Document:

EX-10.34

 Exhibit 10.34 
 LOAN AND SECURITY AGREEMENT 
 THIS LOAN AND SECURITY AGREEMENT (this
“Agreement”) dated as of April 8, 2013 (the “Effective Date”) between SILICON VALLEY BANK, a California corporation (“Bank”), and STEMCELLS, INC., a Delaware corporation
(“Borrower”), provides the terms on which Bank shall lend to Borrower and Borrower shall repay Bank. The parties agree as follows: 
 1 ACCOUNTING AND OTHER TERMS 
 Accounting terms not defined in this
Agreement shall be construed following GAAP. Calculations and determinations must be made following GAAP. Capitalized terms not otherwise defined in this Agreement shall have the meanings set forth in Section 13. All other terms contained in
this Agreement, unless otherwise indicated, shall have the meaning provided by the Code to the extent such terms are defined therein. 
 2 LOAN AND TERMS OF PAYMENT 
 2.1 Promise to Pay. Borrower
hereby unconditionally promises to pay Bank the outstanding principal amount of all Credit Extensions and accrued and unpaid interest thereon as and when due in accordance with this Agreement. 

2.1.1 Term Loan. 
 (a) Availability. Bank shall make one (1) term loan available to Borrower in an amount equal to the Term Loan Amount on the Effective Date, or as soon thereafter as all conditions precedent to
the making thereof have been met, subject to the satisfaction of the terms and conditions of this Agreement. 
 (b)
Repayment. Borrower shall make monthly payments of “interest only” with respect to the Term Loan commencing on May 1, 2013 and continuing on the first (1st) day of each month thereafter through October 1, 2013.
Borrower shall repay the Term Loan in thirty (30) equal installments of principal and interest commencing on November 1, 2013 (each a “Term Loan Payment”) and continuing on the first (1st) day of each month thereafter
through the Term Loan Maturity Date. Borrower’s final Term Loan Payment, due on the Term Loan Maturity Date, shall include (i) the Final Payment plus (ii) all outstanding principal and accrued and unpaid interest under the Term Loan.
Once repaid, the Term Loan may not be reborrowed. 
 (c) Prepayment. 

(i) Mandatory Prepayment Upon an Acceleration. If the Term Loan is accelerated following the occurrence of an Event of Default or
otherwise, Borrower shall immediately pay to Bank an amount equal to the sum of (a) all outstanding principal with respect to the Term Loan, plus accrued and unpaid interest thereon, (b) the Final Payment, (c) the Term Loan
Termination Fee and (d) all other sums, including Bank Expenses, if any, that shall have become due and payable hereunder in connection with the Term Loan, including interest at the Default Rate with respect to any past due amounts. 

(ii) Voluntary Prepayment. So long as an Event of Default has not occurred and is not continuing, Borrower shall have the option
to prepay all, but not less than all, of the Term Loan advanced by Bank under this Agreement, provided Borrower (i) delivers written notice to Bank of its election to prepay the Term Loan at least ten (10) Business Days prior to such
prepayment, and (ii) pays, on the date of such prepayment (a) all outstanding principal with respect to the Term Loan, plus accrued and unpaid interest thereon, (b) the Final Payment, (c) the Term Loan Termination Fee and
(d) all other sums, including Bank Expenses, if any, that shall have become due and payable hereunder in connection with the Term Loan. 

 2.2 Intentionally Omitted. 

2.3 Payment of Interest on the Credit Extensions. 
 (a) Interest Rate. Subject to Section 2.3(b), the principal amount outstanding under the Term Loan shall accrue interest at a per annum rate equal to two and three quarters percentage points
(2.75%) above the Prime Rate, fixed on the Funding Date of the Term Loan, which interest shall be payable monthly. 
 (b)
Default Rate. Immediately upon the occurrence and during the continuance of an Event of Default, Obligations shall bear interest at a rate per annum which is five percentage points (5.0%) above the rate that is otherwise applicable
thereto (the “Default Rate”). Fees and expenses which are required to be paid by Borrower pursuant to the Loan Documents (including, without limitation, Bank Expenses) but are not paid when due shall bear interest until paid at a
rate equal to the highest rate applicable to the Obligations. Payment or acceptance of the increased interest rate provided in this Section 2.3(b) is not a permitted alternative to timely payment and shall not constitute a waiver of any Event
of Default or otherwise prejudice or limit any rights or remedies of Bank. 
 (c) Intentionally Omitted. 

(d) Intentionally Omitted. 
 (e) Payment; Interest Computation. Interest is payable monthly on the first (1st) calendar day of each month and shall be computed on the basis of a 360-day year for the actual number of days
elapsed. In computing interest, (i) all payments received after 12:00 p.m. Pacific time on any day shall be deemed received at the opening of business on the next Business Day, and (ii) the date of the making of any Credit Extension shall
be included and the date of payment shall be excluded; provided, however, that if any Credit Extension is repaid on the same day on which it is made, such day shall be included in computing interest on such Credit Extension. 

2.4 Fees. Borrower shall pay to Bank: 
 (a) Commitment Fee. A fully earned, non-refundable commitment fee of [****], on the Effective Date; 
 (b) Final Payment. The Final Payment, when due hereunder; 
 (c) Term
Loan Termination Fee. The Term Loan Termination Fee, when due pursuant to the terms of Section 2.1.1(c). 
 (d) Bank
Expenses. All reasonable Bank Expenses (including reasonable attorneys’ fees and expenses for documentation and negotiation of this Agreement incurred through and after the Effective Date, when due (or, if no stated due date, when incurred
and upon demand by Bank) less [****] as credit for a good faith deposit prepaid by Borrower; and 
 (e) Fees Fully
Earned. Unless otherwise provided in this Agreement or in a separate writing by Bank, Borrower shall not be entitled to any credit, rebate, or repayment of any fees earned by Bank pursuant to this Agreement notwithstanding any termination of
this Agreement or the suspension or termination of Bank’s obligation to make loans and advances hereunder. Bank may deduct amounts owing by Borrower under the clauses of this Section 2.4 pursuant to the terms of Section 2.5(c). Bank
shall provide Borrower written notice of deductions made from the Designated Deposit Account pursuant to the terms of the clauses of this Section 2.4. 
 2.5 Payments; Application of Payments; Debit of Accounts. 
 (a) All payments
to be made by Borrower under any Loan Document shall be made in immediately available funds in Dollars, without setoff or counterclaim, before 12:00 p.m. Pacific time on the date when due. Payments of principal and/or interest received after 12:00
p.m. Pacific time are considered received at the opening of business on the next Business Day. When a payment is due on a day that is not a Business Day, the payment shall be due the next Business Day, and additional fees or interest, as applicable,
shall continue to accrue until paid. 
 [****] Certain information has been omitted and filed separately with the Commission. Confidential
treatment has been requested with respect to the omitted portions. 

  
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 (b) Bank has the exclusive right to determine the order and manner in which all payments
with respect to the Obligations may be applied. Borrower shall have no right to specify the order or the accounts to which Bank shall allocate or apply any payments required to be made by Borrower to Bank or otherwise received by Bank under this
Agreement when any such allocation or application is not specified elsewhere in this Agreement. 
 (c) Bank may debit any of
Borrower’s deposit accounts, including the Designated Deposit Account, for principal and interest payments or any other amounts Borrower owes Bank when due. These debits shall not constitute a set-off. 

2.6 Withholding. Payments received by Bank from Borrower under this Agreement will be made free and clear of and without deduction
for any and all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed by any Governmental Authority (including any interest, additions to tax or penalties applicable thereto).
Specifically, however, if at any time any Governmental Authority, applicable law, regulation or international agreement requires Borrower to make any withholding or deduction from any such payment or other sum payable hereunder to Bank, Borrower
hereby covenants and agrees that the amount due from Borrower with respect to such payment or other sum payable hereunder will be increased to the extent necessary to ensure that, after the making of such required withholding or deduction, Bank
receives a net sum equal to the sum which it would have received had no withholding or deduction been required, and Borrower shall pay the full amount withheld or deducted to the relevant Governmental Authority. Borrower will, upon request, furnish
Bank with proof reasonably satisfactory to Bank indicating that Borrower has made such withholding payment; provided, however, that Borrower need not make any withholding payment if the amount or validity of such withholding payment is contested in
good faith by appropriate and timely proceedings and as to which payment in full is bonded or reserved against by Borrower. The agreements and obligations of Borrower contained in this Section 2.6 shall survive the termination of this
Agreement. 
 3 CONDITIONS OF LOANS 
 3.1 Conditions Precedent to Credit Extension. Bank’s obligation to make the Credit Extension is subject to the condition precedent that Bank shall have received, in form and substance
satisfactory to Bank, such documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate, including, without limitation: 
 (a) duly executed original signatures to the Loan Documents; 
 (b) duly executed
original signatures to the Warrant; 
 (c) duly executed original signatures to the Control Agreement(s) for accounts maintained
outside Bank with aggregate balances in excess of [****], if any; 
 (d) duly executed original signatures to the Secured
Guaranty Documents; 
 (e) the Operating Documents and long-form good standing certificates of Borrower and its Subsidiaries
certified by the Secretary of State (or equivalent agency) of Borrower’s and such Subsidiaries’ jurisdiction of organization or formation and each jurisdiction in which Borrower and each Subsidiary is qualified to conduct business, each as
of a date no earlier than thirty (30) days prior to the Effective Date; 
 (f) duly executed original signatures to the
completed Borrowing Resolutions for Borrower and Guarantor; 
 (g) copies, dated as of a recent date, of financing statement
searches, as Bank may request, accompanied by written evidence (including any UCC termination statements) that the Liens indicated in any such financing statements either constitute Permitted Liens or have been or, in connection with the initial
Credit Extension, will be terminated or released; 
 [****] Certain information has been omitted and filed separately with the Commission.
Confidential treatment has been requested with respect to the omitted portions. 

  
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 (h) the Perfection Certificate of Borrower, together with the duly executed original
signature thereto; 
 (i) evidence satisfactory to Bank that the insurance policies and endorsements required by
Section 6.5 hereof are in full force and effect, together with appropriate evidence showing lender loss payable and/or additional insured clauses or endorsements in favor of Bank; 

(j) payment of the fees and Bank Expenses then due as specified in Section 2.5 hereof; 

(k) a landlord’s consent in favor of Bank for Borrower’s Newark, CA location by the respective landlord thereof, together with
the duly executed original signatures thereto; 
 (l) a bailee’s waiver in favor of Bank for each U.S. location where
Borrower maintains property with a third party with a value of greater [****], by each such third party, together with the duly executed original signatures thereto; 
 (m) the representations and warranties in this Agreement shall be true, accurate, and complete in all material respects on the Funding Date of the Credit Extension; and 

(n) Bank determines to its satisfaction that there has not been a Material Adverse Change. 

3.2 Covenant to Deliver. Borrower agrees to deliver to Bank each item required to be delivered to Bank under this Agreement as a
condition precedent to the Credit Extension. Borrower expressly agrees that a Credit Extension made prior to the receipt by Bank of any such item shall not constitute a waiver by Bank of Borrower’s obligation to deliver such item, and the
making of any Credit Extension in the absence of a required item shall be in Bank’s sole discretion. 
 4 CREATION OF
SECURITY INTEREST  
 4.1 Grant of Security Interest. Borrower hereby grants Bank, to
secure the payment and performance in full of all of the Obligations, a continuing security interest in, and pledges to Bank, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products
thereof. 
 Borrower acknowledges that it previously has entered, and/or may in the future enter, into Bank Services Agreements
with Bank. Regardless of the terms of any Bank Services Agreement, Borrower agrees that any amounts Borrower owes Bank thereunder shall be deemed to be Obligations hereunder and that it is the intent of Borrower and Bank to have all such Obligations
secured by the first priority perfected security interest in the Collateral granted herein (subject only to Permitted Liens that are permitted pursuant to the terms of this Agreement to have superior priority to Bank’s Lien in this Agreement).

 If this Agreement is terminated, Bank’s Lien in the Collateral shall continue until the Obligations (other than inchoate
indemnity obligations) are repaid in full in cash. Upon payment in full in cash of the Obligations (other than inchoate indemnity obligations) and at such time as Bank’s obligation to make Credit Extensions has terminated, Bank shall, at the
sole cost and expense of Borrower, release its Liens in the Collateral and all rights therein shall revert to Borrower. In the event (x) all Obligations (other than inchoate indemnity obligations), except for Bank Services, are satisfied in
full, and (y) this Agreement is terminated, Bank shall terminate the security interest granted herein upon Borrower providing cash collateral acceptable to Bank in its good faith business judgment for Bank Services, if any. In the event such
Bank Services consist of outstanding Letters of Credit, Borrower shall provide to Bank cash collateral in an amount equal to (x) if such Letters of Credit are denominated in Dollars, then at least one hundred five percent (105.0%); and
(y) if such Letters of Credit are denominated in a Foreign Currency, then at least one hundred ten percent (110.0%), of the Dollar Equivalent of the face amount of all such Letters of Credit plus all interest, fees, and costs due or to become
due in connection therewith (as estimated by Bank in its business judgment), to secure all of the Obligations relating to such Letters of Credit. 
 [****] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
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 4.2 Priority of Security Interest. Borrower represents, warrants, and covenants that
the security interest granted herein is and shall at all times continue to be a first priority perfected security interest in the Collateral (subject only to Permitted Liens that are permitted pursuant to the terms of this Agreement to have superior
priority to Bank’s Lien under this Agreement). If Borrower shall acquire a commercial tort claim, Borrower shall promptly notify Bank in a writing signed by Borrower of the general details thereof and grant to Bank in such writing a security
interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to Bank. 
 4.3 Authorization to File Financing Statements. Borrower hereby authorizes Bank to file financing statements, without notice to Borrower, with all appropriate jurisdictions to perfect or protect
Bank’s interest or rights hereunder, including a notice that any disposition of the Collateral, by either Borrower or any other Person, shall be deemed to violate the rights of Bank under the Code. Such financing statements may indicate the
Collateral as “all assets of the Debtor” or words of similar effect, or as being of an equal or lesser scope, or with greater detail, all in Bank’s discretion. 
 5 REPRESENTATIONS AND WARRANTIES 
 Borrower represents and warrants
as follows: 
 5.1 Due Organization, Authorization; Power and Authority. Borrower is duly existing and in good standing
as a Registered Organization in its jurisdiction of formation and is qualified and licensed to do business and is in good standing in any jurisdiction in which the conduct of its business or its ownership of property requires that it be qualified
except where the failure to do so could not reasonably be expected to have a material adverse effect on Borrower’s business. In connection with this Agreement, Borrower has delivered to Bank a completed certificate signed by Borrower, entitled
“Perfection Certificate”. Borrower represents and warrants to Bank that (a) Borrower’s exact legal name is that indicated on the Perfection Certificate and on the signature page hereof; (b) Borrower is an organization of the
type and is organized in the jurisdiction set forth in the Perfection Certificate; (c) the Perfection Certificate accurately sets forth Borrower’s organizational identification number or accurately states that Borrower has none;
(d) the Perfection Certificate accurately sets forth Borrower’s place of business, or, if more than one, its chief executive office as well as Borrower’s mailing address (if different than its chief executive office);
(e) Borrower (and each of its predecessors) has not, in the past five (5) years, changed its jurisdiction of formation, organizational structure or type, or any organizational number assigned by its jurisdiction; and (f) all other
information set forth on the Perfection Certificate pertaining to Borrower and each of its Subsidiaries is accurate and complete (it being understood and agreed that Borrower may from time to time update certain information in the Perfection
Certificate after the Effective Date to the extent permitted by one or more specific provisions in this Agreement). If Borrower is not now a Registered Organization but later becomes one, Borrower shall promptly notify Bank of such occurrence and
provide Bank with Borrower’s organizational identification number. 
 The execution, delivery and performance by Borrower
of the Loan Documents to which it is a party have been duly authorized, and do not (i) conflict with any of Borrower’s organizational documents, (ii) contravene, conflict with, constitute a default under or violate any material
Requirement of Law, (iii) contravene, conflict or violate any applicable order, writ, judgment, injunction, decree, determination or award of any Governmental Authority by which Borrower or any of its Subsidiaries or any of their property or
assets may be bound or affected, (iv) require any action by, filing, registration, or qualification with, or Governmental Approval from, any Governmental Authority (except such Governmental Approvals which have already been obtained and are in
full force and effect (or are being obtained pursuant to Section 6.1(b))) or (v) conflict with, contravene, constitute a default or breach under, or result in or permit the termination or acceleration of, any material agreement by which
Borrower is bound. Borrower is not in default under any agreement to which it is a party or by which it is bound in which the default could reasonably be expected to have a material adverse effect on Borrower’s business. 

5.2 Collateral. Except as noted on the Perfection Certificate, Borrower has good title to, rights in, and the power to transfer
each item of the Collateral upon which it purports to grant a Lien hereunder, free and clear 

  
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of any and all Liens except Permitted Liens. Borrower has no Collateral Accounts at or with any bank or financial institution other than Bank or Bank’s Affiliates except for the Collateral
Accounts described in the Perfection Certificate delivered to Bank in connection herewith and which Borrower has taken such actions as are necessary to give Bank a perfected security interest therein, pursuant to the term of Section 6.6(b). The
Accounts are bona fide, existing obligations of the Account Debtors. 
 The Collateral is not in the possession of any third
party bailee (such as a warehouse) except as otherwise provided in the Perfection Certificate. None of the components of the Collateral shall be maintained at locations other than as provided in the Perfection Certificate or as permitted pursuant to
Section 7.2. 
 Borrower is the sole owner of the Intellectual Property which it owns or purports to own except for
(a) licenses permitted by Section 7.1 hereof; (b) over-the-counter software that is commercially available to the public, and (c) material Intellectual Property licensed to Borrower and noted on the Perfection Certificate. Each
Patent which Borrower owns or purports to own and which is material to Borrower’s business is valid and enforceable, and no part of the Intellectual Property which Borrower owns or purports to own and which is material to Borrower’s
business has been judged invalid or unenforceable, in whole or in part. To the best of Borrower’s knowledge, no claim has been made that any part of the Intellectual Property violates the rights of any third party except to the extent such
claim would not reasonably be expected to have a material adverse effect on Borrower’s business. 
 Except as noted on the
Perfection Certificate, Borrower is not a party to, nor is it bound by, any Restricted License. 
 5.3 Litigation. There
are no actions or proceedings pending or, to the knowledge of any Responsible Officer, threatened in writing by or against Borrower or any of its Subsidiaries involving more than, individually or in the aggregate, [****]. 

5.4 Financial Statements; Financial Condition. All consolidated financial statements for Borrower and any of its Subsidiaries
delivered to Bank fairly present in all material respects Borrower’s consolidated financial condition and Borrower’s consolidated results of operations. Since the date of the most recent financial statements submitted to Bank, there has
not been any deterioration in Borrower’s consolidated financial condition that is both material and materially inconsistent with Borrower’s projections delivered to Bank. 

5.5 Solvency. The fair salable value of Borrower’s consolidated assets (including goodwill minus disposition costs) exceeds
the fair value of Borrower’s liabilities; Borrower is not left with unreasonably small capital after the transactions in this Agreement; and Borrower is able to pay its debts (including trade debts) as they mature. 

5.6 Regulatory Compliance. Borrower is not an “investment company” or a company “controlled” by an
“investment company” under the Investment Company Act of 1940, as amended. Borrower is not engaged as one of its important activities in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of
Governors). Borrower (a) has complied in all material respects with all Requirements of Law, and (b) has not violated any Requirements of Law the violation of which could reasonably be expected to have a material adverse effect on its
business. None of Borrower’s or any of its Subsidiaries’ properties or assets has been used by Borrower or any Subsidiary or, to the best of Borrower’s knowledge, by previous Persons, in disposing, producing, storing, treating, or
transporting any hazardous substance other than legally. Borrower and each of its Subsidiaries have obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all Government Authorities
that are necessary to continue their respective businesses as currently conducted. 
 5.7 Subsidiaries; Investments.
Borrower does not own any stock, partnership, or other ownership interest or other equity securities except for Permitted Investments. 
 5.8 Tax Returns and Payments; Pension Contributions. Borrower has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes,
assessments, deposits and contributions owed by Borrower except (a) to the extent such taxes are being contested in good faith by 
 [****]
Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
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appropriate proceedings promptly instituted and diligently conducted, so long as such reserve or other appropriate provision, if any, as shall be required in conformity with GAAP shall have been
made therefor, or (b) if such taxes, assessments, deposits and contributions do not, individually or in the aggregate, exceed [****]. 
 To the extent Borrower defers payment of any contested taxes, Borrower shall (i) notify Bank in writing of the commencement of, and any material development in, the proceedings, and (ii) post
bonds or take any other steps required to prevent the governmental authority levying such contested taxes from obtaining a Lien upon any of the Collateral that is other than a “Permitted Lien.” Borrower is unaware of any claims or
adjustments proposed for any of Borrower’s prior tax years which could result in additional taxes becoming due and payable by Borrower in excess of [****]. Borrower has paid all amounts necessary to fund all present pension, profit sharing and
deferred compensation plans in accordance with their terms, and Borrower has not withdrawn from participation in, and has not permitted partial or complete termination of, or permitted the occurrence of any other event with respect to, any such plan
which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 

5.9 Use of Proceeds. Borrower shall use the proceeds of the Credit Extensions solely as working capital, and to fund its general
business requirements and not for personal, family, household or agricultural purposes. 
 5.10 Full Disclosure. No
written representation, warranty or other statement of Borrower in any certificate or written statement given to Bank, as of the date such representation, warranty, or other statement was made, taken together with all such written certificates and
written statements given to Bank, contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained in the certificates or statements not misleading (it being recognized by Bank that the
projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected
or forecasted results). 
 5.11 Definition of “Knowledge.” For purposes of the Loan Documents, whenever a
representation or warranty is made to Borrower’s knowledge or awareness, to the “best of” Borrower’s knowledge, or with a similar qualification, knowledge or awareness means the actual knowledge, after reasonable investigation,
of any Responsible Officer. 
 6 AFFIRMATIVE COVENANTS 

Borrower shall do all of the following for so long as this Agreement remains in effect or any Obligations remain outstanding: 

6.1 Government Compliance. 
 (a) Maintain its and all its Subsidiaries’ legal existence and good standing in their respective jurisdictions of formation and maintain qualification in each jurisdiction in which the failure to so
qualify would reasonably be expected to have a material adverse effect on Borrower’s business or operations. Borrower shall comply, and have each Subsidiary comply, in all material respects, with all laws, ordinances and regulations to which it
is subject the failure to so comply would reasonably be expected to have a material adverse effect on Borrower’s business or operations. 
 (b) Obtain all of the Governmental Approvals necessary for the performance by Borrower of its obligations under the Loan Documents to which it is a party and the grant of a security interest to Bank in
all of the Collateral. Borrower shall promptly provide copies of any such obtained Governmental Approvals to Bank. 
 [****] Certain information
has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
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 6.2 Financial Statements, Reports, Certificates. Provide Bank with the following:

 (a) Monthly Financial Statements. As soon as available, but no later than [****] days after the last day of each
month, a company prepared consolidated balance sheet and income statement covering Borrower’s consolidated operations for such month certified by a Responsible Officer and in a form reasonably acceptable to Bank, e.g. Borrower’s management
reports prepared in its ordinary course of business (the “Monthly Financial Statements”); 
 (b) Monthly
Compliance Certificate. Within [****] days after the last day of each month and together with the Monthly Financial Statements, a duly completed Compliance Certificate signed by a Responsible Officer, certifying that as of the end of such
month, Borrower was in full compliance with all of the terms and conditions of this Agreement, and setting forth calculations showing compliance with the financial covenants set forth in this Agreement and such other information as Bank may
reasonably request; 
 (c) Annual Operating Budget and Financial Projections. Within [****] days after approval by
Borrower’s Board of Directors (the “Board”), annual operating budgets (including income statements, balance sheets and cash flow statements, by month) for the upcoming fiscal year of Borrower, and concurrent therewith annual
financial projections for the following fiscal year (on a quarterly basis), together with any related business forecasts used in the preparation of such annual financial projections; 

(d) Annual Audited Financial Statements. As soon as available, but no later than [****] days after the last day of
Borrower’s fiscal year, audited consolidated financial statements prepared under GAAP, consistently applied, together with an unqualified opinion on the financial statements from an independent certified public accounting firm reasonably
acceptable to Bank; 
 (e) Other Statements. Within [****] days of delivery, copies of all statements, reports and
notices made available to Borrower’s security holders or to any holders of Subordinated Debt; 
 (f) SEC Filings.
Within [****] days of filing, copies of all periodic and other reports, proxy statements and other materials filed by Borrower with the SEC, any Governmental Authority succeeding to any or all of the functions of the SEC or with any national
securities exchange, or distributed to its shareholders, as the case may be. Documents required to be delivered pursuant to the terms hereof (to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered
electronically and if so delivered, shall be deemed to have been delivered on the date on which Borrower posts such documents, or provides a link thereto, on Borrower’s website on the Internet at Borrower’s website address; 

(g) Legal Action Notice. A prompt report of any legal actions pending or threatened in writing against Borrower or any of its
Subsidiaries that could result in damages or costs to Borrower or any of its Subsidiaries of, individually or in the aggregate, [****] or more; and 
 (h) Other Financial Information. Other financial information reasonably requested by Bank. 
 6.3 Inventory; Returns. Keep all Inventory in good and marketable condition, free from material defects. Returns and allowances between Borrower and its Account Debtors shall follow Borrower’s
customary practices as they exist at the Effective Date. Borrower must promptly notify Bank of all returns, recoveries, disputes and claims that involve more than [****]. 
 6.4 Taxes; Pensions. Timely file, and require each of its Subsidiaries to timely file, all required tax returns and reports and timely pay, and require each of its Subsidiaries to timely pay, all
foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower and each of its Subsidiaries, except for deferred payment of any taxes contested pursuant to the terms of Section 5.8 hereof, and shall deliver to
Bank, on demand, appropriate certificates attesting to such payments, and pay all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms. 

[****] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the
omitted portions. 

  
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 6.5 Insurance. 

(a) Keep its business and the Collateral insured for risks and in amounts standard for companies in Borrower’s industry and location.
Insurance policies shall be in a form, with financially sound and reputable insurance companies that are not Affiliates of Borrower, and in amounts that are satisfactory to Bank; provided, however, that the insurance policies in effect as of the
Effective Date and summarized in Annex I hereto will be satisfactory to Bank for so long as an Event of Default has not occurred and is not continuing. [****] 
 (b) Ensure that proceeds payable under any property policy are, at Bank’s option, payable to Bank on account of the Obligations. Notwithstanding the foregoing, (a) so long as no Event of Default
has occurred and is continuing, Borrower shall have the option of applying the proceeds of any casualty policy up to [****] with respect to any loss, but not exceeding [****] in the aggregate for all losses under all casualty policies in any one
year, toward the replacement or repair of destroyed or damaged property; provided that any such replaced or repaired property (i) shall be of equal or like value as the replaced or repaired Collateral and (ii) shall be deemed Collateral in
which Bank has been granted a first priority security interest, and (b) after the occurrence and during the continuance of an Event of Default, all proceeds payable under such casualty policy shall, at the option of Bank, be payable to Bank on
account of the Obligations. 
 (c) At Bank’s request, Borrower shall deliver certified copies of insurance policies and
evidence of all premium payments. Each provider of any such insurance required under this Section 6.5 shall agree, by endorsement upon the policy or policies issued by it or by independent instruments furnished to Bank, that it will give Bank
thirty (30) days prior written notice before any such policy or policies shall be materially altered or canceled. If Borrower fails to obtain insurance as required under this Section 6.5 or to pay any amount or furnish any required proof
of payment to third persons and Bank, Bank may make all or part of such payment or obtain such insurance policies required in this Section 6.5, and take any action under the policies Bank deems prudent. 

6.6 Operating Accounts. 
 (a) Maintain its and Guarantor’s primary operating and other deposit accounts and all its securities accounts with Bank and Bank’s Affiliates or with respect to securities accounts held through
SVB Asset Management, US Bank, acting as custodian. 
 (b) Provide Bank five (5) days prior written notice before
establishing any Collateral Account at or with any bank or financial institution other than Bank or Bank’s Affiliates or with respect to securities accounts held through SVB Asset Management, US Bank, acting as custodian. For each Collateral
Account that Borrower or Guarantor at any time maintains (other than with respect to accounts maintained outside the Bank with aggregate balances not to exceed [****] Borrower and/or Guarantor, as applicable, shall cause the applicable bank or
financial institution (other than Bank) at or with which any Collateral Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Bank’s Lien in such
Collateral Account in accordance with the terms hereunder which Control Agreement may not be terminated without the prior written consent of Bank. The provisions of the previous sentence shall not apply to deposit accounts exclusively used for
payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of Borrower’s or Guarantor’s employees and identified to Bank by Borrower and/or Guarantor as such. 

6.7 Financial Covenants. Borrower shall maintain the financial covenants and ratios set forth on Annex II attached hereto.

 6.8 Protection of Intellectual Property Rights. 
 [****] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -9-

 (a) Acting in its reasonable but sole discretion, Borrower will [****]. 

(b) Provide written notice to Bank within thirty (30) days of [****]. 

6.9 Litigation Cooperation. From the date hereof and continuing through the termination of this Agreement, make available to Bank,
without expense to Bank, Borrower and its officers, employees and agents and Borrower’s books and records, to the extent that Bank may deem them reasonably necessary to prosecute or defend any third-party suit or proceeding instituted by or
against Bank with respect to any Collateral or relating to Borrower. 
 6.10 Access to Collateral; Books and Records.
Allow Bank, or its agents, at reasonable times, on [****] Business Day’s notice (provided no notice is required if an Event of Default has occurred and is continuing), to inspect the Collateral and audit and copy Borrower’s Books.
Such inspections or audits shall be conducted no more often than once every [****] months unless an Event of Default has occurred and is continuing in which case such inspections and audits shall occur as often as Bank shall determine is
necessary. The foregoing inspections and audits shall be at Borrower’s expense, and the charge therefor shall be [****] per person per day (or such higher amount as shall represent Bank’s then-current standard charge for the same), plus
reasonable out-of-pocket expenses. In the event Borrower and Bank schedule an audit more than ten (10) days in advance [****] 
 6.11 Formation or Acquisition of Subsidiaries. Notwithstanding and without limiting the negative covenants contained in Sections 7.3 and 7.7 hereof, at the time that Borrower forms any direct or
indirect Subsidiary or acquires any direct or indirect Subsidiary after the Effective Date, Borrower shall (a) cause such new Subsidiary to provide to Bank a joinder to the Loan Agreement to cause such Subsidiary to become a co-borrower
hereunder, together with such appropriate financing statements and/or Control Agreements, all in form and substance satisfactory to Bank (including being sufficient to grant Bank a first priority Lien (subject to Permitted Liens) in and to the
assets of such newly formed or acquired Subsidiary), (b) provide to Bank appropriate certificates and powers and financing statements, pledging all of the direct or beneficial ownership interest in such new Subsidiary, in form and substance
satisfactory to Bank, and (c) provide to Bank all other documentation in form and substance satisfactory to Bank, including one or more opinions of counsel satisfactory to Bank, which in its opinion is appropriate with respect to the execution
and delivery of the applicable documentation referred to above. Any document, agreement, or instrument executed or issued pursuant to this Section 6.11 shall be a Loan Document. 

6.12 Further Assurances. Execute any further instruments and take further action as Bank reasonably requests to perfect or
continue Bank’s Lien in the Collateral or to effect the purposes of this Agreement. Deliver to Bank, within five (5) days after the same are sent or received, copies of all correspondence, reports, documents and other filings with any
Governmental Authority regarding compliance with or maintenance of Governmental Approvals or Requirements of Law that could reasonably be expected to have a material effect on any of the Governmental Approvals or otherwise on the operations of
Borrower or any of its Subsidiaries. 
 7 NEGATIVE COVENANTS 

For so long as this Agreement remains in effect or any Obligations remain outstanding, Borrower shall not do any of the following without
Bank’s prior written consent: 
 7.1 Dispositions. Convey, sell, lease, transfer, assign, or otherwise dispose of
(collectively, “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, except for [****]. 
 [****] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -10-

 7.2 Changes in Business, Management, Control or Business Locations. (a) Engage
in or permit any of its Subsidiaries to engage in any business other than the businesses currently engaged in by Borrower and such Subsidiary, as applicable, or reasonably related thereto; (b) liquidate or dissolve; or (c) (i) fail to
provide notice to Bank of any Key Person departing from or ceasing to be employed by Borrower within five (5) days after his or her departure from Borrower; or (ii) [****]. 

Borrower shall not, without at least thirty (30) days prior written notice to Bank: [****]. 

7.3 Mergers or Acquisitions. Except for Permitted Acquisitions, merge or consolidate, or permit any of its Subsidiaries to merge
or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person (including, without limitation, by the formation of any Subsidiary). A
Subsidiary may merge or consolidate into another Subsidiary or into Borrower. 
 7.4 Indebtedness. Create, incur, assume,
or be liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness. 
 7.5
Encumbrance. Create, incur, allow, or suffer any Lien on any of its property, or assign or convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, permit any
Collateral not to be subject to the first priority security interest granted herein, or enter into any agreement, document, instrument or other arrangement (except with or in favor of Bank) with any Person which directly or indirectly prohibits or
has the effect of prohibiting Borrower or any Subsidiary from assigning, mortgaging, pledging, granting a security interest in or upon, or encumbering any of Borrower’s or any Subsidiary’s Intellectual Property, except as is otherwise
permitted in Section 7.1 hereof and the definition of “Permitted Liens” herein. 
 7.6 Maintenance of
Collateral Accounts. Maintain any Collateral Account except pursuant to the terms of Section 6.6(b) hereof. 

7.7 Distributions; Investments. (a) [****]; 
 [****] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -11-

 or (b) directly or indirectly make any Investment (including, without limitation, by the formation of any
Subsidiary) other than Permitted Investments, or permit any of its Subsidiaries to do so. 
 7.8 Transactions with
Affiliates. Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower, except for transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable terms that
are no less favorable to Borrower than would be obtained in an arm’s length transaction with a non-affiliated Person. 

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

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

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

8.1 Payment Default. Borrower fails to (a) make any payment of principal or interest on any Credit Extension when due, or
(b) pay any other Obligations within [****] Business Days after such Obligations are due and payable (which three (3) Business Day cure period shall not apply to payments due on the Term Loan Maturity Date). During the cure period,
the failure to make or pay any payment specified under clause (b) hereunder is not an Event of Default (but no Credit Extension will be made during the cure period); 
 8.2 Covenant Default. 
 (a) Borrower fails or neglects to perform any
obligation in Sections 6.2, 6.4, 6.5, 6.6, 6.7 (as modified by Annex II hereto), 6.8, 6.10 or 6.11 or violates any covenant in Section 7; or 
 (b) Borrower fails or neglects to perform, keep, or observe any other term, provision, condition, covenant or agreement contained in this Agreement or any Loan Documents, and as to any default (other than
those specified in this Section 8) under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure the default within ten (10) days after the occurrence thereof; provided, however, that if the
default cannot by its nature be cured within the ten (10) day period or cannot after diligent attempts by Borrower be cured within such ten (10) day period, and such default is likely to be cured within a reasonable time, then Borrower
shall have an additional period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, 
 [****] Certain
information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
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and within such reasonable time period the failure to cure the default shall not be deemed an Event of Default (but no Credit Extensions shall be made during such cure period). Cure periods
provided under this section shall not apply to any covenants set forth in clause (a) above; 
 8.3 [****]

 8.4 Attachment; Levy; Restraint on Business. 
 (a) (i) The service of process seeking to attach, by trustee or similar process, any funds of Borrower or of any entity under the control of Borrower (including a Subsidiary) in excess of [****], or
(ii) a notice of lien or levy is filed against any of Borrower’s assets by any Governmental Authority, and the same under subclauses (i) and (ii) hereof are not, within ten (10) Business Days after the occurrence thereof,
discharged or stayed (whether through the posting of a bond or otherwise); provided, however, no Credit Extensions shall be made during any ten (10) Business Day cure period; or 

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

8.5 Insolvency. (a) Borrower or any of its Subsidiaries is unable to pay its debts (including trade debts) as they become due
or otherwise becomes insolvent; (b) Borrower or any of its Subsidiaries begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against Borrower or any of its Subsidiaries and is not dismissed or stayed within forty-five
(45) days (but no Credit Extensions shall be made while any of the conditions described in clause (a) exist and/or until any Insolvency Proceeding is dismissed); 
 8.6 Other Agreements. There is, under any agreement to which Borrower or any Guarantor is a party with a third party or parties, (a) any default resulting in a right by such third party or
parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount individually or in the aggregate in excess of [****]; or (b) any breach or default by Borrower or Guarantor, the result of which could have a
material adverse effect on Borrower’s or any Guarantor’s business; 
 8.7 Judgments; Penalties. One or more
fines, penalties or final judgments, orders or decrees for the payment of money in an amount, individually or in the aggregate, of at least [****] (not covered by independent third-party insurance as to which liability has been accepted by such
insurance carrier) shall be rendered against Borrower by any Governmental Authority, and the same are not, within [****] after the entry, assessment or issuance thereof, discharged, satisfied, or paid, or after execution thereof, stayed or bonded
pending appeal, or such judgments are not discharged prior to the expiration of any such stay (provided that no Credit Extensions will be made prior to the satisfaction, payment, discharge, stay, or bonding of such fine, penalty, judgment, order or
decree); 
 8.8 Misrepresentations. Borrower or any Person acting for Borrower makes any representation, warranty, or
other statement now or later in this Agreement, any Loan Document or in any writing delivered to Bank or to induce Bank to enter this Agreement or any Loan Document, and such representation, warranty, or other statement is incorrect in any material
respect when made; 
 8.9 Subordinated Debt. Any document, instrument, or agreement evidencing any Subordinated Debt
shall for any reason be revoked or invalidated or otherwise cease to be in full force and effect, any Person shall be in breach thereof or contest in any manner the validity or enforceability thereof or deny that it has any further liability or
obligation thereunder, or the Obligations shall for any reason be subordinated or shall not have the priority contemplated by this Agreement; 
 8.10 Governmental Approvals. Any Governmental Approval necessary to allow the Borrower to conduct its business shall have been (a) revoked, rescinded, suspended, modified in an adverse manner
or not renewed in the ordinary course for a full term or (b) subject to any decision by a Governmental Authority that designates a hearing with respect to any applications for renewal of any of such Governmental Approval or that 

[****] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the
omitted portions. 

  
 -13-

 
could result in the Governmental Authority taking any of the actions described in clause (a) above, and such decision or such revocation, rescission, suspension, modification or non-renewal
(i) cause, or could reasonably be expected to cause, a Material Adverse Change, or (ii) adversely affects the legal qualifications of Borrower or any of its Subsidiaries to hold such Governmental Approval in any applicable jurisdiction and
such revocation, rescission, suspension, modification or non-renewal could reasonably be expected to affect the status of or legal qualifications of Borrower or any of its Subsidiaries to hold any Governmental Approval in any other jurisdiction; or

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

 9.1 Rights and Remedies. Upon the occurrence and during the continuance of an Event of Default, Bank may, without
notice or demand, do any or all of the following: 
 (a) declare all Obligations immediately due and payable (but if an Event of
Default described in Section 8.5 occurs all Obligations are immediately due and payable without any action by Bank); 
 (b)
stop advancing money or extending credit for Borrower’s benefit under this Agreement or under any other agreement between Borrower and Bank; 
 (c) demand that Borrower (i) deposit cash with Bank in an amount equal to one hundred five percent (105%) (one hundred ten percent (110%) for Letters of Credit denominated in a currency
other than U.S. Dollars) of the Dollar Equivalent of the aggregate face amount of all Letters of Credit remaining undrawn plus all interest, fees, and costs due in connection therewith, to secure all of the Obligations relating to such Letters of
Credit, as collateral security for the repayment of any future drawings under such Letters of Credit, and Borrower shall forthwith deposit and pay such amounts, and (ii) pay in advance all letter of credit fees scheduled to be paid or payable
over the remaining term of any Letters of Credit; 
 (d) terminate any FX Contracts; 

(e) verify the amount of, demand payment of and performance under, and collect any Accounts and General Intangibles, settle or adjust
disputes and claims directly with Account Debtors for amounts on terms and in any order that Bank considers advisable, and notify any Person owing Borrower money of Bank’s security interest in such funds; 

(f) make any payments and do any acts it considers necessary or reasonable to protect the Collateral and/or its security interest in the
Collateral. Borrower shall assemble the Collateral if Bank requests and make it available as Bank designates. Bank may enter premises where the Collateral is located, take and maintain possession of any part of the Collateral, and pay, purchase,
contest, or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Borrower grants Bank a license to enter and occupy any of its premises, without charge, to exercise any of Bank’s
rights or remedies; 
 (g) apply to the Obligations any (i) balances and deposits of Borrower it holds, or (ii) any
amount held by Bank owing to or for the credit or the account of Borrower; 
 (h) ship, reclaim, recover, store, finish,
maintain, repair, prepare for sale, advertise for sale, and sell the Collateral. Bank is hereby granted a non-exclusive, royalty-free license or other right to use, without charge, Borrower’s labels, Patents, Copyrights, mask works, rights of
use of any name, trade secrets, trade names, Trademarks, and advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with
Bank’s exercise of its rights under this Section, Borrower’s rights under all licenses and all franchise agreements inure to Bank’s benefit; 

  
 -14-

 (i) place a “hold” on any account maintained with Bank and/or deliver a notice of
exclusive control, any entitlement order, or other directions or instructions pursuant to any Control Agreement or similar agreements providing control of any Collateral; 
 (j) demand and receive possession of Borrower’s Books; and 
 (k) exercise all
rights and remedies available to Bank under the Loan Documents or at law or equity, including all remedies provided under the Code (including disposal of the Collateral pursuant to the terms thereof). 

9.2 Power of Attorney. Borrower hereby irrevocably appoints Bank as its lawful attorney-in-fact, exercisable upon the occurrence
and during the continuance of an Event of Default, to: (a) endorse Borrower’s name on any checks or other forms of payment or security; (b) sign Borrower’s name on any invoice or bill of lading for any Account or drafts against
Account Debtors; (c) settle and adjust disputes and claims about the Accounts directly with Account Debtors, for amounts and on terms Bank determines reasonable; (d) make, settle, and adjust all claims under Borrower’s insurance
policies; (e) pay, contest or settle any Lien, charge, encumbrance, security interest, and adverse claim in or to the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; and
(f) transfer the Collateral into the name of Bank or a third party as the Code permits. Borrower hereby appoints Bank as its lawful attorney-in-fact to sign Borrower’s name on any documents necessary to perfect or continue the perfection
of Bank’s security interest in the Collateral regardless of whether an Event of Default has occurred until all Obligations have been satisfied in full and Bank is under no further obligation to make Credit Extensions hereunder. Bank’s
foregoing appointment as Borrower’s attorney in fact, and all of Bank’s rights and powers, coupled with an interest, are irrevocable until all Obligations have been fully repaid and performed and Bank’s obligation to provide Credit
Extensions terminates. 
 9.3 Protective Payments. If Borrower fails to obtain the insurance called for by
Section 6.5 or fails to pay any premium thereon or fails to pay any other amount which Borrower is obligated to pay under this Agreement or any other Loan Document or which may be required to preserve the Collateral, Bank may obtain such
insurance or make such payment, and all amounts so paid by Bank are Bank Expenses and immediately due and payable, bearing interest at the then highest rate applicable to the Obligations, and secured by the Collateral. Bank will make reasonable
efforts to provide Borrower with notice of Bank obtaining such insurance at the time it is obtained or within a reasonable time thereafter. No payments by Bank are deemed an agreement to make similar payments in the future or Bank’s waiver of
any Event of Default. 
 9.4 Application of Payments and Proceeds Upon Default. If an Event of Default has occurred and
is continuing, Bank shall have the right to apply in any order any funds in its possession, whether from Borrower account balances, payments, proceeds realized as the result of any collection of Accounts or other disposition of the Collateral, or
otherwise, to the Obligations. Bank shall pay any surplus to Borrower by credit to the Designated Deposit Account or to other Persons legally entitled thereto; Borrower shall remain liable to Bank for any deficiency. If Bank, directly or indirectly,
enters into a deferred payment or other credit transaction with any purchaser at any sale of Collateral, Bank shall have the option, exercisable at any time, of either reducing the Obligations by the principal amount of the purchase price or
deferring the reduction of the Obligations until the actual receipt by Bank of cash therefor. 
 9.5 Bank’s Liability
for Collateral. So long as Bank complies with reasonable banking practices regarding the safekeeping of the Collateral in the possession or under the control of Bank, Bank shall not be liable or responsible for: (a) the safekeeping of the
Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or other Person. Borrower bears all risk of loss, damage or
destruction of the Collateral. 
 9.6 No Waiver; Remedies Cumulative. Bank’s failure, at any time or times, to
require strict performance by Borrower of any provision of this Agreement or any other Loan Document shall not waive, affect, or diminish any right of Bank thereafter to demand strict performance and compliance herewith or therewith. No waiver
hereunder shall be effective unless signed by the party granting the waiver and then is only effective for the specific instance and purpose for which it is given. Bank’s rights and remedies under this Agreement and the other Loan Documents are
cumulative. Bank has all rights and remedies provided under the Code, by law, or in equity. 

  
 -15-

 
Bank’s exercise of one right or remedy is not an election and shall not preclude Bank from exercising any other remedy under this Agreement or other remedy available at law or in equity, and
Bank’s waiver of any Event of Default is not a continuing waiver. Bank’s delay in exercising any remedy is not a waiver, election, or acquiescence. 
 9.7 Demand Waiver. Borrower waives demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement,
extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees held by Bank on which Borrower is liable. 
 10 NOTICES 
 All notices, consents, requests, approvals, demands, or
other communication by any party to this Agreement or any other Loan Document must be in writing and shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of actual receipt and three (3) Business Days after
deposit in the U.S. mail, first class, registered or certified mail return receipt requested, with proper postage prepaid; (b) upon transmission, when sent by electronic mail or facsimile transmission; (c) one (1) Business Day after
deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be notified and sent to the address, facsimile number, or email address
indicated below. Bank or Borrower may change its mailing or electronic mail address or facsimile number by giving the other party written notice thereof in accordance with the terms of this Section 10. 

 

			
	If to Borrower:	  	STEMCELLS, INC.
		  	7707 Gateway Blvd., Suite 140
		  	Newark, CA 94560
		  	Attn: Martin McGlynn - CEO
		  	Fax: (510) 456-####
		  	Email: xxxxxxxx@stemcellsinc.com
		
	With a copy to:	  	STEMCELLS, INC.
		  	7707 Gateway Blvd., Suite 140
		  	Newark, CA 94560
		  	Attn: Ken Stratton — General Counsel
		  	Fax: (510) 456-####
		  	Email: xxxxxxxx@stemcellsinc.com
		
	If to Bank:	  	Silicon Valley Bank
		  	555 Mission Street, Suite 900
		  	San Francisco, CA 94105
		  	Attn: David Sabow – Senior Relationship Manager
		  	Email: xxxxxxxx@svb.com

 11 CHOICE OF LAW, VENUE, JURY TRIAL WAIVER, AND JUDICIAL REFERENCE 

California law governs the Loan Documents without regard to principles of conflicts of law. Borrower and Bank each submit to the exclusive
jurisdiction of the State and Federal courts in Santa Clara County, California; provided, however, that nothing in this Agreement shall be deemed to operate to preclude Bank from bringing suit or taking other legal action in any other jurisdiction
to realize on the Collateral or any other security for the Obligations, or to enforce a judgment or other court order in favor of Bank. Borrower expressly submits and consents in advance to such jurisdiction in any action or suit commenced in any
such court, and Borrower hereby waives any objection that it may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate by
such court. Borrower hereby waives personal service of the summons, complaints, and other process issued in such action or suit and agrees that service of such summons, complaints, and other process may be made by registered or certified mail
addressed to Borrower at the address set forth in, or subsequently provided by Borrower in accordance with, Section 10 of this Agreement and that service so made shall be deemed completed upon the earlier to occur of Borrower’s actual
receipt thereof or three (3) days after deposit in the U.S. mails, proper postage prepaid. 

  
 -16-

 TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND BANK EACH WAIVE THEIR
RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL
INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL. 
 WITHOUT
INTENDING IN ANY WAY TO LIMIT THE PARTIES’ AGREEMENT TO WAIVE THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY, if the above waiver of the right to a trial by jury is not enforceable, the parties hereto agree that any and all disputes or controversies
of any nature between them arising at any time shall be decided by a reference to a private judge, mutually selected by the parties (or, if they cannot agree, by the Presiding Judge of the Santa Clara County, California Superior Court) appointed in
accordance with California Code of Civil Procedure Section 638 (or pursuant to comparable provisions of federal law if the dispute falls within the exclusive jurisdiction of the federal courts), sitting without a jury, in Santa Clara County,
California; and the parties hereby submit to the jurisdiction of such court. The reference proceedings shall be conducted pursuant to and in accordance with the provisions of California Code of Civil Procedure §§ 638 through 645.1,
inclusive. The private judge shall have the power, among others, to grant provisional relief, including without limitation, entering temporary restraining orders, issuing preliminary and permanent injunctions and appointing receivers. All such
proceedings shall be closed to the public and confidential and all records relating thereto shall be permanently sealed. If during the course of any dispute, a party desires to seek provisional relief, but a judge has not been appointed at that
point pursuant to the judicial reference procedures, then such party may apply to the Santa Clara County, California Superior Court for such relief. The proceeding before the private judge shall be conducted in the same manner as it would be before
a court under the rules of evidence applicable to judicial proceedings. The parties shall be entitled to discovery which shall be conducted in the same manner as it would be before a court under the rules of discovery applicable to judicial
proceedings. The private judge shall oversee discovery and may enforce all discovery rules and orders applicable to judicial proceedings in the same manner as a trial court judge. The parties agree that the selected or appointed private judge shall
have the power to decide all issues in the action or proceeding, whether of fact or of law, and shall report a statement of decision thereon pursuant to California Code of Civil Procedure § 644(a). Nothing in this paragraph shall limit the
right of any party at any time to exercise self-help remedies, foreclose against collateral, or obtain provisional remedies. The private judge shall also determine all issues relating to the applicability, interpretation, and enforceability of this
paragraph. 
 This Section 11 shall survive the termination of this Agreement. 

12 GENERAL PROVISIONS 
 12.1 Termination Prior to Term Loan Maturity Date; Termination Upon Satisfaction of the Obligations; Survival. All covenants, representations and warranties made in this Agreement continue in full
force until this Agreement has terminated pursuant to its terms and all Obligations have been satisfied. So long as Borrower has satisfied the Obligations (other than inchoate indemnity obligations, and any other obligations which, by their terms,
are to survive the termination of this Agreement, and any Obligations under Bank Services Agreements that are cash collateralized in accordance with Section 4.1 of this Agreement), this Agreement may be terminated prior to the Term Loan
Maturity Date by Borrower, effective three (3) Business Days after written notice of termination is given to Bank. This Agreement is terminable by Borrower upon thirty days’ prior written notice at any time after the Obligations have been
paid in full (other than inchoate indemnity obligations) and Bank’s obligation to make Credit Extensions has terminated. Those obligations that are expressly specified in this Agreement as surviving this Agreement’s termination shall
continue to survive notwithstanding this Agreement’s termination. 
 12.2 Successors and Assigns. This Agreement
binds and is for the benefit of the successors and permitted assigns of each party. Borrower may not assign this Agreement or any rights or obligations under it without Bank’s prior written consent (which may be granted or withheld in
Bank’s discretion). Bank has the right, without the consent of or notice to Borrower, to sell, transfer, assign, negotiate, or grant participation in all or any 

  
 -17-

 
part of, or any interest in, Bank’s obligations, rights, and benefits under this Agreement and the other Loan Documents (other than the Warrant, as to which assignment, transfer and other
such actions are governed by the terms thereof). Notwithstanding the foregoing, so long as no Event of Default has occurred and is continuing, Bank shall not sell, transfer, assign, negotiate, or grant participation in all or any part of, or any
interest in, Bank’s obligations, rights, and benefits under this Agreement and the other Loan Documents to (i) a vulture fund or distressed debt fund as reasonably determined by Bank, or (ii) a direct competitor of Borrower.

 12.3 Indemnification. Borrower agrees to indemnify, defend and hold Bank and its directors, officers, employees,
agents, attorneys, or any other Person affiliated with or representing Bank (each, an “Indemnified Person”) harmless against: (i) all obligations, demands, claims, and liabilities (collectively, “Claims”)
claimed or asserted by any other party in connection with the transactions contemplated by the Loan Documents; and (ii) all losses or expenses (including Bank Expenses) in any way suffered, incurred, or paid by such Indemnified Person as a
result of, following from, consequential to, or arising from transactions between Bank and Borrower (including reasonable attorneys’ fees and expenses), except for Claims and/or losses directly caused by such Indemnified Person’s gross
negligence or willful misconduct. 
 This Section 12.3 shall survive until all statutes of limitation with respect to the
Claims, losses, and expenses for which indemnity is given shall have run. 
 12.4 Time of Essence. Time is of the essence
for the performance of all Obligations in this Agreement. 
 12.5 Severability of Provisions. Each provision of this
Agreement is severable from every other provision in determining the enforceability of any provision. 
 12.6 Correction of
Loan Documents. Bank may correct patent errors and fill in any blanks in the Loan Documents consistent with the agreement of the parties. 
 12.7 Amendments in Writing; Waiver; Integration. No purported amendment or modification of any Loan Document, or waiver, discharge or termination of any obligation under any Loan Document, shall be
enforceable or admissible unless, and only to the extent, expressly set forth in a writing signed by the party against which enforcement or admission is sought. Without limiting the generality of the foregoing, no oral promise or statement, nor any
action, inaction, delay, failure to require performance or course of conduct shall operate as, or evidence, an amendment, supplement or waiver or have any other effect on any Loan Document. Any waiver granted shall be limited to the specific
circumstance expressly described in it, and shall not apply to any subsequent or other circumstance, whether similar or dissimilar, or give rise to, or evidence, any obligation or commitment to grant any further waiver. The Loan Documents represent
the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of the Loan Documents
merge into the Loan Documents. 
 12.8 Counterparts. This Agreement may be executed in any number of counterparts and by
different parties on separate counterparts, each of which, when executed and delivered, is an original, and all taken together, constitute one Agreement. 
 12.9 Confidentiality. Except as otherwise provided herein, Bank agrees (a) to hold the Borrower’s Confidential Information in strict confidence, (b) not to disclose such Confidential
Information to any third parties, and (c) not to use any Confidential Information for any purpose except in connection with the Term Loan. In handling any of Borrower’s Confidential Information, Bank shall exercise the same degree of care
that it exercises for its own proprietary information, but disclosure of information may be made: (a) to Bank’s Subsidiaries or Affiliates (such Subsidiaries and Affiliates, together with Bank, collectively, “Bank
Entities”); (b) to prospective transferees or purchasers of any interest in the Credit Extensions (provided, however, Bank shall use its best efforts to obtain any prospective transferee’s or purchaser’s agreement to the
terms of this provision); (c) as required by law, regulation, subpoena, or other order; (d) to Bank’s regulators or as otherwise required in connection with Bank’s examination or audit; (e) as Bank considers appropriate in
exercising remedies under the Loan Documents; and (f) to third-party service providers of Bank so long as such service providers have executed a confidentiality agreement with Bank with terms no less restrictive than those contained herein.
Confidential information does not 

  
 -18-

 
include information that is either: (i) in the public domain or in Bank’s possession when disclosed to Bank, or becomes part of the public domain (other than as a result of its
disclosure by Bank in violation of this Agreement) after disclosure to Bank; or (ii) disclosed to Bank by a third party, if Bank does not know that the third party is prohibited from disclosing the information. 

Bank Entities may use anonymous forms of Confidential Information for aggregate datasets, for analyses or reporting, and for any other
uses not expressly prohibited in writing by Borrower. The provisions of the immediately preceding sentence shall survive termination of this Agreement. 
 12.10 Attorneys’ Fees, Costs and Expenses. In any action or proceeding between Borrower and Bank arising out of or relating to the Loan Documents, the prevailing party shall be entitled to
recover its reasonable attorneys’ fees and other costs and expenses incurred, in addition to any other relief to which it may be entitled. 
 12.11 Electronic Execution of Documents. The words “execution,” “signed,” “signature” and words of like import in any Loan Document shall be deemed to include
electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity and enforceability as a manually executed signature or the use of a paper-based recordkeeping systems, as the case may be,
to the extent and as provided for in any applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act. 
 12.12 Captions. The headings used in this Agreement are for convenience only and shall not affect the interpretation of this Agreement. 

12.13 Construction of Agreement. The parties mutually acknowledge that they and their attorneys have participated in the
preparation and negotiation of this Agreement. In cases of uncertainty this Agreement shall be construed without regard to which of the parties caused the uncertainty to exist. 

12.14 Relationship. The relationship of the parties to this Agreement is determined solely by the provisions of this Agreement.
The parties do not intend to create any agency, partnership, joint venture, trust, fiduciary or other relationship with duties or incidents different from those of parties to an arm’s-length contract. 

12.15 Third Parties. Nothing in this Agreement, whether express or implied, is intended to: (a) confer any benefits, rights
or remedies under or by reason of this Agreement on any persons other than the express parties to it and their respective permitted successors and assigns; (b) relieve or discharge the obligation or liability of any person not an express party
to this Agreement; or (c) give any person not an express party to this Agreement any right of subrogation or action against any party to this Agreement. 
 13 DEFINITIONS 
 13.1 Definitions. As used in the Loan
Documents, the word “shall” is mandatory, the word “may” is permissive, the word “or” is not exclusive, the words “includes” and “including” are not limiting, the singular includes the plural, and
numbers denoting amounts that are set off in brackets are negative. As used in this Agreement, the following capitalized terms have the following meanings: 
 “Account” is any “account” as defined in the Code with such additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other
sums owing to Borrower. 
 “Account Debtor” is any “account debtor” as defined in the Code with such
additions to such term as may hereafter be made. 
 “Affiliate” is, with respect to any Person, each other
Person that owns or controls directly or indirectly the Person, any Person that controls or is controlled by or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners and, for any
Person that is a limited liability company, that Person’s managers and members. 
 “Agreement” is defined
in the preamble hereof. 

  
 -19-

 “Authorized Signer” is any individual listed in Borrower’s Borrowing
Resolution who is authorized to execute the Loan Documents on behalf of Borrower. 
 “Bank” is defined in the
preamble hereof. 
 “Bank Entities” is defined in Section 12.9. 

“Bank Expenses” are all reasonable audit fees and expenses, costs, and expenses (including reasonable attorneys’
fees and expenses) for preparing, amending, negotiating, administering, defending and enforcing the Loan Documents (including, without limitation, those incurred in connection with appeals or Insolvency Proceedings) or otherwise incurred with
respect to Borrower. 
 “Bank Services” are any products, credit services, and/or financial accommodations
previously, now, or hereafter provided to Borrower or any of its Subsidiaries by Bank or any Bank Affiliate, including, without limitation, any letters of credit, cash management services (including, without limitation, merchant services, direct
deposit of payroll, business credit cards, and check cashing services), interest rate swap arrangements, and foreign exchange services as any such products or services may be identified in Bank’s various agreements related thereto (each, a
“Bank Services Agreement”). 
 “Borrower” is defined in the preamble hereof. 

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

“Borrowing Resolutions” are, with respect to any Person, those resolutions substantially in the form attached hereto as
Exhibit D. 
 “Business Day” is any day that is not a Saturday, Sunday or a day on which Bank is
closed, and if any determination of a “Business Day” shall relate to an FX Contract, the term “Business Day” shall mean a day on which dealings are carried on in the country of settlement of the Foreign Currency. 

“Cash Burn” means Net Income, plus (i) amortization, (ii) depreciation, (iii) stock-based compensation,
(iv) change in fair value of warrant liability, and (v) other non-cash items approved by Bank in its sole discretion, minus capital expenditures. 
 “Cash Equivalents” means (a) marketable direct obligations issued or unconditionally guaranteed by the United States or any agency or any State thereof having maturities of not more
than one (1) year from the date of acquisition; (b) commercial paper maturing no more than one (1) year after its creation and having the highest rating from either Standard & Poor’s Ratings Group or Moody’s
Investors Service, Inc.; (c) Bank’s certificates of deposit issued maturing no more than one (1) year after issue; and (d) money market funds at least ninety-five percent (95%) of the assets of which constitute Cash
Equivalents of the kinds described in clauses (a) through (c) of this definition. 
 “Claims” is
defined in Section 12.3. 
 “Code” is the Uniform Commercial Code, as the same may, from time to time, be
enacted and in effect in the State of California; provided, that, to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined differently in different Articles or Divisions of the Code, the
definition of such term contained in Article or Division 9 shall govern; provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, or priority of, or remedies with respect to,
Bank’s Lien on any Collateral is governed by the Uniform Commercial Code in effect in a jurisdiction other than the State of California, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such
other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority, or remedies and for purposes of definitions relating to such provisions. 

  
 -20-

 “Collateral” is any and all properties, rights and assets of Borrower
described on Exhibit A. 
 “Collateral Account” is any Deposit Account, Securities Account, or
Commodity Account. 
 “Commodity Account” is any “commodity account” as defined in the Code with such
additions to such term as may hereafter be made. 
 “Compliance Certificate” is that certain certificate in the
form attached hereto as Exhibit B. 
 “Confidential Information” means any information disclosed by
one party to the other, either directly or indirectly in writing, orally, or by inspection of tangible objects that (a) the disclosing party identifies as confidential or proprietary; or (b) reasonably appears to be confidential or
proprietary because of legends or other markings, the circumstances of disclosure, or the nature of the information itself and includes any such information that is observed by Bank in the course of, or relating to, its visiting Borrower’s
facilities, even if not knowingly or intentionally disclosed to Bank. 
 “Contingent Obligation” is, for any
Person, any direct or indirect liability, contingent or not, of that Person for (a) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation, in each case, directly or indirectly guaranteed,
endorsed, co-made, discounted or sold with recourse by that Person, or for which that Person is directly or indirectly liable; (b) any obligations for undrawn letters of credit for the account of that Person; and (c) all obligations from
any interest rate, currency or commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but
“Contingent Obligation” does not include endorsements in the ordinary course of business. The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if
not determinable, the maximum reasonably anticipated liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement. 

“Control Agreement” is any control agreement entered into among the depository institution at which Borrower maintains a
Deposit Account or the securities intermediary or commodity intermediary at which Borrower maintains a Securities Account or a Commodity Account, Borrower, and Bank pursuant to which Bank obtains control (within the meaning of the Code) over such
Deposit Account, Securities Account, or Commodity Account. 
 “Copyrights” are any and all copyright rights,
copyright applications, copyright registrations and like protections in each work of authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret. 

“Core IP” means [****]. 
 “Credit Extension” is the Term Loan or any other extension of credit by Bank for Borrower’s benefit. 
 “Currency” is coined money and such other banknotes or other paper money as are authorized by law and circulate as a medium of exchange. 

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

“Deposit Account” is any “deposit account” as defined in the Code with such additions to such term as may
hereafter be made. 
 “Designated Deposit Account” is the multicurrency account denominated in Dollars, account
number ###########, maintained by Borrower with Bank. 
 [****] Certain information has been omitted and filed separately with the Commission.
Confidential treatment has been requested with respect to the omitted portions. 

  
 -21-

 “Dollars,” “dollars” or use of the
sign “$” means only lawful money of the United States and not any other currency, regardless of whether that currency uses the “$” sign to denote its currency or may be readily converted into lawful money of the United
States. 
 “Dollar Equivalent” is, at any time, (a) with respect to any amount denominated in
Dollars, such amount, and (b) with respect to any amount denominated in a Foreign Currency, the equivalent amount therefor in Dollars as determined by Bank at such time on the basis of the then-prevailing rate of exchange in San Francisco,
California, for sales of the Foreign Currency for transfer to the country issuing such Foreign Currency. 
 “Effective
Date” is defined in the preamble hereof. 
 “Equipment” is all “equipment” as defined in the
Code with such additions to such term as may hereafter be made, and includes without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing. 

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

“Event of Default” is defined in Section 8. 

“Exchange Act” is the Securities Exchange Act of 1934, as amended. 

“Final Payment” is a payment (in addition to and not a substitution for the regular monthly payments of principal plus
accrued interest) due on the earliest to occur of (a) the Term Loan Maturity Date, (b) the acceleration of the Term Loan, or (c) the prepayment of the Term Loan, equal to One Million Dollars ($1,000,000). 

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

“Funding Date” is any date on which a Credit Extension is made to or for the account of Borrower which shall be a
Business Day. 
 “FX Business Day” is any day when (a) Bank’s Foreign Exchange
Department is conducting its normal business and (b) the Foreign Currency being purchased or sold by Borrower is available to Bank from the entity from which Bank shall buy or sell such Foreign Currency. 

“FX Contract” is any foreign exchange contract by and between Borrower and Bank under which Borrower commits to purchase
from or sell to Bank a specific amount of Foreign Currency on a specified date. 
 “GAAP” is generally accepted
accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such
other statements by such other Person as may be approved by a significant segment of the accounting profession, which are applicable to the circumstances as of the date of determination. 

“General Intangibles” is all “general intangibles” as defined in the Code in effect on the date hereof with
such additions to such term as may hereafter be made, and includes without limitation, all Intellectual Property, claims, income and other tax refunds, security and other deposits, payment intangibles, contract rights, options to purchase or sell
real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property damage, and business interruption insurance), payments of
insurance and rights to payment of any kind. 
 “Governmental Approval” is any consent, authorization,
approval, order, license, franchise, permit, certificate, accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority. 

  
 -22-

 “Governmental Authority” is any nation or government, any state or other
political subdivision thereof, any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government,
any securities exchange and any self-regulatory organization. 
 “Guarantor” is any Person providing a Guaranty
in favor of Bank, including but not limited to Stemcells California, Inc., a California corporation and wholly owned subsidiary of Borrower. 
 “Guaranty” is any guarantee of all or any part of the Obligations, as the same may from time to time be amended, restated, modified or otherwise supplemented. 

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

“Indemnified Person” is defined in Section 12.3. 

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

“Intellectual Property” means, with respect to any Person, means all of such Person’s right, title, and interest in
and to the following: 
 (a) its Copyrights, Trademarks and Patents; 

(b) any and all trade secrets and trade secret rights, including, without limitation, any rights to unpatented inventions, know-how,
operating manuals; 
 (c) any and all source code; 
 (d) any and all design rights which may be available to such Person; 
 (e) any and
all claims for damages by way of past, present and future infringement of any of the foregoing, with the right, but not the obligation, to sue for and collect such damages for said use or infringement of the Intellectual Property rights identified
above; and 
 (f) all amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents. 

“Inventory” is all “inventory” as defined in the Code in effect on the date hereof with such additions to such
term as may hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products, including without limitation such inventory as is temporarily out
of Borrower’s custody or possession or in transit and including any returned goods and any documents of title representing any of the above. 
 “Investment” is any beneficial ownership interest in any Person (including stock, partnership interest or other securities), and any loan, advance or capital contribution to any Person.

 “Key Person” is each of Borrower’s [****]. 

“Letter of Credit” is a standby or commercial letter of credit issued by Bank upon request of Borrower based upon an
application, guarantee, indemnity, or similar agreement. 
 [****] Certain information has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -23-

 “Lien” is a claim, mortgage, deed of trust, levy, charge, pledge, security
interest or other encumbrance of any kind, whether voluntarily incurred or arising by operation of law or otherwise against any property. 
 “Loan Documents” are, collectively, this Agreement and any schedules, exhibits, certificates, notices, and any other documents related to this Agreement, the Warrant, any Bank Services
Agreement, the Secured Guaranty Documents, any subordination agreement, any note, or notes or guaranties executed by Borrower or any Guarantor, and any other present or future agreement by Borrower and/or any Guarantor with or for the benefit of
Bank in connection with this Agreement or Bank Services, all as amended, restated, or otherwise modified. 
 “Material
Adverse Change” is [****]. 
 “Monthly Financial Statements” is defined in Section 6.2(a).

 “Net Income” means, as calculated on a consolidated basis for Borrower and its Subsidiaries for any period
as at any date of determination, the net profit (or loss), after provision for taxes, of Borrower and its Subsidiaries for such period taken as a single accounting period. 
 “New Capital” means New Equity and New Strategic Capital. 

“New Equity” means [****]. 
 “New Strategic Capital” means [****]. 

“Obligations” are Borrower’s obligations to pay when due any debts, principal, interest, fees, Bank Expenses, and
other amounts Borrower owes Bank now or later, whether under this Agreement, the other Loan Documents (other than the Warrant), or otherwise, including, without limitation, all obligations relating to letters of credit (including reimbursement
obligations for drawn and undrawn letters of credit), cash management services, and foreign exchange contracts, if any, and including interest accruing after Insolvency Proceedings begin and debts, liabilities, or obligations of Borrower assigned to
Bank, and to perform Borrower’s duties under the Loan Documents (other than the Warrant). 
 “Operating
Documents” are, for any Person, such Person’s formation documents, as certified by the Secretary of State (or equivalent agency) of such Person’s jurisdiction of organization on a date that is no earlier than thirty (30) days
prior to the Effective Date, and, (a) if such Person is a corporation, its bylaws in current form, (b) if such Person is a limited liability company, its limited liability company agreement (or similar agreement), and (c) if such
Person is a partnership, its partnership agreement (or similar agreement), each of the foregoing with all current amendments or modifications thereto. 
 “Patents” means all patents, patent applications and like protections including without limitation improvements, divisions, continuations, renewals, reissues, extensions and
continuations-in-part of the same. 
 “Payment/Advance Form” is that certain form attached hereto as Exhibit
C. 
 “Perfection Certificate” is defined in Section 5.1. 

“Permitted Acquisition” means [****]. 
 [****] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -24-

 “Permitted Indebtedness” is: [****]. 

“Permitted Investments” are: [****]. 
 [****] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -25-

 “Permitted Liens” are: [****]. 

[****] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the
omitted portions. 

  
 -26-

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

“Prime Rate” is the rate of interest per annum from time to time published in the money rates section of The Wall Street
Journal or any successor publication thereto as the “prime rate” then in effect; provided that if such rate of interest, as set forth from time to time in the money rates section of The Wall Street Journal, becomes unavailable for any
reason as determined by Bank, the “Prime Rate” shall mean the rate of interest per annum announced by Bank as its prime rate in effect at its principal office in the State of California (such Bank announced Prime Rate not being intended to
be the lowest rate of interest charged by Bank in connection with extensions of credit to debtors). 
 “Registered
Organization” is any “registered organization” as defined in the Code with such additions to such term as may hereafter be made. 
 “Regulatory Change” means, with respect to Bank, any change on or after the date of this Agreement in United States federal, state, or foreign laws or regulations, including
Regulation D, or the adoption or making on or after such date of any interpretations, directives, or requests applying to a class of lenders including Bank, of or under any United States federal or state, or any foreign laws or regulations (whether
or not having the force of law) by any court or governmental or monetary authority charged with the interpretation or administration thereof. 
 “Requirement of Law” is as to any Person, the organizational or governing documents of such Person, and any law (statutory or common), treaty, rule or regulation or determination of an
arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject. 

“Responsible Officer” is any of the Chief Executive Officer, President, Chief Financial Officer, the General Counsel,
and the Chief Accounting Officer of Borrower. 
 “Restricted License” is [****] 

“SEC” shall mean the Securities and Exchange Commission, any successor thereto, and any analogous Governmental
Authority. 
 “Secured Guaranty Documents” means that certain Unconditional Guaranty and Security Agreement
executed by Guarantor in favor of Bank dated as of the Effective Date. 
 “Securities Account” is any
“securities account” as defined in the Code with such additions to such term as may hereafter be made. 

“Subordinated Debt” is indebtedness incurred by Borrower subordinated to all of Borrower’s now or hereafter
indebtedness to Bank (pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Bank entered into between Bank and the other creditor), on terms acceptable to Bank; 

[****] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the
omitted portions. 

  
 -27-

 provided, however, that in no event will the term Subordinated Debt include unsecured Indebtedness provided
by the California Institute for Regenerative Medicine. 
 “Subsidiary” is, as to any Person, a corporation,
partnership, limited liability company or other entity of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a
contingency) to elect a majority of the board of directors or other managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more
intermediaries, or both, by such Person. Unless the context otherwise requires, each reference to a Subsidiary herein shall be a reference to a Subsidiary of Borrower or any Guarantor. 

“Term Loan” is a loan made by Bank pursuant to the terms of Section 2.1.1 hereof. 

“Term Loan Amount” is an amount equal to Ten Million Dollars ($10,000,000). 

“Term Loan Maturity Date” is April 1, 2016. 

“Term Loan Payment” is defined in Section 2.1.1(b). 

“Term Loan Termination Fee” means a fee equal to (i) [****] of the outstanding principal balance of the Term
Loan if the prepayment occurs on or prior to the first anniversary of the Effective Date and (ii) [****] of the outstanding principal balance of the Term Loan if the prepayment occurs after the first anniversary of the Effective Date but
prior to the Term Loan Maturity Date. 
 “Trademarks” means any trademark and servicemark rights, whether
registered or not, applications to register and registrations of the same and like protections, and the entire goodwill of the business of Borrower connected with and symbolized by such trademarks. 

“Transfer” is defined in Section 7.1. 
 “Warrant” is that certain Warrant to Purchase Common Stock dated as of the Effective Date executed by Borrower in favor of Bank. 

[Signature page follows.] 
 [****] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -28-

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

			
	BORROWER:
	
	STEMCELLS, INC.
		
	By	 	/s/ Ken Stratton
	Name:	 	Ken Stratton
	Title:	 	General Counsel
	
	BANK:
	
	SILICON VALLEY BANK
		
	By	 	/s/ David M. Sabow
	Name:	 	David M. Sabow
	Title:	 	Managing Director

 [Signature Page to Loan and Security Agreement] 

 EXHIBIT A 

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

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

Notwithstanding the foregoing, the Collateral does not include any Intellectual Property; provided, however, the Collateral shall include
all Accounts and all proceeds of Intellectual Property. If a judicial authority (including a U.S. Bankruptcy Court) would hold that a security interest in the underlying Intellectual Property is necessary to have a security interest in such Accounts
and such property that are proceeds of Intellectual Property, then the Collateral shall automatically, and effective as of the Effective Date, include the Intellectual Property to the extent necessary to permit perfection of Bank’s security
interest in such Accounts and such other property of Borrower that are proceeds of the Intellectual Property. 
 Pursuant to the
terms of a certain negative pledge arrangement with Bank, Borrower has agreed not to encumber any of its Intellectual Property without Bank’s prior written consent. 

 EXHIBIT B 

COMPLIANCE CERTIFICATE 
  

					
	TO:	 	SILICON VALLEY BANK	  	Date:                    
	FROM:	 	STEMCELLS, INC.	  	

 The undersigned authorized officer of STEMCELLS, INC. (“Borrower”) certifies that under the
terms and conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”): 
 (1) Borrower
is in complete compliance for the period ending                      with all required covenants except as noted below; (2) there are no Events
of Default; (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any
representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in
all material respects as of such date; (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and
contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement; and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee
payroll or benefits of which Borrower has not previously provided written notification to Bank. 
 Attached are the required
documents supporting the certification. The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned
acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered.
Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement. 
 Please indicate compliance
status by circling Yes/No under “Complies” column. 
  

									
	 Reporting Covenants
	  	Required	 	 	Complies	 
	 Monthly financial statements with Compliance Certificate
	  	 	[****	] 	 	 	Yes    No	  
	 Annual financial statement (CPA Audited) + CC
	  	 	[****	] 	 	 	Yes    No	  
	 Financial projections
	  	 	[****	] 	 	 	Yes    No	  
	 10-Q, 10-K and 8-K
	  	 	[****	] 	 	 	Yes    No	  

  

											
	 Financial Covenants
	  	Required	 	Actual	 	  	Complies	 
	 New Capital
	  	*	 	$	            	  	  	 	Yes    No	  
	 Remaining Months Liquidity
	  	**	 	$	            	  	  	 	Yes    No	  

  

	*	[****]. 

  

	**	[****]. 

 [****] Certain information has been
omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 1 

 Other Matters 

 

					
	Have there been any amendments of or other changes to the capitalization table of Borrower and to the Operating Documents of Borrower or any of its Subsidiaries? If yes, provide
copies of any such amendments or changes with this Compliance Certificate.	  	        Yes            	  	No

 The following are the exceptions with respect to the certification above: (If no exceptions exist, state
“No exceptions to note.”) 
  
  

 
  
  

					
	STEMCELLS, INC.	  		  	BANK USE ONLY
			
		  		  	Received by:
                                         
                            
	By:
                                         
                                         
   	  		  	              AUTHORIZED SIGNER
			
	Name:
                                         
                                       	  		  	Date:
                                         
                                         

			
	Title:
                                         
                                         
	  		  	Verified:
                                         
                                   
		  		  	          AUTHORIZED SIGNER
			
		  		  	Date:
                                         
                                         

			
		  		  	Compliance Status:             Yes
                No

  
 2 

 EXHIBIT C – LOAN PAYMENT/ADVANCE REQUEST FORM 

DEADLINE FOR SAME DAY PROCESSING IS NOON PACIFIC TIME* 

 

			
		 	Date:                     

 Fax To: 
  

					
	 LOAN PAYMENT:
 STEMCELLS, INC.

	 		 
	From Account #
                                         
                   	 		 	To Account #
                                         
                               
	(Deposit Account
#)                        	 		 	(Loan Account
#)                        
	 		 
	Principal
$                                         
                            	 		 	and/or Interest
$                                         
                           
	 		 
	Authorized Signature:
                                         
         	 		 	Phone Number:
                                         
                            
	 		 
	 Print Name/Title:
                                         
                
  
	 	 	 	 

  

					
	 LOAN ADVANCE:
  
 Complete
Outgoing Wire Request section below if all or a portion of the funds from this loan advance are for an outgoing wire.

	 		 
	From Account #
                                         
                   	 		 	To Account #
                                         
                               
	(Loan Account
#)                        	 		 	(Deposit Account
#)                           
	 		 
	Amount of Advance
$                                         
          	 		 	 
	 
	All Borrower’s representations and warranties in the Loan
and Security Agreement are true, correct and complete in all material respects on the date of the request for an advance; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already
are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such
date:
	 		 
	Authorized Signature:
                                         
          	 		 	Phone Number:
                                         
                            
	 		 
	 Print Name/Title:
                                         
                 
  
	 	 	 	 

  

					
	 OUTGOING WIRE REQUEST:
 Complete only if all or a portion of funds from the loan
advance above is to be wired.
 Deadline for same day processing is noon, Pacific Time

	 		 
	Beneficiary Name:
                                         
               	 		  	Amount of Wire:
$                                         
                   
	Beneficiary Bank:
                                         
                	 		  	Account Number:
                                         
                    
	City and State:
                                         
                     	 		  	 
	 		 
	Beneficiary Bank Transit (ABA) #:
                             	 		  	Beneficiary Bank Code (Swift, Sort, Chip, etc.):
             
	 	 		  	(For International Wire Only)
	 		 
	Intermediary Bank:
                                         
              	 		  	Transit (ABA) #:
                                         
                   
	 
	For Further Credit to:
                                         
                                         
                                         
                                         
   
	 
	Special Instruction:
                                         
                                         
                                         
                                         
     
	 
	By signing below, I (we) acknowledge and agree that my
(our) funds transfer request shall be processed in accordance with and subject to the terms and conditions set forth in the agreements(s) covering funds transfer service(s), which agreements(s) were previously received and executed by me
(us).
	 		 
	Authorized Signature:
                                         
                	 		  	2nd Signature (if required):
                                         
    
	 		 
	Print Name/Title:
                                         
                       	 		  	Print Name/Title:
                                         
                    
	 		 
	 Telephone #:
                                         
                             
  
	 	 	  	 Telephone #:
                                         
                           

 

  

	*	Unless otherwise provided for an Advance bearing interest at LIBOR. 

  
 3 

 EXHIBIT D 

BORROWING RESOLUTIONS 
  

 
 CORPORATE BORROWING CERTIFICATE 

 

					
	BORROWER:	  	STEMCELLS, INC.	  	DATE: April     , 2013
	BANK:	  	SILICON VALLEY BANK	  	

 I hereby certify as follows, as of the date set forth above: 
 1. I am the Secretary, Assistant Secretary or other officer of the Borrower. My title is as set forth below. 
 2. Borrower’s exact legal name is set forth above. Borrower is a corporation existing under the laws of the 
 State of
                                         
                    
 [print
name of state] 
 3. Attached hereto are true, correct and complete copies of Borrower’s Articles/Certificate of Incorporation (including
amendments), as filed with the Secretary of State of the state in which Borrower is incorporated as set forth in paragraph 2 above. Such Articles/Certificate of Incorporation have not been amended, annulled, rescinded, revoked or supplemented, and
remain in full force and effect as of the date hereof. 
 4. The following resolutions were duly and validly adopted by Borrower’s Board of
Directors at a duly held meeting of such directors (or pursuant to a unanimous written consent or other authorized corporate action). Such resolutions are in full force and effect as of the date hereof and have not been in any way modified,
repealed, rescinded, amended or revoked, and Bank may rely on them until Bank receives written notice of revocation from Borrower. 
 RESOLVED, that any one of the following officers or employees of Borrower, whose names, titles and signatures are below, may act on behalf of Borrower: 

 

													
	 Name
	 	 	  	 Title
	  	 	  	 Signature
	  	 	  	 Authorized
to Add or
Remove
Signatories

	  
	 		  	  
	  		  	  
	  		  	 ̈
	  
	 		  	  
	  		  	  
	  		  	 ̈
	  
	 		  	  
	  		  	  
	  		  	 ̈
	  
	 		  	  
	  		  	  
	  		  	 ̈

 RESOLVED FURTHER, that any one of the persons designated above with a checked box beside
his or her name may, from time to time, add or remove any individuals to and from the above list of persons authorized to act on behalf of Borrower. 

 RESOLVED FURTHER, that such individuals may, on behalf of Borrower: 

Borrow Money. Borrow money from Silicon Valley Bank (“Bank”). 

Execute Loan Documents. Execute any loan documents Bank requires. 

Grant Security. Grant Bank a security interest in any of Borrower’s assets. 

Negotiate Items. Negotiate or discount all drafts, trade acceptances, promissory notes, or other indebtedness in which Borrower has
an interest and receive cash or otherwise use the proceeds. 
 Letters of Credit. Apply for letters of credit from Bank.

 Foreign Exchange Contracts. Execute spot or forward foreign exchange contracts. 

Issue Warrants. Issue warrants for Borrower’s capital stock. 

Further Acts. Designate other individuals to request advances, pay fees and costs and execute other documents or agreements
(including documents or agreement that waive Borrowers right to a jury trial) they believe to be necessary to effectuate such resolutions. 
 RESOLVED FURTHER, that all acts authorized by the above resolutions and any prior acts relating thereto are ratified. 
 5. The persons listed above are Borrower’s officers or employees with their titles and signatures shown next to their names. 

 

			
	STEMCELLS, INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

	***	If the Secretary, Assistant Secretary or other certifying officer executing above is designated by the resolutions set forth in paragraph 4 as one of the authorized
signing officers, this Certificate must also be signed by a second authorized officer or director of Borrower. 

 I, the
                                        
of Borrower, hereby certify as to paragraphs 1 through 5 above, as of the date set forth above. 

                [print title] 

 

			
	By:	 	  

	Name:	 	  

	Title:	 	  

 Annex I 

Insurance Policies 
 [****]

 [****] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect
to the omitted portions. 

 [****] 
 [****] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

 Annex II 
 Financial Covenants 
 (a) New Capital. Borrower shall have received
unrestricted New Capital of, (i) [****], (ii) [****] and (iii) [****], each of the foregoing measured on a cumulative basis beginning on January 1, 2013. 
 (b) Remaining Months Liquidity. Borrower shall at all times maintain, [****]. 
 [****]
Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.EX-10.35

 Exhibit 10.35 
 CALIFORNIA INSTITUTE FOR REGENERATIVE MEDICINE 
 LOAN AGREEMENT

 This LOAN AGREEMENT (the “Agreement”) is entered into as of April 9, 2013 (the “Effective
Date”), by and between the California Institute for Regenerative Medicine (“CIRM”) and StemCells, Inc. (“Loan Recipient”). 
 RECITALS 
 A. Whereas, California voters approved Proposition 71, the
California Stem Cell Research and Cures Act, in November 2004 to support stem cell research for the development of life-saving regenerative medical treatments and cures; 
 B. Whereas, one of the purposes of Proposition 71 is to advance the biotech industry in California to world leadership, as an economic engine for California’s future; 

C. Whereas, CIRM was established pursuant to Proposition 71 to make grants and provide loans for stem cell research, research facilities,
and other vital research opportunities; 
 D. Whereas, CIRM issued Request for Applications 10-05 (CIRM Disease Team Therapy
Development Awards) in 2010, and a Supplement to the RFA in 2011, to solicit applications for research projects designed to advance preclinical and/or early clinical development of novel therapies, derived from or targeting stem cells or utilizing
direct reprogramming, potentially offering unique benefit with well-considered risk, to persons with disease or serious injury; 

E. Whereas, CIRM, as part of Request for Applications 10-05, offered Company-Backed Loans and Product-Backed Loans to for-profit
entities, and to non-profit entities whose applications included a co-principal investigator from a for-profit entity that was willing to undertake the required loan obligations; 

F. Whereas, Loan Recipient is a for-profit company that is seeking funds to support Loan Recipient’s research regarding the use of
neural stem cell transplantation to treat Alzheimer’s disease; 
 G. Whereas, Loan Recipient applied for a Disease Team
Therapy Development Award, and on September 5, 2012, CIRM’s Governing Board, the Independent Citizens’ Oversight Committee, approved the award of a Product-Backed Loan to Loan Recipient in furtherance of the purposes of CIRM;

 H. Whereas, this Agreement sets forth the terms and conditions pursuant to which CIRM will loan funds to Loan Recipient, and
Loan Recipient will repay the amounts owing, plus interest, and a multiple payback risk premium, to CIRM; and 
 I. Whereas
CIRM’s President has granted Loan Recipient’s request to extend the project start date to no later than January 1, 2014; 

  
 Page 1
of 59 
 Loan Agreement 

 NOW, THEREFORE, in reliance on the mutual representations, warranties and agreements herein
contained, the parties agree as follows: 
 ARTICLE I 

DEFINITIONS 
 1.1 Certain Definitions. As used in this Agreement, the following terms have the meanings indicated below. 
 Affiliate. The term “Affiliate” shall mean any Person directly or indirectly controlling or controlled by, or under direct or indirect common control with, another Person. A Person shall
be deemed to control another Person solely for purposes of this definition if such Person possesses, directly or indirectly, the power to direct, or cause the direction of, the management and policies of the other Person, whether through the
ownership of voting securities, common directors, trustees or officers, by contract or otherwise; provided that, in any event for purposes of this definition, any Person that owns, directly or indirectly, ten percent (10%) or more of the
securities having the ordinary voting power for the election of directors or governing body of a corporation or ten percent (10%) or more of the partnership or other ownership interest of any other Person (other than as a limited partner of
such other Person) will be deemed to control such corporation or other Person). 
 Application. The term
“Application” shall mean the research award application, identified as DR2A-05416, that Loan Recipient submitted to CIRM in response to RFA 10-05, and any attachment or appendices thereto. 

Authorized Representative. The term “Authorized Representative” shall mean those persons shown on the list of officers
provided by Loan Recipient pursuant to Section 4.12(e) hereof or on any update of any such list provided by Loan Recipient to CIRM, or any further or different officers of Loan Recipient so named by an Authorized Representative of Loan
Recipient in a written notice to CIRM. 
 Budget. The term “Budget” means the budget of Loan Recipient for the
CIRM-Funded Project, defined below, on a stand-alone basis, which shall be in such detail as is required by CIRM. 

Business. The term “Business” shall mean the CIRM-Funded Project and the development and commercialization of Products
resulting from the CIRM-Funded Project. 
 Capital Lease. The term “Capital Lease” shall mean any lease of
Property which, in accordance with GAAP, is required to be capitalized on the balance sheet of the lessee. 
 Capitalized
Lease Obligation. The term “Capitalized Lease Obligation” shall mean, for any Person, the amount of the liability shown on the balance sheet of such Person in respect of a Capital Lease determined in accordance with GAAP. 

  
 Page 2
of 59 
 Loan Agreement 

 Change of Control. The term “Change of Control” shall mean a sale, merger,
transfer, exchange or other disposition (whether of assets, stock or otherwise) of a majority or controlling ownership position of Loan Recipient. 
 CIRM. The term “CIRM” shall mean the California Institute for Regenerative Medicine, including any successor agency or department of the State of California. 

CIRM-Funded Project. The term “CIRM-Funded Project” shall mean the work described in the Application and in the Notice
of Loan Award (defined below), specifically the proposal to evaluate, through pre-clinical studies funded in part by CIRM, a novel cell therapy involving the use of HuCNS-SC cells (purified human neural stem cells) to treat Alzheimer’s disease.
An agreed-upon aim of the CIRM-Funded Project is the filing of an Investigative New Drug application with the U.S. Food and Drug Administration for the clinical study of HuCNS-SC cells in Alzheimer’s disease (the “IND”). The
Loan Recipient must obtain prior approval from CIRM for any change in the nature or scope of the CIRM-Funded Project pursuant to CIRM’s Grants Administration Policy, article V, section D(1). Upon such approval, the term “CIRM-Funded
Project” shall include any such deviation, amendment or change that is so approved by CIRM. 
 CIRM’s Governing
Board. The term “CIRM’s Governing Board” shall mean the Independent Citizens’ Oversight Committee. 

CIRM Representatives. The term “CIRM Representatives” shall mean CIRM’s officers, employees, agents, attorneys,
consultants, accountants and members of CIRM’s Governing Board. 
 Code. The term “Code” shall mean the
Internal Revenue Code of 1986, as amended, and any successor statute thereto. 
 Controlled Group. The term
“Controlled Group” shall mean all members of a controlled group of corporations and all trades or businesses (whether or not incorporated) under common control which, together with Loan Recipient, are treated as a single employer under
Section 414 of the Code. 
 Direct Research Funding Costs. The term “Direct Research Funding Costs” shall
mean the sum of Project Costs and Facilities Costs. 
 Disbursement. The term “Disbursement” shall have the
meaning given to it in Section 4.4(a) of this Agreement. 
 Disbursed Loan Amount. The term “Disbursed Loan
Amount” shall mean that amount of the Loan Award that CIRM has distributed in immediately available funds to the Loan Recipient through any one or more Disbursements. 
 ERISA. The term “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended, or any successor statute thereto. 

  
 Page 3
of 59 
 Loan Agreement 

 Facilities Costs. The term “Facilities Costs” shall mean the general
operating costs of the facilities that will house any element of the CIRM-Funded Project. 
 Financial Milestones. The
term “Financial Milestone(s)” shall have the meaning given in Exhibit A of this Agreement. 

Indebtedness. The term “Indebtedness” shall mean for any Person (without duplication), (a) all indebtedness
created, assumed or incurred in any manner by such Person representing money borrowed (including by the issuance of debt securities), (b) all indebtedness for the deferred purchase price of property or services (other than trade accounts
payable arising in the ordinary course of business), (c) all indebtedness secured by any Lien upon Property of such Person, whether or not such Person has assumed or become liable for the payment of such indebtedness, (d) all Capitalized
Lease Obligations of such Person, and (e) all obligations of such Person on or with respect to letters of credit, bankers’ acceptances and other extensions of credit whether or not representing obligations for borrowed money. 

Indirect Costs. The term “Indirect Costs” shall mean the administrative costs (including but not limited to loan
origination and administration fees) incurred for common or joint objectives which cannot be readily and specifically identified with a particular project. Indirect costs shall be capped at twenty percent (20%) of Direct Research Funding Costs,
exclusive of the costs of equipment, tuition and fees, and subcontracts, as group, totaling more than $25,000 per year. 

Intellectual Property and Industry Subcommittee. The term “Intellectual Property and Industry Subcommittee” shall mean
the Intellectual Property and Industry Subcommittee of the CIRM’s Governing Board, as such subcommittee may be constituted from time to time to oversee the performance of Borrowers, or any successor committee thereto. 

LIBOR. The term “LIBOR” shall have the meaning given in Section 4.3 of this Agreement. 

Lien. The term “Lien” shall mean any mortgage, lien, security interest, pledge, charge or encumbrance of any kind in
respect of any Property, including the interests of a vendor or lessor under any conditional sale, Capital Lease or other title retention arrangement. 
 Loan. The term “Loan” shall mean the Product-Backed Loan specified in Section 4.1 of this Agreement. 
 Loan Administration Policy. The term “Loan Administration Policy” shall mean the “CIRM Loan Administration Policy,” as approved by the Office of Administrative Law, effective
August 29, 2012, incorporated by reference into Section 100800 of Title 17 of the California Code of Regulations, and as attached hereto as Exhibit B, including amendments thereto adopted by CIRM after the Effective Date if agreed
to by CIRM and Loan Recipient. 
 Loan Award. The term “Loan Award” shall mean the award of nineteen million,
three hundred and nine thousand, and four hundred and three dollars ($19,309,403) to Loan Recipient, which was approved by CIRM’s Governing Board on September 5, 2012. 

  
 Page 4
of 59 
 Loan Agreement 

 Loan Balance. The term “Loan Balance” shall mean the principal amount CIRM
distributes to Loan Recipient pursuant to any Disbursement plus accrued interest thereon, less any prepayment(s) made under Section 4.7(a). 
 Loan Documents. The term “Loan Documents” shall mean this Agreement, the Notice of Loan Award, and all documents incorporated by reference pursuant to Articles II and III. 

Loan Period. The term “Loan Period” shall mean the ten-year period beginning on the Project Start Date, unless the Loan
Recipient requests to extend the term of the Loan Period pursuant to Section 4.8 and Section F of Article VII of the Loan Administration Policy and the Intellectual Property and Industry Subcommittee agrees, in which case “Loan
Period” shall mean the period as so extended pursuant to the terms set forth herein. 
 Loan Recipient. The term
“Loan Recipient” shall mean StemCells, Inc. or any permitted assignee hereunder or transferee pursuant to applicable CIRM Regulations, including but not limited to Article V, Section D of the Loan Administration Policy 

Material Adverse Effect. The term “Material Adverse Effect” shall mean any event, condition or change which materially
and adversely affects or could reasonably be expected to materially and adversely affect the Business or the financial results of operations of the Loan Recipient, or its financial condition. 

No Go Milestones. The term “No Go Milestones” shall mean the milestones specified in the Notice of Loan Award the
occurrence of which, as determined by CIRM in its reasonable but sole discretion, permits either party to terminate the CIRM-Funded Project and, in accordance with the provisions in this Loan Agreement, the Parties’ obligations to continue to
fund the CIRM-Funded Project. 
 Notice of Loan Award or NLA. The terms “Notice of Loan Award” or
“NLA” shall mean the Notice of Loan Award executed by CIRM and Loan Recipient in connection with the Application. 

Organizational Documents. The term “Organizational Documents” shall mean Loan Recipient’s certificate of
incorporation and bylaws (or comparable organizational documents), each as amended to date, which have been furnished to CIRM by Loan Recipient. 
 PBGC. The term “PBGC” shall mean the Pension Benefit Guaranty Corporation or any Person succeeding to any or all of its functions under ERISA. 

Permitted Indebtedness. The term “Permitted Indebtedness” shall mean: 

(a) Loan Recipient’s Indebtedness to CIRM; 
 (b) Indebtedness existing on the Effective Date and described in Schedule 7.8; 

(c) Indebtedness secured by a lien described in Section 7.8(d) of this Agreement; 

  
 Page 5
of 59 
 Loan Agreement 

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

(e) Indebtedness arising from credit facilities, term loans and other debt financings (including, for the avoidance of doubt, any debt
financing provided by Loan Recipient’s equity investors), established to support the Loan Recipient’s working capital and general corporate needs; provided that such Indebtedness [****], unless Loan Recipient obtains the prior approval of
the President of CIRM; and 
 (f) Indebtedness that is subordinated to the Loan Recipient’s Indebtedness to CIRM, pursuant
to subordination, intercreditor or similar agreements reasonably satisfactory to CIRM. 
 Permitted Lien(s). The term
“Permitted Lien” or “Permitted Liens” shall have the meaning provided in Section 7.8 of this Agreement. 
 Person. The term “Person” shall mean an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization or any other entity or
organization, including a government or agency or political subdivision thereof. 
 Plan. The term “Plan” shall
mean any employee pension benefit plan covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Code that either (a) is maintained by a member of the Controlled Group for employees of a member
of the Controlled Group or (b) is maintained pursuant to the collective bargaining agreement or any other arrangement under which more than one employer makes contributions and to which a member of the Controlled Group is then making or
accruing an obligation to make contributions or has within the preceding five plan years made contributions. 
 Product.
The term “Product” shall mean the use of HuCNS-SC cells (purified human neural stem cells) to treat Alzheimer’s disease. 
 Product-Backed Loan. The term “Product-Backed Loan” shall have the meaning given in the Loan Administration Policy. 

Product Revenue. The term “Product Revenue” shall mean Net Commercial Revenue received by the Loan Recipient or by any
joint venture or subsidiary created by Loan Recipient, and any upfront licensing fees, development milestone payments received from a product development partner, and royalties on commercial sales, which arise from or are related to development
and/or commercial sale of the Product. 
 Progress Milestones. The term “Progress Milestones” shall mean those
milestones specified in the Notice of Loan Award by which CIRM will measure Loan Recipient’s progress in achieving the aims of the CIRM-Funded Project. 
 Project Costs. The term “Project Costs” shall mean those CIRM-funded costs identified in the budget included in the Notice of Loan Award, and any other CIRM-funded costs that may be
specifically identified with the CIRM-Funded Project and mutually agreed upon by CIRM and Loan Recipient. 
 [****] Certain information has been
omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 Page 6
of 59 
 Loan Agreement 

 Project Period. The term “Project Period” shall mean the total amount of
time, starting on the Project Start Date, that CIRM funds the CIRM-Funded Project and authorizes the principal investigator to conduct the work in the approved application. 
 Project Start Date. The term “Project Start Date” shall mean such date [****] that the parties agree to initiate work under the CIRM-Funded Project, which date will be the first of a
month and no earlier than the date of the first Disbursement. 
 Property. The term “Property” shall mean, as
to any Person, all types of real, personal, tangible, intangible or mixed property owned by such Person whether or not included in the most recent balance sheet of such Person and its subsidiaries under GAAP. 

Risk Premium Payment. The term “Risk Premium Payment” shall mean the payment or payments that Loan Recipient is required
to make to CIRM, in lieu of providing warrants, pursuant to Section E of Article VII of the Loan Administration Policy and as provided under Section 4.5. 
 Request for Applications 10-05 or RFA 10-05. The terms “Request for Applications 10-05” and “RFA 10-05” shall mean the request for applications issued by CIRM in 2010 for
Disease Team Therapy Development Awards, and include the “Supplement to RFA 10-05” issued in September 2011. 

Subsidiary. The term “Subsidiary” shall mean any corporation or other Person more than fifty percent (50%) of the
outstanding ordinary voting shares or other equity interest of which is at the time directly or indirectly owned by Loan Recipient, by one or more of its Subsidiaries, or by Loan Recipient and one or more of its Subsidiaries. 

Third Party. The term “Third Party” shall mean an entity other than CIRM and its Affiliates and Loan Recipient and its
Affiliates. 
 1.2 Other Terms. The definitions set forth in the CIRM Loan Administration Policy (Cal. Code Regs., tit.
17, § 100800 et seq.), the CIRM Scientific and Medical Accountability Standards (Cal. Code Regs., tit. 17, § 100010 et seq.), the CIRM Intellectual Property and Revenue Sharing Requirements for Non-Profit and For-Profit Grantees (Cal. Code
Regs., tit. 17, § 100600 et seq.), and the CIRM Grants Administration Policy for Academic and Non-Profit Institutions (Cal. Code Regs., tit. 17, § 100500 et seq.) shall apply to the terms used in this Agreement unless otherwise specified.

 ARTICLE II 
 INCORPORATION BY REFERENCE 
 2.1 Notice of Loan Award. The Notice of
Loan Award is hereby incorporated into this Agreement by reference. In the event of a conflict between provisions in this Loan Agreement and the Notice of Loan Award, the Loan Agreement shall prevail. 

[****] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the
omitted portions. 

  
 Page 7
of 59 
 Loan Agreement 

 2.2 Application for CIRM Disease Team Development Award. Loan Recipient’s
Application for a Disease Team Therapy Development Research Award, including all attachments and supplemental information, submitted to CIRM or its agents in response to RFA 10-05 is hereby incorporated into this Agreement by reference. 

ARTICLE III 

APPLICATION OF CIRM REGULATIONS 
 Loan Recipient shall be bound by, and shall comply with, all CIRM regulations applicable to loans to for-profit organizations, including the CIRM Loan Administration Policy (Cal. Code Regs., tit. 17,
§ 100800 et seq.), the CIRM Scientific and Medical Accountability Standards (Cal. Code Regs., tit. 17, § 100010 et seq.), the CIRM Intellectual Property Provisions Applicable to Loan Recipients (Cal. Code Regs., tit. 17, § 100801; and
the CIRM Grants Administration Policy for Academic and Non-Profit Institutions (Cal. Code Regs., tit. 17, § 100500 et seq.), as made applicable to loan recipients pursuant to the Loan Administration Policy, in each case as existing as of the
Effective Date. The Loan Administration Policy in effect on the Effective Date of this Agreement shall apply to Loan Recipient, the Loan and this Agreement, unless Loan Recipient and CIRM mutually agree that an amendment to the Loan Administration
Policy shall apply to Loan Recipient, the Loan and this Agreement. 
 ARTICLE IV 

LOAN AND TERMS OF PAYMENT 
 4.1 Maximum Loan Amount; Repayment. Subject to and upon the terms and conditions of this Agreement and in reliance on the representations and warranties set forth in this Agreement, CIRM agrees,
subject to the terms and conditions hereof, to provide Loan Recipient a Loan in an aggregate principal amount equal to the Loan Award. Loan Recipient agrees to repay the Loan Balance at the end of the Loan Period (or if such day is not a business
day, then, without any further penalty or fee, the first business day after such date), unless (a) Loan Recipient elects to extend the Loan Period pursuant to Section 4.8, in which case such repayment will occur at the end of the Loan
Period as so extended (or if such day is not a business day, then, without any further penalty or fee, the first business day after such date) subject to the Loan Recipient making payments during such extended Loan Period as provided under Article
VII, Section J of the Loan Administration Policy, (b) Loan Recipient’s obligation to repay the Loan Balance is accelerated pursuant to Sections 4.9 or 8.4, in which case such repayment will occur upon the effective date of such
acceleration, (c) the Loan Recipient transfers the Loan to a new Loan Recipient pursuant to Article V, Section D.5 of the Loan Administration Policy and CIRM’s President consents to such transfer as provided in Article V, Section D.5 of
the Loan Administration Policy, or (d) all or part of the Loan is forgiven pursuant to Article VII, Section I of the Loan Administration Policy and not reinstated pursuant to Article VII, Section I of the Loan Administration Policy,
Section 4.10 of this Agreement, or CIRM has terminated the loan pursuant to Section 8.1(f) and no Event of Default then exists, in which case Loan Recipient shall have no obligation to repay the Loan Balance. 

4.2 Use of Proceeds. The Loan Recipient shall use the proceeds of the Loan solely for the purposes of funding the CIRM-Funded
Project as specified in the Budget. The parties 

  
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understand and agree that any budgets delivered hereunder are good faith estimates made by Loan Recipient based upon information then available to it. Any changes to the Budget shall be subject
to Section D.4 of Article V of the CIRM Grants Administration Policy for Academic and Non-Profit Institutions. 
 4.3
Interest. The base interest rate for each Disbursement of the Loan shall be a per annum rate equal to the London Inter-Bank Offered Rate (“LIBOR”) for a one-year deposit in U.S. dollars, as published by the Wall Street Journal
(or if the Wall Street Journal is not available, a comparable source) on the date of the applicable Disbursement to Loan Recipient, plus two percent (2%) (the “Base Rate”). The interest rate so determined shall apply only to
the Disbursed Loan Amount being disbursed on such Disbursement date, and not for the Disbursed Loan Amount outstanding before such Disbursement date or for any subsequent Disbursement. Interest shall be compounded annually on the principal amount
disbursed by CIRM from the date of the applicable Disbursement to Loan Recipient. For years six through ten of the Loan Period, the interest rate for each Disbursement shall increase from its Base Rate by an additional one percent (1%) on each
of the fifth, sixth, seventh, eighth, and ninth anniversaries of the Project Start Date. If for any reason on a date a Disbursement is required to be made LIBOR is not being published or is not available, any Disbursement required to be made on such
date shall bear interest at the previously established LIBOR rate until LIBOR is available or published (on which date such Disbursement shall begin bearing interest as provided in this Section 4.3). Any amount not paid when due hereunder shall
thereafter bear interest at the then-applicable per annum interest rate specified hereunder, plus five percent (5%). 
 4.4
Disbursement Procedures and Limitations. 
 (a) Subject to and upon the terms and conditions of this Agreement, CIRM agrees,
unless otherwise notified in writing by Loan Recipient, to disburse the proceeds of the Loan (each a “Disbursement”) at six-month intervals according to the payment schedule set forth in the NLA, unless such schedule is modified by
agreement of the parties or otherwise as set forth herein. The aggregate of all Disbursements made pursuant to this Agreement shall not exceed the Loan Award. Each Disbursement shall cover CIRM’s portion of the costs of the CIRM-Funded Project
for the next six months (with the first six-month period commencing as of the Project Start Date and each subsequent Disbursement covering the next succeeding six-month period); and, in addition, the first Disbursement shall cover Loan
Recipient’s costs and expenses for the CIRM-Funded Project during the 90-day period immediately before the Project Start Date. 
 (b) CIRM may temporarily suspend or permanently cease Disbursements pursuant to the Loan Administration Policy, including without limitation, Article V, Section J, provided, however, that CIRM shall
give Loan Recipient written notice of its intent to suspend or permanently cease Disbursements and the reason therefore (a “Default”) and Loan Recipient shall have [****] days in which to cure such Default. 

(c) CIRM may temporarily suspend or permanently cease Disbursements if CIRM determines, in its reasonable, but sole discretion, that a No
Go Milestone has occurred, provided, however, that CIRM shall give Loan Recipient written notice of its intent to suspend or permanently cease Disbursements and the reason therefore and Loan Recipient shall have [****] days in which to correct such
No Go Milestone. 
 [****] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been
requested with respect to the omitted portions. 

  
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 (d) CIRM may temporarily suspend or permanently cease Disbursement if CIRM determines, in
its reasonable but sole discretion, that for any Disbursement Loan Recipient has not met the Financial Milestone for such Disbursement Date; provided, however, if Loan Recipient fails to meet a Financial Milestone for a certain Disbursement Date,
then Loan Recipient shall have 60 days to cure said failure and demonstrate that Loan Recipient now satisfies said Financial Milestone. At least 30 days prior to any Disbursement Date on which a Financial Milestone needs to be satisfied, Loan
Recipient shall submit a report to CIRM, in such detail as CIRM shall require, showing whether or not Loan Recipient will satisfy the Financial Milestone on such Disbursement Date. 

(e) Failure to meet Progress Milestones is governed by paragraph E of the Terms and Conditions of the Award section of the Notice of Loan
Award. 
 4.5 Risk Premium. 
 (a) In lieu of providing CIRM with warrants, Loan Recipient shall pay CIRM a one-time “Risk Premium Payment” as contemplated by Section E.2.c of Article VII of the Loan Administration
Policy, payable only upon the achievement of each of the following commercial milestones, and in accordance with the following schedule: 
 Upon receipt of $50 million of Product Revenue in a fiscal year, Loan Recipient shall pay to CIRM an amount equal to one hundred percent (100%) of the Disbursed Loan Amount. 

Upon receipt of $300 million of Product Revenue cumulatively, Loan Recipient shall pay to CIRM an amount equal to two hundred percent
(200%) of the Disbursed Loan Amount. 
 Upon receipt of $600 million of Product Revenue cumulatively, Loan Recipient shall
pay to CIRM an amount equal to two hundred percent (200%) of the Disbursed Loan Amount. 
 In no event shall Loan Recipient
owe more than five times the Disbursed Loan Amount. In no event shall Loan Recipient owe warrants or any other equity to CIRM in connection with the Loan. 
 (b) The Loan Recipient shall have no obligation to pay any Risk Premium Payment which is due and payable after (i) Loan Recipient transfers the Loan to a new Loan Recipient upon approval of
CIRM’s President and in accordance with Article V, Section D of the Loan Administration Policy, (ii) Loan Recipient assigns this Agreement and any Disbursement hereunder to a permitted assignee, (iii) the funding is discontinued or
suspended by CIRM for any reason other than for termination under Section 8.1(a)-(e), (iv) all or part of the Loan is 

  
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forgiven pursuant to Section 4.10 of this Agreement and not otherwise reinstated pursuant to Section I of Article VII of the Loan Administration Policy, or (v) CIRM has terminated the
loan pursuant to Section 8.1(f) and no Event of Default then exists, in which case Loan Recipient shall have no obligation to pay any Risk Premium Payment; provided, however, that the obligation to pay a Risk Premium Payment will automatically
be reinstated pursuant to Article VII, Section I of the Loan Administration Policy, in the event that Loan Recipient obtains revenues arising in whole or in part from the CIRM-Funded Project that meet the specified Product Revenue thresholds set
forth in the Section E.2.c of Article VII of the Loan Administration Policy. 
 (c) The Loan Recipient shall pay any Risk
Premium Payments owed pursuant hereto in accordance with the provisions of Section E.2.e of Article VII of the Loan Administration Policy. 
 4.6 Indirect Costs and Facilities Costs. 
 (a) The Loan shall cover Indirect
Costs incurred by Loan Recipient equal to twenty percent (20%) of allowable Direct Research Funding Costs awarded by CIRM. The Loan shall also cover Facilities Costs incurred by Loan Recipient equal to thirty-five percent (35%) of
allowable Project Costs. 
 (b) CIRM shall deduct [****] from the Indirect Costs portion of the initial Disbursement for the
costs incurred by CIRM in engaging a financial consultant to conduct due diligence of Loan Recipient prior to the award of the Loan and to conduct financial due diligence during the Loan Period. In addition, CIRM shall deduct [****] from the
Indirect Costs portion of the first Disbursement made in each of the second, third, and fourth years of the Loan Period for the costs incurred by CIRM in engaging a financial consultant to conduct financial due diligence of Loan Recipient during the
Loan Period. 
 (c) If Loan Recipient requests to extend the term of the Loan Period pursuant to Section 4.8 and Section F
of Article VII of the Loan Administration Policy and the Intellectual Property and Industry Subcommittee agrees, Loan Recipient shall pay CIRM, in addition to interest and principal owed, [****] per year, payable on or before March 15 of each
year, for each year the Loan is extended to reimburse CIRM for the costs that it incurs in engaging a financial consultant to conduct financial due diligence of Loan Recipient during the extension. 

4.7 Repayment at End of Loan Period/Prepayment. 
 (a) Unless (i) the Loan Period has been extended pursuant to Section 4.8, (ii) the repayment of the Loan Balance has been accelerated pursuant to Sections 4.9 or 8.4, (iii) the Loan
has been transferred by Loan Recipient pursuant to Article V, Section D of the Loan Administration Policy and CIRM’s President consents to such transfer as provided in Article V, Section D of the Loan Administration Policy, (iv) all or
part of the Loan is forgiven pursuant to Section 4.10 of this Agreement and the Loan has not been reinstated pursuant to Article VII, Section I of the Loan Administration Policy, or (v) CIRM has terminated the loan pursuant to
Section 8.1(f) and no Event of Default then exists, the Loan Balance, and all unpaid fees and other amounts due hereunder, is due and payable in full to CIRM on the last day of the Loan 
 [****] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
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Period (unless such day is not a business day, then, without any additional fees or penalties but with additional interest, on the next business day). Loan Recipient may elect to prepay the full
amount of the balance of Loan Balance, or to make one or more partial prepayments, each in an amount of not less than $100,000, and in each case with accrued and unpaid interest on the amount prepaid, at any time, without penalty or premium. Any
amounts prepaid hereunder may not be re-borrowed by Loan Recipient. 
 (b) Beginning on the fifth anniversary of the Project
Start Date, Loan Recipient shall repay interest pursuant to Article VII, Section J of the Loan Administration Policy. 
 4.8
Loan Extension. The Loan Recipient may request to extend the term of the Loan Period, provided that the Loan Recipient provides notice to CIRM at least ninety (90) days prior to the end of the current Loan Period of Loan Recipient’s
intent to request to extend the Loan Period. Any extension pursuant to this section shall be subject to the approval of the Intellectual Property and Industry Subcommittee based upon the recommendation of the President of CIRM. 

4.9 Loan Acceleration. CIRM shall have the right but not the obligation to require the Loan Recipient to accelerate repayment of
the Loan Balance if: (i) a Change of Control occurs, (ii) if this Agreement is terminated pursuant to Section 8.2(d), (e), (f), or (h), or because Loan Recipient has committed a material breach of the Loan Administration Policy or
(iii) the Loan Recipient is found guilty of criminal, scientific or financial misconduct pursuant to a judicial proceeding, or in the case of scientific misconduct, an investigation conducted by an independent body satisfactory to CIRM. In the
event of a Change of Control, a decision to accelerate repayment of the Loan Balance shall be made by the Intellectual Property and Industry Subcommittee of CIRM’s Governing Board, based on the recommendation of the President of CIRM. If the
proposed Change of Control is not a matter of public knowledge, the Intellectual Property and Industry Subcommittee of CIRM’s Governing Board shall consider the matter in closed session to protect the confidentiality of the Change of Control
transaction. Notwithstanding the above, in the event of any Change of Control, repayment of the Loan Balance shall not be accelerated if the conditions specified in Section H.1 of Article VII of the Loan Administration Policy are satisfied.

 4.10 Loan Forgiveness. 
 (a) Forgiveness of the Loan Balance shall be governed by Article VII, Section I of the Loan Administration Policy, including the reinstatement of the obligation to repay the Loan Balance in the event that
the Loan Recipient obtains revenues arising in whole or in part from the CIRM-Funded Project, provided that forgiveness shall be available during the Project Period only if Loan Recipient abandons the CIRM-Funded Project for failure to meet, or the
occurrence of, one or more No Go Milestones and CIRM is not entitled to accelerate the Loan pursuant to sections 4.9 (i) – (iii) above. After expiration of the Project Period, Loan Recipient shall have the right to abandon the
Business for whatever reason it deems appropriate and in that event, the Loan Balance shall be forgiven pursuant to Article VII, Section I of the Loan Administration Policy. 

  
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 (b) The Loan, even if it has been forgiven, will automatically be reinstated in the event
that Loan Recipient subsequently obtains Net Commercial Revenue arising in whole or in part from the CIRM-Funded Project. If the Loan Recipient’s obligation to repay has been forgiven pursuant to Section 4.10(a) but further activity
results in a repayment obligation under this Section 4.10(b), the Loan Recipient must promptly notify CIRM. In such event, Loan Recipient’s repayment obligations hereunder will automatically be reinstated, except as otherwise agreed by
Loan Recipient and the Intellectual Property and Industry Subcommittee. In no event will the interest rate be higher than the per annum rate equal to LIBOR for a one-year deposit in U.S. dollars, as published by the Wall Street Journal (or if the
Wall Street Journal is not available, a comparable source) on the date of reinstatement plus 2%. The Loan Balance owed shall be reduced by any amount previously repaid to CIRM prior to forgiveness. Upon reinstatement of the Loan, the Loan Recipient
shall be eligible for subsequent forgiveness and reinstatement in accordance with the terms hereof. 
 4.11 Effective
Date. This Agreement shall take effect on the Effective Date. This Agreement shall continue in full force and effect for so long as a Loan Balance remains outstanding or CIRM has any obligation to make Disbursements under this Agreement, unless
it is earlier terminated pursuant to Section 8.1, the repayment obligation has been accelerated pursuant to Sections 4.9 or 8.4, the Loan Balance has been forgiven pursuant to Section 4.10, or the Loan Recipient has transferred the
Agreement pursuant to Article V, Section D of the Loan Administration Policy.  
 4.12 Initial Disbursement.
Concurrently with the initial Disbursement: 
 (a) CIRM shall have received this Agreement duly executed by Loan Recipient and
the Budget; 
 (b) CIRM shall have received copies of Loan Recipient’s certificate of incorporation and bylaws, or articles
of organization or certificate of formation, as applicable, and operating agreement (or comparable organizational documents) and any amendments thereto, certified in each instance by its Secretary or Assistant Secretary; 

(c) CIRM shall have received copies of resolutions of Loan Recipient’s Board of Directors (or similar governing body) and (if
applicable) stockholders authorizing the execution, delivery and performance of this Agreement and the other Loan Documents, and the consummation of the transactions contemplated hereby and thereby, all certified in each instance by its Secretary or
Assistant Secretary; 
 (d) CIRM shall have received copies of the certificates of good standing for Loan Recipient (dated no
earlier than 30 days prior to the date hereof) from the office of the Secretary of State of its incorporation or organization and of each state in which it is qualified to do business as a foreign corporation or organization; 

  
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 (e) CIRM shall have received a list of the Loan Recipient’s Authorized Representatives;

 (f) CIRM shall have received certification of the insurance required under Section 7.3 of this Agreement; 

(g) CIRM shall have received UCC, tax and judgment lien search results against the Property of Loan Recipient evidencing the absence of
Liens on its Property except as permitted by Section 7.8 hereof; 
 (h) CIRM shall have received the favorable written
opinion of Loan Recipient’s in-house or outside counsel, in the form attached hereto as Exhibit C, regarding the existence and power of Loan Recipient, the due authorization of the Loan Agreement (including the transactions
contemplated thereby) and the enforceability of the Loan; and 
 (i) Loan Recipient shall certify that no Material Adverse
Effect has occurred since the date that Loan Recipient submitted its application to CIRM. 
 (j) Loan Recipient shall have
demonstrated to CIRM’s reasonable but sole satisfaction that it has satisfied the Financial Milestone. 
 4.13 All
Disbursements. At the time of each subsequent Disbursement hereunder: 
 (a) the representations and warranties set forth in
Sections 5.1, 5.2, 5.4, 5.5, 5.7, 5.8, 5.9, 5.10, 5.11 5.12, 5.13, 5.14, and 5.15 shall be true and correct as of the date of such Disbursement, unless (i) the same expressly relate to an earlier date; or (ii) changes thereto are disclosed
to CIRM in updates to the Schedules hereto provided by Loan Recipient at least three (3) business days prior to such Disbursement; provided that, (A) in the case of (i) and (ii), no Material Adverse Effect exists, and (B) clauses
(i) and (ii) shall not apply to the first two sentences of Section 5.1 and the first two sentences of Section 5.2; and 
 (b) no Event of Default or other event permitting termination of this Agreement shall have occurred and be continuing or would occur as a result of such Disbursement. 

Acceptance by Loan Recipient of a Disbursement hereunder through deposit of such Disbursement to Loan Recipient’s account shall be
deemed to be a representation and warranty by Loan Recipient on the date of such Disbursement as to the matters specified in subsections (a) through (b), inclusive, of this Section 4.13; provided, however, that CIRM may continue to make
Disbursements in its sole discretion, notwithstanding the failure of Loan Recipient to satisfy one or more of the conditions set forth above and any such Disbursements so made shall not be deemed a waiver of any Event of Default or other condition
set forth above that may then exist. 

  
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 ARTICLE V 
 LOAN RECIPIENT REPRESENTATIONS AND WARRANTIES 
 Except as set forth in the
Schedules hereto delivered by Loan Recipient and with respect to Disbursements made after the date hereof, as such schedules are updated by Loan Recipient during the term of this Agreement, Loan Recipient represents and warrants to CIRM as follows:

 5.1 Due Organization and Qualification. Loan Recipient is duly organized, validly existing and in good standing under
the laws of the state of its incorporation and is qualified to do business in each jurisdiction in which such qualification is required, except where the failure to be so qualified would not have either individually or in the aggregate, a Material
Adverse Effect on the Loan Recipient or the rights of CIRM under this Agreement, whether individually or taken as a whole. Loan Recipient has all required power and authority to own its property, to carry on its business as presently conducted or
contemplated, to enter into this Agreement, and generally to carry out the transactions contemplated hereby. The copies of Loan Recipient’s Organizational Documents provided to CIRM are correct and complete as of the date hereof. Loan Recipient
is not in violation of any term of its Organizational Documents, as amended, or in violation of any term of any agreement, instrument, judgment, decree, order, statute, rule or government regulation applicable to Loan Recipient or to which Loan
Recipient is a party, in any case where any violation, noncompliance or default would result in a Material Adverse Effect. 

5.2 Due Authorization; No Conflict. Loan Recipient is duly authorized to enter into this Agreement and the other Loan Documents,
and the execution, delivery and performance thereof are valid and binding obligations of Loan Recipient enforceable in accordance with their terms, except as may be limited by bankruptcy, insolvency, reorganization or other laws affecting the
enforcement of creditors’ rights generally. The execution, delivery, and performance of the Loan Documents are within Loan Recipient’s powers, have been duly authorized, and are not in conflict with nor constitute a breach of any provision
contained in Loan Recipient’s Organizational Documents, as amended, nor will they constitute an event of default under any material agreement by which Loan Recipient is bound. The Loan Documents will not conflict with any other material
agreement or contract to which Loan Recipient is a party and will not violate any law, regulation or order by which Loan Recipient is bound, nor is Loan Recipient in default under any material agreement by which it is bound, other than where any
violation, noncompliance or default would not result in a Material Adverse Effect. 
 5.3 Name; Location of Chief Executive
Office. Except as disclosed in Schedule 5.3, Loan Recipient has not done business under any name other than that specified on the signature page hereof, and its exact legal name is as set forth in the first paragraph of this Agreement. The chief
executive office of Loan Recipient is located at the address indicated on the signature page hereof. 
 5.4 Compliance with
Laws. Loan Recipient is, and to Loan Recipient’s knowledge, all premises occupied and used by Loan Recipient are, in compliance in all material respects with all federal, state, municipal and local laws, ordinances and regulations, if any,
that may in any way affect Loan Recipient’s Business, other than where a failure to comply would not result in a Material Adverse Effect. 

  
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 5.5 Government Consents. Loan Recipient has obtained all consents, approvals and
authorizations of, made all declarations or filings with, and given all notices to, all governmental authorities that are necessary for the continued operation of Loan Recipient’s business as currently conducted, other than where failure to do
so would not result in a Material Adverse Effect. 
 5.6 Full Disclosure. Neither the Loan Documents nor any document,
certificate, projection, statement, representation or warranty furnished to CIRM in writing by or on behalf of Loan Recipient, including but not limited to documents submitted to CIRM and its agents by Loan Recipient in response to RFA 10-05,
contains any untrue statement of a material fact, and none of the Loan Documents or such other documents, certificates, projections, statements, representations or warranties omit to state a material fact necessary in order to make the statements
contained herein or therein not misleading and except as disclosed in Loan Recipient’s public filings with the U.S. Securities and Exchange Commission. CIRM recognizes that the estimates, projections and forecasts provided by Loan Recipient in
good faith and based upon reasonable assumptions are not to be viewed as facts, and that actual results during the period or periods covered by any such estimates, projections and forecasts may materially differ from the projected or forecasted
results. 
 5.7 Litigation. Except as set forth on Schedule 5.7, there is no action, suit or claim at law or in equity by
any third party, or before or by a governmental agency or instrumentality that is currently pending or, to the knowledge of Loan Recipient, threatened against Loan Recipient or affecting any of its properties, assets or, to the knowledge of Loan
Recipient, its employees which seeks to prevent the consummation of the transactions contemplated by the Loan Documents or which if adversely decided against the Loan Recipient would have a Material Adverse Effect. 

5.8 Bankruptcy. Loan Recipient: (i) does not intend to file a voluntary petition for relief pursuant to 11 U.S.C. § 101
et seq. – Title 11 of the United States Code (the “Bankruptcy Code”); (ii) does not have any knowledge of any circumstance that may result in the filing of a voluntary petition for relief pursuant to the Bankruptcy Code;
and (iii) does not have any notice of any creditor’s intention to file an involuntary petition for relief pursuant to the Bankruptcy Code. 
 5.9 Sufficient Assets. 
 In the good faith estimate of Loan Recipient, the
aggregate value of all of the assets of Loan Recipient, at a fair valuation, is equal to or greater than the total amount of Loan Recipient’s currently existing balance sheet liabilities (excluding the Loan, warrant liabilities, and Permitted
Indebtedness). The “fair valuation” of Loan Recipient’s assets shall be determined on the basis of that amount which may be realized within a reasonable time, in any manner through realization of the value of, or dispositions of, such
assets at fair market value (i.e., the amount which could be obtained for the properties in question within such period by a capable and diligent business person from an interested buyer who is willing to purchase under ordinary selling conditions).
Loan Recipient is able to pay its debts as they become due in the ordinary course of business for the next [****] months. 
 [****] Certain
information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
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 5.10 Title to Properties. Except as set forth on Schedule 5.10, Loan Recipient
has good and marketable title in fee simple to such of its fixed assets as are real property, and good and merchantable title to all of its other properties and assets used in the conduct of the Business by Loan Recipient, free and clear of
mortgages, security interests, pledges, charges, liens, restrictions or encumbrances except for Permitted Liens or as disclosed in writing to CIRM. To Loan Recipient’s knowledge, all machinery and equipment included in such properties described
in the previous sentence is in good condition and repair, ordinary wear and tear excepted, and all leases of real or personal property used in the conduct of the Business by Loan Recipient to which Loan Recipient is a party are fully effective and
afford Loan Recipient peaceful and undisturbed possession of the subject matter of such leases. 
 5.11 Indebtedness.
Loan Recipient has no outstanding Indebtedness, except for Permitted Indebtedness or as previously disclosed to CIRM in writing. 
 5.12 Tax Matters. Loan Recipient has filed all foreign, federal, state, and local income, excise or franchise tax returns, real estate, and personal property tax returns, sales and use tax returns,
and other tax returns required to be filed by it (and such returns are true and correct in all material respects) and has paid all taxes owed by it, except taxes which have not yet accrued or otherwise become due or for which adequate provision has
been made in the pertinent financial statements. All taxes and other assessments and levies which Loan Recipient is required to withhold or collect have been withheld and collected and have been paid over to the proper governmental authorities,
except where the failure to pay would not have a Material Adverse Effect. With regard to the income tax returns of Loan Recipient, Loan Recipient has not received notice of any audit or of any purported deficiencies from any taxing authority, and no
controversy with respect to taxes of any type is pending or, to the knowledge of Loan Recipient, threatened, unless, after the date hereof, such notice or controversy is disclosed to CIRM in writing. 

5.13 Contracts and Commitments. Loan Recipient is not in default under any contract, obligation or commitment, where such default
would have a Material Adverse Effect. To the knowledge of Loan Recipient, there is no state of facts which upon notice or lapse of time or both would constitute such a default, nor would the execution, issuance and delivery of this Agreement, or the
consummation of any transaction contemplated hereby, constitute such a default, where such default would have a Material Adverse Effect. 
 5.14 Proprietary Rights; Employee Restrictions. 
 (a) All Intellectual
Property Rights created or generated by any employee or officer of Loan Recipient in the course of their performance of the CIRM-Funded Project for Loan Recipient have been assigned to Loan Recipient. Except as disclosed in Schedule 5.14, Loan
Recipient has not received communications from any Third Party alleging that the currently contemplated activities or products related to the Business infringe on any Intellectual Property Rights of any such third Person, nor have any of the
Intellectual Property Rights necessary to the conduct of the Business been subject to U.S. Patent Office interference proceedings, a re-examination, or any other proceeding challenging Loan Recipient’s patent rights related to the Business.
Loan Recipient has taken commercially reasonable measures to 

  
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protect and preserve the security, confidentiality (except and to the extent where disclosure is required by law or such information is already in the public domain) and value of its Intellectual
Property Rights, including its trade secrets and other confidential information. For the purposes of this Agreement, “Intellectual Property Rights” shall mean any and all rights in patents, patent applications, copyrights, copyright
applications, licenses, databases, computer programs and other computer software user interfaces, know-how, test data and results not disclosed to regulators, financial and cost information and data, trade secrets, trademarks, trademark
applications, service marks, service mark applications, trade names, customer lists, proprietary technology, processes and formulae, source code, object code, algorithms, architecture, structure, inventions, trade dress, logos and designs and all
documentation and media constituting, describing or relating to the foregoing. 
 (b) All employees of Loan Recipient have
entered into non-disclosure and assignment of invention agreements for the benefit of Loan Recipient. 
 5.15 Regulatory
Compliance. Loan Recipient is not an “investment company” or a company “controlled” by an “investment company” under the Investment Company Act of 1940. Loan Recipient is not engaged as one of its activities in
extending credit for margin stock (under Regulations G, T and U of the Federal Reserve Board of Governors). To Loan Recipient’s knowledge based on due inquiry, Loan Recipient is in compliance with the Federal Fair Labor Standards Act. Loan
Recipient’s properties or assets have not been used by Loan Recipient or, to Loan Recipient’s knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than minimal amounts
legally in the ordinary course of Loan Recipient’s business. Loan Recipient has delivered to CIRM, and at all times will deliver to CIRM promptly after delivery or receipt, copies of all investigations relating to hazardous substances at any
facilities housing any element(s) of the CIRM-Funded Project, and any conclusions thereof. 
 5.16 Sophistication of Loan
Recipient. Loan Recipient, by reason of its business and financial experience, has the capacity to protect its own interests in connection with the transactions contemplated hereby and by the other Loan Documents. 

ARTICLE VI 

CIRM REPRESENTATIONS, WARRANTIES AND COVENANTS 
 6.1 Due Authorization; No Conflict. CIRM hereby represents and warrants that it is duly authorized to enter into this Agreement and that the execution, delivery and performance thereof will not
conflict with any other agreement or contract to which it is a party and will not, to the best of its knowledge, violate any law, regulation or order by which it is bound. 
 6.2 Enforceability. This Agreement has been duly executed and delivered by CIRM and constitutes a valid and binding obligation of CIRM, enforceable against CIRM in accordance with its terms,
subject only to the effect, if any, of (i) laws affecting the rights of creditors generally and (ii) rules of law governing specific performance, injunctive relief and other equitable remedies. 

  
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 6.3 Sophistication of CIRM. CIRM, by reason of its business and financial experience,
has the capacity to protect its own interests in connection with the transactions contemplated hereby and by the other Loan Documents. 
 6.4 Subordination by CIRM. CIRM agrees from time to time to consider requests by Loan Recipient for CIRM to subordinate the Indebtedness of Loan Recipient hereunder to other Permitted Indebtedness
of Loan Recipient, but CIRM’s agreement or refusal to any such subordination and any terms thereof shall be in its sole discretion. 
 ARTICLE VII 
 COVENANTS 

7.1 Information and Access Covenants. During such time as any Loan Balance remains outstanding, except to the extent compliance in
any case or cases is waived in writing pursuant to the terms of Section 10.3 hereof, Loan Recipient shall: 
 (a) deliver to CIRM, as soon as practicable, but in any event by the end of February of each fiscal year (or within 60 days of the end of the fiscal year, if the end of the Loan Recipient’s fiscal
year is other than December 31st), an updated budget
for the Business for such fiscal year; 
 (b) deliver to CIRM such other information relating to the financial condition,
business or corporate affairs related to the Business of Loan Recipient as CIRM may from time to time reasonably request; 
 (c)
at the reasonable request (including with respect to the number of such requests, the date, and the location) of CIRM, provide CIRM Representatives reasonable access, at reasonable and mutually acceptable times during normal business hours to
all of the properties, books, contracts, documents, insurance policies, records and personnel (including officers) of or with respect to the Business of Loan Recipient and shall furnish to CIRM Representatives such information related to the
Business as they may from time to time reasonably request; and 
 (d) deliver to CIRM reports detailing scientific progress and
activities regarding the Business as specified in the Notice of Loan Award. 
 7.2 Indemnification. Loan Recipient shall
indemnify, defend and hold harmless CIRM, the State of California, and their respective agents, officers and employees (“CIRM Indemnitees”) against any and all liabilities, losses, damages, claims, penalties, costs or expenses,
interest, awards, judgments and penalties brought by or awarded to any Third Party which any of them may sustain, incur or be required to pay (howsoever they may occur), including, without limitation, reasonable attorneys’ and consultants’
fees (“Losses”), resulting from, arising out of, or in connection with: (i) Loan Recipient’s execution, delivery and performance of Loan Recipient’s obligations under the Loan Documents; (ii) the operation of
Loan Recipient’s Business; (iii) any material breach by Loan Recipient of any representation or warranty or covenant under the Loan Documents; (iv) any CIRM-Funded Invention, as defined in Cal. Code Regs., tit. 17, §100601(c); or
(v) the performance of the CIRM-Funded Project by Loan Recipient; provided that Loan Recipient shall not be required to indemnify the CIRM 

  
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Indemnitees to the extent any such Losses are caused by (a) such CIRM Indemnitees’ gross negligence or willful misconduct, (b) a breach of CIRM’s obligations under this
Agreement or any other Loan Document or (c) a breach of any of CIRM’s representations and warranties made in this Agreement or any other Loan Document. Loan Recipient’s indemnity obligations under this paragraph are in addition to
Loan Recipient’s indemnity obligations under the Loan Administration Policy. Loan Recipient’s agreement to indemnify, defend and hold the CIRM Indemnitees harmless as provided above is conditioned on the CIRM Indemnitee (i) providing
prompt written notice to Loan Recipient of any potential or actual Losses within thirty (30) days after the CIRM Indemnitee has knowledge of such potential or actual Losses, provided that failure to provide notice within thirty (30) days
shall not excuse Loan Recipient obligation under this section unless such delay actually prejudiced the defense of the claim; (ii) permitting the Loan Recipient to assume full responsibility to investigate, prepare for and defend against any
such Losses, provided that the selection of counsel is reasonably satisfactory to CIRM; (iii) assisting the Loan Recipient, at the Loan Recipient’s reasonable expense, in the investigation of, preparation for and defense against any claim,
demand or action relating to such Losses; and (iv) not compromising or settling any claim, demand or action in respect of such Losses without the Loan Recipient’s written consent not to be unreasonably withheld, preconditioned or delayed.

 7.3 Required Insurance. During the term of this Agreement, Loan Recipient shall procure and maintain at its expense
insurance customary for companies similarly situated with Loan Recipient and protecting Loan Recipient and CIRM (including naming CIRM as an additional insured and loss payee on such policies) against all claims, losses or expenses resulting from
alleged, adjudicated or statutory liability for injury to Persons or damage to property arising out of or in connection with any CIRM-Funded Invention, as defined in Cal. Code Regs., tit. 17, §100601(c), and the performance of the CIRM-Funded
Project by Loan Recipient. 
 7.4 Maintenance of Business. Loan Recipient shall preserve and maintain its existence.
[****] 
 7.5 Maintenance of Properties. Loan Recipient shall make commercially reasonable efforts to maintain, preserve
and keep its property, plant and equipment in good repair, working order and condition (ordinary wear and tear excepted), and shall from time to time make all necessary and proper repairs, renewals, replacements, additions and betterments thereto so
that at all times the efficiency thereof shall be fully preserved and maintained, other than where failure to do so would not result in a Material Adverse Effect. 
 7.6 Taxes and Assessments. Loan Recipient shall duly pay and discharge all taxes, rates, assessments, fees and governmental charges upon or against it or its Property, in each case before the same
become delinquent and before penalties accrue thereon, unless and to the extent that the same are being contested in good faith and by appropriate proceedings which prevent enforcement of the matter under contest and adequate reserves are provided
therefor. 

  
 [****] Certain information
has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 
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 7.7 No Guaranties. During such time as any Loan Balance remains outstanding, except
to the extent compliance in any case or cases is waived in writing pursuant to Section 10.3 hereof, and other than any liabilities or guarantees in connection with credit support provided in connection with (A) Permitted Indebtedness or
(B) any investment permitted under subsections (f), (g) and (h) of Section 7.9, Loan Recipient shall not become liable as endorser, guarantor, surety or otherwise for any debt, obligation or undertaking of any other Person
exceeding [****] individually or in the aggregate, or otherwise agree to provide funds for payment of the obligations of another, or supply funds thereto or invest therein or otherwise assure a creditor of another against loss, or apply for or
become liable to the issuer of a letter of credit which supports an obligation of another. 
 7.8 Liens. During such time
as any Loan Balance remains outstanding, except to the extent compliance in any case or cases is waived in writing pursuant to Section 10.3 hereof, Loan Recipient shall not create, incur or permit to exist any Lien of any kind on any Property
owned by Loan Recipient; provided, however, that the foregoing shall not apply to nor operate to prevent the following “Permitted Liens”: 
 (a) Liens arising by statute in connection with worker’s compensation, unemployment insurance, old age benefits, social security obligations, taxes, assessments, statutory obligations or other
similar charges (other than Liens arising from ERISA), good faith cash deposits in connection with tenders, contracts or leases to which Loan Recipient is a party or other cash deposits required to be made in the ordinary course of business,
provided in each case that the obligation is not for borrowed money and that the obligation secured is not overdue or, if overdue, is being contested in good faith by appropriate proceedings which prevent enforcement of the matter under contest and
adequate reserves have been established therefore; 
 (b) mechanics’, workmen’s, materialmen’s, landlords’,
carriers’ or other similar Liens arising in the ordinary course of business with respect to obligations which are not due or which are being contested in good faith by appropriate proceedings which prevent enforcement of the matter under
contest; 
 (c) judgment Liens and judicial attachment Liens not constituting an Event of Default under Section 8.2(b)
hereof and the pledge of assets for the purpose of securing an appeal, stay or discharge in the course of any legal proceeding, provided that the aggregate amount of such judgment liens and attachments and liabilities of Loan Recipient secured by a
pledge of assets permitted under this subsection, including interest and penalties thereon, if any, shall not be in excess of [****] at any one time outstanding; 
 (d) Liens on equipment of Loan Recipient created solely for the purpose of securing indebtedness incurred to finance the purchase price of such Property, provided that no such Lien shall extend to or
cover other Property of Loan Recipient other than the respective Property so acquired, and the principal amount of indebtedness secured by any such Lien shall at no time exceed the purchase price of such Property, as reduced by repayments of
principal thereon; 

  
 [****] Certain information
has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 
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 (e) Liens arising out of Indebtedness (other than the Loan itself) incurred by Loan
Recipient solely to fund the cost and expenses of the CIRM-Funded Project; 
 (f) Liens disclosed in Schedule 7.8(f), including
the amounts thereof; 
 (g) Liens for taxes, fees, assessments or other governmental charges or levies that either are not
delinquent or are being contested in good faith by appropriate proceedings; 
 (h) Liens securing Permitted Indebtedness;

 (i) Liens incurred in the extension, renewal or refinancing of the Indebtedness secured by Liens described in
subsections (d), (e), (f) or (h); provided that any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the Indebtedness may not increase; 

(j) Leases, subleases, licenses, sublicenses, options, rights of first refusal, rights to negotiate and the like granted to third parties
in the ordinary course of Loan Recipient’s business, provided that the foregoing do not, individually or in the aggregate, have a Material Adverse Effect; and 
 (k) Liens arising from the rights of a licensor or grantor under the terms and conditions of a license, option or other right granted to or by Loan Recipient, provided that any such Lien does not encumber
the Business. 
 7.9 Investments, Acquisitions, Loans and Advances. During such time as any Loan Balance remains
outstanding, except to the extent compliance in any case or cases is waived in writing pursuant to Section 10.3 hereof, Loan Recipient shall not, directly or indirectly, make, retain or have outstanding any investments (whether through purchase
of stock or obligations or otherwise) in, or loans or advances to (other than for travel advances and other similar cash advances made to employees in the ordinary course of business), any other Person, or acquire all or any substantial part of the
assets or business of any other Person or division thereof; provided, however, that the foregoing shall not apply to nor operate to prevent: 
 (a) investments in direct obligations of the United States of America or of any agency or instrumentality thereof whose obligations constitute full faith and credit obligations of the United States of
America; investments in direct obligations of the State of California whose obligations constitute full faith and credit obligations of the State of California; 
 (b) investments in commercial paper rated at least P-1 by Moody’s and at least A-1 by S&P; 

  
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 (c) investments in certificates of deposit issued by any United States commercial bank
having capital and surplus of not less than $100,000,000; 
 (d) investments in repurchase obligations with a term of not more
than 7 days for underlying securities of the types described in subsection (a) above entered into with any bank meeting the qualifications specified in (c) above, provided all such agreements require physical delivery of the
securities securing such repurchase agreement, except those delivered through the Federal Reserve Book Entry System; 
 (e)
investments in money market funds that invest solely, and which are restricted by their respective charters to invest solely, in investments of the type described in the immediately preceding subsections (a), (b), (c) and (d) above;

 (f) investments existing on the date of this Agreement in its Subsidiaries and Affiliates; 

(g) the purchase of securities or acquisition of assets in connection with strategic transactions involving Loan Recipient and other
Persons, including without limitation (i) joint ventures, manufacturing, marketing or distribution arrangements or (ii) technology transfer or development arrangements; or 

(h) any acquisition by Loan Recipient of the assets or securities of a Person or division thereof for the purpose of acquiring
intellectual property or other assets. 
 7.10 Dividends and Certain Other Restricted Payments. During such time as any
Loan Balance remains outstanding, except to the extent compliance in any case or cases is waived in writing pursuant to Section 10.3 hereof, Loan Recipient will not (a) declare or pay any cash dividends or cash distributions, on any stock
or other equity interests of Loan Recipient or (b) directly or indirectly, through any Subsidiary or otherwise, purchase, redeem or retire any of its stock or other equity interests or make any other payment or distribution, either directly or
indirectly, through any Subsidiary or otherwise, in respect of its stock or other equity interests, other than (i) the repurchase of stock or other equity interests in the ordinary course of business of employees which leave the employ of Loan
Recipient, (ii) the repurchase of stock or other equity interests pursuant to agreements which permit Loan Recipient to repurchase such shares at cost (or the lesser of cost or fair market value) upon termination of an employee’s,
officer’s, director’s or consultant’s services to the Company or (iii) the repurchase by Loan Recipient from one or more former employees, officers, directors or consultants of its equity securities during the Loan Period,
provided that the aggregate repurchase price for all repurchases pursuant to this clause (iii) does not exceed [****] per year. 
 7.11 ERISA. Loan Recipient shall promptly pay and discharge all obligations and liabilities arising under ERISA of a character which if unpaid or unperformed could reasonably be expected to result
in the imposition of a Lien against any of its Property. Loan Recipient shall promptly notify CIRM of: (a) the occurrence of any reportable event (as defined in ERISA) with respect to a Plan, (b) receipt of any notice from the PBGC of its
intention to seek termination of any Plan or appointment of a trustee therefor, (c) its intention to terminate or withdraw from any Plan, and (d) the occurrence of any event with respect to any Plan which would result in the 

[****] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the
omitted portions. 

  
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incurrence by Loan Recipient of any material liability, fine or penalty, or any material increase in the contingent liability of Loan Recipient with respect to any post-retirement Welfare Plan
benefit. All terms used in this Section 7.11 and not defined shall have the meaning given to them under ERISA. 
 7.12
Compliance with Laws. Loan Recipient shall comply in all respects with the requirements of all federal, state and local laws, rules, regulations, ordinances and orders applicable to or pertaining to its Property or Business operations, except
where any such non-compliance, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect or result in a Lien upon any of its Property, other than a Permitted Lien. 

7.13 Diligent Conduct of Business. [****] 
 7.14 Use of Proceeds. The Loan Recipient shall use the credit extended under this Agreement solely for the purposes set forth in, or otherwise permitted by, Section 4.2 hereof. 

7.15 Diligence. The Loan Recipient shall use commercially reasonable efforts to perform the CIRM-Funded Project within the time
frame specified in the Notice of Loan Award. 
 7.16 Notification. If Loan Recipient becomes aware of any matters that
could reasonably be expected to have a Material Adverse Effect pursuant to any review, examination, proceeding or correspondence, suits or actions related to Loan Recipient’s intellectual property necessary to the CIRM-Funded Project, Loan
Recipient shall promptly notify CIRM in writing. 
 ARTICLE VIII 

TERMINATION 
 8.1 Termination. 
 (a) Subject to the notice and cure provisions contained
in Section 4.4 above, CIRM may terminate this Agreement pursuant to Article V, Section J of the Grants Administration Policies, or Article V, Section J of the Loan Administration Policy. 

(b) CIRM may terminate this Agreement at any time after a material breach of any term of the Loan Documents by Loan Recipient that is not
cured within thirty (30) days of the date that CIRM provides notice of such breach to Loan Recipient. 
 (c) CIRM may
terminate this Agreement if any of the representations and warranties made herein by Loan Recipient were not true and correct in all material respects at the time they were made or deemed to be made under Section 4.13 at the time of each
Disbursement when they are reaffirmed. 
 (d) CIRM may terminate this Agreement if any of the Events of Default in
Section 8.2 occur and are continuing. 

  
 [****] Certain information
has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 
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 (e) Subject to the notice and cure provisions contained in Section 4.4 above, CIRM may
terminate this Agreement based on CIRM’s determination, in its reasonable, but sole discretion, that Loan Recipient has failed to meet a Financial Milestone. 
 (f) Subject to the notice and cure provisions contained in Section 4.4 above, CIRM may terminate this Agreement based on CIRM’s determination, in its reasonable, but sole discretion, that a No
Go Milestone has occurred. 
 8.2 Events of Default and Remedies. Any one or more of the following shall constitute an
“Event of Default” hereunder: 
 (a) Loan Recipient fails to pay within five (5) business days of the day
when due all or any part of the principal of or interest on any Loan (whether at the stated maturity thereof or at any other time provided for in this Agreement), any accrued interest or any fee or other obligation payable hereunder or under any
other Loan Document; 
 (b) any judgment or judgments, writ or writs or warrant or warrants of attachment, or any similar
process or processes, entered or filed against Loan Recipient or against any of its Property, in an aggregate amount in excess of [****] (except to the extent fully covered by insurance pursuant to which the insurer has accepted liability therefor
in writing), and which remains undischarged, unvacated, unbonded or unstayed for a period of 45 days; 
 (c) Loan Recipient, or
any member of its Controlled Group, fails to pay when due an amount or amounts aggregating in excess of [****] which it shall have become liable to pay to the PBCG or to a Plan under Title IV of ERISA; or notice of intent to terminate a Plan or
Plans having aggregate Unfunded Vested Liabilities in excess of [****] (collectively, a “Material Plan”) is filed under Title IV of ERISA by Loan Recipient, or any other member of its Controlled Group, any plan administrator or any
combination of the foregoing, or the PBGC institutes proceedings under Title IV of ERISA to terminate or to cause a trustee to be appointed to administer any Material Plan or a proceeding is instituted by a fiduciary of any Material Plan against
Loan Recipient, or any member of its Controlled Group, to enforce Section 515 or 4219(c)(5) of ERISA and such proceeding shall not have been dismissed within 45 days thereafter; or a condition exists by reason of which the PBGC would be
entitled to obtain a decree adjudicating that any Material Plan must be terminated; 
 (d) dissolution or termination of the
existence of Loan Recipient, unless Loan Recipient has previously transferred the Loan to a new Loan Recipient pursuant to Article V, Section D of the Loan Administration Policy; 

(e) Loan Recipient has had (i) entered involuntarily against it a final order for relief under the United States Bankruptcy Code, as
amended, (ii) does not pay, or admits in writing its inability to pay, its debts generally as they become due, (iii) makes an assignment for the benefit of creditors, (iv) applies for, seeks, consents to or acquiesces in, the
appointment of a receiver, custodian, trustee, examiner, liquidator or similar official for it or any substantial part of its Property, (v) institutes any proceeding seeking to have entered against it an order for relief 

[****] Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the
omitted portions. 

  
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under the United States Bankruptcy Code, as amended, to adjudicate it insolvent, or seeking dissolution, winding up, liquidation, reorganization, arrangement, adjustment or composition of it or
its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors or fails to file an answer or other pleading denying the material allegations of any such proceeding filed against it, (vi) takes any corporate
action in furtherance of any matter described in parts (i) through (v) above, or (vii) fails to contest in good faith any appointment or proceeding described in Section 8.2(f) hereof; or 

(f) a custodian, receiver, trustee, examiner, liquidator or similar official is appointed for Loan Recipient, or any substantial part of
any of its Property, or a proceeding described in Section 8.2(e)(v) shall be instituted against any of Loan Recipient, and such appointment continues undischarged or such proceeding continues undismissed or unstayed for a period of 90 days.

 (g) [****] 
 (h) [****] 
 8.3 Termination Requiring Repayment at End of Loan Period.
When CIRM, at CIRM’s election, has terminated this Agreement for any reason (other than pursuant to subsections (d), (e), (f) or (h) of Section 8.2 or subsection (f) of Section 8.1 of this Agreement), (a) the
remaining commitments of CIRM to make Disbursements of the Loan and all other obligations of CIRM hereunder on the date stated in such notice (which may be the date thereof) shall terminate, and (b) the principal of and the accrued interest on
all outstanding Loans shall be due and payable together with all other amounts payable under the Loan Documents without further demand, presentment, protest or notice of any kind, at the end of the Loan Period. In the event that CIRM terminates the
Loan pursuant to Section 8.1(f), the remaining commitments of CIRM to make Disbursements of the Loan and all other obligations of CIRM hereunder on the date stated in such notice (which may be the date thereof) shall cease, and Loan Recipient
shall have no obligation to repay the Loan Balance. 
 8.4 Termination Requiring Immediate Repayment. When any Event of
Default described in subsections (d), (e), (f), or (h) of Section 8.2 of this Agreement has occurred and is continuing, or when Loan Recipient has materially breached the Loan Administration Policy, then this Agreement shall automatically,
and without the necessity of any further action, terminate and all outstanding Loans and interest thereon shall immediately become due and payable together with all other amounts payable under the Loan Documents, without presentment, demand, protest
or notice of any kind, unless the repayment obligation is extended by CIRM, and the obligation of CIRM to make further Disbursements of the Loan or extend further credit pursuant to any of the terms hereof shall immediately terminate. 

  
 [****] Certain information
has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 
 Page 26 of 59 
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 ARTICLE IX 
 COMPLIANCE WITH CERTAIN LAWS 
 9.1 Nondiscrimination. Loan Recipient
shall not unlawfully discriminate against any qualified employee or applicant for employment, or deny services to any individual because of race, color, national origin, ancestry, age, sex, religion, physical or mental handicap, or sexual
orientation. Loan Recipient agrees to comply with all applicable Federal and State statutes, rules and regulations prohibiting discrimination in employment. 
 9.2 Lobbying. Without limiting the provisions of Section 4.2 of this Agreement, no funds disbursed hereunder shall be used for any activities to influence any matter pending before the
California Legislature or the U.S. Congress, or for any election campaign. 
 9.3 Audit. In addition to the provisions of
Section 7.1(c) hereof, during the term of this Agreement, CIRM will have the right to audit, during mutually acceptable business hours and a reasonable number of times per year, Loan Recipient’s records to confirm the use of the Loan
proceeds and the Direct Research Funding Costs. In addition, Loan Recipient shall maintain books, records, and other compilations of data made under this Agreement to the extent and in such detail as shall properly substantiate use of the Loan for
the purposes allowed under Section 4.2. Loan Recipient shall maintain all such records for a period of not less than five (5) years, starting on the earlier of (a) first day after final payment under this Agreement or
(b) repayment of the entire accrued balance of the Loan. If any litigation, claim, negotiation, audit or other action involving the records is commenced prior to the expiration of the applicable retention period, all records shall be retained
until completion of such action and resolution of all issues resulting therefrom, or until the end of the applicable retention period, whichever is later. CIRM or the State of California or any of their duly authorized representatives shall have the
right, at reasonable times and upon reasonable notice, to examine and copy at reasonable expense, the books, records, and other compilations of data of Loan Recipient which pertain to the provisions and requirements of this Agreement. Such access
shall include on site audits and review and copying of records. 
 ARTICLE X 

GENERAL CLAUSES 
 10.1 Binding Effect; Assignment. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors (including, for the avoidance of doubt, any
agency or department of the State of California which may succeed CIRM or assume CIRM’s obligations) and assigns (including, without limitation, by sale or transfer of all or substantially all assets, merger or consolidation), provided,
however, that neither this Agreement nor any rights hereunder may be assigned by either party without the other party’s prior written consent, which consent shall not be unreasonably withheld. Both parties shall use their commercially
reasonable efforts to consider and respond to other’s request for consent within ten (10) business days of any such request. 
 10.2 Choice of Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of California, without regard to principles of conflicts of

  
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law or choice of law provisions. Jurisdiction shall lie in the State of California. All disputes, controversies, claims, actions and similar proceedings arising with respect to the Loan or any
related agreement or transaction shall be brought in the Superior Court of San Francisco County, California and Loan Recipient consents to the exclusive personal jurisdiction of such court. 

10.3 Waivers. All conditions, covenants, duties and obligations contained in this Agreement can be waived only by written
agreement. Forbearance or indulgence in any form or manner by a party shall not be construed as a waiver, nor in any way limit the remedies available to that party. 
 10.4 Amendments. All conditions, covenants, duties and obligations contained in this Agreement may be amended only through a written amendment signed by Loan Recipient and CIRM, except as otherwise
specified herein. 
 10.5 Publicity. Loan Recipient shall, unless prohibited by law or regulation, notify CIRM’s
Senior Vice President of Research and Development and Senior Director of Communications and Patient Advocacy Outreach at least one calendar day before issuing any press release that refers to the CIRM-Funded Project. Any press release or research
paper by Loan Recipient in which CIRM is concerned or discussed shall include the following statement or a substantially similar one: 
 StemCells, Inc.’s development of a neural stem cell treatment for Alzheimer’s disease is funded in part through the support of the California Institute of Regenerative Medicine. 

Loan Recipient shall use commercially reasonable efforts to recognize CIRM’s support in any media interview in which the CIRM-Funded Project is
discussed. Loan Recipient will not represent that positions taken or advanced by Loan Recipient represent the opinion or position of CIRM or the State of California. 
 Loan Recipient agrees to work with CIRM to establish a communications protocol to ensure that accurate information, including, without limitation, any adverse event involving a clinical trial subject,
relating to the CIRM-Funded Project is provided to stakeholders in a timely matter. 
 10.6 Survival. All covenants,
representations and warranties contained herein shall survive the execution and delivery of this Agreement and all covenants contained herein shall survive until all of the obligations hereunder are fully and finally discharged or earlier waived or
terminated (provided that the provisions of Sections 9.3 and 10.6 shall survive as specifically stated therein and Sections 7.2, 10.1, 10.2, 10.3, and 10.4 shall survive indefinitely except as provided in the following sentence). The obligations of
Loan Recipient to indemnify CIRM with respect to the expenses, damages, losses, costs and liabilities described in Section 7.2 shall survive until all applicable statute of limitations periods with respect to actions that may be brought against
CIRM have run. In addition, CIRM’s rights of audit and inspection pursuant to Section 9.3 shall survive until the obligations thereunder are fully and finally discharged or earlier waived or terminated 

  
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 10.7 Notice. All communications to CIRM shall be mailed or delivered to the following
address, or sent by facsimile to the following number with written confirmation of receipt: 
 California Institute for
Regenerative Medicine 
 Attn: #######, Grants Management Officer 

210 King Street 

San Francisco, CA 94107 
 FAX:   (415) 396-#### 
 TEL:    (415) 396-####

 All communications to Loan Recipient shall be mailed or delivered to the following address, or sent by facsimile to the
following number with confirmation of receipt by voice: 
 StemCells, Inc. 

7707 Gateway Blvd., 
 Suite 140 
 Newark, CA 94560 

Attn:   EVP, Research & Development 
 Telephone:      (510) 456-#### 

Facsimile:       (510) 456-#### 

With a copy, which shall not constitute notice, to Loan Recipient’s General Counsel at the same address 

The parties may change the address at which they are to receive notices in writing. 

10.8 Additional Funding. Loan Recipient acknowledges that (a) CIRM has not made any oral or written commitment or otherwise
agreed to provide funding with respect to the CIRM-Funded Project other than the Loan; (b) in no way is Loan Recipient relying on this Agreement or any other statement, oral or written, to provide any expectation of additional funding by CIRM;
and (c) any future agreement between CIRM and Loan Recipient shall be in writing and executed by duly authorized representatives of CIRM and Loan Recipient. 
 10.9 No Waiver, Cumulative Remedies. No delay or failure on the part of either Party in the exercise of any power or right under any Loan Document shall operate as a waiver thereof or as an
acquiescence in any default, nor shall any single or partial exercise of any power or right preclude any other or further exercise thereof or the exercise of any other power or right. The rights and remedies hereunder of the parties are cumulative
to, and not exclusive of, any rights or remedies which either party would otherwise have. 
 10.10 Headings and Captions.
Section headings and captions used in this Agreement are for reference only and shall not affect the construction of this Agreement. 
 10.11 Construction. The parties acknowledge and agree that the Loan Documents shall not be construed more favorably in favor of any party hereto based upon which party drafted the

  
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same, it being acknowledged that all parties hereto contributed substantially to the negotiation of the Loan Documents. The provisions of this Agreement relating to Subsidiaries shall only apply
during such times as the Loan Recipient has one or more Subsidiaries. NOTHING CONTAINED HEREIN SHALL BE DEEMED OR CONSTRUED TO PERMIT ANY ACT OR OMISSION WHICH IS PROHIBITED BY THE TERMS OF ANY LOAN DOCUMENT. 

10.12 Counterparts. This Agreement may be executed in two or more counterparts, each of which, when executed and delivered, shall
be deemed an original, but all of which together shall constitute one and the same instrument. Executed copies of the signature pages of this Agreement sent by facsimile or transmitted electronically in Portable Document Format
(“PDF”), or any similar format, shall be treated as originals, fully binding and with full legal force and effect, and the parties waive any rights they may have to object to such treatment. 

10.13 Severability. Each party hereby agrees that it does not intend to violate any public policy, statutory or common laws,
rules, regulations, or decision of any government authority. Should one or more provisions of this Agreement be or become invalid, the parties hereto shall substitute, by mutual consent, valid provisions for such invalid provisions which valid
provisions in their overall effects on the CIRM-Funded Project and/or the Business are sufficiently similar to the invalid provisions that it can be reasonably assumed that the parties would have entered into this Agreement with such valid
provisions. If such valid provisions cannot be agreed upon, the invalidity of one or several provisions of this Agreement shall not affect the validity of this Agreement as a whole, unless the invalid provisions are of such essential importance to
this Agreement that it is to be reasonably assumed that the parties would not have entered into this Agreement without the invalid provisions. 
 10.14 Confidentiality. As a public entity, CIRM is subject to the California Public Records Act and thus documents and other materials made or received by its employees are subject to public
disclosure, unless an exception applies. To the extent permitted by applicable law, for a period of five (5) years after expiration or termination of the Loan Period, CIRM shall maintain in confidence and trust any confidential or proprietary
information provided by Loan Recipient to CIRM prior to or during the Loan Period, using the same level of care employed by CIRM with respect to its own confidential and proprietary information. If Loan Recipient submits confidential or proprietary
information to CIRM, it shall label the material “confidential”. CIRM shall provide notice to Loan Recipient if it receives a Public Records Act Request for a document or documents that Loan Recipient has labeled “confidential,”
In which case Loan Recipient will provide CIRM, upon its request, a brief explanation of the reason the information is confidential or proprietary under Health and Safety Code section 125290.30(g)(2) or otherwise. 

10.15 Third Party Beneficiaries. The provisions set forth in this Agreement are for the sole benefit of the parties hereto and
their successors and assignees, and they will not be construed as conferring any rights on any other Persons. 

  
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 10.16 Integration. This Agreement and the other Loan Documents, including any
document incorporated by reference and any exhibits and schedules attached hereto, is the entire agreement between the parties with respect to the Loan and supersedes all prior and contemporaneous negotiations, commitments, representations, or
agreements, whether written or oral, of the parties regarding this subject matter. Nothing contained herein shall be deemed or construed as requiring either party to grant to the other any rights or licenses and nothing herein is intended to create
or imply any obligation to enter into any other agreement. 
 [signature page follows] 

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

					
	STEMCELLS, INC.	  	
			
	By:	  	 /s/ Martin M. McGlynn
	  	
	Name:	  	Martin M. McGlynn	  	
	Title:	  	President & Chief Executive Officer	  	
			
	Address:	  	        StemCells, Inc.	  	
		  	        7707 Gateway Blvd., Suite 140	  	
		  	        Newark, CA 94560	  	
		
	CALIFORNIA INSTITUTE FOR	  	
	REGENERATIVE MEDICINE	  	
			
	By:	  	 /s/ Elona Baum, Esq.
	  	
	Name:	  	Elona Baum, Esq.	  	
	Title:	  	General Counsel & VP Business Development	  	

  
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 EXHIBITS 
 Exhibit A 
 FINANCIAL MILESTONES 

At least one month prior to each Disbursement Date, Loan Recipient will demonstrate to CIRM’s reasonable but sole satisfaction that Loan Recipient
has funds available, either in the form of cash, cash equivalents or securities listed on an automated quotation system which have no resale restrictions under federal or other applicable securities laws, [****], as demonstrated by Loan
Recipient’s submission of its most recent budget forecasts and other financial information reasonably requested by CIRM (provided, however, that Loan Recipient may exclude from the foregoing costs and expenses on any date all principal payments
to be made on Permitted Indebtedness which matures in the four-year period following such date). 
 [****] Certain information has been omitted
and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
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 Exhibit B 
 Loan Administration Policy 
 (Approved by Office of Administrative Law effective
August 29, 2012) 
 CIRM Loan Administration Policy 

(Rev. May 2012) 

Preface 
 The California Institute for
Regenerative Medicine (CIRM) issues Requests for Applications for research grants, inviting applications from non-profit and for-profit organizations. Beginning in early 2009, CIRM supplemented its grant funding by offering research loans to
for-profit organizations. This policy covers the procedures that apply to research loans. 
 The Independent Citizen’s Oversight Committee
(ICOC), CIRM’s governing board, has adopted the CIRM Grants Administration Policy for Academic and Non-Profit Institutions (Non-Profit GAP). The Non-Profit GAP applies generally to grant funding of scientific and medical research. The ICOC has
also adopted the CIRM Grants Administration Policy for For-Profit Organizations (For-Profit GAP), which is applicable to for-profit organizations that apply for or receive CIRM funding through grants. The For-Profit GAP largely incorporates the
Non-Profit GAP. Where differences between for-profit and non-profit organizations warrant different treatment, the For-Profit GAP provides the modified policies that apply to for-profit applicants and grant recipients. 

This Loan Administration Policy (LAP) takes a similar approach, working from the Non-Profit GAP and setting out the modified policies that apply to CIRM
loan funding of for-profit organizations. Note that this LAP does not incorporate the For-Profit GAP, which continues to apply to for-profit organizations to the extent that CIRM funds them through grants. 

Purpose 
 Proposition 71 requires CIRM to
balance the benefit of receiving revenues for the state of California from inventions made in whole or in part from CIRM funding with the need to ensure that essential research is not unreasonably hindered by CIRM regulations. The LAP regulations
strike that balance by ensuring that our awardees and future investors are allowed and incentivized to determine how best to exploit new technologies, while simultaneously ensuring that CIRM receives a fair return on its investment. This balance is
based on two important principles: 1) The greatest economic return to the state’s general fund and its citizens will result from the discovery and successful commercialization of therapies and cures; and 2) The involvement of the private sector
is an essential element in developing a therapy or cure. In reaching this balance CIRM recognizes that it is critical to the success of its mission that CIRM accept significant risk both scientifically and financially. Accordingly, this may result
in funding companies that would not likely qualify for a commercially available loan and/or funding cutting-edge science with unknown prospects for success. 

  
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 Payments to CIRM based on loans will recirculate back to CIRM and thereby provide an opportunity for CIRM to
provide continued funding of stem cell research in the future. However, given the risky nature and long time horizon for development of new therapeutics, such benefits will likely be many years in the future. Hence, in recognition of the principles
set forth above, the loan regulations are intended to provide a reasonable basis for a return should commercially successful products result from CIRM-funded research, without creating economic or structural disincentives for the clinical
development and successful commercialization of new stem cell therapies and cures. 
  

	I.	INCORPORATION BY REFERENCE 

 The
Non-Profit GAP and all appendices, as they may be amended from time to time, are hereby made applicable to for-profit organizations that apply for or receive CIRM loans, to the extent that they do not conflict with the policies stated herein. Where
differences between grants and loans warrant different treatment, this LAP provides the modified sections that apply to loans. All other provisions of the Non-Profit GAP apply to loans. When Non-Profit GAP provisions are applied to loans,
“Loan” replaces “Grant” and “Loan Recipient” replaces “Grantee.” 
 The loan administration policy
statement may be updated periodically by CIRM. Any new or amended regulations adopted by the ICOC will be applied only to loans awarded after the amendments are adopted, unless CIRM and the Loan Recipient agree otherwise. All revisions to the LAP
will be posted on the CIRM website (http://www.cirm.ca.gov). 
 CIRM’s right to enforce the provisions of this LAP shall survive the end of
the term of the loan, and should CIRM no longer exist, those rights may be enforced by the State of California. 
 C. Defined terms

 The following definitions supplement the definitions provided in the Non-Profit GAP. Capitalized terms that are not defined have the
meanings set forth in the Non-Profit GAP and Intellectual Property and Revenue Sharing Requirements for Non-Profit and For-Profit Grantees. 
  

			
	Accrued Interest	  	Interest owed on the Loan.
		
	Change of Control	  	A sale, merger, transfer, consolidation, exchange or other disposition (whether of assets, stock or otherwise) of a majority or controlling ownership position.
		
	Borrower	  	A For-Profit Organization that is responsible for repayment of a Loan. The Borrower may or may not be the Loan Recipient.
		
	CIRM-funded Project	  	The research project described in the Notice of Loan Award
		
	Company-Backed Loan	  	A loan which the Loan Recipient organization is obligated to repay, notwithstanding the success (or lack thereof) of the CIRM-funded project.
		
	Earned Interest	  	Interest that a Loan Recipient earns on unspent funds that it has received from CIRM.
		
	Loan	  	A funding mechanism with repayment provisions providing money and/or property to an eligible entity to assist the Loan Recipient in carrying out an approved project or activity.
Loans may be Company-Backed or Product-Backed.

  
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	Loan Amount	  	The total amount of the Loan award as set forth in the Notice of Loan Award.
		
	Loan Balance	  	Amount determined by adding (1) the amount CIRM has distributed to the Loan Recipient pursuant to the Loan, and (2) Accrued Interest to date, and subtracting (3) any prepayment
of the Loan.
		
	Loan Period	  	The time between the date of CIRM’s first release of funds pursuant to the Notice of Loan Award and the date when the loan must be repaid. This repayment deadline is
different from the end of the research project – see “Project Period.”
		
	Loan Recipient	  	An Organization that is the Recipient of a Loan and that is legally responsible and accountable for the use of the funds provided and for the performance of the CIRM-funded
Project or Activity. The Loan Recipient is the entire legal entity even if a particular component is designated in the NLA. The Loan Recipient may or may not be the Borrower.
		
	Net Commercial Revenue	  	 Income from the sale or transfer of a Drug, product(s), service(s), CIRM-Funded Inventions or CIRM-Funded
Technologies employing or resulting in whole or in part from a CIRM-Funded Project. Net Commercial Revenue excludes the following (as they pertain to the making, using or selling of products resulting from a CIRM-Funded Project):

 
 (1) import, export, excise and sales taxes, and customs
duties;
  
 (2) costs of insurance, packing, and
transportation from the place of manufacture to the customer’s premises;
  
 (3) credit for returns, allowances or trades; and
  
 (4) payments received prior to commercialization pursuant to a development agreement relating to a Drug or product arising in whole or in part from CIRM-Funded Research.

		
	Notice of Loan Award (NLA)	  	The document that notifies the Loan Recipient and others that an Loan has been made, contains or references all terms and conditions of the Loan as well as the Loan
Recipient’s and PI’s agreement to those terms and conditions, and documents the commitment of CIRM funds.

  
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	Product-Backed Loan	  	A Loan which the Loan Recipient organization is obligated to repay, subject to suspension or forgiveness of all or part of the loan based on the success of the CIRM-funded
project as defined in Section VII.B.
		
	Product Revenue	  	Defined below in Section VII.E.2.d.

 D. Types of support 
  

	 	1.	CIRM may offer support in the form of Grants or Loans. Eligibility for each type of funding will be decided on a case-by-case basis prior to issuance of the Request for
Applications (“RFA”). Unless otherwise determined by the Intellectual Property and Industry Subcommittee of the ICOC, based on the recommendation of the President, CIRM will not offer loans in connection with RFAs for which the ICOC has
budgeted less than $3 million per award. 

  

	 	2.	The RFA will specify whether For-Profit Applicants are only eligible for Loans, or that they can choose between Grants and Loans. When a For-Profit Organization
receives a Loan, that organization is both the Loan Recipient and the Borrower. 

  

	 	3.	Non-Profit Applicants may apply for Loans, but only if the Application includes a Co-PI from a For-Profit Organization that agrees to be the Borrower. The Non-Profit
Applicant would be the Loan Recipient. 

  

	 	4.	An RFA may place other restrictions or conditions on eligibility, such as requiring the Investigational New Drug application (“IND”) holder of a CIRM Funded
Project to be the Loan Recipient. 

 This section supplements Section I.D. of the Non-Profit GAP. 

E. Roles and Responsibilities 
  

	 	3.	Financial Services Provider: 

 CIRM may engage the services of external financial services providers to perform specified functions related to the evaluation and administration of loans. Unless otherwise provided in an RFA, the Loan
Recipient shall be required to cover certain or all costs incurred on CIRM’s behalf by the Financial Services Provider. 

  
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	II.	LOAN APPLICATION AND REVIEW PROCESS 

A. Eligibility 
  

	 	1.	PI and PD Eligibility 

Principal Investigators (“PI”) or Program Directors (“PD”) from For-Profit applicants and Loan Recipients must be
employed primarily by the For-Profit organization (i.e., at least 50% time) at the time of the Loan and during the entire project period. 

This requirement supplements the requirements of section II.A.1. of the Non-Profit GAP. 

 

	V.	PAYMENT AND USE OF FUNDS 

 B. Costs and
Activities 
  

	 	1.	Allowable Project Costs and Activities 

 Allowable travel-related expenses include costs for transportation, lodging, subsistence, and related items incurred by key personnel on project-related business. Reimbursement for transportation expenses
shall be based on the most economical mode of transportation (e.g., coach fare) and the most commonly traveled route consistent with the authorized purpose of the trip. Reimbursed lodging and subsistence expenses must be ordinary and necessary to
accomplish the official business purpose of the trip. Excluding travel for clinical research or regulatory affairs, travel-related expenses shall be limited to an annual allowance of $5,000 per person per CIRM Loan. 

This section supersedes paragraph 4, section V.B.1. of the Non-Profit GAP. 

 

	 	3.	Facilities Costs 

Facilities costs cover general operating costs of the Loan Recipient’s facilities where the CIRM-Funded Project is managed and/or
performed in California. A fixed rate for facilities costs to for-profits organizations will be specified on a per-RFA basis. The fixed facilities cost rate shall be no higher than the average of the Category A and B facilities costs reported per
fiscal year for Academic and Non-Profit Organizations. 
 This section supersedes section V.B.3. of the Non-Profit GAP. 

 

	 	5.	Indirect Costs 

 Indirect
costs will be up to 25 percent of allowable direct research funding costs awarded by CIRM (i.e., project costs and facilities costs), exclusive of the costs of equipment, consulting and subcontract amounts in excess of $25,000, and will be specified
on a per-RFA basis. 
 This section supersedes section V.B.5. of the Non-Profit GAP. 

  
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	 	6.	Interest Earned on CIRM Funds 

 Loan Recipients with Company-Backed Loans are not required to account to CIRM for interest earned on funds that CIRM advanced pursuant to the Notice of Loan Award. Loan Recipients with Product-Backed
Loans must reinvest and account for interest earned as provided in the Non-Profit GAP. Interest earned on CIRM funds does not increase or decrease the amount required to be repaid. 
 This section supersedes section V.B.6. of the Non-Profit GAP. 
 D. Prior Approval Requirements

  

	 	5.	Relinquishment of Loan and Loan Transfer 

 A Loan Recipient may at any time relinquish a Loan by submitting a relinquishing statement that includes a) a statement of reasons for relinquishing the Loan; b) an estimate of the unexpended balance of
any funds paid to the Loan Recipient; c) and an assurance that all unexpended funds will either be returned to CIRM, or in the case of a Loan transfer approved by CIRM’s President, such funds shall be transferred to a new Loan Recipient within
90 days of the date of relinquishment. In the case of a transfer, the relinquishing Loan Recipient may be required to transfer CIRM-funded equipment purchased with the Loan. 
 With prior approval, and at the request of the Loan Recipient organization, the continuation of CIRM loan activities may be transferred to a different eligible organization in California in the event
that: 
  

	 	a.	the PI transfers organizations; 

  

	 	b.	the program is sold to another organization; or 

  

	 	c.	the CIRM Loan Recipient is acquired by another organization 

 The CIRM Loan Recipient must submit to CIRM a written request and justification that the prospective transferee organization has the intent and means to continue the proposed research – including
access to intellectual property rights available to the original Loan Recipient. The request must be submitted at least 90 days before the proposed effective date of Loan transfer, unless the President of CIRM waives this requirement. If the initial
request to transfer the Loan is approved, final approval will be contingent upon the current Loan Recipient relinquishing rights to the Loan. Furthermore, the Loan Recipient may be required to transfer to the new organization any equipment purchased
under the Loan. Before the transfer can take place, the original Loan Recipient must submit to CIRM a relinquishing statement that includes an estimate of the unexpended balance of any funds paid to the Loan Recipient and an assurance that all
unexpended funds will be transferred to the new Loan Recipient or returned to CIRM within 90 days of the relinquishing date. 

The transferee organization must meet the eligibility requirements for the RFA under which the Loan was made. The transferee Loan
Recipient must submit to CIRM a letter that states its intention to assume responsibility for the Loan based 

  
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on the approved application, including all applicable provisions of this Loan Administration Policy for For-Profit Organizations and CIRM’s intellectual property regulations, and the
following items: 
  

	 	a.	New application face page with original signatures 

  

	 	b.	Detailed budget(s) for the remaining project period (including the estimated unexpended balance from the original Loan Recipient) 

 

	 	c.	Biographical sketches for new key personnel 

  

	 	d.	Other support for new key personnel 

  

	 	e.	Facilities and resources 

  

	 	f.	Public policy assurances (e.g., human subjects, animal, biohazard), where applicable. 

CIRM will issue a new Notice of Loan Award (“NLA”) to the PI and the transferee Loan Recipient when all required documents have
been received and the transfer has been approved by CIRM. Transfer of the Loan is effective when the NLA is signed by the PI and the Authorized Organizational Official of the transferee Loan Recipient and returned to and received by CIRM. Payment
will not be issued until the Loan transfer is effective. 
 As part of the new NLA, the transferee Loan Recipient assumes all
loan repayment obligations of the relinquishing Loan Recipient. If the request to transfer the Loan of a CIRM-funded program is not approved, CIRM may provide written notification of termination of the Loan. The Loan Recipient will be required
to submit a final report on the project and a final financial report within 90 days of the effective date of Award termination. All unexpended funds as of 30 days of the date of Award termination must be returned to CIRM within 120 days of
termination of the Award. 
 This section supersedes section V.D.5. of the Non-Profit GAP. 

H. Reporting Requirements 
  

	 	3.	Other Reports 

 During the
Loan Period, Loan Recipients must provide written notification to CIRM within 30 days of the occurrence of any of the post-Notice of Loan Award changes described below: 
 Termination of a program that is currently funded by CIRM. The Loan Recipient organization will be required to submit a final report on the project and a final financial report within 90 days after the
effective date of Loan termination. 
 This section supersedes section V.H.3. of the Non-Profit GAP. 

  
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	 	5.	Reporting Related to Loan Terms 

 In addition to other reporting requirements, Loan Recipients and Borrowers must notify CIRM of any Change in Control. Loan Recipients and Borrowers shall also report initial public offerings and follow-on
financing. 
 I. Project Close-Out 
 Close-out marks the end of the CIRM-funded Project. Project close-out has no effect on the date when Loan repayment is due. CIRM will close out a CIRM- funded Project as soon as possible after the project
period end date or the end date of any authorized extension. Close-out includes timely submission of all required reports and reconciling amounts due the Loan Recipient or CIRM. CIRM may withhold funds from the Loan Recipient for future or
concurrent Loans if a project close-out is pending the submission of overdue reports. 
 Close-out of a project does not cancel any requirements
for property accountability, record retention, reporting or financial accountability. Following close-out, the Loan Recipient remains obligated to return funds due as a result of later refunds, corrections, or other transactions, and CIRM may
recover amounts based on the results of an audit covering any part of the funding period. In addition, the Loan Recipient is obligated to report to CIRM after project close-out any patents filed, patents issued, licenses granted, or income received
that resulted from the CIRM-Funded Project. (See CIRM’s Intellectual Property and Revenue Sharing regulations.) 
 This section supersedes
section V.I. of the Non-Profit GAP. 
 J. Failure of Compliance 
 If the Loan Recipient or PI fails to comply with the terms and conditions of a Loan, CIRM may take any of the actions that it could take for failure of compliance with a Grant Award, as described in
section V.J. of the Non-Profit GAP. If CIRM determines that the failure justifies recovery of previously awarded funds, the Loan Recipient is fully liable for that obligation, without regard to whether the Loan is Company-Backed or Product-Backed.

 If a Loan Recipient is required to return funds due to failure of compliance, the returned funds will be deducted from the Loan Balance.
Interest that accrued on those funds before they were returned to CIRM will not be deducted from the Loan Balance. Recovery of funds for failure of compliance does not affect CIRM’s interest in the warrants issued when those funds were
released. 
 This section supplements section V.J. of the Non-Profit GAP. 

  
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 K. Termination of CIRM Funded Project and Loan Agreement 

1. General: The Loan Agreement entered into by the Loan Recipient and CIRM will provide terms under which CIRM may terminate
the Notice of Loan Award. In addition as provided in Section V.D.5, the Loan Recipient may desire to terminate the Notice of Loan Award and Loan Agreement. In the event either CIRM or the Loan Recipient seeks to terminate the Notice of Loan Award
and Loan Agreement the following obligations apply: 
 a. All unexpended funds as of 30 days after the date of award termination
must be returned to CIRM within 60 days after termination of the award. 
 b. All warrants owing to CIRM pursuant to this Loan
Administration Policy must be delivered by Loan Recipient and are not subject to return by CIRM. 
 VII. LOAN TERMS 

A. General Provisions 
 The following are
guidelines for loan terms. Specific terms will be determined in each RFA by the Intellectual Property and Industry Subcommittee of the ICOC, based on the recommendation of the President, as appropriate for each RFA. If the Intellectual Property and
Industry Subcommittee does not modify these guidelines for a specific RFA, the terms set forth herein shall apply to the RFA. However, the loan terms may be modified in a loan agreement provided that the Loan Recipient agrees to the modifications
and the Intellectual Property and Industry Subcommittee approves them. 
 Funding of the loan will occur at intervals set forth in the Notice of
Loan Award and only upon satisfaction of conditions set forth in the Notice of Loan Award. A delay in meeting timelines will not automatically result in acceleration or termination of the loan, but it could result in a delay or suspension in the
disbursement of additional funds. 
 B. Company-Backed and Product-Backed Loans 
 CIRM will offer two types of Loans: Product-Backed Loans and Company-Backed Loans. Company-Backed Loans must be repaid to CIRM, with accrued interest, at the end of the Loan Period (unless accelerated),
regardless of whether the CIRM-Funded Project results in any revenues. Repayment of a Product-Backed Loan is predicated upon the success of the product being developed. “Success” means that the Loan Recipient has obtained Net Commercial
Revenue arising in whole or in part from the CIRM-Funded Project. To the extent that a Loan Recipient has obtained Net Commercial Revenue arising in whole or in part from the CIRM-Funded Project in an amount less than the Loan Balance, the Loan
Recipient shall be required to repay CIRM the Loan Balance up to the amount of revenue generated. The Loan Recipient may deduct from the amount of revenue generated, reasonable third party costs (up to a maximum of 50% of such costs) incurred in
seeking to bring and CIRM-Funded Inventions or CIRM-Funded Technology to practical use as required by Title 17, California Code of Regulations section 100606. 

  
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 C. Interest Rate 
 Unless otherwise provided in the RFA, 
  

	 	i.	The interest rate for a 5 year loan term shall be a per annum rate equal to the London Inter-Bank Offered Rate (“LIBOR”) for a one-year deposit in U.S.
dollars, as published by the Wall Street Journal (or if the Wall Street Journal is not available, a comparable source) on the date of the first disbursement, plus two percent (2%). On the date of each subsequent disbursement, the applicable interest
rate shall be a per annum rate equal to LIBOR for a one-year deposit in U.S. dollars, as published by the Wall Street Journal (or comparable source) on such date, plus two percent (2%). The rate established for each disbursement shall apply only to
that disbursement and not to the amount outstanding before such disbursement. Interest shall be compounded annually on the principal amount disbursed by CIRM from the date of the applicable disbursement to Loan Recipient. 

 

	 	ii.	 For each additional year of the Loan Term beyond the 5th year, the interest rate of the Loan shall increase from the base rate by: 1% in year 6; 2% in year 7; 3% in year 8; 4%
in year 9; and 5% in year 10. Put differently, the rate shall increase 1% over the previous year, for each year the term is extended. 

  

	 	iii.	The interest rate shall not exceed the maximum interest rate permitted by law. 

 Interest shall be compounded annually, from the date on which CIRM disburses funds to the Loan Recipient. 
 D. Warrants 
  

	 	1.	Requirement 

 a.
Company-Backed Loans: Except as provided in subpart “E” of this regulation, a Loan Recipient that is awarded a Company-Backed Loan shall provide warrants to CIRM equal to: 
 i. 10% of the amount of the Loan disbursed if the Loan Recipient shows a profit for previous 2 years; or 
 ii. 25% of the amount of the Loan disbursed if the Loan Recipient has (a) raised in prior financings since its inception three times the total amount of the loan; OR (b) has entered into a
contractual arrangement (still in effect) with a biotechnology or pharmaceutical company which requires the payment of royalties or milestone payments predicated on the success of a funded project (e.g., a development agreement), regardless of
whether the CIRM Funded Project is the subject matter of such agreement; or 
 iii. 50% of the amount of the Loan disbursed if the Loan
Recipient has not met either of the requirements set forth above in section D.1(a)(ii). 

  
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 i.v. Such warrants in aggregate will never exceed 20% of Loan Recipient’s fully diluted
shares at each warrant issuance. 
 b. Product-Backed Loans: A Loan Recipient that is awarded a Product-Backed Loan shall
provide warrants to CIRM equal to: 
  

	 	i)	the amount of CIRM’s contribution as a percentage of the total funds required to conduct the CIRM-Funded Project as set forth in the Notice of Loan Award during
the period covered by the applicable CIRM disbursement. This allocation will be determined at the time of each loan disbursement, e.g., if CIRM’s funds represent 60% of the total project costs for the period covered by the first disbursement,
the loan recipient would be required to provide CIRM with warrant coverage equal to 60% of the CIRM disbursement during the period covered by the first disbursement; if CIRM funds represent 30% of the total project costs during the period covered by
the second disbursement, then CIRM would be entitled to warrant coverage equal to 30% of the CIRM disbursement for that period. 

  

	 	ii)	For the purposes of Section D.1(b)(i), the “total funds required to conduct the CIRM-funded Project” shall be determined as of the date of the execution of
the Notice of Loan Award and shall be calculated using the indirect cost reimbursement rate specified in the Grants Administration Policy, unless CIRM agrees in writing to a revised budget and amount. 

 

	 	2.	Calculation: 

  

	 	i.	The term “fully diluted” means the sum of basic shares outstanding; all preferred stock on an as-converted basis; all in-the-money convertible debt on an
as-converted basis; and all options and warrants outstanding calculated using the treasury method. 

  

	 	ii.	Multiple Loan Awards: The limit on total warrants owed to CIRM (e.g., 20% of Loan Recipient’s shares, fully diluted) applies to each Loan Award such that if the
Loan Recipient has two loans, CIRM may hold warrants up to 40% of the Loan Recipient’s shares on a fully diluted basis. 

  

	 	3.	Warrant terms 

 If the
Borrower is publicly held, the warrant strike price will be the closing price of the Borrower’s common stock reported for the business day immediately before each CIRM disbursement of funds. For privately held Borrowers, the warrant strike
price will be set at the share price from the most recent round of equity financing before each disbursement of CIRM funds. If there has been no previous round, the warrants will be floated until the next round. The warrants are transferrable, may
be exercised at any time, and expire 10 years from the date on which they are 

  
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issued. Warrants will be of either common or preferred stock, as elected by Borrower. Warrants due or provided to CIRM pursuant to this Subpart remain CIRM’s property regardless of the final
disposition of the Loan, success of the Project or acquisition of the Loan Recipient. 
 E. Risk Premium Alternative to Warrants

 Subject to the Sunset Provision in section VII.E.3 below, in lieu of providing warrants pursuant to Subpart D of this regulation, Loan
Recipients may elect to pay CIRM, as a risk premium, a multiple of the principal amount of their loan. The risk premium payment owed is based on the achievement of certain revenue thresholds. 

1. Definitions: The following definitions shall apply to terms in this Subpart E. Capitalized terms which are undefined
have the same meaning set forth in CIRM’s Loan Administration Policy. 
 a. Risk Premium Payment
means a payment due pursuant to Subparts “2.b” and “2.c” of this Subpart “E”. 
 b.
Product Revenue: see Subpart “2.d” of this Subpart “E.” 
 2. Risk Premium Payment

 a. Election of Risk Premium Payment in Lieu of Warrants: A Loan Recipient may elect to pay CIRM the
Risk Premium Payments set forth in this Subpart “E” in lieu of providing the warrants set forth in the Loan Administration Policy. 
 b. Company-Backed Loans: Subject to the conditions set forth in Subpart “2.e” of this Subpart “E”, the Loan Recipient of a Company-Backed Loan shall, in addition to any other
obligations it has under any CIRM loan agreement or under CIRM’s Loan Administration Policy (excluding the requirement to provide warrants), pay up to three hundred percent (300%) of the principal loan amount, payable upon the achievement
of certain revenue thresholds as follows: 
 i. Upon generation of $300 million of Product Revenue cumulatively,
Loan Recipient shall pay to CIRM an amount equal to one hundred percent (100%) of the amount of the principal of the Company Backed Loan. 
 ii. Upon generation of $600 million of Product Revenue cumulatively, Loan Recipient shall pay to CIRM an amount equal to two hundred percent (200%) of the amount of the principal of the Company
Backed Loan. 
 c. Product-Backed Loans: Subject to the conditions set forth in Subpart “2.e” of
this Subpart “E”, the Loan Recipient of a Product-Backed Loan shall, in addition to any other obligations it has under any CIRM loan agreement or under CIRM’s Loan Administration Policy (excluding the requirement to provide warrants),
pay up to five hundred percent (500%) of the principal loan amount, payable upon the achievement of certain revenue thresholds as follows: 
 i. Upon generation of $50 million of Product Revenue in a fiscal year, Loan Recipient shall pay to CIRM an amount equal to one hundred percent (100%) of the amount of the principal of the
Product-Backed Loan. 

  
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 ii. Upon generation of $300 million of Product Revenue cumulatively, Loan
Recipient shall pay to CIRM an amount equal to two hundred percent (200%) of the amount of the principal of the Product-Backed Loan. 
 iii. Upon generation of $600 million of Product Revenue cumulatively, Loan Recipient shall pay to CIRM an amount equal to two hundred percent (200%) of the amount of the principal of the
Product-Backed Loan. 
 d. Product Revenue: 

i. Definition: “Product Revenue” shall include Net Commercial Revenue received by the Loan Recipient or
by any joint venture or subsidiary created by Loan Recipient, and any upfront licensing fees, development milestone payments received from a product development partner, and royalties on commercial sales, which arise from or are related to
development and/or commercial sale of the CIRM-Funded Research. Recognizing that CIRM-Funded Research can support multiple therapeutic indications, the Loan Agreement will set forth the specific stream of revenue that applies for purposes of this
Subpart. 
 e. Conditions and Timing of Payment:  

i. Upon achievement of the revenue thresholds described in Subparts “2.b” and “2.c” of this Subpart
“E,” Loan Recipient shall pay CIRM the Risk Premium Payment quarterly in equal installments over 12 months starting in the first quarter following the achievement of such revenue threshold, provided, however, that no Risk Premium Payments
shall be due prior to the end of the initial term of the Loan. Notwithstanding the foregoing, the first Risk Premium Payment due with respect to Product-Backed Loans upon generation of Product Revenue of $50 million in a fiscal year shall be paid in
equal quarterly installments over 18 months starting the first day of the first quarter following the achievement of the threshold. 
 ii. In the event that a Product-Backed Loan is forgiven, Loan Recipient shall have no obligation to make the Risk Premium Payments unless and until the Loan is reinstated. 

  
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 iii. Pre-commercial revenues such as development milestone payments will
trigger a Risk Premium Payment only in the event that the CIRM-Funded Project results in revenues from commercial sales and the revenue thresholds described in Subparts “2.b” (for Company-Backed Loans) and “2.c” (for
Product-Backed Loans) of this Subpart “E” are satisfied. 
 3. Sunset Provision: This Subpart
“E” (“Risk Premium Alternative to Warrants”) shall remain in effect until all loans made pursuant to RFA 11-02 CIRM Early Translational Awards III, RFA 10-05 CIRM Disease Team Therapy Development Awards, and any earlier requests
for applications, have been issued unless this provision is earlier terminated or made permanent by subsequent action of the ICOC. Loans already entered into pursuant to this regulation shall be subject to these provisions, provided the Loan
Recipient elected to make the risk premiums set forth in this chapter in lieu of providing warrants as set forth under Subpart “D” of this policy. 
 F. Loan Period 
 The term of CIRM loans shall be 5 years, subject to modification on an RFA
by RFA basis by the Intellectual Property and Industry Subcommittee, based on the recommendation of the President. The Loan Recipient may extend the term of the loan up to a maximum term of 10 years, provided that it agrees to be bound by the
provisions set forth below in Section I. A term of more than ten years shall require the approval of the Intellectual Property and Industry Subcommittee, based upon the recommendation of the President. 

  
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 G. Prepayment and Repayment at End of Loan Period 

Unless the repayment obligation has been accelerated, suspended or forgiven, the Loan Balance is due and payable to CIRM on the last day of the Loan
Period. A Borrower may prepay the full amount of the Loan Balance, with accumulated interest, at any time, without penalty. 
 H. Loan
Acceleration 
 Subject to Section VII.H.1, in the event of any Change of Control, CIRM shall have the right but not the obligation to
accelerate repayment of the Loan. This decision shall be made by the Intellectual Property and Industry Subcommittee, based on the recommendation of the President. If the proposed change of control is not a matter of public knowledge, the
Intellectual Property and Industry Subcommittee shall consider the matter in closed session to protect the confidentiality of the proposal. 
 1. Change of Control: Notwithstanding the above, in the event of any Change in Control the Loan shall not be accelerated in the event that all of the following are satisfied: 

 

	 	a.	Both immediately before and immediately after such Change in Control no event of default shall have occurred and be continuing under the CIRM loan documents, and

  

	 	b.	The surviving entity satisfies the following conditions: 

  

	 	(i)	it has executed an instrument satisfactory to CIRM assuming the obligations of the Loan Recipient; and 

 

	 	(ii)	it has shareholder’s equity no less than the most recently reported shareholder’s equity of the Loan Recipient, as show on pro forma financial statements for
the entity. 

 2. Assignees: Unless the Loan Recipient agrees to acceleration of the Loan and pays
all principal and interest, upon assigning CIRM-Funded Technology and/or CIRM-Funded Research arising from the CIRM-Funded Project, the assignee shall have the same obligations the Loan Recipient has under CIRM’s Intellectual Property and
Revenue Sharing Requirements for Non-Profit and For-Profit Grantees (commencing with Title 17, California Code of Regulations section 100600, et seq.) in all respects except that the revenue sharing obligations of
Section 100608 shall not apply to such assignee. 
 I. Forgiveness and Reinstatement of Product-Backed Loans 

(1) A Product-Backed Loan shall be automatically forgiven in the event that all of the following have been satisfied: 

(a) The Loan Recipient has complied with all reporting requirements; 

  
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 (b) The Loan Recipient abandons the CIRM-Funded Project during or after the Loan Period,
submits a declaration to this effect and does not resume work on such Project, or CIRM terminates the Project; and 
 (c) To the
extent that the Loan Recipient obtains Net Commercial Revenue arising in whole or in part from the CIRM-Funded Project in an amount less than the amount of the loan, the Loan Recipient has repaid CIRM the Loan Balance up to the amount of revenue
generated less reasonable third party costs (up to a maximum of 50% of such costs) incurred in seeking to bring and CIRM-Funded Inventions or CIRM-Funded Technology to practical use as required by Title 17, California Code of Regulations section
100606. 
 (2) Notwithstanding subpart (1) above, a Loan that has been forgiven will automatically be reinstated in the
event that the Loan Recipient obtains revenue arising in whole or in part from the CIRM-Funded Project. If the Loan Recipient’s obligation to repay has been forgiven and if further activity results in a repayment obligation under this
provision, the Product-Backed Loan Recipient must promptly notify CIRM. The Product Backed Loan will automatically be reinstated under terms that the Intellectual Property and Industry Subcommittee shall approve (which may, for example, preclude
rights to extend the term), except that in no event will the interest rate be higher than the per annum rate equal to LIBOR for a one-year deposit in U.S. dollars, as published by the Wall Street Journal (or if the Wall Street Journal is not
available, a comparable source) on the date of reinstatement plus 2%. The Principal and interest owed shall be reduced by any amount previously repaid to CIRM prior to forgiveness. Upon reinstatement of the Loan, the Product-Backed Loan Recipient
shall be eligible for subsequent forgiveness and reinstatement in accordance with the terms of this section. 
 J. Conditions and Notice for
Extension of Loan 
 A Loan Recipient may extend the term of its five-year loan according to the conditions of this Section. The Loan
Recipient must provide notice of its intent to extend the loan term at least 90 days prior to end of the Loan Term. The term may be extended on a year by year basis up to 10 years in the sole discretion of Loan Recipient, subject to the absence of
an event of termination by CIRM or of acceleration, and compliance with terms of Notice of Loan Award. Payment of interest Accrued for a Five (5)-year Loan will occur as follows: 

 

	 	A.	Years 1 -5: interest accrues, no payment due 

  

	 	B.	 Year 6: Recipient owes 25% of unpaid, accrued interest paid out over the 6th year in 4 equal quarterly payments; remaining interest is accrued 

 

	 	C.	 Year 7: Recipient owes 25% of unpaid, accrued interest paid out over the 7th year in 4 equal quarterly payments; remaining interest is accrued 

 

	 	D.	 Year 8: Recipient owes 25% of unpaid, accrued interest paid out over the 8th year in 4 equal quarterly payments; remaining interest is accrued 

 

	 	E.	 Year 9: Recipient owes 25% of unpaid, accrued interest paid out over the 9th year in 4 equal payments; remaining interest is accrued. 

  
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	 	F.	Year 10: Recipient owes 25% of unpaid, accrued interest paid out over the first 3 quarters in 3 equal payments; principal and remaining unpaid accrued interest
are due at end of year 10. 

 K. Subordination 
 For Product-Backed and Company-Backed loans, the President will decide on a case-by-case basis whether to subordinate to new debt. 
 L. Loan Application Process 
  

	 	1.	Documentation 

 Within 14
days of being notified of the ICOC’s approval of the award, the Loan Applicant shall indicate in writing to CIRM its choice of a Product-Backed or Company-Backed loan. The Loan Applicant will be required to submit financial information pursuant
to CIRM’s or its agents’ request. CIRM’s Governing Board may decline to award a Loan on one or more legal or financial grounds, including but not limited to risk of attachment, bankruptcy, or insolvency. 

 

	 	2.	Scientific Review 

Applications for a CIRM award that is in the form of a loan will be subject to the same scientific review by the Grants Working Group as a
Grant application, and final determination of scientific merit by the ICOC. 
  

	 	3.	Financial Feasibility Review 

 Each applicant or Loan Recipient will provide financial and business information to evaluate the applicant’s ability to manage and repay CIRM funds. CIRM may assign each Loan applicant to a Financial
Services Provider or perform such diligence internally. CIRM will deduct the costs of the financial due diligence from the indirect costs awarded to the Loan Recipient. 

  
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 Exhibit C 
 Opinion of Counsel 
 April 9, 2013 
 California Institute for Regenerative Medicine 
 210 King Street 

San Francisco, CA 94107 
  

	 	Re:	Loan Agreement for CIRM Loan Number DR2A-05416 to StemCells, Inc. 

 Ladies and Gentlemen: 
 I am General Counsel and Corporate Secretary for
StemCells, Inc., a Delaware corporation (the “Company”). This letter is in reference to the Loan Agreement dated April 9, 2013, by and between the Company and the California Institute for Regenerative Medicine (“CIRM”) that
is attached as Appendix B to the Notice of Loan Award for CIRM loan number DR2A-05416 (the “Loan Agreement”). I am rendering this opinion pursuant to Section 4.12(h) of the Loan Agreement. Capitalized terms used but not
defined herein have the meanings given them in the Loan Agreement. 
 I have examined such matters of fact and questions of law
as I have considered appropriate for purposes of this letter. Additionally, I have examined the Loan Agreement. Except as otherwise stated herein, as to factual matters I have, with your consent, relied upon the foregoing, and upon oral and written
statements and representations of officers and other representatives of the Company and others, including the representations and warranties of CIRM. I have not independently verified such factual matters. 

The opinions expressed herein are limited to matters governed by the laws of the State of California, the Delaware General Corporation
Law and the federal laws of the United States of America. 
 On the basis of the foregoing, in reliance thereon, and with the
qualifications set forth herein, I am of the opinion that: 
  

	 	•	 	 The Company is duly organized, validly existing and in good standing under the laws of the State of Delaware. 

 

	 	•	 	 The Company has the requisite corporate power to own its property and assets and to conduct its business as it is currently being conducted.

  
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	 	•	 	 With your consent, based solely on certificates from public officials, the Company is qualified as a foreign corporation to do business and is in good
standing in the State of California. 

  

	 	•	 	 The Company has the requisite corporate power to execute, deliver and perform it obligations under the Loan Agreement. 

 

	 	•	 	 The Loan Agreement has been duly authorized, executed and delivered by the Company and constitutes a valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms. 

 My opinions are subject to: 

 

	 	a.	the effects of bankruptcy, reorganization, preference, fraudulent transfer, moratorium or other similar laws relating to or affecting the rights or remedies of
creditors generally; 

  

	 	b.	the effect of general principles of equity, whether considered in a proceeding in equity or at law (including the possible unavailability of specific performance or
injunctive relief), concepts of materiality, reasonableness, good faith, fair dealing and the discretion of the court before which a proceeding is brought; 

 

	 	c.	the invalidity or limitation under certain circumstances under law or court decisions of provisions for the indemnification or exculpation of or contribution to a party
with respect to a liability where such is contrary to or limited by public policy or statutory grounds; and 

  

	 	d.	 I express no opinion with respect to (i) consents to, or restrictions upon, governing law, jurisdiction, venue, arbitration, remedies or judicial
relief; (ii) advance waivers of claims, defenses, rights granted by law, or notice, opportunity for hearing, evidentiary requirements, statutes of limitation, trial by jury or at law, or other procedural rights; (iii) waivers of broadly or
vaguely stated rights; (iv) covenants not to compete; (v) provisions for exclusivity, election or cumulation of rights or remedies; (vi) provisions authorizing or validating conclusive or discretionary determinations;
(vii) grants of setoff rights; (viii) provisions for the payment of attorneys’ fees where such payment is contrary to law or public policy, and I call to your attention the provisions of Sections 1717 and 1717.5 of the California
Civil Code, which limit and create obligations for the payment of attorneys’ fees; (ix) proxies, powers and trusts; (x) provisions prohibiting, restricting, or requiring consent to assignment or transfer of any right or property;
(xi) provisions for liquidated damages, default interest, late charges, monetary penalties, prepayment premiums, make-whole premiums or other economic remedies to the extent such are deemed to

  
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constitute a penalty; (xii) provisions permitting, upon acceleration of any indebtedness, collection of that portion of the stated principal amount thereof which might be determined to
constitute unearned interest thereon; and (xiii) the severability, if invalid, of provisions to the above effects. 

 With your consent, I have assumed (a) that the Loan Agreement has been duly authorized, executed and delivered by CIRM, (b) that the Loan Agreement constitutes the legally valid and binding
obligations of CIRM, enforceable again CIRM in accordance with its terms, and (c) that the status of the Loan Agreement as legally valid and binding obligation of the CIRM is not affected by any (i) breaches of, or defaults under,
agreements or instruments, (ii) violations of statutes, rules, regulations or court or governmental orders, or (iii) failures to obtain required consents, approvals or authorizations from, or make required registrations, declarations or
filings with, governmental authorities; provided that with respect to each of the foregoing, I make no such assumption to the extent I have opined as to such matters with respect to the Company. 

My opinion set forth above is limited to the matters expressly set forth in this letter, and no opinion is implied, or may be inferred,
beyond those matters expressly stated. This opinion speaks only as to law and facts in effect or existing as of the date hereof and I undertake no obligation or responsibility to update or supplement this opinion to reflect any facts or
circumstances that may hereafter come to my attention or any changes in any law that may hereafter come to my attention in any law that may hereafter occur. 
 This opinion is intended solely for your befit and is not to be made available to or be relied upon by any other person, firm or entity without my prior written consent. 

 

	
	Very truly yours,
	
	By:
	Ken Stratton, J.D.
	General Counsel

  
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 SCHEDULES 
 Schedule 5.3 
 Prior Names 

CytoTherapeutics, Inc. 

  
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 Schedule 5.7 
 Existing Litigation 
 Loan Recipient has sued Neuralstem, Inc., a competitor, and two of its
executives for patent infringement as well as under certain state law causes of action, including unfair competition (see StemCells, Inc., et al. v. Neuralstem, Inc., et al., Maryland District Court, Case No. AW 06 CV 1877). Neuralstem has brought
counter-claims alleging antitrust violations. The Company expects the case to go to trial in 2014. 

  
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 Schedule 5.10 
 In 1992, Loan Recipient borrowed from the State of Rhode Island in connection with the purchase and development of real property located at One and Six Court Drive, Lincoln, Rhode Island 02865. There is a
first priority lien on these properties and equipment within them. There is approximately $300,000 still owed and the debt should be paid in full by January 2014. 
 In April 2013, Loan Recipient borrowed $10 million from Silicon Valley Bank (SVB) as a three-year term loan. Subject to the lien described above on the assets found at One and Six Court Drive in Lincoln,
Rhode Island, the SVB loan is secured by a first priority lien on all of Loan Recipient’s assets, other than its intellectual property. Under the SVB loan, Loan Recipient will make interest only payments for the first six months of the loan,
followed by 30 equal monthly payments of principal and interest. In addition, Loan Recipient will owe a final payment of $1 million at the end of the loan. 

  
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 Schedule 5.14 
 Intellectual Property Proceedings 
 Some of Loan Recipients patents have been the subject of
reexamination proceedings before the US PTO and/or opposition proceedings before the EPO. [****] 
 [****] Certain information has been omitted
and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
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 Schedule 7.8 
 Existing Indebtedness 
 See Schedule 5.10, above. 

  
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 Schedule 7.8(f) 
 Existing Liens 
 See Schedule 5.10, above. 

[all schedules to be confirmed at time of signing] 

  
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