Document:

RK&O Draft—6/22/16

 

PURCHASE AND SALE AGREEMENT FOR DISTRESSED
TRADES

______________

TRANSACTION SPECIFIC TERMS

 

THIS PURCHASE AND SALE AGREEMENT FOR
DISTRESSED TRADES is dated as of the Agreement Date and entered into by and between Seller and Buyer to govern the purchase and
sale of the Loans, the Commitments (if any) and the other Transferred Rights, in accordance with the terms, conditions and agreements
set forth in the LSTA Standard Terms and Conditions for Purchase and Sale Agreement for Distressed Trades published by the LSTA
as of April 24, 2014 (the “Standard Terms”). The Standard Terms are incorporated herein by reference without
any modification whatsoever except as otherwise agreed herein by the Parties and as specifically supplemented and modified by
the terms and elections set forth in the Transaction Summary and Sections A through H below. The Standard Terms and the Transaction
Specific Terms together constitute a single integrated Purchase and Sale Agreement for Distressed Trades governing the Transaction.
With respect to the Transaction, the Parties agree to be bound by the Standard Terms and the Transaction Specific Terms set forth
herein.

	TRANSACTION SUMMARY
	Trade Date:	May 25, 2016
	Agreement Date:	June 24, 2016
	Seller:	SWK Funding, LLC
	
         

        Buyer:
	
         

        Sindex SSI Lending, LLC

	
         

        Credit Agreements:
	
         

        (i) Amended and Restated Credit Agreement dated as of December
        13, 2013, among SynCardia Systems, Inc., as borrower, the guarantors party thereto and SWK Funding, LLC, as Lender and administrative
        agent (as successor to Cantor Fitzgerald Securities) (the “First Lien Credit Agreement”)

         

        (ii) Amended and Restated Second Lien Credit, Note Purchase, Exchange
        and Termination Agreement, dated as of February 13, 2015, among SynCardia Systems, Inc., as borrower, the guarantors party thereto,
        the investors from time to time party thereto and SWK Funding, LLC, as administrative agent (as successor to Cantor Fitzgerald
        Securities) (the “Second Lien Credit Agreement”)

         

	Borrower:	SynCardia Systems, Inc.
	Purchase Amount(s):	
        (i)(A) $12,000,000.00

        (B) $4,000,000.00

        (C) $6,000,000.00

        (ii) $11,500,000.00

	Tranche(s):	
        (i)(A) Term Loan

        (B) Term Loan A

        (C) Add-On Term Loan

        (ii) Amended, Restated and Consolidated Secured Subordinated Convertible
        Promissory Note

	
        		

 

LSTA EFFECTIVE APRIL 24, 2014         Copyright © LSTA 2014. All rights reserved. 

 

    	 	  	 

     

    

	
	CUSIP Number(s), if available:	N/A
	Pre-Settlement Date Accruals Treatment:	o  Settled
    Without Accrued Interest

    x  Trades Flat
	Type of Assignment:	x  Original Assignment, with respect to (i)Term Loan A in the outstanding principal amount of $4,000,000.00, (ii) Add-On Term Loan in the outstanding principal amount of $2,500,000.00 and (iii) Amended, Restated and Consolidated Secured Subordinated Convertible Promissory Note in the outstanding principal amount of $6,900,000.00

x  Secondary Assignment, with respect to (i)Term Loan in the outstanding principal amount of $12,000,000.00, (ii) Add-On Term Loan in the outstanding principal amount of $3,500,000.00 and (iii) Amended, Restated and Consolidated Secured Subordinated Convertible Promissory Note in the outstanding principal amount of $4,600,000.00
	Borrower in Bankruptcy:	Yes o      No x
	Delivery of Credit Documents:	Yes x      No o
	Netting Arrangements:	Yes o      No x
	Flip Representations:	Yes o      No x
	Step-Up Provisions:	Yes x      No o
	
         

        Transfer Notice:
	
        Shift Date:

        Yes
        o
	
        N/A

          No x

A.              
DEFINITIONS

Capitalized terms used in this Agreement
shall have the respective meanings ascribed thereto in Section 1 of the Standard Terms, as supplemented by Section A of the Transaction
Specific Terms and as otherwise may be provided in other provisions of this Agreement. Terms defined in any Credit Agreement and
not otherwise defined in this Agreement shall have the same meanings in this Agreement as in such Credit Agreement. Except as otherwise
expressly set forth herein, each reference herein to “the Agreement,” “this Agreement,” “herein,”
“hereunder” or “hereof” shall be deemed a reference to this Agreement. If there is any inconsistency between
the Transaction Specific Terms and the Standard Terms, the Transaction Specific Terms shall govern and control.

In this Agreement:

“Agent” means SWK
Funding, LLC (as successor to Cantor Fitzgerald Securities), as Administrative Agent.

“Assignment” means
the Assignment and Assumptions that are in the form specified in the First Lien Credit Agreement for an assignment of the Loans
and Commitments (if any) and any Required Consents to such assignment.

    	 	 2	 

     

    

“Bankruptcy Case” select
one:

x  not applicable.

o  means [the case under
the Bankruptcy Code pending before the Bankruptcy Court in which Borrower is a debtor, In re __________, No. __________].

 

“Bankruptcy Court” select
one:

x  not applicable.

o  means [the United
States Bankruptcy Court for the __________District of __________ (and, if appropriate, the United States District Court for that
District)].

 

“Bar Date” select one:

x  not applicable.

o  none has been set.

o  means [specify applicable
date, if any].

 

“Buyer Purchase Price” select
one:

x  not applicable.

o  means the purchase
price payable by Buyer to Original Buyer pursuant to the Netting Letter (this applies if there are three (3) parties involved in
the netting arrangement).

o  means the purchase
price payable by Buyer to Penultimate Buyer pursuant to the Netting Letter (this applies if there are four (4) or more parties
involved in the netting arrangement).

 

“Commitments” select one:

x  none.

o  means [identify applicable
commitment tranche(s) using Credit Agreement definitions] in the principal amount of $/£/€__________ [in each case specify
the aggregate amount of the Loans, the Unfunded Commitments and the portion, if any, of the Commitments that is irrevocably “frozen”
(i.e., that is not subject to future drawing)].

 

“Covered Prior Seller” select
one:

o  not applicable.

x  means each of Athyrium
Opportunities Fund (A) LP and Athyrium Opportunities Fund (B) LP.

 

“Filing Date” select one:

x  not applicable.

o  means [identify date
on which Borrower filed Bankruptcy Case].

 

“Loans” means (i)
Term Loan under the First Lien Credit Agreement in the outstanding principal amount of $12,000,000.00, (ii) Term Loan A under the
First Lien Credit Agreement in the outstanding principal amount of $4,000,000.00, (iii) Add-On Term Loan under the First Lien Credit
Agreement in the outstanding principal amount of $6,000,000.00 and (iv) an Amended, Restated and Consolidated Secured Subordinated
Convertible Promissory Note under the Second Lien Credit Agreement in the outstanding principal amount of $11,500,000.00 (the “Second
Lien Loans”).

“Netting Letter” select one:

x  not applicable.

o  means that certain
Multilateral Netting Agreement in the form currently published by the LSTA dated on or as of the Agreement Date among Seller, Buyer
[and] [,] Original Buyer [, Penultimate Buyer] and [describe any other parties to the Netting Letter]].

 

“Original Buyer” select one:

x  not applicable.

o  means [specify original
buyer in the netting arrangement].

 

“Penultimate Buyer” select
one:

x  not applicable.

o  none (“none”
is applicable if there are only three (3) parties involved in the netting arrangement).

o  means [_________].

 

    	 	 3	 

     

    

“Required Consents” means
the acceptance and recordation of the Assignment by the Agent.

 

“Seller Purchase Price” select
one:

x  not applicable.

o  means the purchase
price payable by Original Buyer to Seller pursuant to the Netting Letter.

 

“Transfer Fee” means
the $3,500 transfer or other similar fee payable to the Agent in connection with the Assignment.

“Unfunded Commitments”
means none; there are no Unfunded Commitments.

B.              
SECTION 4 (SELLER’S REPRESENTATIONS AND WARRANTIES)

The following specified terms shall apply
to the sections referenced in this Section B:

	 	Flat Representation	Flip Representation	Step-Up Representation
	 	If “No” is specified opposite both “Flip Representations” and “Step-Up Provisions” in the Transaction Summary, the following subsections of Section 4 shall apply:  	If “Yes” is specified opposite “Flip Representations” in the Transaction Summary, the following subsections of Section 4 shall apply:	If “Yes” is specified opposite “Step-Up Provisions” in the Transaction Summary, the following subsections of Section 4 shall apply:
	Section 4.1(d) (Title)	Section 4.1(d)(i)	Section 4.1(d)(ii)	Section 4.1(d)(i)
	Section 4.1(e) (Proceedings)	Section 4.1(e)(i)	Section 4.1(e)(i)	Section 4.1(e)(ii)
	Section 4.1(f) (Principal Amount)	Section 4.1(f)(i)	Section 4.1(f)(ii)	Section 4.1(f)(i)
	Section 4.1(g) (Future Funding)	Section 4.1(g)(i)	Section 4.1(g)(ii)	Section 4.1(g)(iii)
	Section 4.1(h) (Acts and Omissions)	Section 4.1(h)(i)	Section 4.1(h)(i)	Section 4.1(h)(ii)
	Section 4.1(i) (Performance of Obligations)	Section 4.1(i)(i)	Section 4.1(i)(i)	Section 4.1(i)(ii)
	Section 4.1(l) (Setoff)	Section 4.1(l)(i)	Section 4.1(l)(i)	Section 4.1(l)(ii)
	Section 4.1(t) (Consents and Waivers)	Section 4.1(t)(i)	Section 4.1(t)(i)	Section 4.1(t)(ii)
	Section 4.1(u) (Other Documents)	Section 4.1(u)(i)	Section 4.1(u)(i)	Section 4.1(u)(ii)
	Section 4.1(v) (Proof of Claim)	Section 4.1(v)(i)	Section 4.1(v)(ii)	Section 4.1(v)(i)

 

 

Section 4.1(k) (Purchase Price); Netting
Arrangements.

If “Yes” is specified
opposite Netting Arrangements in the Transaction Summary, Section 4.1(k) shall be amended in its entirety as follows:

“(k) [intentionally omitted].”

    	 	 4	 

     

    

Section 4.1(r) (Predecessor Transfer Agreements).

x  Seller acquired the
Transferred Rights from Immediate Prior Seller pursuant to Predecessor Transfer Agreements relating to par/near par loans, with
respect to (i) Term Loan in the outstanding principal amount of $12,000,000.00, (ii) Add-On Term Loan in the outstanding principal
amount of $3,500,000.00 and (iii) Amended, Restated and Consolidated Secured Subordinated Convertible Promissory Note in the outstanding
principal amount of $4,600,000.00.

o  Seller
acquired the Transferred Rights from Immediate Prior Seller pursuant to Predecessor Transfer Agreements relating to distressed
loans.

o  Seller
acquired the Transferred Rights from Immediate Prior Seller pursuant to Predecessor Transfer Agreements relating to both par/near
par loans and distressed loans.

x Not applicable, with respect
to (i)Term Loan A in the outstanding principal amount of $4,000,000.00, (ii) Add-On Term Loan in the outstanding principal amount
of $2,500,000.00 and (iii) Amended, Restated and Consolidated Secured Subordinated Convertible Promissory Note in the outstanding
principal amount of $6,900,000.00.

Section 4.1(u) (Other Documents).

x  None.

o  The following: __________.

Section 4.1(v) (Proof of Claim).

o  The Proof of Claim
was duly and timely filed, on or prior to the Bar Date, by

o the Agent on behalf of the Lenders.

o Seller or a Prior Seller.

o  The Bar Date specified
in the Transaction Specific Terms has been set in the Bankruptcy Case and no Proof of Claim has been filed.

o  No Bar Date has been
set in the Bankruptcy Case and no Proof of Claim has been filed.

x Not applicable.

C.              
SECTION 5 (BUYER’S REPRESENTATIONS AND WARRANTIES)

C.1           
Section 5.1(n) (Buyer Status).

x  Buyer is not a Lender.

o  Buyer is a Lender.

o  Buyer is an Affiliate
[substitute Credit Agreement defined term if different] (as defined in the Credit Agreement) of a Lender.

o  Buyer is an Approved
Fund [substitute Credit Agreement defined term if different] of a Lender.

 

C.2           
If “Yes” is specified opposite “Delivery of Credit Documents” in the Transaction Summary, Buyer
represents and warrants that it (i) was not a Lender on the Trade Date and (ii) requested copies of the Credit Documents from Seller
on or prior to the Trade Date.

D.              
SECTION 6 (INDEMNIFICATION)

Section 6.1 (Seller’s Indemnities);
Step-Up Indemnities.

(i)      If “Yes”
is specified opposite “Step-Up Provisions” in the Transaction Summary, Seller’s indemnities contained in Section
6.1(b) shall apply (and the alternate indemnities contained in Section 6.1(a) shall not apply).

(ii)      If “No”
is specified opposite “Step-Up Provisions” in the Transaction Summary, Seller’s indemnities contained in Section
6.1(a) shall apply (and the alternate indemnities contained in Section 6.1(b) shall not apply).

    	 	 5	 

     

    

E.              
SECTION 7 (COSTS AND EXPENSES)

o      The Transfer
Fee shall be paid by Seller to the Agent and the Purchase Price shall be increased by an amount equal to

o  one-half thereof.

o  other relevant fraction
or percentage, _____, thereof.

o      The Transfer
Fee shall be paid by Buyer to the Agent and Buyer shall receive a credit to the Purchase Price equal to

o  one-half thereof.

o  other relevant fraction
or percentage, ____, thereof.

o      The Transfer
Fee shall be paid and allocated in the manner specified in the Netting Letter.

x      The Transfer
Fee has been waived by the Agent and, accordingly, no adjustment to the Purchase Price shall be made in respect thereof.

o      There
is no Transfer Fee and, accordingly, no adjustment to the Purchase Price shall be made in respect thereof.

F.              
SECTION 8 (DISTRIBUTIONS; INTEREST AND FEES; PAYMENTS)

F.1           
Section 8.2 (Distributions); Step-Up Distributions Covenant.

(i)      If “Yes”
is specified opposite “Step-Up Provisions” in the Transaction Summary, Seller’s covenants contained in Section
8.2(b) shall apply (and the alternate covenants contained in Section 8.2(a) shall not apply).

(ii)      If “No”
is specified opposite “Step-Up Provisions” in the Transaction Summary, Seller’s covenants contained in Section
8.2(a) shall apply (and the alternate covenants contained in Section 8.2(b) shall not apply).

F.2           
Section 8.5 (Wire Instructions).

Buyer’s Wire Instructions:

[to be provided]

 

 

 

 

 

Seller’s Wire Instructions:

	Bank: 	Wells Fargo Bank
	 	77 N State Rd. Orem, UT 84057 
	ABA: 	121 000 248 
	Account: 	9663027614 
	Account Name:   	SWK Holdings Corporation 
	Reference:	Versa Loan Sale (Syncardia)

 

G.              
SECTION 9 (NOTICES)

Buyer’s Address
for Notices and Delivery:

Credit Contacts/Notification
Methods: Agreements, Waivers, Extensions, etc.

 

	Primary Credit Contact	Secondary Credit Contact
	Name:	Paul Halpern	David Lorry
	Company:	Versa Capital Management, LLC   	Versa Capital Management, LLC
	Title:	Chief Investment Officer	Managing Director and Senior Counsel
	Address:	Cira Centre	Cira Centre
	2929 Arch Street	2929 Arch Street	 
	Philadelphia, PA 19104  	Philadelphia, PA 19104	 
	Telephone:	(215) 609 – 3434	(215) 609 –
3416
	Facsimile:	(215) 609 – 3499	(215) 609 –
3499
	E-Mail Address:	phalpern@versa.com	dlorry@versa.com

 

    	 	 6	 

     

    

Seller’s Address
for Notices and Delivery:

SWK Funding LLC

14755 Preston Road, Suite 105

Dallas, Texas 75254

Email: notifications@swkhold.com

 

 

H.              
SECTION 27 (ADDITIONAL PROVISIONS)

The following additional
provisions, including any modifications to existing provisions, apply:

1.      The following
definition of “Note” shall be added to Section 1.2 of the Standard Terms, immediately following the definition of “Non-Recurring
Fees”:

“Note”
means that certain Amended, Restated and Consolidated Secured Subordinated Convertible Promissory Note dated September 11, 2015
made to Seller in the principal amount of $11,500,000.00.

2.      The following
definition of "Securities Transfer Agreement" shall be added to Section 1.2 of the Standard Terms, immediately after
the definition of "Securities Act":

"Securities
Transfer Agreement" means that certain Securities Transfer Agreement dated as of the date hereof and attached hereto as
Exhibit A by and between Seller and SWK Holdings Corporation (“SWK Holdings”), as transferors, and Buyer, as
transferee (the "Securities Transfer Agreement"), relating to the transfer to Buyer from Seller and SWK Holdings of their
respective Common Shares, Preferred Shares (as such terms are defined in the Stockholders’ Agreement) and Warrants (collectively,
the “Securities”).

3.      The following
definition of "Stockholders’ Agreement" shall be added to Section 1.2 of the Standard Terms, immediately after
the definition of "Standard Terms":

"Stockholders’
Agreement" means that certain Ninth Amended and Restated Stockholders’ Agreement made the 15th day of
September, 2014, by and among SynCardia Systems, Inc. and the stockholders party thereto.

4.      The definition
of "Transferred Rights" in Section 1.2 of the Standard Terms shall be amended to add the words “the Note,”
in all cases before the words “the Loans” in such definition.

5.      Section 3.1 of
the Standard Terms is hereby deleted and the following new Section 3.1 shall be inserted in lieu thereof:

"3.1      Buyer’s
obligations to pay the Purchase Price to Seller, to acquire the Transferred Rights and to assume the Assumed Obligations shall
be subject to the conditions that (a) Seller’s representations and warranties in this Agreement shall have been true and
correct on the Agreement Date and/or the Settlement Date (as specified in Section 4.1), (b) Seller shall have complied in all material
respects with all covenants required by this Agreement to be complied with by it on or before the Settlement Date, (c) Buyer shall
have received (i) the Transaction Specific Terms duly executed on behalf of Seller, (ii) the Purchase Price Letter duly executed
on behalf of Seller, (iii) the Assignment duly completed and executed on behalf of Seller and any other Entity the consent or acknowledgement
of which is specified in the definition of Required Consents, (iv) the Securities Transfer Agreement duly executed on behalf of
Seller and SWK Holdings, (v) a transfer notice from Seller to Borrower, in substantially the form prescribed by the Warrants, detailing
the transfer of the Warrants from Seller to Buyer (the “Warrant Transfer Notice”), duly executed on behalf of Seller,
(vi) a transfer notice from Seller and SWK Holdings to Borrower, in substantially the form prescribed by the Stockholders’
Agreement, detailing the transfer of the Common Shares and the Preferred Shares from Seller and SWK Holdings to Buyer (the “Share
Transfer Notice”, and together with the Warrant Transfer Notice, the “Transfer Notices”), duly executed on behalf
of Seller and SWK Holdings and Borrower, (vii) written confirmation from the Borrower that a proper transfer of the Securities
from Seller and SWK Holdings to Buyer will be effectuated on or about the Settlement Date and (viii) the original Note, together
with a duly executed Allonge endorsed to Buyer (a copy of which is attached as Exhibit B hereto), made to Seller with respect to
the Second Lien Loans."

    	 	 7	 

     

    

6.      Section 3.2 of
the Standard Terms is hereby deleted and the following new Section 3.2 shall be inserted in lieu thereof:

"3.2      Seller’s
obligation to sell, transfer, assign, grant, and convey the Transferred Rights to Buyer shall be subject to the conditions that
(a) Buyer’s representations and warranties in this Agreement shall have been true and correct on the Agreement Date and/or
the Settlement Date (as specified in Section 5.1), (b) Buyer shall have complied in all material respects with all covenants required
by this Agreement to be complied with by it on or before the Settlement Date, (c) Seller shall have received (i) the Transaction
Specific Terms duly executed on behalf of Buyer, (ii) the Purchase Price Letter duly executed on behalf of Buyer, (iii) the Assignment
duly completed and executed on behalf of Buyer and any other Entity the consent or acknowledgement of which is specified in the
definition of Required Consents, (iv) the Securities Transfer Agreement duly executed on behalf of Buyer and (v) the Transfer Notices
duly executed on behalf of Buyer and Borrower, as applicable, and (d) Seller shall have received payment of the Purchase Price
from Buyer."

7.      Section 4.1(h)
of the Standard Terms shall be amended in its entirety as follows:

“(h)      Seller
has not engaged in any acts or conduct or made any omissions (including by virtue of Seller’s holding any funds or property
of, or owing amounts or property to, Borrower), that will result in the Transferred Rights being subject to any Impairment.”

8.       Section 4.1(p)
of the Standard Terms shall be amended in its entirety as follows:

“(p) Seller (i) is an “accredited
investor” as defined in Rule 501 under the Securities Act, (ii) has not, nor has anyone acting on Seller's behalf, sold or
offered to sell or solicited any offer to buy any portion of the Note or any interest therein in a manner which would violate,
or require the sale hereunder to be registered under, the Securities Act or any other applicable securities laws, and Seller has
not offered to sell any portion of the Note or any interest therein pursuant to any general advertising or solicitation within
the meaning of Rule 502(c) of the Securities Act, (iii) acquired the Note in a transaction or transactions exempt from registration
under the Securities Act and has not (nor has anyone acting on Seller’s behalf) taken any action that would subject the sale
of the Note to Buyer contemplated hereunder to the registration provisions of Section 5 of the Securities Act or any other applicable
securities laws, (iv) had, at all times from the date(s) of its acquisition of the Note, held the Note for its own account,
for investment and not with a view to the resale, assignment, fractionalization or other distribution of the Note, and (v)
is not, and has not been during the period it has owned the Note, an Affiliate of the Borrower.”

 

9.   A new Section 4.1(x)
shall be added to the Standard Terms as follows:

 

“(x) the Loans constitute (i) all outstanding
debt of the Borrower under the First Lien Credit Agreement and (ii) except as it relates to that portion of the outstanding debt
under the Second Lien Credit Agreement held by Delta Electronics Capital Company in the outstanding principal amount of $3,000,000.00,
all outstanding debt of the Borrower under the Second Lien Credit Agreement.

 

    	 	 8	 

     

    

10.       Section 5.1(d) of the Standard Terms shall be amended in
its entirety as follows:

 

“(d)      Buyer is not purchasing the Transferred
Rights with a view towards the sale or distribution thereof in violation of the Securities Act. Buyer further acknowledges and
agrees that (i) the Note has not been registered under the Securities Act and, accordingly, may not be offered, sold, pledged or
otherwise transferred in the absence of such registration or an applicable exemption therefrom and Seller, in selling the Note
to Buyer hereunder, may be relying on certain exemptions from the provisions of Section 5 of the Securities Act and (iii) the certificate
representing the Note bears a legend describing such restrictions on transfer and Buyer will abide by the provisions thereof.”

 

11.   A new Section 5.1(o) shall be added to the Standard Terms as follows:

 

“(o) Without in any way limiting Buyer's
ability to actually do so after the Settlement Date should the opportunity later arise, neither Buyer nor any of its Affiliates has
any present intention to, and has not solicited, initiated, encouraged, entered into any discussions and has no plans to, sell
the acquired assets or business of the Borrower or any business composed substantially of all of the assets of Borrower (“Reorganized
Borrower”) immediately or shortly following any such acquisition.”

 

12.      Section 10.1(a) of the Standard Terms shall be amended in
its entirety as follows:

 

“(a)      such sale, assignment, participation
or transfer shall comply with any applicable requirements in the Transaction Documents and any applicable laws, rules or regulations,
including the Securities Act or any other applicable securities laws (or pursuant to an applicable exemption therefrom or under
circumstances where neither registration under the Securities Act or other applicable securities laws nor such an exemption is
required by applicable law), rules or regulations;”

 

13.       The following clause shall be added to the beginning of Section
17.1 of the Standard Terms:

 

“Except for the provisions in paragraphs
2, 5 and 6 of the “Trade Specific Other Terms of Trade” found in that certain LSTA Distressed Trade Confirmation between
Seller and Buyer dated the Trade Date and relating to the Transaction, which provisions shall survive the execution and delivery
of this Agreement and the other Operative Documents,”

 

14.       New Sections
29 and 30 shall be added to the Standard Terms as follows

“29.       Short
Term Gain Protection

Buyer and Seller agree that if, after
the Settlement Date, a third-party that is not an Affiliate of Buyer acquires the Borrower, substantially all of the Borrower’s
assets and/or any Reorganized Borrower in a preemptive and competitive bid situation (such as through a formal bankruptcy proceeding
or otherwise), Buyer shall pay to Seller 25% of any net cash gains received by Buyer on account of its portion of the principal
amount of the Loans (net of the Purchase Price, all additional debt or equity financing that Buyer may provide to Borrower or any
Reorganized Borrower, and all fees, costs and expenses related thereto). Buyer’s obligations to pay and Seller’s
right to payment described in this Section 29 shall expire and terminate upon the closing of Buyer’s acquisition of the Borrower
or substantially all the Borrower’s assets and/or any Reorganized Borrower.

30.       Agency

(a) Seller agrees
that it shall, from and after the Settlement Date and subject to the Credit Documents and applicable legal requirements, (i) remain
as administrative, collateral and control agent under the Credit Documents (including without limitation for the purpose of maintaining
perfection in respect of all real, personal and mixed property in which liens are purported to be granted to, or perfected
by, the Agent on behalf of the Lenders, including, without limitation, the Collateral), and reasonably act and cooperate with Buyer
(at no out-of-pocket cost or expense to Seller) in accordance with the terms of the Credit Documents and (ii) follow any commercially
reasonable instructions of Buyer (at Buyer's sole cost and expense, subject to Borrower's indemnification of Agent with respect
to such instructions in accordance with the Credit Documents) with respect to any action, request, discussion or vote to be made
in respect of the Collateral.

(b) Seller further
agrees that, upon the request of Buyer, it shall give notice of its resignation as administrative, collateral and control agent
under the Credit Documents in accordance with the terms thereof, and Buyer agrees that, promptly after receipt of such notice
of resignation, it shall give notice of its appointment of a successor administrative, collateral and control agent under the
Credit Documents in accordance with the terms thereof.

 

    	 	 9	 

     

    

IN WITNESS WHEREOF,
Seller and Buyer have executed this Agreement by their duly authorized officers or representatives as of the Agreement Date.

 

	 	SELLER	 
	 	 	 	 
	 	SWK FUNDING, LLC	 
	 	 	 	 
	 	by: SWK Holdings Corporation, its sole Manager	 
	 	 	 	 
	 	By: 	/s/ Winston Black	 
	 	Name: Winston Black	 
	 	Title: CEO	 

 

 

 

	 	BUYER	 
	 	 	 	 
	 	SINDEX SSI LENDING, LLC	 
	 	 	 	 
	 	By: 	/s/ Paul Halpern	 
	 	 	Name: Paul Halpern	 
	 	 	Title: Authorized Signatory	 

 

    	 	 10	 

     

    

ANNEX TO PURCHASE AND SALE AGREEMENT
FOR DISTRESSED TRADES

		1.	If “Secondary Assignment” is specified opposite “Type of Assignment” in
the Transaction Summary, list of Predecessor Transfer Agreements and principal amount, as of the Settlement Date, of the portion
of the Loans and Commitments (if any) thereunder assigned hereby for purposes of Section 4.1(r) and Section 5.1(k)(i) hereof, and
designation as to whether such Predecessor Transfer Agreements relate to par/near par loans or distressed loans.

			A. Original Assignment, with respect to Term Loan A in the outstanding principal amount of $4,000,000.00,
Add-On Term Loan in the outstanding principal amount of $2,500,000.00 and Amended, Restated and Consolidated Secured Subordinated
Convertible Promissory Note in the outstanding principal amount of $6,900,000.00

B. With respect
to Term Loan in the outstanding principal amount of $7,727,150.34, Add-On Term Loan in the outstanding principal amount of $2,253,752.18
and Amended, Restated and Consolidated Secured Subordinated Convertible Promissory Note in the outstanding principal amount of
$2,962,074.30:

Assignment and
Assumption dated as of September 10, 2015 among Athyrium Opportunities Fund (A) LP, as assignor, SWK Funding, LLC, as assignee,
and the Agent

C. With respect
to Term Loan in the outstanding principal amount of $4,272,849.66, Add-On Term Loan in the outstanding principal amount of $1,246,247.82,
and Amended, Restated and Consolidated Secured Subordinated Convertible Promissory Note in the outstanding principal amount of
$1,637,925.70:

Assignment and
Assumption dated as of September 10, 2015 among Athyrium Opportunities Fund (B) LP, as assignor, SWK Funding, LLC, as assignee,
and the Agent

		2.	List of Credit Agreement and any other Credit Documents delivered pursuant to Section 4.1(s) hereof.

			See list on Exhibit C attached hereto

 

		3.	Description of Proof of Claim (if any).

			N/A

		4.	Description of Adequate Protection Order (if any).

			N/A

		5.	List any exceptions to Section 4.1(w) (Notice of Impairment).

			N/A

		6.	The amount of any PIK Interest that accreted to the principal amount of the Loans on or after the Trade
Date but on or prior to the Settlement Date is $0.00.

    	 	Annex	 

     

    

 

            EXHIBIT
A

 

Securities
Transfer Agreement

    	 	Annex	 

     

    

EXHIBIT B

 

Note and Allonge

 

 

 

    	 	Annex	 

     

    

EXHIBIT C

 

Credit Documents

First Lien Credit Facility Documents:

 

		·	Amended and Restated Credit Agreement dated 12/13/2013

		·	Amended and Restated Security Agreement dated 12/13/2013

		·	Amended and Restated Pledge Agreement dated 12/13/2013

		·	Secretary’s Certificate dated 12/13/2013

		·	Notice of Grant of Security Interest in Patents dated 12/13/2013

		·	Cooley Legal Opinion dated 12/13/2013

		·	First Amendment to Amended and Restated Credit Agreement dated 9/15/2014

		·	Second Amendment to Amended and Restated Credit Agreement dated 12/23/2014

		·	Third Amendment to Amended and Restated Credit Agreement dated 2/13/2015

		·	Amended and Restated Intercreditor and Subordination Agreement dated 2/13/2015

		·	Waiver and Fourth Amendment to Amended and Restated Credit Agreement dated 6/19/2015

		·	Add-On Term Note dated 6/19/2015 payable to SWK

		·	Add-On Term Note dated 6/19/2015 payable to Athyrium Fund (B)

		·	Add-On Term Note dated 6/19/2015 payable to Athyrium Fund (A)

		·	Loan Notice dated 6/19/2015

		·	Add-On Term Loan Joinder Agreement dated 6/19/2015

		·	Officer’s Certificate dated 6/19/2015

		·	Officer’s Certificate dated 6/19/2015

		·	Cooley Legal Opinion (Add-On Term Loan) dated 6/19/2015

		·	Fifth Amendment to Amended and Restated Credit Agreement dated 9/15/2015

		·	Officer’s Certificate dated 9/30/2015

		·	Forbearance Agreement dated 2/9/2016

		·	Forbearance Agreement dated 2/29/2016

		·	Forbearance Agreement dated 3/7/2016

 

Second Lien Credit Facility Documents:

		·	Pledge Agreement dated 12/13/2013

		·	Trademark Security Agreement dated 12/13/2013

		·	Patent Security Agreement dated 12/13/2013

		·	Trinity Subordination Agreement dated 12/13/2013

		·	Omnibus Reaffirmation and Amendment Agreement dated 2/13/2015

		·	Amended and Restated Second Lien Credit Agreement dated 2/13/2015

		·	Cooley Legal Opinion dated 2/13/2015

		·	Compliance Certificate dated 2/13/2015

		·	Secretary’s Certificate dated 2/13/2015

		·	Waiver and Amendment to Amended and Restated Second Lien Credit, Note Purchase Exchange and Termination Agreement dated 6/19/2015

		·	Amended and Restated Secured Subordinated Convertible Promissory Note ($11,500,000) payable to SWK dated 9/11/2015

		·	Amended and Restated Secured Subordinated Convertible Promissory Note ($3,000,000) payable to Delta dated 9/11/2015

 

    	 	Annex	 

     

    

Athyrium Loan Transfer Documents:

		·	Athyrium B – First Lien Facility Assignment and Assumption dated 9/10/2015

		·	Athyrium A – First Lien Facility Assignment and Assumption dated 9/10/2015

		·	Athryium B – Second Facility Assignment and Assumption dated 9/10/2015

		·	Athyrium A – Second Lien Facility Assignment and Assumption dated 9/10/2015

 

Successor Agent Documents:

		·	Resignation of Agent and Appointment of Successor Agent (First Lien Credit Facility) dated 2/9/2016

		·	Assignment of Security Agreement (First Lien Credit Facility) dated 2/9/2016

		·	Assignment of Security Agreement (Second Lien Credit Facility) dated 2/9/2016

		·	Resignation of Agent and Appointment of Successor Agent (Second Lien Credit Facility) dated 2/9/2016

		·	Security Agreement Supplement dated 2/22/2016

 

Deposit Account Control Agreements:

		·	Securities Account Control –Consent Agreement (Money Market Account ending 02405) dated 1/23/2013

		·	Assignment and Assumption of Securities Account Control –Consent Agreement Money Market Account ending 02405) dated 2/12/2016

		·	Deposit Account Control Agreement (Checking Account ending 68586) dated 6/2014

		·	Assignment and Assumption of Deposit Account Control Agreement (Checking Account ending 68586) dated 2/12/2016

		·	Deposit Account Control Agreement (Multi-Currency Account ending 07360) dated 6/2014

		·	Assignment and Assumption of Deposit Account Control Agreement (Multi-Currency Account ending 07360) dated 2/12/2016

  

 

    	 	AnnexEXECUTION
COPY

SECURITIES
TRANSFER AGREEMENT

This Securities Transfer
Agreement, dated as of June 24, 2016 (this “Agreement”), is by and between SWK FUNDING, LLC (“Funding”),
SWK HOLDINGS CORPORATION (“Holdings” and, together with Funding, the “Sellers,” and each,
a “Seller”) and SINDEX SSI LENDING, LLC (“Buyer”). Capitalized terms used and not otherwise
defined in this Agreement shall have the meanings given to them in the Purchase and Sale Agreement (as defined below).

 

WHEREAS, Funding
and Buyer are each a party to that certain LSTA Distressed Trade Confirmation (the “Trade Confirmation”) dated
May 25, 2016 (the “Trade Date”) pursuant to which ̧ inter alia, Funding agreed to transfer to Buyer,
and Buyer agreed to receive from Seller, (i) 4,000 shares of the common stock of SynCardia Systems, Inc. (the “Company”),
par value $0.01 per share, represented by share certificate No. 47 and owned by Funding (the “Common Shares”),
(ii) 2,323,649 shares of the Company’s Series F Preferred Convertible Stock, par value $0.01 per share, represented by share
certificates No. 3-F, 7-F and 134-F, respectively, and owned by Holdings (the “Preferred Shares,” and together
with the Common Shares, the “Equity”) and (iii) Common Stock Purchase Warrants to purchase 34,551 Common Shares,
represented by warrant certificates No. CS-2015-3 and CS-2105-6, respectively, issued by the Company to Funding (collectively,
the “Warrants,” and together with the Equity, the “Securities”);

WHEREAS, all references
to Common Shares herein refers to the number of Common Shares reflecting the one-to-ten reverse split effected by the Company on
September 15, 2015;

WHEREAS, holders
of the Securities are subject to the terms and conditions of that certain (i) Ninth Amended and Restated Stockholders’
Agreement made the 15th day of September, 2014 (the “Stockholders’ Agreement”), by and among
SynCardia Systems, Inc. (the “Company”) and the stockholders party thereto (the “Stockholders”),
(ii) Eleventh Amended and Restated Certificate of Incorporation of the Company filed on September 15, 2014, as amended by that
certain Certificate of Amendment as filed on September 15, 2015 (as so amended, the “Certificate of Incorporation”)
and (iii) Bylaws of the Company, effective as of September 15, 2014 (the “Bylaws” and , collectively with
the Stockholders’ Agreement, the Certificate of Incorporation and the Warrants, the “Operative Documents”);

NOW, THEREFORE,
subject to the terms and conditions of this Agreement and in consideration of the premises and mutual covenants and agreements
contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties do hereby agree as follows:

1.              
PURCHASE AND SALE OF THE SECURITIES

Upon the terms and subject
to the conditions set forth in this Agreement, on the Closing Date (as defined below), each of the Sellers shall sell, transfer,
assign and convey the Securities described as owned by such Seller above, including, without limitation, all of its rights (including
without limitation any registration rights) in connection with the Securities under the Operative Documents (collectively, the
“Transferred Rights”), to Buyer, and, in consideration thereof, Buyer shall pay to Funding the Purchase Price
set forth in that certain Purchase and Sale Agreement by and between Funding and Buyer dated as of the date hereof (the “Purchase
and Sale Agreement”), as payment in full for the Loans (as defined therein) and the Securities, in immediately available
funds pursuant to Funding’s wire transfer instructions set forth in the Purchase and Sale Agreement. As used herein, the
“Closing Date” means the date upon which the conditions of closing set forth in Section 4 hereof have been satisfied
or waived. 

 

    	 	 1	 

     

    

2.              
REPRESENTATIONS AND WARRANTIES OF SELLERS

Each of the Sellers
hereby represents and warrants to Buyer as of the date hereof and as of the Closing Date that:

(a)                 
Organization.Such Seller is an entity duly organized, validly existing and in good
standing under the laws of the jurisdiction of its formation.

(b)                
Authority and Enforceability. Each Seller has all necessary corporate or limited liability
company power and authority, as applicable, to execute, deliver, and perform its obligations under this Agreement and each of the
other documents to be executed or delivered by such Seller in connection with this Agreement (the “Transaction Documents”)
and to consummate the transactions contemplated hereby and thereby. This Agreement and the Transaction Documents have been duly
authorized, executed and delivered by such Seller and, assuming due execution and delivery by Buyer, constitute legally valid and
binding obligations of such Seller, enforceable against such Seller in accordance with their respective terms, except that such
enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the rights
of creditors generally or by general equitable principles.

(c)                 
No Violation. The execution and delivery of this Agreement and the Transaction Documents
by such Seller and the performance by such Seller of its obligations hereunder and thereunder, will not (i) result in a breach
or violation of any provision of such Seller’s organizational documents, (ii) violate or breach any statute, law, writ,
order, rule or regulation of any government, governmental agency, authority, court or other tribunal (collectively, “Governmental
Authority”) applicable to such Seller, (iii) breach or result in default of any judgment, injunction, decree or determination
of any Governmental Authority applicable to such Seller or (iv) breach or violate any material agreement to which such Seller is
a party or by which such Seller or any of its properties may be bound. 

(d)                
 Title to Transferred Rights. Except for any Liens (as defined below) under the Operative
Documents, such Seller has good, legal and valid title to the Transferred Rights, is the beneficial owner of Transferred Rights,
and has the full right to transfer the Transferred Rights. The Transferred Rights are owned by such Seller free and clear of any
lien, pledge, security interest, charge, hypothecation, security agreement, security arrangement or encumbrance or other adverse
claim against title of any kind, other than any transfer restrictions on the Securities prescribed by the Operative Documents (collectively,
“Liens”). Such Seller has not previously sold, conveyed, transferred, assigned, participated, pledged or otherwise
encumbered the Transferred Rights, in whole or in part. Upon delivery of the Securities to Buyer on the Closing Date against payment
therefor as contemplated hereby, such Seller will transfer to Buyer good, legal and valid title to the Transferred Rights free
and clear of any and all Liens, except for any Liens created or allowed by the Buyer. Such Seller has not made any prior assignment,
transfer or participation of the Transferred Rights or of any interest therein and has not entered into any agreement (other than
the Transaction Documents and the Trade Confirmation) or arrangement to do the same.

(e)                 
Consents and Approvals. Except for the consent of the Company required pursuant to
the Operative Documents, neither the execution and delivery by such Seller of this Agreement, nor the performance by such Seller
of its obligations under this Agreement requires the consent, approval, order or authorization of, or registration with, or the
giving notice to, any Governmental Authority or any individual, partnership, corporation, limited liability company, association,
estate, trust, business trust, fund, investment account or other entity (each, including a Governmental Authority, a “Person”).

    	 	 2	 

     

    

(f)                 
No Public Sale or Distribution. Neither such Seller nor anyone acting on its behalf
has taken any action which could subject the sale of the Securities to the registration requirements of Section 5 of the Securities
Act of 1933, as amended, and the rules and regulations promulgated thereunder (the “Securities Act”). The Securities
were not offered or sold to the Buyer by any form of general solicitation or general advertising. The Securities were acquired
by the such Seller without a view to any public resale or other distribution thereof in violation of the Securities Act or any
other applicable securities laws. 

(g)                
Sophistication; Non-reliance. Such Seller (i) is a sophisticated investor and has such
knowledge and experience in financial and business matters as to be capable of evaluating independently the merits, risks and suitability
of entering into this Agreement and the transactions contemplated hereby, (ii) has conducted its own analysis and due diligence
and independently obtained such information as it deems necessary in order to make an informed investment decision with respect
to the Transferred Rights, (iii) is able to bear the risks attendant to the transactions contemplated hereby, and (iv) is dealing
with the Buyer on a professional arm's-length basis and neither the Buyer nor any of its affiliates is acting as a fiduciary or
advisor to such Seller with respect to this Agreement or any of the transactions contemplated hereby.

(h)                
ERISA. No interest in the Transferred Rights of such Seller is being sold by or on
behalf of the following (collectively, a “Benefit Plan”): (i) an “employee benefit plan” (as defined
in the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated under it (“ERISA”))
that is subject to Title I of ERISA; (ii) a “plan” as defined in Section 4975 of the Internal Revenue Code of 1986,
as amended, and the rules and regulations promulgated under it (the “Code”); or (iii) any entity whose assets
include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets
of any such “employee benefit plan” or “plan”.

(i)                  
 No Broker. There is no investment banker, broker, finder, or other intermediary retained
by or authorized to act on behalf of such Seller who might be entitled to any fee or commission from Buyer or any of its affiliates
upon consummation of the transactions contemplated hereby. 

(j)                  
 No Proceedings. There is no action, lawsuit, arbitration, claim or proceeding pending
or, to the best of Seller’s knowledge, threatened, against such Seller that could reasonably be expected to impede the consummation
of the transaction contemplated hereby or that will materially and adversely affect the Securities.

(k)                
Compliance with Transfer Provisions. Such Seller has complied with, and has performed,
all obligations required to be complied with or performed by it under the Operative Documents in order to effectuate the transfer
of the Securities from such Seller to Buyer.

(l)                  
No Dividends. Such Seller has not received any payments or other distribution, including,
without limitation, dividends, with respect to the Transferred Rights on or since the Trade Date.

(m)               
No Other Equity in the Company; Amount of Securities. Such Seller holds no equity
or other ownership interest in the Company, other than the Securities. Notwithstanding the amounts set forth in the certificates
representing the Securities, the amount of the Securities set forth in the Recitals is the current amount of such Securities held
by such Seller and to be transferred to Buyer hereunder (as contemplated in the Trade Confirmation).

    	 	 3	 

     

    

3.    
REPRESENTATIONS AND WARRANTIES OF BUYER

Buyer represents
and warrants to Sellers as of the date hereof and as of the Closing Date that:

(a)                 
Organization. Buyer is an entity duly organized, validly existing and in good standing
under the laws of the jurisdiction of its formation.

(b)                
Authority and Enforceability. Buyer has all necessary power and authority to execute,
deliver, and perform its obligations under this Agreement and the Transaction Documents and to consummate the transactions contemplated
hereby and thereby. This Agreement and the Transaction Documents have been duly executed and delivered by Buyer and, assuming due
execution and delivery by Sellers, constitute legally valid and binding obligations of Buyer, enforceable against Buyer in accordance
with their respective terms, except that such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium
or other similar laws affecting the rights of creditors generally or by general equitable principles.

(c)                 
No Violation. The execution and delivery of this Agreement and the Transaction Documents
by Buyer, and the performance by Buyer of its obligations hereunder and thereunder, will not (i) result in a breach or violation
of any provision of Buyer’s organizational documents, (ii) violate or breach any statute, law, writ, order, rule or
regulation of any Governmental Authority applicable to Buyer, (iii) breach or result in default of any judgment, injunction, decree
or determination of any Governmental Authority applicable to Buyer or (iv) breach or violate any material agreement to which Buyer
is a party or by which Buyer or any of its properties may be bound. 

(d)                
Consents and Approvals. Except for the consent of the Company required in the Operative
Documents, neither the execution and delivery by Buyer of this Agreement, nor the performance by Buyer of its obligations under
this Agreement requires the consent, approval, order or authorization of, or registration with, or the giving notice to, any Governmental
Authority or any other Person.

(e)                 
 Non-reliance. Buyer (i) is a sophisticated investor and has such knowledge and experience
in financial and business matters as to be capable of evaluating independently the merits, risks and suitability of entering into
this Agreement and the transactions contemplated hereby, (ii) has conducted its own analysis and due diligence and independently
obtained such information as it deems necessary in order to make an informed investment decision with respect to the Transferred
Rights, (iii) is able to bear the risks attendant to the transactions contemplated hereby, and (iv) is dealing with Sellers on
a professional arm's-length basis and neither Sellers nor any of their respective affiliates is acting as a fiduciary or advisor
to Buyer with respect to this Agreement or any of the transactions contemplated hereby.

(f)                 
Accredited Investor; Acquisition for Own Account. Buyer is an “accredited investor”
as such term is defined in Rule 501(a) of the Securities Act. Buyer is acquiring the Securities from Sellers for Buyer’s
own account as principal and not with a view to distribution thereof in violation of the Securities Act or any other securities
laws.

(g)                
 Restrictions on Transfer; No Public Market; Speculative Value. Buyer understands and
acknowledges that (i) there are restrictions on the Buyer's ability to resell the Securities under the applicable securities laws
and under the Operative Documents, (ii) the Securities are being offered and sold to it in reliance on one or more specific exemptions
from the registration requirements of United States federal and state securities laws, and that the Sellers are relying in part
upon the truth and accuracy of, and the Buyer's compliance with, the representations, warranties and understandings of the Buyer
set forth in this Agreement and the Transaction Documents in order to determine the availability of such exemptions and the eligibility
of the Buyer to acquire the Securities; (iii) the Securities have not been registered under the Securities Act or the securities
laws of any state, and may not be sold except pursuant to an effective registration statement or pursuant to a duly available exemption
from such registration requirements, (iv) any certificates or book entry accounts representing the Securities will bear a legend
describing such restrictions on transfer, (v) there is no public market for the Securities, the Securities will not trade on an
exchange or automatic quotation system, and no such market is expected to develop and (vi) the Securities are of a speculative
value only. 

    	 	 4	 

     

    

(h)                
 ERISA. No interest in the Transferred Rights is being acquired by or on behalf of
one or more Benefit Plans.

(i)                  
No Broker. There is no investment banker, broker, finder, or other intermediary retained
by or authorized to act on behalf of Buyer who might be entitled to any fee or commission from Sellers or any of their respective
affiliates upon consummation of the transactions contemplated hereby. 

(j)                  
No Proceedings. There is no action, lawsuit, arbitration, claim or proceeding pending
or, to the best of Buyer’s knowledge, threatened, against Buyer that could reasonably be expected to materially and adversely
affect any action taken or to be taken by Buyer under this Agreement.

(k)                
Compliance. Assuming the truth and accuracy of Sellers’ representations and warranties
set forth in Section 2(k) above, Buyer is acquiring the Securities from Sellers in accordance and compliance with the terms of
the Operative Documents

(l)                  
Restricted Transferee; Qualified Successor. Buyer is not a Restricted Transferee
(as defined in the Stockholders’ Agreement). Buyer is a Qualified Successor (as defined in the Warrants).

4.    
CONDITIONS OF CLOSING

(a)                 
Conditions to Sellers' Obligation to Transfer.The obligation of Sellers to transfer,
assign and convey the Securities to Buyer on the Closing Date is subject to the satisfaction, on or before the Closing Date, of
each of the following conditions (any of which may be waived by Sellers in whole or in part):

(i)              
The representations and warranties of Buyer shall be true and correct in all material respects
as of the date when made and as of the Closing Date as though made at that time (except for representations and warranties that
speak as of a specific date), and Buyer shall have performed, satisfied and complied with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by Buyer at or prior to the Closing Date.

(ii)            
Buyer shall have duly executed and delivered to Sellers the Purchase and Sale Agreement (and
paid to Funding the Purchase Price thereunder). Buyer shall have duly executed and delivered to Sellers a transfer notice in substantially
the form prescribed by Warrants (the “Warrant Transfer Notice”), a form of which is attached as Exhibit A
hereto. Buyer and the Company shall have duly executed and delivered to Sellers a transfer notice in substantially the form prescribed
by Stockholders’ Agreement (the “Share Transfer Notice”; and together with the Warrant Transfer Notice,
the “Transfer Notices”), a form of which is attached as Exhibit B hereto.

(iii)          
The Company (or its transfer agent or counsel, as the case may be) shall have confirmed to
Sellers, in writing, that (A) it has received all documents, in acceptable form, that are necessary to effect the transfer of the
Securities from Seller to Buyer, (B) it is prepared to effect such transfer and (C) the Operative Documents have not been amended
except as set forth in the recitals above.

    	 	 5	 

     

    

(b)                
Conditions to Buyer’s Obligation to Receive the Securities. The obligation of
Buyer to receive the Securities, is subject to the satisfaction, on or before the Closing Date, of each of the following conditions
(any of which may be waived by Buyer in whole or in part):

(i)              
The representations and warranties of each Seller shall be true and correct in all material
respects as of the date when made and as of the Closing Date as though made at that time (except for representations and warranties
that speak as of a specific date), and each Seller shall have performed, satisfied and complied with the covenants, agreements
and conditions required by this Agreement to be performed, satisfied or complied with by such Seller at or prior to the Closing
Date.

(ii)            
Each Seller, as applicable, shall have duly executed and delivered (A) to Buyer the Purchase
and Sale Agreement and (B) to the Company the Transfer Notices. Buyer shall have received a copy of the fully executed Transfer
Notices from Sellers.

(iii)          
The Company (or its transfer agent or counsel, as the case may be) shall have confirmed to
Buyer, in writing, that (A) it has received all documents, in acceptable form, that are necessary to effect the transfer of the
Securities from Seller to Buyer, (B) it is prepared to effect such transfer and (C) the Operative Documents have not been amended
except as set forth in the recitals above.

5.    
 DISTRIBUTIONS

If
at any time after the Trade Date, either Seller receives a distribution on account of the Transferred Rights (a “Distribution”),
whether or not the Distribution is assignable, such Seller shall (i) accept and hold the Distribution (to the extent received
by such Seller) on behalf of and for the sole benefit of Buyer, (ii) have no equitable or beneficial interest in the Distribution
and (iii) on or after the Closing Date, deliver the Distribution (free of any withholding, setoff, recoupment, or deduction of
any kind except as required by law) promptly (but in the case of a cash Distribution, in no event later than two (2) business days
after the date on which such Seller receives the Distribution) to Buyer in the same form received and, when necessary or appropriate,
with such Seller’s endorsement (without recourse, representation, or warranty), except to the extent prohibited under any
applicable law, rule, order or other document governing the transfer of any such Distribution, or use commercially reasonable efforts
(at Buyer’s sole expense) to assist Buyer to cause the Distribution to be registered in Buyer’s name, or such name
as Buyer may direct in writing, and deliver securities or any non-cash Distribution to Buyer or to such entity as Buyer may direct
as soon as practicable.

6.         
MISCELLANEOUS

(a)                 
Further Assurances. Each of the parties agrees to (i) execute and deliver, or cause
to be executed and delivered, all such other and further agreements, documents and instruments and (ii) take or cause to be taken
all such other and further actions as the other parties may reasonably request to effectuate the intent and purposes, and carry
out the terms, of this Agreement and the Transaction Documents.

(b)                
Governing Law; Jurisdiction. This Agreement shall be governed by and construed in accordance
with the internal laws of the State of New York (without regard to any conflicts of law provision that would require the application
of the laws of any other jurisdiction). Each of the Sellers and Buyer irrevocably and unconditionally submit to and accept the
exclusive jurisdiction of the United States District Court for the Southern District of New York located in the Borough of Manhattan
or the courts of the State of New York located in the County of New York for any action, suit or proceeding arising out of or based
upon this Agreement or any matter relating to it, and waives any objection that it may have to the laying of venue in any such
court or that any such court is an inconvenient forum or does not have personal jurisdiction over it.

    	 	 6	 

     

    

(c)                 
Indemnification. Each of the parties hereto (the “Indemnifying Party”)
shall indemnify, defend, and hold the other parties hereto and its officers, directors, agents, partners, members, controlling
entities and employees (collectively, “Indemnitees”) harmless from and against any liability, claim, cost, loss,
judgment, damage or expense (including reasonable attorneys’ fees and expenses) that any Indemnitee incurs or suffers as
a result of, or arising out of, a breach by the Indemnifying Party of any of its representations, warranties, covenants or agreements
in this Agreement.

(d)                
Section Headings. The headings of the sections and subsections of this Agreement are
inserted for convenience only and shall not be deemed to constitute a part thereof.

(e)                 
Expenses. Except as otherwise stated herein, each party will be responsible for its
own costs and expenses in connection with the transactions contemplated by this Agreement. 

(f)                 
Successors and Assigns. This Agreement and the Transaction Documents shall inure to
the benefit of and be binding upon the successors and permitted assigns of each of the parties. In no event will either party assign
or transfer any of its rights or obligations hereunder without the express prior written consent of the other party. Nothing in
this Agreement, express or implied, is intended or shall be construed to give any Person other than the parties to this Agreement
and their respective successors or permitted assigns any legal or equitable right, remedy or claim under or in respect of any agreement
or any provision contained herein.

(g)                
Entire Agreement; Amendment and Waiver. This Agreement and the Transaction Documents
constitute the entire understanding of the parties hereto and supersede all prior understandings among such parties. If there is
any inconsistency or conflict between this Agreement and the Transaction Documents, the provisions of this Agreement shall govern
and control. This Agreement may be amended, and the observance of any term of this Agreement may be waived, with (and only with)
the written consent of Sellers and Buyer.

(h)                
Counterparts. This Agreement may be executed in one or more counterparts, each of which
shall be deemed an original and all of which together shall be considered one and the same agreement.

(i)                  
Confidentiality. Each of the Sellers and Buyer agrees that, without the prior consent
of the other party or parties, as applicable, it shall not disclose the contents of this Agreement to any Person, except that any
party may make any such disclosure (a) as required to implement or enforce this Agreement, (b) if required to do so by any law,
court, regulation, subpoena or other legal process, (c) to any Governmental Authority or self-regulatory entity having or asserting
jurisdiction over it, (d) if its attorneys advise it that it has a legal obligation to do so or that failure to do so may result
in it incurring a liability to any other Person or sanctions that may be imposed by any Governmental Authority, or (e) to its affiliates,
directors, officers, employees, agents, advisors, counsel and auditors. Notwithstanding the foregoing, Buyer acknowledges that
Holdings is a public company and may be required to disclose this Agreement and the other Transaction Documents or their terms
as part of its public reporting, and may do so with prior written notice to and consultation with, but without the consent of,
Buyer. 

    	 	 7	 

     

    

(j)                  
Survival. All representations, warranties, covenants and agreements contained in or
made pursuant to this Agreement shall survive the consummation of the transactions contemplated hereunder.

(k)                
Severability of Provisions. The invalidity or unenforceability of any particular provision
of this Agreement, or any agreement or certificate entered into in connection with the transactions contemplated hereby, shall
not affect the other provisions hereof or thereof, which shall continue in full force and effect.

(l)                  
Waiver of Jury Trial. EACH PARTY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY LAWSUIT,
ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHT UNDER THIS AGREEMENT OR ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED
OR TO BE DELIVERED IN CONNECTION WITH THIS AGREEMENT AND AGREES THAT ANY LAWSUIT, ACTION OR PROCEEDING WILL BE TRIED BEFORE A COURT
AND NOT BEFORE A JURY.

 

 

(signatures on following page)

    	 	 8	 

     

    

IN WITNESS WHEREOF, this Agreement is executed
as of the date set forth above.

 

	 	SELLER:	 
	 	 	 	 
	 	SWK HOLDINGS CORPORATION	 
	 	 	 	 
	 	By: 	/s/ Winston Black	 
	 	 	Name: Winston Black	 
	 	 	Title: CEO	 

 

 

 

	 	SWK FUNDING, LLC	 
	 	 	 	 
	 	by: SWK Holdings Corporation, its sole Manager	 
	 	 	 	 
	 	By: 	/s/ Winston Black	 
	 	 	Name: Winston Black	 
	 	 	Title: CEO	 

 

 

	 	BUYER:	 
	 	 	 	 
	 	SINDEX SSI LENDING, LLC	 
	 	 	 	 
	 	By: 	/s/ Paul Halpern	 
	 	 	Name: Paul Halpern	 
	 	 	Title: Authorized Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00259-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00259-of-00352.parquet"}]]