Document:

Stock Purchase Agreement

 Exhibit 10.13 
 STOCK PURCHASE AGREEMENT 
 This Stock Purchase
Agreement (this “Agreement”) is dated December 8, 2009 between Titan Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and each of the signatories hereto (collectively, the
“Investors”). 
 WHEREAS, the Company desires to issue and sell to the Investors, and the Investors desire to
purchase from the Company, an aggregate of 300,000 shares (the “Shares”) of the Company’s common stock, $.001 par value (the “Common Stock”) on the terms and subject to the conditions set forth in this Agreement.

 NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable
consideration the receipt and adequacy of which are hereby acknowledged, the Company and the Investors agree as follows: 
 1.
Purchase and Sale of Shares. At the Closing (as defined in Section 2), the Company shall sell to the Investors and the Investors shall purchase from the Company the number of Shares indicated on the signature page of this agreement for a
purchase price of $1.70 per share or an aggregate purchase price of $510,000 (the “Purchase Price”). The Investors shall deliver to the Company via wire transfer immediately available funds equal to the Purchase Price and the
Company shall deliver to the Investors the Shares. 
 2. Closing. The closing of the purchase and sale of the Shares (the
“Closing”) shall take place at the offices of Loeb and Loeb LLP, 345 Park Avenue, New York, New York, 10154, or such other place to be specified by the Company and the Investors, on such date and at such time (the “Closing
Date”) as the Company and the Investors shall agree in writing, but in no event later than three Business Days following the date of this Agreement. For purposes of this Agreement, (i) “Business Day” shall mean a day,
other than a Saturday or Sunday, on which banks in New York City are open for the general transaction of business, and (ii) “Trading Day” shall mean a day on which the Common Stock is quoted in the over-the-counter market as
reported in the “pink sheets” by Pink Sheets LLC (or any similar organization or agency succeeding to its functions of reporting prices); provided, that in the event that the Common Stock is not so quoted, then Trading Day shall
mean a Business Day. 

 3. Representations, Warranties and Covenants of the Company. Except as otherwise
described in the Company’s disclosure schedules delivered to the Investors in connection with the transactions contemplated hereby (the “Disclosure Schedules”) or in the Company’s definitive proxy statement on Form 14A,
filed May, 2, 2008, the Company’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2007, the Company’s Quarterly Reports on Form 10-Q for each of the quarterly periods ended March 31, 2008, June 30,
2008 and September 30, 2008, respectively, and the Company’s Current Reports on Form 8-K filed during the period from January 1, 2008 to December 5, 2008, each case as filed by the Company with the United States Securities and
Exchange Commission (the “Commission”), (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC Documents”), and in
the Company’s press releases dated December 15, 2008, May 6, 2009, May 20, 2009, October 1, 2009, October 12, 2009 and November 30, 2009 (the “Releases” and, together with the
Disclosure Schedules and the SEC Documents, the “Company Information”), which qualify the following representations and warranties in their entirety, the Company hereby represents and warrants to, and covenants with, the Investors,
as of the date of this Agreement and as of the Closing Date (except for the representations and warranties that speak as of a specific date, which shall be made as of such date) as follows: 
 3.1 Subsidiaries; Organization. The Company has no direct or indirect Subsidiaries other than those listed in Section 3.1 of the
Disclosure Schedules. Except as disclosed in Section 3.1 of the Disclosure Schedules, the Company owns, directly or indirectly, all of the capital stock or comparable equity interests of each Subsidiary free and clear of any and all Liens, and
all the issued and outstanding shares of capital stock or comparable equity interest of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities. The
Company and each of its Subsidiaries is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite corporate
power and authority to own or lease and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation of any of the provisions of its respective certificate or articles of
incorporation, bylaws or other organizational or charter documents. The Company and each of its Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the
nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would not have a Material Adverse Effect, and no Proceeding has been
instituted, is pending, or, to the Company’s knowledge, has been threatened in writing in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification. For purposes of
this Agreement, (i) “Subsidiary” shall mean any entity in which the Company, directly or indirectly, owns capital stock or holds an equity or similar interest, (ii) “Lien” shall mean any lien, charge,
claim, encumbrance, security interest, right of first refusal, preemptive right or other restrictions of any kind, (iii) “Material Adverse Effect” shall mean any of (a) a material and adverse effect on the legality,
validity or enforceability of this Agreement, the schedules and exhibits attached hereto, and any other documents or agreements executed in connection with the transactions contemplated hereunder, (b) a material and adverse effect on the
results of operations, assets, prospects, business or financial condition of the Company and the Subsidiaries, taken as a whole, or (c) any adverse impairment to the Company’s ability to perform in any material respect on a timely basis
its obligations under this Agreement, and (iv) “Proceeding” shall mean an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial Proceeding, such as a deposition), whether
commenced or threatened. 
 3.2 Due Authorization. The Company has all requisite power and authority to execute, deliver
and perform its obligations under this Agreement and that certain registration rights agreement of even date herewith (the “Registration Rights Agreement” and, together with this Agreement, the “Transaction
Agreements”) and each of the Transaction Agreements has been duly authorized and validly executed and delivered by the Company and, assuming the due authorization, execution and delivery by the Investors, constitutes a legal, valid and
binding agreement of the Company enforceable against the Company in accordance with its terms, 
 except as rights to indemnity and contribution
may be limited by state or federal securities laws or the public policy underlying such laws, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ and
contracting parties’ rights generally and except as enforceability may be subject to general principles of equity (regardless of whether such enforceability is considered in a Proceeding in equity or at law). 
  

 -2- 

 3.3 Issuance of the Shares. The Shares are duly authorized and, when issued and paid
for in accordance with this Agreement, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens and shall not be subject to preemptive or similar rights. 
 3.4 Non-Contravention. The execution and delivery of the Transaction Agreements, the issuance and sale of the Shares by the Company
under this Agreement and the consummation of the transactions contemplated hereby will not (A) conflict with or constitute a violation of, or default (with the passage of time or otherwise) under, (i) any bond, debenture, note or other
evidence of indebtedness, or any material lease, contract, indenture, mortgage, deed of trust, loan agreement, joint venture or other agreement or instrument to which the Company or any Subsidiary is a party or by which the Company, any Subsidiary
or any of their property is bound, where such conflict, violation or default is likely to result in a Material Adverse Effect, (ii) the charter, by-laws or other organizational documents of the Company or any Subsidiary, or (iii) any law,
administrative regulation, ordinance or order of any court or governmental agency, arbitration panel or authority binding upon the Company or any Subsidiary or any of their property, where such conflict, violation or default is likely to result in a
Material Adverse Effect, or (B) result in the creation or imposition of any Lien upon any of the material properties or assets of the Company or any Subsidiary or an acceleration of indebtedness pursuant to any obligation, agreement or
condition contained in any bond, debenture, note or any other evidence of indebtedness or any indenture, mortgage, deed of trust or any other agreement or instrument to which the Company or any Subsidiary is a party or by which the Company or any
Subsidiary is bound or to which any of the property or assets of the Company or any Subsidiary is subject. No consent, approval, authorization or other order of, or registration, qualification or filing with, any regulatory body, administrative
agency, or other governmental body in the United States is required for the execution, delivery and performance of this Agreement, the valid issuance and sale of the Shares, other than such as have been made or obtained. 
 3.5 Capitalization. The Company has authorized 125,000,000 shares of Common Stock and 5,000,000 shares of preferred stock, $.001 par
value (the “Preferred Stock:”). As of the date of this Agreement, there were 58,967,742 shares of Common Stock and no shares of Preferred Stock outstanding and there were options and warrants outstanding to purchase an aggregate of
13,347,320 additional shares of Common Stock. The outstanding shares of capital stock of the Company have been duly and validly issued and are fully paid and nonassessable, have been issued in compliance with all federal and state securities laws,
and were not issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. There are no stockholders agreements, voting agreements or other similar agreements with respect to the Common Stock to which the
Company is a party. Except as specified in Section 3.5 of the Disclosure Schedules: (i) no shares of the Company’s outstanding capital stock are subject to preemptive rights or any other similar rights; (ii) there are no
outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares of capital stock of the Company, or
contracts, commitments, understandings or arrangements by which the Company is or may become bound to issue additional shares of capital stock of the Company or options, warrants, scrip, rights to subscribe to, calls or commitments of any character
whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares of capital stock of the Company; (iii) there are no material outstanding debt securities, notes, credit agreements, credit
facilities or other agreements, documents or instruments evidencing indebtedness of the Company or by which the Company is or may become bound; (iv) to the Company’s knowledge, there are no financing statements securing obligations in any
material amounts, either singly or in the aggregate, filed in connection with the Company; (v) there are no agreements or arrangements under which the Company is obligated to register the sale of any of their securities under the Securities Act
of 1933, as amended (the “Securities Act”); (vi) there are no outstanding securities or instruments of the Company or which contain any redemption or similar provisions, and there are no contracts, commitments, understandings
or arrangements by which the Company is or may become bound to redeem a security of the Company; (vii) there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Shares;
(viii) the Company does not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement; and (ix) the Company has no liabilities or obligations required to be disclosed in the
Financial Statements but not so disclosed in the Financial Statements, other than those incurred in the ordinary course of the Company’s businesses and which, individually or in the aggregate, do not or would not have a Material Adverse Effect.

  

 -3- 

 3.6 Legal Proceedings. There is no legal or governmental Proceeding pending to which
the Company or any Subsidiary is a party or of which the business or property of the Company or any Subsidiary is subject. 
 3.7 No Violations. None of the Company or any Subsidiary is in violation of its charter, bylaws or other organizational document, or in violation of any law, rule, regulation, ordinance, judgment, injunction, decree or order of any
court or governmental agency, arbitration panel or authority applicable to it, which violation, individually or in the aggregate, would be reasonably likely to have a Material Adverse Effect, or is in default (and there exists no condition which,
with the passage of time or otherwise, would constitute a default) in the performance of any bond, debenture, note or any other evidence of indebtedness in any indenture, mortgage, deed of trust or any other material agreement or instrument to which
the Company or any Subsidiary is a party or by which the Company or any Subsidiary is bound or by which the property of the Company or any Subsidiary is bound, which would be reasonably likely to have a Material Adverse Effect. 
 3.8 Governmental Permits, Etc. Each of the Company and the Subsidiaries has all necessary franchises, licenses, certificates and
other authorizations from any foreign, federal, state or local government or governmental agency, department or body that are currently necessary for the operation of its business as currently conducted (“Material Permits”), except
where the failure to currently possess any such franchise, license, certificate or other authorization could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. Neither the Company nor any of its
Subsidiaries has received any notice of Proceedings relating to the revocation or modification of any such Material Permits, and the Company is unaware of any facts or circumstances that would reasonably expect to give rise to the revocation or
modification of any Material Permits. 
  

 -4- 

 3.9 Intellectual Property. The Company and its Subsidiaries own, possess, license or
have other rights to use all foreign and domestic patents, patent applications, trade and service marks, trade and service mark registrations, trade names, copyrights, licenses, inventions, trade secrets, technology, Internet domain names, know-how
and other intellectual property (collectively, the “Intellectual Property”) necessary for the conduct of their respective businesses as now conducted or as proposed to be conducted. Except where such violations or infringements
would not have, either individually or in the aggregate, a Material Adverse Effect, (a) there are no rights of third parties to any such Intellectual Property; (b) to the Company’s knowledge, there is no infringement by third parties
of any such Intellectual Property; (c) there is no pending or, to the Company’s knowledge, threatened action, suit, Proceeding or claim by others challenging the Company’s and its Subsidiaries’ rights in or to any such
Intellectual Property, and the Company is unaware of any facts which would form a reasonable basis for any such claim; (d) there is no pending or, to the Company’s knowledge, threatened action, suit, Proceeding or claim by others
challenging the validity or scope of any such Intellectual Property; and (e) there is no pending or, to the Company’s knowledge, threatened action, suit, Proceeding or claim by others that the Company and/or any Subsidiary infringes or
otherwise violates any patent, trademark, copyright, trade secret or other proprietary rights of others, and the Company is unaware of any other fact which would form a reasonable basis for any such claim. 
 3.10 Financial Statements; SEC Documents. The financial statements of the Company and the related notes contained in the
Company’s SEC Documents, in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2006 and the financial statements and the related notes for the year ended December 31, 2008 (the “2008
Financials”) previously delivered to the Investor (collectively, the “Financial Statements”) present fairly, in accordance with generally accepted accounting principles, the financial position of the Company as of the dates
indicated, and the results of its operations and cash flows for the periods therein specified, subject, in the case of unaudited financial statements for interim periods, to normal year-end audit adjustments. The Financial Statements have been
prepared in accordance with generally accepted accounting principles applied on a consistent basis throughout the periods therein specified, except that unaudited financial statements may not contain all footnotes required by generally accepted
accounting principles. Prior to December 16, 2008, the Company filed all reports, schedules, forms, statements and other documents required to be filed by it under the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for
the three years preceding such date on a timely basis or received a valid extension of such time of filing and filed any such reports prior to the expiration of any such extension. As of their respective filing dates, or to the extent corrected by a
subsequent restatement, the SEC Documents complied in all material respects with the requirements of the Securities Act and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations of the
Commission promulgated thereunder, and none of the SEC Documents, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein,
in light of the circumstances under which they were made, not misleading. Except as specified in Section 3.10 of the Disclosure Schedules, all material agreements to which the Company or any Subsidiary is a party or to which the property or
assets of the Company or any of its Subsidiaries are subject are included as part of or specifically identified in the SEC Documents or the Press Releases. The Financial Statements included in any of the SEC Documents or in the Company’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2006 comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing (or
to the extent corrected by a subsequent restatement). 
  

 -5- 

 3.11 Foreign Corrupt Practices. Neither the Company nor, to the knowledge of the
Company, any agent or other person acting on behalf of the Company, have (i) directly or indirectly, used any corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political
activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the
Company or made by any person acting on its behalf and of which the Company is aware in violation of law or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended. 
 3.12 No Manipulation of Stock. The Company has not taken and will not, in violation of applicable laws, rules or regulations take,
any action outside the ordinary course of business designed to or that might reasonably be expected to cause or result in unlawful manipulation of the price of the Common Stock to facilitate the sale or resale of the Shares. 
 3.13 Transfer Taxes. On the Closing Date, all stock transfer or other taxes (other than income taxes) which are required to be paid
in connection with the sale and transfer of the Shares to be sold to the Investors hereunder will be, or will have been, fully paid or provided for by the Company and all laws imposing such taxes will be or will have been fully complied with.

 3.14 Legal Opinion. The Company shall cause to be delivered to the Investors by counsel to the Company a legal opinion
substantially in the form attached hereto as Exhibit B. 
 3.15 Exemption from Registration; No Registration
Rights. Assuming the accuracy of the representations and warranties of the Investors in Section 4 of this Agreement, no registration under the Securities Act is required for the offer and sale of the Shares by the Company to the Investors.
The Company has not engaged in any form of general solicitation or general advertising (as those terms are used in Regulation D under the Securities Act) in connection with the offering of the Shares or in any manner involving a public offering
within the meaning of Section 4(2) of the Securities Act. None of the Company, its Subsidiaries nor, to the Company’s knowledge, any of its Affiliates or any Person acting on its behalf has, directly or indirectly, at any time within the
past six months, made any offers or sales of any Company security or solicited any offers to buy any security under circumstances that would (i) eliminate the availability of the exemption from registration under Regulation D under the
Securities Act in connection with the offer and sale by the Company of the Shares as contemplated hereby or (ii) cause the offering of the Shares pursuant to the Agreement to be integrated with prior offerings by the Company for purposes of any
applicable laws, rules or regulation or stockholder approval provisions. The Company shall comply with all applicable laws, including the Securities Act, and any applicable state securities laws in connection with the offer and sale of the Shares.
From and after the date of this Agreement, the Company shall not, and shall use its commercially reasonable efforts to ensure that no Affiliate of the Company shall, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of
any security (as defined in Section 2 of the Securities Act) that will be integrated with the offer or sale of the Shares in a manner that would require the registration under the Securities Act of the sale of the Shares to the Investor, or
that will be integrated with the offer or sale of the Shares. Except as specified in Section 3.15 of the Disclosure Schedules, no Person has any right to cause the Company to effect the registration under the Securities Act of any securities of
the Company. For purposes of this Agreement, (i) “Affiliate” shall mean, with respect to any Person, any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under
common control with such Person, as such terms are used in and construed under Rule 144 under the Securities Act (with respect to the Investor, any investment fund or managed account that is managed on a discretionary basis by the same investment
manager as the Investor will be deemed to be an Affiliate of the Investor),and (ii) “Person” shall mean an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock
company, joint venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically listed herein. 
  

 -6- 

 3.16 Accountants. Odenberg, Ullakko, Muranishi & Co. LLP, which has
expressed its opinion with respect to the financial statements set forth in the Company’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2007, as well as the 2008 Financials, are independent accountants as required by
the Securities Act and the rules and regulations promulgated thereunder. 
 3.17 Taxes. The Company and each of its
Subsidiaries (i) has accurately and timely prepared and filed all foreign, federal and state income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all taxes and other
governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations, except those being contested in good faith, with respect to which adequate reserves have been set aside on the
books of the Company, and (iii) has set aside on its books provisions reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply, except, in the case of clauses
(i) and (ii) above, where the failure to so pay or file any such tax, assessment, charge or return would not have a Material Adverse Effect. There are no unpaid taxes in any material amount claimed to be due by the Company or any of its
Subsidiaries by the taxing authority of any jurisdiction. 
 3.18 Investment Company. None of the Company or any
Subsidiary is an “investment company” or an “affiliated person” of, or “promoter” or “principal underwriter” for an investment company, within the meaning of the Investment Company Act of 1940, as amended.

 3.19 No Trigger of Antidilution Provisions. None of the execution, delivery or performance of this Agreement by the
Company will trigger any antidilution adjustment with respect to the exercise or conversion price of any securities of the Company outstanding as of the date hereof. 
  

 -7- 

 3.20 Material Changes. Since December 31, 2007, except as set forth in the
Company Information or as specifically disclosed in Section 3.20 of the Disclosure Schedules, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have, either individually or in the
aggregate, a Material Adverse Effect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business
consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or required to be disclosed in filings made with the Commission, (iii) the Company has not altered
materially its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or
made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer,
director or Affiliate, except Common Stock issued in the ordinary course as dividends on outstanding preferred stock or issued pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements
disclosed in the SEC Documents and Press Releases and (vi) there has not been any material change or amendment to, or any waiver of any material right by the Company under, any material contract under which the Company or any of its
Subsidiaries is bound or subject. Except for the transactions contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company or its Subsidiaries or their respective business, properties,
operations or financial condition that would be required to be disclosed under applicable securities laws at the time this representation is made that has not been publicly disclosed at least one Trading Day prior to the date that this
representation is made. For purposes of this Agreement, “GAAP” shall mean U.S. generally accepted accounting principles, applied on a consistent basis. 
 3.21 Environmental Matters. To the Company’s knowledge, neither the Company nor any of its Subsidiaries (i) is in violation of any statute, rule, regulation, decision or order of any
governmental agency or body or any court, domestic or foreign, relating to the use, disposal or release of hazardous or toxic substances or relating to the protection or restoration of the environment or human exposure to hazardous or toxic
substances (collectively, “Environmental Laws”), (ii) owns or operates any real property contaminated with any substance that is in violation of any Environmental Laws, (iii) is liable for any off-site disposal or
contamination pursuant to any Environmental Laws, or (iv) is subject to any claim relating to any Environmental Laws; which violation, contamination, liability or claim has had or would have, individually or in the aggregate, a Material Adverse
Effect; and there is no pending investigation or, to the Company’s knowledge, investigation threatened in writing that might lead to such a claim. 
 3.22 Employment Matters. No material labor dispute exists or, to the Company’s knowledge, is imminent with respect to any of the employees of the Company that would have a Material Adverse
Effect. No executive officer of the Company (as defined in Rule 501(f) of the Securities Act) has notified the Company or any such Subsidiary that such officer intends to leave the Company or any such Subsidiary or otherwise terminate such
officer’s employment with the Company or any such Subsidiary. To the Company’s knowledge, no executive officer is in violation of any term of any employment contract, confidentiality, disclosure or proprietary information agreement or
non-competition agreement, or any other contract or agreement or any restrictive covenant which would have a Material Adverse Effect, and the continued employment of each such executive officer does not subject the Company or any Subsidiary to any
liability with respect to any of the foregoing matters. 
  

 -8- 

 3.23 Title to Assets; Insurance. The Company and its Subsidiaries have good and
marketable title in fee simple to all real property. The Company and its Subsidiaries have good and marketable title to all tangible personal property owned by them which is material to the business of the Company and its Subsidiaries, taken as
whole, in each case free and clear of all Liens except such as do not materially affect the value of such property and do not interfere with the use made and proposed to be made of such property by the Company and any of its Subsidiaries. Any real
property and facilities held under lease by the Company and any of its Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be
made of such property and buildings by the Company and its Subsidiaries. The Company and each of the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as the Company
believes to be prudent and customary in the businesses and locations in which the Company and the Subsidiaries are engaged. Neither the Company nor any of its Subsidiaries has received any notice of cancellation of any such insurance, nor, to the
Company’s knowledge, will it or any Subsidiary be unable to renew their respective existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business
without a significant increase in cost. 
 3.24 Transactions With Affiliates and Employees; Accounting and Disclosure
Controls. None of the officers or directors of the Company and, to the Company’s knowledge, none of the employees of the Company, is presently a party to any transaction with the Company or to a presently contemplated transaction (other
than for services as employees, officers and directors) that would be required to be disclosed pursuant to Item 404 of Regulation S-K promulgated under the Securities Act if such regulation were applicable to the Company. The Company and each
of its Subsidiaries maintains a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset and liability accountability, (iii) access to assets or incurrence of liabilities is permitted only in accordance with
management’s general or specific authorization, and (iv) the recorded accountability for assets and liabilities is compared with the existing assets and liabilities at reasonable intervals and appropriate action is taken with respect to
any differences. 
 3.25 Certain Fees. No person or entity will have, as a result of the transactions contemplated by
this Agreement, any valid right, interest or claim against or upon the Company or the Investors for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of the Company. The
Company shall indemnify, pay, and hold the Investors harmless against, any liability, loss or expense (including, without limitation, attorneys’ fees and out-of-pocket expenses) arising in connection with any such right, interest or claim.

  

 -9- 

 3.26 Application of Takeover Protections; Rights Agreements. The Company and its
board of directors have taken all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover
provision under the Company’s charter documents or the laws of its state of incorporation that is or could reasonably be expected to become applicable to the Investors as a result of the Investors and the Company fulfilling their obligations or
exercising their rights under this Agreement including, without limitation, the Company’s issuance of the Shares and the Investors’ ownership of the Shares. The Company has not adopted a stockholder rights plan or similar arrangement
relating to accumulations of beneficial ownership of Common Stock or a change in control of the Company. 
 3.27
Disclosure. The Company confirms that neither it nor any of its officers or directors nor any other Person acting on its or their behalf has provided the Investors or their agents or counsel with any information that it believes constitutes
or could reasonably be expected to constitute material, non-public information except insofar as the existence, provisions and terms of this Agreement and the proposed transactions hereunder may constitute such information, all of which will be
disclosed by the Company in the Press Release as contemplated by Section 3.31 hereof. The Company understands and confirms that the Investors will rely on the foregoing representations in effecting transactions in securities of the Company. No
event or circumstance has occurred or information exists with respect to the Company or any of its Subsidiaries or its or their business, properties, operations or financial conditions, which, under applicable law, rule or regulation, requires
public disclosure or announcement by the Company but which has not been so publicly announced or disclosed, except for the announcement of this Agreement and related transactions. 
 3.28 Acknowledgment Regarding Investors. The Company acknowledges and agrees that each Investor is acting solely in the capacity of
an arm’s length Investor with respect to this Agreement and the transactions contemplated hereby. The Company further acknowledges that none of the Investors is not acting as a financial advisor or fiduciary of the Company (or in any similar
capacity) with respect to this Agreement and the transactions contemplated hereby and any advice given by an Investor or any of its representatives or agents in connection with this Agreement and the transactions contemplated hereby is merely
incidental to the Investor’s purchase of the Shares. Notwithstanding anything to the contrary in this Agreement, it is understood and acknowledged by the Company (i) that the Investors have not been asked to agree, nor have the Investors
agreed, to desist from purchasing or selling, long and/or short, securities of the Company, or “derivative” securities based on securities issued by the Company or to hold the Shares for any specified term; (ii) that past or future
open market or other transactions by the Investors, including “short sales”, and specifically including, without limitation, “short sales” or “derivative” transactions, may negatively impact the market price of the
Company’s publicly-traded securities; (iii) that the Investors, and counter-parties in “derivative” transactions to which the Investors are parties, directly or indirectly, presently may have a “short” position in the
Common Stock, and (iv) that the Investors shall not be deemed to have any affiliation with or control over any arm’s length counter-party in any “derivative” transaction. The Company further understands and acknowledges that
(a) the Investors may engage in hedging activities at various times during the period that the Shares are outstanding and (b) such hedging activities (if any) could reduce the value of the existing stockholders’ equity interests in
the Company at and after the time that the hedging activities are being conducted. The Company acknowledges that such aforementioned hedging activities do not constitute a breach of this Agreement. 
  

 -10- 

 3.29 PFIC. Neither the Company nor any Subsidiary is or intends to become a
“passive foreign investment company” within the meaning of Section 1297 of the U.S. Internal Revenue Code of 1986, as amended. 
 3.30 Form D and Blue Sky. The Company agrees to timely file a Form D with respect to the Shares if required under Regulation D of the Securities Act. The Company, on or before the Closing Date,
shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for or to qualify the Shares for sale to the Investors at the Closing pursuant to this Agreement under applicable securities or “Blue
Sky” laws of the states of the United States (or to obtain an exemption from such qualification). The Company shall make all filings and reports relating to the offer and sale of the Shares required under applicable securities or “Blue
Sky” laws of the states of the United States following the Closing Date. 
 3.31 Use of Proceeds. The Company
intends to use the net proceeds from the sale of the Shares hereunder for working capital and general corporate purposes and, except as set forth in Section 3.32 of the Disclosure Schedules, not for the satisfaction of any portion of the
Company’s debt (other than payment of trade payables and accrued expenses in the ordinary course of the Company’s business and consistent with prior practices), or to redeem any Common Stock or Common Stock equivalents or to settle any
outstanding legal action. 
 3.32 Form 10; Registration Rights. On or before January 15, 2010, the Company shall
file a registration statement on Form 10 with the SEC and use its commercially reasonable efforts to effect the re-registration of the Common Stock under the Securities Exchange Act of 1934 on or prior to April 15, 2010. Following the Closing,
if, at any time, the Company is not required to file periodic reports with the Commission under the Exchange Act, it will prepare and furnish to the Investor such information, and in the time periods required, as would be required if the Investor
were to sell the Shares under Rule 144 of the Exchange Act. The Investors shall be entitled to have the Shares registered for resale under the Securities Act pursuant to the terms of the Registration Rights Agreement. 
 4. Representations, Warranties and Covenants of the Investors. Each Investor hereby, for itself and for no other Investor, represents
and warrants as of the date hereof and as of the Closing Date to the Company as follows: 
 4.1 Organization; Authority.
Such Investor is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with the requisite corporate or partnership power and authority to enter into and to consummate the transactions
contemplated by the Transaction Agreements and otherwise to carry out its obligations hereunder and thereunder. The execution, delivery and performance by such Investor of the transactions contemplated by this Agreement have been duly authorized by
all necessary corporate or, if such Investor is not a corporation, such partnership, limited liability company or other applicable like action, on the part of such Investor. Each of the Transaction Agreements has been duly executed by such Investor,
and when delivered by such Investor in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Investor, enforceable against it in accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general application.

  

 -11- 

 4.2 No Conflicts. The execution, delivery and performance by such Investor of the
Transaction Agreements and the consummation by such Investor of the transactions contemplated hereby and thereby will not (i) result in a violation of the organizational documents of such Investor, (ii) conflict with, or constitute a
default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which such Investor is
a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable to such Investor, except in the case of clauses (ii) and (iii) above, for such
conflicts, defaults, rights or violations which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of such Investor to perform its obligations hereunder. 
 4.3 Investment Intent. Such Investor understands that the Shares are “restricted securities” and have not been registered
under the Securities Act or any applicable state securities law and is acquiring the Shares for its own account and not with a view to, or for distributing or reselling the Shares or any part thereof in violation of the Securities Act or any
applicable state securities laws, provided, however, that by making the representations herein, such Investor does not agree to hold any of the Shares for any minimum period of time and reserves the right, subject to the provisions of the
Transaction Agreements, at all times to sell or otherwise dispose of all or any part of such Shares pursuant to an effective registration statement under the Securities Act or under an exemption from such registration and in compliance with
applicable federal and state securities laws. Such Investor is acquiring the Shares hereunder in the ordinary course of its business. 
 4.4 Investor Status. At the time such Investor was offered the Shares, it was, and at the date hereof it is, an “accredited investor” as defined in Rule 501(a) under the Securities Act. 
 4.5 General Solicitation. Such Investor is not purchasing the Shares as a result of any advertisement, article, notice or other
communication regarding the Shares published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general advertisement. 
 4.6 Experience of Such Investor. Such Investor, either alone or together with its representatives, has such knowledge, sophistication
and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Shares, and has so evaluated the merits and risks of such investment. Such Investor is able to bear the
economic risk of an investment in the Shares and, at the present time, is able to afford a complete loss of such investment. 
  

 -12- 

 4.7 Access to Information. Such Investor acknowledges that it has had the opportunity
to review the Company Information and has been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of
the Shares and the merits and risks of investing in the Shares; (ii) access to information about the Company and the Subsidiaries and their respective financial condition, results of operations, business, properties, management and prospects
sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed
investment decision with respect to the investment. Neither such inquiries nor any other investigation conducted by or on behalf of such Investor or its representatives or counsel shall modify, amend or affect such Investor’s right to rely on
the truth, accuracy and completeness of the Company Information and the Company’s representations and warranties contained in the Transaction Agreements. Such Investor has sought such accounting, legal and tax advice as it has considered
necessary to make an informed decision with respect to its acquisition of the Shares. 
 4.8 Certain
Trading Activities. Other than with respect to the transactions contemplated herein, since the earlier to occur of (1) the time that such Investor was first contacted by the Company or any other Person regarding the transactions
contemplated hereby and (2) the tenth (10th) day
prior to the date of this Agreement, neither the Investor nor any Affiliate of such Investor which (x) had knowledge of the transactions contemplated hereby, (y) has or shares discretion relating to such Investor’s investments or
trading or information concerning such Investor’s investments, including in respect of the Shares, and (z) is subject to such Investor’s review or input concerning such Affiliate’s investments or trading (collectively,
“Trading Affiliates”) has directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with such Investor or Trading Affiliate, effected or agreed to effect any purchases or sales of the securities
of the Company (including, without limitation, any Short Sales involving the Company’s securities). Notwithstanding the foregoing, in the case of a Investor and/or Trading Affiliate that is, individually or collectively, a multi-managed
investment bank or vehicle whereby separate portfolio managers manage separate portions of such Investor’s or Trading Affiliate’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio
managers managing other portions of such Investor’s or Trading Affiliate’s assets, the representation set forth above shall apply only with respect to the portion of assets managed by the portfolio manager that have knowledge about the
financing transaction contemplated by this Agreement. Other than to other Persons party to this Agreement, such Investor has maintained the confidentiality of all disclosures made to it in connection with this transaction (including the existence
and terms of this transaction). 
 4.9 Brokers and Finders. No Person will have, as a result of the transactions
contemplated by this Agreement, any valid right, interest or claim against or upon the Company or any Investor for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of the
Investor. 
  

 -13- 

 4.10 Independent Investment Decision. Such Investor has independently evaluated the
merits of its decision to purchase Shares pursuant to this Agreement, and such Investor confirms that it has not relied on the advice of any other Investor’s business and/or legal counsel in making such decision. Such Investor understands that
nothing in this Agreement or any other materials presented by or on behalf of the Company to the Investor in connection with the purchase of the Shares constitutes legal, tax or investment advice. Such Investor has consulted such legal, tax and
investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of the Shares. 
 4.11 Reliance on Exemptions. Such Investor understands that the Shares being offered and sold to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the
Company is relying in part upon the truth and accuracy of, and such Investor’s compliance with, the representations, warranties, agreements, acknowledgements and understandings of such Investor set forth herein in order to determine the
availability of such exemptions and the eligibility of such Investor to acquire the Shares. 
 4.12 No Governmental
Review. Such Investor understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Shares or the fairness or suitability of the investment
in the Shares nor have such authorities passed upon or endorsed the merits of the offering of the Shares. 
 4.13 Beneficial
Ownership. The purchase by such Investor of the Shares at the Closing will not result in such Investor (individually or together with any other Person with whom such Investor has identified, or will have identified, itself as part of a
“group” in a public filing made with the Commission involving the Company’s securities) acquiring, or obtaining the right to acquire, in excess of 19.999% of the outstanding shares of Common Stock or the voting power of the Company on
a post transaction basis that assumes that such Closing shall have occurred. Such Investor does not presently intend to, alone or together with others, make a public filing with the Commission to disclose that it has (or that it together with such
other Persons have) acquired, or obtained the right to acquire, as a result of such Closing (when added to any other securities of the Company that it or they then own or have the right to acquire), in excess of 19.999% of the outstanding shares of
Common Stock or the voting power of the Company on a post transaction basis that assumes that each Closing shall have occurred. 
 4.14 Residency. Such Investor’s residence (if an individual) or offices in which its investment decision with respect to the Shares was made (if an entity) are located at the address immediately below such Investor’s name
on its signature page hereto. 
 5. Transfer Restrictions. 
 5.1 Compliance with Laws. Notwithstanding any other provision of this Section 5, each Investor covenants that the Shares may be
disposed of only pursuant to an effective registration statement under, and in compliance with the requirements of, the Securities Act, or pursuant to an available exemption from, or in a transaction not subject to, the registration requirements of
the Securities Act, and in compliance with any applicable state and federal securities laws. In connection with any transfer of the Shares other than (i) pursuant to an effective registration statement, (ii) to the Company,
(iii) pursuant to Rule 144 (provided that the Investor provides the Company with reasonable assurances (in the form of seller and broker representation letters) that the securities may be sold pursuant to such rule) or Rule 144A,
(iv) pursuant to Rule 144(b) following the applicable holding period or (v) in connection with a bona fide pledge as contemplated in Section 5.2, the Company may require the transferor thereof to provide to the Company and the
transfer agent for the Common Stock (the “Transfer Agent”) an opinion of counsel selected by the transferor and reasonably acceptable to the Company and the Transfer Agent, the form and substance of which opinion shall be reasonably
satisfactory to the Company and the Transfer Agent, to the effect that such transfer does not require registration of such transferred Shares under the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be
bound by the terms of this Agreement and shall have the rights of a Investor under the Transaction Agreements. 
  

 -14- 

 5.2 Legends. Certificates evidencing the Shares shall bear any legend as required by
the “blue sky” laws of any state and a restrictive legend in substantially the following form, until such time as they are not required under Section 5.1: 
 THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OR (B) AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY AND ITS TRANSFER AGENT OR (II) UNLESS SOLD PURSUANT TO RULE
144 UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. 
 The Company acknowledges and agrees that an Investor may from time to time pledge, and/or grant a security interest in, some or all of the
legended Shares in connection with applicable securities laws, pursuant to a bona fide margin agreement in compliance with a bona fide margin loan. Such a pledge would not be subject to approval or consent of the Company and no legal opinion of
legal counsel to the pledgee, secured party or pledgor shall be required in connection with the pledge, but such legal opinion shall be required in connection with a subsequent transfer or foreclosure following default by the Investor transferee of
the pledge. No notice shall be required of such pledge, but Investor’s transferee shall promptly notify the Company of any such subsequent transfer or foreclosure. Each Investor acknowledges that the Company shall not be responsible for any
pledges relating to, or the grant of any security interest in, any of the Shares or for any agreement, understanding or arrangement between any Investor and its pledgee or secured party. At the appropriate Investor’s expense, the Company will
execute and deliver such reasonable documentation as a pledgee or secured party of Shares may reasonably request in connection with a pledge or transfer of the Shares, including the preparation and filing of any required prospectus supplement under
Rule 424(b)(3) of the Securities Act or other applicable provision of the Securities Act to appropriately amend the list of Selling Stockholders thereunder. Each Investor acknowledges and agrees that, except as otherwise provided in
Section 5.3, any Shares subject to a pledge or security interest as contemplated by this Section 5.2 shall continue to bear the legend set forth in this Section 5.2 and be subject to the restrictions on transfer set forth in
Section 5.1. 
  

 -15- 

 5.3 Removal of Legends. The legend set forth in Section 5.2 above shall be
removed and the Company shall issue a certificate without such legend or any other legend to the holder of the applicable Shares upon which it is stamped or issue to such holder by electronic delivery at the applicable balance account at the
Depository Trust Company (“DTC”), if (i) such Shares are registered for resale under the Securities Act (provided that the Investors agree to only sell such Shares when, and as permitted, by the effective registration statement
permitting such resale), (ii) such Shares are sold or transferred pursuant to Rule 144 (if the transferor is not an Affiliate of the Company), or (iii) such Shares are eligible for sale under Rule 144 without any volume or manner of sale
restrictions. Following the earlier of (i) the effective date of the registration statement covering the resale of the Shares (the “Effective Date”) or (ii) such time as a legend is no longer required for the Shares, the Company
shall cause its legal counsel to issue to the Transfer Agent an opinion in the form attached as Exhibit      hereto. Any fees (with respect to the Transfer Agent, Company counsel or otherwise) associated with the issuance of such
opinion or the removal of such legend shall be borne by the Company. Following the Effective Date, or at such earlier time as a legend is no longer required for certain Shares, the Company will no later than three (3) Trading Days following the
delivery by an Investor to the Company or the Transfer Agent (with notice to the Company) of a legended certificate representing such Shares (endorsed or with stock powers attached, signatures guaranteed, and otherwise in form necessary to affect
the reissuance and/or transfer) (such third Trading Day, the “Legend Removal Date”) deliver or cause to be delivered to such Investor a certificate representing such Shares that is free from all restrictive and other legends. The
Company may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section 5. Certificates for Shares subject to legend removal hereunder may be transmitted by
the Transfer Agent to the Investors by crediting the account of the Investor’s prime broker with DTC. 
 5.4
Acknowledgement. Each Investor hereunder acknowledges its primary responsibilities under the Securities Act and accordingly will not sell or otherwise transfer the Shares or any interest therein without complying with the requirements of the
Securities Act. 
 6. Conditions to the Company’s Obligation to Sell. 
 6.1 Closing Date. The obligation of the Company hereunder to issue and sell the Shares to the Investors at the Closing is subject to
the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion: 
 (a) The Investors shall have delivered to the Company (i) the Purchase Price for the Shares by wire transfer of immediately available
funds pursuant to the wire instructions provided by the Company, and (ii) properly completed Securities Questionnaires substantially in the form attached hereto as Exhibit A. 
  

 -16- 

 (b) The representations and warranties of the Investors shall be true and correct in all
material respects (except for those representations and warranties that are qualified by materiality, which shall be true and correct in all respects) as of the date when made and as of the Closing Date as though made at that time (except for
representations and warranties that speak as of a specific date), and the Investors shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed,
satisfied or complied with by the Investors at or prior to the Closing Date. 
 7. Conditions to the Investors’
Obligation to Purchase. 
 7.1 Closing Date. The obligation of the Investors hereunder to purchase the Shares at the
Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for the Investor’s sole benefit and may be waived by the Investor at any time in its sole discretion
by providing the Company with prior written notice thereof: 
 (a) The Company shall have delivered to the Investors evidence
of receipt by the Company’s transfer agent of irrevocable instructions to issue the Shares to the Investor in accordance with the instructions provided in Exhibit A hereto. 
 (b) The Investors shall have received the opinion of Loeb & Loeb LLP, the Company’s outside counsel, dated as of the Closing
Date, in substantially the form of Exhibit B attached hereto. 
 (c) The Company shall have delivered to the Investors
certificates evidencing the formation and good standing of the Company issued by the Secretary of State of the State of Delaware, as of a date within three Business Days of the Closing Date. 
 (d) The Company shall have delivered to the Investors certificates evidencing each of the Company’s qualification as a foreign
corporation and good standing issued by the Secretary of State (or comparable office) of each jurisdiction in which the Company or the applicable Subsidiary conducts business, as of a date within five Business Days of the Closing Date. 

(e) The Company shall have delivered to the Investors a certified copy of its certificate of incorporation as certified by the Secretary
of State of the State of Delaware within five Business Days of the Closing Date. 
 (f) The Company shall have delivered a
certificate of the Secretary of the Company, dated as of the Closing Date, (a) certifying the resolutions adopted by the board of directors of the Company or a duly authorized committee thereof approving the transactions contemplated by this
Agreement and the other documents or agreements executed in connection with the transactions contemplated hereunder and the issuance of the Shares, and (b) certifying the current versions of the certificate or articles of incorporation, as
amended, and by-laws of the Company. 
  

 -17- 

 (g) The representations and warranties of the Company shall be true and correct in all
material respects (except for those representations and warranties that are qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) as of the date when made and as of the Closing Date as though made at
that time (except for representations and warranties that speak as of a specific date) and the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to
be performed, satisfied or complied with by the Company at or prior to the Closing Date. 
 (h) The Company shall have
performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by it at or prior to the Closing. 
 (i) The Company shall have delivered to the Investors a certificate, dated as of the Closing Date and signed by its Chief Executive Officer
or its President certifying to the fulfillment of the conditions specified in Sections 7.1(g) and (h) in a form reasonably acceptable to the Investors. 
 (j) No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction
that prohibits the consummation of any of the transactions contemplated by this Agreement. 
 (k) The Company shall have
obtained in a timely fashion any and all consents, permits, approvals, registrations and waivers necessary for consummation of the purchase and sale of the Shares at the Closing, all of which shall be and remain so long as necessary in full force
and effect. 
 (l) Since the date of execution of this Agreement, no event or series of events shall have occurred that has had
or would reasonably be expected to have a Material Adverse Effect. 
 8. Indemnification. 
 8.1 Indemnification of the Investors. The Company will indemnify and hold the Investors and their respective directors, officers,
stockholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls the Investor (within
the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, stockholders, agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person
holding such titles notwithstanding a lack of such title or any other title) of such controlling person (each, an “Investor Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs
and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Investor Party may suffer or incur as a result of any breach of any of the representations,
warranties, covenants or agreements made by the Company in this Agreement or in any other documents or agreements executed in connection with the transactions contemplated hereunder. The Company will not be liable to any Investor Party under this
Agreement to the extent, but only to the extent that a loss, claim, damage or liability is attributable to any Investor Party’s breach of any of the representations, warranties, covenants or agreements made by such Investor Party in this
Agreement. 
  

 -18- 

 8.2 Conduct of Indemnification Proceedings. Promptly after receipt by
any Person (the “Indemnified Person”) of notice of any demand, claim or circumstances which would or might give rise to a claim or the commencement of any action, Proceeding or investigation in respect of which indemnity may be
sought pursuant to Section 8(a), such Indemnified Person shall promptly notify the Company in writing and the Company shall assume the defense thereof, including the employment of counsel reasonably satisfactory to such Indemnified Person, and
shall assume the payment of all fees and expenses; provided, however, that the failure of any Indemnified Person so to notify the Company shall not relieve the Company of its obligations hereunder except to the extent that the Company is
actually and materially prejudiced by such failure to notify. In any such Proceeding, any Indemnified Person shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person
unless: (i) the Company and the Indemnified Person shall have mutually agreed to the retention of such counsel; (ii) the Company shall have failed promptly to assume the defense of such Proceeding and to employ counsel reasonably
satisfactory to such Indemnified Person in such Proceeding; or (iii) in the reasonable judgment of counsel to such Indemnified Person, representation of both parties by the same counsel would be inappropriate due to actual or potential
differing interests between them. The Company shall not be liable for any settlement of any Proceeding effected without its written consent, which consent shall not be unreasonably withheld, delayed or conditioned. Without the prior written consent
of the Indemnified Person, which consent shall not be unreasonably withheld, delayed or conditioned, the Company shall not effect any settlement of any pending or threatened Proceeding in respect of which any Indemnified Person is or could have been
a party and indemnity could have been sought hereunder by such Indemnified Person, unless such settlement includes an unconditional release of such Indemnified Person from all liability arising out of such Proceeding. 
 9. Survival of Representations, Warranties and Agreements. Notwithstanding any investigation made by any party to this Agreement, all
covenants, agreements, representations and warranties made by the Company and the Investors herein shall survive the execution of this Agreement, and the payment by the Investor for the Shares being purchased pursuant to this Agreement. 

 

 -19- 

 10. General Release. Excepting only their respective rights to enforce the
terms of this Agreement, each of the Investors fully and forever releases, remises and fully discharges the Company and its agents, employees, predecessors, representatives, subsidiaries, affiliates, parents, divisions, owners, officers, directors,
attorneys, successors and assigns from and against all actions, proceedings, causes of action, claims for relief, demands, rights, titles, interests, damages, losses, costs, expenses, disbursements (including attorneys’ fees), obligations,
liabilities and other claims of every nature whatsoever, made or asserted, known, unknown or suspect as of the date of this Agreement, including, but not limited to, any and all claims arising out of or relating to the Term Sheet dated
November 30, 2009, and covenants not to sue or otherwise initiate or cause to be instituted or in any way participate in any proceedings or actions concerning any such matters. It is expressly agreed that the claims released pursuant to this
Section 10 include all claims against individual employees and officers of the Company whether or not such employees were acting within the course or scope of their employment. Section 1542 of the California Civil Code provides as follows:

 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH A CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING
THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.” 
 Each Investor hereby expressly,
knowingly and voluntarily waives and relinquishes all rights and benefits afforded by Section 1542 or any analogous state or federal law or regulation, and in so doing, understands and acknowledges the significance and consequence of such
specific waiver. 
 11. Notices. All notices, requests, consents and other communications hereunder shall be in writing,
shall be mailed (A) if within domestic United States by first-class registered or certified airmail, or nationally recognized overnight express courier, postage prepaid, or by facsimile, or (B) if delivered from outside the United States,
by International Federal Express or facsimile, and shall be deemed given (i) if delivered by first-class registered or certified mail domestic, three Business Days after so mailed, (ii) if delivered by nationally recognized overnight
carrier, one (1) Business Day after so mailed, (iii) if delivered by International Federal Express, two (2) Business Days after so mailed, (iv) if delivered by facsimile, upon electric confirmation of receipt and shall be
delivered as addressed as follows: 
 (a) if to the Company, to: 
 Titan Pharmaceuticals, Inc. 
 400 Oyster Point Blvd., Suite #505 
 South San Francisco, CA 94080 
 Attn: President 
 Phone: (650) 989-2260 
 Telecopy: (650) 244-4956 
 (b) with a copy to: 
 Loeb and Loeb LLP 
 345 Park Avenue 
 New York, NY 10154 
 Attn: Fran Stoller 
 Phone: (212) 407-4935 
 Telecopy: (212) 214-0706 
 (c) if to the Investors, at the address or
facsimile number on the Securities Questionnaire attached as Exhibit A hereto, or at such other address or addresses as may have been furnished to the Company in writing. 
  

 -20- 

 12. Termination. Except as otherwise provided in this Agreement, this Agreement shall
terminate on the earlier of (a) the date on which the Company and the Investors agree by mutual written consent to terminate this Agreement, and (b) the Closing Date. 
 13. Changes. This Agreement may not be modified or amended except pursuant to an instrument in writing signed by the Company and the
Investors. 
 14. Headings. The headings of the various sections of this Agreement have been inserted for convenience of
reference only and shall not be deemed to be part of this Agreement. 
 15. Severability. In case any provision contained
in this Agreement should be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby. 
 16. Governing Law. This Agreement shall be deemed to be a contract made under the laws of New York, and for all purposes shall be
governed by and construed in accordance with the laws of New York, including, without limitation, Section 5-1401 of the New York General Obligations Law. Each party agrees that all Proceedings concerning the interpretations, enforcement and
defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective Affiliates, employees or agents) shall be commenced exclusively in the New York Courts. Each party hereto hereby irrevocably submits
to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in
any Proceeding, any claim that it is not personally subject to the jurisdiction of any such New York Court, or that such Proceeding has been commenced in an improper or inconvenient forum. Each party hereto hereby irrevocably waives personal service
of process and consents to process being served in any such Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this
Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY
HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 17. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of
which, when taken together, shall constitute but one instrument, and shall become effective when one or more counterparts have been signed by each party hereto and delivered to the other parties. In the event that any signature is delivered by
facsimile transmission, or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as
if such facsimile signature page were an original thereof. 
  

 -21- 

 18. Fees and Expenses. The Company and the Investors shall each pay the fees and
expenses of their respective advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party in connection with the negotiation, preparation, execution, delivery and performance of this Agreement. The Company
shall pay all transfer agent fees, stamp taxes and other taxes and duties levied in connection with the sale and issuance of the Shares to the Investors. 
 19. Entire Agreement. The Transaction Agreements, together with the Exhibits and Schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and
supersede all prior agreements, understandings, discussions and representations, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules. At or after the Closing, and
without further consideration, the Company and the Investors will execute and deliver to the other such further documents as may be reasonably requested in order to give practical effect to the intention of the parties under the Transaction
Agreements. 
 20. Remedies. In addition to being entitled to exercise all rights provided herein or granted by law,
including recovery of damages, the Investor shall be entitled to specific performance under this Agreement. The Company agrees that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations
described in the foregoing sentence and hereby agree to waive in any action for specific performance of any such obligation (other than in connection with any action for a temporary restraining order) the defense that a remedy at law would be
adequate. 
 21. Adjustments in Share Numbers and Prices. In the event of any stock split, subdivision, dividend or
distribution payable in shares of Common Stock (or other securities or rights convertible into, or entitling the holder thereof to receive directly or indirectly shares of Common Stock), combination or other similar recapitalization or event
occurring after the date hereof and prior to the Closing, each reference in this Agreement to a number of Shares or a price per share shall be deemed to be amended to appropriately account for such event. 
  

 -22- 

 IN WITNESS WHEREOF, the Company and the Investor have executed this Stock Purchase Agreement
as of the date first set forth above. 
  

			
	TITAN PHARMACEUTICALS, INC.
		
	By:	 	 /s/ Sunil Bhonsle

		 	Name: Sunil Bhonsle
		 	Title: President
	
	INVESTORS:
	
	HENRY C. BEINSTEIN
		
		 	 /s/ Harry C. Beinstein

		 	Signature
	
	HENRY C. BEINSTEIN ROLLOVER IRA
		
	By:	 	 /s/ Harry C. Beinstein

		 	Name: Harry C. Beinstein
		 	Title: Rollover IRA a/c

  

 -23- 

 EXHIBIT A 
 SECURITIES QUESTIONNAIRE 
 Pursuant to
Section 6.1 of this Agreement, please provide us with the following information: 
  

					
	1.	  	The exact name that your interests in the Shares are to be registered in:	  	  

			
	2.	  	The relationship between the Investor and the registered holder listed in response to item 1 above:	  	  

			
	3.	  	The mailing address of the registered holder listed in response to item 1 above:	  	  

			
	4.	  	The telephone number of the registered holder listed in response to item 1 above:	  	  

			
	5.	  	The facsimile number of the registered holder listed in response to item 1 above:	  	  

			
	6.	  	The Social Security Number or Tax Identification Number of the registered holder listed in the response to item 1 above:	  	  

			
	7.	  	You represented in the Stock Purchase Agreement that you are an “accredited investor” (as defined in Rule 501(a)(1), (2), (3), (5), (6) or (7) of Regulation D under the
Securities Act of 1933, as amended).	  	

  

 A-1U.S. Severance Program

 Exhibit 10.2.5 

 

 

 Calpine Corporation U.S. Severance Program 
 Purpose 
 The purpose of the Calpine
Corporation U.S. Severance Program (“Program”) is to provide regular U.S. employees who are laid-off as a result of a reduction in workforce or restructuring activities (“Qualifying Event”) in Calpine Corporation, and all its
U.S. subsidiaries (collectively “the Company”), with severance benefits in order to assist them with the transition out of the Company. This Program is intended to be an “employee welfare benefit plan” as defined in ERISA. The
Program is not intended to be a pension plan under section 3(2)(A) of ERISA and shall be maintained and administered so as not to be such a plan. 
 Eligibility 
 Subject to the noted exceptions below, a regular employee who has been terminated due to a Qualifying Event will
be eligible for severance benefits. Exceptions to eligibility include employees with a written employment agreement, employees currently on an unpaid personal leave of absence for longer than ninety (90) days duration, employees refusing a
substantially equivalent position in the same geographic area within Calpine (including an offer of such a position with a third party as the result of a divestiture/sale transaction) and those employees specifically excluded as outlined in their
employment offers. Eligibility for the benefits under this Program is determined by the Company, in its sole discretion, that the employee’s termination is not caused by any other reason other than a Qualifying Event, including, but not limited
to resignation for any reason (even if the employee felt compelled to resign), retirement, death, disability, or discharge for deficient performance or misconduct. 
 An employee who has been terminated due to a Qualifying Event will be entitled to benefits under the Program so long as the employee satisfies the Company’s requests (in its sole discretion), such as
aiding in the location of files, preparing accounting records, returning all Company property in the employee’s possession, or repaying any amounts the employee owes the Company. Employees notified of lay-off shall not be eligible to
participate in the Company’s disability programs or paid time off programs. 
 SVPs and above are subject to the Calpine Corporation Change
in Control and Severance Benefits Plan and not this Program. 
 Termination and Payment Procedures 
 Employment will terminate on the date an employee is laid off. Notice of termination will be provided to the employee prior to the layoff date, when
reasonably possible. An affected employee will be eligible to receive severance as outlined in the table below. 
  

 August 2009 

  Page
 2
 
 August 2009 
  

 Eligible employees will receive severance pay in the form of base salary continuation. Base salary
continuation shall commence within one to two pay periods following the seven (7) day revocation period outlined in the severance agreement and release (enclosed herewith). Should an employee choose not to sign the severance agreement and
release, or timely revoke the signed agreement, such employee will not be eligible for any severance payment or benefits. 
 SEVERANCE
BENEFITS 
 Eligible employees, whom the Plan Administrator, in its sole discretion, determines have satisfied all of the Program
requirements for severance benefits will receive severance pay and a choice of either outplacement services or benefits continuation, all as described below. 
 Severance Pay 
 Severance pay under this Program shall be the amount of salary continuance
the employee is eligible to receive as outlined in the table below (less applicable withholdings). The rate of severance salary continuance will be set at the employee’s established base pay rate as of the employee’s notification of
lay-off date. 
 The Choice of Outplacement Services or Benefits Premium Subsidy 
 Employees will have the choice between outplacement services or the Company’s subsidized benefits continuation. Employees will indicate their choice
where appropriate on the release of claims form included with their severance package. An outline of the two options is provided below1: 
  

									
	 Employee
 Level
	  	 Salary Continuation
	  	 Benefits
 Continuation Option
	  	 or
	  	 Outplacement Option

					
	VPs	  	26 weeks base salary continuation	  	26 weeks benefits continuation	  	or	  	 20 hours of Home Based
 Transition services

					
	Directors and Managers	  	17 weeks base salary continuation	  	17 weeks benefits continuation	  	or	  	 16 hours of Home Based
 Transition services

					
	All Others	  	2 weeks per full year of service (based on service date)2 with a minimum of 4 weeks and up to a maximum of 12 weeks base salary continuation	  	12 weeks benefits continuation	  	or	  	 12 hours of Home Based
 Transition services

  

	1	If an employee finds external employment and is eligible to receive benefits during the employee’s salary continuation period, the employee must notify the
Company. Benefits continuation and outplacement services shall terminate as of the employee’s benefits eligibility date with the external employer. Salary continuation is not affected by procurement of external employment.

  

	2	Service date is measured from an employee’s hire date or service date (e.g. the former practice of granting service credit to temporary employees converted
to regular full-time or acquired employees). 

  Page
 3
 
 August 2009 
  

 If Company rehires an employee during the period of severance salary continuance, any outstanding
balance payout would cease and the employee would be placed back on active pay status. 
 Group Health Benefits Continuation Option

 The period of time outlined for benefits continuation (see table above) will commence on the day following the employee’s layoff
date. If COBRA is elected by the employee, the Company will pay COBRA premiums for the employee and the employee’s covered dependents for the period specified under “Benefits Continuation Option” in the table above and pursuant to
plan administration procedures. COBRA eligibility commences on the first day of the month following the month in which an employee is terminated. The health benefits coverage available under COBRA provides employees and their covered dependents with
the option to select continued participation in the Company’s medical, dental and vision plans and to continue the services of Calpine’s Employee Assistance Program (EAP) and, optionally, the Health Care Flexible Spending Plan (on an
after-tax basis). The period of time the Company pays for COBRA benefits does not extend the employee’s standard benefits continuation under COBRA regulations. Calpine’s contribution toward your continued medical coverage may be taxable in
the year received. Additional information regarding COBRA will be provided under separate cover. 
 Plan Administration 
 The Company is the Plan Administrator and is a named fiduciary, within the meaning of ERISA §§3(16)(A) and 402. The Plan Administrator shall have
full discretionary authority to administer and interpret the Program, including discretionary authority to determine eligibility for participation and for benefits under the terms of the Program. The Plan Administrator’s duties under the
Program, which shall be carried out through its officers and employees, acting on behalf of and in the name of the Company in their capacities as officers and employees and not as individual fiduciaries, shall include the following: 
 A. Benefit Determinations. The Plan Administrator shall have the final discretionary authority in determining claims for severance benefits
including, but not limited to, determining eligibility to participate, determining whether and to what extent severance benefits are provided by the Program and authorizing payment of benefits. 
 B. Appointments. The Plan Administrator shall engage individuals or entities to perform such legal, actuarial, accounting and other professional and
clerical services as may be necessary or proper, and to terminate the services of these individuals or entities upon such notice as the Plan Administrator, in its sole discretion, deems reasonable and prudent. 
 C. Rules. The Plan Administrator shall make and publish such rules for administration of the Program as are deemed necessary or appropriate.

 D. Reports. The Plan Administrator shall supply information and reports to the Internal Revenue Service, Department of Labor and
eligible employees, including the filing of annual reports, and the furnishing summary plan descriptions. 

  Page
 4
 
 August 2009 
  

 E. Corrections. The Plan Administrator shall correct any error or miscalculation, to the extent
practical. 
 F. Claims Procedure. The Plan Administrator shall participate in the claims procedure for severance benefits described
below. 
 G. Compliance with Applicable Laws. The Plan Administrator shall have final discretionary authority in determining claims for
violation of applicable employment laws, specifically including federal state or local laws applicable laws prohibiting discrimination on the basis of race, color, religion, sex, sexual orientation, age, national origin, marital status or physical
or mental disability unrelated in nature and extent so as to reasonably preclude the performance of employment. 
 Binding Effect of
Determinations. Any final determination by a named fiduciary or its delegate will be binding and conclusive upon all persons. 
 Drafting
Errors. If, due to errors in drafting, any Program provision does not accurately reflect its intended meaning, as demonstrated by consistent interpretations or other evidence of intent, or as determined by the Plan Administrator in its sole
discretion, the provision shall be considered ambiguous and shall be interpreted by the Plan Administrator and all Program fiduciaries in a fashion consistent with its intent, as determined in the sole discretion of the Plan Administrator. The Plan
Administrator shall amend the Program retroactively to cure any such ambiguity. 
 Fiduciary Disclosure Authority. No Program fiduciary
shall have the authority to answer questions about any pending or final business decision of the Company or any affiliate that has not been officially announced, to make disclosures about such matters, or even to discuss them, and no person shall
rely on any unauthorized, unofficial disclosure. Thus, before a decision is officially announced, no fiduciary is authorized to tell any person, for example, that he or she will or will not be laid off or that the Company will or will not offer exit
incentives in the future. Nothing in this subsection shall preclude any fiduciary from fully participating in the consideration, making, or official announcement of any business decision. 
 Amendment And Termination 
 The Program may
be amended or terminated at any time, in the sole discretion of the Company, as plan sponsor, by a written instrument signed by an authorized Company employee 
 Claims Procedures 
 Claims Regarding Eligibility to Participate and Payment of Severance
Benefits. All claims relating to an individual’s eligibility to participate in the Program, the payment of severance benefits or a violation of applicable laws shall be handled in accordance with this section. 
 In general, eligible employees shall receive severance benefits after returning an executed severance agreement and release in a form and at a time
acceptable to the Plan Administrator. Any other individual claiming eligibility to participate in the Program or having a claim

  Page
 5
 
 August 2009 
  

 
regarding a severance benefit or violation of applicable laws must complete and file a claim or an application for benefits with the Plan Administrator pursuant to procedures established by the
Plan Administrator. Pursuant to its discretionary authority to administer and interpret the Program and to determine eligibility for benefits under the terms of the Program, the Plan Administrator will review all claims and applications for
severance benefits. 
 If any such claim is wholly or partially denied, Plan Administrator will notify such person of its decision in writing.
Such notification will contain (i) specific reasons for the denial, (ii) specific reference to pertinent Program provisions on which the denial is based, (iii) a description of any additional material or information necessary for such
person to perfect such claim and an explanation of why such material or information is necessary, and (iv) information as to the steps to be taken if the person wishes to submit a request for appeal. Such notification will be given within
ninety (90) days after the claim is received by Plan Administrator (or within one hundred eighty (180) days, if special circumstances require an extension of time for processing the claim, and if written notice of such extension and
circumstances is given to such person within the initial ninety (90) day period). 
 Within sixty (60) days after the date on which a
person receives a written notice of a denied claim, such person (or his or her duly authorized representative) may file a written request with Plan Administrator for an appeal of his denied claim and of pertinent documents. The request should
include: 
  

	 	•	 	 A description of the claim sufficient to identify the claim; 

  

	 	•	 	 A summary of all the reasons why the person believes the benefits should be paid, including any documents, records or other information relating to or
that support the claim; and 

  

	 	•	 	 Any issues or comments that the person thinks are pertinent to the claim. 

 During the time limit for requesting an appeal, upon request and free of charge, the person will be given reasonable access to, and copies of, all
documents, records and other information (other than legally or medically privileged documents) relevant to the claim for benefits. 
 The Plan
Administrator will notify such person of its decision in writing. The decision on appeal will be made within sixty (60) days after the request for an appeal is received by Plan Administrator (or within one hundred twenty (120) days, if
special circumstances require an extension of time for processing the request, such as an election by Plan Administrator to hold a hearing, and if written notice of such extension and circumstances is given to such person within the initial sixty
(60) day period). If the original denial is upheld in whole or in part, the notification contain specific reasons for the decision as well as specific references to pertinent Program provisions on which the denial is based. It will also contain
a statement that the person will be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information (other than legally or medically privileged documents) relevant to the claim for
benefits, and a statement describing any voluntary appeal procedures offered by the Program and the right to bring an action under Section 502(a) of ERISA following an adverse determination after completion of all levels of appeal required by
the Program. 

  Page
 6
 
 August 2009 
  

 Time Limits. All claims for Plan severance benefits must be filed no later than one year
following the date on which an individual ceased to be an employee. Any claim not made within the applicable time limit shall be waived. 
 Exhaustion of Remedies. Any claimant must exhaust these claims procedures prior to pursuing any other remedy. 
 ERISA Rights

 ERISA ADMINISTRATIVE FACTS AND STATEMENT OF ERISA RIGHTS 
  

			
	Name of Plan:	  	Calpine Corporation U.S. Severance Program
		
	Plan Number:	  	510
		
	Type of Plan:	  	Welfare plan providing severance benefits. This plan is subject to the Employee Retirement Income Security Act of 1974, as amended (ERISA), and is intended to comply with all
other applicable federal and state laws.
		
	Plan Year:	  	January 1 through December 31
		
	Plan Sponsor:	  	 Calpine Corporation
 4160
Dublin Boulevard
 Suite 100
 Dublin, CA
94568

		
	EIN:	  	77-0212977
		
	 Plan Administrator and
 Agent
for Legal Process:
	  	 Calpine Corporation
 c/o
Director of Human Resources

		
	Source of Contributions:	  	Benefits are paid from Employer assets.
		
	Benefit Payment:	  	Benefit payments are administered in accordance with the provisions of the Plan.
		
	Funding Medium:	  	Benefits are self-funded by Calpine Corporation
		
	Trustee:	  	None
		
	Type of Administration:	  	The Program will be administered by the plan sponsor for the exclusive purpose of providing to participants severance benefits in accordance with the provisions of the Program.

  Page
 7
 
 August 2009 
  

 The following statement of ERISA rights is required by federal law and regulation: 
 As a participant in the Calpine Corporation U.S. Severance Program, you are entitled to certain rights and protections under the Employee Retirement Income
Security Act of 1974 (ERISA). ERISA provides that all plan participants will be entitled to: 
 Receive Information About Your Plan and
Benefits 
  

	 	•	 	 Examine, without charge, at the plan administrator’s office and at other specified locations, all documents governing the plan, including a copy
of the latest annual report (Form 5500 Series) filed by the plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration. 

  

	 	•	 	 Obtain, upon written request to the plan administrator, copies of documents governing the operation of the plan, including updated summary plan
description. The administrator may make a reasonable charge for the copies. 

  

	 	•	 	 Receive a summary of the plan’s annual financial report. The plan administrator is required by law to furnish each participant with a copy of this
summary annual report. 

 Prudent Actions by Plan Fiduciaries 
 In addition to creating rights for plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit
plan. The people who operate your plan, called “fiduciaries” of the plan, have a duty to do so prudently and in the interest of you and other plan participants and beneficiaries. No one, including your employer or any other person, may
fire you or otherwise discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising your rights under ERISA. 
 Enforce Your Rights 
 If your claim for a welfare benefit is denied or ignored, in whole or in part, you have a right to know
why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules. 
 Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of plan documents or the latest annual report from the plan and do not receive them within 30 days, you may file suit in a federal
court. In such a case, the court may require the plan administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the administrator.
If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or federal court. If it should happen that plan fiduciaries misuse the plan’s money, or if you are discriminated against for
asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court. The court will decide who should pay court costs and legal fees. If you are successful the court may order the person you have
sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous. 

  Page
 8
 
 August 2009 
  

 Assistance with Your Questions 
 If you have any questions about your plan, you should contact the plan administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in
obtaining documents from the plan administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and
Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the
publications hotline of the Employee Benefits Security Administration. 
 Relation to Other Calpine Programs 
 The amount and duration of severance benefits payable to employees shall be determined exclusively under this Program, and no employee shall be entitled to
any severance benefits except as specifically authorized by this Program or as provided in a written employment agreement. The Company shall have no responsibility to provide any benefits in excess of amounts described in this Program. 

In general, an eligible employee’s participation in any other program or arrangement will terminate in accordance with the terms of the individual
program or arrangement. Solely for the purpose of information and clarification, but without incorporating any other benefits into this Program, the Company maintains the following additional programs or arrangements, and the terms of each
individual programs or arrangement listed below (and not this Program) will govern the impact of a lay-off. No inference should be drawn about the impact of any lay-off on any arrangement not listed below. 
 Annual Bonus (CIP) 
 Employees notified of
lay-off prior to an annual bonus pay-out date, will not be eligible to receive an annual bonus, full or prorated, for the prior or current year under the Calpine Incentive Plan (CIP) or any other incentive plans. 
 Cash-Out of Accrued, But Unused Vacation Hours 
 Pre-petition vacation hours not used as of your date of separation will be cashed out upon termination. Post-petition vacation hours accrued and not used as of your date of separation will be cashed upon termination. See the Calpine
Vacation Policy revised January 1, 2009 for more details. 
 The term “pre-petition” refers to the period prior to Calpine’s
filing for Chapter 11 bankruptcy protection on December 20, 2005. The term “post-petition” refers to the period after Calpine’s filing for Chapter 11 bankruptcy protection on December 20, 2005. 

  Page
 9
 
 August 2009 
  

 Stock Options/Restricted Stock 
 On the termination date, all vesting of stock options and restricted stock will stop. Employees will have up to three (3) months after the termination date to exercise any vested options. 

Service Anniversary Awards 
 Employees
with an anniversary date prior to the date they are notified of lay-off will be eligible to receive their service anniversary award. 
 On-Going Education Reimbursement 
 Employees who are currently enrolled in Calpine’s Education Reimbursement Program will
continue to be reimbursed for courses for which they have already received approval (and have already began attending) before their termination date. This applies only to coursework in progress (reimbursement will not be given for coursework started
after employee’s termination date, even if approval for it was received prior to termination date). Tuition previously reimbursed by the Company will not be subject to the payback provision in the event of a reduction in workforce. 

Scholarship Program 
 The Company will
honor any current year scholarships awarded to the children of employees being terminated due to lay-off. 
 Relocation 
 The Company will honor expenses associated with an employee’s current/in-process relocation process. Relocation assistance previously paid by the
Company will not be subject to the payback provision in the event of a reduction in workforce.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}]]