Document:

Exhibit 4.1

 

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:	ARQULE, INC., a Delaware corporation
	Number of Shares:	93,168
	Type/Series of Stock:	Common Stock
	Warrant Price:	$1.61 per share
	Issue Date:	February 16, 2018
	Expiration Date:	February 16, 2028 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 dated as of January 6, 2017, among Oxford Finance LLC,
    as Lender and Collateral Agent, the Lenders from time to time party thereto, 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, “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”) and the Class is common stock,
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 the Company’s 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 any proposed 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 a Trading Market, and (iii) following the closing of such Acquisition, Holder would not be restricted from publicly
re-selling all of the issuer’s shares and/or other securities that would be received by Holder in such Acquisition were
Holder to exercise or convert this Warrant in full on or prior to the closing of such Acquisition, except to the extent that any
such restriction (x) arises solely under federal or state securities laws, rules or regulations, and (y) does not extend beyond
six (6) months from 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.

 

    	3 

     

    

 

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:

 

(a)         All Shares which
may be issued upon the exercise of this Warrant, and all securities, if any, issuable upon conversion of the Shares, 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 and the conversion
of the Shares into common stock or such other securities.

 

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.

 

3.3         Compliance
with Rule 144. If Holder proposes to sell Common Stock issuable upon the exercise of this Warrant in compliance with Rule
144 promulgated under the Act, then, upon Holder’s written request to the Company, the Company shall furnish to the
Holder, within ten (10) days after receipt of such request, a written statement confirming the Company’s compliance with
the filing requirements of the Securities and Exchange Commission as set forth in such Rule, as such Rule may be amended
from time to time.

 

    	4 

     

    

 

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.

 

4.3         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 the Warrant and the Shares issuable upon exercise hereof have not been registered under the Act
or qualified under 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 a registration statement covering the securities under the Act is in effect or unless
an exemption from such registration and qualification are otherwise available and that it may be required to hold such securities
for an indefinite period or until it is eligible to resell such securities under Rule 144 promulgated under the Act. The Holder
also understands that any sale of (A) its rights hereunder to purchase Common Stock or (B) Common Stock issued or issuable hereunder
which might be made by it in reliance upon Rule 144 promulgated under the Act may be made only in accordance with the terms and
conditions of that Rule.

 

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 

     

    

 

5.2         Legends.
Each certificate evidencing Shares (and each certificate evidencing the securities issued upon conversion of any Shares, if any)
shall be imprinted with an appropriate restrictive legend, except that such certificate shall not bear such restrictive legend
if (a) in the opinion of counsel for the Company such legend is not required in order to establish compliance with any provisions
of the Act, (b) such Shares are eligible for resale without restriction under, or continued compliance with any provision of, Rule
144 promulgated under the Act, or (c) such Shares have been resold under an effective registration statement. Any restrictive legends
on the Shares may be removed at the request of the Holder thereof if any of the conditions set forth in clauses (a), (b) or (c)
have been met.

 

5.3         Compliance
with Securities Laws on Transfer. This Warrant and the Shares issued upon exercise of this Warrant (and the securities issuable,
directly or indirectly, upon conversion of the Shares, if any) 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 Oxford 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 (or the Shares issuable directly or indirectly, upon conversion of the Shares, if any) to any other 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:

 

ARQULE, INC.

One Wall Street

Burlington, MA 01803

Attn: Peter S. Lawrence

Telephone:
(781) 994-0409

Facsimile: (781) 287-8143

Email: plawrence@arqule.com

 

    	6 

     

    

 

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

 

ARNOLD & PORTER LLP

601 Massachusetts Ave, NW

Washington, DC 20001

Attn: Richard Baltz

Telephone: (202) 942-5124

Facsimile: (202) 942-5999

Email: richard.baltz@aporter.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.

 

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 banks in California are 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”

 

ARQULE, INC.

 

	By:	/s/ Peter S. Lawrence 	 
	Name:	Peter S. Lawrence	 
	 	(Print)	 
	Title:	President and Chief Operating Officer	 

 

“HOLDER”

 

OXFORD FINANCE LLC

 

	By:	/s/ Colette Featherly	 
	Name:	Colette Featherly	 
	 	(print)	 
	Title: 	Senior Vice President	 

 

[Signature
Page to Warrant to Purchase Stock]

 

     

     

    

 

APPENDIX 1

 

NOTICE OF EXERCISE

 

1.         The
undersigned Holder hereby exercises its right to purchase                           shares of the Common Stock of ARQULE, 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:	[OXFORD TRANSFEREE]	 
	 	 	 
	Address:	 	 
	 	 	 
	Tax ID:	 	 

 

that certain Warrant to Purchase
Stock issued by ARQULE, INC. (the “Company”), on February 16, 2018

 

(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 2Exhibit 10.1

 

SECOND AMENDMENT TO 

LOAN AND SECURITY
AGREEMENT

 

This SECOND AMENDMENT
TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into as of February 16, 2018, by and between
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 of the Loan Agreement (as defined below) or otherwise party thereto from time to time including Oxford in
its capacity as a Lender (each a “Lender” and collectively, the “Lenders”), and ARQULE, INC.,
a Delaware corporation, with offices located at One Wall Street, Burlington, MA 01803 (“Borrower”).

 

Recitals

 

A.       Collateral
Agent, Lenders and Borrower have entered into that certain Loan and Security Agreement dated as of January 6, 2017 (as
amended from time to time, including but without limitation by that certain First Amendment to Loan and Security
Agreement dated as of April 26, 2017, the “Loan Agreement”).

 

B.       Lenders
have extended credit to Borrower for the purposes permitted in the Loan Agreement.

 

C.       Borrower
has requested that Collateral Agent and Lenders revise the Loan Agreement as more fully set forth herein.

 

D.       Collateral
Agent and Lenders have agreed to amend certain provisions of the Loan Agreement, but only to the extent, in accordance with
the terms, subject to the conditions and in reliance upon the representations and warranties set forth below.

 

Agreement

 

Now,
Therefore, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy
of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

 

1.       Definitions. Capitalized
terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement.

 

2.       Amendments
to Loan Agreement.

 

2.1       Section
13.1 (Definitions). The following terms and their respective definitions are added to or amended and restated in Section 13.1
of the Loan Agreement to read as follows:

 

“Amortization
Date” is March 1, 2019; provided, however, upon the Licensing Event, such date shall be September 1, 2019.

 

“Licensing
Event” means Borrower’s delivery to Collateral Agent and Lenders prior to March 1, 2019, of evidence, in form and substance
satisfactory to Collateral Agent and Lenders, of Borrower’s execution of a licensing agreement, on terms and conditions satisfactory
to Collateral Agent and Lenders.

 

“Maturity
Date” is February 1, 2022; provided, however, upon the Licensing Event, such date shall be August 1, 2022.

 

3.       Limitation
of Amendment.

 

3.1       This
Amendment is effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed
to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b)
otherwise prejudice any right or remedy which Collateral Agent or any Lender may now have or may have in the future under or
in connection with any Loan Document.

 

    	1.

     

    

 

3.2       This
Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties,
covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall
remain in full force and effect.

 

4.       Representations
and Warranties. To induce Collateral Agent and Lenders to enter into this Amendment, Borrower hereby represents and
warrants to Collateral Agent and Lenders as follows:

 

4.1       Immediately
after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate
and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to
an earlier date, in which case they are true and correct as of such date), and (b) no Event of Default has occurred and is continuing;

 

4.2       Borrower
has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended
by this Amendment;

 

4.3       The
organizational documents of Borrower delivered to Collateral Agent and Lenders on the Effective Date, or subsequent thereto, remain
true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;

 

4.4       The
execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement,
as amended by this Amendment, have been duly authorized;

 

4.5       The
execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement,
as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any
contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental
or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower;

 

4.6       The
execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement,
as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing,
recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on
Borrower, except as already has been obtained or made; and

 

4.7       This
Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower
in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation,
moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.

 

5.       Counterparts.
This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to
constitute one and the same instrument.

 

6.       Effectiveness.
This Amendment shall be deemed effective upon Collateral Agent’s and each Lender’s receipt, 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: (i) this Amendment duly executed by each party hereto,
(ii) that certain warrant of even date herewith to purchase 93,168 shares of common stock of the Borrower, and (iii) Borrower’s
payment of an amendment fee of Forty Five Thousand Dollars ($45,000.00) and all Lenders’ Expenses incurred through the date of
this Amendment.

 

7.       Licensing
Event. Collateral Agent and Lenders acknowledge and agree that the Licensing Event has occurred.

 

    	2.

     

    

 

IN Witness
Whereof, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first written
above.

 

BORROWER:

 

ARQULE, INC.

 

	By	/s/
    Peter S. Lawrence	 
	Name: 	Peter
    S. Lawrence	 
	Title:	President
    and Chief Operating Officer	 

 

COLLATERAL AGENT AND LENDER:

 

OXFORD FINANCE LLC

 

	By	/s/
    Colette H. Featherly	 
	Name: 	Colette H. Featherly	 
	Title:	Senior
    Vice President	 

 

[Signature
Page to Second Amendment to Loan and Security Agreement]

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