
January 24, 2011 by and among Borrowers, Oxford Finance Corporation, as Collateral Agent and as a Lender, and Lenders from time to time party thereto (as amended, restated, supplemented or otherwise modified from time to time, the “Loan
Agreement”). If not sooner paid, the entire principal amount and all accrued and unpaid interest hereunder shall be due and payable on the Maturity Date as set forth in the Loan Agreement. Any capitalized term not otherwise defined herein shall
have the meaning attributed to such term in the Loan Agreement. 
 Borrowers agree to pay any initial partial monthly interest
payment from the date the Term Loan is made to Borrower under this Secured Promissory Note (this “Note”) to the first Payment Date (“Interim Interest”) on the first Payment Date. 

Principal, interest and all other amounts due with respect to the Term Loan, are payable in lawful money of the United States of America
to Lender as set forth in the Loan Agreement and this Note. The principal amount of this Note and the interest rate applicable thereto, and all payments made with respect thereto, shall be recorded by Lender and, prior to any transfer hereof,
endorsed on the grid attached hereto which is part of this Note. 
 The Loan Agreement, among other things, (a) provides
for the making of a secured Term Loan by Lender to Borrowers, and (b) contains provisions for acceleration of the maturity hereof upon the happening of certain stated events. 
 This Note may not be prepaid except as set forth in Section 2.2 (c) and Section 2.2(d) of the Loan Agreement. 
 This Note and the obligation of Borrowers to repay the unpaid principal amount of the Term Loan, interest on the Term Loan and all other amounts due Lender under the Loan Agreement is secured under the
Loan Agreement. 
 Presentment for payment, demand, notice of protest and all other demands and notices of any kind in
connection with the execution, delivery, performance and enforcement of this Note are hereby waived. 
 Borrowers shall pay all
reasonable fees and expenses, including, without limitation, reasonable attorneys’ fees and costs, incurred by Lender in the enforcement or attempt to enforce any of a Borrower’s obligations hereunder not performed when due. 

This Note shall be governed by, and construed and interpreted in accordance with, the internal laws of the State of California.

 The ownership of an interest in this Note shall be registered on a record of ownership maintained by Lender or its agent.
Notwithstanding anything else in this Note to the contrary, the right to the principal of, and stated interest on, this Note may be transferred only if the transfer is registered on such record of ownership and the transferee is identified as the
owner of an interest in the obligation. Borrowers shall be entitled to treat the registered holder of this Note (as recorded on such record of ownership) as the owner in fact thereof for all purposes and shall not be bound to recognize any equitable
or other claim to or interest in this Note on the part of any other person or entity. Unless and until Lender notifies Borrowers in writing that such a registered transfer has occurred and that it is so recorded on the record of ownership, Borrowers
shall be entitled to act as if there has been no such transfer and no such recordation on the record of ownership. 

  
 8. 

 IN WITNESS WHEREOF, Borrowers have caused this Note to be duly executed by
one of its officers thereunto duly authorized on the date hereof. 
  

			
	LIGAND PHARMACEUTICALS INCORPORATED
		
	By	 	 
	Name:	 	 
	Title:	 	 

  

			
	SERAGEN, INC.
		
	By	 	 
	Name:	 	 
	Title:	 	 
	
	METABASIS THERAPEUTICS, INC.
		
	By	 	 
	Name:	 	 
	Title:	 	 
	
	PHARMACOPEIA, LLC
	
	 By: Ligand Pharmaceuticals Incorporated,
 Its Sole and Managing Member

		
	By	 	 
	Name:	 	 
	Title:	 	 
	
	NEUROGEN CORPORATION
		
	By	 	 
	Name:	 	 
	Title:	 	 
	
	ALLERGAN LIGAND RETINOID THERAPEUTICS, INC.
		
	By	 	 
	Name:	 	 
	Title:	 	 
	
	LIGAND JVR, INC.
		
	By	 	 
	Name:	 	 
	Title:	 	 

  
 1. 

 FORM OF 
 CORPORATE BORROWING CERTIFICATE 
  

			
	BORROWER: [Borrower]	  	DATE:
	COLLATERAL AGENT: OXFORD FINANCIAL CORPORATION	  	

 I hereby certify as follows, as of the date set forth above: 

1. I am the Secretary, Assistant Secretary or other officer of the Borrower. My title is as set forth below. 

2. Borrower’s legal name is set forth above. Borrower is a corporation existing under the laws of the State
of                     . 

3. Attached hereto are true, correct and complete copies of Borrower’s Articles/Certificate of Incorporation (including amendments),
as filed with the Secretary of State of the state in which Borrower is incorporated as set forth in paragraph 1 above. Except for such attached amendments, such Articles/Certificate of Incorporation have not been amended, annulled, rescinded,
revoked or supplemented, and remain in full force and effect as of the date hereof. 
 4. The following resolutions were duly
and validly adopted by Borrower’s Board of Directors at a duly held meeting of such directors (or pursuant to a unanimous written consent or other authorized corporate action). Such resolutions are in full force and effect as of the date hereof
and have not been in any way modified, repealed, rescinded, amended or revoked, and Bank may rely on them until Bank receives written notice of revocation from Borrower. 

RESOLVED, that any one of the following officers or employees of Borrower,
whose names, titles and signatures are below, may act on behalf of Borrower: 
  

															
	 Name
	  	 	 	  	 Title
	  	 	 	  	 Signature
	  	
Authorized to
Add or Remove
Signatories

						
	 	  				  	 	  				  	 	  	 ̈
						
	 	  				  	 	  				  	 	  	 ̈
						
	 	  				  	 	  				  	 	  	 ̈
						
	 	  				  	 	  				  	 	  	 ̈

 RESOLVED FURTHER, that any one of the persons designated above with a checked box beside his or her name may, from time to time, add or remove any individuals
to and from the above list of persons authorized to act on behalf of Borrower. 
 RESOLVED
FURTHER, that such individuals may, on behalf of Borrower: 
 Borrow Money. Borrow
money from Oxford Financial Corporation (“Lender”). 
 Execute Loan Documents. Execute any loan
documents Bank requires. 
 Grant Security. Grant Lender a security interest in any of Borrower’s
assets. 
 Further Acts. Designate other individuals to request advances, pay fees and costs and execute
other documents or agreements they believe to be necessary to effectuate such resolutions. 

  
 1. 

 RESOLVED FURTHER, that all acts
authorized by the above resolutions and any prior acts relating thereto are ratified. 
 5. The persons listed above are
Borrower’s officers or employees with their titles and signatures shown next to their names. 
  

			
	By:	 	 
	Name:	 	 
	Title:	 	 

*** If the Secretary, Assistant Secretary or other certifying officer executing above is designated by the
resolutions set forth in paragraph 4 as one of the authorized signing officers, this Certificate must also be signed by a second authorized officer or director of Borrower. 

I, the
                     of Borrower, hereby certify as to paragraphs 1 through 5 above, as
                     [print title]
                     of the date set forth above. 

 

			
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 2.

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