Document:

Exhibit 10.28

 

CERTAIN
CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[**]”. A COMPLETE VERSION OF THIS EXHIBIT HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT
UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934

 

LOAN AND SECURITY AGREEMENT

 

THIS LOAN AND SECURITY
AGREEMENT (as the same may from time to time be amended, modified, supplemented or restated, this “Agreement”)
dated as of August 30, 2012 (the “Effective Date”) among OXFORD FINANCE LLC, a Delaware limited liability company
with an office located at 133 North Fairfax Street, Alexandria, Virginia 22314 (“Oxford”), as collateral agent
(in such capacity, “Collateral Agent”), the Lenders listed on Schedule 1.1 hereof or otherwise a
party hereto from time to time including Oxford in its capacity as a Lender, SILICON VALLEY BANK, a California corporation with
an office located at 3003 Tasman Drive, Santa Clara, CA 95054 (“Bank” or “SVB”) and MIDCAP
FINANCIAL SBIC, LP, a Delaware limited partnership, with an office located at 7255 Woodmont Avenue, Suite 200, Bethesda, Maryland
20814 (“MidCap”) (each a “Lender” and collectively, the “Lenders”), and PEREGRINE
PHARMACEUTICALS, INC., a Delaware corporation (“Parent”) and AVID BIOSERVICES, INC., Delaware corporation, each
with offices located at 14282 Franklin Avenue, Tustin, California 92780 (individually and collectively, jointly and severally,
“Borrower”), provides the terms on which the Lenders shall lend to Borrower and Borrower shall repay the Lenders.
The parties agree as follows:

 

1.               
ACCOUNTING AND OTHER TERMS

 

1.1Accounting
terms not defined in this Agreement shall be construed in accordance with GAAP. Calculations and determinations must be made in
accordance with GAAP. Capitalized terms not otherwise defined in this Agreement shall have the meanings set forth in Section 13.
All other terms contained in this Agreement, unless otherwise indicated, shall have the meaning provided by the Code to the extent
such terms are defined therein. All references to “Dollars” or “$” are United States Dollars,
unless otherwise noted.

 

2.               
LOANS AND TERMS OF PAYMENT

 

2.1Promise
to Pay. Borrower hereby unconditionally promises to pay each Lender, the outstanding principal amount of all Term Loans advanced
to Borrower by such Lender and accrued and unpaid interest thereon and any other amounts due hereunder as and when due in accordance
with this Agreement.

 

2.2Term
Loans.

 

(a)Availability.
(i) Subject to the terms and conditions of this Agreement, the Lenders agree, severally and not jointly, to make term loans to
Borrower on the Effective Date in an aggregate amount of Fifteen Million Dollars ($15,000,000.00) according to each Lender’s
Term A Loan Commitment as set forth on Schedule 1.1 hereto (such term loans are hereinafter referred to singly as
a “Term A Loan”, and collectively as the “Term A Loans”). After repayment, no Term A Loan
may be re-borrowed.

 

(ii)Subject to
the terms and conditions of this Agreement, the Lenders agree, severally and not jointly, during the Second Draw Period, to make
term loans to Borrower in an aggregate amount up to Fifteen Million Dollars ($15,000,000.00) according to each Lender’s
Term B Loan Commitment as set forth on Schedule 1.1 hereto (such term loans are hereinafter referred to singly
as a “Term B Loan”, and collectively as the “Term B Loans”; each Term A Loan
or Term B Loan is hereinafter referred to singly as a “Term Loan” and the Term A Loans and
the Term B Loans are hereinafter referred to collectively as the “Term Loans”). After repayment,
no Term B Loan may be re-borrowed.

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

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(b)Repayment.
Borrower shall make monthly payments of interest only commencing on the first (1st) Payment Date following the Funding
Date of each Term Loan, and continuing on the Payment Date of each successive month thereafter through and including the Payment
Date immediately preceding the Amortization Date. Borrower agrees to pay, on the Funding Date of each Term Loan, any initial partial
monthly interest payment otherwise due for the period between the Funding Date of such Term Loan and the first Payment Date thereof.
Commencing on the Amortization Date, and continuing on the Payment Date of each month thereafter, Borrower shall make consecutive
equal monthly payments of principal and interest, in arrears, to each Lender, as calculated by Collateral Agent (which calculations
shall be deemed correct absent manifest error) based upon: (1) the amount of such Lender’s Term Loan, (2) the effective
rate of interest, as determined in Section 2.3(a), and (3) a repayment schedule equal to thirty (30) months. All unpaid principal
and accrued and unpaid interest with respect to each Term Loan is due and payable in full on the Maturity Date. Each Term Loan
may only be prepaid in accordance with Sections 2.2(c) and 2.2(d).

 

(c)Mandatory
Prepayments. If the Term Loans are accelerated following the occurrence of an Event of Default, Borrower shall immediately
pay to Lenders, payable to each Lender in accordance with its respective Pro Rata Share, an amount equal to the sum of: (i) all
outstanding principal of the Term Loans plus accrued and unpaid interest thereon through the prepayment date, (ii) the Final
Payment, (iii) the Prepayment Fee, plus (iv) all other Obligations that are due and payable, including Lenders’ Expenses
and interest at the Default Rate with respect to any past due amounts. Notwithstanding (but without duplication with) the foregoing,
on the Maturity Date, if the Final Payment had not previously been paid in full in connection with the prepayment of the Term
Loans in full, Borrower shall pay to Collateral Agent, for payment to each Lender in accordance with its respective Pro Rata Share,
the Final Payment in respect of the Term Loans.

 

(d)Permitted
Prepayment of Term Loans. Borrower shall have the option to prepay all or a portion of the Term Loans advanced by the Lenders
under this Agreement, provided Borrower (i) provides written notice to Collateral Agent of its election to prepay the Term
Loans or a portion thereof at least thirty (30) days prior to such prepayment, and (ii) (x) in the case of a prepayment of
the aggregate outstanding principal amount of the Term Loans, pays to the Lenders on the date of such prepayment, payable to each
Lender in accordance with its respective Pro Rata Share, an amount equal to the sum of (A) all outstanding principal of the
Term Loans plus accrued and unpaid interest thereon through the prepayment date, plus (B) the Final Payment, plus (C) the Prepayment
Fee, plus (D) all other Obligations that are due and payable, including Lenders’ Expenses and interest at the Default Rate
with respect to any past due amounts, and (y) in the case of prepayment of a portion of the Term Loans, pays to the Lenders on
the date of such prepayment, payable to each Lender in accordance with its respective Pro Rata Share, an amount equal to the sum
of (A) all outstanding principal of the portion of the Term Loans being prepaid, plus accrued and unpaid interest thereon through
the prepayment date, plus (B) the Final Payment allocable to the portion of the Term Loans being prepaid, plus (C) the Prepayment
Fee in respect of the Terms Loans being prepaid, plus (D) all other Obligations that are then due and payable, including Lender’s
Expenses and interest at the Default Rate with respect to any past due amounts in accordance with Section 2.3 (b). Partial prepayments
of the Term Loans and the Final Payment payable in connection therewith shall be allocated and applied pro rata among the
outstanding Term Loans.

 

2.3Payment
of Interest on the Credit Extensions.

 

(a)Interest Rate.
Subject to Section 2.3(b), the principal amount outstanding under the Term Loans shall accrue interest at a fixed per
annum rate (which rate shall be fixed for the duration of the applicable Term Loan) equal to the Basic Rate, determined by Collateral
Agent on the Funding Date of the applicable Term Loan, which interest shall be payable monthly in arrears in accordance with Sections
2.2(b) and 2.3(e). Interest shall accrue on each Term Loan commencing on, and including, the Funding Date of such Term Loan,
and shall accrue on the principal amount outstanding under such Term Loan through and including the day on which such Term Loan
is paid in full.

 

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

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

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(c)360-Day Year.
Interest shall be computed on the basis of a three hundred sixty (360) day year consisting of twelve (12) months of thirty (30)
days.

 

(d)Debit of Accounts.
Collateral Agent and each Lender may debit (or ACH) any deposit accounts, maintained by Borrower or any of its Subsidiaries, including
the Designated Deposit Account, for principal and interest payments or any other amounts Borrower owes the Lenders under the Loan
Documents when due. Any such debits (or ACH activity) shall not constitute a set-off.

 

(e)Payments.
Except as otherwise expressly provided herein, all payments by Borrower under the Loan Documents shall be made to the respective
Lender to which such payments are owed, at such Lender’s office in immediately available funds on the date specified herein.
Unless otherwise provided, interest is payable monthly on the Payment Date of each month. Payments of principal and/or interest
received after 2:00 p.m. Eastern time are considered received at the opening of business on the next Business Day. When a payment
is due on a day that is not a Business Day, the payment is due the next Business Day and additional fees or interest, as applicable,
shall continue to accrue until paid. All payments to be made by Borrower hereunder or under any other Loan Document, including
payments of principal and interest, and all fees, expenses, indemnities and reimbursements, shall be made without set-off, recoupment
or counterclaim, in lawful money of the United States and in immediately available funds.

 

2.4Secured
Promissory Notes. The Term Loans shall be evidenced by a Secured Promissory Note or Notes in the form attached as Exhibit D
hereto (each a “Secured Promissory Note”), and shall be repayable as set forth in this Agreement. Borrower
irrevocably authorizes each Lender to make or cause to be made, on or about the Funding Date of any Term Loan or at the time of
receipt of any payment of principal on such Lender’s Secured Promissory Note, an appropriate notation on such Lender’s
Secured Promissory Note Record reflecting the making of such Term Loan or (as the case may be) the receipt of such payment. The
outstanding amount of each Term Loan set forth on such Lender’s Secured Promissory Note Record shall be prima facie evidence
of the principal amount thereof owing and unpaid to such Lender, but the failure to record, or any error in so recording, any
such amount on such Lender’s Secured Promissory Note Record shall not limit or otherwise affect the obligations of Borrower
under any Secured Promissory Note or any other Loan Document to make payments of principal of or interest on any Secured Promissory
Note when due. Upon receipt of an affidavit of an officer of a Lender as to the loss, theft, destruction, or mutilation of its
Secured Promissory Note, Borrower shall issue, in lieu thereof, a replacement Secured Promissory Note in the same principal
amount thereof and of like tenor.

 

2.5Fees.
Borrower shall pay to Collateral Agent:

 

(a)Facility Fee.
A fully earned, non-refundable facility fee of Three Hundred Thousand Dollars ($300,000.00) to be shared between the Lenders pursuant
to their respective Commitment Percentages payable as follows: (i) One Hundred Fifty Thousand Dollars ($150,000.00) of the
facility fee was paid on July 23, 2012 (receipt of which the Lenders hereby acknowledge), and (ii) the remaining One
Hundred Fifty Thousand Dollars ($150,000.00) of the facility fee shall be due and payable on the earliest of (x) the Funding Date
of the Term B Loan, (y) March 31, 2013 or (z) acceleration of the Obligations following an Event of Default;

 

(b)Final Payment.
The Final Payment, when due hereunder, to be shared between the Lenders in accordance with their respective Pro Rata Shares;

 

(c)Prepayment
Fee. The Prepayment Fee, when due hereunder, to be shared between the Lenders in accordance with their respective Pro Rata
Shares;

 

(d)Non-Utilization
Fee. The Non-Utilization Fee, when due hereunder, to be shared between the Lenders in accordance with their respective Pro
Rata Shares; and

 

(e)Lenders’
Expenses. All Lenders’ Expenses (including reasonable attorneys’ fees and expenses for documentation and negotiation
of this Agreement) incurred through and after the Effective Date, when due (and in the absence of any other due date specified
herein, such Lenders’ Expenses shall be due within five (5) days of demand therefor).

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

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2.6Withholding.
Payments received by the Lenders from Borrower hereunder will be made free and clear of and without deduction for any and
all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed by
any governmental authority (including any interest, additions to tax or penalties applicable thereto). Specifically, however,
if at any time any Governmental Authority, applicable law, regulation or international agreement requires Borrower to make any
withholding or deduction from any such payment or other sum payable hereunder to the Lenders, Borrower hereby covenants and agrees
that the amount due from Borrower with respect to such payment or other sum payable hereunder will be increased to the extent
necessary to ensure that, after the making of such required withholding or deduction, each Lender receives a net sum equal to
the sum which it would have received had no withholding or deduction been required and Borrower shall pay the full amount withheld
or deducted to the relevant Governmental Authority. Borrower will, upon request, furnish the Lenders with proof reasonably satisfactory
to the Lenders indicating that Borrower has made such withholding payment; provided, however, that Borrower need not make any
withholding payment if the amount or validity of such withholding payment is contested in good faith by appropriate and timely
proceedings and as to which payment in full is bonded or reserved against by Borrower. The agreements and obligations of Borrower
contained in this Section 2.6 shall survive the termination of this Agreement.

 

2.7SBIC Acknowledgement.
Borrower acknowledges that MidCap is a Federal licensee under the Small Business Investment Act of 1958, as amended.

 

3.CONDITIONS
OF LOANS

 

3.1Conditions
Precedent to Initial Credit Extension. Each Lender’s obligation to make a Term A Loan is subject to the condition precedent
that Collateral Agent and each Lender shall consent to or shall have received, in form and substance satisfactory to Collateral
Agent and each Lender, such documents, and completion of such other matters, as Collateral Agent and each Lender may reasonably
deem necessary or appropriate, including, without limitation:

 

(a)original Loan
Documents, and Warrants in respect of the Term A Loan, each duly executed by Borrower and each Subsidiary, as applicable;

 

(b)duly executed
original Control Agreements with respect to any Collateral Accounts maintained by Borrower or any of its domestic Subsidiaries;

 

(c)duly executed
original Secured Promissory Notes in favor of each Lender according to its Term A Loan Commitment Percentage;

 

(d)the original
certificate(s) for the Shares, together with Assignment(s) Separate from Certificate, duly executed in blank;

 

(e)the Operating
Documents and good standing certificates of Borrower and its domestic Subsidiaries certified by the Secretary of State (or equivalent
agency) of Borrower’s and such Subsidiaries’ jurisdiction of organization or formation and each jurisdiction in which
Borrower and each Subsidiary is qualified to conduct business, each as of a date no earlier than thirty (30) days prior to the
Effective Date;

 

(f)a completed Perfection
Certificate for Borrower and each of its Subsidiaries;

 

(g)the Annual Projections,
for the current calendar year;

 

(h)duly executed
original officer’s certificate for Borrower and each Subsidiary that is a party to the Loan Documents, in a form acceptable
to Collateral Agent and the Lenders;

 

(i)certified copies,
dated as of date no earlier than thirty (30) days prior to the Effective Date, of financing statement searches, as Collateral
Agent shall request, accompanied by written evidence (including any UCC termination statements) that the Liens indicated in any
such financing statements either constitute Permitted Liens or have been or, in connection with the initial Credit Extension,
will be terminated or released;

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

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(j)a landlord’s
consent executed in favor of Collateral Agent in respect of all of Borrower’s and each Subsidiaries’ leased locations
in California;

 

(k)a bailee waiver
executed in favor of Collateral Agent in respect of each third party bailee where Borrower or any Subsidiary maintains Collateral
having a book value in excess of Two Hundred Fifty Thousand Dollars ($250,000.00);

 

(l)an executed legal
opinion of counsel to Borrower dated as of the Effective Date;

 

(m)evidence satisfactory
to Collateral Agent and the Lenders that the insurance policies required by Section 6.5 hereof are in full force and effect,
together with appropriate evidence showing loss payable and/or additional insured clauses or endorsements in favor of Collateral
Agent, for the ratable benefit of the Lenders;

 

(n)payment of the
fees and Lenders’ Expenses then due as specified in Section 2.5 hereof; and

 

(o)completed SBA
Forms 480, 652 and 1031 and the SBIC Side Letter.

 

3.2Conditions
Precedent to all Credit Extensions. The obligation of each Lender to make each Credit Extension, including the initial Credit
Extension, is subject to the following conditions precedent:

 

(a)receipt by (i) the
Lenders of an executed Disbursement Letter in the form of Exhibit B-1 attached hereto; and (ii) SVB of an executed
Loan Payment/Advance Request Form in the form of Exhibit B-2 attached hereto;

 

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

 

(c)in such Lender’s
sole discretion, there has not been any Material Adverse Change or any material adverse deviation by Borrower from the Annual
Projections of Borrower presented to and accepted by Collateral Agent and each Lender;

 

(d)to the extent
not delivered at the Effective Date, duly executed original Secured Promissory Notes and Warrants, in number, form and content
acceptable to each Lender, and in favor of each Lender according to its Commitment Percentage, with respect to each Credit Extension
made by such Lender after the Effective Date, it being acknowledged and agreed by Borrower that Borrower shall deliver to each
Lender, in connection with the making of the Term B Loans, Secured Promissory Notes and Warrants, in number, form and content
acceptable to each Lender, and in favor of each Lender according to its Commitment Percentage of the Term B Loans; and

 

(e)payment of the
fees and Lenders’ Expenses then due as specified in Section 2.5 hereof.

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

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

 

3.4Procedures
for Borrowing. Subject to the prior satisfaction of all other applicable conditions to the making of a Term Loan set forth
in this Agreement, to obtain a Term Loan, Borrower shall notify the Lenders (which notice shall be irrevocable) by electronic
mail, facsimile, or telephone by 2:00 p.m. Eastern time (x) three (3) Business Days prior to the date the Term A Loan is to be
made; and (y) fifteen (15) Business Days prior to the date the Term B Loan is to be made. Together with any such electronic, facsimile
or telephonic notification, Borrower shall deliver to the Lenders by electronic mail or facsimile a completed Disbursement Letter
(and the Loan Payment/Advance Request Form, with respect to SVB and MidCap) executed by a Responsible Officer or his or her designee.
The Lenders may rely on any telephone notice given by a person whom a Lender reasonably believes is a Responsible Officer or designee.
On the Funding Date, each Lender shall credit and/or transfer (as applicable) to the Designated Deposit Account, an amount equal
to its Term Loan Commitment.

 

4.CREATION
OF SECURITY INTEREST

 

4.1Grant of
Security Interest. Borrower hereby grants Collateral Agent, for the ratable benefit of the Lenders, to secure the payment
and performance in full of all of the Obligations, a continuing security interest in, and pledges to Collateral Agent, for the
ratable benefit of the Lenders, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and all
proceeds and products thereof. Borrower represents, warrants, and covenants that the security interest granted herein is and shall
at all times continue to be a first priority perfected security interest in the Collateral, subject only to Permitted Liens that
are permitted by the terms of this Agreement to have priority to Collateral Agent’s Lien. If Borrower shall acquire a commercial
tort claim (as defined in the Code), Borrower shall promptly notify Collateral Agent in a writing signed by Borrower, as the case
may be, of the general details thereof (and further details as may be required by Collateral Agent) and grant to Collateral Agent,
for the ratable benefit of the Lenders, in such writing a security interest therein and in the proceeds thereof, all upon the
terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to Collateral Agent.

 

Borrower may in the
future enter into Bank Services Agreements with Bank. Regardless of the terms of any Bank Services Agreement, Borrower agrees that
any amounts Borrower owes Bank thereunder shall be deemed to be Obligations hereunder and that it is the intent of Borrower and
Bank to have all such Obligations secured by the first priority perfected security interest in the Collateral granted herein (subject
only to Permitted Liens that may have superior priority to Bank’s Lien in this Agreement).

 

If this Agreement is
terminated, Collateral Agent’s Lien in the Collateral shall continue until the Obligations (other than inchoate indemnity
obligations) are repaid in full in cash. Except as set forth in the succeeding sentence, upon payment in full in cash of the Obligations
(other than inchoate indemnity obligations) and at such time as the Lenders’ obligation to make Credit Extensions has terminated,
Collateral Agent shall, at the sole cost and expense of Borrower, release its Liens in the Collateral and all rights therein shall
revert to Borrower. In the event (x) all Obligations (other than inchoate indemnity obligations), except for Bank Services, are
satisfied in full, and (y) this Agreement is terminated, Bank shall terminate the security interest granted herein upon Borrower
providing cash collateral acceptable to Bank in its good faith business judgment for Bank Services, if any; in the event
such Bank Services consist of outstanding Letters of Credit, Borrower shall provide to Bank cash collateral in an amount equal
to (x) if such Letters of Credit are denominated in Dollars, then one hundred five percent (105%); and (y) if such Letters
of Credit are denominated in a Foreign Currency, then one hundred ten percent (110%), of the Dollar Equivalent of the face amount
of all such Letters of Credit plus all interest, fees, and costs due or to become due in connection therewith (as estimated by
Bank in its good faith business judgment), to secure all of the Obligations relating to such Letters of Credit.

 

4.2Authorization
to File Financing Statements. Borrower hereby authorizes Collateral Agent to file financing statements or take any other action
required to perfect Collateral Agent’s security interests in the Collateral, without notice to Borrower, with all appropriate
jurisdictions to perfect or protect Collateral Agent’s interest or rights under the Loan Documents, including a notice that
any disposition of the Collateral, except to the extent permitted by the terms of this Agreement, by Borrower, or any other Person,
shall be deemed to violate the rights of Collateral Agent under the Code.

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

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4.3Pledge of
Collateral. Borrower hereby pledges, assigns and grants to Collateral Agent, for the ratable benefit of the Lenders, a security
interest in all the Shares, together with all proceeds and substitutions thereof, all cash, stock and other moneys and property
paid thereon, all rights to subscribe for securities declared or granted in connection therewith, and all other cash and noncash
proceeds of the foregoing, as security for the performance of the Obligations. On the Effective Date, or, to the extent not certificated
as of the Effective Date, within ten (10) days of the certification of any Shares, the certificate or certificates for the Shares
will be delivered to Collateral Agent, accompanied by an instrument of assignment duly executed in blank by Borrower. To the extent
required by the terms and conditions governing the Shares, Borrower shall cause the books of each entity whose Shares are part
of the Collateral and any transfer agent to reflect the pledge of the Shares. Upon the occurrence and during the continuance of
an Event of Default hereunder, Collateral Agent may effect the transfer of any securities included in the Collateral (including
but not limited to the Shares) into the name of Collateral Agent and cause new (as applicable) certificates representing such
securities to be issued in the name of Collateral Agent or its transferee. Borrower will execute and deliver such documents, and
take or cause to be taken such actions, as Collateral Agent may reasonably request to perfect or continue the perfection of Collateral
Agent’s security interest in the Shares. Unless an Event of Default shall have occurred and be continuing, Borrower shall
be entitled to exercise any voting rights with respect to the Shares and to give consents, waivers and ratifications in respect
thereof, provided that no vote shall be cast or consent, waiver or ratification given or action taken which would be inconsistent
with any of the terms of this Agreement or which would constitute or create any violation of any of such terms. All such rights
to vote and give consents, waivers and ratifications shall terminate upon the occurrence and continuance of an Event of Default.
Notwithstanding the foregoing, Parent shall not be deemed to pledge the Shares of Peregrine China; Collateral Agent and the Lenders
reserve the right to require such pledge and to take such actions as reasonable deemed necessary to effect such pledge and perfect
Collateral Agent’s Lien in the Shares of Peregrine China.

 

5.REPRESENTATIONS
AND WARRANTIES

 

Borrower represents
and warrants to Collateral Agent and the Lenders as follows at all times:

 

5.1Due Organization,
Authorization: Power and Authority. Borrower and each of its domestic Subsidiaries is duly existing and in good standing as
a Registered Organization in its jurisdiction of organization or formation and Borrower and each of its Subsidiaries is qualified
and licensed to do business and is in good standing in any jurisdiction in which the conduct of its businesses or its ownership
of property requires that it be qualified except where the failure to do so could not reasonably be expected to have a Material
Adverse Change. In connection with this Agreement, Borrower and each of its domestic Subsidiaries has delivered to Collateral
Agent a completed perfection certificate signed by an officer of Borrower or such Subsidiary (each a “Perfection Certificate”
and collectively, the “Perfection Certificates”). Borrower represents and warrants that (a) Borrower and
each of its Subsidiaries’ exact legal name is that which is indicated on its respective Perfection Certificate and on the
signature page of each Loan Document to which it is a party; (b) Borrower and each of its Subsidiaries is an organization
of the type and is organized in the jurisdiction set forth on its respective Perfection Certificate; (c) each Perfection
Certificate accurately sets forth each of Borrower’s and its Subsidiaries’ organizational identification number or
accurately states that Borrower or such Subsidiary has none; (d) each Perfection Certificate accurately sets forth Borrower’s
and each of its Subsidiaries’ place of business, or, if more than one, its chief executive office as well as Borrower’s
and each of its Subsidiaries’ mailing address (if different than its chief executive office); (e) Borrower and each
of its Subsidiaries (and each of its respective predecessors) have not, in the past five (5) years, changed its jurisdiction of
organization, organizational structure or type, or any organizational number assigned by its jurisdiction; and (f) all other
information set forth on the Perfection Certificates pertaining to Borrower and each of its Subsidiaries, is accurate and complete
(it being understood and agreed that Borrower and each of its Subsidiaries may from time to time update certain information in
the Perfection Certificates (including the information set forth in clause (d) above) after the Effective Date to the extent
permitted by one or more specific provisions in this Agreement); such updated Perfection Certificates subject to the review and
approval of Collateral Agent. If Borrower or any of its Subsidiaries is not now a Registered Organization but later becomes one,
Borrower shall notify Collateral Agent of such occurrence and provide Collateral Agent with such Person’s organizational
identification number within five (5) Business Days of receiving such organizational identification number.

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	7

    	 	

    
 

The execution, delivery
and performance by Borrower and each of its Subsidiaries of the Loan Documents to which it is a party have been duly authorized,
and do not (i) conflict with any of Borrower’s or such Subsidiaries’ organizational documents, including its respective
Operating Documents, (ii) contravene, conflict with, constitute a default under or violate any material Requirement of Law
applicable thereto, (iii) contravene, conflict or violate any applicable order, writ, judgment, injunction, decree, determination
or award of any Governmental Authority by which Borrower or such Subsidiary, or any of their property or assets may be bound or
affected, (iv) require any action by, filing, registration, or qualification with, or Governmental Approval from, any Governmental
Authority (except such Governmental Approvals which have already been obtained and are in full force and effect) or are being obtained
pursuant to Section 6.1(b), or (v) constitute an event of default under any material agreement by which Borrower or any of
such Subsidiaries, or their respective properties, is bound. Neither Borrower nor any of its Subsidiaries is in default under any
agreement to which it is a party or by which it or any of its assets is bound in which such default could reasonably be expected
to have a Material Adverse Change.

 

5.2Collateral.

 

(a)Borrower and
each its Subsidiaries have good title to, have rights in, and the power to transfer each item of the Collateral upon which it
purports to grant a Lien under the Loan Documents, free and clear of any and all Liens except Permitted Liens, and neither Borrower
nor any of its Subsidiaries have any Deposit Accounts, Securities Accounts, Commodity Accounts or other investment accounts other
than the Collateral Accounts or the other investment accounts, if any, described in the Perfection Certificates delivered to Collateral
Agent in connection herewith with respect of which Borrower or such Subsidiary has given Collateral Agent notice and taken such
actions as are necessary to give Collateral Agent a perfected security interest therein, subject to Collateral Agent having taken
all required actions to perfect such security interest. The Accounts are bona fide, existing obligations of the Account Debtors.

 

(b)On the Effective
Date, and except as disclosed on the Perfection Certificate (i) the Collateral is not in the possession of any third party
bailee (such as a warehouse), and (ii)  no such third party bailee possesses components of the Collateral in excess of Two
Hundred Fifty Thousand Dollars ($250,000.00). None of the components of the Collateral shall be maintained at locations other
than as disclosed in the Perfection Certificates on the Effective Date or as permitted pursuant to Section 6.11.

 

(c)All Inventory
is in all material respects of good and marketable quality, free from material defects.

 

(d)A list of all
of Borrower’s copyrights, copyright applications, trademarks, trademark applications, patents and patent applications (“Subject
Intellectual Property”) and all license agreements (including all in-bound license agreements, but excluding over-the-counter
software that is commercially available to the public) is set forth on Schedule 5.2(d), which indicates, for each item of property:
(i) the name of Borrower owning such Subject Intellectual Property or licensee to such license agreement; (ii) Borrower’s
identifier for such property (i.e., name of patent, license, etc.), (iii) whether such property is Subject Intellectual Property
(or application therefor) owned by Borrower or is property to which Borrower has rights pursuant to a license agreement, and (iv)
the expiration date of such Subject Intellectual Property or license agreement. In the case of any license agreement, Schedule
5.2(d) further indicates, for each: (A) the name and address of the licensor, (B) the name and date of the license agreement pursuant
to which Intellectual Property is licensed, (C) whether or not such license agreement grants an exclusive license to Borrower,
and (D) whether there are any restrictions in such license agreement as to the ability of Borrower to grant a security interest
in and/or to transfer any of its rights as a licensee under such license agreement. Except as noted on Schedule 5.2(d), Borrower
is the sole owner of its Subject Intellectual Property, except for non-exclusive licenses granted to its customers in the ordinary
course of business. Each Patent is properly filed and maintained, no part of the Subject Intellectual Property has been judged
invalid or unenforceable, in whole or in part, and to the best of Borrower’s knowledge no claim has been made that any part
of the Subject Intellectual Property violates the rights of any third party, except to the extent such claim could not reasonably
be expected to result in a Material Adverse Change. Borrower shall, and shall cause its Subsidiaries to, take such commercially
reasonable steps as Collateral Agent and any Lender requests to obtain the consent of, or waiver by, any Person whose consent
or waiver is necessary for (i) all licenses or agreements with respect to which Borrower or any Subsidiary is the licensee
to be deemed “Collateral” and for Collateral Agent and each Lender to have a security interest in it that might otherwise
be restricted or prohibited by law or by the terms of any such license or agreement, whether now existing or entered into in the
future, and (ii) Collateral Agent and each Lender shall have the ability in the event of a liquidation of any Collateral
to dispose of such Collateral in accordance with Collateral Agent’s and such Lender’s rights and remedies under this
Agreement and the other Loan Documents.

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	8

    	 	

    
 

 

5.3Litigation.
Except as disclosed (i) on the Perfection Certificates, or (ii) in accordance with Section 6.9 hereof, there
are no actions, suits, investigations, or proceedings pending or, to the knowledge of the Responsible Officers, threatened in
writing by or against Borrower or any of its Subsidiaries involving more than One Hundred Thousand Dollars ($100,000.00).

 

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

 

5.5Solvency.
Borrower and each of its Subsidiaries is Solvent.

 

5.6Regulatory
Compliance. Neither Borrower nor any of its Subsidiaries is an “investment company” or a company “controlled”
by an “investment company” under the Investment Company Act of 1940, as amended. Neither Borrower nor any of its Subsidiaries
is engaged as one of its important activities in extending credit for margin stock (under Regulations X, T and U of the Federal
Reserve Board of Governors). Borrower and each of its Subsidiaries has complied in all material respects with the Federal Fair
Labor Standards Act. Neither Borrower nor any of its Subsidiaries is a “holding company” or an “affiliate”
of a “holding company” or a “subsidiary company” of a “holding company” as each term is defined
and used in the Public Utility Holding Company Act of 2005. Neither Borrower nor any of its Subsidiaries has violated any laws,
ordinances or rules, the violation of which could reasonably be expected to have a Material Adverse Change. Neither Borrower’s
nor any of its Subsidiaries’ properties or assets has been used by Borrower or such Subsidiary or, to Borrower’s knowledge,
by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than in material
compliance with applicable laws. Borrower and each of its Subsidiaries has obtained all consents, approvals and authorizations
of, made all declarations or filings with, and given all notices to, all Governmental Authorities that are necessary to continue
their respective businesses as currently conducted.

 

None of Borrower, any
of its Subsidiaries, or any of Borrower’s or its Subsidiaries’ Affiliates or any of their respective agents acting
or benefiting in any capacity in connection with the transactions contemplated by this Agreement is (i) in violation of any
Anti-Terrorism Law, (ii) engaging in or conspiring to engage in any transaction that evades or avoids, or has the purpose
of evading or avoiding or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law, or (iii) is a
Blocked Person. None of Borrower, any of its Subsidiaries, or to the knowledge of Borrower and any of their Affiliates or agents,
acting or benefiting in any capacity in connection with the transactions contemplated by this Agreement, (x) conducts any business
or engages in making or receiving any contribution of funds, goods or services to or for the benefit of any Blocked Person, or
(y) deals in, or otherwise engages in any transaction relating to, any property or interest in property blocked pursuant to Executive
Order No. 13224, any similar executive order or other Anti-Terrorism Law.

 

5.7Investments.
Neither Borrower nor any of its Subsidiaries owns any stock, shares, partnership interests or other equity securities except
for Permitted Investments.

 

5.8Tax Returns
and Payments; Pension Contributions. Borrower and each of its Subsidiaries has timely filed all required tax returns and reports,
and Borrower and each of its Subsidiaries, has timely paid all foreign, federal, state, and local taxes, assessments, deposits
and contributions owed by Borrower and such Subsidiaries, in all jurisdictions in which Borrower or any such Subsidiary is subject
to taxes, including the United States, unless such taxes are being contested in accordance with the following sentence. Borrower
and each of its Subsidiaries, may defer payment of any contested taxes, provided that Borrower or such Subsidiary, (a) in
good faith contests its obligation to pay the taxes by appropriate proceedings promptly and diligently instituted and conducted,
(b) notifies Collateral Agent in writing of the commencement of, and any material development in, the proceedings, and (c) posts
bonds or takes any other steps required to prevent the Governmental Authority levying such contested taxes from obtaining a Lien
upon any of the Collateral that is other than a “Permitted Lien.” Neither Borrower nor any of its Subsidiaries
is aware of any claims or adjustments proposed for any of Borrower’s or such Subsidiaries’, prior tax years which
could result in additional taxes becoming due and payable by Borrower or its Subsidiaries. Borrower and each of its Subsidiaries
have paid all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with
their terms, and neither Borrower nor any of its Subsidiaries have, withdrawn from participation in, and have not permitted partial
or complete termination of, or permitted the occurrence of any other event with respect to, any such plan which could reasonably
be expected to result in any liability of Borrower or its Subsidiaries, including any liability to the Pension Benefit Guaranty
Corporation or its successors or any other Governmental Authority.

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	9

    	 	

    
 

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

 

5.10Shares.
Borrower has full power and authority to create a first lien on the Shares and no disability or contractual obligation exists
that would prohibit Borrower from pledging the Shares pursuant to this Agreement. There are no subscriptions, warrants, rights
of first refusal or other restrictions on transfer relative to, or options exercisable with respect to the Shares. The Shares
have been and will be duly authorized and validly issued, and are fully paid and non-assessable. The Shares are not the subject
of any present or, to Borrower’s knowledge, threatened suit, action, arbitration, administrative or other proceeding, and
Borrower knows of no reasonable grounds for the institution of any such proceedings.

 

5.11Full Disclosure.
No written representation, warranty or other statement of Borrower or any of its Subsidiaries in any certificate or written
statement given to Collateral Agent or any Lender, as of the date such representation, warranty, or other statement was made,
taken together with all such written certificates and written statements given to Collateral Agent or any Lender, contains any
untrue statement of a material fact or omits to state a material fact necessary to make the statements contained in the certificates
or statements not misleading (it being recognized that certain written statements are subject to safe harbor statements contained
therein and that the projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are not
viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from
the projected or forecasted results). 

 

5.12Definition
of “Knowledge.” For purposes of the Loan Documents, whenever a representation or warranty is made to Borrower’s
knowledge or awareness, to the “best of” Borrower’s knowledge, or with a similar qualification, knowledge or
awareness means the actual knowledge, after reasonable investigation, of the Responsible Officers.

 

6.AFFIRMATIVE
COVENANTS

 

Borrower shall, and
shall cause each of its Subsidiaries to, do all of the following:

 

6.1Government
Compliance.

 

(a)Maintain its
and all its Subsidiaries’ legal existence and good standing (as applicable) in their respective jurisdictions of organization
and maintain qualification in each jurisdiction in which the failure to so qualify could reasonably be expected to have a Material
Adverse Change. Comply with all laws, ordinances and regulations to which Borrower or any of its Subsidiaries is subject, the
noncompliance with which could reasonably be expected to have a Material Adverse Change.

 

(b)Obtain and keep
in full force and effect, all of the Governmental Approvals necessary for the performance by Borrower and its Subsidiaries of
their respective businesses and obligations under the Loan Documents and the grant of a security interest to Collateral Agent
for the ratable benefit of the Lenders, in all of the Collateral. Borrower shall promptly provide copies to Collateral Agent of
any material Governmental Approvals obtained by Borrower or any of its Subsidiaries.

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	10

    	 	

    
 

6.2Financial
Statements, Reports, Certificates.

 

(a)Deliver to each
Lender:

 

(i)as soon as
available, but no later than thirty (30) days after the last day of each month, a company prepared consolidated and consolidating
balance sheet, income statement and cash flow statement covering the consolidated operations of Borrower and its Subsidiaries
for such month certified by a Responsible Officer and in a form reasonably acceptable to Collateral Agent;

 

(ii)as soon as
available, but no later than one hundred twenty (120) days after the last day of Borrower’s fiscal year or within five (5)
days of filing with the SEC, audited consolidated financial statements prepared under GAAP, consistently applied, together with
an unqualified opinion on the financial statements from an independent certified public accounting firm acceptable to Collateral
Agent in its reasonable discretion (it being agreed that Ernst & Young LLP, the Borrower’s current independent
certified public accounting firm, is acceptable to the Collateral Agent);

 

(iii)as soon as
available after approval thereof by Borrower’s Board of Directors, but no later than thirty (30) days after the last day
of each of Borrower’s fiscal years, Borrower’s annual financial projections for the entire current fiscal year
as approved by Borrower’s Board of Directors, which such annual financial projections shall be set forth in a month-by-month
format (such annual financial projections as originally delivered to Collateral Agent and the Lenders are referred to herein as
the “Annual Projections”; provided that, any revisions of the Annual Projections approved by Borrower’s
Board of Directors shall be delivered to Collateral Agent and the Lenders no later than seven (7) days after such approval and,
unless Collateral Agent notifies Borrower to the contrary in writing within thirty (30) days after receipt thereof, the term “Annual
Projections” shall include such revisions);

 

(iv)within five
(5) days of delivery, copies of all statements, reports and notices made available by Borrower to its security holders or holders
of Subordinated Debt;

 

(v)within five
(5) days of filing, all reports on Form 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission,

 

(vi)prompt notice
of any amendments of or other changes to the capitalization table of Borrower and to the Operating Documents of Borrower or any
of its Subsidiaries, together with any copies reflecting such amendments or changes with respect thereto; provided, however, that
the foregoing shall not require Borrower to give prompt notice of the issuance of any shares of common stock from its existing
shelf registration statements nor of the grant or exercise of any stock options.

 

(vii)prompt notice
of (A) any material change in the composition of the Intellectual Property, (B) the registration of any copyright, including any
subsequent ownership right of Borrower or any of its Subsidiaries in or to any copyright, patent or trademark, including a copy
of any such registration, and (C) any event that could reasonably be expected to materially and adversely affect the value of
the Intellectual Property;

 

(viii)as soon
as available, but no later than thirty (30) days after the last day of each month, copies of the month-end account statements
for each Collateral Account maintained by Borrower or its Subsidiaries, which statements may be provided to Collateral Agent and
each Lender by Borrower or directly from the applicable institution(s);

 

(ix)within ninety
(90) days after the end of each fiscal year of Borrower, and at such other times as MidCap may reasonably request to the extent
related to SBA regulations, Borrower shall provide to MidCap such forms and financial and other information with respect to any
business or financial condition of Borrower or any of its Subsidiaries required by the SBA, including, but not limited to (i)
forms and information with respect to MidCap’s or any Lender’s reporting requirements under SBA Form 468 and (ii)
information regarding the full-time equivalent jobs created or retained in connection with any Lender’s investment
in Borrower, the impact of the financing on Borrower’s business in terms of revenues and profits and on taxes paid by Borrower
and its employees;

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	11

    	 	

    
 

(x)upon request
of MidCap, the Borrower shall use commercially reasonable efforts to promptly (and in any event within twenty (20) days of such
request) furnish to MidCap all information reasonably requested, to the extent reasonably available to the Borrower in order for
MidCap or any Lender to comply with the requirements of 13 C.F.R. Section 107.620 or to prepare or file SBA Form 468 and any other
information requested or required by the SBA; and

 

(xi)other financial
information as reasonably requested by Collateral Agent or any Lender.

 

Notwithstanding the foregoing,
documents required to be delivered pursuant to the terms hereof (to the extent any such documents are included in materials otherwise
filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date on
which Borrower posts such documents, or provides a link thereto, on Borrower’s website on the internet at Borrower’s
website address.

 

(b)Concurrently
with the delivery of the financial statements specified in Section 6.2(a)(i) above but no later than thirty (30) days
after the last day of each month, deliver to each Lender, a duly completed Compliance Certificate signed by a Responsible Officer.

 

(c)Keep proper books
of record and account in accordance with GAAP in all material respects, in which full, true and correct entries shall be made
of all dealings and transactions in relation to its business and activities. Borrower shall, and shall cause each of its Subsidiaries
to, allow, at the sole cost of Borrower, Collateral Agent or any Lender, during regular business hours upon reasonable prior notice
(provided that no notice shall be required when an Event of Default has occurred and is continuing), to visit and inspect any
of its properties, to examine and make abstracts or copies from any of its books and records, and to conduct a collateral audit
and analysis of its operations and the Collateral. Such audits shall be conducted no more often than twice every year unless (and
more frequently if) an Event of Default has occurred and is continuing.

 

6.3Inventory;
Returns. Keep all Inventory in good and marketable condition, free from material defects. Returns and allowances between Borrower,
or any of its Subsidiaries, and their respective Account Debtors shall follow Borrower’s, or such Subsidiary’s, customary
practices as they exist at the Effective Date. Borrower must promptly notify Collateral Agent and the Lenders of all returns,
recoveries, disputes and claims that involve more than Two Hundred Fifty Thousand Dollars ($250,000.00) individually or in the
aggregate in any calendar year.

 

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

 

6.5Insurance.
Keep Borrower’s and its Subsidiaries’ business and the Collateral insured for risks and in amounts standard for
companies in Borrower’s and its Subsidiaries’ industry and location and as Collateral Agent may reasonably request.
Insurance policies shall be in a form, with companies, and in amounts that are reasonably satisfactory to Collateral Agent and
Lenders. All property policies shall have a lender’s loss payable endorsement showing Collateral Agent as lender loss payee
and waive subrogation against Collateral Agent, and all liability policies shall show, or have endorsements showing, Collateral
Agent, as additional insured. The Collateral Agent shall be named as lender loss payee and/or additional insured with respect
to any such insurance providing coverage in respect of any Collateral, and each provider of any such insurance shall agree, by
endorsement upon the policy or policies issued by it or by independent instruments furnished to the Collateral Agent, that it
will give the Borrower (and Borrower hereby agrees that it will give Collateral Agent) thirty (30) days prior written notice before
any such policy or policies shall be canceled or materially altered. At Collateral Agent’s request, Borrower shall deliver
certified copies of policies and evidence of all premium payments. Proceeds payable under any policy shall, at Collateral Agent’s
option, be payable to Collateral Agent, for the ratable benefit of the Lenders, on account of the Obligations. Notwithstanding
the foregoing, (a) so long as no Event of Default has occurred and is continuing, Borrower shall have the option of applying
the proceeds of any casualty policy up to One Hundred Thousand Dollars ($100,000.00) with respect to any loss, but not exceeding
One Hundred Thousand Dollars ($100,000.00), in the aggregate for all losses under all casualty policies in any one year, toward
the replacement or repair of destroyed or damaged property; provided that any such replaced or repaired property (i) shall
be of equal or like value as the replaced or repaired Collateral and (ii) shall be deemed Collateral in which Collateral
Agent has been granted a first priority security interest, and (b) after the occurrence and during the continuance of an
Event of Default, all proceeds payable under such casualty policy shall, at the option of Collateral Agent, be payable to Collateral
Agent, for the ratable benefit of the Lenders, on account of the Obligations. If Borrower or any of its Subsidiaries fails to
obtain insurance as required under this Section 6.5 or to pay any amount or furnish any required proof of payment to third
persons, Collateral Agent and/or any Lender may make, at Borrower’s expense, all or part of such payment or obtain such
insurance policies required in this Section 6.5, and take any action under the policies Collateral Agent or such Lender deems
prudent.

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	12

    	 	

    
 

6.6Operating
Accounts.

 

(a)Maintain all
of Borrower’s and its domestic Subsidiaries’ Collateral Accounts with financial instructions reasonably satisfactory
to Collateral Agent and in accounts which are subject to a Control Agreement in favor of Collateral Agent.

 

(b)Borrower shall
provide Collateral Agent five (5) days’ prior written notice before Borrower or any of its Subsidiaries establishes any
Collateral Account at or with any Person. In addition, subject to the terms of the Post Closing Letter for each Collateral Account
that Borrower or any of its Subsidiaries, at any time maintains, Borrower or such Subsidiary shall cause the applicable bank or
financial institution at or with which such Collateral Account is maintained to execute and deliver a Control Agreement or other
appropriate instrument with respect to such Collateral Account to perfect Collateral Agent’s Lien in such Collateral Account
in accordance with the terms hereunder prior to the establishment of such Collateral Account, which Control Agreement may not
be terminated without prior written consent of Collateral Agent. The provisions of the previous sentence shall not apply to (i)
deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit
of Borrower’s, or any of its Subsidiaries’, employees and identified to Collateral Agent by Borrower as such in the
Perfection Certificates; (ii) the brokerage account maintained at Bank of America Merrill Lynch (the “Sweep Account”),
provided (x) the Sweep Account continues to be a sweep account from which all deposits are cleared to a Collateral Account (such
Collateral Account subject to a control agreement in favor of (and in form and content reasonably acceptable to) Collateral Agent)
within two (2) Business Days of being credited to such Sweep Account; (y) such Sweep Account is subject to standing instructions
with respect thereto, in form and content reasonably acceptable to Collateral Agent, and such instructions are not modified, amended
or terminated without Collateral Agent’s prior written consent, which may be granted or withheld in Collateral Agent’s
sole discretion; and (z) no amounts are credited to the Sweep Account other than those amounts received in connection with sale
of Borrower’s equity securities; and (iii) accounts maintained by Peregrine China outside of the United States provided
that the aggregate amount in all such accounts does not exceed Fifty Thousand Dollars ($50,000) at any time.

 

(c)Neither Borrower
nor any of its Subsidiaries shall maintain any Collateral Accounts except Collateral Accounts maintained in accordance with Sections
6.6(a) and (b).

 

6.7Protection
of Intellectual Property Rights. Borrower and each of its Subsidiaries shall: (a) use commercially reasonable efforts
to protect, defend and maintain the validity and enforceability of its Intellectual Property that is material to Borrower’s
business; (b) promptly advise Collateral Agent in writing of any known material infringement by a third party of its Intellectual
Property; and (c) not allow any Intellectual Property material to Borrower’s business to be abandoned, forfeited or
dedicated to the public without Collateral Agent’s prior written consent.

 

6.8Litigation
Cooperation. Commencing on the Effective Date and continuing through the termination of this Agreement, make available to
Collateral Agent and the Lenders, without expense to Collateral Agent or the Lenders, Borrower and each of Borrower’s officers,
employees and agents and Borrower’s Books, to the extent that Collateral Agent or any Lender may reasonably deem them necessary
to prosecute or defend any third-party suit or proceeding instituted by or against Collateral Agent or any Lender with respect
to any Collateral or relating to Borrower.

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	13

    	 	

    
 

 

6.9Notices
of Litigation and Default. Borrower will give prompt written notice to Collateral Agent and the Lenders of any litigation
or governmental proceedings pending or threatened (in writing) against Borrower or any of its Subsidiaries, which could reasonably
be expected to result in damages or costs to Borrower or any of its Subsidiaries of Two Hundred Fifty Thousand Dollars ($250,000.00)
or more or which could reasonably be expected to have a Material Adverse Change. Without limiting or contradicting any other more
specific provision of this Agreement, promptly (and in any event within three (3) Business Days) upon Borrower becoming aware
of the existence of any Event of Default or event which, with the giving of notice or passage of time, or both, would constitute
an Event of Default, Borrower shall give written notice to Collateral Agent and the Lenders of such occurrence, which such notice
shall include a reasonably detailed description of such Event of Default or event which, with the giving of notice or passage
of time, or both, would constitute an Event of Default.

 

6.10Financial
Covenant. From and after the Funding Date of the Term B Loan, Borrower shall at all times maintain unrestricted cash of at
least Ten Million Dollars ($10,000,00.00) in Collateral Accounts subject to Control Agreements in favor of Collateral Agent for
the ratable benefit of the Lenders.

 

6.11Landlord
Waivers; Bailee Waivers. In the event that Borrower or any of its Subsidiaries, after the Effective Date, intends to add any
new offices or business locations, including warehouses, or otherwise store any portion of the Collateral with, or deliver any
portion of the Collateral to, a bailee, in each case pursuant to Section 7.2, then Borrower or such Subsidiary will first
receive the written consent of Collateral Agent and, in the event that the Collateral at any new location is valued in excess
of Two Hundred Fifty Thousand ($250,000.00) in the aggregate, such bailee or landlord, as applicable, must execute and deliver
a bailee waiver or landlord waiver, as applicable, in form and substance reasonably satisfactory to Collateral Agent prior to
the addition of any new offices or business locations, or any such storage with or delivery to any such bailee, as the case may
be.

 

6.12Creation/Acquisition
of Subsidiaries. In the event Borrower, or any of its Subsidiaries creates or acquires any Subsidiary, Borrower shall provide
prior written notice to Collateral Agent and each Lender of the creation or acquisition of such new Subsidiary and take all such
action as may be reasonably required by Collateral Agent or any Lender to cause each such Subsidiary to become a co-Borrower hereunder
or to guarantee the Obligations of Borrower under the Loan Documents and, in each case, grant a continuing pledge and security
interest in and to the assets of such Subsidiary (substantially as described on Exhibit A hereto); and Borrower (or
its Subsidiary, as applicable) shall grant and pledge to Collateral Agent, for the ratable benefit of the Lenders, a perfected
security interest in the Shares of each such newly created Subsidiary.

 

6.13Further
Assurances.

 

(a)Execute any further
instruments and take further action as Collateral Agent or any Lender reasonably requests to perfect or continue Collateral Agent’s
Lien in the Collateral or to effect the purposes of this Agreement.

 

(b)Deliver to Collateral
Agent and Lenders, within five (5) days after the same are sent or received, copies of all material correspondence, reports, documents
and other filings with any Governmental Authority that could reasonably be expected to have a material adverse effect on any of
the Governmental Approvals material to Borrower’s business or otherwise could reasonably be expected to have a Material
Adverse Change.

 

7.NEGATIVE
COVENANTS

 

Borrower shall not,
and shall not permit any of its Subsidiaries to, do any of the following without the prior written consent of the Required Lenders:

 

7.1Dispositions.
Convey, sell, lease, transfer, assign, dispose of or otherwise make cash payments consisting of (collectively, “Transfer”),
or permit any of its Subsidiaries to Transfer, all or any part of its business or property, except for Transfers (a) consisting
of cash payments to trade creditors in the ordinary course of business; (b) of Inventory in the ordinary course of business;
(c) of worn-out or obsolete Equipment; and (d) in connection with Permitted Liens, Permitted Investments and Permitted
Licenses.

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	14

    	 	

    
 

7.2Changes
in Business, Management, Ownership, or Business Locations. (a) Engage in or permit any of its Subsidiaries to engage
in any business other than the businesses engaged in by Borrower as of the Effective Date or reasonably related thereto; (b) liquidate
or dissolve (except in the case of Peregrine China and VTT); or (c) (i) any Key Person shall cease to be actively engaged
in the management of Borrower unless a replacement for such Key Person is approved by Borrower’s Board of Directors and
engaged by Borrower within one hundred twenty (120) days of such change, or (ii) enter into any transaction or series
of related transactions in which the stockholders of Borrower who were not stockholders immediately prior to the first such transaction
own more than forty nine percent (49%) of the voting stock of Borrower immediately after giving effect to such transaction or
related series of such transactions (other than by the sale of Borrower’s equity or unsecured debt securities in a public
offering, a private placement of public equity or to venture capital investors so long as Borrower identifies to Collateral Agent
the venture capital investors prior to the closing of the transaction). Borrower shall not, without at least thirty (30) days’
prior written notice to Collateral Agent: (A) add any new offices or business locations, including warehouses (unless such
new offices or business locations contain less than One Hundred Thousand Dollars ($100,000.00) in assets or property of Borrower
or any of its Subsidiaries); (B) change its jurisdiction of organization, (C) change its organizational structure or type,
(D) change its legal name, or (E) change any organizational number (if any) assigned by its jurisdiction of organization.

 

7.3Mergers
or Acquisitions. Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other Person, or
acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock, shares or property of another
Person. A Subsidiary may merge or consolidate into another Subsidiary (provided such surviving Subsidiary is a “co-Borrower”
hereunder or has provided a secured Guaranty of Borrower’s Obligations hereunder) or with (or into) Borrower provided Borrower
is the surviving legal entity, and as long as no Event of Default is occurring prior thereto or arises as a result therefrom.
Without limiting the foregoing, Borrower shall not, without prior written consent of the Required Lenders, enter into any binding
contractual arrangement with any Person to attempt to facilitate a merger or acquisition of Borrower, unless (i) no Event of Default
exists when such agreement is entered into by Borrower, (ii) such agreement does not give such Person the right to claim any fees,
payments or damages from Borrower or any of its Subsidiaries, and (iii) Borrower notifies Collateral Agent in advance of entering
into such an agreement.

 

7.4Indebtedness.
Create, incur, assume, or be liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness.

 

7.5Encumbrance.
Create, incur, allow, or suffer any Lien on any of its property, or assign or convey any right to receive income, including
the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, or permit any Collateral not
to be subject to the first priority security interest granted herein (except for Permitted Liens that are permitted by the terms
of this Agreement to have priority over Collateral Agent’s Lien), or enter into any agreement, document, instrument or other
arrangement (except with or in favor of Collateral Agent, for the ratable benefit of the Lenders) with any Person which directly
or indirectly prohibits or has the effect of prohibiting Borrower, or any of its Subsidiaries, from assigning, mortgaging, pledging,
granting a security interest in or upon, or encumbering any of Borrower’s or such Subsidiary’s Intellectual Property,
except as is otherwise permitted in Section 7.1 hereof and the definitions of “Permitted Liens” and “Permitted
Licenses” herein and subject to the terms of Section 5.2(d).

 

7.6Maintenance
of Collateral Accounts. Maintain any Collateral Account except pursuant to the terms of Section 6.6 hereof.

 

7.7Distributions;
Investments. (a) Pay any dividends (other than dividends payable solely in capital stock) or make any distribution or
payment in respect of or redeem, retire or purchase any capital stock (other than repurchases pursuant to the terms of employee
stock purchase plans, employee restricted stock agreements, stockholder rights plans, director or consultant stock option plans,
or similar plans, provided such repurchases do not exceed One Hundred Thousand Dollars ($100,000.00) in the aggregate per fiscal
year) or (b) directly or indirectly make any Investment other than Permitted Investments, or permit any of its Subsidiaries
to do so.

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

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7.8Transactions
with Affiliates. Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower
or any of its Subsidiaries, except for (a) transactions that are in the ordinary course of Borrower’s or such Subsidiary’s
business, upon fair and reasonable terms that are no less favorable to Borrower or such Subsidiary than would be obtained in an
arm’s length transaction with a non-affiliated Person, and (b) Subordinated Debt or equity investments by Borrower’s
investors in Borrower or its Subsidiaries.

 

7.9Subordinated
Debt. (a) Make or permit any payment on any Subordinated Debt, except under the terms of the subordination, intercreditor,
or other similar agreement to which such Subordinated Debt is subject, or (b) amend any provision in any document relating
to the Subordinated Debt which would increase the amount thereof or adversely affect the subordination thereof to Obligations
owed to the Lenders.

 

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

 

7.11Compliance
with Anti-Terrorism Laws. Collateral Agent hereby notifies Borrower and each of its Subsidiaries that pursuant to the requirements
of Anti-Terrorism Laws, and Collateral Agent’s policies and practices, Collateral Agent is required to obtain, verify and
record certain information and documentation that identifies Borrower and each of its Subsidiaries and their principals, which
information includes the name and address of Borrower and each of its Subsidiaries and their principals and such other information
that will allow Collateral Agent to identify such party in accordance with Anti-Terrorism Laws. Neither Borrower nor any of its
Subsidiaries shall, nor shall Borrower or any of its Subsidiaries permit any Affiliate to, directly or indirectly, knowingly enter
into any documents, instruments, agreements or contracts with any Person listed on the OFAC Lists. Borrower and each of its Subsidiaries
shall immediately notify Collateral Agent if Borrower or such Subsidiary has knowledge that Borrower, or any Subsidiary or Affiliate
of Borrower, is listed on the OFAC Lists or (a) is convicted on, (b) pleads nolo contendere to, (c) is indicted
on, or (d) is arraigned and held over on charges involving money laundering or predicate crimes to money laundering. Neither
Borrower nor any of its Subsidiaries shall, nor shall Borrower or any of its Subsidiaries, permit any Affiliate to, directly or
indirectly, (i) conduct any business or engage in any transaction or dealing with any Blocked Person, including, without
limitation, the making or receiving of any contribution of funds, goods or services to or for the benefit of any Blocked Person,
(ii) deal in, or otherwise engage in any transaction relating to, any property or interests in property blocked pursuant
to Executive Order No. 13224 or any similar executive order or other Anti-Terrorism Law, or (iii) engage in or conspire to
engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the
prohibitions set forth in Executive Order No. 13224 or other Anti-Terrorism Law.

 

7.12Peregrine
China Assets. Permit the aggregate value of assets held by Peregrine China to exceed Seventy Five Thousand Dollars
($75,000.00) at any time.

 

7.13VTT
Assets. Permit the aggregate value of assets held by VTT to exceed Five Thousand Dollars ($5,000.00) at any time.

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	16

    	 	

    
 

 

8.EVENTS
OF DEFAULT

 

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

 

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

 

8.2Covenant
Default.

 

(a)Borrower or any
of its Subsidiaries fails or neglects to perform any obligation in Sections 6.2 (Financial Statements, Reports, Certificates),
6.4 (Taxes), 6.5 (Insurance), 6.6 (Operating Accounts), 6.7 (Protection of Intellectual Property Rights), 6.9 (Notice of Litigation
and Default), 6.10 (Financial Covenant), 6.11 (Landlord Waivers; Bailee Waivers), 6.12 (Creation/Acquisition of Subsidiaries)
or 6.13 (Further Assurances) or Borrower violates any covenant in Section 7; or

 

(b)Borrower, or
any of its Subsidiaries, fails or neglects to perform, keep, or observe any other term, provision, condition, covenant or agreement
contained in this Agreement or any Loan Documents, and as to any default (other than those specified in this Section 8) under
such other term, provision, condition, covenant or agreement that can be cured, has failed to cure the default within ten (10)
days after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day
period or cannot after diligent attempts by Borrower be cured within such ten (10) day period, and such default is likely to be
cured within a reasonable time, then Borrower shall have an additional period (which shall not in any case exceed thirty (30)
days) to attempt to cure such default, and within such reasonable time period the failure to cure the default shall not be deemed
an Event of Default (but no Credit Extensions shall be made during such cure period). Grace periods provided under this Section shall
not apply, among other things, to financial covenants or any other covenants set forth in subsection (a) above;

 

8.3Material
Adverse Change. A Material Adverse Change occurs;

 

8.4Attachment;
Levy; Restraint on Business.

 

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

 

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

 

8.5Insolvency.
(a) Borrower or any of its Subsidiaries is or becomes Insolvent; (b) Borrower or any of its Subsidiaries begins
an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against Borrower or any of its Subsidiaries and not dismissed
or stayed within forty-five (45) days (but no Credit Extensions shall be made while Borrower or any Subsidiary is Insolvent and/or
until any Insolvency Proceeding is dismissed); provided, however, that this Section 8.5 shall not apply to Peregrine Beijing nor
VTT;

 

8.6Other Agreements.
There is a default in any agreement to which Borrower or any of its Subsidiaries is a party with a third party or parties
resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness
in an amount in excess of One Hundred Thousand Dollars ($100,000.00) or that could reasonably be expected to have a Material Adverse
Change;

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	17

    	 	

    
 

8.7Judgments.
One or more judgments, orders, or decrees for the payment of money in an amount, individually or in the aggregate, of at least
One Hundred Thousand Dollars ($100,000.00) (not covered by independent third-party insurance as to which liability has been accepted
by such insurance carrier) shall be rendered against Borrower or any of its Subsidiaries and shall remain unsatisfied, unvacated,
or unstayed for a period of ten (10) days after the entry thereof (provided that no Credit Extensions will be made prior to the
satisfaction, vacation, or stay of such judgment, order or decree);

 

8.8Misrepresentations.
Borrower or any of its Subsidiaries or any Person acting for Borrower or any of its Subsidiaries makes any representation,
warranty, or other statement now or later in this Agreement, any Loan Document or in any writing delivered to Collateral Agent
and/or Lenders or to induce Collateral Agent and/or the Lenders to enter this Agreement or any Loan Document, and such representation,
warranty, or other statement is incorrect in any material respect when made;

 

8.9Subordinated
Debt. A default or breach occurs under any agreement between Borrower or any of its Subsidiaries and any creditor of Borrower
or any of its Subsidiaries that signed a subordination, intercreditor, or other similar agreement with Collateral Agent or the
Lenders, or any creditor that has signed such an agreement with Collateral Agent or the Lenders breaches any terms of such agreement;

 

8.10Guaranty.
(a) Any Guaranty terminates or ceases for any reason to be in full force and effect; (b) any Guarantor does not
perform any obligation or covenant under any Guaranty; (c) any circumstance described in Sections 8.3, 8.4, 8.5, 8.7, or
8.8 occurs with respect to any Guarantor, or (d) the liquidation, winding up, or termination of existence of any Guarantor;

 

8.11Governmental
Approvals. Any Governmental Approval shall have been revoked, rescinded, suspended, modified in an adverse manner, or not
renewed in the ordinary course for a full term and such revocation, rescission, suspension, modification or non-renewal
has resulted in or could reasonably be expected to result in a Material Adverse Change; or

 

8.12Lien Priority.
Any Lien created hereunder or by any other Loan Document shall at any time, other than as a result of any action or inaction of
Collateral Agent or any Lender, fail to constitute a valid and perfected Lien on any of the Collateral purported to be secured
thereby, subject to no other Lien, other than Permitted Liens.

 

8.13End of
Phase II Meeting. Borrower shall fail to have the End of Phase II Meeting by June 30, 2013.

 

9.RIGHTS
AND REMEDIES

 

9.1Rights and
Remedies.

 

(a)Upon the occurrence
and during the continuance of an Event of Default, Collateral Agent may, and at the written direction of any Lender shall,
without notice or demand, do any or all of the following: (i) deliver notice of the Event of Default to Borrower, (ii) by
notice to Borrower declare all Obligations, including, without limitation, any unpaid portion of the Facility Fee, immediately
due and payable (but if an Event of Default described in Section 8.5 occurs all Obligations shall be immediately due and
payable without any action by Collateral Agent or the Lenders) or (iii) by notice to Borrower suspend or terminate the obligations,
if any, of the Lenders to advance money or extend credit for Borrower’s benefit under this Agreement or under any other
agreement between Borrower and Collateral Agent and/or the Lenders (but if an Event of Default described in Section 8.5 occurs
all obligations, if any, of the Lenders to advance money or extend credit for Borrower’s benefit under this Agreement or
under any other agreement between Borrower and Collateral Agent and/or the Lenders shall be immediately terminated without any
action by Collateral Agent or the Lenders).

 

(b)Without limiting
the rights of Collateral Agent and the Lenders set forth in Section 9.1(a) above, upon the occurrence and during the
continuance of an Event of Default, Collateral Agent shall have the right, at the written direction of the Required Lenders,
without notice or demand, to do any or all of the following:

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	18

    	 	

    
 

(i)foreclose upon
and/or sell or otherwise liquidate, the Collateral;

 

(ii)apply to the
Obligations any (a) balances and deposits of Borrower that Collateral Agent or any Lender holds or controls, or (b) any
amount held or controlled by Collateral Agent or any Lender owing to or for the credit or the account of Borrower; and/or

 

(iii)commence
and prosecute an Insolvency Proceeding or consent to Borrower commencing any Insolvency Proceeding.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(vii)subject to
clauses 9.1(a) and (b), exercise all rights and remedies available to Collateral Agent and each Lender under the Loan Documents
or at law or equity, including all remedies provided under the Code (including disposal of the Collateral pursuant to the terms
thereof);

 

(viii)for any
Letters of Credit, demand that Borrower (i) deposit cash with Bank in an amount equal to (x) if such Letters of Credit
are denominated in Dollars, then one hundred five percent (105%); and (y) if such Letters of Credit are denominated in a
Foreign Currency, then one hundred ten percent (110%), of the Dollar Equivalent of the aggregate face amount of all Letters of
Credit remaining undrawn (plus all interest, fees, and costs due or to become due in connection therewith (as estimated by Bank
in its good faith business judgment)), to secure all of the Obligations relating to such Letters of Credit, as collateral security
for the repayment of any future drawings under such Letters of Credit, and Borrower shall forthwith deposit and pay such amounts,
and (ii) pay in advance all letter of credit fees scheduled to be paid or payable over the remaining term of any Letters
of Credit; and

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	19

    	 	

    
 

(ix)terminate
any FX Contracts.

 

Notwithstanding any provision of this Section 9.1
to the contrary, upon the occurrence of any Event of Default, Collateral Agent shall have the right to exercise any and all remedies
referenced in this Section 9.1 without the written consent of Required Lenders following the occurrence of an Exigent Circumstance.
As used in the immediately preceding sentence, “Exigent Circumstance” means any event or circumstance that,
in the reasonable judgment of Collateral Agent, imminently threatens the ability of Collateral Agent to realize upon all or any
material portion of the Collateral, such as, without limitation, fraudulent removal, concealment, or abscondment thereof, destruction
or material waste thereof, or failure of Borrower or any of its Subsidiaries after reasonable demand to maintain or reinstate adequate
casualty insurance coverage, or which, in the judgment of Collateral Agent, could reasonably be expected to result in a material
diminution in value of the Collateral.

 

9.2Power of
Attorney. Borrower hereby irrevocably appoints Collateral Agent as its lawful attorney-in-fact, exercisable upon the occurrence
and during the continuance of an Event of Default, to: (a) endorse Borrower’s or any of its Subsidiaries’ name
on any checks or other forms of payment or security; (b) sign Borrower’s or any of its Subsidiaries’ name on
any invoice or bill of lading for any Account or drafts against Account Debtors; (c) settle and adjust disputes and claims
about the Accounts directly with Account Debtors, for amounts and on terms Collateral Agent determines reasonable; (d) make,
settle, and adjust all claims under Borrower’s insurance policies; (e) pay, contest or settle any Lien, charge, encumbrance,
security interest, and adverse claim in or to the Collateral, or any judgment based thereon, or otherwise take any action to terminate
or discharge the same; and (f) transfer the Collateral into the name of Collateral Agent or a third party as the Code or
any applicable law permits. Borrower hereby appoints Collateral Agent as its lawful attorney-in-fact to sign Borrower’s
or any of its Subsidiaries’ name on any documents necessary to perfect or continue the perfection of Collateral Agent’s
security interest in the Collateral regardless of whether an Event of Default has occurred until all Obligations (other than inchoate
indemnity obligations) have been satisfied in full and Collateral Agent and the Lenders are under no further obligation to make
Credit Extensions hereunder. Collateral Agent’s foregoing appointment as Borrower’s or any of its Subsidiaries’
attorney in fact, and all of Collateral Agent’s rights and powers, coupled with an interest, are irrevocable until all Obligations
(other than inchoate indemnity obligations) have been fully repaid and performed and Collateral Agent’s and the Lenders’
obligation to provide Credit Extensions terminates.

 

9.3Protective
Payments. If Borrower or any of its Subsidiaries fail to obtain the insurance called for by Section 6.5 or fails to pay
any premium thereon or fails to pay any other amount which Borrower or any of its Subsidiaries is obligated to pay under this
Agreement or any other Loan Document, Collateral Agent may obtain such insurance or make such payment, and all amounts so paid
by Collateral Agent are Lenders’ Expenses and immediately due and payable, bearing interest at the Default Rate, and secured
by the Collateral. Collateral Agent will make reasonable efforts to provide Borrower with notice of Collateral Agent obtaining
such insurance or making such payment at the time it is obtained or paid or within a reasonable time thereafter. No such payments
by Collateral Agent are deemed an agreement to make similar payments in the future or Collateral Agent’s waiver of any Event
of Default.

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	20

    	 	

    
 

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

 

9.5Liability
for Collateral. So long as Collateral Agent and the Lenders comply with reasonable banking practices regarding the safekeeping
of the Collateral in the possession or under the control of Collateral Agent and the Lenders, Collateral Agent and the Lenders
shall not be liable or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral;
(c) any diminution in the value of the Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or
other Person. Borrower bears all risk of loss, damage or destruction of the Collateral, provided Collateral Agent and Lenders
have complied with such reasonable banking practices.

 

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

 

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

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	21

    	 	

    
 

10.NOTICES

 

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

 

	 	If to Borrower:	
        PEREGRINE PHARMACEUTICALS, INC.

        14282 Franklin Avenue

        Tustin, California 92780

        Attn: Mark R. Ziebell

        Fax: (714) 838-9433

        Email: mziebell@peregrineinc.com

	 	 	 
	 	with a copy (which shall not constitute notice) to:	
        PEREGRINE PHARMACEUTICALS, INC.

        14282 Franklin Avenue

        Tustin, California 92780

        Attn: Paul J. Lytle

        Fax: (714) 838-9433

        Email: plytle@peregrineinc.com

	 	 	 
	 	If to Collateral Agent:	
        OXFORD FINANCE LLC

        133 North Fairfax Street

        Alexandria, Virginia 22314

        Attention: Legal Department

        Fax: (703) 519-5225

        Email: LegalDepartment@oxfordfinance.com

	 	 	 
	 	with a copy to	
        MIDCAP FINANCIAL SBIC, LP

        7255 Woodmont Avenue, Suite 200

        Bethesda, Maryland 20814

        Attn: Portfolio Management- Life Sciences

        Fax: (301) 941-1450

        Email: lviera@midcapfinancial.com

	 	 	 
	 	with a copy to	
        SILICON VALLEY BANK

        38 Technology Drive West, Suite 150

        Irvine, California 92618

        Attn: Brian Maver

        Fax: (949) 790-9020

        Email: bmaver@svb.com

	 	 	 
	 	with a copy (which shall not constitute notice) to:	
        DLA Piper LLP (US)

        4365 Executive Drive, Suite 1100

        San Diego, California 92121-2133

        Attn: Troy Zander

        Fax: (858) 638-5086

        Email: troy.zander@dlapiper.com

	 	 	 

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	22

    	 	

    
 

11.CHOICE
OF LAW, VENUE AND JURY TRIAL WAIVER

 

New York law governs
the Loan Documents without regard to principles of conflicts of law. Borrower, Lenders and Collateral Agent each submit to the
exclusive jurisdiction of the State and Federal courts in the City of New York, Borough of Manhattan. NOTWITHSTANDING THE FOREGOING,
COLLATERAL AGENT AND THE LENDERS SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST BORROWER OR ITS PROPERTY IN THE
COURTS OF ANY OTHER JURISDICTION WHICH COLLATERAL AGENT AND THE LENDERS (IN ACCORDANCE WITH THE PROVISIONS OF SECTION 9.1) DEEM
NECESSARY OR APPROPRIATE TO REALIZE ON THE COLLATERAL OR TO OTHERWISE ENFORCE COLLATERAL AGENT’S AND THE LENDERS’ RIGHTS
AGAINST BORROWER OR ITS PROPERTY. Borrower expressly submits and consents in advance to such jurisdiction in any action or suit
commenced in any such court, and Borrower hereby waives any objection that it may have based upon lack of personal jurisdiction,
improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate
by such court. Borrower hereby waives personal service of the summons, complaints, and other process issued in such action or suit
and agrees that service of such summons, complaints, and other process may be made by registered or certified mail addressed to
Borrower at the address set forth in, or subsequently provided by Borrower in accordance with, Section 10 of this Agreement
and that service so made shall be deemed completed upon the earlier to occur of Borrower’s actual receipt thereof or three
(3) days after deposit in the U.S. mails, first class, registered or certified mail return receipt requested, proper postage prepaid.

 

TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, BORROWER, COLLATERAL AGENT, AND THE LENDERS EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH
OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR EACH PARTY TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS
REVIEWED THIS WAIVER WITH ITS COUNSEL.

 

12.GENERAL
PROVISIONS

 

12.1Successors
and Assigns. This Agreement binds and is for the benefit of the successors and permitted assigns of each party. Borrower may
not transfer, pledge or assign this Agreement or any rights or obligations under it without Collateral Agent’s and each
Lender’s prior written consent (which may be granted or withheld in Collateral Agent’s and each Lender’s discretion,
subject to Section 12.6). Each Lender shall have the right, without the consent of or notice to Borrower or any other Lender (i)
to pledge or grant security interests in all or any part of, or any interest in, such Lender’s obligations, rights, and
benefits under this Agreement and the other Loan Documents in connection with financing transactions for such Lender or its Affiliates
or securitization transactions in which such Lender is involved, and (ii) to grant participations in all or any part of, or any
interest in, such Lender’s obligations, rights, and benefits under this Agreement and the other Loan Documents; provided
that no such pledge, grant of a security interest or participation shall release such Lender from any of its obligations hereunder.
The Lenders have the right, without the consent of or notice to Borrower, to sell, transfer, assign or negotiate (any such sale,
transfer, assignment or negotiation, a “Lender Transfer”) all or any part of, or any interest in, the Lenders’
obligations, rights, and benefits under this Agreement and the other Loan Documents; provided, however, that any
such Lender Transfer (other than a transfer, pledge, sale or assignment to an Eligible Assignee) of its obligations, rights, and
benefits under this Agreement and the other Loan Documents shall require the prior written consent of the Required Lenders (such
approved assignee, an “Approved Lender”). Borrower and Collateral Agent shall be entitled to continue
to deal solely and directly with such Lender in connection with the interests so assigned until Collateral Agent shall have received
and accepted an effective assignment agreement in form satisfactory to Collateral Agent executed, delivered and fully completed
by the applicable parties thereto, and shall have received such other information regarding such Eligible Assignee or Approved
Lender as Collateral Agent reasonably shall require. Notwithstanding anything to the contrary contained herein, so long as no
Event of Default has occurred and is continuing, no Lender Transfer (other than a Lender Transfer (i) in respect of the Warrants
or (ii) in connection with (x) assignments by a Lender due to a forced divestiture at the request of any regulatory agency;
or (y) upon the occurrence of a default, event of default or similar occurrence with respect to a Lender’s own financing
or securitization transactions) shall be permitted, without Borrower’s consent, to any Person which is an Affiliate or Subsidiary
of Borrower, a direct competitor of Borrower or a vulture hedge fund, each as determined by Collateral Agent. Additionally, no
Lender Transfer, and no pledge, security interest or grant of a participation interest in a Lender’s interests under the
Loan Documents, may be made to Borrower or an Affiliate or Subsidiary of Borrower unless all Lenders shall have given their written
consent thereto.

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	23

    	 	

    
 

12.2Indemnification.
Borrower agrees to indemnify, defend and hold Collateral Agent and the Lenders and their respective directors, officers, employees,
agents, attorneys, or any other Person affiliated with or representing Collateral Agent or the Lenders (each, an “Indemnified
Person”) harmless against: (a) all obligations, demands, claims, and liabilities (collectively, “Claims”)
asserted by any other party in connection with; related to; following; or arising from, out of or under, the transactions contemplated
by the Loan Documents; and (b) all losses or Lenders’ Expenses incurred, or paid by Indemnified Person in connection
with; related to; following; or arising from, out of or under, the transactions contemplated by the Loan Documents between Collateral
Agent, and/or the Lenders and Borrower (including reasonable attorneys’ fees and expenses), except for Claims and/or losses
directly caused by such Indemnified Person’s gross negligence or willful misconduct. Borrower hereby further indemnifies,
defends and holds each Indemnified Person harmless from and against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever (including the fees and
disbursements of counsel for such Indemnified Person) in connection with any investigative, response, remedial, administrative
or judicial matter or proceeding, whether or not such Indemnified Person shall be designated a party thereto and including any
such proceeding initiated by or on behalf of Borrower, and the reasonable expenses of investigation by engineers, environmental
consultants and similar technical personnel and any commission, fee or compensation claimed by any broker (other than any broker
retained by Collateral Agent or Lenders) asserting any right to payment for the transactions contemplated hereby which may be
imposed on, incurred by or asserted against such Indemnified Person as a result of or in connection with the transactions contemplated
hereby and the use or intended use of the proceeds of the loan proceeds except for liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, claims, costs, expenses and disbursements directly caused by such Indemnified Person’s
gross negligence or willful misconduct.

 

12.3Time of
Essence. Time is of the essence for the performance of all Obligations in this Agreement.

 

12.4Severability
of Provisions. Each provision of this Agreement is severable from every other provision in determining the enforceability
of any provision.

 

12.5Correction
of Loan Documents. Collateral Agent and the Lenders may correct patent errors and fill in any blanks in this Agreement and
the other Loan Documents consistent with the agreement of the parties.

 

12.6Amendments
in Writing; Integration. (a) No amendment, modification, termination or waiver of any provision of this Agreement or
any other Loan Document, no approval or consent thereunder, or any consent to any departure by Borrower or any of its Subsidiaries
therefrom, shall in any event be effective unless the same shall be in writing and signed by Borrower, Collateral Agent and the
Required Lenders provided that:

 

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

 

(ii)no such amendment,
waiver or modification that would affect the rights and duties of Collateral Agent shall be effective without Collateral Agent’s
written consent or signature;

 

(iii)no such amendment,
waiver or other modification shall, unless signed by all the Lenders directly affected thereby, (A) reduce the principal of, rate
of interest on or any fees with respect to any Term Loan or forgive any principal, interest (other than default interest) or fees
(other than late charges) with respect to any Term Loan (B) postpone the date fixed for, or waive, any payment of principal of
any Term Loan or of interest on any Term Loan (other than default interest) or any fees provided for hereunder (other than late
charges or for any termination of any commitment); (C) change the definition of the term “Required Lenders”
or the percentage of Lenders which shall be required for the Lenders to take any action hereunder; (D) release all or substantially
all of any material portion of the Collateral or any Intellectual Property that is or becomes Collateral or any IP Proceeds, authorize
Borrower to sell or otherwise dispose of all or substantially all or any material portion of the Collateral or any Intellectual
Property or IP Proceeds or release any Guarantor of all or any portion of the Obligations or its guaranty obligations with respect
thereto, except, in each case with respect to this clause (D), as otherwise may be expressly permitted under this Agreement or
the other Loan Documents (including in connection with any disposition permitted hereunder); (E) amend, waive or otherwise modify
this Section 12.6 or the definitions of the terms used in this Section 12.6 insofar as the definitions affect the substance
of this Section 12.6; (F) consent to the assignment, delegation or other transfer by Borrower of any of its rights and obligations
under any Loan Document or release Borrower of its payment obligations under any Loan Document, except, in each case with respect
to this clause (F), pursuant to a merger or consolidation permitted pursuant to this Agreement; (G) amend any of the provisions
of Section 9.4 or amend any of the definitions of Pro Rata Share, Term Loan Commitment, Commitment Percentage or that provide
for the Lenders to receive their Pro Rata Shares of any fees, payments, setoffs or proceeds of Collateral hereunder; (H) subordinate
the Liens granted in favor of Collateral Agent securing the Obligations; or (I) amend any of the provisions of Section 12.10.
It is hereby understood and agreed that all Lenders shall be deemed directly affected by an amendment, waiver or other modification
of the type described in the preceding clauses (C), (D), (E), (F), (G), (H) and (I) of the preceding sentence;

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	24

    	 	

    
 

(iv)the provisions
of the foregoing clauses (i), (ii) and (iii) are subject to the provisions of any interlender or agency agreement among
the Lenders and Collateral Agent pursuant to which any Lender may agree to give its consent in connection with any amendment,
waiver or modification of the Loan Documents only in the event of the unanimous agreement of all Lenders.

 

(b)This Agreement
and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements.
All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter
of this Agreement and the Loan Documents merge into this Agreement and the Loan Documents.

 

12.7Counterparts.
This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which,
when executed and delivered, is an original, and all taken together, constitute one Agreement.

 

12.8Survival.
All covenants, representations and warranties made in this Agreement continue in full force and effect until this Agreement
has terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations
which, by their terms, are to survive the termination of this Agreement) have been satisfied. Without limiting the foregoing,
except as otherwise provided in Section 4.1, the grant of security interest by Borrower in Section 4.1 shall survive until the
later to occur of (a) the Obligations (other than inchoate indemnity obligations) having been repaid in full in cash and (b) the
termination of, or the posting of cash collateral in respect of, all Bank Services Agreements. The obligation of Borrower in Section
12.2 to indemnify each Lender and Collateral Agent, as well as the confidentiality provisions in Section 12.9 below, shall survive
until the statute of limitations with respect to such claim or cause of action shall have run.

 

12.9Confidentiality.
In handling any confidential information of Borrower, the Lenders and Collateral Agent shall exercise the same degree of care
that it exercises for their own proprietary information, but disclosure of information may be made: (a) subject to the terms
and conditions of this Agreement, to the Lenders’ and Collateral Agent’s Subsidiaries or Affiliates, or in connection
with a Lender’s own financing or securitization transactions and upon the occurrence of a default, event of default or similar
occurrence with respect to such financing or securitization transaction; (b) to prospective transferees (other than those
identified in (a) above) or purchasers of any interest in the Credit Extensions (provided, however, the Lenders and Collateral
Agent shall, except upon the occurrence and during the continuance of an Event of Default, obtain such prospective transferee’s
or purchaser’s agreement to the terms of this provision or to similar confidentiality terms); (c) as required by law,
regulation, subpoena, or other order, provided reasonable efforts are made to provide advance notice to Borrower in order to allow
Borrower to seek an appropriate protective order; (d) to Lenders’ or Collateral Agent’s regulators or as otherwise
required in connection with an examination, report or audit; (e) as Collateral Agent reasonably considers appropriate in
exercising remedies under the Loan Documents; and (f) to third party service providers of the Lenders and/or Collateral Agent
so long as such service providers have executed a confidentiality agreement with the Lenders and Collateral Agent with terms no
less restrictive than those contained herein. Confidential information does not include information that either: (i) is in
the public domain or in the Lenders’ and/or Collateral Agent’s possession when disclosed to the Lenders and/or Collateral
Agent, or becomes part of the public domain after disclosure to the Lenders and/or Collateral Agent; or (ii) is disclosed
to the Lenders and/or Collateral Agent by a third party, if the Lenders and/or Collateral Agent does not know that the third party
is prohibited from disclosing the information. Collateral Agent and the Lenders may use confidential information for any purpose,
including, without limitation, for the development of client databases, reporting purposes, and market analysis. The provisions
of the immediately preceding sentence shall survive the termination of this Agreement. The agreements provided under this Section 12.9
supersede all prior agreements, understanding, representations, warranties, and negotiations between the parties about the subject
matter of this Section 12.9.

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	25

    	 	

    
 

12.10Right
of Set Off. Borrower hereby grants to Collateral Agent and to each Lender, a lien, security interest and right of set off
as security for all Obligations to Collateral Agent and each Lender hereunder, whether now existing or hereafter arising upon
and against all deposits, credits, collateral and property, now or hereafter in the possession, custody, safekeeping or control
of Collateral Agent or the Lenders or any entity under the control of Collateral Agent or the Lenders (including a Collateral
Agent affiliate) or in transit to any of them. At any time after the occurrence and during the continuance of an Event of Default,
without demand or notice, Collateral Agent or the Lenders may set off the same or any part thereof and apply the same to any liability
or obligation of Borrower even though unmatured and regardless of the adequacy of any other collateral securing the Obligations.
ANY AND ALL RIGHTS TO REQUIRE COLLATERAL AGENT TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES
THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER
ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED.

 

12.11 Silicon
Valley Bank as Agent. Collateral Agent hereby appoints SVB as its agent (and SVB hereby accepts such appointment) for the
purpose of perfecting Collateral Agent’s Liens in assets which, in accordance with Article 8 or Article 9, as applicable,
of the Code can be perfected by possession or control, including without limitation, all Deposit Accounts, all to the extent maintained
at or by SVB.

 

12.12Cooperation
of Borrower. If necessary, Borrower agrees to (i) execute any documents (including new Secured Promissory Notes) reasonably
required to effectuate and acknowledge each assignment of a Term Loan Commitment or Loan to an assignee in accordance with Section 12.1,
(ii) make Borrower’s management available to meet with Collateral Agent and prospective participants and assignees
of Term Loan Commitments or Credit Extensions (which meetings shall be conducted no more often than twice every twelve months
unless an Event of Default has occurred and is continuing), and (iii) assist Collateral Agent or the Lenders in the preparation
of information relating to the financial affairs of Borrower as any prospective participant or assignee of a Term Loan Commitment
or Term Loan reasonably may request. Subject to the provisions of Section 12.9, Borrower authorizes each Lender to disclose
to any prospective participant or assignee of a Term Loan Commitment, any and all information in such Lender’s possession
concerning Borrower and its financial affairs which has been delivered to such Lender by or on behalf of Borrower pursuant to
this Agreement, or which has been delivered to such Lender by or on behalf of Borrower in connection with such Lender’s
credit evaluation of Borrower prior to entering into this Agreement.

 

12.13Borrower
Liability. Either Borrower may, acting singly, request Credit Extensions hereunder. Each Borrower hereby appoints the other
as agent for the other for all purposes hereunder, including with respect to requesting Credit Extensions hereunder. Each Borrower
hereunder shall be jointly and severally obligated to repay all Credit Extensions made hereunder, regardless of which Borrower
actually receives said Credit Extension, as if each Borrower hereunder directly received all Credit Extensions. Each Borrower
waives (a) any suretyship defenses available to it under the Code or any other applicable law, and (b) any right to
require Collateral Agent or any Lender to: (i) proceed against any Borrower or any other person; (ii) proceed against
or exhaust any security; or (iii) pursue any other remedy. Collateral Agent and or any Lender may exercise or not exercise
any right or remedy it has against any Borrower or any security it holds (including the right to foreclose by judicial or non-judicial
sale) without affecting any Borrower’s liability. Notwithstanding any other provision of this Agreement or other related
document, each Borrower irrevocably waives all rights that it may have at law or in equity (including, without limitation, any
law subrogating Borrower to the rights of Collateral Agent and the Lenders under this Agreement) to seek contribution, indemnification
or any other form of reimbursement from any other Borrower, or any other Person now or hereafter primarily or secondarily liable
for any of the Obligations, for any payment made by Borrower with respect to the Obligations in connection with this Agreement
or otherwise and all rights that it might have to benefit from, or to participate in, any security for the Obligations as a result
of any payment made by Borrower with respect to the Obligations in connection with this Agreement or otherwise. Any agreement
providing for indemnification, reimbursement or any other arrangement prohibited under this Section shall be null and void.
If any payment is made to a Borrower in contravention of this Section, such Borrower shall hold such payment in trust for Collateral
Agent and the Lenders and such payment shall be promptly delivered to Collateral Agent for application to the Obligations, whether
matured or unmatured.

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	26

    	 	

    
 

13.DEFINITIONS

 

13.1Definitions.
As used in this Agreement, the following terms have the following meanings:

 

“Account”
is any “account” as defined in the Code with such additions to such term as may hereafter be made, and includes, without
limitation, all accounts receivable and other sums owing to Borrower.

 

“Account Debtor”
is any “account debtor” as defined in the Code with such additions to such term as may hereafter be made.

 

“Affiliate”
of any Person is a Person that owns or controls directly or indirectly the Person, any Person that controls or is controlled by
or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners and,
for any Person that is a limited liability company, that Person’s managers and members.

 

“Agreement”
is defined in the preamble hereof.

 

“Amortization
Date” is, (x) with respect to the Term A Loan, April 1, 2013 and (y) with respect to the Term A Loan and the Term B
Loan, if Borrower achieves both (i) the Phase II Milestone Event and (ii) either (a) the End of Phase II Meeting or (b) the Equity
Event, and obtains the Term B Loan, October 1, 2013.

 

“Annual Projections”
is defined in Section 6.2(a).

 

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

 

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

 

“Approved
Lender” is defined in Section 12.1.

 

“Bank Services”
are any products, credit services, and/or financial accommodations previously, now, or hereafter provided to Borrower or any of
its Subsidiaries by Bank or any Bank Affiliate, including, without limitation, any letters of credit, cash management services
(including, without limitation, merchant services, direct deposit of payroll, business credit cards, and check cashing services),
interest rate swap arrangements, and foreign exchange services as any such products or services may be identified in Bank’s
various agreements related thereto (each, a “Bank Services Agreement”).

 

“Bank”
is defined in the preamble hereof.

 

“Basic Rate”
is, with respect to a Term Loan, the per annum rate of interest (based on a year of three hundred sixty (360) days) equal to the
greater of either (i) seven and ninety-five one hundredths percent (7.95%) or (ii) the sum of (a) the three (3)
month U.S. LIBOR rate reported in the Wall Street Journal three (3) Business Days prior to the Funding Date of such Term
Loan (which shall not be less than forty-five hundredths of one percent (0.45%), plus (b) seven and one half percent (7.50%).

 

“Blocked Person”
is any Person: (a) listed in the annex to, or is otherwise subject to the provisions of, Executive Order No. 13224, (b) a
Person owned or controlled by, or acting for or on behalf of, any Person that is listed in the annex to, or is otherwise subject
to the provisions of, Executive Order No. 13224, (c) a Person with which any Lender is prohibited from dealing or otherwise
engaging in any transaction by any Anti-Terrorism Law, (d) a Person that commits, threatens or conspires to commit or supports
“terrorism” as defined in Executive Order No. 13224, or (e) a Person that is named a “specially designated
national” or “blocked person” on the most current list published by OFAC or other similar list.

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	27

    	 	

    
 

“Borrower”
is defined in the preamble hereof.

 

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

 

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

 

“Cash Equivalents”
are (a) marketable direct obligations issued or unconditionally guaranteed by the United States or any agency or any State
thereof having maturities of not more than one (1) year from the date of acquisition; (b) commercial paper maturing no more
than one (1) year after its creation and having the highest rating from either Standard & Poor’s Ratings Group or Moody’s
Investors Service, Inc.; (c) certificates of deposit maturing no more than one (1) year after issue provided that the account
in which any such certificate of deposit is maintained is subject to a Control Agreement in favor of Collateral Agent; and (d) money
market funds at least ninety-five percent (95%) of the assets of which constitute Cash Equivalents of the kinds described in clauses (a)
through (c) of this definition. For the avoidance of doubt, the direct purchase by Borrower or any of its Subsidiaries of
any Auction Rate Securities, or purchasing participations in, or entering into any type of swap or other derivative transaction,
or otherwise holding or engaging in any ownership interest in any type of Auction Rate Security by Borrower or any of its Subsidiaries
shall be conclusively determined by the Lenders as an ineligible Cash Equivalent, and any such transaction shall expressly violate
each other provision of this Agreement governing Permitted Investments. Notwithstanding the foregoing, Cash Equivalents does not
include and Borrower, and each of its Subsidiaries, are prohibited from purchasing, purchasing participations in, entering into
any type of swap or other equivalent derivative transaction, or otherwise holding or engaging in any ownership interest in any
type of debt instrument, including, without limitation, any
corporate or municipal
bonds with a long-term nominal maturity for which the interest
rate is reset through a dutch auction and more commonly
referred to as an auction rate security (each, an “Auction Rate Security”).

 

“Claims”
are defined in Section 12.2.

 

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

 

“Collateral”
is any and all properties, rights and assets of Borrower described on Exhibit A.

 

“Collateral
Account” is any Deposit Account, Securities Account, or Commodity Account, or any other bank account maintained by Borrower
or any Subsidiary at any time.

 

“Collateral
Agent” is, Oxford, not in its individual capacity, but solely in its capacity as agent on behalf of and for the benefit
of the Lenders.

 

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

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	28

    	 	

    
 

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

 

“Communication”
is defined in Section 10.

 

“Compliance
Certificate” is that certain certificate in the form attached hereto as Exhibit C.

 

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

 

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

 

“Copyrights”
are any and all copyright rights, copyright applications, copyright registrations and like protections in each work or authorship
and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret.

 

“Credit Extension”
is any Term Loan or any other extension of credit by Collateral Agent or Lenders for Borrower’s benefit.

 

“Default Rate”
is defined in Section 2.3(b).

 

“Deposit Account”
is any “deposit account” as defined in the Code with such additions to such term as may hereafter be made.

 

“Designated
Deposit Account” is Borrower’s deposit account with Union Bank, as identified in the Perfection Certificate delivered
to Collateral Agent as of the Effective Date (and as such deposit account information may be updated in writing from time to time).

 

“Disbursement
Letter” is that certain form attached hereto as Exhibit B-1.

 

“Dollar Equivalent”
is, at any time, (a) with respect to any amount denominated in Dollars, such amount, and (b) with respect to any amount
denominated in a Foreign Currency, the equivalent amount therefor in Dollars as determined by Bank at such time on the basis of
the then-prevailing rate of exchange in San Francisco, California, for sales of the Foreign Currency for transfer to the country
issuing such Foreign Currency.

 

“Dollars,”
“dollars” and “$” each mean lawful money of the United States.

 

“Effective
Date” is defined in the preamble of this Agreement.

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	29

    	 	

    
 

“Eligible
Assignee” is (i) a Lender, (ii) an Affiliate of a Lender, (iii) an Approved Fund and (iv) any commercial bank, savings
and loan association or savings bank or any other entity which is an “accredited investor” (as defined in Regulation
D under the Securities Act of 1933, as amended) and which extends credit or buys loans as one of its businesses, including insurance
companies, mutual funds, lease financing companies, small business investment companies, business development companies and commercial
finance companies, in each case, which at as of the date that it becomes a Lender either (A) has a rating of BBB or higher from
Standard & Poor’s Rating Group and a rating of Baa2 or higher from Moody’s Investors Service, Inc. or (B) together
with its affiliated entities, has total assets in excess of Seven Hundred Fifty Million Dollars ($750,000,000.00), and in each
case of clauses (i) through (iv), which, through its applicable lending office, is capable of lending to Borrower without the imposition
of any withholding or similar taxes; provided that notwithstanding the foregoing, “Eligible Assignee” shall not include,
Borrower or any of Borrower’s Affiliates or, unless an Event of Default has occurred and is continuing, a direct competitor
of Borrower or a vulture hedge fund, each as reasonably determined by Collateral Agent. Notwithstanding the foregoing, (x) in connection
with assignments by a Lender due to a forced divestiture at the request of any regulatory agency, the restrictions set forth herein
shall not apply and Eligible Assignee shall mean any Person or party and (y) in connection with a Lender’s own financing
or securitization transactions, the restrictions set forth herein shall not apply and Eligible Assignee shall mean any Person or
party providing such financing or formed to undertake such securitization transaction and any transferee of such Person or party
upon the occurrence of a default, event of default or similar occurrence with respect to such financing or securitization transaction;
provided that no such sale, transfer, pledge or assignment under this clause (y) shall release such Lender from any of its obligations
hereunder or substitute any such Person or party for such Lender as a party hereto until Collateral Agent shall have received and
accepted an effective assignment agreement from such Person or party in form satisfactory to Collateral Agent executed, delivered
and fully completed by the applicable parties thereto, and shall have received such other information regarding such Eligible Assignee
as Collateral Agent reasonably shall require.

 

“End of Phase
II Meeting” is a positive End of Phase II meeting with the FDA on the bavituximab second-line NSCLC program (defined
as moving into Phase III design); and evidence of the same in form and content reasonably acceptable to the Lenders.

 

“Equipment”
is all “equipment” as defined in the Code with such additions to such term as may hereafter be made, and includes without
limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing.

 

“Equity Event”
is the receipt by Borrower after the Effective Date of unrestricted, non-recourse net cash proceeds of not less than [**] from
a combination of (i) the issuance and sale by Borrower of its equity securities and (ii) an “up front” payment
on Borrower’s bavituximab NSCLC program in connection with a joint venture, collaboration
or other partnering transaction (any such transaction, a “Partnering Transaction”); provided that at least [**] of
the Equity Event must come from a Partnering Transaction.

 

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

 

“Event of
Default” is defined in Section 8.

 

“FDA”
is the U.S. Food and Drug Administration.

 

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

 

“Final Payment
Percentage” is six and one-half percent (6.50%).

 

“Foreign Currency”
means lawful money of a country other than the United States.

 

“Foreign Subsidiary”
is a Subsidiary that is not an entity organized under the laws of the United States or any territory thereof.

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	30

    	 	

    
 

“Funding Date”
is any date on which a Credit Extension is made to or on account of Borrower which shall be a Business Day.

 

“FX Contract”
is any foreign exchange contract by and between Borrower and Bank under which Borrower commits to purchase from or sell to Bank
a specific amount of Foreign Currency on a specified date.

 

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

 

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

 

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

 

“Governmental
Authority” is any nation or government, any state or other political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative
functions of or pertaining to government, any securities exchange and any self-regulatory organization.

 

“Guarantor”
is any Person providing a Guaranty in favor of Collateral Agent.

 

“Guaranty”
is any guarantee of all or any part of the Obligations, as the same may from time to time be amended, restated, modified or otherwise
supplemented.

 

“Indebtedness”
is (a) indebtedness for borrowed money or the deferred price of property or services, such as reimbursement and other obligations
for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital
lease obligations, and (d) Contingent Obligations.

 

“Indemnified
Person” is defined in Section 12.2.

 

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

 

“Insolvent”
means not Solvent.

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	31

    	 	

    
 

“Intellectual
Property” means all of Borrower’s or any Subsidiary’s right, title and interest in and to the following:

 

(a)its Copyrights,
Trademarks and Patents;

 

(b)any and all trade
secrets and trade secret rights, including, without limitation, any rights to unpatented inventions, know-how, operating manuals;

 

(c)any and all source
code;

 

(d)any and all design
rights which may be available to Borrower;

 

(e)any and all claims
for damages by way of past, present and future infringement of any of the foregoing, with the right, but not the obligation, to
sue for and collect such damages for said use or infringement of the Intellectual Property rights identified above; and

 

(f)all amendments,
renewals and extensions of any of the Copyrights, Trademarks or Patents.

 

“Inventory”
is all “inventory” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter
be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work
in process and finished products, including without limitation such inventory as is temporarily out of any Person’s custody
or possession or in transit and including any returned goods and any documents of title representing any of the above.

 

“Investment”
is any beneficial ownership interest in any Person (including stock, partnership interest or other securities), and any loan, advance,
payment or capital contribution to any Person.

 

“Key Person”
is each of Borrower’s (i) President and Chief Executive Officer, who is Steven W. King as of the Effective Date, (ii) Chief
Financial Officer, who is Paul J. Lytle as of the Effective Date and (iii) V.P., General Counsel, who is Mark R. Ziebell as
of the Effective Date.

 

“Lender”
is any one of the Lenders.

 

“Lenders”
are the Persons identified on Schedule 1.1 hereto and each assignee that becomes a party to this Agreement pursuant
to Section 12.1.

 

“Lenders’
Expenses” are all audit fees and expenses, costs, and expenses (including reasonable attorneys’ fees and expenses,
as well as appraisal fees, fees incurred on account of lien searches, inspection fees, and filing fees) for preparing, amending,
negotiating, administering, defending and enforcing the Loan Documents (including, without limitation, those incurred in connection
with appeals or Insolvency Proceedings) or otherwise incurred by Collateral Agent and/or the Lenders in connection with the Loan
Documents; provided, that, if requested by Borrower in writing, all such fees, expenses and costs are supported by summary invoices
or statements (and further provided that the failure to provide any such summary invoices or statements shall not render the Lender
Expenses not due and payable).

 

“Letter of
Credit” is a standby or commercial letter of credit issued by Bank upon request of Borrower based upon an application,
guarantee, indemnity, or similar agreement.

 

“Lien”
is a claim, mortgage, deed of trust, levy, charge, pledge, security interest, or other encumbrance of any kind, whether voluntarily
incurred or arising by operation of law or otherwise against any property.

 

“Loan Documents”
are, collectively, this Agreement, the Perfection Certificates, each Compliance Certificate, each Disbursement Letter, each Loan
Payment/Advance Request Form and any Bank Services Agreement, the Post Closing Letter, any subordination agreements, any note,
or notes or guaranties executed by Borrower or any other Person, and any other present or future agreement entered into by Borrower,
any Guarantor or any other Person for the benefit of the Lenders and Collateral Agent in connection with this Agreement (other
than the Warrants); all as amended, restated, or otherwise modified.

 

“Loan Payment/Advance
Request Form” is that certain form attached hereto as Exhibit B-2.

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	32

    	 	

    
 

“Material
Adverse Change” is (a) a material impairment in the perfection or priority of Collateral Agent’s Lien in the
Collateral or in the value of such Collateral; (b) a material adverse change in the business, operations or condition (financial
or otherwise) of Borrower or any Subsidiary; or (c) a material impairment of the prospect of repayment of any portion of the
Obligations.

 

“Maturity
Date” is, (x) with respect to the Term A Loan, September 1, 2015 and (y) with respect to the Term A Loan and the Term
B Loan, if Borrower achieves both (i) the Phase II Milestone Event and (ii) either (a) the End of Phase II Meeting or (b) the Equity
Event, and obtains the Term B Loan, March 1, 2016.

 

“Medibiotech”
is Medibiotech Co., Inc., a Delaware corporation.

 

“NSCLC”
is non-small cell lung cancer.

 

“Non-Utilization
Fee” is an additional fee payable to the Lenders, in the event Borrower achieves (i) the Phase II Milestone Event and
(ii)(a) the End of Phase II Meeting or (b) the Equity Event, but declines to request the Term B Loan, in amount equal to Two Hundred
Twenty Five Thousand Dollars ($225,000.00); which fee shall be due and payable, if at all, no later than March 31, 2013.

 

“Obligations”
are all of Borrower’s obligations to pay when due any debts, principal, interest, Lenders’ Expenses, the Prepayment
Fee, the Final Payment, the Non-Utilization Fee and other amounts Borrower owes the Lenders now or later, in connection with, related
to, following, or arising from, out of or under, this Agreement or, the other Loan Documents (other than the Warrants), or otherwise,
including, without limitation, all obligations relating to letters of credit (including reimbursement obligations for drawn and
undrawn letters of credit), Bank Services, if any, and including interest accruing after Insolvency Proceedings begin (whether
or not allowed) and debts, liabilities, or obligations of Borrower assigned to the Lenders and/or Collateral Agent, and the performance
of Borrower’s duties under the Loan Documents (other than the Warrants).

 

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

 

“OFAC Lists”
are, collectively, the Specially Designated Nationals and Blocked Persons List maintained by OFAC pursuant to Executive Order No.
13224, 66 Fed. Reg. 49079 (Sept. 25, 2001) and/or any other list of terrorists or other restricted Persons maintained pursuant
to any of the rules and regulations of OFAC or pursuant to any other applicable Executive Orders.

 

“Operating
Documents” are, for any Person, such Person’s formation documents, as certified by the Secretary of State (or equivalent
agency) of such Person’s jurisdiction of organization on a date that is no earlier than thirty (30) days prior to the Effective
Date, and, (a) if such Person is a corporation, its bylaws in current form, (b) if such Person is a limited liability
company, its limited liability company agreement (or similar agreement), and (c) if such Person is a partnership, its partnership
agreement (or similar agreement), each of the foregoing with all current amendments or modifications thereto.

 

“Patents”
means all patents, patent applications and like protections including without limitation improvements, divisions, continuations,
renewals, reissues, extensions and continuations-in-part of the same.

 

“Payment Date”
is the first (1st) calendar day of each calendar month, commencing on October 1, 2012.

 

“Peregrine
China” is Peregrine (Beijing) Pharmaceutical Technology Ltd., an entity organized under the laws of China and a wholly-owned
Subsidiary of Parent.

 

“Perfection
Certificate” and “Perfection Certificates” is defined in Section 5.1.

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	33

    	 	

    
 

“Permitted
Indebtedness” is:

 

(a)Borrower’s
Indebtedness to the Lenders and Collateral Agent under this Agreement and the other Loan Documents;

 

(b)Indebtedness
existing on the Effective Date and disclosed on the Perfection Certificate(s);

 

(c)Subordinated
Debt;

 

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

 

(e)Indebtedness
consisting of capitalized lease obligations and purchase money Indebtedness, in each case incurred by Borrower or any of its Subsidiaries
to finance the acquisition, repair, improvement or construction of fixed or capital assets of such person, provided that (i) the
aggregate outstanding principal amount of all such Indebtedness does not exceed One Hundred Thousand Dollars ($100,000.00) at
any time and (ii) the principal amount of such Indebtedness does not exceed the lower of the cost or fair market value of
the property so acquired or built or of such repairs or improvements financed with such Indebtedness (each measured at the time
of such acquisition, repair, improvement or construction is made);

 

(f)Indebtedness
incurred as a result of endorsing negotiable instruments received in the ordinary course of Borrower’s business; and

 

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

 

“Permitted
Investments” are:

 

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

 

(b)(i) Investments
consisting of cash and Cash Equivalents, and (ii) any Investments permitted by Borrower’s investment policy, as amended
from time to time, provided that such investment policy (and any such amendment thereto) has been approved in writing by Collateral
Agent;

 

(c)Investments consisting
of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of Borrower;

 

(d)Investments consisting
of Deposit Accounts in which Collateral Agent has a perfected security interest;

 

(e)Investments in
connection with Transfers permitted by Section 7.1;

 

(f)Investments (i)
by Borrower in Peregrine China following the Effective Date not to exceed Twenty Thousand Dollars ($20,000.00) in the aggregate
in any fiscal year to cover rent and miscellaneous other expenses; and (ii) by Peregrine China and/or VTT in Borrower or any other
Subsidiary (other than Peregrine China or VTT);

 

(g)Investments consisting
of (i) travel advances and employee relocation loans and other employee loans and advances in the ordinary course of business,
and (ii) loans to employees, officers or directors relating to the purchase of equity securities of Borrower or its Subsidiaries
pursuant to employee stock purchase plans or agreements approved by Borrower’s Board of Directors; not to exceed Twenty
Five Thousand Dollars ($25,000.00) in the aggregate for (i) and (ii) in any fiscal year;

 

(h)Investments (including
debt obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of
delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of business;

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	34

    	 	

    
 

(i)Investments consisting
of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers who are not Affiliates, in
the ordinary course of business; provided that this paragraph (i) shall not apply to Investments of Borrower in any Subsidiary;

 

(j)Borrower’s
ownership of 950,000 shares of common stock of Medibiotech; and

 

(k)non-cash Investments
in joint ventures or strategic alliances in the ordinary course of Borrower’s business consisting of the non-exclusive licensing
of technology, the development of technology or the providing of technical support.

 

“Permitted
Licenses” are (A) licenses of over-the-counter software that is commercially available to the public, and (B) non-exclusive
and exclusive licenses for the use of the Intellectual Property of Borrower or any of its Subsidiaries entered into in the ordinary
course of business, provided, that, with respect to each such license described in clause (B), (i) no Event of Default
has occurred or is continuing at the time of such license; (ii) the license constitutes an arms-length transaction, the terms
of which, on their face, do not provide for a sale or assignment of any Intellectual Property and do not restrict the ability of
Borrower or any of its Subsidiaries, as applicable, to pledge, grant a security interest in or lien on, or assign or otherwise
Transfer any Intellectual Property; (iii) in the case of any exclusive license, (x) Borrower delivers twenty (20) days’
prior written notice and a brief summary of the terms of the proposed license to Collateral Agent and the Lenders and delivers
to Collateral Agent and the Lenders copies of the final executed licensing documents in connection with the exclusive license promptly
upon consummation thereof, (y) any such license is made in connection with a bona fide corporate collaboration or partnership,
and is approved by Borrower’s (or the applicable Subsidiary’s) board of directors, and (z) any such license could not
result in a legal transfer of title of the licensed property but may be exclusive in respects other than territory and may be exclusive
as to territory only as to discrete geographical areas outside of the United States; and (iv) all upfront payments, royalties,
milestone payments or other proceeds arising from the licensing agreement that are payable to Borrower or any of its Subsidiaries
are paid to a Deposit Account that is governed by a Control Agreement.

 

“Permitted
Liens” are:

 

(a)Liens existing
on the Effective Date and disclosed on the Perfection Certificates or arising under this Agreement and the other Loan Documents;

 

(b)Liens for taxes,
fees, assessments or other government charges or levies, either (i) not due and payable or (ii) being contested in good
faith and for which Borrower maintains adequate reserves on its Books, provided that no notice of any such Lien has been filed
or recorded under the Internal Revenue Code of 1986, as amended, and the Treasury Regulations adopted thereunder;

 

(c)liens securing
Indebtedness permitted under clause (e) of the definition of “Permitted Indebtedness,” provided that (i) such
liens exist prior to the acquisition of, or attach substantially simultaneous with, or within twenty (20) days after the,
acquisition, lease, repair, improvement or construction of, such property financed or leased by such Indebtedness and (ii) such
liens do not extend to any property of Borrower other than the property (and proceeds thereof) acquired, leased or built, or the
improvements or repairs, financed by such Indebtedness;

 

(d)Liens of carriers,
warehousemen, suppliers, or other Persons that are possessory in nature arising in the ordinary course of business so long as
such Liens attach only to Inventory, securing liabilities in the aggregate amount not to exceed Twenty Five Thousand Dollars ($25,000.00),
and which are not delinquent or remain payable without penalty or which are being contested in good faith and by appropriate proceedings
which proceedings have the effect of preventing the forfeiture or sale of the property subject thereto;

 

(e)Liens to secure
payment of workers’ compensation, employment insurance, old-age pensions, social security and other like obligations incurred
in the ordinary course of business (other than Liens imposed by ERISA);

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	35

    	 	

    
 

(f)Liens incurred
in the extension, renewal or refinancing of the indebtedness secured by Liens described in (a) through (c), but any
extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount
of the indebtedness may not increase;

 

(g)leases or subleases
of real property granted in the ordinary course of Borrower’s business (or, if referring to another Person, in the ordinary
course of such Person’s business), and leases, subleases, non-exclusive licenses or sublicenses of personal property (other
than Intellectual Property) granted in the ordinary course of Borrower’s business (or, if referring to another Person, in
the ordinary course of such Person’s business), if the leases, subleases, licenses and sublicenses do not prohibit granting
Collateral Agent or any Lender a security interest therein;

 

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

 

(i)Liens arising
from judgments, decrees or attachments in circumstances not constituting an Event of Default under Section 8.4 or 8.7; and

 

(j)Liens consisting
of Permitted Licenses.

 

“Person”
is any individual, sole proprietorship, partnership, limited liability company, joint venture, company, trust, unincorporated organization,
association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency.

 

“Phase II
Milestone Event” is the receipt by Borrower, in form and content reasonably acceptable to the Lenders, of positive overall
survivability data in Borrower’s bavituximab second-line Phase II non-small cell lung cancer program.

 

“Post Closing
Letter” is that certain Post Closing Letter dated as of the Effective Date by and between Collateral Agent and Borrower.

 

“Prepayment
Fee” is, with respect to any Term Loan subject to prepayment prior to the Maturity Date, whether by mandatory or voluntary
prepayment, acceleration or otherwise, an additional fee payable to the Lenders in amount equal to:

 

(i)for a prepayment
made on or after the Funding Date of such Term Loan through and including the first anniversary of the Funding Date of such Term
Loan, three percent (3.00%) of the principal amount of such Term Loan prepaid;

 

(ii)for a prepayment
made after the date which is after the first anniversary of the Funding Date of such Term Loan through and including the second
anniversary of the Funding Date of such Term Loan, two percent (2.00%) of the principal amount of the Term Loans prepaid; and

 

(iii)for a prepayment
made after the date which is after the second anniversary of the Funding Date of such Term Loan and prior to the Maturity Date,
one percent (1.00%) of the principal amount of the Term Loans prepaid.

 

“Pro Rata
Share” is, as of any date of determination, with respect to each Lender, a percentage (expressed as a decimal, rounded
to the ninth decimal place) determined by dividing the outstanding principal amount of Term Loans held by such Lender by the aggregate
outstanding principal amount of all Term Loans.

 

“Registered
Organization” is any “registered organization” as defined in the Code with such additions to such term as
may hereafter be made

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	36

    	 	

    
 

“Required
Lenders” means (i) for so long as all of the Persons that are Lenders on the Effective Date (each an “Original
Lender”) have not assigned or transferred any of their interests in their respective Term Loans, Lenders holding one hundred
percent (100%) of the aggregate outstanding principal balance of the Term Loans, or (ii) at any time from and after any Original
Lender has assigned or transferred any interest in its Term Loans, Lenders holding, sixty six percent (66%) or more of the aggregate
outstanding principal balance of the Term Loans, plus, in respect of this clause (ii), (A) each Original Lender that has not assigned
or transferred any portion of its respective Term Loan, (B) each assignee of an Original Lender, (C) any Person or party providing
financing to an Original Lender, and any transferee of such Person or party upon the occurrence of a default, event of default
or similar occurrence with respect to such financing, and (D) any Person or party formed to undertake a securitization transaction
with respect to an Original Lender and any transferee of such Person or party upon the occurrence of a default, event of default
or similar occurrence with respect to such securitization transaction (in each case in respect of clauses (A), (B), (C) and (D)
of this clause (ii), whether or not such Lender is included within the Lenders holding sixty six percent (66%) of the Terms Loans);
provided, however, that notwithstanding the foregoing, for purposes of Section 9.1(b) hereof, “Required Lenders” means
(i) for so long as all Original Lenders retain one hundred percent (100%) of their interests in their respective Term Loans, Lenders
holding one hundred percent (100%) of the aggregate outstanding principal balance of the Term Loans, or (ii) at any time from and
after any Original Lender has assigned or transferred any interest in its Term Loans, Lenders holding, sixty six percent (66%)
or more of the aggregate outstanding principal balance of the Term Loans, plus, in respect of this clause (ii), each Original Lender
that has not assigned or transferred any portion of its respective Term Loan (in each case in respect of this clause (ii), whether
or not such Original Lender is included within the Lenders holding sixty six percent (66%) of the Term Loans). For purposes of
this definition only, a Lender and Original Lender shall be deemed to include itself, and any Lender that is an Affiliate or Approved
Fund of such Lender or Original Lender.

 

“Requirement
of Law” is as to any Person, the organizational or governing documents of such Person, and any law (statutory or common),
treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable
to or binding upon such Person or any of its property or to which such Person or any of its property is subject.

 

“Responsible
Officer” is any of the President, Chief Executive Officer, or Chief Financial Officer of Borrower acting alone.

 

“Second Draw
Period” is the period commencing on the date on which Borrower has achieved both (i) the Phase II Milestone Event and
(ii) either (a) the End of Phase II Meeting or (b) the Equity Event, and ending on the earliest of (i) thirty (30) days after
the commencement of such period; (ii) March 31, 2013; and (iii) the occurrence of an Event of Default; provided, however,
that the Second Draw Period shall not commence if an Event of Default has occurred and is continuing.

 

“SBA”
is the United States Small Business Administration or any successor thereto, and any analogous Governmental Authority.

 

“Secured Promissory
Note” is defined in Section 2.4.

 

“Secured Promissory
Note Record” is a record maintained by each Lender with respect to the outstanding Obligations owed by Borrower to Lender
and credits made thereto.

 

“Securities
Account” is any “securities account” as defined in the Code with such additions to such term as may hereafter
be made.

 

“Shares”
is one hundred percent (100%) of the issued and outstanding capital stock, membership units or other securities owned or held of
record by Borrower or Borrower’s Subsidiary, in any Subsidiary, and by Borrower in Medibiotech; provided that, in the event
Borrower, demonstrates to Collateral Agent’s reasonable satisfaction, that a pledge of more than sixty five percent (65%)
of the Shares of a Subsidiary which is a Foreign Subsidiary, creates a present and existing adverse tax consequence to Borrower
under the U.S. Internal Revenue Code, “Shares” shall mean sixty-five percent (65%) of the issued and outstanding capital
stock, membership units or other securities owned or held of record by Borrower or its Subsidiary in such Foreign Subsidiary.

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	37

    	 	

    
 

“Solvent”
is, with respect to any Person: the fair salable value of such Person’s consolidated assets (including goodwill minus disposition
costs) exceeds the fair value of such Person’s liabilities; such Person is not left with unreasonably small capital after
the transactions in this Agreement; and such Person is able to pay its debts (including trade debts) as they mature.

 

“Subject Intellectual
Property” is defined in Section 5.2(d).

 

“Subordinated
Debt” is indebtedness incurred by Borrower or any of its Subsidiaries subordinated to all Indebtedness of Borrower and/or
its Subsidiaries to the Lenders (pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory
to Collateral Agent and the Lenders entered into between Collateral Agent, Borrower, and/or any of its Subsidiaries, and the other
creditor), on terms acceptable to Collateral Agent and the Lenders.

 

“Subsidiary”
is, with respect to any Person, any Person of which more than fifty percent (50%) of the voting stock or other equity interests
(in the case of Persons other than corporations) is owned or controlled, directly or indirectly, by such Person or one or more
of Affiliates of such Person; provided that Medibiotech shall not be deemed a Subsidiary for purposes of this Agreement.

 

“Term A
Loan” is defined in Section 2.2(a)(i) hereof.

 

“Term B
Loan” is defined in Section 2.2(a)(ii) hereof.

 

“Term Loan”
is defined in Section 2.2(a)(ii) hereof.

 

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

 

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

 

“Transfer”
is defined in Section 7.1.

 

“VTT”
means Vascular Targeting Technologies, Inc., a Delaware corporation and wholly-owned, dormant Subsidiary of Parent.

 

“Warrants”
are those certain Warrants to Purchase Stock dated as of the Effective Date, or any date thereafter, issued by Borrower in favor
of each Lender or such Lender’s Affiliates.

 

 

[Balance
of Page Intentionally Left Blank]

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission. 

 

    	38

    	 	

    
 

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

 

	BORROWER:	 	BORROWER:	 
	 	 	 	 
	PEREGRINE PHARMACEUTICALS, INC.	 	AVID BIOSERVICES, INC.	 
	 	 	 	 
	 	 	 	 
	By  /s/ Paul Lytle                           	 	By  /s/ Paul Lytle                     	 
	Name: Paul Lytle                           	 	Name: Paul Lytle                     	 
	Title:  Chief Financial Officer	 	Title: Chief Financial Officer	 
	 	 	 	 
	 	 	 	 
	COLLATERAL AGENT AND LENDER:	 	 	 
	 	 	 	 
	OXFORD FINANCE LLC	 	 	 
	 	 	 	 
	 	 	 	 
	By  /s/ Mark Davis                           	 	 	 
	Name: Mark Davis                           	 	 	 
	Title: Vice President – Finance, Secretary & Treasurer	 	 	 
	 	 	 	 
	 	 	 	 
	LENDER:	 	LENDER:	 
	 	 	 	 
	MIDCAP FINANCIAL SBIC, LP	 	SILICON VALLEY BANK	 
	 	 	 	 
	By:  Midcap Financial SBIC GP, LLC	 	 	 
	 	 	 	 
	By /s/ Josh Groman                        	 	By: /s/ Brett Mayer                     	 
	Name: Josh Groman                        		Name: Brett Maver                     	 
	Title: Authorized Signatory	 	Title: Relationship Manager	 

 

 

[Signature Page to Loan and Security
Agreement]

 

    	 

    	 

    
 

 

SCHEDULE 1.1

Lenders and Commitments

 

	 	Term A Loans	 
	Lender	Term Loan Commitment	Commitment Percentage
	OXFORD FINANCE LLC	$7,500,000.00	50.00000%
	MIDCAP FINANCIAL SBIC, LP	$5,000,000.00	33.33333%
	SILICON VALLEY BANK	$2,500,000.00	16.66667%
	TOTAL	$15,000,000.00	100.00%

	 	 	 
	 	Term B Loans	 
	Lender	Term Loan Commitment	Commitment Percentage
	OXFORD FINANCE LLC	$7,500,000.00	50.00000%
	MIDCAP FINANCIAL SBIC, LP	$5,000,000.00	33.33333%
	SILICON VALLEY BANK	$2,500,000.00	16.66667%
	TOTAL	$15,000,000.00	100.00%

	 	 	 
	 	Aggregate (all Term Loans)	 
	Lender	Term Loan Commitment	Commitment Percentage
	OXFORD FINANCE LLC	$15,000,000.00	50.00000%
	MIDCAP FINANCIAL SBIC, LP	$10,000,000.00	33.33333%
	SILICON VALLEY BANK	$5,000,000.00	16.66667%
	TOTAL	$30,000,000.00	100.00%

 

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission

 

    	 

    	 

    
 

 

SCHEDULE 5.2

Subject Intellectual Property

 

Subject Intellectual Property

 

Patents and Patent Licenses

 

Peregrine has exclusive rights to market and sell world-wide
the bavituximab family of antibodies for treatment of all solid tumors and viral infections, including non-small cell lung cancer,
breast cancer, Hepatitis C and HIV through the following list of patents and license agreements:

 

	
        Product Covered
	Licensor Name	Licensor Address	Lic. Exp.

 Date	IP Exp. Date	Exclusive?	Restriction
	 	 	 	 	 	 	 
	Unconjugated PS-targeting antibodies	Univ. of Texas System	201 W. 7th Street, Austin, TX 78701	Upon exp of Patents	2019	Yes	Transferable to successor
	PS-targeting conjugates	Univ. of Texas System	201 W. 7th Street, Austin, TX 78701	Upon exp of Patents	2021	Yes	Transferable to successor
	Bavituximab	Univ. of Texas System	201 W. 7th Street, Austin, TX 78701	Upon exp of Patents	2025	Yes	Transferable to successor
	Bavituximab	Avanir Pharmaceuticals	101 Enterprise, Suite 300, Aliso Viejo, CA 92656	10 year from first commercial sale per country	N/A	Yes	Transferable to successor
	Anti-PS antibodies	Genentech, Inc.	1 DNA Way, South San Francisco, CA 94080	Upon exp of Patents	2019	No	Transferable to successor
	Bavituximab	Lonza Sales AG	
        Muenchensteinerstrasse 38, CH-4002, Basel,

        Switzerland
	Upon later of 15 years from first commercial sale or exp of Patents	2016	No	Transferable to successor

 

 

 

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	 

    	 

    
 

Peregrine has exclusive rights to market and sell in the United
States, Europe and certain other countries (except China and certain member nations of the Asia Pacific Economic Cooperation, APEC)
the product known as Cotara® (a chimeric antibody labeled with radioactive iodine-131 that targets necrotic tumor cells) ,
and the Cotara® family of antibodies, for treatment of brain, colon, liver, lung, prostate, pancreatic and other cancers, through
the following list of Patents and license agreements:

 

	Description	
        Registration/

        Patent/Application

        Number
	
        Registration/

        Issue/Application

        Date

	
        METHOD AND APPARATUS FOR CONTINUOUS LARGE-SCALE RADIOLABELING
        OF PROTEINS (AUSTRALIA)
	
        2004253924
	11/12/09
	
        METHOD AND APPARATUS FOR CONTINUOUS LARGE-SCALE RADIOLABELING
        OF PROTEINS (CANADA)
	
        2,527,054
	11/24/05
	
        METHOD AND APPARATUS FOR CONTINUOUS LARGE-SCALE RADIOLABELING
        OF PROTEINS (CHINA)
	
        ZL200480017742.X
	03/25/09
	
        METHOD AND APPARATUS FOR CONTINUOUS LARGE-SCALE RADIOLABELING
        OF PROTEINS (EPO - Belgium, Switzerland, Germany, Denmark, Finland, France, Great Britain, Ireland, Netherlands, Sweden)
	
        1 638 989
	
        07/30/09

	
        METHOD AND APPARATUS FOR CONTINUOUS LARGE-SCALE RADIOLABELING
        OF PROTEINS (HONG KONG)
	
        1087417
	10/24/08
	
        METHOD AND APPARATUS FOR CONTINUOUS LARGE-SCALE RADIOLABELING
        OF PROTEINS (INDIA)
	
        419/DELNP/2006
	01/23/06
	
        METHOD AND APPARATUS FOR CONTINUOUS LARGE-SCALE RADIOLABELING
        OF PROTEINS (NEW ZEALAND)
	
        543495
	
        08/13/09

	
        METHODS AND APPARATUS FOR CONTINUOUS LARGE-SCALE RADIOLABELING
        OF PROTEINS ( UNITED STATES)
	
        7,591,953
	09/22/09
	
        METHODS AND APPARATUS FOR CONTINUOUS LARGE-SCALE RADIOLABELING
        ( UNITED STATES)
	
        8,137,540
	03/20/12
	ANTIBODIES WITH REDUCED NET POSITIVE CHARGE (EPO – Austria, Switzerland, Denmark, Spain, France , Great Britain, Italy, Russia)	0873139	
        01/06/97

	ANTIBODIES WITH REDUCED NET POSITIVE CHARGE (AUSTRALIA)	730388	
        01/06/97

	ANTIBODIES WITH REDUCED NET POSITIVE CHARGE (CANADA)	2242750	
        01/06/97

	ANTIBODIES WITH REDUCED NET POSITIVE CHARGE (JAPAN)	024825/2012	
        02/08/12

	ANTIBODIES WITH REDUCED NET POSITIVE CHARGE (KOREA)	485240	
        01/06/97

	ANTIBODIES WITH REDUCED NET POSITIVE CHARGE (MEXICO)	985565	
        01/06/97

	ANTIBODIES WITH REDUCED NET POSITIVE CHARGE (UNITED STATES)	
        5,990,286
	
        11/23/1999

	SPECIFIC BINDING PROTEINS INCLUDING ANTIBODIES WHICH BIND TO THE NECROTIC CENTRE OF TUMOURS, AND USES THEREOF (AUSTRALIA)	766564	07/02/1999
	SPECIFIC BINDING PROTEINS INCLUDING ANTIBODIES WHICH BIND TO THE NECROTIC CENTRE OF TUMOURS, AND USES THEREOF (CANADA)	2336114	07/02/1999
	SPECIFIC BINDING PROTEINS INCLUDING ANTIBODIES WHICH BIND TO THE NECROTIC CENTRE OF TUMOURS, AND USES THEREOF (JAPAN)	558212/2000	07/02/1999
	SPECIFIC BINDING PROTEINS INCLUDING ANTIBODIES WHICH BIND TO THE NECROTIC CENTRE OF TUMOURS, AND USES THEREOF (EPO - Germany, France, Great Britain, Netherlands)	1092028	07/02/1999
	SPECIFIC BINDING PROTEINS INCLUDING ANTIBODIES WHICH BIND TO THE NECROTIC CENTRE OF TUMOURS, AND USES THEREOF (EPO - Hong Kong)	HK1086598	07/02/1999
	SPECIFIC BINDING PROTEINS INCLUDING ANTIBODIES WHICH BIND TO THE NECROTIC CENTRE OF TUMOURS, AND USES THEREOF (UNITED STATES)	6,827,925	09/27/2001
	SPECIFIC BINDING PROTEINS INCLUDING ANTIBODIES WHICH BIND TO THE NECROTIC CENTRE OF TUMOURS, AND USES THEREOF (UNITED STATES)	7,605,234	07/13/2004
	SPECIFIC BINDING PROTEINS INCLUDING ANTIBODIES WHICH BIND TO THE NECROTIC CENTRE OF TUMOURS, AND USES THEREOF (EPO - Germany, France, Great Britain, Netherlands)	1621622	05/17/2005

 

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	 

    	 

    
 

Peregrine has the right to develop, market and sell other technologies
(excluding those covering the bavituximab and Cotara families of antibodies) through the following list of patents and license
agreements: 

 

	Licensed Product	Licensor Name	Licensor Address	Lic. Exp. Date	IP Exp. Date	Exclusive?	Restrictions
	Coaguligand	Univ. of Texas System	201 W. 7th Street, Austin, TX 78701	Upon exp of Patents	2016	Yes	Transferable to successor
	Coaguligand	SCRIPPS Research Inst.	10550 North Torrey Pines Road, La Jolla CA  92037	Upon exp of Patents	2016	Yes	Transferable to successor
	VTA	Univ. of Texas System	201 W. 7th Street, Austin, TX 78701	Upon exp of Patents	2017	Yes	Transferable to successor
	Tissue Factor	Univ. of Texas System	201 W. 7th Street, Austin, TX 78701	Upon exp of Patents	2018	Yes	Transferable to successor
	Anti-VEGF Conjugates	Univ. of Texas System	201 W. 7th Street, Austin, TX 78701	Upon exp of Patents	2020	Yes	Transferable to successor
	PS-peptide conjugate	
        Univ. of Texas System
	
        201 W. 7th Street, Austin, TX 78701
	Upon exp of Patents	2018	Yes	Transferable to successor
	1N11/PGN635	Affitech AS	
        Gaustadalleen 21, N-0349

        Oslo, Norway
	negotiation of license in process	N/A	Yes	Transferable to successor

 

 

Trademarks

 

Peregrine owns the following trademarks.

 

 

	Description	
        Registration/

        Application

        Number
	
        Registration/

        Application

        Date

	AVID BIOSERVICES, INC. w/ design (Registered)	3,362,424	01/01/2008
	AVID BIOSERVICES (Registered)	3,348,388	12/04/2007
	COTARA (Registered)	2,817,648	02/24/2004

 

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	 

    	 

    
 

 

 

EXHIBIT A

Description of Collateral

 

The Collateral consists of all of Borrower’s
right, title and interest in and to the following personal property:

 

All goods, Accounts
(including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases, license agreements,
franchise agreements, General Intangibles (except as noted below), commercial tort claims, documents, instruments (including any
promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts and other Collateral Accounts, all certificates
of deposit, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and
all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever
located; and

 

All Borrower’s
Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions,
attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or
all of the foregoing.

 

Notwithstanding the
foregoing, the Collateral does not include any Intellectual Property; provided, however, the Collateral shall include all Accounts
and all IP Proceeds. If a judicial authority (including a U.S. Bankruptcy Court) would hold that a security interest in the underlying
Intellectual Property is necessary to have a security interest in such Accounts and such IP Proceeds, then the Collateral shall
automatically, and effective as of the Effective Date, include the Intellectual Property to the extent necessary to permit perfection
of Collateral Agent’s security interest in such Accounts and such IP Proceeds. “IP Proceeds” means, collectively,
all cash, Accounts, license and royalty fees, claims, products, awards, judgments, insurance claims, and other revenues, proceeds
or income, arising out of, derived from or relating to any Intellectual Property of any Borrower, and any claims for damage by
way of any past, present or future infringement of any Intellectual Property of any Borrower (including, without limitation, all
cash, royalty fees, other proceeds, Accounts and General Intangibles that consist of rights of payment to or on behalf of a Borrower
and the proceeds from the sale, licensing or other disposition of all or any part of, or rights in, any Intellectual Property by
or on behalf of a Borrower).

 

Pursuant to the terms
of a certain negative pledge arrangement with Collateral Agent and the Lenders, Borrower has agreed not to encumber any of its
Intellectual Property.

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	 

    	 

    
 

 

EXHIBIT B-1

Form of Disbursement Letter

[see attached]

 

 

 

 

 

 

 

 

 

 

 

 

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	 

    	 

    
 

 

DISBURSEMENT LETTER

August 30, 2012

 

The undersigned, being the duly elected
and acting Chief Financial Officer of PEREGRINE PHARMACEUTICALS, INC., a Delaware corporation, for and on behalf of each Borrower
under the Loan Agreement (as defined below), with offices located at 14282 Franklin Avenue, Tustin, California 92780 (collectively,
“Borrower”), does hereby certify to OXFORD FINANCE LLC (“Oxford” and “Lender”),
as collateral agent (the “Collateral Agent”) in connection with that certain Loan and Security Agreement dated
as of August 30, 2012, by and among Borrower, Collateral Agent and the Lenders from time to time party thereto (the “Loan
Agreement”; with other capitalized terms used below having the meanings ascribed thereto in the Loan Agreement) that:

 

1.The representations
and warranties made by Borrower in Section 5 of the Loan Agreement and in the other Loan Documents are true and correct in
all material respects as of the date hereof.

 

2.No event or condition
has occurred that would constitute an Event of Default under the Loan Agreement or any other Loan Document.

 

3.Borrower is in
compliance with the covenants and requirements contained in Sections 4, 6 and 7 of the Loan Agreement.

 

4.All conditions
referred to in Section 3 of the Loan Agreement to the making of the Loan to be made on or about the date hereof have been
satisfied or waived by Collateral Agent.

 

5.No Material Adverse
Change has occurred.

 

6.The undersigned
is a Responsible Officer.

 

[Balance
of Page Intentionally Left Blank]

 

 

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	 

    	 

    
 

 

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

 

	Disbursement from Oxford:	 
	Loan Amount	$7,500,000.00
	Plus:	 
	--Deposit Received	$150,000.00
	 	 
	Less:	 
	--Facility Fee	($75,000.00)
	--Interim Interest	($1,656.25)
	--Lender’s Legal Fees	($67,032.73)*
	 	 
	Net Proceeds due from Oxford:	$7,506,311.02
	 	 
	Disbursement from MidCap:	 
	Loan Amount	$5,000,000.00
	 	 
	Less:	 
	--Facility Fee	($50,000.00)
	--Interim Interest	($1,104.17)
	--MidCap Expenses	($8,639.44)
	 	 
	Net Proceeds due from MidCap:	$4,940,256.39
	 	 
	Disbursement from SVB:	 
	Loan Amount	$2,500,000.00
	 	 
	Less:	 
	--Facility Fee	($25,000.00)
	--Interim Interest	($552.08)
	 	 
	Net Proceeds due from SVB:	$2,474,447.92
	 	 
	TOTAL TERM A LOAN NET PROCEEDS FROM LENDERS	$14,921,015.33

 

8.The Term A
Loan shall amortize in accordance with the Amortization Table attached hereto.

 

9.The aggregate
net proceeds of the Term Loans shall be transferred to the Designated Deposit Account as follows:

 

	Account Name:	 
	Bank Name:	 
	Bank Address:	

 
	Account Number:	 
	ABA Number:	 

 

[Balance
of Page Intentionally Left Blank]

 

 

__________

* Legal fees
and costs are through the Effective Date. Post-closing legal fees and costs, payable after the Effective Date, to be invoiced
and paid post-closing. 

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	 

    	 

    
 

 

Dated as of the date first set forth above.

 

	BORROWER:	 
	 	 
	PEREGRINE PHARMACEUTICALS, INC., for 

itself and on behalf of all Borrowers	 
	 	 
	 	 
	By                                    	 
	Name:                              	 
	Title:                              	 
	 	 
	 	 
	COLLATERAL AGENT AND LENDER:	 
	 	 
	OXFORD FINANCE LLC	 
	 	 
	 	 
	By:                              	 
	Name:                              	 
	Title:                              	 
	 	 
	 	 
	LENDER:	 
	 	 
	SILICON VALLEY BANK	 
	 	 
	By:                              	 
	Name:                              	 
	Title:                              	 
	 	 
	 	 
	LENDER:	 
	 	 
	MIDCAP FINANCIAL SBIC, LP	 
	 	 
	
        By: Midcap Financial SBIC GP, LLC
	 
	 	 
	By:                              	 
	Name:                              	 
	Title:                              	 

 

 

[Signature Pae to Disbursement Letter]

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	 

    	 

    
 

 

AMORTIZATION
TABLE

(Term A Loan)

 

[see attached]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	 

    	 

    
 

EXHIBIT B-2

Loan Payment/Advance Request Form

 

Deadline for same day processing
is Noon Pacific Time*

 

 

 

 

 

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	 

    	 

    

Loan
Payment/Advance Request Form

 

Deadline
is Noon E.S.T.

 

Date: __________________,
201__

 

 

 

 

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	 

    	 

    
 

 

EXHIBIT C

Compliance Certificate

 

	TO:	OXFORD FINANCE LLC, as Collateral Agent and Lender
 MIDCAP FINANCIAL SBIC, LP, as Lender
 SILICON VALLEY BANK, as Lender
	FROM:	PEREGRINE PHARMACEUTICALS, INC., for itself and on behalf of all Borrowers

 

The undersigned authorized officer (“Officer”)
of PEREGRINE PHARMACEUTICALS, INC. (for itself and on behalf of all Borrowers under and as defined in the Loan Agreement (as defined
below), collectively, “Borrower”), hereby certifies that in accordance with the terms and conditions of the
Loan and Security Agreement by and among Borrower, Collateral Agent, and the Lenders from time to time party thereto (the “Loan
Agreement;” capitalized terms used but not otherwise defined herein shall have the meanings given them in the Loan Agreement),

 

(a)Borrower is
in complete compliance for the period ending _______________ with all required covenants except as noted below;

 

(b)There are no
Events of Default, except as noted below;

 

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

 

(d)Borrower, and
each of Borrower’s Subsidiaries, has timely filed all required tax returns and reports, Borrower, and each of Borrower’s
Subsidiaries, has timely paid all foreign, federal, state, and local taxes, assessments, deposits and contributions owed by Borrower,
or Subsidiary, except as otherwise permitted pursuant to the terms of Section 5.8 of the Loan Agreement;

 

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

 

Attached are the required documents, if
any, supporting our certification(s). The Officer, on behalf of Borrower, further certifies that the attached financial statements
are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and are consistently applied from one period to
the next except as explained in an accompanying letter or footnotes and except, in the case of unaudited financial statements,
for the absence of footnotes and subject to year-end audit adjustments as to the interim financial statements.

 

 

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	 

    	 

    
 

 

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

 

	 	Reporting Covenant	Requirement	Actual	Complies
	 	 	 	 	 	 	 
	1)	Financial statements	Monthly within 30 days	 	Yes	No	N/A
	2)	Annual (CPA Audited) statements	Within 120 days after FYE	 	Yes	No	N/A
	3)	Annual Financial Projections/Budget (prepared on a monthly basis)	Annually (within 30 days of FYE), and when revised	 	Yes	No	N/A
	4)	A/R & A/P agings	If applicable	 	Yes	No	N/A
	5)	8-K, 10-K and 10-Q Filings	within 5 days of filing	 	Yes	No	N/A
	6)	Compliance Certificate	Monthly within 30 days	 	Yes	No	N/A
	7)	IP Report	When required	 	Yes	No	N/A
	8)	Total amount of Borrower’s cash and cash equivalents at the last day of the measurement period	 	$________	Yes	No	N/A
	9)	Total amount of Borrower’s Subsidiaries’ cash and cash equivalents at the last day of the measurement period	 	$________	Yes	No	N/A

Deposit and Securities Accounts

(Please list all accounts; attach separate sheet if additional
space needed)

 

	 	Institution Name	Account Number	New Account?	Account Control Agreement in place?
	1)	 	 	Yes	No	Yes	No
	2)	 	 	Yes	No	Yes	No
	3)	 	 	Yes	No	Yes	No
	4)	 	 	Yes	No	Yes	No

 

Financial Covenants

 

	 	Covenant	Requirement	Actual	Compliance
	 	 	 	 	 	 
	1)	Minimum Cash from and after Funding Date of Term B Loan	At least $10,000,000.00	$________	Yes	No
	 	 	 	 	 	 

 

 

Other Matters

 

	1)	Have there been any changes in management since the last Compliance Certificate?	Yes	No
	 	 	 	 
	2)	Have there been any transfers/sales/disposals/retirement of Collateral or IP prohibited by the Loan Agreement?	Yes	No
	 	 	 	 
	3)	Have there been any new or pending claims or causes of action against Borrower that involve more than Two Hundred Fifty Thousand Dollars ($250,000.00)?	Yes	No
	 	 	 	 
	4)	Have there been any amendments of or other changes to the capitalization table of Borrower and to the Operating Documents of Borrower or any of its Subsidiaries? If yes, provide copies of any such amendments or changes with this Compliance Certificate.	Yes	No

 

 

[**] = Portions of this exhibit have been omitted pursuant to a request of confidentiality filed separately with the Securities
and Exchange Commission.

    	 

    	 

    

Exceptions

 

Please explain any exceptions with respect to the certification
above: (If no exceptions exist, state “No exceptions.” Attach separate sheet if additional space needed.)

 

 

PEREGRINE PHARMACEUTICALS, INC.,

for itself and on behalf of all Borrowers

 

By:                                

Name:                           

Title:                            

 

Date:                          

 

	LENDER USE ONLY
	 	 
	Received by:                     	Date:                  
	 	 
	Verified by:                      	Date:                  
	 	 
	Compliance Status:           Yes                       No         

 

 

 

[**] = Portions of this exhibit have been omitted pursuant to a request of confidentiality filed separately with the Securities
and Exchange Commission.

 

    	 

    	 

    
 

 

EXHIBIT D

Form of Secured Promissory Note

 

[see attached]

 

 

 

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	 

    	 

    
 

 

SECURED PROMISSORY NOTE

(Term A Loan)

 

 

	$____________________	Dated:  August __, 2012

 

 

FOR VALUE RECEIVED,
the undersigned, PEREGRINE PHARMACEUTICALS, INC., a Delaware corporation and AVID BIOSERVICES, INC., Delaware corporation, each
with offices located at 14282 Franklin Avenue, Tustin, California 92780 (individually and collectively, jointly and severally,
“Borrower”) HEREBY PROMISES TO PAY to the order of [OXFORD FINANCE LLC][MIDCAP FINANCIAL SBIC, LP][SILICON VALLEY
BANK] (“Lender”) the principal amount of [___________] MILLION DOLLARS ($______________) or such lesser amount
as shall equal the outstanding principal balance of the Term A Loan made to Borrower by Lender, plus interest on the aggregate
unpaid principal amount of such Term A Loan, at the rates and in accordance with the terms of the Loan and Security Agreement dated
August __, 2012 by and among Borrower, Lender, Oxford Finance LLC, as Collateral Agent, and the other Lenders from time to time
party thereto (as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”).
If not sooner paid, the entire principal amount and all accrued and unpaid interest hereunder shall be due and payable on the Maturity
Date as set forth in the Loan Agreement. Any capitalized term not otherwise defined herein shall have the meaning attributed to
such term in the Loan Agreement.

 

Principal, interest and all other amounts
due with respect to the Term A Loan, are payable in lawful money of the United States of America to Lender as set forth in the
Loan Agreement and this Secured Promissory Note (this “Note”). The principal amount of this Note and the interest
rate applicable thereto, and all payments made with respect thereto, shall be recorded by Lender and, prior to any transfer hereof,
endorsed on the grid attached hereto which is part of this Note.

 

The Loan Agreement, among other things,
(a) provides for the making of a secured Term A Loan by Lender to Borrower, and (b) contains provisions for acceleration
of the maturity hereof upon the happening of certain stated events.

 

This Note may not be prepaid except as
set forth in Section 2.2 (c) and Section 2.2(d) of the Loan Agreement.

 

This Note and the obligation of Borrower
to repay the unpaid principal amount of the Term A Loan, interest on the Term A Loan and all other amounts due Lender under the
Loan Agreement is secured under the Loan Agreement.

 

Presentment for payment, demand, notice
of protest and all other demands and notices of any kind in connection with the execution, delivery, performance and enforcement
of this Note are hereby waived.

 

Borrower shall pay all reasonable fees
and expenses, including, without limitation, reasonable attorneys’ fees and costs, incurred by Lender in the enforcement
or attempt to enforce any of Borrower’s obligations hereunder not performed when due.

 

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

 

The ownership of an interest in this Note
shall be registered on a record of ownership maintained by Lender or its agent. Notwithstanding anything else in this Note to the
contrary, the right to the principal of, and stated interest on, this Note may be transferred only if the transfer is registered
on such record of ownership and the transferee is identified as the owner of an interest in the obligation. Borrower shall be entitled
to treat the registered holder of this Note (as recorded on such record of ownership) as the owner in fact thereof for all purposes
and shall not be bound to recognize any equitable or other claim to or interest in this Note on the part of any other person or
entity.

 

[Balance
of Page Intentionally Left Blank]

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.

 

    	 

    	 

    
 

 

 

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

 

	 	 	BORROWER:
	 	 	 
	 	 	PEREGRINE PHARMACEUTICALS, INC.
	 	 	 
	 	 	 
	 	 	By                              
	 	 	Name:                          
	 	 	Title:                           
	 	 	 
	 	 	 
	 	 	AVID BIOSERVICES, INC.
	 	 	 
	 	 	 
	 	 	By                              
	 	 	Name:                       
	 	 	Title:                         
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

 

[Oxford Finance LLC][Silicon Valley
Bank][MidCap Financial SBIC, LP]

Term A Note

 

[**] = Portions of this exhibit have been omitted pursuant
to a request of confidentiality filed separately with the Securities and Exchange Commission.Exhibit 10.29

 

 

THIS WARRANT AND THE SHARES ISSUABLE
HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES
LAWS OF ANY STATE AND, EXCEPT AS SET FORTH IN SECTIONS 5.3 AND 5.4 BELOW, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND LAWS OR, IN THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE
COMPANY, SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM SUCH REGISTRATION.

WARRANT TO PURCHASE STOCK

	Company: 	PEREGRINE PHARMACEUTICALS, INC., a Delaware corporation
	Number of Shares: 	136,640
	Type/Series of Stock:	Common Stock
	Warrant Price: 	$2.47 per share
	Issue Date: 	August 30, 2012
	Expiration Date: 	August 30, 2018 See also Section 5.1(b).
	Credit Facility:	
        This Warrant to Purchase Stock (“Warrant”) is
        issued in connection with that certain Loan and Security Agreement of even date herewith among Oxford Finance LLC, as Lender and
        Collateral Agent, the Lenders from time to time party thereto, including MidCap Financial SBIC, LP and Silicon Valley Bank and
        the Company (as modified, amended and/or restated from time to time, the “Loan Agreement”).

         

 

THIS WARRANT CERTIFIES
THAT, for good and valuable consideration, OXFORD FINANCE LLC (“Oxford” and, together with any successor or
permitted assignee or transferee of this Warrant or of any shares issued upon exercise hereof, “Holder”) is
entitled to purchase the number of fully paid and non-assessable shares (the “Shares”) of the above-stated Type/Series
of Stock (the “Class”) of the above-named company (the “Company”) at the above-stated Warrant
Price, all as set forth above and as adjusted pursuant to Section 2 of this Warrant, subject to the provisions and upon the terms
and conditions set forth in this Warrant.

SECTION
1.            EXERCISE.

1.1            
Method of Exercise. Holder may at any time and from time to time exercise this Warrant, in whole or in part, by delivering
to the Company the original of this Warrant together with a duly executed Notice of Exercise in substantially the form attached
hereto as Appendix 1 and, unless Holder is exercising this Warrant pursuant to a cashless exercise set forth in Section 1.2, a
check, wire transfer of same-day funds (to an account designated by the Company), or other form of payment acceptable to the Company
for the aggregate Warrant Price for the Shares being purchased.

1.2            
Cashless Exercise. On any exercise of this Warrant, in lieu of payment of the aggregate Warrant Price in the manner as specified
in Section 1.1 above, but otherwise in accordance with the requirements of Section 1.1, Holder may elect to receive Shares equal
to the value of this Warrant, or portion hereof as to which this Warrant is being exercised. Thereupon, the Company shall issue
to the Holder such number of fully paid and non-assessable Shares as are computed using the following formula:

	X=      	Y(A-B)/A

where:

	X =     	the number of Shares to be issued to the Holder;

	Y =     	the number of Shares with respect to which this Warrant is being exercised (inclusive
of the Shares surrendered to the Company in payment of the aggregate Warrant Price);

    	1

    	 

    

	A =     	the Fair Market Value (as determined pursuant to Section 1.3 below) of one Share; and

 

	B=     	the Warrant Price.

 

1.3             Fair
Market Value. If the Company’s common stock is then traded or quoted on a nationally recognized securities
exchange, inter-dealer quotation system or over-the-counter market (a “Trading Market”), the fair market
value of a Share shall be the closing price or last sale price of a share of common stock reported for the Business Day
immediately before the date on which Holder delivers this Warrant together with its Notice of Exercise to the Company. If the
Company’s common stock is not traded in a Trading Market, the Board of Directors of the Company shall determine the
fair market value of a Share in its reasonable good faith judgment.

1.4            
Delivery of Certificate and New Warrant. Within a reasonable time after Holder exercises this Warrant in the manner set
forth in Section 1.1 or 1.2 above, the Company shall deliver to Holder a certificate representing the Shares issued to Holder upon
such exercise and, if this Warrant has not been fully exercised and has not expired, a new warrant of like tenor representing the
Shares not so acquired.

1.5            
Replacement of Warrant. On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory
in form, substance and amount to the Company or, in the case of mutilation, on surrender of this Warrant to the Company for cancellation,
the Company shall, within a reasonable time, execute and deliver to Holder, in lieu of this Warrant, a new warrant of like tenor
and amount.

1.6            
Treatment of Warrant Upon Acquisition of Company.

(a)             
Acquisition. For the purpose of this Warrant, “Acquisition” means any transaction or series of related
transactions involving: (i) the sale, lease, exclusive license, or other disposition of all or substantially all of the assets
of the Company (ii) any merger or consolidation of the Company into or with another person or entity (other than a merger or consolidation
effected exclusively to change the Company’s domicile), or any other corporate reorganization, in which the stockholders
of the Company in their capacity as such immediately prior to such merger, consolidation or reorganization, own less than a majority
of the Company’s (or the surviving or successor entity’s) outstanding voting power immediately after such merger, consolidation
or reorganization (or, if such Company stockholders beneficially own a majority of the outstanding voting power of the surviving
or successor entity as of immediately after such merger, consolidation or reorganization, such surviving or successor entity is
not the Company); or (iii) any sale or other transfer by the stockholders of the Company of shares representing at least a majority
of the Company’s then-total outstanding combined voting power.

(b)            
Treatment of Warrant at Acquisition. In the event of an Acquisition in which the consideration to be received by the Company’s
stockholders consists solely of cash, solely of Marketable Securities or a combination of cash and Marketable Securities (a “Cash/Public
Acquisition”), either (i) Holder shall exercise this Warrant pursuant to Section 1.1 and/or 1.2 and such exercise will
be deemed effective immediately prior to and contingent upon the consummation of such Acquisition or (ii) if Holder elects not
to exercise the Warrant, this Warrant will expire immediately prior to the consummation of such Acquisition.

(c)             
The Company shall provide Holder with written notice of its request relating to the Cash/Public Acquisition (together with such
reasonable information as Holder may reasonably require regarding the treatment of this Warrant in connection with such contemplated
Cash/Public Acquisition giving rise to such notice), which is to be delivered to Holder not less than seven (7) Business Days prior
to the closing of the proposed Cash/Public Acquisition. In the event the Company does not provide such notice, then if, immediately
prior to the Cash/Public Acquisition, the fair market value of one Share (or other security issuable upon the exercise hereof)
as determined in accordance with Section 1.3 above would be greater than the Warrant Price in effect on such date, then this Warrant
shall automatically be deemed on and as of such date to be exercised pursuant to Section 1.2 above as to all Shares (or such other
securities) for which it shall not previously have been exercised, and the Company shall promptly notify the Holder of the number
of Shares (or such other securities) issued upon such exercise to the Holder and Holder shall be deemed to have restated each of
the representations and warranties in Section 4 of the Warrant as the date thereof.

    	2

    	 

    

 

(d)            
Upon the closing of any Acquisition other than a Cash/Public Acquisition defined above, the acquiring, surviving or successor entity
shall assume the obligations of this Warrant, and this Warrant shall thereafter be exercisable for the same securities and/or other
property as would have been paid for the Shares issuable upon exercise of the unexercised portion of this Warrant as if such Shares
were outstanding on and as of the closing of such Acquisition, subject to further adjustment from time to time in accordance with
the provisions of this Warrant.

(e)             
As used in this Warrant, “Marketable Securities” means securities meeting all of the following requirements:
(i) the issuer thereof is then subject to the reporting requirements of Section 13 or Section 15(d) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), and is then current in its filing of all required reports and
other information under the Act and the Exchange Act; (ii) the class and series of shares or other security of the issuer that
would be received by Holder in connection with the Acquisition were Holder to exercise this Warrant on or prior to the closing
thereof is then traded in Trading Market, and (iii) Holder would be able to publicly re-sell, within six (6) months following the
closing of such Acquisition, all of the issuer’s shares and/or other securities that would be received by Holder in such
Acquisition were Holder to exercise this Warrant in full on or prior to the closing of such Acquisition.

SECTION
2.            ADJUSTMENTS TO THE SHARES AND WARRANT PRICE.

2.1            
Stock Dividends, Splits, Etc. If the Company declares or pays a dividend or distribution on the outstanding shares of the
Class payable in common stock or other securities or property (other than cash), then upon exercise of this Warrant, for each Share
acquired, Holder shall receive, without additional cost to Holder, the total number and kind of securities and property which Holder
would have received had Holder owned the Shares of record as of the date the dividend or distribution occurred. If the Company
subdivides the outstanding shares of the Class by reclassification or otherwise into a greater number of shares, the number of
Shares purchasable hereunder shall be proportionately increased and the Warrant Price shall be proportionately decreased. If the
outstanding shares of the Class are combined or consolidated, by reclassification or otherwise, into a lesser number of shares,
the Warrant Price shall be proportionately increased and the number of Shares shall be proportionately decreased.

2.2            
Reclassification, Exchange, Combinations or Substitution. Upon any event whereby all of the outstanding shares of the Class
are reclassified, exchanged, combined, substituted, or replaced for, into, with or by Company securities of a different class and/or
series, then from and after the consummation of such event, this Warrant will be exercisable for the number, class and series of
Company securities that Holder would have received had the Shares been outstanding on and as of the consummation of such event,
and subject to further adjustment thereafter from time to time in accordance with the provisions of this Warrant. The provisions
of this Section 2.2 shall similarly apply to successive reclassifications, exchanges, combinations substitutions, replacements
or other similar events.

2.3            
No Fractional Share. No fractional Share shall be issuable upon exercise of this Warrant and the number of Shares to be
issued shall be rounded down to the nearest whole Share. If a fractional Share interest arises upon any exercise of the Warrant,
the Company shall eliminate such fractional Share interest by paying Holder in cash the amount computed by multiplying the fractional
interest by (i) the fair market value (as determined in accordance with Section 1.3 above) of a full Share, less (ii) the then-effective
Warrant Price.

2.4            
Notice/Certificate as to Adjustments. Upon each adjustment of the Warrant Price, Class and/or number of Shares, the Company,
at the Company’s expense, shall notify Holder in writing within a reasonable time setting forth the adjustments to the Warrant
Price, Class and/or number of Shares and facts upon which such adjustment is based. The Company shall, upon written request from
Holder, furnish Holder with a certificate of its Chief Financial Officer, including computations of such adjustment and the Warrant
Price, Class and number of Shares in effect upon the date of such adjustment.

SECTION
3.            REPRESENTATIONS AND COVENANTS OF THE COMPANY.

3.1            
Representations and Warranties. The Company represents and warrants to, and agrees with, the Holder as follows: All Shares
which may be issued upon the exercise of this Warrant, shall, upon issuance, be duly authorized, validly issued, fully paid and
non-assessable, and free of any liens and encumbrances except for restrictions on transfer provided for herein or under applicable
federal and state securities laws. The Company covenants that it shall at all times cause to be reserved and kept available out
of its authorized and unissued capital stock such number of shares of the Class, common stock and other securities as will be sufficient
to permit the exercise in full of this Warrant.

    	3

    	 

    

 

3.2            
Notice of Certain Events. If the Company proposes at any time to:

(a)             
declare any dividend or distribution upon the outstanding shares of the Class or common stock, whether in cash, property, stock,
or other securities and whether or not a regular cash dividend;

(b)            
offer for subscription or sale pro rata to the holders of the outstanding shares of the Class any additional shares of any class
or series of the Company’s stock (other than pursuant to contractual pre-emptive rights);

(c)             
effect any reclassification, exchange, combination, substitution, reorganization or recapitalization of the outstanding shares
of the Class; or

(d)            
effect an Acquisition or to liquidate, dissolve or wind up.

then, in connection with each such event,
the Company shall give Holder:

(1)            
at least seven (7) Business Days prior written notice of the date on which a record will be taken for such dividend, distribution,
or subscription rights (and specifying the date on which the holders of outstanding shares of the Class will be entitled thereto)
or for determining rights to vote, if any, in respect of the matters referred to in (a) and (b) above; and

(2)            
in the case of the matters referred to in (c) and (d) above at least seven (7) Business Days prior written notice of the date when
the same will take place (and specifying the date on which the holders of outstanding shares of the Class will be entitled to exchange
their shares for the securities or other property deliverable upon the occurrence of such event).

Reference is made to Section 1.6(c)
whereby this Warrant will be deemed to be exercised pursuant to Section 1.2 hereof if the Company does not give written notice
to Holder of a Cash/Public Acquisition as required by the terms hereof. Company will also provide information requested by Holder
that is reasonably necessary to enable Holder to comply with Holder’s accounting or reporting requirements.

SECTION
4.            REPRESENTATIONS, WARRANTIES OF THE HOLDER.

The Holder represents
and warrants to the Company as follows:

4.1            
Purchase for Own Account. This Warrant and the securities to be acquired upon exercise of this Warrant by Holder are being
acquired for investment for Holder’s account, not as a nominee or agent, and not with a view to the public resale or distribution
within the meaning of the Act. Holder also represents that it has not been formed for the specific purpose of acquiring this Warrant
or the Shares.

4.2            
Disclosure of Information. Holder is aware of the Company’s business affairs and financial condition and has received
or has had full access to all the information it considers necessary or appropriate to make an informed investment decision with
respect to the acquisition of this Warrant and its underlying securities. Holder further has had an opportunity to ask questions
and receive answers from the Company regarding the terms and conditions of the offering of this Warrant and its underlying securities
and to obtain additional information (to the extent the Company possessed such information or could acquire it without unreasonable
effort or expense) necessary to verify any information furnished to Holder or to which Holder has access.

    	4

    	 

    

 

4.3            
Investment Experience. Holder understands that the purchase of this Warrant and its underlying securities involves substantial
risk. Holder has experience as an investor in securities of companies in the development stage and acknowledges that Holder can
bear the economic risk of such Holder’s investment in this Warrant and its underlying securities and has such knowledge and
experience in financial or business matters that Holder is capable of evaluating the merits and risks of its investment in this
Warrant and its underlying securities and/or has a preexisting personal or business relationship with the Company and certain of
its officers, directors or controlling persons of a nature and duration that enables Holder to be aware of the character, business
acumen and financial circumstances of such persons.

4.4            
Accredited Investor Status. Holder is an “accredited investor” within the meaning of Regulation D promulgated
under the Act.

4.5            
The Act. Holder understands that this Warrant and the Shares issuable upon exercise hereof have not been registered under
the Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature
of the Holder’s investment intent as expressed herein. Holder understands that this Warrant and the Shares issued upon any
exercise hereof must be held indefinitely unless subsequently registered under the Act and qualified under applicable state securities
laws, or unless exemption from such registration and qualification are otherwise available. Holder is aware of the provisions of
Rule 144 promulgated under the Act.

4.6            
No Voting Rights. Holder, as a Holder of this Warrant, will not have any voting rights until the exercise of this Warrant.

SECTION
5.            MISCELLANEOUS.

5.1            
Term; Automatic Cashless Exercise Upon Expiration.

(a)             
Term. Subject to the provisions of Section 1.6 above, this Warrant is exercisable in whole or in part at any time and from
time to time on or before 6:00 PM, Eastern time, on the Expiration Date and shall be void thereafter.

(b)            
Automatic Cashless Exercise upon Expiration. In the event that, upon the Expiration Date, the fair market value of one Share
(or other security issuable upon the exercise hereof) as determined in accordance with Section 1.3 above is greater than the Warrant
Price in effect on such date, then this Warrant shall automatically be deemed on and as of such date to be exercised pursuant to
Section 1.2 above as to all Shares (or such other securities) for which it shall not previously have been exercised, and the Company
shall, within a reasonable time, deliver a certificate representing the Shares (or such other securities) issued upon such exercise
to Holder.

5.2            
Legends. Each certificate evidencing Shares shall be imprinted with a legend in substantially the following form:

THE SHARES EVIDENCED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF
ANY STATE AND, EXCEPT AS SET FORTH IN THAT CERTAIN WARRANT TO PURCHASE STOCK ISSUED BY THE ISSUER TO OXFORD FINANCE LLC DATED AUGUST
30, 2012, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND LAWS OR, IN
THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER, SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT
FROM SUCH REGISTRATION.

    	5

    	 

    

 

5.3            
Compliance with Securities Laws on Transfer. This Warrant and the Shares issued upon exercise of this Warrant may not be
transferred or assigned in whole or in part except in compliance with applicable federal and state securities laws by the transferor
and the transferee (including, without limitation, the delivery of investment representation letters and legal opinions reasonably
satisfactory to the Company, as reasonably requested by the Company). The Company shall not require Holder to provide an opinion
of counsel if the transfer is to an affiliate of Holder, provided that any such transferee is an “accredited investor”
as defined in Regulation D promulgated under the Act. Additionally, the Company shall also not require an opinion of counsel if
there is no material question as to the availability of Rule 144 promulgated under the Act.

5.4            
Transfer Procedure. After receipt by Holder of the executed Warrant, Oxford may transfer all or part of this Warrant to
one or more of Oxford’s affiliates (each, an “Oxford Affiliate”), by execution of an Assignment substantially
in the form of Appendix 2. Subject to the provisions of Article 5.3 and upon providing the Company with written notice, Oxford,
any such Oxford Affiliate and any subsequent Holder, may transfer all or part of this Warrant or the Shares issuable upon exercise
of this Warrant to any transferee, provided, however, in connection with any such transfer, the Oxford Affiliate(s) or any subsequent
Holder will give the Company notice of the portion of the Warrant being transferred with the name, address and taxpayer identification
number of the transferee and Holder will surrender this Warrant to the Company for reissuance to the transferee(s) (and Holder
if applicable).

5.5            
Notices. All notices and other communications hereunder from the Company to the Holder, or vice versa, shall be deemed
delivered and effective (i) when given personally, (ii) on the third (3rd) Business Day after being mailed by first-class registered
or certified mail, postage prepaid, (iii) upon actual receipt if given by facsimile or electronic mail and such receipt is confirmed
in writing by the recipient, or (iv) on the first Business Day following delivery to a reliable overnight courier service, courier
fee prepaid, in any case at such address as may have been furnished to the Company or Holder, as the case may be, in writing by
the Company or such Holder from time to time in accordance with the provisions of this Section 5.5. All notices to Holder shall
be addressed as follows until the Company receives notice of a change of address in connection with a transfer or otherwise:

Oxford
Finance LLC

133 N. Fairfax Street

Alexandria, VA 22314

Attn: Legal Department

Telephone: (703) 519-4900

Facsimile: (703) 519-5225

Email: LegalDepartment@oxfordfinance.com

Notice to the Company
shall be addressed as follows until Holder receives notice of a change in address:

PEREGRINE PHARMACEUTICALS, INC.

14282 Franklin Avenue

Tustin, California 92780

Attn: Mark R. Ziebell, Vice President, General Counsel

Telephone: (714) 508-6080

Facsimile: (714) 838-9433

Email: mziebell@peregrineinc.com

5.6            
Waiver. This Warrant and any term hereof may be changed, waived, discharged or terminated (either generally or in a particular
instance and either retroactively or prospectively) only by an instrument in writing signed by the party against which enforcement
of such change, waiver, discharge or termination is sought.

5.7            
Attorneys’ Fees. In the event of any dispute between the parties concerning the terms and provisions of this Warrant,
the party prevailing in such dispute shall be entitled to collect from the other party all costs incurred in such dispute, including
reasonable attorneys’ fees.

    	6

    	 

    

 

5.8            
Counterparts; Facsimile/Electronic Signatures. This Warrant may be executed in counterparts, all of which together shall
constitute one and the same agreement. Any signature page delivered electronically or by facsimile shall be binding to the same
extent as an original signature page with regards to any agreement subject to the terms hereof or any amendment thereto.

5.9            
Governing Law. This Warrant shall be governed by and construed in accordance with the laws of the State of California, without
giving effect to its principles regarding conflicts of law.

5.10         
Headings. The headings in this Warrant are for purposes of reference only and shall not limit or otherwise affect the meaning
of any provision of this Warrant.

5.11         
Business Days. “Business Day” is any day that is not a Saturday, Sunday or a day on which Silicon Valley
Bank is closed.

 

[Remainder of page left blank intentionally]

[Signature page follows]

    	7

    	 

    

 

IN WITNESS WHEREOF,
the parties have caused this Warrant to Purchase Stock to be executed by their duly authorized representatives effective as of
the Issue Date written above.

	“COMPANY”	 
	 	 	 
	PEREGRINE PHARMACEUTICALS, INC.	 
	 	 	 
	 	 	 
	By:	/s/ Paul Lytle	 
	 	 	 
	Name:	 Paul Lytle	 
	
        

         
	(Print)	 
	 	 	 
	Title: 	Chief Financial Officer	 
	 	 	 
	 	 	 
	“HOLDER”	 
	 	 	 
	OXFORD FINANCE LLC	 
	 	 	 
		 	 
	By:	/s/ Mark Davis	 
	 		 
	Name:	Mark Davis	 
	
        

         
	(Print)	 
	 	 	 
	Title:	Vice President – Finance, Secretary & Treasurer	 

 

    	[Signature
                                                                                                                                                                                               Page
                                                                                                                                                                                               to
                                                                                                                                                                                               Warrant
                                                                                                                                                                                               to
                                                                                                                                                                                               Purchase
                                                                                                                                                                                               Stock]

    	 

    

 

APPENDIX 1

NOTICE OF EXERCISE

1.               
The undersigned Holder hereby exercises its right purchase ___________ shares of the Common Stock of PEREGRINE PHARMACEUTICALS,
INC. (the “Company”) in accordance with the attached Warrant To Purchase Stock, and tenders payment of the aggregate
Warrant Price for such shares as follows:

[ ]       check
in the amount of $________ payable to order of the Company enclosed herewith

[ ]       Wire
transfer of immediately available funds to the Company’s account

[ ]       Cashless
Exercise pursuant to Section 1.2 of the Warrant

[ ]       Other
[Describe] __________________________________________

2.        Please issue a certificate or certificates representing the Shares in the name specified below:

                                          

Holder’s
Name

 

                                          

                                          

(Address)

 

3.               
By its execution below and for the benefit of the Company, Holder hereby restates each of the representations and warranties in
Section 4 of the Warrant to Purchase Stock as of the date hereof.

	 	 	HOLDER:
	 	 	 
	 	 	                                                 
	 	 	 
	 	 	By:                                           
	 	 	 
	 	 	Name:                                       
	 	 	 
	 	 	Title:                                        
	 	 	 
	 	 	Date:                                        

 

    	Appendix 1

    	 

    

 

APPENDIX 2

ASSIGNMENT

For value received,
Oxford Finance LLC hereby sells, assigns and transfers unto

	Name:      		 
	 		 
	Address:      		 
	 	 	 
	Tax ID:       		 

  

that certain Warrant to Purchase
Stock issued by PEREGRINE PHARMACEUTICALS, INC. (the “Company”), on August 30, 2012 (the “Warrant”)
together with all rights, title and interest therein.

	 	OXFORD FINANCE LLC	 
	 	 	 	 
	 	 	 	 
	 	By:	 	 
	 	 	 	 
	 	Name:	 	 
	 	 	 	 
	 	Title:	 	 
	 	 	 	 
	Date:                                   	 	 	 

 

By its execution below, and for the
benefit of the Company, ____________________________ (“Oxford Transferee”) makes each of the representations and warranties
set forth in Article 4 of the Warrant and agrees to all other provisions of the Warrant as of the date hereof.

	 	OXFORD TRANSFEREE	 
	 	 	 	 
	 	By:	 	 
	 	 	 	 
	 	Name:	 	 
	 	 	 	 
	 	Title:	 	 

 

 

 

 

 

 

 

    	Appendix 2

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