Document:

Loan and Security Agreement dated as of June 15, 2012

 Exhibit 10.16 
 CELATOR PHARMACEUTICALS, INC. 
 LOAN AND SECURITY AGREEMENT

 This LOAN AND SECURITY AGREEMENT (the “Agreement”) is entered into as of June 15, 2012, by
and between Square 1 Bank (“Bank”) and Celator Pharmaceuticals, Inc. (“Borrower”). 
 RECITALS

 Borrower wishes to obtain credit from time to time from Bank, and Bank desires to extend credit to Borrower. This Agreement sets forth
the terms on which Bank will advance credit to Borrower, and Borrower will repay the amounts owing to Bank. 
 AGREEMENT

 The parties agree as follows: 
  

	 	1.	DEFINITIONS AND CONSTRUCTION. 

 1.1 Definitions. As used in this Agreement, all capitalized terms shall have the definitions set forth on Exhibit A. Any term used in the Code and not defined herein shall have the meaning
given to the term in the Code. 
 1.2 Accounting Terms. Any accounting term not specifically defined on Exhibit A
shall be construed in accordance with GAAP and all calculations shall be made in accordance with GAAP (except for non-compliance with FAS 123R in monthly reporting). The term “financial statements” shall include the accompanying notes and
schedules. 
  

	 	2.	LOAN AND TERMS OF PAYMENT. 

 2.1 Credit Extensions. 
 (a) Promise to Pay. Borrower
promises to pay to Bank, in lawful money of the United States of America, the aggregate unpaid principal amount of all Credit Extensions made by Bank to Borrower, together with interest on the unpaid principal amount of such Credit Extensions at
rates in accordance with the terms hereof. 
 (b) Term Loan. 

(i) Subject to and upon the terms and conditions of this Agreement, Bank agrees to make one (1) or more term loans to
Borrower in an aggregate principal amount not to exceed Three Million Dollars ($3,000,000) (each a “Term Loan” and collectively the “Term Loans”). Borrower may request Term Loans at any time from the date hereof through the
Availability End Date. The proceeds of the Term Loans shall be used for general working capital purposes. 

(ii) Interest shall accrue from the date of each Term Loan at the rate specified in Section 2.3(a), and
prior to the Availability End Date shall be payable monthly beginning on the 15th day of the month next following such Term Loan, and continuing on the same day of each month thereafter. Any Term Loans that are outstanding on the Availability End
Date shall be payable in 30 equal monthly installments of principal, plus all accrued interest, beginning on the
15th day of the month immediately following the
Availability End Date, and 

  
 1 

 
continuing on the same day of each month thereafter through the Term Loan Maturity Date, at which time all amounts due in connection with the Term Loans and any other amounts due under this
Agreement shall be immediately due and payable. Term Loans, once repaid, may not be reborrowed. Borrower may prepay any Term Loan without penalty or premium. 
 (iii) When Borrower desires to obtain a Term Loan, Borrower shall notify Bank (which notice shall be irrevocable) by facsimile transmission to be received no later than 3:30 p.m. Eastern time on
the day on which the Term Loan is to be made. Such notice shall be substantially in the form of Exhibit C. The notice shall be signed by an Authorized Officer. 
 2.2 Intentionally Left Blank.  
 2.3 Interest Rates, Payments,
and Calculations. 
 (a) Interest Rates. 

(i) Term Loans. Except as set forth in Section 2.3(b), the Term Loans shall bear interest, on the outstanding daily
balance thereof, at a variable annual rate equal to the greater of: (A) 1.50% above the Prime Rate then in effect; or (B) 5.50%. 
 (b) Late Fee; Default Rate. If any payment is not made within 15 days after the date such payment is due, Borrower shall pay Bank a late fee equal to the lesser of (i) 5% of the amount
of such unpaid amount or (ii) the maximum amount permitted to be charged under applicable law. All Obligations shall bear interest, from and after the occurrence and during the continuance of an Event of Default, at a rate equal to 5 percentage
points above the interest rate applicable immediately prior to the occurrence of the Event of Default. 
 (c)
Payments. Bank shall, at its option, charge such interest, all Bank Expenses, and all Periodic Payments against any of Borrower’s deposit accounts. Any interest not paid when due shall be compounded by becoming a part of the Obligations,
and such interest shall thereafter accrue interest at the rate then applicable hereunder. 
 (d) Computation. In
the event the Prime Rate is changed from time to time hereafter, the applicable rate of interest hereunder shall be increased or decreased, effective as of the day the Prime Rate is changed, by an amount equal to such change in the Prime Rate. All
interest chargeable under the Loan Documents shall be computed on the basis of a 360 day year for the actual number of days elapsed. 
 2.4 Crediting Payments. Prior to the occurrence of an Event of Default, Bank shall credit a wire transfer of funds, check or other item of payment to such deposit account or Obligation as
Borrower specifies, except that to the extent Borrower uses the Term Loans to purchase Collateral, Borrower’s repayment of the Term Loans shall apply on a “first-in-first-out” basis so that the portion of the Term Loans used to
purchase a particular item of Collateral shall be paid in the chronological order the Borrower purchased the Collateral. After the occurrence and during the continuance of an Event of Default, Bank shall have the right, in its sole discretion, to
immediately apply any wire transfer of funds, check, or other item of payment Bank may receive to conditionally reduce Obligations, but such applications of funds shall not be considered a 

  
 2 

 
payment on account unless such payment is of immediately available federal funds or unless and until such check or other item of payment is honored when presented for payment. Notwithstanding
anything to the contrary contained herein, any wire transfer or payment received by Bank after 5:30 p.m. Eastern time shall be deemed to have been received by Bank as of the opening of business on the immediately following Business Day. Whenever any
payment to Bank under the Loan Documents would otherwise be due (except by reason of acceleration) on a date that is not a Business Day, such payment shall instead be due on the next Business Day, and additional fees or interest, as the case may be,
shall accrue and be payable for the period of such extension. 
 2.5 Fees. Borrower shall pay to Bank the
following: 
 (a) Facility Fee. On or before the Closing Date, a fee equal to $15,000, which shall be
nonrefundable; 
 (b) Bank Expenses. On the Closing Date, all Bank Expenses incurred through the Closing Date,
and, after the Closing Date, all Bank Expenses, as and when they become due. 
 2.6 Term. This Agreement shall
become effective on the Closing Date and, subject to Section 12.7, shall continue in full force and effect for so long as any Obligations remain outstanding or Bank has any obligation to make Credit Extensions under this Agreement.
Notwithstanding the foregoing, Bank shall have the right to terminate its obligation to make Credit Extensions under this Agreement immediately and without notice upon the occurrence and during the continuance of an Event of Default. 

3. CONDITIONS OF LOANS. 
 3.1 Conditions Precedent to Closing. The agreement of Bank to enter into this Agreement on the Closing Date is subject to the condition precedent that Bank shall have received, in form
and substance satisfactory to Bank, each the following items and completed each of the following requirements: 
 (a)
this Agreement; 
 (b) an officer’s certificate of Borrower with respect to incumbency and resolutions authorizing
the execution and delivery of this Agreement; 
 (c) a financing statement (Form UCC-1); 

(d) Borrower shall have opened and funded not less than $50,000 in deposit accounts held with Bank; 

(e) payment of the fees and Bank Expenses then due specified in Section 2.5, which may be debited from any of
Borrower’s accounts with Bank; 
 (f) current SOS Reports indicating that except for Permitted Liens, there are no
other security interests or Liens of record in the Collateral; 

  
 3 

 (g) current financial statements, including audited statements (or such other level
required by the Investment Agreement) for Borrower’s most recently ended fiscal year, together with an unqualified opinion (or an opinion qualified only for going concern so long as Borrower’s investors provide additional equity as
needed), company prepared consolidated and consolidating balance sheets, income statements, and statements of cash flows for the most recently ended month in accordance with Section 6.2, and such other updated financial information as Bank may
reasonably request; 
 (h) current Compliance Certificate in accordance with Section 6.2; 

(i) a Warrant in form and substance satisfactory to Bank; 

(j) a subordination agreement, in form and substance satisfactory to Bank, duly executed by Thomas, McNerney & Partners
II, L.P., TMP Nominee II, LLC, TMP Associates II, L.P., Domain Partners VI, L.P., Ventures West 7 Limited Partnership, Ventures West 7 U.S. Limited Partnership, Working Opportunity Fund (EVCC) Ltd., BDC Capital Inc., Quaker Bioventures, L.P., Garden
State Life Sciences Venture Fund, L.P., and Borrower; 
 (k) a Guarantee, a General Security Agreement, and an
officer’s certificate of Celator Corp., in each case in form and substance satisfactory to Bank and duly executed by Celator Corp.; 
 (l) a Release of Security Interest in Borrower’s intellectual property, in form and substance satisfactory to Bank, duly executed by each of Borrower’s investors possessing a security
interest in Borrower’s intellectual property; 
 (m) a letter, in form and substance satisfactory to Bank and duly
executed by Royal Bank of Canada, confirming that any security interest it has in the assets of Celator Corp., other than its security interest in certain personal property of Celator Corp. as described in the Cash Collateral Agreement (Form 610)
dated June 12, 2011 up to a maximum amount of fifty five thousand Canadian dollars, is subordinated in all respects to the security interest of Bank in such property; 
 (n) an organizational chart of Borrower, indicating any parent company, Subsidiaries, and sister companies of Borrower; 
 (o) a Borrower Information Certificate; and 
 (p) such other
documents or certificates, and completion of such other matters, as Bank may reasonably request. 
 3.2 Conditions
Precedent to all Credit Extensions. The obligation of Bank to make each Credit Extension, including the initial Credit Extension, is contingent upon the Borrower’s compliance with Section 3.1 above, and is further subject to the
following conditions: 
 (a) timely receipt by Bank of the Loan Advance/Paydown Request Form as provided in
Section 2.1; 

  
 4 

 (b) Borrower shall have transferred substantially all of its Cash assets into
operating accounts held with Bank and otherwise be in compliance with Section 6.6 hereof; and 
 (c) the
representations and warranties contained in Section 5 shall be true and correct in all material respects on and as of the date of such Loan Advance/Paydown Request Form and on the effective date of each Credit Extension as though made at and as
of each such date, and no Event of Default shall have occurred and be continuing, or would exist after giving effect to such Credit Extension (provided, however, that those representations and warranties expressly referring to another date shall be
true, correct and complete in all material respects as of such date). The making of each Credit Extension shall be deemed to be a representation and warranty by Borrower on the date of such Credit Extension as to the accuracy of the facts referred
to in this Section 3.2. 
 4. CREATION OF SECURITY INTEREST. 

4.1 Grant of Security Interest. Borrower grants and pledges to Bank a continuing security interest in the Collateral to
secure prompt repayment of any and all Obligations and to secure prompt performance by Borrower of each of its covenants and duties under the Loan Documents. Except for Permitted Liens or as disclosed in the Schedule, such security interest
constitutes a valid, first priority security interest in the presently existing Collateral, and will constitute a valid, first priority security interest in later-acquired Collateral. Borrower also hereby agrees not to sell, transfer, assign,
mortgage, pledge, lease, grant a security interest in, or encumber any of its Intellectual Property. Notwithstanding any termination of this Agreement or of any filings undertaken related to Bank’s rights under the Code, Bank’s Lien
on the Collateral shall remain in effect for so long as any Obligations are outstanding. 
 4.2 Perfection of
Security Interest. Borrower authorizes Bank to file at any time financing statements, continuation statements, and amendments thereto that (i) either specifically describe the Collateral or describe the Collateral as all assets of Borrower
of the kind pledged hereunder, and (ii) contain any other information required by the Code for the sufficiency of filing office acceptance of any financing statement, continuation statement, or amendment, including whether Borrower is an
organization, the type of organization and any organizational identification number issued to Borrower, if applicable. Borrower shall have possession of the Collateral, except where expressly otherwise provided in this Agreement or where Bank
chooses to perfect its security interest by possession in addition to the filing of a financing statement. Where Collateral is in possession of a third party bailee, Borrower shall take such steps as Bank reasonably requests for Bank to
(i) subject to Section 7.10 below, obtain an acknowledgment, in form and substance satisfactory to Bank, of the bailee that the bailee holds such Collateral for the benefit of Bank, and (ii) obtain “control” of any
Collateral consisting of investment property, deposit accounts, letter-of-credit rights or electronic chattel paper (as such items and the term “control” are defined in Revised Article 9 of the Code) by causing the securities intermediary
or depositary institution or issuing bank to execute a control agreement in form and substance satisfactory to Bank. Borrower will not create any chattel paper without placing a legend on the chattel paper acceptable to Bank indicating that Bank has
a security interest in the chattel paper. Borrower from time to time may deposit with Bank specific cash collateral to secure specific Obligations; Borrower authorizes Bank to hold such specific balances in pledge and to decline to

  
 5 

 
honor any drafts thereon or any request by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long as the specific Obligations are outstanding. Borrower
shall take such other actions as Bank requests to perfect its security interests granted under this Agreement. 
 5.
REPRESENTATIONS AND WARRANTIES. 
 Borrower represents and warrants as follows: 

5.1 Due Organization and Qualification. Borrower and each Subsidiary organized under the laws of the US is a corporation
duly existing under the laws of the state in which it is organized and qualified and licensed to do business in any state in which the conduct of its business or its ownership of property requires that it be so qualified, except where the failure to
do so would not reasonably be expected to cause a Material Adverse Effect. 
 5.2 Due Authorization; No Conflict.
The execution, delivery, and performance of the Loan Documents are within Borrower’s powers, have been duly authorized, and are not in conflict with nor constitute a breach of any provision contained in Borrower’s Certificate of
Incorporation or Bylaws, nor will they constitute an event of default under any material agreement by which Borrower is bound. Borrower is not in default under any agreement by which it is bound, except to the extent such default would not
reasonably be expected to cause a Material Adverse Effect. 
 5.3 Collateral. Borrower has rights in or the power
to transfer the Collateral, and its title to the Collateral is free and clear of Liens, adverse claims, and restrictions on transfer or pledge except for Permitted Liens. Other than movable items of personal property such as laptop computers and
Collateral with a net book value not to exceed $1,419,538.09 which is located at the Baxter Facility, all Collateral having an aggregate book value in excess of $100,000, is located solely in the Collateral States. All Inventory is in all material
respects of good and merchantable quality, free from all material defects, except for Inventory for which adequate reserves have been made. Except as set forth in the Schedule or as otherwise permitted pursuant to Section 6.6, none of the
Borrower’s Cash is maintained or invested with a Person other than Bank or Bank’s affiliates. 
 5.4
Intellectual Property. Borrower is the sole owner of the intellectual property created or purchased by Borrower, except for licenses granted by Borrower to its customers in the ordinary course of business. To the best of Borrower’s
knowledge, each of the Copyrights, Trademarks and Patents created or purchased by Borrower is valid and enforceable, and no part of the intellectual property created or purchased by Borrower has been judged invalid or unenforceable, in whole or in
part, and no claim has been made to Borrower that any part of the intellectual property created or purchased by Borrower violates the rights of any third party except to the extent such claim would not reasonably be expected to cause a Material
Adverse Effect. 
 5.5 Name; Location of Chief Executive Office. Except as disclosed in the Schedule, Borrower
has not done business under any name other than that specified on the signature page hereof, and its exact legal name is as set forth in the first paragraph of this Agreement. The chief executive office of Borrower is located at the address
indicated in Section 10 hereof. 

  
 6 

 5.6 Litigation. Except as set forth in the Schedule, there are no actions or
proceedings pending by or against Borrower or any Subsidiary before any court or administrative agency in which a likely adverse decision would reasonably be expected to have a Material Adverse Effect. 

5.7 No Material Adverse Change in Financial Statements. All consolidated and consolidating financial statements related to
Borrower and any Subsidiary that are delivered by Borrower to Bank fairly present in all material respects Borrower’s consolidated and consolidating financial condition as of the date thereof and Borrower’s consolidated and consolidating
results of operations for the period then ended. There has not been a material adverse change in the consolidated or in the consolidating financial condition of Borrower since the date of the most recent of such financial statements submitted to
Bank. 
 5.8 Solvency, Payment of Debts. Borrower is able to pay its debts (including trade debts) as they
mature; the fair saleable value of Borrower’s assets (including goodwill minus disposition costs) exceeds the fair value of its liabilities; and Borrower is not left with unreasonably small capital after the transactions contemplated by this
Agreement. 
 5.9 Compliance with Laws and Regulations. Borrower and each Subsidiary have met the minimum funding
requirements of ERISA with respect to any employee benefit plans subject to ERISA. No event has occurred resulting from Borrower’s failure to comply with ERISA that is reasonably likely to result in Borrower’s incurring any liability that
could have a Material Adverse Effect. Borrower is not an “investment company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940. Borrower is not engaged
principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulations T and U of the Board of Governors of the Federal Reserve System).
Borrower has not violated any statutes, laws, ordinances or rules applicable to it, the violation of which would reasonably be expected to have a Material Adverse Effect. Borrower and each Subsidiary have filed or caused to be filed all tax returns
required to be filed, and have paid, or have made adequate provision for the payment of, all taxes reflected therein except those being contested in good faith with adequate reserves under GAAP or where the failure to file such returns or pay such
taxes would not reasonably be expected to have a Material Adverse Effect. 
 5.10 Subsidiaries. Borrower does not
own any stock, partnership interest or other equity securities of any Person, except for Permitted Investments. 
 5.11
Government Consents. Borrower and each Subsidiary have obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all governmental authorities that are necessary for the continued
operation of Borrower’s business as currently conducted, except where the failure to do so would not reasonably be expected to cause a Material Adverse Effect. 

  
 7 

 5.12 Inbound Licenses. Except as disclosed on the Schedule, Borrower is not a
party to, nor is bound by, any material license or other agreement important for the conduct of Borrower’s business that prohibits or otherwise restricts Borrower from granting a security interest in Borrower’s interest in such license or
agreement or any other property important for the conduct of Borrower’s business, other than this Agreement or the other Loan Documents. 
 5.13 Celator UK. Celator UK does not own any assets or conduct any operations. 
 5.14 Full Disclosure. No representation, warranty or other statement made by Borrower in any certificate or written statement furnished to Bank taken together with all such certificates and
written statements furnished to Bank contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained in such certificates or statements not misleading in light of the
circumstances in which they were made, it being recognized by Bank that the projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are not to be viewed as facts and that actual results during the period or
periods covered by any such projections and forecasts may differ from the projected or forecasted results. 
 6. AFFIRMATIVE
COVENANTS. 
 Borrower covenants that, until payment in full of all outstanding Obligations, and for so long as Bank may
have any commitment to make a Credit Extension hereunder, Borrower shall do all of the following: 
 6.1 Good
Standing and Government Compliance. Borrower shall maintain its and each of its Subsidiaries’ corporate existence and good standing in the respective states of formation, shall maintain qualification and good standing in each other
jurisdiction in which the failure to so qualify would reasonably be expected to have a Material Adverse Effect, and shall furnish to Bank the organizational identification number issued to Borrower by the authorities of the state in which Borrower
is organized, if applicable. Borrower shall meet, and shall cause each Subsidiary to meet, the minimum funding requirements of ERISA with respect to any employee benefit plans subject to ERISA. Borrower shall comply, and shall cause each Subsidiary
to comply, with all statutes, laws, ordinances and government rules and regulations to which it is subject, and shall maintain, and shall cause each of its Subsidiaries to maintain, in force all licenses, approvals and agreements, the loss of which
or failure to comply with which would reasonably be expected to have a Material Adverse Effect. 
 6.2 Financial
Statements, Reports, Certificates. Borrower shall deliver to Bank: (i) as soon as available, but in any event within 30 days after the end of each calendar month, a company prepared consolidated and consolidating balance sheet, income
statement, and statement of cash flows covering Borrower’s operations during such period, in a form reasonably acceptable to Bank and certified by a Responsible Officer; (ii) as soon as available, but in any event within 180 days after the
end of Borrower’s fiscal year, audited (or such other level as is required by the Investment Agreement) consolidated and consolidating financial statements of Borrower prepared in accordance with GAAP, consistently applied, together with an
opinion which is either unqualified, or qualified only for going concern so long as Borrower’s investors 

  
 8 

 
provide additional equity as needed or otherwise consented to in writing by Bank, on such financial statements of an independent certified public accounting firm reasonably acceptable to Bank;
(iii) annual budget approved by Borrower’s Board of Directors as soon as available but not later than 45 days after the beginning of each fiscal year of Borrower during the term of this agreement; (iv) if applicable, copies of all
statements, reports and notices sent or made available generally by Borrower to its security holders or to any holders of Subordinated Debt and all reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission; (v) promptly
upon receipt of notice thereof, a report of any legal actions pending or threatened against Borrower or any Subsidiary that could reasonably be expected to result in damages or costs to Borrower or any Subsidiary of $250,000 or more;
(vi) promptly upon receipt, each management letter prepared by Borrower’s independent certified public accounting firm regarding Borrower’s management control systems, (vii) as soon as available, but in any event within 30 days
after the end of each calendar month, a monthly enrollment report for Borrower’s phase III trial, in form and substance satisfactory to Bank (the “Phase III Report”); (vii) such budgets, sales projections, operating plans or
other financial information generally prepared by Borrower in the ordinary course of business as Bank may reasonably request from time to time. 
 (a) Within 30 days after the last day of each month, Borrower shall deliver to Bank with the monthly financial statements and the Phase III Report a Compliance Certificate certified as of the last
day of the applicable month and signed by a Responsible Officer in substantially the form of Exhibit D hereto. 
 (b) As
soon as possible and in any event within 3 Business Days after becoming aware of the occurrence or existence of an Event of Default hereunder, a written statement of a Responsible Officer setting forth details of the Event of Default, and the action
which Borrower has taken or proposes to take with respect thereto. 
 (c) Bank (through any of its officers, employees,
or agents) shall have the right, upon reasonable prior notice, from time to time during Borrower’s usual business hours but no more than twice a year (unless an Event of Default has occurred and is continuing), to inspect Borrower’s Books
and to make copies thereof and to check, test, inspect, audit and appraise the Collateral at Borrower’s expense in order to verify Borrower’s financial condition or the amount, condition of, or any other matter relating to, the Collateral.

 Borrower may deliver to Bank on an electronic basis any certificates, reports or information required pursuant to this
Section 6.2, and Bank shall be entitled to rely on the information contained in the electronic files, provided that Bank in good faith believes that the files were delivered by a Responsible Officer. Borrower shall include a submission date on
any certificates and reports to be delivered electronically. 
 6.3 Inventory and Equipment; Returns. Borrower
shall keep all Inventory and Equipment in good and merchantable condition, free from all material defects, except for Inventory and Equipment (i) sold in the ordinary course of business, and (ii) for which adequate reserves have been made,
in all cases in the United States and such other locations as to which Borrower gives prior written notice. Returns and allowances, if any, as between Borrower and its account debtors shall be on the same basis and in accordance with the usual
customary practices of Borrower, as they exist on the Closing Date. Borrower shall promptly notify Bank of all returns and recoveries and of all disputes and claims involving inventory having a book value of more than $100,000. 

  
 9 

 6.4 Taxes. Borrower shall make, and cause each Subsidiary to make, due and
timely payment or deposit of all material federal, state, and local taxes, assessments, or contributions required of it by law, including, but not limited to, those laws concerning income taxes, F.I.C.A., F.U.T.A. and state disability, and will
execute and deliver to Bank, upon reasonable request, proof satisfactory to Bank indicating that Borrower or a Subsidiary has made such payments or deposits and any appropriate certificates attesting to the payment or deposit thereof; provided that
Borrower or a Subsidiary need not make any payment if the amount or validity of such payment is contested in good faith by appropriate proceedings and is reserved against (to the extent required by GAAP) by Borrower or such Subsidiary. 

6.5 Insurance. Borrower, at its expense, shall (i) keep the Collateral insured against loss or damage, and
(ii) maintain liability and other insurance, in each case in as ordinarily insured against by other owners in businesses similar to Borrower’s. All such policies of insurance shall be in such form, with such companies, and in such amounts
as reasonably satisfactory to Bank. All policies of property insurance shall contain a lender’s loss payable endorsement, in a form satisfactory to Bank, showing Bank as an additional loss payee, and all liability insurance policies shall show
Bank as an additional insured and specify that the insurer must give at least 20 days notice to Bank before canceling its policy for any reason. Within 30 days of the Closing Date, Borrower shall cause to be furnished to Bank a copy of its policies
or certificate of insurance including any endorsements covering Bank or showing Bank as an additional insured. Upon Bank’s request, Borrower shall deliver to Bank certified copies of the policies of insurance and evidence of all premium
payments. Proceeds payable under any casualty policy will, at Borrower’s option, be payable to Borrower to replace the property subject to the claim, provided that any such replacement property shall be deemed Collateral in which Bank has been
granted a first priority security interest, provided that if an Event of Default has occurred and is continuing, all proceeds payable under any such policy shall, at Bank’s option, be payable to Bank to be applied on account of the Obligations.

 6.6 “Primary Depository”. Subject to the provisions of Section 3.1(d) and 3.2(b), Borrower
within 30 days of the Closing Date shall maintain all its depository and operating accounts with Bank and its primary investment accounts with Bank or Bank’s affiliates. Notwithstanding the above, Borrower shall be permitted to maintain an
aggregate amount of 500,000 Canadian Dollars in one or more accounts at Royal Bank of Canada to be used for operating purposes of Celator Corp. 
 6.7 Financial Covenants. Borrower shall at all times maintain the following financial ratios and covenants: 
 (a) Minimum Cash. On or before Borrower’s Cash at Bank falling below $750,000, Borrower shall deliver one of the following to Bank (i) a signed and accepted term sheet from
Borrower’s existing investors for the issuance of Borrower’s Subordinated Debt securities with net Cash proceeds to be received by the Borrower therefrom in an amount equal to or greater than the greater of (1) $1,500,000, or
(2) such amount needed by the Borrower to continue to operate in the ordinary course of business until closing of the Equity Raise (as defined 

  
 10 

 
below) and/or Strategic Transaction (as defined below), as determined by the Borrower’s existing investors; or (ii) a signed and accepted term sheet, in form and substance
satisfactory to Bank, for the sale or issuance of Borrower’s equity securities (the “Equity Raise”) to investors acceptable to Bank, and/or a licensing agreement, partnership or other collaboration satisfactory to Bank (the
“Strategic Transaction”) with net Cash proceeds to be received by Borrower in connection with the Equity Raise and/or pursuant to any upfront payment from the Strategic Transaction to be equal to or greater than $25,000,000, and the
funding of the $25,000,000 shall occur within 60 days of the date of the term sheet. At all times following the funding of the $25,000,000 pursuant to the Equity Raise and/or Strategic Transaction, Borrower’s balance of Cash at Bank shall not
be less than 50% of Borrower’s outstanding Obligations to Bank, monitored on a daily basis. 
 6.8 Consent of
Inbound Licensors. Prior to entering into or becoming bound by any material inbound license or agreement, Borrower shall: (i) provide written notice to Bank of the material terms of such license or agreement with a description of its likely
impact on Borrower’s business or financial condition; and (ii) in good faith use commercially reasonable efforts to obtain the consent of, or waiver by, any person whose consent or waiver is necessary for Borrower’s interest in such
licenses or contract rights to be deemed Collateral and for Bank to have a security interest in it that might otherwise be restricted by the terms of the applicable license or agreement, whether now existing or entered into in the future, provided,
however, that the failure to obtain any such consent or waiver shall not constitute a default under this Agreement. 

6.9 Creation/Acquisition of Subsidiaries. In the event any Borrower or any Subsidiary of any Borrower creates or acquires
any Subsidiary, Borrower or such Subsidiary shall promptly notify Bank of such creation or acquisition, and Borrower or such Subsidiary shall take all actions reasonably requested by Bank to achieve any of the following with respect to such
“New Subsidiary” (defined as a Subsidiary formed after the date hereof during the term of this Agreement): (i) to cause New Subsidiary to become either a co-Borrower hereunder, if such New Subsidiary is organized
under the laws of the United States, or a secured guarantor with respect to the Obligations; and (ii) to grant and pledge to Bank a perfected security interest in 100% of the stock, units or other evidence of ownership held by Borrower or its
Subsidiaries of any such New Subsidiary which is organized under the laws of the United States, and 65% of the stock, units or other evidence of ownership held by Borrower or its Subsidiaries of any such New Subsidiary which is not organized under
the laws of the United States. 
 6.10 Security Transfer of Title Agreement. Within 60 days following the Closing
Date, (a) Borrower shall have executed a Security Transfer of Title Agreement, in form and substance satisfactory to Bank, pursuant to which Borrower shall provide Bank with an effective security interest in its Equipment that is located at the
Baxter Facility (the “Baxter Equipment”), and (b) Baxter shall have provided Bank with a duly executed contractor undertaking, in form and substance satisfactory to Bank, pursuant to which Baxter, among other things, acknowledges the
Bank’s security interest in the Baxter Equipment and agrees not to remove the Baxter Equipment without the Bank’s consent. 
 6.11 Further Assurances. At any time and from time to time Borrower shall execute and deliver such further instruments and take such further action as may reasonably be requested by Bank to
affect the purposes of this Agreement. 

  
 11 

 7. NEGATIVE COVENANTS. 

Borrower covenants and agrees that, so long as any credit hereunder shall be available and until the outstanding Obligations are paid in
full or for so long as Bank may have any commitment to make any Credit Extensions, Borrower will not do any of the following without Bank’s prior written consent, which shall not be unreasonably withheld: 

7.1 Dispositions. Convey, sell, lease, license, transfer or otherwise dispose of (collectively, to “Transfer”),
or permit any of its Subsidiaries to Transfer, all or any part of its business or property, or move cash balances on deposit with Bank to accounts opened at another financial institution, other than Permitted Transfers. 

7.2 Change in Name, Location, Executive Office, or Executive Management; Change in Business; Change in Fiscal Year; Change in
Control. Change its name or the state of Borrower’s formation or relocate its chief executive office without 30 days prior written notification to Bank; replace or suffer the departure of its chief executive officer or chief financial
officer without delivering written notification to Bank within 10 days; fail to appoint an interim replacement or fill a vacancy in the position of chief executive officer or chief financial officer for more than 30 consecutive days; suffer a change
on its board of directors which results in the failure of at least one partner of any of Domain Associates or Thomas McNerney & Partners or their Affiliates, to serve as a voting member, or suffer the resignation of one or more directors
from its board of directors in anticipation of Borrower’s insolvency, in each case without the prior written consent of Bank which may be withheld in Bank’s sole discretion; take action to liquidate, wind up, or otherwise cease to conduct
business in the ordinary course; engage in any business, or permit any of its Subsidiaries to engage in any business, other than or reasonably related or incidental to the businesses currently engaged in by Borrower; change its fiscal year end; have
a Change in Control. 
 7.3 Mergers or Acquisitions. Merge or consolidate, or permit any of its Subsidiaries
to merge or consolidate, with or into any other business organization (other than mergers or consolidations of a Subsidiary into another Subsidiary or into Borrower), or acquire, or permit any of its Subsidiaries to acquire, all or substantially all
of the capital stock or property of another Person except where (a) each of the following conditions is applicable: (i) the consideration paid in connection with such transactions (including assumption of liabilities) does not in the
aggregate exceed $250,000 during any fiscal year, (ii) no Event of Default has occurred, is continuing or would exist after giving effect to such transactions, (iii) such transactions do not result in a Change in Control, and
(iv) Borrower is the surviving entity; or (b) the Obligations are repaid in full concurrently with the closing of any merger or consolidation of Borrower in which Borrower is not the surviving entity; provided, however, that Borrower shall
not, without Bank’s prior written consent, enter into any binding contractual arrangement with any Person to attempt to facilitate a merger or acquisition of Borrower; provided however, Borrower may enter into any such agreement without
Bank’s prior written consent so long as (i) no Event of Default exists when such agreement is entered into by Borrower, (ii) such agreement does not give such Person the right to claim any fee, payment or damages from any parties,
other than from Borrower or Borrower’s investors, in connection with a sale of Borrower’s stock or assets pursuant to or resulting from an assignment for the benefit of creditors, an asset turnover to Borrower’s creditors (including,
without limitation, Bank), foreclosure, bankruptcy or similar liquidation, and (iii)

  
 12 

 
Borrower notifies Bank in advance of entering into such an agreement (provided, the failure to give such notification shall not be deemed a material breach of this Agreement). Notwithstanding the
above, Borrower shall be permitted to close the Redpoint Transaction, subject to the express conditions that (1) it shall be a condition to the closing of the Redpoint Transaction that Redpoint provide Bank with an Unconditional Guaranty (the
“Redpoint Guarantee”), a Third Party Security Agreement (the “Redpoint Security Agreement”), and corporate resolutions authorizing the execution and delivery of the Redpoint Gurantee and the Redpoint Security Agreement (the
“Resolutions”, and together with the Redpoint Guarantee and the Redpoint Security Agreement, the “Redpoint Loan Documents”), in form and substance satisfactory to Bank, pursuant to which Redpoint shall unconditionally guarantee
all Obligations of Borrower and shall grant Bank a first priority security interest in all of Redpoint’s assets, and the Redpoint Loan Documents shall be duly executed by Redpoint simultaneously with the closing of the Redpoint Transaction;
(2) upon execution of the Redpoint Loan Documents, Bank shall have a valid, first priority security interest in all the assets of Redpoint; (3) simultaneously with the closing of the Redpoint Transaction, Redpoint shall receive gross
proceeds of at least $20,000,000 from the sale or issuance of Redpoint’s equity securities at a pre-money valuation for Borrower and Redpoint (as a combined entity) of not less than $60,000,000 (the “Redpoint Financing”); and
(4) simultaneously with the closing of the Redpoint Transaction, any and all of Redpoint’s depository, operating, and investments accounts shall be held at Bank. 
 7.4 Indebtedness. Create, incur, assume, guarantee or be or remain liable with respect to any Indebtedness, or permit any Subsidiary so to do, other than Permitted Indebtedness, or prepay
any Indebtedness or take any actions which impose on Borrower an obligation to prepay any Indebtedness, except Indebtedness to Bank. 
 7.5 Encumbrances. Create, incur, assume or allow any Lien with respect to its property, or assign or otherwise convey any right to receive income, including the sale of any Accounts, or
permit any of its Subsidiaries so to do, except for Permitted Liens, or covenant to any other Person (other than (i) the licensors of in-licensed property with respect to such property or (ii) the lessors of specific equipment or lenders
financing specific equipment with respect to such leased or financed equipment) that Borrower in the future will refrain from creating, incurring, assuming or allowing any Lien with respect to any of Borrower’s property. 

7.6 Distributions. Pay any dividends or make any other distribution or payment on account of or in redemption, retirement
or purchase of any capital stock, except that Borrower may (i) repurchase the stock of former employees pursuant to stock repurchase agreements as long as an Event of Default does not exist prior to such repurchase or would not exist after
giving effect to such repurchase, and (ii) repurchase the stock of former employees pursuant to stock repurchase agreements by the cancellation of indebtedness owed by such former employees to Borrower regardless of whether an Event of Default
exists. 
 7.7 Investments. Directly or indirectly acquire or own, or make any Investment in or to any Person, or
permit any of its Subsidiaries so to do, other than Permitted Investments, or maintain or invest any of its Investment Property with a Person other than Bank or Bank’s Affiliates or permit any Subsidiary to do so unless such Person has entered
into a control agreement with Bank, in form and substance satisfactory to Bank, or suffer or permit any Subsidiary to be a party to, or be bound by, an agreement that restricts such Subsidiary from paying dividends or otherwise distributing property
to Borrower. 

  
 13 

 7.8 Transactions with Affiliates. Directly or indirectly enter into or permit
to exist any material transaction with any Affiliate of Borrower except for transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an
arm’s length transaction with a non-affiliated Person. 
 7.9 Subordinated Debt. Make any payment in respect
of any Subordinated Debt, or permit any of its Subsidiaries to make any such payment, except in compliance with the terms of such Subordinated Debt, or amend any provision affecting Bank’s rights contained in any documentation relating to the
Subordinated Debt without Bank’s prior written consent. 
 7.10 Inventory and Equipment. Store the Inventory
or the Equipment of a book value in excess of $100,000 with a bailee, warehouseman, collocation facility or similar third party unless the third party has been notified of Bank’s security interest and Bank (a) has received an
acknowledgment from the third party that it is holding or will hold the Inventory or Equipment for Bank’s benefit or (b) is in possession of the warehouse receipt, where negotiable, covering such Inventory or Equipment. Except for
Inventory sold in the ordinary course of business and for movable items of personal property having an aggregate book value not in excess of $100,000, and except for such other locations as Bank may approve in writing, Borrower shall keep the
Inventory and Equipment only at the location set forth in Section 10 and such other locations of which Borrower gives Bank prior written notice and as to which Bank is able to take such actions as may be necessary to perfect its security
interest or to obtain a bailee’s acknowledgment of Bank’s rights in the Collateral. 
 7.11 No Investment
Company; Margin Regulation. Become or be controlled by an “investment company,” within the meaning of the Investment Company Act of 1940, or become principally engaged in, or undertake as one of its important activities, the business
of extending credit for the purpose of purchasing or carrying margin stock, or use the proceeds of any Credit Extension for such purpose. 
 8. EVENTS OF DEFAULT. 
 Any one or more of the following events shall
constitute an Event of Default by Borrower under this Agreement: 
 8.1 Payment Default. If Borrower fails to pay
any of the Obligations when due; 
 8.2 Covenant Default. 

(a) If Borrower fails to perform any obligation under Sections 6.6 (primary accounts), 6.7 (financial covenants), or 6.10
(Security Transfer of Title Agreement), or violates any of the covenants contained in Article 7 of this Agreement; 

(b) If Borrower fails to perform any obligation set forth in Section 6.2 (financial reporting), 6.4 (taxes), or 6.5
(insurance), Borrower shall have 10 days to cure such default, and within such cure period the failure to have cured such default shall not be deemed an Event of Default but no Credit Extensions will be made; or 

  
 14 

 (c) If Borrower fails or neglects to perform or observe any other material term,
provision, condition, covenant contained in this Agreement, in any of the Loan Documents, or in any other present or future agreement between Borrower and Bank and as to any default under such other term, provision, condition or covenant that can be
cured, has failed to cure such default within 10 days after Borrower receives notice thereof or any officer of Borrower becomes aware thereof; provided, however, that if the default cannot by its nature be cured within the 10 day period or cannot
after diligent attempts by Borrower be cured within such 10 day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional reasonable period (which shall not in any case exceed 30 days) to attempt
to cure such default, and within such reasonable time period the failure to have cured such default shall not be deemed an Event of Default but no Credit Extensions will be made. 

8.3 Material Adverse Change. If there occurs any circumstance or any circumstances which would reasonably be expected to
have a Material Adverse Effect; 
 8.4 Attachment. If any material portion of Borrower’s assets is attached,
seized, subjected to a writ or distress warrant, or is levied upon, or comes into the possession of any trustee, receiver or person acting in a similar capacity and such attachment, seizure, writ or distress warrant or levy has not been removed,
discharged or rescinded within 15 days, or if Borrower is enjoined, restrained, or in any way prevented by court order from continuing to conduct all or any material part of its business affairs, or if a judgment or other claim becomes a lien or
encumbrance upon any material portion of Borrower’s assets, or if a notice of lien, levy, or assessment is filed of record with respect to any material portion of Borrower’s assets by the United States Government, or any department,
agency, or instrumentality thereof, or by any state, county, municipal, or governmental agency, and the same is not paid within fifteen days after Borrower receives notice thereof, provided that none of the foregoing shall constitute an Event of
Default where such action or event is stayed or an adequate bond has been posted pending a good faith contest by Borrower (provided that no Credit Extensions will be made during such cure period); 

8.5 Insolvency. If Borrower becomes insolvent, or if an Insolvency Proceeding is commenced by Borrower, or if an
Insolvency Proceeding is commenced against Borrower and is not dismissed or stayed within 45 days (provided that no Credit Extensions will be made prior to the dismissal of such Insolvency Proceeding); 

8.6 Other Agreements. If there is a default or other failure to perform in any agreement to which Borrower is a party with
a third party or parties (a) 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 $250,000 or (b) that would reasonably be expected to have
a Material Adverse Effect; 
 8.7 Judgments. If a final, uninsured judgment or judgments for the payment of money
in an amount, individually or in the aggregate, of at least $250,000 shall be rendered against Borrower and shall remain unsatisfied and unstayed for a period of 15 days (provided that no Credit Extensions will be made prior to the satisfaction or
stay of the judgment); or 

  
 15 

 8.8 Misrepresentations. If any material misrepresentation or material
misstatement exists now or hereafter in any warranty or representation set forth herein or in any certificate delivered to Bank by any Responsible Officer pursuant to this Agreement or to induce Bank to enter into this Agreement or any other Loan
Document. 
 8.9 Guaranty. If any guaranty of all or a portion of the Obligations (a “Guaranty)
ceases for any reason to be in full force and effect, or any guarantor fails to perform any obligation under any Guaranty or a security agreement securing any Guaranty (collectively, the “Guaranty Documents”), or any event of default
occurs under any Guaranty Document or any guarantor revokes or purports to revoke a Guaranty, or any material misrepresentation or material misstatement exists now or hereafter in any warranty or representation set forth in any Guaranty Document or
in any certificate delivered to Bank in connection with any Guaranty Document, or if any of the circumstances described in Sections 8.3 through 8.9 occur with respect to any guarantor. 

9. BANK’S RIGHTS AND REMEDIES. 
 9.1 Rights and Remedies. Upon the occurrence and during the continuance of an Event of Default, Bank may, at its election, without notice of its election and without demand, do any one or
more of the following, all of which are authorized by Borrower: 
 (a) Declare all Obligations, whether evidenced by
this Agreement, by any of the other Loan Documents, or otherwise, immediately due and payable (provided that upon the occurrence of an Event of Default described in Section 8.5 (insolvency), all Obligations shall become immediately due and
payable without any action by Bank); 
 (b) Demand that Borrower (i) deposit cash with Bank in an amount equal to
the amount of any Letters of Credit remaining undrawn, as collateral security for the repayment of any future drawings under such Letters of Credit, and (ii) pay in advance all Letter of Credit fees scheduled to be paid or payable over the
remaining term of the Letters of Credit, and Borrower shall promptly deposit and pay such amounts; 
 (c) Cease
advancing money or extending credit to or for the benefit of Borrower under this Agreement or under any other agreement between Borrower and Bank; 
 (d) Settle or adjust disputes and claims directly with account debtors for amounts, upon terms and in whatever order that Bank reasonably considers advisable; 

(e) Make such payments and do such acts as Bank considers necessary or reasonable to protect its security interest in the
Collateral. Borrower agrees to assemble the Collateral if Bank so requires, and to make the Collateral available to Bank as Bank may designate. Borrower authorizes Bank to enter the premises where the Collateral is located, to take and maintain
possession of the Collateral, or any part of it, and to pay, purchase, contest, or compromise any encumbrance, charge, or lien which in Bank’s determination appears to be prior or superior to its security interest and to pay all expenses
incurred in connection therewith. With respect to any of Borrower’s owned premises, Borrower hereby grants Bank a license to enter into possession of such premises and to occupy the same, without charge, in order to exercise any of Bank’s
rights or remedies provided herein, at law, in equity, or otherwise; 

  
 16 

 (f) Set off and apply to the Obligations any and all (i) balances and deposits
of Borrower held by Bank, and (ii) indebtedness at any time owing to or for the credit or the account of Borrower held by Bank; 
 (g) Ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell (in the manner provided for herein) the Collateral. Bank is hereby granted a license or
other right, solely pursuant to the provisions of this Section 9.1, to use, without charge, Borrower’s labels, patents, copyrights, rights of use of any name, trade secrets, trade names, trademarks, service marks, and advertising matter,
or any property of a similar nature, as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with Bank’s exercise of its rights under this Section 9.1,
Borrower’s rights under all licenses and all franchise agreements shall inure to Bank’s benefit; 
 (h) Sell
the Collateral at either a public or private sale, or both, by way of one or more contracts or transactions, for cash or on terms, in such manner and at such places (including Borrower’s premises) as Bank determines is commercially reasonable,
and apply any proceeds to the Obligations in whatever manner or order Bank deems appropriate. Bank may sell the Collateral without giving any warranties as to the Collateral. Bank may specifically disclaim any warranties of title or the like. This
procedure will not be considered adversely to affect the commercial reasonableness of any sale of the Collateral. If Bank sells any of the Collateral upon credit, Borrower will be credited only with payments actually made by the purchaser, received
by Bank, and applied to the indebtedness of the purchaser. If the purchaser fails to pay for the Collateral, Bank may resell the Collateral and Borrower shall be credited with the proceeds of the sale; 

(i) Bank may credit bid and purchase at any public sale; 

(j) Apply for the appointment of a receiver, trustee, liquidator or conservator of the Collateral, without notice and without
regard to the adequacy of the security for the Obligations and without regard to the solvency of Borrower, any guarantor or any other Person liable for any of the Obligations; and 

(k) Any deficiency that exists after disposition of the Collateral as provided above will be paid immediately by Borrower.

 Bank may comply with any applicable state or federal law requirements in connection with a disposition of the Collateral and
compliance will not be considered adversely to affect the commercial reasonableness of any sale of the Collateral. 

9.2 Power of Attorney. Effective only upon the occurrence and during the continuance of an Event of Default, Borrower
hereby irrevocably appoints Bank (and any of Bank’s designated officers, or employees) as Borrower’s true and lawful attorney to: (a) send requests for verification of Accounts or notify account debtors of Bank’s security
interest in the Accounts; (b) endorse Borrower’s name on any checks or other forms of payment or security that may come into Bank’s possession; (c) sign Borrower’s name on any invoice or bill of lading

  
 17 

 
relating to any Account, drafts against account debtors, schedules and assignments of Accounts, verifications of Accounts, and notices to account debtors; (d) dispose of any Collateral;
(e) make, settle, and adjust all claims under and decisions with respect to Borrower’s policies of insurance; (f) settle and adjust disputes and claims respecting the accounts directly with account debtors, for amounts and upon terms
which Bank determines to be reasonable; and (g) file, in its sole discretion, one or more financing or continuation statements and amendments thereto, relative to any of the Collateral; provided Bank may exercise such power of attorney to sign
the name of Borrower on any of the documents described in clause (g) above, regardless of whether an Event of Default has occurred. The appointment of Bank as Borrower’s attorney in fact, and each and every one of Bank’s rights and
powers, being coupled with an interest, is irrevocable until all of the Obligations have been fully repaid and performed and Bank’s obligation to provide advances hereunder is terminated. 

9.3 Accounts Collection. At any time after the occurrence and during the continuation of an Event of Default, Bank may
notify any Person owing funds to Borrower of Bank’s security interest in such funds and verify the amount of such Account. Borrower shall collect all amounts owing to Borrower for Bank, receive in trust all payments as Bank’s trustee, and
immediately deliver such payments to Bank in their original form as received from the account debtor, with proper endorsements for deposit. 
 9.4 Bank Expenses. If Borrower fails to pay any amounts or furnish any required proof of payment due to third persons or entities, as required under the terms of this Agreement, then Bank
may do any or all of the following after reasonable notice to Borrower: (a) make payment of the same or any part thereof; and/or (b) obtain and maintain insurance policies of the type discussed in Section 6.5 of this Agreement, and
take any action with respect to such policies as Bank deems prudent. Any amounts so paid or deposited by Bank shall constitute Bank Expenses, shall be immediately due and payable, and shall bear interest at the then applicable rate hereinabove
provided, and shall be secured by the Collateral. Any payments made by Bank shall not constitute an agreement by Bank to make similar payments in the future or a waiver by Bank of any Event of Default under this Agreement. 

9.5 Bank’s Liability for Collateral. Bank has no obligation to clean up or otherwise prepare the Collateral for sale.
All risk of loss, damage or destruction of the Collateral shall be borne by Borrower. 
 9.6 No Obligation to Pursue
Others. Bank has no obligation to attempt to satisfy the Obligations by collecting them from any other person liable for them and Bank may release, modify or waive any collateral provided by any other Person to secure any of the Obligations, all
without affecting Bank’s rights against Borrower. Borrower waives any right it may have to require Bank to pursue any other Person for any of the Obligations. 
 9.7 Remedies Cumulative. Bank’s rights and remedies under this Agreement, the Loan Documents, and all other agreements shall be cumulative. Bank shall have all other rights and remedies
not inconsistent herewith as provided under the Code, by law, or in equity. No exercise by Bank of one right or remedy shall be deemed an election, and no waiver by Bank of any Event of Default on Borrower’s part shall be deemed a continuing
waiver. No delay by Bank shall constitute a waiver, election, or acquiescence by it. No waiver by Bank shall 

  
 18 

 
be effective unless made in a written document signed on behalf of Bank and then shall be effective only in the specific instance and for the specific purpose for which it was given. Borrower
expressly agrees that this Section 9.7 may not be waived or modified by Bank by course of performance, conduct, estoppel or otherwise. 
 9.8 Demand; Protest. Except as otherwise provided in this Agreement, Borrower waives demand, protest, notice of protest, notice of default or dishonor, notice of payment and nonpayment and
any other notices relating to the Obligations. 
 10. NOTICES. 

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

 

			
	If to Borrower:	  	 Celator Pharmaceuticals, Inc.

303B College Road East
 Princeton, NJ
08540

		
		  	Attn: David S. Wood
		  	FAX: (604) 708-5883
		
	If to Bank:	  	Square 1 Bank
		  	406 Blackwell Street, Suite 240
		  	Durham, North Carolina 27701
		  	Attn: Loan Operations Manager
		  	FAX: (919) 314-3080
		
	with a copy to:	  	 Square 1 Bank
 406 Blackwell
Street, Suite 240
 Durham, NC 27701

		
		  	Attn: Basil Kushner
		  	FAX: (919) 314-3110

 The parties hereto may change the address at which they are to receive notices hereunder, by notice in
writing in the foregoing manner given to the other. 
 11. CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER. 

This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of North Carolina, without regard to principles of
conflicts of law. Jurisdiction shall lie in the State of North Carolina. All disputes, controversies, claims, actions and similar proceedings 

  
 19 

 
arising with respect to Borrower’s account or any related agreement or transaction shall be brought in the General Court of Justice of North Carolina sitting in Durham County, North Carolina
or the United States District Court for the Middle District of North Carolina, except as provided below with respect to arbitration of such matters. BANK AND BORROWER EACH ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL ONE, BUT THAT
IT MAY BE WAIVED. EACH OF THEM, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT, WITH COUNSEL OF THEIR CHOICE, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN ANY LITIGATION BASED UPON
OR ARISING OUT OF THIS AGREEMENT OR ANY RELATED INSTRUMENT OR LOAN DOCUMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR ANY COURSE OF CONDUCT, DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN), OR ACTION OF ANY OF THEM. THESE PROVISIONS
SHALL NOT BE DEEMED TO HAVE BEEN MODIFIED IN ANY RESPECT OR RELINQUISHED BY BANK OR BORROWER, EXCEPT BY A WRITTEN INSTRUMENT EXECUTED BY EACH OF THEM. If the jury waiver set forth in this Section 11 is not enforceable, then any dispute,
controversy, claim, action or similar proceeding arising out of or relating to this Agreement, the Loan Documents or any of the transactions contemplated therein shall be settled by final and binding arbitration held in Durham County, North Carolina
in accordance with the then current Commercial Arbitration Rules of the American Arbitration Association by one arbitrator appointed in accordance with those rules. The arbitrator shall apply North Carolina law to the resolution of any dispute,
without reference to rules of conflicts of law or rules of statutory arbitration. Judgment upon any award resulting from arbitration may be entered into and enforced by any state or federal court having jurisdiction thereof. Notwithstanding the
foregoing, the parties may apply to any court of competent jurisdiction for preliminary or interim equitable relief, or to compel arbitration in accordance with this Section. The costs and expenses of the arbitration, including without limitation,
the arbitrator’s fees and expert witness fees, and reasonable attorneys’ fees, incurred by the parties to the arbitration may be awarded to the prevailing party, in the discretion of the arbitrator, or may be apportioned between the
parties in any manner deemed appropriate by the arbitrator. Unless and until the arbitrator decides that one party is to pay for all (or a share) of such costs and expenses, both parties shall share equally in the payment of the arbitrator’s
fees as and when billed by the arbitrator. 
 12. GENERAL PROVISIONS. 

12.1 Successors and Assigns. This Agreement shall bind and inure to the benefit of the respective successors and permitted
assigns of each of the parties and shall bind all persons who become bound as a debtor to this Agreement; provided, however, that neither this Agreement nor any rights hereunder may be assigned by Borrower without Bank’s prior written consent,
which consent may be granted or withheld in Bank’s sole discretion. Bank shall have the right without the consent of or notice to Borrower to sell, assign, transfer, negotiate, or grant participation in all or any part of, or any interest in,
Bank’s obligations, rights and benefits hereunder. 
 12.2 Indemnification. Borrower shall defend, indemnify
and hold harmless Bank and its officers, employees, and agents against: (a) all obligations, demands, claims, and liabilities claimed or asserted by any other party in connection with the transactions contemplated

  
 20 

 
by this Agreement; and (b) all losses or Bank Expenses in any way suffered, incurred, or paid by Bank, its officers, employees and agents as a result of or in any way arising out of,
following, or consequential to transactions between Bank and Borrower whether under this Agreement, or otherwise (including without limitation reasonable attorneys fees and expenses), except for losses caused by Bank’s gross negligence or
willful misconduct. 
 12.3 Time of Essence. Time is of the essence for the performance of all obligations set
forth in this Agreement. 
 12.4 Severability of Provisions. Each provision of this Agreement shall be severable
from every other provision of this Agreement for the purpose of determining the legal enforceability of any specific provision. 
 12.5 Amendments in Writing, Integration. All amendments to or terminations of this Agreement or the other Loan Documents must be in writing. All prior agreements, understandings,
representations, warranties, and negotiations between the parties hereto with respect to the subject matter of this Agreement and the other Loan Documents, if any, are merged into this Agreement and the Loan Documents. 

12.6 Counterparts. This Agreement may be executed in any number of counterparts and by different parties on separate
counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Agreement. Executed copies of the signature pages of this Agreement sent
by facsimile or transmitted electronically in Portable Document Format (“PDF”), or any similar format, shall be treated as originals, fully binding and with full legal force and effect, and the parties waive any rights they may have to
object to such treatment. 
 12.7 Survival. All covenants, representations and warranties made in this Agreement
shall continue in full force and effect so long as any Obligations remain outstanding or Bank has any obligation to make any Credit Extension to Borrower. The obligations of Borrower to indemnify Bank with respect to the expenses, damages, losses,
costs and liabilities described in Section 12.2 shall survive until all applicable statute of limitations periods with respect to actions that may be brought against Bank have run. 

12.8 Confidentiality. In handling any confidential information, Bank and Borrower and all employees and agents of such
party shall exercise the same degree of care that such party exercises with respect to its own proprietary information of the same types to maintain the confidentiality of any non-public information thereby received or received pursuant to this
Agreement except that disclosure of such information may be made (i) in the case of Bank, to the subsidiaries or Affiliates of Bank or Borrower in connection with their present or prospective business relations with Borrower, (ii) in the
case of Bank, to prospective transferees or purchasers of any interest in the Credit Extensions, provided that they have entered into a comparable confidentiality agreement in favor of Borrower and have delivered a copy to Borrower, (iii) as
required by law, regulations, rule or order, subpoena, judicial order or similar order, (iv) in the case of Bank, as may be required in connection with the examination, audit or similar investigation of Bank and (v) as Bank may determine
in connection with the enforcement of any remedies hereunder. Confidential information hereunder shall not include information that either: (a) is 

  
 21 

 
in the public domain or in the knowledge or possession of the receiving party when disclosed to such party, or becomes part of the public domain after disclosure to such receiving party through
no fault of such receiving party; or (b) is disclosed to such receiving party by a third party, provided such receiving party does not have actual knowledge that such third party is prohibited from disclosing such information. 

******** 

  
 22 

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

			
	CELATOR PHARMACEUTICALS, INC.
		
	 By:
	 	  

 
			
		
	 Name:
	 	  

 
			
		
	 Title:
	 	  

 
			
	
	SQUARE 1 BANK
		
	 By:
	 	  

 
			
		
	 Name:
	 	  

 
			
		
	 Title:
	 	  

  
 23 

 EXHIBIT A 
 DEFINITIONS 
 “Accounts” means all presently existing and hereafter arising accounts,
contract rights, payment intangibles and all other forms of obligations owing to Borrower arising out of the sale or lease of goods (including, without limitation, the licensing of software and other technology) or the rendering of services by
Borrower and any and all credit insurance, guaranties, and other security therefore, as well as all merchandise returned to or reclaimed by Borrower and Borrower’s Books relating to any of the foregoing. 

“Affiliate” means, with respect to any Person, any Person that owns or controls directly or indirectly such Person, any Person that controls or
is controlled by or is under common control with such Person, and each of such Person’s senior executive officers, directors, and general partners. 
 “Authorized Officer” means someone designated as such in the corporate resolution provided by Borrower to Bank in which this Agreement and the transactions contemplated hereunder are authorized
by Borrower’s board of directors. If Borrower provides subsequent corporate resolutions to Bank after the Closing Date, the individual(s) designated as “Authorized Officer(s)” in the most-recently provided resolution shall be the only
“Authorized Officers” for purposes of this Agreement. 
 “Availability End Date” means December 15, 2012. 

“Bank Expenses” means all reasonable costs or expenses (including reasonable attorneys’ fees and expenses) incurred in connection with the
preparation, negotiation, administration, and enforcement of the Loan Documents; reasonable Collateral audit fees; and Bank’s reasonable attorneys’ fees and expenses (whether generated in-house or by outside counsel) incurred in amending,
enforcing or defending the Loan Documents (including fees and expenses of appeal), incurred before, during and after an Insolvency Proceeding, whether or not suit is brought. 
 “Baxter” means Baxter Oncology GmbH. 
 “Baxter Facility” means the premises of
Baxter’s manufacturing facility, located at Kantstrasse 2, 33790 Halle, Westphalia, Germany. 
 “Borrower’s Books” means all
of Borrower’s books and records including: ledgers; records concerning Borrower’s assets or liabilities, the Collateral, business operations or financial condition; and all computer programs, or tape files, and the equipment, containing
such information. 
 “Business Day” means any day that is not a Saturday, Sunday, or other day on which banks in the State of North
Carolina are authorized or required to close. 
 “Cash” means unrestricted cash and cash equivalents. 

“Celator Corp.” means Celator Pharmaceuticals Corp., Borrower’s wholly owned Subsidiary organized under the laws of Nova Scotia.

 “Celator UK” means Celator UK, Borrower’s wholly owned Subsidiary organized under the laws of the United Kingdom. 

“Change in Control” shall mean a transaction other than a bona fide equity financing or series of financings on terms and from investors
reasonably acceptable to Bank in which any “person” or “group” (within the meaning of Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934) becomes the “beneficial owner” (as defined in

  
 1 

 
Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of a sufficient number of shares of all classes of stock then outstanding of Borrower ordinarily entitled to vote in
the election of directors, empowering such “person” or “group” to elect a majority of the Board of Directors of Borrower, who did not have such power before such transaction. 

“Closing Date” means the date of this Agreement. 
 “Code” means the North Carolina Uniform Commercial Code as amended or supplemented from time to time. 
 “Collateral” means the property described on Exhibit B attached hereto and all Negotiable Collateral to the extent not described on Exhibit B, except to the extent (i) any such property is
non-assignable by its terms without the consent of the licensor thereof or another party (but only to the extent such prohibition on transfer is enforceable under applicable law, including, without limitation, §25-9-406 and §25-9-408 of
the Code), (ii) the granting of a security interest in any such property is contrary to applicable law, provided that upon the cessation of any such restriction or prohibition, such property shall automatically become part of the Collateral,
(iii) any such property constitutes the capital stock of a controlled foreign corporation (as defined in the IRC), in excess of 65% of the voting power of all classes of capital stock of such controlled foreign corporations entitled to vote, or
(iv) any such property is property (including any attachments, accessions or replacements) that is subject to a Lien that is permitted pursuant to clause (c) of the definition of Permitted Liens, if the grant of a security interest with
respect to such property pursuant to this Agreement would be prohibited by the agreement creating such Permitted Lien or would otherwise constitute a default thereunder, provided, that such property will be deemed “Collateral” hereunder
upon the termination and release of such Permitted Lien. 
 “Collateral State” means the state or states where the Collateral is
located, which is New Jersey. 
 “Contingent Obligation” means, as applied to any Person, any direct or indirect liability, contingent
or otherwise, of that Person with respect to (i) any indebtedness, lease, dividend, letter of credit or other obligation of another, including, without limitation, any such obligation directly or indirectly guaranteed, endorsed, co-made or
discounted or sold with recourse by that Person, or in respect of which that Person is otherwise directly or indirectly liable; (ii) any obligations with respect to undrawn letters of credit, corporate credit cards or merchant services issued
for the account of that Person; and (iii) all obligations arising under any interest rate, currency or commodity swap agreement, interest rate cap agreement, interest rate collar agreement, or other agreement or arrangement designated to
protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; provided, however, that the term “Contingent Obligation” shall not include endorsements for collection or deposit in the ordinary course
of business. The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determined amount of the primary obligation in respect of which such Contingent Obligation is made or, if not stated or determinable, the
maximum reasonably anticipated liability in respect thereof as determined by such Person in good faith; provided, however, that such amount shall not in any event exceed the maximum amount of the obligations under the guarantee or other support
arrangement. 
 “Copyrights” means any and all copyright rights, copyright applications, copyright registrations and like protections
in each work or authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret, now or hereafter existing, created, acquired or held. 

“Credit Extension” means each Term Loan or any other extension of credit, by Bank to or for the benefit of Borrower hereunder. 

“Equipment” means all present and future machinery, equipment, tenant improvements, furniture, fixtures, vehicles, tools, parts and attachments
in which Borrower has any interest. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the
regulations thereunder. 

  
 2 

 “Event of Default” has the meaning assigned in Article 8. 

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

“Indebtedness” means (a) all indebtedness for borrowed money or the deferred purchase price of property or services, including without
limitation reimbursement and other obligations with respect to surety bonds and letters of credit, (b) all obligations evidenced by notes, bonds, debentures or similar instruments, (c) all capital lease obligations, and (d) all
Contingent Obligations, including but not limited to any sublimit contained herein. 
 “Insolvency Proceeding” means any proceeding
commenced by or against any Person or entity under any provision of the United States Bankruptcy Code, as amended, or under any other bankruptcy or insolvency law, including assignments for the benefit of creditors, formal or informal moratoria,
compositions, extension generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief. 

“Inventory” means all present and future inventory in which Borrower has any interest. 

“Investment” means any beneficial ownership of (including stock, partnership or limited liability company interest or other securities) any
Person, or any loan, advance or capital contribution to any Person. 
 “Investment Agreement” means, collectively, Borrower’s
stock purchase and other agreement(s) pursuant to which Borrower most recently issued its preferred stock. 
 “IRC” means the Internal
Revenue Code of 1986, as amended, and the regulations thereunder. 
 “Letter of Credit” means a commercial or standby letter of credit
or similar undertaking issued by Bank at Borrower’s request. 
 “Lien” means any mortgage, lien, deed of trust, charge, pledge,
security interest or other encumbrance. 
 “Loan Documents” means, collectively, this Agreement, any note or notes executed by
Borrower, and any other document, instrument or agreement entered into in connection with this Agreement, all as amended or extended from time to time. 
 “Material Adverse Effect” means a material adverse effect on: (i) the operations, business or financial condition of Borrower and its Subsidiaries taken as a whole; (ii) the ability of
Borrower to repay the Obligations or otherwise perform its obligations under the Loan Documents; or (iii) Borrower’s interest in, or the value, perfection or priority of Bank’s security interest in the Collateral. 

“Negotiable Collateral” means all of Borrower’s present and future letters of credit of which it is a beneficiary, drafts, instruments
(including promissory notes), securities, documents of title, and chattel paper, and Borrower’s Books relating to any of the foregoing. 

“Obligations” means all debt, principal, interest, Bank Expenses and other amounts owed to Bank by Borrower pursuant to this Agreement or any
other agreement, whether absolute or contingent, due or to become due, now existing or hereafter arising, including any interest that accrues after the commencement of an Insolvency Proceeding and including any debt, liability, or obligation owing
from Borrower to others that Bank may have obtained by assignment or otherwise. 
 “Patents” means all patents, patent applications
and like protections including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same. 

  
 3 

 “Periodic Payments” means all installments or similar recurring payments that Borrower may now or
hereafter become obligated to pay to Bank pursuant to the terms and provisions of any instrument, or agreement now or hereafter in existence between Borrower and Bank. 
 “Permitted Indebtedness” means: 
 (a) Indebtedness of Borrower in
favor of Bank arising under this Agreement or any other Loan Document; 
 (b) Indebtedness existing on the Closing Date
and disclosed in the Schedule; 
 (c) Indebtedness not to exceed $250,000 in the aggregate in any fiscal year of Borrower
secured by a lien described in clause (c) of the defined term “Permitted Liens” provided such Indebtedness does not exceed at the time it is incurred the lesser of the cost or fair market value of the property financed with such
Indebtedness; 
 (d) Subordinated Debt; 
 (e) Indebtedness to trade creditors incurred in the ordinary course of business; and 
 (f) Extensions, refinancings and renewals of any items of Permitted Indebtedness, provided that the principal amount is not increased or the terms modified to impose more burdensome terms upon
Borrower or its Subsidiary, as the case may be. 
 “Permitted Investment” means: 

(a) Investments existing on the Closing Date disclosed in the Schedule; 

(b) (i) Marketable direct obligations issued or unconditionally guaranteed by the United States of America or any agency or any
State thereof maturing within one year from the date of acquisition thereof, (ii) commercial paper maturing no more than one year from the date of creation thereof and currently having rating of at least A-2 or P-2 from either
Standard & Poor’s Corporation or Moody’s Investors Service, (iii) Bank’s certificates of deposit maturing no more than one year from the date of investment therein, and (iv) Bank’s money market accounts;
(v) Investments in regular deposit or checking accounts held with Bank or subject to a control agreement in favor of Bank; and (vi) Investments consistent with any investment policy adopted by the Borrower’s board of directors;

 (c) Repurchases of stock from former employees or directors of Borrower under the terms of applicable repurchase
agreements (i) in an aggregate amount not to exceed $250,000 in any fiscal year, provided that no Event of Default has occurred, is continuing or would exist after giving effect to the repurchases, or (ii) in any amount where the
consideration for the repurchase is the cancellation of indebtedness owed by such former employees to Borrower regardless of whether an Event of Default exists; 
 (d) Investments accepted in connection with Permitted Transfers; 

(e) Investments of Subsidiaries in or to other Subsidiaries or Borrower and Investments by Borrower in Subsidiaries not to exceed
$250,000 in the aggregate in any fiscal year; 
 (f) Investments not to exceed $250,000 outstanding in the aggregate at
any time consisting of (i) travel advances and employee relocation loans and other employee loans and advances in the ordinary course of business, and (ii) loans to employees, officers or directors relating to the purchase of equity
securities of Borrower or its Subsidiaries pursuant to employee stock purchase plan agreements approved by Borrower’s Board of Directors; 

  
 4 

 (g) Investments in unfinanced capital expenditures in any fiscal year, not to exceed
$250,000; 
 (h) Investments (including debt obligations) received in connection with the bankruptcy or reorganization of
customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of Borrower’s business; 

(i) Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers
who are not Affiliates, in the ordinary course of business, provided that this subparagraph (h) shall not apply to Investments of Borrower in any Subsidiary; 
 (j) Joint ventures or strategic alliances in the ordinary course of Borrower’s business consisting of the non-exclusive licensing of technology, the development of technology or the providing
of technical support, provided that any cash Investments by Borrower do not exceed $250,000 in the aggregate in any fiscal year; and 
 (k) Investments permitted under Section 7.3. 
 “Permitted Liens” means the
following: 
 (a) Any Liens existing on the Closing Date and disclosed in the Schedule (excluding Liens to be satisfied
with the proceeds of the Credit Extensions) or arising under this Agreement, the other Loan Documents, or any other agreement in favor of Bank; 
 (b) Liens for taxes, fees, assessments or other governmental charges or levies, either not delinquent or being contested in good faith by appropriate proceedings and for which Borrower maintains
adequate reserves; 
 (c) Liens not to exceed $250,000 in the aggregate in any fiscal year of Borrower (i) upon or
in any Equipment (other than Equipment financed by a Credit Extension) acquired or held by Borrower or any of its Subsidiaries to secure the purchase price of such Equipment or indebtedness incurred solely for the purpose of financing the
acquisition or lease of such Equipment, or (ii) existing on such Equipment at the time of its acquisition, in each case provided that the Lien is confined solely to the property so acquired and improvements thereon, and the proceeds of such
Equipment; 
 (d) Liens incurred in connection with the extension, renewal or refinancing of the indebtedness secured by
Liens of the type described in clauses (a) through (c) above, provided that any extension, renewal or replacement Lien shall be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness being
extended, renewed or refinanced does not increase; 
 (e) Liens arising from judgments, decrees or attachments in
circumstances not constituting an Event of Default under Sections 8.4 (attachment) or 8.7 (judgments); and 
 (f) Liens
securing Subordinated Debt. 
 “Permitted Transfer” means the conveyance, sale, lease, transfer or disposition by Borrower or any
Subsidiary of: 
 (a) Inventory in the ordinary course of business; 

(b) licenses and similar arrangements for the use of the property of Borrower or its Subsidiaries in the ordinary course of
business; 
 (c) worn-out, surplus or obsolete Equipment not financed with the proceeds of Credit Extensions; 

  
 5 

 (d) grants of security interests and other Liens that constitute Permitted Liens;

 (e) that certain Equipment owned by Celator Corp. which is currently on consignment at Biosurplus in Fremont,
California, with a net book value of $381,028; and 
 (f) other assets of Borrower or its Subsidiaries that do not in the
aggregate exceed $250,000 during any fiscal year. 
 “Person” means any individual, sole proprietorship, partnership, limited
liability company, joint venture, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or governmental agency. 

“Prime Rate” means the variable rate of interest, per annum, most recently announced by Bank, as its “prime rate,” whether or not
such announced rate is the lowest rate available from Bank. 
 “Redpoint Transaction” means that certain contemplated business
combination between Borrower and Redpoint Bio Corporation (“Redpoint”), as described more fully in that certain Exchange Transaction Agreement between Borrower and Redpoint dated on or about June 14, 2012, whereupon Borrower shall
become a wholly owned subsidiary of Redpoint and the existing stockholders of Borrower will own approximately 97.7% of Borrower and Redpoint. 

“Responsible Officer” means each of the Chief Executive Officer, the Chief Operating Officer, the Chief Financial Officer, Vice President of
Finance and the Controller of Borrower, as well as any other officer or employee identified in as an Authorized Officer in the corporate resolution delivered by Borrower to Bank in connection with this Agreement. 

“Schedule” means the schedule of exceptions attached hereto and approved by Bank, if any. 

“SOS Reports” means the official reports from the Secretaries of State of each Collateral State, the state where Borrower’s chief
executive office is located, the state of Borrower’s formation and other applicable federal, state or local government offices identifying all current security interests filed in the Collateral and Liens of record as of the date of such report.

 “Subordinated Debt” means any debt incurred by Borrower that is subordinated in writing to the debt owing by Borrower to Bank on
terms reasonably acceptable to Bank (and identified as being such by Borrower and Bank). 
 “Subsidiary” means any corporation,
partnership or limited liability company or joint venture in which (i) any general partnership interest or (ii) more than 50% of the stock, limited liability company interest or joint venture of which by the terms thereof ordinary voting
power to elect the Board of Directors, managers or trustees of the entity, at the time as of which any determination is being made, is owned by Borrower, either directly or through an Affiliate. 

“Term Loan Maturity Date” means June 15, 2015. 
 “Trademarks” means any trademark and servicemark rights, whether registered or not, applications to register and registrations of the same and like protections, and the entire goodwill of the
business of Borrower connected with and symbolized by such trademarks. 

  
 6 

			
		
	DEBTOR:	  	CELATOR PHARMACEUTICALS, INC.
		
	SECURED PARTY:	  	SQUARE 1 BANK

 EXHIBIT B 
 COLLATERAL DESCRIPTION ATTACHMENT TO LOAN AND SECURITY AGREEMENT 
 All personal property of
Borrower (herein referred to as “Borrower” or “Debtor”) whether presently existing or hereafter created or acquired, and wherever located, including, but not limited to: 

(a) all accounts (including health-care-insurance receivables), chattel paper (including tangible and electronic chattel paper),
deposit accounts, documents (including negotiable documents), equipment (including all accessions and additions thereto), financial assets, general intangibles (including patents, trademarks, copyrights, goodwill, payment intangibles, domain names,
and software), goods (including fixtures), instruments (including promissory notes), inventory (including all goods held for sale or lease or to be furnished under a contract of service, and including returns and repossessions), investment property
(including securities and securities entitlements), letter of credit rights, money, and all of Debtor’s books and records with respect to any of the foregoing, and the computers and equipment containing said books and records; 

(b) any and all cash proceeds and/or noncash proceeds of any of the foregoing, including, without limitation, insurance proceeds,
and all supporting obligations and the security therefor or for any right to payment. All terms above have the meanings given to them in the North Carolina Uniform Commercial Code, as amended or supplemented from time to time, including revised
Division 9 of the Uniform Commercial Code-Secured Transactions. 
 Notwithstanding the foregoing, the Collateral shall not
include any of the intellectual property, in any medium, of any kind or nature whatsoever, now or hereafter owned or acquired or received by Borrower, or in which Borrower now holds or hereafter acquires or receives any right or interest
(collectively, the “Intellectual Property”); provided, however, that the Collateral shall include all accounts and general intangibles that consist of rights to payment and proceeds from the sale, licensing or disposition of all or any
part, or rights in, the foregoing (the “Rights to Payment”). 
 Notwithstanding the foregoing, if a judicial authority
(including a U.S. Bankruptcy Court) holds that a security interest in the underlying Intellectual Property is necessary to have a security interest in the Rights to Payment, then the Collateral shall automatically, and effective as of June 15,
2012, include the Intellectual Property to the extent and only to the extent necessary to permit perfection of Bank’s security interest in the Rights to Payment, and further provided, however, that Bank’s enforcement rights with respect to
any security interest in the Intellectual Property shall be absolutely limited to the Rights to Payment only, and Bank shall have no recourse whatsoever with respect to the underlying Intellectual Property. 

  
 1 

 EXHIBIT C 
 LOAN ADVANCE/PAYDOWN REQUEST FORM 
 [Please refer to New Borrower Kit]

 EXHIBIT D 
 COMPLIANCE CERTIFICATE 
 [Please refer to New Borrower Kit]

  
 1 

 SCHEDULE OF EXCEPTIONS 
 Permitted Indebtedness (Exhibit A) – None 
 Permitted Investments (Exhibit A)
– None. 
 Permitted Liens (Exhibit A) – None. 
 Prior Names (Section 5.5) – None. 
 Litigation (Section 5.6) – None.

 Inbound Licenses (Section 5.12) – None. 

  
 1 

 CORPORATE RESOLUTION 
 The undersigned duly elected and qualified [Assistant] Secretary of Celator Pharmaceuticals, Inc. (the “Company”) do hereby certify that the following is a true and correct copy of certain
resolutions adopted at a meeting of the Company’s Board of Directors held on
                                        
in accordance with applicable law and the Company’s bylaws, and that such resolutions are now unmodified and in full force and effect: 

BE IT RESOLVED, that: 
  

	1)	Any one (1) of the following, duly elected officers of the Company (each, an “Authorized Officer”) whose genuine original signature appears next to his
or her name is authorized to act for, on behalf of, and in the name of the Company in connection with the resolutions below: 

  

					
	 Title
	 	 Name
	 	 Authorized Signature

	  
	 	  
	 	  

	  
	 	  
	 	  

	  
	 	  
	 	  

	  
	 	  
	 	  

  

	2)	Any Authorized Officer may: 

(a) Borrow money from time to time from Square 1 Bank (the “Bank”), and may negotiate and procure loans, letters of credit,
foreign exchange contracts and other financial accommodations from Bank, including without limitation, that certain Loan and Security Agreement dated as of June 15, 2012, and also to execute and deliver to Bank one or more renewals, extensions,
or modifications thereof; 
 (b) Give security for any liabilities of the Company to Bank by grant, security interest,
assignment, lien, deed of trust or mortgage upon any real or personal property, tangible or intangible of the Company; 
 (c)
Purchase, sell, exchange, assign, endorse for transfer and/or deliver certificates and/or instruments representing stocks, bonds, evidences of Indebtedness or other securities owned by the Company, whether or not registered in the name of the
Company; 
 (d) Discount with the Bank, commercial or other business paper belonging to the Company made or drawn by or upon
third parties, without limit as to amount; 
 (e) Authorize and direct the Bank to pay the proceeds of any such loans or
discounts as directed by the persons so authorized to sign; 
 (f) Issue a warrant or warrants to purchase the Company’s
capital stock; 
 (g) Execute and deliver in form and content as may be required by the Bank any and all notes, evidences of
indebtedness, applications for letters of credit, guaranties, subordination agreements, loan and security agreements, financing statements, assignments, liens, deeds of trust, mortgages, trust receipts and other agreements, instruments or documents
to carry out the purposes of these Resolutions, any or all of which may relate to all or to substantially all of the Company’s property and assets; and 
 (h) Designate additional or alternate individuals as being authorized to request loan advances, to do and perform such other acts and things, to pay any and all fees and costs, and to execute and deliver
such other documents and agreements as he or she may in his or her discretion deem reasonably necessary or proper in order to carry into effect the provisions of these resolutions. 

 

	3)	Any and all acts authorized pursuant to these resolutions and performed prior to the passage of these resolutions are hereby ratified and approved, and the authority
conferred herein may be exercised singly by any such officer, and these resolutions shall continue in full force and effect until written notice of modification or revocation is received and accepted by Bank (such notice to have no effect on any
action previously taken by the Bank in reliance on these resolutions). Bank may rely upon any form of notice, which it in good faith believes to be genuine or what it purports to be. 

  
 2 

	4)	The resolutions are in full force and effect as of the date of this Certificate and are intended to replace, as of this date, any resolutions previously given by the
Company to Bank in connection with the matters described herein; these resolutions and any borrowings or financial accommodations under these resolutions have been properly noted in the corporate books and records, and have not been rescinded,
revoked or modified; neither the foregoing resolutions nor any actions to be taken pursuant to them are or will be in contravention of any provision of the articles of incorporation or bylaws of the Company or of any agreement, indenture or other
instrument to which the Company is a party or by which it is bound; and to the extent the articles of incorporation or bylaws of the Company or any agreement, indenture or other instrument to which the Company is a party or by which it is bound
require the vote or consent of shareholders of the Company to authorize any act, matter or thing described in the foregoing resolutions, such vote or consent has been obtained. 

 In Witness Whereof, I have affixed my name as [Assistant] Secretary and have caused the corporate seal (where available) of said Company to be affixed on
                    , 2012. 
  

                   
                                         
                                         
                                         
  
 [Assistant] Secretary* 
 *If the certifying officer is designated as the only signer in these resolutions then another corporate officer must also sign. 

 

                   
                                         
                                         
                                         
  

  
 3 

 USA PATRIOT ACT 

NOTICE 

OF 

CUSTOMER IDENTIFICATION 
 IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT 
 To help the
government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. 

WHAT THIS MEANS FOR YOU: when you open an account, we will ask your name, address, date of birth, and other information that will allow us to identify
you. We may also ask to see your driver’s license or other identifying documents. 

  
 4 

					
	SQUARE 1 BANK	 	 	 	 
	AUTOMATIC DEBIT
AUTHORIZATION
	 Member FDIC

 
	 	 

 

					
	 To:   Square 1 Bank

	 
	
Re:   Loan #
                                         
                                       

	 
	 You are hereby authorized and instructed to charge account No.
                                         
                                        in the name
of
 Celator Pharmaceuticals, Inc.

	for facility fees, principal, interest and other payments due
on above referenced loan as set forth below and credit the loan referenced above.
	 
	
    X     Debit the Facility Fee as it becomes due according to the terms of the Loan and Security Agreement and any
renewals or amendments thereof.

	 
	
    X     Debit each interest payment as it becomes due according to the terms of the Loan and Security Agreement and any
renewals or amendments thereof.

	 
	
    X     Debit each principal payment as it becomes due according to the terms of the Loan and Security Agreement and
any renewals or amendments thereof.

	 
	
    X     Debit each payment for Bank Expenses as it becomes due according to the terms of the Loan and Security
Agreement and any renewals or amendments thereof.

	 
	 This Authorization is to remain in full force and effect until revoked in writing.

 

  

					
	 Borrower Signature
  
	 	Date
	 	 
	 	 	 
	 	 	 

  
 5 

			
	Phone
                                        
	  	SQUARE 1 BANK
	 Fax
                                         
   
  
	  	CLIENT AUTHORIZATION

 General Authorization 
 I hereby authorize Square 1 Bank to use my company name, logo, and information relating to our banking relationship in its marketing and advertising campaigns which is intended for Square 1 Bank’s
customers, prospects and shareholders. 
 Square 1 Bank will forward any advertising or article including client for prior review and approval.

  

	
	  

	Signature
	
	  

	Printed Name                         Title
	
	 Celator Pharmaceuticals, Inc.

	Company
	
	 303B College Road East

	Mailing Address
	
	 Princeton, NJ 08540

	City, State, Zip Code
	
	  

	Phone Number
	
	  

	Fax Number
	
	  

	E-Mail
	
	  

	Date

  
 6Separation Agreement and Release of Claims dated November 12, 2012

 Exhibit 10.1 
 SEPARATION AGREEMENT AND RELEASE OF CLAIMS 
 This Separation
Agreement and Release of Claims (“Agreement”) is made by and between Douglas W. Kohrs (“Executive”) and Tornier, Inc. (“Tornier” or the “Company”). 

Tornier and Executive (collectively the “Parties”) wish to end their employment relationship in an honorable, dignified and
orderly manner. Recognizing that termination of employment generally implicates potential personal transition and legal issues, Tornier is willing to provide Executive with additional benefits to ease Executive’s transition in exchange for a
full and final release of claims. Toward that end, Tornier and Executive have agreed to separate effective November 12, 2012, according to the terms set forth in this Agreement. 

Executive does not believe that he has any claims against the Company, but Executive nevertheless agrees to resolve any actual and
potential claims arising out of his employment with and separation from the Company by entering into this Agreement. 
 IN
CONSIDERATION OF THE FOREGOING RECITALS AND THE MUTUAL PROMISES CONTAINED IN THIS AGREEMENT, EXECUTIVE AGREES AS FOLLOWS: 
  

	1.	Definitions. Subject to the following defined terms, all words used in this Agreement are to have their plain meanings in ordinary English.

  

	 	A.	Executive includes both Executive and anyone who has or obtains any legal rights or claims through Executive, including any and all heirs, executors,
administrators and assigns. 

  

	 	B.	Released Parties means Tornier, Inc., and its parents, subsidiaries, affiliates, predecessors, successors, joint venture partners and divisions; their present
and past officers, directors, committees, shareholders and employees, whether in their individual or official capacities; any company providing insurance to them, in the present or past; present and past fiduciaries of any employee benefit plan
sponsored or maintained by them (other than multiemployer plans); their attorneys; and anyone who acted on their behalf or on instructions from them. 

  

	 	C.	Termination Date means November 12, 2012. 

  

	 	D.	Claims means any and all actual, suspected or potential claims, suits, controversies, actions, causes of action, cross-claims, counterclaims, demands, debts, or
liabilities of any nature whatsoever in law and in equity, whether known or unknown, suspected, or claimed, both past and present through the date this Agreement becomes effective, against any of the Released Parties, seeking any form of relief,
whether for compensatory damages, liquidated damages, punitive or exemplary damages, penalties, fines, assessments, other damages, reinstatement, back pay, front pay, attorneys’ fees, specific performance, injunctive relief, or costs, and which
arise out of or are connected with Executive’s employment with, relationship with, or Executive’s separation or termination from, the Company, including without limitation: 

 

	 	(i)	Claims arising out of or relating to Executive’s employment with the Company or the termination of that employment; 

	 	(ii)	Claims, whether asserted on Executive’s behalf or on behalf of any third party, arising out of or relating to the statements, actions, or omissions of the Company;

  

	 	(iii)	Claims for any alleged unlawful discrimination, harassment, retaliation or reprisal, or other alleged unlawful practices arising under any federal, state, or local
statute, ordinance, rule or regulation, including without limitation, claims under the Age Discrimination in Employment Act (ADEA), the Older Workers Benefit Protection Act (OWBPA), Title VII of the Civil Rights Act of 1964 (Title VII), the
Americans with Disabilities Act (ADA), the Genetic Information Nondiscrimination Act of 2008 (GINA), the Civil Rights Act (42 U.S.C. § 1981), the Family Medical Leave Act (FMLA), the Employee Retirement Income Security Act (ERISA), Equal Pay
Act (EPA), the Worker Adjustment and Retraining Notification Act (WARN), all fair employment practices, individual rights, or other statutes including without limitation the Minnesota Human Rights Act (MHRA), non-interference or non-retaliation
statutes and any other federal, state, or local statute, law, rule, regulation, ordinance or order; 

  

	 	(iv)	Claims for alleged wrongful discharge; breach of contract (including, but not limited to, claims for breach of any written or verbal employment agreement); breach of
implied contract; failure to keep any promise; breach of an express or implied covenant of good faith and fair dealing; breach of fiduciary duty; estoppel; whistleblower or other illegal retaliation or reprisal; defamation; infliction of emotional
distress; fraud; misrepresentation; negligence; harassment; constructive discharge; assault; battery; false imprisonment; invasion of privacy; interference with contractual or business relationships; any other wrongful employment practices; and
violation of any other principle of common law; 

  

	 	(v)	Claims for compensation of any kind (except those expressly provided in or excepted from this Agreement), including without limitation, salary, bonuses, commissions,
expense reimbursements, stock options or other stock-based compensation, used or accrued vacation pay, personal time pay, personal time reservoir, sick pay, severance payments under any past, pending or future severance pay plans, short and/or long
term disability benefits, life insurance benefits, accidental death and disability insurance benefits, dental, medical and vision benefits, retirement savings or 401(k) or 403(b) contributions, and payments for any other type of benefit, leave of
absence or time off of work; 

  

	 	(vi)	Claims for back pay, front pay, reinstatement, injunctions or other equitable relief, compensatory damages, damages for alleged personal injury, liquidated damages and
punitive damages; and 

  

	 	(vii)	Claims for attorneys’ fees, disbursements, costs and interest. 

 The term “Claims” does not include any applicable claims for: (i) unemployment insurance benefits; (ii) workers’ compensation benefits to the extent that such benefits are awarded
by a state agency or agreed upon consistent with applicable state law; (iii) vested post-termination benefits under any employee benefit plan or any additional benefits available to Executive as a “service provider” per the terms of
any such plan; (iv) rights and benefits under the Consolidated Omnibus Reconciliation Act of 1985, as amended, (COBRA); (v) the right to enforce the terms of this Agreement; (vi) any right to defense, indemnification or contribution,
whether pursuant to the Company’s certificate of 

  
 2 

 
incorporation or bylaws, contract, applicable law or otherwise for claims brought against Executive in his capacity as an employee or agent of the Company; (vii) rights as a shareholder of
the Company; (viii) rights under the Uniformed Services Employment and Reemployment Rights Act (USERRA) 38 U.S.C. § 4301, et seq.; (ix) events occurring after this Agreement becomes effective; and (x) any other rights which
cannot be waived or released under applicable law. 
  

	 	E.	Special Consideration means the Company’s engagement of Executive by the Company as a Consultant pursuant to the terms of the Consulting Agreement attached
hereto as Exhibit A, including without limitation the payment by the Company of consulting fees to the Executive thereunder, which Consulting Agreement Executive agrees to sign as a condition of this Agreement. Company and Executive
anticipate that the level of bona fide services the Executive will perform following the Termination Date pursuant to the terms of the Consulting Agreement will be less than twenty percent (20%) of the average level of bona fide services
performed by the Executive over the thirty-six (36) month period immediately preceding the Termination Date and execution of the Consulting Agreement. The term Special Consideration does not include the following amounts which will be
paid to Executive regardless of whether Executive signs this Agreement: 

  

	 	1.	Executive’s base salary for the time Executive worked through the end of business on the Termination Date; 

 

	 	2.	Any accrued but unused vacation to which Executive is entitled as of the Termination Date; 

 

	 	3.	Any unpaid business expenses incurred by Executive through the Termination Date in the course of and pursuant to Tornier’s expense reimbursement policies and
procedures; or 

  

	 	4.	The Severance Pay and Benefits referenced in Section 3 of this Agreement. 

 

	2.	Mutual Agreement to Release Claims and Covenant Not to Sue. 

  

	 	A.	In exchange for the Special Consideration referenced above and the other undertakings of the Company stated in this Agreement and the Consulting Agreement attached as
Exhibit A, Executive knowingly and willingly releases, waives and forever discharges all Released Parties from any and all Claims, and all rights to any legal or equitable relief under any such Claims. In exchange for Executive’s
agreement to release his Claims, Executive is receiving satisfactory compensation (Special Consideration) from the Company to which Executive is not otherwise entitled by law, contract, or under any Company plan, policy or procedure. The Special
Consideration that Executive is receiving is a full and fair payment for the above release of all Claims. The Released Parties do not owe Executive anything in addition to what Executive is entitled to receive will receive under this Agreement.

 Executive will not, directly or indirectly, whether on behalf of Executive or any third party, bring any
lawsuits against the Company or make any demands against the Company for any kind compensation, damages or other relief. If Executive institutes any claim that is not excepted or excluded as provided in this Agreement, Executive agrees that the
Company will be entitled to recover all costs and expenses of defending against the suit incurred by the Company, including reasonable attorneys’ fees, and to recover 

  
 3 

 
any costs and fees, including attorneys’ fees. Executive agrees that the Special Consideration is in addition to anything owed by the Company to Executive by law or contract, or under
company policy, and it is provided to Executive in exchange for, and specifically contingent upon, Executive entering into this Agreement. 
 The Company has made no representations or warranties to Executive regarding the tax treatment of the payments provided under this Agreement. Executive understands that Executive is solely responsible for
all federal, state and local income and any other taxes that may be due on account of these payments. 
  

	 	B.	The Company hereby releases, waives and forever discharges Executive from any and all actual, suspected or potential claims, suits, controversies, actions, causes of
action, cross-claims, counterclaims, demands, debts, or liabilities of any nature whatsoever in law and in equity, whether known or unknown, suspected, or claimed, both past and present through the date this Agreement becomes effective, against
Executive, seeking any form of relief, whether for compensatory damages, liquidated damages, punitive or exemplary damages, penalties, fines, assessments, other damages, reinstatement, back pay, front pay, attorneys’ fees, specific performance,
injunctive relief, or costs, and which arise out of or are connected with Executive’s employment with, relationship with, or Executive’s separation or termination from, the Company, and all rights to any legal or equitable relief under any
such claims; provided, however, that such release shall not cover any claims relating to: (a) the enforcement of this Agreement; (b) the violation of any federal, state, or local statutory or public policy right or entitlement that may not
be waived by law; (c) any personal charges of the Employee on any Company credit card; (d) any intentional or knowing fraud or wrongdoing, including without limitation intentional torts, misrepresentation, usurpation of corporate
opportunity, or breach of fiduciary duty; (e) the Company’s right to recoup (claw back) payments to the Employee, to the extent required by the Sarbanes-Oxley Act of 2002, the Dodd-Frank Wall Street Reform and Consumer Protection Act, or
any other federal or state securities statute or rule adopted pursuant to statute; or (f) any wrongful act or omission that occurs after the date Employer executes this Agreement. Subject to the above exceptions, the Company will not, directly
or indirectly, whether on behalf of itself or its parent companies, subsidiaries, affiliates or any third party, bring any lawsuits against Executive or make any demands against Executive for any kind compensation, damages or other relief. If the
Company institutes any claim that is not excepted or excluded as provided in this Agreement, the Company agrees that Executive will be entitled to recover all costs and expenses of defending against the suit incurred by Executive, including
reasonable attorneys’ fees, and to recover any costs and fees, including attorneys’ fees. 

  

	3.	Severance Pay and Benefits. Company and Executive acknowledge that Severance Pay is payable under the Executive’s employment agreement with the
Company only upon a termination of employment that is an “involuntary separation from service” within the meaning of such term under Section 409A of the Internal Revenue Code and the parties agree that Executive’s termination of
employment is an involuntary separation from service. Thus, pursuant to the terms of the employment agreement between the Parties, the Company also will provide Executive with the following “Severance Pay and Benefits.”

 A. Severance Pay: Tornier will provide Executive with up to 12 months of severance pay in the maximum
gross amount of Five Hundred and Eighteen Thousand Four Hundred and Ninety Dollars and no Cents ($518,490.00) (“Severance Pay”), less payroll withholdings that the Company reasonably believes are required by law or elected by Executive for
state and federal 

  
 4 

 income taxes, FICA and other applicable payroll deductions, payable in accordance with the
Company’s normal payroll practices. The Severance Pay will be distributed to Executive as continuation of base salary paid to Executive at the rate paid to Executive on his Termination Date. 

B. Health Insurance Benefits. If Executive timely elects continued coverage under the Company’s group medical plan or group
dental plan pursuant to section 4980B of the Internal Revenue Code of 1986, as amended (“COBRA”), in accordance with ordinary plan practices: (a) from the Termination Date through the last day of the month in which the above-described
salary continuation is credited, (b) the Company will reimburse Executive in an amount equal to the difference between the amount Executive in fact pays for such COBRA continuation coverage and the amount paid by an full-time active employee
for the same level of coverage elected by Executive. 
 Conditions. In the event that Executive accepts other full-time
employment, full-time engagement as an independent contractor or otherwise engages in his own business on a full-time basis prior to the one-year anniversary of his Termination Date, Executive will promptly notify the Company and the Company shall
be entitled to deduct from the Severance Pay and Benefits the compensation paid to and the value of the benefits received by Executive in respect of such other employment or business activity. Severance Pay and Benefits will be paid less applicable
payroll withholdings that the Company reasonably believes are required by law or elected by Executive for state and federal income taxes, FICA, and other applicable payroll deductions. 

 

	4.	Waiver of Rights to Additional Recovery. Executive understands that he is not being required to waive, dismiss or withdraw any charges, grievances,
petitions or complaints that Executive may have filed against any Released Party with the Equal Employment Opportunity Commission, or local human rights or fair employment practices agency to the extent that any such charge, grievance, petition or
complaint claims a violation of Title VII, the ADEA, the ADA, GINA, the EPA or other applicable civil rights or fair employment practices statutes, rules or regulations. Executive understands, however, that Executive is waiving his right to recover
individual relief including, but not limited to, back pay, front pay, reinstatement, attorneys’ fees and/or punitive damages, in any administrative or legal action whether brought by the EEOC or other civil rights enforcement agency, Executive,
or any other party. Nothing in this Agreement interferes with Executive’s right to file a charge with the EEOC, or participate in any manner in an EEOC investigation or proceeding under Title VII, the ADA, the ADEA or the EPA. Executive agrees
that Company reserves any and all defenses, which it has or might have against any claims brought by Executive or on Executive’s behalf. 

 Executive represents and warrants that he is aware of no facts, evidence, allegations, claims, liabilities or demands relating to alleged or potential violations of law that may give rise to a claim or
liability on the part of any Released Party under the Securities Exchange Act of 1934, the Sarbanes–Oxley Act of 2002, the Dodd-Frank Wall Street Reform and Consumer Protection Act, or any other federal, state, local or international law,
statute or regulation providing for protection and/or recovery to whistleblowers. Nothing in this Agreement interferes with Executive’s right to file a complaint or charge with the SEC or other regulatory body, or to participate in any manner
in an SEC or other governmental investigation or proceeding under any such law, statute or regulation. Executive understands and agrees, however, that Executive waives his right to recover any whistleblower award under Section 21F of the
Securities Exchange Act of 1934 or other individual relief in any administrative or legal action whether brought by the SEC or other law enforcement agency, Executive, or any other party, unless and to the extent that such waiver is contrary to law.
Executive agrees that Company reserves any and all defenses which it has or might have against any such claims brought by Executive or on Executive’s behalf. 

  
 5 

	5.	Compliance with Prior Agreements and Company Policies and Procedures. Executive confirms that Executive remains bound by the terms of all prior agreements
which Executive entered into with the Company and its parent companies, subsidiaries and affiliates, and all policies and procedures of the Company and its parent companies, subsidiaries and affiliates applicable to Executive and which by their
terms extend beyond the Termination Date, including without limitation the Tornier N.V. Code of Conduct on Confidentiality and Insider Trading, the Tornier N.V. Global Disclosure Policy and the Rules for the Board of Directors of Tornier N.V.
Executive understands and agrees that many of the terms in such prior agreements and Company policies and procedures extend beyond the Termination Date, including without limitation his duty to maintain as confidential all confidential, proprietary
or trade secret information of the Company, its parent companies, subsidiaries and affiliates, his duty not to compete with the Company, his duty not to interfere with Company employees, agents, customers or prospective customers and his duty not to
trade in Company securities when in possession of material nonpublic information. Without limiting the generality of the foregoing, and in the interest of clarification, Executive specifically agrees as follows: 

A. Confidential Information Defined. “Confidential Information” means any form of written, recorded or oral information,
or information obtained by the inspection of tangible objects, that the Company or any of its subsidiaries or affiliates treats as confidential or proprietary and that relates to business, technical, customer, vendor, supplier, marketing, employee
and financial information (including the revenues, costs or profits associated with any of the Company’s, or any of its subsidiaries’ or affiliates’, products or services) including without limitation, ideas, inventions, trade
secrets, trade names, know how, improvements, technical information, code books, business plans, training programs, manuals or materials, documents, charts, lists, software, drawings, materials, goods, product designs and plans, equipment or
samples, financial statements, personnel files, employee compensation information, contracts, systems, procedures, customer and industry lists, mailing lists, price lists, or other data disclosed or delivered to Executive by Tornier, or arising from
work or services done by Executive for Tornier. “Confidential Information” does not include any information for which Executive can demonstrate by competent written proof was: (a) known to the public at the time of the Company’s
disclosure to Executive or entered the public domain thereafter through no fault of Executive; (b) in Executive’s possession free of any obligation of confidentiality at the time of the Company’s disclosure to Executive; or
(c) rightfully communicated to Executive by a third party who was not under any obligation of confidentiality. 
 B.
Authorized Uses. Confidential Information may be used by Executive only for purposes authorized in writing by the Company. Confidential Information shall be treated by Executive as confidential proprietary information of the Company, and
shall not allow such information to be disclosed or reproduced or made available to others without prior written permission of the Company except to those that have a specific need to know. Executive shall reproduce the Company’s proprietary
rights notices on any such approved copies, in the same manner in which such notices were set forth in or on the original. 
 C.
Protectable Interests. The Company is in the business of developing, producing and commercializing products related to human joint replacement and soft tissue repair, a worldwide and highly competitive business. The Company has
expended considerable time, effort and resources in the development of its trade secrets, confidential information, customer goodwill, and in recruiting and training its workforce. The success of the Company is dependent

  
 6 

 
in large measure on the preservation of its trade secrets, confidential information, customer goodwill, and workforce. Executive has been and will be performing services for the Company in a
confidential capacity and has acquired and will continue to acquire knowledge about the Company’s valuable confidential information, trade secrets, customers and its workforce. Executive recognizes the importance to the Company of protecting
these assets. Therefore, the Company requires Executive to agree, as an indispensable part of this Agreement, to reasonable restrictions on Executive’s activities during the term of his engagement and for a reasonable period of time after the
conclusion of this engagement and Executive hereby does agree to these restrictions. 
 D. No Competing Employment.
Executive agrees that for the period commencing on the date of this Agreement and ending on November 12, 2013 (such period is hereinafter referred to as the “Restricted Period”), with respect to any country in which the Company and
its parent companies, subsidiaries and affiliates are engaged or are actively seeking to be engaged in business during the term of this Agreement, Executive will not participate or engage, directly or indirectly, for himself or on behalf of or in
conjunction with any person, partnership, corporation or other entity, whether as an employee, agent, officer, director, partner or joint venturer, in any business activities if such activity is undertaken or is expressly contemplated to be
undertaken by the Company or any of its parent companies, subsidiaries or affiliates or by Executive at any time during the last three (3) years of Executive’s employment with Tornier. Executive acknowledges that the restrictions contained
in this Section 5.D. do not and will not prevent Executive from employment with a large diversified organization with separate and distinct divisions that do not compete, directly or indirectly, with the Company or any of its parent companies,
subsidiaries and affiliates, so long as prior to Executive accepting such employment, Tornier receives separate written assurances from the prospective employer and from Executive, satisfactory to Tornier, to the effect that Executive will not
render any services, directly or indirectly, to any division or business unit that competes, directly or indirectly, with the Company or any of its parent companies, subsidiaries or affiliates. During the Restricted Period, Executive will inform any
new employer, prior to accepting employment, of the existence of this Agreement and provide such employer with a copy of this Agreement. 
 E. No Interference. During the Restricted Period, Executive will not, whether for his own account or for the account of any other individual, partnership, firm, corporation or other business
organization (other than Tornier), directly or indirectly solicit, endeavor to entice away from the Company or any of its parent companies, subsidiaries or affiliates, or otherwise directly interfere with the relationship of the Company or any of
its parent companies, subsidiaries or affiliates with any person who, to the knowledge of Executive, is employed by or otherwise engaged to perform services for the Company or any of its parent companies, subsidiaries or affiliates (including, but
not limited to, any independent sales representatives or organizations) or who is, or was within the then most recent twelve-month period, a customer or client of the Company or any of its predecessors, parent companies, subsidiaries or affiliates.
The placement of any general classified or “help wanted” advertisements and/or general solicitations to the public at large shall not constitute a violation of this Section 5.E. unless Executive’s name is contained in such
advertisements or solicitations. 
  

	6.	No Right to Reemployment. Executive understands and agrees that his employment with the Company is terminated effective as of the Termination Date and
Executive has no express or implied right or entitlement to reinstatement or reemployment with the Company following Executive’s Termination Date. Executive agrees that the Company may use this Agreement as the sole reason to reject any inquiry
or application for employment Executive may make. 

  
 7 

	7.	Agreement to Cooperate in Transition; Return of Property. Executive agrees that both before and after the Termination Date he will cooperate with the
Company in its transition efforts as follows: (1) Executive agrees to be available, on a reasonable basis, to answer questions that may arise relating to Executive’s employment with or duties to the Company; (2) Executive agrees to
execute and deliver to the Company any resignations or other documents necessary to effect his separation from the Company and its parent companies, subsidiaries and affiliates; (3) Executive shall return, before Executive’s Termination
Date, and will not retain in any form or format, all Company documents, data, trunk stock and other property in Executive’s possession or control, including without limitation Company-owned equipment such as computers, iPads, smart phones, cell
phones, etc.; provided, however, that Executive may retain his phone, iPad and computer through the term of the Consulting Agreement attached as Exhibit A; (4) after returning these documents, data and other property, Executive will
permanently delete from any electronic media in Executive’s possession, custody or control (such as computers, smart phones, cell phones, hand-held devices, back-up devices, zip drives, etc.) or to which Executive has or may have had access
(such as remote e-mail exchange servers, back-up servers, off-site storage, etc.), all documents or electronically stored images of the Company, including writings, drawings, graphs, charts, sound recordings, images, and other data or data
compilations stored in any medium from which such information can be obtained; and (5) Executive agrees to provide the Company with a list of any documents that Executive created or is otherwise aware that are password-protected and the
password(s) necessary to access such password-protected documents. Company “documents, data, and other property” includes, without limitation, computers, fax machines, cell phones, access cards, keys, reports, manuals, records, product
samples, trunk stock, correspondence and/or other documents or materials related to the business of the Company or any its parent companies, subsidiaries or affiliates that Executive has compiled, generated or received while working for the Company,
including all copies, samples, computer data, disks, or records of such material. Executive understands and agrees that the Company’s obligations under this Agreement are contingent upon Executive returning all Company documents, data, trunk
stock, and other property and cooperating with the Company as set forth above. 

  

	8.	Agreement to Cooperate in Investigations and Litigation. Executive agrees that Executive will, at any future time, be available upon reasonable notice
from the Company, with or without a subpoena, to be interviewed, review documents or things, give depositions, testify, or engage in other reasonable activities, with respect to matters and/or disputes concerning which Executive has or may have
knowledge as a result of or in connection with Executive’s employment by the Company. In performing Executive’s obligations under this paragraph to testify or otherwise provide information, Executive will honestly, truthfully,
forthrightly, and completely provide the information requested. Executive will comply with this Agreement upon notice from the Company that the Company or its attorneys believe that Executive’s compliance will assist in the resolution of an
investigation or the prosecution or defense of claims. Executive understands and agrees that the Company’s obligations under this Agreement are contingent upon Executive cooperating with the Company in investigations and litigation. From and
after November 12, 2013, the Company agrees to pay Executive a reasonable rate for time spent by Executive in performing its obligations under this paragraph; provided, however, that the investigation or claim does not involve any alleged
wrongdoing by Executive. 

  

	9.	 Non-Disparagement. Executive agrees that Executive will make no defamatory, disparaging, critical, derogatory or negative oral or written
comments regarding the Company, or its products or services. Executive understands and agrees that the Company’s obligations under this Agreement are contingent upon Executive’s compliance with this non-disparagement requirement. The
Company agrees that with the exception of necessary internal high-level comments related to company business which shall remain confidential within the company, 

  
 8 

	 	
neither the Company nor any of its parent companies, subsidiaries or affiliates (specifically by and/or through senior-level management personnel and Board members) will make any defamatory,
disparaging, critical, derogatory or negative oral or written comments regarding Executive. 

  

	10.	Not a Designated Spokesperson. Executive is not a designated spokesperson of the Company or any of its parent companies, subsidiaries or affiliates.
Accordingly, Executive is not authorized to: (1) speak on behalf of the Company or any of its parent companies, subsidiaries or affiliates with analysts, market professionals, investors, members of the media, customers, sales agents,
distributors, employees or otherwise; (2) issue statements on behalf of the Company or any of its parent companies, subsidiaries or affiliates; or (3) communicate information about the Company to any such persons, unless specifically asked
to do so in writing by the Company’s current President and Chief Executive Officer or Chief Financial Officer. Executive shall refer all inquiries from such persons or any request for an interview to either the Company’s current President
and Chief Executive Officer or Chief Financial Officer. These obligations are in addition to Executive’s confidentiality and other obligations under this Agreement, the Consulting Agreement and policies and procedures of the Company and its
parent companies, subsidiaries and affiliates applicable to Executive and which by their terms extend beyond the Termination Date, including without limitation the Tornier N.V. Code of Conduct on Confidentiality and Insider Trading, the Tornier N.V.
Global Disclosure Policy and the Rules for the Board of Directors of Tornier N.V. Executive understands and agrees that the Company’s obligations under this Agreement are contingent upon Executive’s compliance with this Section 10.

  

	11.	Advice to Consult with an Attorney. Executive understands and acknowledges that Executive hereby is being advised by the Company to consult with an
attorney prior to signing this Agreement. Executive’s decision whether to sign this Agreement is Executive’s own voluntary decision made with full knowledge that the Company has advised Executive to consult with an attorney. The Company
will not advance or reimburse any attorneys’ fees, costs or expenses incurred by Executive in connection with any such review. 

  

	12.	Older Workers Benefit Protection Act. Executive has been advised and understands that the waiver and release of Claims being granted hereunder is subject
to the terms of the Older Workers Benefit Protection Act (“OWBPA”). The OWBPA provides that an individual cannot waive a right or claim under the ADEA unless the waiver is knowing and voluntary. Nothing in this Agreement interferes with
Executive’s right to challenge the knowing and voluntary nature of this Agreement under the ADEA and/or OWBPA. Executive has been advised of this law, and Executive agrees that he is signing this Agreement of Executive’s own free will, and
with full knowledge of its consequences. Executive understands that Company is giving Executive at least 21 days from the date he received a copy of this Agreement to decide whether he wishes to sign it. Executive acknowledges that Company has
advised Executive to use this time to consult with an attorney about the effect of this Agreement. If Executive signs this Agreement before the end of the 21-day period it will be Executive’s personal, voluntary decision to do so, and shall be
done with full knowledge of Executive’s legal rights. Executive agrees that any changes to this Agreement will not restart the running of this consideration period. 

 

	13.	 Rights and Procedure for Accepting or Revoking this Agreement. Executive has been advised that this Agreement shall be signed by
Executive no earlier than Executive’s Termination Date. Executive understands that insofar as this release relates to Executive’s rights under the ADEA, he has the right to revoke that release by written notice of such to the
Company within 7 calendar days following Executive’s signing this Agreement. Executive understands that insofar 

  
 9 

	 	
as it extends to Executive’s rights under the MHRA, he has the right to rescind that release by written notice of such to the Company within 15 calendar days of Executive’s signing this
Agreement. Any such revocation or rescission must be in writing and hand-delivered to Tornier’s Senior Vice President, Human Resources, Mr. Greg Morrison, or, if sent by mail, post-marked within the 7-day revocation or 15-day rescission
period, addressed to Mr. Greg Morrison, Vice President, Human Resources, Tornier, Inc., 10801 Nesbitt Avenue South, Bloomington, Minnesota 55437, and sent by certified mail, return receipt requested. Executive understands that the Special
Consideration he is receiving for settling and releasing Executive’s Claims is contingent upon Executive’s agreement to be bound by the terms of this Agreement. Accordingly, if Executive decides to revoke or rescind this Agreement,
Executive is not entitled to the Special Consideration offered in this Agreement. 

  

	14.	No Admission of Wrongdoing. This Agreement shall not be construed as an admission of liability for any of the claims released by Executive or in
connection with any other matter. 

  

	15.	Successors and Assigns. Executive agrees that the promises in this Agreement benefit the Company and also any successor or assignee of the Company’s
business or operations. The Company agrees that its promises in this Agreement shall be binding on any successor or assignee of its business or operations. Executive warrants and represents that Executive has not assigned or transferred in any
manner, or purported to assign or transfer in any manner, to any person or entity, any claim or interest that is the subject of this Agreement. 

  

	16.	Entire Agreement/Merger; Other Written Agreements. Subject to Executive’s agreement, as set forth above, to abide by other agreements with the
Company and all Company policies and procedures of the Company or any of its parent companies, subsidiaries or affiliates applicable to Executive and which by their terms extend beyond the Termination Date, this, together with the Consulting
Agreement attached as Exhibit A, is the entire agreement between Executive and the Company relating to Executive’s employment and Executive’s termination from employment, and Executive’s right to any severance pay and benefits.
Except as expressly provided otherwise in this Agreement, this Agreement supersedes all prior oral and written agreements and communications between the Parties. This Agreement shall not be modified, amended or terminated, except by a written
agreement manually signed by both Parties. 

  

	17.	Interpretation of the Agreement. This Agreement is to be interpreted as broadly as possible to achieve Executive’s intention to resolve all of
Executive’s Claims against the Company. If this Agreement is held by a court to be inadequate to release a particular claim encompassed within Executive’s Claims, this Agreement will remain in full force and effect with respect to all the
rest of Executive’s Claims. In case any one or more of the provisions of this Agreement shall be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions will not in any way be
affected or impaired. 

  

	18.	Governing Law and Venue. Executive understands that the Company’s principal place of business is in Bloomington, Minnesota, and accordingly,
Executive agrees that this Agreement shall be governed by, and be construed and enforced in accordance with Minnesota law, without reference to choice of law, except to the extent it is pre-empted by federal law. Executive agrees that any dispute
relating to this Agreement must be brought in the state or federal court within the State of Minnesota, Hennepin County. 

  

	19.	 Remedies. In the event that Executive breaches Executive’s obligations under this Agreement or the Company learns that
Executive’s representations and warranties contained in this Agreement are false, the Company shall have the right to bring a legal action for appropriate equitable relief

  
 10 

	 	
as well as damages, including reasonable attorneys’ fees, and shall also have to right to suspend payment of the Special Consideration set forth in this Agreement and/or to recover, in
addition to any equitable relief and damages allowed by law, the Special Consideration Executive has received under this Agreement. 

  

	20.	Representations and Warranties. Executive represents and warrants that he is aware of no alleged or potential violations of law, liabilities, claims or
demands of any kind or nature that have been or could be made against the Company by Executive or any other person or entity. Executive represents that he has carefully read this entire Agreement and understand all of its terms. Executive represents
that no promise or inducement has been offered to Executive except as set forth herein, and that this Agreement is executed without reliance upon any statement or representation by the Company or any representative or agent of the Company. Executive
warrants that he has full legal authority to release any and all claims as specified herein and to undertake all other obligations as specified herein. Executive warrants that he enters into this Agreement voluntarily and with full knowledge and
understanding of Executive’s legal rights and obligations. Executive understands that this Agreement will have a final and binding effect and that by executing this Agreement he may be giving up legal rights. Executive intends this Agreement to
be legally binding. 

 [Remainder of page intentionally left blank] 

  
 11 

							
	Dated: November 12, 2012	 		 	DOUGLAS W. KOHRS
				
		 		 		 	/s/ Douglas W. Kohrs
		 		 		 	Signature
			
	ACCEPTED BY TORNIER, INC.:	 		 	
				
	By:	 	/s/ Kevin M. Klemz	 		 	
		 	Kevin M. Klemz	 		 	
	Its:	 	Vice President, Chief Legal Officer and Secretary	 		 	

  
 12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}]]